Celsius Resources : TO ACQUIRE PROJECT IN PROLIFIC LACHLAN FOLD BELT

Celsius Resources Limited (Celsius or the Company) (ASX: CLA) is pleased to announce it has entered into a Binding Heads of Agreement (Agreement) with Syndicate Minerals Pty Ltd (Syndicate Minerals) to acquire the Cullarin West prospect (ELA5928 or the Tenement) located in the highly sought-after Lachlan Fold Belt region of NSW, Australia.

Celsius has acquired 100% of the right, title and interest in the Tenement for total consideration of 20 million shares in the capital of Celsius.

The Cullarin West prospect is located adjacent to and along strike of Sky Metals' (ASX: SKY) Cullarin discovery (93 m at 4.24 g/t gold from 56 m, refer ASX.SKY Announcement 10 February 2020). An initial review, including a site visit, indicates the project is underlain by similar geological and structural features which host mineralisation at Cullarin. Only limited historical exploration has been undertaken in the tenement area due to widespread recent cover obscuring bedrock geology.

A historical diamond drillhole at Cullarin West (DDH W-1 drilled in 1978) showed elevated levels of silver and base metals in 'drill sludges'. Sludge samples were not analysed for gold due to the focus being on base metals. Drill core was not cut or sampled and is stored at the NSW core library in Londonderry.

Celsius intends to access this core and resample it as a high priority, ahead of a significant programme of low detection limit geochemical sampling designed to define further drilling targets under widespread Quaternary cover in the areas of interest.

The Cullarin West project also includes the historical Gooda Creek and Daltons Goldfields

Gooda Creek: A high grade, small scale gold mine that averaged 6 oz/t (180 g/t) pre-1900 (government records). Limited shallow drilling at Gooda Creek in the 1987 returned 1.95 m at 23.1 g/t gold and 1.0% copper.

The Daltons Goldfield: Hosts multiple gold occurrences that have seen small scale, high grade production recorded (+10g/t Au) with little modern exploration conducted. A limited drill programme conducted in 2012 returned a best result of 1 m @ 27.1 g/t gold.

Celsius recently completed a site visit as part of its due diligence and looks forward to engaging with local landholders and stakeholders prior to commencing on ground activities following tenement grant.

Commenting on the acquisition, Celsius' Non-Executive Director & Chairman Bill Oliver said: 'With limited historical exploration and located in a highly sought-after region along strike from a noted gold discovery, Cullarin West provides an exciting opportunity for Celsius at a low cost entry price. We are eager to get on the ground as soon as practical once the tenement is granted and will update investors on activities as they progress. In parallel we continue to assess other opportunities to diversify Celsius' mineral exploration portfolio and look forward to updating shareholders should these progress into transactions.'

Regional Setting

Geologically, the tenement is situated near to and along the eastern margin of the Siluro-Ordovician Molong Belt; part of the Macquarie Arc of the Lachlan Fold Belt. Historically major copper-gold deposits in the Lachlan Fold Belt such as Cadia-Ridgeway, Northparkes and Cowal have been thought to be restricted to Ordovician volcanics, where porphyry deposits formed within a 1,000km long intraoceanic island arc.

With the discovery of the McPhillamys Deposit (2.3 Moz Au) the prospectivity of the Silurian volcanics to host gold-rich volcanic hosted massive sulphide (VHMS) deposits and epithermal and porphyry-hosted deposits became recognized. Exploration of the Silurian volcanics is not yet as extensive as exploration of the Ordovician sequence and as a consequence major discoveries such as Sky's Hume discovery are still being made.

With prevailing gold prices reaching historic highs the extensive gold mining history of the Lachlan Fold Belt has received fresh attention. In addition to Sky's intensive drilling programme at Hume historic gold mines such as Stuart Town, Mt Adrah and Adelong have been recently acquired by new owners (ASX.KAU, ASX.FRN and ASX.DDD respectively). Alkane's Boda discovery has also sparked fresh exploration for Ordovician-aged copper-gold porphyry systems by companies like Magmatic Resources, DevEx Resources, Godolphin Resources, Krakatoa Resources, Argent Minerals and Kincora Copper (in JV with Rarex Ltd)

Historical Exploration

Only limited historical exploration has been completed on the Cullarin West Project, with data not yet compiled into digital and GIS formats. Exploration data will be compiled over coming weeks to aid target generation and design of work programmes. The summary below is based on an initial review and it should be noted that further information may be identified which changes the interpretation of the data presented here.

At the Cullarin West prospect historical exploration has included airborne and ground magnetic surveys, a gradient array IP survey and drilling of two diamond core drill holes for 302.8m. The sampling protocol was to systematically sample the 'sludges' from the drillholes (mud and rock chips collected from the outside return while drilling) but only to sample core where massive sulphides were present.

Little exploration has been completed at the Daltons and Gooda Creek goldfields since they were mined in the 1890's and 1900's. At Gooda Creek limited historical drilling has been carried out to test below the historical workings. Six diamond drill holes were drilled by Transit Mining in 1987 for 117.73 metres with holes sited in the field based on the interpreted depth and direction of the lode mined in the various shafts. Results included a very high grade result of 1.95 m at 23.1 g/t gold and 1.0% copper in TGC-2. The exact location of the holes will require field checking due to being laid out on a local grid, however results are included here to illustrate the potential of the Gooda Creek Project. Reports noted that gold was associated with massive sulphides, analogous to other Silurian-hosted mineralisation in the Lachlan Fold Belt. The Company believes a systematic approach to exploration including mapping historical workings and utilisation of geophysical techniques will enable the potential of the Gooda Creek project to host gold mineralisation to be assessed.

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