DevEx Resources : Drilling results confirm prospective intrusion at Sovereign

DevEx Resources Limited

Level 2, 1292 Hay Street, West Perth WA 6005, Australia GPO Box 2890, Perth WA 6001

www.devexresources.com.au

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Sulphide mineralisation assemblages in Hole 2 vary from pentlandite-chalcopyrite-pyrite(with relic pyrrhotite) to millerite-chalcopyrite-pyrite.Similar to the processes described at Gonneville by Chalice Mining Limited (ASX: CHN), both the geology and mineralisation at Sovereign have been modified by pervasive regional metamorphism. Importantly, the zones of disseminated iron (Fe)-Ni-Cusulphides are spatially associated with magmatic blue quartz and ilmenite - both strongly suggestive of the role of sediment assimilation in the genesis of the mineralization. Sediment assimilation is a critical element in the genesis of magmatic Ni-Cu-PGEdeposits such as Nova-Bollingerand Noril'sk.

The assays have confirmed several zones of low-gradedisseminated nickel (Ni) and copper (Cu) sulphide mineralisation within the gabbronorite-noriteand pyroxenite rocks (see Figure 2 and Table 2), in line with expectations from visual observations of the diamond drill core (see ASX announcement, 10 November 2021). Both palladium and platinum (PGE) values are low in grade.

DevEx Resources (ASX: DEV, "DevEx" or "the Company") is pleased to provide a further update on ongoing exploration programs at the Sovereign Nickel-Copper-PGEProject in Western Australia's Julimar Province. The Company has received assay results from the first two diamond holes completed in November and has also completed a third stratigraphic diamond hole some 3.5km to the north of the initial drilling (Figure 1, Table 1).

• This adds further impetus to the ongoing ground EM program, which is expected to pick up pace following completion of the delayed grain harvest in December.

• A close association between the disseminated nickel and copper sulphide mineralization and evidence of sediment assimilation by the intrusion in Holes 2 and 3 demonstrates a key genetic indicator in the formation of Nickel Copper Platinum Group Elements Deposits.

• A third stratigraphic diamond hole (Hole 3) completed recently has intersected a thick sequence of mafic-ultramaficintrusive rocks 3.5km north of previous drilling.

• Assay results from initial stratigraphic diamond drilling completed in November confirm low-gradenickel and copper sulphide mineralisation in Hole 2, in line with visual observations.

HIGHLIGHTS

Third diamond hole intersects thick sequence of mafic-ultramaficintrusion 3.5km

north of previous drilling, highlighting scale of the prospective rocks

onlyFurther diamond drilling and initial assays confirm extensive, thick, and prospective intrusive sequence at Sovereign

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23rd December 2021

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The third stratigraphic diamond hole, 21SVDD03 (Hole 3), was completed earlier this month with co- funding assistance by the WA Exploration Incentive Scheme.

Hole 3 was drilled 3.5 kilometres to the north of Hole 2 and has also intersected a thick sequence of moderate westly dipping mafic-ultramafic intrusive rocks to the bottom of the hole (586m). Preliminary observations of the core identify a narrow (one metre) zone of minor disseminated Fe-Ni-Cu sulphides within a pyroxenite.

Importantly, the mafic-ultramafic rocks hosting the disseminated Fe-Ni-Cu sulphide mineralisation in both Holes 2 and 3 show similar signs of assimilation of country rock into the intrusion. The presence of these distinctive features over broadly spaced holes several kilometres apart continues to enhance the prospectivity of the intrusion and the importance of ground-based electromagnetic surveys (EM) to assist in vectoring into potential accumulations of massive sulphide mineralisation.

These early-stage diamond holes demonstrate a thick and extensive sequence of differentiated mafic- ultramafic intrusive rocks (see ASX Announcement 10th November 2021) which, together with confirmation of Fe-Ni-Cu sulphide mineralisation, supports the potential for the 12-kilometre intrusion to host significant concentrations of Ni-Cu-PGE mineralisation.

Figure 1. Sovereign Project: Location of three diamond drill holes 21SVDD01 (Hole 1) - 21SVDD03 (Hole 3), drilled to understand the local geology and framework of the mafic ultramafic intrusion. Local grid provided for context to Figure 2.

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With the delayed harvesting season complete, ground electromagnetics (EM) can now pick up pace in early January. Although the Fe-Ni-Cu sulphides seen in Hole 2 are only weakly conductive with no immediate off-hole response, the potential for a massive sulphide accumulation along strike from these disseminated sulphide zones provides a focus for the ground EM next month.

In total, the ground EM is expected to take several months to complete. Any prospective EM conductors identified as this survey progresses will be fast tracked to drilling.

DevEx is currently exploring the western half of the Sovereign mafic-ultramafic Intrusion (E70/3405) under an Earn-In Agreement with Australian Silica Quartz Group Ltd (ASQ) (see the Company Announcement on 1st June 2020). The eastern half of the intrusion is located within a granted tenement held by DevEx (E70/5365) - see Figure 3.

DevEx Managing Director, Brendan Bradley, said: "The observations and early conclusions from our first three stratigraphic diamond holes at Sovereign have provided a strong framework for our ongoing exploration program. Importantly, we have confirmed an extensive sequence of highly prospective ultramafic-maficrocks over a considerable strike length with geological, geochemical and petrological characteristics which indicate the potential for a large nickel-copper-PGEsystem.

"The presence of low-gradenickel-copper mineralisation in the initial assays is consistent with our expectations based on geological logging of the core. The next step is to find accumulations of massive sulphides, and ground EM is the right exploration tool to do this.

"With the completion of the cropping season, our ongoing ground EM program will pick up pace early in the New Year, and we are looking forward to seeing what it can deliver."

Figure 2. Generalised geological cross section and interpretation with nickel and copper assays represented as histograms (Oblique to GDA Grid - temporary local grid provided - see Figure 1) showing distribution of low grade disseminated nickel-copper sulphide mineralisation within and at the base of the mafic-ultramafic intrusion. Shallowing position of these zones provides a focus for Ground EM in January 2022.

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Figure 3. DevEx Tenement together with the Australian Silica Quartz Group Ltd (ASQ) Tenement overlying airborne magnetics (RTP) in relation to Chalice Mining Limited's high-gradepalladium-nickel discovery (ASX: CHN) at the Julimar Project. The outline of the Julimar Complex was interpreted by the Company from information in Harrison (1984)3.

Table 1 - Collar details of diamond drilling at Sovereign Project.

	Hole ID			East			North			RL			Depth		Az	Dip
			(mE)			(mN)			(m)			(m)
	21SVDD01 (Hole 1)	438096		6545605		310		412		145	-70
	21SVDD02 (Hole 2)	438644		6545739		301		510		145	-70
	21SVDD03 (Hole 3)	439207		6549175		306		586		290	-60

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Table 2 - Table of intercept for > 0.2% Nickel and >0.2% Copper.

	Hole ID			From			To			Ni			Cu			Pd			Pt
			(m)			(m)			%			%			ppb			ppb
	Hole 2	431.4		431.7		0.3		0.3		17		5

This announcement has been authorised for release by the Board.

For further information, please contact:	For media inquiries, please contact:
Brendan Bradley, Managing Director	Nicholas Read
DevEx Resources Limited	Read Corporate
Telephone [phone]	Telephone: [phone]

REFERENCES

1. Chalice Mining Limited (ASX: CHN) ASX announcement "Tier-1 scale maiden Mineral Resource for Gonneville - 10Moz Pd+Pt+Au (3E), 530kt Ni, 330kt Cu and 53kt Co" on 9th November 2021".
2. Caspin Resources Limited (ASX: CPN) ASX announcement "Primary Sulphide PGE Mineralisation Confirmed at Yarabrook Hill" on 5th July 2021.
3. Harrison P. H., 1984. The mineral potential of layered igneous complexes within the Western Gneiss Terrain. In: Professional papers for 1984 of the Geol Surv of W. A. 19. Gov Printing Office, Perth, pp 37-54.
4. Chalice Gold Mines Limited (ASX: CHN) ASX announcement "Major new 6.5km-long EM anomaly identified at Julimar" on 22nd September 2020.

COMPETENT PERSON STATEMENT

The information in this report that relates to Exploration Results is based on information compiled by DevEx Resources Limited and reviewed by Mr Brendan Bradley who is the Managing Director of the Company and a member of the Australian Institute of Geoscientists. Mr Bradley has sufficient experience that is relevant to the styles of mineralisation, the types of deposits under consideration and to the activities undertaken to qualify as a Competent person as defined in the 2012 edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Mr Bradley consents to the inclusion in this report of the matters based on this information in the form and context in which it appears.

The Information in this report that relates to Exploration Results for the Sovereign Project is extracted from the ASX announcements titled "Initial diamond drilling at Sovereign intersects thick intrusive sequence with disseminated nickel- copper sulphides" released on 10th November 2021 and "Large-scale, 12km long mafic-ultramafic intrusion at Sovereign Project, paving way for ground EM and initial diamond drilling" released on 17th August 2021 which are available at www.devexresources.com.au.

The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The company confirms that the form and context in which the Competent Person's findings are presented have not been materially modified from the original market announcement.

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