Disseminated Ni-Cu sulphides in drilling Sovereign Project

10th November 2021

Initial diamond drilling at Sovereign intersects thick intrusive

sequence with disseminated nickel-copper sulphides

Visual observations from first two diamond holes validate the significant potential for Julimar-stylenickel-copper mineralisation within extensive mafic-ultramafic intrusion

HIGHLIGHTS

• DevEx's maiden stratigraphic diamond drilling program has encountered an extensive sequence of differentiated mafic-ultramafic intrusive rocks, including gabbronorite, norite, pyroxenite and serpentinite.
• Within Hole 2, broad intervals of low-grade disseminated nickel-copper sulphide mineralisation are observed in the hole, including several narrow (5-10cm) bands of matrix textured iron- nickel-copper sulphides.
• The diamond holes are currently being logged with sampling of the core underway.
• In parallel, an extensive ground electromagnetic (EM) survey has also commenced which is designed to cover the majority of the 12km-long intrusion over the coming months.
• The encouraging results from these initial diamond holes have provided strong endorsement of the prospectivity of the 12km long Sovereign Mafic-Ultramafic Intrusion, which is located within the Julimar Complex to the north of Chalice Mining Ltd's world-class Gonneville Ni-Cu- PGE discovery.

DevEx Resources (ASX: DEV, "DevEx" or "the Company") is pleased to advise that it has completed the first two stratigraphic diamond drill-holes at the Sovereign Nickel-Copper-PGEProject in Western Australia's Julimar Province.

The two holes, which were collared 550m apart and totalled 921m of drilling, were designed to test the central portion of the Sovereign mafic-ultramafic intrusion providing information on the geometry and geology of the intrusion.

The outcomes of these initial framework reconnaissance holes have exceeded the Company's expectations, with the drilling encountering a thick intrusive sequence of metamorphosed gabbronorite, norite and ultramafic (including pyroxenite and serpentinite) rocks - as outlined in the attached summary logs (Appendix 1, Table 1).

Within hole 21SVDD02 (Hole 2), visual observations of the drill core, supported by spot pXRF analysis, indicate that the drilling has encountered several zones of disseminated (low-gradei)copper-nickel

1. Visual inspection of the diamond core and preliminary logging indicates that assay intervals within these broad zones comprising disseminated Ni-Cu sulphides are likely to be low grade [less than 1% Ni and Cu].

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sulphide mineralisation associated with the mafic-ultramafic intrusion, including several narrow (5- 10cm) bands of matrix textured iron-nickel-copper sulphides - see Figure 1.

Observations of the core indicate that the geology and mineralisation have been modified by pervasive regional metamorphism, similar to the processes described at Gonneville by Chalice Mining Limited.

In addition, Hole 2 appears to have drilled through the intrusion into garnet-bearing mafic volcanic/sedimentary country rocks. Copper sulphides are commonly observed in these country rocks adjacent to the intrusion (see Figure 2).

Considering that these two maiden diamond holes were planned to garner initial insights into the geometry and framework of the 12km-long differentiated mafic-ultramafic intrusion (see Figure 3), DevEx regards these results to be a significant endorsement of the prospectivity of the Sovereign Mafic Ultramafic Intrusion to host Ni-Cu-PGE mineralisation.

The association of palladium and platinum (PGE) with the nickel-sulphide mineralisation will be determined once the diamond core is sampled and assays are received. Both diamond drill holes are currently being logged in detail, together with sampling of the core for analysis.

Figure 1: Matrix textured Fe-Ni-Cu sulphides within norite rock at 431.4m down-hole in Hole 2 (left) and disseminated Ni-

Cu-Fe sulphides within norite rocks at 232.3m down-hole in Hole 2 (right).

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Figure 2: Fine-grainedgarnet-bearing mafic volcanic/sedimentary (country rock) near the contact of the mafic-ultramafic intrusion with copper sulphides and pyrite at 454m down-hole in Hole 2. Large garnet megacrysts (not in photo) also appears to be a focus point for copper sulphide mineralisation.

Management Comment

Commenting on the maiden diamond drilling program, DevEx Managing Director, Mr Brendan Bradley, said:

"We are methodically ticking the boxes towards what we all hope will be a game-changing discovery at Sovereign. The outcomes of these two widely-spaced stratigraphic holes have exceeded our expectations and given us confidence that we are very much on the right track with our exploration approach.

"In addition to confirming the presence of the right intrusive host sequence over significant widths, we have intersected nickel-copper sulphide mineralisation in Hole 2 - which is a remarkable result for what was essentially stratigraphic drilling to understand the framework of just a small part of the intrusion.

"While we caution investors that the broad disseminated mineralised intervals encountered in this hole are likely to be low-grade, seeing the iron-nickel-copper sulphides both as disseminated and in narrow matrix textured bands is an exciting development which suggests that this is very much a 'live' system capable of hosting economic mineralisation.

"Our next challenge is to vector in on potential accumulations of massive sulphide mineralisation, which we hope to do with the assistance of both down-hole and surface EM surveys."

Next Steps

Detailed logging is continuing in conjunction with sampling of the diamond core for analysis. Down- hole electromagnetics (EM) is planned to survey both diamond holes later this month. Further diamond drilling is also planned to test the intrusion to the north, with the diamond rig available next month to continue drilling.

In parallel with this work, an extensive ground EM survey commenced last month. The survey is designed to test for conductors associated with Ni-Cu-PGE mineralisation within the 12km-long Sovereign Mafic-Ultramafic Intrusion.

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Considering the scale of the intrusion defined thus far, the survey is likely to take several months to complete. This will include plans to carry out ground EM in the area surrounding these two diamond holes later next month once paddocks have been harvested. Any prospective EM conductors identified as this survey progresses will be fast tracked to diamond drilling next month.

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 4.

Figure 3. Sovereign Project: Location of diamond drill holes 21SVDD01 (Hole 1) and 21SVDD02 (Hole 2), which were drilled to understand the local geology and framework of the mafic ultramafic intrusion which has been defined in air-core drilling over 12km in length.

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Figure 4. 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.

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