Greenland Minerals : Agreement to acquire interest in lithium project

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Company Announcement July 14th, 2022

Agreement to acquire an interest in a lithium project

Highlights

• Greenland Minerals to expand its focus to include lithium exploration in Continental Europe
• Greenland Minerals to earn-in 51% in the Villasrubias lithium exploration licence located in Spain's most renowned province for technology metals exploration
• The transaction is subject to shareholders' approval in view of the related party relationship between Greenland Minerals and the current owner of the licence
• This transaction marks the first step in Greenland Minerals new diversification strategy

Greenland Minerals Limited (the Company or Greenland) (ASX: GGG) is pleased to announce that it has entered into a binding heads of agreement with Technology Metals Europe SL (TME) and its sole shareholder Welsbach Holdings Pte Ltd (Welsbach), for the right to earn-in a 51% interest in TME (Transaction).

TME is the sole owner of an exploration permit in Spain prospective for lithium (Tenement), known as the Villasrubias project.

Greenland can earn its interest in TME by spending AU$3,000,000 on a jointly agreed works program in relation to the Tenement within 3 years from the date of satisfaction (or waiver, if permitted) of the conditions precedent to the Transaction.

Welsbach is a related party of Greenland by virtue of being an entity controlled by Mr Daniel Mamadou, Managing Director of Greenland, one of three directors of Welsbach and owner of a controlling shareholding interest in Welsbach.

The Transaction remains conditional, including on completion of due diligence by Greenland on TME and its assets, including the Tenement, to the satisfaction of Greenland, and Greenland obtaining shareholder approval pursuant to ASX Listing Rule 10.1.

A notice of meeting, including an independent expert's report assessing the fairness and reasonableness of the Transaction, will be distributed to shareholders in due course with the Company targeting a meeting date in September 2022.

A summary of the material terms of the HOA is set out in Annexure A.

Villasrubias project information - summary

The Villasrubias project consists of a permit of investigation (11.4 km2) acquired by Technology Metals Europe SL in 2021.

The main target is a set of lithium-tantalum-niobium-tin-bearingaplite-pegmatite dykes. Of these minerals, the first three are critical raw materials for the EU, according to the list updated in 2020.

PERTH: Unit 7, 100 Railway Road, Subiaco Western Australia 6008 POSTAL: PO Box 2006, Subiaco WA 6904 Telephone: [phone] Facsimile: [phone]

GREENLAND: Nuugaarmiunut 523B, PO Box 156, Narsaq, Greenland 3921 WEB: www.ggg.glEMAIL: [e-mail]: 85 118 463 004

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Preliminary exploration works performed on the Villasrubias project include field reconnaissance, grab sampling, geophysics (VLF and tomography) and trenches (259 m), which has evidenced mineralized dykes along 370 m at least within a complex buried pegmatite field. Taking the values of the aplo-pegmatites with lepidolite, the average grade of the lithium carbonate deposit is 2.79%.

"With its rich tradition in mining and its strong presence in the European automotive market, Spain is ideal for the development of projects for critical technology metals supply chains. We are keen to support local efforts to fund the projects that are centred on the circular and green supply chains of technology materials, including lithium" said Ed Mason, Non-Executive Chairman of Greenland Minerals.

"The Villasrubias project represents a great example of untapped potential within the Iberian tin-lithium belt. Advances in extraction and refining technologies coupled with a secular demand growth in lithium demand makes the Villasrubias project attractive from a risk-return perspective" said Daniel Mamadou-Blanco, CEO of Greenland Minerals.

Property Description and Location

The Villasrubias project Tenement is a permit of investigation (Permiso de Investigación) Villasrubias number 6.914, which was originally granted in 2019 for a term of 3 years to SIEMCALSA (the Sociedad de Investigación y Explotación Minera de Castilla Y León SA, an entity sponsored by the regional government of Castilla y León). The Tenement covers an area of 11.4 km2 located across parts of the municipalities of Villasrubias, Robleda, Peñaparda and Fuenteguinaldo, all in the province of Salamanca. The Tenement authorises exploration for resources of lithium, tin, tantalum and niobium. The Tenement was acquired by Technology Metals Europe SL in 2021, the transfer was registered in March 2022 and its term was extended by the authority for a further three years in May 2022.

Accessibility, Climate, Local Resources, Infrastructure and Physiography

The Villasrubias project is located in the south-west corner of the province of Salamanca in Spain, close to the Portuguese border. It is approximately 33 km away from Ciudad Rodrigo, 120 kms from the city of Salamanca, and 250 kms on average from the main harbours in Portugal.

Figure 1 - Location of Villasrubias project

PERTH: Unit 7, 100 Railway Road, Subiaco Western Australia 6008 POSTAL: PO Box 2006, Subiaco WA 6904 Telephone: [phone] Facsimile: [phone]

GREENLAND: Nuugaarmiunut 523B, PO Box 156, Narsaq, Greenland 3921 WEB: www.ggg.glEMAIL: [e-mail]: 85 118 463 004

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Figure 2 : Plan of Villarubias project tenement, PI 6.914

History

Historical records indicate that mining concessions for tin and tungsten had been granted, and that tin mining of pegmatites had taken place, at various locations within the area of the Tenement, including the Canalita Mine, in the 1940's and 1950's (see further below). Geochemical prospecting studies undertaken by the regional government and academic studies on the lithium-tantalite-caesium granitic pegmatites at the Canalita Mine took place in the 1980s and early 2010s.

Between 2017 and 2019 SIEMCALSA performed field reconnaissance, grab sampling, geophysics (VLF and tomography), and in 2020 carried out trenching (total 259 m). In the area of Canalita, evidence of mineralized dykes along at least 370 m was uncovered. The aplite/pegmatite samples from this area presented interesting results in lithium, tin, niobium, and tantalum (see Table 1, below):

Regional geological setting and mineralisation

The Tenement lies in part of the Iberian Massif, one of the most important areas for lithium exploration in Europe, as shown by a number of ongoing projects in both Spain and Portugal.

The Lithium pegmatites from the Central Iberian zone, Villasrubias pegmatite field and analogues.

Pegmatites are relatively common in the Central Iberian Zone (CIZ) of the Iberian Massif, in a NNW-SSE striking belt, ≈500 km long and ≈150 km wide, being particularly abundant in the provinces of Salamanca, Cáceres, Pontevedra, south of Zamora and north of Badajoz in Spain, and in the Viana do Castelo, Porto, Vila Real, Guarda, Castelo Branco and Viseu districts in Portugal (Roda-Robleset al., 2016). These pegmatites are often barren, with none or just a slight enrichment in incompatible elements. However, rare-element pegmatites, mainly enriched in Li±F±P±Nb±Ta±Sn±Be±B may be also locally abundant.

The pegmatites exhibit varying degrees of evolution and can show distinct patters of regional zonation. In some cases these pegmatites form a pegmatite field around a granitic body.

This is the case for the Li- Sn-richFregeneda-Almendraaplite-pegmatite field (Salamanca-Guarda) (Roda et al. 1999; Vieira et al. 2011) located to the north of Villasrubias in the same geological formations and age, the

PERTH: Unit 7, 100 Railway Road, Subiaco Western Australia 6008 POSTAL: PO Box 2006, Subiaco WA 6904 Telephone: [phone] Facsimile: [phone]

GREENLAND: Nuugaarmiunut 523B, PO Box 156, Narsaq, Greenland 3921 WEB: www.ggg.glEMAIL: [e-mail]: 85 118 463 004

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Barroso-Alvão field (Northern Portugal) (Lima, 2000; Martins et al., 2012) located east to Villasrubias area, and the Tres Arroyos field (Badajoz) (Garate-Olaveet al., 2017) located south of the Villasrubias area.

The Fregeneda-Almendra is one of the most studied pegmatite fields in the area because of the active mining for the Li-rich feldspar for ceramic use, and represents a typical section of the metamorphic Variscan basement in the Central-Iberian Zone, which is in the western part of a narrow EW trending belt.

It consists largely of psammopelites, with abundant intercalations of quartzites, conglomerates and, less frequently, amphibolites and calcsilicate rocks from the pre-OrdovicianSchist-Greywacke Complex (SGC). This belt is bordered by the Variscan MPL granitic complex to the south and by the Saucelle granite to the northeast. Both granites and most of the pegmatites intrude the SGC. This is the same geological setting as at Villasrubias but, in the Fregeneda, uplift and erosion triggered the outcropping of the pegmatite bodies.

Figure 3 - Schematic geological map of the Central Iberian Zone (CIZ) and the Galicia-Trás-Os Montes Zone (GTMZ) (Spain and Portugal) with the location of the different Li-mineralization and the Villasrubias project. (Source: Geology and mineralogy of Li Mineralization in the Central Iberian Zone (Spain and Portugal), Mineralogical Magazine February 2016, Vol 80(1), pp 103 - 126)

Local geological setting and mineralisation

The Schist and Greywacke Complex, a thick Neoproterozoic-Cambrian metasedimentary sequence affected by a Variscan low-grade metamorphism, mainly occupies the Tenement. These materials are affected by structures of deformation (folds, faults) of Hercynian Orogeny. An igneous massif (a prolongation of the Guarda Batholith) outcrops in the western part of the Tenement.

This massif, mostly constituted by biotitic ± muscovite, porphydic, coarse-grained granites, produces a contact metamorphism halo (hornblende-hornfels facies) of 3 km width. Close to the granite contact, there are small stocks of two-micasfine-grained granites and dykes (mostly aplites) intruding the metasedimentary Complex.

PERTH: Unit 7, 100 Railway Road, Subiaco Western Australia 6008 POSTAL: PO Box 2006, Subiaco WA 6904 Telephone: [phone] Facsimile: [phone]

GREENLAND: Nuugaarmiunut 523B, PO Box 156, Narsaq, Greenland 3921 WEB: www.ggg.glEMAIL: [e-mail]: 85 118 463 004

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These dykes, usually several metres in width and both parallel and normal to the contact, host in some cases Li-Sn-Nb-Ta mineralisation.

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Figure 4 Geological scheme of the environment of Villasrubias. Source; thesis Teresa Llorens 2011

Figure 5: General geological plan of the Tenement, showing location of Canalita Mine area

Figure 4 shows the geological setting of the plutonic rocks (differentiating the several types of igneous rocks within), with the inset detail showing the fracture's direction versus the main direction of the aplo-pegmatites. Figure 5 shows the relationship between the contact of the plutonic rocks and the metasediments where are buried (not outcropping) the pegmatite bodies.

PERTH: Unit 7, 100 Railway Road, Subiaco Western Australia 6008 POSTAL: PO Box 2006, Subiaco WA 6904 Telephone: [phone] Facsimile: [phone]

GREENLAND: Nuugaarmiunut 523B, PO Box 156, Narsaq, Greenland 3921 WEB: www.ggg.glEMAIL: [e-mail]: 85 118 463 004

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