Orion Minerals : Cu & Zn VMS and intrusive Ni-Cu-PGE intersections drilled

ASX/JSE RELEASE: 25 JANUARY 2021

Multiple copper sulphide intercepts within large VMS system at

Boksputs opens up exciting new discovery opportunity

Deep diamond drill hole still in progress intersects numerous mineralised zones across multiple horizons at

southern end of a 3km long mineralised system 125km north-west of the Prieska Copper-Zinc Project

Significant zones of copper, zinc and nickel-copper-PGE mineralisation intersected across all key prospects tested as part of the high-impactnear-mine and regional drilling program across Orion's tenement holdings in the Northern Cape Province, South Africa.

Results confirm the under-explored nature of the Areachap Province and the substantial opportunity for a major discovery, both in the near-mine environment around the fully-permitted Prieska Copper-Zinc Project, and the broader region.

A key focus will be the greenfields Boksputs Project, located 125km north-west of Prieska, where a deep diamond drill hole has intersected numerous zones of VMS copper mineralisation across multiple horizons, with initial assays including 5m at 1.09% Cu and 0.13g/t Au from 393.00m and 1m at 2.25% Cu and 0.32g/t Au from 498.45m.

The hole is still in progress to test an electro-magnetic (EM) conductor within a large VMS mineralised package with multiple historical intercepts, EM anomalies, outcropping exhalites and mineralisation over an area extending over 3km by 1km.

Intensive follow-up drilling is planned, including to target a strong 3000 Siemens conductor located 3km north of the current drill hole (compared with the current 400S conductor).

Drilling at the Kielder Project, located 15km from Prieska, has intersected high-grade base metal mineralisation close to surface, successfully validating historically reported copper and zinc sulphide mineralisation across two VMS prospects.

Plus, at the Jacomynspan nickel-copper deposit, 68km north-west of Prieska, drilling has intersected three shallow zones of net textured sulphides with a best intercept of 6.03m at 0.60% Ni, 0.31% Cu, 0.19g/t Pd, 0.21g/t Pt and 0.20g/t Au from 145.36m, including 1.10m at 1.23% Ni and 0.69% Cu from 146.35m.

Orion's Managing Director and CEO, Errol Smart, commented:

"We could not have asked for a better start to 2021. Against the backdrop of soaring base metal prices and a fantastic outlook for copper, zinc and nickel amidst a stimulus-fuelled global economic recovery, we have been able to deliver some very exciting exploration news from the pre-Christmas drilling across our extensive Areachap tenement holdings in the Northern Cape.

"The strategic significance of all these targets is that they form part of a world-class exploration package that is underpinned by our fully-permitted Prieska Copper-Zinc Project - which remains one of the few advanced base metal assets worldwide ready to move into construction this year. Some of the targets are 'near-mine' opportunities that could quickly develop into satellite ore sources for the Prieska mill. Others sit further afield and have demonstrated strong geological potential to emerge as potential major new VMS discoveries of a similar size to Prieska, or perhaps even bigger."

Orion Minerals Limited	www.orionminerals.com.au
Incorporated in the Commonwealth of Australia
Suite 617, 530 Little Collins Street, Melbourne, Victoria 3000	ASX Code: ORN
ACN: 098 939 274	JSE Code: ORN
Ordinary shares on issue: 3,414m I Options on issue: 234m	ISIN: AU000000ORN1

"The project that has really caught our attention is Boksputs, which fits the latter category. It was originally drilled by Anglo American back in 1973 and yielded some promising copper intercepts, despite patchy information being available. We know that it sits within a large syncline, has outcropping mineralisation, historical intercepts and EM anomalies over a massive area of 3km by 1km, and exhibits all the lithologies and characteristics of a very large VMS system.

"Our first diamond drill hole, targeting a 400 Siemens EM conductor at one end of the syncline, has intersected multiple zones of copper-bearing sulphide mineralisation associated with chloritization and magnetite. The hole is still in progress, but the evidence we are seeing from the drill core is that we are in a very big VMS system - which really excites us.

"Based on the encouraging results so far, we intend to substantially accelerate exploration at Boksputs, including a further deep diamond drill hole to test a strong 3000S EM conductor 3km to the north at the other end of the syncline, along with surface EM and RC drilling across the entire strike length of the structure.

"Elsewhere, drilling at the Kielder Project, located just 15km from Prieska, intersected shallow high-grade base metal mineralisation, validating historical results and elevating this as a priority near-mine opportunity. Meanwhile at Jacomynspan, 68km to the north-west, we have intersected multiple zones of shallow higher grade Ni-Cu-Co-PGE-Au mineralisation that may have importance for open pit mining potential and secured samples for metallurgical test work. This is another promising growth opportunity for the Company.

"We expect the next six months to be a transformational period for Orion as we step-up exploration and secure the financing to start construction at Prieska. This is a project whose time has well and truly come, and we are excited about the opportunity to finally bring it to fruition, for the benefit of our shareholders and the communities in the Northern Cape region. We see this district being a long-term source of high-quality base metal concentrates that will help to support the 'new era' of global economic growth which is widely expected to unfold this decade."

Orion Minerals Limited (ASX/JSE: ORN) (Orion or the Company) is pleased to report highly encouraging results from high-impact exploration drilling programs targeting near-mine and regional volcanogenic massive sulphide (VMS) copper-zinc and nickel-copper targets around its flagship Prieska Copper-Zinc Project (Prieska Project) in South Africa's Northern Cape.

Drilling was undertaken during the December 2020 Quarter on the Prieska Copper-Zinc Mine (PCZM), Namaqua- Disawell and Masiqhame prospecting rights, including the K3 and K6 prospects at the Kielder Project within the Dooniespan Prospecting Right, the Jacomynspan and Area 4 prospects within the Namaqua-Disawell Prospecting Right, the B4 anomaly on the Boksputs Prospect and at the Kantienpan Prospect on the Masiqhame Prospecting Right (Figure 1).

Base metal sulphides were intersected at all five prospects drilled, with the drilling program delivering highly encouraging early results despite being impacted by restrictions associated with the COVID-19 pandemic, a reduction in field staff, slower sampling and assay turnaround and the lack of availability of down-hole geophysical instruments that are currently stranded in Australia due to logistical challenges.

Despite these temporary challenges, Orion intends to substantially expand its exploration activities within the Areachap Province in the coming weeks given the very promising results generated so far and the potential to unlock major new growth opportunities for the Company.

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Figure 1: Location map showing the prospects where drilling was undertaken during the 2020 drilling program.

Boksputs Prospect - Masiqhame

Potential for a large-scale greenfields VMS discovery

The Boksputs copper prospect is located close to the northern boundary of the Masiqhame prospecting right, some 125km NNW of the Prieska Project (Figure 1).

Copper mineralisation was discovered by Anglo American Corporation in 1973 following an airborne electromagnetic (EM) survey, ground geophysics and soil geochemistry. The prospect was tested with 12 shallow diamond drill holes.

The B4 EM anomaly was detected by Orion using fixed loop time domain electromagnetic (FLTDEM) follow-up of previously generated SkyTEMTM anomalies at Boksputs. Modelling of the data revealed a 300m x 1,000m plate with a conductance of 400 Siemens (refer ASX release 20 October 2020). The plate fits the geology with the B4 conductor developed in the Kraalkop Synform, located stratigraphically below the historical VMS intersections reported in the Anglo American drill holes (Figures 2 and 3).

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Figure 2: Simplified geological map of the Boksputs Kantienpan Area showing the B4 conductor and Orion hole OBPD001.

Figure 3: Geological cross-section showing reported historical and recent intersections (historical intersections after Geringer et. al.1).

1 Geringer, G.J., Pretorius, J.J., and Cilliers, F.H., 1987. Strata-boundcopper-iron sulfide mineralisation in a Proterozoic front arc setting at Boksputs, Northwest Cape, South Africa - a possible Besshi Type deposit. Mineral Deposita 22, pp. 81 - 89 (1987).

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