Sky Metals : Strong Visual Mineralisation at 3KEL - Doradilla

ABN 46 098 952 035

Drilling has already commenced on the next hole, 3KDD014, at 3KEL which will aim to extend the mineralisation intercepted in 3KRCD007, extending the mineralisation down plunge at depth (Figure 2 and 3).

SKY Exploration Manager Oliver Davies commented "The visual zinc mineralisation is very encouraging and shows that the large tin-polymetallicsystem at 3KEL remains open for over 2.5km.The presence of this strong zinc mineralisation over 500m from any previous drilling by SKY indicates that the system continues along strike and tin mineralisation may continue at depth for the length of the broad 3KEL Target."

SKY METALS LIMITED

 Diamond drilling is continuing, targeting expansions to the large tin-polymetallictarget at 3KEL.

 The 3KEL Target is a large-scale,zoned, tin-polymetallicsystem and remains open at depth and along strike for over 2.5km.

1m @ 4.23% Sn & 0.20% Cu from 121m

37m @ 0.31% Sn from 91m including,

3KRC012:

 Mineralisation in 3KDD013 represents a significant strike extension of 500m to the northeast from previous SKY hole 3KRC012:

 The first hole (3KDD013) of the new drilling program at the 3KEL Target has been completed and has returned a ~12m interval of visually strong zinc sulphide mineralisation.

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personalThe Board of Sky Metals Limited ('SKY' or 'The Company') is pleased to provide an update on exploration activities at the 3KEL Tin-PolymetallicTarget at the Doradilla Tin-Polymetallicproject in NSW.

DORADILLA project: TIN- polymetallic (EL 6258, SKY 100%)

3KEL Target - Diamond Drilling

The first drill hole in the new diamond drilling program to expand the large tin-polymetallic3KEL Target has intercepted strong visual zinc mineralisation over at least a 12m interval from approximately 145-157m(Figure 1). This visual mineralisation represents a 500m extension along strike of the large 3KEL Target to the northeast - assays are pending.

ForZinc sulphide (sphalerite) mineralisation is typical in large and zoned tin systems such as the 3KEL discovery. The sphalerite in the hole 3KDD013 occurs as bands, stringers and zones of semi-massivesulphides. The sphalerite is observed to be very pale, indicative of a high zinc content (Figure 1). High zinc sphalerite can contain up to 64% zinc.

Strong Visual Mineralisation at 3KEL - Doradilla

ASX: SKY

ASX ANNOUNCEMENT

1 December 2021

[phone]

207 BYNG STREET, ORANGE NSW 2800

WWW.SKYMETALS.COM.AU

For personal use only

Figure 1: 3KEL Target - Top: Diamond drill core in trays from first hole 3KDD013, 144.1-151.6m DH. Bottom: Close up of drill

core from 150.3-150.4 with pale honeycomb coloured semi-massive sphalerite - Assays are pending.

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Diamond drillhole 3KDD014 is planned to test depth extents to the high-gradetin mineralisation intercepted in 3KRCD007. Following this hole, a hole is planned to further extend the strike to the southwest and test under a previous high-gradetin intercept from historic aircore drilling which intercepted 42m @ 1.46% Sn from 0m (3KAC020). This hole is over 200m from any previous drilling by SKY and aims to further increase the strike at 3KEL. A large diameter hole also is planned to be

onlydrilled in the vicinity of 3KRCD007 to provide sample for further metallurgical test work over the next few months. At least six holes have been planned in this current program and will aim to continue expanding the strike and depth extents of the 3KEL mineralisation.

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ForFigure 2: 3KEL Target - Cross section of 3KRCD007 and location of next drillhole 3KDD014 to drill under 3KRCD007 to extend mineralisation down plunge at depth.

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Figure 3: Schematic Long Section of the 3KEL Target. Holes 3KRC005 and 3KRC008 were drilled from the same pad and both holes were abandoned before reaching the target depth.

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SKY has been granted two exploration licences in the New England Orogen covering areas of significant historical tin production - Emmaville & Gilgai. These areas were selected as they were considered to have considerable potential to host hardrock tin resource and limited modern day exploration has been conducted.

NEW ENGLAND project (El9200 & 9210, 100% SKY)

The Doradilla Project is located ~ 30km south of Bourke in north-westernNSW and represents a large and strategic tin project with excellent potential for associated polymetallic mineralisation (tin, tungsten, copper, bismuth, indium, nickel, cobalt, gold).

Doradilla Project (EL6258, 100% SKY)

The Tallebung Project is located ~70km north-westof Condobolin in central NSW. The project encompasses the historic Tallebung Tin Mining Field at the northern extent of the Wagga Tin Belt within the central Lachlan Orogen and is considered prospective for lode and porphyry- style tin - tungsten mineralisation.

Tallebung Project (EL6699, 100% SKY)

TIN PROJECTS

The Iron Duke project is located ~10km south-eastof Tottenham in central NSW. High grade copper-goldmineralisation has been intersected by previous explorers (e.g. 13m @ 1.56% Cu & 4.48g/t Au) and the mineralisation is open down dip to and to the south.

IRON DUKE (EL6064, BALMAIN OPTION; EL9191 100% SKY)

ABOUT SKY (ASX: SKY)

SKY is an ASX listed public company focused on the exploration and development of high value mineral resources in Australia. SKY's project portfolio offers exposure to the tin, gold, and copper markets in the world class mining jurisdiction of NSW.

GOLD PROJECTS

onlyCULLARIN / KANGIARA projects (EL7954; EL8400 & EL8573, HRR farm-in)

Under the HRR farm-in, SKY has now earned an 80% interest in the projects via the expenditure of $2M prior to the formation of a joint venture (ASX: 9 October 2019). Highlight, 'McPhillamys-style' gold results from previous drilling at the Cullarin Project include 148.4m @ 0.97 g/t Au (WL31) including 14.6m @ 5.1 g/t Au from 16.2m, & 142.1m @ 0.89 g/t Au (WL28) including 12m @ 4.4 g/t Au from 25.9m. The Cullarin Project contains equivalent host stratigraphy to the McPhillamys deposit with a similar geochemical, geophysical & alteration signature. SKY's maiden drill program was very successful including core hole HUD002 which returned 93m @ 4.2 g/t Au from 56m.

CALEDONIAN / TIRRANA PROJECTS ( EL8920, EL9048, EL9120 100% SKY)

Highlight, 'McPhillamys-style' gold results from previous exploration include 36m @ 1.2 g/t Au from 0m to EOH in drillhole LM2 and 81m use@ 0.87g/t Au in a costean on EL8920 at the Caledonian Project. The distribution of multiple historic drill intersections indicates a potentially large gold zone with discrete high-grade zones, e.g. 6m @ 8g /t Au recorded from lode at historic Caledonian Mines (GSNSW).

A strong, robust soil gold anomaly (600 x 100m @ +0.1ppm) occurs and most drillholes (depth ~25m) terminate in the mineralised zone.

COPPER GOLD PROJECTS

GALWADGERE (EL6320, 100% SKY)

The Galwadgere project is located ~15km south-east of Wellington in central NSW. High grade copper-gold mineralisation has been

intersected by previous explorers (e.g. 47m @ 0.90% Cu & 1.58g/t Au) and the mineralisation is open along strike and at depth. personalFor

Figure 4: SKY Location Map

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