Sky Metals : Tin Projects Exploration Update

ASX: SKY

ASX ANNOUNCEMENT

4 April 2022

TIN PROJECTS - EXPLORATION UPDATE

Tallebung TIN Project

•  Strong broad tin mineralisation confirmed with assays for 4 of the 10 holes completed at the Tallebung Tin Project now received. Results include:

  • TBRC024: 23m @ 0.23% tin from 86m to EOH, including; 4m @ 0.54% tin from 87m and; 1m @ 2.67% tin from 96m

  • TBRC022: 15m @ 0.11% tin from 88m

•  Assays for the remaining 6 of the 10 holes completed in this program are still pending and are expected in the next fortnight.

•  Successful start to TOMRA ore sorting trial, almost quadrupling of tin grade with +90% recovery.

Doradilla TIN Project

•  Three diamond drill holes completed designed to further extend the 3KEL Target - Assays are pending.

•  RC drilling rig has been secured to mobilise in the next fortnight to advance the 3KEL Target, testing tin and zinc mineralisation over a broad 2.8km strike length.

Figure 1: RC Drilling Rig at the Tallebung Tin Project, on the edge of the historic Tallebung open cut pit.

SKY METALS LIMITED

[phone]

207 BYNG STREET, ORANGE NSW 2800

WWW.SKYMETALS.COM.AUABN 46 098 952 035

SKY Exploration Manager Oliver Davies commented "These initial drill results from the Tallebung Tin Project are encouragingly consistent with SKY's rationale of assessing Tallebung as a shallow, large, bulk tonnage, open cut mine target. Drill results combined with initial ore sorting results are building confidence around potential scenarios for economic extraction. We eagerly anticipate the remaining assay results from the successful RC drilling at Tallebung over the next few weeks and look forward to the arrival of the RC drilling rig at Doradilla to continue SKY's expansion of the 3KEL Target. SKY is continuing to quickly advance our tin exploration portfolio as the tin price continues to push AUD60,000/t."

The Board of Sky Metals Limited ('SKY' or 'The Company') is pleased to provide an update on tin focussed exploration activities at the Tallebung Project and the 3KEL Target at the Doradilla Project, both in NSW.

Tallebung project: TIN- Tungsten (EL 6699, SKY 100%)

Tallebung Target - RC Drilling

Nine of the eleven planned RC holes and one redrilled hole, for ten holes altogether, for a total of 1,217m, were completed at the historic Tallebung Tin Mine, designed to test for further up dip, shallow bulk tonnage tin mineralisation. Assays for four of the ten holes completed at Tallebung have been received and all holes have intercepted broad strong tin mineralisation. Results include:

• TBRC014: 1m @ 0.1% tin from 37m including,

  1m @ 0.11% tin from 47m.

• TBRC022: 1m @ 0.07% tin & 0.16 tungsten from 43m.

  15m @ 0.11% tin & 0.04% tungsten from 88m including,

  3m @ 0.15% tin, 0.09% tungsten & 19g/t silver from 88m and,

  3m @ 0.43% tin & 0.06% tungsten from 100m.

• TBRC023: 6m @ 0.13% tin & 0.09% tungsten from 56m.

  13m @ 0.10% tin, 0.05% tungsten, 0.65% zinc & 19g/t silver from 85m including,

  4m @ 0.15% tin, 0.11% tungsten, 0.77% zinc & 42g/t silver from 85m.

  3m @ 0.17% tin, 0.11% tungsten, 1.00% zinc & 37g/t silver from 116m to EOH.

• TBRC024: 3m @ 0.28% tin from 11m.

  10m @ 0.13% tin & 0.04% tungsten from 48m.

  23m @ 0.23% tin from 86m to EOH including,

  4m @ 0.54% tin, 0.05% tungsten from 87m and,

  1m @ 2.67% tin, 0.03% tungsten, 2.50% zinc & 28g/t silver from 96m

TBRC023 was abandoned before reaching target depth and, as such, mineralisation remains open past the end of hole. TBRC024 was also ended prematurely as it intercepted strong ground water and, therefore, mineralisation in TBRC024 is also open past the end of hole. Further drilling is planned to further test these new intercepts and extend them past the end of holes for TBRC023 and TBRC024.

All remaining holes with assays still pending successfully intercepted broad zones of quartz veining and alteration prospective for tin. Assays for the remaining holes are anticipated to be received in the next fortnight.

Further RC drilling is being planned for Tallebung either in the next fortnight or following the RC drilling at Doradilla to continue this program and expand the shallow Tallebung Tin Target. Tin mineralisation at Tallebung has a strike of over 1.2km and remains open along strike. This recent drilling by SKY demonstrates great potential to further increase the size of the Tallebung Target with shallow, up dip extensions to be targeted with further drilling.

Commodity	Sample	Weights	Feed Grade	Sort Grade	Sort Ratio	Recovery	Upgrade
Tin	Product 1	2.98	0.19%	0.70%	26:74	96%	3.74
Waste 1	8.62	0.19%	0.01%	74:26	4%	0.05
Tungsten	Product 1	2.98	0.02%	0.06%	26:74	90%	3.50
Waste 1	8.62	0.02%	0.002%	74:26	10%	0.14

Tallebung Target - Ore Sorting Trial

A sample of the Tallebung tin mineralisation has been sent to TOMRA Ore Sorting Solutions in Sydney and has been sorted on an approximately 25:75 product to waste ratio. Assays have been received for this test work and show almost quadrupling of the grade with +90% recovery for both tin and tungsten (Table 2). These trial results are extremely encouraging for the application of ore sorting at Tallebung. Further work will be conducted with TOMRA to build on these very excellent, early trial results.

Table 1 - Tallebung Tin-Tungsten Project, Tallebung Target. Collar summary for drill holes.

Tin mineralisation at Tallebung is hosted as coarse cassiterite (tin-oxide) indicating favourable concentration by traditional gravity methods, most likely to be after preconcentration via ore sorting.

Figure 2: Tallebung Target - Cross section showing TBRC024 and other holes drilled on section within a 50m wide window.

TBRC024 is open up dip for over 100m to surface and will be tested with further drilling.

Hole ID	Easting (MGA)	Northing (MGA)	RL (m)	Dip	Azimuth (MGA)	Total Depth (m)	Comments
TBRC014	460626	6376534	28	-63	239.4	113	Completed
TBRC015	460744	6376598	287	-64	237.4	168	Completed
TBRC016	460540	6376633	291	-64	237.4	106	Completed
TBRC017	460605	6376564	288	-64	237.4	130	Completed
TBRC018	460549	6376691	289	-64	237.4	172	Completed
TBRC019	460428	6376819	292	-62	220.4	78	Abandoned due to hole deviation
TBRC020	460524	6376889	286	-60	245.0	-	To be drilled in next program
TBRC021	460594	6376771	287	-60	245.0	-	To be drilled in next program
TBRC022	460483	6376717	285	-60	244.4	132	Abandoned due to hole deviation
TBRC023	460419	6376892	289	-65	230.4	119	Completed
TBRC024	460735	6376477	291	-64	242.4	109	Abandoned due to strong ground water
TBRC025	460429	6376821	292	-57	220.4	90	Completed - Redrill of TBRC019

Figure 3: Tallebung Target - Plan view of the geology at Tallebung overlain by drillhole traces coloured by downhole tin assays (NB 5000ppm = 0.5% tin). RC holes in this latest program are shown by the red traces with yellow labels.

Table 2 - Tallebung Tin-Tungsten Project, Tallebung Target. Collar summary for drill holes.

Table 3 - Tallebung Tin-Tungsten Project, Tallebung Target. Significant drillhole intersections.

Hole ID	From	To	Interval	Sn	W	Zn	Ag	Comment
(m)	(m)	(m)	%	%	%	g/t
TBRC014	36	37	1	0.10	-	-	3.7
47	48	1	0.11	-	-	-
TBRC022	43	44	1	0.07	0.16	-	-
88	103	15	0.11	0.04	-	6.3
100	103	3	0.43	0.06	-	3.7
TBRC023	56	71	15	0.06	0.06	0.35	3.3
including	56	62	6	0.13	0.09	-	4.2
85	98	13	0.10	0.05	0.65	19
including	85	89	4	0.15	0.11	0.77	42
116	119	3	0.17	0.11	1.00	37	Open to EOH
TBRC024	11	14	3	0.28	0.01	-	4.9
48	58	10	0.13	0.04	-	4.3
86	109	23	0.23	0.02	0.20	3.4	Broad mineralisation - open to EOH
including	87	91	4	0.54	0.05	0.16	2.9
including	96	97	1	2.67	0.03	2.5	28

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

3KEL Target - Diamond Drilling

Three diamond core holes for a total of 697.8m have been completed at the 3KEL target. An RC drilling rig has been secured to continue the drilling at 3KEL in the next fortnight. The first hole (3KDD016) to be completed on this latest round of diamond drilling at 3KEL targeted depth extensions under 3KRC012 (Figure 1), 3KDD012 results included:

3KRC012: 37m @ 0.31% tin from 91m,

15m @ 0.16% tin from 69m,

5m @ 0.23% tin from 44m.

3KDD017, the second of this latest program tested under the zinc mineralisation discovered 500m along strike from 3KRC012 in 3KDD013. The final hole planned in this program, 3KDD018, was drilled as a wide diameter hole to provide a sample for metallurgical testwork. This hole was planned to intercept the high-grade tin mineralisation in 3KRCD007, results included:

3KRCD007: 42m @ 0.41% tin from 37m including, 7m @ 1.31% tin & 0.22% copper from 63m

Visual logging of this hole has strongly indicated that it has successfully intercepted the high-grade tin zone as planned - Assays are pending.