Western Mines : Completion of Hole MTD014A - Planned Follow-up Hole MTP022

ASX RELEASE

26 MAY 2022

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COMPLETION OF HOLE MTD014A: PLANNED FOLLOW-UP HOLE MTP022

HIGHLIGHTS

• Third diamond hole at Mulga Tank is now complete with MTD014A drilled to 396.6m depth on western margin of the intrusion, 600m north of previous hole MTD013
• MTD014A encountered different geology to the first two holes, with komatiite ultramafic indicating a higher position in the system and appearing to confirm the exploration model for the Panhandle feature
• High-tenornickel sulphides were observed in hole MTD014A with spot pXRF readings up to 11.5% Ni
• Based on results and information from the first three holes the exploration team has planned additional follow-up hole MTP022 to further test the western margin at depth
• Rig has now commenced hole MTD015 to the north, testing the central neck of the Panhandle
• The drilling program continues to yield valuable new geological information to aid WMG's ongoing hunt for high-grade nickel sulphide deposits at Mulga Tank

Western Mines Group Ltd (WMG or Company) (ASX:WMG) is pleased to update shareholders on the completion of the third hole of the diamond drilling program at the flagship Mulga Tank Ni-Cu-PGE Project, on the Minigwal Greenstone Belt, in Western Australia's Eastern Goldfields. Different geology was encountered in hole MTD014A with komatiite ultramafic indicating a higher position in the system, yielding new geological information and largely confirming WMG's modelling of the Mulga Tank intrusion and associated Panhandle feature.

MTD014A was drilled to a depth of 396.6m to test the western basal margin of the intrusion and the up-dip component of the W Conductor target. Interbedded komatiite ultramafic flows and metasediments were observed down the hole above a basalt footwall. Remobilsed nickel sulphide blebs were seen infrequently within some of the komatiite layers, confirmed by spot pXRF readings up to 11.5% Ni.

Commenting on the Mulga Tank Project, WMG Managing Director Caedmon Marriott said:

"The first three holes of the program tested approximately 2km strike of the previously unexplored western margin of the Mulga Tank intrusion. Whilst testing the up dip component of the modelled W Conductor EM plate they largely drilled over the top of it. Given the very encouraging remobilised sulphides seen in holes MTD012 and MTD013 we have planned a new hole MTP022 to test beneath these at depth, towards the centre of the W Conductor target."

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ASX RELEASE | COMPLETION OF HOLE MTD014A: PLANNED HOLE MTP022

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MULGA TANK DIAMOND DRILLING PROGRAM

WMG is undertaking an initial ten-hole diamond drilling program, totalling 4,050m, at the Mulga Tank Ni-Cu-PGE Project. The program aims to test numerous drill targets designed from the Company's geological targeting work (ASX, Major EM Targets Identified at Mulga Tank Ni-Cu-PGEProject, 7 March 2022; Mulga Tank Ni-Cu-PGE Project: Major Targets Drill Ready, 6 April 2022).

HOLE MTD014A

The third hole of the program MTD014A (planned hole MTP014) was commenced on 13 May and completed on 20 May, after an initial hole MTD014 had to be abandoned due to a lost bit in hole. The hole was drilled to a total depth of 396.6m and was designed to test the western margin of the intrusion and the up dip component of the W Conductor. The hole intersected 213.5m of interbedded fine grain ultramafic komatiite flows and metasediments (from 140m-353.5m), beneath 96.5m of sand cover (0-96.5m) and 43.5m of Permian mudstone (96.5-140m), before encountering a footwall consisting of interbedded cherts, black shales and basalt (353.5-396.6m) at 353.5m depth.

The komatiite ultramafic intervals were generally 10m to 30m down hole thickness, with 1m to 5m thick intervals of metasediments. This likely indicates a distal flank position, away from the main komatiite channel. This new information appears to confirm WMG's geological model, with the interpreted main channel centre lying to the north, to be tested by hole MTD015 currently being drilled.

Visible nickel sulphides were seen in the hole, predominantly pentlandite-pyrrhotite, with a blebby texture indicating they were likely remobilised. Nickel mineralisation was less frequently occurring than in the first two holes MTD012 and MTD013.

DOWN HOLE pXRF

The Company is methodically using a portable X-ray fluorescence (pXRF) device on site as part of its exploration and geochemical vectoring approach during the drilling program. Spot pXRF readings for hole MTD014A were taken at 50cm intervals down the core, with 533 readings collected from 136m to the end of the hole.

This data is processed using WMG's in-house techniques and used to confirm the presence of working magmatic mineral processes and lithogeochemical vectors to aid further exploration and drill targeting. Processed pXRF data is presented for hole MTD014A below.

Cautionary statement on pXRF

pXRF data is used as an exploration tool and a guide only and should never be considered a proxy or substitute for laboratory analysis. The measurements recorded are for a single spot location and may not be representative of the whole rock. Only subsequent laboratory geochemical assay can be used to determine the widths and grade of mineralisation. WMG will update shareholders when laboratory results become available.

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ASX RELEASE | COMPLETION OF HOLE MTD014A: PLANNED HOLE MTP022

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Figure 1: Photo showing examples of visible sulphides in hole MTD014A

Note: core is NQ2 being 2 inches or 50mm diameter

The mean average Ni value across all the 533 readings for the hole was 0.16% Ni, the mean average for 437 readings of the logged ultramafic portion of the hole was 0.19% Ni, with individual spot values of up to 11.5% Ni where sulphide mineralisation was observed.

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ASX RELEASE | COMPLETION OF HOLE MTD014A: PLANNED HOLE MTP022

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Figure 2: Processed pXRF data for hole MTD014A

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ASX RELEASE | COMPLETION OF HOLE MTD014A: PLANNED HOLE MTP022

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NEXT HOLE

The rig has now moved north and has commenced drilling at planned hole MTP015. This hole targets the neck of the "Panhandle" - a channel-like feature of the Mulga Tank intrusion that extends to the northwest. The hole is planned to around 500m depth and aims to gain a greater understanding of the geology of this area. Note: Hole prefix MTP indicates planned hole but holes may or may not be drilled in this order.

Figure 3: Mulga Tank MLEM late channel CH43BZ image showing EM plates

and WMG's planned drill holes

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