Western Mines : Major EM Targets Identified and Mulga Tank Ni-Cu-PGE Project

ASX RELEASE

7 MARCH 2022

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MAJOR EM TARGETS IDENTIFIED AT MULGA TANK NI-CU-PGE PROJECT

HIGHLIGHTS

• 5 major bedrock conductors identified in the Central and Southern Sectors of the Mulga Tank MLEM survey
• W Conductor or "Mulga Monster" approximately 1,000m x 1,000m at ~3,000S conductance in geologically favourable position
• These EM targets potentially represent nickel sulphide mineralisation and are largely untested by historical drilling
• Geological and geochemical targeting work supports the EM results - confirming them as priority drill targets
• MLEM survey has now moved on to the final Northwest Sector of the intrusion
• Review of historical pXRF data is generating additional nickel geochemical vectoring drill targets
• WMG's combined geological, geophysical and geochemical targeting work is building a robust nickel exploration model for this lightly explored major ultramafic body
• Planning and logistical preparations are well underway for an initial 10-12 hole 4,000-5,000m diamond program

Western Mines Group Ltd (WMG or Company) (ASX:WMG) is pleased to update shareholders on the Company's nickel exploration targeting work at the flagship Mulga Tank Ni-Cu-PGE Project. Numerous exciting drill targets are emerging at the project. WMG's systematic exploration approach combining geophysical, geological and geochemical vectoring work continues to build a robust exploration model for the discovery of multiple nickel sulphide deposits within this very large and highly prospective ultramafic intrusion.

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

"The ongoing MLEM survey at Mulga Tank has now completed the Central and Southern Sectors of the intrusion and is moving on to the final Northwest Sector. Interim results from the survey highlight 5 major bedrock conductor targets that fit our growing understanding and exploration model of the intrusion. These geophysical anomalies haven't been tested by historical drilling, whilst our geological and geochemical vectoring work, in parallel with the geophysical survey, further supports them as exciting drill targets. All preparations for an initial 10-12 hole diamond drilling program are well underway to drill test this project as soon as we can."

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ASX RELEASE | MAJOR EM TARGETS IDENTIFIED AT MULGA TANK

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MULGA TANK MLEM

WMG is currently undertaking a high-powered Moving Loop Electromagnetic (MLEM) survey at Mulga Tank (ASX, Moving Loop EM Survey Commences at Mulga Tank Project, 7 October 2021) to explore for buried electromagnetic bedrock conductors that could be associated with deposits of massive Ni-Cu-PGE sulphides. This survey is part of series of ground geophysical methods being used to explore the Mulga Tank Dunite Intrusion (ASX, Geophysical Surveys to Unlock Mulga Tank Ni-Cu-PGEProject, 25 August 2021).

To date the survey crew has completed the Central and Southern Sectors of the intrusion and is now moving on to the final Northwest Sector. Interim results from the survey are presented below, with final results including the Northwest Sector, anticipated around mid-late March.

The MLEM survey highlights 5 major bedrock conductor anomalies within the Central and Southern Sectors of the intrusion (see Table 1, with initial imagery from the survey is shown in Figures 1 and 2). Combined with WMG's geological interpretation and nickel geochemical vectoring work, these MLEM conductors present themselves as robust drill targets.

	Figure 1: Mulga Tank Central and Southern Sector MLEM mid-late channel CH35BZ image
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ASX RELEASE | MAJOR EM TARGETS IDENTIFIED AT MULGA TANK

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Figure 2: Mulga Tank Central and Southern Sector MLEM late channel CH43BZ image

highlighting the W Conductor or "Mulga Monster"

Target	Aerial Size (m)	Conductance (S)	Depth to Top (m)	Comments
W Conductor	~1,000x1,000m	~2,000-3,000	~150-250m	Moderate conductance, shallow to
moderate E/ESE dip, shallow NE plunge
SW Conductor	~750x1,000m	~1,000-2,000	~100-150m	Moderate conductance, shallow to
moderate E dip, moderate NE plunge
S Conductor	~350x350m	~500-750	~100-125m	Low to moderate conductance, moderate
N dip 55-65
SE Conductor	~1,000x1,000m	~500-4,000	~150-250m	Low to moderate conductance, moderate
NW dip 50-65
	~150x500m	~2,000-3,000	~125-175m	Moderate conductance, moderate N dip
	50-60, shallow moderate NE plunge
NE Conductor
~450x600m	~1,250-1,500	~250-300m	Moderate conductance, shallow to
	moderate N dip 30-40

Table 1: Summary of Mulga Tank Central and Southern Sector MLEM targets

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ASX RELEASE | MAJOR EM TARGETS IDENTIFIED AT MULGA TANK

W AND SW CONDUCTORS

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Based on a number of factors the western margin and basal contact of the dunite intrusion is emerging as a priority exploration target and is the site of the largest and strongest MLEM target - W Conductor. The W Conductor itself has not been tested by any historical drill holes, whilst previous holes MRC09, MTD003 and MTD005 to the southwest provide strong support for the prospectivity of this target area:

MRC09 - vertical BHP hole (1983) on the intrusion margin showed 6m at 0.94% Ni from 63m to end of hole, including 2m at 2.00% Ni from 67m to end of hole

MTD003 - 1m at 1.12% Ni and 0.45g/t Pd from 209m close to basal contact of intrusion - the depth, Pd credit and visible sulphides in the core providing strong indication for primary nickel sulphide mineralisation processes in this area

To the north of holes MTD003 and MTD005, the western margin of the dunite intrusion remains completely untested for approximately 2.5km, including for 1.2km through the strongest central portion of the W Conductor. WMG's evolving geological exploration model for the project suggests this is a key target area that will be drill tested as part of the initial diamond drilling program.

Figure 3: 3D image of the Mulga Tank Dunite showing its interpreted outline, modelled EM plates

and gravity high features based on gravity inversion modelling

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ASX RELEASE | MAJOR EM TARGETS IDENTIFIED AT MULGA TANK

S AND SE CONDUCTORS

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Modelling of the geophysical results from the southeastern portion of the dunite intrusion highlights two bedrock conductor targets - the discrete S Conductor and the larger SE Conductor. The modelled EM plate for the SE Conductor lies outside the dunite intrusion and is likely a stratigraphic conductor in the footwall. Whilst this interpretation downgrades this target somewhat, the presence of sulphidic shales (noted in historical drilling e.g. nearby hole MTD009 that drilled predominantly outside the margin of the intrusion) is a key component of the overall working nickel sulphide mineral system, contributing sulphur to enable the ultramafic magma to reach sulphur saturation.

The S Conductor is an interesting discrete bedrock conductor target lying on the margin of the intrusion and associated with a gravity high feature. This part of the intrusion is completely untested by historical drilling, however the nearest drill hole MTD011 supports the prospectivity of the area, showing assay results of 1m at 1.95% Ni and 0.21g/t Pt+Pd from 102m and 1m at 0.83% Ni and 0.18g/t Pt+Pd from 114m, along with spot pXRF readings of over 9% Ni (discussed further in pXRF section below).

NE CONDUCTOR

Modelling of the NE Conductor highlights two distinct bed rock conductor targets that lie within the intrusion and along the margin of a gravity high feature. This major gravity feature is interpreted to be the main central core of the Mulga Tank Dunite. This part of the intrusion has seen relatively more historical drilling than the rest, with three holes MTD004, MTD007 and MTD010 all drilled in the area.

Historical hole MTD004 shows clear evidence for working nickel sulphide mineralisation processes in this area, with visual magmatic sulphides reported in the drill core and geochemical assay results of 0.75m at 0.85% Ni, 0.35% Cu and 0.28g/t Pt+Pd from 302m. This hole also has the most complete historical pXRF dataset and is used as an example below of how this technique will form a fundamental geochemical vectoring tool for the planned upcoming diamond drilling program.

REVIEW OF HISTORICAL pXRF DATA

WMG has recently processed and reviewed historical pXRF data from previous diamond drilling at the project in 2013. This forms a valuable additional dataset for the project and pXRF will be a key targeting tool employed by WMG in the Company's own diamond drilling - potentially able to help distinguish more prospective, or fertile, horizons in the dunite intrusion that can then be used to vector towards nickel sulphide mineralisation.

Hole MTD004 has the most complete historical pXRF dataset, with readings collected every 25cm over the entire core. This data has been processed using WMG's in-house methodology and an example of a horizon of interest is shown in Figures 5 below. The interval between 345m to 363m shows a high MgO ultramafic unit within the dunite. Ni, Cu and S all increase with depth whilst Cr decreases. These factors indicate that nickel sulphide mineralising processes are occurring and further targeting of this horizon, to where it potentially thickens, is certainly warranted. Geochemical assays at the base of this ultramafic layer returned 0.5m at 0.21% Cu from 360.5m and 0.4m at 1.04% Ni from 362.5m confirming the interpretation.

Historical pXRF data for hole MTD011, close to the S and SE Conductors, also shows evidence for working nickel sulphide mineralisation processes but several issues with the dataset have been observed. WMG plans to reanalyse the core at the Kalgoorlie Drill Core Library in order to better understand this interesting hole.

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