Western Mines Group Ltd. updated shareholders on the completion of diamond drill hole MTD022, and wedge MTD022W1, at the Mulga Tank Ni-Cu-PGE Project, on the Minigwal Greenstone Belt, in Western Australia's Eastern Goldfields. Hole MTD022 was designed to test the centre of the W Conductor MLEM anomaly (2,000-3,000S) and follow- up on Phase 1 holes MTD012 and MTD013 that showed multiple occurrences of visible nickel sulphide veins (ASX, Two Zone of Visible Nickel Sulphides in Hole MTD012, 4 May 2022; Multiple Zones of Visible Nickel Sulphides in Hole MTD013, 16 May 2022). MTD022 and MTD022W1 intersected a 506m thick package of high MgO adcumulate dunite ultramafic containing disseminated magmatic sulphides (trace to 2%) that in places coalesced into interstitial blebs (3 to 5% sulphide).

The sulphides started from 120m downhole, with multiple broad +10m zones with pXRF readings >0.4% Ni - best indication to date of potential for relatively shallow Type 2 Mt Keith-style mineralisation. Towards the end of the hole, near the basal contact of the complex, three intersections of high-tenor remobilised massive nickle sulphide were observed (confirmed by spot pXRF readings up to 57% Ni). These remobilised sulphide intersections (10-30cm in width) were significantly larger than those previously seen in holes MTD012 and MTD013.

This may indicate closer proximity to a massive sulphide source and hole MTD022W1 was cased for a follow-up DHEM survey of this area. WMG has designed a six-hole diamond drilling program, totaling 4,000-5,000m, to test a number of follow-up targets based on the results of the Company's first drilling program and ongoing exploration targeting work. The targets and drill holes selected are based on a combination of geophysical modelling of recent DownHole Electromagnetic (DHEM) results and previous Moving Loop Electromagnetic (MLEM) results along with geological interpretation of the complex and geochemical vectoring work (ASX, Phase 2 Drilling has Commenced at Mulga Tank, 28 November 2022).

HOLE MTD022 Hole MTD022 (planned hole MTP022) was designed to test the centre of the W Conductor MLEM anomaly (2,000-3,000S) at depth between previous Phase 1 holes MTD012 and MTD013. Holes MTD012 and MTD013 showed multiple occurrences of visible nickel sulphide veins (ASX, Two Zone of Visible Nickel Sulphides in Hole MTD012, 4 May 2022; Multiple Zones of Visible Nickel Sulphides in Hole MTD013, 16 May 2022) that were confirmed by geochemical assay (ASX, Further Ni-Cu-PGE Assay Results from Mulga Tank, 2 September 2022) and recent mineralogical thin section work (ASX, Phase 2 Drilling has Commenced at Mulga Tank, 28 November 2022). The hole was drilled to a depth of 558.5m before the drill rods became stuck in broken ground.

The drilling largely confirmed WMG's geological modelling work with the hole intersecting 474.2m of variably serpentinised and talc-carbonate altered high MgO adcumulate dunite ultramafic (from 84.3-558.5m), beneath 84.3m of sandcover (0-84.3m). Disseminated magmatic sulphides (trace to 2%) were observed down the majority of the hole, starting from around 120m depth. In places the disseminated sulphides coalesced into interstitial blebs (3 to 5% sulphide) between olivine crystals (Appendix - Table 2).

Similar sulphide mineralisation was observed in Phase 1-hole MTD020 and recent mineralogical investigation work by the Company has shown the sulphide component of that hole to be dominated by relatively coarse pentlandite blebs (ASX, Phase 2 Drilling has Commenced at Mulga Tank, 28 November 2022). A significant intersection of remobilised nickel sulphide (logged as pentlandite and millerite) was observed at 553.1m depth, just before the drill bit and rods became stuck. Given this encouraging visual observation the decision was made to cut the drill rods and wedge off the hole in order to continue drilling to the basal contact target.