Aurelia Metals Limited ('AMI' or the 'Company') is pleased to provide an update on current exploration activities at the Federation prospect near Hera and in the Peak North and Kairos areas at the Peak Mine.

SHALLOW DRILLING AT FEDERATION RETURNS NEW HIGH GRADE RESULTS

The Company recently reported that shallow step-out drilling along strike at Federation had intercepted very strong polymetallic mineralisation, with FRC043 returning 18 metres at 24.7% Pb+Zn (ASX release 31 October 2019). Additional drilling results have now been received for follow-up holes in this area with intercepts to the southwest of FRC043 returning high base metal grades and also now including high grade gold: FRC046 3 metres at 5.8% Pb+Zn, 21.8g/t Au, 7g/t Ag, & 0.1% Cu from 72m

10 metres at 24.4% Pb+Zn, 14.2g/t Au, 12g/t Ag & 0.2% Cu from 92m, incl.

4 metres at 23.2% Pb+Zn, 30.2g/t Au & 10g/t Ag & 0.2% Cu from 95m

FRC057 29 metres at 26.6% Pb+Zn, 0.4g/t Au & 14g/t Ag & 0.7% Cu from 159m, incl.

The mineralisation in holes FRC046 and FRC057 is relatively shallow, with high grade zones commencing at approximately 65 and 130 metres below surface, respectively. The presence of strong gold mineralisation in multiple intercepts from hole FRC046 is encouraging, further enhancing the potential of the shallow gold zones previously announced. Massive sulphide mineralisation from FRC057 also represents the broadest base metal zone intercepted to date at Federation, located around 65 metres to the west-southwest of the high grades in FRC043.

The new results continue to confirm an overall east-northeast to northeast strike for the mineralised zones at Federation, although distribution of high grade within these areas is structurally complex. The prospect remains open in a number of directions, including at depth. Significant exploration and evaluation work is ongoing, with the Company progressing towards a JORC-compliant resource estimate for the deposit.

The Company is also pleased to report that it has received positive initial results from flotation test work on Federation sulphide mineralisation. Test work was designed to simulate the flotation parameters employed in the Hera processing plant. Both low and high grade composites were tested, with more than 91% lead and 92% zinc recovered to a bulk concentrate of +50% Pb+Zn in each case. It is noted that this work is preliminary in nature, and that further test work will be required to fully establish the geometallurgical characteristics of Federation, including potential gold recoveries.

HIGH GRADE GOLD MINERALISATION INTERCEPTED AT PEAK NORTH

Underground drilling has recently commenced at the Peak North prospect, located 150 metres along strike from the historic Peak Mine workings. Prior to recent exploration the prospect comprised an area of low-moderate grade Inferred resources with sparse historic drilling. Initial results have been highly promising, with high grade gold intercepted in multiple holes

UD19PP1572 9 metres at 17.7g/t Au, including 3 metres at 51.0g/t Au

UD19PP1573 5 metres at 28.4g/t Au, including 2 metres at 58.5g/t Au

UD19PP1583 9 metres at 6.6g/t Au, including 3 metres at 18.4g/t Au

UD19PP1571 10 metres at 4.0g/t Au, including 2 metres at 15.8g/t Au

Evaluation of the area is ongoing, with further assay results pending and additional underground drilling planned. Surface reconnaissance drilling further up-dip from the prospect is also currently being planned. The area is favourably placed with respect to existing underground infrastructure and the Company is currently reviewing potential development options. The latest drilling is aimed at upgrading a significant portion of the area to Indicated or Measured status for inclusion in the upcoming Resource and Reserve statement (July 2020).

SURFACE AND UNDERGROUND DRILLING ONGOING AT KAIROS

The Company has recently completed the first surface hole testing below the high grade Kairos lode. DD19PK0142A was drilled to a depth of 1,929.7 metres, making it one of the longest exploration holes completed in the Cobar Goldfield. The diamond hole passed around 150 metres below, and slightly to the north, of the mineralisation in underground hole UD19PK0140, previously reported to have a high grade copper zone of 25 metres at 3.0% Cu (ASX release 4 September 2019).

The hole passed through a number of favourable rhyolite-sediment contact zones, including below Kairos and a previously unknown contact 500 metres to the east of Peak. All assay results for the hole are pending, although areas of visual low to moderate grade copper mineralisation were noted. A second diamond wedge is currently underway to test the prospective zone along strike to the south. Underground infill drilling is also in progress in the upper portions of the Kairos lode. The additional drilling will provide increased confidence in the grade and tonnage estimates for the area, along with material for confirmatory metallurgical test work ahead of access later in the year.

This announcement has been approved for release by the Board of Directors of Aurelia Metals.

Contact:

Dan Clifford

Tel: +61 2 6363 5200

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