Cassini Resources : Drilling Commencing at Yarrawindah Ni-Cu-PGE Project

ASX Release (CZI)

13 May 2020

Drilling Commencing at Yarawindah Ni-Cu-PGE Project

HIGHLIGHTS:

• Latest exploration results identify new targets for immediate drill testing
• Drill rig mobilised to site
• Surface electromagnetic survey underway over significant new soil anomaly northwest of Brassica Prospect
• Regional prospectivity enhanced by greater extent of host mafic-ultramafic intrusions
• Multiple exploration fronts to progress

Cassini Resources Limited (ASX:CZI) ("Cassini" or the "Company") is pleased to provide an update on exploration activities at the Yarawindah Brook Project (the "Project"). The Project is located on agricultural land 20km south of the township of New Norcia, 100km northeast of Perth, Western Australia.

The Project is prospective for nickel, copper, cobalt and platinum group elements (primarily palladium and platinum). The Company's view on this emerging new nickel-copper-cobalt-PGE province has been validated by Chalice Gold Mines recent high-grade discovery at the Julimar Project, approximately 40km south of Yarawindah, within the same mafic/ultramafic intrusive province.

Soil and Electromagnetic Survey Results Present New Targets

The Company has recently completed a soil geochemistry program comprising 1,041 samples and surface electromagnetic (EM) surveys over an area of 3km2.

Soil geochemistry has identified a coincident Ni-Cu-Co and Pd-Pt anomaly approximately 750m to the northwest and along strike of the Brassica Prospect (Figure 1). The soil anomaly extends over 1km along strike and has peak values of 122ppm Ni, 644ppm Cu, 23ppm Co, 61ppb Pd & 86 ppb Pt, 10 times greater than background metal concentrations in the area. This soil anomaly is outside of the existing airborne and surface EM coverage and is a priority target. Significantly, the soil geochemical data over the Brassica Prospect, where minor Ni-Cu-PGE mineralisation was intersected in drilling last year are not anomalous in PGE. This suggests that this untested Brassica NW anomaly may be a significantly stronger and shallower mineralised position.

A surface EM survey over the new Brassica NW soil anomaly is underway. The survey, utilising the latest SQUID technology, is expected to take 10 days to complete. Potential new EM conductors, which may represent massive sulphide accumulations, will be a high priority for immediate drill testing. A late-time conductive anomaly, referred to as XC06, was previously identified by ground EM surveying on the southern edge of this new NW Brassica soil geochemical anomaly, at the limit of previous EM surveying. This anomaly has not previously been drilled and is plausibly part of a larger system of conductive bodies.

Concurrently, a diamond drill rig has also been mobilised to site to test several EM conductors that have been identified by the recent fixed loop EM survey north of the Ovis and Avena Prospects. A number of EM conductors have been identified and are supported by significant Ni-Cu & PGE results from historical and/or recent drilling and latest soil geochemistry results. A total of four holes for approximately 800m will be drilled, with each hole testing a separate EM and/or geological/geochemical target within the central Yarawindah Project area (Figure 2). At this stage, a 5th hole is contingent on results from the current EM survey at Brassica NW and review of the XC06 anomaly.

Figure 1. Brassica NW area showing PGE soil results and new target area for EM surveying.

Regional Prospectivity Enhanced by New Results

On ground exploration activities to date at Yarawindah have largely been focussed on a small portion of the Project centred around existing prospects due to constrains by the current land access agreements. The airborne EM survey completed in 2018 however has covered a much larger area within the existing tenement holding and these results have now been integrated with all other geological and geophysical data sets in our latest geological interpretations and targeting work. One of the important findings from this work is that mafic/ultramafic intrusions, which are generally considered to have relatively strong magnetic responses, may be effectively invisible in the magnetic data across the Project and are therefore likely to be significantly more extensive than previously believed. This significantly increases the extent of prospective host rocks and the exploration search space for Ni-Cu-PGE mineralisation within the Cassini project area.

Recently collected soil geochemical data has confirmed that this exploration method is well suited to the New Norcia Nickel Province, as it clearly highlights existing Ni-Cu and PGE prospects, identifies new anomalies and also maps different intrusive and basement lithologies. This technique provides a simple, low-cost and very effective tool to explore the Company's broader regional holdings. Soil results also support the finding that mafic/ultramafic lithologies are more extensive than previously believed.

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Figure 2. Effective drilling (>50m depth with Ni + Cu assays), soil geochemistry and EM conductors.

The upcoming program is the first step in a transition to project-scale exploration in a systematic fashion utilizing a range of new datasets and exploration methods. Our exploration work to date has indicated a greater extent of prospective host rocks than previously thought and highlighted a number of new, high- quality regional targets that need to be followed up. The first steps in project-scale exploration will include a staged expansion of the airborne EM coverage and soil geochemistry. The Company is also actively progressing land access approvals across the Project.

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Regional Context

Cassini's views on the strong potential of the region to host significant Ni-Cu-PGE mineralisation has been validated by Chalice Gold Mines recent high-grade sulphide discovery at the Julimar Project, approximately 40km south of Yarawindah. (Figure 3).

Such prospective mafic/ultramafic intrusive complexes are commonly associated with major regional gravity highs, which represent deeper-level accumulations of mafic material in the crust. This is also believed to be the case for the New Norcia Province. Importantly, Cassini's Yarawindah Project overlies the central part of the gravity anomaly near the intersection of two terrane-bounding structures.

Figure 3. Regional map of the New Norcia Nickel Province with known Ni-Cu-PGE prospects, interpreted mafic/ultramafic intrusions and key structures. Background is magnetics (greyscale) draped over gravity (hot colours representing highs) to demonstrate the potential source of mafic/ultramafic intrusions.

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Project Background

The Yarawindah Brook Project is located 100km northeast of Perth, on agricultural land near the township of New Norcia. The Company has a 80% beneficial interest in the Project which is prospective for nickel, copper, cobalt and platinum group elements (PGE's, namely palladium and platinum). Kalgoorlie-based prospector, Mr Scott Wilson, retains a 20% interest in the Project.

The Project has had limited nickel, copper and cobalt exploration, despite a favourable regional setting, prospective geology and near-surface occurrences of nickel and copper mineralisation. Previous drilling in 2007 returned several significant intercepts of sulphide mineralisation such as 7m @ 1.30% Ni, 0.22% Cu, 0.06% Co and 432ppb Pd from 74m (YWRC0083). No follow-up drilling was conducted.

The Yarawindah Brook project area was targeted by the Company because it represents a mafic- ultramafic intrusive complex, located at a major regional-scale structural intersection of the Darling Fault and the Meckering seismic zone. Such tectonic intersections are a first-order control on the formation of major Ni-Cu-PGE sulphide deposits. Several phases of previous exploration have confirmed the presence of Ni-Cu-PGE magmatic sulphides, associated with mafic and ultramafic intrusive rocks.

The Company completed an airborne electromagnetic survey (AEM) over the project in early 2018 identifying numerous conductors worthy of further investigation (see ASX Announcement 2 May 2018). A surface fixed loop electromagnetic (FLEM) survey was also completed over several of the higher priority AEM anomalies in order to confirm and better constrain the conductors prior to drilling.

The FLEM reinforced the XC05 (Brassica) and XC06 anomalies as priority targets as well as the AN01 (Ovis) and AN02 (Avena) conductors at the southern end of the main Yarawindah Prospect. The Company considers these results very encouraging for new target areas at a very early stage of exploration. The results to date have already demonstrated the Project's potential to host multiple magmatic nickel and copper deposits, given the Brassica and Avena Prospects are some 4km apart, with limited exploration between.

The Company has implemented appropriate health and safety protocols to deal with the COVID-19 pandemic to ensure the health and safety of its employees, contractors and communities in which it operates. Exploration at Yarawindah has been unaffected by recent travel restrictions in Western Australia and the Company expects to be able to advance its exploration programs over the coming months.

This report has been authorised for release by:

Richard Bevan

Managing Director

Cassini Resources Limited

Telephone: [phone]

E-mail:[e-mail]

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About the Company

Cassini Resources Limited (ASX: CZI) is a base and precious metals developer and explorer based in Perth. In April 2014, Cassini acquired its flagship West Musgrave Project (WMP), located in Western Australia. The Project is a new mining camp with three existing nickel and copper sulphide deposits and a number of other significant regional exploration targets already identified. The WMP is the largest undeveloped nickel - copper project in Australia.

In August 2016, Cassini entered into a three-stage $36M Farm-in/Joint Venture Agreement with prominent Australian mining company OZ Minerals Ltd (ASX: OZL). The Joint Venture provides a clear pathway to a decision to mine and potential cash flow for Cassini.

Cassini is also progressing its Mt Squires Gold Project (CZI 100%), and the Yarawindah Brook Nickel - Copper - Cobalt Project (CZI 80%), both located in Western Australia.

Competent Persons Statement

The information in this report that relates to Exploration Results is based on information compiled or reviewed by Mr Greg Miles, who is an employee of the company. Mr Miles is a Member of the Australian Institute of Geoscientists and has sufficient experience of relevance to the styles of mineralisation and the types of deposits under consideration, and to the activities undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Miles consents to the inclusion in this report of the matters based on information in the form and context in which it appears.

The Company is not aware of any new information or data, other than that disclosed in this report, that materially affects the information included in this report and that all material assumptions and parameters underpinning Exploration Results, Mineral Resource Estimates and Production Targets as reported in the market announcements dated 29 January 2018, 19 February 2018, 2 May 2018, 14 January 2020 & 16 April 2020 continue to apply and have not materially changed.

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ANNEXURE 1:

The following Tables are provided to ensure compliance with the JORC Code (2012) edition requirements for the reporting of the Exploration Results at the Yarawindah Brook Project.

Section 1: Sampling Techniques and Data (Criteria in this section apply to all succeeding sections)

	Criteria			JORC Code explanation		Commentary
	Sampling			Nature and quality of sampling (eg cut channels,		Cassini Geochemical Sampling
	techniques			random chips, or specific specialised industry		• Surface soil and auger soil samples were
				standard measurement tools appropriate to the
					collected by Cassini personnel on a
				minerals under investigation, such as down hole
					400x100m and 400x50m grid across the
				gamma sondes, or handheld XRF instruments, etc).
					Project.
				These examples should not be taken as limiting the
					• Surface soil samples were collected by
				broad meaning of sampling.
					digging a 30x30x20cm pit, homogenising and
						then collecting a bulk 1-2kg sample.
						• Auger soil samples were collected by digging
						a 10-30cm pit to the base of cultivated soil
						and then augering to 50cm depth with a 1-
						2kg bulk sample collected.
						• Soil samples were submitted to ALS
						(Wangara) for determination of Au, Pt and Pd
						and 48 elements.
				Include reference to measures taken to ensure		Sampling has been carried out under Cassini
				sample representivity and the appropriate calibration		protocols and QAQC procedures as per industry
				of any measurement tools or systems used.		best practice.
				Aspects of the determination of mineralisation that are		Cassini Geochemical Sampling
				Material to the Public Report. In cases where 'industry		Samples were dried at low temperature (max
				standard' work has been done this would be relatively
					60°c) and sieved to -180µm before analysis by
				simple (eg 'reverse circulation drilling was used to
					Fire Assay and ICP-AES for Au, Pt and PD and 4-
				obtain 1 m samples from which 3 kg was pulverised to
					acid digest with ICP-MS and ICP-AES finish for
				produce a 30 g charge for fire assay'). In other cases
					48 elements.
				more explanation may be required, such as where
				there is coarse gold that has inherent sampling
				problems. Unusual commodities or mineralisation
				types (eg submarine nodules) may warrant disclosure
				of detailed information.
			Drill type (e.g. core, reverse circulation, open-hole
	Drilling techniques				No drilling undertaken.
				hammer, rotary air blast, auger, Bangka, sonic etc)
				and details (e.g. core diameter, triple of standard
				tube, depth of diamond tails, face-sampling bit or
				other type, whether core is orientated and if so, by
				what method, etc).
	Drill sample			Method of recording and assessing core and chip		No drilling undertaken.
	recovery			sample recoveries and results assessed.
				Measures taken to maximise sample recovery and		No drilling undertaken.
				ensure representative nature of the samples.
				Whether a relationship exists between sample		No drilling undertaken.
				recovery and grade and whether sample bias may
				have occurred due to preferential loss/gain of
				fine/coarse material.
	Logging			Whether core and chip samples have been		No drilling undertaken.
				geologically and geotechnically logged to a level of
				detail to support appropriate Mineral Resource
				estimation, mining studies and metallurgical studies.
				Whether logging is qualitative or quantitative in		No drilling undertaken.
				nature. Core (or costean, channel, etc) photography.
				The total length and percentage of the relevant		No drilling undertaken.
				intersections logged.

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		Criteria			JORC Code explanation		Commentary
		Sub-sampling			If core, whether cut or sawn and whether quarter, half		Not applicable.
		techniques and			or all core taken.
		sample preparation
					If non-core, whether riffled, tube sampled, rotary split,		Samples were screened at the lab to 180µm.
					etc and whether sampled wet or dry.
					For all sample types, the nature, quality and		The sample type, size, fraction and analysis
					appropriateness of the sample preparation technique.		methodology has been assessed by a consultant
							geochemist and found to be appropriate for the
							project area.
					Quality control procedures adopted for all sub-		Field QC procedures involve the use of certified
					sampling stages to maximise representivity of		reference material (CRM) as assay standards and
					samples.		blanks along with field duplicates. The insertion
							rate of these averages 1:25.
					Measures taken to ensure that the sampling is		Analysis of field duplicates confirms the sampling
					representative of the in situ material collected,		is representative of the in situ material collected.
					including for instance results for field
					duplicate/second-half sampling.
					Whether sample sizes are appropriate to the grain		Sample sizes are considered appropriate for the
					size of the material being sampled.		regolith type, style of mineralisation, the sampling
							methodology and assay ranges for the primary
							elements within the Yarawindah Brook Project.
		Quality of assay			The nature, quality and appropriateness of the		Cassini Soil Samples
		data and laboratory			assaying and laboratory procedures used and		• All soil samples were submitted to ALS in
		tests			whether the technique is considered partial or total.
					Wangara.
							• Samples were submitted as bulk 1-2kg
							samples.
							• Samples were dried at the lab at low
							temperature (max of 60°c) before being
							screened to -180µm.
							• Au, Pt, and Pd were determined by fire assay
							fusion - lead flux with Ag collector using 30g
							lead fire assay with ICP-AES finish.
							• 48 elements were determined by four acid
							"near total" digest on 0.25g of sample with
							analysis by ICP-MS and ICP-AES.
							• This method is considered total for Au, Pt and
							Pd and near total for 48 elements.
					For geophysical tools, spectrometers, handheld XRF		Not applicable.
					instruments, etc, the parameters used in determining
					the analysis including instrument make and model,
					reading times, calibrations factors applied and their
					derivation, etc.
					Nature of quality control procedures adopted (eg		Laboratory QAQC involves the use of internal lab
					standards, blanks, duplicates, external laboratory		standards using certified reference material,
					checks) and whether acceptable levels of accuracy (ie		blanks, splits and replicates as part of the in-
					lack of bias) and precision have been established.		house procedures.
							Certified reference materials, having a good range
							of values, are inserted blindly and randomly.
							Repeat or duplicate analysis for samples did not
							highlight any issues..
		Verification of			The verification of significant intersections by either		Not applicable.
		sampling and			independent or alternative company personnel.
		assaying
					The use of twinned holes.		Not applicable.
					Documentation of primary data, data entry		• Geochemical sample coordinates and
					procedures, data verification, data storage (physical		geological information was recorded in field
					and electronic) protocols.		books and coordinates and track data from

handheld GPS's was saved.

• Field data is entered into Excel spreadsheets and sent to Geobase Australia for validation and compilation into a SQL database server.

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		Criteria			JORC Code explanation		Commentary
					Discuss any adjustment to assay data.		No assay data has been adjusted.
		Location of data			Accuracy and quality of surveys used to locate drill		Reported samples have been located with a
		points			holes (collar and down-hole surveys), trenches, mine		Garmin hand-held GPS with an accuracy of ±5m.
					workings and other locations used in Mineral		This is considered appropriate for exploration soil
					Resource estimation.		sampling.
					Specification of the grid system used.		The grid system for the Yarawindah Brook Project
							is GDA94 MGA Zone 50.
					Quality and adequacy of topographic control.		The tenement package exhibits subdued relief
							with undulating hills and topographic
							representation is sufficiently controlled.
		Data spacing and			Data spacing for reporting of Exploration Results.		Data spacing is 400x100m and 400x50m over
		distribution					selected areas.
					Whether the data spacing and distribution is sufficient		The soil sample spacing and distribution is not
					to establish the degree of geological and grade		sufficient to establish the degree of geological and
					continuity appropriate for the Mineral Resource and		grade continuity appropriate for a Mineral
					Ore Reserve estimation procedure(s) and		Resource.
					classifications applied.
					Whether sample compositing has been applied.		No compositing was applied.
		Orientation of data			Whether the orientation of sampling achieves		At this early stage of exploration, mineralisation
		in relation to			unbiased sampling of possible structures and the		thickness', orientation and geometry are not
		geological structure			extent to which this is known, considering the deposit		known.
					type.
					If the relationship between the drilling orientation and		No drilling undertaken.
					the orientation of key mineralised structures is
					considered to have introduced a sampling bias, this
					should be assessed and reported if material.
		Sample security			The measures taken to ensure sample security.		Sample chain of custody is managed by Cassini.
							Samples for the Yarawindah Brook Project are
							stored on site and delivered to the assay
							laboratory by Cassini.
		Audits or reviews			The results of any audits or reviews of sampling		A review of an orientation geochemical survey
					techniques and data.		was undertaken by an external consultant
							geochemist to ascertain the most appropriate,
							effective sampling and analysis methodology for

the Yarawindah Brook Project. The results showed the methodology employed by Cassini and reported in this announcement is appropriate for the regolith type and mineralisation styles encountered in the project area.

Section 2: Reporting of Exploration Results (Criteria listed in the preceding section also apply to this section)

	Criteria			JORC Code explanation		Commentary
	Mineral tenement and			Type, reference name/number, location and		Yarawindah Brook Project is located approximately
	land tenure status			ownership including agreements or material issues		15km SSE of New Norcia in the SW of Western
				with third parties such as joint ventures,		Australia and comprises three granted Exploration
				partnerships, overriding royalties, native title		Licence (E70/4883, E70/5166 and E70/5116).
				interests, historical sites, wilderness or national		Tenements are held by Southwest Metals Pty Ltd of
				park and environmental settings.		which Cassini Resources Limited has acquired 80%,
						and Mr Scott Wilson, retains a 20% interest.
						Cassini has entered into land access and
						compensation agreement with the property owners on
						which Yarawindah Brook, Avena, Ovis and Brassica
						Prospects are situated.
				The security of the tenure held at the time of		All tenements are in good standing and have an
				reporting along with any known impediments to		existing Aboriginal Heritage Access Agreements in
				obtaining a licence to operate in the area.		place. No Mining Agreement has been negotiated.

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	Criteria			JORC Code explanation		Commentary
	Exploration done by			Acknowledgment and appraisal of exploration by		The Yarawindah Brook Project area has been explored
	other parties			other parties.		for Ni-Cu-PGE mineralisation since the discovery of
						outcropping Ni-Cu gossans in 1974. A series of drill
						programmes conducted by various companies since
						that time mainly focused on near-surface, laterite-
						hosted PGE mineralisation culminating in the definition
						of a (historical, non-JORC compliant) resource of 2.9
						Mt at 0.79 g/t Pt+Pd (at 0.5 g/t cut-off) by
						Reynolds/AuDAX in 1989. Later drilling programmes
						and limited electromagnetic surveying was conducted
						by Washington Resources, resulting in intersections of
						massive Ni-Cu-PGE sulphides, however, on-ground
						exploration on the project area has been limited since
						the GFC in 2008. The work completed by previous
						operators is considered by Cassini to be of a high
						standard.
	Geology			Deposit type, geological setting and style of		The Yarawindah Brook Project is located within the
				mineralisation.		Jimperding Metamorphic Belt hosted in the Lake Grace
						Terrane at the SW end of the Yilgarn Craton. In the
						area of the Yarawindah Brook, outcrop is poor with
						deep regolith development. Regionally, the lithological
						trend is NW, with moderate to steep dips to the NE.
						The western portion of the project area is dominated by
						metasediments and gneiss containing lenses of mafic
						and ultramafic rocks. It is these mafic-ultramafic
						lithologies that are the hosts to Ni-Cu- PGE sulphide
						mineralisation and have been the main targets for
						exploration.
						The Yarawindah Brook Project is considered
						prospective for accumulations of massive, matrix and
						disseminated Ni-Cu sulphides, both within the mafic-
						ultramafic complex and as remobilised bodies in the
						country rocks.
			A summary of all information material to the
	Drill hole Information				No drilling undertaken.
				understanding of the exploration results including a
				tabulation of the following information for all
				Material drill holes:
				• easting and northing of the drill hole collar
				• elevation or RL (Reduced Level - elevation
				above sea level in metres) of the drill hole
				collar
				• dip and azimuth of the hole
				• down hole length and interception depth
				• hole length.
				If the exclusion of this information is justified on the		Not applicable, all information is included.
				basis that the information is not Material and this
				exclusion does not detract from the understanding
				of the report, the Competent Person should clearly
				explain why this is the case.
	Data aggregation			In reporting Exploration Results, weighting		Not applicable.
	methods			averaging techniques, maximum and/or minimum
				grade truncations (eg cutting of high grades) and
				cut-off grades are usually Material and should be
				stated.
				Where aggregate intercepts incorporate short		Not applicable.
				lengths of high grade results and longer lengths of
				low grade results, the procedure used for such
				aggregation should be stated and some typical
				examples of such aggregations should be shown in
				detail.
				The assumptions used for any reporting of metal		Not applicable.
				equivalent values should be clearly stated.

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		Criteria			JORC Code explanation		Commentary
		Relationship between			These relationships are particularly important in the		No drilling undertaken.
		mineralisation widths			reporting of Exploration Results. If the geometry of
		and intercept lengths			the mineralisation with respect to the drill hole
					angle is known, its nature should be reported. If it is
					not known and only the down hole lengths are
					reported, there should be a clear statement to this
					effect
					(eg 'down hole length, true width not known').
		Diagrams			Appropriate maps and sections (with scales) and		Refer to Figures in body of text.
					tabulations of intercepts should be included for any
					significant discovery being reported These should
					include, but not be limited to a plan view of drill hole
					collar locations and appropriate sectional views.
		Balanced reporting			Where comprehensive reporting of all Exploration		Figures within the announcement show locations and
					Results is not practicable, representative reporting		results of all relevant soil samples collected for the
					of both low and high grades and/or widths should		Brassica Prospect.
					be practiced to avoid misleading reporting of
					Exploration Results.
		Other substantive			Other exploration data, if meaningful and material,		All relevant exploration data is shown on figures, in text
		exploration data			should be reported including (but not limited to):		and Annexure 1.
					geological observations; geophysical survey
					results; geochemical survey results; bulk samples -

size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.

	Further work		The nature and scale of planned further work (eg
			tests for lateral extensions or depth extensions or
			large-scalestep-out drilling).

Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.

A discussion of further exploration work is outlined in the body of the report. Further exploration work will be determined based on the ongoing drill and surface geochemistry results, further geophysical surveys and geological interpretations.

All relevant diagrams and inferences have been illustrated in this report.

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