AIC Mines : Drilling Results from Lamil Project, Paterson Province WA

ASX ANNOUNCEMENT

9 February 2022

ABOUT AIC MINES

AIC Mines is a growth focused

Australian	resources company.
Its strategy is to build a portfolio
of gold and copper assets in
Australia	through	exploration,
development and acquisition.
AIC Mines owns the Eloise
onlyC pper Mine, a high-grade
operating	underground	mine
locat	d SE of Cloncurry in North
Qu	nsland.
AIC Mines also has significant
gold,	copper	and	nickel
exploration projects in Western
A stralia and New South Wales.
useCAPITAL STRUCTURE
Shares on Issue: 308.7m
personal

CORPORATE DIRECTORY

Josef El-Raghy

Non-Executive Chairman

Aaron Colleran

Ma aging Director & CEO

Brett Montgomery

N n-Executive Director

T ny Wolfe

Non-Executive Director

Jon Young

Non-Executive Director

Linda Hale

Company Secretary

CORPORATE DETAILS

ASX: A1M

www.aicmines.com.au

ABN: 11 060 156 452

1. [phone]

1. [phone]
   ForE: [e-mail]

1. A8, 435 Roberts Rd, Subiac , WA, 6008 Share Register:
   Computershare Investor Services

Drilling Results from Lamil Project, Paterson

Province WA

AIC Mines Limited (ASX: A1M) ("AIC Mines" or the "Company") is pleased to report assay results from drilling completed at its Lamil Gold-Copper JV project ("Lamil") in September-October 2021. The results have confirmed copper sulphide mineralisation associated with an extensive mafic dolerite intrusive at the Lamil Dome Prospect and zinc-lead sulphide mineralisation hosted in carbonaceous sedimentary rocks at the Goodenia and Desert Pea targets.

HIGHLIGHTS

• The highest tenor of copper mineralisation was intersected in a drillhole testing the continuation of a mafic intrusion occupying the eastern flank of the Lamil Dome Prospect:

• 1. 1m grading 2.26% Cu and 51ppb Au from 90m in Hole 21ALRC0054
• Copper mineralisation on the eastern flank of the Lamil Dome Prospect has been defined over a strike length of approximately three kilometres but only tested by very wide-spaced drilling.
• Further drilling is clearly warranted now that it has been confirmed that the eastern flank area has the ability to generate high grades of copper.
• Broad intervals of elevated zinc and lead were intersected in two holes testing the Goodenia base metal target.
• 1. 32m grading 0.2% Zn+Pb from 90m in Hole 21ALRC0071

• 1. 16m grading 0.12% Zn+Pb from 62m in Hole 21ALRC0072
• Wide spaced drilling at Goodenia has now defined base metal anomalism over an area of four square kilometres but has not tested the large gravity anomaly at depth. Deeper drilling to intersect the gravity anomaly will be conducted in the 2022 field season.
• A second trend of elevated Zn was intersected at the Desert Pea target. It is associated with intense alteration and remains open in several directions.

Commenting on the Lamil drilling results, AIC Mines Managing Director Aaron Colleran said:

"An intercept of 2.26% copper from 90m justifies our exploration strategy and certainly warrants follow-up. The 2022 field season will be an exciting one as we use the data we have collected over the last two years to vector towards a possible discovery."

1

For personal use only

Lamil Project - Drilling Results

A total of 43 RC holes for 8,800m was completed across five prospects in September and October 2021 (Figure 1).

Figure 1. Location of targets drilled at the Lamil Project

Seven holes were drilled on the eastern margin of the Lamil Dome (see Figure 2) with the goal of intersecting the mafic (dolerite) intrusive, which returned anomalous copper results in the maiden 2020 drilling program. Hole 21ALRC0054 tested the 1.2km space between anomalous holes drilled in

2020 and returned the following anomalous intervals:

• 1m grading 2.26% Cu and 54ppb Au from 90m;
• 2m grading 0.04% Cu from 109m; and
• 2m grading 0.05% Cu from 119m.

This represents the highest copper grade returned at the project to-date and confirms the potential of the system to yield economic copper grades.

Copper mineralisation is typically in the form of chalcopyrite associated with discordant quartz- carbonate-pyrrhotite-pyrite veins located within 150m of the contact zone of the dolerite intrusive with the host metasedimentary rocks. A coherent zone (over approximately 4 kilometres) of albite alteration is associated with the zone of sulphides within both metasedimentary and mafic intrusive rocks (see Figure 3). This albite alteration is a key feature of many of the known mineral systems of the Paterson Province including the world-class Telfer Gold-Copper Deposit.

Drilling along this alteration zone remains very widely spaced. Further drilling is clearly warranted now that it has been confirmed that the zone has the ability to generate high grades of copper.

2

For personal use only

Figure 2. Locations of 2020 and 2021 drilling at the Lamil Dome, Lamil NE, Goodenia and Desert Pea targets

showing maximum copper downhole on RTP magnetics.

Figure 3. 3D image of modelled dolerite intrusive (green) in the Lamil Dome Eastern Flank showing maximum

copper intercepts.

3

For personal use only

Four holes for 840m were drilled at the Goodenia target (see Figure 2), with the aim of testing a conceptual base metal (Zn-Pb) target defined by co-incident magnetic and gravity anomalies located on the eastern margin of a Pb-Zn soil anomaly. Intervals of elevated zinc and lead where intersected in two holes proximal to the modelled gravity and magnetic anomaly centres (Figure 4), with the best results shown below.

Hole 21ALRC0071:

1. 32m grading 0.2% Zn+Pb from 74m, including
2. • 1m grading 0.28% Zn+Pb from 95m

1. 8m grading 0.18% Zn+Pb from 118m, including
2. • 2m grading 0.36% Zn+Pb from 119m

1. 4m grading 0.16% Zn+Pb from 198

Hole 21ALRC0072:

1. 16m grading 0.12% Zn+Pb from 62m, including
2. • 2m grading 0.39% Zn+Pb from 63m

1. 8m grading 0.15% Zn+Pb from 86m

Wide spaced RC drilling has now defined base metal anomalism over a 4km2 halo centred on the deeper gravity-magnetic response which is yet to be intersected by drilling (Figure 4). Encouraged by these results, diamond drilling is planned to reach beyond the depth of RC drilling capabilities to intersect the gravity anomaly in the 2022 field season.

At the Desert Pea target, fourteen holes for 2,813m were drilled with the aim of determining the nature of a series of magnetic anomalies proximal to an interpreted northeast trending fault, which are often implicated in mineral systems in the Paterson (Figure 2). The program was successful in confirming the presence of a northeast trending fault that has displaced metasedimentary units, however, magnetite gravels in the cover contribute to the magnetic response. Weakly elevated copper was intersected in one line of drilling (Figure 2), with the maximum response being associated with hole 21ALRC0062 which intersected a 30m thick interval of strong alteration (silicification and bleaching) containing disseminated sulphides (chalcopyrite, sphalerite and pyrite). Within this zone best results of 1m @ 0.11% Zn+Pb from 182m, and 2m @ 286ppm Cu from 163m was returned. A contingent hole was drilled 200metres further east of 21ALRC0062, assay results from this hole are pending.

Elevated zinc results were also returned from several other holes in the target area including 21ALRC0069 yielding a best result of 1m @ 0.24% Zn+Pb from 224m (Figure 5). These results define a NE trend that remains open along trend and to the east.

Assays results for the remainder of the program, predominantly testing the Lamil NE Prospect, are expected in late February. Integration of all assay results, geology and geophysical surveys will be used to prioritise follow-up drill testing during the 2022 field season.

4

For personal use only

Figure 4. Goondenia target showing 2020 and 2021 collars denoted by maximum zinc and lead downhole on bouger gravity image (top image) and oblique section showing Zn and Pb on hole traces with 'gravity shells' defining density anomalism (bottom image)

5