AIC Mines : Significant Increase in Mineral Resources at Eloise

ASX ANNOUNCEMENT

14 December 2021

onlyAIC wns the Eloise Copper Mine, a high-grade operating

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.

underground mine located SE of Cloncurry in North Queensland.

useAIC also has two exploration proj cts in Western Australia, the Lamil JV located in the Pater on Province immediately west of the Telfer Gold-Copper Mine and the Marymia Project, within the Capricorn Orogen strategically located within trucking distance of the Plutonic

personalGo d Mine and the DeGrussa Copper Mine.

CAPITAL STRUCTURE

Shares on Issue: 308.7m

CORPORATE DIRECTORY Jo ef El-RaghyNon-ExecutiveChairman

Aaron Colleran

Managing Director & CEO

Br tt Montgomery

Non-Executive Director

Tony Wolfe

Non-Executive Director

Jon Young

Non-Executive Director

Linda Hale ForCompany Secretary

CORPORATE DETAILS ASX: A1M www.aicmines.com.au ABN: 11 060 156 452

1. [phone]

1. [phone]

1. [e-mail]

1. A8, 435 Roberts Rd, Subiaco, WA, 6008 Share Register:

Computershare Investor Services

Significant Increase in Mineral Resources

at Eloise Copper Mine

AIC Mines Limited (ASX: A1M) ("AIC" or the "Company") is pleased to report that additional survey data has allowed for an upgrade to the Mineral Resource estimate at the Eloise Copper Mine. Mineral Resources have increased to 103,500 tonnes of contained copper and 93,300 ounces of contained gold, representing a 58% increase in copper and a 55% increase in gold.

OVERVIEW

• The initial Eloise Mineral Resource estimate conducted by AIC in August 2021 was restricted to areas beyond historic mining activity due to a lack of survey data to accurately define the underground mining void. Additional surveying has now been completed to build an accurate void model and reclassify areas of mineral inventory as Mineral Resources.
• The updated Mineral Resource as at 30 June 2021 is estimated at 4.4 million tonnes grading 2.3% copper and 0.7g/t gold containing 103,500 tonnes of copper and 93,300 ounces of gold.
• As part of the resource update, re-evaluation of the historical drilling database has identified numerous opportunities for further resource growth throughout the mineral system.
• A second underground drilling rig will be mobilised to site in mid-January 2022 to accelerate infill drilling of the Inferred Resource - to upgrade to Indicated Resource status and potentially Probable Ore Reserves. The priority infill drill areas include the Deeps, Macy, Chloe and Levuka orebodies.
• Surface exploration drilling at the Macy Far North, Far West and East targets is planned to commence in March 2022.

Commenting on the resource upgrade, AIC Managing Director Aaron Colleran said:

"This Mineral Resource upgrade provides further evidence of the clear potential to extend the Eloise mine life beyond five years. AIC will now ramp-up exploration at Eloise, focusing on both extensions to the known resource areas and the discovery of new satellite lodes within the Eloise mining tenements."

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Mineral Resource Upgrade

Since taking ownership of the Eloise Copper Mine on 1 November 2021, AIC has completed a surveying program to accurately map all of the underground workings at the mine. This work has been used to build an accurate void model of the underground workings. This model has allowed AIC to upgrade mineral inventory within the Macy, Levuka North and South resource areas to Inferred Mineral Resource status. The requirement to complete the survey program was identified by AIC in its initial due diligence at Eloise and is a normal part of calculating Mineral Resources. The former owner of Eloise, a private company, had not kept the surveying up to date because it did not operate under the JORC Code (2012) reporting requirement.

The updated Mineral Resource (see Table 1 below) totals 4,442,000 tonnes contains 103,500 tonnes of copper and 93,300 ounces of gold representing a significant upgrade on the previous estimation. The Mineral Resources are reported and classified in accordance with the JORC Code (2012). Further information is provided in Appendix 1 to this announcement.

Table 1: Updated Eloise Mineral Resource as at 30 June 2021

	Resource Category		Tonnes		Cu Grade		Au Grade		Contained		Contained
			(%)		(g/t)		Copper (t)		Gold (oz)
	Measured	-	-	-	-	-
	Indicated	1,308,000	2.5	0.7	32,500	28,500
	Inferred	3,134,000	2.3	0.6	71,000	64,800
	Total	4,442,000	2.3	0.7	103,500		93,300
	Change	1,746,000	2.1	0.5	38,000		33,200

Mineral Resources are inclusive of Ore Reserves.

There is no certainty that Mineral Resources not included in Ore Reserves will be converted to Ore Reserves. Mineral Resources are estimated using a 1% Cu cut-off (above 0mRL) and 1.5% Cu (below 0mRL). Tonnages have been rounded to the nearest 1,000 tonnes.

The upgrade is contributed from Inferred Resources in the Macy, Chloe, Levuka and Deeps areas (see Figures 2 and 3). The upgrade is a result of incorporating the new void model as no additional drilling information (i.e. beyond 30 June 2021) was used for this update.

An underground void model contains three dimensional shapes (DTM's) that represent the size and location of all development and stoping excavations. The Eloise void model comprises of hundreds of DTM's that have been measured by the Eloise mine surveyors, from the upper levels of mine (1110mRL or 80m below surface level, "BSL") to the bottom level in the Deeps (-325mRL or 1,515m BSL). This model was not available when reporting the previous 30 June 2021 Mineral Resource.

The upgrade has increased the footprint of Mineral Resource that will be evaluated for future mining. This provides significant opportunity to convert the large Inferred Resource to Indicated status and potentially Probable Reserves by infill drilling these areas.

A second underground drilling rig will be mobilised to site in mid-January 2022 to accelerate infill drilling of the Inferred Resource. The priority infill drill areas include the Deeps, Macy, Chloe and Levuka orebodies.

The re-evaluation of the historical drilling and the mineral inventory from near surface to the Levuka South Deeps area (2km down plunge), has identified the opportunity for further resource growth throughout the entire mineral system. Specific target areas include Emmerson and along strike and down dip of the Macy, Chloe, Levuka and Deeps orebodies.

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Figure 1. Plan showing location of new Inferred Resources areas.

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Figure 2. Long Section (looking west) showing location of new Inferred Resource areas.

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Figure 3. Cross Section (looking north) showing location of new Inferred Resource areas.

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