Alchemy Resources : Multiple Lithium Anomalies at Karonie

22 April 2022

BOARD AND MANAGEMENT

MR LINDSAY DUDFIELD

NON-EXECUTIVE CHAIRMAN

MR JAMES WILSON

CHIEF EXECUTIVE OFFICER

MS LIZA CARPENE

NON-EXECUTIVE DIRECTOR

MR ANTHONY HO

NON-EXECUTIVE DIRECTOR

MS CARLY TERZANIDIS

COMPANY SECRETARY

PROJECTS

LAKE REBECCA (ALY 100%)

KARONIE (ALY 100%)

LACHLAN (ALY 80%)

WEST LYNN (ALY 80%)

BRYAH BASIN (ALY 20%, TSX-V SGI 80%)

BRYAH BASIN (ALY 20%, SFR 80%)

1 Refer Global Lithium Resources Limited ASX Announcement 17 February 2022

Multiple Lithium anomalies at Karonie

HIGHLIGHTS

ASX: ALY

• ▪ An in-depth review of multi-element soil and drillhole geochemistry sampling data has highlighted areas of lithium and coincident indicator anomalism at the 100% owned Karonie tenements 110km east of Kalgoorlie.

• ▪ The multi-element signatures of these soil anomalies are consistent with possible hard rock lithium mineralisation associated with lithium-caesium-tantalum (LCT) type pegmatites.

• ▪ Lithium and pathfinder anomalism defined over an area of 7km x 1km at the new "Pecan, Mesquite, Hickory and Cherry Prospects".

• ▪ New anomalies sit 8km along strike and within contiguous tenure to Global Lithium Resources Limited's (ASX: GL1) 80% owned Manna Lithium deposit (9.9Mt @ 1.14% Li201).

• ▪ Ground truthing of anomalies has discovered outcropping pegmatites with up to 1km length which were not previously mapped by Geological Survey of WA (GSWA).

• ▪ 4 new high priority lithium targets to test over an initial 7km x 1km zone of anomalism.

Alchemy Resources Limited (ASX: ALY) ("Alchemy" or "the Company") is pleased to announce it has identified a new coherent lithium and pathfinder elements anomalous corridor at its 100% owned Karonie Gold Project located east of Kalgoorlie in Western Australia. The tenements sit contiguous and 8km along strike of the Manna Lithium Deposit owned by Global Lithium Resources Limited and Breaker Resources NL (ASX: GL1 80%, ASX:BRB 20%).

Chief Executive Officer Mr James Wilson commented: "The lithium and pathfinder anomalism identified by Alchemy's soil sampling and recent rock chipping in proximity to Manna are an encouraging start. Mapping by our geologists has shown pegmatites in outcrop along strike of Manna which is made more significant by the fact that there's been no pegmatites mapped in this region before. The geochemical review reaffirms the prospectivity of our large tenement package at Karonie in what has historically only ever seen gold and base metals exploration. Work is continuing to identify the other intrusive dykes in the vicinity through a program of detailed mapping and sampling."

Alchemy Resources Limited

ABN: 17 124 444 122

T: 9481 4400 | E:[e-mail]| W:www.alchemyresources.com.au

8/8 Clive Street, West Perth 6004, WA

Figure 1: ALY tenements location showing GSWA mapped granites and soil geochemistry results

NEW LITHIUM PROSPECT IDENTIFICATION - CHERRY, HICKORY, MESQUITE AND PECAN

Alchemy conducted multi-element soil sampling at Pecan/Mesquite/Hickory/Cherry on a 400x400m offset grid (Figure 1, RHS) and formed part of a multi-commodity review. The analysis of lithium and pathfinder elements shows a strong pattern of anomalism over 7km long x 1km wide (Figure 2) with the northern zone having increasing levels of surface cover which could have obscured outcrops. Alchemy's KZ5 deposit2 located in the southern portion and adjacent to Cherry Prospect is a gold deposit which is believed to be VMS hosted mineralisation with significant drilling being undertaken by Alchemy in 2021. The areas of lithium soil anomalism to the east of the KZ5 gold deposit have never been drill-tested.

The areas sit within the prospective "Goldilocks Zone", a defined corridor in which LCT pegmatite exist. The zone lies outboard of the granitic terrain and within the greenstone belts.

Alchemy geologists have since conducted initial ground truthing of the anomalies which has revealed outcropping pegmatites at Hickory Prospect and was traced over 1km along strike (Figure 3). A second pegmatite outcrop was mapped at Cherry Prospect (Figure 3). Importantly, GSWA mapping had not mapped the pegmatite outcrops recently identified by Alchemy.

2 Refer to Alchemy Resources ASX release 31 August 2021

Figure 2: Lithium Anomalism and mapped pegmatites at the new prospects

Figure 3: Fractionated granite showing pegmatite and location of samples (assay pending)

ROE HILLS EXPLORATION (WA ALY 100%)

Roe Hills lies along a distinctive structural trend from the Pegmatite field that hosts the Manna Lithium deposit 5km to the north-east. GSWA mapping has identified a high density of narrow plagioclase dykes, porphyritic dykes and quartz veins mapped adjacent to the granite contact zone.

Multi-element soil sampling conducted by Alchemy in 2018-2020 highlighted multiple areas of low-level lithium anomalism and coincident pathfinder anomalism across a broad strike extent which is shown in Figure 1. Three (3) lower priority target areas have been identified at Roe Hills stretching over an 8-10km strike extent in each zone. Mapped dykes appear to have a parallel north-south strike extent, parallel to the greenstone/granite contact, however most of the area around the known mapped dykes are covered by alluvium and it is likely that these areas are far more extensive than the known outcrops. Soil sampling programs were originally targeting gold mineralisation and as a result, coverage of the prospective areas is limited.

KARONIE REGIONAL TARGETS (ALY 100%)

Alchemy has recently completed a desktop study and generated additional lithium targets for the broader Karonie regional areas. A total of 15 initial targets with low-medium and high priority were generated based on the analysis of historic drill logs, limited geochemical sampling and GSWA geological maps. The desktop analysis is at an early stage and site visits will be conducted to ground truth the target areas in combination with planning for a large-scale soil sampling campaign. Importantly, the bulk of Alchemy's Karonie tenure sits on the contact zone of the regional granite for over 50km of strike extent that remains largely untested for battery minerals.

Figure 4: Karonie Regional Lithium targets with GSWA mapped Granites and interpreted "Goldilocks" zone

NEXT STEPS

• ▪ Immediately prioritise infill soil sampling on a 100m x 40m pattern at Cherry and Hickory.

• ▪ Commence detailed mapping of pegmatite outcrops along the 7km prospective strike extent at Cherry-Hickory-Mesquite and Pecan anomalies.

• ▪ Commence regional soil sampling from KZ5 to Western Brown Prospect (approximately 20km strike extent within the "Goldilocks zone").

• ▪ Complete Heritage agreements to allow for future drill programs.

• ▪ Assess broader regional prospectivity at southern Karonie tenements.

Figure 5: Karonie Projects and nearby Lithium development assets