Aruma Resources : 30/10/2020 - Quarterly Activities Report

30 October 2020

ACTIVITIES REPORT

FOR THE QUARTER ENDED 30 SEPTEMBER 2020

Highlights

• Heritage agreement signed for the Saltwater Gold Project
• Heritage survey completed and PoW for drilling submitted and granted
• First phase of drilling planned to commence in the current quarter
• Saltwater Project expanded with four new Exploration Licences - Project now comprises eight granted Exploration Licences
• Melrose Gold Project expanded with two new Exploration Licences
• Placement completed to raise $2.7m - sound financial position at Quarter end with ~$2.759 in cash
• Binding Sale and Purchas Agreement entered into for sale of Slate Dam-Trojan Gold Project for all cash consideration of $500,000

Aruma Resources Limited (ASX: AAJ) (Aruma or the Company) is pleased to provide the following report on its activities for the quarter ending 30 September 2020 (Quarter).

During the Quarter the Company continued assess and advance its portfolio of gold exploration projects with the application for six new strategically located, prospective leases at the Saltwater and Melrose gold projects.

The Company's project generation strategy has seen Aruma secure and evaluate four new exciting gold projects located in major, active Australian gold domains. Three of the new projects are located in Western Australia and one is located in New South Wales (Figure 1). The new projects have refocused the Company's exploration activities, which are supported by a successful capital raising commenced during the quarter which raised $2.7m.

Consistent with the Company's strategy to focus on its new projects, Aruma entered into a binding Sale and Purchase Agreement for the sale of its Slate Dam Gold Project (including the Trojan Gold Project) with Black Cat Syndicate (ASX: BC8) for an all- cash consideration of $500,000 (ASX announcement 7 October 2020).

ASX: AAJ

Capital Structure 1,589M Shares on Issue 330M Options on issue

Board of Directors

Non-Executive Chairman

Paul Boyatzis

Managing Director

Peter Schwann

Non-Executive Director

Mark Elliott

Company Secretary

Phillip MacLeod

Gold Projects -1,572km2 Norseman

SCOTIA SOUTH - 217km2

Pilbara

MELROSE - 282km2 SALTWATER - 701km2

NSW Lachlan Fold Belt

CAPITAL - 372km2

Head Office

Level 1, 6 Thelma Street

West Perth, WA 6005

T [phone]

F [phone]

1. [e-mail] W www.arumaresources.com

Postal Address

PO Box 152

West Perth, WA 6872

ABN 77 141 335 364

Aruma Resources Limited is a proud supporter and member of the Association of Mining and Exploration Companies, 2020.

Figure 1: Aruma's Australian Gold Projects

Aruma Resources Limited is a proud supporter and member of the Association of Mining and Exploration Companies, 2020.

Tenement	Project	State	Holder	Status	Applied	Granted	Area km2	Totals km2
E52/3816	Saltwater	WA	AEPL (100%)	Granted	15/04/2020	1/07/2020	19
E52/3818	Saltwater	WA	AEPL (100%)	Granted	17/04/2020	1/07/2020	172
E52/3825	Saltwater	WA	AEPL (100%)	Granted	5/05/2020	5/07/2020	122
E52/3830	Saltwater	WA	AEPL (100%)	Granted	12/05/2020	5/07/2020	56
E52/3837	Saltwater	WA	AEPL (100%)	Granted	1/07/2020	1/09/2020	97
E52/3852	Saltwater	WA	AEPL (100%)	Granted	7/08/2020	8/10/2020	59
E52/3854	Saltwater	WA	AEPL (100%)	Granted	7/08/2020	8/10/2020	119
E52/3857	Saltwater	WA	AEPL (100%)	Granted	14/08/2020	14/10/2020	56	701
ELA08/3183	Melrose	WA	AEPL (100%)	Pending	20/04/2020		25
ELA08/3184	Melrose	WA	AEPL (100%)	Pending	20/04/2020		16
ELA08/3188	Melrose	WA	AEPL (100%)	Pending	21/04/2020		44
ELA08/3210	Melrose	WA	AEPL (100%)	Pending	27/05/2020		31
ELA08/3219	Melrose	WA	AEPL (100%)	Pending	4/06/2020		66
ELA08/3244	Melrose	WA	AEPL (100%)	Pending	10/08/2020		13
ELA08/3280	Melrose	WA	AEPL (100%)	Pending	20/10/2020		66
ELA47/4362	Melrose	WA	AEPL (100%)	Pending	21/04/2020		16
ELA47/4414	Melrose	WA	AEPL (100%)	Pending	22/07/2020		6	282
E63/2037	Scotia South	WA	AEPL (100%)	Pending	21/05/2020		217	217
ELA5955	Gurrendah	NSW	Augustus PL	Pending	22/04/2020	Approved	48
ELA5956	Currawang	NSW	Augustus PL	Pending	22/04/2020	Approved	156
ELA5987	Bywong	NSW	AEPL (100%)	Pending	8/06/2020	Approved	168	372
						Grand Total	1572

Table 1: Aruma's new project details (shaded areas are in the current quarter).

Saltwater Gold Project

The Saltwater Gold Project consists of the eight granted Exploration Licences for a total area of 701km2. The Project is located approximately 100 kilometres southwest of the regional mining centre of Newman.

The Project area is interpreted to cover a strike extent of more than 65km of the highly significant Nanjilgardy fault, the same regional structure reported as the primary source of gold mineralisation at Northern Star Resources' (ASX: NST) Paulsens Gold Mine and the Mt Olympus Gold Mine in the region.

Completion of Heritage Agreements for the Saltwater project area have allowed the Heritage Survey to clear the area for the first drilling program. A programme of work (PoW) was submitted during the Quarter and approved in late October. Site access preparation has commenced and Aruma plans to commence its first phase of drilling at Saltwater late in the current quarter.

This phase of drilling will be a reverse circulation (RC) program of up to 5,000 metres, across seven planned drill lines, with 50 holes to be drilled to a nominal drill depth of 100 metres.

Aruma Resources Limited is a proud supporter and member of the Association of Mining and Exploration Companies, 2020.

A reconnaissance mapping program, rock chip and soil sampling program targeted the outcropping areas on the western end of a large 60km2 magnetic ring structure, known as the Saltwater Ring Structure. This initial exploration program defined the target area for the initial drilling program by identifying quartz veins, anomalous rock and soils with alteration and mineralisation identified.

Figure 2: Aruma's Saltwater Project area on 500K geology showing Faults and anomalies.

The area targeted in the initial RC drilling program is outlined in red in Figure 2 above and is detailed on below in Figure 3. The closer spaced lines in Figure 3 are concentrating on the anomalous areas whilst the regional lines to the east are targeting the ring structure under cover.

Aruma Resources Limited is a proud supporter and member of the Association of Mining and Exploration Companies, 2020.