Australasian Metals : March 2022 Quarterly Report and Appendix 5B

QUARTERLY ACTIVITIES REPORT FOR THE PERIOD

ENDED 31 MARCH 2022

Highlights

Operations

• • Further lithium mineralisation returned from ongoing exploration program at the Company's 100%-owned Mt Peake lithium project

  • o 1.15% Li2O (and 226 ppm Ta) assayed in rock chip sample (MP10127) provides further evidence of high-grade lithium mineralisation within outcropping pegmatites

• • Completion of the deep ground penetrating radar (DGPR) survey (for 32.8km survey lines) covering priority targets at Mt Peake

• • ~2,500m RC drilling program has commenced at the Mt Clermont and Capella projects

  • o Recent field investigation discovered and mapped extension of the Retro Extended veining for at least 400 metres south of the most southern drillhole at the prospect

  • o Gold-in-rock samples highlight untested potential at the Retro and Retro Extended prospects

Corporate

• • During the quarter, the Company acquired a 90% interest in the Barrow Creek lithium project

• • The Company remains well funded, with ~$6.1 million in cash reserves as at 31 March 2022

Australasian Metals Limited (ASX:A8G, Australasian or the Company) is pleased to present its quarterly activities report for the March quarter.

Operations

Mt Peake Lithium project (100%)

The Mt Peake lithium project (granted EL32830) is located in the Mt Peake area of the Anningie Tin-Tantalum-Pegmatite fields, within the north Arunta Region of the NT. The area is considered highly prospective for hard rock lithium mineralisation. EL32830 covers over 640km2 and shares a boundary with Core Lithium Limited's (ASX:CXO) Anningie lithium project. The project is located ~200km north of Alice Springs (Figure 1).

Figure 1: Mt Peake and Barrow Creek lithium project location in the Northern Arunta Pegmatite province of the Northern Territory

The Company is partnering with the CSIRO under the CSIRO Kick-Start Program to research

"Lithium (Li) Exploration in the Mt Peake Pegmatite Field" at Mt Peake. Through CSIRO, the

Company gained access to state-of-the-art optical, thermal and geophysical remote sensing data analysis and interpretation workflows, as well as instrumental equipment to identify potential key features of Li-bearing pegmatites.

Fieldwork commenced at Mt Peake with Australasian and the CSIRO initially embarking on a detailed mapping and targeting exercise using a combination of ground-based surveying techniques and detailed satellite imagery to highlight potential lithium bearing zones. A total of 27 rock and soil samples were collected with assay results announced to ASX on 16 November 2021. Rock chip sample JC001 returned high-grade lithium mineralisation of up to 1.61% Li2O and 223ppm Ta within outcropping pegmatites. Sample JC001 was sampled from a pegmatite unit within a micaceous schist.

A follow-up rock chip sampling program at Mt Peake returned further high-grade lithium and tantalum results, with sample MP10127 returing 1.15% Li2O and 226 ppm Ta (refer ASX announcement 8 April 2022) (Figure 2).

Figure 2: Location of Sample MP10127 at the northwest corner of EL32830. The interpreted pegmatite bodies in shallow depth by DGPR was coloured in orange. The Inserted map shows the soil sampling program area and rock chip locations.

During the quarter, the Company engaged Ultramag Geophysics to complete a Deep Ground Penetrating Radar (DPGR) survey over the defined exploration corridor covering the northwest and southeast side of the high grade sample in the surface. DGPR is a state-of-the-art technique that is used to produce high-resolution images of the sub-surface up to 200m depth (refer ASX announcement 21 Janaury 2022).

32.8 km of line was acquired over 14 profiles with high resolution sub-meter short spacing capable of mapping very thin quartz veins and pegmatites. DGPR was calibrated over outcropping tourmaline and mica bearing schists both hosting lithium rich pegmatites primarily in the south of the survey.

The following anomalies have been interpreted:

• • 37 'conventional' pegmatite like anomalies;

• • 18 tourmaline and/or mica schist anomalies (lithium pegmatite hosts) several of which outcrop;

• • 17 granite 'dissolution' anomalies possibly greisen and/or variations of the schist anomalies; and

• • A thick zone in the north was also identified as a possible analogue to Core Lithium Limited's Bismark lithium project less than 4km to the northwest.

Next Steps

• • Soil geochemistry will be infilled around the areas of anomalism and will also be extended to the south-east to cover the area of sample MP10127.

• • Rock chip sampling will be ongoing across the project where there is outcrop exposure.

• • Soil and rock chip geochemistry will be combined with the previously conducted DGPR survey to develop a more complete understanding of the geology and mineralisation.

• • Work has begun on the submission of a Mine Management Plan in order to obtain authorisation under the Mining Management Act (NT) to carry out drilling activities.

Barrow Creek Lithium project (90%)

Barrow Creek is located roughly 100 kms to the northeast of the Mt Peake Lithium project (Figure 1). There are historical Ta-Sn mineral occurrence records across several tenements, and pegmatite rocks have been mapped, with regional geological mapping by previous explorers and government geologists (Figure 3). Importantly, the tenements are situated on privately-owned land, with good road and railway access.

Figure 3: Layout of the Barrow Creek tenements. The package shares a boundary with Core Lithium Limited and another lithium explorer (Lithium Plus Minerals Ltd). Pegmatites are mapped with 1:250K geological map, and Sn-

Ta pegmatite occurrences have been reported. The tenements have great access to Stuart Highway and the Central Australian Railway