Australian Mines : West Kimberley Project exploration update

Australian Mines Limited ABN 68 073 914 191

ASX | AUZ

Level 34, 1 Eagle Street, Brisbane, Queensland 4000

T

+ 61 7 3184 9184

[e-mail] W australianmines.com.au

12 April 2022

Australian Securities Exchange 20 Bridge Street

Sydney NSW 2000

ASX RELEASE

Exploration update - West Kimberley Project

Australian Mines Limited ("Australian Mines" or "the Company") is pleased to provide the accompanying update in relation to exploration activities recently completed at the West Kimberley Project1 in Western Australia by the Company's wholly owned subsidiary, Eos Resources Pty Ltd.

As previously announced by the Company2, and as part of the Board's review of Australian Mines' capital and corporate structure, the Board intends to seek shareholder approval during the 2022 calendar year to demerge the Company's non-core exploration assets into a new exploration-focused company3.

The intention of demerging non-core assets is to simplify Australian Mines' investment proposition while focusing its efforts on maximising shareholder returns through the development of its laterite hosted Sconi and Flemington Projects and the ongoing optimisation of the production stream thereafter.

Following the demerger, the Company's Sconi Project and the laterite-hosted cobalt, nickel, and scandium mineral rights4 of the Flemington Project (including the existing cobalt-scandium Mineral Resource)5 will be retained within Australian Mines.

• 1 previously the Lennard Project.

• 2 Australian Mines Limited, Quarterly Activities Report for the period ended 30 September 2021 (ASX: 25

October 2021).

3 As announced by the Company on 25 October 2021 (Quarterly Activities Report for the period ended 30 September 2021), Australian Mines also intends to seek shareholder approval in 2022 to demerge the Company's non-core exploration assets into a new copper-gold-nickel (sulphide) exploration focussed company.

4 'Mineral Rights' means the rights to lateritic nickel, cobalt, and scandium minerals from New South Wales exploration licence EL7805.

5 The Mineral Resource Estimate for the Flemington Cobalt-Nickel-Scandium Project is reported under JORC 2012 Guidelines and was reported by Australian Mines Limited on 31 October 2017. The Mineral

1

ENDS

For more information, please contact:

David Loch

Investor Relations Manager Australian Mines Limited [phone]

Authorised for release by the Board of Directors of Australian Mines Limited

Australian Mines Limited supports the vision of a world where the mining industry respects the human rights and aspirations of affected communities, provides safe, healthy, and supportive workplaces, minimises harm to the environment, and leaves positive legacies.

Resource for Flemington, as announced on 31 October 2017 is: Measured 2.5Mt @ 0.103% Co & 403ppm Sc, Indicated 0.2Mt @ 0.076% Co & 408ppm Sc. There has been no Material Change or Re-estimation of the Mineral Resource since this 31 October 2017 announcement by Australian Mines.

Appendix 1: Forward Looking Statements

This announcement contains forward looking statements. Forward looking statements can generally be identified by the use of forward looking words such as, 'expect', 'anticipate', 'likely', 'intend', 'should', 'could', 'may', 'predict', 'plan', 'propose', 'will', 'believe', 'forecast', 'estimate', 'target' 'outlook', 'guidance', 'potential' and other similar expressions within the meaning of securities laws of applicable jurisdictions.

Any forward looking statement is included as a general guide only and speak only as of the date of this document. No reliance can be placed for any purpose whatsoever on the information contained in this document or its completeness. No representation or warranty, express or implied, is made as to the accuracy, likelihood or achievement or reasonableness of any forecasts, prospects, returns or statements in relation to future matters contained in this document. Australian Mines does not undertake to update or revised forward looking statements, or to publish prospective financial information in the future, regardless of whether new information, future events or any other factors affect the information contained in this announcement, except where required by applicable law and stock exchange listing requirements.

To the maximum extent permitted by law, Australian Mines Limited and its Associates disclaim all responsibility and liability for the forward looking statements, including, without limitation, any liability arising from negligence. Recipients of this document must make their own investigations and inquiries regarding all assumptions, risks, uncertainties and contingencies which may affect the future operations of Australian Mines Limited or Australian Mines Limited's securities.

ASX ANNOUNCEMENT | APRIL 2022

Priority targets identified at West Kimberley Project, Western Australia

RESOURCES

Highlights

• • Exploration work targeting massive nickel sulphide mineralisation identified priority Targets A, C and T for follow up studies

• • Drill testing recommended for priority Targets A and T, with drill collar location identified for priority Target T.

• • The combination of airborne electromagnetic surveys, machine learning and artificial intelligence located a total of 23 potential targets.

eos

RESOURCES