Australian Vanadium Limited announced assay results from the RC component of the April - May 2022 drill program at the Coates Mafic Intrusive Complex near Wundowie, 80km NE of Perth in Western Australia. Drilling followed a successful SkyTEM Airborne Electromagnetic (AEM) survey which identified three conductors, with the larger having a strike length of 1,900 metres2 located parallel to a magnetic high, topographic low on the Project. An 11-hole program of Reverse Circulation (RC) pre-collar and diamond tail drilling was undertaken, with all pre-collars completed for 840.6 metres of RC.

Partial completion of the diamond drilling portion of the project was achieved, with 169.6 metres of diamond coring over three holes. Two diamond tails were finished and one abandoned before the full planned depth, due to drilling equipment issues. An additional nine diamond tails are required to complete the stratigraphic fence, including re-drilling of the hole that was abandoned.

The drill line remains open and the Programme of Work (PoW) approval remains active. Drilling of the diamond tail portion of the program will be completed pending sale of the project to MGM, subject to its successful listing on the Australian Securities Exchange. AVL will maintain a significant shareholding in MGM.

The MGM prospectus is undergoing final due diligence before being lodged with the ASX. The drilling at Coates Project was co-funded through the WA Government's Exploration Incentive Scheme (EIS)4. The grant was for up to $112,500, representing half of the cost of the program. The drill program is designed to provide a stratigraphic section through the Coates Mafic Intrusion within AVL's tenure, allowing for lithological and geochemical studies and focussing on nickel-copper-PGE prospectivity.

The results from the SkyTEM survey and now RC assay results strongly supports the validity of completing the drill program designed to test mafic ­ ultramafic stratigraphy. Despite being stopped early due to technical drilling issues, the program as completed to date provides a significant section of geochemical samples from the RC components of the drill holes. Importantly, the diamond core available to the CSIRO Nickel Indicator Study of the Coates Mafic Complex extends information 350 to 500 metres further northeast into the intrusion than any previous historical drilling5,approaching the zone of the SkyTEM conductors and surface Ni, Pt and Cr anomalism previously identified6.

Samples of core from these 2022 drill holes are currently with CSIRO to facilitate this study. Other historical diamond core from the 1970s being utilised for the CSIRO study is restricted to the magnetite gabbro portion of the deposit which was drilled extensively for vanadium mineralisation by Garrick Agnew Pty Ltd. and Mt Dempster Mining. DRILL RESULTS: Reverse Circulation Results: Assays for the eleven pre-collars were submitted in June 2022 for analysis.

The results have now been returned and loaded to the Company database. The location of the drill collars relative to the magnetite gabbro (modelled from the historical dataset) and the conductors defined in the SkyTEM survey completed in 2021 are shown in Figure 2 below. Elevated copper, nickel and/or palladium and platinum was intersected in four of the RC pre-collars, holes being 22CRC007, 22CRD008, 22CRC009 and 22CRD011.

Most anomalous results are: 22CRC007 ­ 10 m @ 0.13% Cu, 493ppm Ni, 39ppb Pd and 21ppb Pt from 64m; Including 7m @ 0.14% Cu, 544ppm Ni, 43ppb Pd and 23ppb Pt from 67m; 22CRC007 ­ 1m @ 700ppm Ni, 40ppb Pd and 40ppb Pt from 55m; 22CRD008 ­ 6m @ 358ppm Ni, 54ppb Pd and 41ppb Pt from 11m; 22CRC009 ­ 6m @ 0.12% Cu and 525ppm Ni from 38m; 22CRD011 ­ 1m @ 45ppb Pd and 45ppb Pt from 66m; 22CRD011 ­ 1m @ 60ppb Pd and 55ppb Pt from 81m. The RC assay results for the magnetite gabbro portion of the layered intrusion also strongly support: the historical dataset, drilled to define a historical (non JORC 2012 compliant) vanadium-titanium resource in the 1970s. The drilling validates the existing interpretation of the extent of the vanadium mineralisation within the magnetite gabbro and extends the vanadium-bearing laterite unit from hole 22CRC001 through to 22CRC006, a section width of 360 metres.

Best vanadium ­ titanium intercepts from the recent drilling include: 22CRC001 ­ 11m at 0.90% V2O5 and 9.6% TiO2 from 0m ­ Laterite; 22CRC002 ­ 6m at 0.86% V2O5 and 15.1% TiO2 from 0m ­ Laterite; 22CRC002 ­ 33m at 0.49% V2O5 and 8.4% TiO2 from 6m ­ Laterite; 22CRC002 ­ 34m at 0.43% V2O5 and 5.9% TiO2 from 41m ­ Fresh Rock; 22CRC005 - 9m at 1.11% V2O5 and 8.5% TiO2 from 0m ­ Laterite.