Pathfinder Resources : June 2021

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Perth, WA 6000

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Managing Director

Shannon Green

useNon-Executive Chairman

Sufian Ahmad

Non-Executive Director

H gh Callaghan

Company Secretary

Ailsa Osborne

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Company Secretary

Ail a Osborne

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30 July 2021

Quarterly Activities Report

• Divestment Activities for the Hamersley Iron Ore Project are at an advanced stage.
• Numerous activities were completed as part of the permitting application for 6 diamond holes at the King Tut Project.
• The Company approved and planned an electromagnetic geophysical survey of the King Tut Project.
• Extensive community relations activities have built strong and supportive relationships with local communities and administrators surrounding the King Tut Project.

Pathfinder Resources Ltd (Pathfinder or the Company) is pleased to provide the following summary of activities undertaken during the quarter ended 30 June 2021 (June Quarter).

King Tut Project

Exploration Activities

Restricted movement and access in Argentina due to the Covid-19 pandemic has significantly slowed administrative processes in the country. During the June Quarter, the Company continued to progress permitting for its maiden diamond drilling program which is now at an advanced stage with very constructive relationships having been established with all involved regulatory groups. During May and early June, the company has continued to provide additional information requested by the authorities in support of the application. Considerable work has been undertaken to satisfy all regulatory requirements including:

• The establishment of an Environmental Impact Assessment (ESIA)
• The establishment of a water management plan
• The establishment of a waste management plan
• A comprehensive community engagement program utilising highly respected independent experts to ensure that the Company could demonstrate that it had the communities support (social license) to undertake its planned activities.

Next Stage of Planned Exploration

During the Quarter the Company commenced the next stage of planned exploration field work, which will expand onto the highly prospective Diana II exploration permit. These works are integral to the Company's plan to extend drilling post completion of the planned maiden Diamond Drilling Program at the King Tut Project.

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Figure 1 below shows the location of the Dianna II tenement in relation to the historical King Tut high grade gold and cobalt mine.

Figure 1: Diana II tenement relative to the historic King Tut mine

Project Background

The King Tut Project is located on the renowned metallogenic belt in the foothills of the Andean Mountains in Argentina. Altitude below 3,000m allows year-round access. Figure 2 below shows the project location in relation to the country and region.

	Figure 2: Location Map (Guille concession has expired, subject to renewal)
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It was apparent, through the initial surface mapping program that provided the geological data for the maiden Diamond Drilling Program at the King Tut Project, that mineralised areas could extend well away from the known King Tut mine site and mining tenement.

On 25 January 2021, the Company announced the results of the Company's maiden geological mapping and rock chip sampling program at the King Tut Project undertaken in late 2020. This exploration program confirmed the high-grade gold and cobalt mineralisation extends beyond the King Tut mine. Importantly, results of the geological mapping and sampling also defined the quartz- hosted mineralisation in a vein stack up to 120m wide and currently along a strike length of approximately 200m, however the strike extent remains open. See Figure 3 below.

Gold mineralisation appears to be consistent along strike and to the west of the King Tut mine, with several 20+g/t Au samples. Sampling at the series of stacked veins to the south of the King Tut mine also returned a number of samples in excess of 6g/t Au. Refer to the Company's ASX announcement dated 25 January 2021 for a full list of assay results and JORC sampling and reporting information.

Figure 3: Gold sampling assays location and mapped veins - King Tut Project

It was noted in the Independent Geological Report that earlier explorers had observed sulphides in creek lines and that a significant barite vein was mapped (Horatio Barite) for over 600m. No further work has been completed upon these resource targets.

The presence of Barite is a potential indicator of other forms of sulphide mineralisation, often porphyries.

The key outcomes of the exploration field works including geological mapping will be to:

• Identify the outcropping mineralisation of the areas adjacent to the King Tut mine and to map all associated geological units for a greater understanding of the form and nature of the mineralisation present.
• Undertake a further rock chip sampling program within the Dianna II tenement around the northern El Salto creek to determine the form and presence of sulphides.

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• Define the extent of the Horatio Barite, and collect samples to define grade, ore quality and implications for identifying other mineralisation forms.

This exploration program undertaken at Diana II aims to establish the extent of potential mineralisation and provide more detail in the form of the deposits present, which in turn may be tested and confirmed by a drill program defining width, depth, and the potential size of the occurrences.

Figure 4 below shows the locations of previously identified occurrences and of the Horatio Barite relative to the historic King Tut mine.

Figure 4: Known Horatio Barite Occurrence and Other Anomalous Mineralization Locations

Environmentally and Socially Responsible Approach

As part of the permitting of the maiden Diamond Drill Program the team have continued engagements with key stakeholder and community groups in the province. To assist with the development of a comprehensive Social Management and Communication Plan (SMCP) the Company has contracted a local consulting group, Papi Group Latam Consulting, who have extensive experience with mining operations in Argentina.

The Company has established an environmental baseline water monitoring program. Monitoring activities throughout the program will provide confirmation to regulators and stakeholders of the Company's compliance to environmental standards of work.

In addition, the Company is partnering with a local University on environmental controls and contributing to the professional development of students by allowing access to the planned drilling activities.

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Where possible the activities are centred around identifying opportunities within the local communities and contribute to development.

The Western Australian Government Department of Mines is progressing with the development of program in consultation with the La Rioja Province where the King Tut Project is located. The program is designed to facilitate the sharing of specialist knowledge, technical skills and regulatory know-how, the program will be undertaken with a series of live interactions, incorporating video presentations and Q&A sessions.

Geophysics Program

Further to the next stage of planned exploration filed works the Company is well underway in the planning of an electromagnetic geophysical survey of the King Tut Project.

The last survey undertaken over a portion of the King Tut tenement in 1983 highlighted an anomalous response in the Southeast portion of the King Tut tenement. The planned survey will extend across the full King Tut tenement and into the Diana II tenement, an updated survey with modern equipment will further aid in defining the extension of the know sulphide mineralisation.

Hamersley Iron Ore Project

Divestment of Hamersley Iron Ore Project

During the June Quarter the Company progressed the Divestment of the Hamersley Iron Ore Project.

On 9 July 2021, Pathfinder announced the execution of a binding heads of agreement with Lockett Fe Pty Ltd (ACN 152 114 031) Lockett, a wholly owned subsidiary of Cazaly Resources Ltd, (ASX:CAZ)) and Equinox Resources Limited (ACN 650 503 325) (Equinox) (proposed ASX code EQN), whereby each of Pathfinder and Lockett (together, the Vendors) have agreed to conditionally sell their respective interests in the Hamersley Iron Ore Project ("Project") to Equinox. The sale of the Project is conditional upon shareholder approval in accordance with ASX Listing Rule 11.4.1(b), amongst other things. A summary of the material terms and conditions of the binding heads of agreement is set out in Annexure A.

It is intended that Equinox will undertake an initial public offer (IPO) and seek a listing on the official list of the Australian Securities Exchange (ASX) with prospectus anticipated to be lodged in August 2021. The IPO will raise between $7 million and $9 million (before costs) through the offer of between 35 million and 45 million shares, at an issue price of $0.20 per share.

Under the proposed transaction, Pathfinder will receive 35,000,000 shares in Equinox representing an interest of approximately 36.65% in Equinox post IPO (assuming maximum subscription), allowing Pathfinder and its shareholders to maintain exposure to the Hamersley Iron Ore Project via the Company's equity interest in Equinox.

The proposed transaction will create a new listed company with a sole focus on exploration and development of the Hamersley Iron Ore Project, assisted by a dedicated board and management team with the ability to give direct focus to and allocate the necessary resources required to develop the Hamersley Iron Ore Project.

The Board considers the divestment of the Hamersley Iron Ore Project an excellent opportunity to maximise shareholder value and look forward to supporting the Equinox Board through the listing process.

Details of the Spin-Out Transaction

As set out above, Equinox intends to undertake an IPO of fully paid ordinary shares to raise a maximum of $9,000,000 (before costs) to facilitate admission to the official list of the ASX. A prospectus will be made available by Equinox at the time the offer of securities under the IPO is made. Equinox does not intend on making a priority offer to shareholders of Pathfinder under the IPO. Any

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