ASX Announcement

13 July 2022

ASX:BCA

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Flanagan Bore Mineral Resource infill and

extension drilling completed

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HIGHLIGHTS

Reverse circulation (RC) drilling program completed at Flanagan Bore to infill and extend

the existing Indicated Mineral Resource of 104Mt @ 10.5% (11Mt of contained manganese)

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at the FB3 and LR1 deposits

The infill drilling targeted higher-grade zones at FB3 and LR1 deposits totalling 33Mt @

12.8% Mn with the objective of upgrading current Indicated Mineral Resource to higher

confidence Measured classification

Extension drilling completed along strike between the FB3 and LR1 deposits, was

successful in delineating additional manganese enriched shale hosted mineralisation

Acid leaching testwork commenced on manganese enriched samples from Flanagan Bore

to determine manganese solubility - a key step in the downstream generation of manganese

sulphate and a precursor product for cathodes within Li ion batteries

Australian manganese explorer, Black Canyon Limited (Black Canyon or the Company) (ASX:BCA), is pleased to announce it has completed drilling 7,534m of RC drilling as part of an infill and extensional drilling program across the previously announced Mineral Resource at Flanagan Bore comprising 104Mt @ 10.5% Mn (Indicated) containing 11Mt of manganese (Table 1).

The infill drill program was designed to focus on an outcropping high-grade manganese subset of the Mineral Resource estimate, comprising 33Mt @ 12.8% Mn (Table 2) across the FB3 and LR1 deposits.

ForThe drill program also evaluated the potential of the strike between FB3 and LR1 deposits and yielded promising results as additional shale enriched manganese mineralisation was intersected. Assays are pending.

Black Canyon Executive Director, Brendan Cummins, said: "The fast-trackeddrill program completed at Flanagan Bore will provide additional tonnage potential from both the FB3 and LR1 deposits with manganese mineralisation now successfully identified between the two deposits. The infill drill results should also enable an upgrade in mineral resource confidence classification from the current Indicated to Measured status which can be used for detailed feasibility studies".

"The Company is also advancing metallurgical studies with acid leaching testwork applied to manganese concentrates derived from the Flanagan Bore deposits. This initial leaching testwork is a crucial first step

ASX Code: BCA

Registered Address

Telephone: +61 8 9426 0666

283 Rokeby Road

Email: info@blackcanyon.com.au

Subiaco, WA, 6008

Website: www.blackcanyon.com.au

for the Company as it embarks on a larger program of producing manganese sulphate - a critical precursor material for nickel-cobalt-manganese cathodes used in Li ion batteries".

Table 1. Global Mineral Resource estimate for the FB3 and LR1 deposits at Flanagan Bore April 2022*

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Grand Total

104

11

2.4

10.5

9.8

17.9

4.7

Summary of Mineral Resources

(1)

Mineral

In Situ

Deposit

Resource

Material

Mn

BD

Mn

Fe

Si

Al

Category

(Mt)

(Mt)

(gcm3)

(%)

(%)

(%)

(%)

FB3

Indicated

67

7

2.4

10.4

10.3

17.6

4.5

LR1

Indicated

37

4

2.4

10.8

8.9

18.3

5.0

Notes:

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(1) Mineral resources reported at a cut-off grade of 7% Mn

* refer to ASX Announcement 13 April 2022 for further details

Table 2. Higher-grade Zone Mineral Resource estimate from the FB3 and LR1 deposits at Flanagan Bore April

2022*

Summary of Mineral Resources

(1)

Mineral

In Situ

Deposit

Resource

Material

Mn

BD

Mn

Fe

Si

Al

Category

(Mt)

(Mt)

(gcm3)

(%)

(%)

(%)

(%)

FB3

Indicated

19

2

2.4

12.7

11.5

18.5

4.6

LR1

Indicated

15

2

2.4

12.9

9.9

18.4

4.9

Grand Total

33

4

2.4

12.8

10.8

18.5

4.8

Notes:

(1) Mineral resources reported at a cut-off grade of 11% Mn

and 100m

personalLR1 has been reduced from 200m spaced lines and 100m centred holes to 100m spaced lines

* refer to ASX Announcement 13 April 2022 for further details

Flanagan Bore is part of the Company's Carawine JV and is subject to a farm-in and joint venture agreement with Carawine Resources Ltd (ASX:CWX). Having earned a 51% interest, Black Canyon is now earning up to 75% in the Carawine Project tenements by sole-funding an additional $2.5m of xploration expenditure. The Flanagan Bore Project is located approximately 400 km southeast of Port

Hedland in the east Pilbara region of Western Australia.

As a result of the completed RC drill program (181 holes for 7,534m), the overall drill spacing at FB3 and

centred holes. Significantly, the doubling of the drill density should enable the current Indicated classified ForMineral Resources to be upgraded to Measured, which is suitable for detailed feasibility and associated mining and processing studies. No further mineral resource drilling is required once Measured Mineral Resources have been estimated. In addition, all of the project drill collars have now been located using highly accurate differential global positioning system (DGPS) and the December 2021 drill holes have also been down-hole surveyed for density, gamma and magnetic susceptibility. The down-hole data will be

used with more detailed geological domaining and interpretation.

Three additional manganese-enriched shale targets were also successfully drilled along 2km of strike connecting the FB3 and LR1 deposits, and mineralisation was confirmed at the FB2 and FB6 prospects (Figure 1).

Assays are pending and expected to be received over the next 2 to 3 months.

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Figure 1. Flanagan Bore Project - FB3 & LR1 Mineral Resource outlines and additional drill targets at FB1, L1,

TF1 and FB6 (Black Canyon (51%) earning up to 75%)

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This announcement has been approved by the Board of Black Canyon Limited.

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For further details:

For media and broker enquiries:

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Andrew Rowell

Brendan Cummins

Executive Director

White Noise Communications

Telephone: +61 8 9426 0666

Telephone: +61 8 6374 2907

Email: brendan.cummins@blackcanyon.com.au

Email: andrew@whitenoisecomms.com

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About Black Canyon

Black Canyon has entered into a farm-in and joint venture with ASX listed Carawine Resources Limited (ASX:CWX) to acquire a majority interest in the Carawine Project in Western Australia. The Carawine Project covers approximately 800 km2 of tenure located south of the operating Woodie-Woodie manganese mine, providing a large footprint in a proven and producing manganese belt. Black Canyon has also applied for and acquired other exploration licenses adjacent to the Carawine Project that would increase the total land holdings to over 2600 km2 upon grant. In addition to manganese, the Carawine Project also hosts multiple copper occurrences including the Western Star prospect which comprises a large zone of surface copper enrichment.

Manganese and copper continue to have attractive fundamentals with growing utilisation in the battery mineral sector and challenging supply conditions.

ForCompliance Statements

Reporting of Exploration Results and Previously Reported

Information

The information in this report that relates to Exploration Results is based on, and fairly represents, information and supporting documentation reviewed by Mr Brendan Cummins, Executive Director of Black Canyon Limited. Mr Cummins is a member of the Australian Institute of Geoscientists, and he has sufficient experience which is relevant to the style of mineralisation and type of deposits under consideration and to the activity which has been undertaken to qualify as a Competent Person as defined in the 2012 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Mr Cummins consents to the inclusion in this release of the matters based on the information in the form and context in which they appear. Mr Cummins is a shareholder of Black Canyon Limited.

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The information in this report that relates to Mineral Resources is based on, and fairly represents, information and supporting documentation prepared by Mr Greg Jones, (Consultant to Black Canyon and Geological Services Manager for IHC Mining). Mr Jones is a Fellow of the Australian Institute of Mining onlyand Metallurgy and has sufficient experience of relevance to the style of mineralisation and type of deposit under consideration, and to the activities undertaken to qualify as a Competent Persons as defined in the 2012 Edition of the Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Jones consents to the inclusion in this report of the

matters based on the information in the form and context in which they appear.

For further information, please refer to ASX announcements dated 17 May 2021, 10 June 2021, 7 July 2021, 5 October 2021, 4 January 2022, 8 February 2022, 21 February 2022, 2 March 2022, 23 March 2022 and 13 April 2022 which are available from the ASX Announcement web page on the Company's

usewebsite. The Company confirms that there is no new information or data that materially affects the information presented in the JORC Table 1 appendices that relate to Exploration Results and Mineral Resources in the original market announcements.

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Black Canyon Ltd. published this content on 12 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 July 2022 22:33:06 UTC.