Calidus Resources : Quarterly Activities Report and Quarterly Cashflow Report

onlyABOUT CALIDUS RESOURCES Ca idus Resources is an ASX listed gold compa y that is ramping up the 1.7Moz Warrawoona Gold Project in the East Pilbara district of Western Australia.

DIRECTORS AND MANAGEMENT

Mr Mark Connelly useNON-EXECUTIVECHAIRMAN

Mr David Reeves

MANAGING DIRECTOR

Mr John Ciganek

NON-EXECUTIVE DIRECTOR

Ms Kate George

NON-EXECUTIVE DIRECTOR

personalMr Paul Brennan

PROJECT DEVELOPMENT

Mr Richard Hill

CHIEF FINANCIAL OFFICER

Ms Julia Beckett

COMPANY SECRETARY

calidus.com.au

ForASX: CAI

[e-mail]

Suite 12, 11 Ventnor Ave

West Perth WA 6005

AUSTRALIA

28 July 2022

June Quarterly Report

Calidus transitioning to steady state production after delivering Warrawoona

on time and on budget to become Australia's newest gold producer

HIGHLIGHTS

OPERATIONS

• First gold pour completed in May 2022 with a total of 8,916 ounces poured in the quarter with an additional 1,192 ounces of gold in circuit
• Warrawoona Gold Plant successfully commissioned and ramping up to nameplate production of 2.4Mtpa, with up to 2.8Mtpa tested and no major bottlenecks identified
• Gold produced to date reconciling with Resource Model and Grade Control Model
• LNG storage vessels delivered to site, with transition to gas fired electricity in the September quarter expected to reduce operating costs
• No lost time injuries recorded to date
• Positive operating cashflow for the month of June

BLUE SPEC EXPANSION

• Strong drill results including 52m @ 1.4g/t Au from 22m and 10m @ 1.95g/t Au from 81m highlight open-pit potential at Blue Spec East, outside of the resource being used in the Blue Spec Feasibility Study
• Blue Spec Feasibility Study ongoing and expected to be released in the September quarter

PIRRA LITHIUM

• Pirra Lithium's maiden drill program commenced at the Spear Hill lithium project, where pegmatites are defined over 4.3km and rock-chip samples yielded grades up to 2.35% Li2O and 808ppm Ta

CORPORATE

• Cash and cash equivalents of $20.0 million at end of the quarter
• $110 million Project Loan Facility with Macquarie Bank fully drawn during the quarter
• First debt repayment of A$3 million made in June 22 reduced bank debt to $107 million

WARRAWOONA GOLD PROJECT

Calidus Resources (ASX: CAI) was pleased to announce that it had poured the first gold at its Warrawoona Gold Project (WGP) in WA during the June 2022 Quarter, making Calidus Australia's newest gold producer. At quarter-end, project construction is completed with no lost time injuries recorded to date. During the quarter, $5.9 million was incurred on the WGP (inclusive of development capital and capitalised gold sales and production costs).

WGP is forecast to produce on average 90,000ozs per annum. However, this has the potential to increase to 130,000ozs per annum when the nearby Blue Spec deposit is developed. Blue Spec has a JORC Resource of 415,000t at 16.3gpt for

219,000oz and is now the subject of a Definitive Feasibility Study (DFS) which is due in the September quarter of 2022.1
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	Figure 1: Gold Bars from Warrawoona Gold Project
PROJECT HIGHLIGHTS FOR THE JUNE QUARTER INCLUDED:
•	Processing plant commissioning completed
•	Milling rates progressed during the quarter and will reach nameplate of 2.4Mtpa early in the September quarter
•	Process Plant tested at up to 2.8Mtpa, with no major bottlenecks identified
•	Mining has progressed with 20,000 BCM per day movement achieved, versus an average requirement of 18,500
	BCM per day
•	New excavator and additional manning mobilised to ensure BCM movement is maintained
personal•	LNG storage vessels delivered to site with transition to gas fired electricity expected in late July
•	Total of 323,267t of low grade ore, commissioning ore and ROM ore milled
•	Total of 8,916ozs of gold poured with an additional 1,192ozs of gold in circuit
•	Total of A$22.0 million received from gold sales from the sale of 8,201oz with an average realised gold price of
	A$2,687 per ounce
•	Gold produced to date reconciling with Resource Model and Grade Control Model
For	First debt repayment of A$3 million made to Macquarie Bank as scheduled
•
•	Cash and cash equivalents of A$20.0 million at 30 June 2022 (unaudited)

1 Refer to ASX announcements dated 29 September 2020, 23 March 2021, 9 September 2021 and 2 June 2022. The Company confirms that it is not aware of any information or data that materially affects the information included in the market announcements, and that all material assumptions and technical parameters underpinning the estimates continue to apply.

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Figure 2: Warrawoona Gold Project

	OPERATIONAL PERFORMANCE IN JUNE QUARTER
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	W rrawoona Production	Units	Apr-22	May-22	Jun-22	June-22 Qtr
	Ore mined	bcm	37,680	45,670	62,141	145,491
	Waste Mined	bcm	222,608	293,219	380,346	896,173
	Strip ratio	ratio	5.9	6.4	6.1	6.2
	Ore mined	t	82,897	107,642	161,727	352,266
	Ore milled	t	30,723	131,637	160,907	323,267
	Grade	g/t	0.77	0.9	1.1	0.99
	Recovery	%	97.4	98.2	98.6	98.36
	Ounces Poured	oz	0	3,451	5,465	8,916
	Gold Sales
	Total Gold Sold	oz	0	2,232	5,969	8,201
	Average Realised Sales Price	A$/oz	0	2,686	2,687	2,687
	Total Gold Revenue	A$ M	0	6.0	16.0	22.0
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	PIRRA LITHIUM

During the quarter Calidus announced that it had commenced the maiden drill program at the Pilbara lithium Pty Ltd's (Pirra Lithium) Spear Hill discovery located in the Pilbara region of Western Australia. Pirra Lithium is owned equally by Calidus and Haoma Mining NL. The shareholders of Pirra Lithium plan to commence a demerger process and IPO later this year. Further details will be provided as and when they become available.

The initial scout drilling program comprised of 20 holes for approximately 1,673m, on a 1km portion of the 4.3km of strike length of outcropping lithium bearing pegmatites already mapped.

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Figure 3: Location of the Spear Hill area and tenement holdings and lithium rights of Pirra Lithium on a background
For personaluse	of GSWA's 1:500,000 state bedrock geology and linear structures layers.

Figure 4: Mapped distribution of the lithium pegmatites.

STRONG REGIONAL DRILLING RESULTS

Calidus announced highly promising results along strike from the Blue Spec Resource and from the Marble Bar Goldfield in the June quarter.

Highlights included:

only• At the Marble Bar Goldfield, 25km from Warrawoona, drilling has confirmed the down-dip extension of the Marble Bar quartz reef with high-grade intercepts including 2m @ 8.03g/t Au from 22m in 21MBRC005, 2m @ 6.75g/t Au from 48m in 21MBRC002 and 2m @ 4.53g/t Au from 85m in 21MBRC007

• Gold intercepts at Blue Spec East highlight potential for an open-pit operation

• Results include 52m @ 1.4g/t Au from 22m in 22BSRC010, 20m @ 1.41g/t Au from 44m in 22BSRC009, and 10m @

1.95g/t Au from 81m in 22BSRC018

• These results are outside of the Blue Spec Resource being used in the current Feasibility Study

• These results demonstrate the presence of shallow high-grade gold down dip from the old workings, showing

For personaluse	potential for Marble Bar to provide ore to Warrawoona

Figure 5: Map of E45/5172 showing the location of recently drilled RC holes and significant intercepts.