Caspin Resources : Quarterly Activities/Appendix 5B Cash Flow Report

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QUARTERLY

ACTIVITIES REPORT

For the period ended 30 June 2022

20 July 2022

Activities Report for the Quarter Ended

30 June 2022

HIGHLIGHTS

Yarawindah Brook Project

• Early results from the Serradella Prospect (previously known as XC-22) demonstrates potential for a significant PGE-Ni-Cu deposit
• 91m @ 0.48g/t 3E returned from a 350m step-out hole (YARC0040) and is the most significant zone of metal accumulation (grade-width basis) intersected to date
• Strong sulphide mineralisation recognised in diamond drilling adjacent to discovery hole - assays pending
• Results support a new geological model, indicating a large untested search space and providing a vector towards the more prospective basal position of the intrusion
• This basal position of the intrusion has not been drill tested, providing a new, highly prospective target for next round of drilling
• Diamond drilling at XC-46 AEM conductor on the Brassica Shear Zone identifies thick sulphide zones with visible nickel-copper mineralisation - assays pending
• Brassica Shear Zone interpreted as the connecting structure between Julimar and Yarawindah areas
• Confirms the prospectivity of the 17km long Brassica trend of mafic and ultramafic rocks through the Yarawindah Brook Project
• Core of main XC-46 conductor remains untested, and mineralisation is open in all directions
• Multiple targets along the Brassica trend remain to be tested
• Assays from many key drill holes still to come from Serradella, as well as Northwest soil anomaly and XC-46 Prospects

Mount Squires Project

• Reconnaissance aircore drilling at Duchess Cu-Au Prospect and West Musgrave magmatic Ni- Cu trend
• Extension of regional geochemical soil sampling program
• Approximately 10,000m of drilling and 2,500 soil samples to be collected
• Commencement of exploration programs in a highly prospective, under-explored region

Caspin Resources Limited (ASX: CPN) ("Caspin" or the "Company") is pleased to report on corporate and exploration activities during the June 2022 Quarter.

CASPIN RESOURCES LIMITED

Quarterly Activities Report - Period Ended 30 June 2022

For personal use only

Yarawindah Brook Project

The Serradella Prospect - Priority Target Beginning to Emerge

Since the initial discovery of mineralisation at the Serradella Prospect (drill hole YARC0022 - see ASX announcement of 9 February 2022 and 14 March 2022), the Company has drilled a further eighteen holes, typically on 200m-spaced centres over a strike of at least 1km. The focus was a strong magnetic anomaly in the area, indicating likely high-MgO ultramafic rocks, which are considered to have an important association with mineralisation.

Assays from two of the larger down-dipstep-out holes have been returned and provide critical clues about potential mineralisation trends. Of particular note is YARC0040 which returned 91m @ 0.48g/t 3E (Pd+Pt+Au), including 2m @ 1.04g/t 3E, 0.22% Ni & 0.48% Cu from 149m, 3m @ 0.97g/t 3E, 0.25% Ni & 0.35% Cu from 213m and 1m @ 2.71g/t 3E, 0.18% Ni & 0.07% Cu from 232m. This hole is 350m to the northeast of the discovery hole at Serradella, YARC0022.

YARC0039, located 500m to the southeast of YARC0040, returned 78m @ 0.19g/t 3E, 0.11% Ni & 0.08% Cu, a very broad and anomalous intersection, but significantly lesser grade compared to YARC0040. This contrast has helped provide valuable support to the Company's geological model and a vector to potentially stronger mineralisation.

This model is based on the following key geological observations:

• The Yarabrook Intrusion has been recognised to be over-turned (or downward facing). Therefore, the basal position of the intrusion, usually the more prospective position for the accumulation of sulphides, is predicted to be found in the structural upper-most part of the intrusion.
• Geological units within the intrusion dip gently to the northeast.
• The Yarabrook Intrusion at Serradella is bounded on its eastern (structural hanging-wall side) by a zone of shearing that is interpreted to be a thrust-fault. This structure is referred to as the Hanging Wall shear zone and juxtaposes granitoid over the top of the Yarabrook intrusion. The effect of this structural geometry is that a relatively shallowly dipping sheet of granitoid conceals the Yarabrook intrusion as it plunges away to the north east.
• The intrusion is completely open below this Hanging Wall shear zone. Very importantly, however, the Hanging Wall Shear Zone truncates the intrusion at an orientation that is oblique to, and at a shallower angle than, the internal igneous stratigraphy of the intrusion. The means that as drilling steps out down- plunge to the north east, progressively lower stratigraphic units of the Yarabrook Intrusion are intersected.
• Importantly, the Hanging Wall Shear is locally mineralised. This suggests the possibility that this mineralisation is sourced from a down-plunge mineralised body that has not yet been intersected.

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CASPIN RESOURCES LIMITED

Quarterly Activities Report - Period Ended 30 June 2022

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Figure 1. Serradella Prospect drill hole locations over magnetics. The arrow demonstrates the direction of the conceptually more prospective parts of the intrusion. This model will be refined upon receipt of additional assays with many holes still to be returned (orange dots).

This model has some very important exploration implications. It tells us that the prospective basal part of the Yarabrook Intrusion (i.e. the position geologically-equivalent to the Gonneville Intrusion at Julimar) is not exposed at the surface but is predicted to be located down-plunge to the NE of the current drilling at Serradella. The recent assay results from YARC0039 and YARC0040 are a significant validation of this model and are considered a significant positive step towards discovery.

Results have also been received for YARC0023, YARC0026 and the RC pre-collars of YARCD0025 and YARCD0027. None of these holes (or in the case of YARCD0025 and YARCD0027 the pre-collars) were expected to deliver any significant results, although some interesting results have nonetheless been returned. YARCD0027 produced a significant intersection of 1m @ 3.21g/t 3E, 0.22% Ni & 0.01% Cu from 77m within the Hanging Wall Shear, immediately beneath the granitoid contact. This mineralisation has likely been remobilised from a nearby primary source and bodes well for results from this and the surrounding holes in due course.

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CASPIN RESOURCES LIMITED

Quarterly Activities Report - Period Ended 30 June 2022

Diamond tails on YARCD0025 & YARCD0027 have intersected significant zones of sulphides, approximately correlating with mineralisation intersected in YARC0022. Examples of sulphide mineralisation are shown in Figures 3-5 (see ASX release of 2 May 2022).

YARC0024 was abandoned well above target depth after the hole became unstable. Some narrow, mineralised intervals in this hole such as 1m @ 0.82g/t 3E, 0.18% Ni & 0.10% Cu are likely also related to remobilisation along the Hanging Wall Shear. YARC0026 intersected a thick interval of post-mineralisation dolerite at the approximate position that mineralisation from YARC0022 may have reasonably been expected and is not considered to have effectively tested the position.

Figure 2. Oblique section (refer to Figure 3) across the Serradella Prospect. The section indicates that the basal position (and conceptually better mineralised portion) of the intrusion should be preserved underneath the Hanging Wall Shear and intersected as drilling progresses in a northeast direction (refer to Figure 1 and 4).

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CASPIN RESOURCES LIMITED

Quarterly Activities Report - Period Ended 30 June 2022

For personal use only

Figure 3. Sulphide mineralisation (pentlandite-pyrrhotite +/- chalcopyrite) and hematite alteration (red-brown mineral) in YARCD0025 from the upper sulphide zone at approximately 202m.

Figure 4. Coarse sulphide mineralisation (pentlandite-pyrrhotite +/- chalcopyrite), lower sulphide zone in YARCD0027 at approximately 248m.

Figure 5. Interstitial sulphide mineralisation from the lower sulphide zone in YARCD0027 at approximately 253m.

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