Castle Minerals : June 2021 Quarterly Report

ASX Announcement

14 July 2021

Activities Report - June 2021 Quarter

Highlights

• Confirmed base metals at both the Withnell and Terra Rossa project areas within the Earaheedy Basin project following a comprehensive review of historical reports.
  Both areas have similar stratigraphy to the Chinook-Magazinezinc-lead prospects being explored by Rumble Resources Ltd (ASX: RTR). The Withnell area and its Sioux prospect are located immediately along strike from Chinook-Magazine.
• Completed soil and rock chip sampling at the Beasley Creek gold and base metals project and planned stream sediment sampling towards the southwestern side of the licence where only limited work has been undertaken. Planning for several diamond core and RC holes also underway including for three holes to be co-funded by the GSWA Exploration Incentive Scheme initiative.
• Completed interpretation of regional aeromagnetic data covering the Success Dome precious and base metals project. This will guide an initial phase of mapping and reconnaissance sampling.
• Advanced several gold and base metal anomalies to drill-ready status at the Polelle gold project following the interpretation of results from a 827 sample infill soils program.
• Commenced flotation and characterisation test work on excavated bulk samples from the Kambale graphite project, Ghana.
• Continued to generate and assess new project opportunities in Western Australia.
• Retained working capital as at 30 June 2021 of $1.796 million.

Next Quarter

• Field verify historical diamond and RC drill holes at the Earaheedy Basin project's Withnell and Terra Rossa areas. Undertake field reconnaissance and sampling. Reprocess and interpret available geophysical data.
• Receive Beasley Creek soils and rock chip sampling program results. Complete an additional phase of sampling in the southwest of licence. Field verify and plan core and RC drilling programs including holes to be co-funded by the GSWA Exploration Incentive Scheme.
• Interpret reprocessed Success Dome geophysics, inspect targets and plan sampling.
• Inspect proposed Albury Heath splay structure drill targets at Polelle, obtain access permit and secure a drill rig ahead of planned maiden drilling program.
• Complete and report Kambale graphite test work on excavated bulk samples. Subject to results, plan core drilling to retrieve fresh samples for additional test work and plan RC drilling to determine full extent of graphite mineralisation and to update resource estimate.

Principal and Registered Office Suite 2 / 11 Ventnor Avenue West Perth, Western Australia 6005 | Postal PO Box 437 West Perth, Western Australia 6872

[e-mail]|www.castleminerals.com| Telephone [phone]

Board Chairman, Michael Atkins | Managing Director, Stephen Stone, | Non-ExecutiveDirector, James Guy, | Company Secretary Jade Styants

Cap ital Structure Ordinary Shares: 732.5M | Unlisted Options: 35.5M | ASX Code CDT | ACN 116 095 802

Castle Minerals Limited: Quarterly Activities Report for the period ended 30 June 2021

WESTERN AUSTRALIA

Earaheedy (base metals)

Five exploration licences comprising the Earaheedy base metals project were applied for in Q1 2021. The Withnell licence is adjacent to the Chinook-Magazinezinc-lead mineralisation being explored by Rumble Resources Limited ("Rumble")(ASX: RTR). The four Terra Rossa licences cover the western extension of the basin (Figs 1 and 2).

Both Castle areas have similar stratigraphy to the Rumble ground and all have documented occurrences of base metals.

An extensive review of historical open-file reports was undertaken, available geophysical survey data obtained and is currently being processed by Castle's consultants.

Figure 1: Historical prospects identified from open file reports covering Castle's Earaheedy

Basin Project

Withnell

• Historical reports, 1:100,000 scale GSWA mapping covering the Withnell application and projections of lithologies to surface indicate that the Withnell licence could host approximately 3.5km strike of the prospective Lower Frere Formation - Upper Yelma target lithologies, the same horizons that host the Chinook-Magazine prospects being explored by Rumble.
• RC and diamond drilling in 1997 by an RGC Exploration Pty Ltd and Carnegie Minerals NL joint venture, intersected low-level zinc and lead anomalism on the Withnell licence, including at the Sioux prospect. It also encountered lithologies similar to that at the Chinook and Magazine zinc-lead discoveries to the west (Refer ASX:RTR releases 8 and 19 April 2021; 2 June and 8 July 2021).

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Castle Minerals Limited: Quarterly Activities Report for the period ended 30 June 2021

• Confirming the exact collar position of the Renison drill holes will be Castle's priority activity in a field verification and reconnaissance exploration program to take place in the September 2021 Quarter.
• The projected depth of Rumble's northeast and shallow dipping mineralised unit onto Castle's Withnell licence, where it abuts the northern boundary of the Rumble licence, is undetermined and will need to be confirmed by drilling.
• Rumble (ASX release 2 June 2021) refers to the presence of a 'swarm' of northwest trending structures that may have acted as conduits for mineralising fluids to find their way into the now mineralised lithology and possibly favourably influenced the distribution of mineralisation, with the implication being that higher grade zones will be closer to the fractures. Castle is reprocessing and interpreting available open file and multi-client geophysical data to better understand the geology and structure at Withnell and to determine whether a favourable northwest trending structural fabric exists on its licence.

Figure 2: Withnell exploration licence application, GSWA geology and key prospects

Terra Rossa

• The four contiguous Terra Rossa applications are grouped immediately to the east of the dormant Thaduna copper deposit. They extend north-south for some 40km and host at least six base metal prospects appearing on the GSWA MINEDEX database.
• Most soil sampling and drilling on the Terra Rossa package took place on ELA52/3927 and especially in and around the McDonald Well South copper-zinc target. Here, one of four RC holes to test an EM conductor returned low-level copper and gold.

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Castle Minerals Limited: Quarterly Activities Report for the period ended 30 June 2021

• The Elmos base metal anomaly was identified by mapping and lag sampling conducted by CRAE in 1994. RAB drilling intersected low-level base metal anomalism.
• The 800m x 300m Terra Rossa base metal anomaly was identified by CRAE at the same time as the Elmos and the nearby Brimstone anomalies were identified. Terra Rossa was tested with a single RAB hole which returned anomalous zinc and copper.

Beasley Creek

• A 479 soil sampling and a 78 rock chip sampling campaign was completed at priority targets identified from an interpretation of a 2,323 line-kilometrehigh-resolution aeromagnetic survey completed in the March Quarter. Assay results are awaited.
• The results will be the final phase of support for the planning of a Castle funded RC and core drilling program on this granted exploration licence. Anomalous gold at several locations where Castle has undertaken bulk stream sediment sampling, the presence of quartz veining proximal to these, observations of remnant sulphide textures and malachite staining in some veins plus the recovery of small gold nuggets in the same localities, combine to reinforce the need to progress this increasingly interesting project.
• The proposed drilling will test anomalies primarily for older Archean structurally-hosted orogenic- style mineralisation. This is a new style target at Beasley Creek which was originally acquired for its paleo-placer conglomerate gold prospectivity.
• Castle successfully applied for and was awarded $99,375 from the GSWA Exploration Incentive Scheme co-funding initiative for three stratigraphic holes. This drilling will provide an improved understanding of the general stratigraphy at Beasley Creek.

Success Dome

• Regional aeromagnetic data covering the Success Dome precious and base metals project in the Ashburton region of Western Australia was reprocessed and interpreted by Castle's consultants. This work provides enhanced structural information to guide an initial phase of mapping and reconnaissance sampling exploration planned for the September 2021 Quarter. Success Dome is located midway between the Paulsen's and Ashburton gold deposits and is traversed for several kilometres by the regionally prominent Cheela Thrust fault.

Polelle

• An 827 sample point infill soil sampling program during the Quarter defined a drill-ready target within an 800m gold anomaly associated with the Albury Heath splay structure. This structure (shear zone) hosts the Albury Heath gold deposit which is located adjacent to the eastern boundary of Castle's Polelle licence. Albury Heath is now owned by Westgold and is being considered for mining and processing at its nearby Bluebird plant (ASX: WWG)(JORC 201 Inferred Resource of 528,000 tonnes at 2.09g/t Au; refer to Cervantes Corporation Limited (ASX:CVS) release 12 March 2019).
• Wide-spacedauger sampling has indicated that gold anomalism could extend south for some 4.2km towards the Lordy Bore area where the splay is interpreted to join the Albury Heath shear zone. This is supported by several anomalous rock chip samples grading up to 4.91g/t Au which were collected by Castle where the splay intermittently outcrops as a quartz vein breccia (refer ASX release 24 February 2021).
• The Albury Heath shear zone and its main splay structure extend for a combined 12km on the Polelle licence. Given the close association of gold anomalism with these structures, the scope for exploration success at Polelle is considered to be strong.

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Castle Minerals Limited: Quarterly Activities Report for the period ended 30 June 2021

• The recent soil and previous auger sampling results have also highlighted several areas of base metal anomalism that will also be investigated.

Figure 3: Recent Polelle soil sampling results combined with previous auger and rock chip

sampling

• The auger sampling also highlights several areas of copper anomalism associated with shearing in mafic volcanic / intrusive rocks as well as anomalous nickel values associated with ultramafic rocks.
• Castle is planning to drill the higher priority gold and base metal anomalies pending field verification, the securing of access permits and the availability of a drill rig.

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