Castle Minerals Limited - Activities Report, December 2021 Quarter

Explorer and project incubator, Castle Minerals Limited (ASX: CDT) ('Castle' or the 'Company'), provides the following summary of activities undertaken during the December Quarter 2021 at its Western Australia and Ghana projects

AUSTRALIA Kendenup (Graphite)

150km2 of tenure secured over the Kendenup graphite field in the southwest of Western Australia via: Purchase of granted exploration licence hosting the historical Kendenup graphite workings, and Application for adjacent open ground hosting the historical Martigallup graphite occurrences.

Graphite mineralisation had been intersected on the Martigallup licence by recent third-party diamond drill testing of an EM anomaly for base metals.

The EM anomaly appears to be along strike from the Kendenup workings and may represent an extension to the horizon that hosts the Kendenup graphite.

Wilgee Springs (Lithium)

The 120km2 Wilgee Springs exploration licence application encompasses an area considered prospective for lithium bearing pegmatites.

It lies within same metamorphic belt and along strike of the Greenbushes lithium mine.

Greenbushes is the world's largest, highest grade and lowest cost, hard rock, spodumene concentrate producing operation, supplying 21% of global lithium from a Mineral Resource of 178.5Mt at 2.0% Li2O (refer IGO ASX release 9 December 2020).

Castle's application also joins Lithium Australia P/L, CMC Lithium P/L and Lithium Power Holdings P/L in the same belt.

Modern advanced geochemical and geophysical exploration technologies will be used to 'peer' through the thick laterite cover which has previously hampered exploration.

An orientation site visit confirmed good access for first-pass, low-impact exploration

Woodcutters (Lithium)

Two exploration licences (Woodcutters and Tramways) were applied for 25km north of the Liontown Resources Limited (ASX: LTR) Buldania lithium deposit.

GSWA mapped numerous pegmatite veins which do not appear to have been drilled or sampled for lithium.

Elevated lithium values have been noted in multi-element geochemical data from regolith sampling during historical exploration focused on gold.

Castle has engaged a specialist geochemist to review the historical regolith data and once complete and subject to results, it plans to undertake an initial rock chip and confirmatory geochemical sampling program to determine the area's prospectivity for LCT-type pegmatites.

Earaheedy (Base Metals)

The 870km2 Earaheedy base metals project comprises six exploration licences that were applied for in 2021 and which comprise the Withnell, Terra Rossa and Tableland sub-projects.

All three areas encompass terrane prospective for base and precious metals.

The Withnell application is adjacent to the evolving Chinook-Magazine zinc-lead project of Rumble Resources Ltd (ASX: RTR) and north of the Strickland Metals Limited (ASX: STK) Iroquois prospect. The licence was granted during the Quarter.

The four Terra Rossa applications are immediately east of the Sultan Resources Ltd (ASX: SLZ) Thaduna copper deposit.

A sixth application covers the Tableland region in the south-eastern margin of the Basin.

Withnell

Public reporting during the Quarter by ASX listed Rumble and Strickland on their properties adjacent to the Withnell licence, and other companies generally in the Basin province, has added considerably to the broader understanding of the styles of mineralisation being encountered by drilling (i.e. SEDEX, MVT), its stratigraphic setting and structural controls

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.

Reviews of historical reports indicate that the Withnell licence could host approximately 3.5km strike of prospective lithologies.

Castle's geologists undertook a field orientation site visit to Withnell and Terra Rossa to prepare for the first phase of exploration.

With the Withnell licence granted, Castle is keen to commence drilling which is subject to the execution of an access agreement and site survey.

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.

Beasley Creek (Gold, Base Metals and Lithium)

A specialist geochemical review highlighted four high-priority gold and lithium anomalies for rapid field verification and drilling.

Numerous other lower-order stream sediment and soil anomalies (total of 23), including for base metals, have also been delineated for follow-up.

Castle's recognition that the under-explored older Archean greenstone sequence of rocks at Beasley Creek is prospective for structurally controlled, orogenic-style gold mineralisation is beginning to pay dividends.

Two of the priority gold targets fall within a structurally bound, northwest trending anomalous corridor in the centre of the licence.

They comprise a consistently anomalous 600m zone with associated copper anomalism and a smaller anomalous gold zone with a multi-element association of sliver, bismuth, nickel, platinum and palladium. Sample values peaked at 137ppb Au and 1010ppm Cu.

The two other priority targets have a strong lithium signature in both soil and stream sediment samples. These are located in the southern section of the greenstone rocks, close to their margin with the Rocklea Dome granite.

Lithium and the anomalous associated pathfinder elements also identified were not a specific target for exploration at Beasley Creek but their elevated values have provided Castle with an additional dimension to its exploration in the region.

The multi-element signatures of these anomalies are consistent with possible hard rock lithium mineralisation associated with lithium-cesium-tantalum ('LCT') type pegmatites and their close proximity to the Rocklea Dome granite provides additional encouragement.

At this stage it is too early to have a firm understanding of the origin of the lithium. It is also stressed that Castle has not yet carried out enough sampling to confirm the source of the lithium or other associated elements and no pegmatites have as yet been identified in the field or are apparent from satellite imagery.

A field inspection is planned as a priority and before any decision to drill the lithium targets is made. EIS Co-Funding

As the emphasis at Beasley Creek has shifted away from gold mineralisation in the vicinity the unconformity between the Hardey Formation and the underlying Archean greenstone sequence, Castle has informed the GSWA that it no longer requires to drill the deep stratigraphic diamond core holes that were to be co-funded under the Exploration Incentive Scheme (EIS).

Success Dome (Gold, Base Metals)

The reprocessing by Castle of the regional aeromagnetic data covering the Success Dome precious and base metals project in the Ashburton region and the enhanced structural information obtained from that and an initial phase of mapping and reconnaissance sampling has provided an excellent guide for a planned initial phase of exploration once the licence is granted.

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 (Gold, Base Metals)

Polelle is 15km south of the Great Boulder Resources (ASX: GBR) Side Well gold project and its 5.1km-long Mulga Bill intrusive related anomaly.

Adjoining Polelle to the north is the SensOre (unlisted) Tea Well project where its proprietary 'AI' technology has predicted a large mineral system.

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 and the success being achieved by Great Boulder and SensOre, the scope for exploration success at Polelle is considered to be strong.

Following the completion of a specialist geochemical data review of historical and Castle stream sediment, soil and rock chip sampling campaigns, several priority targets for gold and base metals were defined.

The Company is now making plans to drill test the highest ranked of targets.

All eight prospecting licence applications extending Polelle 4km north have been granted and multielement geochemical sampling can now be extended across these.

Wanganui (Gold)

At the Wanganui project, 33km south-west of the active Meekatharra mining centre and 15km southwest of the operating Bluebird gold mine, down-plunge and along strike extensions to the existing Main Lode North and South deposits are being pursued, as well as other similar targets. The Main Lode mineralisation, which can be intermittently traced for at least 1km, is one of at least four structurally related mineralised zones.

Drilling completed by Castle in the December 2020 Quarter indicated the likelihood of extensions to plunging mineralised structures at Main Lode South. These may be tested as an adjunct to proposed drilling at Polelle but is not considered high priority.

GHANA

Carlie Mining Limited (Graphite, Gold)

Carlie Mining Limited is a wholly owned Ghanaian registered subsidiary of Castle that holds all of its Ghana project interests.

In addition to its Kambale graphite project, Carlie has a substantial and contiguous tenure position in Ghana's emerging Upper West region. Its licence holdings encompass large tracts of highly prospective Birimian geological terrane, the host to many of West Africa's and Ghana's multi-millionounce gold mines.

Castle continues to assess options that will see exploration on Carlie's Ghana licence holdings appropriately funded and the value of its Ghana interests fully reflected in Castle's market capitalisation. As previously flagged, this may include additional farm-outs, a sale to a third party or divestment into a new vehicle for listing on ASX. A geologist has been retained to prepare an Independent Technical Assessment Report ('ITAR') which will assist the advance of these options.

Unlisted Castle retains a 4% net smelter precious metal royalty over the Julie West licence, a key component of Azumah Resources Limited's Wa Gold Project, which is at an advanced stage of consideration for development. Iguana Farm-out

Pursuant to a Binding Term Sheet executed in July 2019, the Gbiniyiri and Degbiwu licences have been farmed-out to Ghana company, Iguana Resources, which intends to explore for gold and base metals.

Iguana has not met some of its obligations under the BTS and Carlie has reserved its rights accordingly. Carlie has approached Iguana to attempt to agree a means acceptable to both parties to enable the farm-out arrangement to continue. Kambale graphite

Carlie Mining Limited (a 100% owned Ghanaian registered subsidiary of Castle) has been reevaluating its Kambale graphite project in northern Ghana given the very positive outlook for the graphite market driven by its growing usage in traditional markets and the now burgeoning electricity storage and EV related markets.

Castle is preparing to undertake a ground EM survey to assist in determining the full extent of the graphitic schist host which is believed to extend over several kilometres and beyond the current area drilled. It will then follow-up with drill traverses to confirm the schist's presence, its boundaries and variations in quality along strike, across its width and to depth.

Diamond drilling is then planned to provide reliable samples for geological purposes and for a second phase of test work on fresh unweathered material.

NEW OPPORTUNITIES

Castle continues to generate and assess opportunities for possible acquisition with a focus on Battery Metals

Contact:

Stephen Stone

Tel: [phone]

Email: [e-mail]

About Castle Minerals Limited

Castle Minerals Limited is an Australian Securities Exchange (ASX: CDT) listed and Perth, Western Australia headquartered company with interests in several projects in Western Australia and Ghana that are prospective for battery metals (lithium and graphite), base metals and gold. The Earaheedy Basin project encompasses terrane prospective for base and precious metals in the Earaheedy and Yerrida basins base metals provinces. The project comprises the Withnell, Terra Rossa and Tableland sub-projects. The Withnell application is adjacent to the evolving Chinook-Magazine zinclead project of Rumble Resources Ltd (ASX: RTR) and north of the Strickland Metals Limited (ASX: STK) Iroquois prospect. The four Terra Rossa applications are immediately east of the Thaduna copper deposits.

The Beasley Creek project lies on the northern flanks of the Rocklea Dome in the southern Pilbara. The strategy is to define orogenic-style, structurally controlled gold targets within the various Archean sequences. The sheared granite - greenstone contact and the 'Paulsen Gold Mine' type setting within the gabbro/dolerite units that intrude the Hardey Sandstone in the northern part of the project area, are also of particular interest.

The Success Dome project lies in the Ashburton structural corridor and is located midway between the Paulsen's and Ashburton gold deposits. It is prospective for gold and base metals. Major thrust faults and subparallel shear zones highlighted in the regional magnetic and gravity data, combined with additional detailed geophysics data from previous explorers, brought this available area to Castle's attention. The Polelle project (E51/1843, 162.5km2), 25km south of Meekatharra and 7km southeast of the operating Bluebird Mine, hosts a mainly obscured and minimally explored greenstone belt.

The belt is comprised of a combination of prospective lithological units and major structural features including the Albury Heath shear which hosts the Albury Heath deposit immediately adjacent to the east boundary of Castle's licence. Aeromagnetic surveys have indicated that the southwest trending Albury Heath shear and a splay structure are traceable onto the Polelle project area for some 12km. At the Wanganui project (E51/1703, 18.4km2), 33km south-west of the active Meekatharra mining centre and 15km south-west of the operating Bluebird gold mine, the opportunity is to test for down-plunge and along strike extensions to the existing Main Lode North and South deposits, as well as for other similar targets. The Main Lode mineralisation, which can be intermittently traced for at least 1km, is one of at least four structurally related mineralised zones. The Wilgee Springs project (ELA70/5880, 120km2 ), along strike from and within the same metamorphic belt as the World-Class Greenbushes lithium mine, 25km to the south in Western Australia's South-Western region, provides an opportunity to explore using the latest geochemical and geophysical techniques for spodumene bearing pegmatites beneath a lateritic cover that has previously hampered exploration.

The Woodcutters project (ELA15/1847/1847, 242km2) is prospective for lithium bearing pegmatites, 25km southeast of the Bald Hill lithium mine in the Bald Hill pegmatite field region and 25km northwest of the Buldania lithium deposit. The Kendenup project (EL70/5514 - granted) comprises the historical Kendenup graphite workings and an adjacent application encompasses the Martigallup graphite occurrences (ELA70/5963). In Ghana, West Africa, Castle has a substantial and contiguous tenure position in the country's Upper West region. Ghana has a long history of gold exploration and mining with several world-class gold mining operations owned by Tier 1 mining companies. Castle's Ghana licence holdings encompass large tracts of highly prospective Birimian geological terrane, the host to many of West Africa's and Ghana's multi-million-ounce gold mines. The project area is also host to the open-ended Kambale graphite project for which test work on near-surface samples produced a 96.4% total carbon fine flake graphite concentrate. Castle retains a 4% net smelter precious metal royalty over the adjacent Julie West licence, a key component of Azumah Resources Limited's Wa Gold Project.

Cautionary Statement

All of Castle's projects in Australia are considered to be of grass roots or of relatively early-stage exploration status. There has been insufficient exploration to define a Mineral Resource. No Competent Person has done sufficient work in accordance with JORC Code 2012 to conclusively determine or to estimate in what quantities gold or other minerals are present. It is possible that following further evaluation and/or exploration work that the confidence in the information used to identify areas of interest may be reduced when reported under JORC Code 2012. The Kambale graphite deposit is at an early stage in its evaluation with little known about how extensive the deposit is or how the graphite quality varies within it. Work to date has been undertaken on an easily accessible area which may or may not be representative of the broader deposit once that is known. To date, the area investigated at Kambale has produced from weathered samples a fine flake size concentrate of a potentially commercially acceptable grade at a reasonably high recovery. Definitive test work on fresh material and material from other parts of the deposit has yet to be undertaken.

Forward Looking Statement

Statements regarding Castle's plans, forecasts and projections with respect to its mineral properties and programs are forward-looking statements. There can be no assurance that Castle's plans for development of its mineral properties will proceed. There can be no assurance that Castle will be able to confirm the presence of Mineral Resources or Ore Reserves, that any mineralisation will prove to be economic or that a mine will be successfully developed on any of Castle's mineral properties. The performance of Castle may be influenced by a number of factors which are outside the control of the Company, its Directors, staff or contractors.

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