Catalyst Metals Limited announced an initial JORC 2012 compliant Ore Reserve Estimate of 983,000t at 3.6g/t for 115,000oz at its Henty Gold Mine in Tasmania. This maiden Reserve follows the recently released Mineral Resource Estimate which showed that after accounting for the Financial Year 2022 production, there was an increase of 10% in the operation's Mineral Resource and a 20% increase in Resources since Catalyst acquired Henty in January 2021. The 2022 Reserve has been derived from the Mineral Resource models using ore classified in the Indicated category.

Individual stopes may contain up to 20% Inferred ore, and in total these comprise less than 1% of the ORE. Stopes designed within the Life of Mine plan that contain insufficient Indicated Resource will be targeted for upgrade drilling. This is important because these represent areas where Catalyst can target relatively low cost conversion from Inferred to Indicated Resource, and provide additional material to be assessed in future Reserve estimates.

The ORE has been developed from the Life of Mine Plan. The ORE is the subsection of the Life of Mine plan being in the Indicated Resource category. The Mineral Resource Estimate (MRE) on which the ORE is based was prepared by consultants CSA Global based on drill hole data as of 30 June 2022.

The Henty Gold Mine is located 23 kilometres from the town of Queenstown in north western Tasmania, consisting of an underground mine and a nameplate capacity 300,000tpa conventional CIL processing plant. Catalyst acquired 100% of the Henty Gold Mine and regional exploration tenements, in January 2021. Since acquisition, Catalyst has been pursuing a strategy to increase mining inventory to support higher gold production and lower costs.

Catalyst has invested heavily in exploration and recent updates to its Reserve and Resource estimates will inform a life of mine plan to support this strategy. In the FY22 June quarter production at Henty was 6,397oz at an AISC of AUD 2,100oz. Production for FY22 was 25,199oz and Catalyst is targeting an annualised gold production rate of 35,000oz by the end of FY23.

The Ore Reserve is the economically mineable part of a Measured and/or Indicated Mineral Resource. It includes diluting materials and allowances for losses, which may occur when the material is mined or extracted and is defined by studies at Pre-Feasibility or Feasibility level that include application of Modifying Factors. The studies demonstrate that, at the time of reporting, extraction could reasonably be justified.

A `Probable Ore Reserve' is the economically mineable part of an Indicated Mineral Resource. The confidence in the Modifying Factors applying to a Probable Ore Reserve is lower than that applying to a Proved Ore Reserve. A Proved Ore Reserve represents the high confidence category of reserve estimate and implies a high degree of confidence in geological and grade continuity, and the consideration of the Modifying Factors.

All Reserves in the 2022 ORE are classified as Probable. The Henty Mine uses bench mining and flatback mining as the principle means of ore extraction. In selected places where development allows, a modified Avoca method has been used with success.

Mining method selection is based on: · Width and grade of the ore · Regularity along strike and up dip · Proximity to the Henty Fault zone · General ground conditions Each orebody has unique characteristics. Where conditions permit, benching provides the most cost- effective method of extraction. Where the ore value is high, but ground conditions are critical to minimising dilution flatback mining is preferred.

In bench stoping, heights are limited to 12-15m. Where it is economic to do so, development is completed top and bottom. The choice of uphole or downhole drilling is based on geometry of the ore.

Extraction is bottom up. As a generality, the mining areas in the lower section of the mine have wider widths, more modest grades and are away from the Henty Fault. Conversely the upper areas of the mine tend to be higher grade, narrow and occasionally interact with the Henty Fault.

Production drilling is carried out using a long hole drill rig equipped with a Minnovare Production Optimiser system for drillhole accuracy. Blasting is carried out using ANFO and electronic detonators. A three-dimensional (3D) block model representing the mineralisation was created using Datamine software.

Diamond core and underground face samples were used to interpolate Au grades into blocks using Ordinary Kriging. Several methods validated the block model, including visual review and comparison of sampling and block model grades. The stopes were created by applying the Shape Optimiser (SO) software in Deswik CAD to the various Mineral Resource models which were completed in Datamine by CSA Global Pty Ltd. (CSA).