Catalyst Metals : Quarterly activities report

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ASX Announcement

31 January 2022

QUARTERLY ACTIVITIES REPORT

- for Quarter ended 31 December 2021

HIGHLIGHTS

VICTORIAN EXPLORATION

• Completion of Four Eagles diamond drilling campaign aimed at developing understanding of important structures both at depth and adjacent to the Boyd's Dam prospect
• Four Eagles target generation completed post review of gravity and magnetics geophysical surveys as part of preparatory work for 2022's drill program
• At Tandarra, regional soil sampling and metallurgical test work program completed
• Further air core drilling completed at both Drummartin and Boort

HENTY GOLD MINE

• Renewed investment in Henty's exploration yielded important exploration success
• Significant strides in demonstrating potential to increase its mine life
• Exploration drilling demonstrated high grade extensions to existing mineralisation indicating a high potential of Resource and Reserve growth
• Drilling also indicated potential for new mining areas
• Gold sales of 6,621 ounces at realised price of $2,466/oz
• Gold production of 6,311 ounces of gold from 51,686t processed at grade of 4.2g/t Au with 91.5% recovery
• AISC of $2,219/oz compared against last quarter of $2,098/oz

CORPORATE

• Cash at end of quarter was $28.0M
• Deferred Henty purchase instalment made

VICTORIAN EXPLORATION PROGRAMS

Field exploration work reduced in the December 2021 quarter due to weather and ground access. Further, COVID-19 border closures has impacted the availability of drilling contractors with preferred contractors not being able to get to site.

Despite this, the 2021/22 drilling season was able to continue with reverse circulation (RC) and diamond drilling contractors being arranged for programs on those priority project areas.

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	T [phone]	ABN 54 118 912 495

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Figure 1: Whitelaw Gold Belt Tenement Holdings showing major

Catalyst managed projects

FOUR EAGLES JOINT VENTURE

Drilling at Four Eagles during the December 2021 quarter was limited to Boyd's Dam due to crop constraints, with diamond and RC drilling continuing where possible into deep and adjacent structural targets. The interpretation of ground gravity and magnetics geophysics surveys across the accessible parts of Boyd's Dam, Hayanmi, and Pickles have provided targets of interest for the 2022 program.

Continued trials of deep RC drilling have shown mixed success with the limiting aspect being groundwater flows.

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Baseline study work commenced on identifying the optimal site to commence an exploration decline that would allow drilling from beneath the Murray Basin Sediments in basement rocks. The aim is to site the portal entry in an area of shallow cover to minimise impact and cost. The decline and underground development would allow access to Hayanmi, Boyd's North and Boyd's Dam prospects

Four Eagles is a Joint Venture with Hancock Prospecting Pty Ltd (through subsidiary Gold Exploration Victoria (GEV)). Exploration is managed by Catalyst and jointly funded by the JV partners. Four Eagles covers an area of 304km2 and includes three key prospects - Hayanmi, Boyd's Dam, and Pickles - lying on the 75km long Whitelaw fault (see Figure 2).

Figure 2: Four Eagles Gold project showing location of prospect locations, gold trends,

2020-21 drilling program locations, and area of freehold land purchased

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TANDARRA JOINT VENTURE

At the Tomorrow prospect, geological interpretation of drillhole and geophysical data has continued through the quarter, with specific focus on the fault systems that are responsible for mineralisation. Three-dimensional modelling has provided further insight into the geometries of faults that are important to target generation at depth.

Figure 3: Tandarra Gold Project showing location of prospect

locations and current activities

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A metallurgical sample was submitted to an external laboratory for analysis on gravity and cyanide- soluble gold recovery, with results anticipated in the March quarter.

A soil sampling survey across the Tandarra tenement was completed during the December quarter. Nine of ten broadly spaced survey lines were completed, with laboratory analysis ongoing. The survey was implemented to determine possible exploration targets that have not been detected through geophysics.

The Tandarra Gold Project lies immediately to the south of Catalyst's Four Eagles project. Catalyst holds a 51% interest in Tandarra. Catalyst manages the joint venture with expenditures funded by JV partner, Navarre Minerals Ltd, in their respective proportions. Tandarra covers an area of 60km2, and includes three key prospects - Tomorrow Macnaughtan, and Lawry - lying on the 75km long Whitelaw fault (see Figure 3).

DRUMMARTIN PROJECT (ST BARBARA FARMING IN)

Figure 4: Drummartin Exploration Licence EL006507

showing gravity targets and air core drill holes

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