Springdale Spherical Graphite ICP Assay Results

10 November 2021

Springdale Spherical Graphite ICP Assay Results

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Highlights:

• As previously announced, spherical graphite produced at a specialist facility in Germany was purified using two methods which produced results of 99.96% and 99.99%
• Inductively coupled plasma (ICP) assays of both these samples have now been completed

Comet Resources Ltd (Comet or the Company) (ASX:CRL) is pleased to provide the results of specialist test work on natural flake graphite from its Springdale Graphite Project (Springdale) located in Western Australia. The results of ICP assay of spherical graphite purified to 99.96% with an intensive alkaline (Sodium Hydroxide - NaOH) method, based on a caustic roasting process, were previously provided in our press release of 21 September 2021. A second sample of spherical graphite was purified using hydrofluoric acid (HF) to 99.99%. The results of ICP assay of the HF purified sample are now provided in this release, with comparison to the results of the sample processed using alkaline purification.

The HF purification worked well as can be seen from the low values returned from the ICP (see table 1). All element values assayed in the ash material are better than the typical specification limits required for use in battery anode material (BAM) for lithium-ion batteries.

As previously advised, assay of the intensive alkaline purified material was also undertaken using the ICP technique (see Table 1). Essentially all elements present in the gangue were at a low level after the purification, especially the critical detrimental elements for use in batteries, such as iron, silicon, chromium and copper, which were measured at levels below the typical specification limits for anode material for lithium-ion batteries. Three element assays were slightly elevated, sodium, nickel and calcium. Sodium is very likely a residue from the alkaline digestion (sodium hydroxide) and can be reduced significantly by further optimisation of the purification process. The same applies for nickel, which is most probably coming from the nickel crucible used during purification. The only element which was found in higher concentration than typical limits for lithium-ion BAM was calcium. Comet believes, a modified alkaline based treatment would lower the calcium value. Often a limit of 25 ppm is given for calcium, versus the result from assay of 32.7 ppm. However, a result within the 25 ppm limit should be achievable with future optimisation work.

Further test work:

Further testing is currently in process on the balance of the concentrate material that was shipped to Germany to optimise the processing of Springdale natural flake graphite into spherical graphite suitable for use as precursor material for the production of anode material used in the manufacture of lithium-ion batteries.

These tests will primarily focus on improvements in yield during the process of spheronisation of the graphite. Once this test program is complete in Germany, which will have exhausted the supply of graphite concentrate, further test work will be paused pending the completion of the proposed transaction with International Graphite. They will then continue with further testing post close of the deal.

10 November 2021

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Table 1: Results of ICP Assay of ash from NaOH and HF purified spherical graphite after LOI test

Testing Background:

Test work completed initially in 2019 and 2020 identified that graphite concentrate from Springdale, in particular in the high grade area of the resource, was quite a unique product due to its very fine size fraction, and also due the platy nature of the fine flake. Recognising that these properties may potentially have applications for BAM, a decision was made earlier in 2021 to generate a bulk sample of graphite concentrate to send to Germany for evaluation by a specialist graphite test facility. This press release details further results of that testing process.

10 November 2021

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Corporate Activity Update:

On 19 May 2021 the Company announced it had executed a binding heads of agreement (HOA) with American International Ventures Inc (AIVN) for the proposed 100% acquisition of the La Sorpressa III tenement. The tenement lies to the northwest of Comet's Santa Teresa Gold Project tenement 223182 - "Santa Teresa", sharing a tenement boundary proximate to the area of that is host to the JORC compliant inferred resource. Comet paid a US$25,000 fee for 90 days exclusivity to conduct due diligence prior to making a decision to complete the proposed transaction. Despite making multiple requests to AIVN for them to provide material to enable Comet to complete its due diligence, no data was provided. We are now assessing legal options for recovery of the US$25,000 fee paid, and other potential damages.

This announcement has been authorised by the Board of Comet Resources Limited

For further information please contact:

MATTHEW O'KANE

Managing Director

[phone]

[e-mail]

cometres.com.au

Suite 9, 330 Churchill Avenue Subiaco WA 6008 PO Box 866 Subiaco WA 6904

10 November 2021

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About Comet Resources

Santa Teresa Gold Project (Mexico)

The Santa Teresa Gold Project is comprised of two mineral claims totalling 202 hectares located in the gold rich El Alamo district, approximately 100 km southeast of Ensenada, Baja California, Mexico; and 250 km southeast of San Diego, California, USA. The Project is prospective for high grade gold. In addition to the two claims of the Project, two additional claims totalling a further 378 hectares in the surrounding El Alamo district are being acquired from EARL.

Barraba Copper Project (NSW)

The 2,375ha exploration license that covers the project area, EL8492, is located near the town of Barraba, approximately 550km north of Sydney. It sits along the Peel Fault line and encompasses the historic Gulf Creek and Murchison copper mines. The region is known to host volcanogenic massive sulphide (VMS) style mineralisation containing copper, zinc, lead and precious metals. Historical workings at Gulf Creek produced high-grade copper and zinc for a short period around the turn of the 19th century, and this area will form a key part of the initial exploration focus.

Northern Territory Projects (NT)

The portfolio of Northern Territory exploration licenses and exploration license applications covers an area of approximately 840km2. Although historical exploration results were indicative of near surface gold and copper mineralisation, very limited modern exploration has occurred. Comet plans to utilise modern exploration techniques to rapidly advance the scale of known mineralisation, especially where known geophysical and geochemical anomalies exist that have not been comprehensively drill tested.

Springdale Graphite Project (WA)

The 100% owned Springdale graphite project is located approximately 30 kilometres east of Hopetoun in South Western Australia. The project is situated on free hold land with good access to infrastructure, being within 150 kilometres of the port at Esperance via sealed roads. The tenements lie within the deformed southern margin of the Yilgarn Craton and constitute part of the Albany-Fraser Orogen. Comet owns 100% of the three tenement's (E74/562 and E74/612) that make up the Springdale project, with a total land holding of approximately 198 square kilometres.

Competent Persons Statement

The information in this report that relates to Mineral Resources is based on information compiled by Matthew Jones, who is a Competent Persons and Member of The Australasian Institute of Mining and Metallurgy. Matthew Jones is a consultant and was previously Exploration Manager of the Company. He has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Matthew Jones consents to the inclusion in this report of the matters based on their information in the form and context in which it appears.

The information in this report that relates to metallurgical test work results is based on information reviewed by Mr David Pass, who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Pass is an employee of BatteryLimits. Mr Pass has sufficient experience relevant to the mineralogy and type of deposit under consideration and the typical beneficiation thereof to qualify as a Competent Person as defined by the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code, 2012 Edition). Mr Pass consents to the inclusion in the report of the matters based on the reviewed information in the form and context in which it appears.

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10 November 2021

Forward-Looking Statement

This announcement includes forward-looking statements. Forward-looking statements include, but are not limited to, statements concerning Comet Resources Limited's planned exploration programs, corporate activities and any, and all, statements that are not historical facts. When used in this document, words such as "could," "plan," "estimate," "expect," "intend," "may", "potential," "should" and similar expressions are forward-looking statements. Comet Resources Limited believes that its forward-looking statements are reasonable; however, forward looking statements involve risks and uncertainties and no assurance can be given that actual future results will be consistent with these forward-looking statements. All figures presented in this document are unaudited and this document does not contain any forecasts of profitability or loss.