Comet Resources : Quarterly Activities Report and Appendix 5B Mar 2022

Quarterly Activities Report - March 2022

Post Quarter End Highlights:

• • Comet to acquire 100% of Mt Margaret Copper Project from Glencore.

• • The Mt Margaret Copper Project successfully produced from open pit mining from 2012 until 2014, when operations were suspended due to the copper price environment and outlook at that time.

• • JORC open-pit Resources of 13.0Mt at 0.78% copper and 0.24g/t gold with >95% in the Measured and Indicated categories.

• • International Graphite (IG) IPO completed in early April 2022. Comet now a major shareholder in IG.

• • International Graphite's technology has been recognised by and received strong support from the WA Government, with a recent award of a $2M grant to contribute to the development of the Collie facility.

• • National Native Title Tribunal (NNTT) action initiated by the Company to obtain access to Native Title areas of Barraba Copper Project has been determined in favour of Comet.

• • Access has been granted to the Barraba Copper Project with no further conditions by the NNTT paving the way for Comet to now move to final permits for exploration activities at the historic Gulf Creek Mine at the Barraba project.

Comet Resources Limited (Comet or the Company)(ASX:CRL), is pleased provide the Quarterly Activities Report and Appendix 5B for the quarter ending 31 March 2022 (the Quarter).

Matthew O'Kane, Managing Director of Comet Resources, commented "On 4 April 2022, Comet announced the Acquisition of the Mt Margaret Copper Project which represents a truly transformational event for the Company. Mt Margaret is a substantial past-producing copper mine that we've been able to acquire due to portfolio rationalisation of a global tier one mining company. We are looking forward to the completion of this transaction and the development of this very attractive copper project. Subsequent to this we had the completion of the transaction with IG with their IPO on the ASX on 7 April. We look forward to working with IG as they develop their business into a successful producer of battery anode material for the rapidly growing Li-ion battery market."

Mt Margaret Copper Project:

Comet has entered into a share sale agreement (MTM Acquisition Agreement) with Minerals Mining and Metallurgy Limited (ACN 645 972 309) (MMM), Mount Isa Mines Limited (ACN 009 661 447) (MIM) and Mount Margaret Mining Pty Ltd (ACN 150 366 224) (MTM) pursuant to which MIM has agreed to sell, and MMM has agreed to buy, 100% of the issued capital in MTM (MTM Shares). MTM is the owner of the Project. Neither MMM, MIM or MTM are related parties of the Company.

The consideration for the acquisition of the MTM Shares is:

• (i) a non-refundable payment by MMM of $5,000,000 to MIM; and

• (ii) on completion, the issue by Comet (such issue to be procured by MMM) of 25,000,000 fully paid ordinary shares in the capital of Comet (Shares) to MIM (or its nominee) (at an aggregate deemed issue price for those Shares of $0.20 per Share, equal to an amount of $5,000,000.

In addition, the Company has entered into a share sale agreement (MMM Acquisition Agreement)

with MMM and the current shareholders of MMM (MMM Vendors) pursuant to which the MMM Vendors have agreed to sell, and the Company has agreed to buy, 100% of the issued capital in MMM. The consideration for the acquisition of the MMM Shares is 73,550,000 Shares (Consideration Shares) and 36,775,000 options to acquire Shares (Consideration Options), to be issued to the MMM Vendors and new shareholders of MMM since execution of the MMM Acquisition Agreement (ASX Release 4 April 2022):

Mt Margaret is located 7km from key infrastructure at the Ernest Henry Copper-Gold Mine which was recently sold to Evolution Mining Ltd (ASX: EVN) for $1 billion.1 Comet will acquire 100% of MMM and MTM (the owner of the Project) in exchange for the issuance of 98,550,000 Shares at a deemed issue price of $0.20 per Shares (on a post-Consolidation basis), resulting in an acquisition value of $19.71 million. Please refer to the ASX Release of 4 April 2022 for full details.

Mt Margaret represents both potential near-term copper production and regional exploration upside. It comprises nine (9) mining, infrastructure and regional exploration tenements hosting known iron oxide copper gold (IOCG) style deposits including JORC Measured, Indicated and Inferred Mineral Resources of 13.0Mt at 0.78% copper and 0.24g/t gold. Over 95% of the Resource is within the Measured and Indicated categories. Open-pit mining took place at the Project for approximately two years until production was suspended in 2014 due to copper market conditions and outlook at the time. At the time of suspension, two additional open-pits had been pre-stripped covering the majority of the currently defined Resource. Mt Margaret has great potential for optimisation of its open-pit mining plans for prevailing market prices for consideration of a low capital expenditure restart of mining. Extensive geological and geophysical data sets also come with the Project and the Company intends on utilising these to generate drilling targets for resource extension and regional exploration.

International Graphite:

Subsequent to the end of the Quarter, the Company completed its participation in the creation of a vertically integrated high-technology battery anode product business located in Western Australia via a transaction with International Graphite Limited (International Graphite or IG) which completed its Initial Public Offering (IPO) on the ASX on 7 April 2022. Comet vended its Springdale Graphite Project into International Graphite in return for shares initially valued at $8M upon completion of the IPO. The transaction will see Comet now participate in both the value created by the graphite resource itself, as well as the substantial value created by downstream processing into end user products.

IG will form a vertically integrated high-technology graphite business located in Western Australia to focus on the production of micronised, battery anode material and other products for lithium-ion batteries. Springdale is uniquely suited as a feedstock source for International Graphite's facility in Collie, Western Australia, not only due to its location but also due to the amenability of its graphite to be processed into high value products, such as battery anode material, based on the test work conducted in Germany at a specialised facility.

Barraba Copper Project:

Subsequent to the end of the March Quarter, CRL received favourable ruling from the NNTT following action bought by the Company in an effort to obtain access for exploration works to the

1 Refer to announcement of Evolution Mining Ltd (ASX:EVN) dated 17 November 2021.

area surrounding the historic Gulf Creek Mine at the Barraba Copper Project in NSW. After being unable to successfully negotiate access to this area of land for more than 12 months the Company was left with no option but to initiate an action at the NNTT to find a resolution.

The Tribunal has found in favour of the Company in the matter and has imposed no further conditions for access, which paves the way for the Company to now complete permitting for exploration activities in the area with the NSW government, and to subsequently begin exploration on the ground.

Our team in NSW is now working with providers of exploration drilling services to secure rig availability with drilling scheduled to commence in Q3 targeting the historic Gulf Creek Mine.

Further, the Company has agreed an amendment with the vendors to a key term of the agreement for the acquisition of the Barraba Copper Project relating to the requirement to meet a minimum expenditure condition on exploration within 18 months of the date of the initial transaction.

The key term of the acquisition for the Barraba Copper Project which was announced to the market in the Company's press releases on 23 January 2020 and 16 April 2020 has been varied as follows:

-the Purchaser shall satisfy the Minimum Expenditure Condition on Approved Exploration Expenditure, including the Minimum Drilling Requirement, within 12 months after the date of the favourable ruling by the National Native Title Tribunal, being 31 March 2022, therefore allowing the Purchaser until 31 March 2023 satisfy its obligations under clause 8 of the Agreement.

The Minimum Expenditure Condition requires that the Company expend a total amount of not less than $600,000 (excluding GST) on direct, 'in-ground' exploration activities on the Tenements which shall include a minimum of 1,250m of Diamond or Reverse Circulation drilling.

Corporate Activities:

Pursuant to Section 6 of the Appendix 5B, the Company paid $112,156 in executive and non-executive director fees, superannuation and wages to the board of Comet Resources Limited. Expenditure incurred from operating and investing activities during the Quarter relates to legal and technical due diligence in regard to project acquisitions, exploration costs and for general working capital purposes (the MAR Q Expenditure). A further breakdown is included below.

Mar Q Exploration Expenditure Summary

Project	Description	Amount ($'000)
General exploration and Evaluation	• Tenement access, administration and management • Tenement Legal • Due diligence programs for project specific activities • Technical consulting fees • Geological consultants	129
Total	129

Mar Q Administration and Staff Expenditure Summary

Description	Amount ($'000)
• Accounting, Office Administration & rent, Audit and Secretarial	30
• ASX Fees	1
• Non-executive Director Fees	43
• Managing Director Fees	69
• Marketing, subscriptions, Investor relations, Printing and postage	26
• Other legal, admin and corporate	85
Total	254

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

For further information please contact:

MATTHEW O'KANE

Managing Director

[phone]

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

About Comet Resources

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.

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.

Appendices
Tenement List
Barraba	NSW	EL8492	80%
NT	EL32279	100%
Northern Territory	ELA32664	100%
Assets	ELA32190	100%
ELA32241	100%

Project

Location

Tenement

Interest

Competent Person Statement

The information in this report that relates to Exploration Results and Mineral Resources Estimates is based on information compiled or reviewed by Ms Elizabeth Laursen (B. ESc (Hons)., GradDipAppFin, MAIG, MSEG).

Ms Laursen is a member of the Australian Institute of Geoscientists. Ms Laursen has sufficient experience that is relevant to the style of mineralisation, type of deposit under consideration and to the activity that they are undertaking to qualify as a Competent Person as defined in the 2012 edition of the 'Australasian Code for Reporting of Exploration, Results, Mineral Resource and Ore Reserves'. Mrs Laursen consents to the inclusion

in this report of the matters based on their information in the form and context in which they appear.

ASX Listing Rules Compliance Statement

In preparing the Quarterly Report for the period ended 31 March 2022 and to date, the Company has relied on the following ASX announcements. This report contains information extracted from ASX releases and reports cited herein. These are available to view on the website. In relying on the above ASX announcements and pursuant to ASX Listing Rule 5.23.2, the Company confirms that it is not aware of any new information or data that materially affects the information included in the abovementioned announcements or this Quarterly Report for the period ended 31 March 2022 and to date.

ASX Announcement	11/04/2022	Comet Gains Access to Barraba Copper Project
ASX Announcement	04/04/2022	Comet Acquires Strategic Qld Copper Project from Glencore
ASX Announcement	27/10/2021	CRL and International Graphite to create integrated business
ASX Announcement	06/10/2021	Comet adopts ESG Reporting
ASX Announcement	11/05/2021	Acquisition Completion of NT Copper Projects
ASX Announcement	19/03/2021	Acquisition of Highly Prospective Copper-Gold Project in NT
ASX Announcement	02/03/2021	Aeromagnetic Survey to Commence at Barraba Copper Project
ASX Announcement	13/01/2021	High Grade Copper and Zinc Mineralisation Confirmed
ASX Announcement	16/12/2020	Santa Teresa Gold Project Drilling to Commence Q1 2021
ASX Announcement	26/11/2020	Extensive Surface Copper Mineralisation at Barraba Project
ASX Announcement	21/08/2020	Excellent Graphite Grades - Initial Metallurgical Test Work
ASX Announcement	23/07/2020	Barraba Copper Project Update
ASX Announcement	16/04/2020	Capital Raising Closed and Project Acquisition Completed
ASX Announcement	23/01/2020	Copper Project Acquisition