Cyclone Metals : Grand Port Acquisition - Clarification Announcement

ASX

Announcement

17 March 2022

only	ACQUISITION OF HIGHLY PROSPECTIVE GOLD, COPPER, NICKEL AND
PGE PROJECTS IN NEW ZEALAND - CLARIFICATION ANNOUNCEMENT
Highlights
	• Cyclone to acquire 100% of Grand Port Resources Pty Ltd (Grand Port), which holds 6 highly
	prospective gold, copper, nickel and PGE projects in New Zealand, with a further 2 lithium and
use	REE project applications being submitted shortly;
• Grand Port's projects covering 1,140km2 , are all either near operating mines and facilities, or
other resources companies;
• The projects are Macraes South, Muirs, Mareburn, Longwood Range, Waikerikeri and Drybread,
and all are considered underexplored by modern exploration methods;
• Muirs Reef Gold Project, contains a non-JORC foreign inferred resource estimate of 222koz
Au @ 1.34g/t*, with significant exploration upside, historic drilling results include1:
personal	▪ 11.0m at 11.0 g/t Au from 48m incl. 2.0m @ 38.4g/t Au (MSDDH009)
▪ 0.7m at 17.0 g/t Au from 92.2m (TP6);
	• Mareburn Gold Project, contains a number of initial walkup extension drill targets to previous
	results1:
	▪ 10m at 2.4/t Au from 38m (RCH4535), including 3m @ 7.1g/t Au from 38m
	▪ 10m @ 1.99g/t Au from 2m (MEH21), including 6m @ 3g/t Au from 5m
	▪ 2m at 3.04g/t Au from 2m (RCH4542);
	• Acquisition conditional on shareholder approval at a General Meeting expected to be held in
	April 2022,
	• Following Completion, Cyclone plans to undertake a maiden JORC compliant mineral resource
	estimate at Muirs and commence first-pass drilling at Muirs and Mareburn.
Cyclone or the Company) wishes to provide a clarification in respect to its announcement released 24
For
February 2022 titled "Acquisition of highly prospective gold, copper, nickel and PGE projects in New

Zealand". The announcement released 24 February 2022 omitted to include specific disclosures in line with ASX listing rule 5.7 and the JORC Code.

1 Note: these are a selection of intercepts which have been chosen to demonstrate the prospectivity of the Muirs and Mareburn projects. Full results are set out in Tables 3 and Table 5.

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• Non-JORCforeign estimate (2013) by Glass Earth Limited on the Muirs Reef Project, were summarised in a 2013 NI43-101 Technical Report on Resources at Muirs Project, Te Puke, Bay of Plenty, New Zealand, Glass Earth Gold Limited. The foreign estimates are not reported in accordance with the JORC Code and a competent person has not done sufficient work to classify the foreign estimates as mineral resources in accordance with the JORC Code. It is uncertain that following evaluation and further

exploration work that the foreign estimates will be able to be reported as mineral resources in accordance with the JORC Code.

ASX Announcement

17 March 2022

Cyclone is pleased to announce that it has entered into a binding term sheet with Grand Port Resources Pty Ltd (Grand Port) to acquire 100% of the issued share capital of Grand Port which owns and has applications over a diversified portfolio of gold, copper, nickel and PGE assets in New Zealand (together, the Acquisition).

onlyNew Zealand is now a premier investment destination for resources with successful explorers and new mines being approved. The Acquisition is aligned with Cyclone's strategy to acquire and invest in strategic, value add projects around the world.

In addition to the current projects Grand Port will make applications for lithium projects in New Zealand to further diversify the portfolio with this strategic mineral.

Following completion of the Acquisition Cyclone plans to undertake a maiden JORC compliant mineral useresource estimate at Muirs and commence first-pass drilling at Muirs and Mareburn. It is anticipated

that settlement of the Acquisition will complete in the coming weeks.

Cyclone Executive Director, Tony Sage, commented: "Grand Port owns an impressive portfolio of brownfield precious and base metal assets in New Zealand, which we believe, we can add significant value through our hands on approach and strong contacts in-country.Other ASX companies are experiencing success in New Zealand and we look forward to developing these assets in the coming months to realise value for Cyclone's shareholders."

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Figure 1: Location of Grand Port Projects

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17 March 2022

Grand Port's Projects

Grand Port's Projects comprise of a portfolio of highly prospective precious and base metals projects on the North and South Islands of New Zealand, with locations shown in Figure 1.

onlySouth Island

Longwood Range Gold Copper PGE Project (application pending) is situated 40km west of Invercargill, New Zealand and covers 424km2. Historic production includes: ~88koz Au and 1,500oz of platinum. Previous drilling intersected a PGE reef with no follow up work and the project area has been identified as being fertile for copper and nickel by Otago University. There has been only 4 historic drill holes to date on the project. On-ground work will kick off with a geochemical sampling program that will generate the maiden drill program.

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ForFigure 2: Longwood Range Geology and interpreted structures from MR4454.

The Mareburn Gold Project and Macraes South Gold Project (granted) (Figure 3) covers 464km2 within the Otago Goldfield of the South Island, which has 10Moz of proven historical gold production. Mareburn sits 8km north of the producing Macraes Gold Mine and processing plant, New Zealand's largest producing gold mine, and ~2km from the Coronation open pit. Macraes South is contiguous to the south of the Macraes Gold Mine and processing plant. These areas have been significantly underexplored using modern exploration techniques.

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17 March 2022

onlyuse personalFigure 3: Macraes South and Mareburn Project locations, contiguous to the Macraes Gold Mine.

Macraes South Gold Project, (Figure 3) covers 434km2 and is contiguous to the 10Moz Macraes gold mine. No modern exploration techniques or drilling has been undertaken and the project requires immediate attention.

Mareburn Gold Project, covers 30km2 and is located ~8km from the Macraes gold mine, and contains a number of initial walkup extension drill targets to previous results1:

For	▪ 10m at 2.4/t Au from 38m (RCH4535), including 3m @ 7.1g/t Au from 38m
	▪ 10m @ 1.99g/t Au from 2m (MEH21), including 6m @ 3g/t Au from 5m
	▪ 2m at 3.04g/t Au from 0m (RCH4542)

A representative cross-section and collar plan can be seen in Figures 4 and 5. (Refer Table 4 for Location and Table 5 for assay results of all drill holes).

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Cyclone will target structurally hosted gold, with the use of modern exploration techniques. Once the existing data has been reviewed in full, Midway will complete a range of exploration programmes to generate new data, including a detailed soil geochemical programme orientation survey and a geophysical survey to identify transverse structures.

The bulk of the previous sampling has been on a 400m x 40m sample spacing grid, orientated normal
to the Macraes Thrust. This will not assess the potential for divergent mineralisation. Hence the need
for a detailed soil geochemical program to allow re-evaluation of the area. Subject to field inspection
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this would be orientated N-S to cut both forms of mineralization at broader angles. The transported cover appears limited; however, the bulk of the sampling was conducted in 1991 and the balance in 2009. Since then, techniques have improved and have been refined for multi-element analysis. This will require an initial orientation survey to trial some newer techniques (Ionic Leach geochemistry)

and "fingerprint" multi-element analysis of mineralised rock chip samples.

useThe Sub-Audio-Magnetics (SAM) approach is considered the appropriate geophysical survey technique as it is effective in delineating structure within weakly magnetic terrains. Detailed ground gravity will also be considered to help define alteration zones if SAM proves ineffective. Once these techniques have been applied and the results field validated, the geological, structural and geochemical data will be integrated to generate the Cyclone maiden drilling program.

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Figure 4: Mareburn representative Cross Section 1394390mE of mineralisation within the Hyde-Macraes shear zone.

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