DevEx Resources : Quarterly Activities and Cashflow Report for the Quarter ended 31 December 2021

27 January 2022

Activities Report for the Quarter Ended 31 December 2021

Exploration ramps up at Sovereign (WA) and Junee (NSW) with significant

drilling and geophysical programs in progress

HIGHLIGHTS

Sovereign Nickel-Copper-PGE Project, WA (Earn-In and 100% Tenement)

• Extensive sequence of differentiated mafic-ultramafic intrusive rocks encountered in DevEx's maiden stratigraphic drilling program.
• Broad intervals of low-grade disseminated nickel-copper(Ni-Cu) sulphide mineralisation observed in Hole 2, including several narrow (5-10cm) bands of matrix textured iron-nickel- copper (Fe-Ni-Cu) sulphides.
• A similar narrow zone of disseminated Ni-Cu sulphide mineralisation was also observed 3.5km to the north in Hole 3.
• Both Holes 2 and 3 show similar signs of assimilation of country rock where Ni-Cu sulphides have been observed. Given that assimilation plays an important role in the genesis of magmatic Ni-Cu-PGE deposits globally, these observations, recorded over broad distances, bode well for the prospectivity of the Sovereign mafic-ultramafic intrusion.
• Extensive ground-based electromagnetic (EM) survey commenced at Sovereign to cover the majority of the 12km-long intrusion.

Junee Copper-Gold Project, NSW (100%)

• Diamond drilling commenced in December, targeting the Nangus Road copper-gold(Cu-Au) prospect.
• A combination of ~16,000m of diamond, Reverse Circulation (RC) and air-core (AC) drilling is planned to test a large, 2km long bedrock anomaly with gold and copper grades of up to 3.5g/t Au and 1,410ppm Cu from broad-spaced drilling.
• The drilling will also test several induced polarisation (IP) anomalies identified beneath this extensive bedrock anomaly to evaluate the potential for underlying porphyry copper-gold mineralisation.

Nabarlek Uranium Project, NT (Earn-In and 100%)

• Preparations underway for planned drilling to be undertaken during the 2022 dry season.

Corporate

• DevEx remains well-funded to continue its multi-pronged exploration programs in WA, NSW and the NT with $12.87M in cash at Quarter-end.

1. SOVEREIGN NICKEL-COPPER-PGE PROJECT, WA (Earn-In and 100% Tenement)

At the Sovereign Project, DevEx is exploring a large, 12km long mafic-ultramafic intrusion complex for nickel, copper and platinum group elements (Ni-Cu-PGE) along strike from the globally significant Julimar Ni-Cu-PGE discovery to the south, owned by Chalice Mining Ltd (ASX: CHN), and the Yarawindah Brook Ni-Cu-PGE project to the north owned by Caspin Resources Ltd (ASX: CPN).

The Sovereign mafic-ultramafic intrusion is interpreted to be flat-lying, with geology consistent with the upper portion of the Julimar mafic-ultramafic intrusion as seen on the western edge of Chalice Mining's Gonneville intrusion.

DevEx's maiden diamond drilling program commenced during the Quarter drilling three holes for 1,507.3m. The programme was designed to test the central portion of the Sovereign mafic-ultramafic intrusion, providing information on the geometry and geology of the intrusion.

Two diamond holes (Holes 1 and 2), collared 550m apart, were designed to provide information on the geometry and geology of the intrusion at depth within the central portion of the Sovereign mafic- ultramafic intrusion.

The outcomes of these initial framework holes exceeded the Company's expectations, with drilling encountering a thick intrusive sequence of metamorphosed gabbro, gabbronorite, norite and ultramafic (including pyroxenite and serpentinite) rocks. Within Hole 2 (21SVDD02), several zones of disseminated (low grade) nickel-copper sulphide mineralisation were intersected within the mafic- ultramafic intrusion, including several narrow bands of matrix textured Fe-Ni-Cu sulphides.

Sulphide mineral assemblages in Hole 2 vary from pentlandite-chalcopyrite-pyrite (with relic pyrrhotite) to millerite-chalcopyrite-pyrite. These zones of disseminated Fe-Ni-Cu sulphides are spatially associated with magmatic blue quartz and ilmenite - both strongly suggestive of the role of sediment assimilation in the genesis of magmatic Ni-Cu-PGE deposits such as Nova-Bollinger and Noril'sk.

Assay results from Holes 1 and 2 have confirmed these zones of low-grade disseminated Ni and Cu sulphide mineralisation within the gabbronorite-norite and pyroxenite rocks (see Figure 1), in line with visual observations of the diamond drill core. Both palladium and platinum (PGE) values are low in grade.

A third diamond hole (Hole 3), drilled 3.5km to the north of Hole 2 with co-funding assistance from the WA Exploration Incentive Scheme (EIS), has also intersected a thick sequence of moderately west dipping mafic-ultramafic intrusive rocks to the bottom of the hole (586m). Preliminary observations of the core have identified a narrow (one metre) zone of minor disseminated Fe-Ni-Cu sulphides within a pyroxenite.

Importantly, the mafic-ultramafic rocks hosting the disseminated Fe-Ni-Cu sulphide mineralisation in Holes 2 and 3 show similar signs of assimilation of country rock into the intrusion. The presence of these distinctive features over broadly spaced holes several kilometres apart continues to enhance the prospectivity of the intrusion and reinforces the importance of using ground-based electromagnetic surveys (EM) to assist in vectoring into potential accumulations of massive sulphide mineralisation.

These early-stage diamond holes demonstrate a thick and extensive sequence of differentiated mafic- ultramafic intrusive rocks (see ASX Announcement 10 November 2021) which, together with confirmation of Fe-Ni-Cu sulphide mineralisation, supports the potential for the 12-kilometre intrusion to host significant concentrations of Ni-Cu-PGE mineralisation.

With the delayed harvesting season complete, ground EM has now commenced. Although the Fe-Ni- Cu sulphides seen in Hole 2 are only weakly conductive with no immediate off-hole response, the potential for a massive sulphide accumulation along strike from these disseminated sulphide zones provides a focus for the ground EM.

The ground EM is expected to take several months to complete. Any prospective EM conductors identified as this survey progresses will be fast-tracked to drilling.

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Figure 1: Matrix textured Fe-Ni-Cu sulphides within norite rock at 431.4m down-hole in Hole 2 (left) and disseminated Ni-

Cu-Fe sulphides within norite rocks at 232.3m down-hole in Hole 2 (right).

Figure 2. Sovereign Project: Location of three diamond drill holes 21SVDD01 (Hole 1) - 21SVDD03 (Hole 3), drilled to understand the local geology and framework of the mafic ultramafic intrusion. Local grid provided for context to Figure 3.

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Figure 3. Generalised geological cross-section and interpretation with nickel and copper assays represented as

histograms (Oblique to GDA Grid - temporary local grid provided - see Figure 2) showing the distribution of low-grade disseminated Ni-Cu sulphide mineralisation within and at the base of the mafic-ultramafic intrusion. The shallowing position of these zones provides a focus for ground-based EM in January 2022.

DevEx is currently exploring the western half of the Sovereign mafic-ultramafic Intrusion (E70/3405) under an Earn-In Agreement with Australian Silica Quartz Group Ltd (ASX: ASQ) (see the Company Announcement of 1 June 2020).

The eastern half of the intrusion is located within a granted tenement held by DevEx (E70/5365) - see Figure 4.

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Figure 4. DevEx's 100%-owned tenement together with the Australian Silica Quartz Group Ltd (ASQ) tenement overlying airborne magnetics (RTP) in relation to Chalice Mining Limited's high-gradepalladium-nickel discovery (ASX: CHN) at the Julimar Project. The outline of the Julimar Complex was interpreted by the Company from information in Harrison (1984)3.

2. JUNEE COPPER-GOLD PROJECT, NSW (100%)

At the Company's Junee Copper-Gold Project, diamond drilling commenced in late December at the Nangus Road Copper-Gold prospect, with RC and AC drill rigs currently mobilising to site.

Diamond, RC, and AC drilling programmes are planned to test a large, 2km long, copper-gold bedrock anomaly with gold and copper grades of up to 3.5g/t Au and 1,410ppm Cu respectively (see Figure 5), returned from previous broad-spaced reconnaissance drilling.

Multiple IP anomalies have been identified beneath this extensive bedrock anomaly, supporting the potential for underlying sulphide mineralisation.

Both the shallow, 2km long bedrock copper-gold anomaly and the underlying IP chargeability anomalies represent compelling exploration drill targets being tested in the upcoming campaign.

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