Empire Resources : Annual Report to shareholders

EMPIRE RESOURCES LIMITED

ABN 32 092 471 513

Annual Report

30 June 2023

EMPIRE RESOURCES LIMITED

Corporate Directory

Directors

Company Secretary

Registered Office

Auditor

• Michael Ruane Sean Richardson Jeremy Atkinson
• Simon Storm
• Registered Office and Principal Place of Business 159 Stirling Highway
  Nedlands WA 6009
  Telephone: [phone]
  Email [e-mail] Website www.resourcesempire.com.au
• HLB Mann Judd (WA Partnership) Level 4
  130 Stirling Street Perth
  WA 6000

Share Registry	:	Automic Group
		Level 5
		191 St Georges Terrace
		Perth
		WA 6000
		Telephone: [phone]
Australian Securities Exchange	Home Branch: Perth

Code: ERL

ABN

:

32 092 471 513

1

Empire Resources Limited

Review of Operations

Figure 1: Project Location Map

Empire Resources Limited ('Empire') (ASX:ERL) is a gold and copper focussed exploration and development company. Empire owns four highly prospective projects. The Yuinmery Copper-Gold Project 470km northeast of Perth in the Youanmi Greenstone Belt, the Barloweerie multi-element precious and base metal project, the Nanadie Copper-Gold Project southeast of Meekatharra in the Murchison Region and the Penny's Gold Project 45km northeast of Kalgoorlie in the prolific Eastern Goldfields Region of Western Australia. Empire's projects have numerous exploration targets with excellent potential.

Empire has an experienced team of exploration, development and financial professionals who are committed to developing a sustainable and profitable mineral business. Empire seeks to extract value from direct exploration in its existing projects as well as identifying value accretive investment opportunities that complement the Company's development objectives.

2

Empire Resources Limited

Review of Operations

Penny's Gold Project (WA)

The Penny's Gold Project is located 45km east of Kalgoorlie, Western Australia within the north-northwest trending Gindalbie greenstone belt consisting of a sequence of mafic-ultramafic volcanic rocks with intercalated horizons of felsic volcanic rocks and metasediments. The sequence has been subjected to multiple deformation events resulting in significant folding, pronounced foliation, and a northerly plunging mineral lineation. To the east of the project is the GMQ shear where subsidiary structures are common and locally appear to influence spatial distribution of gold mineralisation, particularly where structures intersect or bifurcate. Outcrop within the project area is poor with the regolith dominated by a deeply dissected laterite weathering profile and the subsequently derived colluvial products.

The Penny's Gold Project is proximal and adjacent to the existing Penny's Find Gold Mine which hosts a high-grade Resource of 270kt @ 5g/t Au for 43,000oz.

Gold mineralisation at Penny's Gold project occurs within a lower order northwest trending shear that intersects a northerly trending structure. This structure is interpreted to continue to the north through the project area. To the east of this structure and within the project area lie multiple northerly and northwest trending structures interpreted from reprocessed aeromagnetic data.

8,671m of aircore (AC) drilling were completed at the Penny's Gold Project during the year. Notable results include:

• 8m @ 2.89g/t Au from 64m in PAC22-14, including 4m @ 5.33g/t Au from 64m
• 7m @ 1.66g/t Au from 48m (EOH) in PAC22-29, including 2m @ 2.42g/t Au from 52m
• 4m @ 2.41g/t Au from 56m in PAC22-50
• 6m @ 0.92g/t Au from 48m in PAC22-63, including 4m @ 1.21g/t Au from 48m
• 12m @ 0.76g/t Au from 8m in PAC22-06, including 4m @ 1.22g/t Au from 12m
• 20m @ 0.62g/t Au from 72m in PAC23-05, including 4m @ 0.97g/t Au from 84m

The AC drilling during the year has demonstrated the prospectivity of the project and potential for additional economic gold mineralisation discoveries analogous to the proximal high-grade Penny's Find Gold Mine.

Yuinmery Project (Cu-Au)

The Yuinmery Copper-Gold project is located in the Mid-West region of Western Australia and consists of six granted tenements, two mining and four exploration, for a total area of 106.7 km2. The project has a current JORC 2012 Resource of 2.52Mt @ 1.31% Cu, 0.49g/t Au and 1.76g/t Ag using a 0.5% Cu cut-off.

The Yuinmery project area covers the eastern portion of the Archaean Youanmi greenstone belt with rock types consisting largely of mafic and ultramafic volcanics with altered chloritic felsic and intermediate volcanic units. The volcanic units contain a number of intercalated strongly sulphidic cherty sediments, which are host to Volcanic Massive Sulphide (VMS) copper-gold mineralisation. The project area lies between the Youanmi Shear zone (western boundary) and the Yuinmery Shear zone (eastern boundary) with the southern area covering the southern closure of a northerly plunging syncline.

Empire's improved understanding of the geology, alteration characteristics and structure at Yuinmery, paired with discovery of new Cu-Au,Cu-Ni and PGM occurrences have now expanded the Company's opportunities to target previously untested areas. Of significance is the evolution of Empire's conceptual models of VMS deposits, layered PGM occurrences and orogenic gold mineralisation used to target exploration.

Empire completed a 924m reverse circulation (RC) drilling program at Yuinmery during the year. The drilling targeted extensions to the recently discovered YT01 prospect as well as delineate shallow high-gradecopper-gold extensions to A-Zone.

Strong copper and gold mineralisation was encountered in A-Zone drilling, including:

• 10m @ 0.93% Cu from 72m in YRC23-05, including 1m @ 2.54% Cu from 73m
• 3m @ 1.93g/t Au from 71m in YRC23-05, including 1m @ 3.41g/t Au from 72m

Broad zones of copper mineralisation was encountered in YT01 drilling included:

• 20m @ 0.28% Cu from 76m in YRC23-01, and 1m @ 0.62% Cu from 119m
• 12m @ 0.48% Cu from 140m in YRC23-02, and 10m @ 0.46% Cu from 167, and 15m @ 0.37% Cu from 180m
• 9m @ 0.55% Cu from 182m in YRC23-04, including 1m @ 0.95% Cu from 185m and 3m @ 0.30% Cu from 201m (EOH)

A-Zone is developing into an exciting deposit where we see continued near surface high grade copper and gold mineralisation, while the YT01 prospect is developing into a large tonnage bulk copper system. The Yuinmery Project remains an important part of Empire's portfolio, offering an opportunity for potential discovery of economic copper- gold mineralisation.

3

Empire Resources Limited

Review of Operations

Barloweerie Project (Zn-Pb-Ag-Au-Cu)

The Company has one granted exploration licence and two exploration tenements in application. The total package is 533km2 and is located approximately 155km west of Cue, WA.

The exploration licences cover part of the Barloweerie greenstone belt where historical exploration discovered highly anomalous zinc, lead, silver, gold and copper mineralisation in a volcanogenic massive sulphide (VMS) setting. The Barloweerie Project has had limited modern exploration since 1987 when strong mineralisation was encountered in RC and diamond drilling, including:

• 5m @ 4.8% Zn from 38m (SDH34)
• 1m @ 3.9% Pb from 15m (SDH19)
• 5m @ 100.0g/t Ag from 28m (SDH31)
• 2m @ 0.58% Cu from 19m (SDP8)

Nanadie Project (Cu-Au)

The Company has three granted exploration licence totalling 127.3km2 located approximately 65km east of Meekatharra, WA.

The Nanadie Copper-Gold Project partially overlies the Barrambie Greenstone Belt which consists of a 1-4km wide sequence of strongly sheared chlorite-quartz-muscovite schists, amphibolites, BIF's and ultramafics. Much of the tenement is covered by aeolian sand, sheetwash and calcrete.

Empire's Nanadie Copper-Gold Project lies immediately along strike from Cyprium Metals Limited (ASX:CYM) Nanadie Well Copper Project. Cyprium's Nanadie Well Copper Project has a JORC 2004 Inferred Resource of 40.4Mt @ 0.40% Cu & 0.10g/t Au containing 162,000 tonnes of copper and 130,000 oz of gold (refer to ASX:CYM "Nanadie Well Mineral Resource Estimate" 19 July 2022).

The sequence hosting the Nanadie Well deposit is interpreted to continue north into Empire's tenure. A regional shear, informally known as the Nanadie Well Regional Shear traverses the project from north to south. Several geochemical and geophysical anomalies have been identified along the Nanadie Well Regional Shear that warrant further investigation.

INVESTMENTS

Penny's Find Royalty

The Company previously part owned and mined the Penny's Find Gold Mine. The mine was subsequently sold and as part of the settlement, Empire is entitled to a 5% ad valorem royalty payment on gold and silver produced from the Penny's Find Gold Mine up to the first 50,000 oz of gold recovered, and 2.5% on gold and silver produced above that amount.

Empire is also entitled to milestone payment obligations:

• Mining commencement payment of $200,000
• First gold pour payment of $200,000

Owned by Horizon Minerals Ltd (ASX:HRZ), the Penny's Find Gold Mine is located approximately 45km northeast of Kalgoorlie in the Eastern Goldfields of Western Australia.

In June 2023 Horizon Minerals announced that it had secured funding and the key approvals required to commence underground development of its Cannon Gold Project 33km south of Penny's Find Gold Mine (refer to ASX:HRZ "Funding and Key Approvals Secured for Cannon Underground Gold Project" 14 June 2023). Horizon states that the development of the Penny's Find Gold Mine would follow Cannon.

Empire is pleased with the progress Horizon Minerals has made so far and looks forward to early development of the Penny's Find Gold Mine.

Gnaweeda Royalty

Empire retains a 1% gross revenue royalty on tenement E51/1995 owned by Great Boulder Resources (ASX:GBR). Empire notes that Great Boulder has been particularly active in the region at their Side Well Gold Project which is proximal to E51/1995.

Empire looks forward to seeing progress at Gnaweeda under the stewardship of Great Boulder's accomplished exploration team.

4