Essential Metals : Quarterly Activities Report

ASX Code: ESS

Corporate Profile

Shares on issue: 200,817,300

Cash: $5.5m (30 Jun 2021)

Debt: Nil

KEY PROJECTS

LITHIUM Pioneer Dome

GOLD Golden Ridge

GOLD Juglah Dome

Joint Ventures (ESS %)

1 x lithium project (51%)

1. x nickel projects (20-25%)*

1. x gold projects (25-30%)*

* Free carried to a decision to mine

Corporate Directory Non-Executive Chairman

Craig McGown

Non-Executive Directors

Paul Payne

Warren Hallam

Managing Director

Timothy Spencer

CFO & Company Secretary

Carl Travaglini

Exploration Manager

Andrew Dunn

Investor Relations

Nicholas Read Read Corporate t: [phone]

e: [e-mail]

ABN: 44 103 423 981

t: [phone]

1. [e-mail]

1. essmetals.com.au

Level 3, 46 Ord St,

West Perth, WA 6005

Australia

PO Box 1787,

West Perth, WA 6872

Australia

21 July 2021

JUNE 2021 QUARTERLY ACTIVITIES REPORT

Activities were focussed on completing drilling programmes at Golden Ridge and Juglah Dome and selecting Dome North lithium targets for a drill programme that commenced in July.

HIGHLIGHTS

• Pioneer Dome Lithium Project: Geophysics reprocessing and assessment, target review and field checking, and drill target selection at Dome North were undertaken during the Quarter.
  o Post-Quarter: The drill programme commenced 19 July(1).
• Golden Ridge Gold Project: First pass shallow air-core drilling at the AC75, Scandia and Maximus prospects was completed in May with assay results received in late June(2). Best results included:
  o Skandia: 8m @ 1.01 g/t Au from 96m including 3m @ 2.45g/t Au (hole GRA0454); and
  o Maximus: 3m @ 3.0 g/t Au from 30m including 1m @ 6.07g/t Au (hole GRA0375); and
  o AC75: 12m @ 0.49 g/t Au from 51m including 3m @ 1.01 g/t Au (hole GRA0415)
• Juglah Dome Gold Project: Assay results from the March air-core drill programme were received. A further 700m of strike was added to the gold mineralised Gards porphyry into an area with thin alluvial cover and it remains open to the south. This is in addition to the 475m long zone of gold mineralisation defined during the December 2020 drill programme. (3)
• Corporate: Closing cash on hand as at 30 June: $5.5 million.

1. Refer ASX announcement "Dome North lithium drilling commences" dated 19 July 2021
2. Refer ASX announcement "New gold zones at Golden Ridge" dated 8 July 2021
3. Refer ASX announcement "Juglah Dome drilling outlines 1km strike at Gards" dated 17 May 2021

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PIONEER DOME LITHIUM PROJECT

The Pioneer Dome Project (ESS: 100%) is located in the core of Western Australia's lithium belt in

the Eastern Goldfields, approximately 130km south of Kalgoorlie and 275km north of the Port of Esperance. A Mineral Resource of 11.2Mt @ 1.21% Li2O has been defined at Dome North in the northern area of the Project.

The southern Yilgarn area is recognised as well endowed with spodumene deposits, including the Bald Hill Mine, the Mt Marion Mine and the Buldania Project. The world-class Earl Grey deposit and the Mt Cattlin Mine are located

further	west	and	south,
respectively.		Pioneer Dome
			11.2Mt @ 1.21% Li2O

Figure 1 - The lithium deposits of the Southern Yilgarn Ta-Sn-Li Province in the context of pegmatite Li-Ta deposits of Western Australia. Modified from Skirrow et al, 2013. Mineral Resources quoted are sourced from Champion, 2018 (Mt Marion, Bald Hill, Mount Cattlin and Greenbushes).

Work undertaken during the Quarter focussed on increasing the understanding of the regional setting surrounding the Pioneer Dome Project. A deeper analysis of litho-geochemical classifications was undertaken to better constrain the geological interpretation to assist in identifying potential fertile intrusions and in planning an air-core drill programme targeting pegmatites in the vicinity of the Dome North Mineral Resource of 11Mt @ 1.21% lithium (Li2O).

Reprocessing of Geophysical Surveys

Southern Geoscience Consultants (SGC) were engaged to reprocess the available government aerial magnetic and radiometric surveys covering from south of the Pioneer Dome Lithium Project to north of the Golden Ridge Gold Project (Figure 2). This was carried out to obtain a set of consistent images to help understand the response from the major Lithium projects within the area, namely Bald Hill, Buldania and Mt. Marion. This is assisting with the interpretation of the geology and structure within and surrounding the Pioneer Dome Project. A review of available geophysical

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techniques to explore for obscured pegmatites was also conducted to ascertain which geophysical techniques could be suitable for use on the Project.

Mt. Marion

Bald Hill

Dome North Lithium Resource

Buldania

Figure 2 - Regional RTP 1VD with Speciality Metals type from Major Resource Projects layer.

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Lithogeochemical Classification

An extensive analysis was undertaken to distinguish lithologies within the Pioneer Dome Project based upon their geochemical signatures. Various immobile (e.g., Th, Cr) elements were used to define the population clusters whilst mobile elements (e.g., K, Rb, Li) were used to help understand fractionation on the defined intrusion populations.

Applied to the pegmatites identified at the Project thus far, this will provide a better understanding of which elements and element ratios are best suited to assess fractionation zonation and fertility in different sized pegmatite bodies.

It was also observed that a significant portion of the gneiss on the eastern side of the Pioneer Dome (Figure 3) lacks pXRF soil coverage.

This area is likely to be at higher metamorphic facies than the previously explored PEG001 to PEG009 pegmatite targets, located further to the east, where lithium minerals are dominated by petalite and lepidolite, indicating lower temperatures and pressures. The higher metamorphic grade of the gneiss may favour the formation of spodumene mineralisation.

Although the gneiss at Dome North as was previously considered a low priority area, it is noted that the Greenbushes pegmatites intrude in structures near the contact of the granofels (quartz- feldspar-biotite gneiss) and amphibolite. Consequently, the northern end of the gneiss at Dome North will now be tested, starting with a pXRF soil sampling programme that commenced towards the end of June.

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Figure 3 - LCT targets (coloured polygons as per legend), lithogeochemical classification (see legend), 100k interpreted geology and lesser explorer gneiss (magenta polygon).

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