Commenting on drilling results of the Mt Edon tenement, Chief Operating Officer Simon Phillips said:

'EMC is pleased to announce its decision to exercise its right to farm into the Mt Edon LCT Pegmatite Project, subject to Shareholder approval. The company is pleased to have the opportunity to take the next step towards 51% ownership in a project with such an extensive array of pegmatite outcrops over six kilometres. The recent reconnaissance drill program gave EMC the data it needed to commit to the next stage of exploration at this highly fertile pegmatite field as part of the Company's commitment to its Battery Minerals project development strategy'

Everest Metals Corporation Limited (ASX: EMC) ('EMC' or 'the Company')is pleased to announce results of an initial drilling program at the Mt Edon mining lease (M59/714) near Paynes Find, Western Australia.

BACKGROUND

Mt Edon mining lease (M59/704) is located 5km southwest of Paynes Find and covers the southern portion of the Paynes Find greenstone belt, southern Murchison and hosts an extensive swarm of pegmatites. The geology of the area consists of metamorphosed sediments present with regional greenschist and amphibolite facies metamorphism which foliated, deformed, and recrystallised granitoids intruding Archean ultramafic and felsic to mafic extrusive. Late pegmatite dykes/ sills intrude the mafic and felsic volcanics in a contrasting position to the regional orientation of the northeast-southwest.

The Company has determined to exercise its exclusive option to farm-in to acquire the right to earn a 100% interest in the Mt Edon Project (refer to ASX announcement dated 13 October 2022), 5km from Paynes Find in Western Australia - subject to due diligence and shareholder approval[1]. EMC has funded a due diligence work program including a targeted 500m reconnaissance RC drilling program to determine whether to proceed with the farm-in.

REVERSE CIRCULATION PROGRAMME

Reverse Circulation (RC) holes for a total of 507m of drilling was completed in late October 2022. The drilling was conducted from 8 drilling fence lines and included 24 shallow holes with an average depth of 21m (Figure 3). Sampling collected during the recent drilling were one-metre core splits from RC drilling and 129 samples were sent to the ALS laboratory in Perth. Samples were assayed for a standard multi-element LCT pegmatite suite including rare earth elements using the process of a 4-acid digest followed by Lithium Borate Fusion ICP-MS for detection.

Assays returned encouraging results with elevated Rubidium (Rb) up to 3,670 ppm, Caesium (Cs) up to 354 ppm, Tantalum (Ta) up to 219 ppm, and Lithium (Li) up to 1220 ppm. The maiden drilling program determined the subsurface lithium-bearing potential of the Project area below the weathered zone and indicated that pegmatites have moderate to strong fractionation characteristics.

Interpretation of results from the recent drilling program has confirmed the pegmatite samples are anomalous in terms of rare metals by a median factor of around 14 times higher than background host rock and suggest that there are several prospective targets for lithium-bearing pegmatites within the Project area. Pegmatites appear to be a folded sill dipping into variable directions and angles and connected at depth.

Drill collar information is outlined in Appendix 1. A summary of important assessment and reporting criteria used for this Exploration Results announcement is provided in Appendix 2 - JORC Table 1 in accordance with the checklist in the Australian Code for the Reporting of Exploration Results, Mineral Resources, and Ore Reserves (The JORC Code, 2012 Edition). Criteria in each section apply to all preceding and succeeding sections.

EMC has planned a supplementary geological and structural mapping of the mining lease area. The Company is also reviewing geophysical methods to support developing a better understanding of the subsurface potential of the Project area to optimise the second phase of the drilling program. The Company is also planning a Deep Ground Penetration Radar geophysical survey (DGPR) to determine new potential subsurface pegmatite pods with the main pegmatite structures.

On the basis of the Due Diligence drill results and prospectivity of the tenement and the consideration of the potential commercial risks in completing additional geological and structural mapping of the project before the expiry of the 120 day Due Diligence period, the Company will now move to exercise its farm-in rights to earn 51% of the Mt Edon Tenement package[2], which is subject to shareholder approval.

Consideration and Key terms for the farm-in acquisition of 51% in the Mt Edon Project: The issue of 5 million ordinary fully paid shares in EMC; Reimbursement of A$25,000 for historical expenditure costs; EMC granting to the vendor a 1% gross royalty on the value of all minerals produced and sold from the tenement; and Upon EMC acquiring a 51% legal and beneficial interest in the ML59/714, the execution of a formal AMPLA model Joint Venture Agreement.

Contact:

PRINCIPAL OFFICE

Suite 4.02, Level 4, 256

Adelaide Terrace Perth WA 6000

Australia

T: +61 08 9468 9855

E: enquiries@everestmetals.au

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