Evolution Energy Minerals : Geophysics highlights potential for multi-decade mine life

ASX:EV1 | 8 March 2022

For personal use only

ASX ANNOUNCEMENT

Geophysics results highlight potential for multi-decade mine life and production expansions

HIGHLIGHTS

• Recently completed electromagnetic (EM) surveys confirm the scope for a material expansion in the Chilalo mineral resource.
• Over 33km of high and ultra-high conductance targets have been identified in addition to the existing mineral resource. Given graphite's high conductivity level, these conductors are expected to represent near-surface,high-grade and thick graphite deposits.
• Discovering additional near surface high-grade graphite is expected to enhance the economics of the Chilalo Project by:

1. Reducing mining costs with shallower pits, lowering the strip ratio;

1. Extension of mine life; and

• 1. Providing scope for production expansions in line with the growing demand for graphite in batteries.
• A trenching program is currently under way to determine the grade and thickness from surface with results expected in Q2 2022.
• Drilling expected to commence in May 2022.

for international markets."

Evolution Energy Minerals Limited ("Evolution" or the "Company") is pleased to announce that a recently completed fixed loop electromagnetics ("FLEM") program at its Chilalo Graphite Project ("Chilalo" or the "Project") has identified over 33km of high or ultra-high-conductancegraphite targets (Figure 1) that are in addition to the existing Chilalo mineral resource,1 which itself is situated on a 2km high-conductanceresponse.

Evolution Managing Director, Phil Hoskins, commented: "We are extremely encouraged by these results, demonstrating the scope for significant growth in the Chilalo mineral resource. We already have an 18-yearmine life based on Ore Reserves and resource growth is therefore not a pre-requisitefor the financing or development of Chilalo. It is our intention however to demonstrate that Chilalo has globally significant scale with the potential for significant resources and reserve growth and the ability to ramp-upproduction to meet the rapid growth in demand for lithium-ionbatteries, in which graphite makes up over 50% of the contained raw materials. Delineation of near-surface, high-gradegraphite is expected to defer waste stripping, reduce mining costs, extend mine life and ultimately enhances Chilalo's project economics.

"Previous work at Chilalo has found that high-conductance EM targets correlate with high grades and mineralisation thickness. We are confident that continuing to target high conductance EM targets will continue to deliver exploration success."

1 20.1Mt at 9.9% TGC for 1.99Mt of contained graphite - see Table 1.

EVOLUTION ENERGY MINERALS LTD

Level 1, Emerald House, 1202 Hay Street, West Perth WA 6005 | T: [phone] | ASX:EV1 | ev1minerals.com.au

ASX:EV1

EVOLUTION ENERGY MINERALS LTD

Figure 1 below shows the various strengths of FLEM conductors within the Company's tenement holdings. Noting that the Chilalo resources and reserves are situated on a 2km high-conductance target, these most recent FLEM results have identified 8km of very high-conductance (stronger than Chilalo), 25km of high- conductance and 22km of low-conductance. There remains 31km of EM targets identified by airborne EM that are yet to be followed up by ground-based FLEM.

For personal use only

Figure 1: FLEM outlines significant resource growth potential at Chilalo

The Chilalo definitive feasibility study ("DFS") identified a number of opportunities that could improve the Project's economics, one of which was exploration upside.2 The discovery of any additional near-surface high- grade deposits have the potential to contribute to a reduction in mining operating costs compared to those in the DFS, by deferring the need to mine the existing deposit to the depth assumed in the DFS.

The Company is currently carrying out a trenching program across priority areas to determine surface projections, grade and thickness of the graphite deposits. The results of the trenching work are expected to be available in Q2 2022 and will be used to identify targets for a drilling program that is expected to commence in May 2022.

Notwithstanding the upside opportunity associated with exploration success, Chilalo is a robust project with an 18-year mine life and resource growth is not a requirement in order to obtain finance for construction. Evolution is targeting a final investment decision in the second half of 2022.

This announcement has been approved for release by the Evolution board of directors.

2 The results of the Chilalo DFS (and the production target on which such results are based) was reported by Evolution in the prospectus dated 28 September 2021, as supplemented by a supplementary prospectus dated 6 October 2021 (collectively, the Prospectus). Evolution confirms that it is not aware of any new information or data that materially affects the results of the Chilalo DFS included in the Prospectus and that all material assumptions underpinning the results of the Chilalo DFS (and the production target on which such forecast financial information is based) continue to apply and have not materially changed.

evolutionenergyminerals.com.au

PAGE 2 OF 6

TORRENSMINING.COM

ASX:EV1

EVOLUTION ENERGY MINERALS LTD

For personal use only

For further information please contact:

Phil Hoskins	Michael Bourguignon
Managing Director	Executive Director
[e-mail]	[e-mail]
T: [phone]	T: [phone]

Competent Person's Statement

The information in this announcement that relates to exploration results at Chilalo is based on information compiled by Company geologists and reviewed by Mr John Sinnott, a senior geophysicist with Resource Potentials Pty Ltd. Mr Sinnott is a member of the Australian Institute of Geoscientists and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (2012 JORC Code). Mr. Sinnott consents to the inclusion in the report of the matters based upon the information in the form and context in which it appears.

evolutionenergyminerals.com.au

PAGE 3 OF 6

TORRENSMINING.COM

ASX:EV1

EVOLUTION ENERGY MINERALS LTD

ABOUT EVOLUTION

For personal use only

Evolution is committed to supplying sustainable graphite solutions for the global green economy and in doing so, create the first net zero carbon graphite mine. A DFS confirmed the opportunity to produce high-quality flake graphite at Chilalo and the Company intends to apply Chilalo flake graphite to downstream processing to produce battery anode material, expandable graphite, micronised graphite and graphite foil.

The Chilalo Project hosts a high-grade mineral resource of 20.1Mt at 9.9% total graphitic carbon (TGC) for 1,991 Kt of contained graphite, as shown in the table below.

Table 1. Chilalo Mineral Resource Estimate3

	Domain		JORC Code Classification	Zone	Million Tonnes	TGC (%)	Contained Graphite
		(Mt)	(Kt)
			Indicated	Main	9.2	10.6	982
			North-East	1.0	9.5	100
	High Grade		All	10.3	10.5	1,082
		Main	7.4	9.5	704
			Inferred	North-East	2.3	8.8	205
				All	9.8	9.3	908
			Indicated + Inferred	All	20.1	9.9	1,991
				Main	37.8	3.4	1,282
	Low Grade	Inferred	North-East	9.5	4.1	394
				All	47.3	3.5	1,677
	High Grade + Low	Indicated + Inferred	All	67.3	5.4	3,667
	Grade

The Mineral Resource was estimated within constraining wireframe solids using a core high-grade domain defined above a nominal 5% TGC cut-off within a surrounding low-grade zone defined above a nominal 2% TGC cut-off. The mineral resource is quoted from all classified blocks above a lower cut-off of 2% TGC within these wireframe solids. Differences may occur due to rounding.

3 The Chilalo Mineral Resource estimate was reported by Evolution in the prospectus dated 28 September 2021, as supplemented by a supplementary prospectus dated 6 October 2021 (collectively, the Prospectus). Evolution confirms that it is not aware of any new information or data that materially affects the Chilalo Mineral Resource estimate included in the Prospectus and that all material assumptions and technical parameters underpinning the Chilalo Mineral Resource estimate in the Prospectus continue to apply and have not materially changed.

evolutionenergyminerals.com.au

PAGE 4 OF 6

TORRENSMINING.COM

ASX:EV1	EVOLUTION ENERGY MINERALS LTD
Appendix A	JORC Table 1

Section 1: Sampling Techniques and Data

For personal use only

	Criteria			Commentary
	Sampling techniques		Ground-basedfixed-loop electromagnetic (FLEM) survey stations were spaced 50m apart along 100m
				spaced survey lines, with 50m spaced survey lines over the resource. Over 12,000 FLEM survey stations
				acquired at the project since 2015.
				Resulting EM decay data were QC'd, processed, gridded, imaged and conductor plate modelled by
				Resource Potentials. Resulting conductor plates were characterised by modelled electrical conductance
				to assist with drill targeting, and projected up dip to surface to assist with trench planning.
	Drilling techniques		Not applicable, the results reported in this announcement refer to geophysical surveys.
	Drill sample recovery		Not applicable, the results reported in this announcement refer to geophysical surveys.
	Logging		Not applicable, the results reported in this announcement refer to geophysical surveys.
	Subsampling		Not applicable, the results reported in this announcement refer to geophysical surveys.
	techniques and sample
	preparation
	Quality of assay data		FLEM surveying was carried out using a 3-componentB-Field sensor, SMARTem24 receiver, and a Zonge
	and laboratory tests		ZT30 transmitter attached to large (1,000m x 700m) wire loops. A transmitter frequency of 0.33Hz was
				used for the majority of surveying, with some areas surveyed using 0.5Hz.
	Verification of sampling		Not applicable, the results reported in this announcement refer to geophysical surveys.
	and assaying
	Location of data points		Data locations were measured by handheld GPS units and internal GPS units in the SMARTem receiver.
				All data use datum WGS84 and projection UTM zone 37S.
	Data spacing and		Data acquired at 50m spaced survey stations along 100m spaced survey lines, with some areas infilled
	distribution		to 50m spaced survey lines.
	Orientation of data in		Transmitter loops were positioned up dip of the survey areas to provide optimal EM coupling with
	relation to geological		target conductor orientations, and survey lines were oriented perpendicular to the geological strike
	structure		direction as interpreted from airborne magnetic and electromagnetic survey data.
	Sample security		Not applicable, the results reported in this announcement refer to geophysical surveys
	Audits or reviews		No audits have been conducted at this stage.

evolutionenergyminerals.com.au

PAGE 5 OF 6

TORRENSMINING.COM