Chase Mining : RED FOX AWARDED TWO QLD GOVERNMENT GRANTS TO FUND DRILLING

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ASX RELEASE

18 February 2022

RED FOX AWARDED TWO QLD GOVERNMENT GRANTS TO FUND DRILLING

Chase Mining Corporation Limited (ASX: CML, "Chase Mining" or "Company") provides the following update on Red Fox Resources Pty Limited ("Red Fox"), in which Chase Mining holds 40%.

Red Fox is pleased to announce the award of two Round 6 Collaborative Exploration Initiative (CEI) grants from the Queensland Government. The grants are to fund drilling at the Eveleigh Zinc Project (EPM 26601) in the Georgetown district of northeast Queensland and at the Ernest Henry West Copper-Gold Project (EPM 26010), in the Cloncurry district of northwest Queensland.

Highlights:

• $200,000 towards 6 diamond drill holes at Eveleigh Project
  o Eveleigh drilling to test potential Broken Hill Type (BHT) lead-zinc-silver style mineralisation
• $120,000 towards 3 reverse circulation drill holes at Ernest Henry West Project
  o Ernest Henry West drilling to test E1 copper-gold(IOCG) deposit lookalike target

Attached is a copy of the Red Fox announcement, which can also be found on their website together with further information on the company at http://www.redfoxresources.net.au/

This announcement has been authorised for release to the ASX by the CML Board of Directors.

For further information, please contact:

Leon Pretorius

Chairman and CEO

Mobile: [phone]

Email:[e-mail]

CHASE MINING CORPORATION LIMITED

ABN 12 118 788 846

Level 8, 46 Edward Street, Brisbane QLD 4000 PO Box

15505, City East QLD 4002 0439 310 818 | 0419 702 616 https://www.chasemining.com.au

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EXPLORATION · INNOVATION · DISCOVERY

17 February 2022

Government Grant awarded to fund drilling at the Eveleigh Zn and Ernest Henry West Cu-Au Projects

Red Fox is pleased to announce the award of two Round 6 Collaborative Exploration Initiative (CEI) grants from the Queensland Government. The grants are to fund drilling at the Eveleigh Zinc Project (EPM 26601) in the Georgetown district of northeast Queensland and at the Ernest Henry West Copper-Gold Project (EPM 26010), in the Cloncurry district of northwest Queensland.

Highlights:

• $200,000 towards 6 diamond drill holes at Eveleigh Project
• Eveleigh drilling to test potential BHT lead-zinc-silver style mineralisation
• $120,000 towards 3 reverse circulation drill holes at Ernest Henry West Project
• Ernest Henry West drilling to test E1 copper-gold(IOCG) deposit lookalike target

Figure 1: Location of Eveleigh and Ernest Henry West tenements

Eveleigh Project Drilling

Red Fox is proposing to complete a diamond drilling program consisting of 6 holes for 810m at the Eveleigh Zinc-Lead-Silver Project in the Georgetown district. The purpose of this drilling will be to assess the potential for BHT (Broken Hill Type) mineralisation, which has not been confirmed at this project.

RED FOX RESOURCES PTY LTD		P.O. Box 217 Paddington QLD 4064
Phone: [phone]	Email:[e-mail]	A.C.N. 612 611 408

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EXPLORATION · INNOVATION · DISCOVERY

Figure 2: Eveleigh drill section showing historical drill holes and Red Fox proposed drill hole P2201

The Eveleigh Project contains a lens of zinc mineralisation that was drilled primarily in the 1970s, with historical intersections including 24.4m @ 2.5% Zn. At the time, this mineralisation was interpreted to be a skarn, associated with nearby Palaeozoic granites (note that the drilling was completed prior to the discovery of Cannington).

Figure 3: Soil sampling (by Minad, 1960s) at Eveleigh showing the 101 Mine area and interpreted stacked lenses

RED FOX RESOURCES PTY LTD

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CEI Grants Awarded at Eveleigh & Ernest Henry West

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EXPLORATION · INNOVATION · DISCOVERY

Red Fox has interpreted the mineralisation as being of BHT/Cannington style, based on host lithologies, metal association and metal zoning. Surface geochemistry and historical silver workings indicate that there is potential for multiple stacked lodes with strong zonation in the Pb:Zn:Ag ratios; typical of BHT deposits but not of skarn.

A BHT/Cannington style interpretation significantly increases the prospectivity of the Eveleigh Project with the possibility of multiple undiscovered sulphide lodes and therefore much larger size potential.

Several silver-lead-zinc deposits with BHT characteristics have previously been identified in the Georgetown Inlier, including Chloe-Jackson: 2.7Mt @ 5.1% Zn, 2.0% Pb, 38g/t Ag at Chloe, and 1.9Mt @ 4.5% Zn, 2.1% Pb, 73g/t Ag at Jackson; (Lees, 2014). Spry and Teale (2021) have recently characterised these deposits as BHT style.

Historically, the Eveleigh area was mined for Pb and Ag at the '101 Mine'. The most significant production was from Pollards Shaft, where 35.5 tons averaging 43% lead and 36 oz/ton of silver were mined in 1947 and 1948. Modern exploration at the '101 Mine' has been minimal.

Zinc was first discovered by Minad in the 1960s, when soil sampling and costeaning revealed a large anomaly to the south of the 101 Mine (see Figure 3). Minad completed follow-up drilling, consisting of both RAB and deeper percussion and diamond holes, which intersected stratabound zinc mineralization that was interpreted at the time to be a skarn.

Later follow up drilling has been completed by BP (late 1970s) and CRAE (early 1990s). A total of 68 holes for 4600 metres were drilled (see Figure 4). Drilling is generally shallow: many holes intersected >1% zinc from surface, and the deepest intersection to date is less than 70m vertical depth. Mineralisation dips towards the south and the main zinc lens has a true width of 20-25m (using a 1% cut-off).

Figure 4: Soil sampling (by Minad, 1960s) at Eveleigh showing location of historical drilling

RED FOX RESOURCES PTY LTD

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CEI Grants Awarded at Eveleigh & Ernest Henry West

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EXPLORATION · INNOVATION · DISCOVERY

The $200,000 grant will fund Red Fox to drill six holes:

• Two holes into the main zinc lens, to intersect the western and eastern mineralised zones respectively
• Two holes into the interpreted Cu-Pb-Zn central lode
• Two holes into the interpreted Pb-Ag northern lode

These lodes are shown on Figure 3.

Ernest Henry West Project Drilling

Red Fox is proposing to complete a reverse circulation (RC) drilling program at the Ernest Henry West Copper-Gold Project in the Cloncurry district. Recent geophysical modelling has been conducted over the FC8N and FC9N prospects in the Ernest Henry West tenement (see 16 December 2021 release for full details: RF_2021216_EHW_Geophy_Modelling.pdf (redfoxresources.net.au). The drill program will test the high priority target areas identified in the review.

Figure 5: Ernest Henry West (LHS) comparison to E1 area (RHS) - background aeromagnetics - survey 1377 RTP

Comparisons can be made between the Ernest Henry West area and the E1 deposits as both areas show a similar pattern of complex folded iron rich sediments truncated on the north-western side by major structures. At E1, the mineralisation is concentrated in fold noses and along the limbs, in particular sedimentary units (replacive). Similarly oriented folds and faults, plus a similar stratigraphic package, are interpreted at the FC8N and FC9N prospects.

CEI funding has been awarded to drill 3 holes for 1050m at the FC8N prospect.

These holes target a complex magnetic anomaly which has had one previous drill hole from previous explorers. 3D geophysical modelling by Red Fox shows this hole may not have been drilled deep enough the intersect the anomalous zone.

Drilling at both Projects is expected to be carried out in early to mid-2022, weather dependant. Final drill hole positions will be refined subject to access conditions, including Native Title clearance.

The media statement from the Queensland Government regarding the Round 6 CEI grants can be found at: CEI recipients and reports | Business Queensland

RED FOX RESOURCES PTY LTD

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CEI Grants Awarded at Eveleigh & Ernest Henry West