Greenvale Mining : Quarterly Activities & Cashflow Report

ASX ANNOUNCEMENT

29 October 2020

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T R A N S F O R M A T I O N A L Q U A R T E R S E E S S U C C E S S F U L

R E C A P I T A L I S A T I O N , K E Y B O A R D A P P O I N T M E N T S A N D

R A T I O N A L I S A T I O N O F P R O J E C T P O R T F O L I O

Key steps taken to re-energise Greenvale and provide the necessary financial

resources to support the evaluation and development of its key Australian projects

Highlights

• Successful recapitalisation completed through a $2.8m placement and entitlements issue, with subscriptions received for a further $1.29m, subject to shareholder approval at the Company's AGM to be held on 27 November 2020.
• Upon approval and completion, the Company is budgeted to have cash reserves of around $4m.
• Completion of the acquisition of the 20% outstanding balance of shares in Knox Resources Ltd (Knox), owner of the highly prospective Georgina Basin Iron Oxide Copper Gold (IOCG) Project in the Northern Territory.
• Appointment of well-known Australian mining executives and substantial shareholders Mr Tony Leibowitz and Mr Neil Biddle as Non-Executive Chairman and Executive Director respectively. Messrs Leibowitz and Biddle have a strong track record of value creation in the junior and mid-tier mining and exploration sector.
• Sale and settlement of the disposal of the Company's interest in the Gold Basin
  Project in Arizona USA, which resulted in the Company booking an expected profit on disposal of this asset of $992,000 and receiving $1m in cash plus 2.5m shares in Gold Basin Resources (CSE: GXX), a company listed on the Canadian Securities Exchange.

Greenvale Executive Director, Neil Biddle, said: "As a result of the milestones achieved in the September Quarter, the Company has emerged in a strong financial position and with a re-energisedboard and senior management team. We have two very promising assets in our Georgina Basin IOCG Project, where exploration is underway, and the Alpha Torbanite Project, where we look forward to outlining an exciting business case in the weeks ahead. The next few months promises to be an active and rewarding time for our shareholders."

R E G I S T E R E D O F F I C E :

130 Stirling Hwy, NORTH FREMANTLE, WA 6159 | Locked Bag 4, North Fremantle, WA Australia, 6159 t:[phone] | e: [e-mail] | www.greenvalemining.com

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Corporate Activities

Recapitalisation

In late June 2020, the Company announced a pro-rata entitlements issue comprising one new fully-paid share in the Company for one existing share held by eligible shareholders on the record date of 7 July 2020. The entitlements issue, which was fully underwritten by Sydney-based Blue Ocean Equities, was completed on 28 July 2020, with the offer fully allocated resulting in the issue of 112,831,902 shares at 1.9c per share, which raised some $2.144 million before costs.

In August 2020, the Company announced that it had raised a further $661,000 through the issue of 34.8 million shares at an issue price of 1.9c per share to sophisticated and professional investors. The Company also announced that subscriptions for a further 67.9m shares at 1.9c per share had been received to raise approximately $1.29 million (including 23.7 million shares to associates of directors Neil Biddle and Tony Leibowitz). These additional shares will be issued subject to approval by shareholders at the Company's Annual General Meeting, to be held on 27 November 2020.

Subject to approval being granted at the Annual General Meeting, the Company is budgeted to have cash on hand of some $4 million by 30 November 2020.

Sale of Gold Basin Project

On 1 September 2020, the Company announced an unconditional agreement for the sale of its 25% interest in the Gold Basin Project in Arizona, USA and this transaction was closed on 4 September 2020.

The terms of sale included the payment to the company of cash of $A1 million and the issue of 2.5 million fully-paid shares in Fiorentina Minerals (now renamed Gold Basin Resources, CSE: GXX), a company listed on the Canadian Securities Exchange. These shares are subject to an escrow period of four months.

As at the closing date, the market price for shares in Fiorentina Minerals Limited was C$0.40 and after applying a 40% discount for the lack of liquidity and marketability of the shares, this resulted in a fair value consideration for this component at settlement, based on the prevailing exchange rate, of $A630,000. The expected profit on this disposal to be reported in the half-year report is expected to be $A992,000.

Finalisation of Full Acquisition of Knox Resources Limited

In late June 2020, the Company announced the acquisition of an initial 80% of the issued shares in Knox, with conditional rights to increase to full ownership. On completion of the successful entitlements issue, the Company was able to exercise its option to acquire the remaining 20% of the issued shares in Knox via the issue of 2,368,421 fully-paid ordinary shares of the Company.

Knox was the successful applicant for a highly prospective portfolio of exploration licences covering an area of 4,475km2 located in the Northern Territory. The acquisition has given the Company a low-cost entry into a potentially significant long- term district-scale IOCG exploration opportunity.

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Board Changes

On 7 September 2020, Mr Tony Leibowitz and Mr Neil Biddle joined the board as Non- Executive Chairman and Executive Director, respectively. Founding shareholders of Knox, Mr Leibowitz and Mr Biddle both have extensive expertise and strong track record of value creation in the junior and mid-tier Australian mining sector.

Both were co-founders of the successful mid-tier lithium producer Pilbara Minerals Limited (ASX: PLS) and are currently directors of emerging Kalgoorlie gold producer Bardoc Gold Limited (ASX: BDC) and Pilbara-based gold explorer Trek Metals Limited (ASX: TKM).

Former Chairman Leo Khouri has remained on the board as a Non-Executive Director with Mr Vince Fayad remaining as a Non-Executive Director until the forthcoming Annual General Meeting, where he will not be seeking re-election. As part of the board re-structure, Mr Stephen Gemmell and Mr Julian Gosse resigned as directors.

Change of Company Name

Following approval by shareholders at a General Meeting on 10 August 2020, the Company changed its name from Greenvale Energy Limited to Greenvale Mining Limited, reflecting its broader asset base in the extractive industries.

Project Activities

During the Quarter, the Company's primary focus was on its corporate restructure and recapitalisation. With respect to its two projects, activities revolved around evaluation and planning for the initiation of work programs in the December Quarter, as travel and other COVID-19 related business restrictions are expected to be eased.

Alpha Project, Queensland

Background

The Alpha Torbanite project is located approximately 50km south of the Central Queensland town of Alpha. The Alpha Torbanite deposit consists of two seams - an upper seam of cannel coal with an average thickness of 1.12m and a lower seam of cannel coal containing a lens of torbanite with a thickness of up to 1.9m.

The project has been subject to extensive exploration and laboratory testing since its initial discovery in 1939, over 80 years ago. During 2019 SRK Consulting (Australia) Pty Ltd (SRK) was engaged to reassess the project strategy. This resulted in a report by SRK setting out a potential new development strategy, which is based on the production of a diversified suite of value-added products.

SRK noted that, in contrast with typical oil shale deposits, the Alpha Torbanite is exceptionally high-grade, containing up to 650 litres of hydrocarbons per tonne of torbanite, and is capable of producing high-value bitumen, light crude oil and activated carbon. Additionally, the Torbanite has the ability to deliver high-qualityvalue-added products through appropriate investment in processing infrastructure.

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SRK has recommended a staged work program which will initially focus on the extraction and analysis of torbanite and cannel coal bulk samples from trenches or costeans from one location in order to fully characterise the deposit, as well as undertaking a comprehensive retort testing program across a range of conditions to assess optimal outputs.

Activities During the Quarter

During the quarter, the Company has commenced further analysis of the SRK report and its recommendations, together with research on the opportunities and extent and dynamics of key markets for potential products as well as preparations for the commencement of the field work program.

Furthermore, the Company has also lodged a permit application (EPM 27718) for an extension of its existing Alpha permit area (MDL 330) as set out in the diagram below. The new Alpha Extended permit area will go a long way in ensuring that the Company can appropriately secure the relatively rare and unique torbanite deposit and provide capacity for potential future exploration growth.

Figure 1: Existing MDL and new EPMA areas

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