Mali Lithium : Quarterly Activities Report

QUARTERLY ACTIVITIES REPORT

For period ending 30 September 2020

ABOUT MALI LITHIUM

Mali Lithium has agreed to acquire, subject to conditions, an 80% interest in the Morila Gold Mine. The State of Mali owns 20%. Morila is an operating gold mine and has a 4.5 million tonnes per annum processing plant and all infrastructure required for a remote mine site (see MLL's ASX Release dated 31 August 2020 for full details). The hard rock open pit Inferred Mineral Resource at Morila is 1.3 million ounces of gold and there is standout potential to materially increase those resources.

A Definitive Feasibility Study was completed for the Goulamina Lithium Project in October 2020 and reported a Measured, Indicated

and Inferred Resource Estimate of 109 million tonnes at 1.45% Li2O with 1.57 million tonnes of contained Li2O making Goulamina one of the world's largest ready to develop lithium deposits. An Ore Reserve of 52 million tonnes at 1.51% Li2O delivers a 23.5 year mine life, 436,000 tonnes per annum of 6% Li2O concentrate at a cash cost of US$281/tonne. This makes Goulamina one of the lowest cost open pit lithium opportunities worldwide.

Key metrics as at 29/10/2020:

Shares on issue (MLL):	781,906,126
Listed options on issue (MLLOA):	29,066,018
Unlisted Options on issue:	2,000,000
Cash:	A$67.9M
Share price:	$0.155
Listed option price:	$0.086
Market capitalisation:	A$123.7M

ACN: 113 931 105

Unit 18, Spectrum Building 100 - 104 Railway Road

Subiaco WA 6008

T: [phone] E:[e-mail]

HIGHLIGHTS - A RENEWED FOCUS ON GOLD

Morila Gold Mine Acquisition

• Agreement signed on 31 August 2020 to acquire an 80% interest in the Morila Gold Mine from Barrick and AngloGold for an estimated US$22-27 million transforming the Company into a gold producer
• Morila is a world class asset that has produced in excess of 7.4 million ounces of gold over 20 years from a 4.5Mtpa plant
• Inferred Mineral Resource adjacent and beneath the Morila pit estimated at 32 million tonnes at 1.26 g/t gold for 1.3 million ounces contained gold within a conceptual US$1250 per ounce gold pit shell and above a 0.5g/t gold cut-off
• New Mineral Resource Estimate update and mine plan are being prepared using prevailing gold prices and existing data for Morila, its satellite pits and MLL's Koting deposit on the adjacent Massigui Project
• The parties are targeting completion by the end of October 2020 or as soon as possible thereafter.

Goulamina Lithium Project DFS Completed

• Results of the Goulamina Definitive Feasibility Study confirm Goulamina confirmed as one of the world's best hard rock lithium assets for scale and cost of production
• The project delivers outstanding returns with a pre-tax NPV of A$1.7 billion using conservative pricing metrics
• A key advantage is the quality of the 6% Li2O spodumene concentrate (SC6) product, being high in grade and low in impurities

Corporate

• $73.8 million was raised consisting of a Two Tranche Placement to Sophisticated Investors to raise approximately $64 million and a Share Purchase Plan
• A heavily oversubscribed Share Purchase Plan raised $9.8 million.
• Cash available of $6 million at September 30. The Company received an R&D grant of $495k from the Australian Tax Office, and various stimulus payments from both State and Federal governments
• Share price increased from 10.5 cents on June 30 to 15.5 cents as of September 30

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ASX Announcement - 30 October 2020

OVERVIEW

The quarter has seen the Company transformed. The Morila Gold mine was purchased, subject to satisfaction of certain conditions and the transaction is expected to close shortly. We will become a gold producer and are looking forward to growing production and mine life at Morila. Milestones for Morila in the coming quarter are:

• Successful completion of the transaction and smooth handover from Barrick
• Continuation of Morila tailings production
• Critical evaluation of remaining tailings production and drilling to test for potential expansion of the tailings Resource
• Resource estimation for Morila satellite pits and infill and extension RC Drilling
• Mine design and schedule to incorporate satellite pits into Morila production schedule
• New global resource estimate for the main Morila pit, mine design and schedule
• Critical evaluation of infrastructure; power, crushing, grinding, tailings storage etc and development of refurbishment plan as required
• Building the Morila and Firefinch team

The Company also delivered on the Goulamina Lithium Project, a world class Mineral resource, ore Reserve and production profile demonstrate that this is perhaps the world's premier undeveloped lithium deposit. The Company will commence a strategic review to determine the best path to realise shareholder value from the asset.

A shareholder meeting held on the 23rd of October approved various resolutions relating to raising A$74 million to fund the acquisition and growth of Morila and Goulamina. Shareholders also resolved to change the name of the Company to FireFinch Limited (ASX:FFX), the name will take effect upon ASIC approval.

Firefinch will be a growing and active West African gold producer, targeting becoming a mid-tier gold producer within 24 months and delivering exploration excitement for Morila and its strategic regional tenure and providing exposure to renewable energy metals though the world class Goulamina Lithium Project.

The Company confirms that Morila continues to produce gold from reclamation and processing of tailings. Detail of the Company's Production Target relating to production from 1st November 2020 onwards was contained in the announcement on 7 September 2020 and the Company confirms that all material assumptions contained in that announcement continue to apply. The Company also confirms that all material assumptions relating to the Goulamina Project as disclosed in the ASX announcement dated 20 October 2020 continue to apply.

MORILA GOLD MINE

On 31 August 2020, the Company entered an agreement to acquire, subject to the fulfilment of certain conditions, an 80% interest in the Morila Gold Mine (Morila) in south-west Mali from Barrick Gold Corporation (Barrick) and AngloGold Ashanti (AngloGold) (Transaction) (refer ASX release 31 August 2020).

Key points of the Transaction:

• Agreement signed to acquire an 80% interest in Morila from Barrick and AngloGold for an estimated US$22-27 million subject to adjustments at closing.
• The acquisition is subject to securing acquisition finance and no objection from government; the parties are targeting completion by the end of October 2020 or as soon as possible thereafter.
• Morila is a world class asset that has produced in excess of 7.4 million ounces of gold over 20 years from a 4.5 million tonne per annum plant.

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ASX Announcement - 30 October 2020

• Morila is currently producing gold from hydraulic mining and processing of tailings and will provide cashflow from completion of acquisition.
• Immediate potential to increase production from 3 satellite pits.
• MLL estimate the Inferred Mineral Resource adjacent and beneath the Morila pit at 32 million tonnes at 1.26 g/t gold for 1.3 million ounces contained gold within a conceptual US$1250 per ounce gold pit shell and above a 0.5g/t gold cut-off. This would underpin a substantial, long term gold operation.
• Morila is currently producing at an annualised rate of up to 50,000 ounces recovered gold from tailings,1 however the Company plans to grow production from re-commencing open pit mining at satellite pits and Morila itself.
• The Mineral Resource Estimate for the Morila tailings has been classified as Measured and is reported above a lower cut-off grade of 0.3g/t gold as at 31 August 2020 to be: 4.8 million tonnes at 0.50 g/t gold for 76,000 ounces of contained gold (refer to ASX release 7 September 2020).
• A new Mineral Resource Estimate update and a new mine plan are being prepared using prevailing gold prices and existing data for Morila, its satellite pits and MLL's Koting deposit on the adjacent Massigui Project.
• Drilling to upgrade and extend Mineral Resources at Morila and its satellite deposits will commence as soon as practical.
• Little extension drilling has occurred at Morila in the last decade to follow up hits such as 56m at 4.97g/t gold.
• In the period between settlement (expected 30 October 2020 or as soon as possible thereafter) and the completion of the tailings treatment operations at the end of the second quarter of 2021, the operations are forecast to generate approximately US$17 million (A$24 million) of after tax cashflow assuming a gold price of US$1850 per ounce. That cashflow will be applied to confirmation, infill and extension drilling of Morila and its satellites and, if warranted, the ramp up of production through the restart of mining at the satellite pits.
• Processing of ore from Morila and its satellites and tailings has been straightforward with free milling ore with a significant portion of gravity recoverable gold. Historic gold recoveries from Morila ore were 91% or better.
• Morila has immediate upside without the need for drilling through re-modelling existing data at the prevailing gold prices. MLL has identified significant potential at shallow depth at the Morila pit and its satellites, not previously pursued at lower gold prices. This work is in progress.
• Morila is adjacent to the Company's Massigui Project, where MLL has successfully explored for gold for nine years. Previous discoveries on MLL's tenure have supplied ore to the Morila plant and generated revenue for the Company via a royalty. Owning Morila will unlock value in existing gold discoveries, targets and exploration potential at Massigui.
• Acquisition will consolidate 685km2 of highly prospective tenure for MLL to pursue exploration.
• Multiple high-value exploration targets surround the mine and will be the focus of systematic investigation. The acquisition consolidates 685km2 of land in one of West Africa's most prolific gold belts.

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ASX Announcement - 30 October 2020

• Considerable sunk capital reduces the cost and risk of the operation whilst also providing a strategic advantage. Morila has a substantial drill database and all infrastructure required for a self-sufficient remote site. The plant alone, with an historical throughput of 4.5 million tonnes per annum, is a large and strategic asset being the only gold processing plant for 200 kilometres. The replacement cost is estimated to be in excess of US$265 million, this being the cost of the Perseus plant and infrastructure at Yaoure in neighbouring Ivory Coast.
• The Company has been operating in Mali since 2011 and has the experience of the country to deliver on the potential of Morila. In addition, Morila has a full operating team in place who will remain with the mine after acquisition.

GOULAMINA LITHIUM PROJECT

On the 20 October 2020, the Company announced the results of the Goulamina Definitive Feasibility Study (DFS). The DFS confirmed long life, large scale, low cost open pit project with high quality product.

Key metrics of the DFS are:
Mineral Resources (M,I&I)	108.5 million tonnes at 1.45% Li2O
Mine Life	23 years minimum
Ore Reserves (Proven and Probable)	52 million tonnes at 1.51 % Li2O
Average Spodumene concentrate production	436,000 tonnes per annum
Concentrate specifications	6% Li2O, <0.6%Fe2O3, low mica
Annual Mine throughput	2.3 million tonnes
Pre-tax NPV (8%) at $666/tonne concentrate	Approx. A$1.7 billion (US$1.2billion)
Pre-tax IRR	55.8%
Capital Cost	US$194 million
Cash Costs (Life of Mine)	US$281 per tonne concentrate
All in sustaining cost (AISC) Years 1-5	US$306 per tonne concentrate

The DFS describes a compelling long life, large-scale, hard rock open pit lithium mine in Mali, West Africa. It confirms that the project is among the best in the world for scale and cost of production when compared to current operations and prospective projects. A key advantage is the quality of the 6% Li2O spodumene concentrate (SC6) product, being high in grade and very low in iron and mica impurities.

Goulamina is simple and robust, with high grades and low strip ratios enhancing financial performance. The Project delivers outstanding returns and, unlike peers, delivers good returns even at todays depressed lithium prices. The Project is not dependant on credits from other minerals.

There is considerable potential to increase the size of open pit Mineral Resources and Ore Reserves through infill and extension drilling. These characteristics make Goulamina an important strategic asset for the world's growing demand for lithium.

The Company has recently agreed to purchase the Morila Gold mine in Mali and that transaction is anticipated to close on October 31st2020. A strategic review has commenced to evaluate the optimum path to realise value for shareholders from each of these assets.

The key advantages of the Project are:

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