Sept 2021 Quarterly Report

QUARTERLY REPORT

For the period ended 30 September 2021

Middle Island Resources Ltd	HIGHLIGHTS
ACN 142 361 608
• Two new permit applications at the Barkly copper-gold project in the NT
ASX Code: MDI
with a consent to grant application, have been approved by the Central
Office:	Land Council (CLC).
• A detailed airborne magnetic and radiometric survey at Barkly has been
Suite 1, 2 Richardson Street
WEST PERTH WA 6005	scheduled for November / December 2021 and will be co-funded by the
Western Australia	Northern Territory Geological Survey.
Postal Address:	• The results of the Sandstone gold project auger geochemistry program last
PO Box 1017
quarter have been received and analysed.
West Perth WA 6872
Western Australia	• 5 new gold prospects have been identified within the Sandstone permits
	with limited to no historical drilling.
T: [phone]	• A 2 km long nickel anomaly (open to the northeast) has been defined in the
E: [e-mail]
Jew Well permit, outlining a potential Ultramafic Complex.
www.middleisland.com.au
Capital Structure :
122 million ordinary shares
22 million unlisted options
Board Members:
Peter Thomas
Chairman
Brad Marwood
Executive Director
Bruce Stewart
Non-Executive Director
Dennis Wilkins
Company Secretary

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QUARTERLY REPORT ended 30 September 2021

Operating Activities

Corporate

Board Changes

As per ASX Release 14 July 2021 (updated 20 July 2021) the position of Managing Director (and hence Rick Yeates in that role) was made redundant. Brad Marwood has been a part-time Executive Director since that time and Bruce Stewart was appointed and remains a Non-Executive Director.

Finances

Middle Island Resources Limited (ASX: MDI, Middle Island or the Company), held aggregated cash and liquid investments of A$2.47m as of 30 September 2021, comprising A$2.21m in cash and A$0.26m in Tajiri Resources Corporation (TSXV: TAJ) ordinary shares.

ASX Additional Information

ASX Listing Rule 5.3.1: Exploration and evaluation expenditure during the 2021 September quarter was $674,000 comprising tenement compliance costs, buyback of the Troy royalty $250,000, auger drilling program, planning and preparation for exploration work for the Barkly copper-gold project.

ASX Listing Rule 5.3.2: No substantive mining production or development activities were undertaken during the 2021 September quarter.

ASX Listing Rule 5.3.5: During the 2021 September quarter, the Company made cash payments of $299,000 to related parties and their associates, being the aggregate amount paid to Directors, including salary, Directors' fees, consulting fees, superannuation, redundancy, and the dismissal cost of the Managing Director which was less than one year of salary.

Tenure

At the 100%-owned Barkly copper-gold project in the Northern Territory (NT), a further six Exploration Licence applications (ELA), covering a combined total 809km2 (24 blocks), were lodged to secure remaining available tenure in proximity to the Company's Crosswinds copper discovery.

Strategy

MDI's strategy remains twofold:

• To increase the value of the Barkly copper-gold project via exploration; and
• To continue to pursue opportunities to realise a return from its sandstone assets by, inter alia, exploring the project's potential to deliver new discoveries and seeking to amalgamate proximal holdings and resources through acquisition and corporate activity.

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QUARTERLY REPORT ended 30 September 2021

Barkly Copper-Gold Super Project (100%) - Northern Territory

As per the recent exploration update (ASX release of 26 October 2021), during the quarter:

• Two new permit applications with a consent to grant application, have been approved by the Central Land Council (CLC). Middle Island has until the 31 October 2023 to negotiate a Native Title agreement. This takes the Barkley Project to a total of 5,220 km2, as shown in Figure 1. The two new permits are contiguous with the Crosswinds copper discovery previously reported by Middle Island (ASX release 23 December 2020).
• A detailed airborne magnetic and radiometric survey has been scheduled for November / December 2021 and will be co-funded by the Northern Territory Geological Survey. This work will be followed by a detailed ground gravity survey to enable drill targeting.
• An induced polarisation (IP) survey is planned across the Crosswinds prospect that will potentially highlight the source (at depth) of the surface malachite. Silica associated with the copper mineralisation (malachite) on surface indicates a hydrothermal source at depth.
• The IP survey may present a drill ready target in the coming months.

Figure 1

Middle Island Barkly copper-goldsuper-project, NT.

The company continues to review the best pathway for enhancement of the current shareholder interests in Barkly Super Project and have elected at this time not to take action to spin out the Barkly assets. Thus, the spin out option is not addressed in the Notice of Meeting for the Annual General meeting 19 November 2021.

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QUARTERLY REPORT ended 30 September 2021

Sandstone Gold Project (100%) - Western Australia

The Sandstone gold project is shown in Figure 2:

Figure 2

Sandstone Gold Project

EXPLORATION

During the September 2021 Quarter, the Company received all results from the June 2021 Quarter auger drilling geochemical survey to test five (5) new targets, all of which are largely veneered by transported cover.

The results of the auger program were advised post quarter's end, as per ASX release 26 October 2021, and are summarised below.

• A total of 536 Auger geochemistry holes were completed across 4 new untested targets including 3 target areas in the Sandstone permits and 1 target in the Jew Well Permit (located approximately 10km south of Sandstone plant).

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QUARTERLY REPORT ended 30 September 2021

• All holes have been analysed by semi-quantitative portable XRF (pXRF) for a 24 multi-element suit, and for gold by 30g fire assay.
• 5 new gold prospects have been identified within the Sandstone permits with limited to no historical drilling, refer to Figure 3.
• A 2 km long nickel anomaly (open to the northeast) has been defined in the Jew Well permit, outlining a potential Ultramafic Complex.

Figure 3

Sandstone Permits - Auger Au Results - 5 new prospects.

The five preliminary targets have been defined by the initial auger results and they will require infill auger geochemistry to refine the targets. Targets defined are:

• Nugget Patch 1 & 2, which are in proximity to historical nugget patches exploited by surface prospectors, with no previous drilling.
• Mt Kempt is a poorly tested historical target, with minor previous drilling.
• 3 Mile is a known nugget patch, with limited previous drilling.
• Wirraminna North is an interpreted fault offset of the Wirraminna deposit, with only minor shallow previous drilling.
• 2 Mile West is a 600 m extension of the Two Mile Hill deposit associated with the banded iron formation (BIF) ridge, with limited previous drilling.
• A 6th prospect was defined at Nungara North but is on the boundary of the historical abandoned townsite of Nungara. Additional permitting is required to access this area.

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