MRG Metals : 31.03.22 Quarterly Activities & Cashflow Report

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At 4% THM cut-off
Nhacutse	Indicated	386 Mt @ 4.9% THM
Inferred	149 Mt @ 4.8%THM (Table 2)
Poiombo	Indicated	138 Mt @ 5.0% THM
Inferred	187 Mt @ 4.7%THM (Table 2)
Combined Nhacutse and Poiombo	Indicated and Inferred	860 Mt @ 4.9% THM (Table 1)
At 5% THM cut-off
Nhacutse	Indicated	142 Mt @ 5.8% THM
Inferred	31 Mt @ 6.8%THM (Table 5)
Poiombo	Indicated	44 Mt @ 6.3% THM
Inferred	40 Mt @ 5.8%THM (Table 5)
Combined Nhacutse and Poiombo	Indicated and Inferred	257 Mt @ 6.0% THM (Table 4)

ASX ANNOUNCEMENT

29 April 2022

MRG METALS MARCH 2022 QUARTERLY ACTIVITY REPORT

Key Highlights

Corridor Projects

• • Maiden JORC Mineral Resource Estimates were delivered for Nhacutse and Poiombo deposits (refer ASX Announcement 7 February 2022, Tables 1, 2 and 3; Figures 2 and 3). At 4% Total Heavy Mineral (THM) cut-off:

  • o Nhacutse 535 Mt @ 4.9% THM (Inferred Resource)

  • o Poiombo 325 Mt @ 4.8% THM (Inferred Resource)

  • o Combined Nhacutse and Poiombo 860 Mt @ 4.9% THM (Inferred Resource). (Refer Table 1).

• • A comprehensive mineralogical study of 27 composite samples from Nhacutse and Poiombo deposits was then completed (refer ASX Announcement 1 April 2022, Table 4), study returned substantially improved Valuable Heavy Mineral (VHM) results compared to the widely spaced earlier mineralogy data used in the Maiden Mineral Resource estimates.

• • Updated JORC Mineral Resource Estimates were then delivered for Nhacutse and Poiombo deposits (refer ASX Announcement 8 April 2022) based on the new mineralogical study.

MRG Metals Limited ABN: 83 148 938 532 / ASX Code: MRQ

12 Anderson Street West, Ballarat VIC 3350 / PO Box 237 Ballarat VIC 3353

Phone: [phone] / Fax: [phone]www.mrgmetals.com.au /[e-mail]

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• • The updated Mineral Resource estimation also delivered a combined JORC Exploration Target of between 50 and 500 Mt @ between 4.2 and 5.4% THM for a total range of contained THM of between 3 and 20 Mt.

• • Both Nhacutse and Poiombo deposits demonstrate exceptional homogeneity and also good continuity of higher-grade zones of mineralisation (refer Figure 4).

• • MRG commissioned IHC Mining for an Engineering Scoping Study and Preliminary Economic

  Assessment (PEA) for its Corridor Projects in Mozambique, focused on the Koko Massava, Nhacutse and Poiombo deposits (refer ASX Announcement 17 March 2022). The Study has commenced and will be completed in July 2022.

• • The study will be augmented by metallurgical and processing test work of a 6.5t bulk sample from the Koko Massava deposit currently being done by IHC Mining.

• • The world-leading independent consulting group TZ Minerals International Pty Ltd (TZMI) is currently undertaking a market study to better understand the economic potential of the different product streams of the Corridor Central and Corridor South resources (refer ASX Announcement 27 January 2022).

• • A 2,000m aircore drilling program is underway at the Corridor Central and Corridor South tenements to test 11 targets that demonstrate high VHM content corresponding with high THM content (refer ASX Announcement 7 April 2022, Figure 8).

• • The Nhacutse and Poiombo deposits sit adjacent, approximately 4 km apart, and a similar distance between the Nhacutse and Koko Massava deposit to the northwest (refer Figure 1). All three deposits are in a very close economic radius and approximately 40 km from the proposed port at Chongoene.

Marao and Marruca Projects

• • Aircore drilling has begun at MRG's 3 heavy mineral sands (HMS) targets: Magonde, Mandende and Maduacua, which were identified by grid auger drilling in 2021 at the Marao Project (6842L).

• • A program of 9 holes for a total of 350 to 400m is underway to test depth continuity of these 3 targets:

  • o Magonde target has a surface footprint of >5 sq km of visually estimated (VIS EST) +3% total heavy minerals (THM) sand, with auger hole grades as high as VIS EST 5.1% THM over 13.5m (refer ASX Announcement 18 March 2021);

  • o Mandende Target has a surface footprint of >9 sq km of VIS EST +3% THM, with auger hole grades as high as VIS EST 5.1% THM over 13.5m (refer ASX Announcement 18 June 2021); and

  • o Maduacua target has a surface footprint >6 sq km of VIS EST +3% THM and a high grade VIS EST >5% THM portion of >3,5 sq km, with highest grade VIS EST of 6.9% THM over 13.5m (refer ASX Announcement 8 July 2021).

• • The targets all demonstrate a north-south orientation, so an aircore hole will be drilled into the north, central and south sections of each of the targets (refer Figure 11).

MRG Metals Limited ABN: 83 148 938 532 / ASX Code: MRQ

12 Anderson Street West, Ballarat VIC 3350 / PO Box 237 Ballarat VIC 3353

Phone: [phone] / Fax: [phone]www.mrgmetals.com.au /[e-mail]

For personal use only

Corporate

• • Successful completion of a $1.6 million placement to facilitate Scoping Study/PEA at Corridor Sands discovery and drive further drilling programs

MRG Metals Limited ("MRG" or "the Company") (ASX Code: MRQ) is pleased to provide a summary of the Company's activities for the March 2022 quarter at its Heavy Mineral Sands projects in southern Mozambique.

Activity across MRG's Corridor Portfolio

Maiden MRE for Nhacutse and Poiombo Includes Excellent High-Grade Result

Numerous drilling phases within the Corridor South (6621L) licence, from reconnaissance to infill drilling programs, drilled via hand auger and aircore, resulted in 273 hand auger holes (2,737.1 m of drilling) and 127 aircore holes (4,685.5 m of drilling). Drilling was initiated with hand auger drill testing (refer ASX Announcement 25 July 2019) of MRG aerial magnetic anomalies (refer ASX Announcement 13 June 2019) and continued to the final infill aircore drilling phase in mid-2021 of the Nhacutse and Poiombo deposits (refer ASX Announcement 16 June 2021).

Receipt of all analytical results, including inter-laboratory QA/QC analysis (refer ASX Announcement 8 December 2021) and results from initial mineralogical studies has facilitated the preparation of Joint Ore Reserve Committee (JORC) Mineral Resource estimates at a 4% THM cut-off for the for Nhacutse and Poiombo deposits (refer Table 1 and Figure 3):

Table 1: Summary of the JORC Mineral Resource estimate for the Nhacutse and Poiombo deposit areas.

• (1) Mineral resources reported at a cut-off grade of 4% THM

• (2) Mineral assemblage is reported as a percentage of in situ THM content.

The maiden Nhacutse Mineral Resource estimate comprises a total Mineral Resource of 535 Mt @ 4.9% THM, with 21% Slimes, containing 26 Mt of THM with an assemblage of 41% ilmenite, 32% titano-magnetite, 1% rutile and 2% zircon. The JORC categories are specifically stated as:

• • Inferred Mineral Resource of 535 Mt @ 4.9% THM and 21% Slimes containing 26 Mt of THM with an assemblage of 41% ilmenite, 32% titano-magnetite, 1% rutile and 2% zircon.

MRG Metals Limited ABN: 83 148 938 532 / ASX Code: MRQ

12 Anderson Street West, Ballarat VIC 3350 / PO Box 237 Ballarat VIC 3353

Phone: [phone] / Fax: [phone]www.mrgmetals.com.au /[e-mail]

For personal use only

The maiden Poiombo Mineral Resource estimate comprises a total Mineral Resource of 325 Mt @ 4.8% THM, with 19% Slimes, containing 16 Mt of THM with an assemblage of 37% ilmenite, 29% titano-magnetite, 1% rutile and 1% zircon. The JORC categories are specifically stated as:

• • Inferred Mineral Resource of 325 Mt @ 4.8% THM and 19% Slimes containing 16 Mt of THM with an assemblage of 37% ilmenite, 29% titano-magnetite, 1% rutile and 1% zircon.

The Mineral Resource estimate at the Nhacutse and Poiombo deposits also delivered an Exploration Target in the range of 50 and 500 Mt @ between 4.5 and 5.4% THM at cut-off grades of 3% and 5% THM (refer Table 2; Figure 3). This Exploration Target was predominantly located within the boundaries of the Bungane, Nhacutse and Poiombo villages.

Table 2: Summary of Exploration Target for the Nhacutse and Poiombo areas.

Summary of Exploration Target(1)

In SituClassificationMaterial

(Mt)THM (Mt)BD (gcm3)

THM (%)SLIMES

(%)OS (%)ILM (%)RUT (%)ZIR TIMAG HEMA CHRM MOTH ANDA NMOTH

(%)

(%) (%) (%) (%) (%) (%)

Exploration Target Grand Total Notes:

50 - 500 50 - 500

3 - 20 3 - 20

1.74 1.74

4.2 - 5.4 4.2 - 5.4

18 18

1 1

37 37

1 1

1 1

30 30

6 6

4 4

9 9

8 8

3 3

• (1) Exploration Target reported at a cut-off grade of 3% - 5% THM

• (2) Mineral assemblage is reported as a percentage of in situ THM content.

The infill drilled High-Grade Zone, falling within the total Nhacutse and Poiombo Mineral Resource estimate area, was outlined as per Figure 2 and a Mineral Resource estimate was prepared for this confined area as per Table 3. The Mineral Resource estimate was reported at a range of cut-off grades in increments of 0.5% THM and these grade tonnage curves are presented in Figure 4, with the continuity of the high grades shown in the Mineral Resource estimate to be present up to a 5.5% THM cut-off.

Table 3: Summary of the JORC Mineral Resource estimate at 5% THM cut-off for the Nhacutse and Poiombo areas.

Mineral Resource Estimation

5% COG

• (1) Mineral resources reported at a cut-off grade of 5% THM

• (2) Mineral assemblage is reported as a percentage of in situ THM content.

The Nhacutse and Poiombo High-Grade Zone comprises a Mineral Resource estimate of 256 Mt @ 6.0% THM, at a 5.0% cut-off grade, containing 15 Mt of THM, with 21% Slimes, and an assemblage of 39% ilmenite, 31% titano-magnetite, 1% rutile and 2% zircon.

MRG Metals Limited ABN: 83 148 938 532 / ASX Code: MRQ

12 Anderson Street West, Ballarat VIC 3350 / PO Box 237 Ballarat VIC 3353

Phone: [phone] / Fax: [phone]www.mrgmetals.com.au /[e-mail]

For personal use only

Figure 1: Map of the location of the Nhacutse and Poiombo Mineral Resource estimate areas within Corridor

South (6621L) vs the Koko Massava MRE area within Corridor Central (6620 L).

MRG Metals Limited ABN: 83 148 938 532 / ASX Code: MRQ

12 Anderson Street West, Ballarat VIC 3350 / PO Box 237 Ballarat VIC 3353

Phone: [phone] / Fax: [phone]www.mrgmetals.com.au /[e-mail]