MRG Metals : HMS - World Class HMS Deposit Confirmed...

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ASX ANNOUNCEMENT

16 December 2021

WORLD CLASS HMS DEPOSIT CONFIRMED AT KOKO MASSAVA WITH POTENTIAL FOR 50+ YEAR MINE LIFE; UPDATED MRE REPORTING INTERNAL HIGH-GRADE ZONE OF 103 MT @ 6.6% THM

Key Highlights

• The updated Koko Massava JORC Mineral Resource estimate has delivered a High-Grade Zone of 103 Mt @ 6.6% total heavy minerals (THM) at a 5.5% cut-off grade (refer Table 3).
• The High-Grade Zone is situated between the towns of Koko Massava and Malehice, outside town infrastructure. It presents a potential high-gradestart-up mine opportunity, to be assessed during the Pit Optimisation study currently underway.
• The updated Mineral Resource estimate shows the global Koko Massava deposit to be exceptionally homogeneous. It has grown in both size and grade in the Indicated Resource category at the same 4% cut-off grade, compared to the maiden Koko Massava JORC Mineral Resource estimate (refer ASX Announcement: 22 April 2020). The key updated Mineral Resource estimate is presented in Tables 1 and 2 and is stated as:
  o An Indicated Mineral Resource of 557 Mt @ 5.1% THM; and o An Inferred Mineral Resource of 977 Mt @ 5.0% THM.
• This represents an increase in the Indicated Mineral Resource category in grade (from 4.9% to 5.1% THM) and tonnes (from 289 Mt to 557 Mt), compared with the maiden Mineral Resource estimate. Importantly, it includes the lowest strip portion of an area of 103 Mt @ 6.6% THM (5.5% THM cut-off grade).
• The Koko Massava deposit also comprises an Exploration Target of between 120 and 630 Mt @ between 4.5 and 6.0% THM for a total range of contained THM of between 7 and 30 Mt.
• Koko Massava is a "World class" deposit with potential to become a >50 year mine.
• Additional mineralogical characterisation on the THM of the High-Grade Zone returned positive mineral assemblage results (Table 4). The mineral assemblage in the Mineral Resource estimate (refer Table 3) contains: average ilmenite content at 39% (ilmenite plus altered ilmenite plus leucoxene); rutile at 1%, zircon at 1% and titanomagnetite at 33%. The valuable heavy mineral content (VHM) is therefore 74%. The average clay fines content (SLIMES) is 14% within the High-Grade Zone.

MRG Metals Limited ABN: 83 148 938 532 / ASX Code: MRQ	Phone: [phone] / Fax: [phone]
12 Anderson Street West, Ballarat VIC 3350 / PO Box 237 Ballarat VIC 3353	www.mrgmetals.com.au/[e-mail]

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• From previous 100 kg bulk sample metallurgical testwork and Ultra Low Temperature Roasting (ULTR) under reduced conditions, an ilmenite product with 47.1% TiO2, 0.9% SiO2, 0.5% Al2O3, 0.1% Cr2O3 and <20ppm U + Th was recovered. The ilmenite represents potential as direct feedstock for sulphate pigment manufacture or as feedstock for titanium slag manufacture (refer ASX Announcement: 13 July 2020).
• A 6.5 tonne bulk sample is currently in transit to Australia. IHC Mining will conduct comprehensive metallurgical process development test work on the bulk sample. This will allow the investigation of potential upside value as we test the full suite of potential VHM products.

MRG Metals Limited ("MRG" or "the Company") (ASX Code: MRQ) is pleased to announce the results of the updated Joint Ore Reserve Committee (JORC) Mineral Resource estimate for the global Koko Massava deposit (refer Tables 1 and 2; Figures 1 and 2), as well as the excellent results from the Mineral Resource estimate of the infill aircore drilled High-Grade Zone within the global Koko Massava deposit (refer Table 3; Figure 4). As per the maiden global Koko Massava Mineral Resource estimate (Table 1, refer ASX Announcement: 22 April 2020) the Mineral Resource estimates were undertaken by IHC Mining in Perth, Australia. MRG is also pleased to release the results from a comprehensive mineralogical study within the infill drilled High-Grade Zone (refer Table 4).

MRG Metals Chairman, Mr Andrew Van Der Zwan said: "The Koko Massava MRE is a significant step in meeting our exploration goal of 100mt of high-graderesource. The increase in Indicated Resource will facilitate the next steps towards feasibility studies. In addition, we await the MRE results at Poiombo and Nhacutsce to add to the high-gradetonnage. The MRE has allowed us to identify a potential start up mine area in the Koko Massava deposit, which is now being reviewed in a Pit Optimisation study.

The metallurgy bench top study will provide the opportunity for us trial a number of different circuits and importantly create sample concentrates for potential Offtaker review. We are pleased to advise that this work is progressing through the planning phase and the test material is in transit, soon ready for processing. We will also take the opportunity to review the marketability of the Titanomagnetite stream and other value adding products.

Early 2022 will be a significant period for MRG with the continuation of development analysis at Corridor and the reprioritisation of exploration activities in MRG's growing Mozambique portfolio."

MRG Metals Limited ABN: 83 148 938 532 / ASX Code: MRQ	Phone: [phone] / Fax: [phone]
12 Anderson Street West, Ballarat VIC 3350 / PO Box 237 Ballarat VIC 3353	www.mrgmetals.com.au/[e-mail]

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Updated Koko Massava Mineral Resource Estimate

A maiden JORC Mineral Resource estimate for the global Koko Massava deposit area was reported, showing the following results (refer ASX Announcement: 22 April 2020):

An infill aircore drilling program was carried out in 2021 in a High-Grade Zone within the Inferred Mineral Resource portion of the maiden Koko Massava Mineral Resource estimate. Receipt of all analytical results, including inter-laboratory QA/QC analysis (refer ASX Announcement: 8 December 2021) and results from a comprehensive mineralogical study (refer Table 4), has facilitated the preparation of an updated Mineral Resource estimate, again at a 4% THM cut-off for the Koko Massava deposit (Table 1 and Figure 2):

Table 1: Summary of the updated JORC Mineral Resource estimate for the global Koko Massava deposit area.

Summary of Mineral Resources	(1)								THM Assemblage	(2)
Mineral		In Situ
Material	THM	BD	THM	SLIMES	OS	ILM	RUT	ZIR	TIMAG CHROM MOTH ANDA NMOTH
Resource
(Mt)	(Mt)	(gcm3)	(%)	(%)	(%)	(%)	(%)	(%)	(%)	(%)	(%)	(%)	(%)
Category
Indicated	557	28	1.7	5.1	17	1	39	1	1	32	4	13	8	3
Inferred	977	49	1.7	5.0	16	1	38	1	1	32	4	13	8	3
Grand Total	1,534	78	1.7	5.1	17	1	38	1	1	32	4	13	8	3
Notes:

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 updated global Koko Massava Mineral Resource estimate comprises a total Mineral Resource of 1,534 Mt @ 5.1% THM, with 17% Slimes, containing 78 Mt of THM with an assemblage of 38% ilmenite, 32% titano-magnetite, 1% rutile and 1% zircon. The JORC categories are specifically stated as:

• an Indicated Mineral Resource of 557 Mt @ 5.1% THM and 17% Slimes containing 28 Mt of THM with an assemblage of 38% ilmenite, 32% titano-magnetite, 1% rutile and 1% zircon.
• an Inferred Mineral Resource of 977 Mt @ 5.0% THM and 16% Slimes containing 49 Mt of THM with an assemblage of 38% ilmenite, 32% titano-magnetite, 1% rutile and 1% zircon.

The total Mineral Resource inventory has increased by 110 Mt, with the Indicated Mineral Resource significantly higher (an increase of 268 Mt). The average grade of the Indicated Mineral Resource is also higher (an increase of 0.2% THM). The grade-tonnage curve for the total Koko Massava Mineral Resource area (Figure 3) shows remarkable grade consistency within the deposit.

The Mineral Resource estimate at Koko Massava deposit also delivered an Exploration Target in the range of 120 and 630 Mt @ between 4.5 and 6.0% THM at cut-off grades of 3% and 5% THM (refer Table 2; Figure 2). This Exploration Target was predominantly located within the boundaries of the Koko Massava and Malehice villages.

MRG Metals Limited ABN: 83 148 938 532 / ASX Code: MRQ	Phone: [phone] / Fax: [phone]
12 Anderson Street West, Ballarat VIC 3350 / PO Box 237 Ballarat VIC 3353	www.mrgmetals.com.au/[e-mail]

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Table 2: Summary of Exploration Target for global Koko Massava area.

Summary of Exploration Target	(1)								THM Assemblage	(2)
		In Situ
Target	Material	THM	BD	THM	SLIMES	OS	ILM	RUT	ZIR	TIMAG CHROM MOTH ANDA	NMOTH
	(Mt)	(Mt)	(gcm3)	(%)	(%)	(%)	(%)	(%)	(%)	(%)	(%)	(%)	(%)	(%)
Exploration Target	120 - 630	7 - 30	1.74	4.5 - 6.0	15	1	38	1	1	31	4	13	9	3
Grand Total	120 - 630	7 - 30	1.74	4.5 - 6.0	15	1	38	1	1	31	4	13	9	3
Notes:

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.

Koko Massava High-Grade Zone Mineral Resource Estimate

The infill drilled High-Grade Zone, falling within the total Koko Massava Mineral Resource estimate area, was outlined as per Figure 4 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 this grade tonnage curve is presented in Figure 5, with the continuity of the high grades shown in the Mineral Resource estimate to be present up to a 5.5% THM cut-off. The High-Grade Zone has grades of +4% THM at surface for the entire modelled outlined area (Figure 6), with the majority of the area having +4.5% THM grades at surface (refer Figure 7). The grade- tonnage curve for the High-Grade Zone (Figure 5) also shows the significant continuity of the grades, but the ratio of material below cut-off grade to material above cut-off grade (stripping ratio) in the High-Grade Zone is generally lower and more continuous than for the rest of the Koko Massava Resource deposit, at 1.3:1.0 in the High-Grade Zone with a 5.5% THM cut-off. The stripping ratio is low in the High-Grade Zone even when higher cut-offs are used, with the ratio at the 4.0% THM cutoff being 0.20:1.0, at 4.5% THM being 0.33:1.0 and at 5.0% THM being 0.65:1.0. The stripping ratio for the 4.5% THM cut-off grade is shown in Figure 8.

Table 3: Summary of the JORC Mineral Resource estimate for the infill drilled High-Grade Zone within the global Koko Massava deposit area.

Summary of Mineral Resources	(1)								THM Assemblage	(2)
Mineral		In Situ
Material	THM	BD	THM	SLIMES	OS	ILM	RUT	ZIR	TIMAG CHROM MOTH ANDA NMOTH
Resource
(Mt)	(Mt)	(gcm3	(%)	(%)	(%)	(%)	(%)	(%)	(%)	(%)	(%)	(%)	(%)
Category
			)
Indicated	58	4		1.8	6.4	15	1	39	1	1	33	4	12	7	3
Inferred	45	3		1.8	6.8	12	1	39	1	1	34	4	13	5	2
Grand Total	103	7		1.8	6.6	14	1	39	1	1	33	4	13	6	3
Notes:

1. Mineral resources reported at a cut-off grade of 5.5% THM
2. Mineral assemblage is reported as a percentage of in situ THM content.

The Koko Massava High-Grade Zone comprises a Mineral Resource estimate of 103 Mt @ 6.6% THM, at 5.5% cut-off grade, containing 7 Mt of THM, with 14% Slimes, with an assemblage of 39% ilmenite,

33% titano-magnetite, 1% rutile and 1% zircon. The JORC categories are specifically stated as:

• an Indicated Mineral Resource of 58 Mt @ 6.4% THM and 15% Slimes containing 4 Mt of THM with an assemblage of 39% ilmenite, 33% titano-magnetite, 1% rutile and 1% zircon.
• an Inferred Mineral Resource of 45 Mt @ 6.8% THM and 12% Slimes containing 3 Mt of THM

MRG Metals Limited ABN: 83 148 938 532 / ASX Code: MRQ	Phone: [phone] / Fax: [phone]
12 Anderson Street West, Ballarat VIC 3350 / PO Box 237 Ballarat VIC 3353	www.mrgmetals.com.au/[e-mail]

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with an assemblage of 38% ilmenite, 34% titano-magnetite, 1% rutile and 1% zircon.

Mineralogical Work Undertaken

Infill drilling program

Additional geological interpretive work identified a High-Grade Zone within the maiden Mineral Resource estimate reported in April 2020. The High-Grade Zone is situated between the towns of Koko Massava and Malehice, thus outside of any infrastructure. This zone was infill drilled during March and April 2021 with 31 aircore drillholes (Figure 4). The 31 aircore holes involved 1,342 m of drilling, with 1,398 samples (inclusive of QA/QC samples) collected at 1.5m intervals. Additionally, 3 twin aircore holes were drilled, these holes involved 72 m of drilling and 50 samples (inclusive of QA/QC samples) collected at 1.5m intervals (refer ASX Announcement: 16 July 2021).

High Grade Zone mineralogical study

On completion of the infill aircore drilling, additional mineralogical studies were conducted by SJMetMin on the global resource area, as well as on 21 composite samples representing 4 interpreted distinctly different lithological units (mainly based on THM grade, silt content and colour) within the High-Grade Zone. The composites of the THM sink concentrates (HMC) were formed from 29 of the infill aircore holes and the HMC of 1,200 individual 1.5 m samples. The study covered these different lithologies comprehensively at depths and on strike within the infill drilled High-Grade Zone. QEMSCAN analysis was done at the University of Cape Town (UCT) in South Africa, the QEM data was augmented with XRD and XRF analysis. The results of the study are shown in Table 4.

Table 4: Summary results for bulk modal mineral assemblage of 21 composite samples created from heavy mineral concentrated derived from infill aircore drillholes within the High-Grade Zone within the global Koko Massava deposit area.

SAMPLE		KM001	KM002	KM003	KM004	KM005	KM006	KM007	KM008	KM009	KM010	KM011	KM012
MINERAL OR PHASE	Field	Mass%	Mass%	Mass%	Mass%	Mass%	Mass%	Mass%	Mass%	Mass%	Mass%	Mass%	Mass%
Name
Zircon	ZIR	1.0	1.3	1.4	1.2	1.0	1.2	1.2	1.4	1.4	1.0	1.0	1.3
Rutile	RUT	1.1	1.0	1.5	1.0	1.3	1.2	1.2	1.5	0.9	0.9	1.0	1.1
Leucoxene	LX	0.3	0.3	0.4	0.3	0.4	0.3	0.3	0.4	0.3	0.2	0.3	0.3
Ilmenite & altered	ILM	37.5	39.7	39.6	35.8	34.5	38.2	34.0	38.4	41.1	36.1	34.8	39.0
ilmenite
Titanomagnetite	TIMAG	32.0	30.9	28.1	28.3	28.8	31.1	30.5	32.1	32.6	37.4	35.8	33.4
Andalusite	ANDA	9.6	6.5	7.5	6.8	14.2	8.0	10.6	8.5	5.9	6.4	8.4	8.0
Chromite	CHROM	4.2	4.5	3.8	3.9	3.1	3.5	4.4	3.6	3.9	3.5	4.0	3.2
Magnetic Others	MOTH	11.2	12.9	13.5	18.8	12.3	14.0	13.8	12.2	12.1	11.5	11.0	11.3
Non-magnetic Others	NMOTH	3.2	2.8	4.0	3.9	4.5	2.4	4.1	2.0	1.8	3.1	3.7	2.4

MRG Metals Limited ABN: 83 148 938 532 / ASX Code: MRQ	Phone: [phone] / Fax: [phone]
12 Anderson Street West, Ballarat VIC 3350 / PO Box 237 Ballarat VIC 3353	www.mrgmetals.com.au/[e-mail]