Petratherm : Drilling Uncovers Major High-Value Rare Earth Discovery

PETRATHERM LIMITED

ACN 106 806 884

ASX: PTR

[e-mail]

ASX ANNOUNCEMENT

20/04/2022

Drilling uncovers major High-Value Rare Earth Discovery at Comet in the Northern Gawler Craton

HIGHLIGHTS

•  Petratherm redefines the mineral prospectivity of the Northern Gawler Craton of South Australia after Greenfield's regional RAB drilling supported by South Australian Government Exploration Initiative Co-Funding uncovers significant rare earth (REE) occurrences.

•  Shallow RAB drilling tested the top 3 metres of the prospective clay horizon. Mineralisation encountered, includes impressive concentrations of high-value REE's which remain open at depth below and out into surrounding areas.

•  Notable drill intercepts include:

  High Value

  Hole	Interval	Magnet Rare Earths*
  703	3m @ 2,819 ppm TREO from 15m - 18m (EOH)	743 ppm
  704	3m @ 2,660 ppm TREO from 15m - 18m (EOH)	702 ppm
  590	3m @ 2,701 ppm TREO from 15m - 18m (EOH)	1,016 ppm
  799	3m @ 1,813 ppm TREO from 12m - 15m (EOH)	456 ppm
  931	3m @ 1,705 ppm TREO from 12m - 15m (EOH)	382 ppm
  T14_RC10	4m @ 3,042 ppm TREO from 36m - 40m	814 ppm

  (* Magnet Rare Earths = Pr6O11, Nd2O3, Tb4O7 & Dy2O3)

• • All 44 holes assayed returned significant results with 23 holes returning TREO > 1,000ppm.

• • REE intercepts in clays show striking similarities and comparable grades to the ion-absorption rare earth deposits of China which are a major world supplier.

• • Deeper RC drilling into crystalline basement rock below REE enriched clays at the Target 14 Prospect intersected zones of primary REE mineralisation. This may represent a potential source rock for the mineralisation and petrological analysis of the REE enriched basement rock is underway.

•  10,000 metre RAB drilling program scheduled to start in three weeks to test extent of mineralisation. Initial JORC resource potentially defined within six months.

•  Petratherm has a strong ground position in the Northern Gawler Craton, totalling 1,885 Km2. There is large upside for further important new REE Prospects in surrounding un-explored areas.

INTRODUCTION

Petratherm Limited (ASX: PTR) is pleased to announce assay results of Rare Earth (REE) drill intersections from the Comet Project Area (EL 6443 & EL 6633) in the Northern Gawler Craton of South Australia. Samples from 44 shallow RAB drill holes returned significant REE mineralised clay intersections outlining several regionally significant Prospect Areas. The results presented are for the most part 3 metre composite bottom hole samples taken from the Company's ongoing regional RAB geochemical sampling program and the mineralisation encountered remains open at depth and out into surrounding areas.

Full suite REE analysis of the 44 drill holes was undertaken following recognition of anomalous light REE (cerium and lanthanum) and other REE path finder elements from the Company's initial assay work. In addition to the 44 holes presented herein, a further 111 drill holes of the 993 shallow RAB holes drilled thus far contain evidence for elevated REEs. These samples are now undergoing analysis to better characterise the extent of REE mineralisation in the region.

First pass drilling was completed on a 400 metre X 400 metre spaced grid and the newly defined REE Prospect areas have been shown to be regionally extensive extending several kilometres (Figure 1).

REE 1 Anomaly - Area 1 is a broad northeast trending anomaly extending over an approximate 9 kilometre by 2-kilometre area (Figure 1). The 10 holes sampled to date in this area have returned a top of clay 3 metre composite Total Rare Earth Oxide (TREO) grade ranging between 703 ppm to 2,819 ppm. The area includes the Target 14 Gold Prospect where REE assaying of the crystalline basement rock below the clay interval has also returned highly anomalous REE's, with drill hole T14_RC10 intercepting 4m @ 3,042 ppm TREO from 36m - 40m. The presence of primary REE mineralisation in fresh rock below the REE clays is highly encouraging, confirming the presence of local REE source rocks.

Drill Hole 703 records 3m @ 2,819 ppm from 15m to end of hole and Hole 704 which is the adjacent hole 400m to east, returned 3m @ 2,660 ppm TREO from 15m to end of hole. These holes contain exceptional high value Magnet REE grades of 743 ppm and 702 ppm respectively. Another 50 drill holes with anomalous REEs and/or REE pathfinder elements from within Area 1 are with ALS laboratories undergoing analysis.

REE2 Anomaly - Area 2 REE anomaly extends over an approximate 3 kilometre by 1.5-kilometre area and broadly overlies a prominent magnetic basement rock complex (Figure 2). Research is underway to determine if the magnetic complex is the source of the REE mineralisation in the area. A further 37 drillholes at REE2 have returned anomalous samples which are now with ALS for analysis.

Other Early Stage REE Anomalies - Several single and multi-hole regional spaced drill holes (Figure 1) have returned highly significant REE grades including:

Hole 590

3m @ 2,701 ppm TREO from 15m - 18m (EOH) of which 1,016 ppm are High-Value Magnet REEsand

Hole 931

3m @ 1,705 ppm TREO from 12m - 15m (EOH)

Comet Project - Table of all REE Intercepts
Drill HoleFromToIntervalTREO metresmetres metres ppm	High Value Magnet Rare Earths Praseodymium Neodymium Pr6O11 Nd2O3 Terbium Tb4O7 Dysprosium Dy2O3 ppm % TREOppm % TREOppm % TREOppm % TREO
280	18	22	4	980	36.25	3.70	109.76	11.20	1.13	0.12	6.5	0.66
358	8	12	4	972	42.65	4.39	137.05	14.11	2.22	0.23	12.9	1.33
400	8	12	4	877	52.80	6.02	177.29	20.23	1.58	0.18	9.3	1.06
404	9	12	3	1322	67.66	5.12	205.29	15.53	1.98	0.15	10.6	0.80
428	14	18	4	654	29.12	4.45	92.03	14.08	1.01	0.15	6.8	1.03
475	6	9	3	1088	53.76	4.94	194.21	17.85	2.57	0.24	16.4	1.51
484	8	12	4	1205	76.84	6.38	261.27	21.68	3.25	0.27	17.3	1.44
493	9	15	6	868	42.17	4.73	152.62	17.58	2.52	0.29	15.1	1.74
567	9	12	3	1030	61.86	6.00	212.87	20.66	2.52	0.24	14.5	1.41
586	18	21	3	550	23.74	4.31	72.20	13.12	0.61	0.11	2.9	0.53
590	15	18	3	2701	216.27	8.01	744.16	27.55	10.08	0.37	45.2	1.67
TG14RB01	28	30	2	906	48.81	5.39	177.88	19.63	1.51	0.17	8.2	0.90
638	9	12	3	1013	66.09	6.52	229.20	22.62	3.02	0.30	14.2	1.40
639	12	15	3	1140	74.30	6.52	244.94	21.49	3.60	0.32	18.9	1.66
703	15	18	3	2819	149.21	5.29	562.20	19.95	4.71	0.17	27.1	0.96
704	15	18	3	2660	141.36	5.31	530.71	19.95	4.47	0.17	25.7	0.97
707	19	22	3	1225	71.65	5.85	246.11	20.09	4.38	0.36	21.1	1.72
710	12	15	3	1081	59.56	5.51	199.45	18.46	3.19	0.29	15.9	1.47
733	24	27	3	848	35.16	4.15	124.22	14.65	1.62	0.19	7.9	0.93
744	18	21	3	1142	77.20	6.76	278.77	24.41	3.62	0.32	16.9	1.48
750	20	24	4	1165	67.90	5.83	258.94	22.22	5.72	0.49	30.3	2.60
757	12	15	3	568	36.49	6.43	137.64	24.24	1.76	0.31	7.8	1.37
785	5	15	10	710	33.04	4.65	120.02	16.90	2.50	0.35	13.4	1.89
790	12	15	3	626	21.87	3.49	78.15	12.48	2.09	0.33	12.3	1.96
799	12	15	3	1813	88.80	4.90	333.59	18.40	5.80	0.32	27.9	1.54
800	8	12	4	1121	53.64	4.79	212.87	18.99	4.63	0.41	22.6	2.01
804	8	14	6	780	40.60	5.20	155.13	19.88	2.58	0.33	11.3	1.44
808	10	14	4	1248	65.00	5.21	242.61	19.45	2.62	0.21	11.5	0.92
and	22	24	2	728	37.09	5.10	137.05	18.83	1.91	0.26	8.1	1.11
822	10	15	5	758	37.51	4.95	132.68	17.51	2.18	0.29	11.6	1.53
855	9	12	3	1418	67.66	4.77	251.94	17.77	4.94	0.35	25.7	1.81
875	15	17	2	1041	63.91	6.14	236.78	22.74	2.81	0.27	14.2	1.36
877	9	15	6	712	37.21	5.23	132.97	18.67	2.05	0.29	10.6	1.49
886	15	18	3	728	41.68	5.72	144.05	19.78	1.83	0.25	9.9	1.36
901	15	18	3	495	22.65	4.58	76.87	15.53	1.35	0.27	7.6	1.54
931	12	15	3	1705	83.49	4.90	286.93	16.83	1.98	0.12	9.5	0.56
953	8	12	4	682	29.36	4.31	105.21	15.43	1.89	0.28	10.4	1.53
961	15	18	3	873	46.64	5.34	147.55	16.90	1.58	0.18	8.4	0.96
21T14RC03	12	16	4	1298	72.37	5.58	271.77	20.94	1.14	0.09	5.9	0.45
and	44	48	4	1179	65.00	5.51	246.11	20.87	1.09	0.09	5.8	0.50
21T14RC08	8	16	8	962	52.13	5.42	186.92	19.44	0.65	0.07	2.9	0.30
21T14RC10	12	16	4	817	44.34	5.42	155.71	19.05	0.68	0.08	3.4	0.42
and	36	40	4	3042	169.15	5.56	640.35	21.05	1.00	0.03	3.4	0.11
and	52	56	4	829	46.27	5.58	174.38	21.03	0.66	0.08	3.5	0.42
21T14RC12	20	24	4	1147	62.71	5.47	239.11	20.84	1.53	0.13	8.6	0.75
21T14RC13	36	40	4	604	31.41	5.21	118.97	19.71	0.88	0.15	4.8	0.79
21T14RC14	8	12	4	749	40.23	5.37	146.97	19.63	0.58	0.08	2.7	0.37
and	24	28	4	727	38.30	5.27	139.38	19.16	0.89	0.12	4.9	0.67
and	32	36	4	1361	74.91	5.50	276.44	20.31	0.66	0.05	2.4	0.18
and	44	48	4	1295	74.06	5.72	276.44	21.34	0.76	0.06	3.2	0.25
21T14RC18	24	28	4	804	34.19	4.25	132.97	16.53	3.01	0.37	18.3	2.28

Table 1 Comet Project - Summary Table of all REE drill intersections analysed

Figure 1 Comet Project REE Results Overview Map

(*Anomalous Drillhole = anomalous Ce and/or La and/or REE path finder element(s) Th, Sr & P)

It is important to note that sample results are for the most part single 3 metre composite samples of the top of the interpreted clay (saprolite) zone. Up hole sampling has not occurred and the mineralised intervals remain open at depth and laterally into surrounding areas. Samples from adjacent drill holes currently not recording significant REEs may be due to the sample interval being taken above or below potential mineralisation. Ionic Clay hosted REE occurrences typically show vertical and horizontal grade and depth variability within a saprolite clay profile. Better determination of these unknowns will come from the up-coming drilling scheduled to start in 3 weeks' time.

Commenting on these results Petratherm's Exploration Manager, Mr Peter Reid said:

"These are highly encouraging early results and a validation of the Company's long standing frontier exploration approach, working in under-explored terrains and trialling new exploration methods. The results provide strong evidence that the Northern Gawler Craton of South Australia is fertile for ionic clay hosted rare earth mineralisation."

Figure 2 REE2 Prospect, TREO values and REE anomalous drill holes.

(*Anomalous Drillhole = anomalous Ce and/or La and/or REE path finder element(s) Th, Sr & P)