PNX Metals : New Untested Gold Lode Position Adjacent to Fountain Head

ASX Announcement	Level 1, 135 Fullarton Road
Rose Park, SA 5067
23 November 2020	Australia
	Telephone [phone]
This announcement has been authorised to	Facsimile [phone]
be lodged with the ASX by the Board of	[e-mail]
Directors of PNX Metals Limited.	www.pnxmetals.com.au

New untested gold lode position adjacent to the Fountain Head Project

• Potential new lode position adjacent to Fountain Head that remains largely untested
• Targets include at Banner where wide-spaced drilling produced strong intercepts including 6m @ 39.5g/t gold from 54 metres, and 19m @ 2.7g/t gold from 66 metres under a large surface gold anomaly in soils
• Initial field follow-up assessment completed and assays from rock chips taken from new exploration areas are expected in the next two weeks
• Detailed aeromagnetic survey planned to assist in defining specific drill targets

PNX Metals Limited (ASX: PNX) ("PNX", "the Company") is pleased to advise that a comprehensive geological review of the areas surrounding the Fountain Head Gold Deposit ("Fountain Head" or "Project") has identified new exploration targets with the potential to host additional 'near-mine' gold resources.

Managing Director's Comments

Commenting on the results, PNX Managing Director James Fox said: "The newly identified target areas all lie within a 3-kilometre radius of Fountain Head and have the potential to significantly add to the existing resource base. Banner and unexplored portions of the Glencoe - Tally Ho - Klondike Trend, including a potential new lode position at the NW Breccia, are key drill targets and a priority for follow-up. We have a crew in the field now and I look forward to updating the market as new results come to hand"

The 100% owned Fountain Head project is located on granted Mineral Leases approximately 170km south of Darwin in the Pine Creek region of the Northern Territory.

New information derived from recent field mapping and assessment of geological data, suggests that gold mineralisation at Fountain Head exists over a significant strike extent (>5km); along an anticline fold hinge from 'Banner' in the west to the 'Lady Josephine' prospect in the south-east (Figure 1). Two main mineral lodes have been identified to date - the Fountain Head lode and the crosscutting N/NW trending Tally Ho lode, both of which remain open along strike and down dip and host the majority of the current mineral resource of 2.94Mt at 1.7g/t Au for 156,000 oz Au (refer Table 1 below, and PNX ASX release 16 June 2020 for full details including JORC tables).

At Fountain Head and other gold deposits in the region, gold mineralisation typically occurs at the intersection of N/NW trending structures and anticline fold hinges. The soil-covered portions of these intersection points along strike from known gold mineralisation at Fountain Head, have only been tested by limited shallow (average 6m depth) RAB and vacuum drilling and remain to be tested at depth. Historically the majority of exploration drilling on the Fountain Head Mineral Leases has been limited to outcropping areas.

At the Banner prospect, which is located approximately 600m north west of the Fountain Head resource (Figure 1), shallow historic RAB drilling has defined multiple bedrock gold anomalies over a 500m strike extent. Wide-

PNX Metals Limited | ABN 67 127 446 271

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spaced deeper drilling by PNX and others in this area produced several strong results (refer PNX ASX release 23 August 2018), including;

• 6m @ 39.5g/t gold from 54 metres in FHRC085,
• 1m @ 10.88g/t gold from 28 metres in PDH41,
• 19m @ 2.7g/t gold from 66 metres in PDH41,
• 1m @ 6.71g/t gold from 46 metres in PDH35,
• 1m @ 5.43 g/t gold from 15 metres in PDH36,
• 4m @ 1.90g/t gold from 11 metres in PDH38,
• 1m @ 7.9g/t gold from 45 metres in PDH42

Banner represents a priority exploration target as the shallow bedrock anomalism and deeper drill intersections require further drill testing and assessment.

At Fountain Head South East (Figure 1) (located 450 metres south east of the Fountain Head resource boundary), shallow historic RAB and vacuum drilling has defined multiple parallel north-south trending zones of strong bedrock gold anomalism within a quartz veined sequence of weathered sediments. The southern end of the target has not been tested by deeper drilling and remains open along strike.

The RAB holes have an average depth of 10 metres and only a small portion of the western bedrock zone has been tested with deeper RC drilling which returned;

• 1m @ 9.98g/t gold from 37 metres in TERC007
• 1m @ 93.7g/t gold from 19 metres, and 1m @ 22.7g/t gold from 42 metres in TERC010
• 1m @ 31.9g/t gold from 31 metres in TERC011
• 1m @ 5.67g/t gold from 92 metres in TERC019

The high-grade Tally Ho lode, (part of the Fountain Head Mineral Resource), lies within an interpreted N/NW trending structural zone that crosscuts the main Fountain Head anticline. This structural zone has been mapped from aeromagnetic data and field observations as trending from the Glencoe gold deposit (Non-JORC Resource Estimate of 0.7Mt @ 1.9g/t gold for 43Koz gold1) ~3km to the north, through to the Klondike alluvial workings ~1.5km to the south. A potential new lode position immediately north of Fountain Head named 'NW Breccia' also lies within this trend and remains largely untested.

Importantly the Glencoe - Tally Ho - Klondike structural zone has not been drill tested away from the immediate Fountain Head deposit. The unexplored portions of this structure represent another priority target for follow-up along with the soil-covered western extension of the Fountain Head anticline which has never been explored.

1 The Glencoe Resource information has been sourced from Ahmad, M. and Munsen, T.J., (2013) Geology and Mineral Resources of Northern Territory, Pub. 5, NTGS

PNX Metals Limited | ABN 67 127 446 271

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Interpreted

Structural Zone

Banner

NW Breccia

Fountain Head

156koz Au

Tally Ho lode

Fountain Head				Gold
South-East			anomalism
	Klondike			Lady Josephine
	Alluvials			Prospect

Figure 1: Fountain Head Mineral Resource, Banner and other surface gold anomalies, and key structural zones with new target areas highlighted.

Next Steps

Field assessment of the Glencoe - Tally Ho - Klondike structural zone and the soil-covered western extension of the Fountain Head anticline is currently underway. Assay results from surface rock chip sampling over the broader Burnside area (refer PNX ASX release 9 October 2020) are expected by the end of November.

Further drilling of the Banner zone is required and the Company is planning to undertake a high-resolution aeromagnetic survey over the Fountain Head area to assist in locating follow-up drillholes.

The Company is currently working with geophysical contactors to undertake the airborne survey as quickly as possible and, weather permitting, this should occur prior to the end of the year.

Competent Person's Statement

The information in this report that relates to Exploration Results is based on information compiled by Mr Charles Nesbitt, a Competent Person who is a Member of the Australian Institute of Mining and Metallurgy (AusIMM). Mr Nesbitt has sufficient experience relevant to the style of mineralisation and the type of deposits under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Mr Nesbitt is a full- time contract Exploration Manager with PNX Metals Ltd and consents to the inclusion in this report of the matters based on his information in the form and context in which it appears

For further information please visit the Company's website www.pnxmetals.com.au,or contact us directly:

James Fox

Managing Director & CEO

Telephone: [phone]

PNX Metals Limited | ABN 67 127 446 271

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Fountain Head Resource Estimate

Independent mining consultants CSA Global Pty Ltd ("CSA Global") estimated the Mineral Resource in

accordance with the JORC Code2, which is summarised in Table 1.

Table 1: Fountain Head and Tally Ho Mineral Resources by JORC Classification as at 16 June 2020 estimated utilising a cutoff grade of >0.7 g/t Au which is consistent with the assumed open cut mining method.

	JORC Classification			Tonnage (Mt)			Au (g/t)			Ounces (Koz)
					Tally Ho
	Indicated	0.94		2.0		59
	Inferred		-			-		-
	Total	0.94		2.0		59
					Fountain Head
	Indicated	0.89		1.4		41
	Inferred	1.11		1.6		56
	Total	2.00		1.5		96
				Total Fountain Head + Tally Ho*
	Indicated	1.83		1.7		100
	Inferred	1.11		1.6		56
	Total	2.94		1.7		156

* Due to the effects of rounding, the total may not represent the sum of all components

The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and that all material assumptions and technical parameters underpinning the estimates in the relevant market announcements referenced in this release continue to apply and have not materially changed. The company confirms that the form and context in which the Competent Person's findings are presented have not been materially modified from the original market announcements

Table 2: Drillhole specifications including hole coordinates (GDA94_Zone 52) and mineralised intercepts.

	Hole ID			Type			Easting			Northing			Azi°(mag)			Dip°			EOH			From			Int (m)			Gold (g/t)
	FHRC085		RC	770,190		8,510,718		180		-60		78		54		6		39.50
	PDH41		RC	770,426		8,510,474		320		-80		92		28		1		10.88
							66		10		2.70
	PDH35		RC	770,376		8,510,485		320		-80		96		46		1		6.71
	PDH36		RC	770,376		8,510,505		320		-80		48		15		1		5.43
	PDH38		RC	770,377		8,510,544		320		-80		48		11		4		1.90
	PDH42		RC	770,426		8,510,494		320		-80		102		45		1		7.90
	TERC007		RC	771,170		8,509,516		175		-60		102		37		1		9.98
	TERC010		RC	771,228		8,509,586		177		-60		102		19		1		93.70
							42		1		22.70
	TERC011		RC	771,267		8,509,710		173		-60		102		31		1		31.90
	TERC019		RC	771,227		8,509,508		175		-60		102		92		1		5.67

2 Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. The JORC Code, 2012 Edition. Prepared by: The Joint Ore Reserves Committee of The Australasian Institute of Mining and Metallurgy, Australian Institute of Geoscientists and Minerals Council of Australia (JORC).

PNX Metals Limited | ABN 67 127 446 271

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