Queensland Pacific Metals : First 4N HPA made from New Caledonia Ore

ASX ANNOUNCEMENT

18 JANUARY 2022

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First 4N HPA Production for QPM from New Caledonian Ore

Highlights

• Lab scale testwork undertaken by Lava Blue successfully produces 99.996% HPA from aluminium hydroxide feedstock produced by QPM in its pilot plant.
• This represents the first major milestone in the QPM - Lava Blue working relationship post execution of the HPA license heads of agreement.
• Successful HPA production provides QPM with the confidence to proceed with further testwork and the HPA section of the Defintive Feasibility Study for the TECH Project.

Queensland Pacific Metals Ltd (ASX:QPM) ("QPM" or "the Company") is pleased to announce that lab scale testwork undertaken by Lava Blue has successfully produced 4N High Purity Alumina ("HPA") from aluminium hydroxide feedstock produced by QPM as part of its piloting of the DNi ProcessTM on New Caledonian ore. The purity of the HPA was 99.996%.

In December 2021, QPM executed a License Heads of Agreement with Lava Blue regarding the use of its propriertary HPA technology for the TECH Project. One of the key early workstreams in this partnership was the successful production of HPA from QPM's aluminium hydroxide feedstock. The success of this testwork provides QPM with the confidence to commence the next phase of testwork and to finalise the appointment of Stantec (formerly known as Engenium), Lava Blue's preferred engineering consultant, to undertake the HPA refinery section of the TECH Project Definitive Feasibility Study ("DFS") in conjunction with Hatch (QPM's engineering partner).

Testwork

QPM's pilot plant operation produced intermediate aluminium hydroxide from New Caledonian ore. Previous testwork undertaken by QPM was successful in producing high purity aluminium chloride, the final precursor to HPA. Aluminium chloride produced by QPM was sent to Lava Blue for testwork at its Queensland University of Technology ("QUT") laboratory.

Lava Blue's work program was to:

• Confirm that 4N HPA could be successfully produced from QPM's aluminium chloride precursor by assaying impurities;
• Produce 4N HPA from the aluminium chloride.

Lava Blue's testwork confirmed that QPM's aluminium chloride was very pure. From the assay results of QPM's aluminium chloride, Lava Blue projected HPA purity to be in the range of 99.995 - 99.998%, giving it confidence to proceed with the second part of the work program.

To produce HPA, the aluminium chloride samples were calcined to ~800°C in batches to yield transitional

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alumina. The samples yielded from this process were then combined and homogenised. The next step was to take the homogenised transitional alumina and convert it to a final HPA product by a second heating stage to above 1150°C. Assaying this final product in the QUT HPA laboratory resulted in a purity of 99.996%, in line with Lava Blue's projections.

The next step for QPM in the HPA work program is to now prepare for further testwork including piloting at Lava Blue's demonstration plant, which is nearing completion, and to commission DFS activities on HPA. QPM will imminently finalise the appointment of Stantec and the HPA DFS workstream will be able to be completed in line with the rest of the TECH Project DFS.

QPM Managing Director Dr Stephen Grocott commented,

"We have now successfully produced the four key materials from New Caledonian laterite ore - nickel, cobalt, hematite and HPA. Maximising the underlying value of the feedstock ore is a key focus of QPM and in line with its goal of being a global leader in sustainability. We are delighted with the progress Lava Blue have made to date and are excited at the long term future of our partnership.

This announcement has been authorised for release by the Board.

Competent Persons Statement

Information in this announcement relating to the processing and metallurgy (including the JORC table in Annexure) is based on technical data compiled by Mr Boyd Willis, an Independent Consultant trading as Boyd Willis Hydromet Consulting (BWHC). Mr Willis is a Fellow and Chartered Professional of The Australasian Institute of Mining and Metallurgy (AusIMM). Mr Willis has sufficient experience which is relevant to metal recovery from the style of mineralisation and type of deposits in New Caledonia where the ore will be sourced (from third parties pursuant to an ore supply agreement) and to the activity which they are undertaking to qualify as a Competent Person under the 2012 Edition of the 'Australasian Code for reporting of Exploration Results, Mineral Resources and Ore Reserves'. This includes over 25 years of experience in metal recovery from Laterite ores. Mr Willis consents to the inclusion of the technical data in the form and context in which it appears.

ASX: QPM | ACN:125 368 658

For Further Info: P: [phone] | E: [e-mail] | W: www.qpmetals.com.au

Contact: Dr Stephen Grocott, MD & CEO | Address: Level 17, 307 Queens St, Brisbane Q 4000

FORWARD LOOKING STATEMENT Statements & material contained in this ASX Release, particularly those regarding possible or assumed future performance, production levels or rates, commodity prices, resources or potential growth of QPM, industry growth or other trend projections are, or may be, forward looking statements. Such statements relate to future events & expectations and, as such, involve known and unknown risks & uncertainties. Although reasonable care has been taken to ensure facts stated in this Release are accurate and/or that the opinions expressed are fair & reasonable, no reliance can be placed for any purpose whatsoever on the information contained in this document or on its completeness. Actual results & developments may differ materially from those expressed or implied by these forward-looking statements depending on a variety of factors. Nothing in this Release should be construed as either an offer to sell or a solicitation of an offer to buy or sell shares in any jurisdiction.

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ANNEXURE - JORC TABLES

1.1 Section 1 Sampling Techniques and Data

Criteria		JORC Code explanation		Commentary
Sampling		• Nature and quality of sampling (e.g. cut		•	The laterite ore sample for leaching is a grab
techniques		channels, random chips, or specific			sample sourced from a shipping stockpile by
		specialised industry standard			laterite supplier SMT in New Caledonia.
		measurement tools appropriate to the
			•	The ore sample grade was requested by
		minerals under investigation, such as down
				QPM to be indicative of the specification
		hole gamma sondes, or handheld XRF
				required under the terms outlined an ore
		instruments, etc). These examples should
		not be taken as limiting the broad meaning			supply MoU between QPM, SMT and
		of sampling.			SMGM. It did not need to be representative
		• Include reference to measures taken to			of any specific location and is not
		ensure sample representivity and the			considered to be an in situ sample.
		appropriate calibration of any
			•	The intermediate aluminium-containing
		measurement tools or systems used.
				product was sub-sampled from the pilot
		• Aspects of the determination of
				plant runs. This subsample was processed
		mineralisation that are Material to the
		Public Report.			through to aluminium chloride hexahydrate
		• In cases where 'industry standard' work			(ACH)
		has been done this would be relatively	•	The intermediate ACH sample was packed
		simple (eg 'reverse circulation drilling was			into sealed plastic bags and sent to Lava
		used to obtain 1 m samples from which 3
				Blue for processing through to HPA.
		kg was pulverised to produce a 30 g charge
		for fire assay'). In other cases more
		explanation may be required, such as
		where there is coarse gold that has
		inherent sampling problems. Unusual
		commodities or mineralisation types (eg
		submarine nodules) may warrant
		disclosure of detailed information.
Drilling		• Drill type (e.g. core, reverse circulation,		•	No exploration drilling was undertaken
techniques		open-hole hammer, rotary air blast, auger,
		Bangka, sonic, etc) and details (e.g. core
		diameter, triple or standard tube, depth of
		diamond tails, face-sampling bit or other
		type, whether core is oriented and if so, by
		what method, etc).
Drill sample		• Method of recording and assessing core		•	No exploration drilling was undertaken
recovery		and chip sample recoveries and results
		assessed.
		• Measures taken to maximise sample
		recovery and ensure representative nature
		of the samples.
		• Whether a relationship exists between
		sample recovery and grade and whether
		sample bias may have occurred due to
		preferential loss/gain of fine/coarse
		material.
Logging		• Whether core and chip samples have been		•	No exploration drilling or logging was
		geologically and geotechnically logged to a			undertaken
		level of detail to support appropriate
		Mineral Resource estimation, mining
		studies and metallurgical studies.

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	Criteria	JORC Code explanation	Commentary
only		• Whether logging is qualitative or
	quantitative in nature. Core (or costean,
	channel, etc) photography.
		• The total length and percentage of the
		relevant intersections logged.
	Sub-	• If core, whether cut or sawn and whether	•	All samples of HPA product made in the
	sampling	quarter, half or all core taken.		testwork were recombined and
	techniques	• If non-core, whether riffled, tube sampled,		homogenised before the final analysis
	and sample	rotary split, etc and whether sampled wet
		samples were taken.
	preparation	or dry.
	•	This work was undertaken in the QUT
use		• For all sample types, the nature, quality
		laboratory which is dedicated to HPA
	and appropriateness of the sample
	preparation technique.		testwork.
	• Quality control procedures adopted for all
	sub-sampling stages to maximise
	representivity of samples.
	• Measures taken to ensure that the
	sampling is representative of the in situ
	material collected, including for instance
personal		results for field duplicate/second-half
	sampling.		laboratory which is dedicated to HPA
	whether acceptable levels of accuracy (i.e.
		• Whether sample sizes are appropriate to
		the grain size of the material being
		sampled.
	Quality of	• The nature, quality and appropriateness of	•	HPA samples were prepared for analysis by a
	assay data	the assaying and laboratory procedures		total digestion procedure. Samples were
	and	used and whether the technique is		digested in sulfuric acid. The digest was then
	laboratory	considered partial or total.		quantitatively transferred to a digestion tube
	tests	• For geophysical tools, spectrometers,		and made up to volume with ultrapure
		handheld XRF instruments, etc, the
			water.
		parameters used in determining the
		analysis including instrument make and	•	Triplicate analysis of the HPA samples were
		model, reading times, calibrations factors		performed to ensure accuracy and control.
		applied and their derivation, etc.	•	The samples were assayed using a
		• Nature of quality control procedures		combination of ICP-OES and ICP-MS.
		adopted (e.g. standards, blanks,
		•	This work was undertaken in the QUT
		duplicates, external laboratory checks) and
For		lack of bias) and precision have been		testwork.
	established.
Verification	• The verification of significant intersections	•	No exploration drilling or sampling was
of sampling	by either independent or alternative		undertaken
and	company personnel.
assaying	• The use of twinned holes.
	• Documentation of primary data, data entry
	procedures, data verification, data storage
		(physical and electronic) protocols.
		• Discuss any adjustment to assay data.
	Location of	• Accuracy and quality of surveys used to	•	No exploration drilling was undertaken
	data points	locate drill holes (collar and down-hole
		surveys), trenches, mine workings and
		other locations used in Mineral Resource
		estimation.
		• Specification of the grid system used.
		• Quality and adequacy of topographic

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Criteria	JORC Code explanation	Commentary
	control.
Data	• Data spacing for reporting of Exploration	• No exploration drilling was undertaken.
spacing	Results.
and	• Whether the data spacing and distribution
distribution	is sufficient to establish the degree of
	geological and grade continuity
	appropriate for the Mineral Resource and
	Ore Reserve estimation procedure(s) and
	classifications applied.
	• Whether sample compositing has been
	applied.
Orientation	• Whether the orientation of sampling	• No exploration drilling was undertaken.
of data in	achieves unbiased sampling of possible
relation to	structures and the extent to which this is
geological	known, considering the deposit type.
structure	• If the relationship between the drilling
	orientation and the orientation of key
	mineralised structures is considered to
	have introduced a sampling bias, this
	should be assessed and reported if
	material.
Sample	• The measures taken to ensure sample	• The ACH sample was collected, secured and
security	security.	sent in closed plastic bags via either a
		registered transport company, or were hand
		delivered directly to the laboratory.
		• The HPA sampling work was all undertaken in
		the QUT laboratory, which is secure and only
		accessed by accredited workers.
Audits or	• The results of any audits or reviews of	• No external audits have been completed.
reviews	sampling techniques and data.

1.2 Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section.)

Criteria	JORC Code explanation	Commentary
Mineral	• Type, reference name/number, location	•	Not Applicable
tenement and	and ownership including agreements or	• Sample was sourced from third party
land tenure	material issues with third parties such as		supplier SMT in New Caledonia.
status	joint ventures, partnerships, overriding
	royalties, native title interests, historical
	sites, wilderness or national park and
	environmental settings.
	• The security of the tenure held at the
	time of reporting along with any known
	impediments to obtaining a licence to
	operate in the area.
Exploration	• Acknowledgment and appraisal of	•	Not Applicable
done by other	exploration by other parties.
parties
Geology	• Deposit type, geological setting and style	•	Not Applicable.
	of mineralisation.
Drill hole	• A summary of all information material to	• No exploration drilling or sampling was
Information	the understanding of the exploration		undertaken.