Rimfire Pacific Mining (ASX: RIM, 'Rimfire' or the 'Company') advises that shallow drilling at the Melrose prospect has returned strongly anomalous levels of nickel, cobalt, and scandium from multiple drill holes.

Melrose lies within the Avondale Project, which is located within the highly prospective Lachlan Orogen of central New South Wales.

Sixteen vertical aircore holes (FI2163 to FI2178 - 484 metres) were drilled every 50 to 100 metres on three 100 metre - spaced traverses to further test a 'bullseye' magnetic anomaly at Melrose that previous reconnaissance drilling by Rimfire (in 2018 - FI0835 to FI0886) had shown to be coincident with an ultramafic rock unit.

The latest drilling successfully intersected the laterised / weathered ultramafic intrusive unit which is fault - bounded against a granite to east and volcaniclastic sediments to the west. Geochemical analysis of 3 metre composite drill samples returned strongly anomalous nickel (Ni), cobalt (Co) and scandium (Sc) from a flat lying ferruginous zone that is developed over the ultramafic unit and remains open along strike and to the west.

Anomalous copper (up to 1,670ppm in a single 3 - metre composite sample in Fi2173) was also observed on the both the eastern and western margins of the ultramafic. The results from Rimfire's drilling at Melrose compare favorably to (with scandium grades exceeding) recent drill results announced by Sunrise Energy Metals Limited (ASX: SRL) at their nearby Sunrise East prospect.

Rimfire will also re-analyse a number of the aircore samples for Platinum Group Elements (PGE's) given that anomalous levels of PGE's were also noted in drillhole SDD029 at Sunrise East. Regionally the Melrose prospect is one of 20+ priority exploration targets at Avondale that lie within a 40-kilometre-long belt of underexplored intermediate volcaniclastics, sediments and ultramafic intrusive units that occurs within a geologically significant regional - scale structure called the 'Steeton Ultramafic Suture Zone' (SUSZ).

The exploration targets are prospective for the discovery of nickel, cobalt, scandium, and platinum group elements (PGE's) associated with ultramafic host rocks, and range variously from untested magnetic anomalies (interpreted to represent previously unrecognised ultramafic occurrences) to confirmed ultramafic occurrences with historic drill intercepts (i.e., Melrose, Currajong, and Kara Kara.

As announced last week, Rimfire's exploration strategy at Avondale aims to discover highvalue critical minerals within the SUSZ and the Company has initiated a major exploration program to assess the targets (RIM ASX Announcement: 28 March 2022 - Critical Minerals Discovery Opportunity driving Exploration Strategy at the Avondale Project, NSW). In addition to Melrose, aircore drill programs are currently underway at the Currajong, and Kara Kara prospects (RIM ASX Announcement: 7 February 2022 - Drilling Update - Platinum, Cobalt, Gold and Copper).

At Currajong 62 aircore holes (1,689 metres) were drilled and 666 drill samples have been submitted to ALS Orange for multi element analysis with results expected in the coming weeks. At Kara Kara 59 holes of a 100 - hole aircore program have been drilled to date.

The remaining holes will be completed in April, following which all drill samples will be submitted for analysis. In addition, the Company will be shortly commencing geological mapping and soil sampling over the remaining exploration targets.

All exploration work at the Avondale Project is fully funded by Rimfire's exploration partner - Golden Plains Resources (GPR) who recently confirmed their ongoing financial support with another $1.5M committed to discovery work over the next 12 months (RIM ASX Announcement: 14 March 2022 - Rimfire's Exploration Partner Commits to Year 2 of Avondale Earn-in ).

Management Comment

Commenting on the announcement, Rimfire's Executive Director Mr David Hutton said he was excited by the strong nickel cobalt scandium drill results which highlight the prospectivity of the Steeton Ultramafic Suture Zone and reinforces the Company's new critical minerals exploration strategy. 'I am also intrigued by the copper at Melrose which could be indicative of primary sulphide mineralisation at depth. The lack of deep drilling throughout the area creates a significant exploration opportunity for Rimfire and with further assay results expected in the coming weeks, the Company and looks forward to providing the market with further updates as new information comes to hand'.

Critical Minerals

The Australian and United States Governments identify critical minerals as metals, non-metals and minerals that are considered vital for the economic well-being of the world's major and emerging economies, yet whose supply may be at risk due to geological scarcity, geopolitical issues, trade policy or other factors.

The critical minerals include Antimony, Beryllium, Bismuth, Chromium, Cobalt, Graphite, Lithium, Magnesium, Manganese, Nickel Niobium, Platinum Group Elements, Rare Earth Elements, Rhenium, Scandium, Titanium/Zirconium, Tungsten, Vanadium and Zirconium The Platinum Group Elements (PGE's) comprise iridium, osmium, palladium, platinum, rhodium, and ruthenium.

Critical minerals are required for the manufacture of solar PV plants, wind farms, electric vehicles, and battery storage. Additionally advanced manufacturing, defence, renewable energy, and medical devices has increased demand for critical minerals as building blocks for new products. For further information, refer to the Australian Government's Australian Critical Minerals Prospectus 2021, (December 2021: Australian Critical Minerals Prospectus).

Contact:

David Hutton

Tel: +61 41 797 4843

About Rimfire

Rimfire Pacific Mining Ltd (ASX: RIM) is an ASX-listed exploration company focused on projects in the Lachlan Fold Belt in central NSW and Broken Hill NSW. The company has a track record of successful exploration and asset monetisation through partnership agreements.

Forward looking statements Disclaimer

This document contains 'forward looking statements' as defined or implied in common law and within the meaning of the Corporations Law. Such forward looking statements may include, without limitation, (1) estimates of future capital expenditure; (2) estimates of future cash costs; (3) statements regarding future exploration results and goals. Where the Company or any of its officers or Directors or representatives expresses an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and the Company or its officers or Directors or representatives as the case may be, believe to have a reasonable basis for implying such an expectation or belief. However, forward looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by such forward looking statements. Such risks include, but are not limited to, commodity price fluctuation, currency fluctuation, political and operational risks, governmental regulations and judicial outcomes, financial markets and availability of key personnel. The Company does not undertake any obligation to publicly release revisions to any 'forward looking statement'

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