Rox Resources : MACA Interquip appointed to advance metallurgical testwork

ASX ANNOUNCEMENT

12 April 2022

RRL1816D

ROX RESOURCES LIMITED

ASX: RXL

Rox Resources Limited (ASX: RXL) is an Australian listed company with advanced gold projects in Western Australia: the Youanmi Gold Project and the Mt Fisher Gold project.

DIRECTORS

Mr Stephen Dennis Chairman

Mr Alex Passmore Managing Director

Dr John Mair Non-Executive Director

Shares on Issue 168.9m

Share Price $0.39

Market Cap. $65.9m

Cash $9.6m

(pro-forma 31 Dec 2021 + $4m capital raising (exc. costs) completed in March 2022)

Level 2, 87 Colin Street, West Perth WA 6005 [phone]

Follow Rox:

MACA Interquip appointed to advance Youanmi metallurgical testwork to feasibility level

Highlights:

• • MACA Interquip has recently been appointed to complete feasibility study level metallurgical testwork for both Youanmi underground and open pit resources.

• • Workflows are being managed by an experienced and high-performance team at MACA Interquip including Mr Damien Krebs who is highly regarded for his skills and experience in the field of metallurgical process development.

• • MACA Interquip has also been appointed to complete design and costing of a dual-purpose processing plant to scoping level accuracy.

___________________________________________________________

Western Australian focused gold exploration and development company, Rox Resources Limited ("Rox" or "the Company") (ASX: RXL), in conjunction with its joint venture partner Venus Metals Corporation Limited (ASX: VMC) is pleased to announce the appointment of MACA Interquip to conduct the next round of metallurgical testwork (to feasibility level) on the Youanmi Deeps and Near Surface Resources, located within the OYG JV area (Rox 70% and Manager, VMC 30%). MACA Interquip have also been engaged to produce scoping level study design and costing for various processing plant options under consideration, with a view to recommend a process to be incorporated into the mine feasibility study.

Managing Director Alex Passmore commented:

"2021 was a successful year with respect to completing scoping level metallurgical testwork on the Youanmi Underground (Deeps) Resource (ASX release 6 October 2021, and ASX release 23 December 2021) proving that the Youanmi sulphide mineralisation can achieve very high extraction rates through various methods. Mine planning has also progressed to a stage where we now understand that free milling pit feed will likely make up 60 to 70 percent of the total feed tonnes allowing larger processing plant options to be considered and reducing the percentage of sulphide material in the total feed. Our plan includes a dual-purpose plant for oxide and sulphide feed material, which is now included in the scope for processing plant design and costing."

1

Key understandings from 2021 Deeps Resource metallurgical testwork are presented in Figure 1 below. The testwork provides confidence that a modest portion of gold in mineralisation resides in arsenopyrite, and pyrite minerals. More detailed metallurgical testwork has commenced on various mineralisation domains.

Figure 1: Pie chart showing approximate gold deportment proportions for Youanmi underground material (makes up around 30% to 40% of total feed in LOM).

Dual-purpose Processing Plant

Conceptual Life of Mine (LOM) mine plans have so far indicated that

- around 60% to 70% of mill feed tonnes in the LOM will be sourced from open pits which are made up of oxide material from which gold can be extracted efficiently via the standard and widely used CIL extraction process.

-the remaining 30% to 40% of mill feed tonnes in the LOM will be sourced from underground sulphide materials which can be simply extracted via use of a conventional flotation circuit producing a gold concentrate achieving Au metal extraction rates of over 91% (refer ASX announcements 6 October 2021 and 23 December 2021)

ROX RESOURCES LIMITED	2	ASX CODE: RXL
Level 2, 87 Colin Street,
West Perth WA 6005	E:[e-mail]
[phone]	www.roxresources.com.au

Table 1: Underground Ore Flotation Results Summary showing high recovery to a concentrate. Note the Youanmi concentrate is relatively low in Arsenic content for a gold concentrate at ~ 2% As. (1)

These simple and widely used processes provide the basis fora dual-purpose processing plant flow sheet being adopted in the next phase of scoping level design and costing work. Mineralisation will be campaigned exclusively with either underground or open pit mineralisation. A concentrate will be produced from the underground mineralisation only which will undergo further treatment for gold recovery. The sulphide concentrate treatment circuit will be sized to operate all year round to reduce capital cost and provide operational stability.

(1)Refer ASX announcements released on the ASX 6 October 2021 and 23 December 2021

ROX RESOURCES LIMITED	ASX CODE: RXL
Level 2, 87 Colin Street,
West Perth WA 6005	E:[e-mail]
[phone]	www.roxresources.com.au

Figure 2: Campaigning of different mineralisation types though a dual purpose process plant design.

In the underground sulphide part of the flowsheet, which initially makes a gold concentrate, there are several options under consideration which once evaluated to scoping level accuracy will be incorporated into various trade off studies in order to determine the most suitable method based on various constraints applied.

The major cost drivers identified for each process include:

• • for pre-treatment - ultra fine grind capex and power costs;

• • for oxygen - capex for oxygen plant and electrical power consumption;

• • for tankage - capex for tankage and opex for corrosion, agitator power; and

• • for Neutralisation - costs driven by degree of sulphur oxidation, and conditioning stage needed for partial oxidation.

Revenue drivers are based mainly on the extent of Au extraction.

ROX RESOURCES LIMITED	ASX CODE: RXL
Level 2, 87 Colin Street,
West Perth WA 6005	E:[e-mail]
[phone]	www.roxresources.com.au

Figure 3: Three-dimensional view of conceptual first draft pit designs, draft underground mine design,

and drill samples used to make up metallurgical samples for next stage of test work (a total of 60 diamond drill holes and 6 RC holes over various domain intervals).

Figure 4: Diagram showing conceptual open pit RC and diamond drill holes planned for use in open pit metallurgical testwork overlaid with first draft pit designs.

ROX RESOURCES LIMITED	5	ASX CODE: RXL
Level 2, 87 Colin Street,
West Perth WA 6005	E:[e-mail]
[phone]	www.roxresources.com.au