Shree Minerals : Exploration Update Lachlan Fold Belt Project, Rock Lodge

SHREE MINERALS LTD

Exploration Update Lachlan Fold Belt Project, Rock Lodge

ASX Announcement 26th April 2022

• • RC drilling completed at Rock Lodge.

• • Program comprised 15 angled holes for 869 m.

• • RC drilling tested coincident IP chargeability anomalies and gold arsenic bismuth soil anomalies.

• • Assays are expected over next few weeks.

  ASX Code SHH

  ACN 130 618 683

• • Current Drilling campaign suspended following notices issued by the Resources Regulator, within the Department of Regional NSW.

  COMPANY DIRECTORS

• • Planned Deeper Diamond drilling to test projected down-dip extensions to the extensive sulphide mineralisation to commence after resolution of Statutory issues

Sanjay Loyalka

Shree Minerals Ltd ("Shree" or the "Company") advises that RC drilling at the

Director and Company Secretary

Rock Lodge project (EL 9155) in Lachlan Fold Belt Project, NSW has been completed. Samples have been despatched to the laboratory in Orange and results will be compiled once the assays have been received.

Amu Shah

Non-Executive Director

The Rock Lodge Project covers an area of 163 km² and is located 35 km south of Cooma, figure 1. It is prospective for orogenic, Intrusion Related Gold Systems (IRGS) and skarn related gold mineralisation.

Davide Bosio

Non-Executive Director

CONTACT DETAILS

Principal & Registered Office

Unit 38

18 Stirling Highway NEDLANDS WA 6009

www.shreeminerals.com

T [phone]

[e-mail]

Figure 1: The location of Shree's tenements in Lachlan Fold Belt

SHREE MINERALS LIMITED | ACN 130 618 683www.shreeminerals.com

15 RC Drill holes have been completed in this campaign for a total of 869 metres including two holes as pre-collars for planned deeper diamond drilling. Figure 2 shows the drill hole locations. Assays from the laboratory are expected over coming weeks. Details of Shree's completed RC drill holes and diamond hole pre-collars are tabulated in Appendix 1.

Figure 2. Summary plan showing locations of previous drilling completed Shree RC and pre- collars for planned deeper diamond holes and IP anomalies.

Geological mapping observations undertaken in April identified a significant alteration halo in both the footwall and hangingwall to the historical base metal intersections illustrated in figure 3. The alteration comprises pervasive silicification with accompanying euhedral fine-grained pyrite that increases in intensity closer to the base metal sulphide veins. A significant foliation in the local area also increases in intensity towards the mineralisation, with shear fabrics common.

Drilling at Rock Lodge has been impacted by continuing unprecedented rainfall on the east coast of Australia causing significant interruptions and lost time. Supply chains were also impacted due to COVID-19 and significant breaks in drilling were due to a lack of replacement personnel. The impact of these events also led to drilling rig maintenance and downtime issues. The cumulative impact was that commencement of drilling this year planned for end January was initially delayed by approximately a month and drilling progress has been very slow.

The Company has received notification from the Resources Regulator, within the Department of Regional NSW (the Department) following an inspection of EL 9155 to monitor compliance with the approval conditions. The Department referred to the approval made by it in October 2021 to the application made by the Company in September 2021 to drill up to 25 reverse circulation drillholes on EL 9155. The approval stated, "The licence holder must carry out the Activity in accordance with the Application". The notification from the Department included an investigation commencement letter in relation to a number of breaches Under section 23A (7) of the Mining Act 1992 and potential breaches of the National Parks & Wildlife Act 1974, the Regulator is alleging regarding access works to the drill sites conducted and furthermore, a direction under s.240 of the NSW Mining Act 1992 to cease all works until the Company has been notified that the direction has been revoked. Accordingly, drilling operations have been suspended. The Company takes its statutory compliance obligations very seriously. On behalf of the Company, the access works as well as the drilling activities were being carried out under supervision and management of a local Consulting Geological & Exploration services company who were fully aware of all approval conditions. The Company will work diligently with the

Department & the Company's consultants and contractors involved in the activity to resolve the

issues.

Once the statutory issues are resolved, the Company plans to commence the planned two deeper diamond drill holes and Down Hole Electro Magnetic Surveys (DHEM) to search for off-hole conductors, possibly representing wider massive sulphide mineralisation than has already been found. Diamond drilling by Shree will focus upon the projected down-dip extensions to the extensive sulphide mineralisation discussed above, illustrated in Figure 3.

Figure 3. Historical drilling cross section and the

proposed diamond drilling along section C - C'.

Background

The Rock Lodge prospect exhibits high-grade polymetallic mineralisation associated with structurally controlled epigenetic massive sulphide veins, figure 3 & 4. Diamond holes drilled in 1985 intersected up to 8m of massive sulphide with recorded grades up to 4.28g/t Au, 35g/t Ag, 0.79% Cu and 13.5% Zinc. Diamond hole SGDH08 intersected 12m @ 1.2 g/t Au, 9.8 g/t Ag and 0.2% Cu. The mineralisation is associated with massive and disseminated pyrite‐arsenopyrite‐chalcopyrite‐sphalerite sulphides and quartz, within host

phyllites and sandstone. This is exposed on the surface as a distinct gossan and ironstone.

The grades intercepted during historical drilling show the area to be highly mineralised and the mineral assemblages are synonymous with other major mineral deposits within the Canberra to Cooma region of the Ordovician Lachlan Fold Belt.

Areas of old workings coincide with an IP chargeability anomaly sourced by the pyrite halo. Rock chip samples of gossanous material and quartz veins collected by Shree returned a best result of 7.3g/t Au with 6049ppm As and 446ppm Bi. RC drilling tested those extensive and continuous IP anomalies that are also coincident with very anomalous soil and rock chip geochemistry.

Figure 4. Cross section B-B' at Rock Lodge, illustrating the significant polymetallic mineralisation intersected in historical drilling.

Other Target Areas within Rock Lodge EL 9155

The Rock Lodge Project (EL 9155) covers a folded sequence of Ordovician aged Adaminaby Group shales/siltstones and Gungoandra Siltstones (Figure 5). The historical workings at Bobundara have a recorded production of 575g Au with an average grade of 21 g/t Au (Herzberger and Barnes, 1978). Mining occurred during two periods from 1928-30 and 1948-49. The mineralisation occurs as disseminated sulphide minerals in a narrow, discontinuous quartz-chlorite lode parallel to the host slates' cleavage. The workings consist of 3 or 4 shafts, an adit and shallow pits. There has been no recorded drilling at Bobundara.

Shree intends to undertake additional sampling and mapping at Bobundara, including soil and rock chip sampling along strike of the main workings. This work should lead to the identification of new drill targets, in preparation for a RC drilling program later in 2022.

Figure 5. Regional geology and mineral occurrences within Rock Lodge EL 9155.

IRGS Models.

The gold, bismuth and copper mineralisation at Rock Lodge is interpreted to have affinity with the Intrusion Related Gold System (IRGS) style of mineralisation. There is potential at depth for bulk tonnage gold mineralisation associated with an intrusion. Characteristic features of IRGS mineralisation include sheeted veins containing gold with elevated bismuth, arsenic, silver, copper, lead, zinc and tin. The systems are commonly geochemically zoned around a central intrusion. They can also have elevated sulphide which can be detected with induced polarisation (resistivity lows). Many of these features are present at Rock Lodge.

The multiple veins at Rock Lodge may represent the upper zone of a mineralised system above an intrusion at depth, with bulk tonnage potential (Figure 6). Planned drilling will initially target the shallow veins but pending results deeper drilling is planned to test for an interpreted source intrusion at depth. Several Silurian and Devonian aged intrusions have been mapped in the Rock Lodge area by the NSW Geological Survey

Figure 6: Diagrammatic figure of the Intrusion Related Gold System model at Rock Lodge