Sipa Resources : Warralong Exploration Update (updated)

ASX Announcement

9 December 2021

For personal use only

Warralong Exploration Update

• Assay results have been received from the two aircore drill programs completed over parts of Sipa's two granted Warralong tenements
• First pass reconnaissance drilling was designed to gather geological information from initial target areas and more broadly to enable an updated geological interpretation of the project area
• No significant gold or other metal anomalism observed across the target areas drilled to date, however it is noted that drilling over each area was restricted to a single traverse.
• Refinement of existing targets and new targets will be generated from the basement interpretation currently in progress
• Assay results from soil samples collected over an extensive area not tested by the recent drilling are expected in January.

Sipa Resources Limited (ASX: SRI) ("Sipa" or "the Company") has received assay results from aircore drilling completed in September and October at its 100% owned Warralong project in the Pilbara region of WA.

Two wide-spaced reconnaissance style aircore drill programs were completed in September and October over tenements E45/5687 and E45/5740 (ASX: SRI 20/10/2021, Figure 1). Traverses of 100m and 200m spaced holes were completed over first round targets associated with splay structures adjacent to the Lalla Rookh Shear, interpreted from the detailed aeromagnetic survey flown by Sipa in late 2020 (e.g., ASX: SRI 23/12/2020). Bottom of hole samples of fresh bedrock were collected in 291 holes, and assayed to identify potential mineralisation, and assist in building a basement geology interpretation in this area where the underlying geology is completely obscured by shallow sand cover.

No gold or other key metal (copper, nickel, lithium) mineralisation was identified in the samples. The multi- element data will now be incorporated with existing information to complete the basement geology interpretation and assist in the identification of follow up drill targets for testing in 2022. Samples from the recently completed soil sampling program are progressing through laboratory analysis with results expected in January 2022.

A number of existing drill targets along the major Lalla Rookh shear are located within ungranted tenure and will be tested in 2022 as these tenements are granted.

Unit 5, 12-20 Railway Rd Subiaco 6008 Western Australia • [phone] • [e-mail]

www.sipa.com.au

ASX: SRI

For personal use only

Figure 1: Warralong Project tenements showing the location of the completed drilling in green. Pink outlines are granted tenements and brown outlines are ungranted tenements. Lalla Rookh Shear and associated splays are indicated in black.

Competent Person's Statement

The information in this report that relates to Exploration Results is based on, and fairly represents, information and supporting documentation compiled by Mr Pip Darvall, a Member of the Australian Institute of Geoscientists. Mr Darvall is a full-time employee of Sipa Resources Limited, and has sufficient experience relevant to the styles of mineralisation and types of deposit under consideration and to the activities 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 Darvall consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.

Unit 5, 12-20 Railway Rd Subiaco 6008 Western Australia • [phone] • [e-mail]

www.sipa.com.au

About Sipa

For personal use only

Sipa Resources Limited (ASX: SRI) is an Australian-based exploration company focused on the discovery of gold and base metal deposits primarily in Western Australia. The Paterson North Copper-Gold Project is being progressed in partnership with Rio Tinto Exploration, and the Barbwire Terrace Base Metals Project involves an innovative joint venture with petroleum explorer and operator Buru Energy Limited.

At Wolfe Basin, the first drill program intersected base metals up to 2.9% Pb, and 0.5% Cu, with extensive areas remaining to be tested along a >40km long prospective horizon. The Warralong Project is prospective for intrusion hosted gold in the north Pilbara region in a 'look-alike' structural setting to recent discoveries in the district.

The Skeleton Rocks project covers outcropping and interpreted greenstone units prospective for gold and nickel-copper-platinum group element (Ni-Cu-PGE) deposits with limited to no drilling ever completed in these areas. Sipa's Murchison Project covers major structures and prospective geology in prolific greenstone belts within WA's northern goldfields.

The 100%-owned Uganda Base Metals Project contains an intrusive-hostedNi-Cu sulphide discovery with significant scale potential, and Sipa is continuing to hold discussions with potential partners to fund further exploration at this location.

This announcement has been authorised for release by the Board of Sipa Resources Limited.

More Information:

Pip Darvall, Managing Director	Victoria Humphries, Investor and Media Inquiries
Sipa Resources Limited	NWR Communications
[phone]	[phone]

[e-mail]

Unit 5, 12-20 Railway Rd Subiaco 6008 Western Australia • [phone] • [e-mail]

www.sipa.com.au

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ASX Announcement

9 December 2021

JORC Code, 2012 Edition - Table 1 report template

Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections.)

Criteria	JORC Code explanation		Commentary
Sampling	• Nature and quality of sampling (e.g., cut channels, random chips, or specific	• Aircore drilling was used to obtain 4 metre composite
techniques	specialised industry standard measurement tools appropriate to the minerals		samples.
	under investigation, such as down hole gamma sondes, or handheld XRF	• Samples of fresh basement rocks were submitted to
	instruments, etc). These examples should not be taken as limiting the broad		the laboratory for assay.
	meaning of sampling.
	• Include reference to measures taken to ensure sample representivity and the
	appropriate calibration of any measurement tools or systems used.
	• Aspects of the determination of mineralisation Material to the Public Report.
Drilling	• Drill type (e.g. core, reverse circulation, open-hole hammer, rotary air blast,	•	Aircore drilling utilised an 88mm aircore blade and
techniques	auger, Bangka, sonic, etc) and details (e.g. core diameter, triple or standard		where needed a 108mm face-sampling hammer bit.,
	tube, depth of diamond tails, face-sampling bit or other type, whether core is	• Drill holes were oriented vertically.
	oriented and if so, by what method, etc).
Drill sample	• Method of recording and assessing sample recoveries and results.	•	The quality of drill samples (wet, damp, dry) was
recovery	• Measures taken to maximise sample recovery and ensure representative nature		recorded by the supervising geologist with a visual
	of the samples.		estimate of the quantity of sample. All the samples
	• Whether a relationship exists between sample recovery and grade and whether		were dry.
	sample bias may have occurred due to preferential loss/gain of fine/coarse	• No relationship was identified between sample
	material.		recovery and grade.
Logging	• Whether core and chip samples have been geologically and geotechnically	• The entirety of all drill holes was geologically logged by
	logged to a level of detail to support appropriate Mineral Resource estimation,		the supervising geologist electronically, with chip trays
	mining studies and metallurgical studies.		preserved for future review.
	• Whether logging is qualitative or quantitative in nature.
	• The total length and percentage of the relevant intersections logged.

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Sub-sampling	• If core, whether cut or sawn and whether quarter, half or all core taken.
techniques	• If non-core, split type, and whether sampled wet or dry.
and sample	• For all sample types, the nature, quality and appropriateness of the sample
preparation	preparation technique.
	• Quality control procedures adopted for all sub-sampling stages to maximise
	representivity of samples.
	• Measures to ensure that the sampling is representative of the in-situ material
	collected, including for instance results for field duplicate/second-half sampling.
	• Whether sample sizes are appropriate to the grain size of the material sampled.

• 4 metre composite samples were obtained via a ~10% split from a fixed cone splitter. The sample size is appropriate to the grain size.

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	Criteria		JORC Code explanation			Commentary
	Quality of	• The nature, quality and appropriateness of the assaying and laboratory		•	49 element assays were completed by ALS
	assay data	procedures used and whether the technique is considered partial or total.			Laboratories, Perth. Gold via fire assay and ICP-AES
	and	• For geophysical tools, spectrometers, handheld XRF instruments, etc, the			other elements using a four-acid digest from a 25g
	laboratory	parameters used in determining the analysis including instrument make and			sub-sample, and ICP-MS.
	tests	model, reading times, calibrations factors applied and their derivation, etc.		•	Lab internal blanks and standards were within
			• Nature of quality control procedures adopted (e.g. standards, blanks, duplicates,			accepted norms.
			external laboratory checks) and whether acceptable levels of accuracy (i.e. lack
			of bias) and precision have been established.
	Verification	• The verification of significant intersections by either independent or alternative		•	No significant intersections were observed.
	of sampling	company personnel.		•	No twinned holes were drilled.
	and assaying	• The use of twinned holes.		•	Data entry is checked by the geologist and by the
			• Documentation of primary data, data entry procedures, data verification, data			supervising geologist. A second geologist verified the
			storage (physical and electronic) protocols.			lithological assessments of the supervising geologist.
			• Discuss any adjustment to assay data.		•	Assay results have not been adjusted.
	Location of	• Accuracy and quality of surveys used to locate drill holes (collar and down-hole		•	Drill hole collar locations were located via a hand-held
	data points	surveys), trenches, mine workings and other locations used in Mineral Resource			GPS with approximate accuracy of +/- 3m in eastings
			estimation.			and northings, and +/- 5m in RL.
			• Specification of the grid system used.		•	Downhole surveys were not completed
			• Quality and adequacy of topographic control.		•	Grid system used is GDA2020 Zone 50.
	Data spacing	• Data spacing for reporting of Exploration Results.		•	Drill hole locations were designed to test targets
	and	• Whether the data spacing and distribution is sufficient to establish the degree of		•	generated from a detailed aeromagnetic survey
	distribution	geological and grade continuity appropriate for the Mineral Resource and Ore		Samples across intervals of interest were submitted in
			Reserve estimation procedure(s) and classifications applied.			4m increments.
			• Whether sample compositing has been applied.
	Orientation of	• Whether the orientation of sampling achieves unbiased sampling of possible		•	All holes were drilled vertically to intersect fresh
	data in	structures and the extent to which this is known, considering the deposit type.			basement rocks as shallowly as possible.
	relation to	• If the relationship between the drilling orientation and the orientation of key
	geological	mineralised structures is considered to have introduced a sampling bias, this
	structure	should be assessed and reported if material.
	Sample	• The measures taken to ensure sample security.		•	Samples were sent via 3rd party contractor in sealed,
	security				uniquely numbered bags direct to the laboratory.
	Audits or	• The results of any audits or reviews of sampling techniques and data.		•	No audits done.
	reviews