The Board of Sky Metals Limited provided an update on exploration activities at the 3KEL Tin-Polymetallic Target at the Doradilla Tin-Polymetallic project in NSW. 3KDD014 is the second hole drilled in the most recent drilling program at the Doradilla Project and assays for 3KDD014 have now been received. 3KDD014 was drilled to test depth extensions to the 3KEL Target under 3KRCD007.

3KDD014 confirmed the extension of tin mineralisation to over 120m depth, with results including: 3KDD014: 18.2m @ 0.16% tin from 150.8m including, 4.2m @ 0.38% tin from 150.8m; and 14.5m @ 0.13% tin from 175.5m. These results highlight the continuity of the 3KEL Target at depth. Due to the large strike of the 3KEL Target and the sparse drilling that has been completed to date, the potential of extending the tin mineralisation at depth remains largely unknown for the majority of the 2.5km strike, representing a large target area for further drilling to expand the 3KEL Target.

The next planned hole at 3KEL, 3KDD016, will be drilled to target depth extensions under 3KRC012, results included: 3KRC012: 37m @ 0.31% tin from 91m including, 1m @ 4.23% Sn & 0.20% Cu from 121m:and 15m @ 0.16% tin from 69m. Drilling has also been completed on a third hole, 3KDD015, to further extend the strike to the southwest and test under a historic aircore drillhole which intercepted 42m @ 1.02% tin from 0m (3KAC020). This hole is over 200m along strike from any previous drilling by SKY and aims to increase the established and extensive strike at 3KEL - assays are pending.

Diamond drilling is still currently suspended due to flooding in the Project area, however, drilling will recommence as soon as conditions allow. Planning for a large infill RC program has continued with RC drilling contractors arranged to mobilise to the 3KEL Target in late February to begin the program. When drilling recommences, drillholes 3KRC005, 6 and 8 will be redrilled as these holes failed to reach the target depth in the previous program due to poor drilling conditions.

Figure 3 shows the pierce point in yellow of the other holes planned in the ongoing diamond drilling program to expand the 3KEL Target. A large diameter hole is also planned to be drilled in the proximity of 3KRCD007 and 3KDD014 to provide sample for metallurgical test work over the next few months.