Sky Metals : Tin Projects - Exploration Update

37m @ 0.31% tin from 91m,

15m @ 0.16% tin from 69m,

5m @ 0.23% tin from 44m.

All 10 holes completed successfully intercepted the Tin Lode system at Tallebung - Assays are pending.

TBRC009:

TBRC006:

RC Drilling of 10 holes has been completed for a total of 1,217m at the historic Tallebung Tin Mine targeting a shallow, bulk tonnage tin deposit. Previous results include:

44m @ 0.21% tin from 69m, including;

5m @ 1.33% tin from 69m

87m @ 0.18% tin from 60m, including;

1m @ 5.83% tin & 0.36% tungsten from 60m and; 3m @ 0.92% tin from 69m

Tin Projects - Exploration Update

ASX: SKY

ASX ANNOUNCEMENT

7 March 2022

onlyDoradilla Project

 Diamond drilling rig is mobilising to the 3KEL Target - Drilling to recommence at Doradilla.  RC drilling rig has been secured to mobilise later in the month to advance the 3KEL Target,

testing tin and zinc mineralisation over a broad 2.8km strike length.

useTallebung Project

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The Board of Sky Metals Limited ('SKY' or 'The Company') is pleased to provide an update on exploration activities at the Tallebung Tin Target at the Tallebung Project and the 3KEL Target at the Doradilla Project, both in NSW.

DORADILLA project: TIN- polymetallic (EL 6258, SKY 100%)

3KEL Target - Diamond Drilling

A diamond drilling rig is scheduled to arrive onsite at the 3KEL Target this week. An RC drilling rig has also been secured to Forjoin the diamond drilling rig at 3KEL by the end of the month. The first hole to be completed on this next round of diamond

drilling at 3KEL is aimed to target depth extensions to the tin mineralisation at 3KEL under 3KRC012. Figure 1 shows the planned hole on section. 3KRC012 intercepted multiple intervals of strong tin mineralisation, results included:

3KRC012:

SKY Exploration Manager Oliver Davies commented "It is an exciting time for SKY, we are mobilising to recommence drilling at the exceptional 3KEL Target, as localised flooding has now abated, and SKY eagerly anticipates the assays results from the RC drilling at the Tallebung Tin Project to be received over the next few weeks. SKY is quickly advancing our tin exploration portfolio as the tin price continues past a record AUD60,000/t."

SKY METALS LIMITED

[phone]

207 BYNG STREET, ORANGE NSW 2800

WWW.SKYMETALS.COM.AU

ABN 46 098 952 035

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Figure 1: 3KEL Target - Cross section of 3KRC012 and the proposed hole to drill for depth extensions to the multiple, strong tin

intercepts.

The second hole planned in this program will be drilled as a wide diameter hole to provide a sample for metallurgical
testwork. This hole has been planned to intercept the high-grade tin mineralisation in 3KRCD007, results included:
personal	3KRCD007:	42m @ 0.41% tin from 37m including,
		7m @ 1.31% tin & 0.22% copper from 63m
The last of the planned diamond holes for this program has been designed to test under the zinc mineralisation discovered
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500m along strike from 3KRC012 in 3KDD013. The RC drilling rig is also planned to continue the drilling program, starting on the north-eastern end of the 3KEL Target before moving to the south-west along a 2.8km strike.

This RC program will explore extensions to the zinc mineralisation in 3KDD013 while also testing underneath the rock chips results from the large and undrilled gossanous area 200m further to the northeast. Rock chips taken from this undrilled gossanous area assays up to 0.7% tin and may represent a +700m extension to the north-east of the 3KEL Target.

A camp is currently being set up near the 3KEL Target to allow for better access for SKY staff and contractors for the ongoing drilling programs planned over at least the next 3 months.

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Figure 2: 3KEL Target - Cross section of 3KRCD007 and 3KDD014 with the planned metallurgical hole drilling down the tin mineralisation

to provide sample for metallurgical testwork.

Table 1 - Doradilla Tin-Polymetallic Project, 3KEL Target. Collar summary for drill holes.

	Hole ID	Easting	Northing	RL (m)	Dip	Azimuth	Total	Comments
		(MGA)	(MGA)			(MGA)	Depth (m)
	3KDD015	443487.4	6648634.5	136.6	-55	323.6	222.5	Drilled under 3KAC020

Table 2 - Doradilla Tin-Polymetallic Project, 3KEL Target. Significant drillhole intersections.

	Hole ID		From		To		Interval		Sn		Cu		Zn		In		Ag		Comment
			(m)		(m)		(m)		%		%		%		g/t		g/t
	3KDD015	159.7	169.5	9.8	0.15	-	-	20	9.8		Broad mineralisation
	including		159.7		165		5.3		0.23		-		-		29.3		5.1
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Figure 3: 3KEL Target - Long section of showing the locations of the planned diamond and RC drillholes for the imminent drilling programs.

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Tallebung project: TIN- Tungsten (EL 6699, SKY 100%)

Tallebung Target - RC Drilling

Nine of the eleven planned RC holes and one redrilled hole, ten holes altogether, for a total of 1,217m have been completed at the historic Tallebung Tin Mine, designed to test for further up dip, shallow potential bulk tonnage tin mineralisation.

onlyAll ten holes drilled intercepted broad zones of quartz veining and alteration prospective for tin. Visual logging of these holes shows that the tin lode system at Tallebung remains open up dip, providing a strong indication of additional tin mineralisation close to surface at Tallebung. All samples have been submitted to the lab and assays are pending.

Further RC drilling is being planned for later in the month to complete this program and expand the shallow Tallebung Tin Target. Tin mineralisation at Tallebung has a strike of over 1.2km and remains open along strike. This recent drilling by SKY demonstrates great potential to further increase the size of the Tallebung Target in shallow, up dip extensions. SKY anticipates

usethe return of these assay results over the next few weeks.

Tin mineralisation at Tallebung is hosted as coarse cassiterite (tin-oxide) indicating favourable concentration by traditional gravity methods. A sample of the Tallebung tin mineralisation has been sent to TOMRA Ore Sorting Solutions in Sydney and has been sorted on a 25:75 product to waste ratio - Assays are also pending for these testwork samples to provide an indication of the effectiveness of ore sorting for the Tallebung tin mineralisation. personalFor

Figure 4: Tallebung Target - Cross section showing TBRC006 and other holes drilled on section within a 50m wide window.

TBRC006 is open up dip for over 100m to surface and has been tested by TBRC014 - Assays are pending.

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