Strategic Energy Resources : SER Wins Government Funding For Drilling And Key Exploration

ASX ANNOUNCEMENT

17 JANUARY 2022

ASX: SER

For personal use only

SER WINS GOVERNMENT FUNDING FOR DRILLING AND

KEY EXPLORATION GROUND IN NSW

HIGHLIGHTS

• SER awarded NSW Government funding to drill Achilles Copper-Gold target at South Cobar
• Next generation "Ultrafine+" geochemistry set to begin at Achilles to refine drill targets
• SER wins prized exploration ground in Macquarie Arc, Parkes Fault Zone, Cobar Basin and Curnamona Province

Strategic Energy Resources Limited (ASX: SER) is pleased to announce our recent success in the latest round of the NSW Government's Cooperative Drilling Program. SER has been awarded a $120,000 co-funded grant to support diamond drilling activities at the Achilles 1 Prospect within our South Cobar project (EL9012). The drill program will follow a soil geochemistry survey over the target area using CSIRO's Ultrafine+™ next gen analytics1 scheduled for later this month.

SER was also awarded the exclusive right to apply for Exploration Licences over four new, highly prospective areas as part of the NSW Department's 2021 competitive expression of interest process. SER has now lodged four Exploration Licence Applications (ELAs) which expand our existing tenement footprints in the Cowal Igneous Complex and southern Cobar Basin; and now includes a project in the Curnamona Province covering a crustal-scale conductivity anomaly north of Broken Hill, and an untested length of the orogenic-gold rich Parkes Fault Zone south of Forbes. A detailed description of each area is provided later in this announcement.

New Frontiers Drilling Program Awarded

In December 2021 SER was awarded a New Frontiers Cooperative Drilling grant2 to undertake a proposed five hole, 1700m diamond drilling program at Achilles 1 ranging in depth from 250m to 400m to test for possible Cobar-styleCu-Au mineralisation associated with the Achilles shear. The drill program is eligible for the reimbursement of 50% of the direct drilling cost.

Since EL9012 was granted in November 2020, SER has undertaken a technical review of historical exploration and geophysical datasets and conducted a detailed 50m and 100m spaced airborne magnetic and radiometric survey. This survey was utilised to plan a 250-sample, 400m x 200m spaced CSIRO Ultrafine+TM next gen analytics soil geochemical survey over a 4km x 4km area surrounding the Achilles 1 Prospect, which is set to commence this month and will be used to further refine planned drillhole locations.

1. Refer tohttps://www.csiro.au/en/work-with-us/industries/mining-resources/exploration/sampling-methods/ultrafine-gold
2. New Frontiers Cooperative Drilling | Department of Regional NSW

Strategic Energy Resources Limited	www.strategicenergy.com.au
ABN 14 051 212 429	E: [e-mail]
Level 4, 100 Albert Road, South Melbourne VIC 3205	T: [phone]

ASX ANNOUNCEMENT

17 JANUARY 2022

ASX: SER

For personal use only

NEW EXPLORATION LICENCE APPLICATIONS:

In 2018, the Geological Survey of NSW (GSNSW) identified five key regions as part of their involvement in the MinEx Cooperative Research Centre (MinEx CRC) National Drilling Initiative program3. These regions are undercover extensions to known mineralised terranes and the focus areas for the next 10 years of the GSNSW involvement in the MinEx CRC. GSNSW has already undertaken a detailed review of the legacy data within these regions and has planned targeted geochemical and geophysical surveys prior to drilling. SER has successfully secured a significant portfolio of high-quality exploration projects that all reside within the NSW Mineral Allocation Areas (MAAs) as shown below (Fig. 1), along with an area inside the Mundi MAA region.

Figure 1: Location of SER NSW existing exploration licences and the new exploration licence applications.

3 Refer toNSW Planning Template (smedg.org.au)

Strategic Energy Resources Limited	www.strategicenergy.com.au
ABN 14 051 212 429	E: [e-mail]
Level 4, 100 Albert Road, South Melbourne VIC 3205	T: [phone]

ASX ANNOUNCEMENT

17 JANUARY 2022

ASX: SER

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ELA6397 South Cowal

This new application is located approximately 15km SSW of SER's current EL9057, within the Junee- Narromine Volcanic Belt of the Macquarie Arc (Fig. 2). The area is prospective for porphyry and epithermal copper-gold mineralisation and lies approximately 20km SSE of Evolution Mining's (ASX:EVN) Cowal Gold Mine, a epithermal-porphyry system that has published resources and reserves totaling >11Moz Au, and 10km SW of their Marsden porphyry copper-gold deposit, with currently listed resources and reserves of 1.9Moz Au and 971kt Cu4.

The new tenement application has seen previous exploration for copper and gold mineralisation, which has resulted in a large, high quality dataset of high resolution geophysical data (detailed airborne magnetics/radiometrics, ground gravity and ground EM), diamond drilling and aircore drilling. SER will reinterpret the existing drilling and geophysical data to identify potential untested Cu-Au targets for further detailed geophysics, and where appropriate conduct drill testing.

Upon grant, ELA6397 will form part of a larger SER Cowal porphyry-epithermalCu-Au exploration project, alongside EL9057 where SER has already identified several potential porphyry-epithermalCu-Au targets that are currently being prioritised for follow-up. SER is advancing the necessary land access agreements to commence on-ground exploration later in the year.

Figure 2: The location of ELA6397 and EL9012 within the Cowal Igneous Province.

4Refer to Reserves & Resources - Evolution Mining

Strategic Energy Resources Limited	www.strategicenergy.com.au
ABN 14 051 212 429	E: [e-mail]
Level 4, 100 Albert Road, South Melbourne VIC 3205	T: [phone]

ASX ANNOUNCEMENT

17 JANUARY 2022

ASX: SER

For personal use only

ELA6407 Northeast Mundi

The Northeast Mundi project covers 474km2 of the Curnamona Province in the northeast of the Mundi MAA, centred approximately 65km NNW of Broken Hill (Fig. 3). Basement geology within the proposed EL is obscured by Cenozoic cover but is interpreted to comprise metasedimentary rocks of the Palaeoproterozoic Willyama Supergroup, unconformably overlain by and faulted against Neoproterozoic sedimentary and volcanic rocks, which correlate with Adelaidean sequences in South Australia. The area is cut by prominent North- to NNW-trending structures, as exemplified by the Stanley and Teilta Faults, which have the potential to provide fluid conduits for mineralisation.

Figure 3: The location of ELA6407 within the Curnamona Province.

Strategic Energy Resources Limited	www.strategicenergy.com.au
ABN 14 051 212 429	E: [e-mail]
Level 4, 100 Albert Road, South Melbourne VIC 3205	T: [phone]

ASX ANNOUNCEMENT

17 JANUARY 2022

ASX: SER

For personal use only

SER was drawn to the project following the identification of a large crustal conductivity anomaly, which was initially identified in the lower- to middle-crust by the 55km-spaced AusLAMP long period magnetotelluric (MT) survey and further resolved in the upper crust by the 2km- to 4km-spaced Curnamona Crustal broadband MT (CCMT) transect, undertaken in 20175. The "finger"-shaped conductor identified in the CCMT, which is closest to surface at station CC56 (Fig. 4), has strong similarities to MT conductivity anomalies that have been demonstrated to be associated with iron oxide copper-gold (IOCG) mineralisation in South Australia's Gawler Craton6.

Figure 4: (A) 2D resistivity model to a depth of 40km of the CCMT transect that crosses ELA6407 from Kay et al. (2019). (B) 2D resistivity model to a depth of 60km across the Gawler Craton from Heinson et al. (2018). Note the similarity between feature C1 under Wirrda Well (WW), C2 under Olympic Dam (OD), C3 under Vulcan and the feature under station CC56 of the CCMT transect, which lies within ELA6407.

1. Kay, B., Heinson, G., Robertson, K. Thiel, S., 2019, Lithospheric architecture in the Curnamona from MT. In Gilmore, P.J. (compiler), 2019, Uncover Curnamona 2019: Symposium Presentations. Geological Survey of New South Wales Report GS2019/1007.
2. Heinson, G., Didana, Y., Soeffky, P., Thiel, S., Wise, T., 2018, The crustal geophysical signature of a world-class magmatic mineral system. Scientific Reports, 8:10608, 6 p.

Strategic Energy Resources Limited	www.strategicenergy.com.au
ABN 14 051 212 429	E: [e-mail]
Level 4, 100 Albert Road, South Melbourne VIC 3205	T: [phone]