Tennant Minerals : Raises $4.5M to Step-Up Cu-Au Drilling at Bluebird

ASX ANNOUNCEMENT 04 April 2022

ASX : TMS

Drilling Stepped-Up at High-Grade Bluebird Copper-Gold Discovery

- Expanded Programs Funded from Successful $4.5M Share Placement

• ➢ Tennant Minerals has completed a heavily over-subscribed $4.5 million (before costs) share placement to sophisticated and professional investors to accelerate and expand the drilling programs at the Bluebird discovery - to scope potential for a major copper-gold resource.

• ➢ The drilling will include:

  • - A Stage 1 program of 6 holes for up to 1,500m0 to follow up the previous, exceptional thick, high-grade drilling intersections that include:

    • o 50.0m @ 2.70% Cu, 0.52 g/t Au, 29.8 g/t Ag from 158m (down hole) in BBDD00091,

      • - including 24.0m @ 5.01% Cu, 1.01 g/t Au, 61.7 g/t Ag from 159m,

      • - including 5.0m @ 7.28% Cu, 1.29 g/t Ag, 291 g/t Ag from 165m, and,

      • - including 4.3m @ 14.7% Cu, 3.10 g/t Au from 176.6m.

    • o 35.5m @ 2.58% Cu, 0.27 g/t Au from 194m (down hole) in BBDD00102,

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    including 18.0m @ 4.74% Cu, 0.50 g/t Au, 0.14% Bi from 197m,- including 5.0m @ 6.53% Cu, 0.67 g/t Au, 0.15% Bi from 197m, and, - including 2.7m @ 14.1% Cu, 1.53 g/t Au from 208.8m.

  • - A Stage 2 program of 10 additional holes for up to 3,000m, to expand the footprint of the Bluebird copper-gold discovery, guided by down hole electromagnetics (DHEM) and gravity/magnetic target modelling (see longitudinal projection, Figure 1).

• ➢ The second key focus of the accelerated program is the high-resolution drone-magnetics survey that is about to commence over the entire 5km strike-length Bluebird gravity corridor.

➢ The results from this drone-magnetics survey will be modelled with detailed gravity data to better define the multiple, coincident, gravity/magnetic-high copper-gold targets along the Bluebird Corridor - for testing with a major new reverse circulation (RC) drilling program.

Tennant Minerals Limited ACN 086 471 007 I Level 1, 247 Oxford Street, West Leederville WA 6007 Iwww.tennantminerals.com

Tennant Minerals Chairman, Mr Matthew Driscoll, commented:

"The heavily over-subscribed $4.5 million capital raising will now allow us to move quickly to scope-out this exciting new copper-gold discovery at Bluebird.

"In addition, we have a new high-resolution drone magnetics survey starting this week, aimed at defining the multiple other copper-gold targets within the 5km Bluebird Gravity Corridor for a major new RC drilling program.

"We've hardly scratched the surface of what looks like a major copper-gold discovery at the Barkly Project."

Tennant Minerals Limited (ASX: TMS), ("Tennant", or "Company"), is pleased to announce it has received a letter of firm commitment from Westar Capital Limited for a capital raising ("Placement") of $4.5 million (before costs) via the issue of 100 million fully paid ordinary shares at $0.045 per share. The Placement will be completed using the Company's available capacity under ASX Listing Rule 7.1A (51.5M shares), and a portion of the available capacity under ASX Listing Rule 7.1 (48.5M shares).

In addition, the Company will issue of 26 million unlisted options to brokers ("broker options") involved in the

Placement, exercisable at $0.08, with an expiry 3 years from the date of issue. Broker options to be issued from existing ASX Listing Rule 7.1 capacity.

A Cleansing Prospectus will be lodged with the ASIC on or about 7th April 2022 in relation to the Placement shares and broker options Issue.

Funds raised from the Placement will be used to expand and accelerate drilling programs at the Bluebird high-grade copper-gold discovery, including testing additional regional targets identified from geophysical surveys at the Company's 100%-owned Barkly Project in the Northern Territory (see location, Figure 1), as well as general working capital.

Expanded diamond drilling program at Bluebird copper-gold discovery

Drilling of the Bluebird copper-gold discovery to date has tested the mineralisation from 100m to just over 200m vertical depth and over a 150m strike length. The deposit is open to the west as well as up and down dip.

The new drilling program at Bluebird will be expanded to scope out the high-grade copper-gold mineralisation (see longitudinal projection, Figure 1) and will include:

• i) The currently planned Stage 1 program of 6 holes for up to 1,500m of diamond drilling0 that will target the central part of the shallow westerly plunging copper-gold shoot immediately down plunge from the thick high-grade intersection in BBDD0009 of 50.0m @ 2.70% Cu, 0.52 g/t Au from 158m incl. 24.0m @ 5.01% Cu, 1.01 g/t Au1 (see longitudinal projection, Figure 2), and,

• ii) A new Stage 2 program of 10 step-out holes for up to 3,000m additional diamond drilling, designed to significantly expand the footprint of the Bluebird discovery to over 300m strike length and to 300m vertical depth (Figure 2).

Detailed gravity modelling indicates that the high-density zone associated with iron enrichment extends strongly to the west of Bluebird, potentially linking with the Perseverance historical gold workings, 1.5km to the west, (Figure 2), where previous drilling produced shallow high-grade gold intersections such as 3m @ 50.0 g/t Au from 42m in PERC0153 and 3m @ 43.2 g/t Au from 72m in PERC0013, reported by Posgold in October 19953.

The planned, Stage 2, step-out holes will expand testing of the mineralised zone to over 300m strike length and to 300m vertical depth. Down-hole electromagnetics (DHEM) will be carried out in selected holes to detect off-hole sulphide mineralisation and guide the step-out drilling.

The scoped dimensions of the zone targeted is of similar scale to other major, copper-gold deposits in the Tennant Creek Mineral Field such as the Peko deposit, 20km to the west of Bluebird, which historically produced 147,000 tonnes of copper grading 4% Cu and 414,000oz of gold at 10 g/t Au between 1934 and 19814.

Titeline Drilling Pty Ltd ("Titeline") has been informed that the program will be expanded to over 4,000m and the diamond drilling rig is preparing to mobilise to site.

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Figure 1: Expanded Bluebird longitudinal projection with previous high-grade copper-gold intersections and new proposed Stage 1 and 2 drilling 3

Drone Magnetic Survey to define multiple additional targets along the 5km Bluebird gravity corridor:

The high-grade Bluebird copper-gold discovery is associated with a gravity high, that is part of a 5km long gravity anomaly or "ridge" (see Figure 2 below). The gravity anomaly reflects high-density, indicating widespread iron enrichment in the primary zone below the near surface leaching that penetrates to >80m depth at Bluebird.

Figure 2: Bouger 1VD gravity image with Bluebird Prospect and magnetic targets along the 5km Bluebird Corridor

This gravity ridge is most strongly developed between Bluebird and the historical Perseverance gold mine (see gravity model, Figure 3, below) and appears to be stronger with depth and plunging shallowly to the west.

Figure 3: Inversion model of detailed Bouger gravity data with Bluebird and Perseverance deposits shown

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Previous ground magnetics indicate Bluebird is associated with a bullseye magnetic anomaly. The Company has identified another 12 magnetic features along the 5km gravity trend that have not been effectively tested.

In order to better define these magnetic anomalies a new, high-resolution, drone magnetic survey is about to commence over the 5km Bluebird Corridor to better define at least 12 other priority targets for further drilling.

Planning of a further, extensive, RC drilling program to test these targets will be fast-tracked following completion of the drone-magnetics survey and modelling of both the gravity and magnetics data.

ABOUT THE BARKLY PROJECT AND THE BLUEBIRD COPPER-GOLD DEPOSIT DRILLING PROGRAM

The Bluebird discovery is within the Company's 100%-owned Barkly Copper-Gold Project ("Barkly" or "Project"),

which is located approximately 45km east of the town of Tennant Creek and comprises two Exploration Licences: EL 28620 (Barkly Project) and EL 30701 (Babbler Project) (Figure 4).

Figure 4: Location of the Barkly Project and major historical mines in the Tennant Creek Mineral Field

The Barkly and Babbler Projects are considered highly prospective for magnetite - hematite hosted copper-gold mineralisation, similar to other major deposits found elsewhere in the Tennant Creek Mineral Field such as the Peko deposit (Figure 4), only 20km to the west of the Barkly Project, that produced 147,000 tonnes of 4% Cu and 414Koz at 10 g/t Au between 1934 and 19814.

The Company's initial focus is the Bluebird prospect, where previous drilling intersected high-grade copper-gold mineralisation at relatively shallow depth.

The recently completed diamond drilling program at the Bluebird prospect1,2 included five diamond drillholes for a total of 1,048m of drilling. The program has successfully tested the entire, greater than 50m, thickness of high-grade copper-gold mineralisation, as well as intersecting down-dip/plunge extensions of the zone that remains open at depth and to the west (see longitudinal projection, Figure 1).

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