ASX RELEASE

ABN: 45 116 153 514

ASX: TMX

23 February 2021

Smokebush JV Tenements (Gold)

80% Project Ownership Milestone Achieved

Terrain Minerals Limited (ASX: TMX) is pleased to announce that its JV partners have confirmed that expenditure commitments of $250,000 has been reached and as a result the 80% ownership in the Smokebush JV tenement are now being transferred to Terrain. This initial milestone was achieved within the 2-year timeframe.

Terrain has also continued to strengthen its ground position in the region with three adjoining tenements being recently granted, all owned 100% (refer to Diagram 1).

100% Terrain Smokebush Tenements:

  • • P59/2274, E59/2435 & E592482

Smokebush JV tenements (80% ownership now earned):

  • • E59/2234, P59/2125, P59/2126, P59/2127 & P59/2128

Farm-in Terms:

  • • Earn 80% by $250,000 AUD expenditure over 2 years - Now Achieved

  • • Issue vendor 5,000,000 fully ordinary share in Terrain (12-month escrow) - Completed on 19 December 2019

  • • Future Payments of up to $500,000 in cash or shares based on milestone.

  • • Vendors 20% free carry until completion of feasibility study.

  • • The vendor's 20% free carried interest will convert to a 1% NSR royalty if the vendor decides not to contribute. Terrain has first right of refusal to purchase the 20%.

For the terms of the JV agreement please refer to ASX release: 02 December 2019 - Farm-in Agreement for the Smokebush Gold Project at Mt Mulgine, 65km West of Paynes Find WA

After the successful RC drilling at Monza, Terrain conducted a ground-based geophysics program in December 2020 covering; Monza, Wildflower and Paradise City areas. The geophysical data was processed and received back mid-January 2021. The new information was merged internally with Terrain's existing and extensive historic data sets and has been used for better targeting the planned drill program at Smokebush gold project (refer to Diagram 2).

The ground-based program also consisted of a very detailed mapping program which extended beyond the key areas. This has identified several new areas that require further investigation with ground-based geophysics, currently being planned.

The Program of works (POW) have been submitted and drill tenders have been issued. The market will be updated accordingly.

| Terrain Minerals Limited | ASX:TMX | ABN 45 116 153 514 |

|Registered Office: S2, 28 Outram Street, West Perth, WA, 6005|

|Mail: PO BOX 79, West Perth, WA, 6872|Ph: +61 8 9381 5558|www.terrainminerals.com.au|

Diagram 1: Map of Terrain Minerals Smokebush JV (80% now earnt) and the 100% owned tenements, refer to map legend.

| Terrain Minerals Limited | ASX:TMX | ABN 45 116 153 514 |

|Registered Office: S2, 28 Outram Street, West Perth, WA, 6005|

|Mail: PO BOX 79, West Perth, WA, 6872|Ph: +61 8 9381 5558|www.terrainminerals.com.au|

Diagram 2: Gridded RTP (Reduced to Pole) ground magnetic data sets in the context of the Smokebush Project. The areas covered in highlighted boxes over the Wildflower, Paradise City & Monza targets.

| Terrain Minerals Limited | ASX:TMX | ABN 45 116 153 514 |

|Registered Office: S2, 28 Outram Street, West Perth, WA, 6005|

|Mail: PO BOX 79, West Perth, WA, 6872|Ph: +61 8 9381 5558|www.terrainminerals.com.au|

Monza Prospect (80%)

Ground Magnetic data over the Monza Prospect has revealed a break in the stratigraphic magnetic feature (trending E-W), corresponding with the location of the shear zone hosting mineralisation at Monza. There is also a subdued Magnetic feature trending north-south along the Monza corridor. Terrain geologists have interpreted an 800m corridor of potential gold mineralisation along the northern extension of this structure based on the magnetics and locations of 2020 Rock Chips taken from historic workings. Drilling undertaken by Terrain in 2020 has defined 200m strike extent of gold mineralisation along this structure. 2021 drill planning will look to extend known mineralisation to the north and down dip.

Diagram 3: Gridded AS (Analytical Signal) ground magnetic data set over the Monza Prospect.

| Terrain Minerals Limited | ASX:TMX | ABN 45 116 153 514 |

|Registered Office: S2, 28 Outram Street, West Perth, WA, 6005|

|Mail: PO BOX 79, West Perth, WA, 6872|Ph: +61 8 9381 5558|www.terrainminerals.com.au|

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Terrain Minerals Limited published this content on 23 February 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 February 2021 00:49:02 UTC.