Terrain Minerals : Quarterly Activities and Cashflow Report

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ASX Announcement

25 July 2022	ABN: 45 116 153 514
	ASX: TMX

Quarterly Activities Report: June 2022

Terrain Minerals Limited (ASX: TMX) (Terrain) is pleased to provide the following update on its activities for the June 2022 quarter:

HIGHLIGHTS:

Lort River Project - Rare Earth Elements (REE)

• New project three areas granted covering a total of 320km2
• Planning for drilling is underway
• Historic data review assays show a high percentage of valuable magnet rare earth elements (up to 35% of the total grade):
  Shallow 1m auger samples returned Rare Earth Oxide (TREO) grades of: o 580 ppm TREO in VKU28733 (25% Magnet REO of total grade)
  o 525 ppm TREO in VKU28802 (27% Magnet REO of total grade) o 513 ppm TREO in VKU28806 (28% Magnet REO of total grade) o 505 ppm TREO in VKU28712 (35% Magnet REO of total grade) o 504 ppm TREO in VKU28729 (29% Magnet REO of total grade)

Smokebush - Gold Exploration Project

• Desktop review completed to re-visit base metal and REE

• 1. 250~ RC rock chip samples submitted for XRF analyses for REE minerals
• Terrain is exploring new opportunities regarding project advancement

Corporate Update

• Wild-viperupdate
• Terrain currently holds One million Red5 Ltd shares
• New WA tenement area applications submitted
• New opportunities continue to be assessed

Address: Suite 2, 28 Outram Street, West Perth WA 6005 Postal: PO Box 79, West Perth, WA 6872

T: [phone] E:[e-mail]:www.terrainminerals.com.au

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Lort River Rare Earth Project

In May 2022, Terrain was granted the Lort River rare earths (REE) project tenements. This large tenement package is directly adjacent to emerging clay hosted rare earth discoveries in the region. During the quarter, Terrain conducted a review of historic data further highlighting the exploration potential at the Lort River Project. Terrain intends to continue its systematic approach to exploration with the aim of advancing towards drilling at the Lort River Project.

About Lort River Project:

The new tenements cover a total area of 320km2 of highly prospective exploration acreage for REE within the now tightly held and emerging southern Esperance clay hosted REE province of Western Australia. The project areas are predominately situated over freehold agricultural land and located within 50km of the town and port of Esperance and located between other ASX explorers who have already demonstrated the existence of clay hosted REE within the region (Refer to Diagram 1).

Companies operating within the region are having success with identifying clay hosted rare earth mineralisation within this newly emerging rare earth mineral province. These include Meeka Gold Ltd (ASX: MEK) at the Cascade Project (which is located to the east of Terrain's Lort River Project) with grades up to 4,029ppm TREO reported. In addition, Odette Six Metals Ltd have also reported clay hosted REE.

Diagram 1: Terrain new granted Lort River, REE exploration tenements in Yellow.

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Diagram 2: Location of Lort River Project (TMX 100%) where surface REE clay type anomaly has been identified.

Lort River Project - Historic Data Review:

During the quarter, Terrain conducted a review of historic auger drilling data at its 100% owned Lort River Project with high-grade clay type rare earths (REE) soil anomaly identified over large areas.

High-Grade Rare Earths Soil Anomalies Identified

• Assays show a high percentage of valuable magnet rare earth elements (up to 35% of the total grade).
• The shallow auger samples returned Total Rare Earth Oxide (TREO) grades of:

1. 580 ppm TREO in VKU28733 (25% Magnet REO of total grade) o 525 ppm TREO in VKU28802 (27% Magnet REO of total grade) o 513 ppm TREO in VKU28806 (28% Magnet REO of total grade) o 505 ppm TREO in VKU28712 (35% Magnet REO of total grade) o 504 ppm TREO in VKU28729 (29% Magnet REO of total grade)

Refer: Collar and Drilling Tables 1 and 2 in ASX release heading/date below.

• Assays also show high Scandium (Sc) grades, a valuable metal and potentially important addition to the high-grade rare earth mineralisation.
• Terrain intends to advance exploration at Lort River, targeting the underlying clay horizon below the shallow soil anomaly.
• The tenure also covers the Kateup Creek, Helms, Bishops Hat and Lauriana Shear Zones and is prospective for gold and base metals, in addition to the shallow, high-grade, high value rare earth mineralisation already identified.

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These exciting results are from historic shallow auger samples taken ~1m below surface and appear to have been taken along road reserves relating to early-stage gold exploration activities. Terrain will target the more prospective underlying clay horizon where it is hoped that grades will improve within larger zones. The high-grade soil results span Terrains two western tenements (E63/2208 and E63/2209), over 300km2. The Company's eastern tenement (E63/2207) has never been explored for rare earth mineralisation and is also considered prospective for further REE soil anomalies (Refer to Diagram 3).

In addition to the high-grade rare earth soil anomalism spread across large areas of the Lort River Project, the tenure covers significant sections of major regional shear zones. This includes the Kateup Creek and Helms Shear Zone, the Bishops Hat Shear Zone and the Lauriana Shear Zone, positioned on the western side of a major bifurcation in the red island shear zone where both the Belgian and Lauriana Shears splay off to the west (Refer to Diagrams 6 & 7). In addition to rare earth targets, these shear zones present significant untested and highly prospective targets, for gold and base metals.

Diagram 3: Higher-grade rare earth surface sample locations.

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Diagram 4: Some of the Higher-grade rare earth surface assays within this large tenement E63/2208.

Diagram 5: Higher-grade rare earth surface assays within E63/2209.