Terramin Australia : 4th Quarter Activities Report and Appendix 5B

ASX ANNOUNCEMENT

only28 Jan 2022

December 2021 quarterly activities report

Q4 HIGHLIGHTS

Bird in Hand Gold Project

• Terramin has continued to progress the Mining Lease Application for its Bird in Hand Gold Project. The South Australian mining regulator has progressed to the final assessment phase of this application.

useTala Hamza Zinc Project

Terramin has continued its positive commercial negotiations with its Algerian joint venture partner.

Kapunda In Situ Copper Recovery Project

• Terramin's joint venture partner, Environmental Copper Recovery Pty Ltd (ECR) has commenced in ground test work following the receipt of regulatory approval.

Exploration

• A drilling contractor for the drilling of the large Wild Horse target have been secured and drilling is expected later in the current quarter.
• Discussions with a potential joint venture partner in respect of the South Gawler Ranges Project are well advanced.

Corporate

personalFor	• The Company's total cash balance (including restricted cash on deposit) was $5.72 million at the end of
	the quarter.

Terramin Australia Ltd ACN 062 576 238

2115 Callington Road Strathalbyn SA 5255 T [phone] [e-mail] terramin.com.au

ASX ANNOUNCEMENT

BIRD IN HAND GOLD PROJECT & ANGAS ZINC MINE SITE

100% owned by Terramin and its subsidiary Terramin Exploration Pty Ltd

onlyThe Bird in Hand Gold Project (BIHGP) is located approximately 30km north of Terramin's existing mining and processing facilities at the Angas Zinc Mine (Angas). The project has a high-grade Resource of 650,000 tonnes at 12.6g/t for 265,000 ounces of gold. A feasibility study showed that the BIHGP expected to generate a post-tax NPV8 of $141 million with an IRR of 80.5% over approximately 4 years of production. The project's base case projection is to produce an average of 44,700 ounces of gold per annum at a low C1 cash cost of $737 per ounce and an all-in sustaining cost of $959 per ounce. It is anticipated that, subject to required regulatory approvals, the Bird in Hand ore will be processed utilising the facilities at Angas which can be modified to process gold- bearing material. The existing tailings dam at Angas has the capacity to hold Bird in Hand tailings.

useTerramin has continued to progress the Mining Lease Application for its BIHGP and the Miscellaneous Purpose Lease to allow the Angas site to treat the Bird in Hand ore. The South Australian Department for Energy and Mining (DEM) has continued to progress its assessment and has moved into the final phase of its assessment and approval process.

The Program for Environment Protection and Rehabilitation (PEPR) has been largely finalised and is ready for personalsubmission.

Terramin continues to engage with a number of parties which are interested in funding or investing in the project and is in receipt of a number of funding offers. There is strong interest from offtake parties, streaming and royalty companies, financial institutions and other mining companies.

The Angas site continued to be maintained in accordance with the DEM approved Mine Care and Maintenance Plan and is operating in compliance with its lease conditions.

Expenditure on the BIHGP and Angas site during the quarter was $0.5 million (noting that this number includes care and maintenance costs at Angas).

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ASX ANNOUNCEMENT

TALA HAMZA ZINC PROJECT

100% owned by Western Mediterranean Zinc Spa (WMZ)

onlyTerramin holds a 65% shareholding in WMZ. The remaining 35% is held by two Algerian government-owned

companies: Enterprise Nationale des Produits Miniers Non-Ferreux et des Substances Utiles Spa (ENOF) (32.5%) and Office National de Recherche Géologique et Minière (ORGM) (2.5%).

During the quarter, Terramin has been focused on its ongoing negotiations with its joint venture partner, ENOF, regarding the structure and management of the Tala Hamza Zinc Project joint venture as it transitions to construction and production.

useTerramin advises that following positive commercial discussions with ENOF have continued with many commercial issues having been resolved.

Consultation with the local community is ongoing.

Expenditure on the Tala Hamza project during the quarter was $0.1 million. personalFor

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ASX ANNOUNCEMENT

KAPUNDA IN SITU COPPPER RECOVERY PROJECT

25% free carried interest until completion of project thresholds

onlyThe Kapunda In Situ Copper Recovery Project is located near the township of Kapunda which is approximately 90km north of Adelaide. The project is focused on the recovery of copper and gold from a historical mining area through the use of in situ recovery. The project has a resource of 47.4 million tonnes at 0.25% copper containing 119,000 tonnes of copper. The project is been partially funded by a government grant of $2.85 million from the Co-operative Research Centre (CRC-P).

During the quarter, Terramin's joint venture partner, ECR received regulatory approval for its first round of in- useground test work that includes a tracer test (to test connectivity between wells) to be followed by a push pull

test using biodegradable methane sulfonic acid to test in-ground extraction of copper.

The tracer test is currently being carried out on the project and involves draining an inert tracer substance (sodium bromide) into the wells and then measuring the time it takes to move from well to well. This test is expected to be completed in the coming days.

ECR are currently collating the results of the CRC-P research project and other work into a scoping study for the

project.

personalThe 3½ year work on this project has culminated in ECR winning the South Australian Premiers Award Innovation nd Collaboration Resources Energy in November 2021.

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ASX ANNOUNCEMENT

EXPLORATION PROJECTS

100% owned by Terramin and Terramin subsidiaries Terramin Exploration Pty Ltd or Menninnie Metals Pty Ltd unless onlyotherwise previously disclosed as part of a joint venture arrangement

The Adelaide Hills Project consists of eleven contiguous exploration tenements that cover 3,481km2 and stretch from Lake Alexandrina to Kapunda. This project area is considered highly prospective for gold, copper, lead, zinc and rare earth elements. Terramin's South Gawler Project is located along the southern margin of the Gawler Ranges, northern Eyre Peninsula, South Australia. The Project comprises a group of eleven Exploration Licenses totaling 4,524km2.

Wild Horse (Earn -in Agreement with Newmont Exploration Holdings Pty Ltd)

useDrill hole design which targets the distinct Wild Horse aerial magnetic anomaly has been completed. The magnetic body is 1,300 metres by 2,000 metres and has been modelled from a depth of approximately 100 metres to 1,400 metres.

Approval for the drilling has been obtained from DEM and the relevant landowners.

A drilling contractor has been secured and we are awaiting the arrival of the drilling rig which is expected to be

later in the current quarter. personalSouth Gawler Ranges

The South Gawler Ranges assets, which includes the Menninnie Dam Resource and 4,524 square kilometres of prospective exploration ground, are considered non-core assets in the Terramin asset portfolio. Terramin has appointed Discovery Capital Partners as advisor in respect of these assets.

Terramin is currently in advanced discussions with a third party in respect of joint venture of these assets. Terramin's expenditure on the Adelaide Hills and Gawler Ranges tenements was $0.06 million.

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