Terramin Australia : June 2022 Quarterly Activities Report and Appendix 5B

ASX ANNOUNCEMENT

only28 Jul 2022

June 2022 quarterly activities report

QUARTER 2 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 continues to progress its final assessment of this application.

Tala Hamza Zinc Project

use	•	Final regulatory approval of the Tala Hamza Zinc Project is proceeding with the joint venture partners
		responding to technical enquiries from various Algerian regulatory parties.
	•	Discussions are progressing with various service providers in respect of optimising concentrate
		transportation and power supply.

Kapunda In Situ Copper Recovery Project

• Terramin's joint venture partner, Environmental Copper Recovery Pty Ltd (ECR), continued to undertake its technical and environmental studies.

South Gawler Ranges Project

• Japan Oil, Gas and Metals National Corporation (JOGMEC) has received Foreign Investment Review Board (FIRB) approval in respect of the $10.5 million exploration agreement.
• Exploration activity to commence in late July 2022.

Wild Horse Exploration

• Test work on the Wild Horse drill core is ongoing.

personalCorporate

• The Company's total cash balance1 was $5.79 million at the end of the quarter.

For

1. Please refer to Footnote 1 on page 7 of this report.

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 Purposes Licence 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 is in 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 $0.46 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 49% shareholding in WMZ. The remaining 51% is held by two Algerian government-owned

companies: Enterprise Nationale des Produits Miniers Non-Ferreux et des Substances Utiles Spa (ENOF) (48.5%) and Office National de Recherche Géologique et Minière (ORGM) (2.5%).

Terramin is pleased to advise that the final regulatory approval of the Tala Hamza Zinc Project (Tala Hamza) is proceeding following the formal endorsement of Tala Hamza by Terramin's Algerian joint venture partners.

In March 2022, the joint venture partners agreed to advance the project towards development ('Decision to useMine'). The 'Decision to Mine' cleared the path for the issue of the mining permit which will be issued by the Algerian mining regulator (ANAM). WMZ has subsequently lodged all required documentation with ANAM and has received the requisite environmental clearance from the local government authority. WMZ is now finalising

environmental clearance from the federal environmental authorities.

Discussions have been undertaken with various parties in respect of the transport of the project concentrate from the project site to the Port of Bejaia. This is a short distance of approximately 10km in which WMZ is considering

both rail and road transport options.

personalDiscussions with various electricity and gas providers are also underway. The mining permit abuts major existing electricity and gas infrastructure which provides the project multiple power supply options.

Consultation with the local community is ongoing with the Algerian project team focused on land access and the provision of water extraction licenses.

Expenditure on Tala Hamza during the quarter was $0.18 million.

For

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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.

During the quarter, our joint venture partner, ECR, trialled surface geophysical techniques while continuing to

collect baseline environmental data before starting lixiviant trials with biodegradable acid to test the extraction useof copper.

Laboratory scale testing on Kapunda groundwater samples using Ion exchange technology has been successfully completed, with loading and stripping to produce a copper sulphate product completed. Larger scale testing is planned to be undertaken with material from the push pull testing.

ECR are in discussions with a number of interested funding parties to undertake a mining lease application and build a small pilot plant for copper extraction.

personalFor

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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 Ranges 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.

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

The drill core from the recently drilled Wild Horse hole is currently being assayed and Newmont is undertaking detailed analysis of the drill core.

South Gawler Ranges Project (SGRP) (Exploration Agreement with JOGMEC)

In March 2022, Terramin entered into a $10.5 million agreement with JOGMEC for exploration of the SGRP.

personalSubsequent to entering into that agreement, JOGMEC has obtained approval from FIRB in respect of the greement.

Terramin and JOGMEC have agreed on the exploration activities (including exploration budget) for the period up to March 2023 and these activities will begin on site in late July 2022.

Terramin's expenditure on the Adelaide Hills and South Gawler Ranges tenements was $0.11 million. For

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