E2 Metals : Drilling Commences at El Rosillo

ASX Announcement

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Drilling Commences at El Rosillo
	26 May 2022
	E2 Metals (E2 or the Company) is pleased to announce that drilling has commenced at the El Rosillo
	project, located in the western Rio Negro Province of Argentina
use	Highlights
• El Rosillo is a new greenfields discovery located within the Gastre Fault which is host to Pan
	America Silver's large Navidad silver deposit (total resources 751Moz Ag)
	• The drill program will comprise 2500m of diamond drilling focused on testing 7 gold mineralised
	structures within five prospect areas for a cumulative 1400m strike.
personal	• Priority targets defined from the recent trench program include
Prospect 37A	ROT-024:	1.9m at 184gpt Au, 55gpt Ag
		ROT-023:	10.7m at 3.7gpt Au
		ROT-004	25m at 2.9gpt Au
	Prospect 38A	ROT-009:	1m at 279gpt Au, 116gpt Ag
	• This includes gold mineralised structures defined in new trench results not previously announced
	Prospect 38F	ROT-042:	7m at 3.6gpt Au
	Prospect 38E	ROT-065:	1.2m at 8.7gpt Au
	• Drilling is anticipated to be completed in 6 weeks
	Commenting on the update, Managing Director Todd Williams states: "We are excited for this first
For	drill program at El Rosillo which will test surface veins that have returned spectacular grades and visible
gold in trenches. We believe that El Rosillo, which includes the broader district controlled 100% by E2
Metals, has all the hallmarks of a large intrusion related gold system, with the potential for a major

discovery heightened by the proximity to the Gastre Fault that hosts the world-class Navidad silver deposit."

E2 Metals Limited	Directors / Secretary	Address
ABN: 34 116 865 546	Peter Mullens	Level 4, 100 Albert Road
Chair
ASX Code: E2M	Todd Williams	South Melbourne VIC 3205
	P: [phone]
	Managing Director
Issued Capital	F: [phone]
Melanie Leydin
	E: [e-mail]
	Non-Executive Director
199.1M fully paid
ordinary shares

ASX Announcement

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Rio Negro Projects, Argentina

Overview

The Rio Negro Province contains the northern portion of the Somuncura Massif, a large volcanic province that is geologically similar to the Deseado Massif in Santa Cruz, but has been subject to far less modern exploration. The Somuncura Massif is host to Pan American Silver's Navidad deposit, the largest undeveloped silver deposit in the world with over 750 million ounces of silver resources.

Figure 1: Western Rio Negro projects including El Rosillo

The Company has consolidated four large districts in the western part of the Rio Negro province centered on the Vista Alegre, Ofelia, Paredes and El Rosillo properties (Figure 1) respectively. Initial reconnaissance mapping and sampling by E2 in March 2021 (see ASX Announcement, 27 April 2021, March 2021 Quarterly Report) defined 12 gold mineralised prospects of possible Intrusion Related Gold ("IRG") affinity over a regional strike length extending about 200km to the north of El Rosillo

Drilling commences at El Rosillo

E2 Metals Limited • www.e2metals.com.au

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Figure 1: Prospect 37A - drill platform and rig

Figure 2: Summary of trench results and drill priorities

Drilling commences at El Rosillo

E2 Metals Limited • www.e2metals.com.au

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Summary of trench program

Trenching to date has comprised 115 trenches for 3974m (Table 1). This includes a combination of hand dug and mechanically excavated trenches with lengths that range from 9m to 93m.

Trenches were designed to test to main target types:

1. First-ordergold geochemical anomalies in composite rock chip samples that were initially collected on a nominal 20m by 40m sample grid (see ASX announcement, Rio Negro - Target 38 Sampling Results, 8 July 2021).
2. Outcropping vein structures and their covered extensions as prime geological targets with gold mineralisation undetected by the composite rock chip samples

A summary of trench results is shown below in Table 2.

In a general sense, the best mineralised structures defined in trenches coincide with the highest anomalies in the composite rock samples, confirming the methods effectiveness in vectoring to blind veins that do not outcrop.

Summary of drill targets

Priority 1 drill targets: Four mineralised structures for 900m cumulative strike

Four vein structures have returned >10 gram-meters Grade Thickness (GT) trench intercepts and are prioritised for drill testing on sections spaced 75m apart (GT is calculated as gold grade x thickness).

Prospect 37A

West-northwest trending mineralised structure outcropping over 100m strike, open to the east- southeast and west-northwest under shallow gravel cover

ROT-004: 25m at 2.9gpt Au (72 GT)

ROT-023: 10.7m at 3.7gpt Au (39 GT)

ROT-024: 1.9m at 184gpt Au, 55gpt Ag (350 GT)

Prospect 38A

Northwest trending mineralised structure outcropping over 200m strike, open to the east-southeast under shallow gravel cover

ROT-009: 1m at 279gpt Au, 116gpt Ag (279 GT)

Prospect 38F

West-northwest trending mineralised structure outcropping over 200m strike, open to the east- southeast under shallow gravel cover

ROT-042: 7m at 3.6gpt Au (25 GT)

Drilling commences at El Rosillo

E2 Metals Limited • www.e2metals.com.au

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ASX Announcement

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Figure 3: Trench ROT-009, visible gold in hand sample (x10 magnification)

Prospect 38E

West-northwest trending mineralised structure outcropping over 400m strike, open to the east- southeast under shallow gravel cover

ROT-065: 1.2m at 8.7gpt Au (10.5 GT)

Priority 2 drill targets: Four mineralised structures for 500m cumulative strike

Three vein structures have returned 1-5 GT trench intercepts characterized by moderate to high gold grades over 1-2m intervals. These targets are prioritised for drill testing on sections spaced 150m apart (depending on outcrop dimensions) to determine if the vein structures are better developed at depth.

Prospect 38A

Northwest trending mineralised structure outcropping over 200m strike, open to the east-southeast under shallow gravel cover

ROT-087: 0.8m at 3.2gpt Au (2.6 GT)

Drilling commences at El Rosillo

E2 Metals Limited • www.e2metals.com.au

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