E2 Metals : March 2022 Quarterly Activities & Cashflow Reports

ASX Announcement

March 2022 Quarterly Report

26 April 2022

E2 Metals (E2 or the Company) is pleased to present the quarterly report for the period ending 31 March 2022 and provide an update on exploration activities across the Company's portfolio.

Highlights

Conserrat gold and silver project (Santa Cruz, Argentina)

• • Infill and step-out drilling at Malvina continues to deliver high-grade silver and gold mineralisation. Highlights include:

  CODD-253:

  14m at 8.7gpt Au, 2541gpt Ag (45gpt AuEq) from 67m inc. 7m at 17gpt Au, 4759gpt Ag (85gpt AuEq) from 67m

• • A follow up diamond drill program will commence 1 May with the aim of extending mineralisation which is open at depth and to the northwest.

El Rosillo gold project (Rio Negro, Argentina)

• • Gold and silver assay results have been received for three trenches at Prospect 37A.

  Significant trench results include:

  ROT-024:	3m at 113gpt Au, 35gpt Ag	(Open to the south and northwest)
  ROT-004	25m at 2.9gpt Au	(Open to the east and northeast)

• • Assay results for 80 trenches for 2718m remain outstanding and are anticipated in May. An inaugural drill program to test all surface targets will commence 15-May.

Corporate

• • The Company completed a $8.5M share placement to institutional and sophisticated investors, including renowned global investor Eric Sprot.

• • Cash balance at the end of the quarter is strong at $8.2M with a further $4.5M from tranche two of the placement anticipated following a General Meeting on 28 April 2022.

  1Gold equivalent grades calculated at spot price of U$1750/oz gold and U$25/oz silver (Au + Ag/70)

Santa Cruz Projects, Argentina

Overview

E2 Metals continues to be focused on its Santa Cruz projects in Argentina (Figure 1) where it holds an 80% interest in a 90,000-hectare land package prospective for multi-million-ounce gold and silver epithermal vein deposits similar to Cerro Negro (Newmont) and Cerro Vanguardia (AngloGold Ashanti) mines.

Figure 1: Santa Cruz Portfolio

Conserrat

The Conserrat project is comprised of one title totalling 8,696Ha and is centered on the same geological trend that is host to AngloGold Ashanti's Cerro Vanguardia mine (historical and current reserves 8.9Moz Au, 137Moz Ag). The project contains a recently discovered epithermal vein field that partially outcrops over an area of 25 square kilometers and is exposed within 'erosional windows' through younger volcanic and sediment cover.

Figure 2: Conserrat Project

Prior to E2 commencing work in August 2019, Conserrat had never been drilled or subject to systematic modern exploration. Subsequent exploration by E2 has returned a number of 'blind' discoveries over an area 3 kilometers east to west and 5 kilometers north to south.

A total of 51 holes for 5200m were completed during the reporting period. Hole depths ranged from 60m to 206m and comprised a mix of Diamond and Reverse Circulation (RC) drilling. Gold and silver assay results for 31 holes remain outstanding and are anticipated in May 2022.

Overview of drilling

Drill hole locations and results reported during the March quarter are summarised below in Figure 3.

Drill programs included infill drilling at Malvina, Andrea Sur and Mia testing extensions of known gold and silver mineralisation, follow up drilling at Malvina Sur, Florencia Norte and Silvia and regional scout drilling targeting new discoveries.

Figure 3: Conserrat Project

Malvina follow-up drilling

Malvina is host to a largely concealed silver and gold mineralised vein and structure located in the central project area (see previous figure, Figure 3). Since October when the first assay results were announced (see ASX Announcement, 5 October 2021, Gold and silver assays confirm Malvina discovery), step-out and infill drilling has defined three meter-scale banded colloform-crustiform quartz veins (termed M1 to M3) within a structural corridor that continues from Uma to Malvina Oeste for over 1 kilometer strike.

Figure 4: Malvina cross section

Figure 5: Malvina long section