Valor Resources : Quarterly Activities Report

ASX Release

3 May 2021

VALOR RESOURCES LIMITED

ACN 076 390 451

22 Lindsay Street

PERTH, WA

Australia

Tel: [phone]

Fax: [phone]

Contact: Mr George Bauk

E-mail:

[e-mail]

Directors

George Bauk

Brian McMaster

Gary Billingsley

Paula Smith

Company Secretary

Paula Smith

ASX Code:

VAL

VALOB

Ordinary Shares:

2,893,831,418

VALOB Options:

400,000,000 ($0.015 - 31/12/2021)

MARCH 2021 QUARTERLY ACTIVITIES REPORT

Valor Resources Limited (Valor) or (the Company) (ASX: VAL) is pleased to provide its report for the quarter ended 31 March 2021.

Highlights

• Completion of the Canadian Uranium Asset Acquisition;
• Agreement signed with Terra Logic, Canadian Based Geological Survey Company;
• Airborne Survey completed over Hook Lake Project;
• Peruvian VAT refunds received - A$292,107;
• Placement completed - A$800,000;
• Unlisted options converted - A$270,000; and
• Valor supporters buy major shareholder stake through special crossing.

The March Quarter was a significant quarter for the Company with the completion of the acquisition of the Canadian Uranium project along with the completion of our airborne survey over the Hook Lake Project by our Canadian geological partner Terra Logic. The Company also increased the cash position by $1.35m through a number of actions including placement, conversion of unlisted options and receipt of VAT refunds from Peru.

The June Quarter will see the completion of the data interpretation of the airborne survey including potential new targets and the planned commencement of on groundwork at Hook Lake. Desktop studies including the review of historical data will be undertaken on the Peruvian Copper Projects and the Canadian Uranium Projects.

COMPLETION OF CANADIAN URANIUM ASSET ACQUISITION

As announced on 22 October 2020 and 9 December 2020, the company entered into Agreements ("Transaction") to acquire 100% of the issued capital of Pitchblende Energy Pty Ltd ("Pitchblende") the holder of interests in two uranium projects located in Saskatchewan, Canada ("Projects").

The Transaction was subject to various conditions precedent including shareholder approvals as detailed in the Notice of Annual General Meeting lodged with the ASX on 23 December 2020.

As announced on 29 January 2021, shareholders approved all the resolutions tabled at the Annual General Meeting including the resolutions to give effect to the Transaction.

Valor is pleased to announce that settlement of the acquisition is now complete.

HIGHLIGHTS OF THE TRANSACTION COMPLETED INCLUDE:

• Two substantial exploration assets located within the prolific Uranium district of the Athabasca Basin covering 861km2; and
• Athabasca Basin has an average resource grade of 2% U3O8 1 and Historically the basin has produced approx. 20% of world's primary uranium supply.

Hook Lake Uranium Project:

• Rock chip sampling of Hook Lake Project has returned grades of up to 68% U3O8; and
• Multiple priority targets of surface vein hosted mineralisation identified.

Cluff Lake Uranium Project:

• Located within the Carswell a meteorite impact structure that is host to the Cluff Lake Open Pit Mine which produced 64Mlb U3O8 at an average grade of 0.92% U3O82and is located directly adjacent
  Pitchblende's Project.

1Fision Uranium PDAC Presentation 2 UEX Corporation, Technical Report on Shea Creek Property

Hook Lake Project Geology

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AGREEMENT SIGNED WITH TERRA LOGIC, CANADIAN BASED GEOLOGICAL SURVEY COMPANY

Valor entered into an Agreement with TerraLogic Exploration Inc. ("TerraLogic") to provide mineral exploration services on its Hook Lake and Cluff Lake uranium projects located in the Athabasca Basin area of Saskatchewan. The first phase of exploration work will be an airborne geophysical survey over the Company's Hook Lake Project. TerraLogic organised and completed survey in early April 2021.

Uranium Scree from Hook Lake Project

AIRBORNE SURVEY COMPLETED OVER HOOK LAKE

TerraLogic designed the low-level airborne magnetic and very-low-frequency electromagnetic ("VLF-EM") survey to cover the entire Hook Lake claim area, using a fixed-wing aircraft, at 75m line-spacing totaling 5,100 line-km. Final data processing, data interpretation, target selection and recommendations for follow-up ground- based exploration and drilling programs will also be handled by TerraLogic. This process is expected to take approximately 6 weeks, followed immediately by the recommended fieldwork in the summer and fall 2021. Application for the required regulatory permits for the ground-based work is in progress.

The Hook Lake Project consists of 16 contiguous mining claims covering 25,846 hectares, located 60km east of the Key Lake Uranium Mine in northern Saskatchewan. The property hosts over half a dozen significant uranium occurrences including the main Hook Lake/Zone S showing where grab samples from trenching returned assays up to 63% U3O8. 3

3 - see Valor Resources Limited ASX Release dated October 22, 2020

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Map showing the area to be surveyed within the Hook Lake property location

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CORPORATE UPDATE

As part of the acquisition of the Canadian Uranium assets, the company completed a $800,000 capital raising (before costs) managed by CPS Capital.

The Company also announced that 60,000,000 Unlisted Options expiring 11 February 2024 have been exercised at $0.0045 to raise $270,000. Valor will utilise the funds to further its Peru and Canadian Projects and for working capital purposes.

For financial reporting purposes in previous years, Valor had impaired Value Added Tax (VAT) Receivables in Peru as the timing and quantum of receipt from the Peruvian government was uncertain. Under the terms of the Berenguela Sale Agreement with SSR Mining Ltd (SSR) which settled in November 2020, Valor held a Contingent Asset for the recovery of Peruvian VAT. Valor advised during the March 2021 Quarter, that it had commenced receipt of Peruvian VAT refunds and is pleased to confirm that it has received cash refunds of A$292,107.

As previously announced to the ASX on 9 November 2020, Valor had completed and settled the transfer of the entities which hold rights to the Berenguela Project back to SSR on terms where the consideration for the transfer was the release and discharge of Valor's acquisition obligations including the release of outstanding amounts of USD $10.8m owed to SSR and relevant security interests. Following settlement of the transfer, SSR had no further project interests with the Company and as a result, wished to sell its shareholding in Valor.

Accordingly, Valor's Broker, CPS Capital, arranged a special crossing trade for SSR to sell 100% of its Shareholding being 247,288,034 Ordinary Fully Paid Shares in Valor representing 8.73% of Issued Capital at a price of $0.006 per Ordinary Share. Valor's Directors Mr George Bauk subscribed for 15,000,000 Ordinary Fully Paid Shares along with Mr Brian McMaster who subscribed for 20,000,000 Ordinary Fully Paid Shares from the special crossing with the balance of the shares subscribed by existing Valor shareholders highlighting the strong support and sentiment for Valor's current projects from current shareholders.

In accordance with Listing Rule 5.3.5, Valor advises that the payments to related parties as advised in the Appendix 5B for the period ended 31 March 2021, pertain to director fees (A$112,752), company secretarial fees (A$16,500) and accounting fees ($19,800) paid during the quarter.

SECURITIES ON ISSUE
The following table provides a summary	of the securities on issue at the time of this report:
	Securities			Total Issued
	Ordinary Fully Paid Shares VAL		2,893,831,418
	Listed Options VALOB @ $0.015 expiry 31/12/2021		400,000,000
	Unlisted Options @ $0.008 expiry 11/02/2024		60,000,000
	Unlisted Options @ $0.015 expiry 11/02/2024		60,000,000
	Vendor Performance Rights		333,333,333
	Directors Performance Rights - Vested		90,000,000
	Directors Performance Rights		90,000,000

The Performance Rights for Vendors will vest, and be convertible into shares, on the achievement of the following performance milestones and in the following amounts:

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