Vimy Resources : Early drilling success at Alligator River Project

For personal use only

ASX Announcement

18 July 2022

Early Drilling Success at Angularli

Alligator River Project - Northern Territory

• First two diamond holes intercepted uranium mineralisation up-dip of the Angularli inferred resource, with key intercepts including:
• • Drill hole ARDD0004:
    o 5.40m @ 0.45% eU3O8 from 179.9m
    o 6.35m @ 0.95% eU3O8 from 217.9m, including o 2.95m @ 1.42% eU3O8 from 221.3m
  • Drill hole ARDD0003:
    o 2.65m @ 0.51% eU3O8 from 170.9m o 4.50m @ 0.56% eU3O8 from 184.7m o 5.90m @ 0.30% eU3O8 from 191.0m
• Third drill hole nearing completion and two additional up-dip holes planned

Vimy Resources Limited (ASX: VMY, OTCQB: VMRSF) (Vimy or Company) is pleased to announce the first two diamond drill holes have intercepted new uranium mineralisation at its 100%-owned Angularli Deposit in the Northern Territory (see ASX announcements dated 9 Mayand 12 July 2022).

The two diamond drill holes successfully extended the Angularli Deposit in an up-dip direction, approximately 200m above the unconformity boundary, which was previously thought to limit the extent of uranium mineralisation. The width and tenor of mineralisation intercepted in both holes warrant additional drilling further up-dip from the current drill holes, to further extend the known mineralisation within the Mamadawerre Sandstone Formation.

Details of the diamond drill holes completed to date are provided below, with a full suite of intercepts provided in Appendix 1.

Vimy's Managing Director and CEO, Steven Michael, said:

"Our team is very excited by the early success achieved in the first two holes at Angularli, which contains the highest uranium grade of any known uranium resource within Australia.

These first two holes continue to demonstrate the growth potential of Angularli to increase in scale and value. Drilling continues with additional up-dip and down-plunge holes and Vimy expects to update the mineral resource in late 2022."

Vimy Resources Limited	Telephone:	[phone]
First Floor, 1209 Hay Street, West Perth WA 6005	Website:	vimyresources.com.au

For personal use only

Overview

The Angularli Deposit is part of the Alligator River Project, which lies approximately 380km by road east- northeast of Darwin in the Northern Territory of Australia and is hosted in a high-angle shear fault system, with an Inferred Mineral Resource estimate of 0.91Mt at a uranium grade of 1.29% U3O8 containing 25.9Mlbs U3O8 (see ASX announcement of 20 March 2018and Table 2).

The Mineral Resource Estimate is supported by 30 diamond drill holes to date, with the best intercept at Angularli recorded in hole WRD0084, consisting of 41.5 metres at 2.93% U3O8, (inc. 22.9m at 4.63% U3O8.

Table 1: Angularli Mineral Resource Estimate, March 2018 1, 2

	Deposit /				Cut-off Grade			Tonnes		U3O8			U3O8
	Resource		Classification		(% U3O8)			(Mt)1		(%)2			(Mlbs)
					0.10			0.95		1.24			26.0
	Angularli		Inferred		0.15			0.91		1.29			25.9
			0.20			0.88		1.33			25.8
					0.25			0.77		1.49			25.2

1. t = metric dry tonnes; appropriate rounding has been applied and rounding errors may occur.
2. Using chemical U3O8 composites from drill core.

Figure 1 shows the location of ARDD0003 and ARDD0004 drill collars, which are located in a north- northwest (NNW) trend up-dip along the Angularli fault. ARD0005 is in progress and three further holes are being considered up-dip to support a Mineral Resource update. Further details of the drill collar coordinates, wireline logging details and a list of uranium intercepts is provided in Appendix 1. JORC Table 1 is provided in Appendix 2.

Figure 1: Proposed drilling program at Angularli (2022 field season)

2

For personal use only

Once the up-dip extension drill holes are completed, then the Angularli North prospect, associated with a strong induced polarisation (IP) anomaly and along strike of the Angularli fault will be tested. The drill rig will then proceed with resource extension drilling down-dip of the Angularli resource, which remains open at depth.

Figure 2 shows a typical section of drill core with predominantly black uraninite (UO2) and other uranium mineralisation present within Mamadawerre sandstone. Figure 3 and Figure 4 show the cross-sections for ARDD0003 and ARDD0004 respectively, and their position relative to the Mineral Resource.

Hydrothermal alteration proximal to the mineralised sandstone is consistent with previous observations of silica-sericite and pyrite replacement of the primary matrix, and more distal alteration characterised by intense bleaching of the sandstone along with diaspore and dravite veins. This alteration is an important pathfinder for unconformity-related deposits and provides a means to identifying fertile fault zones close to surface.

Preliminary observations on the sandstone-hosted uranium mineralisation is characterised by breccia matrix fill and discrete uranium veining (see Figure 2). Increased alteration along those veins is interpreted as the result of more intense hydrothermal fluid interaction due to the greater porosity of the sandstone relative to the underlying silica flooding breccia (down-dip basement).

Figure 2: Mineralised faulted Mamadawerre Sandstone in hole ARDD0004 (dosimeter at 222.9m)

3

For personal use only

Figure 3: Angularli Deposit - Cross Section 8,701,580N (Looking North)

Figure 4: Angularli Deposit - Cross Section 8,701,610N (Looking North)

4

For personal use only

Next Steps

A minimum of 19 diamond drill holes are planned to be drilled at Angularli over the next four months. The first 7 holes are focused on up-dip and down-plunge extensions to the existing mineral resource and a further 12 diamond holes are planned to be drilled at the Angularli North, South and West prospects. Geological and structural logging of drill core and downhole wireline logging will be completed on each hole prior to samples being sent for multi-element analysis.

The results of drilling up-dip and down-plunge of the Angularli Deposit will be used to update the mineral resource estimate expected in late 2022.

Steven Michael

Managing Director and CEO

Tel: [phone]

Released for and on behalf of the Board of Vimy Resources Limited

5