Vimy Resources Limited (ASX: VMY, OTCQB: VMRSF) (Vimy or Company) is pleased to announce that it has formally submitted notification of 'substantial commencement' of the Mulga Rock Uranium Project (Mulga Rock) to the Western Australian Department of Water and Environment Regulation (DWER).

Implementation of Mulga Rock was approved under Ministerial Statement No. 1046 (MS 1046) on 16 December 2016. Under conditions 3-1 and 3-2 of MS 1046, Vimy is required to substantially commence implementation of the Proposal within five years and provide notification and supporting evidence

Since receiving Ministerial approval in 2016, Vimy has diligently progressed the project and undertaken significant work at Mulga Rock. Major milestones include: Completion of the 2018 Definitive Feasibility Study (DFS) and 2020 DFS Refresh; Approval of eight Condition Environmental Management Plans - with the last approved in April 2021; Approval of the Mulga Rock East Project Management Plan - granted on 26 August 2021; Approval of the Mulga Rock East Project Mining Proposal on 29 September 2021 and Commencement of the Early Works Program - now largely completed.

Since commencing the Early Works Program in late September 2021, Vimy has cleared approximately 143 hectares and stockpiled the corresponding soil and growth medium. The area cleared covers the first open cut mine pit under the approved Mining Proposal, the first 'Overburden Landform', the area for the accommodation village and communications tower, borrow pits and upgrades to existing site access roads

Vimy's Interim CEO, Steven Michael said: 'Notification of substantial commencement at Mulga Rock is a proud moment and major milestone in the development of Western Australia's first uranium mine. The Vimy Board, management and consultants have diligently advanced the project over the last five years and what our on-site team and contractors have achieved since receiving approval of the Mining Proposal just two months ago is amazing. The foundations are now in place to build a long-life, strategic resource project for Western Australia, and the Board of Vimy is focussed on rapidly advancing Mulga Rock to its next development milestone. Vimy will continue to work co-operatively with the various State and Federal government departments to obtain the approvals required to ensure Mulga Rock delivers first uranium production in 2025. Once developed, Mulga Rock will produce 3.5Mlbs of uranium oxide per annum and will power eight nuclear power stations which is equivalent to 70% of Western Australia's greenhouse gas emissions or 12% of Australia's total emissions.

Mulga Rock Substantial Commencement Vimy has determined that the cumulative clearance of approximately 162 hectares and movement of approximately 800,000 bcm of soil and growth medium constitutes substantial commencement of implementation of the Proposal, as required under MS 1046. The area cleared covers the first open cut mine pit required to be cleared under the approved Mining Proposal, the first 'Overburden Landform' associated with that pit (classified as 'Associated Infrastructure'), the area for the accommodation village and communications tower, borrow pits and upgrades to site access roads, consistent with the project schedule. The topsoil and growth medium removal has taken place at both 'Elements' in compliance with approved MS 1046, Conditional Environmental Management Plans, Project Management Plan, and Mining Proposal and Mine Closure Plan.

Vimy and its predecessor companies have invested over $100 million (in 2021 dollars) in progressing Mulga Rock to the current stage of development. Since MS 1046 was issued in December 2016, Vimy has spent over $20 million on the development of Mulga Rock, with a further $8 million of expenditure approved for the completion of the Early Works Program which is currently underway and is scheduled to be completed by the end of January 2021.

Development of Mulga Rock will have significant benefits to the Western Australian economy, including more than 550 personnel directly employed on the project during construction and the creation of approximately 350 site-based permanent employees and 25 Perth-based support personnel when in operation. Mulga Rock is expected to generate more than $200 million in state royalties over its 15-year mine life

Radiation Management Plan

A Radiation Management Plan (RMP) and Radiation Waste Management Plans have been submitted to the Department of Mines, Industry Regulation and Safety (DMIRS) and Radiological Council of Western Australia. They are currently being finalised following extensive consultation with the regulator. The grant of the RMP under s16.7(1)(b) of the Mines Safety and Inspection Regulations 1995 will allow Vimy to initiate mining activities and overburden removal in accordance with Mining Proposal #92188.

Works Approval

The Western Australian Department of Water and Environmental Regulation (DWER) regulates industrial emissions and discharges through a works approval and licensing process, under Part V of the Environmental Protection Act 1986 (EP Act). The EP Act requires a works approval to be obtained before constructing prescribed industrial premises. Vimy is working cooperatively with DWER on the Mulga Rock Project works approval submission.

Sandhill Dunnart Conservation Plan

The Sandhill Dunnart Conservation Plan (SDCP) is designed to reduce the threat posed by feral animals to the sandhill dunnart, a small marsupial that inhabits isolated sandy arid and semi arid areas. In accordance with Vimy's approval process under the Commonwealth Environment Protection and Biodiversity Conservation Act 1999 (EPBC), Vimy has engaged highly experienced consultancy GHD Group to prepare the required SDCP. As part of the sandhill dunnart monitoring program, cameras have been deployed within the defined area to monitor the presence of sandhill dunnarts and feral animals - data gained from this monitoring will be used in conjunction with the SDCP to manage predators or threats to the sandhill dunnart within the defined area. Vimy expects the SDCP to be submitted to the Commonwealth for approval in Q1 2022. Once the SDCP has been approved, Vimy will be allowed to commence construction of the Mulga Rock airstrip. In the interim, Vimy has refurbished the existing Officer Basin airfield to support the company's Early Works Program.

Contact:

Steven Michael

Tel: +61 8 9389 2700

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