West Wits Mining : Quarterly Activities Report - period ended 30 September 2021

ASX Announcement

Friday, 29 October 2021

Quarterly Activities Report

Reporting Period 1 July - 30 September 2021

HIGHLIGHTS

• ➢ Witwatersrand Basin Project ("WBP") Mining Right application granted

• ➢ Global JORC Mineral Resource Estimate ("MRE") for WBP Mining Right area restated at 25.91Mt @ 4.26g/t for 3.55Moz Au (2g/t cut-off)1

• ➢ WBP Scoping Study results provide for a five-stage development and Production Target of 80,000oz Au pa average steady-state production over 18 Years with 95,000oz Max Annual Gold Production in Year 72, demonstrating the WBP's potential to be WWI's cornerstone project as the Company aims to become a mid-tier gold producer.

• ➢ WBP Stage 1 Qala Shallows Definitive Feasibility Study ("DFS") results:

  • o Maiden Ore Reserve of 3Mt at 2.88g/t for 278 000oz3

  • o Production Target 17-year LOM project and 7.3MT at 2.81g/t recovered grade for 663,000oz Recovered Gold; a steady-state production of 53 000oz per annum3

  • o All In Sustaining Cost ("AISC") of an estimated US$1,144/oz Gold with a steady state AISC of US$1,027/oz3

  • o Pre-tax NPV7.5 of US$150 million (AU$205m) and IRR of 35% at a Gold Price of US$1,750/oz3

• ➢ Operations commenced at the Qala Shallows Early Mining Initiative

• ➢ Prospectivity of Uranium for WBP Mining Right reviewed4

• ➢ Mt Cecelia MLTEM data provides robust first-pass exploration drill targets anticipated to commence in 2022 field season5

West Wits Mining (ASX: WWI, 'West Wits' or 'the Company') is pleased to present its latest quarterly report for the period ending 30 September 2021.

SOUTH AFRICA

Witwatersrand Basin Project ("WBP"); Central Rand (WWI: 66%), Gauteng Province

Exploration, Prospecting Right and Mining Right

As announced in the prior period activities report, the Kimberley East infill drilling program exploration results and updated resource modelling were released on 5th July 2021. The resource update covered the existing Prospecting Right ("PR") at that time, increasing the global MRE to 32.78Mt @ 4.24g/t for 4.47Moz Au (2g/t cut-off)6. In July 2021, West Wits received formal communication from South Africa's Director General of the

Department of Mineral Resources and Energy("DMRE") that the Company's Mining Right application was

granted in terms of section 23(1) of the Mineral and Petroleum Resources Development Act, 2002 (Act 28 of 2002).

Upon granting of the Mining Right, the global MRE was subsequently restated to 25.91Mt @ 4.26g/t for 3.55Moz Au (2g/t cut-off) on 23rd July 20211 (Table 1), allowing for the reduced mining right tenement footprint compared to the previous PR area.

Table 1: Updated Global MRE for the Witwatersrand Basin Project at 2.0g/T Cut-Off1

MRE Category	Tonnes (M)	Grade (g/t Au)	Ounces
Measured	4.91	4.33	683,000
Indicated	12.70	3.84	1,570,000
Measured & Indicated	17.61	3.98	2,253,000
Inferred	8.31	4.86	1,298,000
Total	25.91	4.26	3,551,000

Notes: Global MRE is set at a 2.0g/t Au cut-off and reported in accordance with the JORC Code of 2012. Number differences may occur due to rounding errors. The MRE is inclusive of declared Ore Reserves.

The Mining Right footprint was constrained relative to the PR area to minimise the impact of the mine on interested and affected parties. The areas not included in the reduced Mining Right area are non-core and do not affect the mine plan. A PR lodged by the Company has been accepted by the DMRE to re-secure certain sections of the old PR area and thereby reintroduce additional Mineral Resources to the MRE. The Company anticipates that, subject to the granting of the new PR, a significant portion of the old Mineral Resource will be recaptured.

Image 1 outlines the granted Mining Right boundary which replaces the previous PR boundary. The new PR, when granted, will re-introduce areas of long-term interest.

Image 1: The WBP's granted Mining Right boundary (blue line) replaced the previous Prospecting Right boundary (red line).

The Company has applied for a new Prospecting Right (yellow area) to re-introduce areas of long-term interest.

Lawyers for Human Rights ("LHR") lodged an appeal application against the DMRE's granting of the MR and a review application directed against the decision of the Minister of Environment, Forestry and Fisheries ("the Minister") which dismissed a previous appeal LHR pursued against the original decision of the DMRE to grant an Environmental Approval for the WBP9.

The applications again put forward arguments that have been previously raised and rejected by both the DMRE and the Minister. West Wits believes the applications are simply an attempt to cause disruption and is without legal merit.

WBP Scoping Study and Production Target

Bara Consulting Pty Ltd ("Bara") updated the original WBP Scoping Study to allow for the restatement of the K9A and K9B JORC compliant Mineral Resource models. The removal of the Exploration Target and reduction ofInferred Mineral Resources in the early stage of mining in the updated production model enabled the release of the WBP production target2.

The Scoping Study results firmly established the WBP's potential to progress into a long-term gold mine with average steady-state annual production of 80,000oz for 18 years and 22-year Life-of-Mine ("LOM") (Table 2) for the five staged development2. The results indicated that WBP has the potential to build up to a peak production rate of over 95,000oz per annum2. The Scoping Report outlined a production target which averages 90,000oz from Year 6 to 11, as production reaches steady-state from the Qala Shallows, Main Reef package and Bird Reef East areas2.

Table 2: WBP's Key Production Metrics2

WBP - SCOPING STUDY - PRODUCTION DATA	OUTCOME
Life of Mine (Construction to Relinquishment)	25 Years
Total Years of Production	22 Years
Total Production (Ore Tonnes)	16,000,000
Max Production Rate (Ore Tonnes)	850,000tpa
Contained Grade Au (Average)	3.4g/t Au
Run of Mine Grade Au (Average)	3.0g/t Au
LoM Contained Au oz	1,730,000oz
Metallurgical Recovery Au (Overall)	90%
Total Gold Produced	1,560,000oz
Average Annual Gold Production (22yrs) 1	70,000oz
Average Annual Steady State Gold Production (18yrs) 2	80,000oz
Max Gold Production (Year 8)	95,000oz

• 1 Over All Production Years, 22yrs (Yr3 - Yr24)

• 2 Steady State - excludes ramp up and ramp down production - 18yrs (Yr5 - Yr22)

Image 2 provides a graphical representation of the WBP's production profile and incremental contributions of each development stage identified by the Scoping Study.

Image 2: The WBP Scoping Study's ROM production schedule in annual ounces of gold by stage over the WBP's 25-year life-of-mine2.

Qala Shallows (Stage 1) Definitive Feasibility Study

Qala Shallows is the first of five distinct mine stages identified by Bara's initial Scoping Study on the Kimberley

Reef. Qala Shallows provides the backbone to underpin subsequent stages of production over a long LOM.

Additionally, the combination of the existing infrastructure (Qala Adit) and accessible shallow Mineral Resource allow access for production on a fast-tracked timeframe relative to most global opportunities for underground gold mining.

The Qala Shallows Definitive Feasibility Study ("DFS") results were released during the reporting period and confirmed the robust economic viability of Qala Shallows. Qala Shallows has the potential to ramp-up to a ROM steady-state production of approx. 56,000oz Au per annum over approximately eleven years and peak production 60,000oz3.

First ore is expected to be extracted 12-months from the commencement of development, building up to an annualised production rate of 25,000oz Au per annum after 30 months and reaching a full steady-state ROM production rate of 56,000oz Au per annum after year four3. Image 3 updates the Qala Shallows production profile to a DFS level of accuracy. The remaining four stages are at Scoping Study level and will be subjected to individual DFS's as WWI progresses towards execution. The DFS on the second stage of development, Main Reef, is expected to commence before the end of 2021.

Image 3: The Qala Shallows Production Profile, showing Waste and Ore mining, overlaid with the ounce profile over the LOM3.

Table 3: Qala Shallows DFS - Key Production Metrics3

Table 4 Ore Reserve Statement - shows that the Qala Shallows hosts a significant Ore Reserve of 3MT at 2.88g/t for 278 000oz Au3.

The DFS' financial evaluation of Qala Shallows was undertaken using a discount cashflow analysis. The evaluation used a gold price of US$ 1,750 per ounce and a rate of exchange of R 15/US$.

The financial model for the Qala Shallows includes detailed capital and operating cost estimates for all infrastructure, equipment and labour complement required over the LOM. The cost estimates have been compiled by estimating quantities of materials from drawings, the mining schedule and from requesting prices and rates from suppliers and contractors.

Table 5 shows the DFS key baseline financial metrics for the Qala Shallows Project3.

Early Mining Initiative at Qala Shallows

Ground operations commenced at the Qala Shallows in September 2021, with bush clearing, site preparation and underground technical surveys. Information gathered on underground inspections has confirmed there is sufficient ROM remnant material left over from the old mining operations to kick-start WWI's Early Mining Initiative. Early works are being implemented over a six-month period from October 2021 to March 2022, with initial production aimed at delivering 5,000t to 8,500t ore per month from February 2022 which is expected to ramp up to a production rate of 8,500 to 10,000t per month from July 20227.

Phase 1: Bush Clearing and Preparation (September 2021)

Through West Wits' program to empower the local community, Siyabhowa-Humba JV was appointed to initiate bush clearance and undertake site preparation to ensure early access for the appointed mining contractor. Image 4 shows an aerial view of the preparation progress on the site.