White Energy acquires Fiddler's Creek Mining Company.

White Energy Company Limited (ASX: WEC, OTC: WECFF) ('White Energy' or 'the Company') has entered into a binding and conditional Share Sale and Purchase Agreement to buy Fiddlers Creek Mining Company Pty Ltd ('Fiddler's Creek'), owner of the Tindal and Maranoa Projects in Australia, for 4 million ordinary WEC shares and future milestone payments up to $4 million1 .

The Tindal Project covers 10,780km2 of contiguous tenements near Katherine in the Northern Territory, and whilst mainly prospective for copper and zinc, has the key structural attributes required for mineral systems hosting gold and other 'new economy' metals. The tenements are in close proximity to Encounter Resources' (ASX: ENR) Elliott Copper Project, the focus for BHP's Australian farm-in deal with an ASX explorer. Tindal lies within the under explored central area of the McArthur Basin, and shares the same geological setting as the world class McArthur River Mine, along with the Redbank, and Century base metal deposits.

The Maranoa Project is located near Texas in South East Queensland, an area with a number of historical mines and many commodity metal occurrences but has had very limited modern exploration. Along with a number of new economy mineral occurrences, the Texas area is very structurally complex, with recent company research suggesting it is prospective for porphyry-style copper-gold mineralisation and other new economy metals mineralisation. White Energy Managing Director and Chief Executive Officer, Brian Flannery, said the projects were identified as 'significantly under-explored prospective ground' and would be explored through application of technologically advanced lithospheric-scale structural geophysical analysis integrated with ionic geochemistry: 'The acquisition of the Tindal and Maranoa Projects is a significant transaction for White Energy, aligned with the Company's continuing interest in projects that include potential to host iron oxide-copper-gold mineralisation, with a broader focus on the burgeoning new economy minerals

Mr Flannery said the acquisition of Fiddler's Creek not only secured prospective ground but also provided access to vital expertise enabling White Energy to use a new integrated approach to mineral exploration. 'Modern, cost-effective geophysical techniques are being used for mapping the structure of the deep crust and upper mantle, as well as advanced surface ionic geochemistry to improve exploration outcomes for these projects,' he said. Access to advanced interpretation of ionic geochemistry of soil samples to identify subtle indicators for the circulation of hydrothermal, mineralising fluids used to improve exploration outcomes for these projects is one thing, but in addition WEC will have access to state-of-the-art geophysical techniques and expertise for analysing the structure of the deep crust and upper mantle to focus exploration. The role of mapping fertile upper mantle domains tapped by deep and often hidden crustal faults at a high angle to those mapped at the surface that transport mineralising fluids into sedimentary basins is recognised as a key factor in the formation of major mineral deposits

Mr Flannery added, their collective experience along with new machine learning would be used to interpret historical and new project data with a view to prioritise the most prospective areas to define targets for drilling in 2023. 'With in-house access to such advanced exploration methods within Australia, White Energy is looking forward to advancing our new projects and EL6566 in South Australia, while pursuing an active program of assessment and acquisition of other prospective areas,' he said. White Energy, having earlier recognised the high prospectivity for gold, copper and iron ore in EL6566 due to its location in the Olympic Dam G9 structural domain, will rationalise a series of existing targets for final definition now using the Fiddler's Creek deep crustal structural analysis and ionic geochemistry scientific methods. EL6566 shares a similar age Archaean and Proterozoic basement geology to the Challenger and Prominent Hill Mines and since 2009 the Company has continued to populate geochemical and geophysical databases to enhance the future definition of metalliferous targets, some of which are already considered drill-ready. In 2021-22, geochemical surveys in a new zone of interest in the magnetic corridors of the Hilga Mineral Field, identified several multi-element anomalies including elevated gold during a biochemical survey that will be followed-up in 2023. Historically, the search for base and precious metals by the Company has been an empirical approach based on geophysical results and drill testing adjacent to deep seated, regionally extensive structures targeting Christie Gneiss, Hiltaba-equivalent Balta Granites and their aerially extensive mafic equivalents and Gawler Range Volcanics within EL6566; known to be host geologies of iron oxide-copper-gold and Archaean gold deposits in the Northern Gawler Craton. While thick regolith cover is an impediment to target definition and discovery a new machine learning approach is expected to reveal further prospective areas within the tenement

Appointment of Independent Non-Executive Director

White Energy is pleased to advise that Mr Keith Whitehouse has been appointed to the Board as an independent non-executive director, effective today, 12 December 2022. He is a geologist with over 40 years' experience covering mineral exploration, the management and processing of exploration and mining related data and the assessment of mineral resources both in Australia and overseas. He is experienced in reporting of technical data under both the JORC Code and NI 43-101 (Canada). He has a Bachelor of Science (Geology), holds a professional certificate in the JORC Code issued by AusIMM, is a long-standing member of AusIMM and is a Chartered Professional (Geology). He holds no other directorships of other listed companies and has not held such a position in the last three years, and he has no interests in White Energy shares

Tindal Project geology (as described by Keith Whitehouse)

The Tindal Project comprises 20 contiguous tenements totaling 10,780km2 approximately 80km south of Katherine in the Northern Territory along the regionally significant Mallapunyah and Daly Waters Fault Zones. The area is in the prospective and under explored central McArthur Basin, an intracratonic to back-arc basin locally covered by Cambrian sedimentary-volcanic sequences and shallow Phanerozoic sediments, and which overlies a metamorphic and igneous basement. The area has good sedimenthosted base metal mineralisation potential, where conceivably mineralised McArthur Basin units are economically accessible at regional-scale structural highs along the Mallapunyah and Daly Waters fault zones. Located within and adjacent to the Beetaloo Sub-basin, a major petroleum province, are historic drillholes that have intersected base metal sulphides (Zn and Cu) in Tindal's project area. Using the extensive petroleum seismic lines that traverse the project area the mineralisation in these drillholes appears to be stratigraphically correlated. Technical data discussed in this section is supported by a JORC Table 1 at Appendix A. The Tindal tenements are considered to be a strategic exploration acquisition as they have key features required for major metal discoveries. Crustal faults (+40Km deep) provide a plumbing system for mantle sourced mineral enriched fluids from upper mantle and deep crustal sources, into faults which control deposition into McArthur Basin marine sediments that provide traps in the upper crust. Recent studies by numerous academic and research institutions, of sediment-hosted metal system distribution have identified a strong link to significant changes in lithospheric thickness, where more than 85% of the world's sediment-hosted base metals occur within 200km of these key zones. It is believed that edge driven convection at the Lithospheric-Asthenosphereic Boundary (LAB), drives lithospheric thickness variations and mineral fertility. The Tindal tenements sit within such a zone of abrupt lithospheric thickness change. Such a zone similarly underlies McArthur River, Redbank, Century and Prominent Hill mines. Within the tenement area historically limited exploration has yielded anomalous metal intercepts for copper and zinc from mineral, petroleum exploration and groundwater drilling. The location of these anomalies shows structural relationships that confirm the seismic interpretation. The initial sign that the area had mineralisation potential was the recognition of Cu and Zn mineralisation in the Server 1 petroleum well. Overlooked at the time the hole was drilled the mineralisation occurs in the black shale middle Velkerri Formation which has been intruded by the laterally extensive Derim Derim Dolerite Sill.

Additional copper anomalies occur within the Reward Dolomite which conformably overlies the Fraynes Formation, considered equivalent to the Barney Formation, which hosts the world-class McArthur River Mine in a Pyritic Shale Member; current thinking is that some of the mineralisation within the Beetaloo Sub-basin is associated with dolomitisation due to hydrothermal fluid alteration. Fiddler's Creek has conducted follow up geochemical sampling across the projected Mid-Velkerri sub-crop and Mallapunyah Fault Zone which demonstrated key, significantly anomalous geochemical responses that report as zoned, multi-element signatures for base, precious and other new economy metal elements, in turn supported by spatially adjacent pathfinder element associations, typical of metal zoning seen in large mineral systems hosting major metal deposits. Similarly, the Daly Waters fault zone is as a basement horst (tilted fault block) overlain by a veneer of McArthur Group and younger rocks that separate the two basinal extents of the Beetaloo Sub-basin. Within the Daly Waters fault zone (DWFZ) numerous regional-scale reactivations of normal faulting may have provided fluid foci to enrich susceptible units (Kyalla Formation, Velkerri Formation, Fraynes Formation which are equivalent to mineralised units at McArthur River Mine to the east). Evidence of metal sulphidation (elevated S, Cu, Pb, Zn, As, Mn) has been recognised in shallow drillholes (102m depth) proximal to the DWFZ in water bore drilling and seismic interpretation shows potential metal-bearing middle Proterozoic McArthur Basin units could be as shallow as 100-200 m along the hinge of the Daly Arch. In the southern part of the Daly Water Fault zone follow up geochemical sampling indicated significant multi-element zonation, a characteristic of major mineral systems, on the flanks of the Daly Arch. These results suggest migration of metalliferous fluids with selective spatial concentrating processes. The relationship of the Derim Derim Sill to potential mineralisation has been recognised by research from the University of Adelaide in conjunction with the Northern Territory Geological Survey which suggests that the Derim Derim Dolerite is part of a new Large Igneous Province (LIP). Geochemistry and innovative geochronology work has dated Derim Derim samples to a single magmatic event between 1330 and 1295 Ma, with the source/centre further north in the Gulf of Carpentaria. Critically these ages match that of the Yanliao LIP in the North China Craton, in which granite and carbonatite intrusions provide the source of China's dominant reserves of rare earths. The research considers there were contemporaneous extrusions of these dolerites from melts associated with a single mantle plume event, occurring when the Northern Australian and China cratons were adjacent as part of the Nuna Supercontinent in the Mesoproterozoic Era. Fiddler's Creek have identified anomalous rare earth element signatures in soils it has sampled over Derim Derim Sill positions at depth in Sever-1 well and above the projected subcrop position nearer surface to the northeast. In summary, the Tindal project over the Beetaloo Sub-basin has deep basinal depressions that host significant thicknesses of hydrocarbon/organic/sulphide/metal rich sediments, e.g. the Mid-Valkyrie Formation of the Roper Group - all key ingredients in other global Tier 1 base metal deposit/critical mineral systems. High heat flow attributed to uplift of asthenosphereic mantle during rifting resulted in bimodal magmatism (evidenced by granite intercepted in water bores and the extensive Derim Derim Sill) likely drove hydrothermal fluid flow systems in the sub-basin. Major structural features including the Mallapunyah Fault system, the DWFZ and Daly Arch provide linkages to deep plumbing systems and sources of heat, along with mechanisms to concentrate, mobilise and deliver metal rich products to nearer surface depositional sites.

Contact:

Mr Brian Flannery

Managing Director & CEO

E: [e-mail]

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