Wiluna Mining : Wilconi Joint Venture Update

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ASX Announcement

21 March 2022

ASX: WMC

WILCONI JOINT VENTURE UPDATE

Wiluna Mining Corporation Limited ("Wiluna", "WMC" or "the Company") (ASX: WMC) is pleased to advise of the attached Resource Update announcement by our Joint Venture partner A-Cap Energy Ltd.

The Wilconi Joint Venture (WMC currently 80%, with A-Cap earning 75%) was established in 2019 to explore and develop the large-scale Wiluna nickel-cobalt laterite resource.

WMC also owns 100% of the mineral rights to nickel-cobalt-PGE sulphides (Ni-Co-Cu-PGE) including the high-grade Bodkin discovery in the Wiluna Nickel Project, which the Company is exploring with planning in progress for a new EM geophysical survey (see ASX release 17 August 2021).

WMC's tenure in the richly endowed Wiluna Nickel Project comprises 40km of strike extent of the Perseverance ultramafic sequence that is prospective for tier-1(Ni-Co-PGE) discoveries.

END

This announcement has been approved for release by the Executive Chair of Wiluna Mining Corporation Limited. For further information on Wiluna Mining please contact:

Milan Jerkovic	Jim Malone	Dannika Warburton
Executive Chair	General Manager Investor Relations	Media & Communications
[phone]	[phone]	[phone]

About Wiluna Mining

Wiluna Mining Corporation (ASX: WMC) is a Perth-based, ASX listed gold mining company that controls over 1,600 square kilometres of the Yilgarn Region in the Northern Goldfields of Western Australia.

The Yilgarn Region has a historic and current gold endowment of over 380 million ounces, making it one of most prolific gold regions in the world. The Company owns 100% of the Wiluna Gold Operation which is one of the largest gold districts in Australia under single ownership based on overall JORC Mineral Resource.

BOARD OF DIRECTORS	CORPORATE INFORMATION	Level 3, 1 Altona Street, West Perth, WA 6005
Milan Jerkovic - Executive Chair	211.3M Ordinary Shares	PO Box 1412 West Perth WA 6872
Greg Fitzgerald - Non-Executive Director	3.7M Unquoted Options/ZEPO's	T [phone]
Lisa Mitchell - Non-Executive Director		[e-mail]
Colin Jones - Non-Executive Director		wilunamining.com.au
HJ Plaggemars - Non-Executive Director
Rowan Johnston - Non-Executive Director

ASX: WMC | wilunamining.com.au

Page 1

(ABN 28 104 028 542)

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ASX Release

Friday 18 March 2022

ASX:ACB

WILCONI NICKEL-COBALT PROJECT JORC RESOURCE UPDATE MARCH 2022 Moving the resource from inferred to indicated category as the PFS continues

HIGHLIGHTS

• Infill drilling at Wilconi confirms Nickel - Cobalt resource of 90 million tonnes at a 0.5% Nickel cut-off grade;
• Mineral Resource estimate reports 660,000 tonnes of contained Nickel and 46,400 tonnes of contained Cobalt;
• 29 million tonnes (32%) of the Mineral Resource estimate is classified as Indicated;
• The next phase of the Wilconi work will be to move to the measured category as well as infill drill zones of higher- grade nickel and cobalt intersected in the recent programme.
• A large diameter diamond drilling programme has recently been completed, and metallurgical samples are currently being tested at Simulus Group's facility in Perth.

Following a 256 RC infill drilling program in 2021, A-Cap Energy Limited (A-Cap, the Company) has upgraded the Wilconi Ni-Co resource, with parts of the resource now reported as Indicated. Independent geological resource specialists, Mining Plus Pty Ltd (Mining Plus) were commissioned by A-Cap using historical and recent drilling data to update the Wilconi Mineral Resource estimate, which is presented in Table 1. Grade- tonnage information at various other Ni cut-off grades are shown in Table 2.

	Category			Cut-Off			Tonnes			Ni %			Co %			Nickel Metal			Cobalt Metal
			(Ni %)			(Mt)							(Tonnes)			(Tonnes)
	Indicated	0.5		29		0.80		0.063		230,000		17,900
	Inferred	0.5		62		0.70		0.046		430,000		28,500
	Total	0.5		90		0.73		0.051		660,000		46,400

Rounding may cause minor inconsistencies

Table 1 February 2022 Wilconi Nickel Cobalt Mineral Resource Estimate

	Cut-Off			Tonnes			Ni %			Co %			Nickel Metal			Cobalt Metal
	(Ni %)			(Mt)							(Tonnes)			(Tonnes)
0.5		90		0.73		0.051		660,000		46,400
0.6		70		0.78		0.055		540,000		38,200
0.7		44		0.86		0.061		380,000		27,100
0.8		25		0.94		0.069		240,000		17,400
0.9		13		1.02		0.078		130,000		10,300

Rounding may cause minor inconsistencies

Table 2 Wilconi Nickel Cobalt grade-tonnage information at various Ni cut-off grades

Figures 1 and 2 below show representative cross sections of the nickel and cobalt mineralisation zones. Location of the sections are shown in Figure 3. Details of the drill holes shown in Figures 1 and 2 are listed in Annexure A.

A-Cap Energy Limited - 52 Ord Street, West Perth WA 6005 - T: [phone] F: [phone]

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(ABN 28 104 028 542)

Figure 1 Cross section YY' of the Wilconi resource showing nickel and cobalt mineralision zones

A-Cap Energy Limited - 52 Ord Street, West Perth WA 6005 - T: [phone] F: [phone]

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Figure 2 Cross section XX' of the Wilconi resource showing nickel and cobalt mineralision zones

Metallurgical work on Wilconi (refer ASX announcement 23/8/19) demonstrated that the Wilconi mineralisation is suited to a number of favourable extraction possibilities, and the current metallurgical work will be aimed at optimising the most suitable treatment flowsheets ready for pilot scale work. As well as metallurgical drilling, the Company will be infill drilling to progress resources to the indicated and measured category.

The chairman of A-Cap Energy, Mr Jiandong He commented, "The recent resource work has moved a good proportion of the Wilconi resource to indicated status. Ongoing metallurgical work and infill drilling will continue to add value to this project. Along with our Company's uranium project in Botswana, ACap Energy has a strong position in future metals, with two advanced major projects in its portfolio".

MATERIAL INFORMATION SUMMARY

Pursuant to ASX Listing Rule 5.8.1 the following summary is provided of information material to understanding the Mineral Resource estimate.

GEOLOGY AND GEOLOGICAL INTERPRETATION

The Wiluna nickel-cobalt laterite deposit is located within the Archaean Norseman-Wiluna greenstone belt. The nickel-cobalt mineralisation has developed through lateritisation of the Perseverance ultramafic sequence and extends for around 20 km along strike and is up to 1,500 m wide.

The Perseverance ultramafic sequence trends NNW-SSE and dips steeply towards the east. Locally, the geology consists of a less continuous western ultramafic sequence, and a more continuous eastern ultramafic sequence (Figure 3). The eastern sequence is offset by a north-south trending fault at around 7,056,000 mN, interpreted from aeromagnetic data. Both the western and eastern sequences contain similar lithologies of olivine orthocumulate, olivine mesocumulate and minor olivine adcumulate rocks. Pyroxene cumulate and gabbro is generally located along the western margins, with olivine pyroxene cumulate found along the eastern margins. At the boundaries of the ultramafic sequence are generally intermediate and mafic volcanic rocks and dolerite.

The region is covered by a thick blanket of lateritic regolith and outcrop is sparse and the detailed geological understanding is based primarily on the extensive drilling conducted over the deposit. Nickel and cobalt mineralisation has been formed by intense weathering (lateritisation) and has concentrated in a saprolite clay layer that overlies the ultramafic rock unit. The depth to significant (>0.5% Ni) mineralisation ranges from 2 m to 60 m. The nickel mineralisation zone can be up to 30 m thick, averaging around 4 m in thickness. Detailed studies have shown that cobalt has been preferentially enriched in the upper portion of the saprolite clay layer and this zone has been modelled independently and incorporated into the updated resource estimate.

Representative cross sections through the nickel and cobalt mineralised zones are shown in Figures 1 and 2 above.

A-Cap Energy Limited - 52 Ord Street, West Perth WA 6005 - T: [phone] F: [phone]

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Figure 3: Local sub-surface geology for the Wilconi Ni-Co deposit

A-Cap Energy Limited - 52 Ord Street, West Perth WA 6005 - T: [phone] F: [phone]

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