Mt Edon Exploration Target Defined – Drilling to Recommence

MT EDON EXPLORATION TARGET DEFINED, SUPPORTING RESOURCE DRILLING COMMENCEMENT

CONTINUED HIGH GRADE RUBIDIUM – LITHIUM ASSAYS FROM SURFACE

Highlights

• Exploration Target estimate delivered[1] and highlights Mt Edon deposit remains open to the north and at depth
• Mineralisation occurs from surface and estimation of the Exploration Target was limited to 100 metres depth
• Resource drilling program to commence in mid- March quarter 2024
• Rock Chip sampling delivers further high-grade Rubidium-Lithium results up to 2.3% Rb₂O and 3.7% Li₂O
• EMC continues mineralogical and processing studies for extraction of Rubidium as a strategic critical mineral

“This initial exploration target comes off the back of world class rubidium and lithium intersections and highlights the critical mineral potential at EMC’s Mt Edon project. The Company remains confident in moving to next phase of resource exploration drilling to quantify this system whilst exploring extraction technology over the first half of 2024. Continued high grade assays from a wide variety of surface samples further confirms the development strategy”.

Chief Executive Chairman Mark Caruso commented on the exploration target and resource drilling program at Mt Edon:

Everest Metals Corporation Limited (ASX: EMC) (“EMC” or “the Company”)is pleased to announce the initial Exploration Target¹ (JORC 2012) ranges from 3.2 to 4.5 million tonnes with a grade of 0.23 to 0.35% Rb₂O and 0.08 to 0.12% Li₂O at the Mt Edon Critical Mineral Project (M59/714) (“Mt Edon”) located 5km southwest of Paynes Find, in the Mid-West region of Western Australia (Figure 4).

EXPLORATION TARGET

The maiden Exploration Target is based on the results of exploration activities undertaken to date and supported by the drill hole database containing over 600m of reverse circulation drilling (Appendix 1) in the northeast corner of the Mt Edon mining lease, geological mapping, and estimation in accordance with the JORC Code (2012). The reported Exploration Target is exclusively defined by wide spaced drilling which is insufficient to support either indicated or inferred resource classification (Figure 1). Importantly, the Exploration Target does not include any untested targets along strike or at depth extensions which have yet to be drill tested as the absence of any material geological information is considered insufficient to estimate an Exploration Target at this time, however these areas provide excellent exploration potential given the Pegmatite zones, being the principal control on mineralisation, has been mapped over the entire Mt Edon project and will be drill tested in the next phases of the planned exploration program.

Initial Exploration Target comprises only the north-eastern corner of the Mt Edon mining lease, the surrounding mineralised area measuring approximately 450m x 100m. The estimate was limited to a vertical depth of about 100m below surface and highlights that Mt Edon may have the scale, grade, and other attributes to justify its continuing evaluation as a possible producer of a Rubidium concentrate that could then be processed for application in high technology manufacturing industries.

Figure 1: Summary of drilling data used in the Exploration Target estimation of Mt Edon northeast corner (GDA94/MGA Zone 50)

The Exploration Target was wireframe constrained using a 0.05% Rb₂O cut-off grade for near surface mineralisation that may be considered for economic extraction by open pit methods. If an intercept within the mineralised wireframe fell below the designated cut-off value, it was still considered for continuity if supported by the consistent geological formations, owing to the deposit style and nature of mineralisation. A combination of both Ordinary Kriging and Inverse Distance were selected with all estimates treating domain boundaries as hard boundaries for grade estimation purposes, where only composite samples within that domain are used to estimate blocks coded as falling within that domain (Figure 2). An average density of 2.6 was chosen to calculate the tonnage of the mineralised wireframes from the model volumetric parameters. The basis of the Exploration Target was subsequently defined as those areas where the drilling data and sample support did not meet the criteria for either indicated or inferred resource classification.

Figure 2: Wireframe encompassing the mineralised holes at the Mt Edon tenement

The current Exploration Target (JORC 2012) ranges from 3.2 to 4.5 million tonnes with a grade of 0.23 to 0.35% Rb₂O and 0.08 to 0.12% Li₂O (Table 1 and Figure 3).

Table 1- Mt Edon Exploration Target estimate summary

Category	Lower Limit (Mt)	Upper Limit (Mt)	Grade Range Rb2O (%)	Grade Range Li2O (%)
Exploration Target	3.2	4.5	0.23 – 0.35	0.08 – 0.12

• All tabulated data have been rounded
• The potential quantity and grade of mineralisation is conceptual in nature
• The Exploration Target is reported as a range of grade and tonnages for the project based on drillhole data statistical confidence limits and various assumptions of continuity

Cautionary Statement:

The Exploration Target has been prepared and reported in accordance with the 2012 edition of the JORC Code. The potential quantity and grade of the Exploration Target is conceptual in nature. There has been insufficient exploration to estimate a Mineral Resource. It is uncertain if further exploration will result in the estimation of a Mineral Resource.

ROCK CHIP SAMPLING

During a site visit and remapping of pegmatite outcrops in early November 2023, 5 rock chip samples were taken from the pegmatite outcrops (Figure 4) and submitted to ALS laboratory in Perth for assay using the process of a 4-acid digest followed by Lithium Borate Fusion ICP-MS for detection. Assay results of up to 2.3% Rubidium (Rb₂O), 3.7% Lithium (Li₂O) and 1495 ppm cesium taken from rock chip samples were reported. The high Potassium / Rubidium (K/Rb) ratio of these samples reflects the degree of substitution of Rb for K in the mica’s crystal structure. All the samples are indicative of a highly fractionated material and show high Lithium-Cesium-Tantalum (“LCT”) fertility pegmatites. These results are in line with the high-grade surface rock chip samples reported from Mt Edon in June 2023[1], which emphasised the high potential of LCT mineralisation at the Mt Edon mining lease and will be used for next stage drilling target optimisation.

Table 2- Chemical analysis results of rock chip samples (Rb₂O and Li₂O calculated)

Sample_ID	Easting	Northing	Li (%)	Li2O (%)	Rb (ppm)	Rb2O (%)	K2O (%)	Cs (ppm)	Nb (ppm)	Ta (ppm)	Sn (ppm)
MD-11	564565	6756453	1.23	2.64	19750	2.16	7.48	1025	46	85.5	268
MD-12	564567	6756455	1.44	3.10	23600	2.36	6.96	1495	53	140	188
MD-13	564634	6756521	1.04	2.25	15900	1.59	5.87	845	76	72.3	210
MD-14	564567	6756435	1.72	3.71	23100	2.31	7.82	1405	60	110	267
MD-15	565435	6756411	1.18	2.55	20500	2.05	8.49	1045	76	146.5	254

• Grid is GDA94 – Zone 50

Figure 3: Location of rock chip samples and drilled RC drill holes in northeast corner of Mt Edon tenement

A summary of the important assessment and reporting criteria used for this exploration target and exploration results announcement is provided in Appendix 2 – JORC Table 1 in accordance with the checklist in the Australian Code for the Reporting of Exploration Results, Mineral Resources, and Ore Reserves (The JORC Code, 2012 Edition). Criteria in each section apply to all preceding and succeeding sections.

BACKGROUND

Mt Edon Pegmatite Project sits on mining lease M59/704 and covers the southern portion of the Paynes Find greenstone belt in the southern Murchison which hosts an extensive pegmatite field. There are several large irregular shaped felsic pegmatites which have intruded into the Paynes Find Greenstone Belt, a northeast trending sequence of mafic, ultramafic, and sedimentary rocks, with east-west structures cutting through these metasediments. Pegmatites appear to be folded sills dipping in variable directions and angles and are connected at depth representing both sill and dyke structures. These prospective pegmatites have a northeast-southwest strike of up to 350m and occur along a 1.2km interval of the LCT pegmatite corridor. Larger pegmatitic bodies appear less influenced by the underlying structural trends and fabrics, with many of these bodies cutting both structural fabrics. The larger pegmatitic bodies are interpreted as blowouts related to structural intersections.

Figure 4: Mt Edon mining lease location map

Two stages of RC drilling were completed at the Mt Edon mining lease in late May and early August 2023. During Stage-1 drilling in late May 2023, drill hole ME23-07 intersected a mixed zone of altered mafic host rock and 62m of pegmatite up to a depth of 111m and remained open. Geological logging of the chip samples highlighted well-developed muscovite-rich zones. Hole ME23-007 intersected over 40 metres grading 0.26% Rb₂O from 49m, including 19m at 0.33% Rb₂O (0.43% Rb₂O + Li₂O), in addition to three higher grade zones of 2m @ 0.53% Rb₂O + Li₂O (14-16m), 2m @ 0.53% Rb₂O + Li₂O (20-22m) and 2m @ 0.53% Rb₂O + Li₂O (30-32m)^[2]. The entire mineralised intersection within ME23-007 indicates the highly fractionated and fertility of the pegmatite in the northeast corner of Mt Edon. The pegmatite body in this hole remained open at a depth of 111m (dip 60 degree) and shows there is high potential for lateral extensions particularly toward the northeast.

In August 2023, Stage-2 drilling was designed to unlock the potential of a 600m pegmatite sitting along a northeast-southwest strike. This zone was interpreted to be a mineralised alteration zone located between the intrusive pegmatites and the mafic country rock. 10 x RC holes were drilled along this trend and all intercepted significant rubidium-lithium results. Some of the thickest and highest-grade intersections are outlined below^[3]:

• Hole ME23-019 intersected over 80 metres grading 0.32% Rb₂O and 0.11% Li₂O from 25m, including 9m at 0.47% Rb₂O from 87m.
• Hole ME23-018 intersected 31 metres grading 0.21% Rb₂O and 0.12% Li₂O from 35m, including 7m at 0.34% Rb₂O from 39m.
• Hole ME23-016 intersected 2 metres grading 0.34% Rb₂O and 0.42% Li₂O from surface and 8 metres grading 0.13% Rb₂O from 19m.
• Hole ME23-015 intersected 15 metres grading 0.22% Rb₂O and 0.27% Li₂O from 14m, including 5 meters at 0.27% Rb₂O and 0.6% Li₂O from 22m.

Significant anomalous LCT elements that occurred in association with rubidium with a maximum value 0.51% Rb₂O, include maximum values in individual drilling assay Li₂O at 0.94%, Cs at 535 ppm, Nb at 247ppm, Ta at 278ppm and Sn at 155 ppm. Additionally, findings from both the Stage-1 and Stage-2 drilling programs suggest that Mt Edon has the potential to be classified as a Rubidium-Lithium project^[4].It seems that the high value of rubidium grades is primarily associated with well-developed white mica zones.

The Company is currently conducting mineralogical investigations using Electron Probe Micro-Analyzer (“EPMA”), and Laser Ablation Inductively Coupled Plasma Mass Spectrometry (“LA-ICP-MS”) techniques. This research aims to provide a more comprehensive understanding of the mineral composition of the high-grade rubidium and to characterise the mineral assemblage within the LCT pegmatites (ore characterisation study) at Mt Edon. The Company aims to focus mineralogical and geo-metallurgical studies to understand the nature of the resource as well as review various mineral processing technologies to enrich rubidium and lithium recoveries from the Mt Edon pegmatites. In November 2023, the Company has signed a Memorandum of Understanding (“MOU”) with Edith Cowan University (“ECU”) to collaborate on Direct Rubidium extraction from the Mt Edon project. The MOU will allow cooperative activities in the ECU’s Mineral Recovery Research Centre (“MRRC”) for a period of 36 months to undertake Direct Rubidium Extraction process though advanced processes such as ion exchange. The process encompasses purification and refining, ultimately leading to the conversion into a final product such as Rubidium slat and metal. Under the MOU any intellectual property rights deriving from the project will be owned by EMC^[5].

RUBIDIUM PRICE AND MARKET

Rubidium is a US designated Critical (high value) Metal used for[6]:

• Fiber Optic Telecommunication Systems
• Photoelectric cells (solar panels)
• Motion sensor/Night Vision devices
• Medical Imaging
• Military Industrial

Rubidium’s potential as a component in sodium-ion batteries has seen growing interest in the rare metal market[7]. According to the January 2022 US Geological Survey of Mineral Commodities[8], rubidium and cesium can be used interchangeably in many applications because they have similar physical properties and atomic radii.

The price of Rubidium Carbonate is currently over USD1,100/kg which is one of the highest value critical metals[10].

NEXT STEP

• Resource and new target drilling, planned to commence March 2024 quarter.
• Geo-metallurgical test work and mineralogical studies by Electron Probe Microanalysis (EPMA) and Laser Ablation Inductively Coupled Plasma Mass Spectrometry (LA-ICP-MS) to characterise the mineral assemblage of LCT pegmatites and mineralogy high grade rubidium.

---

[1] ASX: EMC announcement; High Grade Lithium up to 4.6% (Li₂O) & Rubidium up to 3.1% (Rb₂O) From Surface Rock Samples, dated 13 June 2023

[2] ASX: EMC announcement; Mt Edon Drilling Results Confirms High Grade Rubidium, dated 13 July 2023

[3] ASX: EMC announcement Mt Edon Drilling Program Continues to Deliver, 80m High Grade Rubidium Intersection with Associated Lithium, dated 21 September 2023

[4] The high-grade intersected Rubidium is in line with world class Rubidium occurrences including the Karibib pegmatite deposit in Namibia (8.9 Mt at 0.23%Rb) and Guobaoshan deposit in China (234 Mt at 0.12%Rb).

[5] ASX: EMC announcement EMC to Progress Rubidium Extraction Strategies at Its World Class Mt Edon Critical Mineral Project, dated 6 November 2023

[6] Global Rubidium Market Outlook to 2028, BlueQuark Research & Consulting, Q1, 2022

[7] Growing Rubidium Energy Metal Value Leads to Discovery Surge, The Assay, November 2022

[8] Mineral Commodity Summaries 2022, US Department of the Interior/US Geological Survey, 31 January 2022

[10] https://www.metal.com/Other-Minor-Metals/202012250004

---

[1] Cautionary Statement: The Exploration Target has been prepared and reported in accordance with the 2012 edition of the JORC Code. The potential quantity and grade of the Exploration Target is conceptual in nature. There has been insufficient exploration to estimate a Mineral Resource. It is uncertain if further exploration will result in the estimation of a Mineral Resource