Alvo Minerals Limited provided an update on its regional exploration program underway at the Palma Project ("Palma" or "the project") located in Central Brazil. Alvo has commenced its first extensive regional exploration program across Palma which covers over 780km2 of contiguous and highly prospective ground in a known Volcanogenic Massive Sulphides ("VMS") district. The district that is 80% controlled by Alvo has been largely idle for over 30 years since the first discovery in the 1970s and presents an extraordinary opportunity to make new discoveries by applying modern exploration techniques.

Exploration to date has been focused on successfully delivering exceptional results at the Company's existing deposits, being C1 and C3. These two existing deposits are only two of more than 20 late-time conductors identified through the VTEM survey flown in 2008 that covers over 60km of prospective strike. VMS deposits typically occur in clusters, where multiple deposits are located in similar geological districts.

These districts can host tens of VMS deposits that range in size from less than 1Mt to exceeding 100Mt. Since estimating the Maiden Resource Estimate at IPO in 2021 of 4.6Mt at 1.0% Cu, 3.9%, 0.4% Pb & 20g/t Ag based on historical drill results completed by the CPRM, Alvo has completed 17,356m of diamond drilling and 1,467m of Reverse Circulation ("RC") drilling. In addition, the Company has completed extensive geological logging, multiple geophysical surveys (IP, FLEM and DHEM) and studies of physical properties.

This information gathered has enhanced Alvo's technical team's knowledge and understanding of the Palma VMS district, enabling the team to effectively explore and assess regional target areas across the +780km2 of contiguous landholding and 60km of prospective strike for similar deposits. Exploration work is underway across multiple prospects with the aim of advancing prospects to drill-ready targets. Field activities including geological mapping, soil sampling, Auger drilling ("Auger"), Induced Polarisation Surveys ("IP") and Fixed Loop electromagnetic surveys ("FLEM") are being undertaken concurrently on various prospects within the district.

Importantly through the Company's key equipment purchases purchase it allows for flexible, fast and efficient exploration and is significantly less expensive than typical contracted exploration as the only material expense is labour. Exploration is focusing on the three main disciplines, being geology, geochemistry and geophysics. These disciplines generate data and information when combined and result in positive results will advance the prospects to being drill ready.

These disciplines are expanded below: Geology - Field Mapping at New Prospects: Mapping is completed as grid lines are opened with particular attention paid to gossanous outcrops (potential weathered VMS) and lateritic cover. All prospects discovered by the CPRM in the 1970s and 1980s were found as gossans. Geochemistry - Soil sampling and Auger drilling: Alvo's geologists have mapped extensive laterite caps across Palma, which may be obscuring the deposits beneath.

Auger drilling allows testing below this cap and will enhance the exploration efforts. Auger drilling will also be used on a regional basis to cover wide areas quickly. Soil sampling was used traditionally across the project and there are over 60km of co-incident Cu/Pb/Zn anomalies within the district being followed up.

Geophysics ­ IP and EM surveys: IP (Gradient Array) is a fast and efficient method for defining new target areas. Deeper seeing pole-dipole IP is a powerful method for detecting disseminated sulphides. FLEM surveys are the jewel in the crown for targeting VMS prospects.

This powerful tool can define conductive zones at depth and given the VMS prospects the company has at Palma are conductive, most prospective orebodies will have an electromagnetic conductor associated with mineralisation.