Australian Vanadium : Drill Completion at Coates Nickel-Copper-PGE Project

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DRILL COMPLETION AT COATES NICKEL- COPPER-PGE PROJECT

First stage drilling completed to provide a stratigraphic section as part of EIS and CSIRO programs

KEY POINTS

• Initial stratigraphic drilling of Reverse Circulation (RC) and diamond drilling at Coates Mafic Intrusive Complex completed.
• The project covers similar geology to the sequence that is host to the Chalice Gold Mines' nickel-copper-PGE Julimar Project (ASX: CHN) 29 km NNW of Coates.
• Drilling was co-funded through the Western Australia Government Exploration Incentive Scheme (EIS), to identify new nickel-copper-PGE discoveries in the prospective wheatbelt region NE of Perth.
• New core is now available for Commonwealth Scientific and Industrial Research Organisation (CSIRO) Nickel Indicator Study.
• 840.6 metres of reverse circulation drilling over 11 holes and 169.6 metres of NQ diamond core drilling over three holes achieved for total 1,010.2 drilled metres.
• Diamond Core and RC samples to be logged and processed during coming quarter.
• Option agreement signed with Mining Green Metals Limited to acquire the project, subject to its listing on the ASX1.

Australian Vanadium Limited (ASX: AVL, "the Company" or "AVL") is pleased to announce partial completion of a drill program at its AVL tenure in the Coates Mafic Intrusive Complex near Wundowie, 80km NE of Perth in Western Australia. Drilling followed a successful SkyTEM Airborne Electromagnetic (AEM) survey which identified three conductors, with the largest having a strike length of 1,900 metres2. Figure 1 shows the location of the AEM target plates and the stratigraphic drilling completed at Coates Mafic Intrusive Complex.

An 11 hole program of Reverse Circulation (RC) pre-collar and diamond tail drilling was undertaken, with all pre-collars completed for 840.6 metres of RC. Partial completion of the diamond drilling

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portion of the project was achieved, with 169.6 metres of diamond coring over three holes and cessation of the program early due to budget limitations. Two diamond tails were finished and one abandoned before the full planned depth, due to bogged rods. An additional nine diamond tails are required to complete the stratigraphic fence, including re-drilling of the hole that was abandoned. The drill line remains open and the Programme of Work (PoW) approval remains active. Drilling of the diamond tail portion of the program will be completed pending sale of the project to Mining Green Metals (MGM), subject to its successful listing on the Australian Securities Exchange (ASX)3.

Managing Director, Vincent Algar comments, "With AVL's focus firmly on the development of the Australian Vanadium Project at Gabanintha, we are pleased to have completed this first important phase of work at Coates. The AVL team will process the core with the support of the CSIRO Nickel Indicator team and we look forward to seeing what the drilling at Coates uncovers. On MGM's successful listing, AVL shareholders will continue to hold a significant stake in future discovery in this very exciting region heralded by the discovery of Julimar. The incoming MGM team will be able to dedicate significant focus and resources to the project. The suite of potential minerals at Coates are currently in high and growing demand."

The drilling at Coates Project was co-funded through the WA Government's Exploration Incentive Scheme (EIS)4. The grant was for up to $112,500, representing half of the cost of the program. The drill program is designed to provide a stratigraphic section through the Coates Mafic Intrusion within AVL's tenure, allowing for lithological and geochemical studies and focussing on nickel-copper-PGE prospectivity. The results from the SkyTEM survey strongly supported the validity of the drill program design to test mafic - ultramafic stratigraphy.

Despite being stopped early due to budget limitations, the program as completed to date provides a significant section of geochemical samples in the percussion components of the drill holes. Importantly, the diamond core now available for the Australian Government's Commonwealth Scientific and Industrial Research Organisation (CSIRO) Nickel Indicator Study of the Coates Mafic Complex extends 350 to 500 metres further northeast into the intrusion and approaching the zone of the SkyTEM and surface Ni, Pt and Cr anomalism previously identified5. Other historical diamond core from the 1970s being utilised for the CSIRO study is restricted to the magnetite gabbro portion of the deposit which was drilled extensively for vanadium mineralisation by Garrick Agnew Pty Ltd and Mt Dempster Mining.

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RC samples are being dispatched to a commercial laboratory this week and processing of the core, including logging, cutting and sampling, with submission of samples to the laboratory, is planned during June.

Figure 1: Plan view of EIS Drill Line with AEM imagery background and Plate Models

AVL signed an option agreement6 with MGM in May for MGM to acquire a 100% interest in the Coates Project. MGM is aiming to list on the ASX in 2022. The option agreement includes the Company's Nowthanna Hill uranium project and provides AVL with 6,500,000 fully paid ordinary shares in MGM, a 0.75% net smelter return royalty from the value of the minerals mined and a cash payment of $190,000. The option is conditional on MGM completing due diligence on the tenements and listing on the ASX.

For further information, please contact:

Vincent Algar, Managing Director +61 8 9321 5594

This announcement has been approved in accordance with the Company's published continuous disclosure policy and has been approved by the Board.

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ABOUT AUSTRALIAN VANADIUM LTD

AVL is a resource company focused on vanadium, seeking to offer investors a unique exposure to all aspects of the vanadium value chain - from resource through to steel and energy storage opportunities. AVL is advancing the development of its world-class Australian Vanadium Project at Gabanintha. The Australian Vanadium Project is one of the most advanced vanadium projects being developed globally, with 239Mt at 0.73% vanadium pentoxide (V₂O₅), containing a high-grade zone of 95.6Mt at 1.07% V2O5 and an Ore Reserve of 30.9Mt at 1.09% V2O5 comprised of a Proved Reserve of 5Mt at 1.11% V2O5 and a Probable Reserve of 20.4Mt at 1.07% V2O5, reported in compliance with the JORC Code 2012 (see ASX announcement dated 1st November 2021 'Mineral Resource Update at the Australian Vanadium Project' and ASX announcement dated 6th April 2022 'Bankable Feasibility Study for the Australian Vanadium Project').

VSUN Energy is AVL's 100% owned subsidiary which is focused on developing the market for vanadium redox flow batteries for energy storage. The companies are also working together to produce and supply vanadium electrolyte for the batteries.

The Coates Project is a secondary project for AVL, initially demonstrating interest for its vanadium potential, but now being examined for nickel, base metals, gold and platinum group elements.

The company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and, in the case of estimates of Mineral Resources or Ore Reserves, that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The company confirms that the form and context in which the Competent Person's findings are presented have not been materially modified from the original market announcement.

COMPETENT PERSON STATEMENT - EXPLORATION RESULTS

The information in this statement that relates to Exploration Results is based on information compiled by independent consulting geologist Brian Davis BSc DipEd who is a Member of The Australian Institute of Mining and Metallurgy and the Australian Institute of Geoscientists and is employed by Geologica Pty Ltd. Brian Davis has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which is undertaken to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Davis consents to the inclusion in the report of the matters based on the information made available to him, in the form and context in which it appears.