Grange Resources : Update to Savage River Mineral Resources and Ore Reserves

31 March 2022 ASX: GRR.

GRANGE RESOURCES LIMITED

Australia's most experienced magnetite producer

Update to Savage River Mineral Resources and Ore Reserves

December 2021 Resource - Reserve Statement

Savage River Operations, Tasmania

HIGHLIGHTS

• • Mineral Resources & Ore Reserves have been estimated for Grange's Savage River magnetite deposits in Tasmania, as at 31 December 2021.

• • Mineral Resources have decreased to 485.8 million tonnes @ 45.4% DTR. This decrease of 11.6 million tonnes in Resource from the previous statement is driven by mining depletion and a revision to South Deposit Western Lens.

• • Ore Reserves at Savage River were reduced to 103.1 million tonnes @ 47.2% DTR, reflecting mine production during 2021 and are based on future open pit extraction. The 4.6 million tonne decrease in Ore Reserves from the previous statement is primarily attributed to mining depletion.

• • During 2021 a Pre-feasibility Study (PFS) was completed on underground mining of the North Pit Resources. The study concluded that underground mining was technically and economically viable.

• • A Definitive Feasibility Study (DFS) is planned to commence in 2022. A declaration of an underground Ore Reserve has not yet been made and is dependent on the outcomes of the DFS and integration with the open pit mining schedules.

• • 2,254m of diamond drilling was completed during 2021 to improve resource definition, orebody structural knowledge and collect additional geotechnical information. The preliminary results are consistent with existing estimation and as the campaign is continuing, results have not been included in this resource statement.

The resource consists of 485.8 million tonnes at 45.4% DTR (above a cut-off of 15% DTR) as detailed in table 1 and the reserve consists of 103.1 million tonnes at 47.2% DTR (above a cut-off of 15% DTR) as detailed in table 2.

Table 1 Savage River Mineral Resource Estimate

• • Elemental compositions were measured from Davis Tube Concentrate

• • Above a cut-off grade of 15% DTR

• • Stockpiles were included in this summary table and are itemised separately in tables of individual mining pits and aggregated stockpiles

Table 2 Savage River Ore Reserve Estimate

• • Elemental compositions were measured from Davis Tube Concentrate

• • Above a cut-off grade of 15% DTR

• • Stockpiles were included in this summary table and are itemised separately in tables of individual mining pits and aggregated stockpiles

The Mineral Resource and Ore Reserve have been estimated by the company's technical staff assisted by external consultants and are reported in accordance with the guidelines of the JORC Code (2012 edition).

Independent technical reviews were performed by AMC Consultants Pty Ltd (AMC) in 2019 & 2020 regarding the resource estimation process and the reserve estimation of Centre Pit. AMC considers, based on the available information, resource estimates have been completed using accepted practice.

INTRODUCTION

This document has been prepared to summarise the Mineral Resource and Ore Reserve of Grange

Resources' magnetite deposits, located at Savage River and Long Plains in Tasmania.

This statement covers the material remaining at the end of December 2021 and contains summary details on the history of Savage River, the geology of the deposit and information involved in producing Mineral Resource and Ore Reserve estimates.

LOCATION

The Savage River Mine and concentrator plant are located approximately 100 kilometres southwest by sealed road from Burnie. The pelletising plant and dedicated port facilities at Port Latta are located 70 kilometres northwest by sealed road from Burnie (Figure 1).

Local topography surrounding the mine is rugged, with incised valleys and steep hills. The west flowing Savage River dissects the deposit. Regional vegetation includes undisturbed rain forest with the mine area comprising wet eucalypt, acacia and open heath land. Climate is wet temperate with an average annual rainfall of 1,950 millimetres and mean monthly temperatures ranging from 3-19°C.

TENURE

Grange Resources operates under the conditions

of Mining Lease 2M/2001 which consolidates and

expands the previous lease 11M/97. This lease

stands for 30 years from 2001, encompassing a

total of 4,975 hectares.

The mining lease encompasses the Savage River

mine and concentrator, and the pelletising plant,

wharf and shipping facilities located on the

northwest coast at Port Latta. The operation and

facilities were previously held under Mining Lease

44M/66 when Pickands Mather & Co

International (PMI) were the managers of the

project until 1997.

Mining lease 14M/2007 was granted in May 2008 to extend the coverage of 2M/2001 for a total of 91 hectares. Another lease, 11M/2008 was granted in August 2009 to extend coverage by a further 108 hectares. This lease was renewed on the 18th of December 2017 and expires in 2031. 4M/2019 (235Ha) was granted on the 17th of August 2020 and expires in 2031.

Exploration licence EL30/2003 was granted in February 2010. The current 2-year tenure period expires on the 18th of June 2023 and is renewable

via a successful extension of term application. An application for a further extension will be made prior to the renewal date. This license covers the entire Long Plains deposit. The lease comprises 38 square kilometres and adjoins 2M/2001 to the north. EL30/2003 covers all potential mining infrastructure sites and haulage routes envisaged should the Long Plains magnetite deposits prove up to be economical and progress to mining.

Grange was granted an exploration licence application "Pipeline Road" shown as EL8/2014 for an 11 square kilometre lease north of 2M-2001 in 2014 which expires on the 29th of July 2023. An application for a further extension for EL30-2003 and EL8-2014 will be made prior to the renewal dates.

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