Havilah Resources : Mutooroo Copper-Cobalt Lode Extensions

onlyHIGHLIGHTS

• Confirmation of copper-cobalt sulphide lode at shallow depth in recent Mutooroo pre-feasibility study (PFS) open pit resource extension drilling.

• Relatively high grades of mineralisation, with: 5 metres of 1.7% copper, 0.18% cobalt and 0.13 g/t gold (including 2 metres of 2.13% copper, 0.22% cobalt and 0.19 g/t gold); and

5 metres of 1.01% copper, 0.12% cobalt and 0.09 g/t gold (including 3 metres of 1.67% copper, 0.19% usecobalt and 0.12 g/t gold).

Havilah's Technical Director, Dr Chris Giles, said:

"These drillholes specifically targeted the sulphide zone at depths accessible to a conceptual open pit, with the objective of boosting potential open pit copper-cobalt resources along strike from the established Mutooroo JORC Mineral Resource.

personal"A trend of increasing grade-thickness with depth in one drill section and discovery of a new hangingwall lode on another drill section are encouraging signs for material additional mineralisation.

"We plan to continue with the Mutooroo PFS open pit resource extension drilling program during February 2022, upon delivery and commissioning of a new more powerful compressor for the drilling rig operated by Havilah" he said.

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Figure 1 Location of the Mutooroo copper-cobalt deposit within the highly prospective Mutooroo Project Area.

Havilah Resources Limited (Havilah or the Company) (ASX: HAV) is pleased to report assay results for the first reverse circulation (RC) drillholes from the current PFS open pit resource extension drilling program at the Mutooroo copper-cobalt deposit (Mutooroo), 60 km from Broken Hill (Figure 1, Table A). Recent drilling confirmed the presence of 1-5 metre thicknesses of copper-cobalt massive sulphide lode, consistent with historical records of

onlythe sulphide lodes in cross-cuts in the mine workings in the vicinity (Figures 2 and 3) with significant results of: MTRC232 5 metres of 1.01% copper, 0.12% cobalt and 0.09 g/t gold from 66 metres downhole (Figure 4). MTRC233 5 metres of 1.7% copper, 0.18% cobalt and 0.13 g/t gold from 95 metres downhole (Figure 4).

usepersonalFigure 2 Long section of the Mutooroo copper-cobalt sulphide lode zone, showing the Mutooroo resource and conceptual open pit (brown colour) in the south. The area with open pit resource expansion potential, which is the subject of the current PFS open pit extension drilling, is shown in grey. Lode intersection positions for the recent drillholes are identified by yellow stars. Drilling sections A-A' and B-B' as shown in Figures 4 and 5, are marked.

A trend of increasing grade-thickness of the copper-cobalt sulphide lode with depth in drillholes MTRC232 and MTRC233 (see cross-sectionA-A', Figure 4) is encouraging because elsewhere at Mutooroo such trends have ointed to appreciable (>15 metre) thicknesses of sulphide mineralisation at depth. Further deeper drilling beneath

drillhole MTRC233 will be required to test this case.

Also of note is a second shallower (hangingwall) lode intersected in drillhole MTRC235 (see cross-sectionB-B',ForFigure 5). The hangingwall lode corresponds with a gossan outcrop mapped on the surface (Figure 3). The presence f discrete parallel hangingwall and footwall lodes is a feature of the Mutooroo deposit that was indicated by earlier drilling and has potential to boost resource tonnages and enhance the economic viability of open pit mining.

This drilling is part of the Mutooroo PFS with the primary objective to test for shallow, open pit copper-cobalt sulphide resources along strike from the existing Mutooroo resource and conceptual open pit design and below the shallow oxidised copper ore that was exploited via several historic mine shafts (Figures 2 and 3). Earlier Havilah drillholes discovered shallow oxidised copper mineralisation that is expected to add materially to the near surface open pit resources in this area. Significant earlier drilling results in the oxidised mineralisation in this area included:

MTRC180 16 metres of 1.54% copper from 11 metres downhole (Figure 3).

MTRC164 13 metres of 1.11% copper, 0.2% cobalt and 0.07 g/t gold from 1 metre downhole (Figure 5). MTRC173 7 metres of 0.72% copper, 0.035% cobalt and 0.44 g/t gold from 1 metre downhole (Figure 4). MTRC167 18 metres of 0.33% copper from 4 metres downhole (Figure 3).

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Figure 3 Surface geological plan of the area drilled showing two generations of Havilah drillholes in relation to the historical mine workings and locations of mapped copper-cobalt lodes, marked by outcropping gossans.

Havilah's exploration drilling team will resume drilling of the shallow resource extensions as part of the Mutooroo PFS during February 2022 upon delivery of a new more powerful compressor.

About Mutooroo and the Mutooroo Project Area (MPA)

onlyMutooroo is Havilah's second advanced stage copper-cobalt project that is located within commuting distance of Broken Hill. It contains 195,000 tonnes of copper, 20,200 tonnes of cobalt and 82,100 ounces of gold in a massive sulphide lode (see JORC table below). As such, Mutooroo is one of the largest and highest grade sulphide cobalt deposits associated with copper in Australia. Cobalt is deemed a critical mineral and is used in high performance lithium batteries to enhance charging characteristics. Demand has elevated the London Metal Exchange price of c balt to around US$70,000 per tonne currently and adds significantly to the potential value of the Mutooroo deposit. Much of the global cobalt production comes from the high sovereign risk Democratic Republic of the Congo, which does not have the same rigorous environmental, social and governance (ESG) regulations that are

usenforced in South Australia.

Havilah is undertaking a PFS on the Mutooroo project as a proposed 1 million tonne per annum throughput copper and cobalt producer, based on current JORC Measured Resources, initially from an open cut mine that transitions to a longer-term underground mining operation. The present drilling campaign is designed to boost open pit resources to sustain an initial 5 year open pit mining operation.

The surrounding MPA is highly prospective for the discovery of lode style copper-cobalt-gold mineralisation. Geologically, the MPA lies in the shadow of the giant Broken Hill lead-zinc-silver ore deposit in similar age rocks, and there is evidence to suggest that the mineralising processes that generated Broken Hill also operated in the

personalMPA. Many earlier economic grade copper and/or gold drilling intersections in the MPA have never been followed up, in some cases for more than 50 years (Figure 1). In addition, numerous copper, cobalt and gold surface geochemical anomalies identified by Havilah and earlier explorers present completely new targets to test. One of these, the Cockburn prospect, generated immediate drilling success in discovery of a hitherto unknown > 20 metre thick sulphide lode within sight of the Barrier Highway and Cockburn township (refer to ASX announcement of 17 August 2021and also 26 August 2021 page 7).

The MPA is particularly attractive for exploration owing to the generally thin cover and applicability of surface geochemical sampling methods and electrical geophysical methods, plus the excellent logistics in proximity to Broken Hill, the Barrier Highway and Transcontinental railway line. All known prospects are located within trucking distance of the Mutooroo copper-cobalt deposit and the terrain is generally flat.

Havilah's exploration strategy is to discover copper-cobalt-gold resources in the MPA that can support a central mining and processing operation centred on the Mutooroo deposit. Havilah aims to systematically explore the MPA with an experienced exploration geologist presently dedicated to this task. Drilling of the Cockburn and Mutooroo West prospects was the first step in the execution of this strategy and it is planned to drill several further promising

rospects during 2022, including Mingary Mine, Fallout and Green & Gold (Figure 1). For