Vimy Resources : Further drilling success at Angularli, Alligator River

For personal use only

ASX Announcement

28 July 2022

Further Drilling Success at Angularli

Alligator River Project - Northern Territory

• Third consecutive diamond drill hole (ARDD0005) intercepts uranium mineralisation up-dip of the Angularli deposit, with key intercepts:
• • 11.75m @ 1.13% eU3O8 from 201.0m, including o 5.20m @ 2.10% eU3O8 from 204.5m
  • 7.90m @ 0.31% eU3O8 from 218.1m
• First drill hole (ARDD0006) at Angularli North, located 500m along strike from the Angularli deposit, intersects 10 times radiometric background and strong alteration

Vimy Resources Limited (ASX: VMY, OTCQB: VMRSF) (Vimy or Company) is pleased to announce

the third and fourth diamond drill holes have intercepted new uranium mineralisation and anomalism at its 100% owned Angularli Deposit in the Northern Territory (see ASX announcements dated 9 May 2022, 12 July 2022, and 19 July 2022).

The first three diamond drill holes (ARDD0003, ARDD0004 and ARDD0005) have successfully extended the Angularli Deposit in an up-dip direction, above the unconformity between the basement and sandstone cover. The width and uranium grade intercepted in the two previous reported holes (ARDD0003 and ARDD0004, see ASX announcement dated 19 July 2022) warrant additional drilling further up-dip. ARDD0005 has shown mineralisation continues in a north-northwest direction up-dip and along strike with the best intercept of 11.75m at 1.13% eU3O8 from 201m.

A further three holes are being drilled at the up-dip extension, with drilling now at ARDD0007 now complete (see Figure 2). These holes will extend the known mineralisation within the Mamadawerre Sandstone Formation and allow a mineral resource update to be completed in late 2022.

Details of the diamond drill holes completed to date are provided in the following section, with a full suite of intercepts provided in Appendix 1. The JORC Table 1 is provided in Appendix 2.

Vimy's Managing Director and CEO, Steven Michael, said:

"The new up-dip drilling results at Angularli continue to highlight the high-grade nature of this deposit as we move further away from the unconformity. Drilling of an additional three further up-dip holes further west of those already completed will help characterise the extent of sandstone-hosted mineralisation at Angularli, followed by the commencement of drilling the down-plunge extension.

Drilling at Angularli will continue for the next three months, followed by a potential resource upgrade in late 2022. This should provide some exciting news to Vimy shareholders following completion of the merger with Deep Yellow, which is expected to be implemented on Thursday, 4 August 2022."

For personal use only

Overview

The Angularli Deposit is part of the Alligator River Project, which lies approximately 380km by road east- northeast of Darwin in the Northern Territory of Australia and is hosted in a high-angle shear fault system, with an Inferred Mineral Resource estimate of 0.91Mt at a uranium grade of 1.29% U3O8 containing 25.9Mlbs U3O8 (see ASX announcement of 20 March 2018and Table 1).

The Mineral Resource Estimate is supported by 30 diamond drill holes to date, with the best intercept at Angularli recorded in hole WRD0084, consisting of 41.5 metres at 2.93% U3O8, (inc. 22.9m at 4.63% U3O8).

Table 1: Angularli Mineral Resource Estimate, March 2018 1, 2

1. t = metric dry tonnes; appropriate rounding has been applied and rounding errors may occur.
2. Using chemical U3O8 composites from drill core.

Vimy holds the largest granted exploration tenure package, 1,701 km2, within the Alligator River Uranium Province, and is actively exploring for high-gradeunconformity-related uranium deposits. The Alligator River Project has multiple uranium targets with Angularli being the most advanced and the focus of the Company's exploration effort.

For personal use only

Figure 2 shows the location of drill collars ARDD0003 to ARDD0007, located in a north-northwest (NNW) trend along the Angularli fault. The initial three up-dip drill holes have now been completed, as well as a first drill hole (ARDD0006) at the Angularli North prospect.

The drill rig has since been shifted back to drill three additional holes west of ARDD0003, 0004 and 0005. Once completed, the drill rig will proceed with resource extension drilling down-dip of the Angularli resource, which remains open at depth. The first of these three additional holes, ARD0007 is in progress, and will be followed up by two additional holes to the west of ARDD0004 and ARDD0003.

Figure 2: Proposed drilling program at Angularli (2022 field season)

Figure 3 shows typical disseminated uranium mineralisation within the bleached Mamadawerre sandstone. Figure 4 shows a narrow high-grade section of uranium mineralisation in ARDD0005. Figure 5 shows the cross-sections for ARDD0005 and their position relative to the Mineral Resource.

For personal use only

Figure 3: Typical high-grade mineralised veins in ARDD0005 drill core (206m - 210.4m), showing a combination of disseminated and fracture-controlled uranium mineralisation in a bleached silica-pyrite sandstone

Visual observations of the uranium mineralisation intersected in ARDD0003, 0004 and 0005 suggest that the additional up-dip mineralisation identified to date is mineralogically similar to that tested in the 2018 leach testwork and 2019 ore sorting trial, which demonstrated exceptional uranium leach extraction rates and low reagents consumption, as well as high physical upgrading potential (see ASX announcements dated 3 Sep 2018and 16 Sep 2020).

Figure 4: Very high-grade uranium vein in ARDD0006 (219m)

For personal use only

Figure 5: Angularli Deposit - Cross Section 8,701,675N (Looking North)

Next Steps

A minimum of 19 diamond drill holes are planned to be drilled at Angularli over the next three and a half months. The first 8 holes will now be focused on up-dip and down-plunge extensions to the existing mineral resource and a further 11 diamond holes are planned to be drilled at the Angularli North, South and West prospects. Geological and structural logging of drill core, downhole wireline logging and a range of additional analyses (see table 1 in Appendix 2) will be completed on each hole prior to samples being sent for multi-element analysis.

The results of drilling up-dip and down-plunge of the Angularli Deposit will be used to update the mineral resource estimate expected in late 2022.

Scheme of Arrangement with Deep Yellow