Quarterly Activities Report For The Period Ending 31 December 2022

• Phase 2 extensional drill program commenced at the Palma Project, with step-outs at depth and along strike ongoing, aiming to significantly expand the existing JORC 2012 Mineral Resource Estimate (MRE) of 4.6Mt @ 1.0% Cu, 3.9% Zn, 0.4% Pb & 20g/t Ag.
• Significant intercepts reported from diamond drilling during the quarter include:
  • PD3-056: 14.9m @ 5.6% CuEq or 13.6% ZnEq (2.2% Cu, 10.8% Zn, 0.5% Pb, 34g/t Ag & 0.11g/t Au) from 74m
    • Inc. 5.0m @ 8.3% CuEq or 20.2% ZnEq (2.7% Cu, 17.5% Zn, 0.9% Pb, 53g/t Ag & 0.16g/t Au) from 75m
  • PD3-053: 17.1m @ 1.7% CuEq or 4.2% ZnEq (1.2% Cu, 2.1% Zn, 0.2% Pb, 12g/t Ag & 0.03g/t Au) from 294m
  • PD3-059: 14.2m @ 3.0% CuEq or 7.3% ZnEq (1.1% Cu, 6.1% Zn, 0.2% Pb, 12g/t Ag & 0.04g/t Au) from 228m
    • Inc. 4.8m @ 7.3% CuEq or 17.8% ZnEq (1.8% Cu, 16.8% Zn, 0.4% Pb, 24g/t Ag & 0.1g/t Au) from 237m
• Diamond drill results continue to confirm, enhance and potentially extend the MRE defined by historic drill results.
• Downhole Electromagnetic (DHEM) surveys at C3 have highlighted conductive plates coincident with mineralisation that demonstrate the potential to significantly expand C3 mineralisation at depth and along strike.
• Reverse Circulation (RC) drilling intercepted significant broad zones of supergene mineralisation at the C3 prospect, including zones of exceptionally high-grade copper. Significant RC drill intercepts include:
  • 29m @ 2.0% Cu, 0.3% Zn, 0.1% Pb, 7.6g/t Ag & 0.03g/t Au from 28m in hole PRC3-013
    • Inc. 6m @ 7.1% Cu, 0.4% Zn, 0.3% Pb, 68.0g/t Ag & 0.04g/t Au from 32m
  • 32m @ 1.0% Cu & 0.6% Zn from 17m in hole PRC3-008
    • Inc. 6m @ 2.3% Cu & 0.4% Zn from 41m
• Preliminary metallurgical testwork indicated excellent recoveries and concentrate grades from the C3 prospect results, with locked-cycle testwork underway.
• Secured enhanced in-house exploration capabilities to accelerate regional exploration, through the purchase of Induced Polarisation (IP) equipment and a truck mounted Auger drill rig.
• Cash balance of $2.06M at 31 December 2022 with $275,000 cash expected to be received during the March 2023 quarter from the return of a government bond associated with the Palma acquisition.
• Drilling remains ongoing testing resource expansion targets at C3 and multiple high priority regional VMS prospects including Mafico, Ema and Pelicano.

Diamond Drilling at the Palma VMS Project

During and subsequent to the reporting period, Alvo announced first assay results from its extensional diamond drill program at the C3 prospect, within the Palma Project in central Brazil.

Phase 2 drilling at the C3 prospect is aiming to significantly expand the existing Palma Project JORC 2012 MRE of 4.6Mt @ 1.0% Cu, 3.9% Zn, 0.4% Pb & 20g/t Ag (Figure 1). Phase 2 drilling follows an exceptional Phase 1 drill program that delivered drill results that exceeded expectations on grade and thickness when compared to the existing MRE that used historical drilling only.

Diamond drilling is ongoing at C3, testing extensions to the high-grade VMS mineralisation. Post 31 December 2022, the Company released large extensions high-grade mineralisation, including an intercept approximately 50m down-dip of the existing MRE (See ASX Announcement 19 January 2023).

The Company is also testing new regional targets within the C3 cluster including the Mafico, Ema, Pelicano and Pombo Prospects. Electromagnetic surveys (both surface – FLEM and downhole DHEM) and Induced Polarisation (“IP”) surveys are ongoing to assist in targeting new VMS mineralised prospects.

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