Quarterly Activities Report and Appendix 5B

Cyclone Metals Limited (ASX: CLE) (Cyclone or the Company) is focused on developing its flagship Block 103 Magnetite Iron Ore Project. The Company also has investments in several exploration and mining projects, providing exposure to lithium, iron ore, copper and gold, assets globally (refer to Annexure 2) which include shares in listed ASX entities valued at $6.4m as of 30 October 2023.

PROJECTS

Block 103 Iron Ore Project

Block 103 Summary

Block 103 magnetite iron ore project (Block 103) is located in the Labrador Trough in Canada next to the town of Schefferville and is within 20km of an open access heavy haul railway directly connected to the Port Sept Isles iron ore export facility (refer Figure 1).

As announced on the 20th of June 2023, Block 103 is a well-advanced project supported by an Inferred Mineral Resource of 7,200 Mt @ 32% Fe which has been reported in accordance with the provisions of both with the JORC 2012 code and the NI 43-101 standards.

Figure 1 - Location of Block 103

A Preliminary Economic Assessment (PEA) study was completed by BBA Inc, of Toronto, in June 2013. This report is publicly available in the SEDAR** database and concludes that a high-quality magnetite concentrate grading 69.5% Fe can be produced through mechanical beneficiation and that blast furnace quality pellets can be produced and shipped to the Sept Isles port for a cash cost of USD 47 /t FOB. For reference, as of 25 October 2023 blast furnace pellets traded at USD 143/t CIF China with shipping costs ~ USD 26 /t which theoretically would deliver a net cash profit of ~USD 70/t. The PEA report envisages a yearly production of 16.6 Mta of blast furnace pellets.

Block 103 benefits from a low stripping ratio of 0.4, is a relatively soft magnetite ore and has access to cheap hydropower – all of which contribute to a low cash cost described above, but more importantly drives an extremely low carbon footprint.

For more detailed information, please refer to the CLE announcement dated 17 April 2023.

** www.sedar.com .Filter by search company database, then Document type: Technical report NI 43-101 and Company name: M3 Metals. Date of filling: 2013

Block 103 Quarterly Activities to end of September 2023

Cyclone is pleased to report that its operational activities are on track, and fully aligned with the operational plan disclosed in June 2023. The leadership team is hopeful that all operational milestones planned by end of Q4 2023 will be achieved – which would substantially de-risk the project.

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