McDermitt Progress Update

Jindalee Resources Limited (ASX:JRL) (Jindalee, the Company) provides the following update in relation to its 100% owned McDermitt Lithium Project1 in Oregon, USA (McDermitt, Project).

• BLM determines McDermitt Exploration Plan of Operations complete
• BLM and DOGAMI accept sureties in place of cash bonds
• POSCO metallurgical testwork underway, Jindalee testwork about to commence

Permitting

Jindalee is pleased to advise that it has been notified by the US Bureau of Land Management (BLM) that the Exploration Plan of Operations (EPO) for McDermitt, originally submitted August 2022 (with additional information provided early 2023), has been deemed complete.

The BLM will now seek public comment on the EPO, either separate from or as a part of the environmental review process required by the National Environmental Policy Act (NEPA), with the final decision of the NEPA assessment to be incorporated into the EPO. This process is expected to take up to 12 months.

Jindalee is also pleased to advise that both the BLM and the Oregon Department of Geology and Mineral Industries (DOGAMI) have agreed to accept surety bonds to replace cash reclamation bonds currently lodged against the McDermitt Project, returning up to US$120,000 (approximately A$180,000) in cash to the Company. Importantly, the use of surety bonds is expected to reduce the cash outlay for additional bonding which will be required once the EPO receives final approval.

Metallurgical Testwork – POSCO

In February 2023 Jindalee signed a Non-Binding Memorandum of Understanding (MOU) with major Korean conglomerate POSCO Holdings Inc. (NYSE: PKX) (POSCO)³. POSCO is a leading global lithium producer and supplier of cathode active materials to major US auto maker General Motors.

Under the terms of the MOU POSCO and Jindalee agreed to undertake joint research designed to optimise the flowsheet for processing ore from McDermitt. The testwork is expected to cost approximately A$2M, which will be funded entirely by POSCO. POSCO and Jindalee will jointly evaluate the commercialisation of the Project following completion of the testwork.

A large composite sample from the Project was shipped to POSCO’s research facility in Korea late March 2023, with testwork now underway. POSCO has advised that results from the first phase of testwork should be available in July 2023.

Metallurgical Testwork – Jindalee

Late March 2023 Jindalee announced that Fluor had completed a review of all metallurgical testwork undertaken at McDermitt⁴. The review determined that acid leaching with beneficiation (to upgrade the leach head grade) delivered the lowest operating costs and best financial outcome and noted that the very large Mineral Resource at McDermitt (21.5 Mt LCE, Table 1)¹ allows flexibility in development, providing the opportunity to optimise mining and feed high grade ore early in the mine life.

Fluor recommended that further testwork to refine the preferred flowsheet and support a pre-feasibility level study (PFS) commence immediately. Jindalee is please to advise that selection of samples for this study (which is independent of the testwork currently being undertaken by POSCO) is well advanced, with the testwork expected to commence prior to quarter end.

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