Quarterly Activities/Appendix 5B Cash Flow Report

Pivotal Metals Limited (ASX:PVT) (‘Pivotal’ or the ‘Company’) is pleased to provide its Appendix 5B cash flow statement for the quarter ended 30 September 2023, along with the following operational summary.

Quarter Highlights

• Progressed preparation for its extensive exploration and development work program across its 100% Quebec Battery Metals projects, announced post quarter end, and commencing in the coming months.
  • Up to 8,000 metre diamond drill program at Horden Lake, targeting grade and tonnage improvements on the 27.8mt at 1.49% CuEq¹ indicated and inferred resource.
  • Downhole EM geophysics at Horden Lake to show expansion potential in open areas of mineralisation across the deposit.
  • MT geophysics at BAGB to target mineralised magmatic feeder zones below where previous operators have drilled very high-grade mineralisation.
  • Metallurgical testwork program for Horden Lake to optimise flowsheet at recovery and payabilities assumptions for future studies.
  • Engineering and environmental studies for Horden Lake to develop a robust and optimised long term execution plan for the project.
• Recent board and senior management changes complete, to reflect the full and complete focus on the Company’s Canadian exploration and development Cu-Ni- PGM portfolio:
  • Appointment of Mr Ivan Fairhall as Managing Director and CEO.
  • Appointment of Mr Eddy Canova as Executive Operations Officer.
  • Appointment of Mr Simon Gray as Chairman.
• Closed the sale the San Finx mine (Tungsten San Finx S.L) to Metáis Estratéxicos, S.L.
• $5m cash balance and consistent news-flow is expected as the Company executes its work programs across its properties.

Managing Director Ivan Fairhall said: “I am excited to have joined Pivotal this quarter, alongside the other important Board and management changes, to ensure undivided focus and attention on our 100% owned Quebec battery metals projects. We stand poised to commence a fully funded work program which has been carefully targeted to build on the significant value already in the projects, and emphasise their qualities amongst their peer group. Shareholders can look forward to consistent news flow over the next 12 months as we deliver across the portfolio.

OPERATIONAL UPDATE

Horden Lake

Horden Lake is an advanced exploration project containing a JORC compliant, pit-constrained resource of 27.8Mt at a 1.49% CuEq (54% in the indicated category). The work program that was announced post quarter-end is designed to target the multiple opportunities for resource enhancement and advance the development of the asset. Significant progress in preparation for this program has been completed.

Geophysics

The current mineral resource extent remains open at depth at many points across the main strike extent, with drilling demonstrating zones of semi-massive and massive sulphides that may continue at depth.

The Company will undertake an initial approximate 12-hole downhole EM survey utilising existing holes to test for off-hole conductors which may indicate the presence of additional mineralisation outside of the resource envelope. Despite the well understood applicability of this method to the target mineralisation, surveys of this kind have not been conducted in the past on the deposit.

During the quarter the company has engaged with its preferred contractor, who has visited site and ‘dummy probed’ a sample of drill holes, 9 out of 11 of which were open, which provides strong confidence the survey can be completed successfully.

Drilling

The winter drill program will consist of a up to 8,000m of drilling, commencing in January 2023. At the time of writing major contracts relating to the program are either signed or well advanced with preferred bidders.

The program has three principal aims:

Target increase in grade by collecting Au, Ag, Pt and Co by-product assay data for parts of the deposit that were not assayed for these metals in the past. Only the central part of the deposit has full multi-element assay. The resource estimate currently constrains the gold wireframe to this area (consequently diluting grade across the entire resource). Ag, Pt and Co were assayed in the central part, but have not been domained in the model. Further assay for these metals will be collected and modelled in a future resource update.

Target increase in tonnage by drilling open areas of mineralisation that fall outside the 27.8 mt resource envelope. As referenced above, geophysics will be used to refine targets, as well as potentially identify new priority target areas for drilling.

Collect sample for metallurgical testwork.

Metallurgical testwork

The Company has progressed its upcoming testwork program through engaging with consultants and metallurgical laboratories in advance of its upcoming testwork program. The aim of the program is to optimise the current flowsheet targeting a highest net smelter return approach from contained metals. This will include investigating a sequential Cu-Ni flowsheet, with the aim of producing a high-grade copper and high-grade nickel concentrate. Reviews by the Company have shown mineralogy has not been a focus in previous programs, and it considers that this represents a significant opportunity to improve the optimisation potential of the program. The Company intends to use historical core for initial mineralogical assessment, prior to the flotation testwork on fresh samples acquired from the 2024 drill program.

BAGB

The BAGB projects present as highly prospective exploration opportunities. Work by previous owners have focused on the top 300m, and successfully defined relatively small but extremely high-grade Ni-Cu-PGM gabbroic magmatic intrusions. Highlight drilling from previous programs included 9.4m at 3.52% Ni, 4.25% Cu and 4.59 g/t PGM².

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