Quarterly Report For The Period Ended 30 September 2022

Corporate

• Cash at bank of $25.3 million at the end of the quarter

Hualilan Gold Project - San Juan, Argentina

• Drilling post CEL's Maiden Mineral Resource Estimate (MRE) of 2.1 million ounces (AuEq)¹ continues to significantly expand the mineralisation in multiple directions with results Including;
  
  • 18.8m at 6.3 g/t AuEq¹ - 4.5 g/t Au, 22.3 g/t Ag, 3.3% Zn from 344.4m including
    3.4m at 11.5 g/t AuEq¹ - 8.9 g/t Au, 42.5 g/t Ag, 4.5% Zn from 344.4m and
    7.4m at 10.8 g/t AuEq¹ - 7.4 g/t Au, 36.8 g/t Ag, 6.3% Zn from 355.8m (GNDD-642);
  • 11.0m at 9.1 g/t AuEq¹ - 9.0 g/t Au, 5.7 g/t Ag from 356.0m including
    7.8m at 12.6 g/t AuEq¹ - 12.5 g/t Au, 7.9 g/t Ag from 356.0m (GNDD-571);
    
  • 46.0m at 1.7 g/t AuEq¹ - 1.2 g/t Au, 4.4 g/t Ag, 0.9% Zn from 367.0 including.
    3.9m at 7.9 g/t AuEq¹ - 7.3 g/t Au, 18.7 g/t Ag, 0.7% Zn from 380.3m and
    5.1m at 6.6 g/t AuEq¹ - 3.7 g/t Au, 19.7 g/t Ag, 5.9% Zn from 400.8m(GNDD-633)
• Current 204,000 metre drill program at Hualilan Completed with assays pending for xx metres of this program
• Intention to upgrade the MRE once all assays from this 204,000 metre program are completed with this MRE to be used as the basis for a Scoping Study to be completed in H1 2023.
• The recent $25 million capital raising has allowed CEL to commit to an additional 50,000 drill metres at Hualilan which will take total CEL drill metres at Hualilan to 254,000 metres.

El Guayabo/Colorado V Gold/Copper Projects - El Oro, Ecuador

• Drilling at Colorado V continues to expand both the CV-A and CV-B Au-Cu-Ag-Mo discoveries with results including (refer Table 4):
  
• 773.9m at 0.4 g/t AuEq² - 0.3 g/t Au, 1.3 g/t Ag, 0.1 % Cu, 11.8 ppm Mo from 114.5m including;
  402.8m at 0.6 g/t AuEq² - 0.4 g/t Au, 1.7 g/t Ag, 0.1 % Cu, 10.9 ppm Mo from 182.3m including;
  299.8m at 0.7 g/t AuEq² - 0.5 g/t Au, 1.8 g/t Ag, 0.1% Cu, 11.7 ppm Mo from 182.3m including;
  180.9 m at 1.0 g/t AuEq²- 0.7 g/t Au, 2.4 g/t Ag, 0.1% Cu, 9.5 ppm Mo from 182.3m including;
  62.4 m at 1.8 g/t AuEq² - 1.5 g/t Au, 2.7 g/t Ag, 0.1% Cu, 7.0 ppm Mo (CVDD-22-010)
• 732.3 m at 0.3 g/t AuEq²- 0.2 g/t Au, 1.2 g/t Ag, 0.04% Cu, 8.0 ppm Mo from 73.9m including;
  247.2m at 0.5 g/t AuEq² - 0.4 g/t Au, 1.7 g/t Ag, 0.1% Cu, 5.8 ppm Mo from 251.0m including
  50.7 m at 0.9 g/t AuEq² - 0.8 g/t Au, 1.8 g/t Ag, 0.1% Cu,5.1 ppm Mo (CVDD-22-007)
  
• 504.3 m at 0.3 g/t AuEq²- 0.3 g/t Au, 1.4 g/t Ag, 0.1% Cu, 1.8 ppm Mo from 96.4m including;
  276.1m at 0.4 g/t AuEq² - 0.25 g/t Au, 1.5 g/t Ag, 0.1% Cu, 1.9 ppm Mo from 97.9m Including
  116.1m at 0.5 g/t AuEq² - 0.4 g/t Au, 2.6 g/t Ag, 0.1% Cu, 2.0 ppm Mo (CVDD-22-006)
  (all three drill holes ending in mineralisation)

CORPORATE

The Company entered into binding agreements for a US$15m (A$22.1m, as at 9 September 2022) private placement of unsecured convertible debentures (the "Debentures") with Queen's Road Capital Investment Ltd ("QRC"). The Debentures are convertible into fully paid ordinary shares in CEL ("Shares") at a price of $0.25, a 30% premium to the 5-day volume weighted average price (“VWAP”) prior to 2 September 2022.

Additionally, the Company's largest institutional shareholder to invested pro-rata to its 12% shareholding via a $2.6m placement at 5-day VWAP (19.0 cents), increasing combined funds raise to $24.7m (as at 9 September 2022 exchange rates) from two parties. The US$15 million investment from QRC is retained in US dollars.

QRC is a leading resource-focused investment company based in Hong Kong and listed on the main board of the Toronto Stock Exchange ("TSX"). QRC acquires and hold securities for long-term capital appreciation, with a focus on convertible debt securities and resource projects in advanced development or production located in safe jurisdictions.

Net spend during the quarter was $9.3 million which included net exploration expenditure of $7.7 million, including approximately $0.9m Argentinian VAT which will be recouped, and administration and corporate costs of approximately $1.5 million.

The exploration expenditure was primarily drilling and assay expenditure which accounted for 80% of the total exploration spend. Given the 60 day payment cycle for drilling and assaying a significant proportion of the current quarter exploration spend was related to the period prior to the reduction in the Hualilan rig count from 9-rigs to 3-rigs. Assaying and drilling expenses related to approximately 35,000 metres of drilling compared to 20,000-22,000 metres of drilling budgeted for the next two quarters.

The $1.5M administration and corporate costs included significant one off component for legal fees, corporate advice, and fees associated with the Convertible Debenture with QRC. The balance was related to administration and other corporate costs. Amounts payable for staff costs of ($151k) and exploration staff costs ($118K) were to related parties and their associates.

Cash at bank at the end of the quarter was $25.3 million.

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