Quarterly Activities/Appendix 5B Cash Flow Report

QX Resources Limited (ASX:QXR) is pleased to present its Quarterly Report and Cash Flow Report.

HIGHLIGHTS

Operations

• Drill results confirm a lithium mineralisation halo with elevated rare earth results at QXR’s 84km2 Turner River hard rock lithium project.
• The initial drilling program of 12 holes (1,166m) was followed by a 10 hole (1,130m) RC drilling program based on high surface lithium grades recovered from 5-15 kg sample blocks of lithium rich micas together with pegmatites at surface and in drillholes.
• Exploration at Turner River and QXR’s other projects is being re-launched targeting hard rock lithium mineralisation in the prolific Pilbara region of Western Australia.
• A month-long program of surface rockchip sampling and detailed mapping will commence across all four project areas – Split Rock, Western Shaw, Yule River and additional areas at Turner River. This includes interpreted outcropping pegmatites at Western Shaw and Split Rock.
• Detailed airborne geophysics is scheduled over the Turner River Project initially and later over other areas, including detailed spectral image analysis.
• High grade nickel-copper-cobalt diamond drill results were returned from Bayrock Resources Limited Lainejaur project in Sweden in which QXR has a significant holding. Assays included 4.7m at 2.0% Ni, 1.6% Cu and 0.1% Co from 283m downhole, within a mineralised section of 22m downhole.
• A 450-metre diamond drilling program (16 hole) is underway at a second Bayrock asset in Sweden, the Vuostok project, a near surface nickel-copper project within trucking distance of Lainejaur.
• QXR intends to commence a Mining Lease application over the advanced-stage ‘Anthony’ Molybdenum deposit in central Queensland which has been previously upgraded to a JORC-2012 compliant Indicated and Inferred Mineral Resource estimate of 24,700 tonnes (53.7 million pounds) of contained molybdenum in sulphide, transition (partial oxide) and oxide zones from surface.

Corporate

• Bayrock, a private company, successfully completed its A$1.8 million rights issue, with ~$600,000 raised from existing Bayrock shareholders.
• QX Resources acted as underwriter and following the conversion of QXR-provided secured loans and fees, QXR now holds a significant ~39% of Bayrock’s issued capital
• Cash balance of $1.8 million plus investments of ~$145,000 at 30 June 2023

OPERATIONS

Pilbara hard rock lithium projects - Western Australia

QXR holds four 100% owned hard-rock lithium projects, covering 355km2, strategically centred around Western Australia’s prolific Pilbara province, hosting some of Australia’s largest lithium deposits (Figure 1). QXR projects are Turner River (E45/6042 & E45/6065), Western Shaw (E45/4960 & E45/6107), Split Rock (E46/1367) and Yule River (E45/6159).

At the Turner River hard rock lithium project (E45/6065, E45/6042), located 15km to south-east of Mineral Resources’ Wodgina lithium mine, prior to the quarter, an initial drilling program of 12 holes (1,166m) was followed by a 10 hole (1,130m) RC drilling program. This was based on high surface lithium grades recovered from 5-15 kg sample blocks of lithium rich micas together with pegmatites at surface and in drillholes.

A lithium mineralisation halo was confirmed in drill results reported during the quarter from the Turner River hard rock lithium project. However, the best lithium drill results were:

• 1m @ 0.38 % Li2O (from 4m depth in hole 22QXRC007) within 3m @ 0.26% Li2O; and
• 4m @ 1,693 ppm Total Rare Earth Oxide (TREO) (from 18m in hole 22QXRC007) including 1m @ 369ppm Nd203.

This was within an elevated zone of lithium results intersected from surface to 22m depth from lithium micas. The lithium mineralisation intersected was composed of a mix of spodumene and lepidolite (lithium mica). Further exploration work is required to locate better lithium grades in the drilling which mirror the surface rock chip results. This is still a high priority location for the Company. Other companies have experienced similar issues with hard rock lithium projects in WA.

Following quarter end, the Company announced that it would shortly commence a month-long program of surface rockchip sampling and further geological mapping across all four project areas. This includes interpreted outcropping pegmatites at Western Shaw and Split Rock, which include the key target of the contact zone between greenstones and granitoids known to be permissive for lithium mineralisation of the Split Rock Supersuite with which the Wodgina, Pilgangoora and Global Lithium deposits are associated.

Detailed high-resolution airborne geophysics is scheduled – initially over the Turner River Project - and later over other areas, including detailed spectral image analysis around areas of pegmatites.

The Company plans to follow up the sampling program with extensive trenching and sampling across new areas of interest, as well as at Turner River, to extend the sampled mineralised envelope prior to follow-up drilling. Sampling will be extended in the Turner River area as large high-grade lithium micas outcrop near the recently drilled area.

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