QXR Quarterly Activities Report for Period Ended 30 September 2024

HIGHLIGHTS

Lithium Brine Projects, USA

• QXR and IG Lithium have agreed to restructure the Option Agreement in respect of the Liberty Lithium Brine Project to reduce option payments and also to include an option over two additional prospective lithium brine projects in the USA.
• QXR now has the option to acquire a 25% interest in IGL, the holder of the Liberty Lithium Brine Project, which reduces QXR’s cash option payments from US$1.7 million to US$500,000.
• QXR has also entered into an option agreement with IGX Minerals LLC (a related company of IGL), granting QXR an option to acquire a 15% stake in IGX and which holds two prospective lithium brine projects in Nevada and Utah, USA.
• IGX and IGL continue discussions with US based producers of battery-grade lithium products in relation to the future supply of lithium brine products.

Gold Projects – Central Queensland

• High grade gold trenching programme planned at Big Red in central Queensland. Previous trenching returned high grade gold results including 9m @ 5.9g/t Au. Gold mineralisation remains open along strike under cover.
• Reassessment of two shuttered gold mines within QXRs ground has commenced as these mines were last operated when the gold price was less than A$500/oz.
• Gold projects are in the Drummond Basin in Queensland – a region with a long history of ongoing gold mining region with an endowment of over 8.5 million ounces.

Pilbara Iron Ore Project

• Discussions are underway after planning a detailed rockchip sampling programme over Iron Ore Samples with up to 58.5% Fe in rockchip samples over 4km of enriched iron ore over a Banded Iron Formation (BIF) at Western Shaw in the Pilbara.

Corporate

• Post quarter-end, the Company announced that it had received firm commitments for a placement to raise $1 million (before costs), through the issue of 200 million shares at $0.005 each. The Placement includes $150,000 participation by directors, subject to Shareholder approval

OPERATIONS

Lithium Brine Projects, USA

During the September quarter, the Company announced that it had renegotiated the option agreement over the Liberty Lithium Brine Project in California, USA, to reduce option payments and also to include an option to acquire an interest in two additional prospective lithium brine projects in the USA.

QXR had previously entered into an option agreement with IG Lithium LLC (IGL) to acquire up to a 75% interest in IGL, the owner of the Liberty Lithium Brine Project, as announced 5 October 2023 (Option Agreement). The parties have negotiated a variation to the Option Agreement, whereby QXR now has an option to acquire a 25% interest in IGL on or before 30 June 2025 (Variation Agreement). The restructuring reduces QXR’s cash option payments from US$1.7 million to US$500,000.

QXR has entered into a further option agreement with IGX Minerals LLC (IGX) (an unlisted Delaware company established in 2022, and a related company of IGL) granting QXR an option to acquire a 15% interest in IGX on or before 30 June 2025 for US$500,000 (IGX Option). IGX has identified and secured two (2) prospective lithium brine projects in Utah and Nevada, USA, covering 10,660 hectares (26,300 acres). IGX and IGL continue discussions with US based developers and producers of battery-grade lithium products to potentially supply future lithium brine feedstock.

IGL and IGX have an excellent local US exploration team and contractors to ensure advancement of the projects. Next steps include permitting for new drill sites at the Liberty Lithium Brine Project, targeting areas that are interpreted to be prospective to intersect deep lithium brines in the centre of the basin, further west of drilling previously undertaken by QXR (ASX announcement 19 June 2024). QXR is continuing its review of work conducted to date by IGX on their two projects, which indicate encouraging results in a favourable geological setting.

The Liberty Lithium Brine Project, located in SaltFire Flat, California, covers a large area of 102km2 (25,300 acres), being one of the largest single lithium brine projects in the USA and one of the first identified near surface brine basins outside of the producing Clayton Valley in Nevada (Figure 1). Geophysical analysis shows a large basin over 1,000 metres deep. Drilling has shown numerous brine horizons. The Project’s geological setting mirrors Albemarle’s nearby producing Silver Peak lithium brine deposit in Clayton Valley USA ¹.

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