Updated Port Gregory JORC Mineral Resource Increased By 23%

Heavy Minerals Limited (ACN 647 831 833) (“HVY”, “Heavy Minerals” or the “Company”) is pleased to announce the updated Mineral Resource estimate for the Port Gregory Garnet Project of 166 Mt @ 4.0% (THM) at a 2.0% THM cut- off grade. The 89% garnet fraction of the THM is in line with previous results resulting in 5.9 Mt of contained garnet.

• Completed Mineral Resource estimate includes 5.9 Mt of contained garnet, representing approximately 5 years of current global demand¹.
  
• 5.4 Mt of the contained Total Heavy Mineral (THM) is within the Measured and Indicated JORC category
• Updated JORC Mineral Resource estimate of 166 Mt @ 4.0% Total Heavy Minerals (THM) (Figure 1)
  • Measured Mineral Resource: 126 Mt @ 3.8% THM
  • Indicated Mineral Resource: 20 Mt @ 6.5% THM
  • Inferred Mineral Resource: 20 Mt @ 2.9% THM
• Majority of Mineral Resource (71% of contained garnet) is in the Measured JORC category
• 89% garnet fraction within the THM
• 95% Valuable Heavy Mineral (VHM) in the THM fraction which is well above industry averages with minor ilmenite and rutile credits
• Upside potential to the Mineral Resource with mineralisation open to the south and north within HVY’s tenure
• Work to commence on pit optimisation and mine planning to produce mining inventory to feed into upcoming Pre-Feasibility Study (PFS) for Port Gregory.
• Bulk sampling for end user acceptance testing scheduled to commence in 2H CY2023

Figure 1: Port Gregory Block Model showing JORC Mineral Resource classification

Significant resource upside potential still exists with mineralisation open to the south within HVY’ tenure (Figure 2). The updated Mineral Resource estimate increases the tonnage of material above the cut-off grade by 23% and results in an increase in contained garnet of 20%.

CEO, Mr. Andrew Taplin said:

“The Company was confident that there would be a significant increase to the size and quality of the resource following the most recent infill and extension aircore drilling program with the Company meeting all expectations. The updated Mineral Resource estimate now credibly positions HVY to be the next potential garnet producer in the Port Gregory region. The updated Mineral Resource estimate will inform the Port Gregory Project Pre- Feasibility Study that is scheduled to commence imminently and is expected to contribute further value to the already strong financial metrics. The Company remains of the view that its Port Gregory Garnet Project is a world- class asset.”

Figure 2: Port Gregory Block Model showing THM grade

JORC Mineral Resource Estimate

The Mineral Resource estimate for Port Gregory is reported in accordance with the JORC Code (2012 edition). Further information about the Port Gregory Mineral Resource is set out in the Summary of Resource Estimate Reporting Criteria section below and includes the information prescribed by ASX Listing Rule 5.9. This information should be read in conjunction with the applicable explanatory information provided for the purposes of Table 1 of the JORC Code, included in Appendices 1 to 3 of this announcement.

The Port Gregory Mineral Resource estimate is reported above a cut-off grade of 2.0% THM and is presented below in Table 1. This table conforms to guidelines set out in the JORC Code (2012).

The Mineral Resource outline for the Port Gregory deposit is presented in Figure 8 and the JORC Classification is presented in Figure 9.

At a cut-off grade of 2.0% THM the Port Gregory deposit comprises a total Mineral Resource of 166 Mt @ 4.0% THM, 10% SLIMES and 9% OS (oversize) containing 6.6 Mt of THM with an assemblage of 89% garnet, 4% ilmenite, 2% rutile/anatase and 1% zircon. The JORC categories are specifically stated as:

• a Measured Mineral Resource of 126 Mt@ 3.8% THM, 10% SLIMES and 9% OS containing 4.7 Mt of THM with an assemblage of 88% garnet, 4% ilmenite, 2% rutile/anatase and 0.6% zircon;
• an Indicated Mineral Resource of 20 Mt @ 6.5% THM, 8% SLIMES and 9% OS containing 1.3 Mt of THM with an assemblage of 92% garnet, 4% ilmenite, 1% rutile/anatase and 1% zircon; and
• an Inferred Mineral Resource of 20 Mt @ 2.9% THM, 11% SLIMES and 13% OS containing 0.6 Mt of THM with an assemblage of 89% garnet, 4% ilmenite, 2% rutile/anatase and 1% zircon.

Table 1: Port Gregory - 2023 Mineral Resource Estimate

Company and Projects Overview

The Port Gregory Project Mineral Resource estimate of 166 Mt @ 4.0% THM contains 5.9 Mt of garnet which equates to approximately five years of the current global garnet¹ demand. A Mineral Resource containing 5.9 MT garnet with ilmenite and rutile credits is an enviable position for the Company to be in after such a short period following listing on the ASX in September 2021. With 91% of the garnet resource in the Measured and Indicated Mineral Resource categories, the Company now has the required resource knowledge to inform the upcoming PFS.

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