Quarterly Activities/Appendix 5B Cash Flow Report

Valor Resources Limited (Valor or the Company) (ASX: VAL) is pleased to present its Quarterly Report and Cash Flow Report.

HIGHLIGHTS

CANADIAN URANIUM AND RARE EARTHS – ATHABASCA BASIN:

• Significant strategic addition to Valor’s Canadian portfolio with the staking of the Beatty River Heavy Rare Earth/Uranium Project:
  • Assays up to 8.75% TREO1 with up to 1.15% Dy2O3 reported from trenching and surface sampling by previous explorers.
  • The dominant rare earth mineral is xenotime, with heavy rare earths consistently comprising >90% of TREO.
  • The mineralisation style and geological setting share similarities with hydrothermal unconformity-related REE deposits such as Northern Minerals’ (ASX: NTU) Browns Range Project in WA.
• Drill planning underway at the Hidden Bay Uranium Project, located just 20km south-southwest of the historic Rabbit Lake Mine (Cameco):
  • Drill targets at Hidden Bay comprise radon-in-soil anomalies, partly coincident with gravity anomalies and located close to the Athabasca unconformity, with potential for both basement-hosted and Athabasca sandstone-hosted uranium deposits.
  • Drilling being planned for Q1 2024.

PERUVIAN COPPER:

• Two landmark transactions executed with Barrick Gold Corporation and Firetail Resources to realise value from Valor’s Peruvian Copper portfolio through cash, shares and other commitments in the two projects.
• Drill planning well advanced for the Picha Copper Project with a short-list of drilling contractors determined and logistics planning underway. Final drilling approvals expected in the coming weeks.

• Earn-in Agreement was executed with the leading global gold and copper producer Barrick Gold Corporation covering Valor’s Charaque Project in Peru:
  • Under the agreement, Barrick has been granted a 5-year option to acquire a 70% interest in the property for cash payments totalling US$800,000 and US$3 million of exploration expenditure.
  • During the first two years, Barrick guarantees a minimum exploration expenditure of US$500,000.
  • Barrick can earn an additional 10% by exercising a second option with a US$1 million cash payment and the delivery of a sole-funded pre-feasibility study, taking its interest to 80%.
• Subsequent to Quarter-end, Valor executed a Binding Terms Sheet with ASX-listed Firetail Resources (ASX: FTL) for the divestment of up to an 80% interest in Valor’s Picha and Charaque Copper Projects in Peru to Firetail:
• $200,000 exclusivity fee paid to Valor in consideration for Firetail being provided with an exclusive 90-day due diligence period.
• Consideration comprises A$550,000 in cash and, subject to Firetail shareholder approval, 15 million Firetail shares and 20 million performance rights subject to certain vesting conditions. The equity consideration is equivalent to a 20.58% shareholding in Firetail on a fully-diluted basis.
• Valor also retains exposure to future exploration upside in Peru via a retained 20% project interest.

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