Quarterly Activities/Appendix 5B Cash Flow Report

Winsome Resources Limited (ASX:WR1; “Winsome” or “the Company”) is pleased to provide this report on activities for the quarter ending 31 December 2022. It was a period in which the Company celebrated several milestones, including marking one year of trading on the ASX at the end of November, as well as being listed to trade on the US OTCQB market.

QUARTER HIGHLIGHTS

EXPLORATION

• New drilling campaigns commence at Adina and Cancet.
  
• Significant mineralised pegmatite intersections encountered at newly discovered Jamar outcrop at Adina.
• Gravity surveys reveal additional drill targets at Adina and Cancet.

CORPORATE

• $6.8m capital raised via Flow-Through Shares provisions under Canadian tax law, with placement at significant premium to trading price.
  
• Company quoted on US-based OTCQB exchange, opening way for more seamless trading in North American market.
• Ex-Core Lithium Managing Director, Stephen Biggins, appointed as Non Executive Chairman.
• Company acquires camp close to Adina and Cancet projects.
• Company acquires all lithium offtake rights for Power Metals Corp (TSXV:PWM) Case Lake lithium project in Ontario.

HEALTH & SAFETY

• Continue to record zero lost time and safety incidents throughout exploration and drill campaigns.

EXPLORATION ACTIVITIES

ADINA PROJECT: SHAPING UP TO BE A WORLD CLASS LITHIUM ASSET

Over the quarter, Adina continued to reveal itself as a highly prospective exploration target.

In the previous quarter, the Company reported the discovery of the new Jamar outcrop and high-grade lithium assays from rock chip samples, revealing grades as high as 4.89 per cent Li2O.¹

The Jamar discovery became one of the key targets for Winsome’s latest drill campaign, which commenced in October 2022 with a heli-portable diamond core rig delivered to site. A range of anomalies identified in gravity surveys were also targeted.

The gravity surveys had also revealed possible extensions to known pegmatite outcrops, informing the exploration team of several additional drill targets.

By the end of October, several significant mineralised pegmatite intersections had been drilled, most notably in drill hole AD-22-005, which collectively totalled more than 160m, close to the surface beneath the Jamar outcrop. This and other significant intercepts were part of the catalyst for Winsome to extend the drill program from an initially planned 5,000m to more than 20,000m and to organise for a second drill rig to be deployed.

Subsequent to the end of the quarter, Winsome reported assays from the first drill hole returned strong lithium mineralisation including 1.34 per cent Li2O over 107.6m². Coupled with earlier drill and rock chip results, this level of mineralisation shows Adina is shaping up as a world-class lithium rich pegmatite with similarities to some of the other declared resources and new discoveries in its vicinity in the James Bay region.

Throughout the first quarter, 2023, Winsome will receive and report on additional assay results from core samples collected before the Christmas break. The second drill rig has arrived at site and drilling has recommenced. The Company will provide a drilling update in the near term.

CANCET PROJECT: FLAGSHIP CONTINUES TO REVEAL POSITIVE SIGNS

Ahead of the RC drilling campaign, which commenced in October concurrently with the Adina campaign, the exploration team completed surface striping of the main ore body at Cancet.

The stripping revealed visible large spodumene crystals, providing a good indication of the structural geology of the at-surface ore body. While the presence of spodumene crystals within pegmatite does not necessarily equate to lithium mineralisation until confirmed by chemical assay, it provided the Company with assurance of several drill hole targets across the pegmatite body.

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