Announcement PDF 6 July 2023 RARE EARTH FEED GRADES INCREASED BY UP TO 148% • Metallurgical beneficiation testwork shows North Stanmore clay samples are highly amenable to upstream beneficiation, which has the potential to significantly reduce downstream processing costs and capital costs per product tonne. • Average TREYO head grade across 31 samples increased from 1308 ppm to 2192 ppm through rejecting +20 µm coarse material. • Size by assay analysis shows that up to 70% of rare earths are hosted in the fine -20 µm size fraction, in as low as 28% of the total mass. • Beneficiation testwork on a composite of 31 samples from within the pending initial JORC Mineral Resource Estimate area shows rejecting the +20 µm coarse fraction results in an average REE upgrade of 68%, with corresponding REE recovery of 58% and mass rejection of 66%. • Stage 2 metallurgical testwork program is well underway which includes flow sheet design to produce a mixed rare earth carbonate (MREC) as the end product. Victory Metals Limited (ASX:VTM) (“Victory” or “the Company”) is pleased to announce it has received further successful metallurgical test results using size by assay analysis on drill samples from the North Stanmore Rare Earth Element Project (“North Stanmore” or the “Project”), located approximately 10km north from the town of Cue, Western Australia with direct access to the Great Northern Highway. The beneficiation metallurgical results were received from a total of 31 AC drill samples, obtained within the JORC Resource modelling area, which were combined into ten metallurgical composites representing various geometallurgical domains for testwork. Victory’s Chief Executive Officer and Executive Director Brendan Clark, commented: “Metallurgical beneficiation has led to significant improvements in the plant feed grade of rare earth elements at North Stanmore, with the success of this program proving the high potential to reduce downstream processing and capital costs per product tonne at North Stanmore.” “In simple terms, by rejecting the +20 µm coarse material not only did Victory’s total rare earth oxide grade (TREO) significantly increase, the testwork program has also demonstrated that 58% of the rare earth concentration can be recovered by only processing 34.7% of the ore”. “Victory’s initial JORC Mineral Resource Estimate is expected to be reported to the market in the coming weeks, along with these very positive results from this beneficiation testwork program and the excellent metallurgical recoveries that have already being reported paving the way for an exciting future for Victory and its shareholders”. Page 1 “THE FUTURE OF AUSTRALIAN RARE EARTHS” ACN: 124 279 750 E: info@victorymetalsaustralia.com D: +61 (08) 6555 2950 A: Suite 1, 295 Rokeby Road, Subiaco, WA, 6008 Core Resources (“Core”), commented: “Core is excited to be working on the North Stanmore project with Victory Metals. The recent beneficiation testwork has shown the potential to substantially increase the grade of rare earth elements in North Stanmore ore with simple physical beneficiation. This work follows prior successful leach testing on North Stanmore samples and will complement ongoing Stage 2 leach optimisation testwork. Core looks forward to continuing the work with Victory Metals to ultimately develop the metallurgical flowsheet for the North Stanmore project.” Metallurgical Beneficiation Testwork Beneficiation metallurgical testing, as part of the stage 2 metallurgical testwork program, was undertaken by Core in Brisbane in June 2023. The aim of beneficiation testwork was to determine if REE can be upgraded by classification, with either screens or hydrocyclones, to reject a coarse low-grade fraction. This would be implemented upstream of REE leaching as shown below in a typical REE clay processing flowsheet. The rejection of low-grade ore and subsequent increase in downstream REE feed grade is likely to reduce downstream reagent consumption and equipment sizing, thereby significantly reducing operating and capital costs for the overall circuit. Figure 1: General Proposed Flowsheet for REE Clay Processing The beneficiation testwork was carried out on ten sample composite blends, VTM010 to VTM019, produced from 31 AC drill samples. Samples were selected from the North Stanmore project and aligned with the JORC resource modelling. The samples, with drill collar information, used to generate composite blends are given in Appendix A. Page 2 “THE FUTURE OF AUSTRALIAN RARE EARTHS” ACN: 124 279 750 E: info@victorymetalsaustralia.com D: +61 (08) 6555 2950 A: Suite 1, 295 Rokeby Road, Subiaco, WA, 6008 Size by assay analysis of the ten composites is summarised in Table 1 and has shown that: • 58.2% of the rare earths on average report to the target size fraction of -20 µm, with a range of 46.5% to 70.3%. • The -20 µm size fraction only accounts for 34.7% of the total sample mass on average, with a range of 28.3% to 41.3%. This equates to a rejection of 65.3% on average of the feed ore to the coarse +20 µm fraction, with a rejection range of 58.2% to 71.7% • The rare earth concentration in the -20 µm fraction is 68% on average higher in grade compared to the beneficiation head grade, resulting in an average grade increase from 1308 ppm TREYO to 2192 ppm TREYO with rejection of the +20 µm fraction. This upgrading ranged from 42% to 148%. -20 µm Fraction Assays Distribution TREYO HREO¹ TREYO HREO ppm ppm % % Upgrade Ratio TREYO HREO Composite Mass % VTM010 - Master Composite 34.7 2192 896 58.2 57.5 1.68 1.65 VTM011 - 0.14 Ce/Ce* Blend 28.3 2820 1193 70.3 69.0 2.48 2.44 VTM012 - 0.37 Ce/Ce* Blend 41.8 1679 618 66.1 67.0 1.58 1.60 VTM013 - 0.51 Ce/Ce* Blend 31.0 1701 645 46.5 48.3 1.50 1.56 VTM014 - 0.65 Ce/Ce* Blend 36.7 1396 519 52.3 55.7 1.42 1.52 VTM015 - 0.83 Ce/Ce* Blend 35.9 2173 969 54.3 57.6 1.51 1.60 VTM016 - 0.24 HREO Ratio Blend 37.9 1386 355 55.5 54.2 1.46 1.43 VTM017 - 0.41 HREO Ratio Blend 38.8 2134 925 67.2 69.6 1.73 1.80 VTM018 - 0.52 HREO Ratio Blend 29.3 2260 1129 52.9 55.0 1.80 1.87 VTM019 - >1500 ppm TREYO Blend 31.7 4156 2015 HREO – Eu2O3, Gd2O3, Tb4O7, Dy2O3, Ho2O3, Er2O3, Tm2O3, Yb2O3, Lu2O3 and Y2O3 Ce/Ce* = (2*(CeN)/(LaN+PrN) where CeN, LaN and PrN are chondrite normalised values 53.7 53.3 1.69 1.68 Table 1: Summary Size by Assay Analysis for the Target -20 µm Fraction. 4500 TREYO Grade (ppm) 4000 3500 3000 2500 2000 1500 1000 500 0 Head -20 µm Figure 2: REE Grade in Head and -20 µm Size Fractions. Page 3 “THE FUTURE OF AUSTRALIAN RARE EARTHS” ACN: 124 279 750 E: info@victorymetalsaustralia.com D: +61 (08) 6555 2950 A: Suite 1, 295 Rokeby Road, Subiaco, WA, 6008 This announcement has been authorised by the Board of Victory Metals Limited. For further information please contact: Brendan Clark CEO and Executive Director b.clark@victorymetalsaustralia.com Jane Morgan Investor and Media Relations jm@janemorganmanagement.com.au Victory Metals Limited: Company Profile Victory is focused upon the exploration and development of its Rare Earth Element (REE) and Scandium Discovery in the Cue Region of Western Australia. Victory’s key assets include a portfolio of assets located in the Midwest region of Western Australia, approximately 665 km from Perth. Victory’s Ionic clay REE discovery is rapidly evolving with the system demonstrating high ratios of Heavy Rare Earth Oxides and Critical Magnet Metals NdPr + DyTb. Competent Person Statement Professor Ken Collerson Statements contained in this report relating to exploration results, scientific evaluation, and potential, are based on information compiled and evaluated by Professor Ken Collerson. Professor Collerson (PhD) Principal of KDC Geo Consulting, and a Fellow of the Australasian Institute of Mining and Metallurgy (AusIMM), is a geochemist/geologist with sufficient relevant experience in relation to rare earth element geochemistry, critical metal mineralisation and REE systematics given in Core metallurgical data summaries that are being reported on, to qualify as a Competent Person as defined in the Australian Code for Reporting of Identified Mineral resources and Ore reserves (JORC Code 2012). Professor Collerson consents to the use of this information in this report in the form and context in which it appears. The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcements in relation to the exploration results. The Company confirms that the form and context in which the competent persons findings have not been materially modified from the original announcement. Page 4 “THE FUTURE OF AUSTRALIAN RARE EARTHS” ACN: 124 279 750 E: info@victorymetalsaustralia.com D: +61 (08) 6555 2950 A: Suite 1, 295 Rokeby Road, Subiaco, WA, 6008 Figure 3. Regional Map showing Victory Metals tenement package and pending tenements. Page 5 “THE FUTURE OF AUSTRALIAN RARE EARTHS” ACN: 124 279 750 E: info@victorymetalsaustralia.com D: +61 (08) 6555 2950 A: Suite 1, 295 Rokeby Road, Subiaco, WA, 6008 Appendix A: Sample Drill Collar Information and Blend Compositions Sample ID Hole ID MGA North MGA East From m To m TREYO ppm 315067 315068 315069 315070 315071 315072 315073 315074 315075 315076 315077 315078 315079 315080 315081 315082 315083 315084 315085 315086 315087 315088 315089 315090 315091 315092 315093 315094 315095 315096 315097 23NSTRC030 23NSTRC040 23NSTRC040 23NSTRC044 23NSTRC044 23NSTRC044 23NSTRC046 23NSTRC053 23NSTRC056 23NSTRC056 23NSTRC056 23NSTRC063 23NSTRC063 23NSTRC063 23NSTRC070 23NSTRC071 23NSTRC076 23NSTRC076 23NSTRC076 NSTAC098 NSTAC098 NSTAC098 NSTAC098 NSTAC098 NSTAC098 NSTAC170 NSTAC170 NSTAC170 NSTAC170 NSTAC170 NSTAC170 6974411 6974398 6974398 6974399 6974399 6974399 6974391 6974428 6974415 6974415 6974415 6973491 6973491 6973491 6973558 6973571 6973580 6973580 6973580 6973883 6973883 6973883 6973883 6973883 6973883 6976734 6976734 6976734 6976734 6976734 6976734 586509 587994 587994 588595 588595 588595 588898 589963 590400 590400 590400 587622 587622 587622 589431 589620 589577 589577 589577 588797 588797 588797 588797 588797 588797 589681 589681 589681 589681 589681 589681 33 30 31 18 19 20 28 53 65 75 76 45 46 49 33 38 34 35 37 22 24 25 26 28 29 28 29 30 31 32 34 34 31 32 19 20 21 29 54 66 76 77 46 47 50 34 39 35 36 38 23 25 26 27 29 30 29 30 31 32 33 35 1386 1064 903 1308 1561 1589 1893 1177 1009 1136 913 902 926 1431 1174 10498 3492 994 1131 1013 1623 1613 1013 1253 1436 1255 2497 1444 1034 1111 1033 Table 2. Drill collar information with depths of samples used in the metallurgical testwork. Page 6 “THE FUTURE OF AUSTRALIAN RARE EARTHS” ACN: 124 279 750 E: info@victorymetalsaustralia.com D: +61 (08) 6555 2950 A: Suite 1, 295 Rokeby Road, Subiaco, WA, 6008 Composite Description TREYO Head Grade ppm Samples VTM010 Master Composite 1308 All 31 samples, see Table 2 VTM011 0.14 Ce/Ce* Blend 1135 315068, 315069, 315073, 315076, 315077, 315080 VTM012 0.37 Ce/Ce* Blend 1063 315078, 315079, 315090, 315092, 315093, 315094 VTM013 0.51 Ce/Ce* Blend 1133 315072, 315087, 315089, 315091, 315095, 315096 VTM014 0.65 Ce/Ce* Blend 982 315070, 315071, 315075, 315081, 315084, 315097 VTM015 0.83 Ce/Ce* Blend 1437 315067, 315074, 315083, 315085, 315086, 315088 VTM016 0.24 HREO Ratio Blend 947 315067, 315070, 315071, 315075, 315078, 315079, 315086, 315091, 315092, 315095 VTM017 0.41 HREO Ratio Blend 1231 315073, 315074, 315080, 315085, 315087, 315090, 315093, 315094, 315096, 315097 VTM018 0.52 HREO Ratio Blend 1254 315068, 315069, 315072, 315076, 315077, 315081, 315083, 315084, 315088, 315089 VTM019 >1500 ppm TREYO Blend 2455 315071, 315072, 315073, 315082, 315083, 315087, 315088, 315093 Table 3: Sample Composite Information Page 7 “THE FUTURE OF AUSTRALIAN RARE EARTHS” ACN: 124 279 750 E: info@victorymetalsaustralia.com D: +61 (08) 6555 2950 A: Suite 1, 295 Rokeby Road, Subiaco, WA, 6008 Appendix B: Size by Assay Data TREE: La-Lu + Y, Sc HREE: Eu, Gd, Tb, Dy, Ho, Er, Tm, Yb, Lu and Y LREE: La, Ce, Pr, Nd, Pm, Sm VTM010 - Master Composite Size fraction µm Mass g Mass % +106 -106 +75 -75 +53 234 86 11 13 22 195 41.7 15.4 1.9 2.3 3.9 34.7 -53 +38 -38 +20 -20 Calc. Head TREY ppm Assays HREE ppm Distribution TREY HREE LREE % % % Upgrade Ratio TREY HREE LREE LREE ppm 606 858 888 847 770 1811 1081 253 352 394 349 327 733 443 346 490 478 479 429 1055 623 23.4 12.2 1.6 1.8 2.8 58.2 0.56 0.79 0.82 0.78 0.71 1.68 TREY ppm Assays HREE ppm LREE ppm TREY % 306 495 594 582 720 2331 938 132 233 279 263 322 975 400 166 248 299 304 381 1329 523 16.3 5.2 1.9 2.3 4.0 70.3 TREY ppm Assays HREE ppm LREE ppm TREY % 376 755 722 680 663 1388 878 124 268 278 253 241 505 315 243 464 421 405 401 853 543 15.1 10.1 2.5 2.6 3.7 66.1 TREY ppm Assays HREE ppm LREE ppm 722 804 770 666 622 1405 936 205 368 359 298 279 527 338 508 420 393 350 326 853 582 23.8 12.2 1.7 1.8 2.9 57.5 23.2 12.1 1.5 1.8 2.7 58.8 0.57 0.79 0.89 0.79 0.74 1.65 0.56 0.79 0.77 0.77 0.69 1.69 VTM011 - 0.14 Ce/Ce* Blend Size fraction µm Mass g Mass % +106 -106 +75 -75 +53 231 46 14 17 24 131 49.8 9.9 3.0 3.7 5.3 28.3 -53 +38 -38 +20 -20 Calc. Head Distribution HREE LREE % % 16.5 5.8 2.1 2.4 4.2 69.0 15.8 4.7 1.7 2.2 3.8 71.8 Upgrade Ratio TREY HREE LREE 0.33 0.53 0.63 0.62 0.77 2.48 0.33 0.58 0.70 0.66 0.80 2.44 0.32 0.47 0.57 0.58 0.73 2.54 VTM012 - 0.37 Ce/Ce* Blend Size fraction µm Mass g Mass % +106 -106 +75 -75 +53 162 54 14 15 22 192 35.2 11.8 3.0 3.3 4.9 41.8 -53 +38 -38 +20 -20 Calc. Head Distribution HREE LREE % % 13.9 10.0 2.7 2.7 3.7 67.0 15.8 10.1 2.4 2.5 3.6 65.7 Upgrade Ratio TREY HREE LREE 0.43 0.86 0.82 0.77 0.76 1.58 0.39 0.85 0.88 0.80 0.76 1.60 0.45 0.85 0.78 0.75 0.74 1.57 VTM013 - 0.51 Ce/Ce* Blend Size fraction µm Mass g Mass % +106 -106 +75 -75 +53 185 49 19 18 27 134 42.9 11.3 4.4 4.1 6.3 31.0 -53 +38 -38 +20 -20 Calc. Head Page 8 Distribution TREY HREE LREE % % % Upgrade Ratio TREY HREE LREE 33.1 9.7 3.6 2.9 4.2 46.5 0.77 0.86 0.82 0.71 0.66 1.50 26.0 12.2 4.7 3.6 5.2 48.3 37.4 8.1 3.0 2.5 3.5 45.4 0.61 1.09 1.06 0.88 0.82 1.56 “THE FUTURE OF AUSTRALIAN RARE EARTHS” ACN: 124 279 750 E: info@victorymetalsaustralia.com D: +61 (08) 6555 2950 A: Suite 1, 295 Rokeby Road, Subiaco, WA, 6008 0.87 0.72 0.68 0.60 0.56 1.47 VTM014 - 0.65 Ce/Ce* Blend Size fraction µm Mass g Mass % +106 -106 +75 -75 +53 213 61 19 19 23 195 40.2 11.5 3.5 3.7 4.4 36.7 -53 +38 -38 +20 -20 Calc. Head TREY ppm Assays HREE ppm Distribution TREY HREE LREE % % % Upgrade Ratio TREY HREE LREE LREE ppm 571 663 795 693 648 1154 811 179 203 285 236 225 424 280 384 442 491 436 404 703 514 28.3 9.4 3.4 3.1 3.5 52.3 0.70 0.82 0.98 0.85 0.80 1.42 TREY ppm Assays HREE ppm LREE ppm TREY % 765 1119 1184 940 869 1796 1187 283 428 481 400 404 792 494 474 679 689 526 452 982 680 28.5 7.3 3.1 2.7 4.1 54.3 TREY ppm Assays HREE ppm LREE ppm 493 700 682 644 617 1146 783 121 194 201 195 205 290 203 TREY ppm 455 781 772 654 730 1764 1018 25.7 8.4 3.6 3.1 3.5 55.7 30.0 9.9 3.4 3.1 3.4 50.2 0.64 0.73 1.02 0.84 0.81 1.52 0.75 0.86 0.95 0.85 0.79 1.37 VTM015 - 0.83 Ce/Ce* Blend Size fraction µm Mass g Mass % +106 -106 +75 -75 +53 206 36 14 16 26 167 44.2 7.8 3.1 3.4 5.6 35.9 -53 +38 -38 +20 -20 Calc. Head Distribution HREE LREE % % 25.3 6.7 3.0 2.7 4.6 57.6 30.9 7.8 3.1 2.6 3.7 51.9 Upgrade Ratio TREY HREE LREE 0.64 0.94 1.00 0.79 0.73 1.51 0.57 0.87 0.97 0.81 0.82 1.60 0.70 1.00 1.01 0.77 0.66 1.45 VTM016 - 0.24 HREO Ratio Blend Size fraction µm Mass g Mass % +106 -106 +75 -75 +53 296 88 30 29 34 292 38.5 11.5 3.9 3.7 4.5 37.9 -53 +38 -38 +20 -20 Calc. Head Distribution TREY HREE LREE % % % Upgrade Ratio TREY HREE LREE 361 485 460 427 392 826 559 24.2 10.3 3.4 3.1 3.5 55.5 0.63 0.89 0.87 0.82 0.79 1.46 Assays HREE ppm LREE ppm TREY % 155 346 350 292 313 756 421 295 420 404 345 401 983 582 18.7 5.7 2.3 2.3 3.8 67.2 22.9 11.0 3.9 3.6 4.5 54.2 24.8 10.0 3.2 2.8 3.1 56.0 0.59 0.96 0.99 0.96 1.01 1.43 0.65 0.87 0.82 0.76 0.70 1.48 VTM017 - 0.41 HREO Ratio Blend Size fraction µm Mass g Mass % +106 -106 +75 -75 +53 342 60 25 29 43 316 41.9 7.4 3.1 3.6 5.2 38.8 -53 +38 -38 +20 -20 Calc. Head Page 9 Distribution HREE LREE % % 15.4 6.1 2.6 2.5 3.9 69.6 21.3 5.3 2.1 2.1 3.6 65.5 Upgrade Ratio TREY HREE LREE 0.45 0.77 0.76 0.64 0.72 1.73 0.37 0.82 0.83 0.69 0.74 1.80 “THE FUTURE OF AUSTRALIAN RARE EARTHS” ACN: 124 279 750 E: info@victorymetalsaustralia.com D: +61 (08) 6555 2950 A: Suite 1, 295 Rokeby Road, Subiaco, WA, 6008 0.51 0.72 0.70 0.59 0.69 1.69 VTM018 - 0.52 HREO Ratio Blend Size fraction µm Mass g Mass % +106 -106 +75 -75 +53 368 83 28 32 39 229 47.2 10.6 3.6 4.1 5.1 29.3 -53 +38 -38 +20 -20 Calc. Head TREY ppm Assays HREE ppm Distribution TREY HREE LREE % % % Upgrade Ratio TREY HREE LREE LREE ppm 653 778 785 739 756 1867 1036 289 361 371 356 368 923 493 353 399 395 365 369 919 527 29.7 8.0 2.8 3.0 3.7 52.9 0.63 0.75 0.76 0.71 0.73 1.80 TREY ppm Assays HREE ppm LREE ppm TREY % 1282 1664 1557 1425 1511 3434 2029 655 738 686 638 694 1648 981 618 909 853 767 799 1761 1032 29.6 8.7 2.4 2.5 3.1 53.7 27.7 7.8 2.7 3.0 3.8 55.0 31.7 8.1 2.7 2.9 3.5 51.1 0.59 0.73 0.75 0.72 0.75 1.87 0.67 0.76 0.75 0.69 0.70 1.74 VTM019 - >1500 ppm TREYO Blend Size fraction µm Mass g Mass % +106 -106 +75 -75 +53 290 65 20 22 26 196 46.8 10.6 3.2 3.5 4.1 31.7 -53 +38 -38 +20 -20 Calc. Head Page 10 Distribution HREE LREE % % 31.3 8.0 2.2 2.3 2.9 53.3 28.1 9.3 2.6 2.6 3.2 54.2 Upgrade Ratio TREY HREE LREE 0.63 0.82 0.77 0.70 0.74 1.69 0.67 0.75 0.70 0.65 0.71 1.68 “THE FUTURE OF AUSTRALIAN RARE EARTHS” ACN: 124 279 750 E: info@victorymetalsaustralia.com D: +61 (08) 6555 2950 A: Suite 1, 295 Rokeby Road, Subiaco, WA, 6008 0.60 0.88 0.83 0.74 0.77 1.71 JORC Code, 2012 Edition – Table 1 Section 1 Sampling Techniques and Data Criteria JORC Code explanation Sampling techniques • • Drilling techniques Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling. Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used. • Aspects of the determination of mineralisation that are Material to the Public Report. • In cases where ‘industry standard’ work has been done this would be relatively simple (eg ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information. • Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, Commentary • • Victory Metals Australia (ASX:VTM) completed three aircore drilling campaigns at North Stanmore during the period MayDecember 2022. Aircore (AC) drilling samples were collected as 1-m samples from the rig cyclone and placed on top of black plastic that was laid on the natural ground surface to prevent contamination in separate piles and in orderly rows. • Using a hand-held trowel, 4m composite samples were collected from the one-meter piles. • These composite samples weighed between 2 and 3 kgms. • A handheld pXRF analyzer (Olympus Vanta) was used to determine anomalous REE (Rare earth element) geochemistry from the on ground 1-m sample piles. • pXRF reading times were 45 secs over 3 cycles for multielement and REE assays. • These results are not considered reliable without calibration using chemical analysis from an accredited laboratory. • The pXRF is used as a guide to the relative presence or absence of certain elements, including REEs to help direct the sampling program. • Anomalous Samples were collected using a handheld trowel and placed into calico bag weighing 2-3 kgms, ready for transporting to the assay lab for analysis. • REE anomalism thresholds are determined by Victory Metals geologists based on historical data analysis. • Air core drilling uses a three-bladed steel or tungsten drill bit to penetrate the weathered layer of loose soil and rock fragments. Criteria JORC Code explanation triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc). Drill sample recovery Logging • Method of recording and assessing core and chip sample recoveries and results assessed. • Measures taken to maximise sample recovery and ensure representative nature of the samples. • Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse grained material. • Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies. • Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography. • The total length and percentage of the relevant intersections logged. Commentary The drill rods are hollow and feature an inner tube with an outer barrel (similar to RC drilling). • Air core drilling uses small compressors (750 cfm/250 psi) to drill holes into the weathered layer of loose soil and fragments of rock. • After drilling is complete, an injection of compressed air is unleashed into the space between the inner tube and the drill rod’s inside wall, which flushes the cuttings up and out of the drill hole through the rod’s inner tube, causing Less chance of cross-contamination. • Air core drill rigs are lighter in weight than other rigs, meaning they’re quicker and more manoeuvrable in the bush. • AC Drilling was performed by Seismic Drilling of Wangara and Orlando Drilling from Perth. • Representative air core samples collected as 2-meter intervals, with corresponding chips placed into chip trays and kept for reference at VTM’s facilities. • Most samples were dry and sample recovery was very good. • VTM does not anticipate any sample bias from loss/gain of material from the cyclone. • No defined relationship exists between sample recovery and grade. Sample bias due to preferential loss or gain of fine or coarse material has not been noted. • VTM does not anticipate any sample bias from loss/gain of material from the cyclone. • All aircore samples were lithologically logged using standard industry logging software on a notebook computer. All AC samples have been logged for lithology, alteration, quartz veins, colour, fabrics. Representative AC samples collected as 2-meter intervals, with corresponding chips placed into chip trays and kept for reference at VTM’s facilities. • • • Logging is qualitative in nature. • Samples have not been photographed. Criteria Sub-sampling techniques and sample preparation Quality of assay data and laboratory tests Verification of sampling and assaying JORC Code explanation Commentary • All geological information noted above has been completed by a competent person as recognized by JORC. • If core, whether cut or sawn and whether quarter, half or all core taken. • Air core sampling was undertaken on 1m intervals using a Meztke Static Cone splitter. • If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry. • Most 1-meter samples were dry and weighed between 2 and 3 kgms. • For all sample types, the nature, quality and appropriateness of the sample preparation technique. • Samples from the cyclone were laid out in orderly rows on the ground. • Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples. • Using a hand-held trowel, 4m composite samples were collected from the one-meter piles. Measures taken to ensure that the sampling is representative of the in-situ material collected, including for instance results for field duplicate/second-half sampling. • • These composite samples weighed between 2 and 3 kgms. • For any anomalous (>0.1 g/t Au) 4m composite sample assays, the corresponding one-meter samples are also collected and assayed. • Whether sample sizes are appropriate to the grain size of the material being sampled. • Quality control of the assaying comprised the collection of a duplicate sample every hole, along with the regular insertion of industry (OREAS) standards (certified reference material) every 30 samples and blanks (beach sand) every 50 samples. • The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total. • Samples to be submitted for sample preparation and geochemical analysis by ALS Perth. In the field spot checks were completed on selected samples using a hand held Olympus Vanta XRF unit. These results are not considered reliable without calibration using chemical analysis. They were used as a guide to the relative presence or absence of certain elements, including REEs to help guide the drill program • • For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc. • Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision have been established. • The verification of significant intersections by either independent or alternative company personnel. • No verification of significant intersections undertaken by independent personnel, only the VTM project geologist. • The use of twinned holes. • Validation of 4m composite assay data was undertaken to compare duplicate assays, standard assays and blank assays. Criteria Location of data points Data spacing and distribution Orientation of data in relation to geological structure Sample security JORC Code explanation Commentary • Comparison of assaying between the composite samples (aqua regia digest) and the 1-meter samples (4 acid digest) will be made. • ALS labs routinely re-assayed anomalous assays (greater than 0.3 g/t Au) as part of their normal QAQC procedures. Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation. • All aircore drill hole coordinates are in GDA94 Zone 50 • All aircore holes were located by handheld GPS with an accuracy of +/- 5 m. • Specification of the grid system used. • • Quality and adequacy of topographic control. There is no detailed documentation regarding the accuracy of the topographic control. • No elevation values (Z) were recorded for collars. An elevation of 450 mRL was assigned by VTM. • There were no Down-hole surveys completed as aircore drill holes were not drilled deep enough to warrant downhole surveying. • Aircore drilling at Stanmore and Mafeking Bore was on 100 metre line spacing and 900 metres between drill holes. • Given the first pass nature of the exploration programs, the spacing of the exploration drilling is appropriate for understanding the exploration potential and the identification of structural controls on the mineralisation. • Four- meter sample compositing has been applied. • Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols. • Discuss any adjustment to assay data. • • Data spacing for reporting of Exploration Results. • Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied. • Whether sample compositing has been applied. • Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type. • The relationship between drill orientation and the mineralised structures is not known at this stage as the prospects are covered by a 2-10m blanket of transported cover. • If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material. • It is concluded from aerial magnetics that any mineralisation trends 010-030. Dips are unknown as the area is covered by a thin (1-5m) blanket of transported cover. • Azimuths and dips of aircore drilling was aimed to intersect the strike of the rocks at right angles. • Downhole widths of mineralisation are not accurately known with aircore drilling methods. • All samples packaged and managed by VTM personnel • The measures taken to ensure sample security. Criteria Audits or reviews JORC Code explanation • The results of any audits or reviews of sampling techniques and data. Commentary • Larger packages of samples will be couriered to ALS from Cue by professional transport companies in sealed bulka bags. • No sampling techniques or data have been independently audited. Section 2 Reporting of Exploration Results Criteria JORC Co