Calidus Resources : Significant Lithium Prospect Identified in East Pilbara

"These results highlight the immense prospectivity of the large tenement package and rights owned by Pirra Lithium.

"Work is continuing to determine the full extent of the pegmatite and to identify other pegmatites in the vicinity. As part of this, we are preparing for a maiden drilling program. The Company will also continue its aggressive exploration program elsewhere on the tenement package".

onlySpear Hill

The Spear Hill area, about 50km SW of Marble Bar, is part of the historic Shaw River tin field2. The area has been mined for alluvial tin since about 1893 with a little more than 6,500t of tin concentrate won from the field up until 1975.

usepersonalFigure 1 - Location of the Spear Hill area and tenement holdings and lithium rights of Pirra Lithium on a background of GSWA's 1:500,000 state bedrock geology and linear structures layers.

The Shaw River tin field lies almost entirely within granitic rocks of the Shaw River batholith. The batholith is a composite feature of old (>3,400-million-year-old) granitic gneisses, granites, and slivers of greenstone, intruded by 2,950-million- y ar-old granites and fractionated 2,890-2,830-million-year-old granites of the Split Rock Supersuite. Across the Pilbara Craton, including at Wodgina, Pilgangoora, and Global Lithium's (ASX:GL1) Archer deposit near Marble Bar, lithium is hosted in pegmatites associated with granites of the Split Rock Supersuite3. In the late 1980s Greenex documented the

resence of lepidolite in pegmatites4 in the Shaw River tin field in their pre-feasibility study of alluvial tin-tantalum deposits for Western Australia Rare Metals Co. Ltd and Greenbushes Ltd.

ForGeology of the Pegmatite

The spodumene- and lepidolite-bearing pegmatite is located on P45/2975 just over 3km ENE of Spear Hill and about 300m north of the Hillside-Marble Bar Road. The pegmatite has been mapped for about 1.2km along strike and appears to be broadly parallel to the foliation or gneissic layering in the enclosing granitic rocks. The pegmatite strikes ESE and probably dips shallowly to the NNE. The width of the pegmatite at surface ranges from less than 10m to more than 30m, but the true thickness is not yet known owing to uncertainty about the dip angle.

In laces the pegmatite bifurcates, with slivers of country rock present within the main body, or the pegmatite may comprise several parallel sheets. Small pegmatite veins with lepidolite and/or spodumene intrude country rock proximal to the main pegmatite. The main pegmatite is offset by several small NE-striking faults with a throw of less than a metre

Forto a few tens of metres.

Sp dumene forms pale green, white, pale grey, and pale purple crystals up to 20cm long with a frosted appearance on weathered surfaces. Lepidolite is present as both very coarse aggregates and finer grained masses of pale purple plates. Granitic rock and amphibolite wall rocks commonly show lepidolite alteration within a metre of the pegmatite contact. No consistent mineralogical zoning either along strike or across strike has been identified yet and it is not yet possible to estimate the relative abundance of each mineral.

Thirty-four rock chip samples were collected from the pegmatite, metasomatized country rock adjacent to the pegmatite, a d background country rock. Samples were collected from five traverses perpendicular to the strike of the pegmatite. Along each traverse, samples were collected 3-12m apart to ensure that all the main components of the pegmatite, including lepidolite- and spodumene-poor zones, were sampled. At each site, the pegmatite was sampled according to the mineralogical proportions of both lithium minerals and barren minerals (feldspar and quartz) present in the outcrop. Samples ranged from fine grained to coarse grained, with the majority medium to coarse grained.

Figure 4 - Samples of coarse spodumene (LHS) and coarse lepidolite (RHS) from samples sent for assay.

Assays for Li2O, Cs, Rb, Fe, and P, are shown in Table 1. All Sn values were less than 141ppm and Ta values less than 378ppm. Samples of pegmatite returned values of Li2O between 0.66% and 2.34%, with most between 1.31% and 2.34%.

Samples of moderately to strongly altered granite adjacent to the pegmatite span a wide range from 0.43% to 2.91% Li2O. Values for P and Fe in the pegmatite are, respectively, less than 300ppm and 0.57%, with the exception of sample CL009511 with 700 ppm P and 1.07% Fe; higher values are confined to samples consisting, wholly or partly, of metasomatized granite.

COMPETENT PERSON STATEMENT

The information in this announcement that relates to exploration results is based on and fairly represents information personalcompiled by Steve Sheppard a competent person who is a member of the AIG (Member #5290). Steve Sheppard is employed by Calidus Resources Limited and holds shares and options in the Company. Steve has sufficient experience that is relevant to the style of mineralisation and type of deposits under consideration and to the activity being u dertaken to qualify as a Competent Person as defined in the 2012 edition of the Australasian Code of Reporting of Exploration Results, Mineral Resources and Ore Reserves. Steve Sheppard consents to the inclusion in this announcement

f the matters based on his work in the form and context in which it appears.

FORWARD LOOKING STATEMENTS

This announcement includes certain "forward looking statements". All statements, other than statements of historical fact, are forward looking statements that involve risks and uncertainties. There can be no assurances that such statements will prove accurate, and actual results and future events could differ materially from those anticipated in such statements. Such information contained herein represents management's best judgement as of the date hereof based on information currently available. The Company does not assume any obligation to update forward looking statements.

DISCLAIMER

ForReferences in this announcement may have been made to certain ASX announcements, which in turn may have included exploration results and Minerals Resources. For full details, please refer to the said announcement on the said date. The Company is not aware of any new information or data that materially affects this information. Other than as specified in this announcement and mentioned announcements, the Company confirms it is not aware of any new information or data that materially affects the information included in the original market announcement(s), and in the case of estimates of Mineral Resources that all material assumptions and technical parameters underpinning the estimates in the relevant announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person's findings are presented have not been materially modified from the original announcement.