Emmerson Resources : Annual Report to Shareholders, 30 June 2022

ANNUAL REPORT

2022

REVIEW OF OPERATIONS

ABOUT EMMERSON RESOURCES

Emmerson Resources Limited (Emmerson or the Company) continues to deliver to our strategy of:

• Discovering the next generation of copper, gold, cobalt and bismuth mineralisation through the application of innovative exploration and new technologies.
• Expanding and advancing known mineralisation to scoping level studies for inclusion in the mining schedule (Tennant Creek brownfields exploration).
• Creating an emerging gold royalty business through assisting Joint Venture (JV) partner, Tennant Consolidated Mining Group (TCMG) in their Mine studies and establishment of the Central Processing Plant in Tennant Creek.

Emmerson has a commanding land position in the Tennant Creek Mineral Field (TCMF), one of Australia's highest-grade gold and copper districts. The region has produced over 5.5Moz of gold and 470,000t of copper from deposits including Warrego, White Devil, Orlando, Gecko, Chariot and Golden Forty. Emmerson has added to this endowment with high-grade gold discoveries at Edna Beryl and Mauretania; copper-gold at Goanna and Monitor (now owned by CuFe Limited) and, the recent discovery of ultra-high-gradecopper-gold-cobalt and bismuth at Emmerson's 100% owned Hermitage project. These discoveries were achieved utilising new technology and concepts and are the first discoveries in the TCMF for over two decades.

A recent rush of new tenement applications by major and junior explorers in TCMF not only highlights the prospectivity of the region for copper and gold but also Emmerson's strategic 1,700km2 land holding, and proprietary knowledge gained through focussed exploration activities in the field over the past 12 years.

Emmerson is also exploring across four early-stagegold-copper projects in NSW, identified (with our strategic alliance partner Kenex/Duke Exploration ASX:DEX) from the application of 2D and 3D predictive targeting models - aimed at increasing the probability of discovery. Duke can earn up to 10% (to pre BFS) of any project generated providing certain success milestones are met.

The highly prospective Macquarie Arc in NSW hosts more than 80Moz gold and 13Mt copper with these resources heavily weighted to areas of outcrop or limited cover. The Company's four exploration projects contain many attributes of the known deposits within the Macquarie Arc but remain underexplored due to historical impediments, including overlying cover (farmlands and younger rocks) and a lack of effective historic exploration.

The Company's view remains that discovery of new mineral deposits provides the best uplift in value for junior companies, particularly as we have first rate geological real estate in both Tennant Creek and NSW.

The emerging gold royalty business in Tennant Creek, where TCMG under a Strategic Alliance, undertakes the planning, mining, and processing across several high-grade gold projects, affords Emmerson a low-risk path to future multiple royalty streams.

The Strategic Alliance with TCMG, covers much of Emmerson's Northern and Southern Project Areas (NPA & SPA) at Tennant Creek. The alliance with TCMG includes the following:

• $10.5m Exploration Earn-in and Joint Venture (EEJV) in the NPA and SPA to earn 75% interest in both NPA and SPA over a five-year period.
• Delineation of circa 20,000km2 Area of Mutual Interest centred on Tennant Creek aimed at future exploration or acquisitions.
• Two Small Mines JV's (SMJV) with Emmerson to receive a free carried 6% gold gross revenue royalty for production from Small Mines (<250,000oz gold equivalent) and guarantee of 6% of a minimum 60,000oz gold production royalty or cash payment of any shortfall within five years.
• A Major Mines (MMJV) interest whereby Emmerson retains up to a 40% direct equity interest in any Major Discovery (>250,000oz gold equivalent).

The combined SPA and NPA JV's with TCMG result in a minimum $10.5m spend on exploration over five years, plus drive feasibility and mining studies ahead of mining and processing which are sole funded by TCMG.

TCMG is finalising plans for the establishment of a centralised CIP mill at Nobles Nob, adjacent to the SPA at Tennant Creek (Figure 1). Once established, this mill will unlock the value contained across many of these stranded, high-grade gold deposits, including those currently subject to the SMJV and

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REVIEW OF OPERATIONS

undergoing JORC Mineral Resource Estimates. Given the funding committed to exploration by TCMG, it is anticipated that over time, more projects will be added to the SMJV.

The two EEJVs (over the NPA and SPA) will consist of brownfields exploration around historical high grade gold deposits, plus continuing discovery of new deposits that will eventually be captured under either the SMJV or MMJV. Under the MMJV, Emmerson receives an immediate 40% contributing equity interest that, at its election, can be converted to a 20% free carried interest on the completion of a definitive feasibility study. Under the SMJV, TCMG is responsible for the funding, permitting, mine studies and all mining and processing activities.

The two EEJVs require TCMG to produce a minimum of 30,000oz of gold within five years across each JV (from which Emmerson will receive a 6% production royalty) or make the equivalent payment to Emmerson in cash. These agreements, together with funding and mining expertise from TCMG, provide a low-risk pathway for Emmerson shareholders to monetise the known high-grade gold and copper assets in Tennant Creek. It allows Emmerson to drive future exploration and discovery both at Tennant Creek and NSW while minimising future dilution to shareholders.

This Strategic Alliance establishes a funded pathway for the development of Emmerson's high-grade gold and copper projects and provides substantial new funding for exploration to continue to build the resource pipeline.

TCMG, a privately owned gold and copper focused resource company, has acquired tenements and projects from other parties in the TCMF and intend to undertake detailed mining studies with the ultimate goal of developing a portfolio of resources that will provide feed to its centralised processing facility in Tennant Creek.

Following a successful capital raising in April and May 2022 of $5.22 million (before costs) via a placement and share purchase plan the Company has a cash balance of $9.0 million at 30 June 2022.

TENNANT CREEK, NORTHERN TERRITORY

Exploration activities continued in the Northern Territory throughout the period despite the impact of COVID restrictions. Key drill programs were completed at Hermitage and Edna Beryl within our 100% owned tenements in Tennant Creek.

DISCOVERING THE NEXT GENERATION OF COPPER, GOLD, COBALT AND BISMUTH

MINERALISATION THROUGH THE APPLICATION OF INNOVATIVE EXPLORATION AND NEW

TECHNOLOGIES.

Emmerson is deploying new detection technologies such as ultra-high resolution drone magnetic surveys to better define subtle magnetic anomalies - specifically, early magnetite iron-oxide (ironstones) that have been overprinted by later hematite bearing, copper, gold, cobalt and bismuth rich fluids. The resolution of this drone survey is far superior to historic, fixed-wing magnetic surveys due to the drone being able to fly 15m above the ground and on 10-25m spaced lines.

The step change in discovery success for this new generation of deposit types is through not only pioneering new technology and techniques but a multi-disciplinary approach that includes deployment of next generation ultra-fine geochemistry, establishing ironstone fertility indices together with a deep understanding of the 3D structure, alteration and geology of the TCMF.

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REVIEW OF OPERATIONS

Picture 1 & 2: Recent Ultra-high resolution drone magnetic survey in progress.

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