Horseshoe Metals : Surface Material Review at Horseshoe Lights

The surface materials have been broadly grouped as follows (Figure 1):

Results of Phase 1 testing of gold vat, gold re-handle and C20 stockpiles was reported in ASX releases dated 10 September and 26 November 2021.

Copper-Gold Materials Discussion

Flotation tailings - SMART Project

useThe flotation tailings comprise an inferred resource of 1.42 Mt at 0.48% Cu, 0.34g/t Au and 6.5g/t Ag for 6,800t Cu, 15,300oz Au and 295,000oz Ag (Table 2). Metallurgical test work completed in 2015 (see ASX releases dated 7 April and 21 May 2015) successfully confirmed that wet table concentrates up to 6% Cu could be produced. Further detailed metallurgical test work is planned to determine the optimal low-cost gravity recovery process required to produce saleable Cu-Au-Ag concentrates from reprocessing of the tailings material.

M15 Stockpiles

personalM15 stockpiles comprise an inferred resource of 243,000t at 1.1% Cu, 0.17g/t Au and 4.7g/t Ag for 2650t Cu, 1,300oz Au and 37,000oz Ag (Figure 1 and Table 2). Historical leaching test work (see ASX release dated 20 August

2015) demonstrated that oxide copper material is very amenable to acid leaching with copper recoveries up to 80% achieved. The M15 stockpiles are predominantly oxide copper and will be assessed as part of a metallurgical study aimed at assessing all surface oxide material including C20 stockpile (C20), North Waste Dump (NWD), Southern Waste Dump (SWD) and Copper Re-handle Stockpile (CRS).

C20 Stockpile

The C20 stockpile is understood to be a low grade rehandle stockpile created during the gold only CIP operations phase in the mid to late 1980's. During the subsequent 'Chalcocite' DSO mining phase, the surface of this stockpile was used a resample area for high grade ore excavated from the margins of the DSO orebody that may have been diluted during mining.

C20 stockpile contains significant oxide gold and copper mineralisation, significant recent drilling results (Figure

6, and Table 1) include:

North Waste Dump

The North Waste Dump (NWD) was created during the early CIP gold production phase of the project during the mid to late 1980's and it is apparent any low grade oxide copper mineralisation mined adjacent to the gold-only mineralisation was deposited in the NWD.

There has been wide-spaced sampling of the dump by Reverse Circulation (RC) drilling as part of historic programmes targeted at bedrock mineralisation below the dump. A number of significant results were obtained during this phase (refer Figures 2 & 3, and Table 1) including:

These stockpiles (Figures 1 and 4) were created during the Direct Ship Ore (DSO) phase of mining in the upper parts of the Cu orebody during the late 1980, and early 1990's. During the 'Chalcocite' DSO mining phase, these stockpile and re-handle areas were likely used as resample areas for high grade ore excavated from the margins of the DSO orebody that may have been diluted during mining. The Southern Waste Dump (SWD) appears to comprise low grade Cu oxide and Cu mineralised wasted mined from the mineralised halo adjacent to the high- grade Cu mineralisation. These stockpiles and the Southern Waste Dump have not been adequately tested and require auger and/or RC drilling to allow further assessment.

Gold Materials Discussion

Gold Stockpiles

Stockpiles A, B, C and the ROM stockpile were created during the CIP gold mining phase of operations in the mid to late 1980's. Historic drilling is limited to one hole in each of the stockpiles (Figure 4) whilst the ROM gold

the three holes include:

Gold Leach Vats

Vat leach gold bearing material from early 1980's open pit mining activities prior to Barrack mines open pit and CIP gold operations during the mid to late 1980's has been auger drill tested (see ASX releases dated 6 August, 10 September and 26 November 2021). Material in Vats 3,4,5 and 6 averages 0.57 g/t Au whilst Vat 2 contains Cu- Au sulphide tailings and Vat 1 requires further assessment, having been substantially excavated (Figure 5).

Gold Re-Handle Stockpile

The area to the west of the Gold Vat area, now renamed the Gold Rehandle stockpile, consistently returned significant gold values averaging 1.13 g/t Au over a coherent mineable volume, increasing in depth from the west to the east, where it achieves a maximum height of 4m, in the vicinity of two now-covered (smaller) original gold

onlyleach Vats (referred to previously by the Company as Vats 7 and 8 - see ASX release dated 26 November 2021 and Figures 1 and 5).

Gold Tailings

The gold tailings require further sampling and assessment to determine the amount of coarse gravity recoverable gold still contained within this material, which has not been formally assessed for gold grade on an appropriate scale. The gold tailings also have small stockpiles of copper-mineralised material dumped on the surface of the landform which require further assessment.

useDiscussions are underway regarding potential offsite treatment of gold stockpiles remaining from the gold mining activities in the 1980's. Further evaluation of these stockpiles may be required including auger drilling and/or RC drilling.

Work programme and Next Steps

HOR has planned the following activities to further investigate the surface materials:

• Additional RC and/or auger drilling of the North Dump, Southern Dump, Gold stockpiles, C20 stockpile and Low-grade Cu sulphide stockpile located on top of the North West dump.
• Auger drilling of the gold and copper rehandle areas
• Acid leaching test work on oxide copper stockpiles and targets
• Gravity recovery test work on Copper Flotation and CIP tailings
• Assessment of the potential to recover high grade chalcocite and covellite DSO remnant from the historic mining phases via scavenging and/or heavy media separation.

For additional background on the Horseshoe Lights Project please refer to ASX releases: