CropLogic : CLI to acquire Halls Creek and Goldfields projects

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7 December 2021

CropLogic to Acquire a Suite of Gold Exploration Assets located in the Goldfields and Halls Creek in Western Australia

HIGHLIGHTS

1. Goldfields Projects located near Menzies.
2. Known gold mineralisation in the Goldfields Projects, with some highly anomalous results to be followed up.
3. Halls Creek exploration assets cover numerous gold prospects identified by historical exploration with very limited drilling yielding some noteworthy gold intercepts.
4. CropLogic Limited to raise up to $6,000,000 via re-compliance capital raising.
5. Vendor group is experienced in undertaking small scale mining activities.

CropLogic Limited (ARBN 619 330 648) (ASX: CLI) (Company) is pleased to announce that it has entered into a binding agreement (Agreement) under which it will acquire 100% of the issued capital of Rocktivity Gold Pty Ltd (ACN 631 813 836) (Rocktivity) from Rocktivity Mining Pty Ltd (ACN 639 866 470) (the Vendor), and thereby acquire the Goldfields Projects and the Halls Creek Projects (together, the Projects) (Proposed Acquisition).

Under the Proposed Acquisition, the Company will acquire an indirect interest in each of the tenements comprising the Goldfields Projects as these tenements are currently held by Rocktivity. Rocktivity also holds an option (Option) to acquire the tenements comprising the Halls Creek Projects, which it was granted from Northgate Resources Pty Ltd (ACN 611 115 710) (Northgate). The option will be exercised by Rocktivity prior to the Company listing and the Company has agreed to pay the consideration payable to Northgate following exercise of the Option.

The material terms of the Agreement are summarised in Annexure A and the material terms of the Option are summarised in Annexure B.

Prior to executing the Agreement, the board considered several potential acquisition opportunities. As with any business or asset that does not have a meaningful track record of revenue and profitability, there is not always an appropriate formal valuation methodology available when determining consideration. However, based on the Company's ongoing legal and technical due diligence process, and the representations and warranties provided by the Vendor, it considered the acquisition of the Projects to be the best path forward to generate value for the Company's shareholders (Shareholders) and the Company.

The Company has undertaken appropriate enquiries into the assets and liabilities, financial position and performance, profits and losses, and prospects of Rocktivity for the

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Company's Board to be satisfied that the Proposed Acquisition is in the best interests of the Company and its Shareholders. The Company's enquiries into the business of Rocktivity, and the tenements comprising the Projects, consisted of having a geologist review previous exploration and geological results in the area of the Halls Creek Projects, confirming Rocktivity's interests in the tenements comprising the Projects, and undertaking a general corporate legal review of Rocktivity. Based on the board's experience and background, it considered that the Proposed Acquisition compared favourably to recent third-partyre-compliance listing transactions involving mineral exploration assets, given the exploration potential of the Projects.

The Proposed Acquisition is conditional on the Company obtaining all necessary regulatory and shareholder approvals to effect the Proposed Acquisition and satisfying all other requirements of ASX for the reinstatement to official quotation of the Company's Shares on the ASX (among other things).

On completion, the Proposed Acquisition will amount to a significant change in the nature and scale of the Company's current activities and as such, the Company will be required to obtain approval from its Shareholders and to re-comply with Chapters 1 and 2 of the ASX Listing Rules. As part of the Company's re-compliance with Chapters 1 and 2 of the ASX Listing Rules, the Company intends to undertake a consolidation of the Company's existing capital structure on a 1 for 160 basis (Consolidation). To assist the Company to re- comply with Chapters 1 and 2 of the ASX Listing Rules the Company plans, subject to Shareholder approval, to conduct a capital raising under a full form prospectus (Prospectus) for the issue of 25,000,000 fully paid ordinary shares (on a post-Consolidation basis) in the capital of the Company (Shares) at an issue price of $0.20 per Share to raise

1. minimum of $5,000,000 (Minimum Subscription) with the ability to accept oversubscriptions of an additional 5,000,000 shares to raise a maximum of $6,000,000 (Maximum Subscription) (Public Offer).

The Company notes that ASX takes no responsibility for the contents of this announcement.

THE GOLDFIELDS PROJECTS

Pursuant to the Proposed Acquisition, the Company will acquire the Goldfields Projects.

Background to the Goldfields Projects

The Goldfields Projects are gold and nickel focused holding consisting of ten tenements, which are as follows:

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The Goldfields Projects includes the Mulwarrie Project, the Emerald Project, the Mulline Project, the Canegrass Project and the Camelot Project.

The Mulwarrie Project is located 120km WNW of Kalgoorlie, and 500km ENE of Perth in the Eastern Goldfields Region of Western Australia. The project is accessed from Coolgardie via the unsealed Coolgardie North and Davyhurst-Mulline roads. The nearby Mulline Project is located a further 15km along the unsealed Davyhurst-Mulline road, with access to the tenure via station tracks and grid lines.

The Emerald Project is located 150km NW of Kalgoorlie, 45km WNW of Menzies and 525km NE of Perth in the Eastern Goldfields Region of Western Australia. The project is accessed from Coolgardie via the unsealed Evanston-Menzies,Riverina-Snake Hill roads, from there using local gravel tracks and grid lines.

The Canegrass Project is located 100km NW of Kalgoorlie and 530km ENE of Perth in the Eastern Goldfields Region of Western Australia. The project is accessed from Ora Banda via the Goldfields Hwy, the unsealed Board Arroe-Ora Banda, Davyhurst-Ora Banda Roads, from there using local gravel tracks and grid lines.

The Camelot Project is located a 240km north of Kalgoorlie, 30km NNW of Leonora and 645km NE of Perth in the Eastern Goldfields Region of Western Australia. The project is accessed from Leonora via the Goldfields Hwy, and unsealed station tracks.

The geology of the Emerald, Mulline and Mulwarrie Projects is broadly subdivided into two distinct zones separated by the crustal scale Ida Lineament, which strikes approximately north-northwest through the project area. On the western side of the project the sequence comprises a sequence of mafic basalts of the Barlee Domain, the eastern side is comprised of mafic intrusives of the Kalgoorlie Group, Eastern Goldfields Superterrane. The mafic units have been intruded by numerous porphyry and porphyritic quartz intrusions. Minor pegmatitic intrusions have also been mapped within the project. The 15km long and 7km wide Ularring Monzogranite, a north-west trending pluton, appears to have been emplaced during the early stages of tectonism as aeromagnetic date shows the pluton as undergone similar brittle deformation to the surrounding greenstones.

Gold was first discovered at the Mulwarrie Mining Centre in the Project area in 1898. Subsequent discoveries were made along a north-westerly strike of 10km up until 1914.

Gold mineralisation occurs in structures both parallel to and cross cutting the regional trend. Strong alteration to biotite, diopside, and epidote as well as silicification and sulphide development is present in the structures.

Gold was first discovered on Mulline Project tenure at the Mystery in 1899 and was mined up until 1901.

The Mulline Trend covers an area of approximately 20km2. It is associated with the high surface gold anomalism associated with "laterite" gold deposits. Primary gold mineralisation is associated with quartz and sulphide veins that occur in shear zones within basalt and dolerite units. Mineralisation is also associated with porphyry units that have intruded the mafic sequence.

Gold was first discovered at Emerald in 1939 and was mined up until 1959.

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Gold mineralisation occurs at or close to a mylonized shear zone contact between fine grained basaltic and coarse grained amphibolitic rock types as well as laminated quartz veins. These zones are up to 6m wide and often contain significant steeply east dipping (45o) quartz lodes, which plunge to the south.

The Canegrass Project covers the central section of the Wongi Hills Greenstone Belt that extends 50 km north northwest from Siberia. The geology is dominated by a south-plunging synclinal structure of mafic and ultramafic rocks with minor felsic rock and narrow bands of metasediments. The sequence has been intruded by fine-grained felsic porphyry dykes and quartz veins. A horizon of ultramafic rock to the west of the syncline dips west and probably represents the western limb of an adjacent anticline, separated from the syncline by a major fracture along the anticlinal fold axis. The greenstones are bounded on the east by the intrusive Goongarrie granite and on the west by a sand-covered area of interpreted to overly granite containing numerous magnetic structures that are indicative of rafted greenstone remnants.

The Camelot Project occurs within a porphyritic granite of the Bundarra batholith, locally known as the Linger and Die porphyritic hornblende granodiorite, which has apparently intruded adamellite to the north and dacitic tuffs to the east. The alluvium-covered, western porphyritic granodiorite contact is formed by a NW-trendingKeith-Kilkenny Lineament. Alteration seen within the granodiorite consists of carbonate veinlets, sericite, and pyrite.

Due to the underlying granite, relatively fresh rock exposures occur throughout the Goldfields Projects' tenure. The surrounding greenstone sequence comprises transported distal colluvial and alluvial deposits ranging from a few metres deep to numerous tens of metres deep

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1. Red 5 Limited Annual Report 30 June 2021 comprising indicated resource 69.6Mt @ 1.4g/t for 3.0 moz Au and inferred resource 21.2Mt @ 1.6g/t for 1.1moz Au.
2. TNT Mines Limited acquisition announcement dated 7 September 2021 comprising indicated resource 136kt @ 18.6g/t for 81koz Au and inferred resource 182kt @ 10.3g/t for 60koz Au.
3. Ora Banda Gold Limited Quarterly Activities Report September 2021 comprising measured resource 86kt @ 2.0g/t Au, indicated 4.7Mt @ 2.0g/t Au and inferred 2.2Mt @ 3.1g/t Au.
4. Bardoc Gold Limited Annual Report 30 June 2021 comprising inferred resource 881kt @ 2.8g/t for 79koz Au.
5. Ora Banda Gold Limited Quarterly Activities Report September 2021 comprising indicated resource 4.4Mt @ 2.4g/t Au and inferred resource 0.8Mt @ 3.3g/t Au.
6. Ora Banda Gold Limited Quarterly Activities Report September 2021 comprising indicated resource 3.6Mt @ 3.4g/t Au and inferred resource 1.7Mt @ 3.5g/t Au.

Further details with respect to the Goldfields Projects will be included in the notice of meeting and Prospectus to be prepared in connection with the Proposed Acquisition and Public Offer.

Exploration Potential and Proposed Exploration Program for the Goldfields Projects

The Company's main objectives on completion of the Public Offer for the Goldfields Projects will be to:

1. investigate known gold prospects and assess the appropriateness for early small scale contract mining;
2. advance near surface targets (in particular targets where historic exploration has identified sample results of 1 g/t) utilising geophysical surveying followed by initial aircore and then deeper more focussed drilling, such as reverse circulation and/or diamond drilling;
3. complete regional geophysical surveys over prospective geological environments/ lithological trends followed by initial aircore and then deeper reverse circulation and/or diamond drilling;
4. identify additional drill targets by undertaking surface exploration activities through geophysical, gravity survey and soil sampling activities;
5. provide sufficient drilling data to allow estimation of maiden Mineral Resources at priority target areas;
6. through exploration success, evaluate opportunities for near term gold production; and
7. seek further exploration, acquisition and joint venture opportunities in Western Australia and elsewhere.

THE HALLS CREEK PROJECTS

The Halls Creek Projects are gold focused holdings consisting of six (6) granted exploration licences. The six exploration licences are all underlain by prospective basement lithologies of Paleoproterozoic age. Tectonically they are assigned to the Lamboo Province of the Halls Creek Orogen of the North Australian Craton. There are five stratigraphic units outcropping within the various tenements which are assigned to the Halls Creek Group and a granite. The rock types are listed in the following table in approximate order of abundance across the tenements.