Perpetual Resources : Beharra DSO Scoping Study Update

The timeline for delivery and announcement of the final DSO Scoping Study is therefore dependent on the outcome of these negotiations and discussions, with Perpetual to provide further updates once clarity on the timelines and discussions are known.

onlyStatus of DSO Scoping Study

Perpetual's internal team has been working diligently to collate and analyse the various internal work streams that has enabled an accurate estimation of the capital and operating cost profile of a potential Beharra DSO Project. This specific work is a sub-set of the DSO Scoping Study and is now largely complete. It has provided valuable insights into how Perpetual negotiates other essential items required to finalise the DSO Scoping Study, including guiding how Perpetual must approach the offtake and joint venture partnering discussions to maximise the potential economic value of a potential DSO Project.

useA key input into the final DSO Scoping Study is the resource estimation work relating to the white sand only horizon at Beharra, which is being conducted by Snowden Mining Consultants (Snowden), who have undertaken all resource estimation work previously at the Beharra project. Snowden is in the final stages of concluding their resource estimation work, which is anticipated for delivery in coming weeks. Inclusion of this necessary work in the DSO Scoping Study will enable sufficient certainty on potential annual production levels and approximate mine life, two essential inputs into a final DSO Scoping Study.

personalOngoing and constructive discussions continue with the potential offtake partner (although these remain uncertain and incomplete), with successful conclusion of an economic sharing model currently seen as

the most likely outcome to ensure a viable DSO project. The interested offtake partner has been actively engaged in conducting their own independent metallurgical analysis of the Beharra white sand only orebody, with further testing and analysis ongoing. With this additional metallurgical testing and commercial discussions/negotiations continuing, Perpetual is unable to finalise an appropriate sales price estimate for the Beharra DSO product at this time, or any other alternative commercial profit- sharing arrangement or joint venture structures, which is one of the remaining key inputs into the final DSO Scoping Study economic model. With constructive talks continuing, Perpetual hopes to update the marking in due course and is required to hold off finalisation of the DSO Scoping Study until that time.

Perpetual stresses that the outcome of the potential joint venture partnering discussions remains speculative and that no guarantee of a successful economic DSO business case can yet be concluded.

Unsolicited Inbound Interest in Beharra Silica Sand

In recent months, Perpetual continues to receive regular unsolicited inbound interest from buyers of Forhigh quality (low impurity) silica sand, mostly seeking significant tonnage for immediate delivery. While Perpetual is still in the project development stage and unable to supply these tons at present, it is indicative of general demand for high quality silica sand, which remains strong, driven by the need for

increased tonnage of low impurity, particularly low iron (Fe2O3) silica sand.

Perpetual remains highly encouraged by this unsolicited interest and confirms that it is the Company's primary intent to focus on very low impurity (circa 100ppm Fe2O3) segment of the Asian glass markets. Our current bulk sample metallurgical test work is predominantly aimed at determining the individual impurity profile of the upper and lower zones of the white sand horizon at Beharra. Initial analysis of previous drilling results suggests a much lower impurity product may be possible from the upper zone of the white sand horizon at Beharra, with future announcements aiming to provide more insight into this potential.

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Executive Chairman of Perpetual, Julian Babarczy, commented:

"While we have made solid progress in recent months on the key aspects of the DSO Scoping Study over which our project team has direct control, required input from key external stakeholders has taken onlyslightly longer than expected. While this has led to an extension for the time for delivery of the DSO Scoping Study, the extra time is allowing this key information to be utilised in ongoing discussions and egotiations with the interested offtake partner. While a successful outcome of the DSO Scoping Study remains speculative, engagement with the interested potential joint venture partner remains

constructive.

Continued unsolicited interest from Asian silica sand buyers has confirmed the high level of ongoing interest and end user demand from buyers of low impurity silica sand in the region. Based on recent uset st work, Perpetual believes that Beharra shows good potential to produce a very low iron silica sand product, which has potential to attract a premium in the Asian market due to robust demand growth from the fast-growing solar panel cover industry concurrent with more limited supply potential due to the relative uniqueness of silica sand orebodies that can achieve low iron end product using simple

gravity and magnetic separation techniques".

This announcement has been approved for release by the Board of Perpetual.

personalFor enquiries regarding this release please contact: Mr. Nicholas Katris

Company Secretary +61 433 180 967

For

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About Perpetual

Perpetual is a focused explorer of silica sands, aiming to produce high purity silica for export to the high onlygrowth Asian markets.

Perpetual's flagship asset, the Beharra Project (Beharra) is located 300km north of Perth and is 96km south of the port town of Geraldton in Western Australia. Access to the Project from Geraldton (to the north) and Perth (to the South) is via the sealed Brand Highway, thence approximately 8.5km east on the Mt Adams unsealed road providing access to the centre of the tenure.

The port of Geraldton is an established bulk material handling facility and is currently utilised for the xport of bulk materials, minerals, grain and concentrates. Commodities currently exported via Geraldton Port include grains, copper concentrates, zinc concentrates, nickel concentrates, mineral

sands, talc, and iron ore.

Geraldton Port - Operated by Mid-West Port Authority

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Beharra comprises a granted mining lease, M70/1406, covering an effective area of 10.4km2, and a granted exploration license, E70/5221, covering an effective land area of 56.8km2. Extensive heavy mineral sands mining occurs to the south of Beharra, lime sands mining to the west and natural gas

onlyproduction to the south of the project area.

Auger and air core drilling has confirmed the presence of extensive, high purity silica sands, with a maiden Mineral Resource Estimate completed in July 2020. A detailed Pre-Feasibility Study demonstrating compelling project economics was for Beharra was released to the ASX in March 2021, along with a Maiden Ore Reserve.

useSilica Sands Market

Silica sands have an extensive range of uses, with lower purity (<99.5% SiO2) and lower priced applications including construction sand, proppant sand used in well fracturing, and foundry sand. With increasing purity (>99.5% SiO2) and price, uses include glass making including ultra-clear glass, with a main determinant of the sand's suitability for specific applications and pricing being the level of the key impurity iron oxide (Fe2O3). Significant expansion of solar PV cell manufacturing capacity globally is

driving demand for silica sand with Fe O content of <200ppm and lower, which is a key focus market

personalfor Beharra.2 3

ForPerpetual is targeting the high growth Asia Pacific silica sand markets, where independent market assessments have calculated a 40mtpa incremental market growth opportunity through to 2026.

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