Reedy Lagoon : March 2022 Quarterly Activities and Cash Flow report

Quarterly Report for the period ended 31 March 2022

Highlights

• ❑ Final results from the Shallow Seismic Reflection (SSR) survey over the lithium brine targets at Alkali Lake North confirmed our tenure secures the full extent of the targeted brines.

• ❑ SSR results support AMT survey results and identify the basin architecture that hosts the AMT anomalies.

• ❑ Lithium Project Generation continuing.

• ❑ CSIRO presented a preliminary model for the Burracoppin magnetite deposit, with the science backing Burracoppin.

• ❑ Soil sampling for gold Burracoppin undertaken.

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CURRENT EXPLORATION ACTIVITIES

NORTH AMERICAN PROJECTS

Nevada Lithium Brine Projects

Nevada, USA

Reedy Lagoon holds two lithium brine projects: Alkali Lake North and Clayton Valley. The projects are located in large and separate ground water catchment areas in Nevada, USA.

The projects are located within 30 kilometres of the Silver Peak Lithium brine operation owned by Albemarle Corp. which is located 360 kilometres by road (US-95 route) from the Tesla Gigafactory (Lithium-ion batteries) in Reno.

Alkali Lake North Project (Nevada)

RLC 100%

Lithium 334 claims 6,415 acres (2,596 ha)

Exploration conducted during the March Quarter focussed on integrating results from the Shallow Seismic Reflection Survey (SSR) with results from the Audio Magneto-Telluric (AMT) geophysical survey that had been completed in the December Quarter (refer ASXrelease 14/10/2021)at the Alkali Lake North project.

The objective was to use the AMT electrical resistivity results to define electrically conductive brine aquifer systems in valley-fill sediments while the SSR survey was used to give information on the overall basin architecture including location and number of seismic reflectors, presence of major faults, depth to targets and nature of bounding structures to the basin.

The final report for the 2D Shallow Seismic Reflection (SSR) survey was received and processing of the data collected has enabled better resolution and more detailed interpretation of the conductors we are interested in than was available in the preliminary data (refer ASXrelease 6/01/2022).

The basement bounding the eastern side of the project is an area of interest and resolution of its position and structural features associated with it and its margin with the sediments to the west are key target areas for brine. One of the project's strongest conductors, identified in 3D-AMT data, is located in this part of the project area (referASX release 6/01/2022). The work during the Quarter also progressed drill targeting concepts for the large tubular shaped target located in the eastern side of the project (referASX release14/10/2021)and in the central part of the basin where a wide AMT anomaly coincides with SSR seismic reflectors indicative of sedimentary strata.

The flat lying reflectors (sedimentary strata) extend beyond the current 3D AMT survey coverage (within the

Company's tenure) and acquisition of additional electrical conductivity (3D AMT) data is planned to aid drill target selection for testing the extensive flat lying aquifers interpreted in the AMT and SSR data across the project area.

The information to-hand indicates that the concurrent presence of extensive AMT conductivity anomalies and shallow seismic reflectors located within a basin structure indicated in gravity data and captured within the project area are strong indicators of the presence of a substantial brine aquifer system located within the Alkali Lake North project.

Figure 1. 3D AMT Survey results superimposed on 2D SSR survey results

Clayton Valley Project (Nevada)

RLC 100%

Lithium 112 claims 2,240 acres (906 ha)No field work was conducted on the Clayton Valley project during the quarter.

During the Quarter it was determined that without access to ground beyond the claim boundaries, seismic surveys, including Shallow Seismic Reflection (SSR), as was successfully trialled at Alkali Lake North, would be difficult to carry out. Accordingly, no SSR survey is planned on the Clayton Valley project

Drill target selection will be determined on the Company's existing 3D AMT survey data for the project area.

NEW PROJECT DEVELOPMENT

Lithium

During the period desk top studies assessing potential lithium-brine projects located in North America identified areas that are being followed up.

REHABILITATION WORK - COLUMBUS SALT MARSH AREA

(Nevada)

The Columbus Salt Marsh project was divested at the end of August 2019 and areas disturbed by the

Company's prior drilling activities were contoured and seeded later that year. The rehabilitation work was inspected by the Bureau of Land Management ("BLM") in May 2020 and the reclamation obligation was

reduced from US$21,599 to US$5,429. An inspection by the BLM during the June 2021 quarter found regrowth had been set-back by drought conditions and as a consequence an inspection following spring in 2022 has been scheduled. The balance of the bond (US$5,429) will remain held by the BLM until the desired regrowth has been established.

AUSTRALIAN PROJECTS

Burracoppin Iron Project (WA)

Iron

RLC 100%

E70/4941 (area 5,854 ha)

The Burracoppin Iron project is currently focussed on establishing an Indicated Mineral Resource within the Burracoppin magnetite deposit (referASXrelease 12/02/2021). It is intended that iron concentrate mined from the deposit will be used for the production of high purity pig iron (HPPI).

The magnetite mineralisation is currently identified and partially delineated within detailed airborne magnetic data, 3 core drill holes and potentially in the CSIRO MagResource Model for Burracoppin (for details of the CSIRO collaboration refer toASX release 26/5/2021).

During the quarter the study by CSIRO on the Burracoppin deposit that was initiated in May 2021 was completed and the final report was received by the Company following the end of the quarter (refer ASX

release 29/04/2022).

The study aimed to develop a method of determining magnetite resources using petrophysically constrained magnetic modelling and has involved analysing sub-samples collected from our core from earlier drilling and analysing them to recover magnetic, density, geochemical, mineralogical and structural data. These data were used to constrain the modelling of the airborne magnetic data acquired in 2011 and reprocessed by CSIRO during the current study. The modelling of the airborne magnetic data has resulted in the generation of 3D shapes that represent potential magnetite mineralisation both in space and in content of magnetite.

The CSIRO model of the deposit incorporates complicated structure involving double plunging superimposed folding cut by numerous north to east-north-east striking faults. The CSIRO's investigations found magnetite morphology showing stratiform layering and shear related fabrics. It is thought that structure has controlled magnetite replacement but the replacement is locally stratiform. This would reduce the significance of the dip of individual structures as any dip may be only local. The CSIRO model has potential to significantly assist the Company's planned drilling and in understanding the geology of the deposit (referASX release11/01/2022). and29/04/2022).

Planned resource definition drilling was modified during the quarter to include initial holes directed to investigate the CSIRO model so that if the model is proven, subsequent holes will be guided by that model.

Heritage surveys were conducted during the period with no impediments to our planned drilling identified.

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