Saturn Metals : Apollo Hill Gold Resource Upgraded to 1.47Moz

ASX Announcement 2 May 2022

APOLLO HILL GOLD RESOURCE UPGRADED TO 1.47MOZ

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HIGHLIGHTS

Apollo Hill Indicated and Inferred Mineral Resource of 76 Mt @ 0.60 g/t Au for 1,469,000 oz reported above a cut-off grade of 0.23 g/t Au and reported within an optimised pit shell1 (Figure 1).

• • A significant addition of 525,000 oz from the previous Mineral Resource representing an increase of 56% in ounces.

• • The robust Mineral Resource update is based on:

  • o An additional 286 reverse circulation (RC) holes totalling 31,149 m completed by Saturn within the model area since the previous Mineral Resource in early 2021.

  • o Results from a heap leach focussed metallurgical testing program which contributed to lowering the economic cut-off grade.

  • o Consideration of low-cost bulk tonnage mining and heap leach processing scenarios2.

• • Considering additional drilling, a total of 41 Mt @ 0.58 g/t Au for 760 koz is classified as Indicated Mineral Resource representing 52% of the total Mineral Resource (a 204 koz addition to the Indicated category from the previous Mineral Resource).

• • Saturn has now added 964,000 oz to the Apollo Hill Mineral Resource in just over four years from listing with 128,924 m of RC and diamond drilling. That is over 7.5 oz added for every metre drilled.

• • Saturn's updated Mineral Resource has produced an increase in tonnes, ounces, confidence and quality.

• • The Apollo Hill Resource is now of a scale to warrant full evaluation of Mining options and Saturn is well funded for the next phase of resource discovery and development with cash of $9.5M at the end of the March Quarter 2022.

• • Strong potential to continue growing the resource, with mineralisation open along strike.

• • Drilling on the 6km Apollo Hill trend is only a small part of the exploration potential on Saturn's underexplored +1,000 km2 100% owned contiguous tenement package in the Western Australian Goldfields. Drilling continues across the Company's land package with several significant intersections returned at nearby discoveries including Bob's, Calypso, Hercules and Artemis.

1 Preliminary Whittle pit optimizations using approximated regional mining and processing costs for multiple processing scenarios have been run on the resource model using a gold price of US$1,800/oz to generate a range of pit shells and cut-off grades. A pit shell for a heap leach scenario representing a revenue factor of 1.2 was selected as a nominal constraint within which to report the Apollo Hill Mineral Resource, thereby satisfying the JORC Code requirement for a Mineral Resource to have reasonable prospects for eventual economic extraction. Other relevant information is described in the JORC Code Table 1 as appropriate.

2 CPC Engineering, Perth. Preliminary Mineral Process Engineering Cost Study.

Saturn Metals Limited ABN: 43 619 488 498

9 Havelock Street, West Perth WA 6005

ASX: STN

www.saturnmetals.com.auinfo@saturnmetals.com.au

Figure 1 - Oblique view 3D Representations of the January 2021 Apollo Hill Mineral Resource model and selected pit optimisation with topography.

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Commenting on the Mineral Resource upgrade, Saturn Managing Director Ian Bamborough said:

"This resource upgrade is the fourth in as many years and is the most significant step forward for the Company and the Apollo Hill asset. Consistent improvements in the quality of the resource, its overall size, and to the Mineral Resource categories, through efficient drilling and testing continue to bode well for the advancement of our business.

The results of our 2021 metallurgical test program have demonstrated the potential to achieve higher gold recoveries and employ low unit cost bulk mining and processing methods, leading to a lower economic cut-off grade. This has enabled us to publish the Mineral Resource within a single, simple, 'Whittle' pit shell with an improved stripping ratio and deposit scalability, further enhancing the project though greater economies of scale.

Importantly, with the many inherent strengths as noted above, the Apollo Hill deposit has reached critical mass, and development and optimisation studies have commenced.

In addition, the geological understanding of the deposit is improving. The system is open along strike and the gold deposit is positioned for continued growth. Drilling continues at the deposit, camp, and district scales with two rigs on site testing for new mineralisation. In addition, the next stage of metallurgical test work has commenced towards searching for additional processing cost improvements."

Plate 1 - Aerial view of Apollo Hill and drilling (looking North); photograph taken on 16 July 2021

Saturn Metals Limited (ASX:STN) ("Saturn", "the Company") is pleased to announce that it has completed an updated Mineral Resource estimate for the Apollo Hill gold deposit at its 100%-owned Apollo Hill Gold Project near Leonora in the Western Australian Goldfields.

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The upgraded Mineral Resource (Figure 1 and 2, and Table 1) totals 76 Mt at 0.60 g/t Au for 1,469,000 oz. This is a significant increase in contained ounces from the previously published resource. It incorporates the results of a highly successful 286-hole, 31149 m extensional and in-fill drilling campaign completed within the model area after the last Mineral Resource upgrade, which was published in late January 2021, and up until the end of August 2021, when a cut-off date for drilling related resource data was applied.

Table 1 May 2022 Apollo Hill Mineral Resource - See also Table 1a for further details

Preliminary Whittle pit optimizations using approximated regional mining and processing costs for multiple processing scenarios have been run on the resource model using a gold price of US$1,800/oz to generate a range of pit shells and cut-off grades. A pit shell for a heap leach scenario representing a revenue factor of 1.2 was selected as a nominal constraint within which to report the Apollo Hill Mineral Resource, thereby satisfying the JORC Code requirement for a Mineral Resource to have reasonable prospects for eventual economic extraction. Other relevant information is described in the JORC Code Table 1 as appropriate. A nominal 0.23 g/t Au lower cut-off grade was selected for all material types. Classification is according to JORC Code Mineral Resource categories. Totals may vary due to rounded figures.

The growth in the Apollo Hill Mineral Resource over the past 15 months has been driven by:

• • The discovery of additional shallower mineralisation in the Southern Apollo Hill corridor, extensional drilling beneath the previous resource shell, and infill drilling within the previous resource shell.

• • The results of metallurgical testing on high quality diamond core which have demonstrated the clear potential to achieve low processing costs through simpler and scalable treatment options. These low unit operating costs have in turn lead to lower cut off grades which have brought additional mineralised material into the whittle pit shells, improved strip ratios and provided potential for more efficient mining considerations and economies of scale.

• • Saturn's improving knowledge of the geological controls at the deposit and refinements in the resource modelling techniques have continued to have a positive influence.

Figure 2 highlights the Mineral Resource block model grade distribution in a SW-NE cross sectional view of the 300 m wide mineralised corridor at the southern end of the deposit. In addition, the diagram shows both the January 2021 Mineral Resource Shell and the new May 2022 Mineral Resource Shell. The mineralised zones become thicker (above the revised lower cut-off grade), and the new Whittle pit shell drives deeper and takes additional mineralisation. Wider mineralised zones ultimately lead to a more efficient mining processes. Figure 2 also illustrates the pit optimisation currently bottoming at 90RL or 280 m below surface.

Importantly, a significant portion of the Apollo Hill resource - 41 Mt @ 0.58 g/t Au for 760 koz - across the shallow levels of the deposit and pit shell (Figure 3) has been declared in Indicated Mineral Resource category, representing 52% of the total Mineral Resource.

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