Saturn Metals : Quarterly Activities and Appendix 5B

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ASX Announcement

31 January 2022

DECEMBER 2021 QUARTERLY ACTIVITIES REPORT

HIGHLIGHTS

Bob's Prospect - Significant Gold System Confirmed 7km East of Apollo Hill

• Significant Aircore (AC) and follow up Reverse Circulation (RC) results have confirmed a large, concealed gold system, 7km east of the 944,000 oz gold Apollo Hill Mineral Resource (35.9Mt @ 0.8g/t Au1); Figure 2.
• Results include:

1. 5m @ 6.82g/t Au from 130m - AHRC0825;

1. 5m @ 3.15g/t Au from 168m - AHRC0827; and

• 1. 32m @ 0.49g/t Au from 68m including 8m @ 1.41g/t Au from 84m - AHAC0349.
• Drilling results show improving grade vectors, which remain open.
• Intersections highlight a so far under explored 3.5km long gold system beneath relatively shallow cover (Figure 2) on the eastern side of the Apollo Hill 'Super Structure' (Figure 3).
• A 4,000m follow up RC drilling program is planned.

Other New Gold Prospects

• AC results from wide spaced regional exploration drilling, completed towards the end of the 2021 field season have also highlighted three new prospects along strike from the Apollo Hill Mineral Resource.
• Significant intersections include:

1. 13m @ 1.32g/t Au from 56m including 4m @ 4.31g/t Au from 56m - AHAC0464 at the Aquarius Prospect (Figure 5);

1. 12m @ 0.74g/t Au from 48m including 4m @ 1.36g/t Au from 56m - AHAC0444 at the Casper Prospect (Figure 5); and

• 1. 4m @ 0.47g/t Au from 44m - AHAC0477 and 8m @ 0.36g/t Au from 44m - AHRC0478 (two holes drilled 400m apart on a single regional drill line) at the Hercules Prospect (Figure 5).
• Results are located on a major geological corridor that extends from Apollo Hill, highlighting the potential for additional discovery.
• A 20,000m regional AC drilling program is underway across the greater Apollo Hill land package and assays are pending for approximately 30 holes, totalling 1,500m, completed to date.

Apollo Hill Resource Area - Resource Extension

• At Apollo Hill Main Lode, RC drilling results continued to develop the mineralisation at the northern extents of the deposit.
• Thick, shallow intersections included:

• 1. 25m @ 0.66g/t Au from 11m - AHRC0821.
• Mineralisation is an extension of the Apollo Hill hanging-wall zones and further drilling is being planned.
• A resource upgrade process is underway at Apollo Hill utilising the results of all drilling from the 2021 field season, metallurgical test work and a preliminary engineering cost study currently underway. The update is scheduled for release towards the end of the March 2022 Quarter.

1 Details of the Mineral Resource which currently stands at 35.9 Mt @ 0.8 g/t Au for 944,000 oz Au and a breakdown by category are presented in Table 1a (page 17 of this document) along with the associated Competent Persons statement and details of the ASX announcement that this information was originally published in.

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Corporate

Successful Capital Raising

• In November 2021 the company successfully completed an $8 million share placement to Australian and Overseas institutional and professional investors. The placement was strongly supported by our current major shareholders. Funds are being used to progress exploration and resource development at the Apollo Hill deposit, to deploy camp and regional scale exploration programs and will also be directed towards the West Wyalong gold joint venture in New South Wales.

Strong Cash Position

• The cash position of the Company at 31 December 2021 was A$10.038M. In addition, the Company expects to receive the balance of the November 2021 placement proceeds, totalling $1.360M (before costs), once a Foreign Investment Review Board approval process is complete in early calendar 2022.

Plate 1 - Aerial view of Apollo Hill deposit currently 3km long and up to 800m wide

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Plate 2 - Drilling - Apollo Hill Project

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Figure 1 - Resource extension drilling results and holes for which assays remain pending relative to the published resource.

1. This diagram contains exploration results and historic exploration results as originally reported in fuller context in Saturn Metals Limited's ASX Announcements as published on the Company's website. Saturn Metals Limited confirms that it is not aware of any new information or data that materially affects the information on results noted.

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