Woomera Mining : Wyloo Dome Farm-in Targets Gold Potential

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11 March 2022

ASX ANNOUNCEMENT

Wyloo Dome Farm-in Targets Gold

Potential

Highlights

• Woomera has entered into an Exploration Farm-in and Joint Venture Agreement (FIJVA) with Nanjilgardy Resources over the Wyloo Dome Project
• Wyloo Dome is located between the Paulsens and Mt Olympus gold mines in the Ashburton region of WA
• Woomera can earn a 60% interest in the project by funding up to $4 million in exploration within three years
• The project covers over 40km strike of the highly prospective Mt McGraths Formation which is the favoured host rock for gold mineralisation at Mt Olympus
• Immediate drill targets include the Golden Marra Mamba prospect where historical exploration has returned high grade rock chips up to 11.7 g/t Au t

Woomera Mining Limited (ASX: WML) ("Woomera", "the Company") is pleased to announce that it has entered into an Exploration Farm-in and Joint Venture Agreement (FIJVA) with privately owned Nanjilgardy Resources over the Wyloo Dome Gold Project in Western Australia's Ashburton region.

Under the terms of the agreement, Woomera can earn a 60% interest in the Project by funding up to $4 million of exploration within three years. Upon Woomera earning 60%, Nanjilgardy has the one- off option to contribute its 40% or revert to a free-carried 20% interest until a Decision to Mine. The full terms of the FIJVA are set out further down in this announcement.

The Wyloo Dome Project is located 1,000km north of Perth and is accessed via the sealed Nanutarra Road, from the township of Paraburdoo in Western Australia (Figure 1). The tenements lie between Northern Star Resources' Paulsens gold mine (1.2Moz historical gold endowment) and Kalamazoo Resources' Mt Olympus gold project (1.6Moz gold Mineral Resource - KZR website).

Woomera believes there is compelling evidence for deeper buried mineralisation between the two plus-million ounce gold deposits in the Ashburton and notes strong comparisons between the geology of the region and that of Nevada's Carlin Trend, which hosts multiple multi-million ounce gold deposits.

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Figure 1: Location of the Wyloo Dome FIJVA Project - Ashburton region Western Australia

Wyloo Dome Geology and Prospects

The geology of the project comprises Duck Creek Dolomite with lesser exposures of the Mt McGraths Formation which hosts the gold mineralisation at Mt Olympus. Unlike the gold deposits around Kalgoorlie, the Ashburton region has greater affinity to the giant multi-million ounce gold deposits found in Nevada, USA.

Woomera believes there is compelling evidence for deeper buried gold mineralisation in the Ashburton. A regional airborne electromagnetic (AEM) survey commissioned by Geoscience Australia (GA) in 2013 identifed that the Mt McGraths Formation is conductive providing a direct mapping tool to identify the favourable stratigraphy (Figures 3+4).

At the New Morning prospect (Figure 3), an untested blind AEM conductor lies adjacent to the historical drilling which returned encouraging (near miss) intersections up to 16m at 0.68 g/t Au (1).

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Figure 2: Wyloo Dome FIJVA Project highlighting the Duck Creek Dolomite (DCD) in blue and Mt McGraths Fm

At the Golden Marra Mamba Prospect (Figure 4) significant rock chip anomalism (up to 11.7 g/t Au (2)) is coincident with a strong AEM conductor.

Woomera intends to refine both targets with ground EM surveys before drill testing in the second half of 2022.

Woomera's Chairman Ian Gordon commented:

"We would like to thank outgoing Managing Director Kevin Seymour for identifying and finalising such a compelling exploration opportunity for the Company to complement its Pilbara lithium exploration activities and add to the significant success the Company is enjoying with its portfolio of Ni-Cu-PGE assets, including Mt Venn in Western Australia and the Musgrave Project in South Australia."

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Key Terms of the Farm-in and Joint Venture

The key terms of the FIJVA, whereby Woomera can earn a 60% equity interest in the Wyloo Dome Project, are as follows:

• A wholly owned subsidiary of Woomera (Woomera Exploration Pty Ltd (WEX)) has the right to earn a 60% equity interest in the tenements by spending $4M over 3 years
• The FIJVA will be subject to a condition precedent that WEX becomes bound by the Aboriginal Heritage Agreement covering the area of the tenements
• Upon WEX earning its 60%, Nanjilgardy Resources Pty Ltd has the one-off election to contribute its 40% going forward, or revert to a 20% Free Carried Interest through to a Decision to Mine (DTM)
• Nanjilgardy will receive 5 million Woomera shares once CPs are met after execution of the FIJVA, with a voluntary escrow period of 12 months
• Nanjilgardy will receive a further 5 million Woomera shares upon WEX spending the $4M
• WEX agrees to a minimum work programme of $300,000 in Year 1
• WEX agrees to a minimum annual commitment of $300,000 per annum post Year 1
• If Nanjilgardy reverts to a 20% Free Carried Interest it will receive an additional 10 million Woomera shares upon any DTM. Nanjilgardy will not receive the additional Woomera shares if it elects to retain its 40% equity
• Industry standard dilution clauses will apply. If either party dilutes below 10%, they will revert to a 2% Net Smelter Return Royalty

Woomera will fund the initial expenditure on the Wyloo Dome Project out of existing cash reserves and no shareholder approval is required for the FIJVA. It is proposed that the shares to be issued to Nanjilgardy under the FIJVA will come out of the Company's existing placement capacity under the ASX Listing Rules.

Nanjilgardy and its shareholders are not related parties of the Company nor associates of any Woomera related party.

Wyloo Dome FIJVA Tenement Schedule: