A Cap Energy : WILCONI PROJECT JORC RESOURCE UPDATE

(ABN 28 104 028 542)

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ASX Release

Friday 18 March 2022

ASX:ACB

WILCONI NICKEL-COBALT PROJECT JORC RESOURCE UPDATE MARCH 2022 Moving the resource from inferred to indicated category as the PFS continues

HIGHLIGHTS

• Infill drilling at Wilconi confirms Nickel - Cobalt resource of 90 million tonnes at a 0.5% Nickel cut-off grade;
• Mineral Resource estimate reports 660,000 tonnes of contained Nickel and 46,400 tonnes of contained Cobalt;
• 29 million tonnes (32%) of the Mineral Resource estimate is classified as Indicated;
• The next phase of the Wilconi work will be to move to the measured category as well as infill drill zones of higher- grade nickel and cobalt intersected in the recent programme.
• A large diameter diamond drilling programme has recently been completed, and metallurgical samples are currently being tested at Simulus Group's facility in Perth.

Following a 256 RC infill drilling program in 2021, A-Cap Energy Limited (A-Cap, the Company) has upgraded the Wilconi Ni-Co resource, with parts of the resource now reported as Indicated. Independent geological resource specialists, Mining Plus Pty Ltd (Mining Plus) were commissioned by A-Cap using historical and recent drilling data to update the Wilconi Mineral Resource estimate, which is presented in Table 1. Grade- tonnage information at various other Ni cut-off grades are shown in Table 2.

	Category			Cut-Off			Tonnes			Ni %			Co %			Nickel Metal			Cobalt Metal
			(Ni %)			(Mt)							(Tonnes)			(Tonnes)
	Indicated	0.5		29		0.80		0.063		230,000		17,900
	Inferred	0.5		62		0.70		0.046		430,000		28,500
	Total	0.5		90		0.73		0.051		660,000		46,400

Rounding may cause minor inconsistencies

Table 1 February 2022 Wilconi Nickel Cobalt Mineral Resource Estimate

	Cut-Off			Tonnes			Ni %			Co %			Nickel Metal			Cobalt Metal
	(Ni %)			(Mt)							(Tonnes)			(Tonnes)
0.5		90		0.73		0.051		660,000		46,400
0.6		70		0.78		0.055		540,000		38,200
0.7		44		0.86		0.061		380,000		27,100
0.8		25		0.94		0.069		240,000		17,400
0.9		13		1.02		0.078		130,000		10,300

Rounding may cause minor inconsistencies

Table 2 Wilconi Nickel Cobalt grade-tonnage information at various Ni cut-off grades

Figures 1 and 2 below show representative cross sections of the nickel and cobalt mineralisation zones. Location of the sections are shown in Figure 3. Details of the drill holes shown in Figures 1 and 2 are listed in Annexure A.

A-Cap Energy Limited - 52 Ord Street, West Perth WA 6005 - T: [phone] F: [phone]

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Figure 1 Cross section YY' of the Wilconi resource showing nickel and cobalt mineralision zones

A-Cap Energy Limited - 52 Ord Street, West Perth WA 6005 - T: [phone] F: [phone]

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Figure 2 Cross section XX' of the Wilconi resource showing nickel and cobalt mineralision zones

Metallurgical work on Wilconi (refer ASX announcement 23/8/19) demonstrated that the Wilconi mineralisation is suited to a number of favourable extraction possibilities, and the current metallurgical work will be aimed at optimising the most suitable treatment flowsheets ready for pilot scale work. As well as metallurgical drilling, the Company will be infill drilling to progress resources to the indicated and measured category.

The chairman of A-Cap Energy, Mr Jiandong He commented, "The recent resource work has moved a good proportion of the Wilconi resource to indicated status. Ongoing metallurgical work and infill drilling will continue to add value to this project. Along with our Company's uranium project in Botswana, ACap Energy has a strong position in future metals, with two advanced major projects in its portfolio".

MATERIAL INFORMATION SUMMARY

Pursuant to ASX Listing Rule 5.8.1 the following summary is provided of information material to understanding the Mineral Resource estimate.

GEOLOGY AND GEOLOGICAL INTERPRETATION

The Wiluna nickel-cobalt laterite deposit is located within the Archaean Norseman-Wiluna greenstone belt. The nickel-cobalt mineralisation has developed through lateritisation of the Perseverance ultramafic sequence and extends for around 20 km along strike and is up to 1,500 m wide.

The Perseverance ultramafic sequence trends NNW-SSE and dips steeply towards the east. Locally, the geology consists of a less continuous western ultramafic sequence, and a more continuous eastern ultramafic sequence (Figure 3). The eastern sequence is offset by a north-south trending fault at around 7,056,000 mN, interpreted from aeromagnetic data. Both the western and eastern sequences contain similar lithologies of olivine orthocumulate, olivine mesocumulate and minor olivine adcumulate rocks. Pyroxene cumulate and gabbro is generally located along the western margins, with olivine pyroxene cumulate found along the eastern margins. At the boundaries of the ultramafic sequence are generally intermediate and mafic volcanic rocks and dolerite.

The region is covered by a thick blanket of lateritic regolith and outcrop is sparse and the detailed geological understanding is based primarily on the extensive drilling conducted over the deposit. Nickel and cobalt mineralisation has been formed by intense weathering (lateritisation) and has concentrated in a saprolite clay layer that overlies the ultramafic rock unit. The depth to significant (>0.5% Ni) mineralisation ranges from 2 m to 60 m. The nickel mineralisation zone can be up to 30 m thick, averaging around 4 m in thickness. Detailed studies have shown that cobalt has been preferentially enriched in the upper portion of the saprolite clay layer and this zone has been modelled independently and incorporated into the updated resource estimate.

Representative cross sections through the nickel and cobalt mineralised zones are shown in Figures 1 and 2 above.

A-Cap Energy Limited - 52 Ord Street, West Perth WA 6005 - T: [phone] F: [phone]

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Figure 3: Local sub-surface geology for the Wilconi Ni-Co deposit

A-Cap Energy Limited - 52 Ord Street, West Perth WA 6005 - T: [phone] F: [phone]

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DRILLING INFORMATION

The Wilconi deposit has been explored over a period of more than 50 years by Delhi Australian Petroleum (1967 - 1968), AMAX Exploration (1971 -1973), Trig Mineral Exploration (1972), Kennecot exploration (1971

• 1972), Asarco Australia (1992), CRA Exploration (1992 - 1997), Wiluna Mines (1998), Outokumpu Mining (1998), Agincourt Resources (2005 - 2006), Independence Group and Oxiana Limited (2005 - 2009) and A- Cap Energy Limited (2019-2021). During this period 14,161 holes for a total of 520,365m have been drilled in the Wilconi district.

Pre-A-Cap drilling has been conducted at 100 m intervals along lines spaced 400 m apart along the entire strike length of the deposit. The drill lines are oriented perpendicular to the strike of the mineralisation and holes have been drilled between -60˚ and -90˚ at a high angle to the flat-lying zones of mineralisation. In 2021, A-Cap has infilled the drilling grid to a nominal 50 m by 100 m in two shallow areas of higher-grade Ni and Co mineralisation. Some 25 m spaced drilling was undertaken in the southern infill area to provide supporting information on lithology and grade continuity.

Mining Plus extracted a sub-set of 704 holes, totalling 59,272 m from the main database that were considered to be of sufficient quality to support a mineral resource estimate. Drill holes that intersected the mineralised zone used to complete the mineral resource estimate included 607 reverse circulation (RC), 51 aircore (AC) and 27 diamond drill (DD) holes drilled by AMAX (12 DD), Asarco (17 RC), CRA (9 DD & 292 RC), Oxiana (15 RC), Newmont (51 AC), Agincourt Resources (6 DD, 22 RC), and A-Cap (261 RC).

Historical collar survey methods are not recorded in the database, though locations appear to be accurate as most hole collars can still be identified in the field. Local grids were used in the early 1968-71 drilling and were not picked up by GPS. Local co-ordinates have been converted to GDA94 Zone 51 co-ordinates by a grid transformation.

Holes drilled by Wiluna Mines were surveyed downhole by a Reflex multishot instrument. Agincourt, Independence and Oxiana used an Eastman single shot down hole camera to survey the collar and base of their drill holes. A-Capused a Reflex Gyro north seeking survey tool prior to 2021, and a Reflex Depth Encoder gyroscope during the 2021 drilling campaign.

Historical and recent logging of drill chips and core is of high quality and completed by experienced field geologists and personnel.

In 2019, A-Cap drilled four RC holes that twinned historical RC holes (CRA 1995), which confirmed the original RC results.

SAMPLING AND SUB-SAMPLING

Reverse circulation drill holes were sampled and geologically logged on 0.5 m, 1 m or 2 m intervals. Independence and Oxiana used a combination of riffle splitters or spears for collecting a sub-sampleof drill chips for analysis. A-Cap rig used a rig-mounted Metzke sampling system that included a cone splitter set above a cyclone. Other companies did not record their method of sampling RC chips, however, it is expected that prevailing industry-standardpractices were employed. Diamond core sampling varied between 1 m to 4 m intervals, with selective sampling at narrower intervals to geological/mineralisation boundaries. Wiluna Mines used a diamond saw to cut core in half lengthwise for sampling. CRA recorded recovered weights of all RC samples. Recoveries were believed to be in the order of 100%.

A-Cap Energy Limited - 52 Ord Street, West Perth WA 6005 - T: [phone] F: [phone]

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