Armada Metals : Commencement of Diamond Drilling at Nyanga Project

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8th March 2022

ASX Limited- Company Announcements Platform

ARMADA METALS LIMITED (ASX: AMM)

Commencement of Diamond Drilling at The Nyanga Project in Gabon

Highlights:

• Diamond drilling program, consisting of up to 3,000 metres, has commenced over Armada's highest priority Ni-Cu targets along the Libonga-Matchiti Trend (LMT) at the Nyanga Project, in Southern Gabon.
• Armada, together with drilling contractor Boart Longyear, have mobilised two custom-built lightweight diamond drill rigs from Canada to the first drill target, Libonga North.
• With Permit G5-555 recently granted (see ASX announcement on 2 March 2022), the initial drill program will now include the highest ranked target, Matchiti Central, which is situated within the renewed permit, along the LMT.
• The Phase 1 drilling program is scheduled to take up to three months to complete.

Armada Metals Limited (ACN 649 292 080) (Armada, AMM, or Company) is pleased to announce the commencement of its first drill program at the Nyanga Project, Gabon (Fig. 1.), following successful mobilisation of two custom-built lightweight drill rigs to the first target sites. Phase 1 drilling will consist of up to 3,000m of diamond drilling along the high-priorityLibonga-Matchiti Trend (LMT), drilling previously untested magmatic Ni-Cu targets ('LMT') (Fig. 2). Diamond drilling will be completed by Boart Longyear and is expected to take up to three months to complete.

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Figure 1: Custom-built Zinex A5 diamond drill rig set-up at the first drill hole site at Libonga North. Source: AMM.

Armada's Managing Director Dr Ross McGowan commented:

"Since listing on the ASX in December 2021, the Company has made rapid progress on multiple fronts, with significant effort to secure contractors with newly-built drill rigs and mobilise within a short space of time in challenging global circumstances. With field teams on site since December, drill rigs have now been successfully mobilised and transported to the first drill positions where we have now begun our phase 1 drilling along the highly prospective LMT and into this potential new magmatic mineralising system.

"Today is an exciting moment for the Company as we launch this first diamond drilling campaign, implemented by our experienced operational team. The Company looks forward to providing shareholders with updates on our drilling results as these programs are executed."

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Phase 1 Nyanga Project Diamond Drilling Program

The program is designed to test high-priority electromagnetic conductors, identified by Armada (Figs.

2 and 3), positioned along the 25-kilometer-long prospective strike of the Libonga-Matchiti Trend (LMT).

Diamond drilling (DD) programs will include appropriate sampling and assaying techniques on diamond drill core with multi-element assay data, and the collection of lithological and structural data for mineralisation vectoring:

• Libonga North Target: a minimum of six (6) holes are planned between 100m and 400m depth for a total of ~1,500m of drilling. Planned hole depths are modelled from the Xcite™ HTDEM and FALCON® AGG data.
• Matchiti Central Target: a minimum of six (6) holes are planned between 100m and 400m depth for a total of ~1,500m of drilling. Planned hole depths are modelled from the Xcite™
  HTDEM and GGG data (see ASX announcement, 2 March 2022 for further details on this target).

The first two planned drill holes (LBNDD001 and LBNDD002, Fig. -4.) have been positioned at Libonga North, targeting HTDEM plates X-LBN02 and X-LBN04 (Conductor A and B - Fig. 3. and Table 1). The HTDEM plates are modelled with a shallow to moderate dip (35º and 45º respectively) to the east and very high conductivity-thicknesses (80 and 100 S/m) close to surface, coincident with disseminated sulphides mapped at surface in earlier field programs. The two plates are potentially associated with a north-south orientated, steeply dipping structure.

HTDEM: heliborne time domain electromagnetics

AGG: airborne gravity gradient

GGG: ground gravity gradient

For personal use only	Figure 2: AMM interpreted mafic-ultramafic intrusive hosted nickel-copper targets, Nyanga Project
	Datum WGS84 32S. Source: AMM

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Figure 3: Xcite™ modelled HTDEM conductors on B-FieldLate-time image, Nyanga Project

Refer to Appendix 1 - Table 1 for modelled conductor properties. Datum WGS84 32S. Source: AMM.