Centaurus Metals : Quarterly Report - March 2022

Developing a globally significant nickel project for a clean energy future

MARCH 2022 QUARTERLY ACTIVITIES REPORT

Exceptional new drilling results at Jaguar highlight strong growth potential, with Definitive Feasibility Study, and permitting advancing rapidly; Jaguar selected as a Strategic Minerals Project by the Brazilian Government; $75M capital raising sets strong foundation for Centaurus' next chapter of growth

JAGUAR NICKEL SULPHIDE PROJECT

29 April 2022

•  Step-out, extensional and in-fill drilling at Jaguar South (JS), Jaguar West (JW), Jaguar North-East (JNE) and Onça Preta (OP) continues to deliver strong, consistent results with new assay results including:

  • • 40.0m at 1.04% Ni from 74.0m; incl. 6.5m at 2.04% Ni and 5.0m at 2.13% Ni (JW)

  • • 37.3m at 1.11% Ni, from 134.5m; incl. 6.0m at 2.44% Ni (JW)

  • • 14.0m at 2.07% Ni from 101.0m; incl. 5.5m at 3.88% Ni (JS)

  • • 23.0m at 1.17% Ni from 283.0m, incl. 8.0m at 2.01% Ni (OP)

  • • 14.4m at 1.50% Ni, from 502.6m, incl. 4.4m at 3.41% Ni (JS)

  • • 8.0m at 5.38% Ni from 442.0m (JS)

  • • 30.7m at 1.00% Ni from 446.9m; incl. 7.1m at 1.24% Ni and 4.4m at 2.16% Ni (OP)

  • • 14.3m at 1.29% Ni from 426.0m, incl. 5.6m at 2.17% Ni (OP)

  • • 15.8m at 1.05% Ni from 426.0m, incl. 6.8m at 1.40% Ni (OP)

  • • 15.7m at 1.00% Ni, from 61.0m, incl. 6.7m at 2.01% Ni (JNE)

  • • 38.5m at 1.14% Ni from 50.5m. incl. 10.4m at 1.64% Ni (JC)

  • • 41.8m at 0.96% Ni from 36.8m, incl. 8.1m at 2.15% Ni and 6.0m at 1.12% Ni (JC)

  • • 16.0m at 1.50% Ni from 19.0m, incl. 5.7m at 2.19% Ni (JS)

  • • 16.7m at 1.78% Ni from 57.5m, incl. 3.2m at 4.00% Ni (JS)

  • • 6.6m at 1.99% Ni from 73.5m, incl. 2.8m at 3.28% Ni (JC)

•  Jaguar selected as a Strategic Minerals Project by the Brazilian Federal Government, recognising Jaguar's status as a globally significant, long-life green nickel sulphide project.

•  Nickel Sulphate Definitive Feasibility Study (DFS) advancing on multiple fronts:

  • • Industry-leading engineering firm Ausenco appointed as Lead Engineer to deliver both the process and non-process plant infrastructure components of the Jaguar Definitive Feasibility Study.

  • • Update of the open-pit and underground optimisations and production profile trade-off studies underway.

•  15 rigs currently on site (13 diamond and 2 RC) drilling double shift, with the drilling focused on upgrading the maximum amount of the Mineral Resource Estimate (MRE) into the Measured and Indicated categories.

CORPORATE  $75M institutional placement completed to drive continued growth and development of the Jaguar Project.  Cash at 31 March 2022 of $70 million.

Australian Office	Brazilian Office	ASX: CTM
Centaurus Metals Limited	Centaurus Brasil Mineração Ltda	ACN 009 468 099
Level 2, 1 Ord St	Avenida Barão Homem de Melo, 4391	[e-mail]
West Perth WA 6005	Salas 606 e 607 - Estoril	T: [phone]
AUSTRALIA	CEP: 30.494.275, Belo Horizonte MG
BRAZIL

JAGUAR NICKEL PROJECT

The Jaguar Nickel Sulphide Project, located in the world-class Carajás Mineral Province of northern Brazil (Figure 1), was acquired from global mining giant, Vale S.A. ("Vale") in April 2020.

The Company delivered a positive Value-Added Scoping Study in May 2021 confirming strong technical parameters and outstanding financial returns from the production of nickel sulphate from a 13-year open pit and underground mining operation. The production of nickel sulphate is proposed to be delivered by a conventional nickel flotation plant, followed by a Pressure Oxidation circuit to further value-add the nickel concentrate produced in the flotation plant to produce +20,000 tonne of nickel per annum1 over the initial 13-year mine life.

Following the robust and compelling economics seen in the Jaguar Value-Add Scoping Study, the Company elected to move straight to a Definitive Feasibility Study (DFS) on the Project focused on the production of a nickel sulphate product.

Centaurus is already well advanced on many of the key components of the proposed project development, positioning the Company to complete the DFS by Q4 2022.

At the end of 2021, Centaurus updated its Mineral Resource Estimate (MRE) for the Jaguar Project to 80.6Mt @ 0.91% Ni for 730,700t of contained nickel, with 54 per cent of the MRE in the higher-confidence Indicated Resource category (43.4Mt grading 0.92% Ni for 397,000 tonnes of contained nickel). A further MRE update is planned for the end of Q3 2022, which will be the Resource used for completion of the DFS and the conversion of Resource to Reserve.

Through the development of the Jaguar Project, Centaurus' goal is to become a new-generation nickel sulphide mining company in Brazil, capable of delivering more than 20,000 tonnes per annum of Class-1 nickel to global markets over the long term, and to do so in a sustainable and responsible manner that ensures the Company meets the highest possible ESG (Environmental, Social and Governance) standards.

Figure 1: Jaguar Nickel Sulphide Project Location Map

1 Refer to the Value-Add Scoping Study released to the market on 31 May 2021 for full details of the Production Target and the material assumptions underlying the Study. All the material assumptions underpinning the Production Target continue to apply and have not materially changed.

JAGUAR SELECTED AS A STRATEGIC MINERALS PROJECT

The Jaguar Nickel Sulphide Project was selected during the Quarter as a Strategic Minerals Project by the Brazilian Federal Government.

The Strategic Minerals Policy is part of the Investment Partnership Program - PPI (Programa de Parcerias de Investimento), a new Brazil governmental initiative designed to support companies while developing their projects across the country. The PPI program supports projects that are identified as strategic mineral projects for Brazil.

According to the Ministry of Mines and Energy, the Policy acknowledges a strategic priority dimension to the projects carefully selected by the Inter-ministerial Committee of Analysis of Strategic Minerals Projects - CTAPME, providing the titleholder with specialised governmental support for the development of their projects.

CTAPME has members from several governmental agencies, such as the Ministry of Mines and Energy, the Science, Technology and Innovation Ministry and the Special Secretariat of Strategic Affairs of the Presidency. The goal is to join governmental and private forces towards a more effective development of the country's strategic projects.

This governmental initiative is an important step to encourage mining projects that are significant for Brazil's growth and to provide project proponents with tailor-made assistance to navigate the steps required towards implementation and development of their ventures in an environmentally sustainable manner.

DRILLING & EXPLORATION PROGRAMS

Resource in-fill, extensional and step-out drilling continued at the Jaguar Project throughout the reporting period, with the drilling results to feed into the next MRE update scheduled for the end of Q3 2022.

Highlights from the drilling results reported during the March Quarter were provided in the Company's ASX Announcements dated 27 January and 9 March 2022. There are currently 15 rigs on site (13 diamond and 2 RC) drilling double-shift with the drilling currently focused on upgrading the maximum amount of MRE into the Measured and Indicated categories.

Jaguar South

The Jaguar South Deposit is the largest deposit at the Jaguar Project, hosting an MRE of 27.6Mt at 0.93% Ni for more than 257kt of contained nickel, including an Indicated component of 13.9Mt at 1.01% Ni for 140kt of contained nickel. The base of the December 2021 MRE continues to be constrained by the depth of drilling and ongoing step-out drilling continues to confirm that the mineralisation remains open at depth and along the +800m strike in both directions.

The current base of the deposit has now been extended well below the base of the underground operations identified in the May 2021 Jaguar Project Scoping Study, which was already restricted by the base of the March 2021 MRE. Any new resource tonnes generated by step-out drilling are expected to contribute to the underground operations as part of the DFS.

Ongoing step-out drilling has continued below previously defined resource limits to test new DHEM conductors and down-dip extensions of the high-grade mineralisation within the main mineralised zones (Figure 2).

Drilling on Section 478390mE, one of the easternmost sections at Jaguar South, has intersected 9.9m at 1.22% Ni from 420m and 8.0m at 5.38% Ni from 442m in drill-hole JAG-DD-21-233. This intersection is over 100m below the previous deepest drilling on that section (Figure 2) and mineralisation remains open at depth. The intersection correlates extremely well with the DHEM conductor plate.

Drill-hole JAG-DD-21-223, the deepest intersection at Jaguar South, is located 90m west of JAG-DD-21-233 and this hole also intersected mineralisation more than 100m below the previous deepest drilling, returning 14.4m at 1.50% Ni from 502.6m, including 4.4m at 3.41% Ni (Figure 2).

Figure 2 - The Jaguar South Deposit: Cross-Sections 478300mE (left) and 478390 (right) showing existing drilling, DHEM conductor plates in dark blue and FLEM conductor plates in light blue.

These intersections indicate that the high-grade mineralisation remains open down-dip and appears to be plunging off to the south-east on sections that are still to be tested at these depths. Importantly, a number of recently defined DHEM conductor plates, which are indicative of semi-massive and massive sulphides, continue to show that the mineralisation extends to at least 600m below surface (Figure 2).

In parallel to the step-out drilling, the Company is focused on resource development in-fill drilling to bring all potential mine inventory into the Indicated and Measured resource categories ahead of the next resource upgrade, scheduled for Q3 2022. In-fill drilling has been designed to upgrade all resource classifications within a large US$22,000/t pit shell limit into the Indicated category. This upgrade in resource category is important as it will underpin the maiden Ore Reserve estimate.

In-fill drilling to date has been successful in confirming the December 2021 Mineral Resource model. Drill-hole JAG-DD-21-240 is a good example of this, with the hole returning intersections of 16.0m at 1.50% Ni and 16.7m at 1.78% Ni within the current Resource interpretation (Figure 2). Highlights of new assay results from step-out and in-fill drilling at the Jaguar South Deposit include the following down-hole intervals:

Hole JAG-DD-21-196

•  14.0m at 2.07% Ni, 0.01% Zn, 0.21% Cu and 0.05% Co from 101.0m; including

  • o 5.5m at 3.88% Ni, 0.01% Zn, 0.29% Cu and 0.09% Co from 105.0m

Hole JAG-DD-21-204

•  13.0m at 1.02% Ni, 0.01% Zn, 0.04% Cu and 0.01% Co from 95.0m

•  4.5m at 1.11% Ni, 0.02% Zn, 0.09% Cu and 0.03% Co from 161.6m

•  7.1m at 1.46% Ni, 0.01% Zn, 0.04% Cu and 0.03% Co from 379.9m, including

  • o 4.0m at 2.13% Ni, 0.01% Zn, 0.05% Cu and 0.05% Co from 382.0m

•  5.0m at 0.74% Ni, 0.01% Zn, 0.03% Cu and 0.01% Co from 461.4m

Hole JAG-DD-21-223

•  27.0m at 0.43% Ni, 0.01% Zn, 0.02% Cu and 0.01% Co from 294.0m; including

  • o 3.0m at 1.01% Ni, 0.01% Zn, 0.03% Cu and 0.02% Co from 303.5m

•  14.4m at 1.50% Ni, 0.15% Zn, 0.06% Cu and 0.04% Co from 502.6m; including

  • o 4.4m at 3.41% Ni, 0.06% Zn, 0.13% Cu and 0.08% Co from 507.0m

•  7.9m at 0.40% Ni, 0.05% Zn, 0.03% Cu and 0.01% Co from 549.8m

Hole JAG-DD-21-233

•  16.1m at 0.79% Ni, 0.11% Zn, 0.06% Cu and 0.02% Co from 245.9m

•  7.7m at 0.61% Ni, 0.20% Zn, 0.04% Cu and 0.02% Co from 267.0m

•  3.0m at 2.50% Ni, 0.07% Zn, 0.14% Cu and 0.07% Co from 342.5m

•  9.9m at 1.22% Ni, 0.06% Zn, 0.04% Cu and 0.03% Co from 420.2m

•  8.0m at 5.38% Ni, 0.02% Zn, 0.17% Cu and 0.10% Co from 442.0m

Hole JAG-DD-21-234

•  3.0m at 1.91% Ni, 0.02% Zn, 0.30% Cu and 0.06% Co from 47.5m

•  3.5m at 0.73% Ni, 0.01% Zn, 0.15% Cu and 0.02% Co from 82.5m

•  5.6m at 1.74% Ni, 0.01% Zn, 0.29% Cu and 0.03% Co from 102.2m

Hole JAG-DD-21-240

•  16.0m at 1.50% Ni, 0.01% Zn, 0.10% Cu and 0.04% Co from 19.0m; including

  • o 5.7m at 2.19% Ni, 0.02% Zn, 0.13% Cu and 0.07% Co from 28.0m

•  16.7m at 1.78% Ni, 0.02% Zn, 0.14% Cu and 0.05% Co from 57.5m; including

  • o 3.2m at 4.00% Ni, 0.01% Zn, 0.29% Cu and 0.09% Co from 71.0m

•  7.4m at 0.85% Ni, 0.02% Zn, 0.09% Cu and 0.04% Co from 224.7m

Hole JAG-DD-21-245

•  2.5m at 2.71% Ni, 0.02% Zn, 0.33% Cu and 0.03% Co from 98.5m

•  5.5m at 0.88% Ni, 0.01% Zn, 0.05% Cu and 0.03% Co from 120.5m

Hole JAG-DD-21-251

•  29.5m at 0.99% Ni, 0.01% Zn, 0.14% Cu and 0.03% Co from 170.0m; including

  • o 3.0m at 1.88% Ni, 0.02% Zn, 0.25% Cu and 0.07% Co from 176.0m; and

  • o 2.0m at 2.47% Ni, 0.02% Zn, 0.27% Cu and 0.11% Co from 197.5m

Step-out, extensional and in-fill drilling at Jaguar South consistently intersected the mineralised domains in line with the EM conductor plates, current geological model interpretations and the developing structural model.

This consistency strongly supports the deeper drilling that is currently underway to identify additional Resource tonnes as well as upgrade existing underground Resources into the higher-confidence Resource categories required for future Ore Reserve Estimation and DFS work.

Onça Preta

The December 2021 Mineral Resource Estimate (MRE) expanded the Onça Preta Deposit to 5.2Mt at 1.52% Ni for more than 78kt of contained nickel, part of the overall Jaguar Project MRE.