ChemX Materials : Jamieson Tank Manganese & HPMSM Project Update

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ASX ANNOUNCEMENT

27 July 2022

Jamieson Tank Manganese & HPMSM Project Update

ChemX Materials (ASX:CMX) (ChemX or the Company), a materials technology company focused on providing critical materials required for electrification and decarbonisation, is pleased to provide the following update on its Jamieson Tank High Purity Manganese Sulphate Monohydrate (HPMSM) Project, focusing on the exploration activities at the Company's Eyre Peninsula tenements EL6634 and EL5920 in South Australia.

The ChemX Jamieson Tank HPMSM project is poised to become a vertically integrated project, with manganese ore to be sourced from its 100% owned manganese (Mn) project on the Eyre Peninsula, South Australia. ChemX intends to process ore based on a developed metallurgical testwork program. The first stage of HPMSM testwork was very encouraging (ASX announcement: 11 May 2022), with the second stage of testwork scheduled to commence in August 2022.

The collation and consolidation of historical exploration work, together with assays received from ChemX's 2022 drilling programme, provide significant confidence in the Jamieson Tank manganese mineralisation.

Key Highlights

• Extensive historical data search completed over tenements EL6634 and EL5920, including validation and consolidation of ChemX results, previous tenement owners, and South Australian Resources Information Gateway (SARIG) digital records into a managed industry standard DataShed database.
• Included capture of an additional +200 drill holes and +2000 surface samples dating from the 1950s to 2010s targeting multi commodity exploration.
• Integrated database will underpin a thorough interrogation of all historical exploration, enabling a focused strategy towards exploring and delineating critical materials required for electrification and decarbonization.
• Area work history documented including previous exploration works for metals: base metals, gold, kaolin/alumina, diamonds, silver, graphite, iron ore, uranium and manganese. Of particular focus for the development of the HPMSM project are the Manganese prospects (Figure 1):

• Jamieson Tank (Mn)
• Bunora West (Mn)
• Hodgins (Mn)
• Windyzell (Mn)
• Francis (Fe, Mn)
• Polinga (Mn)

	ChemX Materials Ltd	08 6374 2070	ASX:CMX
L	Level 34, Central Park Tower,
[e-mail]	www.chemxmaterials.com.au
	152 St Georges Terrace, Perth WA 6000

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• Majority of historical work focused on identifying high grade direct ship ore (DSO) manganese, with drilling completed between 2008 to 2012 on Jamieson Tank prior to ChemX ownership.

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• ChemX focus on Jamieson Tank moved to High Purity Manganese Sulphate Monohydrate (HPMSM), with a completed initial Mn drilling program providing significant confidence in the Jamieson Tank manganese mineralisation. Further infill drilling is planned at Jamieson Tank.

High Purity Manganese Sulphate Monohydrate (HPMSM)

HPMSM is a critical part of many lithium battery cathode chemistries. Whilst manganese currently has a large and established global market, not all manganese is able to be efficiently upgraded to the more valuable HPMSM. ChemX has completed an initial HPMSM testwork program, designed to test the efficacy of Jamieson Tank Mn ore. First stage testwork results were very encouraging, with a second stage of HPMSM testwork scheduled to commence in August 2022.

The geological work undertaken by CSA Global Pty Ltd (CSA Global), combined with the HPMSM testwork program, has provided a solid foundation for the development of the vertically integrated HPMSM project.

Manganese Exploration Target - Eyre Peninsula, South Australia

Based on 2022 ChemX drilling and historical drilling data, mining consultant CSA Global has completed a geological re-interpretation and estimated a manganese Exploration Target for Jamieson Tank, summarised in Table 1.

Table 1: Exploration Target summary results

Exploration		Mineralisation	Tonnage (Mt)	Grade (% Mn)
Target
Low Range		Manganese	21	7.5
Upper Range		Manganese	35	10.1
	Total	21 to 35	7.5 to 10.1

*Totals may not sum correctly due to rounding.

The potential quantity and grade of the Project's manganese is conceptual in nature. There has been insufficient exploration to estimate a Mineral Resource and it is uncertain if future exploration will result in an estimation of a Mineral Resource.

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Figure 1 - Key prospects with now consolidated ChemX and SARIG Drill Hole data

Jamieson Tank Mn Exploration Target - Data, Methodology, Assumptions

The data used to estimate the Jamieson Tank Exploration Target comprised the Monax 2008 to 2012 drill data and ChemX 2022 drill data. The maiden 2022 ChemX drilling programme was aimed at improving confidence in the continuity of the previously identified manganese mineralisation at Jamieson Tank. The historical and 2022 drill data was reviewed by mining consultants CSA Global Pty Ltd (CSA Global) prior to the estimation of the Exploration Target.

Key assumptions supporting the Exploration Target include:

• Using Leapfrog Geo software, a total of 17 wireframes were created with the following assumptions:
• A grade driven manganese mineralisation interpretation was completed based on moderate to steeply east dipping mineralisation trends,
• A minimum of two metres (two by one metre samples) were used to define the wireframes

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• The drill hole collar RL in the north was approximately 270RL with the model limit 170RL therefore a total depth extent of 100m was applied.

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• The drill hole collar RL in the south was approximately 250RL with the model limit 170RL therefore a total depth extent of 80m was applied.
• The drill spacing is typically approximately 20m to 25m spaced holes on approximately 200m spaced sections.
• Total of 208 drillholes for a total of 11,276.5m used including 62 RC holes for 3,529 m; 117 RAB holes for 6,491 m; 29 AC holes for 1,256.5m. Not all drillholes were used in the determination of the Exploration Target.
• Several drillholes ended in manganese mineralisation.
• Mineralisation continuity on sections (across strike) is poor given the limited drilling down dip to define each wireframe. Additional drilling required as infill and also down dip. The extrapolation of wireframes along strike between the 200m spaced sections is ambiguous and requires infill drilling.
• A barren cover sequence was defined that includes sand, calcrete, and laterite.
• Density assumed to be 1.9 t/m3
• Oxide domains were not considered.
• Wireframes were extrapolated one drill spacing along strike where open, or half section spacing between where mineralisation appears to diminish or the extrapolation was not possible.
• An approximate cut-off of 6% Mn was used to interpreted mineralisation along with logged lithology.
• Tonnage ranges for the Exploration Target were taken as the Leapfrog wireframe Volume x Density (1.9 t/m3) +/- 25% for the Upper and Lower Ranges.
• Grade ranges for the Exploration Target were taken as the mean of the raw sample data for the Lower Range, and the 75th percentile for the Upper Range. Grades are length weighted.

Significant manganese drill intercepts and assays from the ChemX 2022 work programme were previously reported to the market in the ASX Release dated 23 June 2022.

Manganese drill intercepts form the representative schematic section Figure 3 and Figure 4 are included as Appendix 4.

Table 2 below outlines the results of the Exploration Target (as previously displayed above in Table 1).

Table 2: Exploration Target summary results

Exploration	Mineralisation	Tonnage (Mt)	Grade (% Mn)
Target
Low Range	Manganese	21	7.5
Upper Range	Manganese	35	10.1
Total	21 to 35	7.5 to 10.1

*Totals may not sum correctly due to rounding.

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Geological Risks

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The main geological risks include the poor mineralisation continuity on sections (across strike) given the limited drilling down dip to define each wireframe. Other risks include the absence of QAQC practices and the use of an assumed density in lieu of a measured density.

Recommended Work Programme

To mitigate the geological risks and test the validity of the Exploration Target, ChemX intends to undertake an infill drilling programme adopting all appropriate industry standard JORC compliance practices. These include but are not limited to, appropriate geological logging, data collection, assaying, survey, downhole density, QAQC practices, data management and Competent Person signoff of.

A drill hole and interpreted manganese mineralisation outline plan is included as Figure 1. Schematic representative cross sections are included as Figure 3 and Figure 4.

A summary of sampling techniques and data, estimation and reporting methodologies which support the Exploration Target is contained in JORC Table 1 which is included as Appendix 1 to this ASX release.

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