Critical Resources : Mavis Lake Lithium Project receives Drilling Approvals

06 April 2022

Mavis Lake Lithium Project Receives Drilling Approvals, Work to Commence Imminently

For personal use only

Critical Resources Limited (ASX:CRR) ("Critical Resources" or the "Company"), is pleased to advise that it has received approval for drilling at its 100% owned Mavis Lake Lithium Project in Ontario, Canada.

Highlights

•  Approval has been received for a 5,000m diamond drilling program at CRR's Mavis Lake Lithium Project

•  First stage program comprises 49 holes

•  1Previous drill programs have yielded high-grade Li2O intercepts including

  • o 55.25m at 1.04% Li2O from 80.75m in drill hole MF18-53, and

  • o 26.30m at 1.70% Li2O from 111.9m inc. 7.70m at 2.97% Li2O from 130.5m in drill hole MF17‐491

•  Program will begin mid-April with mobilisation and preparation already underway

•  Local drilling company, Cyr Drilling appointed as drilling contractor

•  Previous exploration results demonstrate excellent potential for resource definition and expansion

•  Additional drill programs and further exploration is already being planned

•  Ontario's lithium industry undergoing significant advancement with planned construction of lithium refineries and battery manufacturing facilities within close proximity to Mavis Lake

The Company is pleased to announce approval from the Ministry of Northern Development and Mines ("MNDM") in Ontario, Canada for its inaugural drill program of 5,000m at its 100% owned Mavis Lake Lithium Project.

Critical Resources Managing Director Alex Biggs said: "It is very pleasing to be able to announce the start of our drilling campaign at Mavis Lake. This approval signifies the beginning of the Company's exploration strategy within Ontario, a key critical minerals jurisdiction. With strong previous results we are excited to unlock the potential that Mavis Lake may host. We believe that our asset base in Canada and our exploration strategy in country will position the company as a key player in Ontario's lithium sector".

1The reported intersections are down hole measurements and are not necessarily true width

Critical Resources Ltd | Level 11, 40 The Esplanade, Perth 6000 | P: [phone] | web:criticalresources.com.au

Email:[e-mail]| ABN 12 145 184 667 | ASX:CRR

Mavis Lake Project Description

For personal use only

The Mavis Lake Lithium Project is 19 kilometres east of the town of Dryden, Ontario. The Project is in close vicinity to the Trans-Canada highway and railway major transportation arteries linking larger cities such as Thunder Bay, Ontario, to the southeast and Winnipeg, Manitoba, to the west. The region boasts excellent infrastructure with hydro-power located a few kilometres to the south-west of the project. The region is a well-established lithium province with multiple projects located within the vicinity.

Previous drill programs have yielded high-grade Li2O intercepts including:

•  55.25m at 1.04% Li2O from 80.75m in drill hole MF18-53 and

•  26.30m at 1.70% Li2O from 111.9m inc. 7.70m at 2.97% Li2O from 130.5m in drill hole MF17‐491.

These results present significant exploration potential, a summary of previous results can be seen in ASX Announcement 25 October 2021. A future work program has been determined and is outlined in detail in ASX announcement 13 Dec 2021.

Figure 1: Sample of Mavis Lake intersections from 2017 and 2018 drilling campaign

Critical Resources Ltd | Level 11, 40 The Esplanade, Perth 6000 | P: [phone] | web:criticalresources.com.au

Email:[e-mail]| ABN 12 145 184 667 | ASX:CRR

Figure 2: Mavis Lake project location

For personal use only

Drilling - Mavis Lake

The planned drilling program at Mavis Lake is set to comprise 49 holes for a total of 5,000m. Drill locations are shown in Figure 3.

Drilling on the property has occurred intermittently since 1956. Work will be focused on the southern pegmatite outcrop (Pegmatite 6) with the remainder taking place on the northern outcrops (Pegmatite 17 and 18). By drilling validation holes, infill holes and extensional holes, the Company will be advancing its strategy of delineating a JORC compliant Mineral Resource.

Critical Resources Ltd | Level 11, 40 The Esplanade, Perth 6000 | P: [phone] | web:criticalresources.com.au

Email:[e-mail]| ABN 12 145 184 667 | ASX:CRR

Figure 3: Mavis Lake drill locations

For personal use only

Pegmatite 18

Pegmatite 17

Pegmatite 6

Deposit Type and Exploration Thesis

Previous exploration campaigns at Mavis Lake have confirmed the presence of lithium bearing pegmatites.

The pegmatite occurrences at Mavis Lake are found within the correct zonation for lithium enrichment from the Ghost Lake Batholith, a fertile granite intrusion. The zonation of pegmatite occurrences can be seen in Figure 4.

Critical Resources Ltd | Level 11, 40 The Esplanade, Perth 6000 | P: [phone] | web:criticalresources.com.au

Email:[e-mail]| ABN 12 145 184 667 | ASX:CRR

Figure 4: Regional Zonation of Mavis Lake Pegmatite group

For personal use only

Sources: Demmeier and Mercier (2011), modified from Breaks and James (1991)

The recently conducted airborne survey (see ASX announcement 01 February 2022) demonstrated the potential continuity of geological trends between Pegmatite 6 and Pegmatite 18. This potential continuity represents new areas of interest for the company that will be investigated via surface mapping and sampling with the aim of identifying new drill targets.

The Lithium Industry in Ontario

Ontario's First-Ever Critical Mineral Strategy

In March of 2022 the government of Ontario announced their first-ever critical minerals strategy. The strategy aims to secure Ontario's position as a global leader of responsibly sourced critical minerals. To achieve this, collaboration is dependent between government, industry, Indigenous peoples, communities, and other stakeholders. Working together, this strategy will build a stronger, more resilient economy and revitalise local communities.

The strategy is comprised of six pillars, or areas of government action, which will solidify Ontario's position as a global leader of responsibly sourced critical minerals. The pillars are; Enhancing geoscience information and supporting critical minerals exploration, Growing Domestic processing and creating resilient supply chains, Improving Ontario's regulatory framework, Investing in innovation, research, and development, Building economic development opportunities with Indigenous partners, and Growing labour supply and developing a skilled labour force.

Critical Resources Ltd | Level 11, 40 The Esplanade, Perth 6000 | P: [phone] | web:criticalresources.com.au

Email:[e-mail]| ABN 12 145 184 667 | ASX:CRR