Eclipse Metals : Ivittuut Drill Samples Confirm High-Grade Rare Earth Results

22 November 2021

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ASX Announcement
		DRILL SAMPLES FROM ECLIPSE'S IVITTUUT PROJECT CONFIRM HIGH-
			GRADE RARE EARTH RESULTS
Highlights
use	∙ Core sample analysis has confirmed the polymetallic potential of the historic
			Ivittuut mine in Greenland with anomalous zin and tin - values up to 9.86% Zn and
			3.54% Sn and anomalous REE values.
		∙	Historical drill core samples from nearby Gronnedal-lka returned high-grade
personal		results up to 1,245 ppm Pr2O3 (praseodymium oxide) with anomalous zinc values.
∙	Further field samples received in Perth for laboratory analysis.
		∙	Drill core samples from the Ivittuut pit area returned anomalous and high zinc and
			silver values.
		∙ Maximum uranium value of 24.3ppm from all results is well below Greenland
			Government's legislated maximum of 100ppm uranium.
		∙ Eclipse is progressing petrological and mineralogical determinations as a guide
			for future exploration at Ivittuut.

Eclipse Metals Ltd (ASX: EPM) (Eclipse Metals or the Company) is pleased to announce further laboratory analyses of core samples from historical diamond drilling within exploration licence MEL2007-45 in southwestern Greenland, have returned high-grade rare earth results and confirmed the project's potential to also contain high-grade quartz, cryolite, siderite, sphalerite, cassiterite and carbonate material.

ForAnalysis by an Australian laboratory using ME-MS81h,ME-ICP61 and Zn-OG62 methods identified multi- c mmodity mineralisation within the project area. Very low uranium values ranging from 0.7 to 24.3ppm were recorded, which are well below the Greenland Government's recently legislated maximum of 100ppm.

Samples from Gronnedal-Ika and Ivittuut have returned anomalous and significant analyses for praseodymium (Pr), zinc (Zn), tin (Sn), silver (Ag) and copper (Cu) in addition to anomalous TREO values from the Ivittuut pit precinct - see summary Table A below.

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Figure 1: MEL2007-45 with location of Ivittuut Mine and Gronnedal-Ika. Inset shows location of three historic drill holes.

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	SAMPLE			Prospect			Pr2O3			TREO			Ag			Cu			Zn
	DESCRIPTION						ppm			ppm			ppm			ppm			%
	IVT	21	- 1			Gronnedal-lka	367.5		8348		<0.5		3		0.09
	IVT	21	- 2			Gronnedal-lka	567.6		11089		<0.5		<1		0.05
	IVT	21	- 3			Gronnedal-lka	928.1		22694		2.9		2		0.03
	IVT	21	- 4			Gronnedal-lka	1245.0		21483		1.7		2		0.46
	IVT	21	- 6		Ivittuut	1.9		43		<0.5		8		0.00
	IVT	21	- 8		Ivittuut	3.9		96		<0.5		6		0.01
	IVT	21	- 10			Ivittuut	2.3		207		10.6		48		0.02
	IVT 21	- 11(1)			Ivittuut	14.7		536		2.1		100		9.86%
	IVT 21	- 11(2)			Ivittuut	0.7		17		27.6		2880		0.01
	IVT	21	- 13			Ivittuut	1.0		72		0.5		31		0.00
	IVT	21	- 14			Ivittuut	1.3		77		2.5		92		0.02
	IVT	21	- 15			Ivittuut	0.3		12		0.5		32		0.77
	IVT	21	- 17			Ivittuut	0.0		1		<0.5		4		0.02
	IVT	21	- 18			Ivittuut	1.0		21		1.7		314		0.00
	IVT	21	- 21			Ivittuut	1.8		43		19.6		117		0.07
	IVT 21	-22(2)			Ivittuut	0.4		9		<0.5		8		0.10
	IVT	21	- 23			Gronnedal-lka	217.1		4951		<0.5		2		0.08

Table A. Summary of significant analysis from drill core samples

IVITTUUT SAMPLES

Both heavy and light rare earth elements were noted in assays from Ivittuut core samples; see Summary Table above. A sample from the Ivittuut pit environment returned a high-grade tin result of 3.54% Sn.

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Figure 2: Road from Gronnedal to Ivittuut mine in background.

Figure 3: Drill core sample from Ivittuut pit precinct

GRONNEDAL-IKA SAMPLES

Samples of core from three diamond holes drilled in the Gronnedal-Ika carbonatite complex in the 1940s returned very significant analyses for rare earth elements, with up to 22,695ppm total rare earth oxides (ASX announcement 15 November 2021). These holes were originally drilled to explore for deposits of magnetite (iron ore) which had developed in the contact area of later intrusive dolerite dykes.

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Figure 4: Gronnedal-Ika Sample (IVT 21 - 4) carbonatite, magnetite with assay results returning 203.8 ppm Eu2O3 and

1,245 ppm Pr2O3 from 2.8m

Magnetite intersections were shown to be narrow and intermittent but recent sampling has returned very personalsignificant analyses of light and heavy rare earth elements (ASX Announcement 17 November 2021)

Historical sampling results also indicate very high europium values compared to other REE deposits. Europium has been recognised throughout the carbonatite intrusion at several times greater concentration than average for rocks elsewhere in this part of Greenland and many times that normally expected in carbonatites. Europium is in extremely short supply around the world.

Overall, the results confirm there is excellent REE potential at the surface in Gronnedal-lka. The REE prospectivity fits well with Eclipse's mission to excel in the commercialisation of metals and minerals demanded in the production of green energy and required by industry to reduce pollution. Historical exploration records indicate the potential for rapid development and production of cryolite, fluorite, quartz, REE, carbonate, zinc, tin and siderite.

GRONNEDAL-IKA CARBONATITE COMPLEX

The Gronnedal-Ika carbonatite / nepheline syenite complex and later dolerite dykes are intruded into crystalline Archean basement rocks centred on 48º03'W: 61°14'N, about 10km to the northeast from Ivittuut.

ForThe drill holes examined in the first visit were originally sited to obtain samples of nepheline syenite for ceramic manufacture but intersected contact areas of later olivine dolerite dykes carrying magnetite.

REE occurs throughout the carbonatite complex, especially in late-stage veins where it occurs as various strontium REE carbonate minerals.

Minerals identified within the complex include apatite, monazite, stronianite and synchysite which host LREE, as well as zircon and monazite which host HREE (LREE = light rare-earths. HREE = heavy rare- earths).

Carbonate rock from this complex could also provide a neutralising agent for mine and process water for other operations in the region.

Analysis of geophysical data from Gronnedal-Ika carbonatite/dyke geological units has confirmed this complex to be far more extensive than previously known which is further encouragement for potential REE and sulphide mineralisation. An historical Dighem survey defined seven conductive targets which are recommended for follow up exploration and ground truthing.

Petrological and mineralogical determinations are continuing and will be used as a guide for future exploration.

RECENT EXPLORATION

A recent helicopter borne reconnaissance field program included collection of samples from the Ivittuut mine

dumps and Gronnedal-lka carbonatite intrusive outcrops. Initial XRF field testing has returned promising onlyresults for rare earth minerals (ASX Announcement 17 November 2021).

Eclipse's drill core sample analyses have provided additional significant information on the prospectivity of

both the Ivittuut mine precinct, the carbonatite occurrence and mafic dykes. Availability of an extensive

library of core from this project area will save considerable costs in providing a guide to future drilling to explore for REE mineralisation in this prospect.

Further surface samples from Gronnedal-Ika and from the Ivittuut low-grade tailing dump have been

received in Australia for analysis for REE elements, cryolite and quartz. The Company will announce results progressively from testing in due course.

useGronnedal-Ika carbonatite and mafic dyke occurrence. Encouraging silica analyses and REE results from the Ivittuut pit precinct provide strong encouragement for future development.

This initial evaluation of drill core has provided significant additional information on the prospectivity of the

Identification of scarce heavy REE's has cemented the conclusion of the uniqueness and polymetallic nature of the Ivittuut pit precinct. These results highlight the potential for much of the mineralisation within the pit

to have economic value, thus enhancing potential economics for re-development of this mine. Future personalexploration will include evaluation of the granite and greisen wall-rocks of the pit for REE potential.

The results from Gronnedal-Ika have confirmed the potential for magnetically anomalous zones to be associated with REE mineralization, which will be used as a guide for future exploration drilling.

A priority for further examination will be splitting and analysis of samples from core drilled during the 1940s.

ABOUT THE IVITTUUT PROJECT

Ivittuut is located in southwestern Greenland and has a power station and fuel supplies to service this station and local traffic to support mineral exploration. About 5.5km to the northeast of Ivittuut, the twin settlements of Kangilinnguit and Gronnedal respectively provide a heliport and an active wharf with infrastructure.

The Gronnedal-lka carbonatite complex is less than 10km from Ivittuut and only 5km from the port of Gronnedal. This complex is also one of the 12 larger Gardar alkaline intrusions in Greenland and is recognised as one of the prime REE targets in Greenland by GEUS along with Kvanefjeld and Kringlerne (Tanbreez).

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Authorised for release by the Board
Carl Popal	Rodney Dale
Executive Chairman	Non-Executive Director

Competent Persons Statement

The information in this report / ASX release that relates to Exploration Results and Exploration Targets is based on information compiled and reviewed by Mr. Rodney Dale, Non-Executive Director of Eclipse Metals Ltd. Mr. Dale holds a Fellowship Diploma in Geology from RMIT, is a Fellow of the Australasian Institute of Mining and Metallurgy (FAusIMM) and has sufficient experience