Eclipse Metals : Multi-Element Assay Results at Greeland Prospects

9 March 2022

only
	ASX Announcement
		MULTI-ELEMENT ASSAY RESULTS FURTHER DEMONSTRATE RARE EARTH AND
		POLYMETALLIC POTENTIAL AT GREENLAND PROSPECTS
	Highlights
use	∙ Highly anomalous preliminary multi-element assay results received from grab samples
		collected at the Ivigtût and Grønnedal-Ika prospects, including:
		- IVIGTÛT mine dumps - 165.00 g/t silver, 0.14% copper, 3.83% lead and 0.37% zinc.
		- GRØNNEDAL-IKA carbonatite - Up to 0.62% lanthanum, 10% cerium, >0.10% praseodymium,
personal		0.82% neodymium, 0.10% samarium, 0.10% gadolinium and 0.86% yttrium.
	- GRØNNEDAL-IKA aplite vein >0.25% niobium, 34.00g/t silver, 0.96% lead, 0.15% copper, 0.16%
rogram will be designed in time to take advantage of the northern summer season to further advance
		tin, and 4.40% fluorine.
	∙ Assessment of exploration results to date indicates two or more distinct styles of REE
		mineralisation at the Ivigtût and Grønnedal-Ika prospects, ranging from light to heavy REE.

Eclipse Metals Ltd (ASX: EPM) (Eclipse Metals or the Company) is pleased to provide the following update for its Ivigtût (also referred to as Ivittuut) rare earth element (REE), base metal and industrial mineral prospect and Grønnedal-Ika REE prospect in southwestern Greenland.

Eclipse Chairman Carl Popal commented: "Further results from Ivugtût and Grønnedal-lka highlight the polymetallic nature of these prospects, in particular the REE potential with both heavy and light REE mineralisation evident. Some initial results exceed testing limits for the analytical method used and these samples are being further analysed. When final results are received and analysed, a targeted exploration

evaluation of our projects in Greenland."

ForHighly anomalous multi-element assay results received

Interim laboratory assay results have been received for nine grab samples from Ivigtût and Grønnedal-Ika, collected during a helicopter-assisted reconnaissance program in late 2021 (see ASX release dated 17th November 2021). Many overlimit values were returned from the first analytical run which are now being further analysed by more accurate methods. These results are expected to be returned in the near future when the Brisbane laboratory is fully operational after recent flooding prevented staff access.

Samples from Grønnedal-Ika and Ivigtût returned highly anomalous total rare earth oxide (TREO) together with niobium (Nb), tungsten (W), lead (Pb), zinc (Zn) and silver (Ag) concentrations (Table 1), further confirming the polymetallic nature of the Company's Greenland project. (Refer also tables in Annexure 1)

Laboratory analyses of two fluorite samples (I21007 and I21009) and one cryolite-fluorite-siderite sample (I21012) collected from the historic Ivigtût mine dumps (Figure 1) returned1,2:

• 22.20% fluorine, 8.60 g/t silver and 0.12% copper in sample I21007; and
• 26.00% fluorine, 165.00 g/t silver, 0.14% copper, 3.83% lead and 0.37% zinc in sample I21012.

Figure 1. Image of the historic Ivigtût pit and waste dumps showing sample point.

onlyuse personalEven though overall REE concentrations in samples I21007, I21009 and I21012, collected from the Ivigtût mine

dumps are relatively low in TREO values, ranging from 2.26 to 161.44 ppm, the ratio of high demand heavy REE to light REE is considered to be very encouraging. The results in Annexure Table 1 confirm the polymetallic nature of the pit environment.

Analysis of five magnetite-limonite-bearingferro-carbonatite grab samples (G21010: G21014, G21016, G21017 and G21019) collected from the Grønnedal-Ika carbonatite complex (Figure 2) returned highly anomalous light and heavy REE assay values, including1,2:

	∙ 0.32% lanthanum, 0.83% cerium, >0.10% praseodymium, 0.43% neodymium, 0.07% samarium, 0.05%
		gadolinium and 0.06% yttrium (sample G21014).
For	∙ 0.60% lanthanum, >10.00% cerium, >0.10% praseodymium, 0.82% neodymium, >0.10% samarium,
	>0.10% gadolinium and 0.86% yttrium (sample G21016).
	fluorine.
	∙	0.27% lanthanum, 0.73% cerium, 0.10% praseodymium, 0.39% neodymium, 0.07% samarium, 0.05%

gadolinium and 0.05% yttrium (sample G21017).

A sample from a sulphide-bearing aplite (G21011) that cuts the carbonatite rocks returned:

∙ >0.25% niobium, 34.00 g/t silver, 0.96% lead, 0.15% copper, 0.16% tin, 200 ppm lithium and 4.40%

∙ Anomalous heavy REE values such as 0.02% erbium, 0.03% ytterbium and 0.09% yttrium with overall anomalous TREO of 0.30%.

Full assay results are provided in Annexure 1.

• Assay data rounded to two decimal places. See Annexure 1 for full assay results.
  2 Over-limit assay data yet to be received.

2

use only
personal	and 15th November 2021) imply that Grønnedal-Ika has the potential to contain significant REE mineralisation.
	Figure 2. Grønnedal-Ika sample locations

Discussion of REE results

Laboratory assay results from surface grab and historic drill core samples collected by the Company to date (ASX release dated 15th November 2021) as well as supplementary readings obtained with a handheld XRF (ASX release dated 17th November 2021) indicate the presence of two or more distinct styles of REE mineralisation:

1. Carbonatite-hosted REE mineralisation

The Mesoproterozoic (1,299 ± 17 Ma) Grønnedal-Ikacarbonatite-syenite complex covers a surface area of 8km × 3km and, as such, is comparable in size to other REE-bearing carbonatites such as Mountain Pass (California), Mt Weld (Australia) and Steenkampskraal (South Africa).

	The multiple significant REE results obtained by the Company to date (see ASX release dated 02nd March 2021
For	The presence of light REE mineralisation at Grønnedal-Ika is consistent with other REE-bearing carbonatite
intrusive complexes.
Preliminary sampling by the Company of historic drill core from Grønnedal-Ika returned significant TREO up to
	22.70% in sample IVT 21-3 (see ASX release dated 15th November 2021). Laboratory results and complementary
	XRF readings suggest that, in addition to light REE mineralisation, the Grønnedal-Ikacarbonatite-syenite
	complex is also - at least in part - enriched in praseodymium (Pr) and neodymium (Nd). The latter are often
	termed the 'magnet feed' rare earth elements which are critical for high-performance magnets used by the
	automotive sector and in wind turbines.

3

onlyuse personal2.

Figure 3. XRF testing large samples from Grønnedal-Ika

Other styles of REE mineralisation

Additional REE targets requiring field examination include:

1. Certain aplite and pegmatite dykes that cut the Grønnedal-Ika carbonatite complex are characterised by a combination of highly anomalous heavy REE and other metals such as tin, niobium, and thorium as exemplified by sample G21011. Further work is required to determine the volume of these aplite and pegmatite dykes and their resource potential.
2. Carbonatite and dolerite dykes at Ivigtût and Grønnedal-Ika are reported as having REE potential, which is yet to be tested.
3. The greisen that encloses the Ivigtût cryolite deposit is known to be enriched in REE, tin, tantalum, niobium, and tungsten, however, previous operators focused on cryolite only. Further work, in particular drilling, is required to better define the economic potential of this greisen.

Overall, the various styles of REE mineralisation at Grønnedal-Ika and Ivigtût, ranging from light to heavy REE, and their various respective geological host environments are testament to a complex intrusive history and multiple Forepisodes of REE enrichment. Given the focus by previous operators on only exploring and mining of the Ivigtût cryolite deposit, Eclipse Metals is the first company to test the REE and multi-element potential at both Grønnedal-

Ika and Ivigtût.

Authorised for release by the Board

Carl Popal	Oliver Kreuzer
Executive Chairman	Non-Executive Director

4

About Eclipse Metals Ltd (ASX: EPM)

Eclipse Metals Ltd is an Australian exploration company focused on exploring South-western Greenland, Northern Territory and Queensland for multi commodity mineralisation. Eclipse Metals Ltd has an impressive portfolio of assets prospective for cryolite, fluorite, siderite, quartz (high purity silica), REE, gold, platinum group metals, manganese, palladium, vanadium and uranium mineralisation. The Company's mission is to increase shareholders' wealth through capital growth and ultimately dividends. Eclipse Metals Ltd plans to achieve this goal by exploring

onlyfor and developing viable mineral deposits to generate mining or joint venture incomes.

About the Ivigtût Project

Ivigtût is located in southwestern Greenland and has a power station and fuel supplies to service this station and l cal traffic to support mineral exploration. About 5.5km to the northeast of Ivigtût, the settlement of Kangilinnguit (aka Grønnedal), provides a heliport and an active wharf with infrastructure. The Gronnedal-lka carbonatite complex is less than 10km from Ivigtût and only 5km from the port of Grønnedal. This complex is one of the 12 larger Gardar alkaline intrusions in Greenland and is recognised by GEUS as one of Greenland's prime REE targets along with Kvanefjeld and Kringlerne (Tanbreez).

useThe Gardar Province of southwest Greenland constitutes one of the best-endowed REE provinces worldwide. It represents an ancient continental rift zone that was active between 1,330 and 1,140 Ma (i.e., Mesoproterozoic era). Gardar magmatism produced a broad suite of extrusive and intrusive rocks, including kilometre-scale alkaline complexes that are among the world's largest alkaline ore deposits. The Ivittuut mineralised system, spatially and genetically associated with an evolved alkaline complex of the Gardar Province, formed 1.3 billion years ago as cooling hydrothermal fluids moved through the Earth's crust.

personalCompetent Persons Statement

The information in this report / ASX release that relates to Exploration Results 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 relevant to the styles of mineralisation under consideration and to the activity being reported to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Dale consents to the inclusion in this report / ASX release of the matters based on information in the form and context in which it appears. Additionally, Mr Dale confirms that the entity is not aware of any new information or data that materially affects the information contained in the ASX releases referred to in this report.

For

5