Empire Resources : Strong DHEM Responses at Smiths Well

11 April 2022

ASX Release

STRONG DHEM RESPONSES AT SMITHS WELL

HIGHLIGHTS

Downhole electromagnetic (DHEM) surveys define very high conductance modelled plate (> 20,000S) within the sulphide horizon

Modelling indicates channel-like geometry plunging at -45° to the north

Drilling planned to test the modelled plate down plunge of previously intercepted massive-disseminated sulphides [1]

Assay results for the remainder of YDD22-02 and hole YDD22-03 due in May

Empire Managing Director, Sean Richardson commented:

"The results from this downhole geophysical survey are very encouraging. The modelled channel structure in the presence of massive to disseminated sulphides enhances the potential for a significant copper-nickel-cobalt discovery at the Smiths Well prospect.

"The work completed at Smiths Well, along with highly prospective exploration targets including YT01, A-Zone and Constantine highlight the exceptional prospectivity of the Yuinmery Project. The potential for the project to host multi-element mineral deposits that could build on the existing Resource endowment is evident.

"Drilling has been planned for mid-2022 to target extensions to the Smith Well channel conductor. Empire looks forward to providing updates to the market as information becomes available."

EMPIRE RESOURCES LIMITED ACN 092 471 513

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159 Stirling Highway, Nedlands WA 6009

SUMMARY

Empire Resources (ASX:ERL, Empire) advises that downhole electromagnetic (DHEM) surveys have been completed at the Smiths Well Prospect, Yuinmery Project. The DHEM surveys and modelling were completed by Empire's geophysical consultant Southern Geoscience Consultants (SGC).

The DHEM surveys completed in hole YDD22-03 were designed to better define the extent and orientation of the conductor intercepted in hole YDD22-02 [1]. Hole YDD22-03 failed to intercept a conductor despite targeting a plate modelled from previous DHEM surveys.

Two loops were planned for the YDD22-03 DHEM survey. Loop 1 was designed to couple the known conductor intercepted in YDD22-02. Loop 2 was designed to null couple the known conductor and test for any secondary conductors in the vicinity.

The quality of the captured data was very good. The observed responses were very strong and no readings decayed completely to noise levels. SGC modelled the YDD22-03 survey data from both hole and loop configurations concurrently with previous DHEM survey data from holes YDD21-01 and YRC21-25. The latest time channels possible were used to model the strong conductor, in this case channels 33-35.

The DHEM modelling has greatly improved the understanding of the Smiths Well conductor. Using data from three holes concurrently results in a well constrained model. A single plate 445m long and 77m wide adequately fits the observed response in all the holes. Any residual misfit between the modelled and observed data is due to the rectangular flat model not accurately representing the true geometry of the sulphide body which is likely to be more complex.

The second loop designed to null-couple the main conductor did not identify any responses from conductors other than the main conductor.

The modelling suggests the main Smiths Well conductor has channel-like geometry that plunges at approximately -45° to the north and dips at approximately 60° to the west. The modelled plate has a high conductance >20,000S.

A series of planned drillholes will test the down dip and down plunge extensions of the Smiths Well channel conductor. Drilling contractors have advised their availability and it is expected that drilling will commence during the June quarter and continue through the mid-year.

EMPIRE RESOURCES LIMITED ASX: ERL

Figure 1 - Smiths Well Long Section

Figure 2 - Smiths Well Oblique Cross Section YDD22-02

EMPIRE RESOURCES LIMITED

Figure 3 - March 2022 DHEM Conductor & Drill Collars

Base Image RTP_Eagcs50nl

EMPIRE RESOURCES LIMITED ASX: ERL

FORWARD PLAN

All samples from the recently completed diamond drilling program [2] have been submitted to Empire's preferred commercial laboratory for chemical analysis. Current advice for laboratory analysis turnaround times is 8 to 10 weeks from submission. Samples from hole YDD22-01 (YT01) are expected to be returned during April, while the remaining samples from holes YDD22-02 and YDD22-03 (Smiths Well) are expected to be returned in May 2022.

Further diamond drilling is planned to commence in the June 2022 quarter when a drilling contractor becomes available. Drilling contractors have advised their rig availability and the Company continues to work with their preferred contractors to lock in a firm commencement date.

Samples of drill core have been collected and submitted to a reputable petrographer to characterise the host geology and sulphide mineralogy. Further petrographic samples will be collected as drilling progresses. The results of petrographic analysis will be used to refine exploration targeting and data processing.

EMPIRE RESOURCES LIMITED ASX: ERL