Chase Mining : Red Fox Geophysical modelling / review at Ernest Henry West

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ASX RELEASE

16 December 2021

Red Fox Geophysical modelling / review at Ernest Henry West

Chase Mining Corporation Limited (ASX: CML, "Chase Mining" or "Company") provides the following update on Red Fox Resources Pty Limited ("Red Fox"), in which Chase Mining holds 40%.

Red Fox has identified high priority target areas in its 100% owned Ernest Henry West EPM 26010.

A geophysical modelling exercise and structural interpretation indicates a direct comparison can be made between the Ernest Henry West area and the E1 Group of Deposits, mined by Glencore Ernest Henry Operations.

Red Fox has identified drill targets at two prospects in the area, which it proposes to drill when the area becomes accessible in 2022.

Attached is a copy of the Red Fox announcement, which can also be found on their website together with further information on the company at http://www.redfoxresources.net.au/

This announcement has been authorised for release to the ASX by the CML Board of Directors.

For further information, please contact:

Leon Pretorius

Executive Chairman and CEO

Mobile: [phone]

Email:[e-mail]

CHASE MINING CORPORATION LIMITED

ABN 12 118 788 846

Level 8, 46 Edward Street, Brisbane QLD 4000 PO Box

15505, City East QLD 4002 0439 310 818 | 0419 702 616 https://www.chasemining.com.au

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EXPLORATION · INNOVATION · DISCOVERY

16 December 2021

Red Fox completes Geophysical modelling/review at Ernest Henry West

Red Fox is pleased to announce that it has completed a geophysical modelling exercise and review of the Ernest Henry West Project in the Cloncurry district of northwest Queensland.

The review has identified high priority target areas in the Ernest Henry West EPM 26010.

Figure 1: Ernest Henry West ((LHS) comparison to E1 area (RHS) - background aeromagnetics RTP.

Key points from the review are:

• Direct comparisons can be made between the Ernest Henry West area and the E1 Group of deposits
• Historical geophysical data (magnetics and gravity) was modelled in 3D and combined with detailed structural interpretation by Red Fox
• Both Ernest Henry West (FC8N and FC9N) and the E1 deposits show comparable magnetic responses
• Both are located on an interpreted faulted and folded nose setting
• Previous drilling at the FC8N setting was not deep enough to intersect the modelled magnetic body so there has been no effective drill test of the faulted/folded nose
• At FC9N, previous drilling of a single hole was abandoned in cover rocks due to drilling conditions so there has been no effective drill test at FC9N
• Red Fox is planning to drill test the two prospect areas in the new year

RED FOX RESOURCES PTY LTD		P.O. Box 217 Paddington QLD 4064
Phone: [phone]	Email:[e-mail]	A.C.N. 612 611 408

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EXPLORATION · INNOVATION · DISCOVERY

Direct comparisons can be made between the Ernest Henry West area and the E1 deposits. The E1 deposits have some similarities to the IOCG style deposits of the Selwyn District and also of recent discoveries such as Jericho and Artemis in the Soldiers Cap area. The E1 Group has been partly mined by Glencore Ernest Henry operations and is reported as containing 48.1 Mt @ 0.72% Cu, 0.21 g/t Au (Sustainable Minerals Institute 2019, Chapter 12).

Both Ernest Henry West and the E1 deposits show comparable magnetic responses. Figure 1 shows aeromagnetics (Reduced to Pole - RTP) with Ernest Henry West (FC8N and FC9N prospects) on the western side and the E1 areas on the eastern side, circled. Both areas show a similar pattern of complex folded iron rich sediments truncated on the north-westernside by major structures.

Figure 2 shows detail of the aeromagnetic signature of the E1 deposits (SMI 2019). This shows the deposits are located on the edge or within the main magnetic responses and appear to occur on fold noses and flexures, at or adjacent to structural intersections/offsets.

Figure 2: RTP aeromagnetics (post mining) over E1 deposits showing 0.5% Cu grade shells,

E1N, E1E and E1S (from SMI 2019).

Red Fox has drawn the comparison between the setting at E1 Group and the FC8-9 area of Ernest Henry West EPM (see Figure1).

Red Fox has engaged GeoDiscovery Group to carry out 3D magnetic and density inversion modelling over the Ernest Henry West EPM and in particular over the FC8N prospect where more detailed magnetic and gravity data had been collected by WMC and Xstrata. This modelling has been married with a detailed structural interpretation previously carried out by Red Fox over the Ernest Henry area (see Figure 3).

The principal structure running through Ernest Henry West is a northwest trending structure which passes immediately north of two WMC identified prospects, FC8N and FC9N. This FC8-9 structure has a major effect on the Williams Supersuite intrusives in the northern part of the EPM and has enhanced magnetic effects adjacent to it in the FC8N and FC9N areas.

RED FOX RESOURCES PTY LTD

PAGE 2

EHW Geophysical Modelling and Targets generated

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EXPLORATION · INNOVATION · DISCOVERY

These magnetic features bear a remarkable similarity with the E1 Group setting with the FC8N area interpreted as a faulted and folded nose within a sequence of variably magnetic meta-sedimentsand

meta-volcanics.

Further east the FC9N area shows a strong flexure in the magnetic stratigraphy similar to that at E1 South (see Figure 2).

A review of the previous exploration in the area (work done by WMC and Xstrata) shows that there are four previous drill holes in the area targeting IOCG style base metal mineralisation within the Proterozoic basement. Three of these were aimed to test magnetic features at FC8N and FC9N (the other hole testing a different magnetic effect and setting some 5km north-east of FC9N).

FC8N Prospect

Two historical drill holes targeted IOCG style base metals (within the basement) at the FC8N area: Both holes, MFC98055RC and MFC00114D intersected variable magnetite alteration with elevated copper and gold (to 278ppm Cu and 74ppb Au). In particular, hole MFC00114D intersected moderate hydrothermal brecciation as well as magnetite alteration at the bottom of the hole.

Figure 3: FC8N and FC9N area showing proposed drill holes (over aeromagnetics, RTP)

RED FOX RESOURCES PTY LTD

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EHW Geophysical Modelling and Targets generated

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EXPLORATION · INNOVATION · DISCOVERY

The magnetic inversion modelling carried out for Red Fox has shown that MFC00114D is the only hole that intersecting the magnetic model (magnetic susceptibility iso-surface 0.3 - see Figure 4). This hole was drilled on a truncated anomaly on the southwest flank of the FC8N structure. The hole only penetrating the magnetic shell at about 110m to the end of hole at 140m. At 110m, Fe contents increased from 3-4% Fe to 10-15% Fe and Sulphur also shows a marked increase confirming that the iso-surface used is an appropriate guide.

Previous hole MFC98055RC was drilled to test the nose of the FC8N structure. However, no magnetic modelling was carried out by Xstrata and this hole was not drilled deep enough to intersect the magnetic model iso-surface. Therefore, there has been no effective drill test of the faulted/folded nose at FC8N.

FC9N Prospect

Only one historical drill hole targeted base metals (within the basement) in the FC9N area however it failed to reach basement (MFC98088RC) being abandoned due to poor drilling conditions at 30m. The FC9N area shows a distinctive flexure in the magnetic stratigraphy which lies adjacent to a zone of elevated chargeability (MIMDAS data by Minotaur). This feature is analogous to the setting of the E1 South deposit (see Figure 2).

	P2201 MFC98055R	TC43
	P2202
	TC44
MFC00114D	P2203
	TC45

TC46

CLDH213 TC48

Figure 4: Geophysical model of FC8N, 3D view showing magnetic shells (red - magnetic susceptibility 0.3 iso-surface) and gravity shells (blue - density 0.127 iso-surface), oblique view looking north-west - showing previous drilling and Red Fox designed proposed holes P2201, P2202 and P2203.

RED FOX RESOURCES PTY LTD

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EHW Geophysical Modelling and Targets generated