Hawsons Iron Ltd. announced a 21R increase in the Hawsons Iron Project's Mineral Resource estimate to 484 million tonnes (Mt), including a maiden 54 Mt in the Measured category and 193 Mt in the Indicated category required to support future reserve estimation and debt financing. The increase in Mineral Resources is due to the infill drilling campaign completed in 2021-22. The key outcomes of the upgrade in the Mineral Resources are illustrated below: 21% increase in total Mineral Resources estimate from 400 Mt to 484 Mt - Maiden Measured Resources of 54 Mt - 46.2% increase in Indicated Resources from 132 Mt to 193 Mt - 87% increase in Measured and Indicated Resources from 132 Mt to 247 Mt.

In addition to the Mineral Resource released on July 25, 2022, the Exploration Target for the Hawsons Iron Project has been increased with a range of 5 to 18 billion tonnes at a DTR grade range of 7.5% to 34% and a concentrate Fe grade range of 65.3% to 70.6%. The approximated quantity and grade of this Exploration Target is conceptual in nature and there has been insufficient exploration to estimate a Mineral Resource and it is uncertain if further exploration will result in the estimation of a Mineral Resource. The updated Mineral Resources have been completed by independent geological experts - H&S Consultants.

H&S Consultants Pty Ltd: has completed updated Mineral Resource estimates for Hawsons Iron Ltd.'s ("HIO") Hawsons Magnetite Project in western New South Wales, where the target commodity is iron ore as magnetite. The new resource estimates are based on data from the original Carpentaria Exploration ("CAP") 2009/2010/2016 drilling and the recent HIO 2021/22 drilling in conjunction with improved geological understanding. The recent drilling comprised 67 reverse circulation (RC), diamond core and RC holes with diamond tails for 24,261m, as infill drilling over the Core & Fold deposits, in particular as detailed infill for the Core West structural zone.

The estimates have been reported using the 2012 JORC Code and Guidelines and the author has the requisite experience to act as a Competent Person under the code. H&SC has completed three previous resource estimates for the deposit in 2011, 2014 and 2017, plus an update to the 2017 Mineral Resource in 2021. Additional details of the resource estimates are supplied in Appendix 1. The Hawsons Project is situated within folded, upper greenschist facies Neoproterozoic rocks of the Adelaide Fold Belt.

The Braemar Facies magnetite ironstone is the host stratigraphy and comprises a series of relatively narrow, strike extensive magnetite-bearing siltstones with a moderate dip to the southwest (circa 45°). Large areas of the Hawsons prospective stratigraphy are concealed by transported ferricrete and other younger cover. The base of oxidation due to weathering of the prospective horizons is estimated to average 80m in depth.

The airborne magnetic data clearly identifies the magnetite siltstones as a series of parallel, narrow, high amplitude magnetic anomalies. Mineralisation consists of fine grained disseminated magnetite with no obvious structural remobilisation or overprint. Sediment porosity as a function of sediment source and depositional environment is considered a major control to mineralisation and hence to grade continuity.

H&SC maintained a drillhole `resource' database for the earlier 2009/2010/2016 drilling and has signed off on the Exploration Results for that work. HIO has supplied a drillhole database for the recent 2021/2022 drilling for the deposit, which H&SC has accepted in good faith as an accurate, reliable and complete representation of the available data. H&SC performed limited validation of the data and noted that only 33 of the 67 holes from the 2021/2022 drilling had complete assay datasets.

Laboratory analyses are continuing and downhole geophysical measuring is still in progress. The unavailable data was a result of a combination of drilling delays due to bad weather, Covid-related health and safety issues, and bottlenecks at the laboratory. Other items noted by H&SC were unavailable downhole gyro surveys due to hole collapses, occasional inconsistent downhole geophysical calibrations for magnetic susceptibility and possibly density and a limited QAQC dataset.

Whilst there is unavailability of data, its impact is partially limited by some of the data being peripheral to the main zones of mineralisation and thus having a limited effect on the Mineral Resources and some of the data can be estimated using a combination of regression equations and levelling of the data. With diligent data processing, it is possible to significantly reduce the impact of the unavailable data on the resource estimates. The H&SC drillhole database for Hawsons is satisfactory for resource estimation purposes; however responsibility for quality control for the recent HIO drilling resides solely with HIO.

Data was supplied in MGA2020 coordinates which H&SC converted to an E-W orthogonal local grid. The resource estimates for the Core & Fold areas were produced from a total of 140 holes for 45,542m with a predominance of surface RC relative to HQ/NQ diamond holes. Samples were field composited RC splits or sawn half/quarter core with a range of sample lengths from 4 to 8m (5m being the most common) for a total of 5,142 samples.

Sample preparation involved crushing and pulverising samples to a nominal 80% passing 25 microns for a 38 micron grind. Assaying comprised measuring recovered magnetic fraction by the Davis Tube recovery method ("DTR") with multi-element XRF analysis of the magnetic concentrate plus XRF analysis of the head grades. New to the current drilling program was a more expansive program of sample collection from both the cover zone and the oxide/transition zones.

HIO have informed H&SC that the RC sample recovery was good with no bias and that there is no relationship between DTR grade and sample recovery. For the subsequent grade interpolation, the entire drillhole database was composited to 5m intervals, with all residuals retained, for the DTR assays, the downhole geophysical data and the handheld magnetic susceptibility data. The composite files were split into 3 structural domains namely Core West, Core East & Fold based on interpreted, off-setting sub-vertical faults derived from the ground magnetic data.

Each record for each domain was flagged by company i.e. CAP or HIO, and by oxidation level using the relevant surfaces i.e. cover, complete oxidation, partial oxide and fresh rock.