Horseshoe Metals : Activity Update Horseshoe Lights Copper Gold Project

ASX ANNOUNCEMENT

28 March 2022

Activity Update Horseshoe Lights Copper Gold

Project

• • Reverse Circulation (RC) drilling expected to commence this week with drill rig mobilisation to site scheduled for Wednesday

• • Horseshoe Lights Copper-Gold Project summary:

  • o Current in situ resource 128,000 t Cu metal @ 1.0% (0.5% cut-off)

  • o Current M15 stockpile resource 2650 t Cu metal @ 1.1%

  • o Current Flotation tailings resource 6,800 t Cu metal @ 0.48% and 15,300oz Au at 0.34 g/t

  • o Extensive drilling (over 120km total) and metallurgical test work

  • o Open pit only drilled to a depth of ~250m - proximal major deposits in Bryah Basin have been drilled to ~800-1000m

  • o Horseshoe are targeting a Deep sulphide copper target - "Below the Dolerite" (BTD)

• • Phase 2 RC drilling planned for northern half of Main Zone and Motters

• • RC drilling also planned for North and South Wasted Dumps, NW Sulphide Stockpile and Southern stockpiles

• • Evaluation of surface material opportunities designed to complement Horseshoe's plans to target main orebody extensions with deeper drilling, including the conceptual BTD target _______________________________________________________________________

Horseshoe Metals Limited (ASX: HOR) ('Horseshoe' or the 'Company') is pleased to provide an update with respect to upcoming RC drilling at its Horseshoe Lights Copper-Gold Project.

The Horseshoe Lights Copper-Gold Project is the original Cu/Au VMS discovery in the Bryah Basin and is located approx. 60km west of DeGrussa Copper Mine operated by Sandfire Resources (ASX: SFR). Past production from Horseshoe Lights includes around 316,000 oz Au & 55 kt Cu metal in two phases of mining, and the deposit contains a current in situ resource 128 kt Cu metal @ 1.0% (0.5% cut-off) and 36,000 oz Au (refer Table 1).

Horseshoe's RC drilling contractor is expected to mobilise a rig, support vehicles and crew to site this week. The Phase 1 RC programme completed last year focussed on the north end of Motters (see ASX release dated 29 October 2021) including:

• • 45m @ 1.22 % Cu from 2m

• • 22m @ 1.87 % Cu from 12m

• • 26m @ 1.31 % Cu from 6m

• • 16m @ 1.15 % Cu from surface

Phase 2 RC drilling will test Motters and the northern half of the Main Zone (Figure 1) to a depth of up to 200 metres below surface (MBS).

The Motters mineralised zone is interpreted to be the NNW/SSE striking sheared eastern limb of a folded Volcanogenic Massive Sulphide (VMS) horizon. Phase 2 RC drilling will infill the northern end of the structure (approx. 100m strike) and test the 400m southern extension where wide spaced historic RC and Diamond drilling has intersected significant Cu mineralisation in the eastern wall of the open pit (Figure 1).

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Craig Hall	Sam Burns
Non-Executive Director	Six Degrees Investor Relations
T [phone]	T [phone]
E:[e-mail]

Main zone NW extension will be targeted north of the open pit where infill drilling is required. In addition, drilling will target the northern extension of interpreted north plunging high grade mineralisation where historic drilling has failed to adequately test the structure.

RC drilling is also planned to further test surface materials (see ASX release dated 18 March 2022) including:

• • NW Low-grade sulphide stockpile

• • North and South Waste Dumps

• • Southern Cu, Cu/Au and Au low-grade stockpiles

Further updates will be provided once drilling has commenced.

For additional background on the Horseshoe Lights Project please refer to ASX releases:

• 12/09/2018 "Exploration Update- Horseshoe Lights Project"

• 06/08/2021 "Horseshoe Lights Exploration Activities Update"

• 10/09/2021 "Horseshoe Lights Phase 1 Auger Programme Completed"

• 13/09/2021 "Horseshoe Lights Phase 1 RC Drilling Programme Completed"

• 29/10/2021 "Horseshoe Lights RC Drilling Results"

• 26/11/2021 "Horseshoe Lights Phase 1 Stockpile Results Received"

• 21/02/2022 "Horseshoe Metals Successful Relisting"

• 03/03/2022 "Horseshoe Lights Activities Update"

• 11/03/2022 "Horseshoe Lights Copper-Gold Resource Grade-Tonnage Review"

• 18/03/2022 "Surface Material Review at Horseshoe Lights"

The Board of Directors of HOR has authorised this announcement to be given to the ASX.

- ENDS -

Enquiries

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Figure 1 - Areas of planned RC Drilling Main and Motters Zones

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Figure 2 - Stockpile and Dump Areas of Planned RC Drilling

About Horseshoe Metals Limited

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Horseshoe Metals Limited (ASX:HOR) is a copper and gold-focused company with a package of tenements covering approximately 500km2 in the highly prospective Peak Hill Mineral Field, located north of Meekatharra in Western Australian and mineral interests in South Australia. The Company manages the Horseshoe Lights Project and the Kumarina Project in Western Australia, and the Glenloth Gold Project in South Australia. The tenements immediately surrounding the Horseshoe Lights Copper-Gold Project are currently part of a Farm In/Joint Venture with Kopore Metals Limited (ASX:KMT) where KMT has recently completed minimum expenditure requirements for the first year of Farm In.

Figure 1: Location of Horseshoe Lights Copper-Gold Project and Kumarina Project in the Murchison, WA

About the Horseshoe Lights Project

The Horseshoe Lights Project includes the historic open pit of the Horseshoe Lights copper-gold mine which operated up until 1994, producing over 300,000 ounces of gold and 54,000 tonnes of contained copper, including over 110,000 tonnes of Direct Shipping Ore (DSO) which graded between 20%-30% copper.

The Horseshoe Lights ore body is interpreted as a deformed Volcanogenic Hosted Massive Sulphide (VMS) deposit that has undergone supergene alteration to generate the gold-enriched and copper-depleted cap that was the target of initial mining. The deposit is hosted by quartz-sericite and quartz-chlorite schists of the Lower Proterozoic Narracoota Formation.

Past mining was focused on the Main Zone, a series of lensoid ore zones, which passed with depth from a gold-rich oxide zone through zones of high-grade chalcocite mineralisation into massive pyrite-chalcopyrite. To the west and east of the Main Zone, copper mineralisation in the Northwest Stringer Zone and Motters Zone consists of veins and disseminations of chalcopyrite and pyrite and their upper oxide copper extensions. Table 2 summarises the total Mineral Resources for the Horseshoe Lights Project as at 31 December 2021.