Indiana Resources : December 2020 Quarterly Activities and Cashflow Reports

ASX: IDA

29th January 2021

QUARTERLY ACTIVITIES REPORT

Quarter ended 31 December 2020

Indiana Resources Limited (ASX: IDA) ('Indiana' or the 'Company') is pleased to provide its Quarterly Activities report for the December Quarter 2020.

PROJECTS

South Australia - Gawler Craton Gold Project

During the December quarter the Company advised that it had finalised planning for the upcoming Reverse Circulation ("RC") drill programme for the Minos Prospect within Indiana's 100% owned 5,090 km2 Central Gawler Craton Gold Project (Figures 1 & 2).

As previously reported (refer ASX releases dated 4th August and 28th September 2020), significant mineralisation has been intersected by historic drilling at the Minos and Ariadne targets located within the 40km long Lake Labyrinth Shear Zone ("LLSZ"; Figure 3). Initial review of historic drill hole data including diamond drilling completed at Minos has highlighted significant high-grade structures within the mineralised zone that were not tested effectively by earlier drilling programmes.

Initial geologic review has highlighted a number of significant structural features with respect to the internal geometry and distribution of the gold mineralisation at Minos as follows:

• The main mineralised shear zone (LLSZ) strikes approximately NW to SE and is sub vertical or steeply dipping to the SW
• Early phase mineralisation lies within the main foliation that is either parallel to the walls of the main shear or shallower dipping to the SW and characterised by sericite-silica-pyrite alteration and quartz carbonate veining (Figure 4)
• Late stage high grade mineralisation hosted by quartz carbonate veins containing pyrite, sphalerite and galena (Figures 5 & 6)
• The shear zone host rock adjacent to these late stage veins are commonly brecciated and hematite altered (Figures 5 & 6)

There appear to be at least two generations of mineralisation in different structural orientations, one subparallel to the shear zone and the second dipping to the NE at about 70 degrees (Figure 7). This is consistent with surface mapping at the Ariadne prospect where structural measurements of late stage high grade veins associated with surface workings dip to the NE at 70 to 80 degrees. Further logging of the drill core will be undertaken to accurately determine the strike and dip of the high-grade veins.

These features highlight the need to orient drilling in a direction that adequately tests all the gold bearing vein orientations and structures within the Minos mineralisation. THRC060, an RC drill hole completed as a water bore to assist previous diamond drilling (Figure 7), highlights this point. THRC060 appears to have intersected both orientations of veining and provided a far more consistent result than all other holes which were drilled to the NE at a dip of 60 degrees.

Indiana Resources Limited | ABN 67 009 129 560 | Suite 3, 339 Cambridge Street, Wembley WA 6014

ASX code: IDA | T [phone]| E [e-mail] | www.indianaresources.com.au

These holes have less chance of regularly intersecting the late stage high grade NE dipping veins. The planned programme will include holes drilled steeply to the SW to test this interpretation and confirm the results in THRC060 (Figure 7).

Some historic Minos core is stored at the South Australian Drill Core Reference Library at Tonsley and will be the subject of detailed core logging and structural analysis by the Company in the next few weeks to assist with refining the structural interpretation at Minos.

Subsequent to the end of the quarter, the Company announced that it had located uncut and unassayed Diamond Drill core at the South Australian Core Reference Library located at Tonsley, SA. The HQ core hole (THDD-066) was drilled at the Minos Prospect and was drilled on the 600 Section line at Minos, most likely to provide samples for metallurgical test work. Permission to remove, cut and sample the core has been received from the Core Reference Library which now retains the core. Core cutting has now been completed and samples sent for assay with results expected in February 2021.

In late January 2021, an initial RC drilling programme was completed safely and ahead of schedule at the Minos Prospect. A total of 1,604m of Reverse Circulation (RC) drilling was completed for 10 holes varying in depth from 72 to 210 metres. The programme had been designed to test a 600 metre long section in the core of the Minos target.

Nine of the ten holes drilled for the programme ended in the mineralised shear zone and the Minos prospect appears to be open along strike and at depth. Samples have been collected and sent to Bureau Veritas in Adelaide for assay. Results are expected late February and will be released to the market in due course.

Results from this programme when received will assist with planning for an expanded drill programme, which will likely include diamond drilling to test the depth and extend the total width of the mineralised shear zone. Given drilling that has already been conducted to date at the Minos Prospect it is likely that an expanded drill programme will be completed at a spacing to assist with the calculation of a JORC resource. The future drilling programme will also likely test targets at Ariadne and Company Well, both located within the LLSZ.

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Indiana Resources Limited | ABN 67 009 129 560 | Suite 3, 339 Cambridge Street, Wembley WA 6014

ASX code: IDA | T [phone]| E [e-mail] | www.indianaresources.com.au

Figure 1: IDA's total ground position in the Central Gawler Craton

Challenger Historical Production:

www.bartongold.com.au/presentations- 24th April 2020- p13.

Tarcoola Resource:

www.bartongold.com.au/mineral-endowment- 2017 JORC Resource- depleted for 2018 mining *non JORC (2012)

Tunkillia Resource:

https://www.asx.com.au/asxpdf/20150204/pdf/42wdj3ts5gz5t4.pdf p1

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Indiana Resources Limited | ABN 67 009 129 560 | Suite 3, 339 Cambridge Street, Wembley WA 6014

ASX code: IDA | T [phone]| E [e-mail] | www.indianaresources.com.au

Figure 2: Tenement Location Plan showing Prospects and historic Calcrete Anomalies

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Indiana Resources Limited | ABN 67 009 129 560 | Suite 3, 339 Cambridge Street, Wembley WA 6014

ASX code: IDA | T [phone]| E [e-mail] | www.indianaresources.com.au