Middle Island Resources : 08 April 2024 - New Drill Targets

8 April 2024

ASX: MDI

EXPLORATION UPDATE - NEW DRILL TARGETS

BARKLY COPPER-GOLD SUPER PROJECT

HIGHLIGHTS:

• Yet more compelling new drill targets established;
• Multiple modelled large dense 'shoots' spread across six prospects - (an indicator of potential sulphide or iron oxide minerals concentrations expected with MDIs IOCG or Sediment Hosted Cu-Zn-Pb-Ag targets);
• Eight new drill-ready targets and another three priority targets to undergo further surveys ahead of drilling;
• Range of target depths - from 230m - 550m.

Middle Island Resources Limited (ASX: MDI or "Middle Island") is pleased to update shareholders on our Barkly Super-Project exploration programme which has progressed well.

The work is targeting prospective areas for IOCG and Sediment Hosted Cu-Zn-Pb-Ag deposits at Tennant Creek and Barkly. The Company's exploration holdings in the region covers some 6,918 sq kms.

Modelling of detailed gravity survey data collected or collated across priority targets identified in 2023 has been completed. The modelling has established well-defined density anomalies ('shoots') that are consistent with the densities, size, and geometries of known examples of the target deposit types.

Six areas have advanced to Prospect status, with well-defined drill targets (Figure 1). Eight new high priority drill targets have been identified in the project drill schedule. A total of 14 conceptual exploration drillholes have been planned.

The new drill targets are 'blind' beneath post-mineralisation cover and, as such, each and every one presents an opportunity for a significant new discovery. Target depths range from 230m - 550m.

A summary of the targets is provided in Appendix 1.

Priority focused drilling plans are being finalised for the 2024 field season. Initial drilling will focus on shallower targets.

Commenting on the Company's exploration programme, MDI Chief Executive Officer, Roland Bartsch said:

"'Ultimately new mineral discoveries are made through drilling. We have systematically developed robust drill targets in an underexplored district where the opportunities have been hidden by cover. It's

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exciting to be at a point to start delivering drill hole plans. That said, the targets outlined here are just a start. It's a large project and other equally significant targets are in the pipeline with more likely to be identified and worked up.

The systematic approach adopted is integral to MDI's exploration strategy to add value through growth of scientific understanding and concepts, which in turn is directed at securing adequate funding to enable resources and future drilling to be focused not only on the perceived top targets, but to ensure prospects are not abandoned prematurely in the face of the many disappointments typical in exploration. This approach is directed at maximising the potential for exploration drilling success."

RELEASE AUTHORISED BY THE MDI BOARD:

Contacts:	[phone]	[e-mail]
Website:		www.middleisland.com.au

Forward Looking Statements

Statements contained in this release, particularly those regarding possible or assumed future performance, costs, dividends, production levels or rates, prices, resources, reserves or potential growth of Middle Island, industry growth or other trend projections are, or may be, forward looking statements. Such statements relate to future events and expectations and, as such, involve known and unknown risks and uncertainties. Actual results and developments may differ materially from those expressed or implied by these forward-looking statements depending on a variety of factors.

Competent Persons Statement

The information in this report that relates to Exploration Targets, Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Roland Bartsch, BSc(Hons), MSc, MAIG. Mr Bartsch is a full- time employee of the Company and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaking to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Bartsch consents to the inclusion in the report of the matters based on their information in the form and context in which it appears.

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APPENDIX 1: EXPLORATION UPDATE

Exploration Drill Targeting

In 2023, MDI identified a total of 55 exploration targets within its Barkly Super-Project tenements for further assessment.

Detailed infill ground gravity surveys were completed over eight priority targets in late 2023. Surveys were completed by Daishsat Geodetic Surveyors. Across six areas existing survey data was infilled to 100m x 100m stations to provide sufficient resolution to resolve drillholes to test the targets; the other two areas were completed at 100m x 400m with the aim of developing proof of concept.

The gravity data was processed, and gravity 3D density inversion modelling was completed by Southern Geoscience Consultants. Modelling was also completed on ground gravity surveys (also at 100m x 400m station spacing) from previous explorers over two areas on EL32109 and EL32760. Further background on the gravity surveys and modelling is provided in Appendix 2.

From a targeting perspective, modeled high rock density is used as a proxy for the potential concentration of key minerals with higher specific gravities that may indicate alteration (eg magnetite, hematite), and presence of sulphide minerals associated with copper, gold, zinc and lead mineralisation being sought. The targeting further considered deposit conceptual model parameters evidenced by magnetic and structural model signatures.

As a result of the modeling, six areas have advanced to Prospect status with well-defined drill targets (Figure 1 and 2) in addition to the previously established Crosswinds Prospect.

Within the Georgina and EL32760 Project areas (Figure 1), the modelling has established well-defined density anomalies ('shoots') that are consistent with densities, size, and geometries consistent with larger known Tennant Creek IOCG deposits or IOCG variants in other districts (Figures 3 -7).

Within the Barkly Project area (Figure 1) the detailed work focused on advancing Sediment-Hosted Cu- Zn-Pb-Ag (SedH) target concepts. At two targets, the models have confirmed the presence of linear dense horizons encasing well defined density anomalies ('shoots'). The potentially stratabound/stratiform nature of the 'shoots' and structural position near basin margin growth faults is consistent with the SedH exploration concept (Figures 8 -11).

In total, eight new high priority drill targets have been identified in the project drill schedule. A total of 14 conceptual exploration drillholes have been planned. Targets are 'blind' beneath post-mineralisation Georgina Basin cover ranging from 100m - 350m deep and top of target depths 230m - 550m. At the Redrock and Tumbleweed prospects additional detailed gravity surveying is however planned to refine proposed drill locations.

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Figure 1. Barkly Super-Project, project areas, tenements and exploration prospect locations.

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Figure 2. Barkly Super-Project, magnetic image showing priority prospects and targets - large high amplitude magnetic and/or related gravity anomalies (probable magnetite - hematite constructive alteration zones or potential sulphide concentrations for gravity only) are distributed along major fault corridors - deep crustal faults with interpreted multiple stages of extension, and reactivation during shortening events.

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Figure 3. Georgina Project area magnetic and gravity (inset) images showing prospects and modelled density anomalies ('shoots') in red. At Wilma the main 'shoots' step across magnetic units (possible ironstones). At Dino the 'shoot' is immedaitely within the Gulunguru Fault and the broader gravity anomaly overlaps with the magnetic high (green) to its north. The Pebbles anomaly, the largest and highest amplitude, is complex, situated in faulted contact of modrately magnetic interpreted Alroy Formation rocks adjacent to the Gulunguru Fault.

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Figure 4. Wilma Prospect gravity 3D inversion density model (left). Isoshells of the anomaly peaks define 'shoots' with densities, size and geometries consistent with larger known Tennant Creek IOCG deposits or variants in other districts. Cross-sections A and B illustrate the two shoots that step across the magnetic 'ironstones' (see Figure 4); modelled maximum densities are 2.89 and 3.11g/cc (100m block model), top of anomaly depth is 295m and 230m, strike lengths of 500m to 250m and down plunge extents 1200m to 400m respectively.

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Figure 5. Pebbles Prospect gravity 3D inversion density model (left). The gravity anomalies are the largest and highest amplitude in the tenure. The modelled densities, size and geometries are consistent with a larger IOCG system. The two larger zones display 'shoots' that extend closer to surface illustrated in x-sections A and B; modelled maximum densities are 3.26 and 3.20g/cc (100m block model), top of anomaly depth is 280m and 270m, strike lengths of 1100m to 1400m and down plunge extents at least 1400m to 650m respectively.

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Figure 6. Dino Prospect gravity 3D inversion density model (left) and representative cross-section. Modelled maximum density is 2.99g/cc (100m block model) and top of anomaly depth is 260m; strike lengths are in the order of 750m and down plunge extent 900m.

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Figure 7. Redrock Prospect; inset maps show gravity 3D model maximum density isoshells draped on magnetic and gravity images. The central anomaly (x-section A) is coincident with a magnetic high on a regional fault bend. Modelled maximum densities for this shoot is 3.07g/cc (200m block model) and top of anomaly depth is 320m; strike length is 2700m and down dip extent 1200m. Historical drilling by an earlier explorer did not test the target but intersected alteration including traces of copper sulphides (chalcopyrite) consistent with being in the periphery of a ICOG system.

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