MRG Metals : 31.12.21 Quarterly Activities & Cashflow...

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ASX ANNOUNCEMENT

31 January 2022

MRG METALS DECEMBER 2021 QUARTERLY ACTIVITY REPORT

Key Highlights

Corridor Projects

• World-classHMS deposit confirmed at Koko Massava with potential for 50+ year mine life.
• Updated Koko Massava JORC Mineral Resource estimate included delivery of a High-Grade Zone of 103 Mt @ 6.6% total heavy minerals (THM) at 5.5% cut-off grade.
• The High-Grade Zone, situated between the towns of Koko Massava and Malehice, presents a potential high-gradestart-up mine opportunity that will be assessed during the current Pit Optimisation study.
• Analytical assay results from a 34 aircore infill drilling program, totaling 2,085m of drilling and 1,448 samples, confirm three very high grade +6% Total Heavy Mineral (THM) mineralised zones between the towns of Koko Massava and Malehice, within the Koko Massava Mineral Resource Estimation area.
• Positive outcomes from 3-wayinter-laboratory QAQC check assay study undertaken on aircore drilling samples from Koko Massava, Nhacutse and Poiombo. Results from the studies demonstrated positive statistical correlation MAK versus both Geolabs and Diamantina, with all correlations within industry norms.
• Post quarter, MRG completed a $1.6 million placement through the issue of 200 million fully paid ordinary shares at $0.008 per share, together with 100 million attaching options, exercisable at $0.025 (expiring 30 June 2023) to sophisticated and professional investors. The placement will facilitate scoping study/PEA at the Corridor Sands HMS discovery and drive further HMS drilling programs.

Marao and Marruca Projects

• MRG received Environmental Licences for the Marao 6842L and Marruca 6846L tenements, allowing progression from hand auger to "machine driven" exploration in the form of aircore drilling.
• Three drill targets at Marao have been generated for testing in 2022.

MRG Metals Limited ABN: 83 148 938 532 / ASX Code: MRQ	Phone: [phone] / Fax: [phone]
12 Anderson Street West, Ballarat VIC 3350 / PO Box 237 Ballarat VIC 3353	www.mrgmetals.com.au/[e-mail]

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MRG Metals Limited ("MRG" or "the Company") (ASX Code: MRQ) is pleased to provide a summary

of the Company's activities for the December 2021 quarter at its Heavy Mineral Sands projects in southern Mozambique.

Activity across MRG's Corridor Portfolio

World-class HMS Deposit Confirmed

During the quarter, MRG announced results of the updated JORC Mineral Resource estimate (MRE) for the global Koko Massava deposit, which lies within the Corridor Central licence

An infill aircore drilling program was carried out in 2021 in a High-Grade Zone within the Inferred Mineral Resource portion of the maiden Koko Massava MRE between the towns of Koko Massava and Malehice (Figure 1). Receipt of all analytical results, including inter-laboratory QA/QC analysis and results from a comprehensive mineralogical study, has facilitated the preparation of an updated MRE, again at a 4% THM cut-off for the entire/global Koko Massava deposit (Table 1 and Figure 1).

Table 1: Summary of the updated JORC Mineral Resource estimate for the global Koko Massava deposit area.

Summary of Mineral Resources(1)								THM Assemblage(2)
Mineral		In Situ
Material	THM	BD	THM	SLIMES	OS	ILM	RUT	ZIR	TIMAG CHROM MOTH ANDA NMOTH
Resource
(Mt)	(Mt)	(gcm3)	(%)	(%)	(%)	(%)	(%)	(%)	(%)	(%)	(%)	(%)	(%)
Category
Indicated	557	28	1.7	5.1	17	1	39	1	1	32	4	13	8	3
Inferred	977	49	1.7	5.0	16	1	38	1	1	32	4	13	8	3
Grand Total	1,534	78	1.7	5.1	17	1	38	1	1	32	4	13	8	3
Notes:

1. Mineral resources reported at a cut-off grade of 4% THM
2. Mineral assemblage is reported as a percentage of in situ THM content.

MRG Metals Limited ABN: 83 148 938 532 / ASX Code: MRQ	Phone: [phone] / Fax: [phone]
12 Anderson Street West, Ballarat VIC 3350 / PO Box 237 Ballarat VIC 3353	www.mrgmetals.com.au/[e-mail]

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Figure 1: Map showing the outline of the global Koko Massava Resource area within the Corridor Central

(6620L) Licence.

MRG Metals Limited ABN: 83 148 938 532 / ASX Code: MRQ	Phone: [phone] / Fax: [phone]
12 Anderson Street West, Ballarat VIC 3350 / PO Box 237 Ballarat VIC 3353	www.mrgmetals.com.au/[e-mail]

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The updated global Koko Massava MRE comprises a total Mineral Resource of 1,534 Mt @ 5.1% THM, with 17% Slimes, containing 78 Mt of THM with an assemblage of 38% ilmenite, 32% titano-magnetite,

1% rutile and 1% zircon. The JORC categories are specifically stated as:

• Indicated Mineral Resource of 557 Mt @ 5.1% THM and 17% Slimes containing 28 Mt of THM with an assemblage of 38% ilmenite, 32% titano-magnetite, 1% rutile and 1% zircon.
• Inferred Mineral Resource of 977 Mt @ 5.0% THM and 16% Slimes containing 49 Mt of THM with an assemblage of 38% ilmenite, 32% titano-magnetite, 1% rutile and 1% zircon.

The MRE at Koko Massava deposit also delivered an Exploration Target in the range of 120 and 630 Mt @ between 4.5 and 6.0% THM at cut-off grades of 3% and 5% THM (refer Table 2; Figure 2). This Exploration Target was predominantly located within the boundaries of the Koko Massava and Malehice villages.

Table 2: Summary of Exploration Target for global Koko Massava area.

Summary of Exploration Target	(1)								THM Assemblage	(2)
		In Situ
Target	Material	THM	BD	THM	SLIMES	OS	ILM	RUT	ZIR	TIMAG CHROM MOTH ANDA	NMOTH
	(Mt)	(Mt)	(gcm3)	(%)	(%)	(%)	(%)	(%)	(%)	(%)	(%)	(%)	(%)	(%)
Exploration Target	120 - 630	7 - 30	1.74	4.5 - 6.0	15	1	38	1	1	31	4	13	9	3
Grand Total	120 - 630	7 - 30	1.74	4.5 - 6.0	15	1	38	1	1	31	4	13	9	3
Notes:

1. Exploration Target reported at a cut-off grade of 3% - 5% THM
2. Mineral assemblage is reported as a percentage of in situ THM content.

MRG Metals Limited ABN: 83 148 938 532 / ASX Code: MRQ	Phone: [phone] / Fax: [phone]
12 Anderson Street West, Ballarat VIC 3350 / PO Box 237 Ballarat VIC 3353	www.mrgmetals.com.au/[e-mail]

For personal use only

Figure 2: Map showing the updated JORC Classification for the global Koko Massava Mineral Resource area within the Corridor Central (6620L) Licence.

MRG Metals Limited ABN: 83 148 938 532 / ASX Code: MRQ	Phone: [phone] / Fax: [phone]
12 Anderson Street West, Ballarat VIC 3350 / PO Box 237 Ballarat VIC 3353	www.mrgmetals.com.au/[e-mail]