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ASX ANNOUNCEMENT

1 April 2022

MINERAL ASSEMBLAGE STUDY RETURNS SUBSTANTIALLY HIGHER VALUABLE HEAVY MINERAL RESULTS AT NHACUTSE AND POIOMBO

Key Highlights

  • • A mineralogical study of 27 composite samples from Nhacutse and Poiombo deposits returned substantially improved Valuable Heavy Mineral (VHM) results (Tables 1 and 2) compared to the widely spaced earlier mineralogy data used in the recent Mineral Resource estimate (Tables 3 and 4).

  • • The updated results show a VHM increase to 45.3 % at Nhacutse (was 44%) and 45.9 % at Poiombo (was 39%) (refer Tables 1, 2, 3 and 4). Titanomagnetite results show 26.4% for Nhacutse and 26.1% for Poiombo.

  • • For clarity, VHM is the measure of ilmenite + altered ilmenite + leucoxene + zircon + rutile, as a percentage of the heavy mineral concentrate.

  • • These results are material and will be used for an MRE update for Nhacutse and Poiombo deposits, which is expected to deliver JORC Indicated Resource.

  • • The existing MRE for Nhacutse and Poiombo delivered a JORC Inferred Resource of 256 Mt @ 6.0% THM at 5% THM cut-off; or 860 Mt @ 4.9% THM at 4% THM cut-off (refer ASX Announcement 2 February 2022).

  • • Further observations from this new VHM data at Nhacutse / Poiombo:

    • o Significantly higher (circa 10%) than the recently updated MRE for Koko Massava deposit (refer ASX Announcement 16 December 2021).

    • o Increase in the VHM component of the heavy mineral concentrate (HMC) from west to east (from average 45.8 in the west to 47.5 in the east of Nhacutse; Figure 3) and north to south as per previous studies (refer ASX Announcements 31 July 2020 and 11 August 2021).

MRG Metals Limited ("MRG" or "the Company") (ASX Code: MRQ) is pleased to release the excellent results from a recent completed comprehensive quantitative mineralogical study (utilizing XRF, XRD, Bulk Mineralogy and QEMSCAN) within the Nhacutse and Poiombo deposits in the Corridor South (6621L) exploration license (Figures 1 and 2). The new mineral assemblage data of the heavy mineral

MRG Metals Limited ABN: 83 148 938 532 / ASX Code: MRQ

Phone: +61 3 5330 5800 / Fax: +61 3 53330 5890

12 Anderson Street West, Ballarat VIC 3350 / PO Box 237 Ballarat VIC 3353

www.mrgmetals.com.au /info@mrgmetals.com.au

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concentrate (HMC) will be used for an upcoming update of the recently released maiden combined Nhacutse and Poiombo Inferred JORC Mineral Resource estimate (resource of 860 Mt @ 4.9% THM at 4% THM cut-off or 256 Mt @ 6.0% THM at 5% THM cut-off, refer Tables 3 and 4; ASX Announcement 2 February 2022).

The study involved 27 composites, 18 from Nhacutse and 9 from Poiombo (Figure 2 and Table 5), with the composites sourced from 56 aircore holes and 159 individual sample intervals. The composites were done lithologically, with composites covering the mineralized sand at surface from 0 to generally between 3 and 4.5m depth (red/red-brown sand); the red/red-brown sand to a depth of generally between 30 and 45m (depending on topography) and the deeper brown/grey sand to a maximum depth of 60m below surface.

The composites returned average Valuable Heavy Mineral (VHM; ilmenite, altered ilmenite, leucoxene, zircon and rutile) results of average 45.3% VHM for Nhacutse and 45.9% VHM at Poiombo (Tables 1 and 2). The average Titanomagnetite is 26.4% for Nhacutse and 26.1% for Poiombo (Tables 1 and 2). The VHM results are higher compared to the widely spaced historic data used in the Inferred Nhacutse and Poiombo JORC Mineral Resource estimate (from the Inferred Mineral Resource 44% VHM at Nhacutse and 39% VHM at Poiombo, Tables 3 and 4, refer ASX Announcement 2 February 2022). The new Nhacutse and Poiombo mineralogy data is also significantly better than found within the recently updated JORC Mineral Resource estimate from the Koko Massava deposit (refer ASX Announcement 16 December 2021), with Koko Massava showing an average VHM for the Global resource area of 40% VHM, and 41% for an infill drilled higher grade area.

The VHM data, including the data from individual minerals in the VHM assemblage, confirmed data from previous work with an increase in the VHM component of the HMC from west to east within the red/red-brown aeolian sand (from average 45.8% VHM in the west to 47.5% VHM in the east of Nhacutse) and north to south as per previous studies (refer ASX Announcements 31 July 2020 and 11 August 2021, Figure 3).

The results from this comprehensive study, combined with all other mineralogical work done by MRG on both the Corridor Central 6620 L and Corridor South 6621 L licences (Figure 1), were used in planning of a recently initiated targeted aircore drilling program focusing on areas where better mineralogy (higher VHM%) meets high Total Heavy Mineral (THM) grades.

MRG Metals Chairman, Mr Andrew Van Der Zwan said: " We continue to upgrade our potential mine resource and this enhancement of the valuable heavy mineral component at Nhacutsce and Poiombo may have a significant impact on early year cashflows. The increase alone on Ilmenite componentry has 2 uplift impacts. Firstly, the circa 15% (39% to 45.9%) improvement over Koko Massava at the same grade will increase the inground value by over USD$1.00/Tonne based on today's Ilmenite pricing ex Mozambique. In addition, the increased percentage of altered ilmenite further improves the TiO2 composition of the concentrate, to provide further uplift. Given a preliminary scoping study estimate

MRG Metals Limited ABN: 83 148 938 532 / ASX Code: MRQ

Phone: +61 3 5330 5800 / Fax: +61 3 53330 5890

12 Anderson Street West, Ballarat VIC 3350 / PO Box 237 Ballarat VIC 3353

www.mrgmetals.com.au /info@mrgmetals.com.au

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Sample

Mineral

N0001

N0002

N0003

N0004

N0005

N0006

N0007

N0008

N0009

N0010

N0011

N0012

Zircon

1.3

1.3

1.2

1.2

1.4

1.3

1.2

1.4

1.0

1.3

1.2

1.2

Rutile

1.1

1.1

1.1

1.3

1.2

1.0

1.2

1.0

1.2

1.2

0.9

1.1

Leucoxene

0.3

0.3

0.3

0.3

0.3

0.3

0.3

0.3

0.3

0.3

0.3

0.4

Altered Ilmenite

2.3

3.1

2.1

2.6

2.6

2.6

3.0

2.3

2.4

2.8

2.7

2.6

Ilmenite

39.6

43.6

38.7

38.4

42.3

37.4

38.9

41.7

33.7

39.9

43.2

39.9

Titano- magnetite

27.5

26.9

28.1

28.5

26.5

27.1

24.6

28.8

30.4

25.0

26.0

24.5

Hematite

7.5

8.6

10.2

8.6

9.5

9.8

9.7

10.2

10.2

9.5

9.1

9.3

Chromite

3.6

3.4

3.4

3.4

2.8

3.6

3.4

2.7

3.1

3.4

2.9

3.1

Magnetic Others

1.6

1.6

3.4

2.2

1.7

2.4

1.8

1.5

2.3

1.8

1.6

2.9

Andalusite

11.5

7.2

7.7

10.5

8.8

9.5

11.4

7.6

11.1

11.1

8.9

9.9

Non- magnetic Others

3.7

3.0

3.7

3.2

3.1

5.1

4.7

2.7

4.3

3.7

3.2

5.2

of 20MT/annum process, this enhanced assemblage has the potential of adding substantial cashflows in the first 10 years of production"

Figure 1: Map of the location of the Corridor South (6621L) project in relation to other MRG licences.

Table 1: Results for an 18 composite mineralogical study at Nhacutse.

MRG Metals Limited ABN: 83 148 938 532 / ASX Code: MRQ

12 Anderson Street West, Ballarat VIC 3350 / PO Box 237 Ballarat VIC 3353

Phone: +61 3 5330 5800 / Fax: +61 3 53330 5890

www.mrgmetals.com.au /info@mrgmetals.com.au

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Sample

Mineral

P0001

P0002

P0003

P0004

P0005

P0006

P0007

P0008

P0009

Min

Max

Ave

StDev

Zircon

1.1

1.2

1.2

1.1

1.5

0.9

1.2

1.2

1.1

0.9

1.5

1.2

0.1

45.9

Total VHM in HMC

Rutile

1.1

1.6

1.3

1.2

1.0

1.5

0.9

1.2

1.0

0.9

1.6

1.2

0.2

Leucoxene

0.3

0.4

0.4

0.4

0.3

0.4

0.2

0.3

0.2

0.2

0.4

0.3

0.1

Altered Ilmenite

2.1

2.1

6.3

4.1

5.1

5.8

6.0

6.0

5.4

2.1

6.3

4.8

1.6

Ilmenite

39.4

41.4

39.4

36.8

36.7

36.1

36.8

39.6

39.8

36.1

41.4

38.4

1.9

Titano- magnetite

27.5

27.6

23.0

25.0

28.6

24.9

28.4

25.0

24.7

23.0

28.6

26.1

2.0

26.1

Titano- magnetite

Hematite

8.7

9.0

6.8

8.7

9.3

7.0

10.2

8.7

8.6

6.8

10.2

8.6

1.1

54.2

Total Non-

VHM in HMC

Chromite

3.5

3.6

4.0

4.0

3.2

4.0

3.4

3.7

3.1

3.1

4.0

3.6

0.4

Magnetic Others

2.4

2.4

3.6

3.7

2.8

4.3

2.2

3.3

2.3

2.2

4.3

3.0

0.7

Andalusite

9.7

7.4

8.7

10.1

7.8

8.5

7.1

7.0

9.9

7.0

10.1

8.5

1.2

Non- magnetic Others

4.3

3.4

5.5

5.0

3.8

6.7

3.5

4.1

4.0

3.4

6.7

4.5

1.1

Sample

Mineral

N0013

N0014

N0015

N0016

N0017

N0018

Min

Max

Ave

StDev

Zircon

1.2

1.4

1.1

1.4

1.6

1.3

1.0

1.6

1.3

0.1

45.3

Total VHM in HMC

Rutile

1.2

1.3

0.8

1.2

1.2

1.1

0.8

1.3

1.1

0.1

Leucoxene

0.3

0.3

0.3

0.4

0.3

0.3

0.3

0.4

0.3

0.0

Altered Ilmenite

2.4

3.0

2.1

3.0

2.9

2.6

2.1

3.1

2.6

0.3

Ilmenite

41.4

42.3

34.8

43.0

42.9

39.4

33.7

43.6

40.1

2.8

Titano- magnetite

26.2

26.8

30.1

22.2

22.6

24.1

22.2

30.4

26.4

2.3

26.4

Titano- magnetite

Hematite

8.5

9.0

9.0

7.3

7.9

7.9

7.3

10.2

9.0

0.9

54.7

Total Non- VHM in HMC

Chromite

3.4

3.3

3.4

4.2

3.4

3.2

2.7

4.2

3.3

0.3

Magnetic Others

1.6

1.5

2.7

1.8

1.7

2.6

1.5

3.4

2.0

0.6

Andalusite

11.0

8.5

11.2

11.8

11.8

12.9

7.2

12.9

10.1

1.7

Non- magnetic Others

2.9

2.8

4.6

3.8

3.9

4.7

2.7

5.2

3.8

0.8

Table 2: Results for a 9 composite mineralogical study at Poiombo.

MRG Metals Limited ABN: 83 148 938 532 / ASX Code: MRQ

12 Anderson Street West, Ballarat VIC 3350 / PO Box 237 Ballarat VIC 3353

Phone: +61 3 5330 5800 / Fax: +61 3 53330 5890

www.mrgmetals.com.au /info@mrgmetals.com.au

For personal use only

Figure 2: Summary locality of quantitative mineral composition of 18 composite samples from Nhacutse and

Poiombo aircore drillholes.

MRG Metals Limited ABN: 83 148 938 532 / ASX Code: MRQ

12 Anderson Street West, Ballarat VIC 3350 / PO Box 237 Ballarat VIC 3353

Phone: +61 3 5330 5800 / Fax: +61 3 53330 5890

www.mrgmetals.com.au /info@mrgmetals.com.au

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MRG Metals Limited published this content on 31 March 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 April 2022 00:30:54 UTC.