MRG Metals : HMS - Nhacutse and Poiombo Mineral Resouce Estimates

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ASX ANNOUNCEMENT

2 February 2022

OUTSTANDING MAIDEN MRE FOR NHACUTSE AND POIOMBO INCLUDES EXCELLENT COMBINED HIGH GRADE INFERRED RESOURCE OF 256 MT @ 6.0% THM

Key Highlights

• Maiden JORC Mineral Resource Estimates delivered for Nhacutse and Poiombo deposits.

At 4% THM cut-off:

o	Nhacutse	535 Mt @ 4.9% THM (Inferred Resource)
o	Poiombo	325 Mt @ 4.8% THM (Inferred Resource)
o	Combined	860 Mt @ 4.9% THM (Inferred Resource)
	(Refer Table 1).

• Both Nhacutse and Poiombo deposits demonstrate exceptional homogeneity and also good continuity of higher grade zones of mineralisation at 5% THM cut-off:

o	Nhacutse	172 Mt @ 6.0% THM (Inferred Resource)
o	Poiombo	84 Mt @ 6.1% THM (Inferred Resource)
o	Combined	256 Mt @ 6.0% THM (Inferred Resource)
	(Refer Table 3).

• Nhacutse and Poiombo deposits sit adjacent, approximately 4km apart, the same distance between Nhacutse and Koko Massava deposit to the northwest. All three deposits therefore are in very close economic radius and approximately 40km from the proposed port at Chongoene.
• Initial mineralogical characterisation on the THM of the Nhacutse (11 composite samples) and Poiombo (27 composite samples) shows a mineral assemblage averaging ilmenite 39% (ilmenite plus altered ilmenite plus leucoxene); rutile 1%, zircon 2% and titanomagnetite 31% (refer Table 4). The valuable heavy mineral content (VHM) is therefore 73%. The average clay fines content (SLIMES) is 21%.
• Nhacutse and Poiombo deposits also delivered, extensional to the Inferred Resources, a combined JORC Exploration Target of between 50 and 500 Mt @ between 4.2 and 5.4% THM for a total range of contained THM of between 3 and 20 Mt (Refer Table 2).

MRG Metals Limited ABN: 83 148 938 532 / ASX Code: MRQ	Phone: [phone] / Fax: [phone]
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• This MRE result at Nhacutse / Poiombo demonstrates the success of MRG's Exploration strategy to discover at-surface, higher grade deposits than its maiden Koko Massava deposit MRE (refer ASX Announcement: 22 April 2020).
• Together with the recently announced MRE Update for Koko Massava, MRG has now identified an inventory of potential mine start-up pit options.
• Additional comprehensive mineralogical characterisation study of 27 composite samples based on all lithological units interpreted during the MRE is currently underway for Nhacutse and Poiombo. On receipt of study results the Nhacutse and Poiombo MREs will be updated.

MRG Metals Limited ("MRG" or "the Company") (ASX Code: MRQ) is pleased to announce the results of the maiden Joint Ore Reserve Committee (JORC) Mineral Resource estimates for its Nhacutse and Poiombo deposits (refer Tables 1, 2 and 3; Figures 1 and 2). As per the maiden global and updated Koko Massava Mineral Resource estimate (refer ASX Announcements: 22 April 2020 and 16 December 2021), the Mineral Resource estimates were undertaken by IHC Mining in Perth, Australia.

MRG is also pleased to announce the commencement of a comprehensive mineralogical study within the Nhacutse and Poiombo deposits, with an update of the Nhacutse and Poiombo MREs then to follow.

MRG Metals Chairman, Mr Andrew Van Der Zwan said: "We are thrilled to be able to advise MREs for the Nhacutse and Poiombo deposits, which further enhance the potential of our Corridor Sands Projects in Mozambique. To announce a combined Inferred Resource of 860 Mt @ 4.9% THM from these two sister deposits is fantastic, even more impressive is that it contains high grade zones totalling 256 Mt @ 6.0% THM. This high-gradeInferred Resource follows shortly after the exceptional results we announced for the MRE Update for Koko Massava. Combined, MRG has now identified an inventory of potential mine start-uppit options.

"The three deposits are located in close proximity to each other, within good regional support infrastructure, enabling outstanding synergies for the Company as it targets production at the site. Looking forward, MRG will continue to analyse the results from its exploration programs at the Nhacutse and Poiombo deposits before informing shareholders of updated MREs for both deposits."

Maiden Nhacutse and Poiombo Mineral Resource Estimate

Numerous drilling phases were undertaken within the Corridor South (6621L) licence, from reconnaissance to infill drilling programs, drilled via hand auger and aircore, resulted in 273 hand auger

MRG Metals Limited ABN: 83 148 938 532 / ASX Code: MRQ	Phone: [phone] / Fax: [phone]
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holes (2,737.1 m of drilling) and 127 aircore holes (4,685.5 m of drilling). Drilling was initiated with hand auger drill testing (refer ASX Announcement: 25 July 2019) of MRG aerial magnetic anomalies (refer ASX Announcement: 13 June 2019) and continued to the final infill aircore drilling phase in mid- 2021 of the Nhacutse and Poiombo deposits (refer ASX Announcement: 16 June 2021).

Receipt of all analytical results, including inter-laboratory QA/QC analysis (refer ASX Announcement: 8 December 2021) and results from initial mineralogical studies (refer Table 4), has facilitated the preparation of a Mineral Resource estimate at a 4% THM cut-off for the for Nhacutse and Poiombo deposits (Table 1 and Figure 2):

Table 1: Summary of the JORC Mineral Resource estimate for the Nhacutse and Poiombo deposit areas.

Summary of Mineral Resources	(1)									Mineral Assemblage
	In Situ
	Mineral
	Material	THM	BD	THM	SLIMES	OS	ILM	RUT ZIR TIMAG CHRM MOTH ANDA NMOTH
Deposit	Resource
(Mt)	(Mt)	(gcm3	(%)	(%)	(%)	(%)	(%)	(%)	(%)	(%)	(%)	(%)	(%)
	Category
				)
Nhacutse	Inferred	535	26	1.74	4.9	21	1	41	1	2	32	4	6	6	2
Poiombo	Inferred	325	16	1.74	4.8	19	1	37	1	1	29	4	9	9	3
Grand Total		860	42	1.74	4.9	20	1	39	1	2	31	4	7	8	2
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.

The maiden Nhacutse Mineral Resource estimate comprises a total Mineral Resource of 535 Mt @ 4.9% THM, with 21% Slimes, containing 26 Mt of THM with an assemblage of 41% ilmenite, 32% titano-magnetite, 1% rutile and 2% zircon. The JORC categories are specifically stated as:

• Inferred Mineral Resource of 535 Mt @ 4.9% THM and 21% Slimes containing 26 Mt of THM with an assemblage of 41% ilmenite, 32% titano-magnetite, 1% rutile and 2% zircon.

The maiden Poiombo Mineral Resource estimate comprises a total Mineral Resource of 325 Mt @ 4.8% THM, with 19% Slimes, containing 16 Mt of THM with an assemblage of 37% ilmenite, 29% titano-magnetite, 1% rutile and 1% zircon. The JORC categories are specifically stated as:

• Inferred Mineral Resource of 325 Mt @ 4.8% THM and 19% Slimes containing 16 Mt of THM with an assemblage of 37% ilmenite, 29% titano-magnetite, 1% rutile and 1% zircon.

The Mineral Resource estimate at the Nhacutse and Poiombo deposits also delivered an Exploration

Target in the range of 50 and 500 Mt @ between 4.5 and 5.4% 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 Bungane, Nhacutse and Poiombo villages.

MRG Metals Limited ABN: 83 148 938 532 / ASX Code: MRQ	Phone: [phone] / Fax: [phone]
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Table 2: Summary of Exploration Target for the Nhacutse and Poiombo areas.

Summary of Exploration Target	(1)
		In Situ
Classification	Material	THM	BD	THM	SLIMES	OS	ILM	RUT	ZIR	TIMAG HEMA CHRM MOTH ANDA NMOTH
	(Mt)	(Mt)	(gcm3)	(%)	(%)	(%)	(%)	(%)	(%)	(%)	(%)	(%)	(%)	(%)	(%)
Exploration Target	50 - 500	3 - 20	1.74	4.2 - 5.4	18	1	37	1	1	30	6	4	9	8	3
Grand Total	50 - 500	3 - 20	1.74	4.2 - 5.4	18	1	37	1	1	30	6	4	9	8	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.

Nhacutse and Poiombo High-Grade Zone Mineral Resource Estimate

The infill drilled High-Grade Zone, falling within the total Nhacutse and Poiombo Mineral Resource estimate area, was outlined as per Figure 1 and a Mineral Resource estimate was prepared for this confined area as per Table 3. The Mineral Resource estimate was reported at a range of cut-off grades in increments of 0.5% THM and these grade tonnage curves are presented in Figures 3 and 4, with the continuity of the high grades shown in the Mineral Resource estimate to be present up to a 5.5% THM cut-off.

Table 3: Summary of the JORC Mineral Resource estimate at 5% THM cut-off for the Nhacutse and Poiombo areas.

Mineral Resource Estimation		5% COG
Summary of Mineral Resources	(1)
	Mineral		In Situ
Deposit	Resource	Material	THM	BD	THM	SLIMES	OS	ILM	RUT	ZIR	TIMAG	CHRM	MOTH	ANDA NMOTH
	Category	(Mt)	(Mt)	(gcm3)	(%)	(%)	(%)	(%)	(%)	(%)	(%)	(%)	(%)	(%)	(%)
Nhacutse	Inferred	172	10	1.75	6.0	21	1	40	1	2	32	4	6	7	2
Poiombo	Inferred	84	5	1.75	6.1	19	1	38	1	1	30	4	8	8	2
Grand Total		256	15	1.75	6.0	21	1	39	1	2	31	4	7	7	2
Notes:

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

The Nhacutse and Poiombo High-Grade Zone comprises a Mineral Resource estimate of 256 Mt @ 6.0% THM, at a 5.0% cut-off grade, containing 15 Mt of THM, with 21% Slimes, and an assemblage of 39% ilmenite, 31% titano-magnetite, 1% rutile and 2% zircon.

Mineralogical Work Undertaken

Ongoing mineralogical studies were conducted for the Nhacutse and Poiombo deposits, with the studies conducted by either CSIRO Minerals Research Centre, Perth or SJMetMin in South Africa. Qemscan data (Quantitative Evaluation of Minerals by Scanning Electron Microscopy) by both companies and both augmented the data with XRD and XRF analysis. For Nhacutse 11 composite samples of the THM sink concentrates (HMC) from 9 drill holes were analysed, while at Poiombo 27 composite samples of the THM sink concentrates (HMC) from 18 drill holes were analysed. The composite samples representing interpreted distinctly different lithological units (mainly based on THM grade, silt content and colour) within the two deposits. A majority of the composite samples are from the top 10 to 15 m of the Nhacutse and Poiombo deposits, a comprehensive 27 composite

MRG Metals Limited ABN: 83 148 938 532 / ASX Code: MRQ	Phone: [phone] / Fax: [phone]
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sample mineralogical study from the two deposits has therefore been started.

Table 4: Summary results for bulk modal mineral assemblage of 38 composite samples (11 from Nhacutse and 27 from Poiombo) created from heavy mineral concentrated derived from hand auger and aircore drill holes within the Nhacutse and Poiombo deposit area.

Composite Name	CSBN02	CSNH01	CSNH04	CSNH05	CSNH06	CSNH07	CSNH08	Comp1	Comp2	Comp5	Comp6	Average	Min	Max
Deposit	Nhacutse Nhacutse Nhacutse Nhacutse Nhacutse Nhacutse Nhacutse Nhacutse Nhacutse Nhacutse Nhacutse
Zircon	1.4	1.4	1.6	1.4	1.6	1.9	1.8	1.6	1.8	1.7	1.9	1.6	1.4	1.9
Rutile	0.7	0.8	0.9	0.8	0.8	0.9	0.8	1.0	0.7	1.0	0.6	0.8	0.6	1.0
Leucoxene	0.7	0.8	1.0	0.8	0.9	1.0	0.8	0.8	0.8	0.8	0.9	0.8	0.7	1.0
Ilmenite	30.6	37.7	31.8	36.7	39.3	38.9	44.7	45.1	40.3	47.7	48.7	40.1	30.6	48.7
Titano-Magnetite	29.8	30.9	32.5	31.8	32.2	32.4	29.2	34.4	39.7	30.6	30.0	32.1	29.2	39.7
Hematite	5.6	6.5	6.2	6.1	6.2	6.4	5.6	4.7	4.1	4.3	3.4	5.4	3.4	6.5
Chromite	4.4	4.4	4.3	4.3	4.4	3.7	4.9	4.3	3.6	4.4	3.1	4.2	3.1	4.9
Magnetic Others	7.9	7.2	7.8	7.7	7.3	7.4	6.4	1.4	1.6	1.5	1.5	5.2	1.4	7.9
Andalusite	15.2	8.2	11.4	8.2	5.6	5.7	4.2	4.7	5.0	5.8	7.8	7.4	4.2	15.2
Non-Magnetic Others	3.7	2.1	2.5	2.2	1.7	1.7	1.6	2.0	2.5	2.2	2.1	2.2	1.6	3.7
Composite Name	CSPM02	CSPM03	CSPM04	CSPM05	CSPM06 CSPM07 CSPM08 CSPM09 CSPM10 CSPM11 CSPM12	CSPM13	CSPM14	CSPM15	Average	Min	Max
Deposit	Poiombo	Poiombo	Poiombo	Poiombo	Poiombo Poiombo Poiombo Poiombo Poiombo Poiombo Poiombo	Poiombo Poiombo Poiombo
Zircon	1.4	1.2	1.5	1.4	1.8	1.6	1.5	1.4	1.1	2.0	1.6	1.6	2.0	2.0	1.6	1.1	2.0
Rutile	0.7	0.7	0.7	0.7	0.8	0.8	0.8	0.8	0.6	1.1	0.8	0.8	0.8	0.5	0.8	0.5	1.1
Leucoxene	0.8	0.8	0.9	0.8	0.7	0.9	0.8	0.8	0.7	1.0	0.9	0.8	0.6	0.6	0.8	0.6	1.0
Ilmenite	35.0	32.7	34.3	37.8	43.0	39.4	37.3	32.4	32.2	49.2	38.9	32.6	39.1	36.2	38.0	32.2	49.2
Titano-Magnetite	28.5	33.2	28.7	28.2	27.5	26.0	30.0	27.7	33.1	23.8	29.2	29.1	29.7	28.9	28.5	23.8	33.1
Hematite	5.8	6.0	5.1	5.0	5.1	4.9	5.4	5.3	6.2	5.7	6.1	7.2	7.5	6.3	5.9	4.9	7.5
Chromite	3.8	3.8	4.2	4.2	5.3	4.5	4.5	4.3	4.1	4.4	4.9	3.9	4.3	4.6	4.5	3.9	5.3
Magnetic Others	8.7	7.4	9.1	7.7	7.7	8.8	7.3	8.7	8.6	6.8	7.5	7.8	8.0	8.2	7.9	6.8	8.8
Andalusite	11.7	11.1	12.8	12.2	6.6	10.9	10.6	15.7	10.7	4.8	7.8	13.9	6.1	9.9	9.9	4.8	15.7
Non-Magnetic Others	3.6	3.1	2.7	2.2	1.6	2.3	1.9	3.0	2.7	1.3	2.4	2.5	1.9	2.8	2.2	1.3	3.0
Composite Name	CSPM16	CSPM17	CSPM18	CSPM21	CSPM22 CSPM23 CSPM24 CSPM25 CSPM26 CSPM27 CSPM28	CSPM29	CSPM30	Average	Min	Max
Deposit	Poiombo	Poiombo	Poiombo	Poiombo	Poiombo Poiombo Poiombo Poiombo Poiombo Poiombo Poiombo	Poiombo Poiombo
Zircon	1.7	2.4	1.8	0.8	1.0	1.1	1.4	0.9	1.5	1.1	1.3	0.7	1.8	1.2	0.7	1.8
Rutile	0.9	0.8	0.7	0.5	0.4	0.5	0.7	0.7	1.0	0.7	1.0	0.6	0.9	0.7	0.4	1.0
Leucoxene	0.9	0.9	0.7	0.7	0.5	0.7	0.8	0.7	1.2	0.9	0.8	0.7	1.0	0.8	0.5	1.2
Ilmenite	42.3	42.8	37.5	27.9	31.2	35.1	35.7	36.5	43.3	35.7	30.6	27.8	40.8	34.7	27.8	43.3
Titano-Magnetite	26.8	25.4	27.5	33.6	36.5	39.0	32.5	33.5	20.6	29.7	27.8	32.1	28.0	31.0	20.6	39.0
Hematite	6.4	7.0	6.5	9.0	7.7	6.9	6.6	5.7	3.7	6.3	6.0	6.0	5.0	6.3	3.7	9.0
Chromite	4.5	4.9	4.3	3.8	3.9	4.3	3.9	5.3	4.9	3.9	3.7	4.3	5.4	4.3	3.7	5.4
Magnetic Others	7.7	7.6	8.7	9.6	8.1	8.1	8.2	9.3	11.3	7.8	10.0	12.4	7.5	9.2	7.5	12.4
Andalusite	7.1	6.2	10.0	10.8	8.1	2.6	7.8	4.8	9.2	11.4	14.8	10.7	8.0	8.9	2.6	14.8
Non-Magnetic Others	1.8	2.1	2.5	3.2	2.9	1.8	2.5	2.7	3.3	2.6	4.1	4.7	1.6	2.9	1.6	4.7

1. Averages are arithmetic and not weighted on THM - hence small differences will be observed between these averages and those reported in the Mineral Resource estimate in Tables 1 and 3 which are weighted on THM tonnes.

Summary of Resource Estimate and Reporting Criteria

A summary of the material information used to compile this Mineral Resource estimate is outlined in the sections below. More detailed information in presented in the JORC Table 1 attached.

Geology and geological interpretation

The coastal region of southern Mozambique forms part of the Mozambique basin, which is comprised of a complex succession of Cretaceous to Quaternary age sedimentary rocks and unconsolidated sand deposits which rest unconformably on Karoo Supergroup sediments and volcanics.

The Cenozoic deposits of the Mozambique basin are distinguished by shallow-marine facies typical of a passive continental margin with two main sedimentary cycles; a Palaeocene-Eocene cycle and

MRG Metals Limited ABN: 83 148 938 532 / ASX Code: MRQ	Phone: [phone] / Fax: [phone]
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