Native Mineral Resources : NMR awarded $200,000 CEI grant

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ASX ANNOUNCEMENT

18 February 2022

NMR awarded $200,000 Collaborative

Exploration Initiative (CEI) grant

Highlights:

• NMR are pleased to announce that the Company has been awarded $200,000 as part of the Queensland Governments highly competitive Collaborative Exploration Initiative (CEI) grants program.
• Funding will contribute towards the acquisition of a 30,349 line-kilometre fixed wing magnetics and radiometrics survey flown at a line spacing of 80m.
• The high-resolution magnetics survey will be the first project-scale survey ever flown in the region and will add a significant amount of new, key data to the region.
• NMR would like to thank the QLD government for offering the CEI grant scheme to active mineral explores to help discover new critical mineral deposits.
• This financial support helps demonstrate the confidence that the GSQ have in the project and the Company's ability to add significant value to this part of North- East Queensland.

Native Mineral Resources Holdings Limited (ASX: NMR), or ("NMR" the "Company"), is pleased to advise that it has been successful in securing a Queensland Government Collaborative Exploration Initiative (CEI) grant. NMR will receive grant funding of $200,000 to support the completion of a 30,349-line kilometre fixed-wing magnetic and radiometric survey. The survey will be completed in collaboration with project partners Prophet Resources and professional geophysical acquisition company MagSpec Airborne Surveys Pty Ltd.

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Management Commentary

NMR's Managing Director, Blake Cannavo, commented: "We are delighted to have secured this grant from the Queensland Government. The funding will allow the team to gather the data required to efficiently and precisely prioritise the many targets already defined at our Palmerville Project area. This is a great boost for NMR as it not only helps increase our knowledge of the geology in the region, but it also demonstrates a commitment from the Queensland Government to help companies find the critical metals required for the transition to a greener, healthier and more environmentally sustainable economy. Airborne magnetics is a great way to increase targeting success, reduce NMR's on-groundimpact and help point our geologists to the best areas in the field for discovery. The geophysics will be the next critical piece of information on top of our growing number of positive sample results and targeting."

NMR's rationale for undertaking airborne geophysical survey

The primary, and arguably the most important, geophysical dataset in any exploration companies' exploration toolbox is high-resolution magnetic data. Airborne magnetic and radiometric data is a standard technique used across the industry and has been the foundation dataset for many new deposit discoveries. The mineral-rich, but discovery-poor northern Chillagoe Formation suffers from very low- resolution 400m line spacing magnetic data in what is a lithologically and structurally complex zone with exceptional potential for one or even multiple copper deposit discoveries.

Due to the geological complexity of the northern Chillagoe Formation, there is a desperate need for high- resolution geophysics to help make sound geological interpretations about the geological controls and location of mineralisation relative to the surrounding geology.

The proposed airborne magnetic and radiometric survey results will assist NMR and other exploration companies within the survey window to "virtually see" through the barriers inhibiting current exploration including thick vegetation, shallow rock cover and difficult-to-access terrain. The resulting dataset will be used to help observe, in more detail and continuity than ever before, the sub-surface structure and intrusion potential of the belt. The planned 30,349-line kilometre magnetic and radiometric survey will also add significant volume of critical data to QLD's growing digital database which in turn will help promote discovery now and into the future.

Survey location and background

The Palmerville-North Chillagoe Project lies in the North-eastern Queensland mineral province and is a strategic area for new mineral deposit discoveries. The Project is NMR's principal Copper exploration asset and covers a near continuous strike length of 130km over an area of ~1,820km2 centered 200km west-northwest of Cairns in North Queensland (Figure 1). The Magnetic survey will cover almost the entire area of NMR's Palmerville Copper-Gold exploration project (Figure 2).

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Figure 1. Simplified map showing the location of the proposed airborne magnetic and radiometric survey. The survey area is over 2000 km2 and will be flown at 80m flight line spacing. The survey will gather over 30,300-line kilometres of new, continuous, seamless, and high-resolution magnetics and radiometrics data.

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Figure 2. Location map submitted as part of the CEI application process outlining the area of the airborne magnetics survey. NMR are proud to have worked together with Prophet Resources to complete planning, grant submission and now successful grant of CEI funds.

Palmerville - Northern Chillagoe Project Background

NMR's Palmerville Project area consist of nine Exploration Permits (EPM's) that cover a significant proportion of the highly prospective Chillagoe Formation (Figure 3). To the south of NMR's project area, the same Chillagoe Formation hosts the large Red Dome and Mungana porphyry and skarn-associatedgold-copper deposits. The Chillagoe Formation also hosts significant zinc-rich and copper-rich limestone- hosted skarn-associated deposits, particularly at King Vol, Mungana, Griffiths Hill and Red Cap. These mines all occur within a relatively short, approximately 70-kilometre long, segment of the southern part of the Chillagoe Formation. This part of the southern Chillagoe Formation has been extensively explored, which contrasts with the region to the north held by NMR. The Northern Chillagoe Formation is comparatively under explored despite the presence of several historical copper and other base metal mines in the area.

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Figure 3. NMR's tenements (red) over the northern Chillagoe Formation. The area covered by tenements is considered by the Company to be under-explored despite sharing almost identical rock types as the southern Chillagoe Formation and having significant evidence of copper mineralisation. NMR is a frontier explorer having discovered at least three very high potential targets including the Leane's project.

The Palmerville Project area is prospective for the following deposit styles:

• Porphyry- and skarn-associatedcopper-zinc-gold mineralisation in Chillagoe Formation limestone-dominant strata.
• Porphyry-relatedcopper-gold mineralisation in non-carbonate lithologies.
• Copper-zinc-goldvolcanic massive sulphide or vein-style mineralisation.
• Orogenic-stylegold-antimony mineralisation.
• Epithermal gold mineralisation distal to porphyry intrusions
• Alluvial gold akin to the historic Palmerville Goldfield.

Previous exploration over the tenements has, in places, been extensive including soil, stream sediment and rock chip sampling, trenching, and limited drilling. However, no previous explorers have continued to develop the many targets identified. For the majority of the region, exploration is at a very early stage. NMR has completed a preliminary review of historical mining activity and past