Nexus Minerals Limited has recognised an opportunity to access a significant underexplored landholding in Victoria and NSW which is highly prospective for Australia's demand for critical minerals. The 12-month assessment and evaluation study resulted in the Company's emerging ground position of critical mineral exploration projects in Australia. The critical mineral search commenced by assessing the LCT pegmatite potential of the Lachlan Orogen of Victoria and NSW.

This extended to the association of tin mineralisation to the emplacement of LCT pegmatites. The Company has also entered into an option agreement to explore and acquire the Merrimac Project (Merrimac) in north-eastern Victoria. The project hosts known LCT pegmatites and tin mineralisation and abuts one of Nexus' under-application tenements that also hosts known LCT pegmatites and tin mineralisation.

In addition to the positive results from the Bethanga porphyry Cu-Au fertility assessment study, this extensive new ground position over a hugely underexplored and prospective region, will allow Nexus to undertake the search for critical minerals in a significant manner. Nexus reviewed geology and lithogeochemical data from the Wagga-Omeo Zone (WOZ) in southern NSW as part of a regional-scale approach to select exploration ground for LCT pegmatites in the Lachlan Orogen. The objective was to establish from first principals, intrusive rocks permissive for LCT pegmatite development and assess their fertility using open-file data rather than focusing only on known tin and lithium occurrences.

A review of open file geology and whole-rock geochemistry confirmed that much of the exploration ground applied for in southern NSW is underlain by reduced, fractionated, peraluminous S-type granites similar to those associated with the spodumene-bearing pegmatites of the Dorchap Range in north-eastern Victoria. A significant ground position (~15,000km2) in the WOZ has been pegged, to allow for the identification of the most prospective areas utilising; re-processing of open file geophysical and geochemical datasets, systematic mapping, sampling and high-quality geochemical analysis of intrusive rocks. The tenure is considered prospective for lithium, cesium, tantalum and tin, with Nexus having a first mover advantage in the region, allowing for regional scale exploration and targeting.

The following terms and conditions have been agreed for the Option to acquire the Merrimac Project (tenement EL007493): A $10,000 non-refundable fee paid for a one-month due diligence period that was completed 13 March 2023. The Company successfully completed initial due diligence and paid a further $90,000 non-refundable option fee to the Vendors (Option Fee). This Option Fee allows Nexus to have the exclusive right for a period of 9 months (Option Period) to undertake reconnaissance exploration activities on the tenements.

At any time during the Option Period Nexus may elect to exercise the Option and have the vendors transfer the tenement to Nexus. The consideration for the acquisition of 100% of the Merrimac project being: $300,000 cash consideration; and At Nexus' discretion either:Payment of a further $600,000 cash; or The issue of fully paid ordinary shares in the capital of Nexus Minerals to the value of $600,000, at a 7- day VWAP to the date Nexus issues the exercise notice, subject to shareholder approval.