OAR Resources : Exploration Update

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25 January 2022

EXPLORATION UPDATE

HIGHLIGHTS

Douglas Canyon Gold Project:

• First hole intersected highly fractured sedimentary units containing siliceous chert bands, strong iron staining and quartz stringer veins, with highly siliceous quartz breccias at a depth of 213m. End of hole target depth estimated to be 250-300m.
• Initial 175 samples submitted to laboratories for gold and base metal analysis. Assay results have shown elevated values but no significant gold grades returned to date.
• Program comprises up to four diamond core holes testing depth extensions of high-grade outcropping gold and silver mineralisation.
• Drilling paused for the northern winter. Drilling will recommence in the current hole DCD- 02 to target depth before moving to target the northern shear structure in the 2nd hole.

Crown Ni-Cu-PGE Project:

• 2022 field season to commence at the Crown Ni-Cu-PGE Project in the Julimar District in Western Australia - comprising ongoing soil sampling and mapping programs.
• Planning is also underway for an airborne geophysical survey over the eastern portion of the project area.
• Soil sampling results from late 2021 have highlighted zones of low-level nickel and copper anomalism - field checking and verification of results to be completed to assess their significance.

Eyre Peninsula Exploration Project:

• OAR is investigating divestment opportunities for its Eyre Peninsula project portfolio; Bramfield Iron Ore Project, Gibraltar Halloysite-Kaolin Project and Oakdale Graphite Project.

Oar Resources Limited ("Oar" or "the Company", ASX: OAR) is pleased to provide the following

update on its project portfolio.

Douglas Canyon Gold Project

The Company commenced its maiden drilling program at the high-grade Douglas Canyon Gold Project in the fourth quarter of 2021 (ASX announcement, 1 November 2021), making positive progress prior to the cessation of activities due to the onset of adverse winter weather, and the Christmas break.

Drilling in the first holes of the program (DCD-02) was completed to a depth of some 213.5m (700.5ft) to date, with 175 samples collected from the available drill core and dispatched to the laboratory for analysis.

The program consists of up to four diamond holes for a total of approximately 1,000m of HQ drill core, testing high-grade outcropping gold and silver mineralisation. Drilling is targeting a series of parallel vein structures where previous outcrop sampling has confirmed high-grade gold and silver mineralisation (Appendix 1).

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Drill hole DCD_02 is targeting the depth extension of a highly fractured high-grade quartz vein within highly sheared meta sediments mapped at surface (Figure 1).

Figure 1: Drill Collar Location Plan - Douglas Canyon Gold Project

Drilling to date has intersected a series of highly weathered, sheared and fractured meta sediments, with intermittent hard silica cherty bands and quartz stringer veinlets throughout. Given the fractured nature of the core, the Company has taken a steady, cautious approach to drilling, with a primary focus on maximising the amount of core recovered for analysis over speed of drilling.

Drilling is currently at a depth of 213.5m (700.5ft) and is interpreted by the Company to have intersected the target shear structure, and remains within this structure. Logging has confirmed the presence of silica flooded host rock, with thin quartz stringers, along with a silica matrix brecciated vein close to the current depth of the hole (Figure 2).

While these observations are considered to be very encouraging, sampling to date of the available drill core (175 samples sent for analysis), has not returned any significant (>1 g/t Au) assay results.

Drilling is scheduled to recommence once favourable weather conditions prevail, and hole DCD_02 will be continued to test the target structure to its planned depth, of approximately 250m-300m. The drilling rig will then be relocated to the second hole, situated to the north of DCD_02, to test a parallel high-grade structure (Figure 1).

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Figure 2: Drill core from Douglas Canyon Project showing silica matrix brecciated vein, and silica flooded host

rocks

Crown Ni-Cu-PGE Project

The Company is pleased to announce that field activities are scheduled to recommence at the 100% owned Crown Ni-Cu-PGE Project, located in the Julimar district only 8km to the west of Chalice Mining Limited's Gonneville Ni-Cu-PGE discovery at its Julimar Project.

The initial phase of field work at Crown is designed to deliver a thorough understanding of the geological setting of the Project area and help define drill targets for a first phase of drilling, and includes detailed geological mapping and grid surface geochemical sampling.

This work has resulted in the definition of two broad geological domains at Crown (Figure 3). These are the Western Domain, which is dominated by granitic lithologies and is interpreted as being less prospective, and the Eastern Domain, which is characterised by a mixture of the targeted mafic, ultramafic, and granitic lithologies and will be the focus of exploration moving forward.

A total 74 outcrop rock-chip samples have been collected and submitted for laboratory multi-element analysis. Results for the first 60 samples have been reported previously1. Assays for the remaining 14 samples have now been returned with no significant results to report. (Appendix 1, Table 2).

In addition, 380 soil samples had been collected over a Priority 1 target area in the southeast of the project area (Figure 3). Results from this soil sampling program have now been returned, and highlight several areas of low-level nickel and copper anomalism. These results require field verification, and

1 Refer to ASX announcement dated 15 November 2021 for full details and JORC tables

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this will be undertaken in conjunction with the extension of the soil sampling program to the north and west, in January and February.

Figure 3: Crown No-Cu-PGE Project -showing simplified geology domains and priority target areas

Airborne Geophysical Survey

As a next step in its systematic exploration of the Crown Project, the Company is now planning to conduct a detailed airborne electromagnetic ("EM") survey, which will target the favourable "mixed geology" domain located along the eastern flank of the project area (see "OAR Priority Focus Area" circled in yellow in Figure 3). The survey is in the final stages of planning and will be undertaken pending survey contractor availability.

EM Surveys are a powerful exploration tool in the detection of blind sulphide ore bodies similar to Chalice's Gonneville massive sulphide discovery at its Julimar Project (Appendix 2).

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Eyre Peninsula Exploration Project

As a part of an ongoing strategic asset review process, the Company is currently reviewing several investment and divestment opportunities for its portfolio of exploration assets on the Eyre Peninsula in South Australia. These projects comprise six contiguous exploration licences covering approximately 1,520km2 of the Gawler Craton on the western flank of the Eyre Peninsula.

The portfolio consists of three main projects which have been subject to considerable exploration work by OAR over a number of years:

• The Oakdale Graphite Project where the Company has defined a JORC resource of 6.22Mt @ 4.8% TGC2
• The Bramfield Iron Ore Project where previous drilling has returned significant Iron grades from magnetite banded iron formation, including:
• • BLDD20: 36.2m @ 42.39% Fe from 77.0m3
  • BLDD021: 53m @ 39.77% Fe from 82.0m3
• The Gibraltar Halloysite-KaolinProject, where the Company has outlined a large area (2.5km x 5km), of high-grade halloysite within bright white kaolinitic clays including results of:
• • GBAC144: 14m @ 76.2 ISO-B from 14m4
  • GBAC129: 8m @ 28.5% Halloysite from 20m4

"This Announcement has been authorised for release to ASX by the Board of Oar Resources Limited"

For further information please contact:
Chris Gale	James Moses
Executive Chairman	Media & Investor Relations
Oar Resources Limited	Mandate Corporate
P: [phone]	E:[e-mail]

1. Refer to ASX announcement dated 27 October 2015 for full details and associated JORC tables
2. Refer to ASX Announcement dated 13 October 2014 for full details and associated JORC tables
3. Refer to ASX announcement dated 1 September 2021 for full assay results and associated JORC tables

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