Pinnacle Minerals : Quarterly Activity and Cashflow Reports

ASX Announcement 22 April 2022

QUARTERLY REPORT FOR THE PERIOD ENDING 31 MARCH 2022

Highlights

• • Heavily oversubscribed $4.5m IPO completed and Company successfully commenced trading on ASX

• • Company hit-the-ground-running with exploration plans - 41-hole drilling program completed at the Bobalong Kaolin Project in the Great Southern region of WA

• • Drilling designed to deliver a maiden JORC Mineral Resource estimate at the Bill's Middle target - samples currently being assayed with results to be released when available

• • Bobalong is Pinnacle's most advanced project with a Scoping Study in progress and preliminary design planning ready to commence

• • Based on initial observations from drilling, Pinnacle will recommence discussions with potential offtake partners for a DSO kaolin product from the Bobalong Project

Technology metals exploration and development company Pinnacle Minerals Ltd (ASX: PIM) (Pinnacle, the Company) is pleased to provide the following update on its activities for the quarter ending 31 March 2022.

Pinnacle Minerals is focused on delivering shareholder value via the systematic exploration and development of its portfolio of kaolin and halloysite prospective projects in Western Australia and South Australia (Figure 1). It is focused on delineating resources at its advanced Bobalong and Holly Kaolin Projects in WA, and the exploration of its strategically located White Knight and Camel Lake Projects in SA.

During the quarter, Pinnacle commenced trading on the ASX after completing a heavily oversubscribed $4.5 million Initial Public Offering (IPO). Following its successful ASX listing, the Company immediately commenced its targeted fieldwork programs, with resource definition-focused drilling at the Bobalong Kaolin Project.

OPERATIONS

Resource Definition-focused Drilling at Bobalong Kaolin Project

Pinnacle commenced drilling at the Bobalong Kaolin Project (E70/5347 and E70/5348) in the Great Southern region of Western Australia in March 2022 (ASX announcement, 28 March 2022).

The program focused on the priority Bill's Middle prospect at Bobalong where previous drilling by Pinnacle (prior to its ASX listing) delivered excellent results which indicated the potential for a high-value direct shipping ore (DSO) product.

A total of 41 auger drill holes were completed in the March 2022 program for approximately 369.5 metres (Figures 2 and 3). Samples have been sent for laboratory analysis, and results will be released when available.

Pinnacle Minerals Ltd	Issued Capital	Australian Registered Office	Directors
ACN: 655 033 677	36,375,000 Shares	283 Rokeby Road	WILLIAM WITHAM - Non-Executive Chairman
ASX: PIM	9,250,500 Options	SUBIACO WA 6008	ROBERT HODBY - Executive Director
T: + 61 8 9426 0666	LINCOLN LIU - Non-Executive Director
E:[e-mail]	STEPHEN ROSS - Non-Executive Director

Figure 1: Pinnacle Minerals Projects' Location Map

Drilling was designed to deliver sufficient results to confirm a maiden JORC Mineral Resource estimate at the Bill's Middle target. The program also sought to gain a deeper understanding of the geological structures at Bill's Middle, the relationship between the intrusive geological elements and the concentration of higher quality kaolin within the target area.

Based on initial observations from this drilling, Pinnacle has been encouraged to recommence discussions with potential offtake partners for a direct shipping ore (DSO) kaolin product from the Bobalong Project. The Company will provide further detailed commentary upon receipt and interpretation of the assay results.

The Bobalong Project is the Company's most advanced asset. It consists of two granted exploration licences (E70/5347 and E70/5348) covering 116.61km2 near the town of Tambellup in the Great Southern region of WA.

Drilling previously undertaken at the Bill's Middle and Tambellup East targets has shown the kaolin at Bobalong to exhibit exceptional quality of 38.3% Al2O3 and 45.9% SiO2, high whiteness, as well as high brightness of 80% to 85%; with a small particle size, high opacity and low impurities. Results achieved to date, indicate the potential for a high value product suitable for DSO export, via the deep-water port of Albany, 133km to the south.

Kaolin samples have already been tested at Intertek Genalysis in Australia and Wuhan University of Technology in China. The Company also plans to provide a bulk sample from the Project for product testing at both laboratories

Figure 2: Drill hole location plan at the Bill's Middle target at the Bobalong Kaolin Project

Next Steps and Value-Add Opportunities

Pinnacle is planning to use the initial findings from the drilling program at Bobalong to commence preliminary planning for potential operations at the Project. This planning will consider the Company's desire to pursue the highest ESG standards and the requirement to undertake sustainable development in keeping with the local agricultural industry, among other key considerations.

Pinnacle is currently awaiting a detailed analytical and commercial report on samples from previous drilling at the Bill's Middle target from the Wuhan University of Technology in China.

Initial indications suggest that the Bill's Middle kaolin may be amenable to calcination. The process of calcination involves the thermal treatment (heating kaolin to high temperatures in a largely oxygen-free environment) of kaolin to remove impurities and significantly improve the whiteness of kaolin, thereby significantly increasing its value.

Calcination can also convert kaolin into a calcined form of kaolin called metakaolin. Metakaolin is a high-value product that has the potential to replace some of the cement used in concrete, and deliver a stronger and lighter concrete product. The Company is commencing Research and Development into the potential qualities and uses of metakaolin from the Bobalong Project. Analytical work is also planned to be undertaken on the quartz silica component of the Project's kaolin ore. There is strong potential for this by-product of the Bobalong kaolin to deliver a quality silica product. The commercial-scale extraction of quartz silica from the Bobalong Project has the potential to deliver a valuable additional revenue stream from the Project to the Company.

Figure 3: Kaolin flake -0.030+0.020mm x2000 (above).

Drilling at Bobalong (top and left)

CORPORATE

Pinnacle Commences Trading on ASX after Successful $4.5m IPO

The Company commenced trading on ASX on 23 March 2022 after completing a heavily oversubscribed $4.5 million IPO. The Company believes the strong investor demand was a reflection of the major growth potential of PIM's portfolio of kaolin and halloysite exploration and development projects in WA and SA.

The IPO closed early after raising $4.5 million via the issue of 25.5 million shares at 20 cents each. PAC Partners acted as Lead Manager to the Offering. Pinnacle has a tight capital structure on listing with 36.375 million shares on issue, and an enterprise value of just $2.475 million and a market capitalisation of $7.275 million.

The proceeds of the IPO will be used to aggressively execute the Company's targeted exploration and development plans across its project portfolio.

The Bobalong Project in the most advanced asset, where drilling and a scoping study have previously been completed at the Bill's Middle and Tambellup East targets. Pinnacle has applied for an additional exploration licence to the ground north of Bill's Middle. The Holly Project is located in close proximity to Bobalong in the Great Southern region of WA, and consists of two granted exploration licence covering 268km2. The Company has commenced access discussions and targeted drilling is planned upon completion of land access agreements.

Robert Hodby	Media and Investor Inquiries
Executive Director	James Moses
Pinnacle Minerals Limited	Mandate Corporate
T: + 61 8 9426 0666	[phone]
E:[e-mail]	E:[e-mail]
About Pinnacle Minerals

The White Knight and Camel Lake Projects are early-stage exploration projects, strategically located adjacent to Andromeda Metals' (ASX: ADN) high-grade kaolin-halloysite discoveries in SA. Extensive kaolin has been recorded at both projects but is yet to be followed up, which provides an excellent exploration opportunity for PIM.

Pinnacle maintained a strong cash position at quarter's end, with a cash balance of $4.54 million.

This announcement has been authorised for release by the Board of Pinnacle Minerals Ltd.

For further information, please contact:

Pinnacle Minerals Ltd (ASX: PIM) is an ASX listed technology metals company focused on delivering shareholder value via the systematic exploration and development of its portfolio of kaolin and halloysite prospective projects in Western Australia and South Australia. The Company is focused on delineating resources at its advanced Bobalong and Holly Kaolin Projects in the Great Southern region of Western Australia. Drilling and a scoping study have been completed at Bobalong, with results indicating the potential for a high value direct shipping ore (DSO) product. The White Knight and Camel Lake Projects are strategically located adjacent to Andromeda Metals' (ASX: ADN) high-grade kaolin-halloysite discoveries in South Australia. Pinnacle is focused on the exploration and evaluation of the kaolin and halloysite potential of these projects.

Competent person statement

The information in this announcement that relates to Exploration Targets, Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by William Witham, a Competent Person who is a Member of The Australian Institute of Geoscientists (AIG). William Witham is a director of Pinnacle Minerals Ltd. William Witham has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. William Witham consents to the inclusion in the presentation of the matters based on his information in the form and context in which it appears.

Forward Looking Statements

This announcement contains 'forward-looking information' that is based on the Company's expectations, estimates and projections as of the date on which the statements were made. This forward-looking information includes, among other things, statements with respect to the Company's business strategy, plans, development, objectives, performance, outlook, growth, cash flow, projections, targets and expectations, mineral reserves and resources, results of exploration and related expenses. Generally, this forward-looking information can be identified by the use of forward-looking terminology such as 'outlook', 'anticipate', 'project', 'target', 'potential', 'likely', 'believe', 'estimate', 'expect', 'intend', 'may', 'would', 'could', 'should', 'scheduled', 'will', 'plan', 'forecast', 'evolve' and similar expressions. Persons reading this announcement are cautioned that such statements are only predictions, and that the Company's actual future results or performance may be materially different. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the Company's actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information.