SensOre : Quarterly Activities Report to 31 March 2022

26 April 2022

ASX: S3N

QUARTERLY ACTIVITIES REPORT TO 31 MARCH 2022

SensOre (ASX: S3N) aims to become the top performing global minerals targeting company through deployment of big data, artificial intelligence (AI)/machine learning technologies and geoscience expertise. AI-targets are leveraged through SensOre's three business divisions: Technology, Services & Exploration.

KEY POINTS

• • Major technology platform development project commenced in partnership with CGI and Intrepid Geophysics to unlock value from SensOre's Data Cube and increase client engagements

• • Client engagement milestones reached:

  −

  South Australia prospectivity mapping advanced towards completion (clients: Barton Gold, Hillgrove Resources, Argonaut Resources and Aroha Ltd)

  • − Barton Gold commissioned for gold and copper DPT® in South Australia

  • − Deutsche Rohstoff AG joint-venture for lithium exploration

  • − BHP third and final iteration of nickel joint targeting agreement delivered

• • Multiple exploration campaigns commenced at SensOre's WA projects:

  −

  Mt Magnet North - diamond drilling completed, successfully identifying interpreted mineralised zone at depth, assays expected in late-April

  − Balagundi - results confirmed gold anomalism across large sections of the test area − Boodanoo - first-pass air core drilling completed, assays expected in Q2 CY22

• • IPO completed, raising ~$7.5million (before costs) with ASX trading commencing 11 February 2022

Figure 1: SensOre drilling at Desdemona North, 2021. Image by Redcat.media Pty Ltd

SensOre Ltd.

Level 3, 10 Queen Street Melbourne VIC 3000 | t: [phone]

ABN 16 637 198 531

Unit 6, 7 Tully Road East Perth WA 6004 | t: [phone]sensore.com |[e-mail]

sensore-ltd@OreSens

TECHNOLOGY

SensOre's technology applies advances in AI and machine learning to large geoscience datasets to increase discovery rates, reduce exploration costs and minimise the environmental footprint of exploration.

TECHNOLOGY PLATFORM DEVELOPMENT

As announced on 23 March 2022, SensOre signed an agreement with CGI/Unico to expand SensOre's current client services to a cloud-based SaaS (software as a service) product. The contract is an important step in SensOre's technology development roadmap. SensOre's existing proprietary AI-enhanced technology is designed to advance the way companies integrate, interrogate and analyse geoscience data increasing the potential for mineral discovery. It is envisaged that development and deployment of the proprietary platform will open the door to scale the Company's products and expand SensOre's capacity to service mineral exploration companies in Australia and overseas, while reducing the Company's unit cost per engagement. The project will involve using SensOre's AI-driven technology to create a digital twin of the Earth's surface, enhancing the way exploration companies identify and analyse mineral exploration targets with a focus on optimising the decision-making process in targeting.

Figure 2: Proposed AI-enabled SaaS platform for precision exploration services

AUSTRALIA-WIDE DATA CUBE

SensOre's development of its Australia-wide Data Cube progressed, focusing on expanding South Australian geographic and commodity coverage through activities associated with the previously announced SA prospectivity mapping project. Near-term completion of the SA prospectivity mapping project is important to meeting the Company's geographical growth objectives and expansion into other base metals such as copper, whilst also adding valuable new geophysical data sets to the Company's Data Cube.

VICTORIA PILOT PROJECT

During the quarter, SensOre commenced a pilot project for Victoria, targeting gold with alliance partner Intrepid Geophysics. The collaboration aims to expand SensOre's geophysical targeting capabilities in 'under cover' exploration areas and recognises Intrepid Geophysics' leading position in data and analytics in this field over several decades.

Figure 3: Proposed pilot project areas, Victoria, Australia

SERVICES

SensOre works with several exploration and mining companies to offer AI-enhanced products and services. In doing so, SensOre aims to renew exploration pipelines and optimise exploration and discovery for its clients and partners.

BARTON GOLD PARTNERSHIP

SensOre signed a term sheet with Barton Gold Holdings Limited (ASX: BGD) (Barton Gold) to adapt and refine SensOre's AI and machine learning DPT® technology to a portion of the Gawler Craton in South Australia surrounding Barton Gold's assets. The agreement is worth up to $400,000 in co-funding to add data to the Company's SA data cube in the area surrounding Barton Gold's tenements. SensOre will also be entitled to additional royalty fees linked to gold ounces produced (or copper equivalent).

DEUTSCHE ROHSTOFF JLE VENTURE

SensOre agreed terms with Deutsche Rohstoff AG on the identification, acquisition and exploration of SensOre generated lithium targets in Western Australia (JLE Venture). SensOre stands to benefit from Deutsche Rohstoff as a partner through agreed targeting, acquisition and geological consulting fees for a minimum of eight accepted lithium targets, worth $125,000 per target for a total of $1 million. The Company will hold an initial participating interest of 30%, with Deutsche Rohstoff holding the balance. A preliminary budget of $4 million has been agreed to fund exploration activity ($2.8 million contributed by Deutsche Rohstoff and $1.2 million by SensOre).

BHP JTA

SensOre completed a further Phase 3 nickel iteration under an existing Joint Targeting Agreement (JTA) with BHP. Executed in September 2020, the JTA, which focused on nickel targeting within a pre-defined search space, was SensOre's first major client agreement. The iteration completed during the quarter was the third Phase 3 iteration. Under the agreement, SensOre benefits from fees and success-based payments on certain events occurring.

EXPLORATION

SensOre has built a tenement portfolio of wholly-owned and joint ventured SensOre Group projects in Western Australia. SensOre adopts a 'project generator' model, acquiring and exploring multiple targets and, where required, amplifying its reach by sharing exploration costs through joint ventures.1

SAFETY AND ENVIRONMENT

SensOre conducted exploration activity with no reportable incidents in the quarter. External reviews of safety policies and procedures commenced during the quarter and are expected to be completed in Q3 CY22.

MT MAGNET NORTH

Recently completed diamond tail drilling (202m) at Mt Magnet North, shown in Figure 4:

• • confirmed structural continuity of a sulphide-bearing shear zone at depth below mineralisation identified in 2020/21 air core and RC drilling; and

• • evidenced a 10-20m wide sulphide-bearing shear zone hosted in altered sediment, basalt and intermediate intrusive sequence commencing at 200m (downhole).

Gold and multielement assay results are anticipated in April. For further information see SensOre's announcement dated 17 February 2022.

Figure 4: Mt Magnet North project geology, 2020 and 2021 drilling and location of diamond drill tail

1 The Company's wholly owned and joint venture tenements remain in good standing at quarter-end. Other than as outlined in this announcement, SensOre has not acquired or disposed of any tenements during the quarter and beneficial interests held by the SensOre Group in its tenements has not changed. Further details regarding SensOre Group tenements, including project locations, are set out in Annexure 1. Refer to the Independent Technical Assessment Report (ITAR) (Appendix A to the SensOre Prospectus released by ASX on 9 February 2022) for further SensOre Group project information. Other than as announced to the ASX in relation to Balagundi

(14 February 2022), SensOre confirms that it is not aware of any new information or data that materially affects the SensOre Group project information included in the ITAR.

BALAGUNDI

SensOre received results in February from a first-pass, eight hole RC drilling program completed at Balagundi in November 2021. The drilling program was designed to test two interpreted structural trends, Balagundi to the north-east and Homeward Bound to the south-west. The program revealed gold anomalism in the central target area with best results from 21BGRC004 which returned 34m @ 0.54g/t Au from 96m, including:

• • 1m @ 5.4g/t Au from 96m

• • 2m @ 3.6g/t Au from 114m in a zone of 16m @ 0.8g/t Au from 114m

• • 1m @ 2.5g/t Au from 127m (reported in the 16m @ 0.8g/t Au above)

An air core program designed to test the project area more comprehensively is scheduled for Q2 CY22. For further information see SensOre's announcement dated 14 February 2022.

BOODANOO

The Company completed an air core program at Boodanoo during the quarter. Located 450km northeast of Perth and 75km southeast of Mount Magnet, Boodanoo is an early-stage, highly ranked AI-target located on a major structure in an area previously unrecognised for its gold potential. Gold and multielement assay results are expected in Q2 CY22.

NORTH DARLOT

Late in the quarter the Company completed an air core program at North Darlot. The project is located 975km northeast of Perth and 25 km north of Red 5's 4.0 Moz Darlot-Centenary Deposits in the Yandal region of the Yilgarn Block in Western Australia. North Darlot is an early-stage, AI-target located between two major known gold fertile structures. Gold and multielement assay results are expected in Q3 CY22.

OTHER TARGETS

Eaglehawk (Tea Well JV)

An air core drilling program of approximately 80 holes for a total of 5,000m is planned to test the Eaglehawk prospect, located along strike from Great Boulder Resources' (ASX: GBR) Mulga Bill prospect (Side Well prospect). Drill planning follows a gravity survey data sharing exercise between SensOre and GBR undertaken in August 2021. Drilling is expected to commence in Q2 CY22.

Desdemona North

Geochronological age determination results were received during the quarter. Although difficulties in obtaining sufficient zircon samples for effective dating were encountered, one sample showed a bimodal distribution suggesting contamination of older rocks, interpreted as melt having passed through the older Gwalia stratigraphy. The Gwalia stratigraphy hosts major current and historic mining operations and the presence of the Gwalia stratigraphy at depth opens up new exploration potential to the north of the Desdemona North tenements.

Marloo

During the quarter, the SensOre Group signed a farm-in agreement with Lefroy Exploration (ASX: LEX) subsidiary Monger Exploration Pty Ltd (MEX), to earn up to a 70% interest in the Marloo project (E15/1498) by expending $800,000 over four years. SensOre provided notice of satisfaction of conditions precedent to MEX shortly after quarter end.

The Marloo tenement is a small area adjacent to SensOre's Maynards Dam project. A combined air core/slimline RC drilling program at Marloo and Maynards Dam is planned in Q2 CY22.