Sipa Resources : Skeleton Rocks Drilling to Commence Shortly

ASX Announcement

14 February 2022

For personal use only

Skeleton Rocks Drilling to Commence Shortly

Key highlights:

• Existing drill targets refined by recent auger soils program
• Imminent aircore drilling of untested greenstones along a major structure in WA's Goldfields
• EIS funding to reduce drilling costs significantly

Sipa Resources Limited (ASX: SRI) ("Sipa" or "the Company") is pleased to announce it has received positive results from a recent auger soil sampling program at its 100% owned Skeleton Rocks Project in the Western Australian Goldfields (Figure 1). Drill testing of the key targets will commence at Skeleton Rocks later this week.

Figure 1: Sipa's Skeleton Rocks Project and nearby tenement holders in the heart of WA's Goldfields region.

Unit 5, 12-20 Railway Rd Subiaco 6008 Western Australia	ASX:SRI
ABN 26 009 448 980 Phone: [phone] Email: [e-mail]
www.sipa.com.au	Page 1 of 9

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The auger program was conducted by Sipa in late January, and the results will enable the Company to concentrate its drilling in the most prospective areas. Initial drill targeting was based upon a review and interpretation of the detailed aeromagnetic survey completed by Sipa (e.g., ASX: SRI 29 March 2021), which indicated the presence of untested greenstones along a major structure (Figure 2). The interpreted zone of newly identified greenstone is mapped as sub-parallel to the highly mineralised Southern Cross greenstone belt hosting significant gold and lithium deposits, and immediately adjacent to a major structure, the Koolanooka Fault (Figures 1 and 2).

Figure 2: Key target areas at Skeleton Rocks chosen for first pass drilling where the interpreted greenstone

sequences (green) are thickened by folding (e.g., A) or terminate against a major structure (e.g., B).

Managing Director, Pip Darvall said,

"This work has better defined the key targets to be tested at Skeleton Rocks, and confirmed our previous interpretations of buried greenstone units in a highly prospective setting. We are excited to see the results from our imminent drill program, and appreciate the support of the WA Government's Exploration Incentive Scheme which will significantly reduce the costs to complete it."

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Unit 5, 12-20 Railway Rd Subiaco 6008 Western Australia

ABN 26 009 448 980 Phone: [phone] Email: [e-mail]

www.sipa.com.au

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Portable XRF (pXRF) analysis of the auger samples highlighted zones of elevated copper-nickel- cobalt coincident with greenstones interpreted from detailed aeromagnetics (Figure 3). Auger sampling was used to ensure the samples were collected from a soil horizon as close as possible to bedrock, and below a persistent hardpan that has previously inhibited effective surface sampling in the area. These results provide strong support for the presence of greenstones and/or mafic intrusive lithologies and areas of focus for drill testing (Figure 2).

A program of approximately 4,000m of aircore (hammer) drilling will commence this week to sample the basement rocks across the initial target areas, where no previous drilling is known to have occurred. As previously advised, Sipa successfully applied for Exploration Incentive Scheme (EIS) funding for the drill program (ASX: SRI 28 October 2021), and the EIS grant will reduce the direct costs to Sipa of the planned drilling by up to $128,750.

Competent Person's Statement

The information in this report that relates to Exploration Results is based on, and fairly represents, information and supporting documentation compiled by Mr Pip Darvall, a Member of the Australian Institute of Geoscientists. Mr Darvall is a full-time employee of Sipa Resources Limited, and has sufficient experience relevant to the styles of mineralisation and types of deposit under consideration and to the activities 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'. Mr Darvall consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.

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Unit 5, 12-20 Railway Rd Subiaco 6008 Western Australia

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Figure 3: 'Heat' maps showing elevated coincident nickel and copper results from auger sampling over an interpreted greenstone belt that will be targeted in the upcoming drill program. The background image is detailed magnetics from Sipa's 2021 program.

Page 4 of 9

Unit 5, 12-20 Railway Rd Subiaco 6008 Western Australia

ABN 26 009 448 980 Phone: [phone] Email: [e-mail]

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About Sipa

For personal use only

Sipa Resources Limited (ASX: SRI) is an Australian-based exploration company focused on the discovery of gold and base metal deposits primarily in Western Australia. The Paterson North Copper- Gold Project is being progressed in partnership with Rio Tinto Exploration, and the Barbwire Terrace Base Metals Project involves an innovative joint venture with petroleum explorer and operator Buru Energy Limited.

At Wolfe Basin, extensive base metal anomalism and gossans have provided several targets for drill testing along a prospective horizon over 40km long. The Warralong Project is prospective for intrusion hosted gold, lithium-tin-tantalum and nickel-copper in the north Pilbara region in a 'look-alike' structural setting to recent discoveries in the district.

The Skeleton Rocks project covers outcropping and interpreted greenstone units prospective for gold, lithium and nickel-copper-platinum group element (Ni-Cu-PGE) deposits with limited to no drilling ever completed in these areas. The 100%-owned Uganda Base Metals Project contains an intrusive-hostedNi-Cu sulphide discovery with significant scale potential, and Sipa is currently seeking a new partner to fund further exploration at this location.

This announcement has been authorised for release by the Board of Sipa Resources Limited.

More Information:

Pip Darvall, Managing Director	Victoria Humphries, Investor and Media Inquiries
Sipa Resources Limited	NWR Communications

[phone]	[phone]
[e-mail]	[e-mail]

Page 5 of 9

Unit 5, 12-20 Railway Rd Subiaco 6008 Western Australia

ABN 26 009 448 980 Phone: [phone] Email: [e-mail]

www.sipa.com.au