Stavely Minerals : High-Grade Gold Results at Toora West

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ASX ANNOUNCEMENT

24 March 2022

Stavely Copper-Gold Project - Toora West Prospect Update

Toora West Porphyry Copper-Moly Prospect Surprises

with High-Grade Gold Results

Outstanding high-grade gold assays of 8.72g/t and 4.27g/t in diamond drilling

• Significant results received from follow-up diamond drilling at the Toora West porphyry copper-moly-gold prospect, which is at an early stage of exploration evaluation.
• Diamond drill hole STWD005 intersected two high-grade gold zones including:

• • 0.6m @ 4.27g/t Au, 0.31% Cu, 2.6g/t Ag and 130ppm Mo from 274.2m, and
  • 0.6m @ 8.72g/t Au, 1.85% Cu, 5.2g/t Ag & 151ppm Mo from 286.7m.
• The high-grade gold results appear to be associated with the copper sulphide mineral tetrahedrite, reflecting a late, cooler temperature overprint on the earlier copper-molybdenum mineralisation.
• Drill hole STWD006 (the northernmost diamond drill hole) intersected an interval of low-grade copper anomalism, terminated by a fault, including:
• • 27m @ 0.15% Cu from 112m down-hole.
• Drill hole STWD007 intersected an interval of silver mineralisation near-surface and deeper intervals of copper and molybdenum mineralisation:
• • 16m @ 16g/t Ag from 52m, including:
  • • 1m @ 150g/t Ag from 65m
  • 27m at 0.14% Cu from 268m
  • 2m @ 0.24% Cu, 0.19 g/t Au, 1.8g/t Ag & 103ppm Mo from 335m
  • 1m @ 0.19% Mo from 477m
  • 1m @ 0.13% Mo from 495m
• Importantly, the high-tenor copper sulphide bornite has also been observed in drill core from drill hole STWD007.
• A recently completed drone magnetic survey has identified a porphyry target just north of drill hole STWD006 (the northernmost diamond drill hole) displaying a central magnetic high surrounded by a magnetic low annulus coincident with potassic alteration noted in recently completed aircore drill holes - assays pending.
  This represents a compelling porphyry target that will be tested with diamond drilling at the earliest opportunity, subject to access and weather conditions.

ASX Code: SVY	Head Office
Shar es on issue: 2 61M	168 Stirling Hwy
Mark et ca pit alisa tio n : $ 109M	Nedlands, Wester n Australia 6009
Cash: $ 8 . 9M (31 December 2021)	T: [phone]
ABN 33 119 826 907	E: info@stavely . com . au W: stavely . com . au

ASX Announcement 24 March 2022

For personal use only

Stavely Minerals Limited (ASX Code: SVY - "Stavely Minerals") is pleased to report significant results from recently completed follow-up diamond drilling at the Toora West porphyry prospect, part of its 100%-ownedStavely Copper-GoldProject in western Victoria (Figure 1).

Drilling of three diamond drill holes commenced at the Toora West prospect in early December 2021 and was completed in early January 2022 (Figure 2) and was in follow-up to previously announced aircore drilling results (see ASX announcements 11 May 2021 and 7 July 2021).

Drilling has confirmed the presence of porphyry-style copper and molybdenum mineralisation as well as a later phase of unexpected high-grade gold mineralisation associated with the copper sulphide tetrahedrite (Photos 2, 3 & 4).

Diamond drill hole STWD005 (Figure 3) has intersected two high-grade gold zones including:

• 0.6m @ 4.27g/t Au, 0.31% Cu, 2.6g/t Ag and 130ppm Mo from 274.2m, and
• 0.6m @ 8.72g/t Au, 1.85% Cu, 5.2g/t Ag & 151ppm Mo from 286.7m

Figure 1. Stavely Project location map.

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ASX Announcement 24 March 2022

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For	Figure 2. Toora West drill collar plan on recently acquired drone magnetic image.

Drill hole STWD006 intersected an interval of low-grade copper anomalism including:

• 27m @ 0.15% Cu from 112m

The copper intersection in STWD006 (Figure 4 and Photo 6) - the northernmost diamond drill hole - was hosted in a porphyritic microdiorite and was terminated by a steeply south-west dipping structure. Immediately above the copper intersection, a porphyritic tonalite unit displayed characteristic unidirectional solidification textures (Photo 5), otherwise known as 'brain rock',

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ASX Announcement 24 March 2022

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indicating silica saturated melt at the top of a porphyry intrusion exsolved quartz veins with no preferred orientation or stress direction.

This texture is often observed at the frozen top of a porphyry intrusion, suggesting that drilling is in the upper portions of the Toora West porphyry system. Photos of selected mineralised drill core from STWD006 are shown in Photos 5 to 9.

Drill hole STWD007 intersected an interval of silver mineralisation near-surface and deeper narrow intervals of copper and molybdenum mineralisation:

• 16m @ 16g/t Ag from 52m down-hole, including
• • 1m @ 150g/t Ag from 65m
• 27m at 0.14% Cu from 268m
• 2m @ 0.24% Cu, 0.19 g/t Au, 1.8g/t Ag & 103 ppm Mo from 335m
• 1m @ 0.19% Mo from 477m
• 1m @ 0.13% Mo from 495m

Importantly, in STWD007 the high-tenor copper sulphide mineral bornite was observed with pyrite and chalcopyrite in a porphyry quartz vein (Photo 12). Photos of selected mineralised drill core from STWD007 are shown in Photos 10 to 12.

Subsequent to the completion of the diamond drill holes STWD005-007 in early January, a high- resolution drone magnetic survey was completed, along with additional aircore drilling. A local ground gravity survey is also in-progress. Assays for the aircore drilling are pending.

The new drone magnetic survey demonstrates a significant improvement in resolution compared to the wide-spaced government aeromagnetic data (Figure 2).

Geological logging of previous and recently completed aircore drilling has identified a potassic alteration zone, characterised by potassium feldspar alteration selvedges on quartz veins (eg Photo

1. in the north of the Toora West prospect, coincident with a magnetic high with a surrounding magnetic low annulus located just north of hole STWD006 (Figure 6).

This is a very compelling porphyry target that will be diamond drill tested at the earliest opportunity subject to access consent, weather and ground conditions.

A petrology report completed by Dr Paul Ashley on selected samples from the Toora West porphyry prospect is available on the Technical Data tab at www.stavely.com.au/technical-data.

Stavely Minerals' Chair and Managing Director, Mr Chris Cairns, said:

"While the Toora West porphyry prospect is at an early stage of reconnaissance exploration, we are excited by what our recent drilling and geophysical programs have revealed. It is a real positive that our regional targeting methodology has been so successful in identifying 'blind' targets under basalt and transported cover with a success rate of around 80% to date.

"The key attributes that are providing encouragement to vector into a shallow porphyry target include potassic alteration in the form of secondary biotite (a potassium-rich mica) and potassium feldspar alteration on the margin of porphyry-stylequartz-sulphide veins. The sulphide assemblage includes pyrite, molybdenite, chalcopyrite and bornite mineralisation. It is also very pleasing that the system demonstrates potential for high-grade gold as a late mineralisation phase.

"Additionally, the unidirectional solidification textures noted in drill core indicate we are at the top of a porphyry system. This suggests that we are not looking at a porphyry target that is at a kilometre depth, it is likely much closer to surface.

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ASX Announcement 24 March 2022

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"A recently completed drone magnetic survey has highlighted a distinct magnetic high with a concentric magnetic low annulus in an area where recently completed aircore drill holes are logged as displaying potassic alteration. The magnetic feature in combination with the potassic alteration presents a very compelling drill target."

Figure 3. STWD005 drill section.

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