Stavely Minerals : Quarterly Activities Report

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Quarterly Report December 2021

HIGHLIGHTS

Exploration

Thursday's Gossan Copper-Gold Prospect (Stavely Project, Western Victoria)

• Mineral Resource definition drilling re-commenced targeting the south-eastern extension of the Cayley Lode deposit on 1 December, with four rigs being deployed.
• Deep diamond drill hole SMD114 returned:

1. 12m at 1.43% Cu, 0.23g/t Au and 7.4g/t Ag from 830m down-hole, including
2. • 2m at 4.98% Cu, 0.61g/t Au and 25g/t Ag from 839m

Regional Exploration (Stavely & Yarram Park Projects, Western Victoria)

• Diamond drilling at the Toora West porphyry prospect encountered porphyry intrusive phases with disseminated pyrite and quartz veins with pyrite, chalcopyrite and molybdenite mineralisation.
• Air-coredrilling at the S29, S41, Muirhead and Yarram Gap prospects identified porphyry/intrusive phases associated with argillic/phyllic alteration, quartz veining and sulphide mineralisation. Drilling at the Yarram Gap prospect also identified chalcopyrite in silica altered gabbro.
• Soil auger sampling commenced in October with 266 samples collected over grazing paddocks at the Thursday's Gossan (SW), Mount Stavely, Mount Stavely East, Fairview, Pollockdale,
  Highway and the Southern Intrusion prospects.

Corporate

• Stavely Minerals had a total of $8.9M cash on hand at the end of the December 2021 Quarter.

ASX Code: SVY	Head Office
S h a r e s o n i s s u e : 2 6 1 M	1 6 8 S t i r l i n g H w y
M a r k e t c a p i t a l i s a t i o n : $ 1 3 0 M	N e d l a n d s , W e s t e r n A u s t r a l i a 6 0 0 9
C a s h : $ 8 . 9 M ( 3 1 D e c e m b e r 2 0 2 1 )	T : + 6 1 8 9 2 8 7 7 6 3 0
A B N 3 3 1 1 9 8 2 6 9 0 7	E : i n f o @ s t a v e l y . c o m . a u W : s t a v e l y . c o m . a u

Quarterly Report December 2021

For personal use only

OVERVIEW

The final stage of the Mineral Resource drill-out on the Cayley Lode mineralisation commenced towards the end of the December Quarter and is expected to be completed in the next Quarter. This will allow Stavely Minerals to achieve its objective of posting a maiden Mineral Resource Estimate for the Cayley Lode as the basis for a Scoping Study.

Stavely's field team has experienced two COVID-19 infections and the realistic expectation is that all personnel, including the drillers and drill crew will, at some point over the coming months, be exposed to the virus. While the impact on work programs to date has been minor, it is realistic to assume that Stavely and contractor personnel availability for work will be affected and this may in turn affect the timing of our work programs. Further risk to our timing also hinges on our reliance on Perth-based analytical laboratories and how the virus affects the operations of this aspect of our information flow once the Western Australian border controls are relaxed.

During the Quarter, a major new regional exploration initiative was launched across the Company's 100%-owned Stavely Copper-Gold Project and the Black Range Joint Venture tenement in western Victoria (Figure 1).

The recently completed diamond drilling at the Toora West porphyry prospect provided excellent visual encouragement of the presence of porphyritic host-units with disseminated pyrite and porphyry-stylequartz-pyrite ± chalcopyrite veins and a separate phase of quartz-molybdenite veins.

Some potassic-style alteration has been observed but the observed alteration is not as intense as would be expected in the potassic core and would be characterised as phyllic to propylitic - so drilling has not yet intersected the hotter, well-mineralised core that is being targeted. However, it is very early days at this prospect.

The Company is excited that the under-cover targeting methodology developed by the on-site team is proving to be very effective, with 80% of the regional 'blind' under-cover targets tested to date being intrusions/porphyry phases with associated alteration and sulphide mineralisation - mostly pyrite but also with some chalcopyrite noted at the Yarram Gap prospect.

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Quarterly Report December 2021

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Figure 1. Western Victoria Project location plan.

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Quarterly Report December 2021

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EXPLORATION

Stavely Project (RL2017 & EL6870)

Thursday's Gossan Prospect - Cayley Lode

The intensive Mineral Resource drill-out resumed on 1 December, with the focus on extending the deposit to the south of the railway line where an access agreement has been executed. Diamond drill holes SMD164, SMD165 and SMD166 were completed during the Quarter (Figure 2 & 3).

During the Quarter, assay results were received for all drill holes up to SMD163. Significant intercepts for all drill holes received are presented in the Cayley Lode Intercept Table.

Deep Porphyry Drill Hole SMD114

SMD114 was drilled along the trace of the northern seismic section shot in late 2020. While the drill hole did not intersect the deep porphyry target, it did return an interval of mineralisation characterised by Dr Greg Corbett as porphyry G veins - a distal expression of porphyry wall-rock mineralisation.

A comprehensive description of SMD114 is contained in Dr Corbett's latest report that can be found under the Technical Data page on the Stavely Minerals' website at www.stavely.com.au.

SMD114 intersected 12m at 1.43% Cu, 0.23g/t Au and 7.4g/t Ag from 830m down-hole (Figure 4), including:

1. 2m at 4.98% Cu, 0.61g/t Au and 25g/t Ag from 839m

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Quarterly Report December 2021

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Figure 2. Thursday's Gossan - Cayley Lode drill collar location plan.

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