Strategic Energy Resources : March 2022 Quarterly Activities & Cashflow Reports

For personal use only

ASX ANNOUNCEMENT

28 April 2022

MARCH 2022 QUARTERLY ACTIVITIES REPORT

HIGHLIGHTS

• • Landholder access granted at Isa North with drilling planned for mid-year

• • Results imminent from "UltraFine+" geochemistry over the Achilles Copper-Gold Prospect, South Cobar

• • Canobie Ni-Cu District: airborne gravity survey complete and under review, infill ground gravity survey set to commence

Strategic Energy Resources Ltd (ASX Code: SER) is a specialised undercover mineral explorer and project generator focused on discovery in greenfield frontiers of Australia

Figure 1: SER Project Locations

strategicenergy.com.au

Level 4, 100 Albert Road, South Melbourne VIC 3205

ACN: 051 212 429

For personal use only

ISA NORTH PROJECT

QUEENSLAND (SER 100%)

• • Land access agreement now signed

• • Geophysical modelling and historic core review complete, priority targets identified

• • Neighbouring drilling confirms copper prospectivity

In May 2021, SER acquired the Isa North Project from Newcrest Mining (ASX:NCM). The Isa North project hosts multiple favourable geological characteristics considered prospective for Iron Oxide Copper-Gold (IOCG) mineralisation including: a major mineralised fault zone, evidence of extensive hydrothermal alteration undercover, and numerous significant untested magnetic and gravity anomalies. Upon transfer, SER began a detailed geophysical review of the project area, and a review of historical core at Lorraine North & South, Augustus and Neumayer target areas (Figure 2) while progressing landholder negotiations.

Figure 2: SER's Isa North Project over RTP magnetics indicating the location of target areas (black rectangles), previous drill holes (yellow) and the Red Metal-Oz Minerals Gibson's Tank Project (cyan drill holes)

strategicenergy.com.au

Level 4, 100 Albert Road, South Melbourne VIC 3205

ACN: 051 212 429

For personal use only

During the quarter, SER successfully negotiated a landholder access agreement with Nardoo Station - allowing SER to drill previously inaccessible compelling Cu-Au targets. SER has now designed a diamond drill program on Nardoo station focusing on further testing of the Lorraine North Prospect and initial testing of the Nardoo Prospect. At Lorraine North, targets have been identified surrounding a 'near miss' drillhole which contained elevated IOCG style geochemistry, whilst key magnetic features have been identified for initial testing at the Nardoo Prospect. Native Title clearances have been initiated with plans for drilling mid-year.

The prospectivity of Isa North was corroborated in January this year following the release of drill results from the nearby "Gibson's Tank Project" which forms part of the Red Metal (ASX:RDM) - Oz

Minerals (ASX:OZL) Alliance. The project area adjoins the northern end of the Isa North project where basement is interpreted to be deeper than SER's ground. Drill hole GTK2101, which was drilled on a combined high magnetic and high gravity target, intersected 44.4m of hydrothermal ironstone and breccia within a deformed felsic volcanic sequence. The ironstone was shown to contain disseminated copper sulphides that returned copper assay values ranging from 0.008% to 0.34% (see RDM announcement January 2022).

SOUTH COBAR

NEW SOUTH WALES (SER 100%)

• • SER awarded NSW Government funding to drill Achilles Cu-Au target at South Cobar

• • Next generation "Ultrafine+" geochemistry results imminent

• • SER granted prized exploration ground in Macquarie Arc, Parkes Fault Zone, Cobar Basin and Curnamona Province

Last quarter SER was awarded a NSW Government Cooperative Drilling grant to support diamond drilling activities at the Achilles 1 Prospect within our South Cobar project (EL9012). The tenement surrounds the existing undeveloped volcanic-hosted massive sulfide (VHMS) mineralisation at Brown's Reef (Pb-Zn-Cu-Ag-Au) held by Eastern Metals (ASX:EMS); and covers a number of underexplored structural corridors and historical mineral occurrences in a fertile stratigraphic sequence of the Cobar Supergroup.

Recent drilling at Browns Reef by Eastern Metals extended the polymetallic lode along strike and at depth from high-grade intersections previously drilled by Kidman Resources (see EMS Announcement April 2022). Australian Gold and Copper (ASX:AGC) have also reported broad copper zones intersected as part of a twelve hole RC program at the Achilles 2 and 3 Prospects, which lie along the Achilles shear which hosts SER's Achilles 1. AGC drillhole A3RC014 intersected 85m at 0.13% Cu from 165m including 1m at 0.53% from 215m (see AGC announcement September 2022).

SER has planned a five hole, 1700m diamond drilling program at Achilles 1 ranging in depth from 250m to 400m to test for Cobar-style Cu-Au mineralisation associated with the Achilles shear. The drill program is eligible for reimbursement of 50% of direct drilling costs and is anticipated to commence in the third quarter.

strategicenergy.com.au

Level 4, 100 Albert Road, South Melbourne VIC 3205

ACN: 051 212 429

For personal use only

Prior to final drill preparations, SER completed a 250-sample, 400m x 200m spaced CSIRO Ultrafine+TM next gen analytics soil geochemical survey over a 4km x 4km area surrounding the Achilles 1 Prospect. The results will be available in the coming quarter and will be used to further refine the planned drill program and identify any additional geochemical anomalies.

During the quarter, exploration licences applications were granted for five new, highly prospective areas as part of the NSW Department's 2021 competitive expression of interest process. These tenements cover a crustal-scale conductivity anomaly north of Broken Hill with the Curnamona Province1, expand our existing tenement footprints in the Cowal Igneous Complex and southern Cobar Basin; along with an untested length of the orogenic-gold rich Parkes Fault Zone south of Forbes (Figure's 3 & 4). A detailed description of each area is provided in SER's announcement of 17 January 2022.

Figure 3: Location of the South Cobar Project and new exploration licence applications

1 Kay, B., Heison, G., Brand, K. 2022. Crustal magnetotelluric imaging of a Paleoproterozoic graphitic suture zone, Curnamona Province, Australia, Gondwana Research 106, 1-14

strategicenergy.com.au

Level 4, 100 Albert Road, South Melbourne VIC 3205

ACN: 051 212 429

For personal use only

Figure 4: The location of SER's Mundi Project within the Curnamona Province

strategicenergy.com.au

Level 4, 100 Albert Road, South Melbourne VIC 3205

ACN: 051 212 429