Suvo Strategic Minerals : Proposed Acquisition - White Hill High Grade Silica Sand

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20 January 2022

ASX ANNOUNCEMENT

Proposed Acquisition

White Hill High Grade Silica Sand

Project

• Proposed tenement purchase for 100% of exploration license application E70/4981, located in the Muchea region of Western Australia
• Highly prospective for high purity silica sand
• Located 50km North of Perth, comprising 16 blocks and ~4,700 Hectares (47km2)
• White Hill provides Suvo the potential to explore for high quality silica sand, targeting different end user markets to the Company's existing portfolio of assets
• E70/4981 shares the western boundary of VRX Silica' (ASX: VRX) Muchea silica sand project
• Strategically located next to the Brand Highway, with existing rail cart logistics in place and direct access to Kwinana bulk terminal

SUVO STRATEGIC MINERALS LIMITED

ABN: 97 140 316 463

CORPORATE DETAILS:

ASX: SUV

DIRECTORS:

Robert Martin

Executive Chairman

Aaron Banks

Executive Director

Dr Ian Wilson

Non-Executive Director

CONTACT DETAILS:

Level 9

182 St Georges Terrace Perth, Western Australia 6000

• [phone] E [e-mail] W www.suvo.com.au

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20 January 2022

ASX ANNOUNCEMENT

Suvo Strategic Minerals Limited ('Suvo or the Company') is pleased to announce the proposed acquisition of mining tenement E70/4981, a highly prospective silica sand project near Muchea, north of Perth, Western Australia (the 'White Hill Silica Sand Project') subject to the necessary approvals, including shareholder approval. The White Hill Silica Sand Project is strategically located adjacent to Brand Highway with rail connections to the Kwinana port facility for bulk handling. The Company has undertaken a desk top due diligence review which indicates the potential prospectivity of the Project. The Project adjoins VRX Silica's (ASX:VRX) Muchea Silica Sand Projects western boundary and is a continuation of the aeolian dune systems located within the VRX project.

Commenting on the proposed acquisition the White Hill, high grade silica sand project, Suvo's Executive Chairman, Robert Martin said "to secure such a large tenement of land that is prospective for high quality silica sand for such a minimal upfront outlay is a significant outcome for our shareholders and strengthens our already impressive silica sand assets. Our neighbours to the East have reported significant high quality grades over large volumes and we believe that the dune system that is producing this continues through this tenement. We are excited to progress this project and to test its potential to provide material suitable to meet the stringent requirements for high end materials including inputs for specialty glass for solar panels and mobile phone, as well as high-capacitylithium-ion(Li-ion or LIB) rechargeable batteries.

Figure 1: Tenement maps

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(VRX:ASX Announcement 5 April 2018)

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20 January 2022

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About the project

The White Hill Silica Sand Project comprises pending exploration licence E70/4981 (Tenement Application), located in the Muchea area, (Yeal nature reserve) 50km north of Perth, Western Australia (Figure 2), and is highly prospective for high-quality silica sand. It spans an area of ~47km2.

The targeted Silica sand deposits lie in the Bassendean sand table. These are wind-blown dune systems that have been created over tens of thousands of years. The dunes sit above the natural surface of the ground with heights of up to 20m - 40m sitting well above the water table. Historical exploration within the tenement area is limited, though the adjoining Muchea Silica Sand tenement (ASX: VRX) has produced some ultra-high grade results where extensive drilling and testing has taken place producing grades of up to 99.93% SiO2 and 40ppm Fe2O3 in the ground, these being some of the highest known naturally occurring grades in the world.

Figure 2: Project location and transport routes

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20 January 2022

ASX ANNOUNCEMENT

Figure 3: Arial photo of the tenement

Figure 4: Arial photo of tenement outlining tracks

Figure 5: Tenement tracks

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The Tenement Application overlaps a nature reserve and may become subject to future tenement conditions in respect to the reserve. This has the potential to require additional approvals and/or consents to be obtained prior to commencing any activities on the Tenement.

Overview of the Silica Sands Market

Silica sand deposits are widespread within a variety of sedimentary environments, particularly in coastal areas. Prime uses for silica sand includes the manufacture of glass, foundry material, solar panels, ceramics, chemical, paint and coatings. These industries in the Asia Pacific area are growing at a rapid rate, especially in developing economies as a result of infrastructure developments.

The Asia Pacific Silica Sand Market was valued at USD ~5.3 Billion in 2019 and is projected to reach USD 8.3 Billion by 2027. Demand for silica sand is growing rapidly in accordance with the growth of the glass materials industry. Rising demand for glass containers in the Asia Pacific is driving glass production which is fuelling demand for silica sand. Further, demand from construction, foundry, chemical production and other industries continues to increase year on year. 1

Several industries such as glass and construction are dependent on silica sand. The growth of these industries has recently been hampered as a result of the difficulties caused by COVID 19 which has limited transportation and production across the globe. As a result, governments have been active in trying to increase the production of commodities and get their revenue generation back on track. This is forecast to continue to provide growth to the silica sand market. 1

Companies involved in the development of silica sand continue to focus on finding new applications for silica sand based products. Silica sand is currently being used in solar panel production and specialty glass for electronic components. These are examples of newfound applications and are expected to continue to aid the expansion of the silica sand market. 1

Market Trends

In terms of applications, the traditional silica sand market is predominantly classified as glass manufacturing, foundry, hydraulic fracturing, construction, chemical production, or other. The glass manufacturing segment holds a dominant share of the silica sand market. 1

The consistently growing glass manufacturing industry in India and China continues to drive the demand for silica sand in the Asia Pacific. Moreover, silica sand finds applications in construction and foundries that are booming sectors across the Asia Pacific. The consumption of silica sand is expected to remain high across the glass manufacturing industry, as it is a significant end user for silica sand. Silica sand is used as a raw material for products such as flat glass, containers, fiberglass, and specialty glass. There is an Increasing inclination towards using glass containers, bottles, and other products for food beverage packaging which is boosting glass production across the Asia Pacific. 1

The Glass Manufacturing segment was valued at USD ~1.6 Billion in 2017 and is anticipated to reach USD 3 Billion by the end of year 2027. 1

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