White Cliff Minerals : December 2021 Quarterly Reports

For personal use only

QUARTERLY REPORT - ACTIVITIES

for the quarter ended 31 December 2021

HIGHLIGHTS

• Acquisition of Magnet Resource Company Pty Ltd (Magnet) and Preston River Lithium Pty Ltd (Preston River), the holders of various prospective Lithium and Rare Earth Elements (REE's) Projects covering 1,075km2 in Western Australia. Acquisition is subject to shareholder approval on 11 February 2022
• Recent tenement applications by White Cliff at Yinnetharra (~574km2) and Diemals (~2,430km2) are highly complementary to the Magnet and Preston River acquisitions
• Yinnetharra sample variations in Li, Ta, Sn and REE suggest the presence of 2-3 phases/generations of pegmatite intrusions with more detailed exploration required to target any potentially important pegmatites
• During the quarter, a heritage survey at Cracker Jack and at McCaskill Hill was successfully completed. The survey allowed a maiden drilling program (74 holes for ~4,440m planned) to commence following quarter end, to follow up on highly encouraging rock chip and geochemistry sampling results from previously untested areas
• Placement of 76,000,000 shares at $0.012 raising $912k before costs

OPERATIONS

Maiden Drilling Program at Cracker Jack and McCaskill Prospects

A heritage survey at Cracker Jack and at McCaskill Hill was successfully completed on 16 December 2021. An reverse circulation (RC) drill rig is now on site to commence a 74 hole, 4,440m, shallow RC drilling program across these prospects (Photograph 1).

The close spaced soil geochemical sampling (lines 50m apart, samples 40m apart) within the Cracker Jack PL20/2289 (Figure 1) tends to support the historical drilling which focused on the northern portion of the tenement. The gold responses both within Cracker Jack and McCaskill's tend to be on the margins of the stronger magnetic responses caused by the banded Iron Formations (BIF) consistent with the concept that mineralisation is along the rheology contrast of the BIF and surrounding mafics. This drilling target is highlighted in Figure 1.

A strike length of approximately 650m requires testing as weak gold anomalism occurs along the eastern margin of the BIF and the western margin of the eastern BIF is entirely untested.

ASX:WCN		wcminerals.com.au
White Cliff Minerals Limited	Level 8, 99 St Georges Tce, Perth WA 6000	T + 61 8 9486 4036
ABN 22 126 299 125	PO Box 5638 St Georges Tce, Perth WA 6831	F + 61 8 9486 4799

For personal use only

Figure 1 Cracker Jack prospect showing Initial Target Zone with Au geochemistry on RTP1VD magnetic data.

Mineralisation at McCaskill Hill is expected to be similar to Cracker Jack, which is thought to be controlled by quartz veining within the contact between BIF, mafics and ultramafics. Both areas are on the southern extension of the Burnakurra Shear Zone (BSZ), and shares geological similarities to the Reedy Shear Zone (RSZ).

A zone within the McCaskill Hill tenement soil samples shows a strongly elevated response for bismuth, molybdenum and tungsten but with negligible gold responses. This forms an entirely new northern target zone which covers elevated gold responses and the area of strongly elevated pathfinder elements in a zone where the BIF units show considerable disruption.

2

For personal use only

The maiden RC drilling program will target the area of strong gold responses along margins of the BIF units in the central area of McCaskill Hill and follow-up on the results from the RAB completed in by Gold Mines of Australia (WA) NL (GMA) where lesser response is shown by the gold geochemistry near the southern limits of the BIF units (Figure 2).

GMA data was partially tested by a RAB drilling program of 41 holes for 777m, being maximum depth of 20m or blade refusal. The best result from GMA drilling was 9m @ 1.54g/t from 8m to EOH in 94TTPH439 on the contact of the BIF (WAMEX A42903).

Figure 2: The McCaskill Hill prospect showing initial target zones with Au geochemistry on RTP1VD magnetic

data.

3

For personal use only

Photograph 1: Reverse Circulation (RC) drill rig at the Cracker Jack prospect, part of the 100% owned Reedy

South Gold Project.

Yinnetharra and Diemal Lithium and Rare Earth Projects

During the quarter, White Cliff's wholly owned subsidiary, Electrification Metals Pty Ltd, applied for 8 tenements prospective of lithium and rare earth emelemts (REE's) covering ~3,000km2 in Western Australia.

Yinnetharra - Li/REE (100% WCN) 574km2

Location and Tenure

The Yinnetharra Li/REE project consists of two tenement applications, E09/2628 and E09/2641, within the Gascoyne lithium region, located about 100km northeast of Gascoyne Junction and 85km south of Hastings Rare Earths (ASX:HAS) world- class Yangibana rare earths project.

Geological Setting

The project area is underlain by Durlacher Supersuite of the Mangaroon Orogeny consisting of multiple granitic intrusives, mainly the schistose Davey Well Granite, gneissic granites and schists. Multiple potentially REE bearing pegmatites of the Thirty Three Supersuite have been mapped within the area.

Exploration history and potential

Numerous lithium bearing pegmatites have been identified in the nearby Thirty Three Supersuite, a large northwest-southeast granite unit along the Ti Tree shear zone, known to host REE-bearing pegmatites in the basement. Arrow Minerals (ASX:AMD) uncovered rockchip results of up to 3.77% Li2O at their Reid Well prospect at the Malinda Lithium project, 10km to the northwest of Yinnetharra.

4

For personal use only

Rock chip samples collected by GSWA within E09/2628 reported strong responses in Cerium up to 332ppm as viewed on GeoviewTM.

Geological Setting

The project area is underlain by Durlacher Supersuite of the Mangaroon Orogeny consisting of multiple granitic intrusives, mainly the schistose Davey Well Granite, gneissic granites and schists. Multiple potentially REE bearing pegmatites of the Thirty Three Supersuite have been mapped within the area.

Exploration history and potential

Numerous lithium bearing pegmatites have been identified in the nearby Thirty Three Supersuite, a large northwest-southeast granite unit along the Ti Tree shear zone, known to host REE-bearing pegmatites in the basement. Arrow Minerals (ASX:AMD) uncovered rockchip results of up to 3.77% Li2O at their Reid Well prospect at the Malinda Lithium project, 10km to the northwest of Yinnetharra.

Figure 3: Yinnetharra (WCN 100%) Li/REE project, tenement location, including Magnet Resource' (Wabli Creek, Injinu Hills, Weedarra and Sandy Creek) with aeromagnetic data showing complexity of geology

5