Zenith Minerals : Earaheedy Zinc Project Drilling Update

18th July 2022

only		Corporate Details
	Zenith Minerals Limited (ASX:ZNC)
use	ABN: 96 119 397 938
Issued Shares		343.9M
Unlisted options		14.3M
Mkt. Cap. ($0.26)	A$89M
Cash (31st Mar 22)	A$9.3M
Equities (31st	Mar 22) A$14.2M
Debt				Nil
			Directors
	David Ledger	Executive Chairman
	Michael Clifford		Managing Director
	Stan Macdonald		Non-Exec Director
	Julian Goldsworthy Non-Exec Director
	Emma Scotney		Non-Exec Director
	Nic Ong			Co Sec
	Nick Bishop		CFO
		Major Shareholders
	Directors			3.4%
	HSBC Custody Nom.	8.7%
	Citicorp Nom			8.3%
	BNP Paribas Nom		6.2%
	EV Metals Group		2.9%
personal		Our Vision
	Zenith has a vision to maximise
	shareholder value	through superior
	project	generation and	exploration
	activities.
	Focus is on 100% owned Zenith
	projects,	whilst	partners	progress
	multiple additional opportunities.
For
	Contact Us
	Level 2, 33 Ord Street
	WEST PERTH WA 6005
	PO Box 1426
	WEST PERTH WA 6872
	Telephone:	[phone]
	Email:[e-mail]
	Web:www.zenithminerals.com.au

EARAHEEDY ZINC PROJECT DRILLING UPDATE

The Board of Zenith Minerals Limited (ASX: ZNC) ("Zenith" or "the Company") is pleased to provide an update on drilling activities at the Company's Earaheedy Zinc joint venture project located in Western Australia.

The Earaheedy Zinc project forms a key component of Zenith's base metal and gold portfolio that is scheduled to be demerged into a separate listed entity so that Zenith may focus on its core lithium business.

Programs at Earaheedy are conducted under management by our JV partner, Rumble Resources Ltd. Work to date has been successful in defining very widespread flat-lyingzinc-lead mineralised bodies such as Chinook, Tonka and Navajoh as well as defining multiple discrete, continuous high-gradezinc-lead zones including: Kalitan, Spur Colorado and Magazine, that remain open ended.

A major 50,000m RC drill program commenced in early 2022 targeting high- grade zinc domains within the Earaheedy JV project area.

To date 26,000m of drilling has been completed with 11,000 assays pending, and a further 24,000m planned to be completed in 2022.

The Tonka Prospect is a focus area, targeting the newly identified east- west trending High-Grade Colorado Zone.

Two previously reported initial holes within the Colorado Zone returned:

• EHRC515 - 73m @ 3.07% Zn + Pb from 106m
• • Including 13m @ 5.38% Zn + Pb from 108m
  • Including 19m @ 3.48% Zn + Pb from 132m
• EHRC518 - 7m @ 10.71% Zn + Pb from 137m
• • Including 3m @ 19.93% Zn + Pb from 138m

The footprint of the zinc sulphide dominant Tonka-Navajoh deposit is 8km by 2km, remaining open in all directions.

*Refer to RTR - ASX Release appended to this announcement.

Earaheedy Joint Venture Project Background

Zenith Minerals Ltd (ASX: ZNC) owns a 25% free carried interest in the EJV whilst Rumble owns 75%. The joint venture project area (E69/3464) covers the contact between the overlying Frere Iron Formation and underlying Yelma Formation of the Earaheedy Basin.

In April 2021 the EJV partners each announced a major Zinc-Lead Discovery with 'Tier 1' potential at the Earaheedy Project (ASX Release 19-Apr-21).

There are 3 main prospects within the EJV, Chinook and its associated high- grade zones Kalitan and Spur, Tonka (including its high-grade zone Colorado) and Navajoh.

Within the broader region, Zenith in its own right controls 100km of prospective mineralised strike which also has the potential to contain multiple large tonnage Zn - Pb deposits (Figure 1).

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personal	Figure 1: ZNC Earaheedy Joint Venture Project and 100% Owned ZNC Tenure

CHINOOK DISCOVERY

Drilling has defined a very large, shallow, flat-lying, 5km x 2km mineralised footprint that remains open in all directions. Strong grade continuity and multiple large high-gradeZn-Pb zones have been defined to date (ASX Release 21-Feb-

22 and 26-May-22), including:

	• 20m @ 3.63% Zn + Pb, from 63m (EHRC300)
For	• 8m	@ 3.65% Zn + Pb, 8.03 g/t Ag from 128m (EHRC197)
• 17m @ 2.91% Zn + Pb, 2.29 g/t Ag from 110m (EHRC206)
• 5m	@ 4.54% Zn + Pb, 4.24 g/t Ag from 110m (EHRC113)
	• 5m	@ 5.53% Zn + Pb, 3.56 g/t Ag from 79m (EHRC159)

Within the Chinook Zone there are now two discrete high-grade zones Kalitan and Spur.

KALITAN HIGH-GRADE ZONE*

Interpreted high-grade feeder fault mineralisation intersected below the recently discovered flat-lying, extensive (4.1km long x 1.9km wide) Chinook zinc-lead mineralisation (ASX Releases 13-Dec-21,31-Jan-22 and 21-Feb-

22). Currently defined over 2.3km strike length. Drill results include:

• 20m @ 8.78% Zn+Pb, 11.7 g/t Ag, within 51m @ 4.76% Zn+Pb from 82m
• 10m @ 6.57% Zn + Pb, 16.24 g/t Ag from 200m, within broad zone of 84m @ 1.84% Zn+Pb to end of hole
• 13m @ 6.94% Zn + Pb (6.27% Zn, 0.67% Pb) from 137m incl 6m @ 10.51% Zn + Pb from 141m

NEW HIGH-GRADESPUR ZONE

The Spur Zone is defined over a strike of 400m and is open to the east and at depth (ASX Release 26-May-22).Results include:

• 6m @ 6.57% Zn+Pb

only	•	▪
	EHRC458 - 6m @ 4.13% Zn + Pb from 100m
		▪	Including 2m @ 9.09% Zn + Pb from 100m
	• EHRC457 - 6m @ 4.69% Zn + Pb from 109m
	• EHRC463 - 10m @ 4.32% Zn + Pb from 107m

Including 2m @ 12.34% Zn + Pb from 107m

useTONKA DISCOVERY*

A zone of flat lying Zn-Pb-Ag mineralisation at Tonka was discovered 8km southeast of the Chinook Zn-Pb-Ag discovery, during exploration drilling testing the wider potential of the joint venture ground (ASX Release 13-Dec-21). Key attributes of Tonka include:

Mineralisation style is flat lying near surface - like that at the Chinook Zn-Pb-Ag discovery, where drilling is ongoing. Results, previously reported results include:

• 22m @ 4.27% Zn+Pb, 5.4 g/t Ag from 110m
• 10m @ 3.93% Zn+Pb, 4.34g/t Ag from 84m

	COLORADO HIGH-GRADE ZONE
	Significant High-gradeZn-Pb mineralisation has been intercepted at the northern end of Tonka in a newly identified
	east-west trending zone called Colorado, comprising multiple open-ended, inferred, mineralised feeder structures
personal	with strike lengths up to 2km (ASX Release 26-May-22). Two initial holes within the Colorado Zone returned:
• EHRC515 - 73m @ 3.07% Zn + Pb from 106m
	▪ Including 13m @ 5.38% Zn + Pb from 108m
	▪ Including 19m @ 3.48% Zn + Pb from 132m
	▪ Including 9m @ 3.56% Zn + Pb from 162m
	• With 2m @ 8.17% Zn + Pb from 162m
	• EHRC518 - 7m @ 10.71% Zn + Pb from 137m
For	▪ Including 3m @ 19.93% Zn + Pb from 138m

NAVAJOH DISCOVERY*

Mineralised zone discovered at Navajoh, located 4km southeast of Tonka Discovery (ASX Release 13-Dec-21). Mineralisation is flat lying Zn-Pb-Ag sulphide mineralisation, like that at the Chinook and Tonka Prospects. Previously reported results include:

• 5m @ 6.38% Zn + Pb, 6.3 g/t Ag from 123m (EHRC280)
• 3m @ 6.15% Zn + Pb, 10.63 g/t Ag from 132m (EHRC281A)
• 4m @ 4.18% Zn + Pb, 3.57 g/t Ag from 106m (EHRC291)

*Refer to Rumble Resources Limited ASX Releases dated 21-Dec-21,31-Jan-22,7-Feb-22,21-Feb22 and, 9-Mar- 22 for further details.

EVM may earn a 60% interest in the lithium rights in two initial 100% owned Zenith projects, namely Waratah Well and Split Rocks (Figure 3), by sole funding the completion of a feasibility study within 24 months, with Zenith retaining a 40% project share.

On and from completion of a feasibility study, Zenith and EVM will form a joint venture in respect of the project lithium rights. EVM will sole fund expenditure to a decision to mine, following which the parties will be required to fund future joint venture expenditure in accordance with their respective percentage shares.

EVM must arrange all financing for the development, construction and commissioning of any future mine including Zenith's share. Zenith must repay its proportionate share of the project finance including interest from the sale of its proportionate share of minerals produced.

EVM to spend a minimum of A$7M on exploration on the projects, in 24 months, before being able to voluntarily withdraw provided that if EVM does not complete a feasibility study within 24 months it will be deemed to have withdrawn and will not earn an interest in the project lithium rights.

The agreement includes a joint venture over Zenith's Split Rocks and Waratah Well projects in Western Australia, as well as a non-exclusiveright to bring additional projects to the joint venture by either party, to explore for lithium/EV metals.

In addition, EVM or its nominees subscribed for 20,000,000 ordinary ZNC shares @ $0.30 cents per share (representing a premium of 20% above the then VWAP for ZNC shares for the preceding 10 Business Days) raising A$6M (Placement), with funds applied to source new lithium opportunities, near term advancement of its gold and base metals portfolio and working capital (ASX Release 19-Jan-22).

Mt Ida North

Figure 1: Zenith Lithium Joint Venture - Project Locations (stars) and Alliance Project (square)

Zenith Lithium Joint Venture

Zenith is being developed as a pure lithium company to refocus on minerals containing lithium and related metals required for rechargeable lithium-ion batteries for electric vehicles and renewable energy storage ("Battery Minerals"), backed by a new alliance with the EV Metals Group (EVM), as detailed in ASX Release 13-Jan-22. Key

onlycommercial terms of the Zenith Lithium Joint Venture with EVM include:

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•

•

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•

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Australian Lithium Alliance

Zenith and EV Metals Group have also agreed to work together on a non-exclusive basis to assess lithium onlyopportunities in Australia under a strategic initiative referred to herein as the Australian Lithium Alliance (ALA).

Zenith and EV Metals Group will each fund their respective share of costs on assessing, exploring and any future development capital on a 40% - 60% basis respectively, with EV Metals Group owning marketing rights to any offtake. Each party will bring to the arrangement their respective technical, financial and management skills to assess lithium opportunities. The Mt Ida North option agreement announced to the ASX on 23-May-22 is being pursued under the ALA partnership.

The ALA is a separate arrangement to the existing Zenith Lithium Joint Venture with EV Metals Group that is detailed below and in ZNC ASX Release dated 14-Jan-22.

useDemerger of Gold and Base Metals Assets

To allow the Zenith team to focus on activities to generate Battery Minerals projects, ZNC is planning to demerge the non-Battery Minerals projects, including base metals and gold assets into a new Company called

Mackerel Metals Limited to be listed on ASX. Any such demerger will be subject to ZNC Board approval, tax personaladvice favourable to ZNC, as well as shareholder, ASX, ASIC and other regulatory approvals. ZNC shareholders to benefit by way of an in-specie distribution of the shares in the new listed Company. Further

updates and information on the Demerger will be provided by Zenith in due course.

C mpetent Persons Statement

The information in this report that relates to Exploration Results and Mineral Resources is based on information compiled by Mr Michael Clifford, who is a Member of the Australian Institute of Geoscientists and an employee of Zenith Minerals Limited. Mr Clifford has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Clifford consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Material ASX Releases Previously Released

The Company has released all material information that relates to Exploration Results, Mineral Resources and ForReserves, Economic Studies and Production for the Company's Projects on a continuous basis to the ASX and in c mpliance with JORC 2012. The Company confirms that it is not aware of any new information that materially affects the content of this ASX release and that the material assumptions and technical parameters remain

unchanged.

Authorised for release by the Zenith Minerals Limited Board of Directors - 18th July 2022

For further information contact Zenith Minerals Limited:

Executive Chairman: David Ledger or Managing Director: Michael Clifford

1. [e-mail]

Phone [phone]