Zenith Minerals : High-Grade Cu Confirmed At Scorpion Deposit - Develin Creek

7th January 2022

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High-Grade Copper Confirmed At Scorpion

Deposit - Develin Creek Project

Resource update drilling at the Scorpion deposit within Zenith's 100% owned Develin Creek copper-zinc project has returned wide high- grade copper. New results from Scorpion, include:

• 21m @ 2.5% Cu, 1.6% Zn, 0.4 g/t Au and 18.0 g/t Ag
• 20m @ 2.3% Cu, 0.3% Zn, 0.4 g/t Au and 16.2 g/t Ag
• 18m @ 1.7% Cu, 0.6% Zn, 0.6 g/t Au and 26.3 g/t Ag

46 holes drilled in total. Assays are awaited for a further 9 drill holes (4 at Wilsons North Prospect, 3 at the Snook Prospect and 2 in Sulphide City).

Drilling is planned to resume in the first calendar quarter 2022, with follow-up programs:

• At the regional prospects: Wilsons North and Snook (where massive copper-zinc sulphides were discovered in 2021),
• Testing EM and geochemical targets surrounding Sulphide City that were not tested during the 2021 drill program.
• Completing the Sulphide City resource update drill program (more than 4 holes) before moving on to the regional prospects.

Commenting on the Develin Creek drill results, CEO Mick Clifford said: "Resource infill drilling at Scorpion has confirmed the high-gradenature of the copper lens, which along with Sulphide City, form the basis of the historic Inferred Mineral Resource. Once we can complete the planned drill program at Sulphide City, which was curtailed in 2021 due to significant rainfall events, we'll then be able to update the resource estimate. More importantly, we are very keen to get the drill rigs back to Snook and Wilsons North where we successfully discovered new massive copper-zincsulphide zones in our regional drill programs in 2021."

Drill Program Details

A three rig drilling campaign commenced at Develin Creek in September 2021 to test copper-zinc targets at Wilsons North, Snook and four targets surrounding the existing Sulphide City JORC massive copper-zinc sulphide deposits (Figure 1; refer ASX Releases 2-Sep-21). In addition, resource update drilling was also completed at the Sulphide City and Scorpion deposits where recent Zenith drilling returned strong massive copper-zinc sulphides in a twin hole program including (ASX Release

5-Jul-21), including:

• 34m @ 3.5% Cu+Zn, incl 10m @ 6.0% Cu+Zn, and
• 29m @ 3.5% Cu+Zn, incl 12.3m @ 6.7% Cu+Zn

This drilling program is part of a broader plan to build upon the existing JORC resource and add potential tonnage to the Develin Creek copper-zinc volcanogenic massive sulphide (VMS) inventory.

46 drill holes were completed in this 2021 program for a total of 6,148 metres. Assays are awaited for 9 holes (4 in Wilsons North, 3 in Snook, 2 in Sulphide City).

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Figure 1: Develin Creek Project Outline and Areas Subject to Recent Drill Testing

Sulphide City and Scorpion Resource Update Drilling

The Scorpion and Sulphide City resource update drilling program continues to intersect wide high-grade copper and zinc zones (Figures 2 - 4). 12 holes were drilled at Sulphide City (assays are awaited for 2 holes), while 6 holes were drilled at Scorpion. New results from Scorpion, that are close to true width intersections, include:

•	21m @ 2.5% Cu, 1.6% Zn, 0.4 g/t Au and 18.0 g/t Ag from 50m down hole (ZSCRC010)
personal•	20m @ 2.3% Cu, 0.3% Zn, 0.4 g/t Au and 16.2 g/t Ag from 38m down hole (ZSCRC012)
•	18m @ 1.7% Cu, 0.6% Zn, 0.6 g/t Au and 26.3 g/t Ag from 19m down hole (ZSCRC009)
New massive sulphide results from Sulphide City, that are close to true width intersections, include:
•	2m @ 1.2% Cu, 0.3% Zn, 0.1 g/t Au and 4 g/t Ag (ZSCRC014)

ForThese new assay results are in additon to those previously reported for Sulphide City (ASX Release 16-Dec-21), including:

• 12m @ 2.6% Cu, 5.2% Zn, 1.4 g/t Au and 73 g/t Ag (ZSCRC003)

• 12m @ 1.5% Cu, 0.5% Zn, 0.2 g/t Au and 3.6 g/t Ag and 16m @ 1.7% Cu, 0.1 g/t Au and 3.4 g/t Ag (ZSCRC004), part of a 72m wide massive sulphide zone comprised of 28m of massive copper-zinc sulphides and 44m of massive pyrite, ending in massive pyrite (diamond tail planned 2022)

And those reported in an earlier ZNC diamond drilling program (ASX Release 5-Jul-21) that included:

• 29m @ 2.3% Cu, 1.2% Zn, 0.3 g/t Au & 4.2 g/t Ag incl. 12.3m @ 4.2% Cu, 2.5% Zn, 0.6 g/t Au & 7.3 g/t Ag
• 34m @ 2.0% Cu, 1.5% Zn, 0.2 g/t Au & 4.9 g/t Ag incl. 10m @ 3.9% Cu, 0.4% Zn, 0.3 g/t Au & 6.9 g/t Ag.

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personal	Figure 2: Scorpion Deposit - Drill Hole Location Map showing Significant Copper Intersections

Background on the Develin Creek Project

The Develin Creek project contains a VMS copper-zinc deposit with an Inferred Mineral Resource (JORC 2012) of: 2.57Mt For@ 1.76% copper, 2.01% zinc, 0.24 g/t gold and 9.6 g/t silver (2.62% CuEq) released to ASX on 15-Feb-2015. The Company reaffirms its confidence in the existing Inferred Mineral Resource (JORC 2012) based on the information available to it

at this time but may revise the resource upon completion of the resource update and twin hole drilling program.

Zenith's technical team outlined the Snook target located 30km south of the existing JORC resources. An initial maiden drill test of 7 shallow RC holes has been a success, with hole ZSRC001 intersecting 3m of massive and semi-massive sulphides close to surface, at a depth of only 20m downhole. This zone returned: 3m @ 1.57% Cu, 1.07% Zn, 0.37% Pb, 43 g/t Ag and 0.2 g/t Au, including 2m of massive sulphide grading: 1.95% Cu, 1.34% Zn, 0.48% Pb, 55 g/t Ag and 0.3 g/t Au (refer ASX release 7-Dec-20). Subsequent follow-up drilling has now extended the footprint of massive sulphides to a length of 150m (ASX Release 16-Dec-21). The Snook drill program and that completed at the nearby Wilsons North prospect now confirm a cluster of massive sulphides is present within the Company's landholdings, reaffirming the highly prospective nature of the Develin Creek project.

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Figure 3: Scorpion Deposit - Cross Section showing Significant Copper Intersections

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Figure 4: Sulphide City Deposit - Drill Hole Location Map showing Significant Intersections