Zenith Minerals : Lithium and Gold Drilling Commenced - Split Rocks Project

Our Vision

1st March 2022

only	Corporate Details
Zenith Minerals Limited (ASX:ZNC)
	ABN: 96 119 397 938
I sued Shares		343.8M
Unlisted options		14.4M
Mkt. Cap. ($0.34)		A$117M
Cash (31st Dec 21)		A$4.4M*
Equities (31st	Dec 21)	A$9.1M
use				Nil
Debt
*Excludes $6M placement to EVM
(ASX Release 13-Jan-22)
personal		Directors
Michael Clifford	Director-CEO
Stan Macdonald	Non-Exec Director
Julian Goldsworthy Non-Exec Director
Nicholas Ong		Co Sec
Nick Bishop………..CFO
Major Shareholders (31st Dec 21)
Directors			3.4%
HSBC Custody Nom.	9.4%
Citicorp Nom			9.0%
BNP Paribas Nom		5.8%
Granich				3.7%

For
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.
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

LITHIUM AND GOLD DRILLING COMMENCED -

SPLIT ROCKS PROJECT

A large-scaledual-purpose drill program has commenced, testing lithium and gold targets at the Split Rocks project, Western Australia.

LITHIUM

A lithium drill campaign at Split Rocks is part of a larger initiative under the Zenith Lithium Alliance, a joint venture with the EV Metals Group (EVM), to secure lithium spodumene feedstock for EVM (ASX Release 13-Jan-22).

Large scale, lithium prospective landholdings.

An initial program of 14 RC drill holes will test four large scale pegmatite targets, Rio, Dulcie West, Estrela and British Hills East. An expansion of this initial program is likely.

Project-wide geochemical screening programs are also underway with 1 x auger and 2 x soil crews working towards systematically sampling all the prospective portions of the 660km2 land package. Over 1500 new samples collected to date.

GOLD

In addition to the lithium evaluation program, Zenith is also assessing the gold potential of the Split Rocks project, with significant success to date.

Final assay results from the 150-hole aircore/slimline RC drill program completed in late 2021 have now been received.

New encouraging near surface gold mineralisation was intersected. Initial 4m composite assay results, including:

• 4m @ 1.3 g/t Au (eoh)
• 4m @ 1.2 g/t Au
• 4m @ 1.0 g/t Au
• In addition, drilling returned a further 17 shallow intersections of gold mineralisation grading >0.4 g/t Au.

New results are in addition to those already reported for the 150-hole program (ASX Release 18-Jan-22), that included:

• 12m @ 2.9 g/t Au
• 8m @ 1.8 g/t Au, including 4m @ 3.1 g/t Au
• 8m @ 1.7 g/t Au, including 4m @ 2.8 g/t Au, and

RC drilling of the gold targets will follow the lithium focused program and is designed to better define and extend gold mineralisation in the bedrock at Dulcie Far North as well as at Dulcie Laterite Pit, Dulcie North, Estrela, Scott's Grey & Water Bore.

A program of 45 RC holes to test gold targets is planned

Diamond drilling will provide material for further gold - leach testwork.

Commenting on the Split Rocks drilling programs, CEO Mick Clifford said: "We are very excited to get the drill rigs back to Split Rocks and kick off the start of our 2022 exploration campaigns. The initial program of lithium pegmatite drilling will allow us to get a decent picture of the thickness and mineralogy of four very large pegmatite bodies that we know little about. These pegmatite bodies, particularly those at Estrela and British Hills East, have only been identified by shallow RAB or aircore drilling that has not been an effective test.

onlyThe gold drilling is designed to assess the grade and continuity of gold mineralisation particularly in the fresh rock, across multiple targets where we have had significant success over the past 12 months in our aircore drilling programs."

usepersonal

ForFigure 1: Figure 1- Split Rocks Project Location Map Showing Zenith tenements, Dulcie Heap Leach Gold Operation (DHLGO*) Prospect and Regional Lithium & Gold Endowment. (*Gold rights below 6m subject to option agreement).

Split Rocks Project - Background on Lithium Potential

Zenith has been systematically exploring the Split Rocks project, with landholdings of approximately 660 sqkm in the Forrestania greenstone belt, for lithium (Figures 1 - 2). This emerging lithium district is host to SQM-Wesfarmers Mt Holland/Earl Grey lithium deposit containing a Measured, Indicated & Inferred Mineral Resource of 189Mt @ 1.5% Li2O (66Mt @ 1.58 %Li2O Measured, 106Mt @ 1.52% Li2O Indicated and 17Mt @ 1.11% Li2O Inferred) (reported in KDR:ASX Release 19-Mar-2018).

Drill testing of four large, lithium pegmatite targets on the Split Rocks joint venture ground is underway: Dulcie West, Rio, Estrela and British Hills East.

The Dulcie West pegmatite (located within E77/2388) has been the subject of previous Zenith drilling, intersecting a flat lying pegmatite up to 77m thick that remains open ended to the north where the pegmatite rock chemistry shows higher levels of fractionation, a positive indicator for lithium fertility.

onlyf 1.2km.

The Rio pegmatite is also a flat lying pegmatite, up to 65m thick, that has been intersected in 3 historic diamond drill holes. Drilling is planned to assess this pegmatite target that remains open in all directions.

Pegmatites up to 35m thick at Estrela have been intersected near surface in gold focused drilling over a strike length

At British Hills East, historic shallow, RAB and AC drilling intersected pegmatites over 2.7km of strike, with one hole intersecting 53m of pegmatite to end of hole.

usegeochemical sampling programs to assess these zones have now commenced with both auger and soil sampling crews active on site.

In addition, several lithium surface anomalies generated by Zenith through limited soil and auger sampling in the

c ntral west and northern portions of the project area require drill testing. Large areas considered prospective

around granite margins in the centre of the project area are yet to be screened by surface sampling. Surface

Zenith Lithium Alliance

Zenith to refocus on lithium, and related EV-metals, backed by a new alliance with the EV Metals Group (EVM), as detailed in ASX Release 14-Jan-22.

• Key commercial terms of the Zenith Lithium Alliance with EVM includes:

• EVM may earn a 60% interest in the lithium rights in two initial 100% owned Zenith projects Waratah Well and Split Rocks by sole funding the completion of a feasibility study within 24 months, with Zenith retaining

personal	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.

For• The agreement includes a joint venture over Zenith's Split Rocks and Waratah Well projects in Western Australia,

as well as a non-exclusive right to bring additional projects to the joint venture by either party, to explore for lithium/EV metals.

• To allow the Zenith team to focus on EV-metal project generative activities, it is planned that the non-EV-metal projects, including base metals and gold assets will be demerged into one or more new companies to be listed on ASX. Any such demerger will be subject to ZNC Board approval, tax advice favourable to the Company, 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 vehicle/s. Further updates and information on the Demerger will be provided by Zenith in due course.

For personal use only

Figure 2: Split Rocks Project Lithium Targets showing Lithium Drill Targets.

Split Rocks Project - Background on Gold Potential

A major targeting exercise by the Company's geological team initially identified 12 high-quality gold drill targets at Split Rocks, subsequently expanded to 18 targets in the north-eastern sector of the Company's project area (refer to ZNC ASX Release 2-Sept-20).

For personal use only

Figure 3: Split Rocks Project Gold Targets and Significant RC - Aircore Drill Results (yellow captions) showing gold

drill targets, and areas of Recent Drilling