Zenith Minerals : New Potash Project - Western Australia

26th April 2022

NEW POTASH PROJECT - WESTERN AUSTRALIA

Corporate Details

Zenith Minerals Limited (ASX:ZNC)

ABN: 96 119 397 938

Issued Shares 343.9M

Unlisted options 14.3MMkt. Cap. ($0.44)A$151MCash (31st Dec 21) A$4.4M* Equities (31st Dec 21) A$9.1M Debt Nil

*Excludes $6M placement to EVM (ASX Release 13-Jan-22)

Directors

Michael Clifford Managing Director 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%

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.

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

Yalgoo potash brine project in Western Australia secured via three 100% owned exploration licences.

Potash brine target identified during assessment of regional government airborne electromagnetic (AEM) geophysical data as part of Zenith's ongoing exploration program on its nearby Waratah Well lithium project.

Modelling of AEM data defines a 50km long by 15km wide series of conductive layers extending from near surface to depths of 95m below surface, interpreted to be a major brine rich paleochannel.

The Yalgoo AEM anomaly is like those coincident with salt lake targets held by competitor potash brine companies located further to the east and northeast.

No previous drill testing of the potash brine target has been reported.

Project has excellent logistics lying immediately south of the Geraldton - Mt Magnet Road and major gas pipeline. Project is only 250km east of the Geraldton port, potentially providing a major transport/logistics advantage compared to other Western Australian potash brine projects that are some 780km to 1100km from ports.

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 the Yalgoo potash project, 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 ZNC, shareholders, 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. (ASX Release 13-Jan-22).

Commenting on the Yalgoo potash project, Managing Director Mick Clifford said: "Whilst assessing regional government geophysical data on our Waratah Well lithium project, the technical team identified a very large potash brine target located southeast of Yalgoo, adjacent to the main Mt Magnet-Geraldton Road.

If drill testing is successful in confirming the presence of sub-surface potash rich brines, then this project has a potential major logistical advantage over competitor projects being located only 250km from the port of Geraldton. Most competitor Western Australian potash brine projects are located hundreds of kilometres from port facilities, with the transport of potash product to coastal port being a significant component of the total operating costs of these projects."

Background on the Yalgoo Potash Brine Project

The Company's new Yalgoo potash brine project (Figure 1) was identified during assessment of regional government geophysical datasets as part of an exploration program on the Company's Waratah Well lithium project.

Three 100% owned exploration licences cover Zenith's Yalgoo potash brine target, that lies immediately south of the Geraldton - Mt Magnet main road.

Figure 1: Yalgoo Potash Brine Project Location Map

Modelling of regional government airborne electromagnetic (AEM) geophysical data defines a 50km long by 15km wide series of conductive layers extending from near surface to depths of 95m below surface, interpreted to be a major brine rich paleochannel. The Yalgoo AEM anomaly is like those coincident with salt lake targets held by competitor potash brine companies located further to the east and northeast. One significant difference is at surface there is no single major salt lake system that can in some areas be difficult to access with heavy equipment due to cultural and heritage sensitivities.

The Project is only 250km east of the Geraldton port, potentially providing a major transport/logistics advantage compared to other Western Australian potash brine projects that are 780km to 1100km from coastal shipping ports.

No previous drill testing of the potash brine target has been reported. An initial drill test of 6 to 12 aircore drill holes to 100m depths is planned to test the target once heritage agreements and permitting are in place.

Figure 2: Yalgoo Potash Brine Project Airborne Electromagnetic (SkyTEM) Anomaly Target

Image is conductivity slice at 24-30m below surface

Figure 3: Yalgoo Potash Brine Project Airborne Electromagnetic (SkyTEM) Anomaly Target

Image is conductivity slice at 82 -95m below surface

Competent 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 Reserves, Economic Studies and Production for the Company's Projects on a continuous basis to the ASX and in compliance 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 - 26th April 2022

For further information contact Zenith Minerals Limited:

Managing Director: Michael Clifford E:[e-mail] Phone [phone]

ABOUT ZENITH

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 14-Jan-22. Key commercial terms of the Zenith Lithium Joint Venture with EVM include:

• • EVM may earn a 60% interest in the lithium rights in two initial 100% owned Zenith projects, namely Waratah Well and Split Rocks, 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-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 activities to generate Battery Minerals projects, ZNC is planning to demerge the non-Battery Minerals projects, including base metals and gold assets 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 ZNC, shareholders, 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.

Zenith Minerals Limited (ASX:ZNC)

Zenith has a vision to maximise shareholder value through superior project generation and exploration activities. Key Australian gold and base metal projects include:

Earaheedy

Zinc

Western Australia

25% free carry to BFS

New major zinc discovery to be fast tracked with extensive accelerated exploration program underpinned by a recent $40M capital raising by partner Rumble Resources Limited (ASX:RTR) (ASX Releases 28-Apr-21, 2-Jun-21, 8-Jun-21, 18-Oct-21, 13-Dec-21, 21-Dec-21, 31-Jan-22, 7-Feb-22, 21-Feb-22, 9-Mar-22).

Develin Creek

Copper - Zinc

Queensland

100% Owned

Inferred Mineral Resource 2.57Mt @ 1.76% Cu, 2.01% Zn, 0.24g/t Au & 9.6g/t Ag (ASX Release 15-Feb-15). Massive sulphides intersected at 2 new prospects Wilsons North & Snook.

Sulphide City (ASX Release 5-Jul-21).	34m @ 3.5% Cu+Zn	29m @ 3.5% Cu+Zn
incl 10m @ 6.0% Cu+Zn	incl 12.3m @ 6.7% Cu+Zn
Red Mountain	Gold

Queensland

100% Owned

Drilling is following-up the high-grade near surface gold and silver intersected in the maiden & subsequent drill programs (ASX Releases 3-Aug-20 & 13-Oct-20, 9-Nov-20, 21-Jan-21, 19-May-21).

Results incl:

13m @ 8.0 g/t Au 5m @ 10.4 g/t Au

15m @ 3.5 g/t Au 12m @ 4.9 g/t Au

Split Rocks

Gold

Western Australia

100% Owned

Zenith drilling returned - high-grade near surface gold mineralisation at multiple targets (ASX Release 5-Aug-20, 2-Sep-20, 19-Oct-20, 28-Oct-20, 15-Jan-21, 11-Mar-21, 21-Apr-21, 24-Jun-21, 30-Sep-21, 18-Jan-22). Results include:

Dulcie North	32m @ 9.4 g/t Au, incl 9m @ 31.4 g/t Au	16m @ 1.3 g/t Au
Dulcie Laterite Pit	2m @ 14.5 g/t Au	18m @ 2.0 g/t Au
14m @ 3.5 g/t Au
Estrella	2m @ 9.8 g/t Au
Dulcie Far North	5m @ 5.6 g/t Au	3m @ 70 g/t Au
Water Bore	3m @ 6.6 g/t Au
Scotts Grey	8m @ 4.1 g/t Au	4m @ 4.8 g/t Au

Investments