Essential Metals: Quarterly Activity Report







onlyASX Code: ESS

C rp rate profile

Shares issued: 243,092,268

Cash: $9 million (December 31, 2021)

Debt: None

useKEY LITHIUM PROJECTS Pioneer Dome GOLD golden crest GOLD Juglah Dome

Joint Ventures (ESS%) staff2 x nickel projects (20-25%)*

4 x gold projects (25-30%)*

* Free brought to a decision to mine

Corporate directory

NoExecutive Chairman

Craig McGown

N n-Executive Directors

Paul Payne

warren hallam

General manager

Timothy Spencer

Chief Financial Officer & General Secretary

Carl Travaglini

Exploration Manager

Andrew Dunn

Investor Relations

ForNicholas Read Read Company t: +61 8 9388 1474

e: nich [email protected]

NBA: 44 103 423 981

Phone. : +61 8 9322 6974

  1. [email protected]
  1. essmetals.com.au

Level 3, 46 Ord Street

West Perth, WA 6005

Australia

P.O. Box 1787,

West Perth, WA 6872

Australia

AMENDED: Please note that the exploration results included in the “Acra Gold Joint Venture” section beginning on page 8 are newly reported results as they were not considered significant enough to be reported separately when reported. were received from the joint venture partner.

February 18, 2022

DECEMBER 2021 QUARTERLY REPORT

The Pioneer Dome Lithium project continues to progress with strong results from Dome North, more lithium targets, new drill programs underway and progress being made towards project development.

STRONG POINTS

  • Pioneer Dome Lithium Project, WA: The main operating activities during the quarter were:
    oh Receipt and analysis of assay results from the 5,934m Reverse Circulation (RC) drill program completed at Dome North in August. The best results come from four RC holes drilled in the upper part of the Cade deposit:
    oh 21m at 1.08% Li2O of the surface (PDRC589) oh 24m at 1.29% Li2O of the surface (PDRC590) oh 15m at 1.06%Li2O from 47m (PDRC591)
    oh 26m at 1.46% Li2O from 51m (PDRC592)
  1. 13 holesThe diamond drill program began in December, targeting near-surface (oxide/transition) mineralization at the Cade and Davy deposits to obtain samples for bulk density measurements and confirmatory metallurgical testwork .
    1. Baseline environmental survey carried out as part of a range of activities currently underway to prepare for the development of Dome North.
  • Business: The Company’s 51% interest in the Mavis Lake non-core exploration asset, located in Canada, was sold to Critical Resources Limited (ASX: CRR) for $0.75m in cash (50% retained for Canadian tax purposes) and 34 million listed CRR common shares.
  • Closing cash on hand as of December 31, 2021 was $9 million.

Page 1 of 24

PIONEER DOME LITHIUM PROJECT

The Pioneer Dome project (ESS: 100%) is located in the heart of Western Australia’s lithium corridor at onlythe Eastern Goldfields, about 130 km south of Kalgoorlie and 275 km north of Port Esperance. A mineral resource of 11.2Mt @ 1.21% Li2O1 was defined at Dôme Nord in the

northern area of ​​the Project.

The southern Yilgarn area is known to be rich in spodumene deposits including the Bald Hill mine, Mt Marion mine and the Buldania project. The world-class Greenbushes deposit, Mt Holland mine and Mt Cattlin mine are located further to the west, south-west and south-southwest, respectively.

For personal use

Figure 1 – The location of the buildings of the Pioneer Dome Lithium project in relation to the main infrastructures.

1 Refer to ASX Announcement: ESS Sep 29, 2020 – Dome North Resource Upgrade

Page 2 of 24

RC DRILL PROGRAM RESULTS

All trials from the thinline reverse circulation (RC) drill program completed in late August were received and reported in the ASX announcements released on October 15 and November 3.

onlyThe 5,934 m RC drill program was undertaken to test areas with the potential to discover additional spodumene-bearing pegmatites that could add to the mineral resources currently defined at Dome North and to test the upper zone of the Cade deposit.

As announced on October 152four RC holes drilled in the upper zone of the Cade deposit returned broad high-grade intersections, with highlights of:

  • 21m at 1.08% Li2O of the surface (PDRC589)
  • 24m at 1.29% Li2O of the surface (PDRC590)
  • 15m at 1.06%Li2O from 47m (PDRC591)
  • 26m at 1.46% Li2O from 51m (PDRC592)

useIn addition, hole PDRC519, located at the southern end of the Davy deposit, returned encouraging values ​​of:

  • 7m at 1.02% Li2O from 21mincluding 3m @ 1.44% Li2O; and
  • 9m at 0.62%Li2O from 42m

For staff

Figure 2 – Cross section showing borehole PDRC590 and previously drilled holes on the same section.

2 Refer to ASX Announcement: ESS October 15, 2021 – Cade Deposit High Quality Analysis Results

Picture 3 – Cross sectionshowing drill holes PDRC591 and PDRC592 and previously drilled holes on the same section.

single use

staffApart from those described above, no other significant intersections (>0.5% Li2O) were returned, but encouraging geochemical results were returned from Heller North (PDRC543 and 44) ​​as well as from ‘Davy at

Cade’ (PDRC571 to PDRC575), both of which required further investigation. For

Figure 4 – Dôme Nord LCT drilling (see legend).

Botanica Consulting, a Based in Kalgoorlieenvironmental consultancy, conducted a spring study of flora and fauna to help coordinate the baseline studies required to obtain regulatory approvals and licenses. The final report is expected in February, but Botanica has already indicated that no particularly sensitive flora or fauna has been identified during the investigation.

Finally, a hydrological study was underway during the quarter and the final report is expected in February.

Page 5 of 24

Option 1 – Whole Ore Flotation (WOF)

Option 2 – DMS and flotation (Hybrid)

Figure 5 – Proposed drilling of the North Dome (green circles), surface projection of EMRs (magenta outlines) and previous drilling

(see legend) above interpreted geology.

Davy to Cade

single use

staffSTEPS TO DEVELOPMENT READY

As part of its strategy to become a new force in the lithium supply chain, Essential took several key steps during the quarter to advance the Pioneer Dome Lithium project to a “ready for development”status.

The Company engaged Primero, a leading integrated engineering group, to develop order-of-magnitude capital and operating cost estimates for two plant flowsheet options, treating 1.6 million tonnes per year of spodumene ore:

Costs were collated from Primero’s database and factored as needed with an order of magnitude accuracy of +/-35%.The scope of the costs considered solely related to the treatment plant, the all comersto concentrate TSF stocks and releases. Items such as bulk earthworks, NPI, electricity and water supply have been

Fornot included in the CAPEX estimate.

The assessment will help Essential understand the economic thresholds of a autonomousexploitation of lithium concentrate. The results of the evaluation will be incorporated into an exploratory study, which should begin by middle of the year,pending assays from ongoing drilling programs and results from other metallurgical testwork.

Heller NE

Basement geology

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Essential Metals Ltd. published this content on February 17, 2022 and is solely responsible for the information contained therein. Distributed by publicunedited and unmodified, on February 17, 2022 21:44:54 UTC.

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