Macarthur Minerals Project

Operator : Macarthur Minerals Ltd

Ownership: 15.5% interest

Development Stage :

Early Exploration

Project: Pilbara Acerage Package

Macarthur’s Pilbara lithium tenements comprise of 18 exploration license applications that are prospective for ‘hard-rock’ lithium in the Pilbara.

Collectively covering a total area of 1,472km2 (363,739 acres) in the world class Pilbara region of Western Australia

The Pilbara applications cover similar geological settings to the Pilgangoora Li-Ta pegmatite deposits, which host the lithium projects of Australian Securities Exchange listed companies, Pilbara Minerals Limited (ASX: PLS) and Altura Mining Limited (ASX: AJM).

The Company has completed initial heliborne reconnaissance across a portion of its acreage in the Pilbara region of Western Australia. Assay results from the initial heliborne reconnaissance sampling of pegmatites located within three of the Company’s Exploration Licence Applications are encouraging.

Given the short nature of the initial reconnaissance and the large acreage holding, the Company is confident in locating lithium-bearing pegmatites and is currently developing an exploration strategy designed to locate economic lithium bearing pegmatite deposits in the Company’s tenement portfolio.

Reconnaissance, including sampling, was only conducted on seven of the Company’s Exploration License Applications in the Pilbara and did not include all areas contained in those applications. In essence, the initial reconnaissance program only assessed the lithium potential of a fraction of the Company’s acreage package.

The Company will undertake further reconnaissance of its Exploration Licence Applications.

Project: Nevada Stonewall

The Stonewall Project covers an area of approximately 12,019 acres (49km2) located in the Lida Valley, Nevada, the basin adjacent to the Clayton Valley, which hosts North America’s only producing lithium mine, Albemarle’s Silver Peak Lithium Mine.

Lithium has been located at Stonewall Project from a shallow auger drilling program conducted as part of due diligence, for acquisition of the Stonewall Project. An initial shallow auger drilling program on the Stonewall Project for the purposes of collecting soil and brine samples for lithium was conducted. A total of nine auger holes were drilled to depths of between 1.07 – 2.13 meters (3.5 to 7 feet) at various locations across the Stonewall Project playa (dry lake bed). All holes contained lithium with sediment assays ranging from 34.6 ppm Li and up to 145.5 ppm Li.

The highest value analytical results were from holes SW 7 – 145.5 ppm Li and SW 17 – 95.9 ppm Li.  The sediment samples were taken under chain of custody to the ALS Chemex lab in Reno, Nevada.  The samples were analysed for 51 individual elements by Method ME – MS 41 which is an ultra trace level analysis using Inductively Coupled Plasma – Mass Spectrometry (ICP – MS) methods, with an Aqua Regia digestion.

The Stonewall Project is located in an intermontane basin and is surrounded by Tertiary volcanic rhyolitic rock units which are anomalously high in lithium.  These rhyolitic units are thought to act as a potential source rock for lithium in the Clayton Valley brines. The potential lithium source rock includes flows and tuffs that likely extend below the alluvial cover.

The Stonewall Project is strategically located in the Nevada lithium supply hub, 306 kilometres (191 miles) southeast of Tesla’s new Gigafactory and is located in the mining friendly Nye and Esmeralda Counties of Nevada and is serviced by excellent infrastructure with access to power, water, labour and is bisected by the Veterans Memorial Highway Number 95. The regional climate also favours natural and inexpensive evaporation for brine concentration and allows year-round work.

The Company plans to conduct further extensive sampling of the Stonewall Project to compliment the shallow auger drilling program conducted as part of due diligence.

Once the extensive soil sampling program is completed, additional exploration will be by geophysical methods.  A detailed gravity survey will probably be conducted.  Once the results of the gravity survey and the soil sampling survey are integrated and analysed, drill sites will be selected for a detailed subsurface investigation of the Stonewall Project.