Announcement PDF : • Metallurgical Success: ~78% tin recovery achieved using a new processing approach, producing a saleable tin concentrate from the Doradilla Tin Deposit. • Strategic Location & Scale: The Doradilla Tin Deposit spans a strike length of over 7.5km. It forms the south-western end of the broader 18km-long mineralised DMK Line within SKY’s Doradilla Project, located ~45km south-east of Bourke, NSW. • Development Potential: These results position Doradilla as a potentially viable development asset, complementing SKY’s flagship Tallebung Tin Project and strengthening the Company’s longer-term growth pipeline. • Initial Exploration Target Defined: A maiden Exploration Target has been estimated across 2.5km of the total 7.5km strike, incorporating SKY’s 2019 drilling, with intercepts including: DORC0011: 11m @ 1.04% tin from 37m, including: 5m @ 1.65% tin from 42m.1 • Potential to triple the strike length of the initial Exploration Target with potential strike extensions of 2.5km to the NE and 2.5km to the SW confirmed by previous SKY and other historical drill results. • Next Steps: SKY is planning further drilling to build on this breakthrough and will focus on consolidating newly uncovered data to continue advancing the Doradilla Project alongside ongoing development of the Tallebung Tin Project. Table 1: Doradilla Tin Deposit: Initial Exploration Target for 2.5km of the total 7.5km strike Exploration Target Tonnage Range Mt Grade Range Tin (%) Contained Metal Tin (t) Total @ 0.20% tin cut-off grade 10 - 15 0.32 - 0.42 32,000 - 63,000 The potential quantity and grade of the Exploration Target are conceptual in nature. As such, there has been insufficient exploration to estimate a Mineral Resource, and it is uncertain whether further exploration will result in a Mineral Resource. The Exploration Target has been prepared in accordance with the JORC Code 2012. Watch a video summary of this announcement & engage with SKY here 1 Please refer to SKY ASX Announcement 10 March 2020 for further details. SKY METALS LIMITED +61 2 6360 1587 2 HAWTHORN PLACE, ORANGE NSW 2800 WWW.SKYMETALS.COM.AU ABN 46 098 952 035 Sky Metals (ASX: SKY) (‘SKY’ or ‘the Company’) is pleased to advise that it has achieved a significant metallurgical breakthrough for its 100%-owned Doradilla Tin Deposit, located within its Doradilla Project, 45km south-east of Bourke in north-western New South Wales. As a result of the application of a new processing approach to mineralised samples from the Doradilla Deposit, SKY has achieved metallurgical recoveries of up to ~78% tin to a saleable cassiterite (tin-oxide) concentrate, representing a major breakthrough in terms of the economic significance of this project within SKY’s portfolio. In light of this processing breakthrough, SKY has completed a review of historical drilling at the Doradilla Project and established a maiden Exploration Target for the Deposit, with demonstrable upside as indicated from both previous drilling and historical records. SKY Managing Director, Oliver Davies, said: “We’ve always been aware of the potential for the Doradilla Project to host an extensive tin system, however our ability to progress this asset has been hindered by our ability to unlock the tin through a viable metallurgical processing route. Now, through the application of a combination of conventional gravity, magnetic and new flotation process steps, we have achieved economic recoveries of up to 78% tin. “This is an exciting and very significant breakthrough which transforms the potential and outlook for this project. While our primary focus remains squarely on the Tallebung Tin Project, where we are in the midst of a major resource expansion drilling campaign, Doradilla is clearly shaping up as a sizeable and very attractive pipeline development asset. “Importantly, it is a complementary development opportunity from both a commodity and geographic perspective, also being located NSW. We now see the potential for Doradilla to emerge as a second tin production hub for SKY in north-western NSW, strengthening our growth profile and adding an important new dimension to our asset base” DORADILLA PROJECT (EL 6258, SKY 100%) METALLURGICAL PROCESS TESTWORK PROGRAM Sky Metals has successfully developed a new metallurgical processing flowsheet for the Doradilla Tin Deposit, achieving a significant milestone in tin recovery. Recent metallurgical testwork on drill core from hole DOXD001— originally drilled by YTC Resources in 2008—has demonstrated that approximately 78% of tin can be recovered into a high-grade, saleable tin concentrate. The testwork focused on the oxide zone mineralisation from DOXD001, with a sample taken from between 29.4– 38.1m depth. Initial tests focused on confirming cassiterite as the dominant tin mineral through optical mineralogy and XRD analysis. The flowsheet developed begins with gravity separation, recovering around 55% of tin, followed by further concentration steps that further increase grade to 45–55% tin in a saleable concentrate. Iron contamination, which previously hindered tin flotation recovery in the -38um size range, was effectively addressed using high intensity magnetic separation and attritioning techniques, significantly improving tin grade and recovery. Early results suggest further optimisation could increase recovery rates even more. SKY will continue refining the process to position Doradilla as a reliable source of tin concentrate amid growing global demand and continued global supply challenges. Additional analysis is underway to assess the potential recovery of rare earth elements (REE) and other potential by-products from process materials, further enhancing the value of Doradilla’s polymetallic mineralisation. Initial results indicate that the REE’s report to the high intensity magnetics fractions along with iron. 2 EXPLORATION TARGET BASIS An Exploration Target has been defined for the Doradilla Tin Deposit, situated at the southwestern end of the Doradilla–Midway–3KEL (DMK) skarn line within EL6258. The target is estimated at 10-15 million tonnes (Mt) grading 0.32-0.42% Sn, representing a potential 32,000 to 63,000 tonnes of contained tin. Figure 1: Plan showing the initial Exploration Taret area and the extensions to potentially triple the Exploration Target along strike. Insert shows an image of the cassiterite (tin-oxide) (courtesy of UNSW) over 2.5km along strike beyond the margin of the initial Exploration Target and, to the southwest, the drillholes not currently in the SKY database. Showing that the Doradilla Tin Deposit continuous and open in all directions. Geological Background The Doradilla Deposit is hosted within a stratigraphically persistent calc-silicate skarn horizon, interpreted to be part of the Devonian Cobar Supergroup. This skarn unit, up to 100m thick, is semi-continuous along the DMK line and has been the focus of historical and recent exploration. Mineralisation is associated with greisenised and 2 Please refer to SKY ASX Announcement 4 July 2023 for further details. 3 skarn-altered zones adjacent to felsic intrusives, particularly the Midway Granite, which is considered a key mineralising source. Basis of the Exploration Target The Exploration Target is based on: • Historical drilling data from North Broken Hill Ltd, Renison Ltd, Aberfoyle Exploration Pty Ltd, and others between 1972 and 1984 (detailed in Table 2). • Compilation of over 94 drill collars and 5,150 assay records from SKY’s database. • Observed mineralisation style and host geology, delineating the cassiterite-rich skarn system. Geological domains were created in 3D modelling software Leapfrog Geo and wireframes for three (3) mineralised horizons (H1-H3) were exported. Data was imported into Minesight software for analysis and further modelling. Long sections of these modelled horizons are shown below in Figure 2. Table 2: Doradilla Tin Deposit: Initial Exploration Target data summary. NB: From 2007-2014 YTC Resources completed numerous resampling programs of historic diamond drill cores, confirming previous assaying from past explorers and providing a broader sampled range, often identifying new zones of tin mineralisation. Year Company 1972 1973 North Broken Hill North Broken Hill 1974 1977 1979 1980 1981 1983 North Broken Hill Renison Ltd Aberfoyle Aberfoyle Aberfoyle Aberfoyle 1984 1985 2007 2008 2012 2013 Metals Exploration Metals Exploration YTC Resources YTC Resources YTC Resources YTC Resources 2014 YTC Resources 2019 SKY Metals Total Total Holes Total Metres RAB AC RC DD RAB 16 - - - 4 5 3 8 3 1214 - - - - 4 2 7 1 1 - - 31 - - - 31 16 AC Samples in Exploration Target RC DD RAB - - 783.33 142.32 118.31 365.24 272.75 119 - - - 3 15 179 41 - - - 1417 62 1415.3 357.6 555.2 - - - - 32 18 136 26 19 3 - - 1845 - - 389.2 - - 83 - - 18 56 96 12 6 - - - 641 - - - 96 - 6 41 1214 1845 641 11080.3 119 AC 83 RC 96 DD 651 Tin (Sn) was estimated into primary blocks using Ordinary Kriging and suitable downhole variography was obtained which provided a useful estimate of the nugget and short range. However, for the level of estimate further variographic analysis was not completed. As further data is added and/or further geological interpretation completed this could be revisited later when deemed necessary to complete a Mineral Resource Estimate in accordance with JORC Code (2012). Density was varied in the model to reflect the oxidation state and depth of mineralisation. Densities were estimated from drillcore density measurements via Archimedes'/immersion method to give densities on average of 3.3t/m3 for the fresh rock and 2.2/m3 for the oxide material. 4 Figure 2: Doradilla Tin Deposit: Long sections of the block model used for the initial Exploration Target with the two main mineralised skarn horizons, namely ‘H2’ and ‘H3’, shown above. Blocks are coloured by tin (Sn) grade for those estimated. NB: Low drill density at depth highlights untested potential plunge extensions. 5 Figure 3: Doradilla Tin Deposit: Cross sections of the block model used for the initial Exploration Target with the two main mineralised skarn horizons shown, namely ‘H3’ and ‘H2’ from left to right on section, respectively. Blocks are coloured by tin (Sn) grade for those estimated within the skarn horizons. The target area includes both deeper sulphide mineralisation as well as shallow, oxide mineralisation with tin grades consistent across multiple drill intercepts. Validation drilling by SKY in 2019 confirmed previous drilling results, intercepts included: DORC001: 11m @ 1.04% Sn from 37m, including: 5m @ 1.65% Sn from 42m.1 1 Please refer to SKY ASX Announcement 10 March 2020 for further details. 6 Next Steps To advance the Exploration Target toward Mineral Resource classification, the following work is planned: • Infill and step-out drilling to confirm continuity and geometry of mineralisation, particularly to follow up: - Multiple aircore holes returning intercepts >0.5% Sn over significant widths with confirmed cassiterite-dominate mineralisation and, - Newly recognised historic drilling which has not been digitised into SKY’s drilling database. • Metallurgical test work to assess tin recovery from oxide and sulphide zones to continue to build on the excellent results achieved to date. • Culminating in geological modelling and resource estimation in accordance with JORC Code (2012). This announcement is authorised for release by the Board of Sky Metals Limited. Investors: Oliver Davies – Managing Director & CEO +61 (0) 430 359 547 Media: Nicholas Read – Read Corporate +61 (0) 419 929 046 JOIN SKY METALS’ INTERACTIVE INVESTOR HUB Visit skymetals.com.au to interact with Sky Metals’ announcements and updates To watch a video summary of this announcement & engage with SKY click here About the Tallebung Tin Project (100% SKY) Tallebung stands as an open-pit, technology enabled, near-term tin development project. Tallebung is uniquely placed to provide secure tin supply, to feed irreplaceable and rapidly expanding tin demand, essential in semiconductors, electronics and solar PV technologies. The Tallebung Tin Project is located at the site of large-scale historical tin mining in central Western NSW where tin was first discovered in the 1890s. SKY is progressively defining a large-scale hardrock tin resource with recent higher-grade tin zones discovered on the margins of the known deposit and exceptional metallurgical performance demonstrated across the entire known deposit. The shallow, open-pit tin veins combined with the ideal nature of the tin, hosted as large, discrete grains of simple tin-oxide (cassiterite minerals), all ideally lends itself to low-cost tin production advantages, including exceptional X-ray based ore sorting performance, demonstrated to upgrade the tin up to 44x, prior to low-cost gravity separation to produce a saleable tin concentrate. 7 Competent Persons Statement The information in this report that relates to Exploration Results and the Exploration Target is based on information compiled by Mr. Oliver Davies, who is a Member of the Australasian Institute of Geoscientists. Mr. Oliver Davies is an employee and director of Sky Metals Ltd and 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. Davies consents to the inclusion in this report of the matters based on his information in the form and context in which it appears. The information in this report that relates to Metallurgical Results is based on information compiled by Michael Gunn, who is a Fellow of the Australasian Institute of Mining and Metallurgy. Michael Gunn is a contractor of Sky Metals Ltd and 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 Gunn consents to the inclusion in this report of the matters based on his information in the form and context in which it appears. Previously Reported Information The information in this report that references previously reported exploration results is extracted from the Company’s ASX market announcements released on the date noted in the body of the text where that reference appears. The previous market announcements are available to view on the Company's website or on the ASX website (www.asx.com.au). The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcements. The Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcements. Disclaimer This report contains certain forward-looking statements and forecasts, including possible or assumed reserves and resources, production levels and rates, costs, prices, future performance or potential growth of Sky Metals Ltd, industry growth or other trend projections. Such statements are not a guarantee of future performance and involve unknown risks and uncertainties, as well as other factors which are beyond the control of Sky Metals Ltd. Actual results and developments may differ materially from those expressed or implied by these forward-looking statements depending on a variety of factors. Nothing in this report should be construed as either an offer to sell or a solicitation of an offer to buy or sell securities. This document has been prepared in accordance with the requirements of Australian securities laws, which may differ from the requirements of United States and other country securities laws. Unless otherwise indicated, all ore reserve and mineral resource estimates included or incorporated by reference in this document have been, and will be, prepared in accordance with the JORC classification system of the Australasian Institute of Mining, and Metallurgy and Australian Institute of Geoscientists. Table 1: Doradilla Project – Drillhole details for metallurgical sample. Hole ID Easting (MGA) Northing (MGA) RL (m) DIP Azimuth (MGA) Total Depth (m) Comment DOXD001 434145 6641818 146 -70 321 92.9 29.4–38.1m sampled for metallurgical testing. 8 JORC CODE, 2012 - TABLE 1 Section 1 Sampling Techniques and Data – DORADILLA PROJECT (Criteria in this section apply to all succeeding sections) Criteria Sampling techniques Explanation • Commentary Nature and quality of sampling (e.g. cut channels, random chips, or specific specialised industry SKY Metals: RC Drilling – the total sample (~20-30kg) is delivered via cyclone into a large plastic bag standard measurement tools appropriate to the minerals under investigation, such as downhole which is retained for future use if required. 1m intervals are split using a cone splitter on the rig into a separate calico at the time of drilling. gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling. Previous work: core/sample recovery has been recorded in many cases and it appears that efforts were made to maximise recovery and therefore sample representivity. Details of sampling procedures for earlier holes are limited but it is assumed that ‘industry standard’ methods of the time were employed. Available details are reported in subsequent sections. SKY and YTC Resources resampled and assayed a number of interval of 1970s and 1980s core available in the Londonderry Drillcore Library, part of the W B Clarke Geoscience Centre, western Sydney. These new assays supersede any old assays in the Exploration Target. • Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used. SKY Metals: For RC drilling, assay standards or blanks are inserted at least every 50 samples. All sample lab received weights show consistency with recovery and interval length. Review of past drilling reporting show evidence of Sample intervals and preparation following standard industry practice and review of available drill core has confirmed this. • Aspects of the determination of mineralisation that are Material to the Public Report. In cases SKY Metals: Each sample was dried, crushed and pulverised as per standard industry practice. where ‘industry standard’ work has been done this would be relatively simple (e.g. ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a RC Drilling – the total sample (~20-30kg) is delivered via cyclone into a large plastic bag which is retained 30 g charge for fire assay’). In other cases, more explanation may be required, such as where for future use if required. 1m intervals are split using a cone splitter on the rig into a separate calico at there is coarse gold that has inherent sampling problems. Unusual Commodities or the time of drilling. Where mineralisation has not been logged, 4m Composites have been made by using mineralisation types (e.g. submarine nodules) may warrant disclosure of detailed information. a spear to Combine equal amounts of samples from each 1m calico. The primary metal of interest, tin (Sn) and also tungsten (W) were determined by lithium borate fusion XRF (method ALS – ME-MS85) – considered appropriate for these elements. Multielement assaying was Completed for 48 elements by 0.25g four-acid digest with ICPMS determination (method ALS – MEMS61) Drill core sampling is by sawn half or quarter core PQ, HQ, NQ or BQ core. Nominal sample intervals are 1m with a range from 0.3m to 2.0m. Early drilling was completed in imperial units with conversions by SKY and YTC Resources. Drilling techniques • SKY Metals: Reverse circulation (RC) drilling using 110mm rods, 144mm face sampling hammer. Drill type (e.g. core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (e.g. core diameter, triple or standard tube, depth of diamond tails, faceHistoric drilling completed with RAB, AC and HQ/NQ/BQ diamond core drilling. sampling bit or other type, whether core is oriented and if so, by what method, etc) Drill sample recovery • Method of recording and assessing core and chip sample recoveries and results assessed. 9 SKY Metals: RC drilling - high capacity RC rig was used to enable dry samples collected. Drill cyclone is Criteria Explanation • • Commentary Measures taken to maximise sample recovery and ensure representative nature of the samples. cleaned between rod changes and after each hole to minimise cross-hole contamination. Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material Sample weights are recorded for each sample. Recoveries were generally excellent and consistent, however, if samples were wet the recoveries were less consistent. There is no known relationship between sample recovery and grade. Where samples recoveries are less than 95% there is no relationship observed between grade and sample recovery. Relationships between sample recovery and grade are not considered significant where recoveries exceeded 95% in fresh rock. DD holes were typically drilled as NQ/BQ size core for older holes. It is assumed that earlier DD holes were drilled with a standard core barrel. SKY completed core orientation where possible but there are no records of core orientation for older holes. Confirmed with inspection of historic core. Logging • • • Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography The total length and percentage of the relevant intersections logged Systematic geological and geotechnical logging was undertaken when the holes were originally drilled. Data collected includes: • Nature and extent of lithologies. • Relationship between lithologies. • Amount and mode of occurrence of ore minerals. • Location, extent, and nature of structures such as bedding, cleavage, veins, faults etc. Structural data (alpha & beta) are recorded for orientated core. Geotechnical data such as recovery, RQD, fracture frequency, qualitative IRS, microfractures, veinlets and number of defect sets. For some geotechnical holes the orientation, nature of defects and defect fill are recorded. Both qualitative and quantitative data is collected. RC chips, half or quarter core (BQ/NQ/HQ) & ¾ core (PQ) samples are retained in trays for future reference. Sub-sampling techniques and sample preparation • • • • • • If core, whether cut or sawn and whether quarter, half or all core taken If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry For all sample types, the nature, quality and appropriateness of the sample preparation technique Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples Measures taken to ensure that the sampling is representative of the in-situ material collected, including for instance results for field duplicate/second-half sampling. Whether sample sizes are appropriate to the grain size of the material being sampled SKY Metals: RC drilling - the total sample (~20-30kg) is delivered via cyclone into a large plastic bag which is retained for future use if required. 1m intervals are split using a cone splitter on the rig into a separate calico at the time of drilling. Where 4m Composites have been made, a spear is used to split equal amounts of each metre into the 4m Composite. Samples were dried crushed and pulverised to 90% passing 75 microns. This is considered to appropriately homogenise the sample to allow subsampling for the various assay techniques. SKY: Certified Reference Material (CRM) and blanks were inserted at least every 50 samples to assess the accuracy and reproducibility of the drill core results. The results of the standards were to be within ±10% variance from known certified result. If greater than 10% variance the standard and up to 10 samples each side were re-assayed. SGS conducted internal check samples every 20 for multielement assay. RC drilling - duplicate samples are collected of re-split intervals. Duplicates generally show excellent repeatability. 10 Criteria Explanation Commentary Sample sizes are industry standard and considered appropriate Few details of sub-sampling techniques and sample preparation are available for the earlier DD holes. It is assumed that ‘industry standard’ procedures of the time were applied and confirmed with later core inspection. Quality of assay data and laboratory tests • • • The nature, quality and appropriateness of the assaying and laboratory procedures used and SKY Metals: Standard assay procedures performed by a reputable assay lab, (ALS), were undertaken. whether the technique is considered partial or total Forty-eight elements Ag, As, Cu, Fe, Pb, S, Zn are digested by four-acid digest then analysed by ICPMS For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in (method ME-MS61). determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc Sn and W assays were generated by lithium borate fusion XRF (method ME-MS85) – considered Nature of quality control procedures adopted (e.g. standards, blanks, duplicates, external appropriate for these elements. laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision have been established No geophysical tools were used in the determination of assay results. Certified reference material or blanks were inserted at least every 50 samples. Standards are purchased from Certified Reference Material manufacture Companies: Standards were purchased in foil lined packets of between 60g and 100g. Different reference materials were used to cover high grade, medium grade, low grade, and trace ranges of elements, with a primary focus on Sn and Cu. Fusion XRF was used for the earlier DD holes and is considered best practice for assaying of Sn and W. Few details are available for the assay procedures for the historic holes, however, inspection and reassays of the drillcore aligns with the assays received. Verification of sampling • and assaying • • • SKY Metals: Drill data is Compiled and collated and reviewed by senior staff. External consultants do not The verification of significant intersections by either independent or alternative Company routinely verify exploration data until resource estimation procedures are deemed necessary. The personnel. intersection calculations were viewed by >1 geological personnel. The use of twinned holes. Documentation of primary data, data entry procedures, data verification, data storage (physical Twinned holes have been used by past explorers to validate the results achieved and have confirmed and electronic) protocols. these historic results. Discuss any adjustment to assay data Drill Hole Data including: meta data, any gear left in the drill hole, lithological, mineral, survey, sampling, magnetic susceptibility was collected and stored as physical and electronic copies or entered directly into an excel spread sheet using drop down codes. When Complete the spreadsheet was Combined into a master excel spreadsheet as the drill hole database. Assay data was provided by ALS via .csv spreadsheets. The data was validated using the results received from the known certified reference material. Hard copies of the assay certificates were stored with drill hole data such as drillers plods, invoices, and hole planning documents. Assay data is not adjusted. Earlier drilling: There is no documentation available relating to the verification of significant intersections by either independent or alternative company personnel. However, it seems unlikely that significant intersections were not verified by alternative personnel at the time. All primary data was sourced from historical records, either physical or electronic. Records of historical data entry procedures, data verification and data protocols are lacking. 11 Criteria Explanation Commentary There is no evidence of any adjustments to historical assay data. Location of data points • • • Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation. Specification of the grid system used Quality and adequacy of topographic control SKY Metals: Historic drill hole collars were located using either a licenced surveyor or on a local imperial or metric grid. Conversion of the local grid co-ordinates has been undertaken by previous exploration Companies. SKY has used DGPS surveying of drillholes (± 0.1m) to accurately locate them. All coordinates are based on Map Grid Australia Zone 55E, Geodetic Datum of Australia 1994. Earlier drilling: historic drill hole collars were located using either a licenced surveyor or on a local imperial or metric grid. SKY has used DGPS surveying of drillholes (± 0.1m) to accurately locate them, or handheld GPS (+/-3m). Where handheld GPS has been used, SKY will DGPS them at a later date. Data spacing and distribution • • • Data spacing for reporting of