Alderan Resources : Rio Tinto identifies new magnetic anomalies at Frisco

AL8.AX

ASX ANNOUNCEMENT

21 January 2022

Rio Tinto identifies new magnetic anomalies at

Alderan's Frisco Project

HIGHLIGHTS

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Rio Tinto subsidiary Kennecott Exploration Company identifies three new magnetic

anomalies at Alderan's Frisco project in Utah, USA

• Drone magnetics improves anomaly resolution at Cactus Mine, Reciprocity and North

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Carbonate prospects.

• Kennecott planning field inspections and surface sampling in Q1, 2022 ahead of a decision

on drilling.

• Kennecott can earn up to 70% interest in Frisco through US$30 million exploration spend over

10 years under its farm-in agreement with Alderan.

Alderan Resources Limited (ASX:AL8) (Alderan or the Company) is pleased to announce a UAV (drone) magnetic survey completed by Rio Tinto subsidiary Kennecott Exploration Company (KEX or Kennecott) at

Alderan's Frisco Project in Utah, USA has identified three new targets.

personalThe survey aimed to identify new magnetic targets and provide better resolution of existing targets1. In addition to identifying the new magnetic low targets, it has better defined the Cactus Porphyry, Reciprocity and North

Carbonate anomalies which have been the subject of previous exploration. KEX plans to undertake field i spections and surface sampling over the targets in Q1, 2022 ahead of a decision on drilling.

Frisco is located in western Utah, USA and is the subject of an option agreement between KEX and Alderan's 100% subsidiary Volantis Resources Corp.2 KEX can earn up to a 70% interest in Frisco by spending US$30 million in three stages over 10 years. Drilling completed by KEX at Frisco in 2020 returned results including:3

Alderan Managing Director Scott Caithness said:

"Kennecott's drone magnetic survey aimed at gaining a better understanding of the geology and structure of the Frisco area has successfully identified new magnetic targets and improved the resolution on already known Foranomalies. Kennecott is planning to carry out sampling over the new target areas ahead of a decision on drilling

in Q1, 2022."

"It is encouraging that Kennecott's exploration at Frisco continues to deliver results indicating potential for a Rio Tinto scale porphyry deposit."

risco Exploration Update

KEX completed UAV (drone) orthophoto and magnetic surveying over the Frisco project area in June 2021. The orthophoto survey enabled the development of a high quality digital elevation model which was used to enable safe low altitude flying of the magnetics survey in rugged terrain. The surveys were flown by MWH Geo-Surveys International Inc. and involved collecting 1,435 line kilometers of UAV magnetics data at a line spacing of 25m over an area of 34.4km2 (survey specifications are included in the attached JORC table).

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ASX ANNOUNCEMENT

21 January 2022

Processing of the magnetic data produced total magnetic intensity, reduction to pole and first vertical derivative of reduction to pole images (see Figures 1-3). Following modelling and interpretation, KEX identified three new magnetic low anomalies and better resolved known anomalies at the Cactus mine and

onlyReciprocity prospects and east of the historical Mountain Queen mine in the Northern Carbonates zone.

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Figure 1: Frisco drone magnetic survey area - total magnetic intensity image.

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ASX ANNOUNCEMENT

21 January 2022

Figure 2: Frisco drone magentic survey area - reduced to pole image.

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21 January 2022

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Figure 3: Frisco drone magnetic survey area - reduced to pole first vertical derivative image.

Next Steps

KEX is planning field inspections and surface sampling over the new anomalies during Q1, 2022 to determine their potential to host porphyry copper mineralisation. KEX will make a decision on drilling pending results of the surface exploration.

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ASX ANNOUNCEMENT

21 January 2022

Frisco Project

The Frisco Project lies approximately 300km southwest of Salt Lake City in Utah (Figure 4) and containsonlynumerous historical copper-gold and lead-zinc-silver mines such as the Horn Silver mine and the Cactus and Imperial copper mines. Mineralisation at Frisco consists of skarn or carbonate replacement deposits containing copper and other base and precious metals at Accrington, plus breccia-hostedcopper-gold-silver mineralisation such as at Cactus Mine. Historical exploration has also intersected copper-molybdenum mineralisation within

several deeper holes in Upper Cactus Canyon.

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personalF isco was explored historically for copper and gold, including by Alderan, prior to signing an agreement with

KEX in November 2019. Under the terms of the farm in agreement, KEX can earn up to a 70% interest in the project through spending US$30 million on exploration in three stages over a total of 10 years. The first stage r quires KEX to spend US$6.0 million by November 2023 to earn a 55% interest.

KEX exploration targets at Frisco are:

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KEX completed nine holes at Frisco with results for holes SAWM0001-0004 released by Alderan on 11 March 2021 and results for holes SAWM0005-0009 released on 11 June 2021.

ENDS

This announcement was authorised for release by the Board of Alderan Resources Limited.

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Disclaimer

Alderan Resources Ltd. published this content on 20 January 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 20 January 2022 21:31:07 UTC.