Communicators

Highlights

-          Jadar to acquire Moreton Resources Limited’s (In Liquidation) (ASX:MRV) metals portfolio comprising 5 exploration tenements (EPM’s), 1 mining lease (ML) and in-situ crushing, screening, stacking, treatment and refining facilities, located in the highly prospective Silver Spur Basin of Southern Queensland.

-          Granite Belt tenement portfolio includes the Granite Belt silver project which contains an estimated total JORC Mineral Resources of 12.1Mt at 53g/t Ag for 20.3 million ounces of contained silver[i].

-          The tenement portfolio also includes three (3) copper and silver JORC exploration targets:

-          Hornet prospect – exploration target is in the range of 500,000 to 1,500,000t at 1-2% Copper[ii];

-          Harrier prospect – exploration target is in the range of 500,000 to 1,500,000t at 1.5% to 2.5% Copper, and 80 g/t to 120 g/t Silver[iii];

-          Hawker prospect – exploration target is in the range of 100,000 to 500,000t at 1.0-1.5% Copper and 30g/t to 60g/t Silver[iv];

The potential quantity and grade of the above Exploration Targets are conceptual in nature, as there has been insufficient exploration to estimate a Mineral Resource. It is uncertain if further exploration will result in the estimation of a Mineral Resource.

together with ~16 areas of interest on 190km2 tenure containing indications of high grade silver and copper, with additional indications of zinc, lead and gold (including Hornet, Harrier and Hawker mentioned above) with walk up targets ready for testing with little recent exploration completed.

-          Transaction subject to Jadar completing satisfactory due diligence, together with necessary consents and approvals.

August 24, 2020 – Jadar Resources Limited (ASX:JDR) (“Jadar”, the “Company”) is pleased to provide the following update regarding the acquisition of MRV Metals Pty Ltd’s (In Liquidation) (“MRV Metals”) Southern Queensland Granite Belt tenement portfolio, including MRV Metal’s Granite Belt Silver mining operations which is currently on care and maintenance (including all permits, plant and equipment and inventory). Jadar is continuing its due diligence and will announce further information with regard to the proposed acquisition in due course. Please refer to the Company’s announcement dated 3 August 2020 for further details regarding the proposed transaction and acquisition terms and conditions.

As part of its due diligence completed to date, Jadar has carried out a review of Morton Resources Limited (in Liquidation) (ASX: MRV) (“Morton Resources”) previously released JORC 2012 Resources and Exploration Targets and provides the following additional information regarding the tenement portofolio and resources subject of the abovementioned transaction.

Granite Belt Tenement Portfolio

Located approximately 3 hours south-west of Brisbane in South East Queensland, the Granite Belt tenement portfolio is comprised of 5 exploration permits and 1 mining lease located approximately 7km east of the town of Texas. Previously owned by MRV Metals (a subsidiary of Moreton Resources) and prior to that Alcyone Resources Ltd and others, work originally commenced on the site in early July 2011, when the former owner commenced silver production[v].

The project, previously known as Texas Silver, encompasses the Twin Hills Silver Mine, as well as a wider portfolio of advanced silver and polymetallic base metal exploration targets, including amongst others the Mount Gunyan, Hawker, Harrier, and Hornet deposits. Extensive historical drill data and associated information derived from past exploration programs within the Granite Belt Project have delivered significant Silver prospects and is of potential for Copper, Zinc and Lead deposits. However, due to ongoing focus of the startup of mining operations by the previous owners, the majority of the prospects identified over the years have had only minimal exploration completed.

Through this potential acquisition, Jadar is also acquiring an extensive historical drill data and associated analysis data package covering a large and highly prospective project area.  This data package will be reviewed, as part of the due diligence and exploration prospects advanced as a matter of priority.

History & Setting

The Texas-Stanthorpe region hosted a number of mining operations in the 1890s. The region is dominated by the Texas Beds, a series of sediments and volcanics accumulated in the Carboniferous during continental accretion. Later local rifting in the Texas area in the Permian gave rise to a sub-basin and the accumulation of the Silver Spur Beds. The Silver Spur Beds are highly mineralised compared to the surrounding Texas Beds (Halloran, 2015) and displayed in blue in Figure 1 compared to the Texas Beds in grey.

Styles of mineralisation in the area include both epithermal/meso-thermal Ag-Au and sedimentary related base metals with volcanic affinity. The Silver Spur Basin trends NW which can influence stratigraphy and structure. Fracturing is generally vertical and also often north-south. The low-sulphidation epithermal mineralisation is associated with potasic alteration providing a useful exploration signature. The Silver Spur Beds display an unusually high Ag-Au ratio for epithermal mineralisation resulting in silver dominated deposits.

Significant exploration in the area commenced in 1994 with Macmin Ltd undertaking exploration and resource definition drilling predominantly at the Twin Hills and Mt Gunyan (3 km to the northeast) with some minor drilling at the historic Silver Spur Mine (2 km to the southeast). These led to the definition of Mineral Resources at Twin Hills and Mt Gunyan. Macmin obtained a Mining Lease for Twin Hills and developed a heap leach operation from 2000 and commenced production in 2008 to 2009. The operation was re-commissioned by Alcyone in 2011 and production continued until early 2014 when operations ceased due to funding and production issues. The operation was then restarted by Moreton Resources from 2016 until early late 2019 until operations ceased due to funding and production issues.

The region has hosted a number of mining operations in the 1890’s with the most significant being the Silver Spur mine which produced 100 kt at 800 g/t Ag, 25% Zn and 13% Pb (see Alcyone announcement 18/10/2012, reported under JORC 2004) and the Twin Hills silver mine that produced 1.4Moz recoverable silver from 2008 to 2014. In quarterly report ending 31 December 2019, Moreton Resources Ltd reported that it had produced 13,177 troy ounces of silver, with half-year sales totalling 32,582 troy ounces.[vi]

Figure 1: Geology and tenements of the Texas area, Queensland, (Source: Queensland State Government web service MinesOnlineMaps; website accessed 06 January 2016)

For further information, please contact:

Luke Martino

Non-Executive Chairman

Tel: +61 8 6489 0600

E: luke@jadar.com.au

Jadar Resources Limited

311-313 Hay Street Subiaco, Western Australia 6008

F: +61 (0) 8 9388 3701

www.jadar.com.au

Please find the full press release under the following link: https://www.asx.com.au/asxpdf/20200824/pdf/44lsy9kwhbcfsw.pdf

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

Competent Person Statement

The information in this announcement that relates to the sampling techniques data and the reporting of exploration гesults and estimation and reporting of mineral resources at the Granite Belt Project is based on data compiled by Ðœr Dejan Jovanovic, а сompetent Ñ€erson who is a Member of European Federation of Geologist (EFG). Mr Jovanovic is an employee of Jadar Resources Ltd and has sufficient exÑ€erience which is relevant to thе 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 Jovanovic consents to the inclusion in this dоcument of the matters based on his information in the form and context in which it appears.

Forward Looking Statement

Forward Looking Statements Statements regarding Jadar´s plans with respect to its mineral properties and programs are forward-looking statements. There can be nо assurance that Jadar’s plans for development of its mineral properties will proceed as currently еxpected. Therе can also be no assurance that Jadar will be able to confirm the presence of additional mineral resources, that any mineralisation will prove to be economic or that a mine will successfully be developed on any of Jadar’s mineral properties. The performancе of Jadar may be influenced by a number of factors which are outside the control of the Company and its Directors, staff, and contractors. These statements include, but are not limited to statements regarding future production, resources or reserves and exploration results. All of such statements are subject to certain risks and uncertainties, many of which are difficult to predict and generally beyond the control of the company, that could cause actual results to differ materially from those expressed in,  or implied or projected by, the forward-looking information and statements. These risks and uncertainties include, but are not limited to: (i) those relating to the interpretation of drill results, the geology, grade and continuity of mineral deposits and conclusions of economic evaluations, (ii) risks relating to possible variations in reserves, grade, planned mining dilution and ore loss, or recovery rates and changes in project parameters as plans continue to be refined, (iii) the potential for delays in exploration or development activities or the completion of feasibility studies, (iv) risks related to commodity price and foreign exchange rate fluctuations, (v) risks related to failure to obtain adequate financing on a timely basis and on acceptable terms or delays in obtaining governmental approvals or in the completion of development or construction activities, and (vi) other risks and uncertainties related to the company’s prospects, properties and business strategy.  Our audience is cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof, and we do not undertake any obligation to  revise and disseminate forward-looking statements to reflect events or circumstances after the date hereof, or to reflect the occurrence of or non-occurrence of any events.

[i] See MRV ASX announcement “AGM Presentation” dated 20 November 2019 (https://www.asx.com.au/asxpdf/20191120/pdf/44bs2678ddl1w7.pdf); MRV Mineral Resource Estimate (JORC 2012) reproduced from the original announcements 19 September 2016 (https://www.asx.com.au/asxpdf/20160919/pdf/43b8x0ch0pz4py.pdf) and 5 October 2016 (https://www.asx.com.au/asxpdf/20161005/pdf/43bqzcky6cpl5w.pdf).

[ii] See MRV ASX announcement ”MRV Metals confirms Significant Target at Hornet” dated 19 July 2016 (https://www.asx.com.au/asxpdf/20160719/pdf/438ncyfdlt0tpp.pdf).

[iii] See MRV ASX announcement “MRV Metals confirms Harrier Prospect potential” dated 18 July 2016 (https://www.asx.com.au/asxpdf/20160718/pdf/438mmwblmffbkg.pdf).

[iv] See MRV ASX announcement “Hawker Prospect” dated 18 July 2016 (https://www.asx.com.au/asxpdf/20160718/pdf/438mcr29bxdwys.pdf).

5 See MRV ASX announcement “MRV Metals Pty Ltd acquires highly prospective tenements” dated 5 February 2016 (https://www.asx.com.au/asxpdf/20160205/pdf/434w262n7cfwns.pdf).

[vi] See MRV ASX announcement “MRV Metals Pty Ltd 31 December 2019 quarterly report” dated 3 February 2020 (https://www.asx.com.au/asxpdf/20200203/pdf/44drtzcxrj28jl.pdf)