Ann: Assays up to 4.2% Li2O Confirm New Spodumene Pegmatites, page-18

The announcement is encouraging, indicating the potential discovery of a significant deposit. This development reinforces Charger Metals' decision to partner with Rio Tinto, especially considering their farm-in agreement and joint venture, where Rio can invest up to $40 million in the Lake Johnston projects for a 75% stake. This collaboration could mark a pivotal moment akin to Azure Minerals' significant success.

• Visible Spodumene Indicators: The presence of visible spodumene in rock chip samples is a positive indicator. In general, visible mineralization increases the likelihood of finding high-grade lithium in drill assays. However, visible mineralization alone doesn't guarantee high grades throughout the deposit.

• Consistency Across Samples: The announcement mentions multiple samples with high-grade lithium results (4.2%, 3.7%, and 3.5% Li2O). Consistent high-grade results across several samples increase confidence in the potential for high-grade lithium in the broader area.

• Extent of Pegmatite Trend: The identified trend of spodumene-bearing pegmatite extends over 1.2km. The size of this trend is encouraging, as larger systems can have a higher likelihood of containing economically viable mineral deposits.

• Historical Data and Regional Geology: The historical and regional geological context can inform predictions. If the area has a history of high-grade lithium pegmatite deposits, this could increase the probability of finding high-grade lithium in new drill assays.

• Depth and Distribution of Pegmatites: The depth at which the pegmatites occur and their distribution (such as whether they are continuous or disjointed) will also affect the chances of finding high-grade lithium. These factors would be assessed during drilling.

• Geological Complexity: The geological complexity of the area can impact the likelihood of successful drilling. Simple geological settings with well-understood controls on mineralization might offer higher chances of success compared to complex, poorly understood areas.

Given these factors, a rough estimation might be suggested. In a favorable scenario with visible indicators, consistent high-grade samples, and a large system in a well-understood geological setting, the probability of encountering high-grade lithium in drill assays might be moderately high, perhaps in the range of 40-60%. However, in a less favorable scenario, where these indicators are weaker or less consistent, the probability could drop significantly, perhaps to 10-30%.