Ann: Exploration Target for Andover Lithium Project, page-19

Page 5 of the announcement is quoted below. The first sentence I have highlighted makes it clear that the estimate for AP11 is somewhat conservative. The second highted sentence in the last paragraph, in conjunction with the first sentence in the same paragraph, may also suggest the estimate is conservative. However, it is unclear if the 300m down dip extent was used for AP11 or just the other pegmatites the last paragraph is in the section referring to other pegmatites - if it was then the estimate is clearly conservative. If the 300m does not apply to AP11 then the level of conservatism in the other pegmatites is unclear.

"Volume (Tonnage) Estimates
AP0011 pegmatite
The central portion of Target Area 1 containing the AP011 pegmatite has been drilled on a 100mx50m drill spacing, robust geological modelling was completed, and the mineralised portions of the pegmatites were wireframed (see Figures 5 and 6). This wireframe forms the basis of the volume estimation for the mineralised portion of the AP011 pegmatite within the extents of the drilling. It is noted that, the mineralisation remains open down-dip and along strike
and the wireframe does not take into account potential extensions in these open directions.

In addition to providing a volume estimate for the AP011 mineralisation, the modelling also provided valuable information about the structural setting and nature of the mineralisation within the pegmatites. This information has been used to make inferences about the most
probable nature of mineralisation within the other pegmatites with similar surface expression.

Other Pegmatites
The entire strike length of Target Areas 1 and 3 has been mapped by Azure geologists with previously reported rock chip sampling confirming the presence of high-grade lithium mineralisation (Table 1 ASX: 12 October2022 'Lithium-Bearing Pegmatites Identified at Andover',
Table 1 ASX:, 19 October 2022 ' High Grade Lithium at Andover' and Table 1 ASX: 21 March 2023'More Outstanding High Grade Lithium at Andover').
Recent mapping and rock chip sampling in Target Area 2 has confirmed that high-grade lithium mineralisation hosted in spodumene-rich pegmatites extends from Target Area 1, where intensive drilling is currently being carried out, into and through Target Area 2 (see Figures 2 and 3 and Table 3). The confidence in the full extents and continuity of the mineralised pegmatites observed at surface in Target Area 2, are further enhanced by high resolution drone imagery and airborne magnetic and radiometric datasets.

This surface information was combined with data from the AP0011 drilling to calculate volume estimates for mineralisation in pegmatites where drilling data doesn’t exist or is insufficient. The surface extent of the mineralisation as defined with mapping and sampling was used to measure strike extent of each pegmatite, with true thickness calculated from the width of the surface expression and the measured or inferred dip.

Lithium mineralisation in AP0011 pegmatite has been drilled from surface to more than 450m down-dip (eg: in ANRD0017) (Pages 2-3; ASX: 4 August 2023;'209m High-Grade Lithium Intersection at Andover'), while mineralisation in AP0012 has been drilled over 300m down-dip in ANDD0199 (Page 3 and Table 1; ASX: 13 February 2023; 'High Grade Lithium Drill Hit at Andover'). A dip extent of 300m was used in the volume estimates for pegmatites for the Target Areas,
which is considered reasonable given the data available. Considering what is observed in drilling at AP0011, it has been estimated that 70% of each pegmatite is mineralised. The mineralisation volume estimate for these pegmatites was made using the following formula:
• Mineralisation Volume (m3
) = Strike Length (m) x True Thickness (m) x Dip Ext