Jadar Resources Ltd.: Acquisition of Khartoum Tin-Silver-Tungsten Project in North Queensland Australia

9 February 2021

Highlights

-          Jadar has signed a Sales and Purchase Agreement for the 100% acquisition of the Khartoum Tin, Silver and Tungsten project.

-          Tenement package consists of 5 exploration leases covering approximately 396.39km2 in the tightly held prospective Herberton mineral field.

-          Potential for world class deposit with 50km2 of outcropping mineralized rock formations.

-          Highly prospective exploration area with a large number of old Sn, Ag-Pb-Zn, Cu, W mines and mineral occurrences within tenement area.

-          170km2 of soil sampling comprised of 20,537 samples completed across tenements as well as 2D and 3D mapping completed to identify most prospective areas.

-          Multiple high priority drill targets identified with 1 target drilled. Targets identified through review of historical drilling with all 6 historical holes intersecting mineralisation. Best intercepts of 104m at 0.21% Sn from 12m and 34m at 0.26% Sn from 99m.

-          Metallurgical testwork of drill cores produced 71% tin recovery from gravity and flotation.

-          360 rock chip samples returned multiple high grade rock chip and historic mine mullock sample assays, which include peaks of 874g/t Ag, 15.25% W, 5.47% Sn and 3.39g/t Au.

-          High grade channeling intersected mineralization at Khartoum with peaks of:

• 8m at 1.7% Sn, 90g/t Ag, 0.22g/t Au and 0.23% Cu – Undrilled
• 15m channel of greisen 0.4% W and 32g/t Ag – Undrilled
• 1m channel of shear in granite 2,800g/t Ag, 2% Cu, 3.9% Pb and 0.4% Zn – Undrilled

Jadar Resources Limited (ASX:JDR) (“Jadar”, the “Company”) is pleased to announce that it has signed a sale and purchase agreement (SPA) with Jervois Mining Limited (ASX:JRV) (Jervois) for the purchase of the Khartoum Tin, Silver and Tungsten tenement portfolio. Total consideration is AUD$300,000 cash from existing reserves.

Following execution of the SPA Jadar will have 30 days to complete due diligence. Completion of the transaction is subject to Jadar obtaining shareholder approvals and meeting all ASX requirements to affect the transaction, if required.

Jadar Resources’ Executive Director Adrian Pual commented:

The inclusion of the Khartoum Tin, Silver and Tungsten project will add an additional layer of diversifaction to Jadar’s rapidly growing asset portfolio whilst also increasing exposure to materials that are considered key to electrical products, such as tin and silver.

Tin’s outstanding recent performance has seen prices rise dramatically over the last 9 months, currently hovering around the $23,000 per tonne mark, levels not seen since mid-2014. This is largely due to tin’s use as a solder in electronics. The COVID pandemic has created increased demand for electrical goods due to a need to work from home as well as increased consumer spending on electronics generally given an in-ability to travel.

This increased demand, with limited new supply in sight, has been very favourable for tin prices. The Khartoum Project is of particular interest given the prospectivity of the area, not only for tin, but also silver, tungsten, bismuth, gold, and copper. Additionally, historical exploration work undertaken will assist in rapidly developing targets for drilling at the project. Specifically, historical drilling results as well as high-grade channelling areas which remain undrilled. This will position Jadar to commence activity onsite swiftly following completion of due diligence.

Khartoum Tenement Portfolio and Setting

Located approximately 100km south west of Cairns, the Khartoum tenement package consists of 5 exploration permits EPM14797, EPM19112, EPM19113, EPM19114 and EPM19203 covering a total area of 396km2.

Khartoum has been identified as particularly prospective for tin, silver and tungsten mineralisation hosted by a Late Carboniferous-Early Permian felsic intrusive.

The area contains over fifty tin, tungsten, bismuth and gold occurrences. Results from rock chip sampling indicate that high grade tin is mostly associated with cassiterite bearing quartz veins in greisen and disseminated cassiterite in greisen.

Regional mapping identified a 9km by 3km zone of alteration around shear zones in the granite that consists of intensely silica altered greisen zones, sometimes containing quartz veins. Maximum rock chip and historic mine mullock sample assays include 15.25% W, 3.78% Sn, 0.13% Bi and 438 ppm Ag. Soil sampling identified fifteen highly anomalous areas mainly for tin.

Figure 1 - Khartoum tenement package locations West of Herberton and North of Mt Garnet

Tenement Portfolio Summary

*Renewal submitted

Previous Exploration Results

In 2006 a rock chip sampling program was undertaken by previous holders of the tenements. The program consisted of collection of 360 rock chip and mullock samples across EPM14797. Of the 360 samples collected peak assays include 874g/t Ag, 15.25% W, 5.47% Sn and 3.39 g/t Au. In addition to the peak assays there were multiple other higher grade mineralized samples including

-          15 samples greater than 50g/t Ag

-          20 samples greater than 0.1% W

-          58 samples greater than 0.1% Sn

-          3 samples greater than 1g/t Au

These samples were selected to show the exploration potential of the tenements. The remainder of the samples collected show mineralization but to a lesser extent. Figure 2 below shows the sample locations which are within EPM14797. All results can be see in the attachment of this announcement.

20,537 soil samples have been assayed to allow mapping and development of 2D and 3D regional prospectivity models to refine future exploration programs. The location and dispersement of soil sampling within EPM14797 can be seen below in figure 3.

Figure 2 - 2006 Rock chip and mullock sample locations within EPM14797

Figure 3 – Soil sampling locations within EPM14797

Acquisition Terms

Jadar has entered into a sale and purchase agreement (SPA) with Jervois Mining Limited (ASX:JRV) (Jervois) to acquire 100% of the Khartoum exploration temenet package (Khartoum Tin-Tungsten Project), in return for a cash payment of AUD$300,000.

Subject to Jadar board approval and ASX approval and upon execution of the SPA Jadar will have 30 days to complete due diligence on the project and upon completion of due dilligence will pay the full cash consideration of AUD$300,000 to Jervios.

ENDS

For further information, please contact:

Luke Martino

Non-Executive Chairman

Tel: +61 8 6489 0600

E: [email protected]m.au

Adrian Paul

Executive Director

Tel: +61 8 6489 0600

E: adrian@jadar.com.au

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 Khartoum Tin-Silver-Tungsten project is based on information compiled by Dr Howard Carr who is a Member of the Australian Institute of Geoscientists. Dr Carr is contracted exclusively to Jadar. Dr Carr 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”. Dr Carr consents to the inclusion in this announcement of the matters based on 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.

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