Alien Metals Limited (UFO.L) Final Assay Results & Maiden Drill Programme Plans

Final Assay Results and Maiden Drilling Programme Plans at Hamersley Iron Ore Projects

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Alien Metals Ltd (LSE AIM:UFO) (“Alien Metals”, “Alien” or the “Company”), a minerals exploration and development company, is pleased to advise that the Company has received final laboratory analysis of assays and submitted drilling plans to the Mines Department for next stage exploration at the Company’s Hamersley Iron Ore Projects. This follows the initial exploration update provided on 29 October 2020.

Highlights :

– Assays received for 95 rock-chip / grab samples from Hamersley Iron Ore

o Highs of 66.95 % Fe from the Hancock project and 64.39 % Fe from the Brockman project with consistent DSO grades where expected (with the full assay results set out in the Annexure at the end of this announcement)

o Assay results confirm high-grade results from preliminary handheld XRF results

o High-grade sample locations extend previously mapped prospective areas which are outside of those incorporated into the Company’s maiden Exploration Targets

– Maiden Reverse Circulation (RC) drilling programme finalised for Hancock Ranges Project, which will consist of between 3,500-4,000m

o Field work has confirmed drilling access areas

o Program of Works (“POW”) for drilling submitted, with drilling to commence in Q1 2021

o Drilling to test the high-priority Kalgan prospect in the Hancock Ranges tenement, which has been mapped over a strike length of over 3km.

Chief Executive Officer, Bill Brodie Good said :

“The laboratory assays have confirmed high-grade iron ore results of up to 66% Fe. These are excellent results and confirm the findings from XRF readings taken in late October. Our technical team has scoped out drilling access at the Hancock Ranges Project and in particular the Kalgan prospect. Additionally, the team has taken additional samples from Kalgan to in-fill areas covered from the October programme.

The Company has identified the highest priority target now and is finalising the first targets maiden drilling programme, which will consist of between 3,500-4,000m of RC drilling on the Kalgan prospect target in the Hancock Ranges tenement. With the POW submitted, we hope to be on the ground as soon as possible. Following the recent capital raising, which was strongly supported, the Company will be advancing exploration across the entire project portfolio and looks forward to updating the market regarding Hamersley, Elizabeth Hill and Mexico.”

Figure 1: Location of the Brockman and Hancock Ranges Iron Ore projects within the prolific iron ore producing region of the Pilbara

The two projects are within the Hamersley Province of Western Australia, known as one of the premier iron ore producing regions of the world. The Brockman Project (E47/3953) is located in the west Hamersley Province, 100 kilometres (“km”) northwest of the Rio Tinto iron ore mining town of Tom Price, and 90km west of the Tom Price to Dampier mine railway. The Hancock Ranges Project (E47/3954) is located in the east Hamersley Province, 15km north of the BHP iron ore mining town of Newman, and 20km west of the Newman to Port Hedland mine railway.

Hancock Ranges Project (E47/3954)

The 2 main prospects in the Hancock Ranges Project, being the Sirius Extension and the Kalgan prospect, were mapped as part of the recent field programme. Helicopter support was utilised to transport the team directly into areas of the Kalgan prospect to maximise field time against travel time and over 40 further samples were taken with more detailed and positive mapping carried out.

Table 1 below outlines a selection of the high grade assay results from a total of 37 rock chip samples taken over the Hancock Ranges Project, with a maximum of 66.95%Fe with several more samples within contiguous ridges returning over 60% Fe as well (full results in Annexure).

Table 1: High-grade results, Hancock Ranges Iron Project, November 2020

Seven mapping transects were walked across the Kalgan Prospect to test for the presence and lateral extent of previously reported high grade occurrences of iron ore. In situ outcrop of rock was mapped with 128 mapping points and 25 rock chip samples collected from mainly Banded Iron Formation (BIF) outcrops where iron was the dominant mineral present. BIF dominated by silica bands, dolerite, shale and rhyolite was not sampled in this program. In addition to the walked transects, a helicopter survey of the surrounding terrain was conducted and a further 12 samples were collected.

A series of BIF ridges were mapped parallel to the regional trend and on strike and parallel to the original Kalgan prospect trend and have returned constantly high-grade Iron with the majority from the sampling averaging over 60% Fe. Figure 3 below shows the sample locations and Iron Ore grades and shows the continuity of ridges C and D especially with the current sampling continuity both with consistently greater than 60% Fe grades. Ridge B also appears to host high-grade iron ore mineralisation and was recently sampled to fill in the gap between ridges B and F.

The Kalgan prospect laboratory results show strong continuation and correlation along a nearly 3km strike-length along several exposed ridges with excellent grades of DSO level iron.

Figure 2: Location and Iron Ore grade of samples, Kalgan Prospect, Hancock Ridges Iron Project, November 2020

Figure 3: Detail of BIF ridges, sample locations and final Iron Ore values, Kalgan Prospect, Hancock Ridges Iron Project, November 2020

While the mapping and sampling has not comprehensively evaluated all the BIF occurrences within the tenement, at least two targets have been highlighted for additional follow-up work concurrently with the maiden drilling campaign.

A maiden drilling program has been planned to cover the main areas defined from this recent work with an initial 3,500-4,000m of Reverse Circulation (RC) drilling planned. An existing track to the Kalgan prospect from the south east with direct access to Newman was reconnoitred in detail during the most recent site visit and the extent of work to remediate calculated. Drilling companies in Western Australia have been contacted for both availability and initial costs for carrying out this maiden program which Alien hope to commence in Q1 2021.

Brockman Iron Project (E47/3953)

In the Brockman Project mapping was concentrated on the areas within the lease associated with the historic BHP 19 and 20 prospects to further understand and test the potential of these 2 prospects. Sampling concentrated in this program on the BIF units as this was considered to represent the primary iron potential of the tenement. Whaleback Shale was also sampled in areas where iron banding was prominent and Canga (detrital iron ore) sampling was also undertaken but to a limited extent. A total of 64 samples were collected between these 2 prospects over 4 days of detailed traverses and mapping, with the interpreted main units mapped as in figure 4 below.

Figure 4: Field work tracks and mapped main units, South West corner, Brockman Project, October 2020

Canga was seen in all areas and most commonly seen on west facing exposures proximal to the BHP20 deposit. These Canga areas appeared to overlie the underlying strata and in places are widespread and can be 1-5m thick. It can be seen that the mapped extent of Deposits 19 and 20 is coincident with the canga outcrop rather than the exposed iron bearing Brockman Formation with which it is almost invariably associated which makes this discovery of interest as another potential source of high-grade iron bearing material within the project boundary.

Table 2 below outlines a selection of the high grade assay results from the Brockman Project samples (out of a total of 48 samples), with a maximum of 64.39% Fe (full results in Annexure).

Table 2: High-grade results, Brockman Project, October 2020

Figure 5: Massive BIF Section within the Upper Dales Gorge Member Iron Unit, Brockman Project, October 2020

Figure 6: Location with Iron Ore Grades, BHP 19 Deposit area sample results, Brockman Project, October 2020

Figure 7: Location with Iron Ore Grades, BHP 20 Deposit area sample results, Brockman Project, October 2020

Next Steps

Following the recent field visit by the Company’s technical team, Alien has an understanding of the best access routes for mobilising a drill rig to the Kalgan prospect at the Hancock Ranges Project. With the Program of Works (POW) submitted to the Western Australian Mines Department, the Company has commenced discussions with drilling contractors to secure an RC drill rig for the drilling programme to commence as soon as possible and likely to be scheduled for early 2021.

Alien Metals looks forward to reporting the full results and interpretations and associated next stage plans once received in the coming couple of weeks.

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014.

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