CZR Resources Limited (CZR) 05 May 2021 Iron ore CZR is moving to develop its Robe Mesa iron ore project in the Pilbara of WA. Its PFS was conservatively based on haulage to Port Hedland for export, yet concludes that the project is nevertheless commercially robust. However, a much closer alternative port at Onslow is now under consideration with ongoing discussions. Matau estimates that CZR could save A$20/t in haulage costs, by hauling to Onslow. Matau has valued CZR base initially on use of Pt Hedland port and on the use of Onslow, showing an improvement on the already attractive valuation of CZR. Matau’s valuation target for CZR based on the PFS at $0.030/shr is an attractive premium to share price. Matau’s value target for shipping from Onslow is $0.045/shr. Investment Thesis Recommendation BUY • CZR Resources (CZR) is an emerging iron ore producer, planning to develop DCF value $0.037 Robe Mesa, a low strip ratio, low cost, direct shipping, CID (channel iron ore) 12mo Price Target $0.030 deposit located in the west Pilbara. CZR holds an 85% interest in the project. F'cst 12mo Return 153.3% • The Pre-Feasibility Study (PFS) on development, completed in December 2020,

shows the project has potential to generate strong financial returns after Security Details preproduction capital of AUD 51m, and life-of-mine (LoM) C1 cash operating ASX Code CZR costs of A$65/t fob(excl royalties) with total cash costs of ~A$72/t fob. The PFS Share Price ($) $0.012 was based on an assumed conservative iron ore price of USD 90/t cfr China. Issued Cap.(dil) (m) 2,853.1 • The PFS underpins a maiden Probable Ore Reserve at Robe Mesa of 8.2 Mt at Market Cap ($m) 34.2 56% Fe, based on a 62% Fe Index.

30-Jun-21 forecast • The PFS conservatively assumed iron ore from its project would be shipped out P/E (x) -12.9 of Utah Point facilities in Port Hedland using quad road trains. This is a 420 km CFM (x) -121.4 trucking distance. Yield (%) 0.0 • Matau’s initial modelling is based on the PFS assumptions, including a long term EPS growth (%) -2.2 iron ore price (cfr China) of USD 90/t cif. CFPS growth (%) -259.3 • Since reporting the PFS, CZR discussions with the port of Onslow (trucking Cash ($m) 1.5 distance of 180 km), has brought forward agreement between the Onslow Marine Debt + CN ($m) 0.0 support base to consider shipping from Onslow, barging ore out for offshore Debt+CN / Equity (%) 0.0 transhipment. Interest Cover (x) -371.4 Debt+CN/Cashflow (x) -0.5 • The PFS assumes road haulage costs of AUD 35.10/tonne, or ~0.084/t.km to Port Hedland. Matau assumed the same unit haulage rate to Onslow which gives 30-Jun-20 actual a haulage rate of AUD 15.20/tonne, a marked saving. P/E (x) -18.7 • Matau estimates that bank funding is likely to provide approximately 60% of CFM (x) 274.0 capital funding needs and CZR will therefore need to raise equity of Yield (%) 0.0 approximately AUD 35m (before issue expenses). Matau’s valuation per share EPS growth (%) 2.3 been diluted for that estimate. CFPS growth (%) -88.4 • Based on the PFS inputs Matau derived an unrisked DCF value of $0.037/share Cash ($m) 5.3 and a 12 mo fwd (stage-risked) Price target of $0.030/share. Debt + CN ($m) 0.3 • If the Onslow port consideration can be achieved the unrisked DCF increases to Debt+CN / Equity (%) 1.9 A$0.050, and the 12 mo forward Price target increases to A$ 0.045/share. Interest Cover (x) -479.9 Debt+CN/Cashflow (x) -0.1 • In the Dec20Qtr surface sampling and mapping programmes were also completed during the quarter over prospective gold targets on the Croydon, Shepherds Well and Buddadoo projects as a precursor for drilling. Further work is also planned for the Yarrie iron ore project.

• The iron ore market continues to be strong with ongoing strong demand from China. At a recent Fastmarkets iron ore conference participants were bemused by Chinese participant forecasts that iron ore price would reduce to USD 100/t Andrew Pedler cif., and also at China’s stated targets of capping or reducing steel output yet maintaining ongoing forecasts for +6% yr-on-yr economic growth. Matau Advisory Pty Ltd • Matau notes that iron ore offtake excl China is also recovering, and growing post +61 412 122 778 the market impact in early-2020 depths of the covid-19 pandemic. [email protected] Catalysts • Further recovery of steel production, currently led by emerging economies and China, and ongoing demand from China, leading to continued robust iron ore prices. Risks • Further impact of the covid-19 pandemic may subdue demand but is also likely in Brazil and West Africa to subdue production and planned developments.

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Table of Contents Financial Summary & Valuation 3 Financial Summary Ratios 4 Investment Highlights 5 Sensitivities 11 Risk 12 Industry Factors 12 Company / Project Risk Factors 13 SWOT Analysis 14 Corporate Overview 15 Summary Financials 17 Board of Directors & Management 18 Major Shareholders 20 Key Commodity Price Assumptions 21 Commodity Market Overview 21 Review of Operations 28 Yarraloola: Robe Mesa & Robe East 28 Buddadoo - Au 34 Croydon - Au 36 Shepherd’s Well – base metal 39 Yarrie – iron ore 41 CZR Work Schedules 43 Appendix - Kilburn 44 Disclaimers & Disclosures 49

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Financial Summary & Valuation

Production Prof & Loss $m yr end June 2020 2021 2022 2023 2024 yr end June 2020 2021 2022 2023 2024 Fe Ore 000 t 0.0 0.0 0.0 552.5 1,700.0 Sales Rev. 0.0 0.0 0.0 59.9 184.3 Copper 000 t 0.0 0.0 0.0 0.0 0.0 Oper. Profit -2.4 -2.6 -4.8 15.6 66.2 Zinc 000 t 0.0 0.0 0.0 0.0 0.0 Other Income 0.0 0.0 0.0 0.0 0.0 Lead 000 t 0.0 0.0 0.0 0.0 0.0 EBITDA -2.4 -2.6 -4.8 15.6 66.2 Nickel 000 t 0.0 0.0 0.0 0.0 0.0 D & A 0.0 0.0 0.0 1.8 6.3 Cobalt 000 t 0.0 0.0 0.0 0.0 0.0 EBIT -2.4 -2.6 -4.8 13.8 59.9 Gold 000 Ozs 0.0 0.0 0.0 0.0 0.0 Int Income 0.0 0.0 0.1 0.1 0.2 Silver 000 Ozs 0.0 0.0 0.0 0.0 0.0 Int Expense 0.0 0.0 0.0 1.0 0.9 PreTax Profit -2.4 -2.6 -4.7 12.9 59.2 Forecast Tax 0.0 -0.2 -1.5 3.8 17.7 yr end June 2020 2021 2022 2023 2024 Minor/Prefs 0.0 0.0 0.0 0.0 0.0 AUDUSD 0.671 0.747 0.760 0.750 0.750 Equity A/C 0.0 0.0 0.0 0.0 0.0 Fe Ore 62% USD/t cif 108.8 152.9 105.0 90.0 90.0 Net Profit -2.4 -2.4 -3.2 9.1 41.5 Copper USD/t 5,696 7,423 7,793 7,385 7,385 Abnormals -1.2 0.0 0.0 0.0 0.0 Zinc USD/t 2,204 2,610 2,820 2,820 2,820 Net Profit (rpt) -3.6 -2.4 -3.2 9.1 41.5 Lead USD/t 1,906 1,975 2,100 2,100 2,100 Nickel USD/t 14,043 16,561 18,425 18,425 18,425 Cashflows $m $m $m $m $m Cobalt USD/t 32,613 36,740 46,297 46,297 46,297 yr end June 2020 2021 2022 2023 2024 Gold USD/oz 1,562 1,866 1,700 1,700 1,700 Oper. CF 0.2 -0.3 -3.3 11.9 50.4 Silver USD/oz 16.87 25.24 27.00 27.00 27.00 Dev. Capex 0.0 0.0 0.0 -42.1 0.0 Valuation @ 8.00% 12 mo Maint. Capex 0.0 0.0 0.0 -0.4 -0.9 DCF Valuation DCF Jun 20 Stage fwd Jun 21 Expln, R&D -3.2 -3.9 -4.0 -4.0 -4.0 yr end June A$m A$/sh Risk % A$m A$/sh Asset (acq)disp 0.0 0.0 0.0 0.0 0.0 Other 0.0 0.0 0.0 0.0 0.0 Yaraloola Fe 149.5 0.026 80% 129.1 0.022 Investing CF -3.2 -3.9 -4.0 -46.5 -4.8 Yarrie Fe 7.2 0.001 50% 3.6 0.001 Croydon Au-Ag 11.1 0.002 50% 5.6 0.001 Share Issues 9.5 0.7 9.6 23.9 0.0 Buddadoo Au 7.2 0.001 50% 3.6 0.001 Debt draw(paid) -1.8 -0.3 0.0 26.2 -26.2 Shepherds Well 0.8 0.000 50% 0.4 0.000 C/N iss.(red) 0.0 0.0 0.0 0.0 0.0 Investments 0.0 0.000 100% 0.0 0.000 Divs paid 0.0 0.0 0.0 0.0 -10.3 Expl'n & Eval'n 0.2 0.000 0.1 0.000 Other Finance 0.0 0.0 0.0 0.0 0.0 Corp. Costs (pv) -0.8 0.000 -0.4 0.000 Finance CF 7.7 0.4 9.6 50.1 -36.5 Hedge Book 0.0 0.000 0.0 0.000 Cashflow +/- 4.6 -3.7 2.3 15.4 9.0 Enterprise Val. 175.2 0.030 142.0 0.025 Cash 4.6 0.001 1.5 0.000 Balance Sht Debt + CNotes -0.3 0.000 0.0 0.000 yr end June 2020 2021 2022 2023 2024 Equity Valuation 179.6 0.031 143.5 0.025 Cash 5.3 1.5 3.8 19.2 28.2 Notional Capital (pv) 31.1 0.005 31.9 0.006 Total Assets 15.2 16.6 23.2 83.4 90.9 Value – Fully Dil. 210.7 0.037 175.4 0.030 Debt 0.3 0.0 0.0 26.2 0.0 mkt disc. factor 0.0% 0.0 0.000 C/Notes 0.0 0.0 0.0 0.0 0.0 12mo fwd Equity 175.4 0.030 Shr Hold. Eq. 14.5 16.4 22.5 56.4 87.3 (dil) Outside Int. 0.0 0.0 0.0 0.0 0.0 Total Equity 14.5 16.4 22.5 56.4 87.3

Source: Matau Advisory, Company Reports

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Financial Summary Ratios

Investment Ratios Debt & Cover yr end June 2020 2021 2022 2023 2024 yr end June 2020 2021 2022 2023 2024 EPS bef. abs(c) -0.1 -0.1 -0.1 0.2 0.7 Debt/Equity (%) 2% 0% 0% 46% 0% EPS growth (%) 2.3 -2.2 -1.7 261.7 367.0 (D+CN)/(D+CN+E) 2% 0% 0% 32% 0% PER (x) -18.7 -12.9 -12.7 7.8 1.7 Int Cover (x) -479.9 -371.4 0.0 14.1 64.7 CFPS (c) 0.0 0.0 -0.1 0.2 0.9 Debt/OCF (x) -0.1 -0.5 0.0 2.3 0.5 P/CF (x) 274.0 -121.4 -13.5 5.8 1.4 (D+CN)/OCF(x) -0.1 -0.5 0.0 2.3 0.5 EV/EBITDA (x) -17.3 -16.0 -8.4 4.9 0.6 DPS (c) 0.0 0.0 0.0 0.0 0.4 Profit Sensitivity Yield (%) 0.0 0.0 0.0 0.0 30.0 yr end June 2020 2021 2022 2023 2024 Franking (%) 0.0 0.0 0.0 0.0 92.8 AUDUSD +/- 5c 0.0 0.0 0.0 -5.6 -17.2 Fe ore +/- US$5/t 0.0 0.0 0.0 3.7 11.3 Profitability Au +/- US$15/oz 0.0 0.0 0.0 0.0 0.0 yr end June 2020 2021 2022 2023 2024 Ag +/- US$2/oz 0.0 0.0 0.0 0.0 0.0 EBIT / Sales (%) 0.0 0.0 0.0 26.0 35.9 Cu +/- US$50/t 0.0 0.0 0.0 0.0 0.0 ROA (%) -15.8 -14.6 -14.0 10.9 45.7 Zn +/- US$20/t 0.0 0.0 0.0 0.0 0.0 ROE (%) -20.7 -15.7 -16.7 16.1 47.5 Pb +/- US$20/t 0.0 0.0 0.0 0.0 0.0 ROCE (%) -16.6 -14.8 -14.4 14.3 50.6 Ni +/- US$500/t 0.0 0.0 0.0 0.0 0.0 Co +/- US$2000/t 0.0 0.0 0.0 0.0 0.0

Source: Matau Advisory, Company Reports

Ratios Cashflow Multiple (CFM or P/CF) being of operating cashflow net of interest, at 1.4x in CZR’s first year of full production is very low. For a small to mid-capitalisation company Matau believes that a ~5x-6x CFM is a ‘fair’ price level. Large cap (say BHP, RIO) stocks’ CFM is ‘fair’ at ~8x-10x, with mid-to-large capitalisation stocks being ‘fairly’ priced at 7x-9x. EBIT / Sales (%) is healthy, above 20% even as the project starts up. Return on Assets (RoA) and Return on Equity (RoE) ratios are both healthy as the project starts up. Debt/Cashflow (open balance debt / 12mo fwd cashflow) peaks at 2.3x in 2023, then rapily declines as forecast debt is paid off. Matau considers debt/cashflow < 3x as comfortable. If the ratio > 3x and < 4x the concern is to determine which direction the ratio is heading (up or down). Matau regards the debt/cashflow ratio as the best operating ratio for determining ability to service debt. It is the 12 mo of cashflow after the open-balance debt that services that debt. If the debt/cashflow ratio exceeds 4x Matau’s observation is that banks usually request the company to reduce debt levels (adjust the balance sheet. This often requires either an asset sale or an equity raising with proceeds going to reduce debt.

Indicated Value: The CFM indicates that CZR is considerably undervalued based on 2024 cashflows. This agrees with the discount to share price indicated by the DCF-based Target price.

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Investment Highlights

Industry Trends: Global economic activity” is showing recovery from a worldwide pandemic driven slump in 2020. Chinese growth had slowed from its very high rates over the past decade to merely ‘high’ growth rates currently. These rates are forecast to slow further as the Chinese economy expands, after recovering from the Coronavirus-19 pandemic. The rest of the world, particularly emerging Asia has recording healthy growth from relatively low bases, prior to the pandemic, and is recovering. The developed economies slowed dramatically during the pandemic and while recovering, have yet to broadly return to positive yr-on-yr growth, and to pre-pandemic levels. The IMF’s January 2021 World Economic Outlook (WEO) reports that although recent vaccine approvals have raised hopes of a turnaround in the pandemic later in 2021,

renewed waves and new variants of the virus pose concerns for the outlook. Amid exceptional uncertainty, the global economy is projected to grow +5.5% in 2021 and +4.2% in 2022. This is an upward revision on earlier forecasts. The projected growth recovery in 2021 follows a severe collapse in 2020 that has had acute adverse impacts on women, youth, the poor, the informally employed, and those who work in contact-intensive sectors. The global growth contraction for 2020 is estimated at -3.5%. The strength of the recovery is forecast to vary significantly across countries, depending on access to medical interventions, effectiveness of policy support and compliance with prudent health measures, exposure to cross-country spill-overs, and structural characteristics entering the crisis.

Despite the high and rising human toll of the pandemic, economic activity appears to be

adapting to subdued contact-intensive activity with the passage of time. Finally, additional policy measures announced at the end of 2020, notably in the United States and Japan, are expected to provide further support in 2021–22 to the global economy. These developments indicate a stronger starting point for the 2021–22 global outlook than IMF’s World Economic Outlook envisaged in the previous forecast. (WEO) is for growth of +5.5% in 2021, steadying to +45.2% in 2022. This is being led by China (as of the Sep20Qtr). The pandemic- induced downturn in Advanced Economies and Emerging & Developing Economies has passed its nadir and is improving, though yet to return to positive yr-on-yr growth.

Source: IMF World Economic Outlook January 2021 (fig 2)

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China will continue to be a major contributor to world economic growth, but is expected to operate at a slower pace than in the past, as the Chinese Government proceeds with reforms to achieve more sustainable growth.

Although the outlook is generally positive, there are several risks to global economic prospects over the short to medium term. This includes China’s transition target to a pattern of lower growth. The successful implementation of China’s reform agenda will remain a key risk to China’s economic prospects over the medium term. Sep20Qtr GDP out-turns mostly surprised on the upside (Australia, Euro area, India, Japan, Korea, New Zealand, Turkey, United States), or were in line with expectations

elsewhere (China, Mexico). Investment picked up relatively slowly, except in China, which saw strong growth in second half of 2020. After IMF’s estimated 3.5% contraction in 2020, the global economy is forecast to grow 5.5% in 2021 and 4.2% in 2022. Consistent with recovery in global activity, global trade volumes are forecast to grow about 8 percent in 2021, before moderating to 6 percent in 2022. Services trade is expected to recover more slowly than merchandise volumes, however, which is consistent with subdued cross-border tourism and business travel until transmission declines everywhere.

GDP growth for OECD has recovered from the depths of the Covid-19 pandemic (April 2020) and in early 2021 is again recovering.

Source: OECD-stat 31 Mar 2021 OECD Composite Leading Indicators

110.0 10.0% OECD 108.0 & 8.0% major six Non-Member Economies 106.0 Composite Leading Indicators 6.0% The OECD Composite Leading Indicators, and the 6mo avg of the 104.0 4.0% CLI are indicating general recovery 102.0 2.0% of industrial production.

100.0 0.0% The CLI’s function is to determine Growth(%) turning points. It is the direction of the CLI that is important, not the 98.0 -2.0% amplitude.

96.0 -4.0% Composite LeadingIndicator Composite

94.0 -6.0% OECD + Major Six NME 92.0 y-o-y -8.0% 6mo-on-6mo 3mo-on-3mo

90.0 -10.0%

Jan-03 Jan-00 Jan-01 Jan-02 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20 Jan-21 Jan-22

Source: OECD, Matau Advisory (Feb21 data) OECD’s Composite Leading Indicators (CLI) are widely considered valid with regard to outlook for industrial activity. OECD indicates that 6-9 months from an upward turning point in its 6mo average of the CLI usually sees an upturn in activity.

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CZR Resources (CZR) – Operating Status CZR is an emerging iron ore company, with the attractive low-strip ratio, low cash operating cost, Yarraloola direct shipping ore project in the west Pilbara, with access to Port Hedland and within ready trucking distance to the Port of Onslow. Resources - Location: CZR Resources (CZR) has an 85% interest in its key Yarraloola iron ore (channel iron ore) deposit Robe Mesa and adjacent Ashburton magnetite deposit. CZR also holds interests in exploration and evaluation stages for the Yarrie (70%) iron ore deposit, gold projects at Croydon (70%), Buddadoo (85%), and base metal and REE projects at Shepherd’s Well (70%). Yarraloola, Yarrie, Croydon and Shepherd’s Well are located in the northern Pilbara WA. Buddadoo is located in the Murchison Region east of Geraldton WA. Resources - Geological: The Yarraloola project has JORC Resources at a 55% Fe cutoff of 19.5 Mt at 56.0% Fe Measured & Indicated within a Total Resource of 24.7Mt at 56.0% Fe. At a 50% cutoff, the Total Resource expands to 89.1 Mt. with stated targets to increase and upgrade these. Drilling and other evaluation programs are under way to upgrade the Yarraloola Resources and to define Resources on the CZR’s other other key project areas. Within the Resources at 55% cutoff, CZR has defined Probable Reserves of 8.2Mt of 56.0% Fe, which the PFS plans to mine over a five year period. Evaluation at CZR’s other evaluation projects has not yet declared Resources. Mining conditions: Mining conditions are understood either from prior mining activities in similar projects in adjacent areas. Mining is planned to be by open cut methods. The waste strip ratio is forecast at a low 0.57:1. Ore Quality: The quality of Yarraloola’s Robe Mesa ore is similar in grade and style to the nearby Robe River style deposits currently being mined by Rio Tinto (RIO) which is known to, and accepted by, Asian steel mills. Production: CZR plans to produce up to 2 Mtpa of ore from Robe Mesa, as described in its Pre-Feasibility Study (PFS) released 10 December 2020. The PFS indicated that an expansion to 3 Mtpa would not require additional processing capacity nor additional load and haul fleet on site. Diverse markets: Target markets by CZR’s iron ore projects and prospects are expected to be Asian Steel mills in Japan, South Korea, Taiwan and or China, that already are familiar with the Robe River ores. Matau notes that Nippon Steel & Sumitomo Metal Corporation ("NSSMC" directly participate with RIO within the Robe River Iron Associates JV. Infrastructure: The Great Northern Highway which currently handles 60m quad road trains, passes ~34 km to the west of Robe Mesa, accessed on a currently unsealed mine access road. While the PFS originally demonstrated the commerciality of Robe Mesa with haulage to Port Hedland, a distance of ~420 km, the Onslow Marine Support Base (OMSB) ~180 km from Robe Mesa is being evaluated as an alternative export port, loading onto barges for offshore transhipment. Potential to Expand: Robe Mesa has 8.2 Mt of Reserves within 19.2 Mt of Measured & Indicated (M+I) Resources. CZR can carry out further drilling to upgrade Measured & Indicated Resources to Reserves. This may include definition in the ‘Northern’ extension of Robe Mesa. Further drilling definition and study on the Ashburton magnetite deposit could add a magnetite concentrate to the product deliverable from the project. Operating Costs: The PFS estimates an operating cash cost of A$64.78/t fob Port Hedland (excluding royalties). Matau estimates that by hauling instead to OMSB at Onslow, the operating cash cost would reduce to ~AUD 49.00/t fob. Capital Costs: The PFS estimates Robe Mesa’s pre-production capital costs at AUD 51.1m. with capital contingency and capitalised mining and crushing & screening opex at AUD 16.0m. Exploration: CZR has several other attractive exploration tenements with additional iron ore, gold and base metal potential. These include the Croydon and Buddadoo gold projects and the Shepherd’s Well base metal (Ni, Cu-Zn-Pb-Ag) project, and the Yarrie iron ore projects, which are at earlier stages than Yarraloola. Funding: Matau expects that on a 100% basis project funding by bank debt would represent about 60% of development capital with the balance to be provided by equity capital. CZR has been engaging in discussion with prospective lenders.

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Valuation Fundamentals Our DCF-based valuation, based on the PFS assumptions (including trucking to Port Hedland) on an un-risked, fully diluted basis is $0.037share, with a 12 month fwd value (risked for stage-of-development) of $0.030/share. In the current market, which has a rather risk-off mode for small resources companies, we have not applied any market

discount factor to our forecast 12 month risked value.

We have applied a nominal Weighted Average Cost of Capital (WACC) of 8.0%, as is widely applied to other emerging Resources sector companies. The 12 mo fwd Target Price (incl market discount) is at a 153% premium to the share price. DCF-based Valuation Valuation @ 8.00% 12 mo DCF Valuation DCF Jun 20 Stage fwd Jun 21 yr end June A$m A$/sh Risk % A$m A$/sh

This valuation is derived from the Yaraloola Fe 149.5 0.026 80% 129.1 0.022 PFS which assumed exports Yarrie Fe 7.2 0.001 50% 3.6 0.001 through Port Hedland. Croydon Au-Ag 11.1 0.002 50% 5.6 0.001 Matau considers it a very Buddadoo Au 7.2 0.001 50% 3.6 0.001 conservative case, as CZR has Shepherds Well 0.8 0.000 50% 0.4 0.000 options to, and is evaluating trucking through the port at Onslow Investments 0.0 0.000 100% 0.0 0.000 less than half the distance to Port Expl'n & Eval'n 0.2 0.000 0.1 0.000 Hedland. Corp. Costs (pv) -0.8 0.000 -0.4 0.000 Matau estimates that use of Hedge Book 0.0 0.000 0.0 0.000 Onslow as an export port would increase the unrisked DCF value to Enterprise Val. 175.2 0.030 142.0 0.025 AUD 0.054/share and the 12mo Cash 4.6 0.001 1.5 0.000 fwd Target price to AUD 0.045/shr, Debt + CNotes -0.3 0.000 0.0 0.000 a 279% premium to the share Equity Valuation 179.6 0.031 143.5 0.025 price. Notional Capital (pv) 31.1 0.005 31.9 0.006 Value – Fully Dil. 210.7 0.037 175.4 0.030 mkt disc. factor 0.0% 0.0 0.000 12mo fwd Equity (dil) 175.4 0.030 Source: Matau Advisory Pty Ltd For projects that are reasonably advanced through scoping studies or feasibility studies our valuation method is DCF based. To derive Target values and Target Prices we apply stage-risk weights that reflect the stages of evaluation and development (confidence levels) of the respective projects prior to full production. We derived a DCF valuation for the Yaraloola project, based on the company’s PFS evaluation and plans to date, and included it in our un-risked valuation. In the absence of a DCF value, for the gold projects e.g. Croydon and Buddadoo, we would usually apply a current market EV of AUD 100 /ounce of defined Resources, in line with the market enterprise values, that we derived for non-producing gold resources. In the absence of Resources and or scoping or feasibility studies, we may assign values for the less advanced exploration projects, guided where available either by JV entry funding arrangements, comparison with recent and similar project transactions, or relative to exploration and or evaluating funds spent and booked to accounts. For the remaining projects which have no resources we have adopted a valuation method proposed by Lionel Kilburn in August 1990. (See the Appendix to this report for method details.) Our 12 month forward Target Price uses our 12 month forward DCF valuation, or Kilburn- Value, with stage-risk factors applied to projects or valuation items according to stage of project development and or technological maturity or complexity. In addition, if the current market is in a “risk-off” mode we calculate and applied a “market discount factor” to the Target Price. The stage-risk weights we have applied to valuations for projects in advanced evaluation phases to derive the Target Price are 80% for Yarraloola only, which has completed a Pre- Feasibility Study (10 Dec 2020). We have applied a 50% stage-risk to the Kilburn value for each exploration/evaluation project in the absence a Resource or of other meaningful value comparison.

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In absence of a stated funding Project Funding: In the absence of alternative project funding arrangements, which could structure, we assume all non-debt include sell-down of interest in project assets, we usually assume that any non-debt funding will be from raised equity. funding will be raised by issue of equity. In practice, the advent of different funding modes, We consider this is a conservative such as JV sell-down of interest(s), and or adoption of non-equity modes, usually involves approach. less dilution than the above default, which we therefore consider is a conservative evaluation. The total equity valuation (above) is added to the present value of the (notional) additional capital to be raised to give a fully diluted valuation. Matau estimates that CZR needs equity capital (before costs) of ~$10m in calendar 2021 and ~$25m in calendar 2022. The shares issued for this ‘notional capital is shown below. Our valuations per share are calculated with regard to the issued shares plus notional capital that would be raised to develop the project(s), i.e. fully diluted. Shares Issued Dec-19 Jun-20 Dec-20 Jun-21 Dec-21 Jun-22 Dec-22 Shares (dil) Issued (m) 2,387 2,745 2,853 2,853 3,686 3,686 5,770 Notional Shrs Issued (m) 3,383 3,025 2,917 2,917 2,083 2,083 0 Total Notional Shrs (m) 5,770 5,770 5,770 5,770 5,770 5,770 5,770

Valuations on an Issued Shares Basis

Issued Shares Basis Jun-20 Jun-21 $m $/shr mkt disc $m $/shr Equity Value (DCF-Based) 100.2 0.037 86.7 0.030 market discount factor 0.0% 0.0 0.000 Target Price 86.7 0.030

Enterprise Value Jun-20 EV ($/t Fe Dec-18 Jun-21 EV ($/t Fe M+I ore) M+I ore) Market EV 42.3 2.82 30.5 32.7 2.19

Enterprise Value (DCF-based) $m EV ($/t Fe $m EV ($/t Fe M+I ore) M+I ore) Equity Value 100.2 86.7 net debt & pmts -4.4 -1.5 Enterprise EV 95.9 6.40 85.2 5.69 less market discount 0.0% 0.0 12mo fwd risked EV ($m) 85.2 5.69

Enterprise Value per Tonne Ratios We calculate Enterprise Value per tonne (EV/t) ratios on two basis. a) A Market EV at a given point in time is calculated simply by addition of net debt to the market capitalisation. This value varies with the company market capitalisation. The value it ascribes reflects the sentiment of the market. b) An Industry EV or Enterprise EV is calculated by either: o taking the average or median of a range of appropriate values determined from recent past industry transactions in the commodity, or o by using the calculated project or company (enterprise) EV, which is usually constructed using DCF methods. This value varies with project specific inputs, commodity prices, costs, and or transaction values, rather than market capitalisation. EV per tonne: For sector comparison purposes, the denominator tonnes are usually either expressed as attributable “Total Reserve tonnes” or attributable “Total Resource tonnes” so that comparisons are conducted on a like-for-like basis. Robe Mesa’s Total attributable Resources are 18.963 Mt. normalised to 62%, and attributable M+I Resources of 14.971 (normalised to 62% Fe) which we use for comparison with its peers. CZR’s attributable Measured + Indicated (M+I) Resources The Market EV/t (M+I) forecast for June2021is AUD 2.19/t of M+I Resources. The DCF-based EV/t (M+I) forecast for June2021is AUD 5.69/t of M+I Resources. The difference between Market and DCF-based ratios also reflects the degree of market undervaluation.

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DCF Valuation Considerations We derive DCF-based valuations for each project for which we have sufficient confidence in the key parameters and assumptions for the project to generate a DCF value. In order to present that valuation as part of our sum-of-parts valuation of the company we consider that the project must be funded and the implications of that funding are expressed in our forecasts. In the absence of announced (alternative) funding structure(s) for the key project we assume a default case that the company would proceed to develop the project on a 100% basis. We expect in the current market that a minimum reasonable debt funding of 60% of project capital requirements is achievable. The balance of the project ‘equity’ funding requirement would need to be sourced from cash balance, cash flow and or newly raised market equity. We dilute our forecast value (target price) and earnings according to the amount of forecast equity raised. For small companies this process may forecast a large equity raising relative to the size of the company concerned. In practice we believe our default funding case is generally more conservative than the results from several alternative funding possibilities that companies generally consider when faced with similar funding requirements. We expect that a company, faced with a relatively large equity requirement, will often sell down an equity interest in the project, which would contribute equity proceeds from the sale of interest toward project development. A sell down would reduce the amount of market equity required to be raised (as a percentage of project capital, as would the receipt of net of proceeds of sale), thus reducing the number of proposed issued shares and consequent dilution of value per share and earnings per share. The lower a company’s share price, the greater the impact this process has on the estimated valuation per share. Discussions with lenders continue to indicate that project-based debt finance should be available for at least 60% of project capital requirements for good projects. We assume this is as project finance, not corporate debt.

Valuation using one of many permutations of potential alternative funding structures would generally result in a comparable and likely more optimistic outcome than our default case, which we use in the absence of an alternative funding proposal which at this stage is hypothetical. The anticipated upside arises from the reduced equity interest in the project value to be offset by the proceeds of sale of interest sold and therefore smaller capital

funding requirement in line with the equity interest, divided by a reduced number of new issued shares. We have assumed a 60% debt funding capability in our base-case modelling. Alternative Funding Sources:

Aside from project debt funding, which we have assumed based on recent indications of banks toward emerging iron ore projects, and asset sell-down, there are other potential There are a number of finance sources of funds for project development that we have not analysed here. These may sources that are alternatives to include: issue of new equity. a) Issue of convertible notes: which the company has already made use of, and already redeemed half of those issued; b) Off-take finance: from customers, prepared to contribute to project development in order to secure product, particularly for good quality long-life projects. However this mode is not usually applicable to gold projects, as gold is Industry often takes a longer view exchange-traded; than the equity markets and may be prepared to invest at an implied c) Royalty finance: sale of a royalty stream: however this represents an increase share price above market. in operating costs; d) Export Credit Agency finance: provided by (national / foreign) credit agencies to assist (national / foreign) companies to participate in the target business. This CZR has strong and supportive style of finance can be on favourable terms; investors. e) Contractor finance: contract operators may choose to capitalise initial charges or pre-strip revenue in order to participate in a long-life contract; f) Joint Venture: would reduce the equity interest in a project and also the funding required of in proportion to the amount of the venture interest retained. g) As highlighted by the comparison of Market EV/t and Industry or Transaction EV/t values, if equity is placed with industry participants (either operating miners or off-take parties) it is often the case that industry is prepared to take a longer view and pay a premium to the existing share price in order to secure a footprint on valuable resources. h) An issue that CZR and its shareholders might then have is to avoid becoming a controlled subsidiary of such a cornerstone investor.

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Sensitivities

Sensitivity of DCF-based Valuation to WACC Sensitivity of DCF Valuation to a change in Weighted Average Cost of Capital. We have applied a WACC of 8.0% for the sector. A 10% increase in the WACC to 8.8% would reduce our DCF value by -3.7% to $0.035/share, and our 12 month price target

(including market discount) by -3.3% to $0.029/share.

A 10% decrease in WACC to 7.2% would increase our DCF value by +3.9% to $0.038/share and our 12 month price target increased by +3.4% to $0.031/share. WACC 8.00% 8.80% 7.20% $m $/shr $m $/shr $m $/shr unrisked DCF 210.7 0.037 202.9 0.035 219.0 0.038 risked Target 175.4 0.030 169.7 0.029 181.4 0.031 change DFC -7.8 -0.001 8.3 0.001 Changes in WACC do not change Target -5.7 -0.001 6.0 0.001 materially impact the strong value change DFC % -3.7% -3.7% 3.9% 3.9% of CZR’s project. change Target % -3.3% -3.3% 3.4% 3.4%

Sensitivity of Valuation to Changes in Price Forecasts

Our commodity price forecast period customarily extends five years, to Dec26HY, after

which we refer to long term price forecasts. We have modelled first production late in the Dec22HY. Sensitivities of earnings to changes in exchange rate assumptions and in iron ore prices are shown below for the forecast period. Earnings Changes ($m) to Changes in Forecast Prices Sensitivities of earnings to changes in exchange rate assumptions and in iron ore prices are shown below. These are expressed as +/- $m change in NPAT per unit change in the input.

Profit Sensitivity

yr end June 2020 2021 2022 2023 2024

AUDUSD +/- 5c 0.0 0.0 0.0 -5.6 -17.2

Fe ore +/- US$5/t 0.0 0.0 0.0 3.7 11.3

Source: Matau Advisory

In isolation, a change in currency-only or iron ore-only scenario is not normally reasonable, as in practice, long-run commodity prices have generally been associated with AUDUSD rate changes in the same direction(s). In that context, the AUDUSD exchange rate and iron ore prices have historically tended to move in the same direction. An AUD price rise or fall usually occurs when a USD price changes, though when the currency moves with the commodity price it dampens the amount of rise or fall in AUD. In the current period of uncertain economic direction Matau has chosen to use a flat AUDUSD forecast of 0.75 and a long term USD iron ore price forecast of USD 90/t cfr commencing from the Dec22HY. The value impact of an increase in the commodity prices forecasts, from the Dec22HY, are tabulated below as (a) isolated changes and (b) by multi- price changes. We have modelled the projects with a functional currency of AUD. Below we show the sensitivities of the unrisked DCF value and the stage-risked target prices to changes in key inputs: AUDUSD exchange rate, Iron ore price (cfr China), operating costs, capital costs and ore haulage distances to port.

Sensitivity Of Valuations To Changes In Long Term Price Assumptions Iron Ore FX Road unrisked risked These outcomes illustrate the LT Assumptions Cases AUDUSD Haulage DCF Target USD/t cfr km $/share $/share robustness of the project and the sensitivity to current high prices, Base Case (Utah Pt) 90.0 0.75 420 0.037 0.030 only FX increase 10 cents 90.0 0.85 420 0.025 0.021 Matau’s assumptions used here, only Iron Ore up USD 10/t cfr 100.0 0.75 180 0.064 0.054 and CZR’s assumptions in its Pre- Iron Ore up $10/t, FX up 5 cents 100.0 0.80 420 0.040 0.033 Feasibility study. Iron Ore up $10/t, FX up 10cents 100.0 0.85 420 0.034 0.028 Oper Costs up A$5.00/t 90.0 0.75 420 0.034 0.028 Capex up $10m 90.0 0.75 420 0.035 0.029 Base Case (Onslow) 90.0 0.75 180 0.054 0.045 only FX increase 10 cents 90.0 0.85 180 0.043 0.036 only Iron Ore up USD 10/t cfr 100.0 0.75 180 0.060 0.052 Iron Ore up $10/t, FX up 5 cents 100.0 0.80 180 0.057 0.048 Iron Ore up $10/t, FX up 10cents 100.0 0.85 180 0.052 0.043 Oper Costs up A$5.00/t 90.0 0.75 180 0.052 0.043 Capex up $10m 90.0 0.75 180 0.053 0.045 Spot prices @ 20210423 186.4 0.7776 180 0.143 0.122 Source: Matau Advisory

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Risk

Industry Factors Resources The Resources reflect the physical delineation of iron ore deposits. Resource estimates are expressions of judgment based on knowledge, experience and industry practice. Estimates are correct based on available information when Resources are certified, but may change as new information becomes available. This includes instances where iron ore mined may be of a different quality, tonnage or strip ratio than originally stated. Such changes could affect the company’s development and mining plans, and are best tested by rigorous sampling methodology. Reserves Reserves reflect an economic overlay upon Resources, for iron ore deposits which are determined to be economically mineable. This economic overlay, contained in a feasibility study, includes assumed commodity price, foreign exchange rates, mining parameters, metallurgical, economic, marketing, legal, environmental, social and governmental parameters. A feasibility study is an indicator whether or not the extraction of the Reserves could be reasonably justified. Economic Climate Inflation, commodity prices, currency fluctuation, interest rates, supply and demand, industrial disruption and changes in legislation can affect operating parameters including costs. Adverse movements in exchange rates, particularly the US dollar vs the domestic operating currency, generally increase the amount of Australian dollar funding required to meet obligations. Steps may be taken to manage currency fluctuation risk by hedging a proportion of the US dollars expected to be received under export contracts. Currently the outlook for iron ore is for good physical demand from Asia. However with any slowdown in Chinese demand, the raw materials supply growth may outpace demand in the near term, contributing to weaker prices. The outlook for the steel industry, and therefore for iron ore, appears solid in the medium to longer term, but short term there are concerns expressed about the impact of a slowdown of Chinese economic growth, and impact of steel inventories. Production growth is increasing outside China. Some bemusement in industry is growing with China indicating it wants to reduce its steel output growth and consumption yet maintain +6% GDP growth rates. China has also indicated it wants to influence the setting of prices. When other countries have attempted to control commodities prices in the past, ultimately the market determines supply, demand, and the environment for establishing prices. The current spot iron ore prices, are at high levels that are driven by demand from steel mills facing strong demand and high steel prices. Miners, the suppliers to the processors (steel mills) need to control their own costs and inputs to ensure that if prices do become volatile and or low, their projects and businesses are well placed to remain healthy. Infrastructure CZR is proposing to haul iron ore by existing roads using 60m super-quad road trains, with capacity of 114 tonnes, operated under contracts on major highways, to established ports. Port Hedland is one of the largest iron ore export ports in the world. Onslow is a Marine support base, that is developing capacity to load barges for transhipment offshore, and possibly in time, Handymax or Supramax vessels. There are about 6x proposed new ports between Port Hedland and Onslow. Political Risk Political risk is the introduction of, or changes to, policies, taxes, royalties, legislation, practices or administrative action, by government political actions, which may adversely affect the company’s operations. The obligations and entitlements of the company, as interpreted by relevant authorities, may change and there is no guarantee that these changes will not disrupt operations and financial performance. The company relies on the maintenance of satisfactory relationships with various government authorities for the ordinary conduct of business. Western Australia, the jurisdiction of CZR’s projects has been noted for many years as a stable reliable location within which to plan with confidence and operate.

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Company / Project Risk Factors Growth and Valuation Factors Dependent on Success The growth of CZR is initially dependent on the Robe Mesa iron ore projects’ development and growth. Further growth depends on success in discovery and definition of resources for CZR’s other exploration and evaluation projects. The company may face delays, unexpected development costs or unexpected constraints to expansion, such as mining grants, infrastructure access, and or availability of funding.

Land use: CZR conducts its existing exploration and development activities on granted exploration permits, and or granted Mining Licences (MLs).

Environmental Issues: Various laws, regulations, terms and conditions of exploration and tenements set standards for environmental management including contamination, dust management, noise, rehabilitation, liability for greenhouse gas emissions and water, with penalties for violation of these standards. CZR will [need to] have systems and controls in place, which may potentially generate additional costs, to manage these environmental obligations. Owner-Operator vs 3rd Party Operators: CZR is planning on engagement of third parties for mining, iron ore preparation and haulage by road and rail. Industrial disputes, contractual issues, financial failure or default on the provision of services therefore have the potential to adversely affect CZR’s operations. Operating Costs: Costs of key elements fuel, tyres, machinery and labour, had increased markedly in the past several years as part of an industry-wide trend. The rate of cost inflation has since slowed markedly over the past 12-18 months and many of those costs have reduced correspondingly. Capital Costs: Capital costs for developing Robe Mesa have been estimated with the majority of costs being derived from Requests for Quotations (RFQ) by relevant contractors and suppliers. Sales Contracts: CZR will take on offtake agreements associated with the operation of Robe Mesa, and commitments for water offtake, and port capacity. Commodity Price Risk: The company share price will be exposed to movements in the market price of steel, and iron ore both short and long term. Any product sales on the spot market or that are referenced to spot prices will be exposed to short term movement in the relevant iron ore prices. We have quantified the sensitivity of earnings forecasts to variations in prices relative to forecast which in the short run are likely to impact the market’s pricing of the stock.

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SWOT Analysis

Strengths • Yarraloola iron ore project has: o good quality ore with low impurities: (P 0.05%), similar to other {Pilbara deposits operated by majors, with a JORC Resource at 56% Fe. This is within a wider larger resource at 53.7% Fe. o Low strip ratio and low mining costs, and robust project cashflows o Ability to direct ship ore giving low fob costs. o Low capital required, and low capital intensity. • Several attractive reasonably advanced exploration and evaluation projects (Croydon & Buddadoo Au, and Yarrie iron ore) in progress to follow up in parallel with the development of Yarraloola, plus early stage polymetallic projects at Shepherd’s Well. • Operations are all in a stable and attractively mineralised jurisdiction, of WA.

Weaknesses • CZR is currently a small-cap exploration and evaluation company, which can limit appeal for institutional investment. We anticipate that as CZR demonstrates the prospectivity and value of its project(s) that market pricing will improve.

Opportunities • Pre-Feasibility initially done assuming trucking to Utah Point (~420 km), though opportunity to truck through the port at Onslow (~180km) is attractive. • Evaluation of the Ashburton magnetite deposit close to the Yarraloola iron ore project, with drilling and metallurgical work. • Progressing exploration and evaluation on Yarrie (iron ore) adjacent to BHP operations. Grades reported ~64-67% Fe. • Progressing exploration / evaluation of the Croydon advanced exploration Au project.

Threats • It is uncertain exactly how China may act to “influence” price setting in the market. Usually the market is the ultimate arbiter. There are several examples of countries (Indonesia, Bolivia) attempting to dictate prices, but unfavourable market controls and conditions often lead to absence of investment capital in those jurisdictions. China is large enough to throw its weight about but might not have the quality of domestic Resources to sustain such efforts. • The large SImandou project in Guinea in West Africa is proposed as a threat to iron ore prices with its proposed 200Mtpa production rate (estimated from ~2025) from the two JV’s operating there. However if global demand growth for iron ore is sustained at ~3-4% p.a., then the new supply from Simandou would be absorbed in ~ 3-4 years. • China is also allocating funds to develop more domestic iron ore supply (there is a lot of ore but <2% of Chinese Resources are regarded as high grade.

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Corporate Overview

CZR Resources Limited (CZR) is public listed exploration company, which was founded in 2005, and focused primarily on Iron ore and gold, though also evaluates other opportunities with potential to generate a profitable mining operation. CZR has five exploration and development projects, all in Joint Venture with the Creasy Group companies. CZR holds an 85% interest in the Yarraloola (iron ore) and Buddadoo (Au) projects, and a 70% interest in the Shepherd’s Well (base metals & REE), Croydon (Au), and Yarrie (iron ore) projects. Yarraloola, Croydon, Shepherds Well and Yarrie are located in the northern Pilbara and Buddadoo is located east of Geraldton. All projects are in Western Australia, a very attractive minerals region, and is considered a low (political) risk jurisdiction.

Source CZR Dec20HY report

Name Change: A change of Company name was approved by shareholders, so that effective 21 September 2020, the Company’s name changed from Coziron Resources Limited, to CZR Resources Ltd. The ASX code CZR was unchanged.

.

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Main Projects Stages of Evaluation

Robe Mesa & Mesa East - iron ore project. (CZR 85%) A Pre-Feasibility Study was completed (Dec 2020) on development of direct shipping iron ore. Initially the study was based hauling [450 km] to and on shipping from established infrastructure at Port Hedland. After successful conclusion of this study an option to haul only 180 km to port at Onslow for export arose. A Definitive Feasibility Study is in progress, anticipated to be completed by end of June 2022, with a target of production commencement by the end of 2021. The Mining Lease application for Robe Mesa has been lodged. Haul-road engineering, surface and groundwater studies have begun. A program for works for infill drilling of the Ore-resource envelopes has been lodged. Buddadoo - gold project. (CZR 85%) Ongoing work includes heritage clearances, RC drilling and assays to July 2021, then further heritage work, drilling and assays from November 21 to April 22. Field activities preparing for a 5,000m RC drilling program are under way. Croydon – gold project (CZR 70%) Ongoing work includes infill and extensional R/C drilling and assays, with Heritage clearances and Native Title approvals as may be progressively required. Assays from an additional 3,837 surface samples have significantly extended the area of the gold-related alteration systems, and identified gold mineralised veins for follow up drilling. Shepherd’s Well – Ni, Cu-Zn-Pb-Ag (CZR 70% Programs of soil and rock chip sampling have produced results that now outline several clusters of soil samples with anomalous gold (Au > 5 ppb to 1g/t) requiring further follow- up work and three prospects with anomalous rare-earth (REE) and with base-metal (nickel, lead, zinc) samples, which are now drill-ready. Yarrie – iron ore (CZR 70%) Ongoing work planned from July -November 21 includes heritage clearance, infill and extensional RC drilling, followed by assays and Davis-tube analysis. The Cabbage Tree prosect with historical intercepts of up to 19m at 63% Fe from 67m downhole has been selected as a priority follow up drill target.

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Summary Financials

Operating Cashflow Cashflows are to be generated by production of a 56% Fe ore with estimated FOB cash operating costs, including royalties, totalling AUD 72.7/t with low forecast USD 90/t (62% Fe) ore price with an assumed 0.750 AUDUSD. resulting in approximately AUD 74m of pre-tax project cashflow, and for CZR Cashflow from Operations averaging about $47m p.a. for the forecast production period.

60.0

CZR - Operating Cashflow

40.0

20.0

0.0 1-Jan-19 1-Jan-20 1-Jan-21 1-Jan-22 1-Jan-23 1-Jan-24 1-Jan-25

-20.0 Cash from Operations Capex Development Borrowings - incr/(decr) -40.0 Equity proceeds

-60.0

Forecast Production Robe Mesa is forecast to be able to begin production in late Dec22HY, and ramp up to a 2 Mtpa ore mining rate by the Dec23HY. EBITDA Margins EBITDA margins average a healthy 32% through the planned production from Reserves.

Balance Sheet At 31 M ar 2021 CZR held $2.313m cash and no debt. At 31 December 2020 CZR, had $13.51m of capitalised evaluation and exploration expenditure, Total Assets of $16.62m, zero interest bearing debt. Matau’s modelling of the Robe Mesa development anticipates raising ~$10m of equity for the Dec21 HY, and ~$25m, along with ~$26m of debt drawn in the Dec22HY for development of Robe Mesa. Matau expects cashflows from operation will be readily able to repaying the debt during FY24 with only a modest cash dedication rate.

Dividend Policy We do not expect the Board to consider or declare dividends at the current stage of project evaluation and development, until a sustained level of cash flow is generated that is capable of supporting future (exploration) growth plans, service debt, as well as dividends. We have modelled a 50% dividend payout from earnings beginning from the Dec2023 HY, though that decision is iklely to only be taken by the board after considering CZR’s cashflows, and other potential requirements for funding.

Tax Losses n/a.

Financial Instruments - Currency Hedging At this stage no currency, nor other hedging has been entered into. If project finance is used for funds, bank terms and conditions may require prudent currency hedging of operating costs and debt service payments. We believe CZR may consider currency hedge facilities when it commits to sales contracts for shipments of iron ore, for at least part of the exposure for the duration of each shipment, if not for longer periods.

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Board of Directors & Management David Flanagan – Chairman Mr Flanagan is a geologist with more than 25 years’ experience in the mining and mineral exploration industry in Australia, Indonesia and Africa. Mr Flanagan was the founding Managing Director at Atlas Iron Limited. During his tenure at Atlas Iron he oversaw its growth from a junior exploration company to an ASX Top 100 listed iron ore exporter, and the operator of three iron ore mines producing at a rate of 12Mtpa. Mr Flanagan has been recognised for his style of leadership through many awards including Governors Award for Giving 2011, Eisenhower Fellowship 2013, Western Australian of the Year 2014, and Member of the Order of Australia in 2018. Mr Flanagan also held the role of Chancellor at Murdoch University from 2013 to 2019. Robert Ramsay – Managing Director Dr Rob Ramsay is a Geologist with over 31 years of industry experience. He has worked across a range of commodities, which include; iron-ore, gold, base-metals, platinum group metals, fluorite, mineral sands and diamonds, in Australia and elsewhere in the World. He is a past Director of Striker Resources NL (now North Australian Diamonds) and has previously worked with, and consulted to, a range of companies that include CRA Exploration (now Rio Tinto Ltd), BHP-Billiton Ltd, Gravity Diamonds, Mineral Securities Ltd and Speewah Metals Ltd. Dr Ramsay is a Member of the Australian Institute of Geoscientists.. Simon Jackson –Director Mr Jackson is an experienced resource industry executive with a broad range of senior management experience through all facets of the mining cycle from exploration, discovery, feasibility, financing, construction, operations and divestment. He has extensive Board and executive level experience in a number of TSX and ASX listed public companies. Mr Jackson is the Managing Director of Kopore Metals Limited, a copper explorer focussed on the Kalahari Copper Belt in Botswana and is an Executive Director of Cygnus Gold Limited. Mr Jackson has previously held varied senior management roles including Canadian companies Orca Gold Inc. and Red Back Mining Inc. Mr Jackson is a fellow of the Institute of Chartered Accountants and holds a Bachelor of Commerce degree from the University of Western Australia.. Anna Neuling –Director. Appointed 2 November 2020 Ms Neuling has 15 years’ experience in financial and corporate roles in the resources industry with ASX listed companies including Lion Ore Mining International, Antipa Minerals Ltd and Avoca Resources Ltd. Prior to that she worked at Deloitte in London and Perth. Ms Neuling is an Executive Director of S2 Resources (ASZ:S2R) and Non-Executive Chair of Tombador Iron (ASX: Ti1). She was previously Corporate and Commercial Director of ASX-listed Sirius Resources. Ms Neuling is a Fellow of the Institute of Chartered Accountants in England and Wales and a Graduate of the Australian Institute of Company Directors. She also holds a degree in mathematics from the University of Newcastle (UK).

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Annie Guo –Director. Appointed 19 February 2021 Ms Annie Guo is a highly experienced resource sector senior executive with more than 20 years’ experience in mining and resources sector. After graduating from Macquarie University with Honours she was selected as a top performing graduate to join PricewaterhouseCoopers. During her 12 years at PwC, she held senior manager roles in transaction services, including Mergers and Acquisitions, with a focus on mining and resources sectors. Ms Guo was instrumental in facilitating many major cross-border transactions in Australian mining industry. After her career with PwC Ms Guo established her own investment platform, and during more than 8 years of mining investment through her private platform, she utilised her in-depth knowledge of mineral resources investments, mining project evaluation and transaction structuring, and invested in Australian and international mining and resource projects with more than $500m private equity funds. Ms Guo’s investment platform has made multi-million dollar investments in a number of mining companies. Ms Guo has been working with industry experts during all her career and has gained substantial technical knowledge of geology, mineralisation and project development. Ms Guo is an expert in mining project evaluation, mergers and acquisitions, capital markets in Australia and internationally, project development and corporate finance. Ms Guo is also an experienced public company executive director. Ms Guo currently is the Managing Director of Zuleika Gold Limited (ASX: ZAG) and the Group General Manager of the Creasy Group.

Stephen Hewitt-Dutton –Company Secretary. Appointed 19 February 2021 Mr Hewitt-Dutton is a Chartered Accountant and is an Associate Director of Trident Capital Pty Ltd. He holds a Bachelor of Business from Curtin University and is an affiliate of the Institute of Chartered Accountants. He has over 20 years of experience in corporate finance, accounting and company secretarial matters. Before joining Trident Capital, Mr Hewitt-Dutton was an Associate Director of Carmichael Corporate where he assisted clients by providing equity market, IPO and M&A advice and assistance. He has also held Financial Controller and Company Secretary positions for both public and private companies for in excess of 20 years.

Jeremy Sinclair – Consultant manager of the Robe Mesa PFS Qualifications: BSc Engineering (Mining) Experience: Jeremy Sinclair is a mining engineer with 25 years of experience in a broad range of roles including executive, operational, project delivery, corporate leadership and consulting in Australia and Africa. Past roles included Non-Executive Director and Managing Directgor of Battery Minerals (BAT). Prior to joining Battery Minerals Limited, Mr Sinclair was the Chief Operating Officer at Atlas Iron (AGO), a position which he held from 2011 to 2018. Mr Sinclair oversaw the commissioning and ramp up of Atlas’ five mines from a production rate of 1Mtpa to a production rate of 16Mtpa. Prior to his time at Atlas Mr Sinclair held key management roles in the Pilbara iron ore operations of Rio Tinto (RIO).

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Major Shareholders Top 20 Shareholders Position Holder Name Holding % IC 1 Yandal Investments Pty Ltd 1,315,357,684 46.10% 2 Motwil Pty Ltd 310,844,653 10.90% 3 Mr Mark Gareth Creasy 40,194,656 1.41% 4 Citicorp Nominees Pty Limited 31,034,388 1.09% 5 Botsis Holdings Pty Ltd 28,805,356 1.01% 6 Mr Yuen Suen Sherman Lam 25,000,000 0.88% 7 Miss Yee Chin Tan 21,981,906 0.77% 8 BNP Paribas Noms Pty Ltd 20,276,667 0.71% 9 Mr Michael James Hargreaves Duncan & Mrs Lorraine Betty Duncan 20,000,000 0.70% 9 Milwal Pty Ltd 20,000,000 0.70% 9 Snezka Holdings Pte Ltd 20,000,000 0.70% 10 Lecard Pty Ltd 19,550,000 0.69% 11 Mr Stephen John Lowe & Mrs Suzanne Lee Lowe 12 BNP Paribas Nominees Pty Ltd 14,131,442 0.50% 13 BALD Holdings Pty Ltd 13,550,000 0.47% 14 Paul Thomson Furniture Pty Ltd 12,205,280 0.43% 15 Mr Daniel Joseph Morris 12,123,367 0.42% 16 HSBC Custody Nominees (Australia) Limited 12,108,366 0.42% 17 Fenwick Enterprises Pty Ltd 10,560,818 0.37% 18 Mr Mark Francis Swift 10,000,000 0.35% 19 BigJac Investments Pty Ltd 8,820,548 0.31% 20 Botsky Pty Ltd 8,547,091 0.30% Totals 1,992,592,222 69.84% Total Issued Capital 2,853,018,894 100.00% Source: CZR - 23 April 2021

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Key Commodity Price Assumptions

Matau Advisory’s commodity price forecasts are compiled with regard to our view of the outlook for the steel and iron ore markets, and the views of trade industry analysts and consensus broker forecasts.

Commodity Price Assumptions / Forecasts Yr Ending June 2020a 2021e 2022e 2023e 2024e 2025e 2026e 2027e 2028e AUDUSD 0.671 0.747 0.760 0.750 0.750 0.750 0.750 0.750 0.750

Iron Ore (62% Fe) USD/t cif 108.8 152.9 105.0 90.0 90.0 90.0 90.0 90.0 90.0 Copper (USD /tonne) 5,696 7,423 7,793 7,385 7,385 7,385 7,385 7,385 7,385 Copper (USD /lb) 2.58 3.37 3.53 3.35 3.35 3.35 3.35 3.35 3.35 Zinc (USD /tonne) 2,204 2,610 2,820 2,820 2,820 2,820 2,820 2,820 2,820 Zinc (USD /lb) 1.00 1.18 1.28 1.28 1.28 1.28 1.28 1.28 1.28 Lead (USD /tonne) 1,906 1,975 2,100 2,100 2,100 2,100 2,100 2,100 2,100 Lead (USD /lb) 0.86 0.90 0.95 0.95 0.95 0.95 0.95 0.95 0.95 Nickel (USD /tonne) 14,043 16,561 18,425 18,425 18,425 18,425 18,425 18,425 18,425 Nickel (USD /lb) 6.37 7.51 8.36 8.36 8.36 8.36 8.36 8.36 8.36 Cobalt (USD /tonne) 32,613 36,740 46,297 46,297 46,297 46,297 46,297 46,297 46,297 Cobalt (USD /lb) 14.79 16.66 21.00 21.00 21.00 21.00 21.00 21.00 21.00 Gold 1,562 1,866 1,700 1,700 1,700 1,700 1,700 1,700 1,700 Silver 16.87 25.24 27.00 27.00 27.00 27.00 27.00 27.00 27.00 Platinum 868 1,010 1,250 1,250 1,250 1,250 1,250 1,250 1,250 Palladium 1,843 2,206 2,300 2,300 2,300 2,300 2,300 2,300 2,300

Source: Matau Advisory

Commodity Market Overview

Steel In 2020, many nations recorded reductions in steel output which varied from modest to extreme. Most however have significantly recovered from low levels of output that early to mid-2020. Many have yet to fully recover to pre-covid levels.

160,000 40% other world World Crude Steel Production Monthly Australia 140,000 30% Taiwan South Korea

120,000 20% Japan India China 100,000 10% Brazil USA 80,000 0% Mexico

000 tonnes 000 Canada

60,000 -10% Ukraine Russia Turkey 40,000 -20% Spain Italy 20,000 -30% Germany France Y-o-Y%

0 -40%

Jan-10 Jan-13 Jan-16 Jan-00 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-11 Jan-12 Jan-14 Jan-15 Jan-17 Jan-18 Jan-19 Jan-20 Jan-21

Source: World Steel, Matau Advisory , (Dec 2020 data) Global crude steel output decreased by -0.9% in the 2020 year. Asia produced 1,374.9 Mt of crude steel in 2020, an increase of +1.5% compared to 2019. Within Asia, China’s crude steel production in 2020 reached 1,053.0 Mt, up by +5.2% on 2019. China’s share of global crude steel production increased from 53.3% in 2019 to 56.5% in 2020. India’s crude steel production for 2020 was 99.6 Mt, down by -10.6% on 2019, though has appeared to be recovering. Japan produced 83.2 Mt in 2020, down 16.2% on 2019. South Korea produced 67.1 Mt, down -6.0% on 2019.

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The European Union (EU) produced 138.8 Mt of crude steel in 2020, a decrease of -11.8% compared to 2019. Germany produced 35.7 Mt of crude steel in 2020, down -10.0% on 2019.In the CIS, production was 102.0 Mt in 2020, up by +1.5% on 2019. Russia is estimated to have produced 73.4 Mt in 2020, up +2.6% on 2019. Ukraine produced 20.6 Mt in 2020, down -1.1% on 2019. Crude steel production in North America was 101.1 Mt in 2020, down -15.5% on 2019. The United States produced 72.7 Mt in 2020, down -17.2% on 2019. The Middle East produced 45.4 Mt of crude steel in 2020, an increase of +2.5% on 2019. Iran is estimated to have produced 29.0 Mt in 2020, up +13.4% on 2019. Annual crude steel production for South America was +38.2 Mt in 2020, a decrease of - 8.4% on 2019. Brazil produced 31.0 Mt in 2020, down by -4.9% compared to 2019. Turkey’s crude steel production for 2020 was 35.8 Mt, up by +6.0% on 2019. Africa produced 17.2 Mt of crude steel in 2020, the same as the 2019 production figure. Oceania produced 6.1 Mt of crude steel in 2020, down +1.4% on 2019.

As for prior years, the majority of production growth in steel output was recorded by a handful of emerging nations: China, India, Turkey, Iran, Vietnam, South Korea. Global Steel Production +30.6% While global steel production has -25.7%other world -30.5% Australia Steel Production reported +30.8% growth since Vietnam % change by country June 2008, almost none has come Thailand since June 2008 from ‘developed’ economies -15.0%Taiwan (except South Korea & China). South Korea +23.3% The balance of the steel production -29.8% Japan increases has come from emerging India +118.9% economies. China +88.1% Indonesia has also increased steel Iran +209.4% Brazil-4.8% production, though it not -25.6% USA represented in World Steel data. Mexico-5.4% -23.3% Canada -49.4% Ukraine Russia-5.4% Turkey +31.2% -47.7% Spain -49.2% Italy

-27.4% Germany -37.3% France -80.0% -40.0% 0.0% +40.0% +80.0% +120.0% +160.0% +200.0% +240.0%

Global Steel Production +16.3% The picture since 2017 is not much other-7.4% world different from that since 2008. Australia +8.3% Vietnam +108.6% Thailand +11.1% -10.0%Taiwan South Korea-0.2% Steel Production -16.4% Japan % change by country India +11.2% since January 2017 China +35.0% Iran +69.1% Brazil +2.1% -7.8%USA -7.6%Mexico -Canada6.1% -9.4%Ukraine Russia +3.0% Turkey +15.4% -24.4% Spain -21.8% Italy -14.0%Germany -13.3% France United Kingdom +4.8%

-43.5% Belgium

-60.0% -40.0% -20.0% 0.0% +20.0% +40.0% +60.0% +80.0% +100.0% +120.0%

Source: World Steel, Matau Advisory, (Dec 2020 data)

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Iron Ore The raw materials that are required for a tonne of steel, by the Basic Oxygen Furnaces (BOF) process which is the major process route used globally, on average are: 1.5-1.7 tonnes of iron ore, 0.67-0.75 tonnes of coking coal, 0.10-0.11 tonnes of PCI coal, and 0.11-0.19 tonnes of scrap steel.

According to Mysteel, the global total production of the iron ore products in 2020 reached

2,220 Mt. The net new addition of the production capacity is estimated to be 130 Mt, which makes for total production of 2,350 Mt in 2021 worldwide. The increased supply comes from both recommenced mines, paused due to the pandemic, and newly expanded capacity (about 20 in total). Brazil, Australia, India, and China will be the major sources of the net increase in production.

Iron ore supply was tight due to the strong demand of Chinese steel industries in 2020 even with the pandemic impact China has imported a record amount of iron ores and price moved much higher. The recent price hike was caused by the real demand although the port inventory is still at its high level, It is anticipated that price will be staying at a high level for a while.

China has shut down numerous small and low quality iron ore mines, but that has not

reduced the production of concentrates significantly China will continue to raise its bar on ore quality to match its environmental standards. As price flies high, capacity usage will continue to improve in 2021 China: In 2020 China imported 20.233 Mt of steel and 1,170 Mt of iron ore (+9.5% yr-on- yr). China has 85.297 billion tonnes of iron ore Resources but high-grade ore is only 1.2% of

that total, according to Chinese speakers at a recent Fastmarkets Iron Ore conference.

Iron ore imports from Australia and Brazil totalled 949 Mt (81.1% of imports) in 2020.

Imports from Australia in 2020 increased to 713 1 Mt from 664 6 Mt in 2019, while imports AUDUSD generally moves in the from Brazil reduced to 235 7 Mt from 229 Mt in 2019. same direction as the iron ore *While Australian producers are investing capital in operations it is described mostly as prices, except from late 2011 to replacing Resources rather than for production growth. mid 2013, and from early 2014 to mid 2014 when Australian bond A 2 x 100 Mtpa iron ore production rate from Simandou would be accounted for by 2-3 yields were sustained well above years of global steel demand growth. USA bond yields. Iron Ore prices in USD & AUD/t (cif China), & AUDUSD

1.10 230.0

1.05 Iron Ore Price 210.0 & AUDUSD

Iron ore price at 30 April reported 1.00 190.0 USD 186.35/t cfr China, having toughed USD 194/tonne during the 0.95 170.0 week. 0.90 150.0

0.85 130.0 AUDUSD 0.80 110.0

0.75 90.0

0.70 70.0 USD/t (China) CFR Fe 62% Price Iron Ore AUDUSD 0.65 China Iron Ore Fines CFR USD/t 50.0 China Iron Ore Fines CFR 62% Fe AUD/t

0.60 30.0

5-Mar-17 5-Sep-08 5-Mar-09 5-Sep-09 5-Mar-10 5-Sep-10 5-Mar-11 5-Sep-11 5-Mar-12 5-Sep-12 5-Mar-13 5-Sep-13 5-Mar-14 5-Sep-14 5-Mar-15 5-Sep-15 5-Mar-16 5-Sep-16 5-Sep-17 5-Mar-18 5-Sep-18 5-Mar-19 5-Sep-19 5-Mar-20 5-Sep-20 5-Mar-21 5-Sep-21

Source: Argus, XE, RBA, Matau Advisory (30 April data) The post global financial crisis pattern of the commodity price falling with the currency remaining high was a very distinct anomaly compared to past history. It was attributed to a carry-trade targeting Australian bonds that had higher yields than other developed countries’ paper, not moving with regard to the commodity price. That condition has abated.

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XY plot AUDUSD & Iron Ore Price USD/t cfr China 1.20

AUDUSD vs 1.10 Iron Ore price (62% Fe cfr China) XY plot Broadly iron ore prices and AUDUSD rates tend to trend 1.00 together. However, there are two periods between 2012 & 2015, where the 0.90 AUDUSD rate appears to have not

moved with regard to large AUDUSD 0.80 changes in commodity price, and been ‘flat’ paying more attention to the AUDUSD carry trade. 0.70 2005-2008 Otherwise higher iron ore prices 2009-2011 2012-2015 tend to coincide with higher 2016-2017 0.60 AUDUSD rates, and conversely. 2018-2019 2020-2021 0.50 30.0 40.0 50.0 60.0 70.0 80.0 90.0 100.0 110.0 120.0 130.0 140.0 150.0 160.0 170.0 180.0 190.0 200.0 USD/t CFR China

Source: Argus, Bloomberg, Matau Advisory

Iron Ore prices (cif China) in USD & CNY/t

240.0 1,400

216.0 Iron Ore Price 1,260 The USD and CNY (yuan) have USD/t cfr & CNY/t cfr tended to track each other reasonably closely except for 192.0 1,120 usually short periods when their 168.0 980 values (in terms of other currencies) diverge. 144.0 840 In terms of iron ore prices the 120.0 700 movement in the iron ore prices is considerably greater than the 96.0 560 movements in the USDCNY exchange rate. 72.0 420

48.0 280 IronOre 62%PriceFe (cfr CNY/t China) China Iron Ore Fines CFR USD/t

24.0 China Iron Ore Fines CFR CNY/t 140

0.0 0

5-Mar-12 5-Sep-08 5-Mar-09 5-Sep-09 5-Mar-10 5-Sep-10 5-Mar-11 5-Sep-11 5-Sep-12 5-Mar-13 5-Sep-13 5-Mar-14 5-Sep-14 5-Mar-15 5-Sep-15 5-Mar-16 5-Sep-16 5-Mar-17 5-Sep-17 5-Mar-18 5-Sep-18 5-Mar-19 5-Sep-19 5-Mar-20 5-Sep-20 5-Mar-21 5-Sep-21 Iron Ore price 62% Fe2O3 USD/t cfr China Fe2O3 62% price Iron Ore

Source: Argus, XE, RBA, Matau Advisory, 30 Apr data Overall price movements have been much more significant than shifts in the USDCNY exchange rate. Notably the USDCNY exchange rate has traded in a relatively narrow band, ~6.0-7.0, compared to the range that the AUDUSD trades in (0.60-1.08) over the period September 2008 to present. While iron ore trade is dominated by Chinese demand the price that is established as a cif China price, is denominated in USD. China has its own domestic Resources of (largely lower grade) iron ore, (unlike Japan, South Korea and Taiwan, which have no domestic iron ore Resources) into which its miners dig, particularly when imports of iron ore become relatively expensive. However the quality of Chinese ores is not as attractive as Australian nor Brazilian ores, and the operating costs are reported to be higher. Matau notes that China Iron & Steel Association (CISA), a government oversight body for the steel industry has in past years railed against high import prices when demand is strong and supply tight, only to be rebuffed by its own steel makers, including SOE’s, who are clearly commercial, saying ”… that is the market price, and we need the ores …”.

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China more recently has been making concerted efforts to become less dependent upon the ‘big four’ (BHP, RIO, Vale & FMG) iron ore producers, and is seeking alternative sources of tier-1 supply. (e.g. Simandou) Additional supply will likely be from West Africa, and will need to be efficient, low cash cost, and of scale, with multiple mines to compete effectively with Brazilian supply, which is high quality and has a comparable shipping disadvantage, to Australian supply. China Iron & Steel Association (CISA), a government is establishing a USD 13 billion fund to develop domestic (China) resources. Simandou (Guinea) The Simandou mine is a large iron mine located in the Simandou mountain range of southern Guinea's Nzérékoré Region. Simandou represents one of the largest iron ore reserves in Guinea and in the world, having estimated reserves of 2.4 billion tonnes of ore grading 65% Fe. The Pic de Fon and Ouéléba iron deposits are located approximately 4 km from one another at the southern end of the Simandou Range, approximately 550 km ESE of the capital, Conakry. Both deposits are approximately 7.5 km in length and up to 1 km wide. At both banded iron formations (metamorphosed to staurolite-grade itabirites) have been enriched to form haematite and haematite-goethite mineralisation. The potential yield of the two deposits is estimated at 2.25 billion tonnes of high-grade iron ore. These have low strip ratios and expect to be positioned in the second quartile of the cash cost curve. After years of disputes, allegations and court cases two blocks with two joint ventures are separately working toward production, each nominating ~100 Mtpa production targets. North Block (1 & 2): Societe Miniere de Boke (SMB) 90%, Government of Guinea 10% South Block (3 & 4): RIO 45.05%, Aluminium Corporation of China (Chinalco) 39.95%, Government of Guinea 15%. Mining operations at Simandou’s South Block by Rio Tinto Limited (RIO) were originally expected to start before the end of 2015. RIO plans to build a 650 km railway to transport iron ore from the South Block mine to the coast, near Matakong, for export. Much of the Simandou iron ore is expected to be shipped to China for steel production. Despite assurances, the mine is still not operational. The mine is expected to produce up to 95 Mtpa of ore. The North Block JV operated by the Chinese/Singapore SMB-Winning, is anticipated to have similar capacity. Guinea’s government has approved a multi-national group’s plan to build a railroad and deep-water port to export output from the massive Simandou iron ore deposit to key markets including China. The consortium, which includes Singapore’s Winning Shipping, Guinean mining logistics firm United Mining Supply (UMS), Chinese aluminium producer Shandong Weiqiao and Guinea’s government, won a tender to develop blocks 1 and 2 in the northern area of Simandou. The consortium had committed to build a 650km railway and a deep-water port and that it aimed to bring the two blocks into production by 2025. Total cost of the project is now pegged at USD 16 billion. Allowing miners to ship ore via closer ports in neighbouring Liberia would reduce that cost, but Guinean authorities had repeatedly said they would only allow Simandou exports to leave from a ‘local’ port. In September 2020, assessments suggest that Simandou production would be greater competition to Brazilian ore than to Australian ore (despite China’s current stance on Australia), and that at most Simandou production may reduce the iron ore price by ~USD 8/tonne cfr. Matau estimates that if rail charges for Simandou were comparable with north American long-haul charges, ~USD 0.032/t.km, that Simandou would meet rail haulage costs of ~USD 20.6/tonne of ore. With mining and crushing costs, royalties and site admin costs, Matau considers that it is likely to have a fob cash cost approaching USD 30/t, before adding shipping costs to its major customer, China, which could vary between USD 5-15/t.

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Source: RIO 2018

The top four iron ore producers account for more than 70% of supply of global seaborne iron ore. Based on the above curve, the 50th percentile cost is ~USD 42/t cfr China, the 75th and 80th per centiles are about USD 55/t cfr, and the 90th percentile is ~USD 80/t cfr China. Matau anticipates that Simandou could sit close to the third quartile of the cfr cost curve, subject to shipping costs. Matau estimates Yarraloola’s cfr China cash costs at about USD 48.7/t, within \the third quartile. Freight / Shipping We anticipate CZR loading onto barges for offshore transhipment onto Handymax (30- 60,000dwt), Supramax (60-70,000dwt) sized vessels. At a production rate of 2 Mtpa, CZR could on average ship ~167,000 tonnes per month or 2-5 shipments /month. The Baltic Indices, reflecting demand for shipping, are an indication of the volatility in and demand for shipping, and shows quite a wide (cyclic) variation. However prices for shipping is usually high when commodities are in strong demand and commodity prices are commensurately high. Other supply constraints can be a disruption to shipping (e.g. recently blocking Suez Canal and effectively tying up shipping en-route, or banning shipping from unloading, in China, leaving fully laden tonnage waiting off port to unload), both of which we have witnessed recently. Panamax freight rates – Australia to Asia

55.00

50.00 Freight Rates Newcastle China Zhoushan 70-82,000 dwt 45.00 Panamax Vessels Newcastle China Guangzhou 70,000 dwt USD/tonne Newcastle Japan Japan 65,000 dwt 40.00 Dalrymple Bay China Longkou 70,000 dwt

35.00

30.00

25.00

20.00

15.00

10.00

5.00

0.00

07-Jul-08 07-Jul-17 07-Jul-00 07-Jul-01 07-Jul-02 07-Jul-03 07-Jul-04 07-Jul-05 07-Jul-06 07-Jul-07 07-Jul-09 07-Jul-10 07-Jul-11 07-Jul-12 07-Jul-13 07-Jul-14 07-Jul-15 07-Jul-16 07-Jul-18 07-Jul-19 07-Jul-20 07-Jul-21

Source: IHS Markit, Matau Advisory 16 Apr data In periods of relatively ‘normal’, undisturbed trade, Matau anticipates Panamax rates to be of the order of USD 10-15/tonne of bulk freight carried. However, recently Chinese port unloading restrictions tightened up the supply of shipping (with a brief recent contribution by the week long blockage of the Suez Canal).

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Baltic Shipping Indices

5,000 Baltic Shipping Indices

4,000

3,000

2,000

1,000

Baltic Dry 0 Baltic Cape Baltic Panamax Baltic Supramax Baltic Handysize

-1,000

11-Jul-20 20-Apr-19 15-Jun-19 10-Aug-19 5-Oct-19 30-Nov-19 25-Jan-20 21-Mar-20 16-May-20 5-Sep-20 31-Oct-20 26-Dec-20 20-Feb-21 17-Apr-21 12-Jun-21 7-Aug-21

Source: Capital-Link, Matau Advisory 30 Apr data The Baltic shipping indices simply provide an indication of the demand for bulk carrier shipping. Since February 2021, demand for shipping has increased. The short blockage of the, Suez canal and numbers of ships at anchor, awaiting unloading at China have contributed to the tight supply, on top of demand from bulk commodities iron ore iron ore and grains.

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Review of Operations Yarraloola: Robe Mesa & Robe East Status CZR holds a 85% interest in the Yarraloola projects. CZR had conducted a strategic review of the channel-iron-deposits at Robe Mesa, Robe, East, Yarraloola and P529, with a view to exporting direct shipping iron ore. CZR is also evaluating the Ashburton magnetite project, within the existing tenements. Location Robe Mesa is located in WA approximately 100 km east of the port of Onslow (180 km by road), about 150km SW of Karratha (200km by road), and about 300 km WSW of Port Hedland (~400 km by road).

Project Location Plan – Yarraloola project

Source: CZR

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Robe Mesa & Robe East Site Plans

Source: CZR Resources Dec20HY report

Extensional drilling and infill drilling is planned to evaluate expansion of the Robe Mesa/East Resource.

Access to the un-drilled Northern extension is pending and subject to Native Title and Heritage evaluation and clearances.

Source: CZR prsntn 20210413

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Reserves & Resources The CID deposits report over+90Mt @ 53% Fe (calcining to 60% Fe) of Indicated and Inferred JORC2012 compliant CID and there is a higher grade, upper zone on the Robe Mesa with 24.9Mt @ 56% Fe (calcining to 62.7% Fe) that now contains a JORC2012 probable ore-Reserve of 8.2Mt @ 56% Fe. The Robe Mesa and Robe East deposits contain total Resources of 89.1Mt at 53.7% Fe (calcining to 60% Fe) of Indicated & Inferred Resources at a 50% Fe cutoff. Robe Mesa + cutoff Fe SiO2 Al2O3 TiO2 LOI P S Fe(ca) East % 50% 000t % % % % % % % % Measured 0 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Indicated 65,700 53.80% 8.30% 3.40% 0.14% 10.60% 0.04% 0.02% 60.20% Meas + Indic 65,700 53.80% 8.30% 3.40% 0.14% 10.60% 0.04% 0.02% 60.20% Inferred 23,400 53.41% 8.49% 3.48% 0.15% 10.74% 0.06% 0.02% 59.81% Resource 89,100 53.70% 8.35% 3.42% 0.14% 10.64% 0.05% 0.02% 60.10% Source: CZR Resources Dec20HY report A cut-off grade of 55% Fe has been applied to the mineral Resources in defining the Reserves. Indicated Resources have been included in the mine plan optimisation. Robe Mesa cutoff% Fe SiO2 Al2O3 TiO2 LOI P S Fe(ca) +East Resources 55% 000t % % % % % % % % Measured 0 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Indicated 19,500 56.00% 6.00% 2.70% 0.10% 10.70% 0.04% 0.02% 62.70% Meas + Indic 19,500 56.00% 6.00% 2.70% 0.10% 10.70% 0.04% 0.02% 62.70% Inferred 5,200 56.00% 5.80% 2.80% 0.10% 10.70% 0.05% 0.02% 62.70% Resource 24,700 56.00% 5.96% 2.72% 0.10% 10.70% 0.04% 0.02% 62.70% Source: CZR Resources Dec20HY report Robe Mesa JORC 2012 Reserves are reported above a cutoff of 55% Fe.

Robe Mesa +East cutoff% Fe SiO2 Al2O3 P S LOI Reserves 55% 000t % % % % % % Proved 0 0.00% 0.00% 0.00% 0.000% 0.000% 0.00% Probable 8,200 56.00% 5.90% 2.70% 0.039% 0.020% 10.90% Reserves 8,200 56.00% 5.90% 2.70% 0.039% 0.020% 10.90% Source: CZR Resources Dec20HY report Based on plans for direct shipping ore, processing recovery is assumed at 100%. Target Horizons / Formations The deposit is a channel-iron (CID) style ore-type, reflecting the depositional environment of iron-rich pisolites and fragments in an ancient river channel. The ironstone was deposited in two cycles of deposition, separated by variable thicknesses of sandy & silty material with the Fe content of each cycle increasing toward its upper surface. The project will produce a saleable product according to established reference ores (RIO’s Robe River fines & FMG’s SSF (Super Special Fines). The Robe deposits in CR’s tenements are located in a mineralised system that is mined in adjacent tenements by RIO and exported through ports near Karratha. Robe Mesa & Robe East – schematic cross section

Source: CZR Resources pre-feasibility study 10 Dec 20.

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Mining Method(s) CZR has assumed the use of contractor operators, with conventional drill & blast, truck & shovel (backhoe excavator) for its planned open pit mining. The Pre-Feasibility Study has evaluated a mining rate of 2 Mtpa with a mine life of over 5 years. It is proposed as a simple, low strip ratio mining operation with the PFS indicating use of a single excavator and four dump trucks as a primary mining flee, on day shift only. Metallurgical testwork identified that the ore is easy to crush, yielding a product suitable for direct shipping and sintering. The terrain is favourable, making access to the Mesa for mining and construction of infrastructure relatively straightforward.

Production The PFS planned mine schedule achieves a 2 Mtpa production rate with a mine life just over 5 yrs, based on Reserves and a strip ratio with an average grade of 56.0% and strip ratio of 0.57:1 (waste/ore), achieving a saleable product specification and maintaining a low waste strip ratio. Operating cash costs (C1) are estimated as below, for the PFS, (incorporating haulage to Port Heldand). Within these the haulage cost is, unsurprisingly, about 54% of the C1 cost. Operating Costs (C1) AUD/dmt Mining 8.77 Crush & Screen 4.22 Site Gen & Admin 4.87 Haulage 35.1 Port 11.83 Total Operating costs 64.79 The above haulage costs are to Port Hedland, which work out to about $0.085/t.km. With the addition of state royalties Matau estimates an approximate fob cost (Port Hedland) of about AUD 72.00/t (or USD54/t at AUDUSD 0.75). Matau’s estimates for haulage to the port of Onslow would reduce the unit road haulage cost to about AUD 15.2/dmt, giving a total C1 cash cost of ~AUD 45/dmt. Addition of state royalties makes Matau’s estimate of Yarraloola’s total cash costs at about AUD 49.0/t fob (or USD 36.7/t cfr). Addition of ~USD12/t for cfr shipping costs makes a CFR cost of USD 48.7/t CFR, within the third quartile of the iron ore cfr China cash cost curve.

Water Hydrogeological studies are planned to locate sufficient quantities of ground-water sources to support the camp, mining and processing operations. Native Title / Heritage Conversion of parts of exploration licences E08/1060 and E08/1686 to mining licences is to be applied for, and will require engagement with Native Title holders, Robe River Kurama, for granting this tenure. Environmental Desktop studies for Flora & Fauna were initially carried out by RPS Australia West Pty Ltd (RPS) and Bamford Consulting Ecologists (BCE respectively. Their reviews showed no prior surveys of the flora or fauna for Environmental Impact Assessment (EIS) within the CZR tenement areas. However there have been extensive and multiple surveys in similar landscapes nearby, and the general flora and invertebrate fauna assemblages are well documented. There will need to be surveys to compare with nearby conditions and also to document any short-range species in the drainage systems. The Environmental Protection Agency (EPA) requires as a minimum that the flora and fauna field sampling programs are undertaken within seasonal intervals of the year where the greatest amounts of activity are expected. CZR is preparing for the full Definitive Feasibility Study (DFS) stage of its Robe Mesa iron ore deposit in WA, with the start of key studies related to the conversion of tenure, native title, environment and heritage. These studies will pave the way for the project to secure the required environmental and mining approvals, which will in turn form part of the DFS.CZR announced late last year that the Pre-feasibility Study (PFS) found that Robe Mesa is technically robust with potential to generate strong financial returns. Work has commenced on selecting the optimum area for conversion of the exploration licence to a mining lease.

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As part of this process, CZR will engage with the Native Title holders. In addition, desktop studies of surface and ground-water components are scheduled for April 2021. These will be followed by field studies of the flora and fauna and heritage clearance for the next round of RC drilling. Field work will first focus on the area of proposed development, but studies will then extend along the haul-road corridor as the potential port option is identified.

Transport / Infrastructure The project is 180 km by road east of Onslow, about 180 km by road SW of Karratha, 420 km by road SW of Port Hedland. A 35 km unsealed access road connects the site with the North West Coastal Highway, which is RAV Category 10 rated (suitable for use of quad-configured road trains). The access road from the Great Northern Highway will need to be upgraded for road-train use. The Pre-Feasibility Study (PFS) was originally worked on transporting ore from site to the existing and proven, accessible, port infrastructure at the Utah Point Bulk Handling Facility in Port Hedland. It concluded that export of ore from Port Hedland was commercially feasible and robust. The constraints of operating in daylight hours (6am-6pm) led to establishment of a 2 Mtpa operating capability, informed in part by (superquad road-train) truck distancing requirements. Matau understands these quads have capacity of ~114 tonnes per load and may travel at highway speeds of 100 kmph. Since the conclusion of the PFS, discussions with the closer port of Onslow has confirmed availability of access through that port to load ore onto barges for trans-shipment into bulk carriers (Handy-size or Panamax). At the end of December, CZR has signed a non-binding Memorandum of Understanding (MOU) under which it could ship its Pilbara iron ore through the Onslow port. The MOU is with the Onslow Marine Support Base Pty Ltd (OMSB). OMSB is the owner of the support base facility (OMSB Facility) located in Beadon Creek, Onslow, 2km west of the town of Onslow in WA’s Pilbara. Onslow Marine Support Base (OMSB) is a privately owned multi-user facility, with the Western Australian Department of Transport as the controlling authority. The OMSB Facility has hard-stand areas in excess of 250,000 sqm ready for use, an inner and outer harbour, wharf with heavy lift facilities and channel to deeper water. It supports on-shore to off-shore activities for the petroleum industries in the Carnarvon Basin and is planning to expand into the handling of bulk commodities. The channel and the OMSB Facility can currently accommodate a transhipping operation for the loading of iron-ore onto barges or self-propelled barges (up to 100 metres in length), before sailing to a suitable transhipment anchorage or location. The channel and the OMSB Facility have the potential to accommodate the berthing of vessels for direct ship loading. The direct loading of Handymax or larger vessels requires further modelling and will require further dredging and channel widening. Transhipment of bulk materials at sea has been successfully deployed at numerous ports, both in Australia and overseas. CZR and Onslow Marine Support Base (OSMB) have agreed to working together to determine the economics, technical and environmental considerations. CZR Resources’ Pre-Feasibility study which included trucking to Utah Point, Pt Hedland estimates a cash operating fob cost of AUD 64.78/t fob (Port Hedland) with a conclusion highlighting a robust economic case. We understand this excludes Royalties which Matau estimates at ~AUD 6.5/tonne (based on the long term USD 90/t ore price), taking the PFS fob cost to ~AUD 72/t. Matau also estimates shipping costs to China to be within an average range of USD 10-15/t. The PFS estimate included a road haulage estimate for 424 km of AUD 35.10/t ore. More recent discussions have shown the closer port of Onslow (~180 km) which will potentially reduce the haulage cost to AUD 15.30/t fob, a cost saving of ~AUD 20/t for the shorter haulage distance.

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Exploration At Robe Mesa / East, CZR intends to plan for infill drilling to a 50m x 50m spacing as part of the Definitive Feasibility Study (DFS). The Northern Extension – Robe Mesa was not previously drilled and included within the PFS Resource, pending Heritage clearance. It is being reviewed with regard to the Heritage site which is about 1 km distant from the ‘Extension’ area. Access to this area is subject to and pending conclusion of the Heritage work. Within these tenements other Iron ore exploration work has been comprised of drilling, sampling, and drilling on the P519 CID Resource. The Ashburton magnetite prospect is a style of volcanic-hosted mineralisation in the Brockman Iron Formation in the West Pilbara that has a similar geological setting to the Fortescue Metal Group (FMG)’s Iron Bridge project. Outcropping to sub-cropping magnetite mineralisation extends over an area of 6 km by 1 km. The magnetite mineralisation has reported mass recoveries of magnetite from Davis tube, on reverse circulation (RC) chips and diamond drill core up to 42% at P80-grainsizeof 22microns with Fe grade > 67% and SiO2 5%. A compilation of samples from 10x drill holes from surface to maximum drill depth delivered an overall 24% mass yield of magnetite with a composition of 65% Fe and SiO2 at 7.48% Al2O3 at 0.39%, P at 0.02%, S at 0.1% and TiO2 at 0.05%. The above grades and test metallurgical results are attractive. A further review of results is in progress. Offtake Agreements n/a Capital Expenditure The PFS estimates for capital expenditure required is considered to have an accuracy of +/- 25%, with a 15% contingency applied to direct and indirect costs. The majority of costs have been derived from Requests for Quotations (RFQ). The capital estimate allows for mobilisation, establishment, construction, demobilisation, mine closure and future environmental monitoring. Start-up capital was estimated at AUD 51.1m, with AUD 9.1m of deferred capital (sustaining capital and mine closure & demobilisation).

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Buddadoo - Au

Status CZR holds the 192 km2 Buddadoo Project (E59/1350), which covers part of the Gullewa Greenstone Belt in the Youanmi Terrane in the Murchison province. Location The project is located about 200km east of Geraldton Port and 60km from a rail siding at Morawa that connects to Geraldton. Reserves & Resources

n/a

Target Horizons / Formations

The tenement contains gabbroic rocks that are mineralised with bands of massive and

disseminated vanadiferous titanomagnetite. There is widespread prospectivity for gold Focus at Buddadoo, has shifted and copper mineralisation. from vanadiferous magnetite to CZR exploration is focussed on five independently generated targets, for orogenic gold gold prospectivity. mineralisation. These prospects are located in flexures of the Salt Creek Shear, where most of the bedrock is under shallow cover.

The most advanced prospects on the tenement are accessible using a bitumen-road between the towns of Morawa and Yalgoo, then a road with a made surface for about 10 km, and 5 km of station tracks. CZR is also focussed on exploring the gabbro-hosted vanadium-magnetite in the Buddadoo Hills. Copper Valley at the southern end of the Buddadoo tenement has historical occurrences of copper mineralisation that are located towards the eastern end of a 500 m wide NW- trending regional structure. Recent rock chips collected at intervals where mineralisation was detected along a strike length of about 5 km report assays of copper (Cu) to 15.2% and gold (Au) to 0.6g/t. The Gullewa Greenstone belt is located within the Youanmi terrain of the Yilgarn and this is the region that hosts large gold deposits near Mt Magnet, Cue and Meekatharra and the Deflector Gold Mine owned by Silver Lake Resources (SLR) is approximately 5 kilometres from the western boundary of the tenement.

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CZR initially investigated part of a 6 kilometre long and 300 metre wide gabbro within the Focus at Buddadoo has moved greenstone belt that contains bands of coarse-grained, massive and disseminated, from vanadiferous magnetite to vanadiferous titanomagnetite as a potential source of iron-ore for vanadium (CZR releases prospectivity for gold. to ASX; 29 July 2013, 17 October 2017 and 21 November 2018). At a P80 grind-size of - 45 microns the concentrate report Fe from 66-68%, V2O5 from 0.8 to 1.86%, TiO2 from 1.4 to 5.7%, and SiO2 and Al2O3 are less than 1% and is a potential feedstock for the direct smelting of vanadiferous steel from iron-ore pellets. More recently, CZR has focussed on the gold potential of Buddadoo because the tenement covers approximately 25 kilometres of the regional-scale Salt Creek Shear zone and up to a 10 kilometre wide area of greenstone belt. Assays from gridded soil samples across the structures and greenstone have generated gold and copper anomalies that require follow-up by drilling and the company has DMIRS permission for a drilling programme. Mining Method(s) n/a. Production n/a. Water n/a Native Title / Heritage CZR has recently finalised an access agreement for heritage engagement and clearance for ground disturbance and drilling. Heritage clearance and earthworks are required for drilling, and is scheduled to be concluded during April 2021. Environmental Environmental clearance Transport / Infrastructure The Buddadoo project area has bitumen roads and is accessible all year. Exploration The Gullewa Greenstone belt contains SLR’s Deflector high-grade gold deposit and an emerging deposit on FFR tenements to the north. In late 2020, CZR collected ~1,700 gridded soil samples over five independently generated targets, in flexures in the Salt Creek Shear. Results from these will be used to identify and prioritise RCV drill targets. These targets are considered to be related to deep crustal structures that may act as conduits for mineralising fluids. Edamurta, the western target, which covers a flexure in the fault splays near the core of the Salt Creek shear, the assays outlined an area some 1,000m x 600 metres where traces of gold are associated with a strong arsenic anomaly. In contrast, the eastern target, which also includes samples with gold anomalism and covers an area with historical pits and drill-holes, has delivered a coherent pattern of copper anomalism that covers some 700m x 300m and includes rock-chips with visible secondary copper minerals that peak at 6% Cu Drill testing and assays of samples is planned for May through July 2021. Capital Expenditure n/a.

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Croydon - Au

Status CZR holds a 70% interest in the Croydon project (E47/2150) in the Mallina Basin between Kararatha and Port Hedland. Location Croydon is located about 100 km SE of Karratha in the Pilbara. Location Plan – Croydon project

Source: CZR Site Plan –

Source: CZR report 20210902 Location of the Croydon Project and the emerging (DEG) Hemi gold discovery along the south-easterly trend of the Tabba Tabba shear-zone. Reserves & Resources

No Resources have been declared to date.

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Target Horizons / Formations Based on aerial imagery, the western portion of Croydon Top Camp Project (CTCP) has extensive areas of disturbance along the streams and valley floors that have been produced by small-scale alluvial and eluvial gold prospecting and mining, which commenced in the late 1800’s and has been ongoing. All these workings are proximal to

and down-slope of the approximately 25 km long, low-angle, unconformable contact between the Fortescue Group and the underlying basement of deformed turbiditic Croydon tenements cover about 40 metasediments. km of key regional structures, The conglomerates at the base of the Fortescue Group have become the preferred target about 50 km SE of DGE’s Hemi for the source of detrital gold in a Witwatersrand-style deposit (as documented in company deposit. announcements by Novo Resources Corp: NOV.tsx; De Grey Minerals Ltd :DEG.asx; DGO Mining Ltd DGO.asx, Venturex Resources Ltd: VXR.asx and Kairos Minerals Ltd: KAI.asx). The ca.2,770 to 2,630 Ma old Fortescue Group that retains a relatively flat-lying attitude, has an irregular valley-fill conglomerate at the base. These features provide an opportunity to preserve outliers of conglomerate for perhaps several kilometres across the CZR has a compilation of historical tenement. Evidence that the basal portion of the Fortescue Group is prospective is shown drainage, soil sample and rock chip by anomalous gold results that range from 5 and 2,000 ppb in historical drainage samples assays, and has extended the collected in proximity to the mapped contact. amount of surface sampling on the In addition to the prospectivity for Witwatersrand-style detrital gold mineralisation, CTCP project since 2018. also contains three more advanced prospects, with structural gold opportunities, known as Top-Camp, Middle Valley and Golden Valley where historical results indicate potential for gold mineralisation within the basement of the De Grey Superbasin (Fig 2). 20181128 Top-Camp This prospect covers a structurally complex area of carbonate-silica altered turbiditic silts and sands within a broad NE-trending shear-zone. On the available aerial imagery (Bing and Google), the valley floors and drainages are extensively disturbed by historical small- scale mining activities and historical vein sample results were the first encouragement for further work.

A 2.5 kilometres long and 500m wide corridor of gold anomalism extends north-east extending between Franks Patch to Middle Valley, that has not been tested. A quartz-vein with shallow workings at Middle Valley has rock- chip samples that report gold to 3.1g/t.

Source: CZR Dec19Qtr report Mining Method(s) n/a. Production No production rates have been determined at this stage of evaluation. A feasibility study of the economics of a project Resource would need to be completed to determine an optimal rate. Water n/a.

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Native Title / Heritage CZR is operating with established Native Title and Heritage agreements… Fiurther discussion is required for RC drilling. Environmental n/a. Transport / Infrastructure

n/a.

Exploration In the Dec18Qtr a high-resolution magnetic and radiometric survey over the entire Croydon Top-Camp Project provided significant new information to interpret bedrock

geology and the structural setting of mineralised prospects beneath alluvial and colluvial detritus. Soil sample geochemistry in areas of outcrop and shallow cover is generating coherent gold and pathfinder element anomalies for follow up testing. The 2020 program included 3,400m of RC drilling and 600m of diamond drilling, mostly at Top Camp. The 2019 2,600m Maiden RC programme reported intercepts (>0.5g/t Au) in 9x of 13x 200m deep holes, with 8m at 10.2g/t Au from 135m in CRC007.

The 2020 follow-up drilling reported intercepts (>0.5g/t Au) in all 12x RC holes with 2m at 22g/t Au from 7m in CRC021 and 28m at 0.59g/t Au from 147m in CRC022.

As yet, drilling has not defined the limits of the mineralised system on the Croydon tenement and exploration continues to identify and sample areas with favourable alteration and extensive evidence of historical workings.

Source: CZR Mar21Qtr RC drilling at Top Camp has confirmed there is an effective relationship between gold in soils and significant gold intercepts in the underlying bedrock. As yet, drilling has not defined the limits of the mineralised system on the Croydon tenement and exploration continues to identify and sample areas with favourable alteration and extensive evidence of historical workings. Following Native Title and Heritage clearance, infill and extensional RC drilling is planned for August through October 2021. Capital Expenditure n/a

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Shepherd’s Well – base metal

Status CZR holds a 70% interest in the Shepherd’s Well (Ni, Cu-Zn-Pb-Ag) project. The balance (30%) is held by the Creasy Group).

Location Shepherds Well (E08/2361), in the west of the Pilbara, is located about 60km south-west of Karratha. Site Plan –

Shepherds Well is under-explored by modern exploration concepts and techniques and assay results from CZR sampling to date suggest that surface sampling provides an effective tool for identifying mineralisation.

Source: CZR 20191125 report

Reserves & Resources No Reserves nor Resources have been defined to date. Target Horizons / Formations The region has a basement of basaltic, felsic and metasedimentary rocks that are unconformably overlain by predominantly mafic volcanics from the Fortescue Group and sediments of the Hamersley Basin.

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Shepherd’s Well covers 15km of a regional shear-zone that separates the Regal Terrane from the Jean Well Granodiorite and about 22 km of the unconformity at the base of the Fortescue Basalt. The one to two kilometre wide shear-zone is prospective for a range of mineralisation types, while the unconformity is being explored over a wide area of the Pilbara as a source of detrital gold mineralisation. Water n/a. Native Title / Heritage n/a. Environmental n/a. Transport / Infrastructure The project covers an area that is 25-50km from a new proposed public access port at Cape Preston East, serviced by tracks from the Great Northern Highway and is crossed in part by an easement for the proposed West Pilbara railway. Exploration Programmes of soil and rock-chip sampling and mapping have identified nickel (Ni), copper (Cu) and gold (Au) anomalism associated with an outcrop of talc-carbonate rock at Dorper Rise and lead (Pb), zinc (Zn) and silver (Ag) associated with a linear magnetic anomaly at Suffolk Ridge. In addition, where soil and drainage samples have been collected near the base of the Fortescue Basalt, they typically report anomalous gold. Shepherd’s Well covers 15km of a regional shear-zone that separates the Regal Terrane from the Jean Well Granodiorite and about 22 km of the unconformity at the base of the Fortescue Basalt. The one to two kilometre wide shear-zone is prospective for a range of mineralisation types, while the unconformity is being explored over a wide area of the Pilbara as a source of detrital gold mineralisation. Awassi Rare-Earth Prospect Samples from Awassi cover a 400m diameter radiometric anomaly hosted by a mylonitised interval of the Jean Well Granodiorite. The soil samples are potassic (K2O > 4%) and low phosphorus (100 ppm) but report anomalous total rare-earth contents up to 500 ppm with cerium (Ce) to 318 ppm, lanthanum (La) to 123 ppm and praseodymium (Pr) to 30 ppm. The phosphorous-poor geochemistry from the samples reflects the potential for rare- earth carbonates and perhaps an alkaline igneous or carbonatitic source. Follow-up work is planned as rare-earth metals have become of strategic importance for the efficient generation and use of electrical energy. At Awassi recent infill sampling of the radiometric anomaly suggested that the pattern of rare-earth distribution reflects zonation within a felsic porphyry. Dorper Nickel Prospect Samples from the Dorper prospect cover an outcrop of carbonated ultramafic located in a flexure of the sheared contact between the Regal Terrain and the Jean Well Granodiorite. Soils from the outcropping ultramafic rocks on the prospect report nickel to 0.36%, cobalt to 173 ppm and gold to 220 ppb. The elliptical trace of the ultramafic in the flexure of the shear-zone may be indicating that the rock has an intrusive origin with prospectivity for disseminated and massive nickel-rich sulphides. The primary target is approximately 100 m long and 50 m wide at the surface and follow up work will include exploratory drilling. Suffolk Zinc-Lead Prospect Samples from Suffolk cover a zone of shearing and quartz veining in the Jean Well Granodiorite that has soils which are anomalous in zinc to 0.16%, lead to 0.2% and gold to 25 ppb. The southern extension of the system is covered by the younger units of the overlying Fortescue Volcanics. The narrow, westward extensions of the Fortescue Volcanics also trace the extent of clastic and volcanic fill into ancient valleys and channels into the Jean Granodiorite. These show that the basal unconformity to the Fortescue Volcanics is a non-planar surface and highlights potential trap-sites for any detrital gold that may have been being transported across the surface. At Suffolk, the additional samples more comprehensively identified the peak intervals for lead, zinc and copper within the prospect. Further work is being planned. Capital Expenditure n/a

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Yarrie – iron ore

Status CZR holds a 70% interest in the Yarrie project. The Creasy Group holds interest in the balance (30%). CZR acquired Yarrie through an option entered into in April 2014. The Yarrie Project consists of six granted exploration licences (E45/3725, E45/3728, E45/4065, E45/4433, E45/4604, and E45/4605) that cover a total of 419km2. Location The Yarrie project cover units of geology that extend from the BHP-owned Yarrie iron-ore mining centre, about 180km east of Port Hedland and 90 kilometres north-east of Marble Bar in the North Pilbara. Site Plan –

Source: CZR prsntn-20210413 Reserves & Resources n/a. Target Horizons / Formations The Yarrie tenements have the potential to host high-grade (+62% Fe) iron-ore deposits within the magnetically active Archaean-age Nimingarra Iron Formation. The Yarrie tenements are held for their potential to host high-grade (+62% Fe) iron-ore and have historical high-grade RC drill intercepts in the Cabbage Tree and Kennedy Gap prospects. The CZR tenements include areas of outcropping Nimingarra to east and south of the BHP tenure, and potential extensions under cover that can be outlined by the strong magnetic response from the prospective unit. The iron ore deposits are generally hosted near faults and towards the base of an iron formation and can be traced by its active airborne magnetic response.

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The eastern margin of CZR’s tenure, indicates active airborne magnetic response and coincides with historical high-grade drill intercepts at the Cabbage Tree prospect. In addition, E45/3278 covers a portion of the basal interval of the Fortescue Group that is prospective for gold in conglomerate. Mining Method(s) n/a. Production n/a. Water .n/a Native Title / Heritage . Environmental . Transport / Infrastructure Yarrie is serviced by bitumen and gravel roads, a natural gas pipeline between Pt Hedland and the Telfer copper-gold mine and a BHP-owned rail connection between Yarrie mining area and Port Hedland. Exploration There is also the potential for gold and base-metals associated with the strongly deformed, mixed mafic to ultramafic volcanic rocks that have interbedded metasediments in the Pilbara basement. The eastern margin of CZR’s tenure, indicates active airborne magnetic response and coincides with historical high-grade drill intercepts at the Cabbage Tree prospect. Magnetic survey results indicate that within CZR’s tenements are about 28 km of strike extent of the prospective Nimingarra Iron Formation.

Source: CZR Mar21Qtr The higher grade iron ore intercepts tend to occur in the lower, basal, section of the Nimingarra Iron Formation. Offtake Agreements n/a. Capital Expenditure n/a.

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CZR Work Schedules

Work modules for 2021-2022: o Robe Mesa – Tenure conversion, native title, heritage clearance, environmental studies flora, fauna, hydrology, hydrogeology, RC drilling (extensional and infill), assays, JORC resource-reserve update; mine planning, site engineering, haulage and port studies, financial modelling, environmental and mining approvals. o Yarrie – Heritage clearance, RC-drilling, assays, target generation. o Ashburton – Heritage clearance, infill and extensional RC, assays, Davis-tube. o Croydon – Native title, heritage clearance, RC, (infill, extensional, new targets), assays, geophysics, target generation. o Buddadoo – Heritage clearance, RC, assays, target generation Source: CZR presentation 20210413

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Appendix - Kilburn Valuation of non-Resource mineral properties Valuation methods for Resource projects is readily calculated for projects that are in production or have completed Definitive Feasibility Studies, Pre-Feasibility Studies or scoping studies, as these are usually accompanied by details of Resources +/- Reserves, production, capital expenditure, operating costs and assumptions for commodity prices and exchange rates. For these discounted cashflows, enterprise values per unit of commodity, or of production, are readily used to value and to compare mineral projects and companies. Value of a mineral property depends basically upon metal prices, recoverable grades, mining and metallurgical practices, commodity supply and demand, and political-economic conditions, all of which vary with time. Therefore, any valuation is valid for only that point in time when it is made. Mineral deposits can decrease as well as increase in technical value with time. Five fields of expertise influence the value of a mineral property: 1. Geological engineering 2. Commodity markets 3. Financial markets 4. Stock markets 5. Mineral property markets. Valuation of mineral projects or properties that do not contain exploitable Reserves nor Resources, is often a subjective process greatly influenced by the experience and qualifications of the person doing the valuation(s). Kilburn: In August 1990, Lionel C. Kilburn published a peer-reviewed paper “Valuation of mineral properties which do not contain exploitable Reserves” in the CIM Bulletin (vol 83, No,940 pp 90-93). This valuation technique is becoming widely used to determine the value of a project that is at an early exploration stage and without any Mineral Resources or Ore Reserve estimates. This method is widely also termed the geoscientific method where a series of factors within a project are assessed for their potential. While this technique is somewhat subjective and open to interpretation it is a method that when applied correctly by a suitably experienced specialist enables an accurate estimate of the value of the project. There are five critical aspects that need to be considered when using a Kilburn or Geoscientific valuation, these are the base acquisition cost, which put simply is the cost to acquire and continue to retain the tenements being valued (the required commitments). The other aspects are: the proximity to both adjacent to and along strike of a major deposit (Off Property Factors); the occurrence of a mineral system on the tenement (On Property Factors); the effort and success of previous exploration within the tenement (Anomaly Factors); and the geological prospectivity of the geological terrain covered by the mineral claims or tenements (Geological Factors). The method Kilburn proposed is based on the four main characteristics which most engineers and geologists use (consciously or subconsciously) when valuing a mineral property. This method allows the user to assess the importance of each characteristic and quantify each major characteristic, and sub-category. The four main mineral property characteristics are: • Location: with respect to any off-property mineral occurrence of value, or anyh favourable geological, geophysical and or geochemical pattern; • Grade: and amount, of mineralisation known to exist on the property under evaluation; • Geophysical and or geochemical (Anomaly) targets: present on the property under valuation, which may be considered favourable for the occurrence of exploitable mineralisation, based on previous experience or comparison with known mineable deposits; • Geological patterns: present on the property under valuation, which may be considered favourable for the occurrence of exploitable mineralisation, based on previous experience or comparison with known mineable deposits.

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These four major characteristics may be subdivided further into 19 subcategories as follows: Location of Property Under Valuation with Respect to Known Off-Property Mineral Occurrence(s) The off-property mineral occurrence(s) may contain: 1. interesting* but sub-ore grade material, that has been measured in two horizontal dimensions; 2. ore grade** material , that has been measured in two horizontal dimensions; 3. an interesting but sub-ore grade mineralized zone, that has been measured in three dimensions; 4. an ore grade mineralized zone, that has been measured in three dimensions, (not yet shown to be economically exploitable); 5. a mine - past or present producer; 6. a ‘major’ mine - past or present producer. The distinction between a mine and a ‘major’ mine is made here, only to recognize the "giants" of the industry such as Sullivan, Horne, Kidd Creek, Flin Flon, Hollinger, and Hemlo. Experience has shown that greater value is attributed to their proximity, than to that of lesser deposits. Location of Property Under Valuation with Respect to Known Off-property Geological, Location of Property Under Valuation with Respect to Known Off- property Mineral Occurrence(s) These targets are similar to those indicative of known exploited mineral deposits of which: one such target exists or two such targets based on different 7. methods correlate with one another; 8. three or more such targets correlate with one another. Grade of Mineralization on the Property Under Valuation Such mineralization is: 9. interesting but sub-ore grade material, which has been measured in two horizontal dimensions; 10. ore grade mineralization, which has been measured in two horizontal dimensions, at a size which is economically interesting; 11. I I . an interesting but sub-ore grade zone, which has been measured in three dimensions; 12. an ore grade mineralized zone, which has been measured in three dimensions, at a size which is economically interesting (not yet shown to be economically exploitable); 13. a mine - past producer, with ore grade mineralization which has been measured in three dimensions, at a size which is economically interesting (not yet shown to be economically exploitable); 14. a major mine - past producer, with ore grade mineralization which has been measured in three dimensions, at a size which is economically interesting (not yet shown to be economically exploitable). Geophysical and/or Geochemical Targets on the Property Under Valuation These targets are similar to those indicative of known exploited mineral deposits, and of which there is/are: 15. one such geophysical/geochemical target; 16. 2 to 3 such geophysical/geochemical targets which correlate with each other; 17. 4 or more such geophysical/geochemical targets which correlate with each other. Geological Patterns *** on the Property Under Valuation These patterns are recognisable compared to those associated with known exploited mineral deposits: 18. one or two such patterns; 19. three or more such patterns.

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Notes: * “interesting'' is used in this text to describe sub-ore grades which are at least one half of those exploitable at the time of valuation, based on quantities and dimensions reasonably expected to yield an economically exploit able deposit. ** "Ore grade” material is not necessarily " ore". Here it is a descriptive term which indicates the amount of a commodity required in a body of rock, which has size and dimensions reasonably expected from available measurements. *** “Geological Pattern” - the distribution of certain rock types; their size, shape and contacts; their alteration; their structural features such as folds and faults; without limiting the number of geological features which frequently have been recognised to be associated closely with certain mineral deposits. "Patterns" has been chosen as a general term, so as not to limit the possibilities. Certain patterns are accepted as better indicators of mineralisation than others, at different times in history. Prioritization of Characteristics The 19 sub-categories must be assigned a relative importance with respect to each of the others. For example, the following prioritization is recommended here: 14> 13> 12>6 = 11 >5 > 17>4 = 10= 16= 19>3> 2=9=15=18>1=8 >7 The relative importance which is attributed to each subcategory will be a function of personal experience, knowledge and preference. Some people may prefer to change these priorities, for example to reverse subcategories No. II and No.5 or No. 17 and No.4. However, each geologist and engineer must set down his/her own set of priorities, which will be assigned value factors later.

Geo-Scientific Rating Criteria Off-Property Factor Location w.r.t. known Off-Property mineral occurrences … On-Property Factor Grade of mineralisation On-Property under valuation Anomaly Factor Geophysical, geochemical, targets under valuation: targets similar to those indicative of known exploited mineral deposits. Geological Factor Geological patterns on the property under valuation. Patterns are recognisable compared to associations with known exploited mineral deposits.

Rating Off-Property Factor On-Property Factor Anomaly Factor Geological Factor

0.1 Generally unfavrouable geological setting 0.5 Extensive prior Poor Geological exploration with poor Setting results 0.9 Poor Results tok date Generally unfavourable geological setting, under cover 1.0 No known No known No Targets defined Generally favourable mineralisation in mineralisation within geological setting district property 1.5 Mineralisation Mineralisation identified Targets identified, intial Generally favourable identified indications positive geological setting 2.0 Resource Targets Exploration Targets Targets identified, intial Favourable geological Identified Identified indications positive setting 2.5 Resource Targets Exploration Targets Significant intersections Favourable geological Identified Identified - not correlated on setting section 3.0 Along Strike or Mine or abundant Significant intersections Mineralised zones adjacent to known workings with - not correlated on exposed in mineralisation significant previous section prospective host production rocks 3.5 Along Strike or Mine or abundant Several significant ore- Mineralised zones adjacent to known workings with grade intersections, that exposed in mineralisation significant previous can be corelated prospective host production rocks 4.0 Along Strike from a Major Mine with Several significant ore-grade intersections, that Major Mine(s) significant historical can be corelated production 5.0 Along Strike from a Major Mine with Several significant ore-grade intersections, that world class mine significant historical can be corelated production Sources: Lionel C Kilburn August 1990 ,CIM Bulletin Vol 83, No 940 & VRM – Value Resource Management Independent Technical Report Aug 1990

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Assignment of Value Factors Once the relative importance (prioritisation) of each subcategory has been established , then one must determine value. Kilburn’s SubCategories and Weights. Sub- category weight weight Off Property On Property from to Location w.r.t. known Off-Property mineral occurrences … 'Interesting but 'sub-ore' grade material, measured in 2x 1 1.5 1.5 horizontal dimensions 2 2.0 2.0 'Ore' grade material, measured in 2x horizontal dimensions 'Interesting but 'sub-ore' grade material, measured in 3x 3 2.5 2.5 dimensions 'Ore' grade material, measured in 3x dimenions (not yet 4 3.0 3.0 demonstrated economic ) 5 4.0 4.0 A mine, past or present producer 6 5.0 5.0 A 'major' (giant) mine, past or present producer Grade of mineralisation on the Property under valuation with respect to known Off-Property geological, geophysical and / or geochemical Targets One or two targets ( based on different methods) correlate with 7 1.3 1.3 each other. Three or more targets (based on different methods) correlate 8 1.5 1.5 with each other. Grade of mineralisation On-Property under valuation 'Interesting but 'sub-ore' grade material, measured in 2x 9 2.0 2.0 horizontal dimensions 'Ore' grade material, measured in 2x horizontal dimensions, 10 3.0 3.0 size interesting. 'interesting' but 'sub-ore' grade material, measured in 3x 11 5.0 5.0 dimensions Ore grade material, measured in 3x dimensions. Not yet 12 6.0 8.0 shown to be economic A mine, past producer, with ore grade material measured in 13 7.0 8.0 3xD dimensions, size interesting, not yet shown economic A Major mine, past producer, with ore grade material 14 9.0 10.0 measured in 3x dimensions, size interesting, not yet shown to be economic Geophysical, geochemical, targets under valuation: targets similar to those indicative of known exploited mineral deposits. 15 2.0 2.0 1x geophys/geochem target 16 3.0 3.0 2-3 x geophys/geochem targets,which correlate to each other 4 or more x geophys/geochem targets,which correlate to each 17 3.5 3.5 other Geological patterns on the property under valuation. Patterns are recogniseable compared to assoc with known exploited mineral deposits. 18 2.0 2.0 1x-2x such geological patterns 19 3.0 3.0 3x or more such geological patterns Source: Lionel C Kilburn August 1990 ,CIM Bulletin Vol 83, No 940

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Geo-Scientific Valuations of CZR’s Non-Resource projects. Below Matau has set out the estimation criteria for evaluating CZR’s non-resource bearing Application of the Kilburn projects. evaluation methods provides The subcategories are those enumerated in the table above. reasoned and reasonable values The base costs were derived in an evaluation report done for CZR in July 2020, and relate attributable to exploration to the acquisition and maintenance costs (commitments expenditure) for each project. properties that do not contain Kilburn indicated that the method can be applied to each separate tenement, though in defined Resources. this evaluation Matau has applied it to each project. Kilburn Method Maximum Value Calculation per project Sub-Cat # Weights $000 Croydon Base Cost 297.0 CZR share 70% 207.9 location 4 3.0 grade 10 3.0 geophys or geochem 16 2.5 geol patterns 18 2.5 subtotal weights 56.3 Max value for project 11,694.4 Market prem(disc) -5.0% -584.7 Location prem(disc) 0.0% 0.0 Croydon Valuation 11,109.7

Sub-Cat # Weights $000 Yarrie Base Cost 297.5 CZR share 70% 208.3 location 3 2.5 grade 10 3.0 geophys or geochem 16 2.0 geol patterns 18 2.5 subtotal weights 37.5 Max value for project 7,809.4 Market prem(disc) -8.0% -624.8 Location prem(disc) 0.0% 0.0 Yarrie Valuation 7,184.6

Sub-Cat # Weights $000 Buddadoo Base Cost 185.0 CZR share 85% 157.3 location 3.5 4.0 grade 2.5 2.0 geophys or geochem 3.5 2.5 geol patterns 3 2.5 subtotal weights 50.0 Max value for project 7,862.5 Market prem(disc) -8.0% -629.0 Location prem(disc) 0.0% 0.0 Buddadoo Valuation 7,233.5

Sub-Cat # Weights $000 Shepherds Well Base Cost 50.0 CZR share 70% 35.0 location 1.5 2.0 grade 2.5 3.0 geophys or geochem 2.0 2.0 geol patterns 2.0 2.0 subtotal weights 24.0 Max value for project 840.0 Market prem(disc) -5.0% -42.0 Location prem(disc) 0.0% 0.0 Shepherds Well Valuation 798.0

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Disclaimers & Disclosures

Licence. Andrew Pedler: Authorised Representative No. 450326 of Matau Advisory Pty Ltd: ABN 90 165 923 437 & AFSL No. 225962 and AFSL Corporate Authorised Representative No 240877 of Centec Securities Pty Ltd (ACN 007 281 745)

Disclosure of Interest. Matau Advisory Pty Ltd advises that at the date of this report it and its associates may have relevant interests in securities in companies described in this report. It also advises that Matau Advisory Pty Ltd and its associates have received and may receive commissions or fees from companies described in this report in relation to advice or dealings in securities. Some or all of Matau Advisory Pty Ltd’s authorised representatives may be remunerated wholly or partly by way of commission.

Disclaimer. Whilst Matau Advisory Pty Ltd believes the information contained in this communication is based on reliable information, no warranty is given as to its accuracy and persons relying on this information do so at their own risk. To the extent permitted by law Matau Advisory Pty Ltd disclaims all liability to any person relying on the information contained in this communication in respect of any loss or damage (including consequential loss or damage) however caused, which may be suffered or arise directly or indirectly in respect of such information. Any projections contained in this communication are estimates only. Such projections are subject to market influences and contingent upon matters outside the control of Matau Advisory Pty Ltd and therefore may not be realised in the future.

The advice contained in this document is general advice. It has been prepared without taking account of any person’s objectives, financial situation or needs and because of that, any person should, before acting on the advice, consider the appropriateness of the advice, having regard to the person’s objectives, financial situation and needs. Before making an investment decision an individual should assess whether it meets their own needs and consult a financial advisor, and if the advice relates to the acquisition, or possible acquisition, of a particular financial product, the individual should obtain a Product Disclosure Statement relating to the product and consider the Statement before making any decision about whether to acquire the product. This document does not constitute an offer or invitation to purchase any securities or financial products and should not be relied upon in connection with any contract or commitment whatsoever. This communication is not to be disclosed in whole or part or used by any other party without Matau Advisory Pty Ltd’s prior written consent.

Contact Details Andrew D Pedler Director Matau Advisory Pty Ltd Mo: +61 412 122 778 Em: [email protected]

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