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M magnetic resources NL QUARTERLY REPORT for the Quarter Ended 31 December 2020 Magnetic Resources NL ABN 34 121 370 232 ASX Codes : MAU and MAUCA Level 1 44A Kings Park Road , West Perth , WA 6005 T +61 8 9226 1777 F +61 8 9321 6571 PO Box 1388 West Perth WA 6872 Issued Capital : Shares Quoted : - 216,071,377 ordinary shares . 20,418,862 partly paid shares ( $ 0.20 unpaid ) . Options - Unquoted Option - 3,000,000 options exercisable at $ 0.377 on or by 31 December 2021 - 2,600,000 options exercisable at $ 0.218 on or by 31 December 2021 - 4,900,000 options exercisable at $ 1.515 on or by 31 December 2024 Cash : $ 8m Directors : George Sakalidis Managing Director Eric Lim Non - Executive Chairman Julien Sanderson Hiang Sian Chan Non - Executive Directors Company Secretary Ben Donovan • HIGHLIGHTS Major drill programmes have accelerated in the New Year at HN9 and Lady Julie with two rigs being used . These programmes are proceeding with 108 RC holes for 12,519m at HN9 and 97 RC holes for 7,595m at Lady Julie . The aim is to define Indicated JORC Resources at both HN9 and Lady Julie which collectively have potential for a mining centre . The expanded zones that will be tested cover 4km at HN9 and 3km at Lady Julie . • A new thickened Southern Zone has an intersection of 90m at 0.37g / t Au from 80m which includes 8m at 2.5g / t from 80m in MHNRC780 was found in the southern part of HN9 . This intersection is only 60m north of an intersection of 7m at 3.04g / t Au from 108m in MHNRC718 . The areal extent of the mineralisation is growing in the southern direction where three NNE parallel zones are present which remain open to the SSW and at depth . • • • The Central Thickened Zone has some very thick intersections including 104m at 0.82g / t Au from 8m in MHNRC582 and 70m at 0.49g / t Au from 13m in MHNRC54 and is 600m north of the Southern Thickened Zone . Within the 3km long HN9 mineralised shear zone there are many new shallow intersections with a total of 564 intersections greater than 0.5g / t Au , which includes 240 greater than 1g / t Au , 89 greater than 2g / t Au , 44 greater than 3g / t Au and 32 greater than 4g / t Au . Very encouraging metallurgical results at HN9 with combined gravity and leach recoveries over HN9 averaging 88.5 % in the oxide zones , 91.2 % in the Transition zone and 93.4 % in the Fresh zone with no deleterious elements and having low cyanide and lime reagent consumptions . The Lady Julie tenements are well mineralised with 242 gold intercepts ( 1-19m ) greater than 0.5g / t , which includes 101 greater than 1g / t , 34 greater than 2g / t , 20 greater than 3 g / t and 13 greater than 4 g / t . A shallow 2D seismic survey and passive seismic survey was completed in early January and results are expected by early February centred on HN9 and Lady Julie and northwards to HN3 and HN5 covering 30sq.km. The aim is to delineate further prospective thickened shallow dipping gold - rich multiple lodes below areas that are already strongly mineralised looking for repetitions and continuation both at depth and down dip and any other zones , structures and intrusions that have not been previously discovered . 1