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M magnetic resources NL QUARTERLY REPORT for the Quarter Ended 31 March 2021 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 : - 216,171,377 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 : $ 6.1m Directors : George Sakalidis Managing Director Eric Lim • • HIGHLIGHTS The largest drill programmes to date have been completed in the March Quarter with 116 RC holes for 11,685m and 4 Diamond holes for 431m at HN9 and 116 RC holes for 9,341m at Lady Julie with two rigs being used . All assay results are pending . The aim is to extend the known mineralised zones and to ultimately 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 . Within the 3km long HN9 mineralised shear zone there are many 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 . 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 . Shallow seismic results show eight persistent thrusts that come close to surface ( 1-4 , 6-8 and 10 ) and are at least 6km in length and extend the HN9 and Lady Julie mineralised areas and structures northwards into the HN5 and HN6 areas . A number of these thrusts are already mineralised , and others are being drill tested in some cases for the first time . An extensive deeper drill programme of 22 holes for 3280m ( averaging 150m ) is designed to test these large prospective thrust targets and has already started . • Shallow seismic results show Thrust 5 as a linking thrust that correlates with the HN9 3km long mineralisation that is now interpreted to extend onto the NS seismic section at least 1.5km to the NE . This thrust has a surface area of 4 sq . km and is a high priority target and deeper drilling is planned here . The HN9 thickened mineralised zone is also interpreted to extend towards the NS seismic section and is shown up by the intersection of flat dipping thrust 5 and shallow south dipping thrust 4 and is an area of seismic complexity . This zone and its 2km southern shallow south dipping extension are a high priority and deep drilling is planned here . Another similar prospective thickened target is present at the intersection of thrust 5 and thrust 3 . Non - Executive Chairman Julien Sanderson Hiang Sian Chan Non - Executive Directors Company Secretary Ben Donovan 1