Page 1

Flinders MINES 28 January 2021 ASX ANNOUNCEMENT Quarterly Report For the period ended 31 December 2020 பட HIGHLIGHTS • Flinders Mines Limited and BBI Group Pty Ltd ( BBIG ) continue to advance the Pilbara Iron Ore Project pursuant to the farm - in incorporated joint venture Non - binding indicative offer ( NBIO ) received from BBIG in relation to a potential ownership restructuring opportunity of the infrastructure associated with the PIOP integrated project Consolidation of capital completed on a 25 : 1 basis Pilbara Iron Ore Project ( PIOP ) During the quarter ended 31 December 2020 , BBIH Pty Limited ( BBIH ) , a wholly owned subsidiary of BBI Group Pty Ltd , as Manager of Flinders ' flagship Pilbara Iron Ore Project ( PIOP ) , continued to progress the development of the PIOP integrated project pursuant to the farm - in incorporated joint venture that was completed with BBIG in the September 2020 quarter . During the December 2020 quarter , BBIH carried out a range of activities associated with the advancement of the PIOP Feasibility Study including : • Developing further understanding of the PIOP ore body ( resource definition ) . • Maturing the development of a preferred mine plan . • • • • Laboratory based metallurgical test work to better determine ore product design specification and planning associated with a larger field based , next phase metallurgical test work programme . Continued development on determining the optimum location and layout of the ore processing facility ( OPF ) at the PIOP . Updating safety management framework , plans and procedures in support of re - commencing field activities in early 2021 to incorporate requirements of the pending Work Health and Safety Bill 2019 ( WHS Bill ) . Completion of the Anvil rehabilitation programme and planning for further rehabilitation across Blacksmith . Resource Definition Anvil rehabilitation site works were completed during the quarter without incident . Following successful completion of the Blacksmith aerial rehabilitation audit , findings and proposed recommendations have now been prepared for moving forward . These will be discussed and agreed with DMIRS in January 2021 . BBI formally transitioned statutory responsibility as the PIOP Exploration Manager ( EM ) role from CSA ( Mark Pudovskis ) directly to BBI ( Matt Herbert ) on 4 December 2020 . BBIH continued to review and update the PIOP geological database ( Geobank ) as new data became available or identified to be integrated and continued to reassess and improve geological interpretations and base line geological knowledge . Mine Planning BBIH commenced various work programs that will contribute to defining the ultimate PIOP mine plan . BBIH worked with various WA based specialist consultants on : • Mine planning , scheduling and haulage optimisation , stockpile & blending management , and commenced a mining cost review . Tailings storage facility ( TSF ) study . Water management and diversion study . • • • An update to the exploration environmental management plan .