independent geological report

INDEPENDENT GEOLOGICAL REPORT

Allup Silica Deposit

MAJA TOPPING

BSc (Hons), MAusIMM, MAIG

Statement of Independence

Maja Topping is independent of all parties involved with the project activities

described in this report. Maja Topping will receive a professional fee based

on standard rates. The payment of these fees is not contingent upon the

success or otherwise of the proposed listing or any associated fundraising.

There are no interests that could be reasonably regarded as being capable

of affecting the independence of Maja Topping.

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Maja Topping BSc (Hons), MAusIMM, MAIG

Independent Geological Report for Allup Sand Pty Ltd (10 August 2020)

Executive Summary

This report has been prepared for inclusion in an ASX prospectus to be prepared with the proposed admission of Allup Sand Pty Ltd to the Australian Securities Exchange (“ASX”).

Allup Sand Pty Ltd has pegged three tenements for a total of 79.27 km2 in the south-west region of Western Australia for their potential to host large, mineable areas of quartz silica sand with grades of over 99%. The tenements are located in Quinninup near the Southwest Highway and Unicup near the Muir Highway about 150km trucking distance to Albany Port.

The project is at the exploration stage and has yielded high levels of silica with low level impurities from the surface sampling conducted so far. Historical drilling by BHP shows up to 36m of sand at Unicup and 27m at Quinninup indicating a sufficient thickness of silica sand to warrant further exploration in the areas. More drilling, mapping and sampling is required to produce a JORC compliant resource.

Contents

Statement of Independence ................................................................................................................. 0 Executive Summary .............................................................................................................................. i Introduction .......................................................................................................................................... ii Data Sources and Verification .............................................................................................................. ii Property Location and Description ....................................................................................................... ii

Location ........................................................................................................................................... ii

Tenure .............................................................................................................................................. ii

E 70/5447 ..................................................................................................................................... ii

E 70/5455 ..................................................................................................................................... ii

E 70/5527 .................................................................................................................................... iii

Native Title ...................................................................................................................................... iii

Accessibility, Climate and Flora/Fauna ............................................................................................... iii Geological Setting ............................................................................................................................... iv

Regional Geology ............................................................................................................................ iv

Local Geology ................................................................................................................................ vii

Unicup ........................................................................................................................................ vii

Quinninup .................................................................................................................................. viii

Exploration History .............................................................................................................................. ix Unicup ............................................................................................................................................. ix

Quinninup ........................................................................................................................................ ix

Current work ........................................................................................................................................ x Surface sampling .............................................................................................................................. x

Geophysics .................................................................................................................................... xii

Mineral Potential ............................................................................................................................. xii

Proposed Exploration Program ......................................................................................................... xiii Mineral Processing and Metallurgical Test Work ............................................................................... xiii Project Risks ..................................................................................................................................... xiii Recommendations ............................................................................................................................ xiii Bibliography ...................................................................................................................................... xiii

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Introduction Allup Sand Pty Ltd engaged Maja Topping to write an independent geological report for use in a prospectus to support an initial public offering (IPO) to enable listing on the Australian Securities Exchange (ASX). The funds will be used for the purpose of exploration and evaluation of the Project areas.

This report details geology and mineral potential for silica on the project areas in the South West Region of Western Australia. The project is at the exploration stage and there has been limited surface sampling and historical drilling Sufficient exploration work has taken place to justify further exploration to delineate a silica sand resource. Allup surmise future exploration work of aircore and RAB drilling, assays for silica and a feasibility study with an estimated budget of at least several hundred thousand dollars. No further details have been supplied.

Data Sources and Verification This review was conducted on data and documentation supplied by Allup Sand and is current as at 10 August 2020. Some reports were obtained from the Department of Mines and Energy. The data is assumed to be valid.

Property Location and Description

Location

The project is located in the Lake Muir region of south-west Western Australia, 150km north-west of the town of Albany. Tenement E 70/5455 is located north west of Quinninup and E 70/5447 and E 70/5527 are north of the Lake Muir nature reserve (Figure 1).

Figure 1. Location of the Allup Sands Project area. Map supplied by Allup Sand PTY LTD

Tenure

E 70/5447

Tenement E 70/5447 was applied for by Sellawine.com Pty Ltd on 07/05/2020. Status: applied for pending. Sellawine subsequently changed name to Allup Sand Pty Ltd.

E 70/5455

Tenement E 70/5455 was applied for by Sellawine.com Pty Ltd on 15/05/2020. Status: applied for pending. Sellawine subsequently changed name to Allup Sand Pty Ltd.

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E 70/5527

Tenement E 70/5527 was applied for by Allup Sand Pty Ltd on 09/072020. Status: applied for pending.

Table 1. Tenement Areas

Tenement Area (km2)

E 70/5455 11.32

E 70/5447 22.65

E 70/5527 45.3

Native Title

The project area is covered by the Wagyl Kaip and Southern Noongar Indigenous Land Use Agreement. A heritage agreement may need to be made with the South West Aboriginal Land & Sea Council Aboriginal Corporation, ICN 3832 for and on behalf of the Wagyl Kaip & Southern Noongar Agreement Group.

Accessibility, Climate and Flora/Fauna

Access to the Lake Muir-Unicup area is via Muir Highway. The climate is Mediterranean with cool, wet winters and warm to hot, dry summers. Soil, and hence vegetation, types are strongly controlled by the geology and climate with podzolic soils developing on acidic gneiss and red earths on basic gneiss. Vegetation comprises medium forest and woodlands of jarrah (Eucalyptus marginata), marri (Corymbia calophylla), yate (E. occidentalis), E. deciphens and wandoo (E. wandoo) in various combinations; low woodlands and closed forests of paperbarks (Melaleuca spp.), scrublands, teatree thickets (Melaleuca spp. And Kunzea spp.), sedgelands, reed swamps and fresh water and salt lakes (Smith, 2003).

Figure 2. Satellite image showing Unicup tenements.

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Figure 3. Satellite image over tenement E 70/5455

Access to the Quinninup area is via South-Western Hwy and Wheatley Coast Road. The tenement is northwest of the township of Quinninup. The area is located on Dordagup State Forest reserve but detailed information on vegetation is not available. Quinninup was a timber milling town from 1946 to 1982 so it is likely that most of the vegetation is not old growth Jarrah and Karri forest, but mainly regrowth.

Geological Setting

Regional Geology

The areas of interest are located on elevated sand plain and residual laterite terrain of the Biranup Zone in the Proterozoic Albany-Fraser Orogen of south-west Western Australia. It is underlain by quartzo-feldspathic gneisses, mainly derived from granitoid rocks of the Biranup and Nornalup Complexes

The high grade, pure quartz silica sands are part of the mid to late Eocene Werillup Formation which consists of alluvial river sands and gravel, laid on low grade coal and lignite laid down in coastal swamps. The host stratigraphy at Unicup and Quinninup are up to 64m in thickness and crop out at surface.

The Eocene coastal plain and continental margin sedimentary rocks (like the Eucla Basin stratigraphy) lie directly on a truncated profile of saprolitic Albany-Fraser rocks of Proterozoic age which in the Unicup area consist of the Biranup Complex: meta-sedimentary quart-feldspar schist, garnet-amphibole schist, graphitic schist; and gneissic rocks (mainly felsic orthogneiss) cut by late mafic dykes, and late stage pegmatites. Granitic to granodioritic late stage intrusives occur especially in the southern parts of the Biranup Complex. Large layered gabbroic massifs occur at Bridgetown.

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The main economic mineral deposit of any significance in the region is the world class Greenbushes tin-tantalum-lithium pegmatite complex near Bridgetown to the north of Quinninup. Yilgarn gravity data shows a linear gravity anomaly that extends from close to the southern coast, past Greenbushes towards Bunbury. The significance of this feature is not known.

Figure 4. Regional Geology on Yilgarn gravity data. A NW-SE trending linear feature (red dashed line) extends from the southern coast past the Allup tenements in the east, northwest and past the Greenbushes Pegmatite.

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Figure 5. Regional geology of the south west of Western Australia (from the 1:2,500,000 geological map of Western Australia, 2015) showing the location of the Quinninup and Unicup Tenements.

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Local Geology

Unicup Figure 6. Local Geology of the Unicup area showing historical drillholes and Allup grab samples (geology from 1:1,000,000 Surface Geology of Western Australia, December 2008)

E 70/5447 and E 70/5527 are located on poorly drained flats with lakes and low dune and undulating low hills and rises. The sediments of the area are part of the Werillup formation consisting of either carbonaceous clays and silts interbedded with fine- to coarse grained quartz sands or thick beds of carbonaceous clay through to carbonaceous sandy silts. The distribution of the sediments is poorly understood due to extensive cover by ferricrete, alluvium and colluvium (Smith, 2003).

There is a sharp bedding contact between quartz sands and underlying clays or clayey silts. Quartz sands are poorly- to moderately sorted, fine to coarse grained, with grains being angular to subangular.

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Quinninup

Figure 7. Local Geology of the Quinninup area showing historical drillholes (geology from 1:1,000,000 Surface Geology of Western Australia, December 2008)

A drill traverse by BHP on the Quinninup tenement in 2000 showed a thick layer of transported sand up to 27m on a clay rich saprolite profile on basement rocks of medium grained feldspar-quartz-biotite gneiss.

This is not reflected in the 1:1,000,000 surface geology map of Western Australia as the mapping is on a regional scale.

The satellite image shows sandy tracks on much of the tenement, further mapping is required.

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Exploration History

Unicup

BHP conducted exploration for coal in the Lake Muir area starting with two shallow scout holes in 1981. They intersected 4.25m of lignite in one hole and applied for three blocks of coal mining leases between April and July 1981.

A drill program of six shallow holes (LM1-6) was drilled to test for coal potential in the area. They are summarised in the table below.

Table 2. BHP aircore drilling at Unicup.

Hole_ID Hole_Type Easting Northing EOH

Depth Dip Azi Sand Interval

Basement Depth

Basement Lithology

LM 1 Aircore 475150 6196199 62.8 -90 0 0-16m 62 Granite

LM 2 Aircore 473017 6193733 49.3 -90 0 0-36m 49.5 Basalt

LM 3 Aircore 474606 6189544 24.5 -90 0 - 24.4 Granite

LM 4 Aircore 470526 6188670 39 -90 0 0-16m 37 Granite

LM 5 Aircore 470941 6186546 37 -90 0 0-4m 36.7 Granite

LM 6 Aircore 468277 6189617 48 -90 0 0-11 48 Schist

LM 7 Aircore 476686 6194909 74 -90 0 - 74 Granite

LM 8 Aircore 470016 6196554 54 -90 0 0-18m 54 Granite

Quinninup

BHPM carried out exploration on eight tenements in the Manjimup and Pemberton areas between 1999 and 2000. Over 1000 lag samples were collected within weakly magnetic domains identified in the area. A detailed aeromagnetic survey was flown to identify magnetic targets. An aircore program was drilled in March 2000 to test significant lag Pb anomalies and magnetic bodies identified from the aeromagnetic survey.

The holes that were drilled on the Quinninup tenement E 70/5455 are summarised in the table below.

Table 3. BHPM aircore drilling at Quinninup.

Hole_ID Hole_Type Easting Northing EOH Depth Dip Azi Sand Interval

MJAC108 Aircore 433177 6191224 53 -90 0 0-6m

MJAC109 Aircore 432960 6190997 28 -90 0 none

MJAC110 Aircore 432788 6190787 37 -90 0 0-27m

MJAC111 Aircore 432851 6190573 40 -90 0 0-27m

MJAC112 Aircore 432902 6190366 32 -90 0 0-10m

MJAC113 Aircore 432909 6190181 26 -90 0 0-10m

MJAC114 Aircore 432901 6189983 28 -90 0 0-4m

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Figure 8. Section showing BHPM drillholes at Quinninup.

Current work

Surface sampling

Allup Sand Pty Ltd have collected 16 grab samples and had them assayed for silica and other content by Intertek Genalysis. The results, shown below, demonstrate the high purity of the quartz silica sand. 4 BLEG samples were collected and assayed for gold.

Table 4. Grab Sample assay results from Unicup and Quinninup.

Sample ID Easting Northing Date taken SiO2 % TiO2 ppm Al2O3 ppm Fe2O3 ppm

U001 470173 6191319 19/05/2020 99 2351 567 570

U002 470273 6191294 19/05/2020 98.8 2174 521 663

U003 470173 6191319 19/05/2020 99.2 1629 262 496

U004 470531 6191230 19/05/2020 99 1864 295 465

U006 470375 6194470 19/05/2020 97.4 1890 663 592

U005 471248 6191041 19/05/2020 99 1411 319 297

U007 472625 6195860 3/06/2020 99.4 3097 271 470

U008 473112 6195860 3/06/2020 99.2 3786 313 984

U009 473216 6193741 3/06/2020 98.2 5113 2187 1376

U010 473987 6193728 3/06/2020 98.5 3320 3658 1799

U011 471862 6192340 1/07/2020 99 2738 1353 2293

U012 471308 6192287 1/07/2020 99.3 2939 332 980

U013 470994 6192278 1/07/2020 99.4 2047 232 1650

U014 470566 6192272 1/07/2020 99.4 1930 185 516

U015 473826 6189834 1/07/2020 97.9 4714 8738 1136

Q001 432851 6190573 19/05/2020 99 1337 218 176

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Figure 9. Silica results from Unicup grab samples (map provided by Allup Sand Pty Ltd)

Table 5. BLEG Sample Results

Sample ID Easting

Northing Date taken Au ppb

B001A 472532 6194158 3/06/2020 2.06

B001B 472532 6194158 3/06/2020 0.98

B002A 472280 6193860 3/06/2020 0.13

B002B 472280 6193860 3/06/2020 0.1

Figure 10. Location map showing BLEG samples taken at Unicup.

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Geophysics

Data processing of gridded gravity, magnetics and radiometric data from Geoscience Australia was completed by Vector Geoscience Pty Ltd for Allup Sand Pty Ltd in June 2020 over the Unicup area and regionally. This data can be used to map basement structures such as faults and fold axis trends and distinguish major rock types and identify areas of interest for mineral exploration.

Figure 11. Total Magnetic Intensity Reduced to Pole image from aeromagnetic data processing.

Mineral Potential

Based on the current known locations of surface sand at Unicup and Quinninup the following calculations have been made for the tonnage of silica sand by Allup Sand Pty Ltd. The minimum is for the known drilled area, the maximum is for the whole tenement. Sand thickness has been averaged from the thickness in the historical drillholes. A density of 1.7 has been assumed. These numbers will need to be refined with further drilling and land use assessment on the tenements.

Table 6. Mineral Potential calculated by Allup Sand Pty Ltd

Quinninup Before Beneficiation Processing

Exploration Target 34Mt 231Mt

Grade Lowest Highest

Silica (SiO2) % 97.4% 99.2%

Inclusions Maximum Minimum

Iron (Fe₂O₃) % (ppm) 0.07% (700) 0.015% (150)

Titanium (TiO₂) % (ppm) 0.24% (2400) 0.13% (1300)

Aluminium (Al₂O₃) % (ppm) 0.07% (700) 0.02% (200)

LOI % (moisture and volatiles) 2.2% 0.5%

Unicup Before Beneficiation Processing

Exploration Target 107Mt 153Mt

Grade Lowest Highest

Silica (SiO2) % 98.2% 99.5%

Inclusions Maximum Minimum

Iron (Fe₂O₃) % (ppm) 0.18% (1800) 0.018% (180)

Titanium (TiO₂) % (ppm) 0.51% (5100) 0.13% (1300)

Aluminium (Al₂O₃) % (ppm) 0.36% (3600) 0.022% (220)

LOI % (moisture and volatiles) 2.1% 0.2%

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Proposed Exploration Program

Drill program to produce an indicated/inferred silica sand resource.

Assay for silica and other elements (Al, Fe, Ti etc) to determine grades and any possible contaminants.

Metallurgical test work to produce +99.5% silica

Feasibility study

Mineral Processing and Metallurgical Test Work

The surface grab samples taken by Allup Sand Pty Ltd have been tested for silica and contaminants. Metallurgical test work is yet to be undertaken to indicate processing requirements for the sand.

Project Risks

Cost of trucking sand 200km to the port of Bunbury.

Large enough volume of sand.

Effects of mining sand on the water table.

Proximity to conservation areas.

Community approval

Recommendations

Map the extent of quartz sand at surface on all tenements.

Further surface sampling at Quinninup and Unicup tenement E 70/5527.

Aircore and/or RAB drilling on a regularly spaced grid to determine thickness and extent of the sand deposit and assay for silica and contaminants.

Bibliography

ABEYSINGHE, P.B., 2003, Silica Resources of Western Australia: Western Australia Geological Survey, Mineral Resources Bulletin 21, 228p.

Martin, DMcB, Hocking, RM, Riganti, A, and Tyler, IM 2015, 1:2 500 000 geological map of Western Australia, 2015: Geological Survey of Western Australia, http://www.dmp.wa.gov.au/geoview.

Stewart, A.J., Sweet, I.P., Needham, R.S., Raymond, O.L., Whitaker, A.J., Liu, S.F., Phillips, D., Retter, A.J., Connolly, D.P., Stewart, G., 2008, Surface geology of Australia 1:1,000,000 scale, Western Australia [Digital Dataset] Canberra: The Commonwealth of Australia, Geoscience Australia. http://www.ga.gov.au

Smith, M.G. 2010, Hydrogeology of the Lake Muir-Unicup Catchment, Western Australia: an ecologically important area experiencing hydrologic change. Department of Applied Geology, Curtin University.

Bunting, J.A & Sharples, C.E., 1982, Shallow drilling for coal in the Lake Muir Area, Western Australia (Surrender Report): Broken Hill Pty Co Ltd: Geological Survey of Western Australia, Statutory mineral exploration report, A36073, 22p.

White, M & Stephens, D., 2000, Exploration Licences E70/2009,2010,2014,2090,2111,2120,2121 and 2205 Manjimup Project Albany Fraser Program WA Combined report for Period ended 26 May 2000, Geological Survey of Western Australia, Statutory mineral exploration report A61066, 301pp.

FITZSIMONS, I. C. W., and BUCHAN, C., 2005, Geology of the western Albany–Fraser Orogen, Western Australia — a field guide: Western Australia Geological Survey, Record 2005/11, 32p. Stockley, J.L., 2020, Report on Field Visit to the Unicup Sand Area (unpublished) SMITH, RA 2003, Hydrogeology of the Muir–Unicup catchments, Western Australia, Water and Rivers Commission, Salinity and Land Use Impacts Series Report SLUI 22, 34p.

http://www.dmp.wa.gov.au/geoview

http://www.ga.gov.au/

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