15 July 2020 ASX Release

Empire Resources Limited ACN 092 471 513 ASX:ERL

www.resourcesempire.com.au info@resourcesempire.com.au

159 Stirling Highway Nedlands WA 6009

Tel: +61 (0)8 9386 4699 Fax: +61 (0)8 9386 9473

QUARTERLY REPORT FOR THE PERIOD ENDING 30 JUNE 2020

YUINMERY PROJECT

YT01 Prospect

• Final results received during the quarter from January and March drilling campaigns include:

o 44m @ 0.47% Cu & 0.07g/t Au from 88m (YRC20-14), including:

• 1m @ 1.00% Cu & 0.18g/t Au from 93m;

• 2m @ 1.05% Cu & 0.22g/t Au from 95m; and,

• 1m @ 1.40% Cu & 0.13g/t Au from 101m.

o 12m @ 1.02% Cu from 44m (YRC20-03), including:

• 1m @ 2.56% Cu from 44m; and,

• 3m @ 1.31% Cu from 48m.

• Results pending for June step out drilling targeting mineralisation under YRC20-14.

Smith Well Prospect

• Final results received during the quarter from January and March drilling campaigns includes:

o 12m @ 0.49% Cu, 0.28% Ni & 0.03% Co from 86m (YRC20-13), including:

• 4m @ 0.61% Cu, 0.32% Ni & 0.04% Co from 94m.

• Results received for May RC drilling includes:

o 16m @ 0.50% Cu, 0.25% Ni & 0.03% Co from 102m (YRC20-19), including:

• 1m @ 0.88% Cu, 0.32% Ni & 0.04% Co from 116m.

o 7m @ 0.45% Cu, 0.28% Ni & 0.04% Co from 123m (YRC20-20)

• Downhole electromagnetic (DHEM) surveys in May define highly conductive (up to 38,000S) copper mineralised pyrrhotitic shale horizon.

• Results pending for June extension drilling of the May and historical modelled DHEM plates.

CORPORATE

• $598k cash plus substantial investments and royalty income potential puts the Company in a strong financial position

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Empire Resources Limited (ASX:ERL) (‘the Company’ or ‘Empire’) is pleased to provide its quarterly activities report for the period ending 30 June 2020.

Empire Managing Director, Sean Richardson commented:

“The Company continues to deliver excellent exploration results for the Yuinmery Project with another two RC drill programs and a downhole geophysics survey completed.

“Drilling at Smith Well continues to reveal disseminated sulphide mineralisation at depth whilst drilling at the newly identified YT01 prospect demonstrates potential for new discoveries.

“The Company’s exploration activities continue to add value to its projects, whilst the Company’s investment interests continue to mature offering potential for significant, non-dilutive revenue into 2020.”

YUINMERY COPPER-GOLD PROJECT

Following the success of two reverse circulation (RC) drilling programs during the March 2020 quarter, the Company initiated and completed a further two RC programs and a Downhole Electromagnetic (DHEM) survey during the June 2020 quarter.

In April 2020 Empire received final assay results for the January and March 2020 RC drill programs.

In May 2020 Empire completed a RC drill program of three holes and one re-entry for 462m drilled at the Yuinmery Copper-Gold Project. The program tested the extent of copper-nickel mineralisation at Smith Well and followed up encouraging copper-gold results from the March RC drill program at YT01.

DHEM geophysical surveys were undertaken during May to test for off-hole sulphide mineralisation signatures at both Smith Well and YT01. Seven RC holes were surveyed by Southern Geoscience Consultants Niche Acquisition (SGC-NA) team with very strong EM responses of up to 38,000S received at Smith Well.

In June 2020 Empire completed seven RC drill holes at Yuinmery for 1,001m drilled. The June RC program tested the May 2020 and historical DHEM modelled conductors at Smith Well with four holes testing the North-East extension and two holes testing the South-East extension. One hole was drilled underneath YRC20-14 at the YT01 prospect to test for continuity of mineralisation at depth.

All samples for the June 2020 RC program have been submitted to the laboratory with results pending.

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YT01 Prospect

RC drilling at YT01 prospect in March intercepted copper oxide minerals above the base of oxidation. Trace and disseminated sulphides consisting of chalcopyrite, pyrrhotite and pyrite in holes YRC20-14, YRC20-15, YRC20-16 and YRC20-1711 were intercepted at the base of the oxidation interface.

Assay results from the January and March RC drilling programs were received during the June quarter. Encouraging results include:

• 44m @ 0.47% Cu & 0.07g/t Au from 88m (YRC20-14), including:

o 1m @ 1.00% Cu & 0.18g/t Au from 93m;

o 2m @ 1.05% Cu & 0.22g/t Au from 95m; and,

o 1m @ 1.40% Cu & 0.13g/t Au from 101m.

• 12m @ 1.02% Cu from 44m (YRC20-03), including:

o 1m @ 2.56% Cu from 44m; and,

o 3m @ 1.31% Cu from 48m.

• 3m @ 1.01% Cu from 57m and 1m @ 1.03% Cu from 79m (YRC20-02).

Hole YRC20-14 was extended by 24m during the May RC drilling program based on end of hole copper anomalism.

DHEM surveys were completed by SGC-NA at YT01 across three selected holes. No discrete basement conductors were observed in the DHEM data.

In June 2020, one RC hole was drilled under YRC20-14 to test for extensions of copper-gold mineralisation below the base of the oxidation. All samples have been submitted to the laboratory with results pending.

Figure 1 – YT01 Drillhole Locations Overlain on Airborne EM (VTEM) Mid-Time CH25 (1.641ms) Image

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Figure 2 – YT01 Prospect Cross Section 687,250mE

Smith Well Prospect

The Smith Well prospect is an historic copper-gold prospect with recently identified anomalous nickel in drilling. The prospect is interpreted to host two steeply dipping, parallel mineralised horizons. Copper intercepts of >1% Cu associated with elevated nickel (>0.2% Ni), low-level gold and cobalt values have been identified to occur in the upper horizon, while the second lower horizon is characterised by copper intercepts of >1% Cu associated with elevated gold >0.1g/t Au and low nickel values.

Drilling during 2020 has so far intercepted sulphides, including chalcopyrite, pyrrhotite and pyrite in varying concentrations.

Assay results from the March RC drilling program were received during the June quarter. These initial results demonstrated the potential of the prospect to host substantial copper mineralisation with selected results including:

• 12m @ 0.49% Cu, 0.28% Ni & 0.03% Co from 86m (YRC20-13), including:

o 4m @ 0.61% Cu, 0.32% Ni & 0.04% Co from 94m.

• 12m @ 0.38% Cu & 0.01% Ni from 60m (YRC20-12)

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Following the encouraging results from the initial RC drilling in March, three RC holes were drilled in May to test the extent and orientation of a strong DHEM anomaly previously modelled in 20081. The drilling was also designed to provide additional DHEM data beyond the limits of the 2008 modelled DHEM anomaly.

Hole YRC20-19 was designed to test the 2008 modelled DHEM geophysical plate. YRC20-19 intercepted 16m of disseminated to matrix sulphides from 102m, including 10m of matrix (>55%) sulphides consisting of pyrrhotite, pyrite and chalcopyrite from 107m. Assays from YRC20-19 returned 16m @ 0.50% Cu, 0.25% Ni & 0.03% Co from 102m including 1m @ 0.88% Cu, 0.32% Ni & 0.04% Co from 116m.

Hole YRC20-19 was planned to intercept the interpreted second Cu-Au horizon where it returned minor mineralisation of 7m @ 0.43%Cu & 0.11g/t Au from 157m.

Hole YRC20-20 which was designed to test the north-eastern extent of Smith’s mineralisation, intercepted 12m of disseminated to matrix sulphides from 119m. Assays from YRC20-20 returned 7m @ 0.45% Cu, 0.28% Ni & 0.04% Co from 123m. YRC20-20 was not extended to the second interpreted Cu-Au horizon.

In May 2020, DHEM surveys were completed for four holes at Smith Well using a single transmitter loop. All logs indicated a strong conductive source restricting the EM signal and limiting the effectiveness for detection of off-hole conductors.

Southern Geoscience Consultants (SGC) modelled plates for all four holes individually prior to generating a singular DHEM plate to satisfy all four surveys. The location of the May 2020 DHEM plate shows good convergence with previous 2008 and 2012 DHEM surveys.

The location of the single plate model is interpreted as the upper contact of the upper copper-nickel horizon and located within highly conductive black shales as observed in holes YRC20-19 and YRC20-20.

In June 2020 Empire completed a further six RC holes at Smiths Well. Four holes were drilled in the North-Eastern limb testing the extents of the modelled May DHEM plate in the upper Cu-Ni horizon and two holes were drilled in the South-Western limb testing both the upper Cu-Ni and lower Cu-Au horizons. All samples have been submitted for laboratory analysis with results pending.

Smith Well is interpreted to lie within a broad stratigraphic horizon extending from Smith Well in the east around to the Just Deserts deposit to the west. This stratigraphic horizon includes multiple prospects such as C-Zone and Claudius, where promising historical Cu-Au mineralisation has been identified. Smith Well’s unique elevated nickel content is interpreted to be the result of fluids from a mafic intrusion interacting with the original copper-gold mineralisation within the volcanics. Further exploration is required for a definitive assessment.

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Figure 3 – Smith Well Drillhole Locations & Modelled Plates Overlain on Airborne EM (VTEM) Late-Time CH34 (7.828ms) Image

Figure 4 – Smith Well Long Section Looking South-East (120°)

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Figure 5 – Smith Well Oblique Section

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CORPORATE

Financial Position

Expenditure during the December quarter was approximately $302,000 with cash on hand at quarters end of $598,000.

Investments

At the close of the quarter the Company held 45,888,708 shares in NTM Gold Limited (ASX:NTM) representing a 6.76% interest. Empire acquired its shares in NTM in July 2019 at $0.0325 per share for $1,499,875 invested3. The closing price of $0.080 at the end of the quarter values the holding at $3,671,097.

Eastern Goldfields Milling Services (EGMS)

Empire remains in dispute with Eastern Goldfield Milling Services Pty Ltd regarding gold unaccounted for following a toll treatment milling campaign conducted by EGMS at its Burbanks Gold Processing facility in late 2017. Empire is seeking to recover gold valued in excess of $1 Million. The matter has been referred to Arbitration.

Empire submitted documents to the Arbitrator during the quarter. The next arbitration hearing is scheduled to be heard early in the September 2020 quarter.

Additional ASX Information

ASX Listing Rule 5.3.5: The Company advises that $75,000 was paid to related parties or their associates during the quarter, comprising Executive Director salary, Non-executive Director fees and superannuation.

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This announcement is authorised for release by:

Sean Richardson Managing Director For further information on the Company Phone: +61 8 9386 4699 www.resourcesempire.com.au

About Empire

Empire Resources Limited (ASX:ERL) is a gold and copper focussed exploration and development company. Empire owns 100% of two highly prospective projects. The Yuinmery Copper-Gold Project 470km North East of Perth in the base metal rich Youanmi greenstone belt and the Penny’s Gold Project 45km North East of Kalgoorlie in the prolific Eastern Goldfields Region of Western Australia. Empire’s projects have numerous exploration targets with excellent potential. Empire has an experienced team of exploration, development and financial professionals who are committed to developing a sustainable and profitable mineral business. Empire seeks to extract value from direct exploration in its existing projects as well as identifying value accretive investment opportunities that complement the Company’s development objectives.

Competent Person Statement

The information in this report that relates to Exploration Results is based on information compiled and/or reviewed by Shane Tomlinson, who is a Member of the Australian Institute of Geoscientists. Mr Tomlinson is an independent geological consultant and has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Tomlinson consents to the inclusion in the report of the matters based on this information in the form and context in which they appear.

The information is this release concerning the Mineral Resources for the Just Desserts deposit has been estimated by Mr Peter Ball B.Sc who is a director of DataGeo Geological Consultants and is a member of the Australasian Institute of Mining and Metallurgy (AusIMM). Mr Ball has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and qualifies as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Ball consents to the inclusion in this public release of the matters based on his information in the form and context in which it appears.

Additional JORC Information

Further details relating to the information in this release can be found in the following ASX announcements:

1. ASX:ERL “Quarterly Activities Report March 2008” 2 April 2008 2. ASX:ERL “Updated Copper-Gold Resource Yuinmery Project” 17 May 2016 3. ASX:ERL “Empire Makes Investment in NTM Gold Limited” 11 July 2019 4. ASX:ERL “Exploration Projects Update” 16 September 2019 5. ASX:ERL “Prospectus - Non- Renounceable Rights Issue” 5 November 2019 6. ASX:ERL “Rights Issue Completion and Shortfall Notification” 10 December 2019 7. ASX:ERL “Proposed issue of Securities - ERL” 17 January 2020 8. ASX:ERL “Strong Anomalism in Reconnaissance Drilling” 24 January 2020 9. ASX:ERL “Drilling Confirms New Cu-Au & Cu-Ni Prospects at Yuinmery” 11 March 2020 10. ASX:ONX “Corporate and Operations Update” 13 March 2020 11. ASX:ERL “Yuinmery Delivers Excellent Cu-Au and Cu-Ni Results” 24 April 2020 12. ASX:ERL “ASX:ERL “Quarterly Activities Report March 2008” 2 April 2008” 3 July 2020

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Project Location Map

Tenement Holdings at 30 June 2020

PROJECT

TENEMENT NUMBER

PERCENTAGE INTEREST HELD

PERCENTAGE INTEREST HELD

COMMENTS/ CHANGES SINCE

LAST QUARTER 31 March 2020 30 June 2020

PENNY’S E27/420 100 0 Relinquished

E27/553 100 100

E27/591 100 100

E27/592 100 100

E27/593 100 100

P27/2245 100 100

P27/2262 100 100

YUINMERY M57/265 100 100 M57/636 100 100 E57/1037 100 100

E57/681 91.89 91.89

E57/1027 91.89 91.89

BARLOWEERIE E59/2306 100 100

POISON HILLS E51/1938 0 0 Application

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