31 January 2020 ASX ANNOUNCEMENT Native Title Mining Project Agreement Signed for Muchea Silica Sand Project Highlights: • Formal agreement reached with representatives of the Whadjuk People Native Title Claim Group and SWALSC • Whadjuk People consent to grant of Mining Lease and Miscellaneous Licences for Muchea Silica Sand Project • VRX commences formal process for grant of Mining Lease for Muchea Silica Sand Project VRX Silica Limited (VRX or Company) (ASX: VRX) is pleased to announce that its wholly-owned subsidiary and holder of the Muchea Silica Sand Project (Muchea Project), Wisecat Pty Ltd (Wisecat), has signed a Native Title Mining Project Agreement (Agreement) for the Muchea Project. The Agreement has been entered into with the Whadjuk People Native Title Claim Applicants under Application WAD242/2011 (as the authorised representatives of the Whadjuk People Native Title Claim Group) and the South West Aboriginal Land & Sea Council Aboriginal Corporation (SWALSC) in its capacity as agent for the Whadjuk People. ASX: VRX Capital Structure* Shares on Issue: 445.1 million Listed Options*: 23.9 million Unlisted Options: 69.5 million Corporate Directory Paul Boyatzis Non-Executive Chairman Bruce Maluish Managing Director Peter Pawlowitsch Non-Executive Director John Geary Company Secretary Company Projects Commenting on the agreement, VRX’s Managing Director Bruce Maluish said, “We are delighted to have reached agreement in good faith with the Whadjuk People and SWALSC. This represents a significant milestone in the development of our Muchea Silica Sand Project. Arrowsmith Silica Sand Project, 270km north of Perth, WA. Muchea Silica Sand Project, 50km north of Perth, WA. Boyatup Silica Sand Project, 100km east of Esperance, WA. Warrawanda Project south of Newman, WA. Biranup base metals and gold Project adjacent to the Tropicana Gold Mine, WA. He continued, “This Agreement clears the path for grant of the Mining Lease and the Miscellaneous Licences for the Muchea Project.” The Company is actively assessing other silica sand projects in Australia. Under the terms of the Agreement the Whadjuk People give their consent to the grant of the Mining Lease and the Miscellaneous Licences for the Muchea Project within the Native Title claim area and the conduct of silica sand mining operations at the Muchea Project. Wisecat has commenced the formal process with the National Native Title Tribunal required for the grant of the Mining Lease by the Minister for Mines for the Muchea Project. *Expected to be issued and quoted on ASX by 3 February 2020 The Agreement also provides for a set of shared long-term objectives for the parties and a range of measures designed to achieve those objectives over the term of the Agreement (being the life of the Muchea Project). These include: • the preservation and management of Aboriginal heritage within the Mining Lease area wherever possible pursuant to an agreed Heritage Protocol; • the promotion of awareness of the Whadjuk People’s traditional laws and customs and facilitation of cross-cultural exchange between the members of the Whadjuk People and Wisecat and its employees and contractors; • ensuring the environmental impact of agreed mining operations is managed in accordance with relevant statutory obligations; • maximising employment and contracting opportunities for Whadjuk People contractors in connection with agreed mining operations; and • the provision of agreed initial and ongoing compensation to the Whadjuk People for the effects on Native Title arising from the grant of the Mining Lease and Miscellaneous Licences within the Native Title claim area, the conduct of mining operations and the issue of agreed project approvals. In addition, the Agreement contains provisions that are customary for an agreement of this nature, including as to confidentiality, warranties, force majeure and dispute resolution procedures. This announcement has been authorised for release to ASX by Bruce Maluish, VRX Silica Limited Managing Director. Further information: Bruce Maluish Managing Director brucem@vrxsilica.com.au 0418 940 417 Andrew Rowell Cannings Purple arowell@canningspurple.com.au 0400 466 226 About VRX Silica VRX Silica Ltd (VRX Silica) (ASX: VRX) has significant silica sand projects in Western Australia. The Arrowsmith North and Arrowsmith Central Silica Sand Projects, located 270km north of Perth, comprise five granted exploration licences and two mining lease applications pending. Bankable feasibility studies for both projects have been released, each demonstrating exceptional financial metrics. The Muchea Silica Sand Project, located 50km north of Perth, comprises one granted exploration licence, with one mining lease application pending. Muchea is a world-class project with high purity silica sand in situ. A bankable feasibility study for the project has been released demonstrating outstanding financial metrics. The Boyatup Silica Sand Project, located 100km east of Esperance, comprises two adjacent granted exploration licences. Initial indications are that this project will complement the Arrowsmith and Muchea projects while adding to the range of silica products capable of production. The Warrawanda Project, 40km south of Newman, WA is prospective for nickel sulphides. The Biranup Project, adjacent to the Tropicana Gold Mine in WA’s Goldfields, is prospective for gold and base metals. Proven Management The VRX Silica Board and management team have extensive experience in mineral exploration and mine development into production and in the management of publicly listed mining and exploration companies. Project Locations