23 October 2020 ASX ANNOUNCEMENT Update on Mining Leases for Arrowsmith Silica Sand Projects Highlights: • Conclusive registration of Yamatji Nation ILUA expected today • Grant of Mining Leases for Arrowsmith projects expected imminently under the terms of the ILUA VRX Silica Limited (VRX or Company) (ASX: VRX) announces it has received notice from the Yamatji Marlpa Aboriginal Corporation (YMAC) that conclusive registration of the Yamatji Nation Indigenous Land Use Agreement (ILUA) is expected today, in accordance with the terms of the ILUA. The ILUA is an alternative settlement by the West Australian Government of native title claims covering a significant portion of land in the Mid West, including the Southern Yamatji People claim covering the Company’s Arrowsmith North and Arrowsmith Central Silica Sand Projects (Arrowsmith Projects). The effect of conclusive registration is that VRX’s Mining Lease and Miscellaneous Licence applications for its Arrowsmith Projects will be dealt with under the terms of the ILUA. VRX has been in consultation with the Department of Mines, Industry Regulation and Safety (DMIRS) about the grant of the Mining Leases and Miscellaneous Licences under the ILUA. This process includes a requirement that the Department of Premier and Cabinet formally notifies the Yamatji representative regional entity and DMIRS of the ILUA’s conclusive registration within five business days of it occurring. The Company expects the Mining Leases and Miscellaneous Licences to be granted shortly after such notification. The ILUA will supersede the negotiations that were underway between VRX, YMAC and the Southern Yamatji Working Group over the terms of a native title project agreement for the Arrowsmith Projects. These negotiations had been progressing in good faith, though they are now overtaken by the Governmentled ILUA, which settles all native title claims over the Arrowsmith Projects area. 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 Silica Sand Projects 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. The Company is actively assessing other silica sand projects in Australia. VRX’s Managing Director Bruce Maluish said: “The conclusive registration of the Yamatji Nation ILUA gives us a clear line of sight on the grant of Mining Leases for VRX’s Arrowsmith North and Central Silica Sands Projects and we are anticipating the imminent grant of these and related Miscellaneous Licences. “The ILUA draws a necessary end to our efforts and those by the Southern Yamatji Working Group and YMAC to establish and execute a native title project agreement. However, we are confident the strong and supportive relationships VRX has established with the Southern Yamatji People, in particular, will benefit all parties as we advance development of the Arrowsmith Projects.” Even though VRX now has to comply with the terms of the ILUA, the Company intends to continue to consult with the Southern Yamatji People as the Arrowsmith Projects are developed to build on the positive relationships in place. Further information: Bruce Maluish Managing Director brucem@vrxsilica.com.au Peter Klinger Cannings Purple pklinger@canningspurple.com.au 0418 940 417 0411 251 540 Figure 1. Plan of Arrowsmith project areas 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. 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