QXR Quarterly Activities and Cash Flow Report for Period Ended 31 December 2022

Perth, Australia (ABN Newswire) - QX Resources Limited (ASX:QXR) has entered into a Letter of Intent ("LOI") with Stardust Power Inc. ("Stardust Power"), a development stage American manufacturer of battery-grade lithium products, to negotiate a formal agreement to assess the lithium brines from QXR's large scale Liberty Lithium Brine Project located in California, USA ("Project"), dependent on results, and evaluate options to potentially supply Stardust Power with lithium brine products on a non-exclusive basis for processing into battery-grade lithium materials for electric vehicles*.


- QXR has entered into a Letter of Intent with Stardust Power Inc., a development stage American manufacturer of battery-grade lithium products, to assess the lithium brines from QXR's large scale Liberty Lithium Brine Project located in the USA.

- The parties intend to evaluate options to potentially supply Stardust Power with lithium brine products on a non-exclusive basis for processing into battery-grade lithium materials for electric vehicles.

- QXR is awaiting results and interpretations in the coming weeks from two drillholes, located 4km apart, which intersected numerous brine bearing aquifers at the Liberty Lithium Brine Project.

*Cautionary Statement: QXR is awaiting results from drilling that has intersected brines but does not imply that the brines are lithium bearing. Chemical analysis from an independent laboratory will determine lithium concentrations in a brine.

Stardust Power is developing a strategically and centrally located lithium refinery in Muskogee, Oklahoma with plans for producing up to 50,000 metric tons per annum of battery-grade lithium and is securing sources of lithium brine feedstock to turn into battery grade lithium products ready for use across the lithium supply chain, with a focus on electric vehicles (EV). With over 25 battery giga-factories currently under development across the United States, there is an acute need for a national battery-grade lithium refinery to supply lithium to battery manufacturers. In November 2023, Stardust Power announced that it intends to go public on the NYSE through a merger with a publicly traded special purpose acquisition company in a deal valued at US$490 million.

The LOI between Stardust Power and QXR outlines the intention to work together collaboratively in good faith to assess the potential of lithium brines from the Project, and evaluate options to determine if there is an economically feasible process to produce lithium products from the Project to potentially supply Stardust Power with a limited volume of lithium brine products.

QXR has the ability to earn a 75% interest of the 102km2 Liberty Lithium Brine Project, located in SaltFire Flat, in California, USA (refer ASX announcement dated 5 October 2023). The Project is one of the largest single lithium brine projects in the USA (for scale, equivalent to 2x area of Sydney Harbour). The Project's geological setting mirrors Albemarle's nearby Silver Peak lithium brine producer in Clayton Valley USA and major Argentina brine projects.

QXR is awaiting results and interpretations in the coming weeks from two drillholes, located 4km apart, which intersected numerous brine bearing aquifers (refer ASX announcement dated 8 February 2024).

QXR Managing Director, Stephen Promnitz, said: "QXR has been in discussions with Direct Lithium Extraction technology providers, lithium product processors and end users to advance the liberty Lithium Project dependant on results. Stardust is an emerging new processor of lithium for batteries and we are keen to advance discussions with them."

*To view tables and figures, please visit:
https://abnnewswire.net/lnk/K47IZKL7

About QX Resources Ltd:

QX Resources Limited (ASX:QXR) is focused on exploration and development of battery minerals, with hard rock lithium assets in a prime location of Western Australia (WA), and gold assets in Queensland. The aim is to connect end users (battery, cathode and car makers) with QXR, an experienced explorer/developer of battery minerals, with an expanding mineral exploration project portfolio and solid financial support.

Lithium portfolio: QXR's lithium strategy is centred around WA's prolific Pilbara province, where it has acquired a controlling interest in four projects through targeted M&A - all of which sit in strategic proximity to some of Australia's largest lithium deposits and mines. Across the Pilbara, QXR's regional lithium tenement package (both granted or under application) now spans more than 350 km2.

Gold portfolio: QXR is also developing two Central Queensland gold projects - Lucky Break and Belyando - through an earn-in agreement with Zamia Resources Pty Ltd. Both gold projects are strategically located within the Drummond Basin, a region that has a >6.5moz gold endowment.

Perth, Australia (ABN Newswire) - QX Resources Limited (ASX:QXR) is pleased to announce that a detailed sampling program has been planned for the Company's Western Shaw iron ore project, in the Pilbara iron ore province of Western Australia.

At Western Shaw, previous reconnaissance rock chip samples have returned up to 58.5% Fe from outcrop, which extends over a 4km distance.

A Banded Iron Formation (BIF) with chert horizons was sampled over 4.4km but extends over 8km within the Western Shaw leases (E45/6107, E45/4960), with southern extensions held by the FMG group and Rio Tinto (E45/5589, E45/6326).

QXR has undertaken a comprehensive review of prior exploration over Western Shaw with the iron ore potential only having been recently assessed as the area had been targeted for pegmatites by QXR. Potential exists for enriched surface iron ore over BIF sequences. The Pilbara has been an exploration target for enriched iron ore as DSO (Direct Shipping Ore). A new sampling program of 250m spaced rockchip traverses over the outcropping BIF sequence is planned over the full 8km outcrops in the coming quarter, followed by costeans to better identify drilling targets.

Previous work had been conducted by Atlas Iron over 15 years ago with rockchip results up to 62.3%Fe+ (Table 2*). However recent sampling indicates further untested potential to the south. Atlas had previously intersected up to 57.4% Fe in RC drilling (0-2m, WSRC016) + (Table 2*) within strongly oxidized goethitic ironstone but Atlas' planned reconnaissance drill program was never completed, according to their WA mines dept reports. QXR's rock chip samples display 3km of untested strike length to the south of previous drilling and rockchip sampling.

QXR Managing Director, Stephen Promnitz, said: "Iron ore rockchip sample results with grades above 57% Fe are rare to locate this past decade and may lead to DSO potential if results continue to show promise. It's an exciting opportunity within our leases surrounded by majors in the sector. New work could show the potential for something significant, so we are excited to get this detailed sampling program underway."

*To view tables and figures, please visit:
https://abnnewswire.net/lnk/E4NGD6I5

About QX Resources Ltd:

QX Resources Limited (ASX:QXR) is focused on exploration and development of battery minerals, with hard rock lithium assets in a prime location of Western Australia (WA), and gold assets in Queensland. The aim is to connect end users (battery, cathode and car makers) with QXR, an experienced explorer/developer of battery minerals, with an expanding mineral exploration project portfolio and solid financial support.

Lithium portfolio: QXR's lithium strategy is centred around WA's prolific Pilbara province, where it has acquired a controlling interest in four projects through targeted M&A - all of which sit in strategic proximity to some of Australia's largest lithium deposits and mines. Across the Pilbara, QXR's regional lithium tenement package (both granted or under application) now spans more than 350 km2.

Gold portfolio: QXR is also developing two Central Queensland gold projects - Lucky Break and Belyando - through an earn-in agreement with Zamia Resources Pty Ltd. Both gold projects are strategically located within the Drummond Basin, a region that has a >6.5moz gold endowment.

Perth, Australia (ABN Newswire) - QX Resources Limited (ASX:QXR) is pleased to confirm that numerous brine aquifers were successfully intersected in the second hole of a two-hole diamond drill (DD) program over the large scale Liberty Lithium brine project in California, USA.

- Drillhole 2 has been completed at 443m depth; Brine sampling and geophysics are underway.

- Numerous brine aquifers* were intersected between 90m and 295m depth in drillhole 2.

- Both diamond drillholes, located 4km apart, were centred over significant geophysical targets in magnetotellurics (MT) that inferred a series of conductive brine bearing aquifers.

- Results and interpretations from drillhole 1 are expected in mid-February, with drillhole 2 results in late March.

*Cautionary Statement: The intersection of brines does not imply that the brines are lithium bearing. Chemical analysis from an independent laboratory will determine lithium concentrations in a brine.

Brine sampling*and downhole geophysics of the second drill hole is underway. Specific aquifers are being sampled using packer sampling, with intervals determined from the downhole geophysical and geological logs.

Lithium assay results with interpretations are expected from drillhole 1 in the coming weeks, with drillhole 2 lithium results in late March.

The second vertical diamond drill hole has been completed at 443.5 metres depth. Numerous brine aquifers varying in width from a few metres to 10 metres in width were intersected at 90m, 130m, 210m, 245m, and 295m. Running sands, favourable for brine aquifers, were intersected at these same levels. Increased salinity suggests a favourable zone from 210m to 270m.

Fine grained sediments with sandy layers were common from the top of hole to 205m depth with gravels, conglomerates and coarse alluvial fan material below this to the base of the hole. The geology intersected reflected the anticipated target sequence as its similar in profile to the producing sequences of Albemarle's nearby Silver Peak lithium brine producer in Clayton Valley USA.

The second hole will be cased, with slotted casing in favourable aquifers to allow for further sampling and monitoring. Large brine sample volumes (>20,000 litres) will then be pumped and stored. Bulk volumes of brine will be submitted for analysis and testwork with various direct lithium extraction (DLE) providers (refer ASX announcement dated 25 October 2023).

QXR Managing Director, Stephen Promnitz, said: "Intersecting numerous brine aquifers in the second hole is very encouraging. The running sand horizons and numerous saline aquifers encountered are exactly the desired geological setting when exploring for new lithium brine basins. Additionally, the geology in the second hole is very similar to the producing sequences at the nearby lithium brine producer of Albemarle.

The sampling undertaken is quite specific, using a packer sampler to take samples over individual aquifers from 3m to 10m thick. Bulk samples will be sent for direct lithium extraction testwork once collected.

It's taking a little longer than anticipated to get assays and interpret those results due to end-of-year issues but It's a great start to this large target Liberty Lithium project."

Packer Sampling

Packer sampling, using "straddle" packers, are being utilised to sample specific aquifers downhole. Within the open drillhole, below the drill bit head, rubber stoppers are inflated either side of the specific aquifer between 3m to 10m, with intervals determined from the resistivity and gamma downhole geophysical log together with the geological log, where brines were identified (see Figure 2*).

Drillholes and Deal Terms

The first vertical diamond drill hole was completed at 369 metres depth in late December 2023. Target horizons were intersected at 49m depth and 329m depth. Fine grained sediments, gravels and coarse alluvial fan material were intersected down the length of the hole.

Drillhole 2 is located 4km to the south of drillhole 1 and both are centred over significant MT geophysical targets interpreted as inferring a series of conductive brine bearing aquifers at depth. Both holes are positioned within an extensive lithium brine surface anomaly of over 10km defined in auger samples (see image 4 below).

QXR has the ability to earn a 75% interest of the 102km2 Liberty Lithium Brine Project, located in SaltFire Flat, in California, USA (refer ASX announcement dated 5 October 2023). The Project is one of the largest single lithium brine projects in the USA (for scale, equivalent to 2x area of Sydney Harbour). The Project's geological setting mirrors Albemarle's nearby Silver Peak lithium brine producer in Clayton Valley USA.

*To view tables and figures, please visit:
https://abnnewswire.net/lnk/4461WOH7

About QX Resources Ltd:

QX Resources Limited (ASX:QXR) is focused on exploration and development of battery minerals, with hard rock lithium assets in a prime location of Western Australia (WA), and gold assets in Queensland. The aim is to connect end users (battery, cathode and car makers) with QXR, an experienced explorer/developer of battery minerals, with an expanding mineral exploration project portfolio and solid financial support.

Lithium portfolio: QXR's lithium strategy is centred around WA's prolific Pilbara province, where it has acquired a controlling interest in four projects through targeted M&A - all of which sit in strategic proximity to some of Australia's largest lithium deposits and mines. Across the Pilbara, QXR's regional lithium tenement package (both granted or under application) now spans more than 350 km2.

Gold portfolio: QXR is also developing two Central Queensland gold projects - Lucky Break and Belyando - through an earn-in agreement with Zamia Resources Pty Ltd. Both gold projects are strategically located within the Drummond Basin, a region that has a >6.5moz gold endowment.

Perth, Australia (ABN Newswire) - QX Resources Ltd (ASX:QXR) holds four 100% owned hard-rock lithium projects, covering 355km2, strategically centred around Western Australia's prolific Pilbara province, hosting some of Australia's largest lithium deposits.

QXR projects are Turner River (E45/6042 & E45/6065), Western Shaw (E45/4960 & E45/6107), Split Rock (E46/1367) and Yule River (E45/6159).

During the quarter, the Company announced the results of the rock chip sampling and geological mapping program undertaken during the prior quarter. Further rockchip sample results were returned with up to 3.8% LiO2 and 1.3% Rb2O at Turner River. These new samples, taken from new areas of interest within Turner River, are located some ~250m from where the first samples were reported last year which include ~10kg 'wheelbarrow-sized' samples grading 4.9% LiO2.

With an expanded zone of interest, QXR will reinforce its focus on Turner River with detailed trenching and sampling, once recently flown detailed airborne geophysics data over Turner River is assessed by QXR's specialist consulting team, to target new areas and to better define mineralised extensions under shallow cover to define new drilling targets.

Liberty Lithium Brine Project

The Company entered an Option to Purchase Agreement and an Operating Agreement (Agreements) to earn a 75% interest of the 102km2 Liberty Lithium brine project in California, USA (Project), from vendor IG Lithium LLC (IGL) (ASX announcement 5 October 2023).

The Liberty Lithium Brine Project, located in SaltFire Flat, California, is made up of 1,265 contiguous claims over 102km2 (25,300 acres), being one of the largest single lithium brine projects in the USA (for scale, equivalent to 2x area of Sydney Harbour or half the size of San Francisco city). An extensive lithium brine surface anomaly with elevated lithium results up to 215mg/L Li extends over 10km (ASX announcement 26 July 2023). Geophysical analysis shows a large basin over 1,000 metres deep and indicating brine aquifer targets at depth. The Project's geological setting mirrors Albemarle's nearby producing Silver Peak lithium brine deposit in Clayton Valley USA and major Argentina brine projects.

The first vertical diamond drill hole has been completed at 369 metres depth. The target horizons were intersected at 49m depth and 329m depth. Large brine volumes (>20,000 litres) were pumped into containers. Samples were sent to the lab with results expected in mid-February. Fine grained sediments, gravels and coarse alluvial fan material were intersected down the length of the hole.

The second vertical diamond drill hole is located 4km to the south and is centred over a significant MT geophysical target that has been interpreted as suggesting a series of conductive brine bearing aquifers at depth. Drilling of the second drill hole has advanced significantly in January. Both holes are positioned within an extensive lithium brine surface anomaly of over 10km defined in auger samples.

*To view the full quarterly report, please visit:
https://abnnewswire.net/lnk/5086YL1D

About QX Resources Ltd:

QX Resources Limited (ASX:QXR) is focused on exploration and development of battery minerals, with hard rock lithium assets in a prime location of Western Australia (WA), and gold assets in Queensland. The aim is to connect end users (battery, cathode and car makers) with QXR, an experienced explorer/developer of battery minerals, with an expanding mineral exploration project portfolio and solid financial support.

Lithium portfolio: QXR's lithium strategy is centred around WA's prolific Pilbara province, where it has acquired a controlling interest in four projects through targeted M&A - all of which sit in strategic proximity to some of Australia's largest lithium deposits and mines. Across the Pilbara, QXR's regional lithium tenement package (both granted or under application) now spans more than 350 km2.

Gold portfolio: QXR is also developing two Central Queensland gold projects - Lucky Break and Belyando - through an earn-in agreement with Zamia Resources Pty Ltd. Both gold projects are strategically located within the Drummond Basin, a region that has a >6.5moz gold endowment.

Perth, Australia (ABN Newswire) - QX Resources Limited (ASX:QXR) is pleased to confirm that brines* were successfully intersected in the first hole of a two-hole diamond drill (DD) program over the large scale Liberty Lithium brine project in California, USA.

Brines intersected in first hole at Liberty Lithium Brine Project USA

- Drillhole 1 has been completed and brine sampling is underway; results anticipated in 6 weeks.

- Brines were intersected at shallower levels than expected at 49 metres and 329 metres.

- Second diamond drillhole, located 4km south of the first hole, is centred over a significant geophysical target in magnetotellurics (MT) that infer a series of conductive brine bearing aquifers at depth.

- Second drill hole to commence within a few days' time.

Brine sampling* of the first drill hole is underway with lithium assay results anticipated within six weeks.

*Cautionary Statement: The intersection of brines does not imply that the brines are lithium bearing. Chemical analysis from an independent laboratory will determine lithium concentrations in a brine.

The first vertical diamond drill hole has been completed at 369 metres depth. The target horizons were intersected at 49m depth and 329m depth. Large brine volumes (>20,000 litres) are being pumped currently.

Fine grained sediments, gravels and coarse alluvial fan material were intersected down the length of the hole.

The second DD hole is located 4km to the south and is centred over a significant MT geophysical target that has been interpreted as suggesting a series of conductive brine bearing aquifers at depth. Drilling of the second drill hole will commence in the coming days. Both holes are positioned within an extensive lithium brine surface anomaly of over 10km defined in auger samples (see image 2* below).

QXR has the ability to earn a 75% interest of the 102km2 Liberty Lithium Brine Project, located in SaltFire Flat, in California, USA (refer ASX announcement dated 5 October 2023). The Project is one of the largest single lithium brine projects in the USA (for scale, equivalent to 2x area of Sydney Harbour). The Project's geological setting mirrors Albemarle's nearby Silver Peak lithium brine producer in Clayton Valley USA and major Argentina brine projects.

QXR Managing Director, Stephen Promnitz, said: "We are encouraged with the progress to date. Brines have been intersected at multiple depths in favourable geology with the hole producing brines at a good rate. This is a great start and we look forward to updating the market with assays in six weeks.

The second hole may well deliver even better results due to its favourable position to encounter more downhole intercepts of brines. The Liberty Lithium project is a large lithium brine target and has the hallmarks of a successful brine project. I'm looking forward to keeping investors updated with results and further drilling."

*To view tables and figures, please visit:
https://abnnewswire.net/lnk/43J6508F

About QX Resources Ltd:

QX Resources Limited (ASX:QXR) is focused on exploration and development of battery minerals, with hard rock lithium assets in a prime location of Western Australia (WA), and gold assets in Queensland. The aim is to connect end users (battery, cathode and car makers) with QXR, an experienced explorer/developer of battery minerals, with an expanding mineral exploration project portfolio and solid financial support.

Lithium portfolio: QXR's lithium strategy is centred around WA's prolific Pilbara province, where it has acquired a controlling interest in four projects through targeted M&A - all of which sit in strategic proximity to some of Australia's largest lithium deposits and mines. Across the Pilbara, QXR's regional lithium tenement package (both granted or under application) now spans more than 350 km2.

Gold portfolio: QXR is also developing two Central Queensland gold projects - Lucky Break and Belyando - through an earn-in agreement with Zamia Resources Pty Ltd. Both gold projects are strategically located within the Drummond Basin, a region that has a >6.5moz gold endowment.