IGO Interactive Annual Report 2020

Regional Exploration & Development ENDURING STRATEGY TO UNLOCK ORGANIC GROWTH Exploration to discover the mines of the future is a core part of IGO’s growth strategy and a key area of competence for the business. IGO has an enduring commitment to exploration and has built a best- in-class team of experts to unlock value from our extensive green and brownfields exploration portfolio. Our primary focus is on the discovery of nickel, copper and cobalt, commodities which are aligned to our clean energy metals strategy. During FY20, we made great progress toward unlocking discovery on belt-scale ground positions at our Fraser Range, Kimberley and newly consolidated Paterson Projects in Western Australia, Lake Mackay and Raptor Projects in the Northern Territory, as well as the Copper Coast Project in South Australia and Frontier Project in Greenland. Our team had a busy and successful year, however severe weather over the summer months, including bushfires and heavy rain, delayed the commencement of some of our work programs. Later in the year, government-imposed travel restrictions in response to the COVID-19 pandemic further limited our teams’ access to some of our project areas. While these circumstances impacted our planned activity, care for our people and the broader community is IGO’s absolute priority and we are proud of the way our team adjusted their work plans and continued their part in delivering growth opportunities for IGO. In FY21, our focus remains unchanged. Our commitment to exploration and discovery continues, with a high level of drilling activity planned to test targets at the Fraser Range Project, extensive field work to be undertaken at the newly expanded Paterson Project, and various other work programs across the portfolio that are considered high potential to unlock value in the near term. FRASER RANGE IGO maintains a strong conviction that the Fraser Range has the potential to host multiple Nova- style nickel-copper-cobalt ore bodies, with the area also highly prospective for volcanogenic massive copper-zinc sulphides and gold mineralisation. Our exploration team is focused on discovering deposits similar to IGO’s 100%-owned Nova Operation that can either feed into the existing Nova Operation or become a standalone mine. Secondary targets include volcanogenic massive sulphide (VMS) copper-zinc-gold mineralisation and lode style gold mineralisation, which have been identified at various locations along the belt. During FY20, IGO progressed its systematic exploration activity over the Fraser Range Project while also continuing to consolidate our land holding in this highly prospective belt. The Fraser Range Project is IGO’s highest ranked exploration project and as at 30 June 2020 spans some 11,960 km 2 of tenure. IGO either holds tenements 100% outright or is in joint ventures with numerous parties whereby it has earned between 65% and 90% interest. The FY20 program of work was highly drilling intensive as we began testing numerous targets generated by geochemical and geophysical work programs from previous years. In total, more than 55 prospective target areas were tested with some 200,000m of diamond and aircore drilling – representing the busiest year for our teams to date. This has been an outstanding achievement given the significant changes required in response to the COVID-19 pandemic, which allowed us to continue to work on the Fraser Range while ensuring our team’s safety. This intensive drilling program yielded excellent results, with drilling identifying multiple mineralised mafic-ultramafic intrusions in and around Nova. These are the host rocks in which the Nova Bollinger orebody was discovered. Highlights at the Fraser Range Project included: • The Chimera target, located 10km from the Nova Operation, is an exciting new nickel-copper sulphide target that was initially identified in 2019 using aircore drilling. Follow-up infill aircore drilling in 2020 has returned highly anomalous geochemical results including; 15m @ 0.43% Ni and 0.17% Cu from 42m, 26m @ 0.15% Ni and 0.11% Cu from 46m, and 23m @ 0.33% Ni and 0.07% Cu from 38m 1 • The Ecliptic target is located approximately 500m south of the Silver Knight nickel-copper deposit controlled by the Creasy Group. Diamond and RC drilling has intersected highly Fraser Range Ni, Cu, Co IGO 100% and various JVs Targeting magmatic nickel-copper-cobalt deposits within the Albany Fraser Orogen. Activities included: • Extensive drilling of targets • Ongoing regional RC/AC drilling • Continuation of geophysics program. Lake Mackay Cu, Au, Ni, Co IGO up to 70% Targeting base metals deposits in an unexplored mineral province. Activities included: • RC drilling of prospects • Regional geochemical soil sampling • Bench scale leach testwork of cobalt-nickel samples collected from Grimlock. Kimberley Ni, Cu, Co IGO 100% and various JVs Belt-scale project targeting magmatic nickel-copper-cobalt sulphide deposits along the Halls Creek and Wunaamin-Miliwundi Ranges. Activities included: • Airborne magnetic and radiometric surveys • Engagement with Traditional Owners. Raptor Ni, Cu, Co IGO 100% Belt-scale project targeting nickel-copper-cobalt sulphide deposits along the Willowra Gravity Ridge in the Northern Territory. Activities included: • Aeromagnetic and radiometric surveys. Paterson Cu, Co, Au IGO 100% and various JVs Newly consolidated, belt-scale project targeting Tier-1 copper-cobalt and copper-gold deposits in a highly prolific mineral province. Activities included: • A large-scale magnetotelluric survey • Geochemical analysis of surface soil samples. Copper Coast Cu IGO 100% Targeting sediment-hosted copper mineralisation on the Stuart Shelf. Activities included: • A regional ground gravity survey • A regional magnetotelluric line • Planning for future geophysics and stratigraphic drilling programs. Frontier Cu IGO up to 80% Joint Venture targeting sediment-hosted copper deposits in geological setting analogous to the Central African Copper belt. Activities included: • The first field season during which geological mapping and geochemical sampling provided data for drill target definition. De Beers Database Continued unlocking of unique sample database for new project generation. EXPLORATION PROJECTS & FY20 ACTIVITY Diamond drilling is one of the most advanced and expensive stages of exploration target testing. Therefore, it is crucial to extract as much information out of the drill core as possible, so better informed decisions can be made earlier on, and in a more cost-effective manner. Traditional techniques in extracting this information involves visual logging, measuring the orientation of geological structures, and the collection of routine petrophysical (magnetic susceptibility, electric conductivity, and specific gravity) and chemical (assay) data. In December 2019, IGO began a trial with the hyperspectral core scanning provider, Terracore, to scan drill core from the Nova-Bollinger deposit and several prospects on the mining lease in both Short Wave Infrared and Long Wave Infrared. Hyperspectral logging is new to the nickel exploration space and uses infrared radiation to identify and map mineral variations in drill core, at a scale and precision not even the best nickel geologist in the world can achieve. Combined with traditional techniques, hyperspectral logging has allowed IGO geologists to map out critical processes that led to the formation of the Nova-Bollinger Ni-Cu-Co sulphide deposit in an objective manner. This ability to image critical processes in forming Ni-Cu ore deposits is being applied to other IGO prospects, so that informed decisions can be made about exploration targets at an earlier stage, resulting in fewer drill holes needed to test targets. Ben Cave, IGO Technical Project Geologist highlights, “Being a first-mover in using the Terracore system for exploring for Ni-Cu systems demonstrates IGO’s commitment to adopting new innovative technologies. Results have shown this technology could be transformational to exploring for these (and other) systems, and places IGO in an excellent position as this technology advances.” CASE STUDY: USING HYPERSPECTRAL IMAGING TO MAKE EXPLORATION DECISIONS Exploration Geologist, Fionnlagh Hunter interpreting hyperspectral data from a Nova Drill Hole. 1 ASX Release – June 2020 Quarterly Report, dated 29 July 2020 24 — IGO ANNUAL REPORT 2020 IGO ANNUAL REPORT 2020— 25