CRES Acquires 60% Interest in Arizona Vanadium Shale Project in Queensland, Australia
CREST RESOURCES INC.
S u i t e 11 00 - 5 95 H o w e S t re e t , V a n c o u v e r , B C V6 C 2 T 5
T ( 6 0 4) 6 8 1- 3 1 7 0, F ( 6 0 4 ) 681 -3552
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NEWS RELEASE
CREST RESOURCES INC. ACQUIRES 60% INTEREST IN THE ARIZONA VANADIUM
SHALE PROJECT IN QUEENSLAND, AUSTRALIA
Vancouver, B.C. – April 27, 2020 ‐ Crest Resources Inc. (CSE: CRES) (“Crest” or the “Company”) is pleased
to announce that it has entered into an agreement (the “Agreement”) for its 60% owned Australian
subsidiary, AusVan Battery Metals Pty Ltd (“AusVan”), to acquire a 100% interest in the Arizona
Queensland Vanadium Shale Project (the “Project”). Vecco Industrial Pty Ltd (“Vecco”), the current owner
of the Project, will retain a 40% interest in the Project through owning 40% of the issued and outstanding
common shares of AusVan. To acquire the Project, AusVan must make payments totaling $487,000 and
fund $1,000,000 in exploration and development work. The Arizona Project is a resource stage Vanadium
and High Purity Alumina (“HPA”) deposit located in central Queensland, Australia.
Project Highlights:
• Large Scale and High-Grade Deposit
o Historical JORC Inferred Resource (2018) of 618 Mt at 0.45% V 2O5* with an exploration
target of 880 - 1,100 Mt and potential high value HPA co-product.
• Low Cost Mining Potential
o Gently dipping deposit with consistent grade at shallow depths with undrilled portions
projecting to surface.
• Standard Processing Flowsheet for Toolebuc Formation Vanadium shale returns up to 95%
vanadium recovery with atmospheric leach technology
o Detailed processing flow sheet supports a clear pathway to full V2O5 production.
• Clear path to definition of a near surface oxide resources and definition of PEA level economics
*The JORC resource was completed for Vecco in 2018 by John T. Boyd Company and is historic in nature.
Neither AusVan nor Crest has independently validated the estimates and therefore is not to be regarded as reporting,
adopting or endorsing those estimates. Further work will be required to bring the resource into compliance.
Nothing has come to the attention of AusVan that causes it to question the accuracy or reliability of the estimate.
President Michael Collins comments, “Crest is please d to have the opportunity to partner with Vecco to
develop the Arizona Queensland Vanadium Project. Atmospheric leach vanadium pr ojects have a clear
advantage in reducing Capex and Opex to supply the vanadium electrolyte market.
Vanadium is a key part of the renewable energy boom by providing a low cost static battery energy storage
solution. We see a clear pathway to make the Arizona Project a significant part of the clean energy storage
market.”
Covering 810 km 2, the Arizona Vanadium Project is located 80 km north of Julia Creek in central
Queensland, Australia. The base metals mining center of Mt. Isa and regional airport is located 230 km to
the west. The Mt. Isa rail network passes through Julia Creek with connect ions to Charters Towers and
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Townsville and Port Abbot at Bowen. The area has a hot dry climate with flat lying topography used for
cattle grazing and is easily accessible by road and near existing power.
Geology
Centered on the Euroka Ridge separating the Carpentaria and Eromanga Sedimentary Basin in North-west
Queensland, the Arizona Project displays many similar characteristics to the nearby advanced D ebella
Vanadium + HPA Project ; a near surface, flat lying and locally oxidized vanadium enriched shale. The
Arizona Project is hosted by Cretaceous sedimentary rocks of the Toolebuc Formation. The Toolebuc
Formation is composed primarily of banded limestone and shales, is widely distributed and laterally stable
across the Project. The Vanadium mineralization is concentrated in the Toolebuc B and D beds. The
Toolebuc B bed ranges in thickness from 0.3m to 3.0m in thickness, averaging 2.8m, and the Toolebuc D
bed ranges in thickness from 1.3 m to 4.1m in thickness, averaging 2.8m. Most of the mineralization is
contained within a shallow weathered zone with primary vanadium enrichment in the shale portion of
the formation.
Terms of the Agreement
The Agreement terms are as follows:
• Acquisition cost to AusVan of CAD $450,000, and repayment of tenement fees to Vecco are AUS
$40,574.
• Payments due:
o CAD $100,000 on or before October 19, 2020.
o CAD $50,000 payment on or before 45 days from transfer of claims from Vecco to AusVan.
o CAD $350,000 payment upon determining an additional NI -43-101 (or JORC) Inferred
Resource of 40Mt containing a minimum average grade of 0.30% V 2O5 (in addition to the
existing Resource).
• All payments are guaranteed by Crest.
• Vecco Industrial will maintain an 40% interest in AusVan until certain conditions are satisfied ,
including public listing of AusVan and capital requirements (including expenditures of CAD
$1,000,000 on the Project).
There are no royalties on the Project.
The technical portion of this news release was reviewed and approved by Mr. Nicholas Rodway, P. Geo.
and VP Corporate Development, a qualified person as defined under definition of NI 43-101.
FOR FURTHER INFORMATION CONTACT:
Michael Collins
President and CEO
Crest Resources Inc.
Telephone: 604-681-3170
Neither the Canadian Securities Exchange nor its Regulation Service Provider (as the term is defined in the policies of the Canadian
Securities Exchange) accepts responsibility for the adequacy of accuracy of this news release.
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Forward-Looking Statements
This news release contains certain forward-looking statements, which relate to future events or future performance
and reflect management’s current expectations and assumptions. Such forward -looking statements reflect
management’s current beliefs and are based on assumption s made by and information currently available to the
Company. Readers are cautioned that these forward -looking statements are neither promises nor guarantees, and
are subject to risks and uncertainties that may cause future results to differ materially from those expected including,
but not limited to, market conditions, availability of financing, actual results of the Company’s exploration and other
activities, environmental risks, future metal prices, operating risks, accidents, labor issues, delays in o btaining
governmental approvals and permits, and other risks in the mining industry. All the forward -looking statements
made in this news release are qualified by these cautionary statements and those in our continuous disclosure filings
available on SEDAR at www.sedar.com. These forward -looking statements are made as of the date hereof and the
Company does not assume any obligation to update or revise them to reflect new events or circumstances save as
required by applicable law.