Dear Winsome Shareholders and Stakeholders

As we come to the end of another year, I want to take this opportunity to thank you all for your ongoing support throughout the year, and to recap on a busy and highly successful 2022.

The Winsome Resources team has worked hard throughout the year, building on the already highly skilled team, carrying out exploration at our flagship Cancet and Adina projects, actively identifying and acquiring new assets, and running a number of drill campaigns – the latest of which will continue through the Canadian winter and for the indefinite future leading towards the definition of maiden resources at the projects.

But let’s step back beyond the start of the year to 30 November 2021, when Winsome Resources listed on the ASX. It marked the culmination of months of work and the start of concerted efforts to build the value proposition for shareholders.

Within weeks of listing, Winsome had appointed our Canadian General Manager, Carl Caumartin,  who has the credentials and local experience to help drive our projects forward, and commenced building the infrastructure and service provider network required to deliver an aggressive exploration and project acquisition program.

The 2022 calendar year also commenced with Winsome announcing it was approved to trade on the Frankfurt Stock Exchange, opening the way for battery mineral-focused European investors to become involved in our Company.

Throughout the year, Winsome expanded its asset portfolio, first executing an agreement to acquire and explore 385km² of claims in the Decelles region of Quebec, then adding a further 149km² of claims at the nearby Mazerac project. More recently, the Company announced that it had taken a substantial investment position in Canadian miner Power Metals Corp as well as the rights to all offtake from Power Metals’ Case Lake lithium, caesium and tantalum project in eastern Ontario. Winsome Managing Director Chris Evans subsequently took a position on the Power Metals Board of Directors and the Company agreed to develop a collaboration agreement to cooperate and combine assets for the development of Case Lake and other projects.

The first drilling campaign commenced at Cancet in March, focused on twinning existing historic drill holes and completing infill drilling at key locations. A ground gravity survey also commenced, while samples collected from both Cancet and Adina were provided to SGS Canada for metallurgical testing, returning exceptional results, showing potential for ore to be beneficiated to a 6% Li₂O concentrate using Dense Media Separation (DMS) alone, due to the exceptional recoveries achieved. Assays from the Cancet drilling program showed high-grade, near surface lithium mineralisation from multiple drill holes. Intersections across a broad area allowed Winsome to extend the strike length of the main pegmatite body at Cancet from 600m to 1,200m.

Throughout the summer months, field teams completed on-ground exploration at both Cancet and Adina, culminating in the identification of an additional significant pegmatite outcrop at Adina and gathering data to define drill targets for the autumn/winter drill campaign at Cancet. Assays on rock chip samples taken from the newly found Jamar Discovery indicated extensive lithium surface mineralisation.

In October, simultaneous drilling campaigns commenced at Cancet and Adina. Initial drilling at Adina shows exceptional promise with multiple pegmatite intercepts over significant strike and widths. At the same time, analysis of gravity surveys from Cancet indicated major potential extensions to the known pegmatite ore body. This led to an extension of the drill campaigns at both projects and the Company now expects to continue drilling well into 2023.

While the Company maintained ample cash in the bank, the Canadian Government-supported Flow-Through Share scheme allowed Winsome to capitalise on tax benefits and raise an additional A$6.8 million at premium close to double the share price of the day. Thus, the cash at hand was restored to that at the IPO with minimal dilution.

With all the activity underway at both Cancet and Adina, it made sense for Winsome to acquire a camp close to both projects, a transaction which was recently concluded and set us up to ultimately accommodate more than 30 workers and house a drill core logging and cutting facility.

The ongoing positive news saw Winsome’s share price peaking at $1.58 and being named by The Motley Fool as the best performing ASX lithium stock for November.

The Company also announced it had been quoted on the US-based OTCQB exchange, opening the way to simplified trading for North American investors.

Winsome does not expect the activity to slow as we move into 2023. The anticipated return of assay results early in the new year will inform the ongoing drilling campaigns at Cancet and Adina, expected to run through most of 2023 and underpin plans to announce maiden resources for both projects.

The Company thanks all shareholders for your ongoing support and wishes you a very happy festive season and safe and prosperous 2023.

We look forward to bringing you further news as we continue to forge ahead next year.

Season’s greetings,

Chris Evans
Managing Director