DSO UPDATE: Macarthur takes another step forward on DSO with arrangements to support rail task to Kwinana

VANCOUVER, Sept. 23, 2021 - Macarthur Minerals Ltd. (ASX: MIO) (TSX-V: MMS) (OTCQB: MMSDF) (the Company or Macarthur) is pleased to announce that it has secured access to 190 half height shipping containers to support DSO rail haulage services to Kwinana Bulk Terminal (KBT). Macarthur has a confirmed reservation of access to sufficient half height shipping containers with Seaco Australia Pty Ltd (Seaco) to support rail capacity under a recently announced binding rail haulage agreement with Aurizon.

Macarthur intends to negotiate and finalise a formal container lease for the containers with Seaco, subject to confirmation by Macarthur of port access through KBT on terms that are commercially acceptable to Macarthur.

Macarthur intends that leased half-height shipping containers will be loaded with iron ore and transported on a flat- bed rail freight service from Aurizon's West Kalgoorlie rail siding to KBT at a rate of up to 500,000 tonnes per annum.

Subject to securing port capacity and an anticipated stabilisation of iron ore prices through Q4 2021 and into Q1 2022, Macarthur is targeting commencement of DSO exports via KBT by as early as February 2022. Initial shipments are anticipated to comprise DSO produced by GWR Group from its C4 deposit at Wiluna West under the terms of the mine gate sale agreement announced in August this year. At the same time, Macarthur is continuing to advance work that can accelerate the development of DSO mining operations at Ularring, Lake Giles, Western Australia.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/4e39084a-1130-44b4-9de0-dc0e9404c0eb

Andrew Bruton, CEO of Macarthur Minerals commented:

"In the current tight freight market, access to suitable shipping containers that are constructed to allow end-tipping of iron ore onto stockpiles is challenging. Reserving access to these containers is an important component of the transport logistics solution and it will enable Macarthur to utilise the Aurizon rail task to KBT for DSO products.

The reservation of containers will provide an opportunity for Macarthur to continue to target early revenue generation by commencing shipments of DSO secured from GWR Group under the recently announced mine-gate sale agreement subject to finalisation of port capacity and stabilisation of iron ore prices through Q4 2021 and into Q1 2022. At the same time, the Company continues to simultaneously advance plans to bring its Ularring project into operation.

Management is maintaining a business as usual approach to advancing both the GWR mine gate sale and Ularring DSO revenue strategies so that it remains ready to advance at the earliest available opportunity. The Seaco agreement evidences this intention, and both of these revenue strategies are aimed at supporting the development of the Company's planned high grade magnetite Lake Giles Iron Project and are anticipated to support a re-rating of the Company for the purposes of funding that project.

The Company is observing the current market but remains generally unperturbed about the recent iron ore price corrections. Although the recent price correction is sharp, it is not unexpected, and the Company does not anticipate that this correction will alter the trajectory for the delivery of its magnetite project at Lake Giles. The Lake Giles Iron Project is targeting a high-grade magnetite concentrate which will benefit from the premium gap between 62%Fe fines and 65%Fe fines products. The Company's approach to the delivery of that project is factoring in very conservative long-term iron ore price forecasts to withstand the rigour of due diligence by financiers."

On behalf of the Board of Directors, Mr Cameron McCall, Chairman

Company profile
Macarthur is an iron ore development, gold and lithium exploration company that is focused on bringing to production its Western Australia iron ore projects. The Lake Giles Iron Project mineral resources include the Ularring hematite resource (approved for development) comprising Indicated resources of 54.5 million tonnes at 47.2% Fe and Inferred resources of 26 million tonnes at 45.4% Fe; and the Lake Giles magnetite resource of 53.9 million tonnes (Measured), 218.7 million tonnes (Indicated) and 997 million tonnes (Inferred). The JORC reporting tables and Competent Person statement for the magnetite and hematite mineral resources have previously been disclosed in ASX market announcements dated 12 August 2020 and 5 December 2019. Macarthur has prominent (~721 square kilometre tenement area) gold, lithium and copper exploration interests in Pilbara region of Western Australia. In addition, Macarthur has lithium brine Claims in the emerging Railroad Valley region in Nevada, USA.

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Caution Regarding Forward Looking Statements
Certain of the statements made and information contained in this press release may constitute forward-looking information and forward-looking statements (collectively, "forward-looking statements") within the meaning of applicable securities laws. All statements herein, other than statements of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future, including but not limited to statements regarding expected completion of the Feasibility Study; conversion of Mineral Resources to Mineral Reserves or the eventual mining of the Project, are forward-looking statements. The forward-looking statements in this press release reflect the current expectations, assumptions or beliefs of the Company based upon information currently available to the Company. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and no assurance can be given that these expectations will prove to be correct as actual results or developments may differ materially from those projected in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include but are not limited to: unforeseen technology changes that results in a reduction in iron or magnetite demand or substitution by other metals or materials; the discovery of new large low cost deposits of iron magnetite; the general level of global economic activity; failure to complete the FS; inability to demonstrate economic viability of Mineral Resources; and failure to obtain mining approvals. Readers are cautioned not to place undue reliance on forward-looking statements due to the inherent uncertainty thereof. Such statements relate to future events and expectations and, as such, involve known and unknown risks and uncertainties. The forward-looking statements contained in this press release are made as of the date of this press release and except as may otherwise be required pursuant to applicable laws, the Company does not assume any obligation to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise.