ALDORO RESOURCES LIMITED — Capital/Financing Update 2020

Jul 2, 2020

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Penny South and Unaly Hill South Aircore Drilling

Highlights

ASX Announcement 3 July 2020 ASX Code: ARN

Board

Rhod Grivas

• Combined AC program across Penny South and Unaly Hill South

• Untested targets at Penny South including southern extension of Penny West Shear

• Targeting two structural trends at Unaly Hill South based on recent interpretation work

• PoW recently lodged for Unaly Hill South

Non-Executive Chairman Dr Caedmon Marriott Managing Director Joshua Letcher Non-Executive Director

Capital Structure

Shares: 52.86m Options (@22.5c): 2.0m Share Price: $0.076 Market Cap: $4.02m Cash (31/03/20): $2.50m

Aldoro Resources Limited (“Aldoro” or “Company”) is pleased to update shareholders on the Company’s gold exploration activities across the Penny South and Unaly Hill South Projects.

Work is in progress to contract a rig for a combined aircore (AC) program at Penny South and Unaly Hill South in late July. At Penny South the planned program will target new areas around the tenement not previously tested by Aldoro’s January AC program and April reverse circulation (RC) drilling including: the 700m extension of the Penny West Shear to the southern boundary of the tenement, the northwest continuation trend of the granodiorite-mafic contact delineated by the January AC program and other targets previously identified by the litho-structural interpretation of the project area ( ASX, Penny South Targets Identified, 27 November 2019 ).

A Program of Work (PoW) has recently been lodged for drilling at the Unaly Hill South Project. Interpretation of a recent high-resolution ground magnetic survey at Unaly Hill South has identified two structural target trends associated with anomalous gold-in-saprolite values recorded in historic shallow wide spaced RAB drilling over a strike length of approximately 1.25km. The planned AC program aims to follow up on these results in light of Aldoro’s new geological interpretation of the area.

Penny South

The combined AC program will target new areas around the Penny South tenement not previously tested by Aldoro’s January 2020 AC program and April 2020 RC program. Three target areas have been identified:

2. Southern extension of Penny West Shear and granodiorite

3. Magnetic low feature along Youanmi Shear greenstone-granite contact, possible demagnetised zone similar to Youanmi

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Figure 1: Penny South Further AC Targets

Unaly Hill South

The Unaly Hill South Project is located 16km northeast of the Youanmi Gold Mine ( ASX:RXL and VMC ) and sits on the continuation of the major regional Youanmi Shear Zone. The tenement area (E57/1048) straddles an interesting structural juncture between the Youanmi Shear and the Yuinmery Shear. This intersection of two major shears has long been “ considered conceptually favourable of the development of dilation structures for possible gold mineralisation ”[1] but limited gold exploration has been conducted across the tenement since the late 1990’s.

The project covers the southern tip of the Atley Igneous Complex and the northern extension of the Youanmi-Yuinmery Greenstone Belt. The area is overlain by cover and sheet wash, with essentially no outcrop, making the use of techniques such as soil geochemistry difficult.

1. Meteoric Resources, Four Corners Annual Report, 2011

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Figure 2: Unaly Hill South Location Map

Aldoro has recently completed a high-resolution ground magnetic survey over a large portion of the tenement area and compiled a drill hole database of historic drilling and logging, providing lithological information. The majority of the historic drilling was completed during the 1990’s, consisting of shallow, widely spaced (200m x 100m) vertical RAB drilling. Two potential dilational structures or jogs are observed from the magnetic survey and structural interpretation, one of which corresponds to an area of anomalous gold values whilst the second is largely untested.

Aldoro’s work has produced a new geological interpretation of the tenement area and highlights that historic anomalous gold results are largely confined to a northeast trending talc-chlorite schist unit situated between two sheared granodiorite units. The planned AC drilling program aims to test these structural targets looking for the surface expression of small high-grade shoots similar to other deposits along the Youanmi Shear Zone such as Penny West and North.

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Figure 3: Unaly Hill South Ground Magnetics RTP 1VD

Work is currently in progress to contract an AC rig for the program in order to commence once the Unaly Hill South PoW has been granted.

The Company looks forward to updating shareholders on these future plans in due course.

This Announcement has been approved for release by:

Caedmon Marriott Managing Director

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Figure 4: Geological Interpretation of Unaly Hill South

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About Aldoro Resources

Aldoro Resources Ltd is an ASX-listed (ASX:ARN) mineral exploration and development company. Aldoro has a collection of gold and nickel focussed advanced exploration projects all located in Western Australia. The company’s flagship gold project is the Penny South Gold Project, which is contiguous to Spectrum Metals (ASX:SPX) Penny West Project in the Youanmi Gold Mining District, in the Murchison Region of WA. Aldoro is also currently exploring the Cathedrals Belt Nickel Project and has a significant tenement holding surround St George Mining’s (ASX:SGQ) Mt Alexander Project. The company’s other projects include the Narndee Igneous Complex (Ni-CuPGM), Unaly Hill South (Au), Kiabye Well (Au), Leinster Nickel Project (Ni), Windimurra Igneous Complex (Ni-Cu-PGM, Li) and Ryans Find (Ni-Cu-PGM).

Competent Persons Statement

The information in this announcement that relates to Exploration Results and other technical information complies with the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code) and has been compiled and assessed under the supervision of Dr Caedmon Marriott, Managing Director of Aldoro Resources Ltd. Caedmon is a Member of the Australasian Institute of Mining and Metallurgy. He has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the JORC Code. Caedmon consents to the inclusion in this announcement of the matters based on his information in the form and context in which it appears.

Disclaimer

Some of the statements appearing in this announcement may be in the nature of forward looking statements. You should be aware that such statements are only predictions and are subject to inherent risks and uncertainties. Those risks and uncertainties include factors and risks specific to the industries in which Aldoro operates and proposes to operate as well as general economic conditions, prevailing exchange rates and interest rates and conditions in the financial markets, among other things. Actual events or results may differ materially from the events or results expressed or implied in any forward looking statement. No forward looking statement is a guarantee or representation as to future performance or any other future matters, which will be influenced by a number of factors and subject to various uncertainties and contingencies, many of which will be outside Aldoro’s control.

Aldoro does not undertake any obligation to update publicly or release any revisions to these forward looking statements to reflect events or circumstances after today's date or to reflect the occurrence of unanticipated events. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions or conclusions contained in this announcement. To the maximum extent permitted by law, none of Aldoro, its Directors, employees, advisors or agents, nor any other person, accepts any liability for any loss arising from the use of the information contained in this announcement. You are cautioned not to place undue reliance on any forward looking statement. The forward looking statements in this announcement reflect views held only as at the date of this announcement.

This announcement is not an offer, invitation or recommendation to subscribe for, or purchase securities by Aldoro. Nor does this announcement constitute investment or financial product advice (nor tax, accounting or legal advice) and is not intended to be used for the basis of making an investment decision. Investors should obtain their own advice before making any investment decision.

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Unaly Hill South Ground Magnetic Survey

JORC Code, 2012 Edition - Table 1 Section 1: Sampling Techniques and Data

Criteria	JORC Code explanation	Commentary
Sampling techniques	• Nature and quality of sampling (eg cut channels, random chips, or specifc specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling. • Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used. • Aspects of the determination of mineralisation that are Material to the Public Report. • In cases where ‘industry standard’ work has been done this would be relatively simple (eg ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fre assay’). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information.	• Ground magnetic survey undertaken using industry standard processes and equipment • Historic sampling at Unaly Hill South included soil geochemical sampling and rotary air blast (RAB) drilling using industry standard techniques at the time
Drilling techniques	• Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc).	• Shallow RAB drilling • Historical records on the drill details are limited with RAB drilling for gold by previous explorers using best practise at that time
Drill sample recovery	• Method of recording and assessing core and chip sample recoveries and results assessed. • Measures taken to maximise sample recovery and ensure representative nature of the samples. • Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fne/coarse material.	• No records available regarding historic sample recovery • No records available • Insufcient information available
Logging	• Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies. • Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography. • The total length and percentage of the relevant intersections logged.	• Geological logging was completed and is available in hard copy format suitable for frst pass exploration • Logging is qualitative in nature

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Criteria	JORC Code explanation	Commentary
Sub-sampling techniques and sample preparation	• If core, whether cut or sawn and whether quarter, half or all core taken. • If non-core, whether rifed, tube sampled, rotary split, etc and whether sampled wet or dry. • For all sample types, the nature, quality and appropriateness of the sample preparation technique. • Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples. • Measures taken to ensure that the sampling is representative of the in-situ material collected, including for instance results for feld duplicate/second-half sampling. • Whether sample sizes are appropriate to the grain size of the material being sampled.	• NA • RAB samples were composited from individual 1m samples into 4m composites • Sample preparation considered suitable as a frst pass exploration program to indicate zones for further testing • QAQC protocol are unknown • No information regarding homogenisation available
Quality of assay data and laboratory tests	• The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total. • For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc. • Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision have been established.	• Ground magnetic survey undertaken by Nomad Exploration Pty Ltd using a GEM Systems GSM-19WV Overhauser walking magnetometer and a GEM Systems GSM-19T Proton magnetometer as a base station to record and correct for diurnal variation. Walking magnetometer readings were collected at 1 second intervals whilst base station readings were taken at 20 second intervals • Historic QAQC and sampling protocols are unknown
Verifcation of sampling and assaying	• The verifcation of signifcant intersections by either independent or alternative company personnel. • The use of twinned holes. • Documentation of primary data, data entry procedures, data verifcation, data storage (physical and electronic) protocols. • Discuss any adjustment to assay data.	• Ground magnetic survey data collected on site and validated by geophysical technician daily. Raw data sent to consultant geophysicist for review, quality control and processing • All data stored in electronic format • No twin hole were drilled • Historic data primarily stored in hardcopy format • Not known whether any adjustments were made to historic assay data
Location of data points	• Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation. • Specifcation of the grid system used. • Quality and adequacy of topographic control.	• Walking magnetometer used inbuilt GPS unit with accuracy of +/-0.6m • Coordinates are in GDA94 Zone 50 • Accuracy and precision of historic drill holes is unknown • No detailed documentation regarding accuracy of topographic control
Data spacing and distribution	• Data spacing for reporting of Exploration Results. • Whether the data spacing and distribution is sufcient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifcations applied. • Whether sample compositing has been applied.	• Ground magnetic survey lines in E-W orientation with 50m spacing between lines • Historic RAB drill holes approximately 200m x 100m spacing • Not applicable as frst pass exploration drilling

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Criteria	JORC Code explanation	Commentary
Orientation of data in relation to geological structure	• Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type. • If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.	• G ro u n d m a g n e t i c s u r v e y o r i e n t a t i o n approximately orthogonal to possible structure • Historic RAB drill holes were vertical
Sample security	• The measures taken to ensure sample security.	• No records available
Audits or reviews	• The results of any audits or reviews of sampling techniques and data.	• Ground magnetic data reviewed by independent consultant

Section 2: Reporting of Exploration Results

Criteria	JORC Code explanation	Commentary
Mineral tenement and land tenure status	• Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings. • The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.	• Tenement E57/1048 (4 graticular blocks) • Held by Altilium Metals Pty Ltd, 100% owned subsidiary of Aldoro Resources Limited • GSR to original tenement holder • There are no Native Title interests associated with the tenement and no known historical or environmentally sensitive areas within the tenement area • Tenement is in good standing
Exploration done by other parties	• Acknowledgment and appraisal of exploration by other parties.	• Battle Mountain Australia undertook gold exploration in the Unaly area in 1995-1998 with soil sampling and vertical RAB drilling. They identifed a number of anomalous regolith prospects at 48000, Quebec and Alberta, but did not test these regolith anomalies at depth with RC drilling
Geology	• Deposit type, geological setting and style of mineralisation.	• The Unaly Hill South Project is located at the southern end of the Atley Igneous Complex, made up of layered mafc and ultramafc rocks. To the east of the Atley Complex is a sequence pf greenstone rocks, the north portion of the Youanmi-Yunmery Greenstone Belt, consisting of metamorphosed and sheared mafc rocks, intrusive and extrusive felsic rocks and minor BIF

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Criteria	JORC Code explanation	Commentary
Drill hole information	• A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes: • easting and northing of the drill hole collar • elevation or RL (Reduced Level – elevation above sea level in metres) of the drill hole collar • dip and azimuth of the hole • down hole length and interception depth hole length. • If the exclusion of this information is justifed on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.	• Historic drilling by previous explorers used best practice for that time. • The use of any data is recommended for indicative purposes only in terms of potential gold mineralisation and for developing exploration targets.
Data aggregation methods	• In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-of grades are usually Material and should be stated. • Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail. • The assumptions used for any reporting of metal equivalent values should be clearly stated.	• NA
Relationship between mineralisation widths and intercept lengths	• These relationships are particularly important in the reporting of Exploration Results. • If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported. • If it is not known and only the down hole lengths are reported, there should be a clear statement to this efect (eg ‘down hole length, true width not known’).	• NA
Diagrams	• Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any signifcant discovery being reported. These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.	• Image of RTP 1VD presented in the body of text
Balanced reporting	• Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.	• NA
Other substantive exploration data	• Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.	• NA

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Criteria	JORC Code explanation	Commentary
Further work	• The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling). • Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.	• Planned exploration will include aircore drilling • Exploration is at an early stage and future drilling areas will depend on interpretation of future results

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