BEACON MINERALS LIMITED — M&A Activity 2021

Aug 23, 2021

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ASX ANNOUNCEMENT

24 August 2021

BEACON ACQUIRES MACPHERSONS REWARD PROJECT

Beacon Minerals Limited (ASX: BCN) ( BCN or the Company ) is pleased to announce that it has entered into an agreement with Primary Gold Pty Ltd ( Primary Gold ) whereby Beacon Mining Pty Ltd ( Beacon Mining ) is to acquire all of the shares in the capital of Macphersons Reward Pty Ltd ( MacPhersons Reward ).

Execution and completion of the agreement with Primary Gold occurred simultaneously.

HIGHLIGHTS

• Beacon Mining has acquired a 100% interest in the MacPhersons Reward Project, located 45km southeast of the Jaurdi Gold Project for a cash consideration of $14.0 million.

• Mineral Resources have previously been declared at four prospects within the MacPhersons Reward Project area.

• 21km² of prospective tenements including 6 granted mining leases. There is significant upside for additional discovery.

• Granted mining permits exist over the MacPhersons Reward, A‐Cap and Tycho gold deposits.

• Conceptual open pit mining studies by Primary Gold in 2017 and 2020 delivered positive results based on use of third party toll milling facilities.

• The tenement assets are mine ready, with all the mining permits granted.

The MacPhersons Reward Project is located 45km southeast of the Company’s Jaurdi Gold Project and 5km southeast of the Coolgardie township. The acquisition of MacPhersons Reward represents an important strategic opportunity for Beacon to optimise the value of its existing infrastructure and capture significant operational synergies.

The MacPhersons Reward Project consists of:

• Six granted mining leases.

• Two pending mining leases.

• Nine prospecting licences (One pending extension)

• Three miscellaneous licences.

A full description of tenements is set out in Appendix 1.

BEACON MINERALS LIMITED ACN 119 611 559 Registered Address 144 Vivian Street, Boulder, WA 6432 Website www.beaconminerals.com Phone 08 9093 2477

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Managing Director/Chairman Graham McGarry comments on the Acquisition:

“The assets are in close proximity to Beacon’s Jaurdi Gold Project with all the key mining operations and identified ore bodies located within 45km of the Jaurdi Mill.

"This is a pivotal transaction that will significantly increase the mine life at the Jaurdi Gold Project.”

Coolgardie Gold Project

The Coolgardie Gold Project is located 5km southeast of the Coolgardie township.

Both JORC 2012, and non‐JORC compliant resources, reserves and conceptual mining studies have previously been reported at the MacPhersons Reward and Tycho project areas. To date, Beacon has conducted significant due diligence into the historically reported resources, however the Company has not undertaken independent verification of these resources and reserves and will not publicly report them until and subject to, the Company undertaking its own assessment of the resources, reserves, and underlying exploration results and will complete an updated JORC 2012 compliant Mineral Resource Estimation for each deposit.

In 2017, Primary Gold Limited completed a JORC 2012 compliant resource, reserve, and conceptual mining study. Readers wishing to view the original announcement can refer to Primary Gold Limited’s ASX announcement titled “ Ore Reserve Estimate and Positive Pre‐Feasibility Study Results for The Coolgardie Project” from 17 October 2017.

In 2018, Primary Gold Limited was purchased by Hanking Australia Investments Pty Ltd. A further 118 RC drill holes for 16km were completed between 2018 and 2020, followed by a non JORC compliant resource released to the Hong Kong stock exchange. Readers wishing to view this announcement can refer to China Hanking Holding Pty Ltd announcement titled “ Inside Information 73% Increase in Gold Resources at the Coolgardie Gold Project in Western Australia.” from 2 December 2020.

BEACON MINERALS LIMITED ACN 119 611 559 Registered Address 144 Vivian Street, Boulder, WA 6432 Website www.beaconminerals.com Phone 08 9093 2477

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Figure 1: The location of the Jaurdi Gold Project (JGP) and newly acquired MacPhersons Reward Project (MRP) 45km to the southeast.

The MacPhersons Reward Project encompasses the Hampton ultramafic sequence on the southern limb of the Tindals anticline and is bound by the Lindsays Basalt to the West and Gleesons Basalt to the East. The Hampton Ultramafic sequence hosts several historic mines including Surprise, Barbara, Shirl, 28 Pit, Noble 5. The main MacPhersons Reward and A‐Cap deposits are hosted within an intrusive Tonalite along the western Mafic‐Ultramafic contact.

BEACON MINERALS LIMITED ACN 119 611 559 Registered Address 144 Vivian Street, Boulder, WA 6432 Website www.beaconminerals.com Phone 08 9093 2477

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Figure 2: Geology of the MacPhersons Reward Project

Gold mineralisation at the MacPhersons, A‐Cap and Tycho projects have been delineated by a significant amount of drilling. Pumphreys, Queenslander, Bakers and Franks Find require further drilling.

BEACON MINERALS LIMITED ACN 119 611 559 Registered Address 144 Vivian Street, Boulder, WA 6432 Website www.beaconminerals.com Phone 08 9093 2477

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Figure 3: SW‐NE Long Section of The MacPhersons Reward, A‐Cap and Pumphreys deposits showing interpreted mineralisation and drill holes.

Acquisition Details

Beacon Minerals and Beacon Mining have entered into a share sale agreement with Primary Gold pursuant to which Beacon Mining has agreed to purchase, and Primary Gold has agreed to sell, all of the shares in the capital of MacPhersons Reward ( The Acquisition ). MacPhersons Reward holds a 100% interest in the tenement assets.

Prior to resolving to proceed with the Acquisition, the Company undertook appropriate due diligence enquiries into the tenements set out in Appendix 1 the assets and liabilities, financial position and performance of Primary Gold, and are satisfied that the Acquisition is in the interests of BCN and its shareholders.

The consideration for the Acquisition is A$14.0 million in cash. This was paid on 23 August 2021 on completion of the Transaction. Execution of the share sale agreement and completion of the Acquisition occurred simultaneously with the consideration for the Acquisition being funded from the Company’s current cash reserves.

BEACON MINERALS LIMITED ACN 119 611 559 Registered Address 144 Vivian Street, Boulder, WA 6432 Website www.beaconminerals.com Phone 08 9093 2477

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Forward Plan

Over the short to mid‐term the Company intends to undertake the following on the MacPhersons Reward Project:

• Review of exploration results and associated data.

• Complete JORC 2012 compliant Mineral Resource Estimations.

• Review and generate exploration and resource definition targets.

• Complete JORC 2012 compliant reserve and feasibility studies.

Authorised for release by the Board of Beacon Minerals Limited.

For more information contact:

Graham McGarry Geoffrey Greenhill Managing Director/Chairman Non‐Executive Director Beacon Minerals Ltd Beacon Minerals Ltd M: 0459 240 379 M: 0419 991 713

Disclaimer

This ASX announcement (Announcement) has been prepared by Beacon Minerals Limited (“Beacon” or “the Company”). It should not be considered as an offer or invitation to subscribe for or purchase any securities in the Company or as an inducement to make an offer or invitation with respect to those securities. No agreement to subscribe for securities in the Company will be entered into on the basis of this Announcement.

This Announcement contains summary information about Beacon, its subsidiaries and their activities which is current as at the date of this Announcement. The information in this Announcement is of a general nature and does not purport to be complete nor does it contain all the information which a prospective investor may require in evaluating a possible investment in Beacon.

By its very nature exploration for minerals is a high risk business and is not suitable for certain investors. Beacon’s securities are speculative. Potential investors should consult their stockbroker or financial advisor. There are a number of risks, both specific to Beacon and of a general nature which may affect the future operating and financial performance of Beacon and the value of an investment in Beacon including but not limited to economic conditions, stock market fluctuations, gold price movements, regional infrastructure constraints, timing of approvals from relevant authorities, regulatory risks, operational risks and reliance on key personnel.

Certain statements contained in this announcement, including information as to the future financial or operating performance of Beacon and its projects, are forward‐looking statements that:

• may include, among other things, statements regarding targets, estimates and assumptions in respect of mineral reserves and mineral resources and anticipated grades and recovery rates, production and prices, recovery costs and results, capital expenditures, and are or may be based on assumptions and estimates related to future technical, economic, market, political, social and other conditions;

• are necessarily based upon a number of estimates and assumptions that, while considered reasonable by Beacon, are inherently subject to significant technical, business, economic, competitive, political and social uncertainties and contingencies; and,

• involve known and unknown risks and uncertainties that could cause actual events or results to differ

BEACON MINERALS LIMITED ACN 119 611 559

Registered Address 144 Vivian Street, Boulder, WA 6432 Website www.beaconminerals.com Phone 08 9093 2477

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materially from estimated or anticipated events or results reflected in such forward‐looking statements.

Beacon disclaims any intent or obligation to update publicly any forward‐looking statements, whether as a result of new information, future events or results or otherwise. The words ‘believe’, ‘expect’, ‘anticipate’, ‘indicate’, ‘contemplate’, ‘target’, ‘plan’, ‘intends’, ‘continue’, ‘budget’, ‘estimate’, ‘may’, ‘will’, ‘schedule’ and similar expressions identify forward‐looking statements.

All forward looking statements made in this announcement are qualified by the foregoing cautionary statements. Investors are cautioned that forward‐looking statements are not guarantees of future performance and accordingly investors are cautioned not to put undue reliance on forward‐looking statements due to the inherent uncertainty therein. No verification: Although all reasonable care has been undertaken to ensure that the facts and opinions given in this Announcement are accurate, the information provided in this Announcement has not been independently verified.

BEACON MINERALS LIMITED ACN 119 611 559 Registered Address 144 Vivian Street, Boulder, WA 6432 Website www.beaconminerals.com Phone 08 9093 2477

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APPENDIX 1

Part 1 – Tenements

No.	Type of tenement	Tenement No.	Status	Registered and Beneficial Holder (%)
1.	Miscellaneous Licence	L15/312	Live	Company 100%
2.	Miscellaneous Licence	L15/352	Live	Company 100%
3.	Miscellaneous Licence	L15/375	Live	Company 100%
4.	Mining Lease	M15/128	Live	Company 100%
5.	Mining Lease	M15/133	Live	Company 100%
6.	Mining Lease	M15/147	Live	Company 100%
7.	Mining Lease	M15/148	Live	Company 100%
8.	Mining Lease	M15/1808	Live	Company 100%
9.	Mining Lease	M15/40	Live	Company 100%
10.	Prospecting Licence	P15/5719	Live	Company 100%
11.	Prospecting Licence	P15/5722	Live	Company 100%
12.	Prospecting Licence	P15/5892	Live	Company 100%
13.	Prospecting Licence	P15/5901	Live	Company 100%
14.	Prospecting Licence	P15/5902	Live	Company 100%
15.	Prospecting Licence	P15/6071	Live	Company 100%
16.	Prospecting Licence	P15/6085	Live	Company 100%
17.	Prospecting Licence	P15/6086	Live	Company 100%
18.	Prospecting Licence	P15/6087	Live	Company 100%
19.	Prospecting Licence	P15/6088	Live	Company 100%
20.	Prospecting Licence	P15/6089	Live	Company 100%
21.	Prospecting Licence	P15/6090	Live	Company 100%

Part 2 – Pending Applications

No.	Type of tenement	Tenement No.	Status	Applicant (%)
1.	Mining Lease	M15/1838	Pending	Company (100%)
2.	Mining Lease	M15/1858	Pending	Company (100%)
3.	Mining Lease	M15/1888	Pending	Company (100%)
4.	Prospecting Licence	P15/6409	Pending	Company (100%)

BEACON MINERALS LIMITED ACN 119 611 559 Registered Address 144 Vivian Street, Boulder, WA 6432 Website www.beaconminerals.com Phone 08 9093 2477

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