DATELINE RESOURCES LIMITED — Capital/Financing Update 2021

Jun 7, 2021

ASX Release 8 June 2021

DATELINE RESOURCES LIMITED

(ACN 149 105 653) ASX Code: DTR

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ORE SORTING RESULTS MATERIALY INCREASE HEAD GRADES AT GOLD LINKS GOLD MINE

Highlights

• Gold grade per tonne increased by 41.6% from 15.34 to 21.71g/t Au;

• 49% of the sorted material reported as waste and contained less than 0.7g/t Au per mined tonne;

CAPITAL STRUCTURE

• Potential to enhance project dynamics by enabling mechanised mining;

Share Price (7/6/21) $0.085

$32.4 million

MAJOR SHAREHOLDERS

• Ore sorting compounds the benefits of reduced milling costs and increased gold grade.

Dateline Resources Limited (ASX: DTR) ( Dateline or the Company ) is pleased to report the second phase of ore sorting results for the Gold Links Gold Mine ( Gold Links ) in Colorado, USA.

The Company completed an ore sorting program with TOMRA to assess the potential of upgrading the ore prior to further processing through the Lucky Strike mill.

DIRECTORS & MANAGEMENT

Mark Johnson AO Chairman

Stephen Baghdadi Managing Director

Greg Hall Non-Executive Director

Tony Ferguson Non-Executive Director

Bill Lannen Non-Executive Director

John Smith Company Secretary

CONTACT John Smith Phone: +61 2 9375 2353 Postal Address: P.O. Box 553 South Hurstville NSW 2221 Email: info@datelineresources.com.au

A total of 849kg of material was transported to the TOMRA ore sorting facilities in Sydney. Two tests were conducted using both laser and XRT sorting technology with the XRT technology proving to be a better fit for the Gold Links project.

Table 1 below is a summary of the optimal test results received from the XRT sorter:

Process*	Run #	Rock size (mm)	Total mass (kg)	Mass in ore stream (kg)	Mass in waste stream (kg)	Grade in ore stream (g/t Au)
XRT-CON	Run 1	16-48	316	101	215	26.7
XRT-DE	Run 2	16-48	215	59	156	15.7
Unsorted (rock size less than 16mm)		<16	269	269		20.7
Total(kg)/Averageg/t Au			585	429	156	21.7

Table 1: Summary of optimal sort option using XRT method only

Commenting on the results, Managing Director, Stephen Baghdadi, said “The ore sorting results are in line with our expectations and have confirmed that the Gold Links ore is perfectly suited for this technology.

The sample head grade was increased by 41.6% to 21.7g/t Au. Approximately a third of the material was sorted to waste. The amount of gold that was left in the waste was 2.2g/t, which equates to less than 0.7g/t per mined tonne.

By upgrading high-grade material from the veins to an even higher grade significantly enhances the potential of Gold Links by reducing processing costs and increasing the returns per tonne.

The company intends to conduct an additional test to determine if the results can be further improved by using an ore sorter that is capable of both XRT and Laser in a single run”

ASX Release 8 June 2021

Ore Sorting Test-work

The ore sorting test-work was completed to determine the suitability of the Gold Links mineralised material to be upgraded using advanced ore sorting technology provided by TOMRA Sorting Australia (Appendix A).

These results are considered to be “proof-of-concept” tests by TOMRA and were conducted on a representative sample of mineralised material collected from Gold Links.

A total of 849kg of mineralised material was collected from Gold Links, with an aggregate grade of 15.34g/t Au. Further details of the sample preparation are provided below and in Table 2.

The ore sorting procedure requires an initial set-up of the ore sorter and calibration against proprietary image processing software. To achieve this, images were taken of the samples by subjecting them to “static” tests to determine their response to the TOMRA X-Ray Transmission ( XRT ) system. The X-ray sensor signal is a function of the sample atomic density and provides information on its composition. By combining two energy levels simultaneously, it is possible to differentiate particles by their relative atomic densities. Further details of the ore sorting technology and methodology are provided in Appendix A.

Assays were completed and provided by Bureau Veritas Adelaide.

For the purposes of the test-work, the sample was screened to 16-48mm and separated into a high-grade fines stream (not sorted) and two TOMRA Feed streams (Sample 1 – 316kg At 12.5g/t Au, Sample 2 – 264kg @ 13.2g/t Au). The TOMRA Feed was then sorted into concentrate (targeting galena) and waste streams, with the waste stream reprocessed again through the XRT targeting all sulphides. The upgrade factor, which includes the TOMRA concentrate stream as well as the high-grade bypass material, resulted in a gold upgrade of 41.6% , a decrease in sample mass of 33.7% , and a 2.6% loss in contained gold.

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Figure 1: TOMRA Testwork flow chart with sample weight (upper) and gold grade (lower), rounding has been applied

ASX Release 8 June 2021

The analytical results of the 2021 Gold Links ore sorting trial (optimal route) are presented below (Table 2):

Table 2: 2021 Gold Links Ore Sorting Trial Results – Optimal Path

Mass (kg)	Mass (kg)	Grade (g/t Au)	Gold (grams)
Feed from site sample	849	15.34	13.03
High-grade unsorted	269	20.70	5.57
TOMRA XRT-CON Feed – Sample 1	316	12.50	3.95
Sample 2 Feed (used in other runs)	264	13.20	3.48
XRT-CON Concentrate	101	26.70	2.70
XRT-CON Waste	215	5.90	1.27
TOMRA XRT-DE Feed	215	5.90	1.27
XRT-DE Concentrate	59	15.70	0.92
XRT-DE Waste	156	2.20	0.34
XRT-CON + XRT-DE Concentrate	160	22.65	3.62
TOMRA Upgrade	-49%	+81%	-8%
TOMRA Waste	156	2.20	0.34
Final Results – Optimal Path
	Mass (kg)	Grade (g/t Au)	Gold (grams)
Sample 1 Concentrate + High Grade Unsorted	-33.7%	+41.6%	-2.6%

Notes

• XRT-CON = X-ray process targeting galena

• XRT-DE = X-ray process targeting all sulphides

• Rounding has been applied

In addition to the optimal path presented in Table 2 above, additional testing was undertaken whereby the XRTDE waste stream was subjected to ore sorting using the Laser technology. Sample 2 was analysed with Laser first before the XRT-CON and XRT-DE analyses. Details of all the various runs is included as Appendix B.

Implications

The Company’s 100%-owned Lucky Strike processing facility is located 50km via road from the Gold Links Gold Mine. Lucky Strike was recommissioned in 2019 with a throughput capacity of 33,000tpa. The plant includes a primary circuit for the extraction of nuggety or free gold from the veins. A secondary flotation circuit allows for the production of a gold-silver-lead concentrate.

By implementing x-ray ore sorting technology after primary crushing, the tonnage going into the primary and secondary circuits may be materially increased by ~33%. For Dateline, this translates into the ability to mine and transport up to 45,000tpa to Lucky Strike for processing through the 33,000tpa plant.

Subject to further analysis and modelling, there is the potential to increase future gold production by 40% compared to not installing ore sorting technology.

ASX Release 8 June 2021

Next Steps

Following the test program, the Company has commenced discussions with various suppliers of ore sorting equipment with regards to purchase/lease options. Further test work will also be undertaken with alternative units that includes XRT and Laser in a single unit to improve recovery.

Authorised by the Board of Dateline Resources Limited.

Competent Person Statement

Sample preparation and any exploration information in this announcement is based upon work supervised by Mr David Heyl a qualified geologist who was an employee of CRG Mining LLC which is a 100% owned subsidiary of Dateline Resources Limited. This information was reviewed by Mr Greg Hall who is a Chartered Professional of the Australasian Institute of Mining and Metallurgy (CP-IMM). Mr Hall has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to quality as a Competent Person as defined in the 2012 Edition of the "Australasian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves" (JORC Code). Mr Hall is a Non-Executive Director of Dateline Resources Limited and consents to the inclusion in the report of the matters based on this information in the form and context in which it appears.

For more information, please contact:

Stephen Baghdadi Managing Director +61 2 9375 2353 www.datelineresources.com.au

Follow Dateline on Twitter: https://twitter.com/Dateline_DTR

About Dateline Resources Limited

Dateline Resources Limited (ASX: DTR) is an Australian publicly listed company focused on gold mining and exploration in North America. The Company owns 100% of the Gold Links and Green Mountain Projects in Colorado, USA and has an agreement to acquire 100% of the Colosseum Gold Mine in California.

The Gold Links Gold Mine is a historic high-grade gold mining project where over 150,000 ounces of gold was mined from high-grade veins. Mineralisation can be traced on surface and underground for almost 6km from the Northern to the Southern sections of the project. The Company aims to delineate sufficient Mineral Resources to commence a small high-grade, low-cost operation by the end of 2021.

The Company owns the Lucky Strike gold mill, located 50km within the Green Mountain Project. It is proposed that ore from Gold Links would be transported to Lucky Strike for processing.

The Colosseum Gold Mine is located in the Walker Lane Trend in East San Bernardino County, California and produced approximately 344,000 ounces of gold (see ASX release 15 March 2021). Significant potential remains for extension to mineralization at depth.

ASX Release 8 June 2021

APPENDIX A

TOMRA XRT Technology

A proportion of material mined (Run-of-Mine or ROM) is typically worthless (waste), and must be transported, crushed, milled, classified before reporting to the hydrometallurgical portion of a mining project process flow sheet. Removing that waste component after primary crushing can result in material savings.

Bulk ore sorting is a proven pre-concentration technology in which barren gangue is separated from mineralised material based on grade measured or inferred from a sensor measurement.

TOMRA is specialised in sensor-based sorting techniques, an umbrella term for all applications where particles are individually detected by a sensor and rejected by an amplified mechanical, hydraulic or pneumatic process.

TOMRA has over 20 years’ experience in ore sorting and is familiar with many ore types and sorting applications and is the world market leader in this area. The sensor(s) used to support the sorting process can rely on the detection of sample colour, transparency, near-infrared, radiometric or electromagnetic signature, X-Ray fluorescence, X-Ray transmission, with the option to combined multiple sensors to achieve optimal results.

The key benefits of an upfront bulk ore sorting circuit in operation include lower process throughputs, lower reagent costs associated with higher feed grade, lower consumption of water, power and environmental benefits such as lower tailings generation. Those benefits combined usually result in lower operating and capital costs.

The technology is based on industry proven, high capacity industrial sorting machines commercially available, and works much faster than traditional sorting technologies.

Test equipment

XRT

Data for the trial reported was collected using TOMRA’s COM X-Ray transmission (XRT) system, which uses a broadband electrical X-ray source. The COM series sorting equipment covers the range of applications which require a belt feeding system. This allows the presentation of a non-uniform feed, with particles stabilising on the belt before scanning by the sensor(s).

The X-ray sensor system below the material produces a digital image of the material, using two different energy bands. The X-ray attenuation through the material is different within the two bands and depends on both, the material thickness and atomic density. Special transformation of the attenuation images of the two bands classifies each pixel per the measured atomic density. Because the X-rays pass through the particles and are a measure of the attenuation through the entire rock, XRT separation is independent of surface quality of the material or its moisture. Surface properties such as colour and texture and/or contaminations such as dirt, dust, paint, etc. are irrelevant to the detection.

Laser

Various analyses were also undertaken utilising Laser technology, also by TOMRA.

The LASER identification technology consists of a multi-channel LASER scanning system with high resolution and cutting-edge color and structure selectivity. Multiple material characteristics such as brightness, color, size, shape and surface structure are processed at the simultaneously. The machine can be quickly optimized for the required sorting tasks by the selection of sorting programs and sensitivity adjustments.

ASX Release 8 June 2021

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Figure 2: Typical TOMRA ore sorting equipment

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Figure 3: Tomra[TM] ore sorting schematic

ASX Release 8 June 2021

APPENDIX B

Testwork Program

The Gold Links test work program involved the collection and assessment by Bureau Veritas of 849kg of mineralised sample from the Gold Links Gold Mine in Colorado. The material was crushed and screened (to 16-48mm), with 316kg grading 12.5g/t Au was assessed in the first sample, with 264kg grading 13.2g/t Au in the second one. A further 269kg grading 20.7g/t Au represented the fines material below 16mm that would not be sorted and instead fed directly into the mill. For the analysis, the fines material was proportionally associated with Sample 1 and Sample 2.

Analysis 1

For sample 1 (316kg grading 12.5g/t Au), the sample was initially run through the Tomra[T] [M] x-ray sorter to separate galena (run 1) and the waste stream was subsequently run through again to separate all sulphides (run 2).

Run #	Process*	Total mass (kg)	Mass in ore stream (kg)	Mass in waste stream (kg)	Grade in ore stream (g/t Au)	Grade in waste stream (g/t Au)
Run 1	XRT-CON	316	101	215	26.7	5.9
Run 2	XRT-DE	215	59	156	15.7	2.2

• XRT-CON (x-ray process targeting galena), XRT-DE (x-ray process targeting all sulphides)

This test showed that when included with the separated fines material, the integration of a Tomra[T] [M] x-ray sorter into the flow sheet would result in a 32% feed grade improvement and a 28% reduction in the feed tonnage to the mill.

Analysis 2

For Analysis 2, the waste material produced from Analysis 1 was then passed through the laser separator (run 3) to separate out all material containing quartz. This test was designed to determine how much additional product could be recovered by integrating a laser sorter unit to the process in Analysis 1.

Run #	Process*	Total mass (kg)	Mass in ore stream (kg)	Mass in waste stream (kg)	Grade in ore stream (g/t Au)	Grade in waste stream (g/t Au)
Run 1	XRT-CON	316	101	215	26.7	5.9
Run 2	XRT-DE	215	59	156	15.7	2.2
Run 3	LASER	156	72	84	4.0	0.6

• XRT-CON (x-ray process targeting galena), XRT-DE (x-ray process targeting all sulphides), LASER (laser process targeting quartz)

This test indicated that there while the laser did extract additional gold and the eventual waste stream only contained low gold levels (0.6g/t Au), the additional tonnes that would need to be processed through the plant made it less efficient than Analysis 1.

ASX Release 8 June 2021

Analysis 3

In Analysis 3, the second crushed and screened sample (264kg grading 13.2g/t Au) was processed through the laser analysis first and then the two x-ray sorter runs (i.e. reverse order) to assess the impact of the laser if run before the x-ray sorter runs.

Run #	Process*	Total mass (kg)	Mass in ore stream (kg)	Mass in waste stream (kg)	Grade in ore stream (g/t Au)	Grade in waste stream (g/t Au)
Run 4	LASER	264	127	137	21.4	5.6
Run 5	XRT-CON	137	30	107	15.7	2.8
Run 6	XRT-DE	107	32	75	6.5	1.3

• XRT-CON (x-ray process targeting galena), XRT-DE (x-ray process targeting all sulphides), LASER (laser process targeting quartz)

This test showed the laser at the start of the process was less efficient than Analyses 1 and 2. Analysis 3 resulted in a 17% increase in feed grade, however the feed tonnes were only reduced by 13%.

Results Summary

The x-ray ore sorting and laser sorting techniques are two separate processes that require individual pieces of equipment. The laser process requires the sample to be washed prior to analysis, whereas the x-ray sorter does not.

The results indicate that there is a benefit to running the samples through the two processes, however the first analysis shows that ~96% of the gold can be recovered using the Tomra[TM] x-ray ore sorter alone. Whilst the laser process increases the recovery up to ~99%, it results in an additional 10% of sample mass needing to be processed through the Lucky Strike processing plant compared to x-ray alone. Additionally, as the laser process requires washing of the ore, this may be problematic in practice given the very low (below freezing) temperatures in winter in Colorado.

ASX Release 8 June 2021

JORC Code, 2012 Edition – Table 1 report template

Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections.)

Criteria	JORC Code explanation	Commentary
Sampling	• Nature and quality of sampling (e.g. cut	•A total of 849kg was sampled by mining a five
techniques	channels, random chips, or specific	foot section of the vein that is located
	specialised industry standard	underground at the Gold Links at 9900rl. The
	measurement tools appropriate to the	sample included 100% of the vein material plus
	minerals under investigation, such as	an equal amount either side of the vein so that it
	down hole gamma sondes, or handheld	represented a mechanized mining width of 5
	XRF instruments, etc.). These examples	feet.
	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 (e.g. ‘reverse circulation drilling
	was used to obtain 1 m samples from
	which 3 kg was pulverised to produce a
	30 g charge for fire 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 (e.g. submarine
	nodules) may warrant disclosure of
	detailed information.
Drilling	• Drill type (e.g. core, reverse circulation,
techniques	open-hole hammer, rotary air blast,
	auger, Bangka, sonic, etc.) and details
	(e.g. 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.).
Drill sample	• Method of recording and assessing core
recovery	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
	fine/coarse material.

ASX Release 8 June 2021

Criteria		JORC Code explanation	Commentary
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.
Sub-sampling		• If core, whether cut or sawn and
techniques	and	whether quarter, half or all core
sample		taken.
preparation		• If non-core, whether riffled, 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 field duplicate/second-half
		sampling.
		• Whether sample sizes are appropriate to
		the grain size of the material being
		sampled.
Quality of		• The nature, quality and appropriateness
assay data		of the assaying and laboratory
and		procedures used and whether the
laboratory		technique is considered partial or total.
tests		• 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 (e.g. standards, blanks,
		duplicates, external laboratory checks)
		and whether acceptable levels of accuracy
		(i.e. lack of bias) and precision have been
		established.
Verification	of	• The verification of significant
sampling	and	intersections by either independent or
assaying		alternative company personnel.
		• The use of twinned holes.
		• Documentation of primary data,
		data entry procedures, data
		verification, data storage
		(physical and electronic)
		protocols.
		• Discuss any adjustment to assay data.

ASX Release 8 June 2021

Criteria	JORC Code explanation	Commentary
Location of	• Accuracy and quality of surveys used to
data points	locate drill holes (collar and down-hole
	surveys), trenches, mine workings and
	other locations used in Mineral Resource
	estimation.
	• Specification of the grid system used.
	• Quality and adequacy of topographic
	control.
Data spacing	• Data spacing for reporting of Exploration
and	Results.
distribution	• Whether the data spacing and distribution
	is sufficient to establish the degree of
	geological and grade continuity
	appropriate for the Mineral Resource and
	Ore Reserve estimation procedure(s) and
	classifications applied.
	• Whether sample compositing has been
	applied.
Orientation of	• Whether the orientation of sampling
data in relation	achieves unbiased sampling of possible
to geological	structures and the extent to which this is
structure	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.
Sample	• The measures taken to ensure sample	A full chain of custody was maintained during
security	security.	sampling and dispatch. Packing of the sample
		was in 4 x 200ltres sealed drums and
		delivered directly to the Tomra ore sorting
		facility in Sydney. Once the sorting was
		concluded the samples were sent directly to
		Bureau Veritas labs in Adelaide for assaying.
Audits or	• The results of any audits or reviews of
reviews	sampling techniques and data.