FALCON METALS LTD — Capital/Financing Update 2024

Jan 10, 2024

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ASX / Media Announcement
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11 January 2024

FIRST EVER DRILLING AT THE BAMGANIE GOLD PROSPECT CONFIRMS 1KM LONG TREND

• Assay results received for the first ever drilling completed at the historical high-grade Bamganie Goldfield:

• Highly anomalous aircore results returned along a mineralised trend over 1km in strike length, as well as additional mineralised zones away from known workings, with highlights including:

  • BAAC0032* 8m @ 6.22g/t Au from 29m; including

    • 5m @ 9.77g/t Au from 32m; that also includes

      • 2m @ 20.02g/t Au from 32m

*Hole terminated in historical mine workings at 37m

  - **BAAC0007 25m @ 0.29g/t Au from 98m to end of hole; including**

     - **1m @ 1.45g/t Au from 120m**

  - **BAAC0033 13m @ 0.56g/t Au from 99m; including**

     - **1m @ 1.93g/t Au from 99m, and**

     - **3m @ 1.34g/t Au from 107m**

  - **BAAC0036 2m @ 2.66g/t Au from16m; including**

     - **1m @ 5.14g/t Au from 16m**

  - **BAAC0044 13m @ 0.42g/t Au from 45m; including**

     - **2m @ 1.59g/t Au from 51m**

     - **13m @ 0.51g/t Au from 95m; including**

     - **3m @ 1.73g/t Au from 95m**

• Additional aircore drilling is planned to test for extensions to identified zones and to assist in targeting for potential diamond drilling

• Infill drilling near Kerang intersected mineralisation 830m south of previous intercept in PHAC1396 (5m @ 0.54g/t Au from 118m[1] ):

  • PHAC1826 2m @ 0.47g/t Au from 105m; and

3m @ 0.46g/t Au from 127m

• Regional reconnaissance aircore drilling ongoing including programs near Cohuna, Pyramid Hill and Maryborough

Falcon Metals Limited ( ASX: FAL ) ( “Falcon” or “the Company” ) advises that it has completed 236 aircore (AC) holes for a total of 15,886m during the December quarter at the Pyramid Hill Project in Victoria, Australia (see Figure 1). The drilling program involved 159 holes for a total of 12,425m focused on gold exploration and 77 holes for a total of 3,461m focused on mineral sands and associated Rare Earths Elements (REE) exploration. Assay results relating to the gold exploration for 72 holes have been received with remaining gold and mineral sands results expected later this quarter.

1 ASX announcement “Targets Upgraded at the Pyramid Hill Gold Project” dated 14 June 2023

Falcon Metals Limited ASX: FAL Level 6, 350 Collins St, Melbourne VIC 3000 PO Box 106, Flinders Lane VIC 8009

T : +61 3 8648 6684 E : info@falconmetals.com.au www.falconmetals.com.au ABN 87 651 893 097

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Figure 1 Plan map showing the locations of Falcon’s key prospects and tenure status.

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Bamganie Reconnaissance AC Drilling

The gold exploration drilling completed during the December Quarter included the first ever drilling at the Bamganie Gold Prospect located 35km southeast of the 14Moz Ballarat Goldfield. Bamganie is a historical goldfield that was mined in the early 1900’s, with workings extending over 2.5km of strike length. No drilling has ever been completed at the prospect, however the extent of historical workings makes it of interest to Falcon.

Falcon completed 56 holes for 3,452m of AC drilling at Bamganie targeting an area of historical gold workings and a north-south striking gold-in-soil anomaly that had been defined by an extensive soil sampling program completed in the 1990’s by previous explorers. The Falcon drilling successfully defined a mineralised corridor of abundant quartz veining and sulphides across a strike length of over 1km that is open to the north and south (Figure 2). An additional trend to the east of the main mineralised zone was also detected in several drillholes which highlights the potential for parallel structures.

The best result from the current program was from BAAC0032, located closest to the Duke of Wellington shaft that was the most productive mine on the goldfield. This was mined from 1901-1909 and official production figures were 17,945 oz at a grade of 12.1g/t Au[1] . BAAC0032 intersected a highgrade zone prior to entering a void from historical underground mine workings at 37m as shown in Figure 3.

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In the section 250m north of BAAC0032, broad mineralised zones were intersected at the base of BAAC0001 and BAAC0007 (Figure 4) with both holes ending in mineralisation.

• BAAC0001 16m @ 0.30g/t Au from 101m to end of hole; including ▪ 1m @ 1.12g/t Au from 106m, and ▪ 1m @ 1.04g/t Au from 116m to end of hole • BAAC0007 25m @ 0.29g/t Au from 98m to end of hole; including ▪ 1m @ 1.45g/t Au from 120m

Interpretation is ongoing along with planning for additional aircore drilling to better define the mineralised zones and additional testing along strike to the north and south, which remain open. Once this is completed it is likely that diamond drilling will be required to gain a better understanding on the controls of mineralisation and to test the prospect at depth.

1 Geological Survey of Victoria Technical Record 2011/3 pp21-22

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Figure 2 Plan map showing Bamganie aircore drilling results

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Figure 3 Cross-section A-A' through Bamganie

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Figure 4 Cross-section B-B' through Bamganie

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Infill Drilling

Several targets generated from Falcon’s ongoing regional reconnaissance program were prioritised for infill drilling during the quarter:

• EL6669 near Kerang (six holes);

• EL6960 near Eddington, east of Maryborough (ten holes); and

• EL6737 at the Wandoo Prospect, west of Bendigo (eight holes).

Results have been received from the one line of six holes of infill drilling completed in EL6669, near the town of Kerang. These six holes were drilled on 140m spacing E-W, 830m south of anomalous holes PHAC1390 (3m @ 0.39g/t Au from 85m) and PHAC1396 (5m @ 0.54g/t Au from 118m)[1] , extending the mineralised trend on this permit. Drillhole PHAC1826 returned 2m @ 0.46g/t Au from 105m and 3m @ 0.44g/t Au from 127m, with the trend remaining open to the north and south (see Figure 5). This area will be a focus for further infill and extensional drilling.

Results are still pending for the Eddington and Wandoo drilling which are expected in February 2024.

Regional Reconnaissance AC Drilling

Reconnaissance drilling is ongoing across the Pyramid Hill Project and is an important part of the Falcon strategy in discovering large scale gold deposits in Victoria. This also included the testing of several magnetic features identified from the detailed drone magnetics completed in 2022. The regional program in the December Quarter focused on extending the sampling south from Eddington in EL6960 and EL7656 and drilling to the north of Bendigo in areas with shallow cover. Assay results are expected by February 2024.

The current focus for AC drilling is near the towns of Cohuna, Pyramid Hill and Maryborough.

Mineral Sands Exploration

A review of the northern tenements in the Pyramid Hill Project for mineral sands prospectivity identified areas within EL6864 and EL7120 that warranted drill testing. This initial phase of drilling involved 77 holes for a total of 3,461m focused on mineral sands and associated REE. Samples are presently at the laboratory to undergo heavy mineral separation and results will be reported once available, which is expected later this quarter.

1 ASX announcement “Targets Upgraded at the Pyramid Hill Gold Project” dated 14 June 2023

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Figure 5 Plan map showing new drill results on EL6669

This announcement has been approved for release by the Board of Falcon Metals. For more information, please contact:

Tim Markwell Media and Investor Queries Managing Director Ben Creagh tmarkwell@falconmetals.com.au benc@nwrcommunications.com.au

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COMPETENT PERSON STATEMENT:

The information contained within this announcement relates to exploration results based on and fairly represents information compiled and reviewed by Mr Doug Winzar who is a Member of the Australian Institute of Geoscientists. Mr Winzar is a fulltime employee of Falcon Metals Limited and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 edition of the “Australian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves”. Mr Winzar consents to the inclusion in the documents of the matters based on this information in the form and context in which it appears.

FORWARD LOOKING STATEMENT:

This announcement may contain certain forward-looking statements, guidance, forecasts, estimates, prospects, projections or statements in relation to future matters that may involve risks or uncertainties and may involve significant items of subjective judgement and assumptions of future events that may or may not eventuate (Forward Statements). Forward Statements can generally be identified by the use of forward looking words such as "anticipate", "estimates", "will", "should", "could", "may", "expects", "plans", "forecast", "target" or similar expressions and may include, without limitation, statements regarding plans, strategies and objectives of management, anticipated production and expected costs. Indications of, and guidance on future earnings, cash flows, costs, financial position and performance are also forward looking statements. Forward looking statements, opinions and estimates included in this announcement are based on assumptions and contingencies which are subject to change, without notice, as are statements about market and industry trends, which are based on interpretation of current market conditions. Forward looking statements are provided as a general guide only and should not be relied on as a guarantee of future performance.

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APPENDIX 1: Details for aircore drill holes with results available in this announcement

		Easting	Northing	RL			Azimuth	Dip	Depth
Prospect	Hole ID				Zone	Grid
		(m)	(m)	(m)			UTM(°)	(°)	(m)
Bamganie	BAAC0001	239037	5804437	332	55	GDA94	0	-90	117
Bamganie	BAAC0002	239104	5804427	335	55	GDA94	0	-90	120
Bamganie	BAAC0003	239174	5804417	335	55	GDA94	0	-90	38
Bamganie	BAAC0004	239250	5804413	333	55	GDA94	0	-90	36
Bamganie	BAAC0005	239337	5804407	331	55	GDA94	0	-90	49
Bamganie	BAAC0006	239456	5804392	329	55	GDA94	0	-90	39
Bamganie	BAAC0007	239065	5804441	334	55	GDA94	0	-90	123
Bamganie	BAAC0008	238952	5804441	333	55	GDA94	0	-90	72
Bamganie	BAAC0009	238806	5804450	341	55	GDA94	0	-90	38
Bamganie	BAAC0010	238650	5804466	353	55	GDA94	0	-90	75
Bamganie	BAAC0011	238583	5804477	356	55	GDA94	0	-90	22
Bamganie	BAAC0012	238513	5804488	360	55	GDA94	0	-90	52
Bamganie	BAAC0013	238448	5804493	363	55	GDA94	0	-90	49
Bamganie	BAAC0014	238982	5803965	351	55	GDA94	0	-90	102
Bamganie	BAAC0015	239060	5803948	349	55	GDA94	0	-90	96
Bamganie	BAAC0016	239137	5803943	344	55	GDA94	0	-90	44
Bamganie	BAAC0017	239202	5803930	340	55	GDA94	0	-90	33
Bamganie	BAAC0018	239287	5803923	336	55	GDA94	0	-90	52
Bamganie	BAAC0019	239357	5803917	332	55	GDA94	0	-90	50
Bamganie	BAAC0020	239407	5803892	332	55	GDA94	0	-90	50
Bamganie	BAAC0021	239316	5803927	334	55	GDA94	0	-90	56
Bamganie	BAAC0022	239253	5803930	338	55	GDA94	0	-90	36
Bamganie	BAAC0023	239142	5804420	336	55	GDA94	0	-90	85
Bamganie	BAAC0024	239021	5803959	350	55	GDA94	0	-90	117
Bamganie	BAAC0025	238829	5803968	353	55	GDA94	0	-90	45
Bamganie	BAAC0026	238677	5803995	362	55	GDA94	0	-90	26
Bamganie	BAAC0027	238610	5804001	365	55	GDA94	0	-90	25
Bamganie	BAAC0028	238541	5804006	368	55	GDA94	0	-90	60
Bamganie	BAAC0029	238706	5802974	325	55	GDA94	0	-90	56
Bamganie	BAAC0030	238644	5802980	329	55	GDA94	0	-90	22
Bamganie	BAAC0031	238575	5802997	335	55	GDA94	0	-90	13
Bamganie	BAAC0032	239027	5804186	345	55	GDA94	0	-90	37
Bamganie	BAAC0033	239092	5804179	344	55	GDA94	0	-90	117
Bamganie	BAAC0034	239163	5804173	341	55	GDA94	0	-90	49
Bamganie	BAAC0035	239236	5804165	339	55	GDA94	0	-90	54
Bamganie	BAAC0036	239317	5804157	336	55	GDA94	0	-90	84
Bamganie	BAAC0037	239099	5804176	344	55	GDA94	90	-60	95
Bamganie	BAAC0038	239488	5804596	320	55	GDA94	0	-90	51

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Bamganie	BAAC0039	239408	5804608	322	55	GDA94	0	-90	99
Bamganie	BAAC0040	239333	5804618	323	55	GDA94	0	-90	25
Bamganie	BAAC0041	239340	5804638	322	55	GDA94	0	-90	33
Bamganie	BAAC0042	239261	5804622	326	55	GDA94	0	-90	73
Bamganie	BAAC0043	239179	5804633	327	55	GDA94	0	-90	97
Bamganie	BAAC0044	239112	5804648	326	55	GDA94	0	-90	111
Bamganie	BAAC0045	239033	5804653	327	55	GDA94	0	-90	91
Bamganie	BAAC0046	238967	5804668	330	55	GDA94	0	-90	54
Bamganie	BAAC0047	238980	5804876	326	55	GDA94	0	-90	61
Bamganie	BAAC0048	239046	5804858	326	55	GDA94	0	-90	111
Bamganie	BAAC0049	239124	5804858	325	55	GDA94	0	-90	90
Bamganie	BAAC0050	239200	5804845	325	55	GDA94	0	-90	87
Bamganie	BAAC0051	239273	5804836	323	55	GDA94	0	-90	72
Bamganie	BAAC0052	238749	5802108	284	55	GDA94	0	-90	25
Bamganie	BAAC0053	238751	5802106	284	55	GDA94	90	-60	33
Bamganie	BAAC0054	238688	5802124	294	55	GDA94	0	-90	24
Bamganie	BAAC0055	238620	5802126	302	55	GDA94	0	-90	30
Bamganie	BAAC0056	238579	5801680	287	55	GDA94	0	-90	51
Infill	PHAC1821	769180	6022676	82	54	GDA94	0	-90	123
Infill	PHAC1822	769318	6022690	82	54	GDA94	0	-90	116
Infill	PHAC1823	769452	6022683	82	54	GDA94	0	-90	120
Infill	PHAC1824	769529	6022568	82	54	GDA94	0	-90	96
Infill	PHAC1825	769666	6022561	82	54	GDA94	0	-90	130
Infill	PHAC1826	769799	6022569	82	54	GDA94	0	-90	141

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APPENDIX 2: Pyramid Hill aircore drill intersections (>0.1g/t Au)

Hole ID	From (m)	To (m)	Interval (m)	Au (g/t)	Prospect	Comments
BAAC001	13	20	7	0.18	Bamganie	20% Quartz veining in weathered Castlemaine Group sediments
BAAC001	86	87	1	0.13	Bamganie	Quartz/Carbonate vein in Castlemaine Group sediments
BAAC001	101	117	16	0.30	Bamganie	10% Quartz veining with pyrite in Castlemaine Group sediments, end of hole
including	106	107	1	1.12	Bamganie	20% Quartz veining with pyrite in Castlemaine Group sediments
and	116	117	1	1.04	Bamganie	20% Quartz veining with pyrite in Castlemaine Group sediments, end of hole
BAAC002	31	34	3	0.19	Bamganie	40% Quartz veining in weathered Castlemaine Group sediments
BAAC002	112	113	1	0.12	Bamganie	90% Quartz with pyrite in Castlemaine Group sediments
BAAC007	30	34	4	0.61	Bamganie	Minor Quartz veining at base of oxidation in Castlemaine Group sediments
BAAC007	98	123	25	0.29	Bamganie	5% Quartz veining in Castlemaine Group Sediments, end of hole
including	120	121	1	1.45	Bamganie	Minor Quartz veining in Castlemaine Group sediments
BAAC014	27	31	4	0.14	Bamganie	Weathered Castlemaine Group sediments
BAAC014	101	102	1	0.15	Bamganie	Castlemaine Group sediments, end of hole
BAAC015	46	48	2	0.27	Bamganie	Minor Quartz veining at base of complete oxidation in Castlemaine Group sediments
BAAC029	49	51	2	0.16	Bamganie	Minor Quartz veining in Castlemaine Group sediments
BAAC032	29	37	8	6.22	Bamganie	30% Quartz veining in weathered Castlemaine Group sediments, end of hole in void from old workings
including	32	37	5	9.77	Bamganie	30% Quartz veining in weathered Castlemaine Group sediments, end of hole in void from old workings
that includes	32	34	2	20.02	Bamganie	30% Quartz veining in weathered Castlemaine Group sediments
BAAC033	0	2	2	0.17	Bamganie	Surface contamination from historic mining activities
BAAC033	26	28	2	0.27	Bamganie	Minor Quartz veining in weathered Castlemaine Group sediments
BAAC033	34	46	12	0.26	Bamganie	Minor Quartz veining in weathered Castlemaine Group sediments
BAAC033	56	57	1	0.32	Bamganie	Minor Quartz veining in weathered Castlemaine Group sediments
BAAC033	62	67	5	0.16	Bamganie	15% Quartz veining in Castlemaine Group sediments
BAAC033	99	112	13	0.56	Bamganie	30% Quartz veining with arsenopyrite and pyrite in Castlemaine Group sediments
including	99	100	1	1.93	Bamganie	Minor Quartz veining in Castlemaine Group sediments
and	107	110	3	1.34	Bamganie	80% Quartz veining with arsenopyrite and pyrite in Castlemaine Group sediments
BAAC036	16	18	2	2.66	Bamganie	5% Quartz veining in weathered Castlemaine Group sediments
including	16	17	1	5.14	Bamganie	5% Quartz veining in weathered Castlemaine Group sediments
BAAC038	21	34	13	0.12	Bamganie	Minor Quartz veining in Castlemaine Group sediments
BAAC044	45	58	13	0.42	Bamganie	10% Quartz veining in Castlemaine Group sediments
including	51	53	2	1.59	Bamganie	20% Quartz veining in Castlemaine Group sediments
BAAC044	73	88	15	0.20	Bamganie	Minor Quartz veining in Castlemaine Group sediments
BAAC044	95	108	13	0.51	Bamganie	Minor Quartz veining in Castlemaine Group sediments
including	95	98	3	1.73	Bamganie	5% Quartz veining in Castlemaine Group sediments
BAAC049	61	66	5	0.23	Bamganie	5% Quartz veining in Castlemaine Group sediments
BAAC049	74	82	8	0.44	Bamganie	Minor Quartz veining in Castlemaine Group sediments
including	81	82	1	2.59	Bamganie	5% Quartz veining in Castlemaine Group sediments
PHAC1826	75	77	2	0.13	Kerang	Bedrock interface
PHAC1826	105	107	2	0.47	Kerang	Saprolite
PHAC1826	127	130	3	0.46	Kerang	Minor Quartz veining in Castlemaine Group sediments

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APPENDIX 3: JORC Table 1 – Pyramid Hill Gold Project

Section 1 Sampling Techniques and Data

Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
Sampling techniques	•	Nature and quality of sampling (eg. cut	•	The Aircore samples were collected every metre.
		channels, random chips, or specific	•	The geologist on the rig identified the zones to be sampled
		specialised industry standard measurement		with 4m composite samples being collected.
		tools appropriate to the minerals under	•	1m samples were also collected so that they could be sent
		investigation, such as down hole gamma		for assay if elevated results were obtained in the composite
		sondes, or handheld XRF instruments, etc).		samples.
		These examples should not be taken as	•	All samples were pulverised to nominal 80% passing 75
		limiting the broad meaning of sampling.		microns to produce a 50g charge for fire assay.
	•	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 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
		(eg. submarine nodules) may warrant
		disclosure of detailed information.
Drilling techniques	•	Drill type (eg. core, reverse circulation, open-	•	The Aircore drilling was completed by Bostech Drilling
		hole hammer, rotary air blast, auger, Bangka,		Australia using blade bits with a diameter of 85mm. In
		sonic, etc) and details (eg. core diameter,		harder formations PCD blade bits were used.
		triple or standard tube, depth of diamond	•	With aircore drilling there is the possibility of some
		tails, face-sampling bit or other type,		downhole contamination when high-grade gold zones are
		whether core is oriented and if so, by what		intersected.
		method,etc).
Drill sample recovery	•	Method of recording and assessing core and	•	Aircore samples were recorded as wet or dry, and samples
		chip sample recoveries and results assessed.		with low recovery were recorded.
	•	Measures taken to maximise sample	•	Geologists logging the chips were checking for any signs of
		recovery and ensure representative nature of		downhole contamination and this was noted.
		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.
Logging	•	Whether core and chip samples have been	•	The aircore chips were logged and sampled at the rig with
		geologically and geotechnically logged to a		the entire hole being logged.
		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.

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Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
Sub-sampling	•	If core, whether cut or sawn and whether	•	For the aircore drilling 4m composite samples were
techniques and		quarter, half or all core taken.		routinely collected of all the bedrock and 8m of the base of
sample preparation	•	If non-core, whether riffled, tube sampled,		the Murray Basin. If gravels or organic beds were
		rotary split, etc and whether sampled wet or		intersected within the Murray Basin these units were also
		dry.		sampled.
	•	For all sample types, the nature, quality and	•	Any area that was selected for sampling also had a 1m
		appropriateness of the sample preparation		sample collected.
		technique.	•	Duplicate samples were collected every 100thsample for
	•	Quality control procedures adopted for all		the aircore drilling. These were selectively done to be in
		sub-sampling stages to maximise		areas of expected mineralisation based on the logging.
		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 beingsampled.
Quality of assay data	•	The nature, quality and appropriateness of	•	Samples have been sent to the On Site Laboratory Services
and laboratory tests		the assaying and laboratory procedures used		(OSLS) in Bendigo.
		and whether the technique is considered	•	The samples were analysed using a 50g fire assay that is
		partial or total.		considered a total digest.
	•	For geophysical tools, spectrometers,	•	Falcon has its own internal QAQC procedure involving the
		handheld XRF instruments, etc, the		use of certified reference materials. For exploration aircore,
		parameters used in determining the analysis		1 blank per hole, 2 standards per 100 samples and 1
		including instrument make and model,		duplicate per 100 samples are submitted.
		reading times, calibrations factors applied	•	Due to the highly variable nature of Central Victorian gold
		and their derivation, etc.		all 50g fire assay results over 0.2 ppm Au are sent for a 300g
	•	Nature of quality control procedures adopted		Photon Assay. This reduces the nugget effect due to the
		(eg. standards, blanks, duplicates, external		increased sample size. Falcon has its own Photon Assay
		laboratory checks) and whether acceptable		certified standards that are used in each submission.
		levels of accuracy (ie. lack of bias) and	•	Where >0.2g/t Au results are returned in 4m composites
		precision have been established.		the individual 1m samples are submitted and these results
				are used for reporting purposes. An 8 element Aqua Regia
				digest that is considered a partial digest is also completed
				for these zones. The Aqua Regia is specifically targeting
				pathfinder elements associated with gold mineralisation in
				central Victoria.
			•	Duplicates of the 1m samples are collected for every 100th
				sample.
			•	The lab uses their own certified standards and blanks, and
				this data is alsoprovided to Falcon.
Verification of	•	The verification of significant intersections by	•	Significant intersections are checked by the Project
sampling and		either independent or alternative company		Geologist and the Exploration Manager. Significant
assaying		personnel.		intersections are cross-checked with the geology logged
	•	The use of twinned holes.		after final assays are received.
	•	Documentation of primary data, data entry	•	No twin holes have been drilled for comparative purposes.
		procedures, data verification, data storage		The targets are still considered to be in an early exploration
		(physical and electronic) protocols.		stage.
	•	Discuss any adjustment to assay data.	•	Primary data was digitally collected and entered via a field
				Toughbook computer using in house logging codes. The
				data is sent to the database manager where the data is
				validated and loaded into the master database.
			•	No adjustments have been made to the assay data
				received.
Location of data	•	Accuracy and quality of surveys used to	•	Hole collar locations have been picked up by Falcon
points		locate drill holes (collar and down-hole		employees using a handheld GPS with a +/- 3m error.
		surveys), trenches, mine workings and other	•	The grid system used for the location of the drill holes is
		locations used in Mineral Resource		MGA_GDA94(Zone 54 or Zone 55).

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Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
		estimation.	•	RL data have been assigned from 10m DEM satellite data.
	•	Specification of the grid system used.
	•	Qualityand adequacyof topographic control.
Data spacing and	•	Data spacing for reporting of Exploration	•	Spacing of the aircore drilling varies. Regional drilling is
distribution		Results.		conducted on a nominal spacing of 280m x 3200m.
	•	Whether the data spacing and distribution is		Subsequent infill is done at a nominal spacing of 140m x
		sufficient to establish the degree of		800m, followed by 70m x 400m. Once a prospect is defined
		geological and grade continuity appropriate		additional infill will continue until the target is defined
		for the Mineral Resource and Ore Reserve		suitably to allow targeting of diamond drilling. This is likely
		estimation procedure(s) and classifications		to be a nominal 35m x 100m.
		applied.	•	During the drilling targeting mineral sands, the basement
	•	Whether sample compositing has been		was sampled for gold if it was intersected, but these were
		applied.		not all drilled to blade refusal.
			•	The current spacing is not considered sufficient to assume
				any geological or grade continuity of the results intersected.
				No sample compositinghas been applied.
Orientation of data in	•	Whether the orientation of sampling	•	Sampling is initiated 8m above the basement contact and
relation to geological		achieves unbiased sampling of possible		continues to the end of the hole. If gravel layers are
structure		structures and the extent to which this is		identified within the Murray Basin, these are also sampled.
		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 security	•	The measures taken to ensure sample	•	Samples are stored on site and collected by an OSLS
		security.		employee who takes the samples directlyto the lab.
Audits or reviews	•	The results of any audits or reviews of	•	No review has been carried out to date.
		samplingtechniques and data.

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Section 2 Reporting of Exploration Results

Criteria JORC Code explanation Commentary	Criteria JORC Code explanation Commentary	Criteria JORC Code explanation Commentary
Mineral tenement •	Type, reference name/number, location and •	Drilling was carried out within EL006864, EL007200,
and land tenure	ownership including agreements or material	EL007120, EL006661, EL006669, EL006737 and
status	issues with third parties such as joint ventures,	EL007320. These licences are wholly owned by Falcon
	partnerships, overriding royalties, native title	Gold Resources Pty Ltd, a wholly owned subsidiary of
	interests, historical sites, wilderness or	Falcon Metals Limited with no known encumbrances.
	national park and environmental settings.
•	The security of the tenure held at the time of
	reporting along with any known impediments
	to obtaininga licence to operate in the area.
Exploration done by •	Acknowledgment and appraisal of exploration •	There was little effective exploration completed by
other parties	by other parties.	other parties in the immediate vicinity of the targets
		that were identified by Chalice Mining Limited.
	•	Chalice compiled historical records dating back to the
		early 1980’s which indicate only sporadic
		reconnaissance drilling has been completed by
		various parties over the project area. All known
		effective drill holes that reached the basement and
		were assayed for gold have been compiled.
	•	Homestake Mining completed initial surface sampling
		which has been evaluated and used by Chalice for
		some targeting purposes.
	•	Falcon is continuing the exploration that was started
		by Chalice after the gold assets of Chalice were
		demerged into Falcon Metals Ltd in December 2021.
	•	Linger and Die Pty Ltd completed an extensive soil
		sampling program at Bamganie in the 1990’s using a
		handheld auger targeting B horizon soils.
	•	Mineral Sands exploration over the areas investigated
		by Falcon was completed by Aberfoyle Resources
		Limited, RGC Exploration Pty Ltd and Basin Minerals
		in the late 1980’s and early1990’s.
Geology •	Deposit type, geological setting and style of	The mineralisation being explored for is orogenic
	mineralisation.	style like that seen within the Bendigo and Fosterville
		gold deposits of the Bendigo Zone. Gold
		mineralisation in these deposits is typically hosted by
		quartz veins within Ordovician age Castlemaine
		GroupSediments.
Drill hole •	A summary of all information material to the •	Refer Appendices
Information	understanding of the exploration results
	including a tabulation of the following
	information for all Material drill holes:
	o easting and northing of the drill hole collar
	o elevation or RL (Reduced Level – elevation
	above sea level in metres) of the drill hole
	collar
	o dip and azimuth of the hole
	o down hole length and interception depth
	o hole length.
•	If the exclusion of this information is justified
	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.
Data aggregation •	In reporting Exploration Results, weighting •	A length-weighted averaging technique has been
methods	averagingtechniques,maximum and/or	applied where necessarytoproduce all displayed and

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		minimum grade truncations (eg. cutting of	tabulated drill intersections. In Appendix tables and
		high grades) and cut-off grades are usually	figures, results are calculated using either a minimum
		Material and should be stated.	0.1g/t,1.0g/t or 10g/t Au lower cut-off grade and max
	•	Where aggregate intercepts incorporate short	4m internal dilution.
		lengths of high-grade results and longer •	Not Applicable.
		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.
Relationship	•	These relationships are particularly important •	The relationship between gold anomalism and true
between		in the reporting of Exploration Results.	width remains poorly constrained and requires
mineralisation	•	If the geometry of the mineralisation with	further drilling to interpret true widths more
widths and		respect to the drill hole angle is known, its	accurately.
intercept lengths		nature should be reported. •	Downhole lengths are reported.
	•	If it is not known and only the down hole
		lengths are reported, there should be a clear
		statement to this effect (eg. ‘down hole
		length,true width not known’).
Diagrams	•	Appropriate maps and sections (with scales) •	The results of the AC drilling are displayed in the
		and tabulations of intercepts should be	figures in the announcement.
		included for any significant discovery being
		reported These should include, but not be
		limited to a plan view of drill hole collar
		locations and appropriate sectional views.
Balanced reporting	•	Where comprehensive reporting of all •	Only results above 0.1g/t Au have been tabulated in
		Exploration Results is not practicable,	this announcement. The results are considered
		representative reporting of both low and high	representative with no intended bias.
		grades and/or widths should be practiced to
		avoid misleading reporting of Exploration
		Results.
Other substantive	•	Other exploration data, if meaningful and •	Previously reported aircore drill results are displayed
exploration data		material, should be reported including (but not	in the maps and discussed in the text.
		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
		contaminatingsubstances.
Further work	•	The nature and scale of planned further work •	Additional AC drilling will continue to regionally
		(eg. tests for lateral extensions or depth	screen the project area and infill drilling will also
		extensions or large-scale step-out drilling).	continue to allow Falcon to vector in to mineralised
	•	Diagrams clearly highlighting the areas of	structures.
		possible extensions, including the main
		geological interpretations and future drilling
		areas, provided this information is not
		commerciallysensitive.

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