FIRST AU LIMITED — Capital/Financing Update 2019

Nov 26, 2019

First Au Limited

(ASX: FAU)

27 November 2019

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First Au secures government grant for deep drilling at Gimlet gold project, WA

First Au Limited (ASX: FAU; the “Company”) is pleased to announce that it has been awarded a State Government grant for exploration drilling at its Gimlet gold project near Kalgoorlie in WA.

The grant was made as part of the West Australian Government’s Exploration Incentive Scheme (EIS). This is a competitive program which is open to applications twice a year and offers a refund of up to 50 per cent for innovative drilling programs in the State.

The program has been successful in contributing to major discoveries in WA, including the Sirius Resources Novo Ni-Cu Deposit in the Frazer Ranges and Dusk ‘til Dawn gold discovery by Alloy Resources in the Yilgarn.

The EIS grant of $100,000 was awarded to First AU for a deep diamond drilling program at Gimlet. The drilling is designed to test whether the mineralisation at Gimlet, which has a JORC Inferred Resource of 69, 000 oz Au ( refer to ASX release dated 7 May 2019 ) extends at depth. The hole has a target vertical depth of 450 to 500m from surface (Figure 1).

A successful gold intersection in this planned diamond drill hole would provide further evidence that the TealGimlet mineralised corridor has the potential to be a major gold camp.

This will be the deepest hole in the area and would not only test the downdip extent of Gimlet, but also provide valuable information on stratigraphy of the Black Flag Group and alteration in the district. This information complements the recent Geological Survey of Western Australia-funded east-west trending seismic line (Line 2019-02), which transects the southern extent of the Gimlet tenement.

An earlier northwest-southeast trending seismic line funded by the Australian Geological Survey Organisation is positioned immediately west of the Gimlet mineralisation (99AGS-L4). In each of these seismic sections, major crustal structures are evident underlying Gimlet, such as the Abattoir Shear Zone, which may act as a gold fluid pathway.

The two Government funded seismic surveys are ideally positioned to provide the three-dimensional architecture of the geology of the Teal-Gimlet mineralised corridor. The Company is excited to be able to leverage this ‘expensive to acquire’ geophysical data to advance targeted exploration efforts. With a known strike length of 2.5 km (i.e. Jacques Find-Teal-Gimlet Deposits), there is a good chance for the system to extend vertically.

As part of the funding agreement, the drilling must be undertaken in the 2020 calendar year. A critical step in the planning of the designed hole is to anticipate the plunge of the mineralised pods within this gold-bearing system. The RC drilling now scheduled for 2020 will assist this aspect of the hole’s design.

First Au Limited ACN 000 332 918 Registered Office: Level 1 / 123 Whitehorse Road, Balwyn Vic. 3103 Australia. Telephone 03 9817 0700 Facsimile 03 9817 0799 Website: www.firstau.com Email: info@firstau.com

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Figure 1. Gimlet drilling long section displaying proposed location for the planned EIS drill hole. Location of long section seen in Figure 2. Also note the extended long section in figure insert, which displays Jacques FindTeal-Gimlet and also proposed location of EIS hole.

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Figure 2. TMI magnetic image of Gimlet Tenement area, showing location of seismic sections and long sections in Figure 1.

About Gimlet

The FAU 100% owned Gimlet Project occurs 15 km NW of Kalgoorlie, Western Australia (Figure 3). The tenement (EL26/174 and application M26/849) occupies 9.6 km[2] in area and adjoins the tenements of Horizon Minerals Limited (ASX: HZR) in the south, containing the Teal, Jacques Find and Peyes gold deposits (289,000 oz Au). In addition, the Company recently entered an option agreement to explore the prospective tenement EL24/215, which lies ~4km WNW of the Gimlet tenement ( refer to ASX release dated 9[th] July 2019 ). It is also within close trucking distance of five gold mills within the Kalgoorlie area, with several offering the toll treatment of ore to third parties (Figure 3). The geology in the tenement is prospective for gold, dominated by metamorphosed felsic and intermediate volcanic rocks of Black Flag Group of the Kalgoorlie Terrane, Yilgarn Craton. This Archean geology is overlain by Cainozoic sediments, including some areas covered with salt lakes, which has previously inhibited the effectiveness of some of the historic exploration.

Table 1: April 2019 MRE using 1.3g/t (open cut) and 3 g/t (underground) cut-off

	Apr-19 Inferred MRE	Apr-19 Inferred MRE	Tonnes	Grade(g/t Au)	Ounces	Ounces
	Oxide		75,000	3.3	8,000
	Transitio	nal	66,000	3.0	6,000
FresTotalAll figures rounded t	Fres		502,000	3.4	54,000
	Total		642,000	3.3	69,000

All figures rounded to reflect appropriate level of confidence (apparent differences may occur due to rounding)

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The information in this ASX Release that relates to the Company’s Mineral Resources estimates is extracted from and was originally reported in the Company’s ASX announcements “Maiden JORC Resource at Gimlet” dated 7 May 2019, which is available at www.asx.com.au the competent person being Mr. Andrew Bewsher of BM Geological Services. The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and that all material assumptions and technical parameters underpinning the estimates in those announcements continue to apply and have not materially changed. The Company confirms that the form and context of the Competent Person’s findings in relation to those Mineral Resources estimates as presented have not been materially modified from the original market announcements.

The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcements. The Company confirms that the form and context of the respective competent persons’ findings in relation to those reports are presented have not been materially modified from the original market announcements.

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Figure 3: Location map of the Gimlet Gold Project, near Kalgoorlie

On Behalf of the Board

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Bryan Frost Executive Chairman

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About First Au: First Au is an advanced gold and base metals exploration company listed on the Australian Securities Exchange (ASX: FAU) and is pursuing a well-funded and aggressive exploration program at its 100% owned Gimlet Gold project near Kalgoorlie and its Emu Creek and Talga Projects in the Eastern Pilbara region of Western Australia.

Enquiries in relation to this announcement please contact either : Richard Revelins: rrevelins@firstau.com +1-310-405-4475 Paul Armstrong: paul@readcorporate.com.au +61-421-619-084

Competent Persons Statement

The information in this announcement that relates to Exploration Results is based on information compiled by Dr Gavin England, a Competent Person who is a Member of the Australasian Institute of Mining and Metallurgy and the Australian Institute of Geosciences. Dr England is a consultant to First Au Limited. Dr England 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 ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Dr England consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

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