FIRST AU LIMITED — Interim / Quarterly Report 2020

Jan 28, 2021

First Au Limited (ASX: FAU)

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29 January 2021

Quarterly Activities Report

for the 3 months ended 31 December 2020

Highlights

• Drilling to commence shortly at Snowstorm and Haunted Stream gold projects, eastern Victoria

• Snowstorm exploration licence renewed

• Sampling at Snowstorm produces rock chips up to 112 g/t Au

• RC and deep diamond drilling programs completed at Gimlet, with further mineralization evident with grades up to 30 g/t Au

• Plans to begin resource upgrade at Gimlet

• Farm-in and JV Agreement at Talga Project, east Pilbara

• IP anomalies identified at Razorback Gold Project

Victorian Gold Projects

On 30 October 2020, the Company announced work was advancing at its Victorian Gold Project, in the East Gippsland region (Figure 1). FAU previously announced ( see ASX announcement 25[th ] Sept 2020) it had acquired an 80% interest in Victorian Goldfields Pty Ltd (“VicGold”), of which the granting of EL 006816 (Haunted Stream) was the final requirement. This triggered a major focus of work for FAU, with the exploration team: 1) commencing fieldwork in developing new drill targets; 2) compilation of historic information and developing new geological interpretation of the existing data sets, which has highlighted high-grade mineralisation from drilling at the Snowstorm Project PL7319 application; and 3) expanding the potential VicGold tenure through project generation, which has identified new gold targets on previously vacant ground, including the high-grade Highland Chief workings in the Swifts Creek Goldfields (Figure 1).

On 16 November 2020, FAU announced the renewal of Exploration Licence EL 5505 in respect to the Snowstorm Gold Project. This was a requirement for First Au’s option over the Snowstorm Project to become active. First Au has 2 years to explore and determine whether to exercise its option. The Company also has a 12 month right to continue into a third year of the option term, if it so elects.

The Snowstorm Project is located approximately 15 kms (30 minutes’ drive) directly north of the VicGold Haunted Stream Project (Figure 1.). It has the same Ordovician-aged rocks as Haunted Stream, has historically yielded high-grade gold results and is exhibiting similarities to the same gold targets as the Victorian Gold Project. Snowstorm contains Ordovician sediments (same as Haunted Stream), free gold and sulphide lodes and is “structurally controlled” with walk up drill targets once mapping is completed. Numerous mafic dykes are observed in the area and importantly, occur immediately adjacent to mineralised quartz reefs.

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

On 30 November 2020, the Company announced results from a rock chip and mapping exercise at the Snowstorm Project. This produced some significant grades, including 112 g/t Au from an outcropping vein system, other samples producing grade above 10 g/t Au from the 12 samples taken. Results presented validate the historic sampling reported in the area ( see FAU ASX announcement on the 30[th] October 2020 ). While the program is still in its early stages, the surface sampling and structural mapping have provided a new exploration model, for the potential of high-grade mineralisation on the tenure. Drilling permits have been secured and the Company is finalizing drill targets with drilling to expected to commence shortly.

Field work is ongoing at the Haunted Stream Tenement EL6816 (Figure 1). Preliminary mapping so far has focused on the working at Ernestine, Lone Hand up to Hibernia (historically > 5oz/t), which highlighted several important and varied structural controls, emphasising that good geological mapping is critical for delineating drilling targets in the area. An intensive field program was initiated around the other historic workings along the 8km strike length within the Haunted Stream Goldfields which historically produced over 25,000 oz Au between 1863 to 1917. The results of this work are pending.

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Figure 1. Vic Geological Survey geolgy map, with FAU tenure overlain within East Gippsland, Victoria (Coordinates in GDA 94, MGA zone 55)

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Gimlet Gold Project, Kalgoorlie

On 30 November 2020, the Company advised that drilling had commenced on a deep diamond hole at the Gimlet Project, near Kalgoorlie (Figure 2). The drill hole was partly funded through the West Australian Government Exploration Incentive Scheme (EIS) co-funding granted to FAU ( refer to ASX release dated 27 November 2019) , which is targeting mineralization below 500m .

FAU had also commenced a RC drilling program at the Gimlet Gold Prospect in November 2020. This program consisted of 15 RC holes (2160 m in total) and focused on drilling around the current resource area as well as other exploration targets (see Figure 4).

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Figure 2: View of Gimlet Resource area to the West, showing Leapfrog Model (0.5 g/t and 1 g/t Au iso shells) and existing Resource wireframe (pink) indicating that the orebody is open at depth and along strike. Recent diamond drillholes (red strings) and planned EIS hole shown in yellow to test down plunge (Coordinates are in GDA MGA94 Zone 51)

Results to this program were announced on the 29 January 2021, including 20m @ 3.7 g/t Au from 72m ( containing 1m @ to 30 g/t Au ) from recent RC and diamond drilling at Gimlet (Figures 3 and 4). The new drilling (as well as other recent programs) at the Gimlet Prospect has improved continuity of the mineralised body and the company will now look at the potential resource upgrade in coming months. In addition, this recent program has provided a better understanding of the gold mineralisation / structural geology of the prospect area and provided a new target area to test in 2021.

Gold assay highlights of this new drilling program include –

Drillhole 20GRC013 17m @ 3.7 g/t Au from 170m including 6m @ 6.0 g/t Au from 172m 2m @ 6.0 g/t Au from 182m

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Drillhole 20GRC015 2m @ 1.5 g/t Au from 46m 1m @ 1.2 g/t Au from 62m 20 m @ 3.7 g/t Au from 72m including 1m @ 30.6 g/t Au from 81m

Drillhole 20GRC012 1m @ 1.3 g/t Au from 120m 1m @ 1.3 g/t Au from 142m 9m @ 4.8 g/t Au from 145m including 3m @ 8.4 g/t Au from 145m

Drillhole 20GRC014 2m @ 4.1 g/t Au from 45m 4m @ 3.6 g/t Au from 54m 1m @ 1.0 g/t Au from 60m

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Figure 3. TMI image depicting the recent RC and diamond holes at Gimlet (labelled. Also note location of cross section (a-A’) in Figure 4. Image also depicts new target area identified through new structural study (Coordinates are in GDA MGA94 Zone 51)

EIS diamond drillhole 20GDD004 was drilled to a total depth of 445.75m and positioned to target the downhole extent of mineralisation at Gimlet (Figure 2). It was successful in identifying quartzpyrite-arsenopyrite veining and alteration like what has been observed in previous drilling. This mineralisation was dispersed over several zones within a 60m interval and suggesting the mineralisation still exists at depth. The best intersect was 10m @ 0.6 g/t Au from 376.5m, including 1m @ 2.4 g/t Au . Importantly, the structural interpretation from this hole (and previous 3 diamond holes) has provided new drill target along strike to the existing resource (see Figure 3).

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Figure 4. Drilling cross section (See Figure 3 for location) showing drillholes 20GRC014, 20GRC015 and 20GRC016

East Pilbara Talga Project

On 20 November 2020, the Company announced that it had entered into a conditional binding term sheet with 8Au Pty Ltd (“8Au”) in respect to a Farm-In and Joint Venture Agreement (“Joint Venture”) in relation to the Talga Gold and Base Metals Project, located in the East Pilbara region of Western Australia (“Talga Project”). Under the Joint Venture, 8Au can earn up to an 80% in the Talga Project on a staged basis.

8Au is a private company with common directors to the majority of the directors of FAU. FAU understands that 8Au intends to complete an IPO in early 2021, based on the acquisition of assets/interests in multiple exploration projects in Western Australia. These assets will include the Talga exploration tenements and a number of proximate complimentary exploration tenements. The farm-in between 8Au and FAU is conditional on, among other things, 8Au’s IPO completing by 30 June 2021 and FAU obtaining necessary shareholder approvals, which includes an independent expert assessment of the transaction terms.

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Subsequent to the end of the quarter, the Company announced on 15 January 2012 results from a detailed 2 km[2 ] gradient array resistivity/IP survey, covering 4km of strike, at the Razorback prospect at the Talga Project undertaken during October-November 2020 (Figure 5). An initial orientation survey over the known gold mineralisation showed a distinct IP anomaly thought to be due to disseminated sulphides associated with the gold mineralization. IP and Resistivity anomalies, and possible structures have been identified in the survey data. A total of 11 gold targets have been identified for drilling, which include extensions to two targets that have already been drilled and shown to have mineralization (Figure 6).

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Figure 5. Talga Project geology map, showing Razorback Au Prospect and area of IP survey (red rectangle) (Co-ords MGA94, lat/log)

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Merged Apparent Resistivity image (non-linear colour stretch) with contours.
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Merged Chargeability image (non-linear colour stretch) with contours

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Interpretation classifying survey anomalies

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Figure 6. Ip/ Chargeability images, with interpretation of survey, with target identification at Razorback IP Surevy. (Co-ords MGA94, zone 50)

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Corporate Activities

On 1 October 2020, the Company announced that it had received commitments to raise up to $1,553,400 via a share placement to existing and new sophisticated and professional investors.

The funds are being predominantly applied towards exploration work at Gimlet Gold Project, commencement of field activities at the Haunted Stream and Snowstorm gold projects in Gippsland Victoria and for general working capital purposes. The exploration licence for Haunted Stream was granted on 25 September and the Company immediately started field activities.

New shares issued under the Placement represented approximately 25% of FAU’s existing issued capital.

Appendix

Appendix A: Interests in Mining Tenements Appendix B: Financial Analysis of selected items within Appendix 5B Appendix C: Victorian Goldfields Pty Ltd

Authorised by:

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Bryan Frost Executive Chairman

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 Talga Projects in the Eastern Pilbara region of Western Australia. FAU has exploration underway at its Victoria Gold Project.

Enquiries in relation to this announcement please contact :

Richard Revelins, Executive Director: rrevelins@firstau.com +1-310-405-4475 Bryan Frost, Executive Chairman: bfrost@firstau.com +61-418-898-885 Dr Gavin England, Technical Director: gavin@claregeo.com.au +61-403-531-832

Competent Person’s 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 Australian Institute of Mining and Metallurgy and the Australian Institute of Geosciences. Dr England is a consultant to First Au Limited (“FAU”). Dr England declares in accordance with the transparency principles of the JORC Code that he has a personal financial interest in the transaction referred to in this Public Report in that he controls G L England Pty Ltd an entity which owns 5% of the issued shares of Victorian Goldfields Pty Ltd. Dr England has also been appointed to the board of directors of FAU as Technical Director. Dr

England has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity undertaken to qualify as a Competent Person as defined in the

2012 Edition of the Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Dr England has consented to the inclusion in this Public Report of the matters based on his information in the form and context in which it appears.

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Appendix A: Interests in Mining Tenements: Quarter ended 31 December 2020

Tenements	Location	Held at end of quarter	Acquired during the quarter	Disposed during the quarter
E26/174 M26/849 P24/5346 P24/5347	Gimlet Kalgoorlie Region Western Australia	100% 100% 100% 100%	- - - -	- - - -
E45/3679 E45/3857 E45/4615 E45/4137 E45/5571 E45/5595 E45/5596	Talga Pilbara Region Western Australia	100% 100% 100% 100% 100% 100% 100%	- - - - - - -	- - - - - - -
M45/990 M45/991 M45/988	Tambina Pilbara Region Western Australia	20% 20% 20%	- - -	- - -
E16/542 E24/216 E24/226 E24/215	White Flag Kalgoorlie Region Western Australia	100% 100% 100% Option to acquire up to 85% interest	- - - -	- - - -
EL6816	VicGold Project – Haunted Stream - Victoria	80% Interest	-	-

Appendix B: Financial Analysis of selected items within Appendix 5B:

Aggregate amount of payments to related parties and their associates included in item 6.1 of Appendix 5B for the quarter ended 31 December 2020:

Comprising:

omprising:
	$A’000
Directors Services	63
CEO Services	30
Consultingservices bya Director on normal commercial terms	15
Legal services provided by a legal firm of which a Director is a Partner. Servicesprovided on normal commercial terms	8
Geological services provided by the Technical Director on normal commercial terms	57
Commission paid on issues of equity securities to an AFSL company associated with two Directors on normal commercial terms. A proportion of this commission is paid out to other qualifiedparties who assisted with the issue of equitysecurities	93
Appendix 5B – item 6.1 Total	266

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Appendix C: Victorian Goldfields Pty Ltd:

Number of Consideration and Milestone shares issued during the reporting period:

Details	Number
Consideration shares allotted as fully paid ordinary shares on 9 October 2020	20,000,000

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