FIRST AU LIMITED — Interim / Quarterly Report 2023

Jul 27, 2023

First Au Limited (ASX: FAU)

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28[th] July 2023

Quarterly Activities Report for the 3 Months Ended 30 June 2023

Highlights

• Initial assay results from maiden Haunted Stream drilling successfully intersected extensive shallow gold

• Results from holes 1 and 2 include:

• 12.9m @ 3.57g/t Au, including 7.3m @ 5.1 g/t Au and 0.2m @ 36.88 g/t Au from 38.3m (ERN001)

• 11.1m @ 2.65g/t Au, including 4.1m @ 4.1g/t Au and 0.25m @ 12.81 g/t Au from 51.5m (ERN002)

• Haunted Stream drilling now complete with assays for holes 3, 4 and 5 expected to be released imminently

• Following a shareholders meeting at the end of April, FAU received approval from shareholders for the second part of a two-tranche placement and received approx. $1m in funds

• FAU completed the transaction with Talisman Mining (ASX:TLM) to acquire 100% of its Mabel Creek Project for $200,000 in cash consideration and $100,000 in TLM shares

Review of Operations

Exploration Update – Victorian Gold Project

Haunted Stream

During the quarter, the company announced the successful initial result of its maiden drilling campaign at Haunted Stream, Victoria. The drilling program has identified a shallow highsulphidation gold system from 38m depth. The first two drillholes produced assay results of 12.9m @ 3.57g/t Au and 11.1m @2.65 g/t Au with evidence of higher-grade veins > 1oz Au[1] .

The purpose of the drill program was to test economic potential beneath historic workings as well as explore and test highly prospective structural target locations identified from previous works undertaken in the field and from review of historical data.

Results from holes 1 and 2[1] :

• ERN0001: 12.9m @ 3.57g/t Au, including 7.3m @ 5.1 g/t Au and 0.2m @ 36.88 g/t Au from 38.3m

• ERN0002: 11.1m @ 2.65g/t Au, including 4.1m @ 4.1g/t Au and 0.25m @ 12.81 g/t Au from 51.5m

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: Cross section view North East with assay results from ERN001, ERN0002 and core images showing mineralization.

All coordinates in MGA94 Zone 55[1] .

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Figure 2: Plan view of drilling completed to date with assay results ERN0001 & ERN0002, over LIDAR topography. All coordinates in MGA94 Zone 55[1] .

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The assay results received showed the mineralised zones crosscut the Phyllic altered sandstones and black shales at a high-angle to bedding. The focus of gold mineralisation appears to be compartmentalised by ~WNW-ESE trending, bedding-parallel cross-course faults. Mineralised intersections are defined by a quartz-sulphide stockwork hangingwall, early laminated quartz-sulphide veins (LQV) occurring sub-parallel to layering which grades into angular quartz-sulphide breccias. A late quartz-carbonate series of conjugate veins hosting coarse arsenopyrite, pyrite, chalco-pyrite, galena and sphalerite veins overprint the early LQV’s and breccia zones suggesting a remobilisation of the early mineralisation. Figures 3 highlights some of the mineralogy and vein textures observed within the orezone from ERN0001.

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Figure 3: ERN001 from 39m with laminated quartz-sulphide vein and brecciated sulphidic sandstone.

FAU is pleased to say that the drill program has now completed, with the program comprising 11 holes for a total of 1,083m of diamond drilling.

Snowstorm

During the quarter the Company resubmitted its Work Plan to seek approval to undertake the proposed bulk sampling at its Snowstorm Project. The Company remains optimistic that it will have the required approvals by the end of the calendar year. Further updates will be provided as new information becomes available.

Underground bulk sampling will allow FAU to undertake more detailed mapping of the system which should provide a better understanding of the grade and geological continuity of mineralisation. The main aim of the program is to further establish the potential economics of the system. An additional benefit of the proposed program is that it will establish greater underground access for potential future exploration drilling if warranted.

Exploration Update – Gimlet Gold Project

During the quarter FAU announced that it had been successful in receiving the granting of a Mining Lease at the Gimlet Gold project.

The Gimlet Gold Project is strategically positioned 15km NW of Kalgoorlie, in an area rich in infrastructure and potential toll treatment options (Figure 4). The project contains an inferred resource of 120,000oz’s Au @ 3.19 g/t Au (see Table 1 on page 5 for further details)[2] .

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Having a granted Mining Lease significantly enhances the opportunities to either find a buyer/partner for the project or consider options to move the project forward independently.

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Figure 4: Gimlet Gold Project location

Corporate Update

Capital Raising - Placement

On February 13 2023, the Company announced that it had received binding commitments from unrelated sophisticated, professional and other exempt investors for a two-tranche placement (Placement) of ordinary shares (Placement Shares) at $0.003 (0.3 cents) per Placement Share to raise $1.5 million before costs. Every two Placement Shares are to be accompanied by one free-attaching option (Placement Option) with an exercise price of $0.012 (1.2 cents) and expiring 18 months from issue.

The placement was undertaken in two-tranches, with the second tranche receiving shareholder approval as announced on 28 April 2023. Funds from the placement have been used to undertake the successful drill program at the Haunted Stream Project, Victoria.

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Mabel Creek Project Sale

FAU announced on 13 June 2023 that Talisman Mining Ltd (ASX:TLM) had completed the acquisition of the highly prospective Mabel Creek Project for $200,000 cash consideration and $100,000 of TLM fully paid ordinary shares. FAU has received the final cash consideration amount of $100,000 and been issued 580,852 fully paid ordinary shares in TLM, equal to $100,000 worth of consideration.

The Company determined that Mabel Creek was not a priority project and that divesting the project will allow FAU to focus its resources on other assets.

Company & Board of Directors Update

Following the Company’s AGM held on 29 May 2023 and in accordance with the results of the resolutions, Daniel Raihani and Lei Shi joined the Board of Directors. Michael Quinert and Damon O’Meara ceased to be Directors of FAU at the Annual General Meeting.

The current Board is committed to delivering value to shareholders and will achieve this through a disciplined approach to exploration works and activities, corporate transactions, as well as ensuring that corporate costs are kept to a minimum.

A review of corporate costs is underway, with costs deemed to be unnecessary already reduced or eliminated. The Company is actively reviewing its fixed costs and contracts to improve business flexibility and preserve cash when it is not actively undertaking exploration activities. The Board believes having operating flexibility will allow it to be agile and make business decisions that will prioritise creating shareholder value.

With successful results from the initial drilling and a significant number of tenements under the control of the Company that have yet to receive any major exploration in Victoria, the Company will continue to undertake exploration works on the Victorian Project to move it forward. The Company is currently finalising plans for further exploration on the Victorian Project once the final results from Haunted Stream drilling are released and will provide an update to the market when assay results are received.

The Company will continue to review options to create value from its other major asset including the Gimlet Gold project.

Authorised for release by the Board of Directors.

Enquiries in relation to this announcement please contact :

Ryan Skeen rskeen@firstau.com +61 409 000 679

About First Au: First Au is a gold and base metals exploration company listed on the Australian Securities Exchange (ASX:FAU) and is trading on the OTC market in the USA (OTC: FRSAF) and is pursuing exploration programs at its Victorian Goldfields Project in East Gippsland and the Gimlet Gold project near Kalgoorlie.

Table 1: Gimlet Gold June 2021 MRE at 1 g/t cut-off[2 ]

June-21 Inferred MRE	Tonnes	Grade(g/t Au)	Ounces
Oxide	70,800	2.53	5,800
Transitional	93,400	3.21	9,600
Fresh	1,001,700	3.24	104,200
Total	1,165,900	3.19	119,600

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The information in this ASX Release that relates to Exploration Results is extracted from the following reports which are all available at www2.asx.com.au:

1. 8 June 2023, “Successful Drilling Intersects Extensive Near Surface Gold Bearing System”, Ian E Neilson, competent person.

2. 23 June 2021, “JORC Resource Increases at Gimlet to Inferred Resource of 120,000 Ounces Au”, Mr Andrew Bewsher and Dr Gavin England, competent persons.

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, in the case of Mineral Resources or Ore Reserves, that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The Company confirms that the form and context of the respective competent persons’ findings in relation to those reports have not been materially modified from the original market announcement.

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Appendix A: Tenement Schedule - as at 30 June 2023

Tenement #	Note	Tenement name	Title Holder	Tenement Ownership	State	Acquired during the Quarter	Disposed during the Quarter
E26/174	-	Gimlet	FAU	FAU 100%	WA	-	-
E45/3679	1	Talga	FAU	OCT 50.1% FAU 49.9%	WA	-	-
E45/5595	1	Razorback	FAU	OCT 50.1% FAU 49.9%	WA	-	-
E45/5596	1	Razorback	FAU	OCT 50.1% FAU 49.9%	WA	-	-
E45/3857	1	Talga	FAU	OCT 50.1% FAU 49.9%	WA	-	-
E45/4137	1	Razorback	FAU	OCT 50.1% FAU 49.9%	WA	-	-
E45/5571	1	Talga Talga	FAU	OCT 50.1% FAU 49.9%	WA	-	-
M45/990	2	Tambina	Tambina Gold	FAU 20%, Tambina Gold 80%	WA	-	-
M45/991	2	Tambina	Tambina Gold	FAU 20%, Tambina Gold 80%	WA	-	-
M45/988	2	Tambina	Tambina Gold	FAU 20%, Tambina Gold 80%	WA	-	-
PL007319	3	Snow Storm	Mines of Stirling Pty Ltd	Mines of Stirling 100%	VIC	-	-
EL5505	3	Snow Storm	Mines of Stirling Pty Ltd	Mines of Stirling 100%	VIC	-	-
EL006816	-	Haunted Stream	Jacquian Pty Ltd	FAU 80% Jacquian 20%	VIC	-	-
EL006975	-	Haunted Stream Extension	Victorian Goldfields Pty Ltd	FAU 80% VicGold 20%	VIC	-	-
EL006976	-	Dargo High Plains	Victorian Goldfields Pty Ltd	FAU 80% VicGold 20%	VIC	-	-
EL006977	-	Dogwood	Victorian Goldfields Pty Ltd	FAU 80% VicGold 20%	VIC	-	-
EL007335	-	Snowstorm Extension	Victorian Goldfields Pty Ltd	FAU 80% VicGold 20%	VIC	-	-
EL007442	-	Barmouth	Victorian Goldfields Pty Ltd	FAU 80% VicGold 20%	VIC	-	-
EL007446	-	True Blue	Victorian Goldfields Pty Ltd	FAU 80% VicGold 20%	VIC	-	-
EL007473	-	Mount Jack	Victorian Goldfields Pty Ltd	FAU 80% VicGold 20%	VIC	-	-

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Appendix A: Tenement Schedule - as at 30June 2023 (Cont'd)

Tenement #	Note	Tenement name	Title Holder	Tenement Ownership	State	Acquired during the Quarter	Disposed during the Quarter
EL007474	-	Bendoc	Victorian Goldfields Pty Ltd	FAU 80% VicGold 20%	VIC	-	-
EL007527		Highland Chief	Victorian Goldfields Pty Ltd	FAU 80% VicGold 20%	VIC	-	-
EL5422	4	Dargo	Ian Alexander Rathjen	Ian Alexander Rathjen	VIC	-	-
EL6619	5	Mabel Creek	FAU	FAU 100%	SA	-	Disposed
EL6620	5	Mabel Creek	FAU	FAU 100%	SA	-	Disposed
EL6627	5	Mabel Creek	FAU	FAU 100%	SA	-	Disposed

Note 1: OCT refers to Octava Minerals Ltd (ASX: OCT; 'Octava'). Refer Announcement to the ASX dated 14 September 2022: 'Talga Joint Venture and Farm-In Agreement with Octava Minerals Limited commences'. OCT advised pursuant to the Agreement that it had made expenditure of not less than $300,000 which entitled OCT to increase its interest from 10% to 50.1%.

Note 2: Refer Announcement to the ASX dated 13 March 2019. FAU acquired an initial 20% interest in Tambina's three mining leases on payment of $60,000. Subsequent to 30 June 2023, FAU surrendered the Tambina leases.

Note 3: Refer Announcement to the ASX dated 9 July 2020. FAU announced that it had entered into an option agreement with Mines of Stirling Pty Ltd to acquire an 85% interest (diluting to 80%) in granted exploration licence EL5505 and prospecting licence application PL007319 (Snowstorm project).

Note 4: Refer Announcement to the ASX dated 28 April 2022 relating to granting of EL5422. This Tenement is held on trust for FAU pending the transfer being able to occur in accordance with applicable law relating to transfer of a granted tenement in Victoria.

Note 5: Refer Announcement to the ASX dated 30 January 2023 that FAU had entered into a binding tenement sale agreement to sell the tenements forming Mabel Creek Project to Talisman Mining Limited (ASX:TLM).

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

Aggregate amount of payments to related parties and their associates excluding GST included in item 6.1 of Appendix 5B for the quarter ended 30 June 2023:

Comprising:
	$A’000
Directors Services	80
Legal services provided by a legal firm of which a previous Director is a Partner. Services provided on normal commercial terms.	27
Appendix 5B – item 6.1 Total	107

Rule 5.5

Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow report

Name of entity

FIRST AU LIMITED (ASX: FAU)

ABN 65 000 332 918

Quarter ended (“current quarter”)

30 June 2023

Consolidated statement of cash flows	Current quarter $A’000	Year to date (6 months) $A’000
1. Cash flows from operating activities 1.1 Receipts from customers-share trading 1.2 Payments for (a) exploration & evaluation (b) development (c) production (d) staff costs (e) administration and corporate costs 1.3 Dividends received (see note 3) 1.4 Interest received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Government grants and tax incentives 1.8 Other-GST Refund Other receipts - Sale of Mabel Creek Project. Refer to ASX Announcement 30 January 2023 1.9 Net cash from / (used in) operating activities	- (494) - - (48) (138) - 2 - - - 26 100	16 (658) - - (100) (227) - 3 - - - 55 200
	(552)	(711)

ASX Listing Rules Appendix 5B (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

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Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow report

Consolidated statement of cash flows	Current quarter $A’000	Year to date (6 months) $A’000
2. Cash flows from investing activities 2.1 Payments to acquire or for: (a) entities: Non-refundable deposit & finders fee paid for proposal to acquire 100% of issued capital of PG Exploration Pty Ltd. Refer to ASX Announcement dated 13 February 2023 - Agreement to acquire Lithium Project. Acquisition did not proceed. Refer ASX Announcement 28 April 2023 (b) tenement (c) property, plant and equipment (d) exploration & evaluation (e) investments (f) other non-current assets 2.2 Proceeds from the disposal of: (a) entities (b) tenements (c) property, plant and equipment – deposit received in advance of sale of motor vehicle (d) investments (e) other non-current assets 2.3 Cash flows from loans to other entities 2.4 Dividends received (see note 3) 2.5 Other: Deposit received 2.6 Net cash from / (used in) investing activities	- - - - - - - - 75 - - - - -	(88) - - - - - - - 75 - - - - -
	75	(13)
3. Cash flows from financing activities 3.1 Proceeds from issues of equity securities (excluding convertible debt securities) Proceeds from issue of options 3.2 Proceeds from issue of convertible debt securities 3.3 Proceeds from exercise of options 3.4 Transaction costs related to issues of equity securities & options or convertible debt securities 3.5 Proceeds from borrowings	1,072 - - - - (66) -	1,500 - - - - (92) -

ASX Listing Rules Appendix 5B (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

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Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow report

Consolidated statement of cash flows	Current quarter $A’000	Year to date (6 months) $A’000
3.6 Repayment of borrowings: Premium funding 3.7 Transaction costs related to loans and borrowings 3.8 Dividends paid 3.9 Other (provide details if material) 3.10 Net cash from / (used in) financing activities	(18) - - -	(36) - - -
	988	1,372
4. Net increase / (decrease) in cash and cash equivalents for the period	511	648
4.1 Cash and cash equivalents at beginning of period 4.2 Net cash from / (used in) operating activities (item 1.9 above) 4.3 Net cash from / (used in) investing activities (item 2.6 above) 4.4 Net cash from / (used in) financing activities (item 3.10 above) 4.5 Effect of movement in exchange rates on cash held 4.6 Cash and cash equivalents at end of period	234 (552) 75 988 -	97 (711) (13) 1,372 -
	745	745
5. Reconciliation of cash and cash equivalents at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts	Current quarter $A’000	Previous quarter $A’000
5.1 Bank balances 5.2 Call deposits 5.3 Bank overdrafts 5.4 Other (provide details) 5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above)	745 - - -	234 - - -
	745	234

ASX Listing Rules Appendix 5B (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

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Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow report

6. Payments to related parties of the entity and their associates	Current quarter $A'000
6.1 Aggregate amount of payments to related parties and their associates included in item 1 (excl GST) 108 6.2 Aggregate amount of payments to related parties and their associates included in item 2 - Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity report must include a description of, and an explanation for, such payments.	108
	-

7. 7.1 7.2 7.3 7.4 7.5 7.6	Financing facilities Note: the term “facility’ includes all forms of financing arrangements available to the entity. Add notes as necessary for an understanding of the sources of finance available to the entity. Total facility amount at quarter end $A’000 Amount drawn at quarter end $A’000 Loan facilities - - Credit standby arrangements - - Other (please specify) - - Total financing facilities - - Unused financing facilities available at quarter end Not Applicable Include in the box below a description of each facility above, including the lender, interest rate, maturity date and whether it is secured or unsecured. If any additional financing facilities have been entered into or are proposed to be entered into after quarter end, include a note providing details of those facilities as well.	Total facility amount at quarter end $A’000	Amount drawn at quarter end $A’000
		-	-
		-	-
		-	-
		-	-

8. Estimated cash available for future operating activities	$A’000
8.1 Net cash from / (used in) operating activities (item 1.9) (552) 8.2 (Payments for exploration & evaluation classified as investing activities) (item 2.1(d)) - 8.3 Total relevant outgoings (item 8.1 + item 8.2) (552) 8.4 Cash and cash equivalents at quarter end (item 4.6) 745 8.5 Unused finance facilities available at quarter end (item 7.5) - 8.6 Total available funding (item 8.4 + item 8.5) 745 8.7 Estimated quarters of funding available (item 8.6 divided by item 8.3) 1.35 Note: if the entity has reported positive relevant outgoings (ie a net cash inflow) in item 8.3, answer item 8.7 as “N/A”. Otherwise, a figure for the estimated quarters of funding available must be included in item 8.7.	(552) - (552) 745 -
	745

ASX Listing Rules Appendix 5B (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

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Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow report

• 8.8 If item 8.7 is less than 2 quarters, please provide answers to the following questions: 8.8.1 Does the entity expect that it will continue to have the current level of net operating cash flows for the time being and, if not, why not?

Answer: No: The Company will contain net operating cash outflows within available resources and further capital raises will be considered. The Company is actively taking steps to divest non-core assets to raise additional cash to continue exploration on the Company tenements in Victoria. The Company has just completed a drill program at its Victorian project with exploration expenditure increased due to this over the quarter. Following the completion of this program the Company expects it will have lower operating costs which will allow the Company to preserve cash.

The Company is also actively undertaking steps to reduce its fixed costs and contracts. This will enable greater flexibility to manage operating cash flows during periods when the Company is not undertaking active exploration activities.

• 8.8.2 Has the entity taken any steps, or does it propose to take any steps, to raise further cash to fund its operations and, if so, what are those steps and how likely does it believe that they will be successful?

• Answer: Annual General Meeting was held on 29 May 2023 whereby the Company refreshed the Company’s capacity to make further issues without Shareholder approval under ASX Listing Rule 7.1 and / 7.1A. FAU. FAU has recently announced the sale of its Mabel Creek Project, which included $200,000 in cash consideration of which $200,000 has been received. Consideration from the sale of this project included listed shares which at the current date, market value approximates $87,000.

• 8.8.3 Does the entity expect to be able to continue its operations and to meet its business objectives and, if so, on what basis?

Answer: As the Company has refreshed its capital raising capacity, FAU can raise additional capital if required to continue its operations and meet its business objectives. Divesting non-core assets will enable the Company to concentrate on the tenements controlled in Victoria.

Note: where item 8.7 is less than 2 quarters, all of questions 8.8.1, 8.8.2 and 8.8.3 above must be answered.

Compliance statement

• 1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.

• 2 This statement gives a true and fair view of the matters disclosed.

Date: 28[th] July 2023

Authorised by the Board

(Name of body or officer authorising release – see note 4)

Notes

1. This quarterly cash flow report and the accompanying activity report provide a basis for informing the market about the entity’s activities for the past quarter, how they have been financed and the effect this has had on its cash position. An entity that wishes to disclose additional information over and above the minimum required under the Listing Rules is encouraged to do so.

ASX Listing Rules Appendix 5B (17/07/20)

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• See chapter 19 of the ASX Listing Rules for defined terms.

Appendix 5B

• Mining exploration entity or oil and gas exploration entity quarterly cash flow report

• 1. If this quarterly cash flow report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. If this quarterly cash flow report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report.

• Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.

• If this report has been authorised for release to the market by your board of directors, you can insert here: “By the board”. If it has been authorised for release to the market by a committee of your board of directors, you can insert here: “By the [ name of board committee – eg Audit and Risk Committee ]”. If it has been authorised for release to the market by a disclosure committee, you can insert here: “By the Disclosure Committee”.

• If this report has been authorised for release to the market by your board of directors and you wish to hold yourself out as complying with recommendation 4.2 of the ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations , the board should have received a declaration from its CEO and CFO that, in their opinion, the financial records of the entity have been properly maintained, that this report complies with the appropriate accounting standards and gives a true and fair view of the cash flows of the entity, and that their opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively.

ASX Listing Rules Appendix 5B (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

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