FORRESTANIA RESOURCES LIMITED - Capital/Financing Update 2021

28 October 2021 ASX Announcement

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RC DRILLING TO COMMENCE AT THE FORRESTANIA PROJECT

Highlights:

Maiden drilling programme to commence at the Lady Lila Gold Prospect.
Mineralisation is open along strike and at depth, providing opportunity for substantial and rapid growth.
Program aims to define potential down plunge extent of mineralisation.

Forrestania Resources Limited (ASX: FRS) ( Forrestania or the Company ), is pleased to advise that reverse circulation (RC) drilling is scheduled to commence in the coming week at the Lady Lila Gold Prospect, located at the Company’s Forrestania Lithium, Gold and Nickel Project.

Lady Lila is located just 17km southwest of the historic Bounty Mine site and hosts an Inferred Mineral Resource of 541,000 tonnes grading 1.38 grams per tonne for 24,000 ounces of gold.

Chief Executive Officer, Melanie Sutterby, commented: “The anomalous gold zone at Lady Lila is currently defined over a 2-kilometre length by shallow, wide-spaced drilling. In areas where the lode has been better defined, mineralisation is steeply east dipping, strikes north-south, averages 10 metres wide and contains grades between 2 to 5g/t gold.

Lady Lila is currently the highest-ranking gold target at Forrestania, given the highgrade tenor of historical intercepts that are wide open, both along strike and at depth.

High-grade intercepts of note include 6m grading 9.57g/t gold from 26m including 1m at 54.50 g/t gold from 26m and 12m grading 1.50g/t gold from 52m.

Lady Lila has similar characteristics to the historical Bounty Gold Mine, which is very encouraging. Gold is hosted at Lady Lila by a Banded Iron Formation, the same geological host as at Bounty, and mineralisation is associated with quartz veining and sulphide alteration, also distinctive features of the Bounty deposit.

We also see a marked gold depletion zone at depths above 60m at Lady Lila. This is significant because the average depth of weathering is up to, and over, 70m below the surface. A similar depletion zone occurs at Bounty and gold is known to increase in tenor at depth.

There are only a handful of holes collectively drilled into this deposit, and many have been focused on defining the existing high-grade intercepts.

From a geological perspective, the existing drill intercepts are potentially “the tip of an iceberg”. Herein lies a great opportunity for Forrestania to rapidly define the size of Lady Lila and deliver some tangible value for our shareholders.”

Forrestania Resources Limited (ABN 41 647 899 698) Suite 2 38 Colin St West Perth 6005 Australia P: +61 (0)8 6245 9890 E: [email protected] W: forrestaniaresources.com.au

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The drilling program will comprise 14 RC holes for a total of approximately 2000m and will test gold mineralisation to an average depth of 150m on seven cross sections, spaced 50m apart. Samples will be analysed with a comprehensive multi-element suite, to aid in lithological identification and assess the potential for other prospective elements such as lithium and nickel.

The existing Inferred Resource at Lady Lia was constructed in 2016 in accordance with JORC 2012 guidelines, using holes drilled before 1999. Around 85% of the drilling is of low confidence, either RAB or from the pre-1999 era and averages 60m depth.

The defined Mineral Resource is comprised of three individual lenses reflecting gold mineralisation above a nominal cut-off of 0.5g/t gold. These lenses dip between 75-85 degrees east and strike approximately north south. Lenses vary in width from two to five metres, with strike lengths varying between 50-400m over a 1.4km zone.

Mineralisation extends to depths between 50 and 80m below surface with gold hosted by a Banded Iron Formation (BIF), enveloped by sediments.

Importantly, the existing drilling at Lady Lila, and therefore the Mineral Resource, does not extend far into fresh rock; drill sections show that mineralisation is open at depth (Figure 2 and Figure 3).

Analysis of historical exploration by the Company suggests that drilling has not effectively tested basement rocks below the depth of weathering along the mineralised trend.

The geochemistry of the regolith profile and geology of Lady Lila has been compared to the known deposits in the area such as Bounty and Blue Vein. Up to 20m of transported cover is sited above, and masks, other gold deposits in the area. Thick transported cover is well known to obscure underlying gold deposits and any potential or resultant geochemical anomalies. Lady Lila appears to have a similar transported cover material, up to 3m to over 10m deep.

In line with the Company’s commitment to conserving biodiversity values within the Project area, Forrestania conducted flora and fauna surveys over priority drilling so that it can avoid or mitigate significant impact to the environment in which we operate. A Program of Work (PoW) has been approved by the Department of Mines, Industry and Resources (DMIRS) for the first drilling phase.

Next Steps

Environmental surveys are currently underway for the remining Lady Lila Project tenure, and the Company plans to test the potential north-south strike extensions of the deposit once the requisite approvals are received.

Detailed environmental surveys are also underway across the Gem Mining Lease 77/549, where the Company’s compelling lithium-caesium-tantalum (LCT) pegmatite targets are located.

With regards to the Company’s LCT prospects, assay results are awaited from samples acquired over two recent field campaigns. Soil and rock chip samples were taken from pegmatites and other gold and nickel prospective lithologies.

Results are under analysis from Deep Ground Penetrating Radar (DGPR) surveys conducted across the Gem and Crossroads Prospect areas. Forrestania intends to use the geochemical and geophysical data in combination for effective and high impact lithium/LCT drill targeting.

FRS:ASX Announcement 2

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