FREEHILL MINING LIMITED. - Capital/Financing Update 2020

News Release

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27 April 2020

Update on Proposed Acquisition of 750 HA El Dorado Project

Highlights

§ Due diligence progressing on the acquisition of 8 contiguous tenements totalling ~750 hectares – increasing Freehill’s total project area to over 1,250 hectares in Chile’s iron ore-copper-gold belt
§ El Dorado Project is highly prospective for magnetite, copper and gold mineralisation with recent reconnaissance sampling returning grades up to +45% Fe and 4.85% Cu and 22.8 g/t Au
§ El Dorado adjoins the northern boundary of Freehill’s existing project area and gives the Company the necessary scale to develop a large and high grade magnetite mining operation
§ An excellent address: El Dorado is situated at the southern end of the Chilean IOCG belt
§ Contract in place to immediately undertake a geophysical survey across the entire 750 hectare project area once sale is complete

Freehill Mining Limited (ASX: FHS ‘Freehill’ or ‘the Company’) is pleased to provide shareholders with this update on the proposed acquisition of ~750 hectares of highly prospective exploration acreage (‘El Dorado Project’) that adjoins the northern boundary of the Company’s existing Yerbas Buenas project area.

As previously reported (see ASX announcement 26 March 2020), Freehill has entered into a Heads of Agreement (‘HOA’) with Minera El Dorado SCM with both parties working cooperatively to conclude the transaction as soon as possible. Once complete, the highly complementary acquisition will increase Freehill’s footprint in Chile’s highly prospective iron-copper-gold (IOCG) belt to approximately 1,250 hectares. It gives the Company sufficient scale to develop a major magnetite mining operation given the presence of Fe mineralisation across the property which has been confirmed by recent sampling.

Recent Reconnaissance Sampling

As part of the due diligence process, Freehill’s geological personnel have recently carried out preliminary surface sampling on the southern portion of the El Dorado tenements, focussing on the artisanal mining areas that have demonstrated encouraging gold mineralisation at surface. Results of that survey are provided in Table 2 with multiple +45% Fe samples collected as well as gold grades up to 22.8 g/t Au and 4.85% Cu. Those results support data shown in Table 1 provided by Minera El Dorado SCM.

Additional detailed surface sampling is scheduled to be carried out as soon as the transfer of the concessions is completed. Additionally, arrangements have been made for a geophysical survey to commence once the sale has been completed and a 50m line spaced ground magnetics survey has been planned for the entire 750 hectares at the El Dorado Project.

Freehill Mining Ltd – iron ore producers |ACN 091 608 025 |www.freehillmining.com

|Tel: +61 (0)3 8658 5976 |email: [email protected] Melbourne Office |Level 24, 570 Bourke Street, Melbourne, Vic 3003 La Serena, Chile office |Level 7, Edificio Seville, Avenida Del Mar La Serena, Chile South America

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Comment

Chief Executive Officer Peter Hinner said: “Due diligence on El Dorado is progressing very well and we are moving quickly to conclude terms on this highly strategic acquisition.

“Impressive grades returned from recently completed reconnaissance sampling of up to 45% Fe, 4.85% Cu and 22 g/t Au have exceeded our initial expectations and reaffirm our confidence in the potential of El Dorado to considerably boost both our grade and scale in what is Chile’s premier iron ore-copper-gold address.

“Whilst we remain firmly focused on proving up a large high-grade magnetite resource at our existing Yerbas Buenas project, El Dorado gives us the ability to establish a very large magnetite mineral resource and establish the project as one of the largest magnetite mining operations. The upside it gives to our current MRE targets is substantial. As well, given we are in the IOCG belt, El Dorado also provides us with the opportunity to pursue high quality gold and copper mineralisation which is a very valuable addition to our portfolio.

“We are already putting in place plans to commence a detailed exploration program across El Dorado once the sale is completed and I look forward to providing shareholders with further updates as due diligence nears completion.”

Considerable detail and images from the recent field trip is provided below and the Company’s CEO will also be undertaking a webinar later this week to provide further details on the project.

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Figure 1: The 8 El Dorado Tenements being acquired shown as El Dorado 1-8

Freehill Mining Ltd – iron ore producers |ACN 091 608 025 |www.freehillmining.com

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Sample Code	North	East	Datum	Fe %	Au g/t	Cu%
P106 P105 P11A P107 P9 P110 P09A P116 P6A P6A P105A P120 P124 P118 P30 P33 P27	6725424 6725427 6725406 6725411 6725401 6725360 6725401 6725406 6725347 6725347 6785427 6728780 6725426 6725129 6724691 6724702 6724597	280203 280181 280288 280240 280284 280248 280284 280288 279226 279226 280181 280405 279737 280743 280502 280282 280352	WGS84 WGS84 WGS84 WGS84 WGS84 WGS84 WGS84 WGS84 WGS84 WGS84 WGS84 WGS84 WGS84 WGS84 WGS84 WGS84 WGS84	19.93 9.88 20.81 16.33	22.8	0.65
					9	3.3
					11.4	0.55
					9.6	1.55
				32.15	9.6	0.39
				13.01	10.2	0.65
				50.28	2.1 0.31 0.26 0.4	0.23
				24.47		1.59
				34.58		0.36
				22.06 26.34		4.85
					20.3	0.88
				38.51	0.09	1.12
				7.22 18.4	3.3	4.53
					0.55 0.27 0.28 0.05	0.46
				29.36		0.2 0.1 0.3
				35.71
				45.81

Table 1 - Rockchip sampling conducted in southern portion of El Dorado property and provided by Minera El Dorado SCM geologist. Significant grades of iron, copper and gold highlighted

Sample Code	North	East	RL	Datum	Au g/t
EN01 EN02 EN03 EN04 EN05 EN06 EN07 EN08 EN09 EN10 EN11	6725408 6725408 6725394 6725387 6725387 6725387 6725387 6725387 6725387 6725425 6725362	280216 280216 280283 280300 280300 280300 280300 280300 280300 280351 280423	328 328 299 296 296 296 296 296 296 354 342	WGS84 WGS84 WGS84 WGS84 WGS84 WGS84 WGS84 WGS84 WGS84 WGS84 WGS84	0.78
					10.98
					0.08 0.03
					4.29
					0.17
					1.77
					2.28
					0.02
					4.01
					0.62

Table 2 – Confirmatory rockchip sampling conducted in southern portion of El Dorado property. Samples taken independently by Yerbas Buenas Spa ( Freehill) geologist. Significant grades of gold highlighted

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Figure 2: Area sampled by Freehill and Minera El Dorado SCM geologists in southern portion of El Dorado tenements near old artisanal tunnels and excavations.

Freehill Mining Ltd – iron ore producers |ACN 091 608 025 |www.freehillmining.com

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Figure 3: Sampling locations listed in table 2 and figure 2 showing some of the artisanal gold mining areas

District Geology and Close Proximity to Major Projects

Importantly, the acquisition will provide an additional 4km of northern reach along the geologically significant Atacama-El Tofo fault zone:

§ 11km to the NNE is Latin America’s oldest iron ore mine, El Tofo;
§ 7km to the NE is the region of Higuera which hosts numerous copper mines and resources;
§ 15km to the NNE lies CAP’s new El Tofo Norte magnetite project;
§ 22km along the same mountain range lies Andes Iron’s $1 billion Dominga Cu/Fe project.
Freehill Mining Ltd – iron ore producers |ACN 091 608 025 |www.freehillmining.com
- |Tel: +61 (0)3 8658 5976 |email: [email protected]

Melbourne Office |Level 24, 570 Bourke Street, Melbourne, Vic 3003 La Serena, Chile office

|Level 7, Edificio Seville, Avenida Del Mar La Serena, Chile South America

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The El Dorado Project is located in the La Negra Formation in an area between the El Romeral fault and the El Tofo fault (Figure 5) at the southern end of a zone of magnetite mines that are currently in development (Tofo Norte, Dominga and Pleito Cristales) with all having resources of more than 1,000 million tonnes of iron.

Within 30km of the El Dorado Project there are three copper-gold concentrating plants that have environmental permits in force.

The Atacama Fault System (AFS), also locally known as the Romeral Fault System, is located approximately 3- 4 km to the east of the Yerbas Buenas and El Dorado projects and is striking NNE. The area is generally obscured beneath alluvial gravels and sand that has filled the wide Choros Altos valley.

Subsidiary distensional faults, related to the AFS, are believed to control vein mineralisation within the La Higuera region, which is located to the east of the AFS, as well as numerous other deposits in the area.

Twenty two kilometres north of the El Dorado Project area, is the Santa Dominga gold mine which was mined in the 70’s and 80’s. Mineralisation at Santa Dominga consisted of a gold vein 500 metres long, 2 metres wide and 250 metres deep and production was thought to be 3,000,000 tons @ 3g/t Au. The main vein coincides with the trace of the El Tofo fault and corresponds to the known mineralisation of the Atacama Fault System. The image in Figure 4 shows the relative location of these various features including the Choros Altos valley.

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Figure 4: North looking view showing El Dorado tenements in light blue outline and other iron ore and copper projects in the area. The two mountain ranges of El Tofo and La Higuera and the Choros Altos valley in between is clearly visible. The image shows the Induced Polarisation structures on the north eastern corner of the Yerbas Buenas project area which are expected to extend into the El Dorado area.

The El Tofo fault, which is associated with the Santa Dominga mineralisation continues south through the El Dorado project and is thought to control the known mineralisation at El Dorado.

Quartz-limonite-copper-gold mineralisation has been identified in the northern extremity of the Yerbas Buenas project area and is generally associated with historic artisanal mining with most veins trending NW up to 1 to 2 metres thick. These veins appear continuous and are up to 900 metres in length and known locally as Veta Gavilán.

Freehill Mining Ltd – iron ore producers |ACN 091 608 025 |www.freehillmining.com |Tel: +61 (0)3 8658 5976 |email: [email protected] Melbourne Office |Level 24, 570 Bourke Street, Melbourne, Vic 3003 La Serena, Chile office |Level 7, Edificio Seville, Avenida Del Mar La Serena, Chile South America

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Figure 5 shows a portion of the regional geology highlighting known artisanal mines plus major and minor structural faults. The geological structures shown in the map are sourced from the official Chilean geological survey.

Previous Exploration Within the El Dorado Project Area

A Toronta listed company Azul Ventures Inc, TSX Venture AZL, which operated in Chile as Minera Azul Ventures Limitada, carried out exploration to the immediate east of the El Dorado Project area and west of the township of La Higuera just over a decade ago.

The following data and commentary are taken from a detailed project technical report prepared by Michael Easdon, M.Sc., CPG for Minera Azul Ventures Limitada on Azul Ventures La Higuera copper-gold project on October 11[th] , 2011.

The report described the work performed on the Project by or on behalf of Azul and was in compliance with the requirements of Canadian National Instrument (“NI 43-101”).

Azul Ventures exploration focused on their two concession targets known as La Higuera and Caballo Blanco. The Caballo Blanco concession abutted the eastern side of the El Dorado area whilst their La Higuera project was just to the east of Caballo Blanco and west of the township of La Higuera. Exploration included Ground Magnetics, Induced Polarisation, both Reverse Circulation and diamond drilling programs and channel sampling within old underground mines. Drilling at Caballo Blanco referred to in reports was historical and carried out prior to Azuls ownership.

Planned follow up exploration of 14,000m of drilling at La Higuera and 5,000m at Caballo Blanco by Azul was not undertaken due to funding issues at the time.

The following commentary has been sourced from Azul’s technical report and company presentations.

Mining activity in the La Higuera region dates back to atleast the late 18[th] century; however, there had been no known modern or published exploration conducted until Azul Ventures completed a rock sampling program, geophysical work and 4,088m of drilling.

At least 40 copper sulphide bearing veins were reported to have been variously exploited in the district and as many as eleven smelters are indicated to have been in operation at La Higuera.

There has been some previous exploration carried out and there are several small copper workings that warrant follow-up and represent an exploration target with significant merit.

A total of 15 broad spaced reconnaissance holes were drilled, with 10 RC holes by Latin American Copper (LAC UK) and 5 diamond holes by Peregrine Minerals. Several holes returned significant chalcopyrite and magnetite intersections.

The ground magnetic survey completed by Azul at Caballo Blanco generated a moderate amplitude anomaly and several exploration drill holes by others were located within the anomaly. Induced Polarization Resistivity geophysical results confirmed that the magnetic anomalies are coincident with zones of sulphide mineralisation.

Magnetite is the principal iron oxide mineral and is responsible for generating extensive magnetic anomalies which assist in providing drill targets. The associated copper (and gold) mineralisation typically occurs with pyrite within and adjacent to the veins.

The magnetic iron concentrate produced from Davis Tube tests on drill core samples ranged from 68.89% to 70.67% Fe (average 69.99% Fe), which is a high grade concentrate. Average recovery was 84.5%.

Freehill Mining Ltd – iron ore producers |ACN 091 608 025 |www.freehillmining.com

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Assays from historical drilling at Caballo Blanco showed :

§ CAB-006 -82m @ 0.35% Cu, 19.24% Fe.
§ CB-01 -10m @ 0.49% Cu,
-40m @ 0.40% Cu, 18.5% Fe,
-38m @ 0.22% Cu, 19.72% Fe (with 12m at 0.40% Cu),
-6m@ 0.62% Cu, 19.7% Fe, -8m@ 0.62% Cu, 21.9% Fe.

In addition a 1000m x 200m magnetic anomaly was identified at La Higurera concession with copper sulphides associated with magnetites.

Exploration highlights of La Higuera RC and diamond drilling (4,088m) in May 2012 include:

§ 24.0m of 0.47% Cu and 36.26% Fe
§ 9m of 0.97% Cu and 12.07% Fe
§ 4.1m of 1.46% Cu and 13.86% Fe

Underground channel sampling (222 samples):

§ 23m of 1.20% Cu and 32.7% Fe
§ 23m of 0.68% Cu and 35.9% Fe

Freehill Mining Ltd – iron ore producers |ACN 091 608 025 |www.freehillmining.com

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|Tel: +61 (0)3 8658 5976 |email: [email protected] |Level 24, 570 Bourke Street, Melbourne, Vic 3003 |Level 7, Edificio Seville, Avenida Del Mar La Serena, Chile South America

Melbourne Office La Serena, Chile office

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Figure 5: Geology of the El Tofo & La Higuera districts showing major fault systems. Image also shows location of various gold and copper workings.

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Figure 6: El Dorado tenements 1-8 currently under negotiation

-ENDS

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Competent Persons Statement

The information in this report that relates to exploration results is based on information compiled by Mr Peter Hinner, a Competent Person who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Hinner is a full-time employee of Freehill Mining Ltd and 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’ (the JORC Code 2012). Peter Hinner consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

About Freehill Mining Limited

Freehill Mining Limited (ASX: FHS) is a mineral exploration company focused on the development of its 100%-owned Yerbas Buenas magnetite project in Chile. Yerbas Buenas has proven magnetite mineralisation as well as being prospective for both gold and copper mineralisation. Drilling results to date have so far demonstrated that magnetite mineralisation extends along at least a 2km contiguous corridor of what is shown by geophysics to be a 3km long structure extending from the northern boundary to southern boundary of the property. The company has also identified copper and gold mineralisation testing has commenced with diamond drilling on two IP anomalies highlighted in earlier exploration.

For further information, please contact: Peter Hinner Paul Davies Chief Executive Officer Chief Financial Officer Freehill Mining Limited Freehill Mining Limited +61 410569635 +61 419 363 630

Media & investor relations inquiries: Ben Jarvis, Six Degrees Investor Relations: +61 413 150 448

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Freehill Mining Ltd – iron ore producers |ACN 091 608 025 |www.freehillmining.com

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– JORC Code, 2012 Edition Table 1 report