GATEWAY MINING LIMITED — Capital/Financing Update 2018

Sep 24, 2018

ABN: 31 008 402 391 Level 11, 52 Phillips Street Sydney NSW 2000 GPO Box 225 Sydney NSW 2001 Tel: 61 2 8316 3998 Fax: 61 2 8316 3999 Website: www.gatewaymining.com.au

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ASX Announcement: 25 September 2018

10KM LONG PARALLEL GOLD TREND IDENTIFIED AT GIDGEE Eastern margin of the Montague Granodiorite identified as major new exploration target

HIGHLIGHTS

• An extensive ~10km long gold mineralised trend extending north into Gateway’s 100%-owned Gidgee Project has been identified immediately along strike from the 200,000oz Howard’s Gold Deposit[1] .

• This new exploration target runs parallel to the 4km long prospective corridor identified during the Company’s maiden Reverse Circulation and Aircore drill programs, including the three advanced drilldefined prospects at Whistler, Montague and Caledonian (ASX release: 23 August 2018).

• The prospectivity of the new gold trend is highlighted by the following attributes:

  • It extends immediately along strike from an established 200,000oz gold resource;

  • There has been little or no effective historical drill testing along the entire 10km strike length;

  • The presence of a number of historical gold workings developed within the trend demonstrates the likely presence of high-grade gold; and

  • There is only limited outcrop and the gold trend is largely covered by transported cover.

• Initial testing of this regional scale gold trend will include surface geochemical sampling, aircore drilling and geological mapping. Specific targets will then be considered for follow-up reverse circulation drilling. Surface sampling and mapping to commence immediately.

Gateway Mining Limited (ASX: GML) ( Gateway or Company ) is pleased to advise that it has confirmed that the Eastern Margin of the Montague Granodiorite has been recognised as a new major exploration target within its 100% owned Gidgee Gold Project, WA (Figure 1).

This newly identified gold trend extends for approximately 10km and remains largely untested by previous exploration activities. Key features of this significant gold trend include (Figure 2):

• It has been identified as a major structural corridor with strong similarities to the highly mineralised Western Margin of the Montague Granodiorite that hosts the advanced high-grade Whistler and Montague prospects, as well as a portfolio of advanced high-grade exploration targets.

• The gold trend hosts the 200,000oz Howard’s Gold Deposit, located on the immediate southern margin of Gateway’s tenements. This mineralisation has strong potential to extend immediately along strike into Gateway’s Gidgee Project.

• Previous exploration has been limited to erratic, shallow rotary air blast drilling that consistently has not penetrated the shallow transported cover.

• The presence of a number of historic prospector shafts and pits demonstrates the likely presence of highgrade gold mineralisation within this extensive new prospective gold corridor.

1 See HRN website for full details of Horizon Gold Limited’s JORC Resource reporting.

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Figure (1): Gidgee Gold Project Location Plan

NEXT STEPS

The Eastern Margin of the Montague Granodiorite has been identified as a major new, regionally significant exploration target that has remained largely un-explored despite hosting a 200,000oz gold resource. Planned exploration activities along this ~10km gold trend include immediate programs of surface geochemical sampling and associated geological mapping, followed by programs of reconnaissance aircore drilling.

MANAGEMENT COMMENT

Gateway’s Managing Director, Peter Langworthy, said the ongoing data review and targeting program at Gidgee was continuing to generate exciting new targets – highlighting the substantial and largely untapped exploration potential within the Company’s broader ground position.

“While our focus has been on the successful drilling programs completed recently on the Western Margin of the Montague Granodiorite, we have also continued to systematically evaluate the exploration opportunities across the greater project area by reviewing historical data and undertaking a project-wide targeting exercise,” he said.

“Based on this work, we now believe that the Eastern Margin of the granodiorite has the potential to be equally as prospective as the highly mineralised Western Margin – only, it has never been explored.

“The Western Margin is a major, regional structural corridor on the margin of the Montague Granodiorite. It has a demonstrated gold endowment which is highlighted by the 200,000oz Howard’s gold deposit on the southern border of our project, but basically it has never been explored outside of some sporadic shallow historical drilling,” he continued.

“This is a major new additional target position which runs parallel to the 4km long prospective gold corridor we have already outlined between the advanced Whistler-Montague-Caledonian prospects. We now intend to systematically evaluate this ~10km long zone through quality programs of surface geochemical sampling and geological mapping, followed by aircore drilling.”

“This work will be undertaken in parallel to the ongoing resource evaluation and exploration work programs at Whistler and Montague as well as upcoming exploration programs targeting a series of other high priority advanced drill targets on the Western Margin.”

Peter Langworthy Managing Director

For and on behalf of GATEWAY MINING LIMITED

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Figure (2): Eastern Margin gold mineralised trend. Note position of Howards resource on southern margin of Gateway tenements

Competent Person Statement

The information in this report that relates to Exploration Results or Mineral Resources is based on information compiled or reviewed by Mr Peter Langworthy who is a consultant to Gateway Mining Ltd and is a current Member of the Australian Institute of Mining and Metallurgy. Mr Peter Langworthy has sufficient experience, which is relevant to the style of mineralisation and types of deposit under consideration and to the activities undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code of Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Langworthy consents to the inclusion in the report of the matters based on the information in the form and context in which it appears.