GATEWAY MINING LIMITED — Interim / Quarterly Report 2021

Jan 28, 2021

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

ASX Announcement: 29 January 2021

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DECEMBER 2020 QUARTERLY ACTIVITIES REPORT

Significant high-grade gold discovery between cornerstone Whistler and Montague deposits as 2020 drilling program substantially expands potential of the Gidgee Gold Project

HIGHLIGHTS

• 30,000m air-core and RC drilling program successfully completed at the 100%-owned 1,000km[2 ] Gidgee Gold Project, Western Australia. This paves the way for an aggressive new program of RC, diamond and air-core drilling scheduled to commence in February 2021.

• A substantial zone of strong shallow gold mineralisation, not previously tested by RC drilling, was discovered in drill holes GRC550 and GRC538 at the Northwest Margin prospect between Whistler and Montague-Boulder:

• GRC550: 15 metres @ 3.0g/t Au from 104m and; 10 metres @ 9.2g/t Au from 140m

▪ GRC538: 10 metres @ 2.5g/t Au from 114m

• These newly identified thick, high-grade mineralised intersections are from drilling spaced ~150m along strike and have defined a significant new mineralised structure, referred to as the “Lower Zone”, below previous wide-spaced shallow drilling. Importantly, the newly-defined structures remain open in all directions, opening up an exciting new exploration opportunity for the Company.

• Significant intercepts returned from the Montague Lodes, located in shallow positions above the newly discovered “Lower Zone”, which are interpreted as the northern extension of the structures that host the 120koz Montague-Boulder Resource, located ~1km to the south. These structures are located in the immediate hanging wall of the newly discovered “Lower Zone”. Significant assays include:

• GRC566: 8 metres @ 3.0g/t Au from 92m

• ▪ GRC534: 6 metres @ 6.1g/t Au from 88m ▪ GRC535: 3 metres @ 5.5g/t Au from 46m ▪ GRC542: 6 metres @ 2.2g/t Au from 67m ▪ GRC496: 6 metres @ 6.0g/t Au from 54m ▪ GRC488: 10 metres @ 1.5g/t Au from 37m* _(Previously announced result)[1]_

• RC drilling on the northern and southern flanks of the Montague-Boulder Mineral Resource indicates the continuation of the host shear structure within the mafic volcanic unit, with several significant intercepts returned from this structure outside the existing 120koz Mineral Resource estimate, including:

• GRC609: 5 metres @ 6.9g/t Au from 67m (~100m south of existing Resource)

• ▪ GRC612: 3 metres @ 3.7g/t Au from 88m (~160m south of existing Resource)

• New results from in-fill drilling within the 120koz Montague-Boulder Mineral Resource area confirm the existing interpretation, with several outstanding high-grade intercepts including:

• GRC588: 6 metres @ 6.2g/t Au from 96m

• ▪ GRC591: 3 metres @ 9.0g/t Au from 62m ▪ GRC625: 7 metres @ 4.6g/t Au from 112m

1 See ASX announcement dated 1 September 2020

▪ GRC594: 2 metres @ 4.3g/t Au from 97m ▪ GRC593: 6 metres @ 3.6g/t Au from 11m

• These results from within the existing Mineral Resource footprint confirm the continuity of the highgrade mineralisation, complementing the results reported just before Christmas that indicate the potential for additional lodes beneath the existing interpreted positions. Previously reported intercepts include[2] :

• GRC599: 5 metres @ 17.4g/t Au from 83m

• ▪ GRC583: 5 metres @ 2.7g/t Au from 115m ▪ GRC603: 2 metres @ 5.6g/t Au from 178m

• An air-core drilling program completed over the “Achilles Corridor” has defined a major new gold target that extends the existing Achilles Oxide Target for a further 1.4km strike length to the immediate south of the historical Rosie Open Pit. This program of systematic air-core drilling has defined several largescale parallel gold anomalies within this trend which remain open to the south for a further 2.4km (to GML’s tenement boundary).

• These results confirm the presence of significant gold mineralisation along multiple mineralised thrust structures running along the margin of and internal to the western margin of the Montague Granodiorite. Significant results from this drilling include:

  • GWAC0480: 3m @ 5.6g/t Au from 16m (BOH), including 1m @ 16.2g/t Au

  • ▪ GWAC0501: 12m @ 1.4g/t Au from 24m, including 4m @ 3.0g/t Au ▪ GWAC0386: 8m @ 1.6g/t Au from 12m ▪ GWAC0302: 4m @ 1.6g/t Au from 28m ▪ GWAC0402: 4m @ 1.4g/t Au from 8m and 5m @ 0.7g/t Au from 52m (BOH) ▪ GWAC0453: 14m @ 0.5g/t Au from 40m (BOH), including 4m @ 1.1g/t Au ▪ GWAC0553: 16m @ 0.8g/t Au from 36m ▪ GWAC0482: 4m @ 1.8g/t Au from 36m ▪ GWAC0486: 4m @ 1.0g/t Au from 24m ▪ GWAC0497: 4m @ 1.9g/t Au from 28m ▪ GWAC0567: 4m @ 2.1g/t Au from 36m ▪ GWAC0281: 16m @ 0.5g/t Au from 32m, including 4m @ 1.2g/t Au ▪ GWAC0548: 28m @ 0.6g/t Au from 32m, including 8m @ 1.1g/t Au

• Within this extensive mineralised trend there are a series of historical prospects identified by RC and Rotary Air Blast (RAB) drilling that confirm the presence of exceptional zones of high-grade gold mineralisation within the granodiorite. These results include[3] :

▪	GRB1231:	20m @	15.6g/t Au from 25m
▪	GRC015:	17m @	14.7g/t Au from 30m
▪	GRB1253:	15m @	5.1g/t Au from 35m
▪	GRB1580:	5m @	22.2g/t Au from 37m

• The Company was successful in obtaining an Exploration Incentive Scheme (EIS) co-funding of a deep diamond drilling program to complete a series of key stratigraphic tests around the margin of the Montague Granodiorite. This drilling is scheduled to commence in February 2021.

2 See ASX announcement dated 18 December 2020 3 See ASX Announcement dated 8 October 2018

GIDGEE GOLD PROJECT, WA (GML: 100%)

During the Quarter, Gateway completed a major new drilling campaign at the Gidgee Gold Project, comprising 30,000m of Reverse Circulation ( RC ) and air-core drilling which commenced in the September 2020 Quarter. This drilling was primarily aimed at testing targets associated with the Northwest Margin of the highly prospective Montague Granodiorite Dome.

An extensive 15,016m air-core program was completed at the Achilles South target, testing the southern extensions of the near-surface mineralisation outlined to date along the Rosie thrust structure. Following the air-core program, a 13,000m RC program was undertaken. This program was designed to systematically test the Northwest Margin of the Montague Granodiorite Dome, for approximately 1.6km north of the Montague-Boulder open pit, as well as to infill key areas of the existing Montague-Boulder Inferred Mineral Resource.

The Company also received approval for a grant under the Western Australian Government’s Exploration Incentive Scheme (EIS) for co-funding of a deep diamond drilling program at Gidgee. This program will involve the drilling of four deep (+600m) holes at key positions along the margin of the Montague Granodiorite, in order to understand the geometry and structural controls of emplacement of the dome, with a view to refining its exploration models.

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Figure (1): Gidgee Gold Project Location Plan

MONTAGUE GRANODIORITE DOME REVERSE CIRCULATION DRILLING

Following completion of the Achilles South air-core program, Gateway commenced an RC drilling program at the Gidgee Gold Project, with approximately 13,000m of drilling completed. Drilling was successful in systematically testing the Northwest Margin of the Montague Granodiorite, which was shown to be prospective for hosting geological extensions of the Montague-Boulder mineralised system along a strike of 1.6km north of the Montague-Boulder open pit. In addition, drilling was undertaken to in-fill key areas of the current Inferred Montague-Boulder Mineral Resource.

NORTHWEST MARGIN

During the quarter, significant intersections were reported from systematic RC drilling of the Northwest Margin, 1.6km north along strike from the 120,000oz Montague-Boulder Inferred Mineral Resource. This program was undertaken after first-pass testing of the Whistler West traverse successfully intersected high-grade gold mineralisation in prospective shear zones, as reported during the September 2020 Quarter.

The systematic RC program was designed to drill on regular spaced sections along the entire 1.1km strike length, testing prospective geology to a nominal 120m below surface.

The drilling was undertaken on approximately 100m spaced sections and was designed firstly to identify the mineralised structures that host the resource at Montague-Boulder, and to identify high-grade domains hosted within these broader structures.

Initial results from the drilling program identified what is considered to be a significant new high-grade gold discovery and confirmed the presence of multiple structures with strong high-grade domains (Figure 2).

In terms of the wider project, these results reinforce the Company’s view that the entire ~8km long western margin of the Granodiorite represents a large-scale gold system that has only previously been subject to cursory programs of exploration.

Lower Zone

The Lower Zone is interpreted as a series of moderately dipping shear zones within the mafic volcanic on the margin of the granodiorite (Figure 3). Significant results from the only two holes drilled into this structure are:

• GRC550: 15 metres @ 3.0g/t Au from 104m and; 10 metres @ 9.2g/t Au from 140m

• • GRC538: 10 metres @ 2.5g/t Au from 114m

These two holes are spaced 150m along strike and, as such, the structures remain open in all directions. Several holes in proximity will need to be deepened to test the position and additional holes drilled down-dip and along strike. Mineralisation in this new deeper zone appears to be similar to that encountered in shallower shear zones, with extensive biotite and silica alteration, sporadic quartz veining and minor pyrite and trace chalcopyrite sulphide mineralisation.

Several additional holes were drilled to follow-up on these excellent intersections, with results still pending as at the end of the Quarter.

Montague Lodes

The Montague Lodes are interpreted as the northern extension of the structures that host the Montague-Boulder Mineral Resource, located approximately 1km to the south. These moderately dipping structures are located in the immediate hanging wall of the newly discovered “Lower Zone”. Significant results include:

• GRC566: 8 metres @ 3.0g/t Au from 92m

• • GRC534: 6 metres @ 6.1g/t Au from 88m

• GRC535: 3 metres @ 5.5g/t Au from 46m

• GRC542: 6 metres @ 2.2g/t Au from 67m

• GRC496: 6 metres @ 6.0g/t Au from 54m*

• GRC488: 10 metres @ 1.5g/t Au from 37m*

• (*Previous announced result)[4]

The mineralised structures are close to surface and it appears that the mineralisation improves at depth in fresh rock, as demonstrated by GRC566 (8m @ 3.0g/t Au) and GRC534 (6m @ 6.1g/t Au). GRC566 (8m @ 3.0g/t Au) was drilled 350m north of the Montague-Boulder Resource and demonstrates excellent potential for the Resource to be expanded. Drilling has now been completed over this position and results are awaited.

This RC program has successfully demonstrated that the Northwest Margin of the Montague Granodiorite dome is highly prospective for substantial gold mineralisation, hosted in a variety of structural and lithological settings.

4 See ASX announcement dated 1 September 2020

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Figure (2): Northwest Corridor RC drilling with significant intercepts, including the new Lower Zone, and previous drilling greater than 50m deep

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Figure (3): RC drill cross-section 6,967,850mN highlighting significant mineralisation in the new lower shear position

Montague-Boulder Resource In-fill and Extensional Drilling

During the Quarter, RC drilling at the Gidgee Gold Project was completed at the Montague-Boulder deposit. The overall program consisted of 47 holes for 5,239m, with holes drilled to systematically in-fill the existing Mineral Resource area on nominal 40m x 40m spacing. In addition, nominal 60m spaced sections of RC holes were completed on the flanks of the Mineral Resource, tracing the host structure immediately along strike to the north and south of the existing Inferred Resource boundary for approximately 180m (see Figure 4). Assay results for this drilling were released toward the end of the Quarter, as well as subsequent to the end of Quarter.

High-grade intersections were returned from several holes stepping out immediately to the south of the existing 120koz Montague-Boulder Mineral Resource, hosted within the moderately dipping, mafic volcanic hosted shear zone that hosts the majority of mineralisation within the Resource. The significant intersections include:

• GRC609: 5 metres @ 6.9g/t Au from 67m

• • GRC612: 3 metres @ 3.7g/t Au from 88m

As illustrated in Figure 4, these intersections are located between 100m and 160m south of the A$2,400/oz optimal shell that constrains the existing Montague-Boulder Inferred Mineral Resource and indicate the potential for further extensions. These outstanding new results provide further clear evidence of the extent of mineralisation within this shear system on the Northwest Margin of the Montague Granodiorite Dome. Recent RC drilling by Gateway has highlighted high-grade mineralisation in this position for up to 1.1km north of the Montague-Boulder Mineral Resource. The mineralisation intersected in holes GRC609 and GRC612 demonstrates that the mineralisation continues to the south as well and is open for a further 500m to the historical Caledonian Northeast open pit (see Figure 5).

Several key sections of the Montague Mineral Resource area were also selected for deeper drilling, to test for potential additional mineralised structures below the existing structures defined in the current Mineral Resource estimate. This potential for additional structures within both the main mafic volcanic host-rock sequence, as well as within the Montague Granodiorite body itself has been recognised as a result of Gateway’s systematic evaluation of the existing known mineralisation along the Northwest margin of the Granodiorite Dome.

New structures below the mafic volcanic hosted shear zone lodes were intersected at depth (Figure 6), with several high-grade intersections returned including:

• GRC599: 5 metres @ 17.4g/t Au from 83m

• • GRC603: 2 metres @ 5.6g/t Au from 178m

These mineralised shears appear to be parallel to the overall mafic stratigraphy, with the mineralisation associated with biotite alteration and sporadic quartz veining and trace sulphides (pyrite). The intersection in GRC603 is interpreted to represent an up-dip position of Gordon’s Lode, intersected 140m further north.

In addition, follow-up drilling targeting the previously discovered Gordon’s Lode mineralisation (GRC330: 4 metres @ 24g/t Au from 241m[5] ) was successful in intersecting a visually discrete mineralised structure 40m down-dip from the high-grade intercept in GRC330. This structure was mineralised, and opens up the potential for this lower lode to be further extended both along strike and down-dip:

• GRC596: 2 metres @ 3.0g/t Au from 235m, and 2 metres @ 2.1g/t Au from 240m

Also, drilling to test below the shallow granodiorite-hosted mineralisation mined as part of the historical open pit mining campaign successfully intersected what appears to be a new zone of granodiorite-hosted mineralisation (see Figure 4):

• GRC583: 5 metres @ 2.7g/t Au from 115m

Mineralisation at depth within the granodiorite has essentially not been previously tested and provides a significant new exploration target as well as a possible vector to a related mafic volcanic hosted shear. All these multiple mineralised lodes are interpreted to form part of an overall highly-mineralised structural regime immediately adjacent to the contact of the Montague Granodiorite Dome.

5 See ASX Release 10 July 2018

As well as testing of extensions to known mineralisation immediately along strike, and potential repeats of mineralised structures at depth below the existing Mineral Resource, in-fill drilling within the Montague-Boulder Mineral Resource footprint was successful in confirming both the orientation and tenor of the gold mineralisation. Several excellent results were returned, including:

• GRC588: 6 metres @ 6.2g/t Au from 96m

• GRC591: 3 metres @ 9.0g/t Au from 62m

• GRC625: 7 metres @ 4.6g/t Au from 112m

• • GRC594: 2 metres @ 4.3g/t Au from 97m • GRC593: 6 metres @ 3.6g/t Au from 11m

All the new data will be fully interpreted and incorporated with the existing drill database, and utilised to calculate a revised Mineral Resource Estimate for the Montague-Boulder deposit. It is anticipated that the in-fill data will allow for an upgrade in the confidence level of part of the Resource from the current Inferred category, as per the JORC Code (2012).

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Figure (4): Location of current RC drilling significant intersections within the Montague-Boulder Mineral Resource, and previous drilling greater than 50m deep

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Figure (5): Northwest Margin drilling greater than 50m deep, highlighting the current in-fill results, and potential for expansion from the current Mineral Resource areas

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Figure (6): Composite RC drill cross-section 6,966,760mN highlighting significant mineralisation in the new position below the Montague-Boulder Mineral Resource

Achilles South Air-Core Drilling

During the Quarter, Gateway completed a major air-core drilling program targeting the immediate southern extension of the Achilles Target Area. The air-core drilling consisted of a grid-based program, drilled to blade refusal (top of fresh rock) on a nominal 200m x 40m spacing. The program covered approximately 1.4km of strike of the southern continuation of the Achilles structural zone, where recent RC drilling by Gateway has extended near-surface mineralisation north of the historical Rosie open pit. The results from the air-core program are considered to be highly significant in the context of Gateway’s overall exploration strategy at the Gidgee Project. They have defined a series of coherent, high-order oxide and bedrock gold anomalies extending over a strike length of 1.4km, with the zone remaining open for a further 2.5km to the south beyond this new drilling, to the edge of Gateway’s tenure.

The strength and coherent nature of the anomalies and their position relative to significant cross-cutting structures has elevated the importance of this area as a significant exploration target at Gidgee, alongside the 1.5km long Northwest Margin area between the Montague-Boulder and Whistler deposit, which is a priority focus for ongoing RC and diamond drilling.

Full details of the results are included in the ASX release dated 4 November 2020.

The air-core drilling was successful in delineating several coherent oxide-zone anomalies that are interpreted to emanate from bedrock-hosted primary mineralisation at depth (see Figure 7). When combined with effective historical drilling, several previously recognised prospect areas – such as Airport, L.A. International and Dandelion – can now be interpreted in the context of the broader distribution of gold mineralisation across this corridor (see Figure 8).

An extensive oxide-zone anomaly has been defined over 1.4km of strike covering the interpreted continuation of the Achilles thrust structure. This anomaly corresponds to a >1g/t per metre (>1gm) gold intersection with a clearly defined higher grade core, particularly immediately along strike from the Rosie open pit. This anomaly includes several higher-grade results, including:

• GWAC0302: 4m @ 1.6g/t Au from 28m

• GWAC0402: 4m @ 1.4g/t from 8m and 5m @ 0.7g/t Au from 52m (BOH)

• GWAC0453: 14m @ 0.5g/t Au from 40m (BOH), including 4m @ 1.1g/t Au

• • GWAC0553: 16m @ 0.8g/t Au from 36m

This anomaly shows a significant change in direction and subsequent thickening to a width of approximately 400m around the historical workings known as “L.A. International”. This appears to correlate with a definite jog in the Achilles structural trend and suggests the presence of a zone of greater dilation which therefore has the potential to host an accumulation of significant gold-bearing fluids. The combination of wide, consistent gold anomalism, including significant bedrock mineralisation, with a favourable structural position significantly elevates the prospectivity of this area. Maximum down-hole gold results in this L.A. International area include:

• GWAC0486: 4m @ 1.0g/t Au from 24m

• • GWAC0482: 4m @ 1.8g/t Au from 36m • GWAC0480: 3m @ 5.6g/t Au from 16m (BOH), including 1m @ 16.2g/t Au

Importantly, the air-core results appear to support the theory that a splay from the Achilles shear corresponds to the historical Airport and Airport South prospects, where extensive shallow high-grade mineralisation has been identified by previous explorers (see Figure 8). Significant historical intersections include:

• GRB1231: 20m @ 15.6g/t Au from 25m

• • GRC015: 17m @ 14.7g/t Au from 30m

• GRB1253: 15m @ 5.1g/t Au from 35m

• • GRB1580: 5m @ 22.2g/t Au from 37m

This mineralised trend can now be traced back into the main Achilles Shear structure, highlighting a significant target for deeper RC testing.

In addition, a discrete northwest-southeast trending anomaly proximal to the mafic-volcanic and granodiorite contact zone, which corresponds to extensive historical underground workings on the Dandelion Trend, has been defined over 800m of strike. This trend has only been sporadically tested by historical drilling, generally with single holes under the existing workings.

This zone corresponds to an interpreted mafic-shear target similar to that hosting mineralisation to the north at Caledonian and Caledonian-Northeast pits. Significant air-core intersections from current drilling of this anomaly include:

• GWAC0501: 12m @ 1.4g/t Au from 24m, including 4m @ 3.0g/t Au

• • GWAC0497: 4m @ 1.9g/t Au from 28m • GWAC0567: 4m @ 2.1g/t Au from 36m

A new, previously unrecognized mineralised structure has been identified within the granodiorite body, on the eastern extent of the recently completed air-core pattern. This anomaly appears to correspond to a diffuse north-northwest trending structure within the intrusion and is open off the north and south ends of the drill pattern. This structure appears to be a splay off the main Achilles Shear, and can be traced over approximately 2.5km in aeromagnetic data. Significant intersections from this structure include:

• GWAC0283: 30m @ 0.3g/t Au from 12m

• • GWAC0282: 50m @ 0.3g/t Au from 4m

• GWAC0281: 16m @ 0.5g/t Au from 32m, including 4m @ 1.2g/t Au

• • GWAC0386: 8m @ 1.6g/t Au from 12m • GWAC0548: 28m @ 0.6g/t Au from 32m, including 8m @ 1.1g/t Au

This drilling has significantly extended the known gold anomalism along the prospective Achilles Shear structure and has allowed several historical prospect areas with existing high-grade bedrock intersections to be put into a more regional context. This shear structure remains open for a further 2.4km along strike to the south, to the edge of Gateway’s tenure. Where historical drilling has been effective along this corridor, anomalous (+1g/t Au) assay results have been returned.

These large-scale anomalies are also supported by associated bottom-of-hole (BOH) multi-element anomalism with key indicator elements, including copper, silver, arsenic and antimony. This association is a common group of pathfinder elements within the Archean gold deposits of Western Australia, lending further weight to the potential bedrock source of the gold mineralisation.

Follow-up RC drilling will be designed to provide deeper bedrock context on these anomalies, and to identify potential ore-grade sources to the oxide-zone gold dispersion halos.

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Figure (7): Achilles South air-core drilling downhole oxide zone gold accumulation and contours with significant

intercepts.

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Figure (8): Achilles South air-core drilling oxide zone gold accumulation and contours with historic drilling maximum downhole gold and historic significant intercepts

WA State Government Exploration Incentive Scheme (EIS)

During the Quarter, Gateway was successful in obtaining co-funding of a deep diamond drilling program at the Montague Granodiorite Dome, part of its 1,000km[2] Gidgee Gold Project in Western Australia. The funds are available as part of the WA Government Exploration Incentive Scheme.

This deep diamond drilling will be undertaken in the first half of the 2021 calendar year, as part of a broader RC and diamond drilling program to follow up on the high-grade intersections on the Northwest Margin of the Montague Granodiorite Dome[.]

The deep drilling to be undertaken will generate significant data on the nature of the Granodiorite intrusion, and the mafic volcanic host stratigraphy. This co-funding enables Gateway to drill much deeper holes to generate valuable exploration framework data than would ordinarily be undertaken. This data will enable Gateway to increase its understanding of the intrusion and controls on the mineralisation and will significantly influence the continued exploration along the highly prospective granodiorite margin.

REGIONAL PROJECTS

Gateway entered into a Sale and Purchase Agreement with Orecorp Ltd (ASX: ORR), for the sale of its 20% interest in two tenements (E31/1134 and E31/1150) in the Edjudina Project, currently part of a Joint Venture with DiscovEx Ltd (ASX: DCX). As consideration for the sale, Gateway received 46,153 ORR shares, and retained a 1.5% Gross Revenue Royalty over the tenements.

Subsequent to the Quarter-end, Gateway agreed to the sale of its shares in private company Lighthouse Resource Holdings Pty Ltd ( Lighthouse ), obtained through the sale of the Sylvania Project announced during the September 2020 Quarter. The sale of these Tenements formed part of the Company’s strategy of crystallising value from its portfolio of non-core exploration assets while maintain a strong focus on ongoing gold exploration and development activities at its flagship 100% owned Gidgee Gold Project. As part of the Sylvania Transaction, Gateway received:

• $150,000 worth of Lighthouse shares, comprising 7,500,000 fully-paid ordinary shares at an issue price of $0.02 per Share; and

• The grant of a 1.5% gross revenue royalty.

Lighthouse has assembled a significant portfolio of projects on the margin of the Archean Sylvania Inlier near Newman, WA. The area is highly prospective for base metals, as demonstrated by the advanced Prairie Downs ZincLead Deposit, and for large-scale gold systems similar to the nearby 2Moz Karlawinda Gold Project.

In a transaction announced to the market in January 2021, DiscovEx Ltd has agreed to acquire a 100% interest in Lighthouse. The consideration to be given by DCX for the acquisition of Lighthouse will be a total of 337,500,000 new fully-paid ordinary shares in DCX, to be issued to the shareholders of Lighthouse (or their nominees) on a prorata basis. In addition, Gateway retains its 1.5% Gross Revenue Royalty over the tenements.

Completion of the sale of is conditional upon the following conditions being satisfied or waived by DCX:

• (a) Various shareholder approvals being received from DCX shareholders in an upcoming General Meeting;

• (b) DCX receiving executed restriction agreements for some of the Consideration Shares as part of an ASX imposed escrow (Gateway notes its Consideration Shares are not subject to any ASX imposed escrow);

• (c) DCX obtaining all regulatory consents and approvals which are necessary for the acquisition of all Lighthouse shares, including all approvals required from the ASX;

• (d)

• DCX completing a placement to raise at least $3.5M;

• (e) No material adverse change having occurred in relation to Lighthouse prior to completion of the Transaction; and

• (f) No breach of representations or warranties of the parties.

TENEMENTS

The following changes to the Company’s tenements occurred:

Changes in Tenements	Tenement reference and location	Nature of Interest	Interest prior to change	Interest following change
Interest in mining tenements sold	- E31/1134 (Edjudina) - E31/1150 (Edjudina)	Legal and beneficial ownership	- 20% - 20%	- 0% - 0%

A list of the Company’s full tenement holdings held at the end of the Quarter are detailed in Appendix 1.

CORPORATE

Cash Position and Expenditure

As at 31 December 2020, the Company had cash reserves of $6.737 million.

Exploration expenditure during the quarter comprised of $1.261 million. This expenditure was in relation to mining and exploration activities conducted at the Company’s flagship Gidgee Gold Project located in Western Australia. As set out in the Company’s December Quarter Appendix 5B, payments to related parties consisted of remuneration paid to executive and non-executive directors of $113.8 thousand, and payments to director related entities for professional services (Accounting, Legal and Insurance) of $44.7 thousand and for the provision of geological consultancy services of $190 thousand.

Unmarketable Parcels Buy-Back

During the Quarter, the Company announced details of an Unmarketable Parcel Sale Facility for holders of less than marketable parcels of shares in the Company ( Buy-Back ).

Under the ASX Listing Rules, holdings of Gateway shares valued at a less than $500 are considered to be less than marketable parcels ( Unmarketable Parcels ).The Buy-Back was instituted to enable shareholders holding Unmarketable Parcels ( Eligible Shareholders ).

On the basis of the Buy-Back price per share of $0.0282 and the register of members of Gateway as at 7:00pm (AEDT) on the record date 3 December 2020:

• (a) An Unmarketable Parcel of shares is any shareholding of less than 17,731 shares;

• (b) 737 out of 2,755 Gateway Shareholders hold an Unmarketable Parcel; and

• (c) The total value of Gateway fully-paid ordinary shares held by all holders of Unmarketable Parcels is A$91,609.82.

The closing date of the Buy-Back is 7:00PM (AEDT) on 25 January 2021.

Gateway is offered the Buy-Back to shareholders who hold Unmarketable Parcels so that they can sell and realise their shares without incurring brokerage and other expenses. The Company will pay all of the costs associated with the Buy-Back (excluding tax consequences from the sale, which remains the responsibility of Eligible Shareholders).

By facilitating the sale of Unmarketable Parcels, the Company expects to significantly reduce the administrative costs associated with maintaining a large number of small holdings, including the substantial costs associated with registry, printing and mailing documentation to shareholders.

The shares acquired by the Company under the Buy-Back will be cancelled in accordance with the Corporations Act 2001 (Cth) (Corporations Act). In accordance with the Corporations Act, the Company did not require shareholder approval for the buy-back of these shares.

Corporate Announcements

On 12 October 2020, the Company released an investor presentation for the Diggers and Dealers conference.

On 19 October 2020, the Company released its Notice of Annual Meeting and Proxy form for its 2020 Annual Meeting held on 20 November 2020.

On 29 October 2020, the Company released its Quarterly Activities and Cashflow Report for the period quarter ending 30 September 2020.

On 5 November 2020, the Company released an investor presentation for the Resource Rising Stars Investor Webinar along with the link to the webinar.

On 20 November 2020, the Company released an investor presentation for its Annual General meeting held on 20 November 2020.

On 20 November 2020, the Company released the results of its Annual General Meeting held on 20 November 2020.

On 7 December 2020, the Company released an announcement regarding the launch of its Unmarketable Parcels Buy-Back.

Share Capital

Issue of Shares

During the Quarter, the Company issued 4,125,000 shares at an issue price of $0.016 per share. The shares were issued in lieu of outstanding fees for Company services provided to the Company. The issue of these shares was approved at the Company’s Annual General Meeting held 20 November 2020.

The Company’s current capital structure is as follows:

Number	Class
1,906,241,036	Fully Paid Ordinary Shares
10,000,000	GML Unquoted Options exercisable at $0.024, expiry 26 August 2023
2,000,000	GML Unquoted Options exercisable at $0.03, expiry 12 November 2022
2,000,000	GML Unquoted Options exercisable at $0.03, expiry 12 November 2022
3,000,000	GML Unquoted Options exercisable at $0.035, expiry 12 November 2022
3,000,000	GML Unquoted Options exercisable at $0.04, expiry 12 November 2022
6,666,667	GML Unquoted Options, exercisable at $0.017, expiry 28 February 2022
6,666,667	GML Unquoted Options, exercisable at $0.018, expiry 28 February 2022
6,666,666	GML Unquoted Options, exercisable at $0.02, expiry 28 February 2022
2,833,331	GML Unquoted Options which will vest on 19 December 2020, with an exercise price of $0.03 per option and expiring on 19 June 2023.
1,500,000	GML Unquoted Options which will vest on the date the Company announces an audited JORC Compliant Indicated resource of 400,000 ounces or greater of gold (Resource), with an exercise price of $0.035 per option and expiring on 19 June 2023.
1,500,000	GML Unquoted Options which will vest the date the Company finalises and delivers a scoping study and financial model based on the Resource, with an exercise price of $0.04 per option and expiring on 19 June 2023.
1,833,332	GML Unquoted Options which will vest on 19 June 2021, with an exercise price of $0.035 per option and expiring on 19 June 2023.
1,833,337	GML Unquoted Options which will vest on 19 December 2021, with an exercise price of $0.04 per option and expiring on 19 June 2023.

This released has been authorised by:

Peter Langworthy Managing Director

For and on behalf of GATEWAY MINING LIMITED

Competent Person Statement

The information in this announcement that relates to Exploration Results and Mineral Resources has been extracted from various Gateway ASX announcements and are available to view on the Company’s website at www.gatewaymining.com.au or through the ASX website at www.asx.com.au (using ticker code “GML”)

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. The company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement.

Investors Media Peter Langworthy Nicholas Read Managing Director Read Corporate T: 02 8316 3998 T: 08 9388 1474 or Kar Chua Company Secretary T: 02 8316 3998

APPENDIX (1): GATEWAY MINING LIMITED CONSOLIDATED TENEMENT HOLDINGS

Project	Tenement	Owner
GIDGEE	E53/2108	Gateway Mining Ltd
GIDGEE	E57/1039	Golden Mile Resources Ltd, Gateway Mining Ltd Earning 80%
GIDGEE	E57/1040	Golden Mile Resources Ltd, Gateway Mining Ltd Earning 80%
GIDGEE	E57/1057	Gateway Projects Pty Ltd
GIDGEE	E57/1060	Gateway Mining Ltd 80%, Element25Ltd20%
GIDGEE	E57/1067	Gateway Projects Pty Ltd
GIDGEE	E57/1144	Gateway Mining Ltd
GIDGEE	E57/1145	Gateway Mining Ltd
GIDGEE	E57/1147	Gateway Mining Ltd
GIDGEE	P57/1409	Gateway Projects Pty Ltd
GIDGEE	P57/1410	Gateway Projects Pty Ltd
GIDGEE	P57/1411	Gateway Projects Pty Ltd
GIDGEE	P57/1413	Gateway Projects Pty Ltd
GIDGEE	P57/1449	Gateway Mining Ltd
GIDGEE	P57/1455	Gateway Mining Ltd
GIDGEE	P57/1456	Gateway Mining Ltd
GIDGEE	P57/1457	Gateway Mining Ltd
GIDGEE	P57/1458	Gateway Mining Ltd
GIDGEE	P57/1459	Gateway Mining Ltd
GIDGEE	P57/1460	Gateway Mining Ltd
GIDGEE	P57/1461	Gateway Mining Ltd
GIDGEE	P57/1494	Gateway Mining Ltd
GIDGEE	P57/1495	Gateway Mining Ltd
GIDGEE	P57/1496	Gateway Mining Ltd
KALUWIRI	P57/1475	Gateway Mining Ltd
KALUWIRI	P57/1476	Gateway Mining Ltd
MONTAGUE	E57/0405	Gateway Mining Ltd
MONTAGUE	E57/0417	Gateway Mining Ltd
MONTAGUE	E57/0687	Gateway Mining Ltd
MONTAGUE	E57/0688	Gateway Mining Ltd
MONTAGUE	E57/0793	Gateway Mining Ltd 75%, Estuary Resources Pty Ltd 25%
MONTAGUE	E57/0807	Gateway Mining Ltd
MONTAGUE	E57/0823	Gateway Mining Ltd
MONTAGUE	E57/0824	Gateway Mining Ltd
MONTAGUE	E57/0874	Gateway Mining Ltd
MONTAGUE	E57/0875	Gateway Mining Ltd
MONTAGUE	E57/0876	Gateway Mining Ltd
MONTAGUE	E57/0888	Gateway Mining Ltd
MONTAGUE	E57/0945	Gateway Mining Ltd
MONTAGUE	E57/1004	Gateway Mining Ltd
MONTAGUE	E57/1005	Gateway Mining Ltd

MONTAGUE	M57/0048	Gateway Mining Ltd
MONTAGUE	M57/0098	Gateway Mining Ltd
MONTAGUE	M57/0099	Gateway Mining Ltd
MONTAGUE	M57/0217	Gateway Mining Ltd
MONTAGUE	M57/0429	Gateway Mining Ltd
MONTAGUE	M57/0485	Gateway Mining Ltd
MOUNT MARION	E57/1113	Gateway Mining Ltd
MT DWYER	E57/1108	Gateway Mining Ltd
OLD GIDGEE	E57/1095	Gateway Mining Ltd
SOUTHERN CROSS	E77/2309	Gateway Projects Pty Ltd – DiscovEx ResourcesLtd Option
EDJUDINA	E39/1765	DiscovEx Resources Ltd 80% Gateway Projects Pty Ltd 20%
EDJUDINA	E39/1882	DiscovEx Resources Ltd 80% Gateway Projects Pty Ltd 20%
BRYAH BASIN	E52/3248	Auris Minerals Ltd 85% GatewayProjectsPtyLtd15%
BRYAH BASIN	E52/3273	Auris Minerals Ltd 85% Gateway Projects Pty Ltd 15%