GBM RESOURCES LIMITED. — Capital/Financing Update 2020

Aug 18, 2020

Suite 8, 7 The Esplanade, Mt Pleasant, WA 6153

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ASX Announcement 19 August 2020

E info@gbmr.com.au P +61 (8) 9316 9100 F +61 (8) 9315 5475

gbmr.com.au

ABN 91 124 752 745

EXPLORATION LICENCE APPLICATIONS IN DRUMMOND GOLD BASIN

• GBM Resources Limited (ASX: GBZ) ( GBM or the Company ) has applications for 9 new exploration licences covering 2,515 km[2] of prospective ground for epithermal gold and silver mineralisation in the Drummond Basin, Queensland.

• Supports GBM’s strategy to consolidate a leading ground position within the ‘processing halo’ of the Company’s flagship 100% owned Mt Coolon Gold Project ( Mt Coolon ), which has an existing gold resource of 330 koz.[1]

• Granting of these tenements will see GBM control a total of approximately 3,766 km[2] of exploration and mining leases, making it the largest tenement holder in the Drummond Basin , Australia’s premier low sulfidation epithermal gold province.

Peter Rohner, Managing Director and CEO, commented: “GBM is focusing its current owner-led exploration efforts on its flagship Mt Coolon Gold Project in the highly mineralised Drummond Basin, Queensland. The Company’s ‘processing halo’ consolidation strategy has seen it obtain substantial new exploration licences via low cost open ground staking. This is the first step in a strategy to place GBM in a commanding strategic position within this highly prospective, underexplored epithermal gold terrain”.

Drummond Basin Exploration Licence Applications

The Drummond Basin is Australia’s premier Low Sulfidation Epithermal ( LSE ) gold province, with a known metallogenic endowment (past production plus current reserves and resources) of more than 7.9 Moz of gold (Figure 1).

This prospective gold terrain has seen intermittent exploration since the main cycle of discovery in the late 1980’s to 1990’s, which was a period of much lower gold prices than today. GBM’s management and consultants have a track record for discovery of low sulfidation gold and silver deposits and view the Drummond Basin as significantly underexplored in comparison to similar LSE provinces globally.

The Drummond Basin is an Upper Devonian aged back arc basin that hosts a number of LSE gold and silver deposits. These deposits are typically hosted within a sequence of andesitc to rhyolitic volcanics, volcanic domes and bedded sediments including laterally extensive limestones, that were deposited early in the history of the Basin’s formation (and defined as “Cycle 1 sequence”).

LSE mineralisation in the Drummond Basin generally falls into two subclasses:

1. Steeply dipping epithermal fissure vein systems (e.g. Pajingo and GBM’s Koala deposit) hosted with large structural breaks within thick andesitic to rhyolitic volcanic flow units; and

2. Stratabound stockwork vein and replacement deposits, often spatially associated with volcanic domes (e.g. Yandan, Twin Hills, Yandan East and GBM’s Glen Eva, Eugenia, Bimurra, Eastern Siliceous, Verbena Sinter deposits) hosted within the thin bedded volcanic sediments and pyroclastic units and volcanic dome related rocks.

• 1 For full details of the Mt Coolon Mineral Resource estimate, refer to Appendix A of this release and GBM ASX release dated 4 December 2017.

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GBM’s team has applied their extensive knowledge of the Drummond Basin mineralisation and global experience of controls on LSE mineralisation, to prioritize prospective ground for the exploration licence applications. The applications secure shallow covered extensions of “Cycle 1 sequence” stratigraphy that may host extensions of the Mt Coolon gold corridor to the south-east of the current licences, plus prospective covered targets and areas of outcropping alteration and epithermal gold prospects elsewhere within a 70 km radius of Mt Coolon.

GBM’s ‘processing halo’ strategy aims to build a +1 Moz resource base within a 70 km radius of Mt Coolon, that may be able to be fast-tracked to production. This strategy incorporates:

• Staking of prospective ground to control potential extensions of the Mt Coolon gold corridor and to build district-scale holdings centred on key gold systems within the ‘processing halo’ radius.

• The current exploration program scheduled for Q3 2020 being designed to test priority drill targets adjacent to the existing Koala, Glen Eva and Eugenia resources.

• Building a pipeline of quality exploration targets within the Mt Coolon region with new applications that can be systematically advanced to drill testing.

• Review of potential opportunities to acquire existing resources within the 70 km radius of Mt Coolon.

The new exploration licence applications represent an initial step in the ‘processing halo’ consolidation strategy. Granting of these tenements will see GBM control in excess of 3,766 km[2] of exploration and mining leases centred on key prospective gold zones within the Mt Coolon ‘processing halo’.

This ASX announcement was approved and authorised for release by:

Peter Rohner, Managing Director

For further information please contact:

Investor enquiries Media enquiries Peter Rohner Michael Vaughan Managing Director Fivemark Partners +61 8 9316 9100 +61 422 602 720 peter.rohner@gbmex.com.au michael.vaughan@fivemark.com.au

About GBM Resources

GBM Resources Limited is a mineral exploration and development company focused on the discovery of worldclass gold and copper deposits in Eastern Australia. The company has a high calibre project portfolio, hosting district scale mineral systems, located in a number of premier metallogenic terrains including the Drummond Basin, Mt Morgan district and the Mt Isa Inlier in Queensland, and the Malmsbury Project in the prolific Victorian Goldfields. This is complemented by the recently formed JV on the White Dam Gold Project in South Australia in which GBM holds a 50% cashflow interest.

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APPENDIX A: Mt Coolon Gold Project Resource Estimate

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GBM confirms that it is not aware of any new data or information that materially affects this resource estimate and that all material assumptions and technical parameters underpinning the estimates in that ASX release continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Persons findings are presented have not been materially modified from the original market announcements.