GBM RESOURCES LIMITED. — Capital/Financing Update 2022

Oct 23, 2022

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ASX Announcement 24 October 2022

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

E info@gbmr.com.au P +61 (8) 9316 9100 F +61 (8) 9315 5475 www.gbmr.com.au ABN 91 124 752 745

First Note - Convertible Note Completed

GBM Resources Limited (ASX: GBZ) ( GBM or the Company ) advises of the completion of the $10 million convertible note agreement (Agreement) with Collins St Convertible Note Fund (Collins St), announced to ASX on 9 September 2022, and has issued the first $5 million convertible notes securities ( First Note ).

The issue of the First Note was undertaken pursuant to the Company’s existing security placement capacity under ASX Listing Rule 7.1 (up to 57,142,857 ordinary fully paid shares may be issued at the date of this announcement on the conversion of $5 million convertible notes at $0.0875).

A further $5 million convertible note ( Second Note ) may be issued pursuant to the Agreement subject to shareholder approval to be sought at the Company’s 2022 annual general meeting to be held in November 2022.

Securing the Convertible Note funding ($10 million), together with the continued realisation of value generated from GBM’s non-core assets will further support the working capital requirements to advance GBM’s highly prospective gold projects in the Drummond Basin, QLD.

Refer to the ASX announcement and Appendix 3B dated 9 September 2022 for further details of the Agreement and a summary of terms and conditions of the First Note and Second Note. An Appendix 3G will be lodged with ASX following release of this announcement in respect of the issue of the abovementioned First Note.

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

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About GBM Resources

GBM Resources Limited ( ASX: GBM) is a Queensland based mineral exploration and development company focused on the discovery of world-class gold and copper deposits in Eastern Australia. The company has a high calibre project portfolio, hosting district scale mineral systems, located in several premier metallogenic terrains.

Its 100% owned flagship project in the Drummond Basin (QLD) holds ~1.6 Moz of gold in JORC resources (Mt Coolon, Yandan and Twin Hills). 2022 will see an expanded drilling program which is aiming to \support GBM’s transition into a mid-tier Australian gold company.

Separately it also holds tenements in the Mt Morgan district (subject to a vend into a TSX company) and in the Mt Isa Inlier in Queensland (JV with Nippon Mining Australia - ~54%), and the Malmsbury Project (JV with Novo Resources Corp. - 50%, earning additional 10%) in the prolific Victorian Goldfields. This is complemented by the cash generating White Dam Gold-Copper Project in South Australia in which GBM now holds a 100% interest. Divestment of non-core assets will continue.

Competent Person Statement

The Company confirms that it is not aware of any new information or data that materially affects the information included in the respective announcements and all material assumptions and technical parameters underpinning the resource estimates within those announcements 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.

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APPENDIX 1: GBM Mineral Resource Estimate for the Drummond Basin Projects (Mt Coolon, Yandan and Twin Hills) along with other company interests

Deposit		Re	Re	source Category	source Category	000' t Aug/t Au oz Total	Cut-off
	000' t	Aug/t Au oz Measured	000' t	Aug/t Au oz Indicated	000' t Aug/t Au oz Inferred
				Koala
Open Pit UG Extension Tailings	114	1.7 6,200	670 50 9	2.6 55,100 3.2 5,300 1.6 400	440 1.9 26,700 260 4 34,400	1,120 2.3 81,800 320 3.9 39,700 124 1.6 6,600	0.4 2.0 1.0
Sub Total	114	1.7 6,200	729	2.6 60,800	700 2.7 61,100	1,563 2.5 128,100
				Eugenia
Oxide - Open Pit Sulphide - Open Pit			885 905	1.1 32,400 1.2 33,500	597 1.0 19,300 1,042 1.2 38,900	1,482 1.1 51,700 1,947 1.2 72,400	0.4 0.4
Sub Total			1,790	1.1 65,900	1,639 1.1 58,200	3,430 1.1 124,100
				Glen Eva
Sub Total - Open Pit			1,070	1.6 55,200	580 1.2 23,100	1,660 1.5 78,300	0.4
				Yandan
East Hill - Open Pit South Hill - Open Pit					20,600 0.8 505,000 900 0.6 16,000	20,060 0.8 505,000 900 0.6 16,000	0.3 0.3
Sub Total					21,500 0.8 521,000	21,500 0.8 521,000
				Twin Hills
309 - Open Pit 309 - UG Lone Sister - UG	586	2.7 50,300	5,470 110	1.4 253,200 4.8 16,800	4,165 0.9 120,200 510 3.7 60,100 2,010 4.0 260,100	10,220 1.3 423,700 620 3.9 76,900 2,010 4.0 260,100	0.4 2.0 2.0
Sub Total	586	2.7 50,300	5,580	1.5 270,000	6,685 2.0 440,400	12,850 1.8 760,700
Drummond Basin Total	700	2.5 56,500	9,169	1.5 451,900	31,104 1.1 1,103,800	41,003 1.2 1,612,200
				White Dam
Hannaford - Open Pit Vertigo - Open Pit White Dam North - Open Pit			700 300 200	0.7 16,400 1.0 9,400 0.5 2,800	1,000 0.8 26,900 1,400 0.6 29,000 1,000 0.6 17,600	1,700 0.8 43,300 1,700 0.7 38,400 1,200 0.5 20,400	0.2 0.2 0.2
Sub Total			1,200	0.7 28,600	3,400 0.7 73,500	4,600 0.7 101,900
cut-off grade is 0.20 g/t Au for a	ll, Vertigo i	s restricted to above 150RL (~70m b		elow surface)
				Malmsbury
Sub Total - UG					820 4.0 104,000	820 4.0 104,000	2.5
Sub Total - UG - GBM Share					410 4.0 52,000	410 4.0 52,000	2.5
GBM Total				1,766,100

The announcements containing the Table 1 Checklists of Assessment and Reporting Criteria relating to the 2012 JORC compliant Resources are:

• Koala/Glen Eva and Eugenia – GBM ASX Announcements, 4 December 2017, Mt Coolon Gold Project Scoping Study

• Yandan – GBM ASX Announcement, 23 December 2020, Mt Coolon and Yandan Combined Resources Total 852,000 oz, following completion of Yandan acquisition

• Twin Hills – GBM ASX Announcement, 18 January 2019, Mount Coolon and Twin Hills Combined Resource Base Approaches 1 Million Ounces and 2 February 2022, Significant Resource Upgrade at Twin Hills Project

• White Dam - GBM ASX Announcement, 18 August 2020, White Dam Maiden JORC 2012 Resource of 102 koz

• Malmsbury – GBM ASX Announcement, 4 July 2019, Malmsbury Resource Upgraded to JORC 2012

• Including this announcement

• a) The preceding statements of Mineral Resources conforms to the “Australasian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves (JORC Code) 2012 Edition”

• b) All tonnages are dry metric tonnes

• c) Data is rounded to (‘000 tonnes, 0.0 g/t and ‘000 ounces). Discrepancies in totals may occur due to rounding d) Resources have been reported as both open pit and underground with varying cut-off based off several factors as discussed in the corresponding Table 1 which can be found with the original ASX announcement for each Resources.

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