GBM RESOURCES LIMITED. — Capital/Financing Update 2022

Feb 1, 2022

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ASX Announcement 2 February 2022

ABN 91 124 752 745

Significant Resource Upgrade at Twin Hills Project

HIGHLIGHTS

• Updated JORC 2012 Mineral Resource estimate for The Twin Hills deposits (Lone Sister and 309) of 12.9 million tonnes at 1.8 g/t Au for 760,700 ounces (previously 633,000 ounces) of contained gold on granted mining leases (see Table 1).

• Combined gold resources under GBM’s ownership in the Drummond Basin now total approximately 1.6 Moz across the Yandan, Mt Coolon and Twin Hills assets (see Figure 1). All are located within 70 km of GBM’s proposed “Drummond Basin Processing Hub” centred on the Yandan ML’s, which has significant infrastructure (i.e. water storage dams, tailings facilities, airstrip, leach pads and grid power).

Drummond Basin, QLD Total - 41 million tonnes at 1.2 g/t Au for 1,612,200 ounces

• Twin Hills is considered highly prospective for the discovery of additional mineralisation , with preliminary analysis suggesting high grade gold shoots at 309 and Lone Sister may be open at depth. GBM is now aiming to commence drilling in the coming weeks at Twin Hills to test these targets.

• GBM's analysis of the deposit geometry and grade distribution suggests that the 309 and Lone Sister resources maybe be successfully mined via a combination of bulk minable open pit and bulk underground mining methods .

• Resource upgrade work will continue with new pit optimisation work commencing soon on the 309 deposit to evaluate opportunities to deepen the pit below the 1050 RL used in this resource update.

GBM Managing Director and CEO, Peter Rohner, commented:

“GBM’s geological and mining team is rapidly gaining further knowledge of the Twin Hills deposits to improve the resource model and evaluate mining scenarios which will assist in focusing drilling activities which will commence shortly. The planned drilling programs will focus on increasing the confidence of the resource, improving resource knowledge in the shallower likely open pit resources and extending the resources at depth. This transformational acquisition represents a significant step in the execution of our 'processing halo' strategy to build over two million ounces under ownership within the Drummond Basin, providing an entry into the development of a genuine mid-tier Australian gold company.”

Twin Hills Resource Summary

The 309 and Lone Sister deposits are low sulphidation, epithermal gold deposits hosted within the western arm of the Drummond Basin in Queensland. The Drummond Basin is host to a number of significant gold deposits and is considered by GBM to hold potential for further discoveries.

The 309 and Lone Sister gold deposits are located 7 kilometres apart and linked by a major north-south structural lineament. Both deposits have previously been interpreted as intrusion related, high gold fineness, low sulphidation epithermal gold deposits, sometimes exhibiting bonanza gold grades (as evidenced by the peak gold value in the 309 deposit of 2,940 g/t Au, with 300 individual metre samples exceeding 30 g/t Au, and a peak gold value of 939 g/t Au at Lone Sister). Refer ASX: GBZ release 18 January 2019.

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GBM considers that potential depth extensions and strike repetition of both the 309 and Lone Sister deposits have not been adequately tested.

No changes were made to the 2019 resource model, however metallurgical and mining costs were reviewed and as a result of the increase in the gold price the cut-off grade was reduced from 1.0 g/t Au to 0.4 g/t Au for the open pit resources.

The 309 Deposit has been re-estimated to comprise 10.8 Mt averaging 1.4 g/t Au containing 500,600 ounces of gold and 783,100 ounces of silver (assuming open pit mining to 1050 RL, or a depth of approximately 200 m, and underground mining below 1050 RL).

The Lone Sister Deposit is re-estimated at 2.0 Mt at an average grade of 4.0 g/t Au containing 260,100 ounces of gold and 604,800 ounces of silver (refer Table 1).

Table 1: Twin Hills Resource Summary for the 309 and Lone Sister Gold Deposits (rounded for reporting ‘000 tonnes, ’00 ounces, 0.0 grade). See previous release ASX GBM 18 January 2019 ‘Mount Coolon and Twin Hills Combined Resource Base Approaches 1 Million Ounces’ also.

Open Pit Resources (above 1050 RL) stated at 0.4 g/t Au cut-off and Underground Resources (below 1,050 RL) stated at 2.0 g/t Au cut-off.

Category	Cut-off	Tonnage		Grade	Contained Metal	Contained Metal
	Au (g/t)	(t)	Au (g/t)	Ag (g/t)	Au (oz)	Ag (oz)
309 Deposit
Open Pit (above 1050RL)
Measured	0.4	586.000	2.7	4.8	50,300	85,500
Indicated	0.4	5,470,000	1.4	2.6	253,200	457,500
Inferred	0.4	4,165,000	0.9	1.5	120,200	199,400
Total open pit	0.4	10,220,000	1.3	2.3	423,500	742,400
		Underground (below	1050 RL)
Measured	2.0
Indicated	2.0	110,000	4.8	3.4	16,800	11,900
Inferred	2.0	510,000	3.7	1.8	60,100	28,800
Total underground	2.0	620,000	3.9	2.0	76,900	40,700
		Total 309 Deposit
Measured	0.4 / 2.0	586,000	2.7	4.8	50,300	85,500
Indicated	0.4 / 2.0	5,580,000	1.5	2.6	270,000	469,400
Inferred	0.4 / 2.0	4,675,000	1.2	1.5	180,300	228,200
TOTAL	0.4 / 2.0	10,841,000	1.4	2.2	500,600	763,100
		Lone Sister Deposit
Measured	2.0
Indicated	2.0
Inferred	2.0	2,010,000	4.0	9.4	260,100	604,800
Total	2.0	2,010,000	4.0	9.4	260,100	604,800
		Total Twin Hills
Measured	0.4 / 2.0	586,000	2.7	4.5	50,300	85,500
Indicated	0.4 / 2.0	5,580,000	1.5	2.6	270,000	469,400
Inferred	0.4 / 2.0	6,685,000	2.0	3.9	440,400	833,000
TOTAL	0.4 / 2.0	12,851,000	1.8	3.4	760,700	1,387,900

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Drummond Basin Consolidation and Processing Halo Strategy – now at ~1.6 Moz

Figure 1: Drummond Basin Processing Halo and Resource Consolidation Summary

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Mt Coolon Project
100% GBM
Resource: 330 koz Au [1,2]
Conway
Legend
Bimurra GBM EPM granted
Clewitts
Yandan Project GBM EPM application
(submitted)
100% GBM
Resource: 521 koz Au [6] North East
Ridge
Project Size
Yandan Eugenia
Large
1.75 to 4.1 Moz
Glen Eva Medium
Illamahta Eastern 0.15 to 1.75 Moz
Koala Siliceous Small
<0.15 Moz
Verbena Sinter Epithermal
prospect
Regional Geology
Other Post Mineral
Cover
Quaternary to Mid.
Carboniferous Cover
Late Devonian - Early
Carboniferous
309 Sediments
Twin Hills Gold Project Lone Sister Late Devonian - Early
100% GBM Carboniferous
Volcano-Sedimentary
309 + Lone Sister
Resource: 761 koz Au [1]
Pre-Mineral
Basement
20 km
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1. GBM ASX Announcement, 18 January. 2019, Mt Coolon and Twin Hills Combined Resource Base Approaches 1 Million Ounces and 2 February 2022

2. GBM ASX Announcement, 4 Dec. 2017, Mt Coolon Gold Project Scoping Study *Including Tailings

3. Evolution Mining. Pajingo-Fact-Sheet_March-2016_web-1.pdf

4. Osborne & Chambers. (2017). Pajingo Gold deposit. In Philips (ed), Australian Ore Deposits. AusIMM. Monograph 23.

5. Drummond Gold Limited , 24 Oct 2014, Mining 2014 Presentation, October Brisbane

6. GBM ASX Announcement, 23 Dec 2020, Mt Coolon and Yandan Combined Resources Total 852,000 oz following completion of Yandan acquisition

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Twin Hills Geology and Exploration Potential – High Grade Shoots Open to Depth

Twin Hills is hosted by a sedimentary-volcanic package interpreted to have been deposited in a late Devonian age, structurally controlled, pull apart basin that formed along the margin of a Cambro-Ordovician age metamorphic basement high, the Anakie metamorphic inlier (refer Figure 2).

Figure 2: Geological setting of 309 and Lone Sister Deposits

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Gold-silver mineralisation is temporally and probably genetically linked to subvolcanic to volcanic felsic domes and related breccia pipes. The age of mineralisation at Lone Sister and by association the related domes has been shown to be early Carboniferous (341 to 346 ma).

Mineralisation at the Twin Hills project, 309 and Lone Sister deposits (Figure 2) belongs to the felsic dome related, high gold fineness, low sulphidation quartz sulphide class of mineralisation that has produced a number of notable high value gold deposits including the high-grade Sleeper deposit and large bulk minable style deposits like Round Mountain in Nevada. This class of deposit usually develops an early phase of quartzsulphide gold mineralisation followed by later stages of very high-grade often free gold quartz and or gold electrum chalcedony events, as is seen at Twin Hills, that are important to the deposit economics.

GBM’s preliminary interpretation shows that the Twin Hills deposits are characterised by the 309 (phreatomagmatic to phreato-hydrothermal) milled matrix breccia body and the Lone Sister breccia and veinlet zone that is hosted within a rhyolite feeder dyke to a flow dome and the adjacent wall rock sediments. Better gold mineralisation in these deposits is strongly associated with epithermal quartz breccia matrix fill and cross cutting quartz fracture veinlet networks, forming discontinuous veinlet corridors that crosscut the host rock. GBM believes that the 309 and Lone Sister deposit characteristics are better suited to open pit or underground bulk mining approach compared to the selective underground mining previously used at Twin Hills.

Figure 3: Plan view of the Twin Hills 309 gold deposits. These show ore blocks in various grade ranges and previous underground development.

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Figure 4: Long Projection of the Twin Hills 309 gold deposits. These show ore blocks in various grade ranges and previous underground development.

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Table 2: 309 and Lone Sister Deposit Selected Historic Down Hole Gold Drill Intersections (Refer ASX: GBZ release 18 January 2019).

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Note: all intercepts quoted in Table 2 are outside any previously mined areas.

BMA established an underground mine at the 309 deposit and completed a decline to approximately 160 m below surface, plus the development of two ore lenses. Ore produced was trucked to the Rishton Mill east of Charters Towers, some 280 kilometres away. With gold trading at AUD$572/oz in June 2005 and prices for consumable and labour rising with the mining boom, the operation was forced to model and selectively mine ore zones at a high cut-off grade (considered to be around 6 g/t Au). The result appears to be that mineralisation was not continuous at these high cut-off grades yielding disappointing head grades for the second ore zone and resulting in closure of operations around January 2007. Current economics suggest the potential for GBM to operate at much lower cut-off grades, resulting in more coherent ore zones delivering more predictable head grades for treatment at a proximal processing plant. Recent inspection by GBM indicates that the portal, ventilation shafts and decline appear to be in sound condition with service lines intact.

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The current reported 309 resource is based on data from 429 drill holes and assumes a combination of open pit and underground mining with cut-off grades of 0.4 and 2.0 g/t Au respectively. This resource contains 500,600 ounces and represents approximately 66% of the total 760,700 ounces of gold contained within the current Twin Hills mineral resources which only extends to around 400 metres below surface. While the modelled resource lies within a larger broadly mineralised breccia zone refining the mining and processing costs along with metallurgical recoveries will be important in understanding what additional resources could be extracted, it does serve to demonstrate the overall scale of this deposit. It is also only part of the Twin Hills mineralising system, much of which remains to be thoroughly tested along strike and at depth.

Photograph: Decline portal at the Twin Hills 309 Gold Mine.

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Figure 5: Grade Tonnage Curve for the Twin Hills 309 Deposit. This graph clearly shows that there is a large volume of lower grade material that may become extractable should deeper open pit mining with a lower cutoff grade prove feasible

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Twin Hills - 309 Depost
18,000,000 10.0
Tonnes Gold (g/t)
16,000,000 9.0
8.0
14,000,000
7.0
12,000,000
6.0
10,000,000
5.0
8,000,000
4.0
6,000,000
3.0
4,000,000
2.0
2,000,000 1.0
0 0.0
0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5
Gold Cut-Off (g/t)
Tonnes
Gold (g/t)
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Figure 6: Contained gold for the Twin Hills 309 deposit versus cut-off grade

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Twin Hills - 309 Depost
700,000
600,000
500,000
400,000
300,000
200,000
100,000
0
0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1.0 1.2 1.4 1.6 1.8 2.0 2.2 2.4 2.6 2.8 3.0 3.5 4.0 4.5 5.0
Gold Cut-Off (g/t)
Ounces
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The Lone Sister deposit is located approximately six kilometres south of 309 and is considered part of the same auriferous Twin Hills mineralising system. Lone Sister appears as a more tightly constrained deposit, more closely related to a vein system, and was described in part as this by previous workers. This deposit has been modelled based on data from a total of 50 drillholes and on a 2.0 g/t Au cut-off grade assuming that underground mining is the likely mining method. This model also extends to approximately 400 metres below surface and, as for the 309 deposit, there is no drill testing below this depth.

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Figure 7: Grade tonnage curve for the Lone Sister Gold Deposit.

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Twin Hills - Lone Sister Depost
3,000,000 7.0
Tonnes Gold (g/t)
6.0
2,500,000
5.0
2,000,000
4.0
1,500,000
3.0
1,000,000
2.0
500,000
1.0
0 0.0
0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5
Gold Cut-Off (g/t)
Tonnes
Gold (g/t)
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Figure 8: Contained gold versus cut-off grade for the Lone Sister Gold Deposit.

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Twin Hills - Lone Sister Depost
350,000
300,000
250,000
200,000
150,000
100,000
50,000
0
0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00
Gold Cut-Off (g/t)
Ounces
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2018 Twin Hills Gold Project – 309 and Lone Sister Resource Estimates Commentary

Geology, Mineralisation and Exploration Potential

The Twin Hills 309 and Lone Sister deposits are contained within Mining Licence 70316 which is located within a broader tenement package being purchased by GBM within the western arm of the Drummond Basin (see Figure 1). Mineralisation in the Drummond Basin is characterised as high-grade epithermal style precious metal deposits. Examples include Pajingo (3.2 Moz), Wirralie (1.1 Moz), Yandan (0.6 Moz) and Koala. Mineralisation is typified by fine grained electrum in quartz veins and or breccias. These deposits are interpreted to have formed locally in extensional jogs or bends of transform fault systems.

309 Deposit

The northern and primary resource of the two advanced-stage prospects at Twin Hills and the only one with any mine development. 309 is an eruption breccia, intrusion-related low sulphidation epithermal gold-silver system with input from polyphase intrusions at depth. Sinters at surface indicate full system preservation. Local bonanza grades are present (e.g. 17 m @ 317.4 g/t Au from 222 m in TRCD728 including, 5 m @ 1036.6 g/t Au from 222 m, 4 m @ 49.03 g/t Au from 230 m) (Refer ASX: GBZ release 18 January 2019) and the deposit is zoned from silver-dominated near surface to gold-dominated with depth.

Three high grade mineralised zones were previously defined with Area 1 subjected to mining between 2005 and 2007 by BMA; Area 1 consists of chalcedonic silica-flooded breccia with fine disseminated electrum, Area 2 is a broad EW zone of narrow steeply south-dipping quartz-calcite veins carrying free gold, and Area 3 is a well-defined steeply north-dipping zone of more intense stockwork quartz-calcite veins. In general, 309 does not conform to a Pajingo-style “fat-vein” dilational epithermal model, more closely resembling an anastomosing or stockwork vein type. Current resource modelling has identified additional zones, some of which require further testing to lift the resource classification level.

Exploration potential at the 309 Deposit includes:

• Down-plunge depth extensions to identified ore shoots, including Area 2 (beyond 350 m below surface).

• Persistence of low-sulphidation Ginguro-style veins to 450 m concentrated in dilational shoots on the WNW-trending bounding Great Southern Fault – epithermal pressure-temp conditions may persist in fault dilational zones to significant depth.

Lone Sister Deposit

The deposit is located 7 km south of 309 and has seen no significant exploration activity since 2008. Mineralisation is interpreted as low-sulphide epithermal Au restricted to a porphyritic rhyolite dome host and an adjacent related hydrothermal breccia. Mineralisation extends to at least 350m below surface and is open at depth. The deposit location on flexures in through-going structures suggests mineralisation may continue to depth. Gold is present in two main styles; as sooty sulphide veinlets and as open-space banded mineralisation in the breccia.

Further exploration potential at Lone Sister:

• Intrusive source at depth for the mineralizing fluids in the breccia body

• Moderate to steep north-plunging shoots within the rhyolite unit remain open.

Drilling Techniques

This Resource estimate is based on diamond (DD) and reverse circulation (RC) drilling data compiled from previous exploration and mining activity.

Whilst the drilling was carried out under the supervision of several companies, the drilling, sampling and assaying methods varied little throughout the history of the project.

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RC drilling used a face sample hammer to reduce downhole contamination. RC holes were rarely downhole surveyed. Surface diamond core drilling (HQ and NQ) was mostly tails off RC pre-collars. The diamond holes were surveyed at an average of 35m downhole.

Underground diamond drilling (BQ) was used for very closely spaced infill drilling prior to mining. The 309 mineral resource estimate is based on 429 drill holes for 55,947.63 m. Of these 16 were diamond core holes drilled from surface totalling 2,459.1 m; 196 diamond core holes drilled from underground totalling 12,608.3 m; 111 diamond core tails of RC pre-collars totalling 29,528.31 m; 106 RC holes drilled from surface totalling 11,351.82 m.

The Lone Sister mineral resource estimate is based on 50 drill holes for 14,067.72 m. Of these 42 were diamond core tails of RC pre-collars totalling 13,260.72 m; 8 were RC holes drilled from surface totalling 807.0 m. Diamond core recovery was very high, averaging 99.7% at 309 and 100% at Lone Sister.

Sampling Methods

RC drilling drill cuttings were sampled from the cyclone at 1.0 m intervals and sub-sampled using Jones riffle splitters to a 2 kg – 3 kg sample.

Diamond drill core was sub-sampled by cutting the core in half longitudinally using a diamond saw. The core was cut at the highest angle possible to geological features to ensure that half of each geological feature was sampled. Diamond core samples were generally to 1.0 m

Sample Analysis Method

All samples were assayed for Au by fire assay with aqua regia / AAS finish. Approximately 65% of samples were also assayed for Ag using the same method.

Assay quality control procedures varied through time with different operators. In general blanks and standards were inserted at a rate of 1 in 10 – 20 and pulp duplicates at 1 in 15 samples. 50% of samples > 0.5 g/t Au were sent to an umpire laboratory. The results of these data indicate that the quality of the data is suitable for use in resource estimation.

Estimation Methodology

The raw gold assay results were composited to 2.0 m prior to statistical analysis and variography. For the 309 deposit gold grades were interpolated in a block model with parent blocks 5 m by 5 m by 5 m subblocked to 1.25 m x 1.25 m x 1.25 m Interpolation was by ordinary kriging within 2 variably oriented gold grade domains interpreted at a nominal 0.2 g/t Au. The gold grade domains were used as hard boundaries.

At the Lone Sister deposit gold grades were interpolated in a block model with parent blocks 4 m x 16 m x 10 m and sub-blocks of 1 m x 4 m x 12.5 m. Interpolation was by ordinary kriging within a gold grade domain interpreted at a nominal 1.0 g/t Au. The gold grade domain was used as a hard boundary. Grades above 60 g/t Au were restricted to within 16 m.

Oxidation domains were interpreted from logged oxidation and used to code the block model for determination of mineralisation types and assignment of bulk density.

Limited density is available so assumed densities (based on typical values for lithology and oxidation level) were assigned to blocks. All oxide material was assigned a density of 2.4 t/m3 and 2.6 t/m3 in fresh material.

Resource Classification Criteria

The 309 block model was classified in accordance with the JORC 2012 code.

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Resource classification took into account:

• geological continuity

• the plausibility of alternative geological interpretations,

• data (drilling) density and configuration (distance to nearest samples, number holes used)

• kriging slope of regression

Resource classification was based on largely on measures of grade estimation quality. The low grade and simple shape of the gold grade domain meant that geological continuity was not considered for resource classification because the level of confidence in geological continuity is uniform throughout the model.

Measured resources have been classified from continuous zones where the average distance of composite samples used to interpolate a block was less than 15 m, the kriging slope of regression was greater than 0.7 and data from at least three drillholes was used.

Indicated resources were classified from continuous zones where the average distance of composite samples used to interpolate a block was 15 m – 25 m, the kriging slope of regression was 0.1 - 0.7 and data from at least two drillholes was used.

All remaining material inside the gold grade domains was classified as inferred.

All of the Lone Sister block model was classified as inferred as the geological interpretation is not unequivocal.

Validation of the block models was by:

• comparison to reported production of the 309 deposit to closure in early 2007 which totalled 75,848 t @ 10.0 g/t Au. This resource estimate reports 76,000 t at 6.8 g/t Au from the mined voids.

• visually, by comparison of block model grades to de-clustered composite grades,

• by comparison of histograms of block and composite grades and in swath plots.

Cut-off Grades

The resource has been estimated at a range of cut-off grades which are presented as grade and tonnage curves in Figures 5, 6, 7 & 8. Potentially open pit resources at 309 were reported from above 1050 RL at a cut-off of 0.4 g/t Au. The cut-off grade was revised to 0.4 g/t Au for the potential open pit resources (from 1.0 g/t Au, used in 2019) due to the significantly higher current gold price of AUD$2,500/oz. Further metallurgical testwork on low grade samples is required to improve confidence in this area as the project advances, along with understanding the impact on costs of a larger plant fed from GBM’s three resource areas. The previous pit optimisation at a gold price of AUD$1,500/oz extended to 1050 RL. Work will soon start on new pit optimisations to explore how deep a possible pit might push at current gold prices. This is likely to result in less Underground resources and a larger potential open pit resource.

Underground resources at 309 and Lone Sister are reported from below 1050 RL at a 2.0 g/t cut-off. The cutoff grade reflects previous underground mining studies with an allowance for reasonably foreseeable gold price increases. Following planned drilling in 2022 the underground resources will be re-evaluated at lower cut-off grades.

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Mining and Metallurgical Methods.

This Resource estimate is based on the following assumptions, that:

• Open pit mining is technically feasible at the 309 deposit. This is supported by previous mining studies and preliminary pit optimisations. A previous pit optimisation at a gold price of AUD$1,500/oz extended to 1050 RL. Open pit mining was not considered an option at the Lone Sister Deposit, however future studies may demonstrate that this is possible as mineralisation does extend to near surface.

• Underground mining is supported by previous mining at the 309 orebody and later feasibility studies demonstrating that this is possible and feasible.

• An economic processing route will be found. Previous mining was conducted using conventional CIL treatment methodologies, however sulphide flotation and leaching of the concentrate might provide an alternative along with integration into a possible centralised processing plant Significant amount of metallurgical testwork has been completed by previous operators and reviewed by GBM and supports this view.

• In a reasonable timeframe to development, the gold price increases in line with long term trends.

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 ( ASX: GBZ) is a well-funded 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 a number of 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 define 2-3 Moz and 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.

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COMPETENT PERSON STATEMENT

The information in this report that relates to The Twin Hills Mineral Resources is based on information compiled by Kerrin Allwood, who is a Member of The Australasian Institute of Mining and Metallurgy and The Australasian Institute of Geoscientists. Mr Allwood is a full time employee of Geomodelling Limited. Mr Allwood has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking 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’. Mr Allwood consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

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.

References

1. GBM Resources. (2019, January 18). Mt Coolon and Twin Hills Combined Resource Base Approaches 1 Moz. ASX:GBZ ASX Release.

2. GBM Resources (2020, 23 December). Mt Coolon and Yandan Combined Resources Total 852,000 oz, Following Completion of Yandan Acquisition. ASX:GBZ ASX Release.

3. Corbett, G. (2006). Comments on Geology and Exploration of the Twin Hills Gold Project, QLD, Australia. Internal report for BMA Gold

4. Sennit, C.M. (1991). Aspects of Epithermal Gold Mineralisation, Twin Hills, QLD. MSc thesis, James Cook University (unpub.).

5. Alston, A.J., Hartley, J.S., Sennitt, C.M., 1991. The Geology of the Twin Hills Epithermal Gold Deposit, Queensland. World Gold ’91, Cairns, pp. 331-339.

6. King, S. (1999). Structural Controls on Gold Mineralisation at the Twin Hills Project, Drummond Basin, QLD. Internal Report for Homestake Gold.

Appendices

• 1 GBM Mineral Resource Estimates For the Drummond Basin Projects (Mt Coolon, Yandan and Twin Hills) along with other project interests

• 2 309 Deposit and Lone Sister Deposit JORC Table 1

Refer ASX: GBZ release 18 January 2019 - Mt Coolon and Twin Hills Resource Base Approaches 1Moz, for the following:

309 Deposit Surface Drillhole Collar Table

Lone Sister Deposit Surface Drillhole Collar Table

• 309 Deposit Surface Drilling Downhole Intersection Summary Table Lone Sister Surface Drilling Downhole Intersection Summary Table

309 Surface Drillhole Location Plan

Lone Sister Surface Drillhole Location Plan.

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

Deposit		Resource Category	Resource Category	Resource Category	Resource 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 all, Vertigo is		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

• 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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APPENDIX 2 – Table 1

JORC CODE, 2012 EDITION – TABLE 1 REPORT FOR TWIN HILLS PROJECT, 309 AND LONE SISTER DEPOSITS

a. Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections.)

	Criteria	JORC Code explanation	Commentary
	Sampling	• Nature and quality of sampling (e.g. cut channels, random chips, or	•These mineral resource estimates are based on samples from
	techniques	specific specialised industry standard measurement tools appropriate	reverse circulation (RC) and diamond core (DD) drilling.
		to the minerals under investigation, such as down hole gamma	•RC drill cuttings were sampled from the cyclone at 1.0 m intervals
		sondes, or handheld XRF instruments, etc.). These examples should	and sub-sampled using Jones riffle splitters which are designed to
		not be taken as limiting the broad meaning of sampling.	allow the collection of unbiased sub-samples.
		• Include reference to measures taken to ensure sample representivity	•DD core was sub-sampled by cutting the core in half longitudinally
		and the appropriate calibration of any measurement tools or systems	using a diamond saw. The core was cut at the highest angle possible
		used.	to geological features to ensure that half of each geological feature
		• Aspects of the determination of mineralisation that are Material to the	was sampled. Diamond core samples were generally to 1.0 m
		Public Report.	intervals but honoured geological contacts where appropriate.
		• In cases where ‘industry standard’ work has been done this would be	•All sub-samples were then bagged and dispatched to external
		relatively simple (e.g. ‘reverse circulation drilling was used to obtain 1	commercial laboratories for assay. All samples were analysed for
		m samples from which 3 kg was pulverised to produce a 30 g charge	gold by fire assay followed by aqua regia digestion and AAS analysis.
		for fire assay’). In other cases more explanation may be required,	Silver was similarly assayed by fire assay / AAS for 68% of the
		such as where there is coarse gold that has inherent sampling	samples and arsenic by aqua regia digest and AAS analysis for 50%
		problems. Unusual commodities or mineralisation types (e.g.	of the samples. Selected samples were analysed for a multi-element
		submarine nodules) may warrant disclosure of detailed information.	suite.
	Drilling	• Drill type (e.g. core, reverse circulation, open-hole hammer, rotary air	309 mineral resource estimate:
	techniques	blast, auger, Bangka, sonic, etc.) and details (e.g. core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc.).	•The 309 mineral resource estimate is based on 429 drill holes for 55,947.63 m. Of these 16 were diamond core holes drilled from surface totaling 2,459.1 m; 196 diamond core holes drilled from
			underground totaling 12,608.3 m; 111 diamond core tails of RC pre-
			collars totaling 29,528.31 m; 106 RC holes drilled from surface
			totaling 11,351.82 m.
			•All RC drilling utilized a face sample hammer.
			•DD core was HQ and NQ in size for surface drilling and BQ for
			underground drilling.
			Lone Sister mineral resource estimate:
			•The Lone Sister mineral resource estimate is based on 50 drill holes
			for 14,067.72 m. Of these 42 were diamond core tails of RC pre-
			collars totaling13,260.72 m;8 were RC holes drilled from surface

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Criteria	JORC Code explanation	Commentary
		totaling 807.0 m.
		•All RC drilling utilized a 5.25 inch face sample hammer.
		•DD core was HQ and NQ in size.
Drill sample	• Method of recording and assessing core and chip sample recoveries	•RC drilling recovery was not recorded, previous explorers did not note
recovery	and results assessed.	that there was any significant issue at the time of drilling. Raw assays
	• Measures taken to maximise sample recovery and ensure	and intercept calculations presented have not be adjusted or omitted
	representative nature of the samples.	for poor recoveries.
	• Whether a relationship exists between sample recovery and grade	•Diamond drilling recovery was measured run by run as recovered
	and whether sample bias may have occurred due to preferential	length compared to drilled length.
	loss/gain of fine/coarse material.	•For the 309 mineral resource estimate diamond drilling recovery is
		available for 44 holes and averages 99.7%
		•For the Lone Sister mineral resource estimate diamond drilling
		recovery is available for 9 holes and averages 100.0%
		•Any potential relationship between drilling recovery and gold grade
		was not investigated because the diamond drilling run recovery is so
		high in the available data.
Logging	• Whether core and chip samples have been geologically and	•All drill core and chips were logged for lithology, colour, weathering
	geotechnically logged to a level of detail to support appropriate	and alteration using standardized codes.
	Mineral Resource estimation, mining studies and metallurgical	•Selected diamond core was also logged for geotechnical data (RQD,
	studies.	strength, fracture frequency, joint type and roughness)
	• Whether logging is qualitative or quantitative in nature. Core (or	•All intersections were logged.
	costean, channel, etc.) photography.
	• _The total length and percentage of the relevant intersections logged. _
Sub-sampling	• If core, whether cut or sawn and whether quarter, half or all core	•RC drill cuttings were sub-sampled using 3 tier (12.5%) Jones riffle
techniques	taken.	splitters to yield a 2 kg – 3 kg sub-sample.
and sample	• If non-core, whether riffled, tube sampled, rotary split, etc. and	•RC sample moisture was not recorded and any measures taken
preparation	whether sampled wet or dry.	sample wet or moist RC samples have not been recorded.
	• For all sample types, the nature, quality and appropriateness of the	•DD core was sub-sampled by cutting the core in half longitudinally
	sample preparation technique.	using a diamond saw. The core was cut at the highest angle possible
	• Quality control procedures adopted for all sub-sampling stages to	to geological features to ensure that half of each geological feature
	maximise representivity of samples.	was sampled. Diamond core samples were generally to 1.0 m
	• Measures taken to ensure that the sampling is representative of the in	intervals but honoured geological contacts where appropriate.
	situ material collected, including for instance results for field	•Very rare visible gold (<1.0 mm) is present at both deposits. Whilst no
	duplicate/second-half sampling.	analysis of the optimal sample size for such material was undertaken
	• Whether sample sizes are appropriate to thegrain size of the material	it is likelythat the sample size is insufficient for a reliable result. The

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Criteria	JORC Code explanation	Commentary
	being sampled.	impact of these samples on the resource estimates was managed by
		the restriction of outliers during interpolation (see below).
Quality of	• The nature, quality and appropriateness of the assaying and	•The assay methods used are total and appropriate to the style of
assay data	laboratory procedures used and whether the technique is considered	mineralization.
and	partial or total.	•No geophysical methods were used
laboratory	• For geophysical tools, spectrometers, handheld XRF instruments,	•Assay quality control procedures varied through time with different
tests	etc., the parameters used in determining the analysis including	operators. In general blanks and standards were inserted at a rate of
	instrument make and model, reading times, calibrations factors	1 in 10 – 20 and pulp duplicates at 1 in 15 samples. 50% of samples
	applied and their derivation, etc..	> 0.5 g/t Au were sent to an umpire laboratory. The results of these
	• Nature of quality control procedures adopted (e.g. standards, blanks,	data indicate that the quality of the data is suitable for use in resource
	duplicates, external laboratory checks) and whether acceptable levels	estimation.
	_of accuracy (i.e. lack of bias) and precision have been established. _
Verification of	• The verification of significant intersections by either independent or	•GBM have not carried out any check assays
sampling and	alternative company personnel.	•Twinned holes were not drilled, however the underground drilling at
assaying	• The use of twinned holes.	the 309 deposit resulted in very closely spaced (< 1.0 m) drilling.
	• Documentation of primary data, data entry procedures, data	These holes showed that both gold grade and veining is highly
	verification, data storage (physical and electronic) protocols.	variable at less than 10 m scale but form continuous zones at 10 m –
	• Discuss any adjustment to assay data.	100 m scale.
		•The raw assay data (laboratory certificates) was available for
		approximately 80% of the data.
		•Negative values in the database less than -0.1 g/t Au were treated as
		null values (not sampled), negative values between 0 and -0.1 g/t Au
		were halved and converted to positive values on the assumption that
		these were below detection values.
Location of	• Accuracy and quality of surveys used to locate drill holes (collar and	•Surface drill collar locations were determined by differential GPS
data points	down-hole surveys), trenches, mine workings and other locations	(DGPS) to +/- 0.1 m.
	used in Mineral Resource estimation.	•Underground drill collar locations were determined by the mine
	• Specification of the grid system used.	surveyor (total station instrument).
	• Quality and adequacy of topographic control.	•Downhole surveys were taken at an average of 35 m spacing
		downhole in DD and RC DD holes.
		•Most RC holes were not surveyed down hole
		•Topographic control in the block models are from triangulated 2.0 m
		contours created from surface survey traverses. The topographic
		surfaces are suitable for resource estimation.
		•Underground voids at the 309 deposit are from wireframes created
		fromunderground survey data (development) andlaserscans

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Criteria	JORC Code explanation	Commentary	Commentary
			(stopes). These are suitable for resource estimation.
		•	All locational data was originally acquired local grids. GBM used
			MapInfo software to convert all locational data (including historical
			wireframes) to MGA grid.
Data spacing	• Data spacing for reporting of Exploration Results.	•	Drill data spacing varies significantly from less than 1.0 metre near
and	• Whether the data spacing and distribution is sufficient to establish the		underground drill sites at the 309 deposit to 40 m in areas defined by
distribution	degree of geological and grade continuity appropriate for the Mineral		widely spaced surface drilling.
	Resource and Ore Reserve estimation procedure(s) and	•	Underground drilling at 309 is on varying azimuths and dips.
	classifications applied.	•	Surface drilling at 309 is on 25 m spaced east-west and 25m spaced
	• Whether sample compositing has been applied.		north – south sections
		•	Surface drilling at Lone Sister is on 40 m spaced east-west sections
			and largely drilled towards the east at dips of -60° to -80°.
		•	All resource estimation work has been completed in MGA zone 55
			using the GDA94 datum but with 1,000 m added to elevation to
			prevent negative elevations.
Orientation of	• Whether the orientation of sampling achieves unbiased sampling of	•	The gross geometry of mineralisation at 309 is largely isotropic. The
data in	possible structures and the extent to which this is known, considering		varying drilling orientations used at 309 has allowed definition of this
relation to	the deposit type.		geometry and does not introduce any known bias
geological	• If the relationship between the drilling orientation and the orientation	•	The Lone Sister mineralization is more tabular in nature, striking north
structure	of key mineralised structures is considered to have introduced a		– south and dipping steeply to the west. The drilling towards the east
	sampling bias, this should be assessed and reported if material.		is appropriate to define the geology of the mineralization and does not
			introduce any known bias
Sample	• The measures taken to ensure sample security.	•	Any measures taken to ensure sample security from the site to the
security			assay laboratories have not been recorded.
Audits or	• The results of any audits or reviews of sampling techniques and data.	•	The competent person is not aware of any audits having been carried
reviews			out on the data used in this resource estimate.
		•	The data used in this resource estimate have been reviewed several
			times during BMA mining and for various due diligence studies
			carried out when the project has changed hands.

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b. Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section.)

	Criteria	JORC Code explanation	Commentary
	Mineral	• Type, reference name/number, location and ownership including	•Twin Hills 309 and Lone Sister deposits are contained within current
	tenement and	agreements or material issues with third parties such as joint	Mining Licence ML70316, expiry 31/12/2019. The license is jointly
	land tenure	ventures, partnerships, overriding royalties, native title interests,	owned by Minjar Gold Pty Ltd through subsidiary companies NQM
	status	historical sites, wilderness or national park and environmental	Gold 2 Pty Ltd (60%) and CQT Gold Australia Pty Ltd (40%) and is
		settings.	subject to a Sale and Purchase agreement with Mount Coolon Gold
		• The security of the tenure held at the time of reporting along with any	Mines Pty Ltd, a wholly owned subsidiary of GBM Resources Ltd. On
		known impediments to obtaining a licence to operate in the area.	completion of the purchase, royalties on gold production will be to
			the Queensland Government (currently 5% on all ML’s in the state of
			QLD) and a 2.5% to Franco –Nevada Australia Pty Ltd. Consent has
			been obtained for the transfer Conquest Mining Ltd. From its parent
			company, Evolution Mining Ltd.
			•Environmental Authority EPML00772013 is current and the Financial
			Assurance (now ERC) held by the Queensland Department of
			Environment and Science is currently AUD$1,475,156. and will be
			subject to the recently lodged Progressive Rehabilitation Closure Plan
			(PRCP
			•The licence is subject to an ILUA with the Jangaa People. The NW
			corner of the licence falls within a Strategic Cropping Zone and the
			licence is contained within a Forest Management Area.
			•There are no known impediments to future mining on this Licence.
	Exploration	• Acknowledgment and appraisal of exploration by other parties.	•Exploration has been carried out by several companies over a long
	done by other		period of time at Twin Hills. Gold mineralisation was first recognized
	parties		at Twin Hills by Metana Minerals NL in 1987. Since that time the
			project area has been held under either an exploration of mining
			licence by a variety of companies and joint ventures.
			•BMA Gold commenced underground mining at 309 in January 2006
			and ceased mining in February 2007.
			•Of the drilling data used to inform the 309 mineral resource estimate
			Metana drilled 1 DD hole (120m) and 1 RC hole (89m) in 1988,
			Plutonic drill 31 RCDD holes (8555.41m) and 53 RC holes (5,197.4m)
			from 1994 to 1999 and BMA Gold drilled 15 surface DD holes
			(2,339.1m), 80 RCDD holes (2,0973m), 52 RC holes (6,065.42m) and
			196 underground DD holes (12,608.3m) from 2002 until 2007.
			•At the Lone Sister deposit Metana drilled 1 RCDD hole(435.5m)and

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Criteria	JORC Code explanation	Commentary
		2 RC holes (200m) in 1988, Plutonic drilled 15 RCDD holes
		(5,134.99m) and 1 RC hole (93m) from 1988 to 1997 and in 2006,
		Homestake Gold drilled 4 RCDD holes (1,379.33m) from 1998-1999)
		and BMA Gold 22 RCDD holes (6,310.9m) and 5 RC holes (514m)
		from 2004 to 2007.
		•The Twin Hills project area has also been subject to aerial magnetic
		and radiometric surveys, soil geochemistry, RAB geochemistry and IP
		surveys.
		•The mineral resource estimates reported on here are based on the
		appropriately validated results of work completed by the above
		companies.
		•GBM have not completed any significant work at Twin Hills other than
		site inspections to review stored drill core, site geology, site
		infrastructure and access.
Geology	• Deposit type, geological setting and style of mineralisation.	•The Twin Hills deposits are situated within the western domain of the
		Upper Devonian to Lower Carboniferous Drummond Basin, host to a
		number of epithermal gold deposits including the Pajingo deposit (3.2
		Moz production to date).
		•The 309 deposit comprises a stockwork of very high grade, narrow
		(0.2 m) low sulphidation epithermal quartz-sulphide veins hosted in
		variably altered and mineralized breccias. The breccias comprise
		dominantly shale clasts in a very fine grained matrix. The overall
		geometry of gold mineralization at 309 is a steeply plunging body and
		is open at depth. The epithermal quartz veins form sheeted vein sets
		that strike north and locally vary in dip from sub-vertical to gently east
		dipping. Minor fluorite occurrences in associated with open space
		comb quartz suggest a significant magmatic component to the vein
		forming fluids.
		•The Lone Sister deposit is a more typical low sulphidation epithermal
		gold deposit. Gold mineralization is host by low grade quartz veins
		and very high grade quartz-sulphide veins. The gold mineralisation
		occurs in altered rhyolite. The quartz veins strike north south and dip
		50° to 80° to the west.
Drill hole	• A summary of all information material to the understanding of the	•Drill hole collar and intercept tables are previously reported, (Refer
Information	exploration results including a tabulation of the following information	ASX: GBZ release 18 January 2019)
	for all Material drill holes:

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Criteria	JORC Code explanation	Commentary
	o easting and northing of the drill hole collar
	o elevation or RL (Reduced Level – elevation above sea level in
	metres) of the drill hole collar
	o dip and azimuth of the hole
	o down hole length and interception depth
	o hole length.
	• If the exclusion of this information is justified on the basis that the
	information is not Material and this exclusion does not detract from
	the understanding of the report, the Competent Person should clearly
	_explain why this is the case. _
Data	• In reporting Exploration Results, weighting averaging techniques,	•All drilling intercepts from past exploration above 20 gram.metres
aggregation methods	maximum and/or minimum grade truncations (e.g. cutting of high grades) and cut-off grades are usually Material and should be stated. • Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.	(grade x length) have been reported. (Refer ASX: GBZ release 18 January 2019) Intervals are down hole length weighted average grades above 1 g/t Au incorporating up to 2 metres of lower grade material or internal dilution. Grades have not been cut as cutting of high grades in this style of mineralisation with a significant high grade
	• The assumptions used for any reporting of metal equivalent values	component.
	should be clearly stated.	•No metal equivalents are reported.
Relationship	• These relationships are particularly important in the reporting of	•Drilling is generally oriented perpendicular to the strike of the
between	Exploration Results.	mineralisation at angles varying from acute to perpendicular.
mineralisation	• If the geometry of the mineralisation with respect to the drill hole	However only downhole intersections have been reported due to the
widths and	angle is known, its nature should be reported.	variety of drill orientations and volume of drilling, the mature nature of
intercept	• If it is not known and only the down hole lengths are reported, there	the deposit with a range of drilling orientations.
lengths	should be a clear statement to this effect (e.g. ‘down hole length, true
	_width not known’). _
Diagrams	• Appropriate maps and sections (with scales) and tabulations of	•Appropriate images are included within the text of the release along
	intercepts should be included for any significant discovery being	with those in the original release (Refer ASX: GBZ release 18
	reported These should include, but not be limited to a plan view of	January 2019).
	_drill hole collar locations and appropriate sectional views. _
Balanced	• Where comprehensive reporting of all Exploration Results is not	•Refer ASX: GBZ release 18 January 2019 for tables of intercepts.
reporting	practicable, representative reporting of both low and high grades
	and/or widths should be practiced to avoid misleading reporting of
	_Exploration Results. _
Other	• Other exploration data, if meaningful and material, should be reported	•No exploration results are reported.
substantive	_including (but not limited to): geological observations; geophysical _

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Criteria	JORC Code explanation	Commentary
exploration	survey results; geochemical survey results; bulk samples – size and
data	method of treatment; metallurgical test results; bulk density,
	groundwater, geotechnical and rock characteristics; potential
	_deleterious or contaminating substances. _
Further work	• The nature and scale of planned further work (e.g. tests for lateral	•Further work will focus on metallurgical testwork to determine
	extensions or depth extensions or large-scale step-out drilling).	possible processing options, step out drilling to extend both the 309
	• Diagrams clearly highlighting the areas of possible extensions,	and Lone Sister deposits at depth and infill drilling at the Lone Sister
	including the main geological interpretations and future drilling areas,	deposit to allow higher confidence resource estimation.
	provided this information is not commercially sensitive.

c. Section 3 Estimation and Reporting of Mineral Resources

(Criteria listed in section 1, and where relevant in section 2, also apply to this section.)

Criteria	JORC Code explanation	Commentary
Database	• Measures taken to ensure that data has not been corrupted by, for	•The data was provided as three separate databases none of which
integrity	example, transcription or keying errors, between its initial collection	contained all the data. These 3 databases were compiled into a single
	and its use for Mineral Resource estimation purposes.	database and then validated. Validation checks included checks for
	• Data validation procedures used.	duplicate samples, duplicate holes, interval overlaps, extreme high
		grades. Where errors were found these were checked against the
		original assay certificates and fixed.
		•The data provided included many types of drilling. All RAB, open hole
		percussion, auger and air core drilling was omitted from the database
		prior to use in resource estimation as these drilling methods are not
		considered suitable for resource estimation.
Site visits	• Comment on any site visits undertaken by the Competent Person and	•The competent person visited the site for a period of two days in
	the outcome of those visits.	December 2018. During this visit archived drill core was reviewed and
	• If no site visits have been undertaken indicate why this is the case.	compared to assays and the site layout and infrastructure assessed.
Geological	• Confidence in (or conversely, the uncertainty of) the geological	•The confidence in geological interpretation at the 309 deposit varies
interpretation	interpretation of the mineral deposit.	with scale. The broad mineralization envelope has been well defined
	• Nature of the data used and of any assumptions made.	by drilling and has a gradation boundary and so presents little risk at
	• The effect, if any, of alternative interpretations on Mineral Resource	the low grade interpreted. The confidence in the geological
	estimation.	interpretation of high grade veins within this envelope is low as the
	• The use of geology in guiding and controlling Mineral Resource	controls on these veins are not understood and drilling shows that the
	estimation.	spatial continuity of these veins is low (less than 20m and usually less
	• _The factors affecting continuity both ofgrade andgeology. _	than 10 m).

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Criteria	JORC Code explanation	Commentary
		•The 309 mineral resource estimate was controlled by a gold grade
		domain interpreted at a nominal 0.2 g/t Au. A gold grade domain was
		used because gold mineralization does not honour any geological or
		alteration features. The grade of 0.2 g/t Au is somewhat arbitrary,
		being approximately 50% of the lowest reasonably foreseeable
		mining cut-off (assuming open pit mining and heap leach processing).
		A cumulative probability plot of gold grades showed no natural lower
		cut-off to gold mineralization.
		•The confidence in the geological interpretation of the Lone Sister
		deposit is moderate. The geometry of the gold mineralization is
		simpler and more continuous, although in places alternative,
		reasonable interpretations are possible. The country rock is
		monotonous and so has no impact on the geological variability of gold
		mineralization.
		•The Lone Sister mineral resource estimate was controlled by a gold
		grade domain interpreted at a nominal 1.0 g/t Au. A gold grade
		domain was used because gold mineralization does not honour any
		geological or alteration features. The grade of 1.0 g/t Au is somewhat
		arbitrary, being approximately 50% of the lowest reasonably
		foreseeable mining cut-off (assuming underground mining and CIL
		processing). A cumulative probability plot of gold grades showed no
		natural lower cut-off to gold mineralization.
Dimensions	• The extent and variability of the Mineral Resource expressed as	•The 309 deposit extends about 350 m in strike (north) length and 150
	length (along strike or otherwise), plan width, and depth below	m wide (east-west). The mineralized breccia has been shown by
	surface to the upper and lower limits of the Mineral Resource.	drilling to extend to at least 400m below surface and is open at depth.
		•The Lone Sister deposit has been defined by drilling over a strike
		length of 250 m and to a depth of 400 m. The width varies from 2 m to
		a maximum of 60m but is typically 15 m – 30 m wide. The main
		mineralized zone plunges about 45° towards 010°.
Estimation	• The nature and appropriateness of the estimation technique(s)	The 309 deposit:
and modelling techniques	applied and key assumptions, including treatment of extreme grade values, domaining, interpolation parameters and maximum distance of extrapolation from data points. If a computer assisted estimation method was chosen include a description of computer software and parameters used. • The availability of check estimates, previous estimates and/or mine	•Gold and silver grades were interpolated into a block model with parent blocks 5 m x 5 m x 5 m and sub-blocks of 1.25 m x 1.25 m x 1.25 m by ordinary kriging. The raw assay data were composited to 2.0 m prior to geostatistical analysis and interpolation. The interpolation was carried out within a gold grade domain interpreted from 2.0 m longcomposites at a nominal 0.2g/t as hard boundary

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Criteria JORC Code explanation	Commentary	Commentary	Commentary	Commentary
production records and whether the Mineral Resource estimate takes appropriate account of such data. • The assumptions made regarding recovery of by-products. • Estimation of deleterious elements or other non-grade variables of economic significance (e.g. sulphur for acid mine drainage characterisation). • In the case of block model interpolation, the block size in relation to the average sample spacing and the search employed. • Any assumptions behind modelling of selective mining units. • Any assumptions about correlation between variables. • Description of how the geological interpretation was used to control the resource estimates. • Discussion of basis for using or not using grade cutting or capping. • The process of validation, the checking process used, the comparison of model data to drill hole data, and use of reconciliation data if available.	and two orientation domains separating zones of shallowly east dipping and sub-vertical high grade veins. High grade samples were not restricted because these showed geological continuity where there is sufficiently dense data and because the block model reconciled to past production better when these data were used. The ordinary kriging used separate variogram models in each orientation domain. The variogram models are shown below. The search neighbourhood used an appropriately oriented ellipsoid with axes 50 m by 50 m 25 m in the flat domain and 80 m x 40 m x 20 m in the steep domain. A minimum of 5 and a maximum of 30 composites (maximum 10 per quadrant) were used for interpolation in both domains. Mineralisation Domain 1 (shallow east dip) 2 (steep) Exp VG Type correlogram correlogram Nugget Variance C0 0.44 0.57 Sills (Spherical) C1 0.27 0.2 C2 0.29 0.2 Ranges_1 (m) Maj 4.5 5 Sem 5 3 Min 3 3 Ranges_2 (m) Maj 16 30 Sem 20 14 Min 6 8 Variogram Rot (MEDS, ZXY) Maj 170 130 Sem 0 -70 Min 10 90 Actual Direction (plunge/trend) Maj 00/170 -70/130 Sem -10/080 -20/302 Min 80/080 02/213 •Only gold and silver were estimated as there are insufficient data to
			Mineralisation Domain
			1 (shallow east dip)	2 (steep)
		**Exp VG Type **	correlogram	correlogram
	Nugget Variance	C0	0.44	0.57
	Sills (Spherical)	C1	0.27	0.2
		C2	0.29	0.2
	Ranges_1 (m)	Maj	4.5	5
		Sem	5	3
		Min	3	3
	Ranges_2 (m)	Maj	16	30
		Sem	20	14
		Min	6	8
	Variogram Rot (MEDS, ZXY)	Maj	170	130
		Sem	0	-70
		Min	10	90
	Actual Direction (lune/trend)	Maj	00/170	-70/130
		Sem	-10/080	-20/302
	pg	Min		02/213
	•Only gold and silver

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Criteria JORC Code explanation	Commentary	Commentary	Commentary
	estimate any other variable •Variants using no high grade restriction and inverse distance squared weighting were used to assess the interpolation parameters used. •The block model was validated visually against the raw assay data, statistically against de-clustered average composite grade and by the use of swath plots. •The block model was reconciled to past production (76,000 t at 6.8 g/t Au compared to past production of 75,848 t @ 10.0 g/t Au). The Lone Sister Deposit •Gold and silver grades were interpolated into a block model with parent blocks 4 m x 16 m x 10 m and sub-blocks of 1 m x 4 m x 12.5 m by ordinary kriging. The raw assay data were composited to 2.0 m prior to geostatistical analysis and interpolation. The interpolation was carried out within a single gold grade domain interpreted at a nominal 1.0 g/t as hard boundary. High grade samples greater than 60 g/t were restricted to within 16 m. 60 g/t was selected as the outlier restriction from cumulative probability plots and a visual assessment of the continuity of grades above 60 g/t. The variogram model used is shown below. The search neighbourhood used a spherical search ellipsoid with axes of 60 m. A minimum of 4 and a maximum of 30 composites (maximum 12 per quadrant) were used for interpolation in both domains. Mineralisatio n Domain 11 Exp VG Type correlogram Nugget Variance C0 0.60 Sills (Spherical) C1 0.05 C2 0.35 Ranges_1 (m) Maj 6 Sem 6 Min 6
			Mineralisatio n Domain
			11
		**Exp VG Type **	correlogram
	Nugget Variance	C0	0.60
	Sills (Spherical)	C1	0.05
		C2	0.35
	Ranges_1 (m)	Maj	6
		Sem	6
		Min	6

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Criteria JORC Code explanation	Commentary
	Ranges_2 (m)	Maj	18
		Sem	18
		Min	18
	Variogram Rot (MEDS, ZXY)	Maj	0
		Sem	0
		Min	10
	Actual Direction (lune/trend)	Maj	00/000
		Sem	00/000
	pg	Min	00/000
Moisture • Whether the tonnages are estimated on a dry basis or with natural moisture, and the method of determination of the moisture content.	•All tonnages are reported on a dry basis. No moisture content was determined.
Cut-off parameters • The basis of the adopted cut-off grade(s) or quality parameters applied.	•For the 309 resource estimate a cut-off grade of 0.4 g/t Au was applied above 1050 RL, and 2.0 g/t Au below 1050 RL. These cut-off grades assume that open pit mining is feasible to 1050 RL and underground mining below that and that a CIL processing plant could be economically built and operated at, or close to the site. •For the Lone Sister resource estimate a cut-off grade of 2.0 g/t Au was applied, assuming that underground mining and a CIL processing plant could be economically built and operated at, or close to the site.
Mining factors or assumptions • Assumptions made regarding possible mining methods, minimum mining dimensions and internal (or, if applicable, external) mining dilution. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider potential mining methods, but the assumptions made regarding mining methods andparameters when estimating Mineral Resources	•For the 309 deposit open pit mining is assumed possible to 1050 RL based on a pit optimization of a previous model at AUD1500/oz Au. Given the increase in the gold price since that time, open pit mining is likely economic to greater depths so this may be a little conservative. Mining selectivity to a minimum of 2 metres is assumed. •For the 309 andLone Sisterdeposits undergroundminingis assumed

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Criteria	JORC Code explanation	Commentary
	may not always be rigorous. Where this is the case, this should be	possible to a minimum width of 3.0m
	reported with an explanation of the basis of the mining assumptions
	_made. _
Metallurgical	• The basis for assumptions or predictions regarding metallurgical	•CIL recoveries greater than 85% have been demonstrated for ore
factors or	amenability. It is always necessary as part of the process of	above 4 g/t by past production at 309. There is limited testwork
assumptions	determining reasonable prospects for eventual economic extraction to	suggesting that CIL recoveries above 80% are possible for low grade
	consider potential metallurgical methods, but the assumptions	309 mineralisation. Heap leach recovery may also be possible for low
	regarding metallurgical treatment processes and parameters made	grade ore at 309 but there is no test work to support this.
	when reporting Mineral Resources may not always be rigorous.	•No metallurgical testwork has been carried out on Lone Sister
	Where this is the case, this should be reported with an explanation of	mineralization. Economically viable CIL recovery is assumed on the
	the basis of the metallurgical assumptions made.	basis that the mineralization is similar to 309 mineralisation.
Environmenta	• Assumptions made regarding possible waste and process residue	•It is assumed that the placement of mining waste would be permitted
l factors or	disposal options. It is always necessary as part of the process of	within the current mining lease as there are existing waste dumps.
assumptions	determining reasonable prospects for eventual economic extraction to	•The presence of sulphide minerals in the 309 waste material
	consider the potential environmental impacts of the mining and	suggests that it may be potentially acid forming, although there has
	processing operation. While at this stage the determination of	been no test work to confirm this.
	potential environmental impacts, particularly for a greenfields project,	•The Lone Sister fresh waste also contains sulphide minerals but at a
	may not always be well advanced, the status of early consideration of	lower level and so some may be acid forming.
	these potential environmental impacts should be reported. Where	•There is currently no tailings storage facility at site.
	these aspects have not been considered this should be reported with
	_an explanation of the environmental assumptions made. _
Bulk density	• Whether assumed or determined. If assumed, the basis for the	•Bulk density at the both deposits was assigned by weathering
	assumptions. If determined, the method used, whether wet or dry, the	domain. There are only 62 density samples from the two deposits
	frequency of the measurements, the nature, size and	combined and all of these are from fresh material. A density of 2.6
	representativeness of the samples.	t/m3 was applied to fresh material and 2.4 t/m3 to oxide material. 2.6
	• The bulk density for bulk material must have been measured by	t/m3 approximates the average of the 62 fresh samples (2.61 t/m3)
	methods that adequately account for void spaces (vugs, porosity,	and the oxide density of 2.4 t/m3 was assumed from comparable
	etc.), moisture and differences between rock and alteration zones	projects.
	within the deposit.	•Voids created by previous mining at the 309 deposit were assigned a
	• Discuss assumptions for bulk density estimates used in the	density of 0.0 t/m3.
	_evaluation process of the different materials. _
Classification	• The basis for the classification of the Mineral Resources into varying	•The 309 mineral resources were classified into continuous zones of
	confidence categories.	like confidence using the distance to the nearest composite, the
	• Whether appropriate account has been taken of all relevant factors	average distance of all composites used to estimate a block, the
	(i.e. relative confidence in tonnage/grade estimations, reliability of	kriging slope of regression (a function of the grade continuity in the
	input data, confidence in continuity of geology and metal values,	variogram model and the spatial configuration of the data used to
	_quality, quantity and distribution of the data). _	estimate a block)and the number of drill holes used to estimate a

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Criteria	JORC Code explanation	Commentary
	• Whether the result appropriately reflects the Competent Person’s	block. The geological continuity of the gold domain was not used for
	view of the deposit.	resource classification because the shape is rather simple and the
		resource cut-off grade is well above the domain nominal cut-off grade
		so that the resource limits are defined by the cut-off grade rather than
		the domain shape. Data quality was also considered but not used
		because the data quality is good and not spatially variable.
		•The Lone Sister deposit was all classified as inferred due to the
		limited
Audits or	• The results of any audits or reviews of Mineral Resource estimates.	•This mineral resource estimate has not been audited or reviewed as
reviews		the project is at a preliminary stage of development.
Discussion of	• Where appropriate a statement of the relative accuracy and	•The relative accuracy and confidence level in the Mineral Resource
relative	confidence level in the Mineral Resource estimate using an approach	estimates are considered to be in line with the generally accepted
accuracy/	or procedure deemed appropriate by the Competent Person. For	accuracy and confidence of the nominated Mineral Resource
confidence	example, the application of statistical or geostatistical procedures to	categories. This has been determined on a semi- quantitative basis,
	quantify the relative accuracy of the resource within stated confidence	and is based on the Competent Person’s experience with similar
	limits, or, if such an approach is not deemed appropriate, a qualitative	deposits.
	discussion of the factors that could affect the relative accuracy and	•The resource classification relates to both global and local estimates.
	confidence of the estimate.	•For the 309 deposit the block model was reconciled to past
	• The statement should specify whether it relates to global or local	production (75,848 t @ 10.0 g/t Au. This resource estimate reports
	estimates, and, if local, state the relevant tonnages, which should be	76,000 t at 6.8 g/t Au from the mined voids).
	relevant to technical and economic evaluation. Documentation should
	include assumptions made and the procedures used.
	• These statements of relative accuracy and confidence of the estimate
	should be compared withproduction data, where available.

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