GBM RESOURCES LIMITED. — Capital/Financing Update 2022

Jan 16, 2022

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ASX Announcement 17 January 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

Transformational Acquisition of HighGrade Twin Hills Gold Project Completes

KEY POINTS

• GBM Resources Limited (ASX: GBZ) ( GBM or the Company ) advises of the completion of the acquisition of the Twin Hills Gold Project Tenements ( Twin Hills ) from Minjar Gold Pty Ltd.

• The transaction consideration represents a highly competitive acquisition cost of A$5.53 (approx. US$4.00) per gold resource ounce.

• Twin Hills is considered highly prospective for the discovery of additional mineralisation , with analysis suggesting high grade gold shoots at 309 and Lone Sister may be open at depth.

• GBM will now commence plans to test these targets at Twin Hills in early 2022 along with re-estimation of the Mineral Resource.

• Significant historical drill results to be followed up with drilling include (see Table 1):

KEY POINTS  GBM Resources Limited (ASX: GBZ) (GBMor theCompany)advises of the completion of the acquisition of the Twin Hills Gold Project Tenements(Twin Hills) from Minjar Gold Pty Ltd.  The transaction consideration representsa highly competitive acquisition cost of A$5.53 (approx. US$4.00) per gold resource ounce.  Twin Hills is consideredhighly prospective for the discovery of additional mineralisation, with analysis suggesting high grade gold shoots at 309 and Lone Sister may be open at depth.  GBM will now commence plans to test these targets at Twin Hills in early 2022 along with re-estimation of the Mineral Resource.  Significant historical drill resultsto be followed up with drilling include (see Table 1):	KEY POINTS  GBM Resources Limited (ASX: GBZ) (GBMor theCompany)advises of the completion of the acquisition of the Twin Hills Gold Project Tenements(Twin Hills) from Minjar Gold Pty Ltd.  The transaction consideration representsa highly competitive acquisition cost of A$5.53 (approx. US$4.00) per gold resource ounce.  Twin Hills is consideredhighly prospective for the discovery of additional mineralisation, with analysis suggesting high grade gold shoots at 309 and Lone Sister may be open at depth.  GBM will now commence plans to test these targets at Twin Hills in early 2022 along with re-estimation of the Mineral Resource.  Significant historical drill resultsto be followed up with drilling include (see Table 1):
	309 Deposit
	- THRCD875: 140.6 m @ 5.2 g/t Aufrom 154 m (731 g/m)
	incl.8 m @ 81.8 g/t Aufrom 177 m
	- TRCD384: 190 m @ 2.3 g/t Aufrom 25 m (437 g/m)
	incl.27 m @ 7.3 g/t Aufrom 100 m
	Lone Sister Deposit
	- LRCD015: 146 m @ 9.8 g/t Aufrom 104 m (1,430 g/m)
	incl.28 m @ 45.2 g/t Aufrom 211 m
	- LRCD140: 254 m @ 1.2 g/t Aufrom 128 m (304 g/m)
	incl.12 m @ 4.1 g/t Aufrom 265 m
 Combined gold resources under GBM’s ownership in the Drummond Basin now total
approximately 1.5 Mozacross the Yandan, Mt Coolon and Twin Hills assets (see Table 3 for
combined Mt Coolon and Yandan resources). 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).
Key terms of Twin Hills acquisition:
 Total cash consideration payable to NQM of ~A$2 million, along with assuming the financial
assurance in respect of the environmental authorities for the tenements (currently for an amount of
~A$1.48 million).

GBM Managing Director and CEO, Peter Rohner, commented: “Completion of this transformational transaction 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 the potential for transition to a genuine mid-tier Australian gold company. “We look forward to now commencing an aggressive initial extensional and infill drilling program at Twin Hills along with progressing our exciting Yandan and Mt Coolon projects.”

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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 km 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 and 19 July 2021 and Table 1 below.

GBM considers that potential depth extensions and strike repetition of both the 309 and Lone Sister deposits have not been adequately tested and is looking forward to drilling the project in early 2022.

Table 1: 309 and Lone Sister Deposit Selected Down Hole Gold Drill Intersections.

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The 309 Deposit has been estimated to comprise 4.9 Mt averaging 2.4 g/t Au containing 372,900 ounces of gold and 471,000 ounces of silver (assuming open pit mining to 1050 RL, or a depth of approximately 200 m).

The Lone Sister Deposit is estimated at 2.0 Mt at an average grade of 4.0 g/t Au containing 260,000 ounces of gold and 604,000 ounces of silver (refer to Table 2).

Table 2: Twin Hills Resource Summary for the 309 and Lone Sister Gold Deposits (rounded for reporting ‘000 tonnes, ’00 ounces, 0.0 grade). See ASX GBM 18 January 2019 ‘Mount Coolon and Twin Hills Combined Resource Base Approaches 1 Million Ounces’. Open Pit Resources (above 1050 RL) stated at 1.0 g/t Au cut-off and underground resources (below 1,050 RL) stated at 2.0 g/t Au.

Category	Cutoff	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	1.0	320,000	4.4	6.4	44,400	65,000
Indicated	1.0	2,690,000	2.2	3.4	193,100	295,400
Inferred	1.0	1,300,000	1.4	1.7	58,500	70,100
Total open pit	1.0	4,310,000	2.1	3.1	296,000	430,500
		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	1.0 / 2.0	320,000	4.4	6.4	44,400	65,000
Indicated	1.0 / 2.0	2,800,000	2.3	3.4	209,900	307,300
Inferred	1.0 /2.0	1,810,000	2.0	1.7	118,600	98,900
TOTAL	1.0 / 2.0	4,930,000	2.4	3.0	372,900	471,200
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	1.0 / 2.0	320,000	4.4	6.4	44,400	65,000
Indicated	1.0 / 2.0	2,800,000	2.3	3.4	209,900	307,300
Inferred	1.0 /2.0	3,820,000	3.1	5.7	378,700	703,700
TOTAL	1.0 / 2.0	6,940,000	2.8	4.8	633,000	1,076,000

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Key Terms of the Twin Hills Tenement Sale Agreement

Total cash consideration of ~A$2.1 million (including adjustments), along with assuming the financial assurance in respect of the environmental authorities for the tenements (currently for an amount of ~A$1.48 million).

The Twin Hills Project (EPM 19856 and ML 70316 which includes the current resources) is subject to a 2.5% royalty on fine gold produced.

Refer ASX: GBZ releases 15 February 2021, 19 July 2021 and 15 November 2021 for further details regarding the Twin Hills acquisition.

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 ~1.5 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.

COMPETENT PERSON STATEMENT

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.

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 with those announcements continue to apply.

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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	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 2.6 55,100 50 3.2 5,300 9 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 1.1 32,400 905 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	320 4.4 44,400	2,690 2.2 193,100 110 4.8 16,800	1,300 1,4 58,500 510 3.7 60,100 2,010 4.0 260,100	4,310 2.1 296,000 620 3.9 76,900 2,010 4.0 260,100	1.0 2.0 2.0
Sub Total	320 4.4 44,400	2,800 2.3 209,900	3,820 3.1 378,700	6,940 2.8 633,000
Drummond Basin Total	434 3.6 50,600	6,389 1.9 391,800	28,239 1.1 1,042,100	35,093 1.3 1,484,500
	White Dam
Hannaford - Open Pit Vertigo - Open Pit White Dam North - Open Pit		700 0.7 16,400 300 1.0 9,400 200 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 below surface)
Malmsbury JV
Sub Total - UG			820 4.0 104,000	820 4.0 104,000	2.5
Sub Total - UG - GBM Share	52,000
GBM Total	1,638,400

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

• 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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