GBM RESOURCES LIMITED. — Capital/Financing Update 2023

Apr 13, 2023

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

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

gbmr.com.au

ABN 91 124 752 745

ASX Announcement 14 April 2023

Cloncurry Project: Drilling to Commence at Mt Margaret

Key Points

• Diamond drilling is about to commence at the Mount Margaret Project located immediately north of the large Ernest Henry copper-gold mine (EHM), and part of the 45% owned Cloncurry Project Farm in/Joint Venture with Nippon Mining of Australia (NMA). See Figure 4 for location.

• Moving Loop Electro-Magnetic (MLEM) surveying in 2022 defined a strong and deep basement conductor at the FC4 prospect, 7 km north of EHM.

• The single deep diamond drill hole will test the MLEM plate models for the presence of Eloisestyle massive pyrrhotite-pyrite-chalcopyrite mineralisation in a favourable reduced host rock contact shear zone setting within the same magnetic belt that hosts the EHM.

GBM Resources Limited (ASX: GBZ) (GBM or the Company) is pleased to announce the commencement of diamond drilling at the Mount Margaret project, located adjacent to the Ernest Henry mine, Cloncurry, North West Queensland. The Cloncurry Project is subject to a Farm-In/Joint Venture agreement with Nippon Mining of Australia (NMA, a wholly owned subsidiary of JX Nippon Mining & Metals Corporation (JXNMM)). Cloncurry Project exploration is fully funded by NMA who currently hold a 55% interest in the Joint Venture.

A ground-based electromagnetic (EM) geophysical survey completed in 2022 by the JV at the Mount Margaret FC4 prospect detected a strong and relatively deep conductor associated with a narrow magnetic linear feature and adjacent to an historical MIMDAS (Mount Isa Mining) chargeability anomaly. The magnetic belt is the north-easterly continuation of the same suite of Fort Constantine Volcanics rocks that hosts the Ernest Henry deposit approximately 7 km to the south-west. Shallow historical drilling by MIM in the area returned anomalous Cu and intersected a wide Cu-bearing shear and breccia zone in a lithological setting prospective for Eloise-type Iron Sulphide Copper Gold mineralisation (ISCG). A single scout diamond drill hole has been designed to intersect the modelled EM plate anomaly at between 300 and 400 m below surface. Drilling is scheduled to commence this week.

GBM Managing Director & CEO, Peter Rohner, commented: “Following some recent geophysical work and resulting interpretation, it is good to finally be back drilling at our Mt Margaret Copper-Gold Project after a period of limited drilling activity.”

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2022 MLEM Survey

Two east-west MLEM trial lines were completed in 2019 across part of the greater FC4 area immediately north of Ernest Henry mine. A single broad basement conductor was detected on the northern line, coincident with the contact between a magnetic low and 4 km long linear magnetic high ridge below 50 m of cover sediments.

Shallow drilling by MIM in the 1990’s indicated the Proterozoic unconformity was often highly anomalous for Cu. Two deeper MIM diamond holes were sited towards the eastern end of the prospect, beyond the magnetic low, and were drilled to test the MIMDAS anomaly. One of these (FTCD1049) intersected a 40 m wide highly sheared and brecciated zone with pyrite and chalcopyrite in felsic volcanic rocks at the contact with a carbonaceous (reduced) shale unit. MIM considered the IP anomaly was related to “dark rock” alteration (mgt-bt-py-cpy) in the volcanics and not the adjacent carbonaceous shale unit.

As a result of the conductor detected in GBM’s 2019 MLEM survey and MIM’s interesting and insufficiently followed up drilling results, the JV completed an additional three north-south MLEM lines across the magnetic belt in 2022 (Figure 1 and 2). On all three lines a broad and strong latechannel conductor was detected approximately coincident with the magnetic low and adjacent to the MIM chargeability anomaly.

Modelling of the EM data using two model variants produced south-dipping conductor plates of similar geometry topping out approximately 300 m below surface. A third model variant was tried with parameters designed to force the model closer to surface and the adjacent IP anomaly. This failed and the third plate modelled with similar location and geometry to the previous two, giving confidence in the robustness of the models.

2023 Diamond Drilling Program

In consideration of all four datasets (EM, IP, magnetics, drilling) GBM interprets the EM as detecting a massive sulphide concentration within MIM’s broad contact shear zone intersected in FTCD1049 in a more favourable lithological (rheological and/or chemical) setting along strike where the magnetic contrast is much more pronounced.

A single deep diamond drill hole is planned to test the EM plate models for Eloise-style massive pyrrhotite-pyrite-chalcopyrite mineralisation. The drill hole is designed to intersect the three-plate convergence zone on the central EM survey line near the upper plate edge between 300-400 m below surface. The total hole length is planned to 550 m and drilling is scheduled to be completed in the next 3 weeks with final results expected in late June subject to laboratory turnaround. See Figure 3 for planned drill section.

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Figure 1 : Mt Margaret Project FC4 prospect MLEM lines and station location diagram on TPI RTP magnetics with proposed drillhole collar location and access.

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Figure 2 : FC4 MLEM survey lines and EM anomaly/plate models with proposed 2023 drill collar and trace, and MIM historical MIMDAS and drilling.

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Figure 3 : FC4 MLEM survey MLEM plate models with MIMDAS chargeability section (looking west), MIM shallow drilling and proposed 2023 drill hole design.

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Figure 4 : Location map of JV tenements (Mt Margaret and Bungalien Projects) in North West Queensland.

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This ASX announcement was approved and authorised for release by:

Peter Rohner, Managing Director

For further information please contact:

Investor enquiries Peter Rohner Managing Director +61 8 9316 9100 peter.rohner@gbmex.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 several premier metallogenic terrains.

GBM’s flagship project in the Drummond Basin (QLD) holds ~1.84 Moz of gold in JORC resources (Mt Coolon, Yandan and Twin Hills). Some tenements in the Basin have recently become the subject of a A$25m farm-in with Newcrest. 2023 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 GBM also holds tenements in the Mt Morgan district, in the Mt Isa Inlier in Queensland (JV with Nippon Mining Australia - 55%) and also holds a 100% interest in the White Dam Gold-Copper Project in South Australia. Divestment of these non-core assets is in progress.

Competent Person Statement

The information in this report that relates to Exploration Results is based on information compiled by Neil Norris, who is a Member of The Australasian Institute of Mining and Metallurgy and The Australasian Institute of Geoscientists. Mr Norris is a full-time employee of the Company, and is a holder of shares and options in the company. Mr Norris 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 Norris 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 in the original reports, and that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original reports.

Where the Company refers to the exploration results and Mineral Resources in this report (referencing previous releases made to the ASX), it confirms that it is not aware of any new information or data that materially affects the information included in that announcement and all material assumptions and technical parameters underpinning the Mineral Resource estimates with that announcement continue to apply and have not materially changed.

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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	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 -ML
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 - ML
Sub Total - Open Pit		1,070 1.6 55,200	580 1.2 23,100	1,660 1.5 78,300	0.4
	Yandan - ML
East Hill - Open Pit Yandan South - Open Pit		4,860 1.5 240,000	7,900 0.8 203,000 900 0.6 16,000	12,800 1.1 443,000 900 0.6 16,000	0.4 0.3
Sub Total		4,860 1.5 240,000	8,800 0.8 219,000	13,700 1.0 459,000
	Illamahta
Oxide - Open Pit Sulphide - Open Pit			1,147 0.7 26,900 1,045 0.9 28,600	1,147 0.7 26,900 1,045 0.9 28,600	0.4 0.4
Sub Total			2,192 0.8 55,500	2,192 0.8 55,500
	Twin Hills - ML
309 - Open Pit 309 - UG Lone Sister - Open Pit Lone Sister - UG	830 2.8 73,900	5,480 1.3 235,200 190 4.0 24,500 5,250 1.3 277,300 370 2.9 34,300	3,650 1.1 129,800 480 3.9 59,900 6,550 0.9 188,500 310 2.6 25,800	9,960 1.4 438,900 670 3.9 84,400 11,800 1.1 415,800 680 2.7 60,100	0.4 2.0 0.4 2.0
Sub Total	830 2.8 73,900	11,290 1.4 521,300	10,990 1.1 404,000	23,110 1.3 999,200
Drummond Basin Total	944 2.6 80,100	19,739 1.5 943,200	24,901 1.0 820,900	45,655 1.26 1,844,200
	White Dam - ML
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 a	ll, Vertigo is restricted to above 150RL (~70 m below surface)
	Malmsbury - RL
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	1,998,100

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 Announcement, 4 December 2017, Mt Coolon Gold Project Scoping Study, note these resources have not been verified by Newcrest and are on tenements subject to a recent farm-in agreement with Newcrest

• Yandan – GBM ASX Announcement, 23 December 2020, Mt Coolon and Yandan Combined Resources Total 852,000 oz, following completion of Yandan acquisition, GBM ASX Announcement, 14 March 2023, Results of Yandan Mineral Resource Update

• Twin Hills – GBM ASX Announcements, 18 January 2019, Mt Coolon and Twin Hills Combined Resource Base Approaches 1 Million Ounces, 2 February 2022, Significant Resource Upgrade at Twin Hills Project and 5 December 2022, Twin Hills Gold Project Upgrades to ~1 Moz Mineral Resource

• 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, refer note in table also.

• 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 Resource

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APPENDIX 2: JORC Code, 2012 Edition – Table 1 Cloncurry JV Project

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Section 1 Sampling Techniques and Data

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

Criteria	JORC Code explanation	Commentary	Commentary
Sampling	• Nature and quality of sampling (e.g. cut channels,	•	Moving Loop Electromagnetic (MLEM) surveying was
techniques	random chips, or specific specialised industry standard		undertaken by GAP Geophysics Australia Pty Ltd as a ground-
	measurement tools appropriate to the minerals under		based survey using light vehicles for equipment transport and
	investigation, such as down hole gamma sondes, or		support.
	handheld XRF instruments, etc.). These examples should	•	Surveys were completed at three Mt Margaret prospects; FC4,
	not be taken as limiting the broad meaning of sampling.		FC4NW and FC6/12.
	• Include reference to measures taken to ensure sample	•	The surveys employed a Gap EM system that consisted of a
	representivity and the appropriate calibration of any		GeoPak EMTX 200 transmitter, GeoPak DC10-LV2 generator
	measurement tools or systems used.		system, and an EMIT SMARTem24 receiver coupled with
	• Aspects of the determination of mineralisation that are		several sensors.
	Material to the Public Report.	•	Receiver sensors employed consisted of: a 3-component B-
	• In cases where ‘industry standard’ work has been done		field Jessy Deep HT Squid 4.5.3, a 3-component EMIT
	this would be relatively simple (e.g. ‘reverse circulation		Fluxgate and a 3-component RVR.
	drilling was used to obtain 1 m samples from which 3 kg	•	Sample rates for the three receivers were 80k Hz, 24k Hz and
	was pulverised to produce a 30 g charge for fire assay’). In		120k Hz respectively.
	other cases more explanation may be required, such as	•	Loop geometry consisted of single turns using 35 mm2 wire
	where there is coarse gold that has inherent sampling		for either 100 m or 200 m loop sizes with Slingram (receiver
	problems. Unusual commodities or mineralisation types		outside the loop) setup. At FC4 prospect, 200 m loops were
	(e.g. submarine nodules) may warrant disclosure of		employed.
	detailed information.
Drilling	• Drill type (e.g. core, reverse circulation, open-hole	•	No new drilling is being reported in this announcement.
techniques	hammer, rotary air 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.). _
Drill sample	• Method of recording and assessing core and chip	•	No new drilling is being reported in this announcement.
recovery	sample recoveries and results assessed.
	• Measures taken to maximise sample recovery and
	ensure representative nature of the samples.
	• Whether a relationship exists between sample recovery

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Criteria	JORC Code explanation	Commentary	Commentary
	and grade and whether sample bias may have occurred
	due topreferential loss/gain of fine/coarse material.
Logging	• Whether core and chip samples have been geologically	•	No new drilling is being reported in this announcement.
	and geotechnically logged to a level of detail to support
	appropriate Mineral Resource estimation, mining studies
	and metallurgical studies.
	• Whether logging is qualitative or quantitative in nature.
	Core (or costean, channel, etc.) photography.
	• The total length and percentage of the relevant
	intersections logged.
Sub-	• If core, whether cut or sawn and whether quarter, half or	•	No new drilling is being reported in this announcement.
sampling	all core taken.
techniques	• If non-core, whether riffled, tube sampled, rotary split,
and sample	etc. and whether sampled wet or dry.
preparation	• For all sample types, the nature, quality and
	appropriateness of the sample preparation technique.
	• Quality control procedures adopted for all sub-sampling
	stages to maximise representivity of samples.
	• Measures taken to ensure that the sampling is
	representative of the in situ material collected, including for
	instance results for field duplicate/second-half sampling.
	• Whether sample sizes are appropriate to the grain size
	of the material being sampled.
Quality of	• The nature, quality and appropriateness of the assaying	•	GAP Geophysics MLEM equipment is described above.
assay data	and laboratory procedures used and whether the technique	•	Transmitter timing is by internal control with GPS
and	is considered partial or total.		synchronization.
laboratory	• For geophysical tools, spectrometers, handheld XRF	•	The 3-component receiver sensors were orientated using the
tests	instruments, etc., the parameters used in determining the		“Along-The-Line” convention where X = along the positive line
	analysis including instrument make and model, reading		direction, Y = 90 degress anti-clockwise from the X-
	times, calibrations factors applied and their derivation, etc.		component and Z = positive vertically.
	• Nature of quality control procedures adopted (e.g.	•	Three to five readings are recorded per station (typically three)
	standards, blanks, duplicates, external laboratory checks)		and readings are inspected by the operator at the time of data
	and whether acceptable levels of accuracy (i.e. lack of		collection to ensure repeatability and quality. Any readings
	bias) and precision have been established.		that are deemed too noisy or show abnormal decays are
			discarded
		•	InitialQC isperformed on the data usingSMARTem24

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Criteria	JORC Code explanation	Commentary	Commentary
			(SMART Fluxgate or RVR) in Office mode. Crosschecks
			include survey specifications, synchronisation, loop positioning
			and polarity convention.
		•	During the QC process for EM data, the Theoretical Primary
			Field (TPRIM) for the loop and transmitted current is
			calculated for the required polarity convention. This is then
			compared with the measured Primary Field (VPRIM) to ensure
			that the Polarity Convention is correct. The polarity convention
			used for Induced source EM surveys is defined so that the
			vertical component is positive inside the loop during the
			transmit ON time.
Verification	• The verification of significant intersections by either	•	Data are acquired using the various receivers as previously
of sampling	independent or alternative company personnel.		described. The SMARTem Projects (SMART Fluxgate or
and	• The use of twinned holes.		RVR) are uploaded to GAP servers on a nightly basis for
assaying	• Documentation of primary data, data entry procedures,		Quality Control checks prior to any loop retrieval. This includes
	data verification, data storage (physical and electronic)		the full stacked waveforms so that reprocessing may be
	protocols.		performed if required.
	• Discuss any adjustment to assay data.	•	Project manager and consultant geophysicist Greenfields
			Geophysics Pty Ltd performed regular data verification checks
			throughout the program in addition to GAP in-house
			verification.
		•	EM data modelling consultant Montana GIS also verified data
			duringthe 3D modelling process.
Location of	• Accuracy and quality of surveys used to locate drill	•	Transmitter loop location is surveyed by handheld GPS and
data points	holes (collar and down-hole surveys), trenches, mine		imported into GPS Trackmaker software. The resulting GPS
	workings and other locations used in Mineral Resource		tracks are provided to the QC Manager and
	estimation.	•	Receiver locations are recorded by the internal inbuilt GPS
	• Specification of the grid system used.		receiver in GDA MGA Z54 coordinate system.
	• Quality and adequacy of topographic control.	•	Elevation control is tied to the Geocentric Datum of Australia
			(GDA94) and Australian Height Datum (AHD), calculated
			usingAusGeoid09.
Data	• Data spacing for reporting of Exploration Results.	•	MLEM loop size was generally 200 m with 100 m receiver
spacing and	• Whether the data spacing and distribution is sufficient to		spacing.
distribution	establish the degree of geological and grade continuity
	appropriate for the Mineral Resource and Ore Reserve
	estimation procedure(s) and classifications applied.
	• Whether sample compositing has been applied.

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Criteria	JORC Code explanation	Commentary	Commentary
Orientation	• Whether the orientation of sampling achieves unbiased	•	MLEM line orientation was north-south, approximately
of data in	sampling of possible structures and the extent to which this		perpendicular to stratigraphy, magnetic lineaments and
relation to	is known, considering the deposit type.		structural trends.
geological	• If the relationship between the drilling orientation and
structure	the orientation of key mineralised structures is considered
	to have introduced a sampling bias, this should be
	assessed and reported if material.
Sample	• The measures taken to ensure sample security.	•	No new drilling is being reported in this announcement.
security
Audits or	• The results of any audits or reviews of sampling	•	No audits have been conducted however the data was
reviews	techniques and data.		reviewed by geophysical contractors Greenfields Geophysics
			PtyLtd and Montana GIS PtyLtd on completion of the survey.

Section 2 Reporting of Exploration Results

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

Criteria	JORC Code explanation	Commentary	Commentary
Mineral	• Type, reference name/number, location and	•	In 2010 GBM entered a major Farm In Agreement for the Cloncurry
tenement and	ownership including agreements or material		Project with Pan Pacific Copper now held through their registered
land tenure	issues with third parties such as joint ventures,		subsidiary Cloncurry Exploration & Development Pty Ltd (CED).
status	partnerships, overriding royalties, native title		During 2016/7, A Joint Venture (JV) Agreement was finalised in the
	interests, historical sites, wilderness or national		December quarter 2017. The JV was restructured in 2021 and
	park and environmental settings.		Nippon Mining of Australia (NMA, a wholly owned subsidiary of JX
	• The security of the tenure held at the time of		Nippon Mining & Metals Corporation (JXNMM) is now the sole
	reporting along with any known impediments to		partner. NMA currently holds approximately 55% and GBM 45%
	obtaining a licence to operate in the area.		interest respectively in the project. To date, the Farm-in parties have
			spent over A$17M on exploration within the Project tenements.
		•	The GBM/NMA Cloncurry Project comprises eleven granted EPM's
			held by GBM's subsidiary company Isa Tenements Pty Ltd. The
			tenement area totals over 810 km2.
		•	A 2 % net smelter royalty is payable to Newcrest Mining Ltd on 5 of
			the 11 project leases, including four within the Mt Margaret Project
			(EPMs 16398,16622,18172 and 18174).

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Criteria	JORC Code explanation	Commentary	Commentary
Exploration	• Acknowledgment and appraisal of exploration	•	The majority of the historic exploration within the Cloncurry Project JV
done by other	by other parties.		has been completed within the Mt Margaret project area.
parties		•	The very large historical Mount Fort Constantine Joint Venture
			tenements have been explored by a number of companies prior to
			WMC. Early work by CRAE, Chevron, Teton and then ANZ Exploration,
			between 1974 and 1979, concentrated on exploring for roll-front
			uranium deposits in the Mesozoic cover sequences. Chevron in
			particular drilled a large number of holes, many of which intersected
			basement. BHP pegged most of the current lease area as the Mount
			Margaret tenement from 1984 - 1986 because the area contained the
			largest undrilled magnetic anomalies in the Mount Isa block. A number
			of holes were drilled to basement without success exploring for
			magnetite skarn and ironstone-gold deposits.
		•	Hunter Resources were granted the tenements covering the EPM 8648
			area in March 1990 and entered a joint venture with WMC, who
			managed the project. WMC identified 7 target areas, FC1 - 7 with TEM,
			as being prospective for Starra style magnetic iron oxide hosted Cu-Au
			mineralisation. During 1991 drilling identified ore grade intersections at
			FC5, subsequently named 'Ernest Henry'. In February 1992 the current
			tenements were granted to the WMC/Hunter Resources JV. MIMEX
			joined the JV in place of Hunter Resources during 1993, although
			WMC continued to manage the project until 1996 when MIMEX
			assumed management and sole funding of the project. In 2003 Xstrata
			assumed management of exploration of the project until 2006.
		•	Western Mining Corporation (WMC), MIM Exploration Pty Ltd (MIMEX)
			and Xstrata Copper Exploration Pty Ltd (Xstrata) completed extensive
			exploration activities over many of the Mt Margaret tenements (FC1 to
			FC15 and other prospects outside GBM tenement areas). Activities
			included regional and prospect scale aeromagnetic, ground magnetic,
			gravity, TEM (transient electromagnetic), IP-resistivity (induced
			polarization) and MIMDAS IP-resistivity and MT (magnetotelluric)
			geophysical surveys, along with soil geochemical analysis, and field
			inspections.
		•	Xstrata commenced a comprehensive program of systematic regional-
			style IP-resistivitysurveyingin July2003,designed to seek large

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Criteria	JORC Code explanation	Commentary	Commentary
			sulphide systems in those areas of Mount Fort Constantine EPM 8648
			not previously surveyed with either WMC IP-resistivity or MIMEX IP.
			Xstrata also conducted additional prospect scale ground magnetics,
			gravity and drilling. Most of the sub-blocks over the EPM 8648 were
			relinquished by Xstrata and Newcrest post 2006. Newcrest Mining
			Limited (NML) acquired the Mt Margaret West EPM 14614 (now Dry
			Creek tenement - EPM 18172) and carried out work primarily restricted
			to reviewing geological, geophysical and geochemical data from
			previous drilling, due to the scarcity of outcrop within this tenement.
			Previously RC and core drill holes were scan logged, and samples
			submitted for Petrology to assist in understanding the mineralisation
			and geology of the area. During 2006 22 RC holes were drilled within
			the Mt Margaret West EPM 14614. NML determined that significant
			potential remains for a discovery of economic gold-copper
			mineralisation within the area.
Geology	• Deposit type, geological setting and style of	•	Geologically the Mount Isa Inlier is divided into three broad tectonic
	mineralisation.		units: the Western and Eastern Fold Belts and the intervening
			Kalkadoon-Leichardt Belt (KLB). The Western Fold Belt (WFB) is
			subdivided into the Lawn Hill Platform, Leichardt River Fault Trough,
			Ewen Block and Myally Shelf. The Eastern Fold Belt (EFB) is
			subdivided into the Mary Kathleen, Quamby-Malbon and Cloncurry-
			Selwyn zones and the KLB includes the western parts of the Wonga
			Belt and Duchess Belt.
		•	In the Mt Isa Inlier, a deformed and metamorphosed Proterozoic
			basement of mixed sedimentary and igneous rocks older than 1870Ma
			is overlain by Proterozoic supracrustal rocks which are subdivided into
			four major sequences each separated by unconformities. Cover
			Sequence 1, which is confined mainly to the KLB comprises a basal
			sequence of subaerial felsic volcanics deposited between 1870-
			1850Ma; Cover Sequences 2, 3 and 4 comprise mainly fluviatile and
			shallow marine/lacustrine sedimentary rocks and bimodal volcanics
			that were deposited between 1790-1720Ma, 1680-1620Ma and ~1620-
			1590Ma, respectively.
		•	Two major tectonostratigraphic events are recognised in the Mt Isa

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Criteria	JORC Code explanation	Commentary	Commentary
			Inlier. The first was the Barramundi Orogeny which at 1870Ma
			regionally deformed the basement. The second involved two periods of
			crustal extension between 1790-1760Ma and 1680-1670Ma lead to
			basin formation. This period was terminated between 1620-1550Ma by
			regional compressional deformation and post orogenic granite
			emplacement resulting in folding and high and low angle faulting and
			regional metamorphism to amphibolite facies.
		•	Granites and mafic intrusions were emplaced at various times before
			1100Ma. With those older than 1550Ma being generally
			metamorphosed and deformed. The major granite plutons are grouped
			into a number of batholiths, from west to east are the Sybella
			(~1670Ma) in the WFB, Kalkadoon (~1860Ma), Ewen (~1840Ma) and
			the Wonga (1740-1670Ma) Batholiths in the KLB, and the late to post
			tectonic Naraku (~1500Ma) and Williams (~1500Ma) Batholiths in the
			EFB. Other smaller granitic intrusions include the Weberra (~1700Ma),
			Big Toby (~1800Ma) and Yeldham (~1820Ma) granites.
		•	Most of the gold and copper produced to date in the Mt Isa Inlier has
			come from intrusive and/or shear and fault controlled deposits in the
			EFB.
Drill hole	• A summary of all information material to the	•	No new drilling is being reported in this announcement
Information	understanding of the exploration results including
	a tabulation of the following information for all
	Material drill holes:
	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.

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Criteria	JORC Code explanation	Commentary	Commentary
Data	• In reporting Exploration Results, weighting	•	No new drilling is being reported in this announcement
aggregation	averaging techniques, maximum and/or minimum
methods	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.
	• The assumptions used for any reporting of
	metal equivalent values should be clearly stated.
Relationship	• These relationships are particularly important	•	No new drilling is being reported in this announcement.
between	in the reporting of Exploration Results.
mineralisation	• If the geometry of the mineralisation with
widths and	respect to the drill hole angle is known, its nature
intercept	should be reported.
lengths	• If it is not known and only the down hole
	lengths are reported, there should be a clear
	statement to this effect (e.g. ‘down hole length,
	_true width not known’). _
Diagrams	• Appropriate maps and sections (with scales)	•	Plans showing the locations of geophysical survey points and survey
	and tabulations of intercepts should be included		lines are included.
	for any significant discovery being reported These
	should include, but not be limited to a plan view of
	drill hole collar locations and appropriate
	sectional views.
Balanced	• Where comprehensive reporting of all	•	No new drilling is being reported in this announcement
reporting	Exploration Results is not practicable,
	representative reporting of both low and high
	grades and/or widths should be practiced to avoid
	misleading reporting of Exploration Results.

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Criteria	JORC Code explanation	Commentary	Commentary
Other	• Other exploration data, if meaningful and	•	No other exploration data.
substantive	material, should be reported including (but not
exploration	limited to): geological observations; geophysical
data	survey results; geochemical survey results; bulk
	samples – size and 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	•	The MLEM conductivity target has been prioritised with diamond drilling
	(e.g. tests for lateral extensions or depth		scheduled to commence in April 2023.
	extensions or large-scale step-out drilling).
	• Diagrams clearly highlighting the areas of
	possible extensions, including the main
	geological interpretations and future drilling
	areas, provided this information is not
	commercially sensitive.

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