GBM RESOURCES LIMITED. — Capital/Financing Update 2024

Jan 18, 2024

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

19 January 2024

Entitlement Offer Update

KEY POINTS

• GBM advises that is has received a firm commitment for up to ~A$1 million of any shortfall to the Entitlement Offer from Wise Walkers Limited (Wise Walkers), a Hong Kong registered investment company.

• The Company and Wise Walkers undertook due diligence regarding a potential investment in the Company which included site visits to White Dam and the Drummond Basin projects late last year. The parties intend to advance discussions regarding further potential funding interest in the Company following completion of the Entitlement Offer. If a binding agreement on any further investment is finalised, GBM will advise the market.

GBM Resources Limited (ASX: GBZ) (GBM or the Company) is pleased to provide an update of progress relating to securing additional funding to advance its significant asset base, in particular its flagship Drummond Basin gold projects which currently hold 45.6 million tonnes @ 1.26 g/t gold for 1.84 million ounces.

Wise Walkers has provided the Company with an application for up to $1 million in shortfall securities (Application), in relation to the current GBM Non-Renounceable Pro-Rata Entitlement Offer (Entitlement Offer) (refer ASX:GBZ releases 3 January 2024 and 11 January 2024). The maximum number of securities that may be issued pursuant to the Application will be 111,111,111 shares and 55,555,555 options that would amount to a maximum interest in the Company’s issued shares of up to approximately 10% on an undiluted basis. The full amount of the funds relating to the Application have been transferred to the Company’s lawyers and are being held in trust for the Company.

There is no guarantee that there will be a shortfall under the Entitlement Offer and therefore there is no guarantee that Wise Walkers will receive any Shares or Options under the Shortfall Offer.

The parties intend to advance discussions regarding further potential funding interest in the Company following completion of the Entitlement Offer.

GBM Managing Director & CEO, Peter Rohner, commented: “GBM welcomes Wise Walkers’ interest in becoming a key shareholder following site visits and discussions during the latter part of 2023 and is looking forward to future discussions.”

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Non-Renounceable Pro-Rata Entitlement Offer Details

The following timetable is indicative only and subject to change. Subject to the Listing Rules, the Directors reserve the right to vary these dates, including the Closing Date, without prior notice. Any extension of the Closing Date will have a consequential effect on the anticipated date for issue of the New Shares.

Opening Date of Offer	11 January 2024
Last day to extend Closing Date	24 January 2024
Closing Date of Offer	5pm (WST) 30 January 2024
Securities quoted on a deferred settlement basis from market open	31 January 2024
Announcement of results of issue	5 February 2024
Issue date and lodgement of Appendix 2A with ASX applying for quotation of the securities (before noon Sydney time)	5 February 2024

Further information on the Offer can be obtain by contacting the Company Secretary on +61 (0)493 239 674.

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 Newmont. 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 - 56%) 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.

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About Wise Walkers Limited

Wise Walkers Limited is an investment company registered in Hong Kong and established in 2007. Its main business activities are providing consulting and training services to enterprises, as well as corporate equity investment.

Competent Persons Statement

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

The Company confirms that the form and context in which the Competent Persons findings are presented have not been materially modified from the original market announcements.

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

Deposit		Re	Re	source Category	source Category	000' t Aug/t Au oz Total	Cut‐off
	000' t	Aug/t Au oz Measured	000' t	Aug/t Au oz Indicated	000' t Aug/t Au oz Inferred
				Koala ‐ML
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 ‐ 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	5,480 190 5,250 370	1.3 235,200 4.0 24,500 1.3 277,300 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			700 300 200	0.7 16,400 1.0 9,400 0.5 2,800	1,000 0.8 26,900 1,400 0.6 29,000 1,000 0.6 17,600	1,700 0.8 43,300 1,700 0.7 38,400 1,200 0.5 20,400	0.2 0.2 0.2
Sub Total			1,200	0.7 28,600	3,400 0.7 73,500	4,600 0.7 101,900
cut‐off grade is 0.20 g/t Au for a	ll, Vertigo is	restricted to above 150RL (~70 m		below surface)
GBM Total				1,946,100

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 Newmont and are on tenements subject to a recent farm-in agreement with Newmont (formerly 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

• 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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