GOLDARC RESOURCES LIMITED — Capital/Financing Update 2021

Feb 9, 2021

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ASX RELEASE

10 February 2021

ZULEIKA GOLD DRILLING UPDATE

Aircore drilling at the Paradigm Corridor highlights strong potential

Key Points:

• On 1 February 2021 Aircore drilling commenced on the Paradigm East Corridor representing Stage 1 of a comprehensive program designed to follow-up and drill test targets with >30,000m of drilling.

• Zuleika’s primary objective for the 2021 program is to define new JORC Resources and follow-up 2020 results, test untested targets and define new targets on the Zuleika and Carnage Shears and Credo.

• To date Zuleika Gold has drilled 25 Aircore holes and geological logging of the drill chips from the holes along the first few traverses show positive lithologies.

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Zuleika Gold Limited (ASX:ZAG) (formerly Dampier Gold Limited) is pleased to inform the market that drilling is proceeding as planned, following some initial delays caused by heavy rain.

The drilling being undertaken is part of an aircore program of ~ 20,000m in conjunction with a reverse circulation drilling of ~ 10,000m planned for Stage 1 of the first half 2021 exploration program. Along the east west Paradigm corridor, aircore has commenced with the drilling of targets north and east of the Paradigm East prospect where high grade gold was intersected last year ( Figure 1). The drilling is designed to test for key cross structures and extensions to the gold system to the east from Paradigm East.

The Paradigm East prospect is located within the Zuleika Gold Project JV with Torian Resources Limited. The Paradigm East prospect was discovered in the 1990’s by Dominion Mining and contains some high-grade supergene zones of up to 7m @ 9.8 g/t Au including 2m @30.9 g/t Au (DQRC004) from 42 to 49m within an overall anomalous zone of 27m @2.87 g/t from 33 to 60m. Results from RC and Aircore drilling from 2020 include RC results of 4m @ 1.77 g/t from 86m in DPERC009 and a 1m @ 1.02 g/t (with a repeat gold of 7.97 g/t Au ) from 117m in DPERC005 and in Aircore 24m @ 6.4 g/t Au from 28m incl 4m @ 34.7 g/t from 32m in DPEAC0021 and 8m @ 2.2 g/t Au from 48m incl 4m @ 3.3 g/t Au from 48m in DPEAC0004 (ASX Ann. 15 September 2020).

Drilling commenced in the western end of the target with 25 holes completed for 1,426 metres . Geological logging has been encouraging with quartz veining, sericite and biotite alteration observed in drill chips, with good penetration into the bedrock being achieved.

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Figure 1 Paradigm East proposed follow-up Stage 1, 2021 drill lines

ZULEIKA GOLD LIMITED (ASX:ZAG) ABN 43 141 703 399

36 Prestwick Drive, Twin Waters, Queensland 4564 Phone/Fax: (07) 5457 0557 Email: admin@zuleikagold.com.au

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Zuleika Gold’s Managing Director Ms Annie Guo said:

“We are delighted to have commenced our 2021 drilling program as planned, delivering on our commitment to shareholders.

Whilst the program was delayed for a few days due to exceptionally heavy rains after starting on schedule, the drillers and supporting geological field crews returned quickly to site late last week when safe to do so and have since drilled 25 holes.

We await with eager anticipation for the lithological interpretation of all drilling and to the receipt of gold assay results from intersections along the Paradigm East Corridor, which has been shown to contain high grade intersections from historical drilling and drilling by Zuleika Gold in 2020.

From the high standard of technical work undertaken by Zuleika Gold’s technical team in 2020, we are confident that the Company’s tenements have the potential for one or more discoveries and our aim is to achieve this result in 2021 and beyond.”

Authorised for release by

Malcolm Carson EXECUTIVE CHAIRMAN

Competent persons statement

The information in this report that relates to the Statement of Mineral Resource Estimates exploration results has been compiled by Mr David Jenkins, a full-time employee of Terra Search Pty Ltd, geological consultants employed by Zuleika Gold Limited. Mr Jenkins is a Member of the Australian Institute of Geoscientists and has sufficient experience in the style of mineralisation and type of deposit under consideration and the activity which they are undertaking to qualify as Competent Persons as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Minerals Resources and Ore Reserves (“JORC Code”). Mr Jenkins consents to the inclusion in the report of the matters based on the information in the form and context in which it appears.

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Zuleika Gold team - Aircore drilling at Paradigm East – February 2021

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