GOLDARC RESOURCES LIMITED — Capital/Financing Update 2021

Jan 31, 2021

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ASX RELEASE

1 February 2021

DAMPIER COMMENCES MAJOR NEW +30,000m DRILLING PROGRAM TARGETING GROWTH AND NEW DISCOVERIES

Drilling programs underway targeting historical gold systems and 2020 exploration breakthroughs

_____________________________________________________________________________ Key Points:

• Following shareholder approval, the Company to be renamed Zuleika Gold Limited.

• The Company today commences its 2021 exploration program across key project areas on Tier 1 targets generated from successful 2020 exploration results.

• The Company’s primary objective for the 2021 program is to define new JORC Resources and extend existing commercially viable JORC Compliant Resources.

• The recent successful $6m capital raising enables the Company to execute a robust 2021 exploration program.

• Drilling is designed to follow up the strong 2020 results within priority targets at:

  • Ø Credo Well (maiden resources and new soil anomalies 2020)

  • Ø Paradigm East (significant Reverse Circulation (RC) and Aircore (AC) results 2020)

  • Ø Browns Dam (2020 discovery in Aircore results)

  • Ø Zuleika North (identified primary targets)

  • Ø Castle East and several regional targets (identified primary targets)

  • Ø Carnage Shear (under-explored on which the Company has identified drill ready targets)

• Follow up anomalous auger results from Goongarrie and Menzies with AC drilling.

Dampier Gold Limited (ASX:DAU) (Dampier or the Company) is pleased to announce the commencement of its exploration program for the 2021 field season. This is following an oversubscribed two tranche capital raising of $6 million as announced on 7[th] December 2020.

Highlights of the 2020 maiden field season have been:

• Strong RC results and maiden resource at Credo Well (ASX Ann. 2 June 2020)

• Orientation soil program identifies new anomalous zone at Credo Well (ASX Ann. 7 October 2020)

• Significant RC and AC results at Paradigm East (ASX Ann. 15 September 2020 and 28 October 2020)

• New gold zone discovered at Browns Dam (ASX Ann. 15 October 2020)

• Anomalous Gold and Nickel at Goongarrie (ASX Ann. 12 October 2020)

• Anomalous Gold Menzies (ASX Ann. 12 November 2020)

These results have confirmed the highly prospective nature of the Company’s gold project portfolio. The work was completed in a highly efficient and effective manor and the new funding will allow further systematic drilling of the known gold systems and the delineation of new systems by systematic evaluation of priority targets.

DAMPIER GOLD LIMITED (ASX:DAU) ABN 43 141 703 399 36 Prestwick Drive, Twin Waters, Queensland 4564 Phone/Fax: (07) 5457 0557 Email: admin@dampiergold.com

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An Aircore program of approximately 20,000m is planned along with Reverse Circulation drilling of approximately 10,000m as well as detailed mapping, geophysical interpretation, auger and soil sampling over the tenement portfolio with a view to identifying additional targets for drill testing. A total budget of approximately $2.8 million is anticipated for the Stage 1 phase of exploration with the aim of identifying more than one significant gold system.

Credo Gold Project

The Credo Gold Project JV with Torian Resources Limited contains several key prospects with the Credo Well and Credo Well North being the most advanced of these. JORC resources totalling 12,250 oz of Au have been calculated from an interpreted high-grade corridor along cross cutting NE trending structures, see Figures 1 and 2. This corridor returned anomalous soil results in an orientation soil survey between the known mineralised systems which demonstrated the presence of such zones with an identical north east, south west orientation, giving scope for en-echelon mineralised structures along the 3km “high grade corridor” (see ASX Ann. 7 October 2020). The Company’s target is to define resources in several of these mineralised structures with the aim to aggregate them all into a substantial commercially viable JORC Compliant Resource.

Due to the shallow cover in this particular area, the soil anomalies are to be followed up with RC drilling to test for repeat structures crossing the interpreted corridor. The gabbro host for the gold in the Credo Well area has been folded then fractured by these late north east trending structures and the brittle nature of the fracturing in the gabbro provides for excellent quartz vein development, with gold hosted mostly within the veins.

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Figure 1 Gold in soils, interpreted high grade corridor

A Maiden JORC Resource for both Credo NW and Credo Well was announced on 2 June 2020 with a total resource of over 12,000oz Au from the 2 deposits, see Table 1.

		Inferred Resources	Inferred Resources
Resource Area	Cutoff g/tAu	Tonnes	Grade g/tAu	ContainedAu Oz
Credo Well OC	0.50	24,161	5.24	4,068
Credo Well HG	5.00	3,223	6.65	689
Credo Well Total		27,776	5.33	4,757
Credo Well NW OC	0.50	54,976	3.75	6,616
Credo Well NW HG	5.00	4,159	6.63	886
Credo Well NW Total		59,135	3.95	7,502
Total Open Cut	0.50	79,137	4.20	10,684
Total High Grade	5.00	7,382	6.64	1,575
Total Resources		86,519	4.41	12,259

Upper cut off 30g/t applied

Table 1 JORC 2012 Resource Summary Credo Well JV

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Figure 2 Pit outlines and soil anomalies on the high-grade corridor

Paradigm East – Zuleika Gold Project

Paradigm East prospect is 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 AC 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 AC 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).

These results are from an east-west structural corridor that runs from Northern Star’s Paradigm mine and continues for a strike length of over 2km through the Company’s ground, see Figure 3. The gold appears to be shear and vein hosted within mafic and volcaniclastic sediments. Cross cutting NW trending zones may control mineralisation further and will be a target of further work.

It is proposed to test the entire corridor with wide spaced AC drilling as well as extending the drilling to the north in key areas. Infill drilling around anomalous zones will then define resource targets for the corridor.

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Figure 3 Paradigm East proposed follow-up Stage 1, 2021 drill lines

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Browns Dam – Zuleika Gold Project

The Browns Dam prospect is within the Zuleika Gold Project. Wide spaced drilling in 2020 was designed to test a zone of interpreted ultramafics along the Zuleika Shear, a major regional gold host. There was only minor drilling within the area previously and geophysics interpretation identified several complex structural zones and potential flexures along the main Zuleika trend.

Best intercepts within the composite sampling were 5m of 3.1 g/t Au from 38m Including 1m @ 6.60 g/t Au from 42m and 1m @ 5.23 g/t Au from 39m in DBDAC0026 and 2m of 0.85 g/t Au from 51m, included in 17m of 0.33 g/t from 40m in DBDAC0027, (ASX Ann. 15 October 2020).

Several lower-level anomalies of greater than 50ppb Au were intersected and 6 holes intersected gold above 100ppb, considered to be highly anomalous.

AC drilling infilling this wide spaced program in areas of anomalous results will further define the controls on this gold mineralisation prior to RC drilling to define the system, see Figures 4 and 5.

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Figure 4 Browns Dam Aircore drilling showing proposed Stage 1, 2021 drill lines

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Figure 5 Cross section Line 3 Browns Dam showing 2020 drilling results

Big Hand/Kurrawang – Zuleika Gold Project

Previous work on Zuleika Central has identified mineralised zones parallel to the Zuleika Shear and within the Kurrawang formation. Previous drilling has included up to 6m @ 2.4 g/t Au in ZJVRC007, 1m @ 50.4 g/t Au in ZJVRC006 and 4m @ 2.57 g/t Au in ZRB405. Follow up of these targets and testing of underexplored zones along these structures will include AC and RC drilling.

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Carnage Shear – Zuleika Gold Project

The Carnage Shear area is a major structure forming the north eastern boundary of the Kurrawang basin with the south western boundary controlled by the Zuleika Shear. The Carnage Shear and the Zuleika Shear represent the boundaries of the Kurrawong Epiclasitic Basin which is an ancient geological feature considered significant in capping hydrothermal fluids and concentrating gold mineralisation.

There are several known gold occurrences along the structure indicating it has been an active conduit for mineralising fluids. The structure has been under explored due to a combination of cover and the discovery of gold on the Zuleika Shear having been the primary focus of exploration dollars historically. Sparse AC drilling has often ended within clay zones and many holes may not have been effective tests for bedrock anomalism.

Despite this there are numerous elevated values of greater than 100ppb Au and one highly anomalous area with up to 4m @ 2 g/t Au in the north-western part of the target area. Initial drilling will be to ensure a suitable drilling method is used to reach bedrock effectively and to test some regional structures and magnetic features. Following this initial work, a more substantial program to evaluate the full potential of this area will be planned.

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Figure 6 Stage 1, 2021 drill lines along largely “untested” Carnage = 15km of strike

Goongarrie Gold Project

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Recent Auger sampling has provided encouragement for greenstone hosted gold and granite hosted gold with anomalous values from several zones at Goongarrie (ASX Ann. 12 October 2020). These highly encouraging Auger traverses in loose transported cover were on wide spacing. Ground mapping of the anomalous areas will be undertaken, together with detailed geophysical interpretation to verify targets prior to infill AC drilling.

Figure 7 Goongarrie showing anomalous gold results

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Menzies Gold Project

Recent Auger sampling provided encouragement for greenstone hosted gold and granite hosted gold with strong anomalism at Menzies (ASX Ann. 12 November 2020). These Auger traverses were on wide spacing and ground mapping of the anomalous areas will be undertaken prior to infill AC drilling.

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----- Start of picture text ----- Purple = 25ppb to 70ppbRed = 10 to 25ppbGreen = 5 to 10ppbCamp MenziesGold----- End of picture text -----

Figure 8 Menzies Project auger sample on 100k geology

Managing Director Ms Annie Guo Said:

“We are excited to commence the highly anticipated 2021 exploration program, with the primary objective to define and extend commercially viable JORC Compliant Resources and proceed rapidly to further development and to convert the Company from an explorer to a producer.

Following intensive geological field work including the extensive exploration in 2020, analysis of historical drilling, soil surveys, field mapping and target generation, the Company has developed a well-thoughtout exploration program of +30,000 metres, designed to target new discoveries within our highly prospective 230km2 of tenure, on the world class Zuleika Shear.

This announcement sets out in broad terms what the Company aims to achieve with our Stage 1 Exploration commencing today. We will continuously report the results of each campaign to shareholders.

We are confident that the Company’s ground has scope for one or more discoveries and our aim is to achieve this result in 2021 and beyond. Our geology team will focus their efforts on new discoveries in parallel with ongoing work of aggressive exploration.

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Directors are fulfilling their commitment to shareholders to explore through drilling its highly prospective tenement portfolio in the Kalgoorlie and Menzies region, with full determination to deliver value added results to our shareholders.”

Authorised for release by

Malcolm Carson CHAIRMAN`

Competent Persons Statement

Mr Malcolm Carson has compiled information in this report from information and exploration results supplied to Dampier Gold Limited. Malcolm Carson has sufficient experience that is relevant to the style of mineralisation, the types of deposits under consideration and to the activity that he is undertaking and qualifies as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves ("JORC Code"). Mr Carson is a Member of the Australian Institute of Mining and Metallurgy (AusIMM) and Australian Institute of Geoscientists (AIG) and is a Director of Dampier Gold Limited and Allegiance Coal Limited. Mr Carson consents to the inclusion in the report the matters based on the information in which it appears

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