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GOLDEN MILE RESOURCES LTD Capital/Financing Update 2021

Jan 11, 2021

64960_rns_2021-01-11_694b4f71-eebc-476b-b755-3020cebf4c17.pdf

Capital/Financing Update

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ASX Announcement
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Wide, high-grade gold at Golden Mile’s Benalla discovery

ASX ANNOUNCEMENT: 12 January 2021

Highlights:

  • Further multiple broad intersections of gold mineralisation identified in AC drilling at Benalla including:

ASX: G88

CORPORATE DIRECTORY Non-Executive Chairman Rhod Grivas

Managing Director James Merrillees

BTAC082 with:

  • 4m @ 3.15 g/t Au from 12m and

  • 16m @ 1.05 g/t Au including

  • 4m @ 2.93 g/t Au from 52m

BTAC120 with:

16m @ 0.81 g/t Au from 16m including

4m @ 1.56g/t Au from 20m

Non-Executive Directors Caedmon Marriott Phillip Grundy

Company Secretary Justyn Stedwell

  • The Benalla targets sit on the same structural trend as the Cardinia Mining Centre ( ASX:KIN ), and drilling encountered geology like those described at Cardinia

  • ~7km combined strike of Au mineralised trends within the Benalla tenement area

  • Builds on Phase 1 results and supports deeper follow up drilling and surface sampling planned for later in the quarter.

Commenting on the results Golden Mile’s Managing Director James Merrillees said the Company was looking forward to continuing the strong start to 2021 with drilling planned through the remainder of the quarter.

“These are exciting early-stage results at Benalla given the size, widths and tenor of the intersections and location with respect to KIN’s Cardinia Project and support deeper drilling as well as the testing of additional high potential targets.

Golden Mile Resources Ltd

Level 3/1060 Hay St, West Perth WA

6005

T: +61 8 9480 0636 E: [email protected] W: www.goldenmileresources.com

“Benalla is a highly prospective but historically underexplored part of the prolific Eastern Goldfields and we’ve barely scratched the surface on our significant land holding in a prime patch of WA gold real estate. I’m confident further drilling will build on these promising early results.

“With our modest market capitalisation, strong technical team, and a track record of spending money in the ground on our best targets, Golden Mile provides investors with exceptional leverage to further drilling success.”

Golden Mile Resources Ltd

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Golden Mile Resources (ASX:G88, “Golden Mile” or ”the Company”) is pleased to report the results from a 5,614 metre aircore drilling program recently completed at Benalla and Darlot.

Drilling tested BGT1 and BGT3, two priority geochemical and geophysical targets on the Benalla Gold Trend (BGT) in the Company’s Leonora Gold Project, and strong gold-in-soils and rock chip results at the Central Target on the Darlot Project.

LEONORA GOLD (100% G88)

Golden Mile’s Leonora Gold Project comprises a regionally significant tenement package focussed on the Ironstone Well, Monarch and Benalla Gold Projects located east of the Leonora mining centre in the prolific Eastern Goldfields of Western Australia ( Figure 1 ).

The Company’s projects are along strike from and surrounded by significant gold production, development and exploration projects including St Barbara’s Gwalia Project (ASX:SBM) and Kin Mining’s Cardinia Project (ASX:KIN).

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Figure 1: Golden Mile’s Leonora Gold Project, Western Australia.

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Benalla

The Company’s recent focus at Leonora has been the follow up of targets defined from the Company’s auger sampling and airborne geophysical programs at Benalla.

Benalla contains more than 7km strike length of high priority gold-in-auger anomalies immediately along strike from KIN Mining’s 1.15Moz Cardinia Gold Project ( refer Figure 2 and ASX:KIN announcement 22 December 2020 ).

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Figure 2: Benalla Project, 2020 phase 1 and 2 aircore drilling with NW-trending structural trends interpreted from Golden Mile’s 2020 detailed airborne magnetic survey.

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In mid-2020 the Company completed a first phase aircore drilling program at Benalla testing targets BGT2 and BGT4 with gold-in-soil results of up to 371ppb and 374ppb Au respectively.

This first phase program encountered multiple intersections of gold mineralisation across two mineralised structures including ( refer G88 ASX announcement 15 October 2020 )[1] :

BTAC026 12m at 1.03g/t Au from 40m incl. 4m at 2.52g/t Au

BTAC027 8m at 1.28g/t Au from 28m incl. 4m at 2.44g/t Au .

These targets lie along strike to the southeast of Kin Mining’s emerging East Lynne gold trend with BGT2 showing a very similar magnetic anomaly to Kin Mining’s Cardinia Hill prospect, and both targets appearing to lie on a northwest trending structure towards the Cardinia area ( refer Figure 2 and ASX:KIN, 24 August, 2 September, and 14 September 2020 ).

Second Phase drilling (BGT1 and BGT3)

A second phase 4,303m aircore drilling program at Benalla targeted BGT1 and BGT3 on 100m x 25m spacings (Figure 2).

BGT1 is the largest gold anomaly identified by the Company’s 2020 auger sampling, with results up to 387ppb Au along a 1km strike length ( refer G88 ASX announcement, 9 September 2020 )[1] .

In common with BGT2 and BGT4 both targets lie on regional structures extending into Kin Mining’s Cardinia Gold Project, and the Company’s drilling encountered similar geology to mineralised assemblages reported by KIN, including felsic and intermediate to mafic volcanic units and metasedimentary sequences.

The program intersected further multiple broad, shallow intersections of gold including ( Figure 3 and 4 ):

BTAC082 4m @ 3.15 g/t Au from 12m and 16m @ 1.05 g/t Au including 4m @ 2.93 g/t Au from 52m BTAC120 16m @ 0.81 g/t Au from 16m including

4m @ 1.56g/t Au from 20m

Drilling again intersected mineralisation in a broad northwest-southeast orientation with mineralisation associated with quartz veining and disseminated pyrite and potassic alteration associated with a felsic volcanic unit, near the contact with a surrounding andesite.

Notably several of the lines of aircore did not close off mineralisation either along line or at depth, including the highest-grade intersections at BTAC082 ( Figure 4 ) with work ongoing to understand any structural and/or lithological relationships to focus follow up drilling.

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Figure 3: Benalla Project, 2020 aircore drilling on background magnetics (BTAC026 and 027 previously reported).

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Figure 4: Section through target BGT1 with high grade intersection in hole BTAC082 open to the SW.

Further Work at Benalla

Further AC drilling is planned to extend lines where mineralisation is open (e.g. BTAC082) as well as remaining untested targets including several high priority multi element anomalies with geochemical associations analogous to Cardinia.

A systematic RC drilling program is also planned to test several of the identified mineralised structures to determine the full extent and gold grade of these structures as well as test for mineralisation underneath the shallow aircore holes drilled to date.

DARLOT GOLD (100% G88)

The Darlot Gold Project is located approximately 110km north of Leonora immediately adjacent to the Darlot Gold Mine, owned and operated by RED5 Limited (ASX:RED).

The Project is interpreted to contain strike extensions of several key structures that control gold mineralisation in the Darlot goldfield. However, despite being adjacent to a major gold mine, the tenement has seen limited modern exploration with some gold anomalism detected that has never been systematically followed-up.

The Company has identified several target areas spatially associated with the southeast strike extensions of key structures in the Darlot goldfield and proximal to known gold occurrences ( Figure 5 ):

  1. Northern Target: On the Taranaki Fault Zone (TFZ) adjacent to the historical Rosewood Bore and Gipps Hill gold mines;

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  1. Central Target: South of the TFZ and the Janine gold occurrence where RED5 have reported recent grab samples containing up to 21.9 g/t Au ( refer RED ASX announcement 11 November 2019 ). The area also contains mineralised rock chip samples with up to 8.4 g/t Au ( refer G88 ASX Announcement 25 August 2020 )[1] ;

  2. Southern Target: Located along the SE extension of the El Dorado Fault, (associated with mineralisation at Darlot) and proximal to the Amazon and Ballangarry mines.

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Figure 5: Golden Mile’s Darlot Project targets and area of Figure 6.

2020 Aircore Drilling

In late 2020 the Company drilled a 37-hole, 1,311m aircore program at Darlot targeting magnetic and gold-in-soils anomalies on the Central Target Area. These soil anomalies are associated with historic workings close to a granite-mafic contact ( refer Figure 5 and G88 ASX Announcement 25 August 2020 and 14 October 2020 )[1] .

The relatively shallow holes were drilled to blade refusal in an area of little to no cover. The anticipated geology of mafic basalt and granite lithologies was encountered along all drill lines, with several narrow, zones of gold mineralisation intersected including ( refer Figure 6 ):

DAC003 4m @ 0.18 g/t Au from 12m and 8m @ 0.59 g/t Au from 16m DAC015 3m @ 0.17 g/t Au from 28m DAC020 4m @ 0.24 g/t Au from 28m

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The intersections in hole DAC003 and DAC015, along with lower grade intercepts in surrounding holes, describe a NW trend which parallels the regionally important structural fabric (e.g. TFZ) with holes DAC015 and DAC020 ending in mineralisation within a ‘cloud’ of lower grade gold anomalism.

Further drilling is now warranted to test these structural zones and for higher-grade depth extensions of the mineralisation intersected to date. The Company is also assessing options to test the Northern and Southern targets at Darlot and will update the market in due course on further work planned.

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Figure 6: Golden Mile’s Darlot Project, Central Target. 2020 aircore drilling.

This Announcement has been approved for release by the Board of Golden Mile Resources Limited.

For further information please contact:

James Merrillees – Managing Director

Golden Mile Resources Ltd (ASX: G88)

T: (08) 9480 0636

E: [email protected]

W: www.goldenmileresources.com

Note 1: Refer ASX announcement on the said date for full details of these results. The Company confirms that it is not aware of any new information or data that materially affects the information included in the original announcements referenced in this announcement. The Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original announcements.

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About Golden Mile Resources Ltd

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Golden Mile Resources is an Australian-based exploration and development company, with an outstanding suite of gold and nickelcobalt projects in Western Australia.

The Company was formed in 2016 to carry out the acquisition, exploration, and development of mining assets in Western Australia.

The Company’s portfolio comprises a suite of gold projects predominantly within the fertile North-Eastern Goldfields of Western Australia including the Leonora Project (Benalla, Ironstone Well and Monarch), Darlot and Yuinmery Projects.

In addition, Golden Mile holds the Quicksilver nickel-cobalt project in the South West Mineral Field of Western Australia.

Forward-Looking Statements

This document may include forward-looking statements. Forward-looking statements include, but are not limited to, statements concerning Golden Mile Resources Ltd (ASX: G88) planned exploration program and other statements that are not historical facts. When used in this document, the words such as "could," "plan," "estimate," "expect," "intend," "may”, "potential," "should," and similar expressions are forward-looking statements. Although Golden Mile Resources Ltd (ASX: G88) believes that its expectations reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements.

Competent Persons Statement

The information in this report that relates to Exploration Results is based upon and fairly represents information compiled by Mr James Merrillees, a Competent Person who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Merrillees is a full-time employee of the Company.

Mr Merrillees has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Merrillees consents to the inclusion in the report of the matter 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 included in the original announcements referenced in this announcement. The Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original announcements.

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APPENDIX 1 – AIRCORE DRILL HOLE INFORMATION

TABLE 1: Aircore coordinate details. Drill hole coordinates MGA94 Zone 51 (GDA94). Collars located with handheld GPS (±5 m accuracy), EOH= end of hole depth

EOH East North RL Azimuth
Project Prospect Hole ID Dip
(m) MGA MGA MGA MGA
Benalla BGT3 BTAC061 69 367846 6811946 400 -60 225
Benalla BGT3 BTAC062 57 367864 6811964 400 -60 225
Benalla BGT3 BTAC063 66 367882 6811982 400 -60 225
Benalla BGT3 BTAC064 54 367900 6812000 400 -60 225
Benalla BGT3 BTAC065 60 367918 6812018 400 -60 225
Benalla BGT3 BTAC066 72 367936 6812036 389 -60 225
Benalla BGT3 BTAC067 77 367964 6812053 389 -60 245
Benalla BGT3 BTAC068 84 367972 6812072 389 -60 225
Benalla BGT3 BTAC069 84 367990 6812090 389 -60 225
Benalla BGT3 BTAC070 78 367916 6811876 389 -60 225
Benalla BGT3 BTAC071 81 367934 6811894 389 -60 225
Benalla BGT3 BTAC072 87 368060 6812020 389 -60 225
Benalla BGT1 BTAC073 21 369028 6810728 400 -60 225
Benalla BGT1 BTAC074 54 369046 6810746 400 -60 225
Benalla BGT1 BTAC075 21 369064 6810764 400 -60 225
Benalla BGT1 BTAC076 36 369082 6810782 400 -60 225
Benalla BGT1 BTAC077 33 369100 6810800 400 -60 225
Benalla BGT1 BTAC078 33 369118 6810818 400 -60 225
Benalla BGT1 BTAC079 35 369136 6810836 400 -60 225
Benalla BGT1 BTAC080 36 369154 6810854 400 -60 225
Benalla BGT1 BTAC081 27 369172 6810872 400 -60 225
Benalla BGT1 BTAC082 78 368958 6810798 400 -60 225
Benalla BGT1 BTAC083 72 368976 6810816 400 -60 225
Benalla BGT1 BTAC084 60 368994 6810834 400 -60 225
Benalla BGT1 BTAC085 48 369012 6810852 400 -60 225
Benalla BGT1 BTAC086 42 369030 6810870 400 -60 225
Benalla BGT1 BTAC087 32 369048 6810888 400 -60 225
Benalla BGT1 BTAC088 24 369066 6810906 400 -60 225
Benalla BGT1 BTAC089 27 369084 6810924 400 -60 225
Benalla BGT1 BTAC090 36 368888 6810868 396 -60 225
Benalla BGT1 BTAC091 59 368906 6810886 396 -60 225
Benalla BGT1 BTAC092 17 368924 6810904 396 -60 225
Benalla BGT1 BTAC093 69 368942 6810922 396 -60 225
Benalla BGT1 BTAC094 51 368960 6810940 396 -60 225
Benalla BGT1 BTAC095 30 368978 6810958 396 -60 225
Benalla BGT1 BTAC096 18 368996 6810976 396 -60 225
Benalla BGT1 BTAC097 31 369098 6810658 396 -60 225
Benalla BGT1 BTAC098 69 369116 6810676 396 -60 225
Benalla BGT1 BTAC099 66 369134 6810694 396 -60 225
Benalla BGT1 BTAC100 42 369152 6810712 396 -60 225
Benalla BGT1 BTAC101 51 369170 6810730 396 -60 225

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EOH East North RL Azimuth
Project Prospect Hole ID Dip
(m) MGA MGA MGA MGA
Benalla BGT1 BTAC102 54 369188 6810748 396 -60 225
Benalla BGT1 BTAC103 42 369206 6810766 396 -60 225
Benalla BGT1 BTAC104 36 369224 6810784 396 -60 225
Benalla BGT1 BTAC105 10 369242 6810802 396 -60 225
Benalla BGT1 BTAC106 4 369168 6810588 396 -60 225
Benalla BGT1 BTAC107 22 369222 6810642 396 -60 225
Benalla BGT1 BTAC108 15 369240 6810660 396 -60 225
Benalla BGT1 BTAC109 48 369258 6810678 396 -60 225
Benalla BGT1 BTAC110 48 369276 6810696 396 -60 225
Benalla BGT1 BTAC111 48 369294 6810714 396 -60 225
Benalla BGT1 BTAC112 51 369312 6810732 396 -60 225
Benalla BGT1 BTAC113 19 369238 6810508 396 -60 225
Benalla BGT1 BTAC114 29 369256 6810526 396 -60 225
Benalla BGT1 BTAC115 25 369274 6810544 396 -60 225
Benalla BGT1 BTAC116 3 369292 6810562 396 -60 225
Benalla BGT1 BTAC117 25 369310 6810580 396 -60 225
Benalla BGT1 BTAC118 18 369328 6810598 396 -60 225
Benalla BGT1 BTAC119 47 369346 6810616 396 -60 225
Benalla BGT1 BTAC120 34 369364 6810634 396 -60 225
Benalla BGT1 BTAC121 30 369382 6810652 396 -60 225
Benalla BGT1 BTAC122 19 369308 6810448 396 -60 225
Benalla BGT1 BTAC123 14 369326 6810466 396 -60 225
Benalla BGT1 BTAC124 19 369344 6810484 396 -60 225
Benalla BGT1 BTAC125 16 369362 6810502 396 -60 225
Benalla BGT1 BTAC126 12 369380 6810520 396 -60 225
Benalla BGT1 BTAC127 1 369398 6810538 396 -60 225
Benalla BGT1 BTAC128 12 369378 6810378 396 -60 225
Benalla BGT1 BTAC129 9 369396 6810396 396 -60 225
Benalla BGT1 BTAC130 3 369414 6810414 396 -60 225
Benalla BGT1 BTAC131 1 369417 6810432 365 -60 225
Benalla BGT1 BTAC132 1 369435 6810455 367 -60 225
Benalla BGT1 BTAC133 1 369451 6810477 365 -60 225
Benalla BGT1 BTAC134 11 369448 6810308 365 -60 225
Benalla BGT1 BTAC135 9 369466 6810326 365 -60 225
Benalla BGT1 BTAC136 11 369484 6810344 365 -60 225
Benalla BGT1 BTAC137 24 369502 6810362 365 -60 225
Benalla BGT1 BTAC138 21 369520 6810380 365 -60 225
Benalla BGT1 BTAC139 16 369538 6810398 365 -60 225
Benalla BGT1 BTAC140 15 369556 6810416 365 -60 225
Benalla BGT1 BTAC141 17 369574 6810434 365 -60 225
Benalla BGT1 BTAC142 27 369592 6810452 365 -60 225
Benalla BGT1 BTAC143 33 369518 6810238 365 -60 225
Benalla BGT1 BTAC144 36 369536 6810256 365 -60 225
Benalla BGT1 BTAC145 27 369554 6810274 365 -60 225
Benalla BGT1 BTAC146 36 369572 6810292 365 -60 225

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EOH East North RL Azimuth
Project Prospect Hole ID Dip
(m) MGA MGA MGA MGA
Benalla BGT1 BTAC147 39 369590 6810310 365 -60 225
Benalla BGT1 BTAC148 39 369608 6810328 365 -60 225
Benalla BGT1 BTAC149 23 369626 6810346 365 -60 225
Benalla BGT1 BTAC150 27 369644 6810364 365 -60 225
Benalla BGT1 BTAC151 25 369662 6810382 365 -60 225
Benalla BGT1 BTAC152 11 369588 6810168 365 -60 225
Benalla BGT1 BTAC153 19 369606 6810186 365 -60 225
Benalla BGT1 BTAC154 39 369624 6810204 365 -60 225
Benalla BGT1 BTAC155 57 369642 6810222 365 -60 225
Benalla BGT1 BTAC156 57 369660 6810240 365 -60 225
Benalla BGT1 BTAC157 57 369678 6810258 365 -60 225
Benalla BGT1 BTAC158 51 369696 6810276 365 -60 225
Benalla BGT1 BTAC159 24 369714 6810294 365 -60 225
Benalla BGT1 BTAC160 36 369732 6810312 365 -60 225
Benalla BGT3 BTAC161 81 367898 6811857 389 -60 225
Benalla BGT3 BTAC162 63 367776 6812016 389 -60 225
Benalla BGT3 BTAC163 60 367794 6812034 389 -60 225
Benalla BGT3 BTAC164 81 367812 6812052 389 -60 225
Benalla BGT3 BTAC165 61 367830 6812070 389 -60 225
Benalla BGT3 BTAC166 75 367848 6812088 389 -60 225
Benalla BGT3 BTAC167 96 367866 6812106 389 -60 225
Benalla BGT3 BTAC168 69 367884 6812124 389 -60 225
Benalla BGT3 BTAC169 63 367902 6812142 389 -60 225
Benalla BGT3 BTAC170 64 367920 6812160 389 -60 225
Darlot Central Target DAC001 36 335400 6912210 480 -60 90
Darlot Central Target DAC002 37 335425 6912210 480 -60 90
Darlot Central Target DAC003 34 335450 6912210 480 -60 90
Darlot Central Target DAC004 39 335475 6912210 480 -60 90
Darlot Central Target DAC005 45 335500 6912210 480 -60 90
Darlot Central Target DAC006 28 335525 6912210 480 -60 90
Darlot Central Target DAC007 41 335550 6912210 480 -60 90
Darlot Central Target DAC008 26 335575 6912210 480 -60 90
Darlot Central Target DAC009 31 335600 6912210 480 -60 90
Darlot Central Target DAC010 17 335625 6912210 480 -60 90
Darlot Central Target DAC011 36 335400 6912100 480 -60 90
Darlot Central Target DAC012 38 335425 6912100 480 -60 90
Darlot Central Target DAC013 35 335450 6912100 480 -60 90
Darlot Central Target DAC014 36 335475 6912100 480 -60 90
Darlot Central Target DAC015 31 335500 6912100 480 -60 90
Darlot Central Target DAC016 36 335525 6912100 480 -60 90
Darlot Central Target DAC017 38 335550 6912100 480 -60 90
Darlot Central Target DAC018 39 335575 6912100 480 -60 90
Darlot Central Target DAC019 32 335600 6912100 480 -60 90
Darlot Central Target DAC020 32 335625 6912100 480 -60 90
Darlot Central Target DAC021 33 335400 6912000 480 -60 90

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EOH East North RL Azimuth
Project Prospect Hole ID Dip
(m) MGA MGA MGA MGA
Darlot Central Target DAC022 42 335425 6912000 480 -60 90
Darlot Central Target DAC023 28 335450 6912000 480 -60 90
Darlot Central Target DAC024 27 335475 6912000 480 -60 90
Darlot Central Target DAC025 29 335500 6912000 480 -60 90
Darlot Central Target DAC026 33 335525 6912000 480 -60 90
Darlot Central Target DAC027 46 335550 6912000 480 -60 90
Darlot Central Target DAC028 33 335575 6912000 480 -60 90
Darlot Central Target DAC029 54 335600 6912000 480 -60 90
Darlot Central Target DAC030 40 335625 6912000 480 -60 90
Darlot Central Target DAC031 20 335550 6912600 480 -60 90
Darlot Central Target DAC032 36 335575 6912600 480 -60 90
Darlot Central Target DAC033 39 335600 6912600 480 -60 90
Darlot Central Target DAC034 39 335625 6912600 480 -60 90
Darlot Central Target DAC035 47 335650 6912600 480 -60 90
Darlot Central Target DAC036 39 335675 6912600 480 -60 90
Darlot Central Target DAC037 39 335700 6912600 480 -60 90

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TABLE 2: Significant drilling assay results. Intervals are calculated with a lower cut-off of 0.1 g/t Au with no internal dilution. Higher grade intervals reported >1 g/t Au. No top-cut applied. All widths quoted are downhole widths, true widths are not known at this stage. * =EOH intersection.

Hole ID Hole
**Type **
Total
Depth(m)
Depth
From(m)
Depth
To(m)
Length
(m)
Au
(g/t)
BTAC063 AC 66 32 36 4 0.16
BTAC065 AC 60 8 12 4 0.23
BTAC070 AC 78 4 8 4 0.42
BTAC074 AC 54 4 28 24 0.39
BTAC075 AC 21 0 20 20 0.42
BTAC078 AC 33 0 4 4 0.42
BTAC078 AC 33 24 28 4 0.15
BTAC078 AC 33 32 33* 1 0.34
BTAC079 AC 35 0 4 4 0.14
BTAC080 AC 36 0 4 4 0.11
BTAC082 AC 78 12 24 12 0.52
AND 28 32 4 3.15
AND 48 64 16 1.05
INCLUDING 52 56 4 2.93
BTAC083 AC 72 12 16 4 0.24
BTAC084 AC 60 44 48 4 0.10
BTAC085 AC 48 32 40 8 0.31
BTAC086 AC 42 20 24 4 0.63
AND 28 32 4 0.44
BTAC097 AC 31 4 8 4 0.15
AND 24 28 4 0.17
BTAC099 AC 66 0 4 4 0.11
AND 12 24 12 0.38
BTAC100 AC 42 12 16 4 0.39
AND 32 36 4 0.17
BTAC101 AC 51 4 8 4 0.60
BTAC102 AC 54 0 4 4 0.16
BTAC107 AC 22 16 22* 6 0.31
BTAC108 AC 15 8 12 4 0.46
BTAC112 AC 51 0 12 12 0.69
BTAC119 AC 47 24 30 6 0.12
BTAC120 AC 34 16 32 16 0.81
INCLUDING 20 24 4 1.56
BTAC121 AC 30 12 16 4 0.22
BTAC128 AC 12 8 12* 4 0.11
BTAC129 AC 9 8 9* 1 0.63
BTAC131 AC 1 0 1* 1 0.16
BTAC137 AC 24 0 4 4 0.14
BTAC138 AC 21 12 20 8 0.12
BTAC139 AC 16 8 16* 8 0.23

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Hole ID Hole
**Type **
Total
Depth(m)
Depth
From(m)
Depth
To(m)
Length
(m)
Au
(g/t)
BTAC140 AC 15 0 4 4 0.10
AND 12 15* 3 0.46
BTAC143 AC 33 8 12 4 0.12
BTAC144 AC 36 4 8 4 0.48
BTAC145 AC 27 4 8 4 0.13
BTAC155 AC 57 20 24 4 0.15
BTAC156 AC 57 20 24 4 0.10
BTAC157 AC 57 16 20 4 0.14
BTAC163 AC 60 8 12 4 0.12
BTAC164 AC 81 60 64 4 0.37
BTAC165 AC 61 0 4 4 0.14
AND 32 40 8 0.22
BTAC166 AC 75 4 12 8 0.22
AND 16 24 8 0.36
BTAC167 AC 96 8 12 4 0.14
BTAC168 AC 69 4 8 4 0.21
BTAC169 AC 63 8 12 4 0.12
DAC003 AC 34 8 12 4 0.18
AND 16 24 8 0.59
DAC015 AC 31 28 31* 3 0.17
DAC020 AC 32 28 32* 4 0.24

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Appendix 2: JORC Code, 2012 Edition – Table 1

Section 1 - Sampling Techniques and Data

Criteria **JORC Code explanation ** Commentary
Sampling
techniques

Nature and quality of sampling (e.g. cut channels, random chips, or specific
specialised industry standard measurement tools appropriate to the minerals
under investigation, such as down hole gamma sondes, or handheld XRF
instruments, etc). These examples should not be taken as limiting the broad
meaning of sampling.

Include reference to measures taken to ensure sample representivity and the
appropriate calibration of any measurement tools or systems used.

Aspects of the determination of mineralisation that are Material to the Public
Report.

In cases where ‘industry standard’ work has been done this would be relatively
simple (e.g. ‘reverse circulation drilling was used to obtain 1 m samples from
which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other
cases, more explanation may be required, such as where there is coarse gold
that has inherent sampling problems. Unusual commodities or mineralisation
types (e.g. submarine nodules) may warrant disclosure of detailed information.

Aircore drilling was used to collect individual 1 metre samples downhole

Each 1 metre sample was systematically grab sampled and composited over a 4-
metre interval to obtain approximately 1-2kg sample for analysis

Composite samples are pulverised to obtain a homogenised sample from which a
50g sample was used for gold assay

A quality control/quality assurance system comprising internal standards, and
laboratory blanks and duplicates was used to evaluate the assay process
Drilling
techniques

Drill type (e.g. core, reverse circulation, open-hole 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).

Aircore drilling, 3.5 inch

Blade bit drilled to refusal
Drill sample
recovery

Method of recording and assessing core and chip 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 and grade and whether
sample bias may have occurred due to preferential loss/gain of fine/coarse
material.

Sample recoveries assessed qualitatively, no routine weighing or other assessment

Standard drilling techniques used to maximise sample recovery

Information not available to assess the relationship between sample recovery and
grade
Logging
Whether core and chip samples have been geologically 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. _

Aircore drill holes were geologically logged on a metre basis

Aircore drilling is a first-pass test of surface geochemical anomalies and logging is
not to a level of detail sufficient to support Mineral Resource estimation or other
technical studies

Logging is qualitative in nature
Sub-sampling
techniques and

If core, whether cut or sawn and whether quarter, half or all core taken.

If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled

Industry standard sample preparation techniques were undertaken, and these are
considered appropriate for the sample type and material beingsampled.

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Criteria JORC Code explanation Commentary
sample
preparation
wet or dry.

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.

Systematic grab sampling using a scoop taking approximately 250-500g from each
individual 1 metre pile to obtain a 4-metre composite sample of approximately 1-2kg
weight

Sample size is considered appropriate to the grain size of the material being tested
Quality of
assay data and
laboratory tests

The nature, quality and appropriateness of the assaying and laboratory
procedures used and whether the technique is considered partial or total.

For geophysical tools, spectrometers, handheld XRF instruments, etc, the
parameters used in determining the analysis including instrument make and
model, reading times, calibrations factors applied and their derivation, etc.

Nature of quality control procedures adopted (e.g. standards, blanks,
duplicates, external laboratory checks) and whether acceptable levels of
accuracy (i.e. lack of bias) and precision have been established.

The nature and quality of the assay and laboratory procedures are considered
appropriate for the drilling samples

Samples were submitted to ALS in Perth for gold fire assay using method code Au-
AA24, considered to be a total technique

Standards were inserted every 1 in 20 samples

ALS complete duplicate sampling and run internal standards as part of the assay
regime; no issues with accuracy and precision have been identified
Verification of
sampling and
assaying

The verification of significant intersections by either independent or alternative
company personnel.

The use of twinned holes.

Documentation of primary data, data entry procedures, data verification, data
storage (physical and electronic) protocols.

_Discuss any adjustment to assay data. _

Documentation of sampling data was undertaken in hardcopy format prior to being
keypunched into a digital spreadsheet and subsequently entered the Company’s
digital database

No adjustments have been made to assay data
Location of
data points

Accuracy and quality of surveys used to locate drill holes (collar and down-hole
surveys), trenches, mine workings and other locations used in Mineral
Resource estimation.

Specification of the grid system used.

Quality and adequacy of topographic control.

Aircore drill collars were located using a handheld GPS with accuracy of ±3 m

No downhole survey as the holes were all shallow

The grid system used is the Geocentric Datum of Australia 1994 (GDA 94),
projected to UTM Zone 51 South

Topographic control is adequate and based on handheld GPS
Data spacing
and distribution

Data spacing for reporting of Exploration Results.

Whether the data spacing and distribution is sufficient to 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. _

Aircore drilling was completed on a nominal 100m x 25m grid

Type, spacing and distribution of drilling is not appropriate for a Mineral Resource
estimation.

Sample compositing has been applied; 4 individual metre samples were composited
together to obtain an assay sample

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Criteria JORC Code explanation Commentary
Orientation of
data in relation
to geological
structure
Sample
security
Audits or
reviews

Whether the orientation of sampling achieves unbiased sampling of possible
structures and the extent to which this is known, considering the deposit type.

If the relationship between the drilling orientation and the orientation of key
mineralised structures is considered to have introduced a sampling bias, this
should be assessed and reported if material.

The orientation of the sampling is downhole

There is no quantitative information regarding the orientation of mineralised
structures and the relationship between the drilling orientation and the orientation of
key mineralised structures is not known

No sampling bias is considered to have been introduced but there is currently
insufficient information to confirm this

The measures taken to ensure sample security.

Samples were bagged and secured by Company personnel and freighted direct to
the laboratory

The results of any audits or reviews of sampling techniques and data.

No audits of sampling techniques and data have been completed
Section 2 - Reporting of Exploration Results
Criteria JORC Code explanation Commentary
Mineral
tenement and
land tenure
status

Type, reference name/number, location and ownership including agreements
or material issues with third parties such as joint ventures, partnerships,
overriding royalties, native title interests, historical sites, wilderness or national
park and environmental settings.

The security of the tenure held at the time of reporting along with any known
impediments to obtaining a licence to operate in the area.
Benalla:

Granted exploration tenements P37/8301-04, P37/9061
Darlot

Granted exploration tenement E37/1248.

The Company has 100% ownership of the tenement, which overlays Crown Land
with active pastoral leases

The Company is in compliance with the statutory requirements and expenditure
commitments for its tenements, which are secure at the time of this announcement

There areno demonstrated oranticipatedimpediments to operatinginthe area
Exploration
done by other
parties

Acknowledgment and appraisal of exploration by other parties.
Benalla

The Benalla Gold Trend hosts a significant number of historic alluvial and elluvial
gold workings, in addition to deeper shafts and shallow open pits dating back to
prospecting and mining of high-grade gold (>5g/t Au) in the early 1900’s

Regional exploration has included airborne geophysics, geological mapping, rock
chip and soil sampling. At a prospect scale auger, a limited amount of RAB and
aircore drilling has been undertaken.
Darlot

Within the current licence area, exploration began in the early 1970’s, initially for
base metal mineralisation and subsequently re-focused toward gold mineralisation
from the mid-1980’s.

Previous explorers include Taurus Resources Limited (1987) who completed drilling
at the Rosewood Bore workings; Dominion Mining Limited (1992-95) undertook
RAB drilling and intersected mafic rocks with low level gold anomalism; Great

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Criteria JORC Code explanation Commentary
Central Mines Limited (1996-97) also completed a limited RAB drilling program;
Normandy Yandal Operations Limited (1993-2000); Homestake Gold of Australia
Limited (1999-2000) completed exploration adjacent to the project area while
operators of the Darlot mine; Barrick (Australia Pacific) Limited (1994-2011) held
the northern part of the project area and completed a systematic exploration
program that did not identify any significant mineralisation; Legendre (2010-11,
2015) completed prospecting activities including soil and rockchip sampling on gold
workings; Fortis Mining Limited/Kazakhstan Potash Limited) (2010-14) completed
surface geochemical sampling, identifying a number of gold anomalies within a
basalt-dolerite rock sequence.
Geology
Deposit type, geological setting and style of mineralisation.

Archaean greenstone gold deposits occurring as either shear-zone hosted
mineralisation or lode quartz hosted mineralisation

The Benalla Gold Trend lies in a package of Archean mafic to intermediate volcanic
stratigraphy onthewestern limb ofa broad anticlinal fold structure
Drill hole
Information

A summary of all information material to the understanding of the exploration
results including a tabulation of the following information for all Material drill
holes:

easting and northing of the drill hole collar

elevation or RL (Reduced Level – elevation above sea level in metres) of the
drill hole collar

dip and azimuth of the hole

down hole length and interception depth

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. _

A listing of the drill hole information material to the understanding of the exploration
results is provided in the body and appendices of this announcement
Data
aggregation
methods

In reporting Exploration Results, weighting averaging techniques, maximum
and/or minimum grade truncations (eg 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.

Length weighted averaging techniques have been applied to the mineralised
intersections where appropriate

Significant intersections are quoted above a cut-off grade of 0.1g/t Au

Maximum or minimum grade truncations have not been applied

No metals equivalent values have been quoted

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Criteria JORC Code explanation Commentary
Relationship
between
mineralisation
widths and
intercept
lengths

These relationships are particularly important in the reporting of Exploration
Results.

If the geometry of the mineralisation with respect to the drill hole angle is
known, its nature should be reported.

If it is not known and only the down hole lengths are reported, there should be
a clear statement to this effect (eg ‘down hole length, true width not known’).

Holes are angled and a downhole intercept length is quoted, true width is not known

The geometry of mineralisation with respect to drill hole angle is unknown at this
stage
Diagrams
Appropriate maps and sections (with scales) and tabulations of intercepts
should be 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. _

Appropriate maps and tabulations are presented in the body of the announcement
Balanced
reporting

Where comprehensive reporting of all 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.

All composite samples were assayed and comprehensive reporting of all results is
not practicable

Significant intersections are reported in the body and appendices of the
announcement

Holesnotreported donot containany significantintersections
Other
substantive
exploration data

Other exploration data, if meaningful and material, should be reported including
(but not limited to): geological observations; geophysical 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. _

Not applicable, no other material exploration data
Further work
The nature and scale of planned further work (eg tests for lateral extensions or
depth 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.

Further work is discussed in the body of the announcement

Infill and extensional drilling to test for lateral and depth extension may be
undertaken

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