GOLDEN STATE MINING LIMITED — Capital/Financing Update 2021

Oct 27, 2021

ASX ANNOUNCEMENT 28th October 2021 ASX Code: GSM

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Final Yule South RC Drilling Results

• Remaining RC assay results received

▪ Current Third Phase of Air-core drilling for gold and lithium is 50% complete at the Yule project

Gold and base metals exploration company Golden State Mining Limited (ASX code: “GSM” or the “Company”) is providing an update on the final results of its maiden reverse circulation (“RC”) drilling program over multiple gold target areas at Yule South in the Mallina Basin.

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Figure 1: Yule South geological plan showing significant RC drilling results

Yule South RC Drilling Program

The Yule South reverse circulation (“RC”) program consisted of 19 holes for a total advance of 3,542 metres which tested three of the four intended gold targets (refer to ASX announcement dated 18th October 2021).

Remaining assay results for Holes 21GSYSRC0016-18 (Figure 2) have been received with no significant results.

Golden State’s Managing Director, Michael Moore commented: “The follow-up testing of the initial gold targets has confirmed the presence of intrusive rocks as well as low levels of gold mineralisation. This program only tested a small portion of the ~730km[2] of tenement area that GSM has in the Mallina Basin, and these results will still assist GSM as it undertakes its third phase of reconnaissance drilling over gold and LCT pegmatite lithium targets within the Yule East tenement, as well as Yule North and South.”

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Figure 2 Target 1 East Cross Section showing significant RC results

Yule Phase 3 Air-core Program

A planned 15,000m air-core (“AC”) drill program at the Yule Project is approximately 50% complete and is expected to finish mid-November. The program is focussing on gold and lithium targets at Yule South (refer to ASX announcement dated 4th October 2021) in addition to new tenement areas at Yule North and Yule East. Yule East is of particular interest from an LCT pegmatite lithium perspective due to its proximity to a potentially ‘fertile’ granite and major structural features conducive to the development of mineralisation. Results are expected to become available early in January 2022.

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Yule Project Overview

✓ GSM’s 100% Owned Yule Project ~730km[2]

• Strategic ground position in the sought-after Archaean Mallina Basin

• Tenement package hosts intrusive bodies and major structural corridors

• Seriously underexplored

• High priority gold + lithium + base metal targets

• ✓ Large discrete intrusive targets 15kms from Hemi with similar magnetic signatures

• Target 1 East - 4m @ 2.3g/t Au incl. 1m @ 7.6g/t

• Target 2A - 800m x 1400m Arsenic Anomaly

• Alteration - Focussed Quartz-Sericite-Pyrite

• ✓ 2021 drilling programs

• ~4,000m RC gold program x 3 Targets

• ~1,500m RC lithium program x 4 Targets

• ~15,000m Air-core gold and lithium program

• ✓ Major regional structures

• Sholl Shear Zone

• Yule River Shear Zone

• ✓ The Right Rocks

• Archaean Mallina Basin

• Large granitic intrusions into volcanosedimentary sequence

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• Right environment for late discrete intrusives

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FORWARD LOOKING STATEMENTS

Damien Kelly

Michael Moore

Brenton Siggs Non-Executive Director

Greg Hancock Non-Executive Director

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REGISTERED OFFICE

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As a result of a variety of risks, uncertainties and other factors, actual events, trends and results may differ materially from any forward looking and other statements mentioned or implied herein not purporting to be of historical fact. In certain cases, forward-looking information may be identified by (without limitation) such terms as "anticipates", "believes", “should”, "could", "estimates", “target”, “likely”, “plan”, "expects", "may", “intend”, "shall", "will", or "would". Any statements concerning mining reserves, resources and exploration results may also be forward looking in that they involve estimates based on assumptions. Forward looking statements are based on management’s beliefs, opinions and estimates as of the respective dates they are made. The Company does not assume any obligation to update forward looking statements even where beliefs, opinions and estimates change or should do so given changed circumstances and developments.

COMPETENT PERSONS STATEMENT

The information in this report that relates to Gold Exploration Results, is based on information compiled by Geoff Willetts who is a Member of the Australian Institute of Geoscientists (AIG). Geoff Willetts is the Exploration Manager, a full-time employee of Golden State Mining Limited (GSM) and holds shares and options in the Company.

Level 1, Suite 15

Geoff Willetts has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity currently being undertaken 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”. Geoff Willetts consents to the inclusion in this report of the matters based on his information in the form and context in which it appears. Information on previous explorers and historical results are summarised in the Independent Geologist’s Report of the Golden State Mining Limited Prospectus dated 22 August 2018.

ABN 52 621 105 995

This release was authorised by Mr. Michael Moore, Managing Director of Golden State Mining Limited

For further information please contact:

• Mike Moore (Managing Director) on 08 6323 2384

• Greg Hancock (Non-Executive Director) on 08 6323 2384

• Email: info@gsmining.com.au

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APPENDIX 1 Yule RC Significant Drilling Results

HOLE_ID	TYPE	DEPTH	Easting (m)	Northing (m)	mRL	DIP	Azimuth	From	Interval	Au ppm
21GSYSRC0001	RC	180	635,505	7,700,254	55.687	-60	90	No significant Result
21GSYSRC0002	RC	296	635,025	7,700,256	54.846	-60	90	78	2	0.12
21GSYSRC0003	RC	216	635,465	7,700,576	55.042	-60	90	No significant Result
21GSYSRC0004	RC	198	635,384	7,700,575	55.964	-60	90	No significant Result
21GSYSRC0005	RC	276	634,982	7,700,578	54.855	-60	90	216	3	0.29
21GSYSRC0006	RC	204	634,615	7,700,576	54.81	-60	90	62	4	0.12
21GSYSRC0007	RC	66	635,386	7,700,894	55.156	-60	90	Abandoned Collar
21GSYSRC0008	RC	198	635,148	7,700,892	55.669	-60	90	No significant Result
21GSYSRC0009	RC	300	630,821	7,701,219	50.506	-60	90	No significant Result
21GSYSRC0010	RC	198	630,287	7,699,811	52.316	-60	90	No significant Result
21GSYSRC0011	RC	180	630,288	7,700,133	51.792	-60	90	71	1	0.27
21GSYSRC0012	RC	126	630,562	7,700,132	52.47	-60	90	No significant Result
21GSYSRC0013	RC	60	633,301	7,705,644	47.6	-60	90	No significant Result
21GSYSRC0013A	RC	60	633,301	7,705,641	47.6	-60	90	Abandoned Collar
21GSYSRC0014	RC	192	633,289	7,705,558	35.658	-60	90	No significant Result
21GSYSRC0015	RC	210	633,302	7,705,725	45.197	-60	90	No significant Result
21GSYSRC0016	RC	276	634,948	7,700,252	52.974	-60	90	No significant Result
21GSYSRC0017	RC	55	634,796	7,700,253	52.269	-60	90	No significant Result
21GSYSRC0018	RC	251	635,107	7,700,253	46.023	-60	90	No significant Result

• Significant Results are Gold assays > 100ppb

• An accurate dip and strike and the controls on mineralisation are only interpreted and the true width of mineralisation is unknown at this time.

• In reverse circulation (AC) drilling, composite six metre samples were collected in overlying cover, composite four metre samples were collected in bedrock and single metre or 2 metre composites at/near end of hole. One metre individual samples will be submitted for priority analysis where four metre composite assays are greater than 100ppb Au.

• All gold samples are analysed by 50g charge with ICP-OES finish (1 ppb lower detection limit) by Intertek Genalysis (Perth)

• ppm (parts per million), X = below detection limit

• Type: RC = Reverse Circulation

• Coordinates are in GDA94, MGA Z50

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JORC CODE 2012 Edition - Table 1 Report – Yule Project

SECTION 1: SAMPLING TECHNIQUES AND DATA

Criteria	JORC Code Explanation
Sampling techniques	• Nature and quality of sampling (eg 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 (eg ‘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 (eg submarine nodules) may warrant disclosure of detailed information.	• The drill sampling reported in this release has been completed reverse circulation (RC) drilling at the Yule Project, Near Port Hedland, Western Australia. The RC program consisted of 19 holes for 3,542m. Hole depth ranged from 55-300m with an average depth of 186m. Program work utilised sampling procedures and QAQC protocols in line with industry best practice. • RC samples were collected from the rig-mounted cyclone at 1m intervals in plastic bags and arranged in rows of 20-40m (20-40 samples). A combination of composite (2-6m) were then collected by PVC spear or aluminium scoop. One (1m) split samples from intervals of geological interest were also collected via the on-board rig splitter to produce a bulk 2-3kg sample. This is standard industry practice for this type of early phase drilling. • Mineralisation determined qualitatively by geological logging and quantitatively through assaying.
Drilling techniques	• Drill type (eg core, reverse circulation, open- hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg 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).	• RC drilling was completed by a Schramm T685 Truck rig Mounted on a Mercedes MAN LE-280B 8 X 8 by TopDrill Drilling (Kalgoorlie) using 5½’’ (approximately 140mm) _face sampling hammer. _
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.	• Drill samples were generally good quality, with negligible contamination and >97% dry. Diligent drilling and ROP (Rate of Penetration) provided very good sample recovery. Sample recovery data and sample condition (dry, wet, moist) was recorded at time of drilling. • Drilling with care (e.g. clearing hole at start of rod, regular cyclone cleaning) to reduce incidence of wet/moist samples. • Insufficient sample population to determine whether relationship exists between sample recovery and grade. The quality of the sample (wet, dry, low recovery) was recorded during logging.
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.	• Detailed logging of, regolith, lithology, structure, veining, alteration, mineralisation and recoveries recorded in each hole by qualified geologist. • Logging carried out by dry/wet sieving 1m sample cuttings, washing and archival samples collected in plastic chip trays forfuture reference.

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Criteria	JORC Code Explanation
	• Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography. • The total length and percentage of the relevant intersections logged.	• Every hole was logged for the entire length.
Sub-sampling techniques and sample preparation	• 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 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.	• No Core • Composite (2-6m) and 1m samples were collected by scoop or PVC spear and sampling of 1m intervals directly off rig-mounted splitter into pre-numbered calico bags. Sample weight 2 - 3 kg. Collected samples bags placed in labelled and numbered plastic and/or polyweave bags for despatch to assay laboratory. • The sample preparation of the RC samples follows industry best practice, involving oven drying and pulverising to produce a homogenous sub sample for analysis. • Field duplicate samples collected as part of QA/QC procedure which also involved the use of certified STANDARD and BLANK samples (supplied by GEOSTATS Pty Ltd, Perth). Standards and blanks were inserted (approximately every 25 samples) and were included in the laboratory analysis. Standards were certified reference material prepared by Geostats Pty Ltd. Duplicate samples were collected at intervals of interest.
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 (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.	• Samples were collected for gold analysis using by Intertek Genalysis, Perth. Following the Sample Preparation (Code SP91), samples were assayed for gold with Lab Code FA50/OE04 method. This technique involves a 50g charge for four acid digest with ICP-OES finish. This technique is an industry standard for gold and considered appropriate. • Gold intercepts calculated with primary Au gold values with Au1 repeat values excluded. Gold intercepts calculated with lower cut of .10 ppb Au, no upper cut, one composite or 1m sample interval (e.g. 1-6m) internal dilution. • Magnetic Susceptibility and conductivity measurements collected via a Terraplus KT-10 metre (SI units). • An Olympus Vanta M series portable XRF was used to record readings at selected intervals down the hole. Reading duration was set at 90 seconds and no calibration factors were applied. • Quality control process and internal laboratory checks demonstrate acceptable levels of accuracy. At the laboratory, regular assay repeats, lab standards, checks and blanks were analysed.

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Criteria	JORC Code Explanation
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.	• The results have been reviewed and verified by qualified and experienced company personnel. • No holes were twinned. • Capture of field logging is electronic using a Toughbook. Logged data is then exported as excel spreadsheets to the Company’s database manager which is then loaded to the Company’s database and validation checks completed to ensure data accuracy. Assay files (csv, pdf) are received electronically from the laboratory. • There has been no adjustment to the assay data. The primary gold (Au) field reported by the laboratory is the priority value used for plotting, interrogating, and reporting.
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.	• Drill hole positions were surveyed using a hand- held Garmin GPS64s with a horizontal (Easting/ Northing) accuracy of +-5m. Drill location is managed by the supervising geologist. • Grid System – MGA94 Zone 50. • Topographic elevation captured by using reading from Garmin handheld GPS with an accuracy of+- 5m and considered suitable for the flat terrain of the project area.
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.	• Hole spacing on selective drill lines (selective grid orientations- refer Hole Collar table) to follow up anomalous gold results from AC drilling • RC sample batch included both 1m split samples and composite samples (Range 2-6m). No assay compositing has been applied
Orientation of data in relation to geological structure	• 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 selective drill-hole orientations considered effective for follow up drilling to assess interpreted structures or targets • The orientation of structures is not known with certainty, but drilling was conducted using appropriate orientations for interpreted structures. • Bias introduced by drill orientation with respect to structures is not known.
Sample security	• The measures taken to ensure sample security.	• Samples were bagged up in labelled and numbered polyweave bags and trucked to the laboratory in Perth by a reputable freight company. Samples were then sorted and checked for inconsistencies against lodged Submission sheet by laboratory staff. • Following analysis, the sample pulps and residues are retained by the laboratory in a secure storage yard.
Audits or reviews	• The results of any audits or reviews of sampling techniques and data.	• All sampling and analytical results of the drill program were reviewed by the Exploration Manager and Managing Director. Anomalous gold intersections were checked against library

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Criteria	JORC Code Explanation
		chip trays to correlate with geology. No specific audits or reviews have been conducted.

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.	• The Yule South Project is located approximately 45km south-west of Port Hedland, Western Australia and consists of two exploration licences (E 47/3503 & E 47/3507) covering approximately 275.4 square kilometres • Tenements E47/3503 & E 47/3507 were granted on 4/12/2017. The tenement holder is Crown Mining Pty Ltd., a wholly owned subsidiary of Golden State Mining Ltd • The tenements are granted and in good standing
Exploration done by other parties	• Acknowledgment and appraisal of exploration by other parties.	• For details of relevant previous exploration completed by other parties at the Yule Project, refer to the Independent Geologists Report (‘IGR’) included in the Golden State Mining Ltd prospectus (2018).
Geology	• Deposit type, geological setting and style of mineralisation.	• As drillhole exploration on the project is in its infancy, deposit style is unknown at this stage and style of mineralisation is not well understood. Geological setting is Archaean sedimentary basin packages intruded by granitoid
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.	• See Appendix 1 for drillhole details and significant intercepts
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.	• No top-cuts have been applied when reporting results • First assay from the interval in question is reported (i.e. Au1) • No Aggregate sample assays are reported • Significant grade intervals based on intercepts > 100ppb gold • No metal equivalent values have been used for _reporting of results _

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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(e.g. ‘down hole length, true width not known’).	• Mineralisation orientations have not been determined
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 summary diagrams are included in 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 drillhole locations are reported and a table of significant intervals is provided in Appendix 1
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.	• Other exploration data considered relevant for the Yule South Project has been included in the Golden State Mining prospectus (2018)
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.	• Collection of 1m sample intervals within anomalous 4m composite samples and review of results thereafter to plan follow up exploration work.

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