GWR GROUP LIMITED — Capital/Financing Update 2021

Jul 1, 2021

2 July 2021

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ASX Announcement

C4 Iron Ore Production & Gold Spin-off Update

C4 Iron Ore Production

• A total of 116,209 wet metric tonnes (“WMT”) was exported during the month of June, the first time two shipments had been exported in the same month since the commencement of production earlier this year, representing a significant milestone for the project.

• The average realised Platts Iron Ore price received for June was US$214/t and GWR completed the financial year with shipments totalling 328,262 WMT comprised of 298,537 tonnes of high grade lump and 29,725 of fines.

• With steady state production now reached GWR is on track to export 1,000,000 tonnes by December 2021 and expects to ship at least twice per month (total ~110,000 tonnes) with a target of 5 shipments every 2 months (total ~275,000 tonnes).

• GWR confirms that it has secured its first ship for the month of July, the MV QC Matilde is due to commence loading at the Port of Geraldton between 16[th] and 20[th] July 2021.

• GWR will update the market shortly regarding its long-term infrastructure initiatives currently being assessed to significantly increase the volume of high-grade Iron ore mined and transported.

Western Gold Resources Ltd (ASX:WGR)

• GWR shareholders who are registered on the record date (9[th] July 2021) will be -

• eligible to receive part of the planned in specie distribution of 36,125,000 shares in Western Gold Resources Ltd being approximately 1 WGR share for every 8.38 GWR shares held.

• WGR has received a conditional admission letter from ASX and having successfully raised the maximum $7,000,000 at an offer price of $0.20 per share, WGR expects to list on the ASX on or around 19[th] July 2021 (subject to confirmation from ASX).

• Following a recent upgrade, the combined Wiluna West Gold Project’s JORC-2012 Mineral Resource estimate is 4,570,000 tonnes at 2.0 g/t Au for 293,000 oz Au (refer Table 2).

Figure 1: View of Stage 1 pit with dark coloured high grade ore evident in the drill cuttings

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Figure 2: ROM and product stockpiles – 2 crushing plants producing high grade lump and fines

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Figure 3: Stage 1 pit with recently cleared area for Stage 2 footprint – pit and waste dump

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GWR Group Limited (ASX:GWR) (“ GWR ” or “ the Company ”) is pleased to update shareholders regarding its flagship C4 Iron Ore deposit production acitivites and the progress of Western Gold Resources Ltd Initial Public Offer, which holds the Wiluna West Gold Project.

For the month of June, the company exported a total of 116,209 WMT tonnes to its offtake partner Hong Kong Trader, Pacific Minerals. This was the first month two shipments were loaded and exported with the average realised Platts Iron Ore price received for these shipments of US$214/t.

GWR commenced production earlier this year and completed the financial year with shipments totalling 328,262 WMT comprised of 298,537 tonnes of high grade lump and 29,725 of fines.

Following significant improvements such as additional crushing capacity and the addition of a large haulage contractor, the company is on track to export 1,000,000 tonnes by December 2021 and expects to ship at least twice per month (total ~110,000)

GWR will update the market shortly regarding a review of its long-term infrastructure options with the aim of further increasing the volume of high-grade Iron ore mined and transported.

Enabling GWR to focus on its revenue generating Iron Ore operations, the demerger of its Wiluna West Gold Project attracted considerable demand with the lead managers GTT Ventures Pty Ltd and Lazarus Corporate Finance Pty Ltd raising the maximum $7,000,000 at an offer price of $0.20 per share for the Western Gold Resources Ltd (ASX:WGR) IPO.

WGR has significant exploration upside along the relatively under-explored 22km of the Joyners Find Greenstone belt which sits adjacent to the prolific Norseman- Wiluna Greenstone belt and importantly shareholders registered on the record date will be eligible to receive part of the planned in-specie distribution of 36,125,000 shares in Western Gold.

GWR shareholders who are registered on the record date (9[th] July 2021) will be - eligible to receive part of the planned in specie distribution in Western Gold Resources Ltd being approximately 1 WGR share for every 8.38 GWR shares held.

WGR expects to list on the ASX on or around 19[th] July 2021 (subject to confirmation from ASX).

The combined Wiluna West Gold Project’s JORC-2012 Mineral Resource estimate is now 4,570,000 tonnes at 2.0 g/t Au for 293,000 oz Au (refer Table 1). This represents an increase of 403,000 tonnes on the previous estimate, which was partly reported under the JORC 2004 code (refer to ASX announcement 15th August 2019).

GWR Chairman Mr Gary Lyons commented

“With the financial year coming to a close I am very proud of the entire GWR team and our Alliance partners PRG, with the many challenges we have and continue to overcome, it was a fantastic achievement to export more than 325,000 WMT of Iron Ore mined from our flagship C4 Iron deposit.

The first month of the new financial year is shaping up to be a rewarding one for GWR shareholders, not only have we already secured our first ship for the month of July which is due to commence loading at the Port of Geraldton between 16th and 20th July 2021. In addition, GWR shareholders still have the opportunity to gain additional exposure in the Western Gold Resources Ltd (ASX:WGR) Initial Public Offer that is expected to list on the ASX on or around 19th July 2021.

It is important to note, GWR shareholders who are registered on the record date (9th - July 2021) will be eligible to receive part of the planned in specie distribution of 36,125,000 shares in Western Gold being approximately 1 WGR share for every 8.38 GWR shares held.”

This ASX announcement was authorised for release by Gary Lyons, Chairman of GWR Group Limited

For further information please contact:

Gary Lyons David Utting Mark Pitts Chairman David Utting Corporate Company Secretary Ph: +61 416187462 E: garylyons@heiniger.com.au E: david@davidutting.com E: markp@endeavourcorp.com.au

Competent Person’s Statement

Wiluna West Iron Ore Mineral Resources

The information in this report which relates to Exploration Targets, Exploration Results and Mineral Resources or Ore Reserves is based on information compiled by Mr Allen Maynard, who is a Member of the Australian Institute of Geosciences (“AIG”) a Member of the Australasian Institute of Mining and Metallurgy (AusIMM) and independent consultant to the Company. Mr Maynard is the Director and principal geologist of Al Maynard & Associates Pty Ltd and has over 40 continuous years of exploration and mining experience in a variety of mineral deposit styles. Mr Maynard has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for reporting of Exploration Results, Exploration Targets, Mineral Resources and Ore Reserves” (JORC Code). Mr Maynard consents to inclusion in the report of the matters based on this information in the form and context in which it appears.

The Mineral Resource Estimate was prepared and first disclosed under the JORC Code 2004. It has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported.

Wiluna West Gold Mineral Resources

Where the Company references Exploration Results previously released and related to the Wiluna West Gold Project it confirms that it is not aware of any new information or data that materially affects the information included in that announcement and all material assumptions and technical parameters within that announcement continue to apply and have not materially changed.

Where the Company refers to the Mineral Resource estimate recently updated and released on 12 April 2021 it confirms that it is not aware of any new information or data that materially affects the information included in that announcement and all material assumptions and technical parameters underpinning the resource estimate within that announcement continue to apply and have not materially changed.

Table 1. Wiluna West Iron Ore Project Mineral Resources by Deposit

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Note: Differences may occur due to rounding. Refer ASX Announcements 12[th] November 2019, 8[th] July 2011 and 11 April 2013.

Table 2: Wiluna West Gold Project- JORC 2012 Mineral Resource Estimate

JORC Status	Year	Prospect	Classification	Tonnes	Grade (g/t Au)	Ounces
JORC 2012 at 0.5g/t cut-off	2019	Golden Monarch	Measured	30,000	3.0	3,000
			Indicated	380,000	2.1	26,000
			Inferred	390,000	2.1	26,000
			Subtotal	800,000	2.2	55,000
		Eagle	Indicated	110,000	2.8	10,000
			Inferred	680,000	1.6	35,000
			Subtotal	790,000	1.8	45,000
		Emu	Inferred	600,000	2.2	42,000
		Joyners Find	Inferred	90,000	2.6	7,000
	2021	Bottom Camp	Inferred	640,000	1.6	33,000
		Bowerbird	Inferred	230,000	2.4	17,000
		Brilliant	Inferred	210,000	3.1	21,000
		Bronzewing	Inferred	110,000	2.7	9,000
		ComedyKing	Inferred	260,000	1.5	12,000
		Gold Hawk	Inferred	150,000	1.5	7,000
		Gold King	Inferred	580,000	1.9	36,000
		Wren	Inferred	110,000	2.4	8,000
	Total JORC 2012		Measured	30,000	3.0	3,000
			Indicated	490,000	2.3	36,000
			Inferred	4,050,000	2.0	254,000
			Combined	4,570,000	2.0	293,000