HELIX RESOURCES LIMITED — Capital/Financing Update 2020

Aug 26, 2020

ASX Announcement 27 August 2020

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Cobar Gold Drilling Update

Initial 13 Holes Completed – Samples Dispatched

Helix Resources Limited (ASX:HLX) ( Helix or the Company ) is pleased to announce an exploration update for the Cobar Gold Project.

HIGHLIGHTS

Cobar Gold Project Drilling

• Helix has completed drilling and collected samples from first 13 holes over 4 prospect areas with samples dispatched for assay.

• Geological/structural observations and portable XRF (pXRF) analysis of pathfinder elements are being used to identify priority zones for sampling.

• Drilling has paused briefly pending completion of access to a number of the remaining prospects and for personnel rotation.

• Drilling will continue at Lone Hand, Girl in Blue, Reward Nth, Homeward Bound Republic East, and other additional high-priority gold targets throughout 3Q2020

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Figure 1: Initial Phase 1 drilled prospects (Blue), Remaining drill-ready prospects to be tested (Red). Drilling will recommence after track and pad clearing is completed at Lone Hand, Girl in Blue, Reward Nth, the Link, Republic East and Homeward Bound.

Corporate Office 78 Churchill Ave Subiaco WA 6008 ABN 27 009 138 738

T +61 8 9321 2644 F +61 8 9321 3909 E helix@helix.net.au

helixresources.com.au

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Helix Executive Chairman, Peter Lester, said: “Drilling of high-priority gold targets on the Cobar Gold Project is progressing well. The first priority target areas at Amity’s, Reward and Battery Tank North and the connecting zone between the Good Friday and Sunrise Deposits have been drilled so far”.

“The first batch of samples are on their way to the lab for assay. There are several other high-priority areas to test in this initial phase once the track clearing is done and we’ll continue to test regional gold targets later in this field season as they are prepared.”

“Starting with a from–surface resource base of 118,000oz (refer Appendix 1) of gold at the Project, this current work is aiming to demonstrate the potential of this emerging gold camp. Importantly, significant gold intercepts in these new areas will have the potential to incrementally grow our gold inventory, all on a project 30km from operating gold plants and with good access to infrastructure.”

Drilling Program

Helix is pleased to advise that drilling at the Cobar gold Project in NSW is progressing well with the first 13 holes completed for 1890m of this initial phase of drilling (total approximately 3,500m). Samples have been collected from the 13 holes and sample preparation and assaying is expected to commence next week.

Amity’s Prospect

This greenfield Helix discovery is associated with a subtle NNW trending topographical ridge on the western side of the goldfield. Helix identified a robust 480m x 270m gold-in-soil anomaly and collected high-grade rock chips up to 39.6g/t Au¹ from the ridge.

In this program, five holes have been drilled so far for 713m, testing approximately 180m of strike.

The geological age and setting for Amity’s Prospect is directly analogous to the nearby Mt Boppy Mine (Historic production of 417,000oz averaging 12.2g/t Au[2] ).

Reward Prospect

The drill program at Reward has followed up an open gold intercept of 20m@1.0g/t Au from 17m (incl. 1m@4.9g/t Au) in HRRC116[1] . So far, three holes have been drilled for a total of 459m.

Earlier mapping along the strike of this position has identified numerous zones of sub-cropping “chevron” folds, an important structural pathfinder also seen nearby to high-grade mineralisation at the Mt Boppy gold deposit. This target zone will be drill tested in the coming weeks, after tracks are cleared into the area.

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Figure 2: Left: Chevron folded sediments collected east of a series of substantial historic shafts at the Reward Prospect during recent mapping. Right: Chevron folds in sediments nearby to the high-grade gold lode from a cross-cut on No. 3 Level in the Mt Boppy Mine (Source: NSW Mineral Resources Publication No.18 – 1913).

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Battery Tank North

The Battery Tank North target area is approximately 250m NNE of the discovery hole at Battery Tank (43m @ 2.3g/t Au[1] ) and targeted high-grade gold structures in a 370m x 280m coincident gold and arsenic soil anomaly. Previous broad spaced air-core holes returned several >5m anomalous (>0.2g/t Au) end of hole gold results including up to 7m @1g/t Au from 25m in HRAC009[1] .

Four holes for 719m were drilled in this target area in the current program. This trend remains open in several directions and further drilling dependent on the results from the recently completed holes.

Connect Zone

A single hole for 199m was drilled into a target zone between the Sunrise and Good Friday Deposits, where strong gold and arsenic anomalism is present in soils. The 250m x 200m zone is surrounded by several shallow gold intercepts (up to 18m @ 1.7g/t Au, incl. 3m @ 5.6g/t Au from 17m in HRRC127 on Good Friday side, and 8m @ 1.2g/t Au from 44m in HRRC067 on the Sunrise side[1] ).

Two broad priority sampling positions have been identified in the hole, with the second in fresh rock from 175m downhole. Further drilling in this zone will be possible after some minor track clearing is undertaken.

Other Prospects

Helix is testing numerous other drill-ready targets. Target zones include Homeward Bound, Lone Hand, Girl in Blue, the Link and Republic East (refer Figure 1). These all have significant surface gold results, nearby old workings and are located close to intersections of important regional mineralising structures.

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Figure 3: Location Map of Helix’s quality mineral assets in the Cobar District

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This ASX release was authorised on behalf of the Helix Board by: Peter Lester, Executive Chairman

CONTACT DETAILS:

Investors Media Peter Lester Michael Vaughan Executive Chairman Fivemark Partners +61 8 9321 2644 +61 422 602 720 helix@helix.net.au michael.vaughan@fivemark.com.au

1 For full details of exploration results refer to the ASX announcements 25 Nov 2010, 22 Feb 2011, 24 May 2011, 13 July 2011, 17 Aug 2011, 4 Oct 2012, 24 Jan 2017, 26 Apr 2017, 17 Jul 2017, 23 Aug 2017, 6 November 2019, 25 May 2020, 23 July 2020 and 6 August 2020. Helix Resources is not aware of any new information or data that materially effects the information in these announcements.

2 https://www.manukaresources.com.au/site/projects/our-projects

The Information in this report that relates to Exploration Results is based on information compiled by Mr Michael Wilson, a Competent Person who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Wilson is a full-time employee and shareholder of Helix Resources Limited. Mr Wilson 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 “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Wilson consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Forward-Looking Statements

This ASX release may include forward-looking statements. These forward-looking statements are not historical facts but rather are based on Helix Resources Ltd.’s current expectations, estimates and assumptions about the industry in which Helix Resources Ltd operates, and beliefs and assumptions regarding Helix Resources Ltd.’s future performance. Words such as “anticipates”, “expects”, “intends”, “plans”, “believes”, “seeks”, “estimates”, “potential” and similar expressions are intended to identify forward-looking statements. Forward- looking statements are only predictions and are not guaranteed, and they are subject to known and unknown risks, uncertainties and assumptions, some of which are outside the control of Helix Resources Ltd. Past performance is not necessarily a guide to future performance and no representation or warranty is made as to the likelihood of achievement or reasonableness of any forward-looking statements or other forecast. Actual values, results or events may be materially different to those expressed or implied in this presentation. Given these uncertainties, recipients are cautioned not to place reliance on forward looking statements. Any forward- looking statements in this announcement speak only at the date of issue of this announcement. Subject to any continuing obligations under applicable law and the ASX Listing Rules, Helix Resources Ltd does not undertake any obligation to update or revise any information or any of the forward-looking statements in this announcement or any changes in events, conditions or circumstances on which any such forward looking statement is based.

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Appendix 1

Cobar Gold Project Context

The Cobar Gold Project is 30km east-southeast of Aurelia’s Peak Gold Operations and only 16km from the privately owned Mt Boppy Gold Mine (historic production 417,000oz at 12.2g/t average grade). The project shares similar geological and structural controls to the nearby Peak Trend deposits, being relatively short strike sediment hosted and structure related gold deposits. The Cobar Gold project resource estimate was defined below historic prospects (Sunrise, Good Friday and Battery Tank) and an internally generated greenfield discovery (Boundary).

Whilst a high-level mining study assessment is yet to be conducted, the “from surface” nature of the gold mineralisation suggests that if deposits of sufficient size are delineated they be may amenable to initial open cut mining methods. There remains significant potential for locating additional gold mineralisation throughout the broader goldfield .

The deposits were mostly delineated by Helix with RC and diamond drilling completed in drilling campaigns between 2011 and 2017.The Mineral Resource is defined by a total of 135 RC and diamond drill holes for 15,390m for a total discovery cost per ounce of approximately A$25 per oz .

The Mineral Resources have been classified as Inferred Mineral Resources in accordance with the JORC Code, 2012 Edition and are shown in Table A. This table represents the total resource from deposits and is reported using a cut-off grade of 0.4 g/t Au and a higher cut-off grade of 1.2g/t Au.

Resource interpretations and wireframes were prepared using a nominal 0.3g/t Au cut-off grade. The boundaries were generally modelled as sharp for this resource.

Table A: Cobar Gold Project 2019 Mineral Resource Estimate (0.4 g/t Au Cut-off)[ 1]

Deposit	Classification	**Type **	Million Tonnes	Aug/t	Au oz
Sunrise	Inferred	Oxide/Trans	1.58	1.1	56,400
Good Friday	Inferred	Oxide/Trans	0.45	0.9	13,700
Boundary	Inferred	Oxide/Trans	1.54	0.9	42,800
BatteryTank	Inferred	Oxide/Trans	0.18	1.0	5,900
Total			3.75	1.0	118,800

(Rounding discrepancies may occur in summary tables)

Table B: Cobar Gold Project 2019 Mineral Resource Estimate (1.2g/t Au Cut-off)[ 1]

Deposit	Classification	**Type **	Million Tonnes	Aug/t	Au oz
Sunrise	Inferred	Oxide/Trans	0.50	2.1	33,100
Good Friday	Inferred	Oxide/Trans	0.10	1.7	5,300
Boundary	Inferred	Oxide/Trans	0.22	1.8	12,900
BatteryTank	Inferred	Oxide/Trans	0.05	1.9	3,000
Total			0.87	2.0	54,300

(Rounding discrepancies may occur in summary tables)

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