HELIX RESOURCES LIMITED — Capital/Financing Update 2020

Aug 5, 2020

ASX Announcement 6 August 2020

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Drilling Underway at Cobar Gold Project Testing High-Grade Gold in New Target Areas

Helix Resources Limited (ASX:HLX) ( Helix or the Company ) is pleased to announce the drilling program testing for high-grade gold in new target areas has commenced at the Cobar Gold Project in Central NSW.

HIGHLIGHTS

Drilling Program

• Helix’s field team has secured entry to Central NSW, following appropriate COVID travel protocols

• A locally sourced Reverse Circulation (RC) drill rig has been contracted, mobilised and commenced drilling.

• Drill program will initially test the Amity’s Prospect, a robust 480m x 270m gold-in-soil anomaly[1] (previous rock chips up to 39.6g/t Au[1] , and individual 1m reconnaissance drilling assays returned up to 3.74g/t Au[1] )

• At the Reward Prospect, drilling will follow-up an open intercept of 20m@ 1g/t Au for 17m[1] and test an additional 300m of strike along the eastern flank of the Prospect area, under multiple historic shafts and workings.

• Battery Tank North will be drill tested, where a 370m x 280m gold & arsenic anomaly[1] returned several end of hole gold mineralised zones (up to 7m @ 1g/t Au from 25m[1] ) in broad-spaced air core drilling

• As field activities ramp-up, the drill program will test further high-grade gold targets at a host of other high-priority regional prospects across the goldfield

Commenting on the upcoming program, Helix Executive Chairman, Peter Lester, said:

“We are pleased to be commencing our gold drilling program in Central NSW. The drilling is designed to test several new high-grade gold target areas across our goldfield. This is following up targets generated from our geological and structural review earlier this year”.

“Our initial drill targets are well beyond the existing resource areas and could provide scope for progressive expansion of our 118,800oz gold inventory currently attributed to the Project”.

“The Cobar Gold Project shares many geological and structural similarities to the nearby +4M ounce Peak Gold Trend. Our drilling to date has identified strong gold mineralisation at five prospects across the goldfield, and we look forward to further drill success in the new target areas being tested.”

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

Corporate Office 78 Churchill Ave Subiaco WA 6008

helix.net.au

ABN 27 009 138 738

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Drilling Program

Government drilling approvals have now been received for all of the planned 2020 drilling at the Cobar Gold Project. A locally based drill contractor has been selected for the initial phase of drilling and has mobilised to site. Helix’s Perth and Queensland based technical team has entered the Central West region via Canberra, using appropriate COVID19 travel protocols.

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Figure 1: Initial drill-ready prospects (Red) to be tested during the first phase of the program. Drilling will commence at Amity’s followed by Reward, Battery Tank Nth, The Link and Republic, before moving to the other new prospects.

Amity’s Prospect

The drilling program will initially commence at the Amity’s Prospect where previous work by Helix identified a robust 480m x 270m gold-in-soil anomaly. This greenfield Helix discovery is associated with a subtle NNW trending topographical ridge on the western side of the goldfield.

Mapping and sampling of sub-cropping host rocks, over a 120m of strike, returned very high-grade gold assays from rock chips including 39.6g/t Au[1] and 11.0g/t Au[1] from the south-eastern end of the ridge, and 20.4g/t Au[1] and 9.6g/t Au[1] from the north western end of the ridge.

Subsequent west to east drilling under the position was undertaken, with three broad-spaced RC holes returned a maximum intercept of 8m@1.0g/t Au (incl. 1m@3.74g/t Au) from 56m in HRRC098[1] , the southern-most hole drilled. This initial reconnaissance drilling does not appear to have effectively tested the high-grade gold position.

Following a comprehensive geological review, initial drilling in this program will include new holes drilled in the opposite direction (E-W) and step-out holes along the strike of the soil anomaly to best target high grade gold structures at the prospect.

The geological age and setting for Amity’s Prospect is directly analogous to the nearby Mt Boppy Mine (Historic production of 500,000oz averaging 10g/t Au - Manuka Resources).

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Reward Prospect

The drill program at Reward will follow-up an open gold intercept of 20m@1.0g/t Au from 17m (incl. 1m@4.9g/t Au) in HRRC116[1] . This hole targeted a structural position along the eastern flank of a series of substantial historic shafts (up to 50m deep) and multiple workings.

Recent 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.

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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).

Battery Tank North

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

Other Prospects

Following the drilling of Amity’s Reward and Battery Tank North, the drilling program is planned to test numerous other drill-ready targets at Homeward Bound, Lone Hand, Girl in Blue, the Link and Republic (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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About the Cobar Gold Project

The Cobar Gold Project comprises a landholding of ~600km² within 50km of the mining hub of Cobar in central NSW. The Project encompasses the entire historic Battery Tank gold field within a prospective geological setting and hosts regionally significant structures. The geological and structural setting is analogous to the nearby multiple-mine Peak Trend (over 4 million ounce gold endowment).

Key Features

• Potential for the delineation of substantial gold deposits as evidenced from previous drilling

• Drilling to date has returned intersections including:

• 20m @ 25.5g/t Au and 39m @ 2.4g/t Au[1] – Good Friday,

• 45m @ 3.4g/t Au, and 70m @ 1.1g/t Au[1] - Boundary Prospect,

• 28m @ 2.3 g/t Au[1] - Sunrise Prospect and

• 43m @ 2.3g/t Au[1] - Battery Tank.

• All prospects remain open in several directions

• An Inferred 100,000 oz gold JORC2012 oxide gold resource – derived from these four prospects, with opportunity to significantly expand with further drilling. (refer appendix 1)

• Resource grade intersections from near surface in first-pass drilling, and high-grade rock chips at new prospects requiring immediate follow-up drilling.

• 20m at 1.1g/t Au[1] near surface and completely open at Reward Prospect;

• 17.7g/t Au[1] rock chip from historically mined lode at Lone Hand Prospect (no drilling); and

• o 2.2g/t Au[1] from grab sample of spoil at the Girl in Blue Prospect (no drilling).

• Several other historic prospects exist with shafts, pits and dry blowing activity evident across the goldfield.

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Figure 3: Regional Setting: Cobar Gold Project cover the entire Battery Tank Goldfield with a geological and structural setting analogous to the nearby multiple-mine 4 million ounce Peak Gold Trend

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Figure 4: 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 and 23 July 2020. Helix Resources is not aware of any new information or data that materially effects the information in these announcements.

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 500,000oz at 10g/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 approx 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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