LCL RESOURCES LIMITED — Capital/Financing Update 2020

Sep 9, 2020

10 September 2020 ASX Announcement ASX: LCL

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HIGHLIGHTS

Exceptional thick gold mineralisation from surface at Tesorito demonstrates large scale potential

• Exceptionally wide gold intercept returned from Los Cerros’ first diamond hole (TS-DH08) at the southern Tesorito anomaly - Colombia

• TS-DH08 returned 230m @ 1.0g/t gold from surface (uncut)[1] including[2] –

• 18m @ 2.0g/t Au from surface including 6m @ 4.1g/t Au from 6m; and

• 116m @ 1.38 g/t Au from 114m including

  • 74m @ 1.6g/t Au from 114m including 4m @ 3.18 g/t Au from 148, and 2m @ 9.58g/t Au from 176m within 6m @ 4.86 g/t Au from 174m

• Gold mineralisation exceeding 1g/t Au now demonstrated by three separate diamond holes to exceed 230m downhole thickness, over an area of 300m x 250m, and remaining open in all directions. Previously announced results include[3] –

• 384m @ 1.01g/t from 16m incl 29.3m @ 1.9g/t Au from 136.75m in TS-DH02; and

• 253.1m @ 1.01g/t Au from 2.9m incl 64m @ 1.67g/t Au from 144m in TS-DH07

• Assays support interpretation of the cap of the porphyry core at the southern anomaly starting from around 100-150m below surface

• Significant new development is the presence of primary bornite, banded veining and anomalous copper, indications of increased potential for copper mineralisation to develop at depth

• Emerging evidence of scale and continuity of both near surface high grade epithermal and deeper porphyry style mineralisation

• Current Hole TS-DH09 exploring untested northern Tesorito anomaly currently at 329m depth

• The drill rig then to be moved back to the southern anomaly to further develop epithermal and porphyry strike and depth extensions

Los Cerros Limited (ASX: LCL) (Los Cerros or the Company) , is very pleased to advise that Tesorito hole TS-DH08, the first hole of the Company’s current expanded drilling program, has delivered a promising start to the campaign. First assay results have confirmed the encouraging results of previous drill holes TS-DH02 and TS-DH07 located either side of the recently completed hole (Figures 1 and 2), and further demonstrate the potential for both deeper extensions of gold-copper porphyry and near surface high grade epithermal gold.

1 Includes values below 0.1 g/t Au intervals which occur in isolated intervals of up to 4m length. Maximum value was 9.58 g/t Au over 2m

2 Using a 0.5 g/t Au lower cut-off off and maximum 6m internal dilution for gold. All widths quoted are intercept widths, not true widths, as there is insufficient information at this stage of exploration to know the geometries within the system 3 See ASX announcements of 31 July 2018 and 30 August 2018 for the initial reporting of the assays for drill holes TS-DH01 to TS-DH07. The Company confirms that it is not aware of any new information that affects the information contained in the announcements

10 September 2020 ASX Announcement ASX: LCL

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Hole TS-DH08 (Annexure 1) entered mineralisation immediately at surface with 18m @ 2.0g/t Au including an interval of 6m @ 4.1g/t Au from 6m correlating to a mapped epithermal vein. Porphyry mineralisation with epithermal vein overprinting continued for 230m down hole before altered country rock was encountered from 277m to end of hole at 325.5m.

Of particular note, the drill hole is interpreted to have entered the cupola (porphyry cap) of the potassic core at 110m (see Photo 1) as evidenced by banded veining, UST[4] textures and the presence of primary bornite, a copper mineral classically associated with porphyry gold-copper deposits (Photo 2), all suggesting strong assay results in this zone. This was subsequently validated with intercepts of 4m @ 3.18g/t Au from 148m and 6m @ 4.8g/t Au from 174m including 2m @ 9.58g/t Au from 176m, all within 116m @ 1.38g/t Au from 114m. The potassic altered core is interpreted to be the cause of the magnetic anomaly.

Down hole thicknesses exceeding 230m of gold mineralisation of 1g/t or above, essentially from surface, have now been described in three drill holes over an area of 300m x 250m. Whilst a general NNE trend to the mineralised porphyry is likely, the 3D geometry of the porphyry system is yet to be determined. The next Tesorito drill holes (after the current TS-DH09) will focus on determining its strike, width and depth continuity.

Los Cerros’ Managing Director Jason Stirbinskis commented:

“This is a highly encouraging start to the drill campaign as it not only provides a sense of near-surface porphyry mineralised volume given similar results of nearby holes, but has also hinted to further potential at depth. Primary bornite is a copper rich mineral species, its presence, based on visual logs, correlates to elevated copper in assays and has raised the possibility of more copper occurrences as we chase depth extensions in subsequent drilling. In this regard, it is interesting to note that TS-DH02 recorded an intersection near end of hole, of 35m grading 0.19% Cu from 365.5m downhole including 0.7m at 2.63% Cu from 390.8m downhole depth[3] , some 90m deeper than the depth of TS-DH08. Similarly, we cannot rule out the presence of another porphyry pulse enriched in copper below our current drilling.

The 18m intersection grading 2.0g/t Au from surface including 6m @ 4.1g/t Au also provides encouragement to further pursue the east-west trending epithermal veins for high grade gold resources to supplement existing resources and reserves at the nearby Miraflores deposit.

The presence of banded veins, UST textures and primary bornite are typical of the core of many porphyry copper gold deposits including the multi-million ounce Nuevo Chaquiro[5] deposit located 51km to our north, where both our Senior Geologists have worked”.

Nuevo Chaquiro, held by AngloGold Ashanti, is a globally significant gold/copper porphyry hosted in the same Mid-Cauca porphyry belt as the Company’s Andes Project and the Quinchia Project of which Tesorito is a part (see AngloGold Ashanti 2019 annual report for details of the project) .

The drill rig is currently drilling hole TS-DH09 to test the northern Tesorito target located 200m north of hole TS-DH08, where a previously undrilled zone of anomalous gold and molybdenum in soils

4 Unidirectional Solidification Texture (UST) is characteristic of the cupola and represents the level of emplacement in the porphyry dyke

5 Nuevo Chaquiro has a M+Ind+Inf resource of 602Mt containing 7Moz Au grading 0.37g/t and 4.39Mt Cu grading 0.73%. Sourced from AngloGold Ashanti 2019 Annual Report, information has not been independently verified

10 September 2020 ASX Announcement ASX: LCL

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occurs concurrent with a magnetic high (refer Figure 1)[6] . The rig will then return to the southern target to further test extensions to the higher-grade porphyry core both laterally and at depth.

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Figure 1: Recently completed TS-DH08 has delivered strong results comparable to near-by holes TSDH02 and TS-DH07 and hinted at further potential at depth. Tesorito is ~1km from the Miraflores Mineral Reserve and ~0.5km from the proposed plant site described in the Miraflores DFS.

6 See ASX announcement of 8 July 2020

10 September 2020 ASX Announcement ASX: LCL

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Figure 2: Tesorito TS-DH08 simplified geological cross section showing zone of cupola over porphyry core (early porphyry diorite) which remains open at depth.

10 September 2020 ASX Announcement ASX: LCL

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Photo 1 : Drill core from TS-DH08. The mineralised rock of the cupola is typical medium-grained diorite with moderate potassic alteration and porphyry style A-type veinlets (2-10mm; 10-15/m) (thickness; density), disseminated pyrite and magnetite and overprinted epithermal style ISS veinlets (3-5mm; 3- 8/m) (see also Table 1, attached).

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Photo 2 : Close up of disseminated bornite and related pyrite and chalcopyrite in strong altered potassic diorite .

10 September 2020 ASX Announcement ASX: LCL

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About Los Cerros and the Quinchia Project

Los Cerros Limited is a gold/copper explorer with a dominant position within the Andes and Quinchia regions of the Mid-Cauca Gold belt of Colombia which hosts many major discoveries (Figure 3). The Quinchia Project hosts the Miraflores Gold Deposit with a Resource of 877,000 Au ounces at 2.80g/t Au and Reserve of 457,000 Au ounces at 3.29g/t Au[7] . Within 3km of Miraflores is the Tesorito near surface porphyry where the Company is currently drilling and the Chuscal target where a maiden drilling program was completed January 2020 and drilling is scheduled to re-commence in October 2020. There are several other targets within the region including the Dosquebradas deposit which has an Inferred Resource of 459,000 ounces grading 0.71g/t Au[8] .

Located 70km to the north of Quinchia, the Andes Project is a large, cohesive and substantially underexplored tenement package of international significance in the Mid-Cauca Gold Belt with only ~10% of the land parcel explored with modern techniques. To date over 14,000 surface and rock chip samples have been collected to define multiple vein hosted and porphyry targets including the Gibraltar porphyry copper/gold target just 22km from, and in the same porphyry belt, as AngloGold Ashanti’s Nuevo Chaquiro deposit.

7 Refer ASX announcement dated 14 March 2017 (Resource) and 27 November 2017 (Reserve). The Company confirms that it is not aware of any new information or data that materially affects the information included in the market announcements, and that all material assumptions and technical parameters underpinning the estimates continue to apply

8 Inferred Mineral Resources using 0.5g/t Au cut-off grade. See announcement 25 February 2020. The Company confirms that it is not aware of any new information or data that materially affects the information included in the market announcement and that all material assumptions and technical parameters underpinning the estimate continue to apply

10 September 2020 ASX Announcement ASX: LCL

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Figure 3: Earthquake Hypocentres & Benioff Zone Contours . Approximate dips of Benioff zone are indicated by sector. Majority of large Au-(Cu) deposits occur in relatively aseismic zones, characterized by a volcanic gap and underlain by ‘flat’ slabs. The flat slab region of the Mid Cauca also hosts major discoveries such as Nuevo Chaquiro (at Quebradona), Marmato and Buritica

For the purpose of ASX Listing Rule 15.5, the Board has authorised for this announcement to be released.

For further enquiries contact:

Jason Stirbinskis

Managing Director Los Cerros Limited 12/11 Ventnor Avenue WEST PERTH WA 6005 jason@loscerros.com.au

10 September 2020 ASX Announcement ASX: LCL

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ANNEXURE 1. Assay results TS-DH08. Coloured sections highlight results of particular interest

From(m)	To(m)	Au(g/t)	Ag (g/t)	Cu(%)	Mo(g/t)
0	2	0.29	0.61	0.01	3.73
2	4	0.68	0.43	0.04	9.61
4	6	1.35	0.43	0.05	9.45
6	8	3.34	1.58	0.03	14.75
8	10	4.14	1.25	0.03	22.8
10	12	4.94	1.32	0.03	22
12	14	1.56	0.53	0.03	11.1
14	16	1.99	0.63	0.03	17.25
16	18	0.38	0.38	0.03	10.1
18	20	0.17	0.38	0.05	3.12
20	22	0.09	0.45	0.05	4.97
22	24	0.08	0.28	0.08	2.94
24	26	0.3	0.38	0.06	8.4
26	28	0.34	0.43	0.05	4.51
28	30	0.16	0.43	0.03	1.64
30	32	0.17	0.34	0.03	0.72
32	34	0.07	0.34	0.02	0.5
34	36	0.12	0.25	0.02	0.39
36	38	0.09	0.41	0.02	0.43
38	40	0.19	0.30	0.02	0.58
40	42	0.17	0.26	0.03	10.75
42	44	0.09	0.38	0.02	11.5
44	46	0.17	0.82	0.04	15.9
46	48	0.23	0.45	0.04	25.6
48	50	0.3	0.49	0.05	17.5
50	52	0.29	0.65	0.05	16.6
52	54	0.55	0.52	0.06	24.1
54	56	0.39	0.56	0.06	62.6
56	58	0.36	0.54	0.05	56.7
58	60	0.33	0.56	0.07	46.4
60	62	0.42	0.54	0.08	48.6
62	64	0.83	0.71	0.10	48.4
64	66	0.6	0.70	0.08	37.7
66	68	0.48	1.15	0.10	59.1
68	70	1.35	1.12	0.18	48.8
70	72	0.93	1.02	0.14	22
72	74	0.4	0.97	0.07	42.3
74	76	0.32	0.64	0.04	37.8
76	78	0.61	0.99	0.11	34.5
78	80	0.57	1.11	0.04	29.8
80	82	0.32	1.76	0.06	22.7
82	84	0.27	0.88	0.08	26.7
84	86	0.5	0.68	0.08	41.2
86	88	0.39	0.69	0.08	26.9

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10 September 2020 ASX Announcement ASX: LCL

88	90	0.44	0.87	0.12	23.2
90	92	0.16	0.33	0.03	19.3
92	94	0.54	0.92	0.13	36.7
94	96	0.4	0.78	0.10	51
96	98	0.51	0.72	0.11	48.6
98	100	0.43	0.77	0.13	41.4
100	102	0.57	0.87	0.08	57.8
102	104	0.6	1.03	0.07	22
104	106	0.57	0.40	0.06	13.9
106	108	0.24	0.33	0.03	4.02
108	110	0.21	0.27	0.02	11.85
110	112	0.14	0.30	0.04	5.83
112	114	0.16	0.35	0.03	8.55
114	116	0.74	0.97	0.13	67.8
116	118	1.54	1.42	0.34	191.5
118	120	0.74	0.59	0.14	36.8
120	122	1.72	1.02	0.28	74.9
122	124	0.74	0.69	0.15	66.7
124	126	0.83	0.62	0.13	232
126	128	1.02	1.14	0.14	124.5
128	130	1.14	0.99	0.17	142.5
130	132	1.65	1.32	0.25	52.7
132	134	1.08	0.64	0.14	120.5
134	136	1.29	0.91	0.10	41.4
136	138	1.1	0.51	0.09	88.1
138	140	1.36	1.35	0.11	36.8
140	142	0.81	0.88	0.06	27.3
142	144	1.78	1.04	0.13	39
144	146	1.22	1.50	0.10	30.4
146	148	1.23	0.94	0.06	48.5
148	150	3.15	1.29	0.14	61.6
150	152	3.22	0.91	0.12	70
152	154	1.4	1.08	0.08	87.9
154	156	1.63	1.21	0.08	26.2
156	158	1.56	1.41	0.08	36.1
158	160	1.12	0.58	0.05	34.1
160	162	0.95	0.55	0.05	365
162	164	0.94	0.57	0.05	45.1
164	166	1.86	1.01	0.08	47.8
166	168	1.75	0.63	0.06	29.4
168	170	1.21	0.63	0.07	16
170	172	1.56	0.85	0.09	12.75
172	174	1.24	0.60	0.07	16.8
174	176	2.37	1.09	0.08	31.5
176	178	9.58	6.32	0.61	36.8
178	180	2.64	1.40	0.19	22.9

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10 September 2020 ASX Announcement ASX: LCL

180	182	1.21	0.85	0.11	20.3
182	184	1.24	0.92	0.12	47.8
184	186	1.39	1.62	0.10	7.34
186	188	1.11	0.91	0.09	4.72
188	190	1.13	0.64	0.10	6.62
190	192	0.84	0.57	0.07	5.16
192	194	0.75	0.51	0.05	5.82
194	196	0.93	0.52	0.05	7.41
196	198	0.9	0.60	0.06	7.3
198	200	0.73	0.46	0.04	4.72
200	202	0.7	0.42	0.02	2.81
202	204	0.8	0.61	0.04	5.65
204	206	1.3	0.75	0.06	4.39
206	208	1.88	0.73	0.07	5.14
208	210	2.01	0.71	0.08	3.48
210	212	2.23	0.87	0.09	3.31
212	214	0.79	0.60	0.04	6.93
214	216	0.33	0.28	0.02	3.67
216	218	0.34	0.35	0.03	5.24
218	220	0.45	0.55	0.04	5.15
220	222	0.96	0.97	0.07	13.85
222	224	0.7	1.23	0.06	6.73
224	226	0.65	0.56	0.04	5.62
226	228	0.43	0.78	0.05	10.45
228	230	0.39	0.94	0.06	10.7
230	232	0.17	0.35	0.02	2.54
232	234	0.1	0.16	0.01	0.25
234	236	0.09	0.17	0.01	0.3
236	238	0.11	0.11	0.01	1.39
238	240	0.14	0.10	0.01	0.57
240	242	0.07	0.17	0.01	0.29
242	244	0.01	0.04	0.00	0.36
244	246	0.01	0.06	0.01	0.53
246	248	0.02	0.12	0.01	0.48
248	250	0.02	0.08	0.00	0.14
250	252	0.03	0.08	0.00	0.16
252	254	0.02	0.11	0.00	1.06
254	256	0.03	0.13	0.00	2.1
256	258	0.02	0.12	0.02	1.38
258	260	0.01	0.06	0.00	1.37
260	262	0.01	0.05	0.00	1.16
262	264	0.01	0.05	0.00	1.42
264	266	0.01	0.08	0.00	1.18
266	268	0.01	0.06	0.00	0.95
268	270	0.01	0.07	0.00	1.2
270	272	0.01	0.10	0.00	1.17

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10 September 2020 ASX Announcement ASX: LCL

272	274	0.01	0.06	0.00	1.14
274	276	0.01	0.06	0.00	1.01
276	278	0.01	0.13	0.01	0.44
278	280	0.01	0.20	0.01	0.27
280	282	0.01	0.09	0.01	0.14
282	284	0.01	0.14	0.01	0.43
284	286	0.01	0.24	0.01	0.16
286	288	0.01	0.13	0.01	0.3
288	290	0.01	0.17	0.01	0.13
290	292	0.01	0.18	0.01	0.39
292	294	0.01	0.14	0.01	0.2
294	296	0.01	0.16	0.01	0.27
296	298	0.01	0.14	0.01	0.23
298	300	0.01	0.16	0.01	0.23
300	302	0.01	0.10	0.01	0.19
302	304	0.01	0.17	0.01	0.2
304	306	0.01	0.18	0.01	0.27
306	308	0.01	0.19	0.01	0.25
308	310	0.01	0.42	0.02	0.17
310	312	0.01	0.19	0.01	0.17
312	314	0.01	0.19	0.01	0.2
314	316	0.01	0.23	0.01	0.19
316	318	0.01	0.35	0.01	0.51
318	320	0.01	0.17	0.01	0.15
320	322	0.03	0.32	0.01	0.56
322	324	0.01	0.25	0.01	0.21
324	325.5	0.02	0.56	0.02	0.33

FORWARD LOOKING STATEMENTS This document contains forward looking statements concerning Los Cerros. Forward-looking statements are not statements of historical fact and actual events and results may differ materially from those described in the forward-looking statements as a result of a variety of risks, uncertainties and other factors. Forward-looking statements are inherently subject to business, economic, competitive, political and social uncertainties and contingencies. Many factors could cause the Company’s actual results to differ materially from those expressed or implied in any forward-looking information provided by the Company, or on behalf of the Company. Such factors include, among other things, risks relating to additional funding requirements, metal prices, exploration, development and operating risks, competition, production risks, regulatory restrictions, including environmental regulation and liability and potential title disputes. Forward looking statements in this document are based on Los Cerros’ beliefs, opinions and estimates of Los Cerros as of the dates the forward-looking statements are made, and no obligation is assumed to update forward looking statements if these beliefs, opinions and estimates should change or to reflect other future developments. Although management believes that the assumptions made by the Company and the expectations represented by such information are reasonable, there can be no assurance that the forward-looking information will prove to be accurate. Forward-looking information involves known and unknown risks, uncertainties, and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any anticipated future results, performance or achievements expressed or implied by such forward-looking information. Such factors include, among others, the actual market price of gold, the actual results of future exploration, changes in project parameters as plans continue to be evaluated, as well as those factors disclosed in the Company's publicly filed documents. Readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws. No representation, warranty or undertaking, express or implied, is given or made by the Company that the occurrence of the events expressed or implied in any forward-looking statements in this presentation will actually occur.

10 September 2020 ASX Announcement ASX: LCL

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JORC STATEMENTS - COMPETENT PERSONS STATEMENTS

The technical information related to Los Cerros assets contained in this report that relates to Exploration Results (excluding those pertaining to Mineral Resources and Reserves) is based on information compiled by Mr Cesar Garcia, who is a Member of the Australasian Institute of Mining and Metallurgy and who is a Geologist employed by Los Cerros on a full-time basis. Mr Garcia 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, Mineral Resources and Ore Reserves’. Mr Garcia consents to the inclusion in the release of the matters based on the information he has compiled in the form and context in which it appears.

The Company is not aware of any new information or data that materially affects the information included in this release.

The information presented here that relates to Mineral Resources of the Dosquebradas Project, Quinchia District, Republic of Colombia is based on and fairly represents information and supporting documentation compiled by Mr. Scott E. Wilson of Resource Development Associates Inc, of Highlands Ranch Colorado, USA. Mr Wilson takes overall responsibility for the Resource Estimate. Mr. Wilson is Member of the American Institute of Professionals Geologists, a “Recognised Professional Organisation” as defined by the Australasian Institute of Mining and Metallurgy (AusIMM). Mr Wilson is not an employee or related party of the Company. Mr. Wilson has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity he is undertaking to qualify as Competent Persons as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code 2012)’. Mr. Wilson consents to the inclusion in the news release of the information in the form and context in which it appears

The Company is not aware of any new information or data that materially affects the information included in this release.

MIRAFLORES PROJECT RESOURCES AND RESERVES

The Miraflores Project Mineral Resource estimate has been estimated by Metal Mining Consultants in accordance with the JORC Code (2012 Edition) and first publicly reported on 14 March 2017. No material changes have occurred after the reporting of these resource estimates since their first reporting.

Miraflores Mineral Resource Estimate, as at 14 March 2017 (100% basis)

Resource Classification	Tonnes (000t)	Au (g/t)	Ag (g/t)	Contained Metal (koz Au)	Contained Metal (koz Ag)
Measured	2,958	2.98	2.49	283	237
Indicated	6,311	2.74	2.90	557	588
Measured & Indicated	9,269	2.82	2.77	840	826
Inferred	487	2.36	3.64	37	57

Notes:

i) Reported at a 1.2 g/t gold cut-off. ii) Mineral Resource estimated by Metal Mining Consultants Inc. iii) First publicly released on 14 March 2017. No material change has occurred after that date that may affect the JORC Code (2012 Edition) Mineral Resource estimation.

iv) These Mineral Resources are inclusive of the Mineral Reserves listed below. v) Rounding may result in minor discrepancies.

Miraflores Mineral Reserve Estimate, as at 27 November 2017 (100% basis)

The Miraflores Project Ore Reserve estimate has been estimated by Ausenco in accordance with the JORC Code (2012 Edition) and first publicly reported on 18 October 2017 and updated on 27 November 2017. No material changes have occurred after the reporting of these reserve estimates since their reporting in November 2017.

Reserve Classification	Tonnes (Mt)	Au (g/t)	Ag (g/t)	Contained Metal (koz Au)	Contained Metal (koz Ag)
Proved	1.70	2.75	2.20	150	120
Probable	2.62	3.64	3.13	307	264
Total	4.32	3.29	2.77	457	385

Notes:

i) Rounding of numbers may result in minor computational errors, which are not deemed to be significant. ii) These Ore Reserves are included in the Mineral Resources listed in the Table above. iii) First publicly released on 27 November 2017. No material change has occurred after that date that may affect the JORC Code (2012 Edition) Ore Reserve estimation.

Source: Ausenco, 2017

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10 September 2020

ASX Announcement

ASX: LCL

Dosquebradas Inferred Mineral Resource Estimate, as at 25 February 2020 (100% basis)

Cut-Off (g/t Au)	Tonnes (‘000t)	Au (g/t)	Au (koz)	Ag (g/t)	Ag (koz)	Cu (%)	Cu (pounds)
0.3	57,794	0.50	920.8	0.6	1,036	0.04	56,767
0.4	34,593	0.60	664.1	0.6	683.8	0.05	38,428
0.5	20,206	0.71	459.1	0.7	431.7	0.06	24,867

Notes:

i) No more than 6m internal waste is included in the weighted intervals ii) Inferred Mineral Resources shown using various cut offs. iii) Based on gold selling price of US$1,470/oz. iv) Mineral Resource estimated by Resource Development Associates Inc.

First publicly released on 25 February 2020. No material change has occurred after that date that may affect the JORC Code (2012 Edition)

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JORC Code, 2012 Edition – Table 1 report template

Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections.)

Criteria	JORC Code explanation	Commentary
Sampling	• Nature and quality of sampling (eg cut channels, random	•Diamond drilling is carried out to produce HQ core.
techniques	chips, or specific specialised industry standard	•Following verification of the integrity of sealed core boxes and the core within
	measurement tools appropriate to the minerals under	them at the Company’s core shed in Quinchia, the core is ‘quick logged’ by a
	investigation, such as down hole gamma sondes, or	Project Geologist and marked for sampling. Following the marking of the cutting
	handheld XRF instruments, etc). These examples should	line and allocation of sample numbers, allowing for insertion of QA/QC
	not be taken as limiting the broad meaning of sampling.	samples, the core is cut by employees in the company’s facility within the core-
	• Include reference to measures taken to ensure sample	shed.
	representivity and the appropriate calibration of any	•Nominally core is cut in half and sampled on 2m intervals, however the interval
	measurement tools or systems used.	may be reduced by the Project Geologist based on the visual ‘quick log’.
	• Aspects of the determination of mineralisation that are	•Samples are bagged in numbered calico sacks and these placed in heavy duty
	Material to the Public Report.	plastic bags with the sample tag. Groups of 5 samples are bagged in a hessian
	• In cases where ‘industry standard’ work has been done this	sack, labelled and sealed, for transport.
	would be relatively simple (eg ‘reverse circulation drilling	•Sample preparation is carried out by ALS’ Laboratory in Medellin where the
	was used to obtain 1 m samples from which 3 kg was	whole sample is crushed to -2mm and then 1kg split for pulverising to -
	pulverised to produce a 30 g charge for fire assay’). In other	75micron.
	cases more explanation may be required, such as where	•Splits are then generated for fire assay (Au-AA26) and analyses for an
	there is coarse gold that has inherent sampling problems.	additional 48 elements using multi-acid (four acid) digest with ICP finish
	Unusual commodities or mineralisation types (eg submarine	(MEMS61) at ALS’ laboratory in Lima, Peru.
	nodules) may warrant disclosure of detailed information.
Drilling	• Drill type (eg core, reverse circulation, open-hole hammer,	•The Tesorito drilling program is a diamond drilling using HQ diameter core. In
techniques	rotary air blast, auger, Bangka, sonic, etc) and details (eg	the case of operational necessity this will be reduced to NQ core. Where ground
	core diameter, triple or standard tube, depth of diamond	conditions permit, core orientation is conducted on a regular basis.
	tails, face-sampling bit or other type, whether core is
	_oriented and ifso, by what method, etc). _
Drill sample	• Method of recording and assessing core and chip sample	•The drillers are required to meet a minimum recovery rate of 95%.
recovery	recoveries and results assessed.	•On site, a Company employee is responsible for labelling (wood spacer block)
	• Measures taken to maximise sample recovery and ensure	the beginning and end depth of each drill run plus actual and expected
	representative nature of the samples.	recovery in meters. This and other field processes are audited on a daily basis.
	• Whether a relationship exists between sample recovery and	•On receipt the core is visually verified for inconsistencies including depth
	grade and whether sample bias may have occurred due to	labels, degree of fracturing (core breakageversusnatural),lithology

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Criteria JORC Code explanation Commentary
preferential loss/gain of fine/coarse material. progression etc. If the core meets the required conditions it is cleaned, core pieces are orientated and joined, lengths and labelling are verified, and geotechnical observations made. The core box is then photographed. •Orientated sections of core are aligned, and a geologic log prepared. •Following logging, sample intervals are determined and marked up and the cutting line transferred to the core. •Core quality is, in general high and far exceeding minimum recovery conditions.
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. • Logging is carried out visually by the Project Geologists focusing on lithology, structure, alteration and mineralization characteristics. Initially a ‘quick log’ is carried out to guide sampling and this is then followed by detailed logging. The level of logging is appropriate for exploration and initial resource estimation evaluation. • All core is photographed following the initial verification on receipt of the core boxes and then again after the ‘quick log’, cutting and sampling. Ie half core. • All core is logged and sampled, nominally on 2m intervals respectively but in areas of interest more dense logging and sampling may be undertaken. • On receipt of the multi-element geochemical data this is interpreted for consistency with the geologic logging.
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. • After logging and definition of sample intervals by the geologist, the marked core is cut in half using a diamond saw in a specially designed facility on site. All core is cut and sampled. The standard sample interval is 2m but may be varied by the geologist to reflect lithology, alteration or mineralization variations. • As appropriate, all half or quarter core generated for a specific sample interval is collected and bagged. The other half of the core remains in the core box as a physical archive. • The large size (4-8kg) of individual samples and continuous sampling of the drill hole, provides representative samples for exploration activities. • Through the use of QA/QC sample procedure in this phase of drilling, any special sample preparation requirements eg due to unexpectedly coarse gold, will be identified and addressed prior to the resource drilling phase.
Quality of assay data and • The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total. • Gold assays will be obtained using a lead collection fire assay technique (AuAA26) and analyses for an additional 48 elements obtained using multi-acid (fouracid) digestwith ICP finish(ME-MS61)at ALS’ laboratoryin Lima,Peru.

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Criteria JORC Code explanation Commentary
laboratory tests • 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. • Fire assay for gold is considered a “total” assay technique. • An acid (4 acid) digest is considered a total digestion technique. However, for some resistant minerals, not considered of economic value at this time, the digestion may be partial e.g. Zr, Ti etc. • No field non-assay analysis instruments were used in the analyses reported. • Los Cerros uses certified reference material and sample blanks and field duplicates inserted into the sample sequence. • Geochemistry results are reviewed by the Company for indications of any significant analytical bias or preparation errors in the reported analyses. • Internal laboratory QAQC checks are also reported by the laboratory and are reviewed as part of the Company’s QAQC analysis. The geochemical data is only accepted where the analyses are performed within acceptable limits.
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. • All digital data received is verified and validated by the Company’s Competent Person before loading into the assay database. • Over limit gold or base metal samples are re-analysed using appropriate, alternative analytical techniques. (Au-Grav22 50g and OG46) • Reported results are compiled by the Company’s geologists and verified by the Company’s database administrator and exploration manager. • No adjustments to assay data were made.
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. • The drill hole is located using a handheld GPS and Lider DTM. This has an approximate accuracy of 3-5m considered sufficient at this stage of exploration. • On completion of the drilling program the collars of all holes will be surveyed using high precision survey equipment. • Downhole deviations of the drill hole are evaluated on a regular basis and recorded in a drill hole survey file to allow plotting in 3D. • The grid system is WGS84 UTM Z18N.
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. • The interpretation of surface mapping and sampling relies on correlating isolated points of information that are influenced by factors such as weathering, accessibility and sample representativity. This impacts on the reliability of interpretations which are strongly influenced by the experience of the geologic team. Structures, lithologic and alteration boundaries based on surficial information are interpretations based on the available data and will be refined as more data becomes available during the exploration program. • It is only with drilling, that provides information in the third dimension, that the geologic model can be refined.

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Criteria JORC Code explanation Commentary
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. •Drill hole is preferentially located in prospective area. •All drillholes are planned to best test the lithologies and structures as known taking into account that steep topography limits alternatives for locating holes. •TS-DH08 is oriented to intercept the two principal sets of porphyry set of veining.
Sample security • The measures taken to ensure sample security. •All core boxes are nailed closed and sealed at the drill platform. •On receipt at the Quinchia core shed the core boxes are examined for integrity. If there are no signs of damage or violation of the boxes, they are opened and the core is evaluated for consistency and integrity. Only then is receipt of the core formally signed off. •The core shed and all core boxes, samples and pulps are secured in a closed Company facility at Quinchia secured by armed guard on a 24/7 basis. •Each batch of samples are transferred in a locked vehicle and driven 165 km to ALS laboratories for sample preparation in Medellin. The transfer is accompanied by a company employee.
Audits or reviews • The results of any audits or reviews of sampling techniques and data. •At this stage no audits have been undertaken.

Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section.)

Criteria	JORC Code explanation	Commentary
Mineral	• Type, reference name/number, location and ownership	•The Exploration Titles were validly issued as Concession Agreements pursuant
tenement and	including agreements or material issues with third parties	to the Mining Code.
land tenure	such as joint ventures, partnerships, overriding royalties,	•The Concession Agreement grants its holders the exclusive right to explore for
status	native title interests, historical sites, wilderness or national	and exploit all mineral substances on the parcel of land covered by such
	park and environmental settings.	concession agreement.
	• The security of the tenure held at the time of reporting along	•There are no outstanding encumbrances or charges registered against the
	with any known impediments to obtaining a licence to	Exploration Title at the National Registry.
	_operate inthe area. _

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Criteria JORC Code explanation Commentary
Exploration done by other parties • Acknowledgment and appraisal of exploration by other parties. •Artisanal gold production was most significant from the Miraflores mines during the 1950s. Interest was renewed in the area in the late 1970s. In the 1980s the artisanal mining cooperative "Asociación de Mineros de Miraflores" (AMM) was formed. •In 2000, the Colombian government's geological division, INGEOMINAS, with the permission of the AMM, undertook a series of technical studies at Miraflores, which included geological mapping, geochemical and geophysical studies, and non-JORC compliant resource estimations. •In 2005, Sociedad Kedahda S.A. (Kedahda), now called AngloGold Ashanti de Colombia S.A., a subsidiary of AngloGold Ashanti Ltd., entered into an exploration agreement with the AMM, and carried out exploration including diamond drilling in 2005 to 2007 at Miraflores, completing 1,414.75m. •In 2007 Kedahda optioned the project to B2Gold Corp. (B2Gold), which carried out exploration including additional diamond drilling from 2007 to 2009. B2Gold made a NI 43-101 technical study of the Miraflores Project in 2007. •On 24 March 2009, B2Gold advised the AMM that it had decided not to make further option payments and the property reverted to AMM under the terms of the option agreement. •Seafield signed a sale-purchase contract with AMM to acquire a 100% interest in the Mining Contract on 16 April 2010. •Seafield completed the payments to acquire 100% of rights and obligations on the Miraflores property in 30 November 2012. AMM stopped the artisanal exploitation activities in the La Cruzada tunnel on the same date, 30 November 2012 and transferred control of the mine to Seafield. •Since June 2010, Seafield drilled 63 drillholes for a total of 22,259m on the Miraflores Project adjacent to Tesorito. •The initial exploration undertaken by Seafield at Tesorito in 2012 and 2013 included systematic geological mapping, rock and soil sampling, followed by trenching within the area of anomalous Au and Cu in soils. •Seafield commissioned an Induced Polarisation (IP) survey over the Tesorito Prospect in August 2012 and undertook a three-hole diamond drilling program for a total of 1,150.5m in 2013.
Geology • Deposit type, geological setting and style of mineralisation. •The Tesorito area is underlain mainly by fine to coarse grained, intrusive porphyritic rocks of granodioritic to dioritic composition, which intrude an andesite porphyry body of the Miocene Combia formation, Tertiary sandstones and mudstones of the Amaga Formation, as well as basaltic rocks of the BarrosoFormationofCretaceous age. Theintrusives suite show variable

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Criteria JORC Code explanation Commentary
intensities of hydrothermal alteration, including potassic alteration overprinted by quartz-sericite and sericite-chlorite alteration. NNE to EW faulting controls the intrusive emplacement and mineralization, including faulting of contacts between the rock units. The depth of sulphide oxidation observed in the drill holes is approximately 20m. •Gold, copper and molybdenite observed in the intrusive rocks is typical of Au- Cu-Mo rich porphyry deposit; mineralisation occurs as sulphides and magnetite in disseminations as well as in veinlets and stockworks of quartz. Pyrite, chalcopyrite and molybdenite have been recognised.
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: o easting and northing of the drill hole collar o elevation or RL (Reduced Level – elevation above sea level in metres) of the drill hole collar o dip and azimuth of the hole o down hole length and interception depth o 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. •This declaration covers the start of the current drill program at Tesorito. HOLE EASTING NORTHING RL(m) AZIMUTH DIP EOH(m) TS-DH08 423852.3 584490.7 1229 230 60 325.5 •
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 metal equivalent values have been stated. •Quoted intervals use a weighted average compositing method of all assays within the interval. Uncut intervals include: values below 0.1 g/t Au which occur in isolated intervals of up to 4m length; and a maximum value of 9.58 g/t Au over 2m. •Other intervals use a 0.5 g/t Au lower cut-off and maximum 6m internal dilution for gold. •No cut of high grades has been done. •All widths quoted are intercept widths, not true widths, as there is insufficient information at this stage of exploration to know the geometries within the system.
Relationship between • These relationships are particularly important in the reporting of Exploration Results. •The results reported in this announcement are considered to be of an early stageinthe explorationofthe project.

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Criteria JORC Code explanation Commentary
mineralisation widths and intercept lengths • 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’). •Mineralisation geometry is not accurately known as orientation and extent of mineralised structures are	the exact number, not yet 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. •Geological map showing the location of TS-DH08 and exploration results including drilling over the Tesorito Prospect is shown 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. •Reporting is considered balanced.
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. •A ground magnetic survey that covered the Chuscal and Tesorito Prospects was performed in 2019 and presented two magnetic high anomalies that are spatially related to the soil gold and molybdenum anomalies. The magnetic high anomalies appear associated with the presence of potassic alteration and quartz-magnetite veining and stockworks.
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. •Additional drilling is required to systematically test the nature and extent of both the higher-grade mineralization that appears to be associated with EW trending sheeted veins, as well as the broader intercepts of NNE-trending moderate-grades related to the porphyry-style mineralization. •The objective of the proposed program is to test continuity of wide high grade intersections in holes TS-DH02 and TS-DH07 to potentially guide resource targeted drilling in a second phase drilling program, and to test the northern gold-molybdenum soil geochemistry anomaly.