LCL RESOURCES LIMITED — Capital/Financing Update 2022

Jul 6, 2022

7 July 2022 ASX Announcement ASX: LCL

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Highly Encouraging Metallurgical Results for Tesorito

HIGHLIGHTS

• First Tesorito metallurgical testwork confirms resource is amenable to a conventional grind/leach/adsorption circuit

• Gold recoveries of ~87% with typical process and performance parameters

• Early indications of process compatibility for both Miraflores and Tesorito mineralisation

Los Cerros Limited (ASX: LCL) (Los Cerros or the Company) is pleased to provide this update on the Tesorito Porphyry metallurgical test work program being conducted by Ausenco, which is nearing completion. Encouraging initial results show all mineralised units are amenable to a conventional cyanide leaching process to recover gold and silver. Tesorito is part of the Quinchia Gold Project and is a substantial contributor to the Quinchia Resource of 2.6 Moz @ 1g/t Au[1] .

Metallurgical test work results

Los Ceros is concluding the first round of Tesorito metallurgical test work as a key workstream required to feed into the Quinchia Gold Project Preliminary Economic Assessment ( PEA ). The program involves five composites representing the main mineralised domains at Tesorito. Whilst optimisation studies are expected to make improvements on the following parameters, the Company is reassured that Tesorito mineral processing performance is likely to be typical of high gold/low copper porphyry ores. These first tests suggest:

• 97% recovery of gold from saprolite and 87% from other units[2] , derived from 24 hour whole ore gold leach tests;

• an optimal grind size of p80 ~75micron which is fine grind and typical of porphyry gold ores;

• there is no appreciable benefits in including a gravity beneficiation step, allowing elimination of this process step in the tests;

• silver recoveries and commentary on potential processing pathways remain pending; and

• deleterious elements such as arsenic, mercury, organic carbon and soluble copper are all low and of no processing concern.

The conventional process flow of crush/grind, cyanide leach and carbon absorption for Tesorito mineralisation is simpler than the pathway described in the Miraflores DFS[3] which uses a similar grind size but includes both gravity and flotation stages. There is insufficient information at this stage to comment on optimising of processes across both feedstock sources and any potential configuration

1 Contains a mix of Inferred, Indicated and Measured Resources. Using Tesorito MRE of 1.3Moz @ 0.81 g/t Au. The Miraflores Reserve is included in the Miraflores Resource. Refer ASX announcement dated 14 March 2017 (Miraflores Resource) and 27 November 2017 (Miraflores Reserve) and 25 February 2020 (Dosquebradas Resource) and 22 March 2022 (Tesorito Resource). 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.

2 Unweighted, does not account for losses from soluble gold, fine carbon and other losses from the circuit.

3 First released on 27 November 2017. No material change has occurred after these dates that may affect the JORC Code (2012 Edition) reporting of results, Mineral Resource and Reserve estimations. Los Cerros confirms that in this subsequent public report that all the material assumptions underpinning the Miraflores Project, or the forecast financial information derived from the Miraflores Project, in the initial public report referred to in Listing Rules 5.16 or 5.17 (as the case may be) continue to apply and have not materially changed.

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of a combined optimised process flowsheet. However, test work conducted as part of early feasibility programs suggests Miraflores material is amenable to the Tesorito process pathway.

Los Cerros Managing Director Jason Stirbinskis added

“The Company’s current focus is on creating value through building confidence in its substantial bank of established resources at Quinchia. These encouraging met’ test results add to that confidence and are an important step to building a PEA (Preliminary Economic Assessment) around the Quinchia Gold Project’s potential production scenarios.”

Potential Production Scenarios

There are three broad production base case configurations that the Company is eager to investigate under the PEA framework.

1. Plant designed and sized based on the Miraflores Underground Reserve[3] (Table 1). Subsequent expansion or modifications in outer years to then accommodate new materials from other sites within Quinchia (including Tesorito).

CATEGORY	TONNES(Mt)	Au(g/t)	Ag (g/t)	Au(koz)	Ag (koz)	Table 1: Miraflores Reserve
Proved	1.70	2.75	2.20	150	120
Probable Total	2.62 4.32	3.64 3.29	3.13 2.77	307 457	264 385

1. Plant designed and sized on Miraflores (as above) plus a potential high grade starter pit at Tesorito (Table 2) with incorporation of additional feed in later years[4] . Note: Within the high grade starter pit shell[5] is an additional 322koz @ 0.63g/t using a 0.5g/t cut-off and resulting in a strip ratio of 1.86:1 if this material is stockpiled for later processing.

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Table 2: Potential High grade starter pit within the larger Tesorito Resource optimised pit shell

1. Plant sized and designed based on Total Quinchia Resources[5] (Table 3).

Quinchia subzone	Resource Category	CUT-OFF	TONNES(Mt)	Au(g/t)	Au(koz)
Tesorito	Inferred	0.5g/t Au	50.0	0.81	1,298
Dosquebradas	Inferred	0.5g/t Au	20.2	0.71	459
						Table 3: Quinchia Resource1
Miraflores - U.Ground	Measured + Indicated	1.2g/t Au	9.3	2.82	840
Miraflores - U.Ground	Inferred	1.2g/t Au	0.5	2.36	37
QUINCHIA RESOURCE			80.0	1.02	2,634

4 There is insufficient metallurgical testwork complete thus far to establish process compatibility of Miraflores with Tesorito mineralisation. However, test work to date suggests Miraflores material is amenable to the Tesorito process pathway.

5 First released 22 March 2022. 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 estimates continue to apply.

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7 July 2022 ASX Announcement ASX: LCL

Metallurgical test work detail

The initial test work program was carried out by Bureau Veritas laboratory – Perth under the supervision of Ausenco:

• To assess physical and metallurgical characteristics of the major lithology types in the Tesorito deposit

• To assess amenability to conventional grinding, gravity, and leach/adsorption processing routes.

Five composites totalling 197kg and representing the main mineralised domains at Tesorito were prepared using ¼ HQ and ¼ NQ diamond drill core from the recent drilling programme. Samples were composited by lithology and selected from continuous 6-12m intervals in which the average gold grade was within the range expected from a typical mine plan for this resource. Seventeen drill holes were used to provide good spatial coverage. Saprolite was selected from near surface to 20m, whilst the depths of the other samples were between 70 and 190m down hole.

The head assays of the five composite samples are summarised in Table 4. Assays for each of the samples were from stage-crushed core which was then split into representative head samples. The drill core estimate assay for each lithology was an average of the gold assays for the logged intervals from which core was selected for the test programme. Reconciliation between the measured assays and the average estimated assay is considered reasonable for this type of material and this grade range.

Element	Units	Early diorite	Intermineral diorite	Intrusive breccia	Porphyry andesite	Saprolite
Gold, Au	g/t	1.30	0.48	0.98	0.51	1.31
Silver, Ag	g/t	< 0.5	< 0.5	0.5	< 0.5	< 0.5
Copper, Cu	g/t	840	400	880	500	660
Sulphur, S2-	%	0.56	0.73	0.17	0.42	< 0.01
Drill core estimated:
Gold, Au	g/t	1.04	0.60	0.76	0.58	0.96

Table 4 Tesorito samples by lithology

Note: ‘Early Diorite’ is the causative intrusive porphyry body which is surrounded by mineralised intrusive breccia both of which are hosted in porphyry andesite country rock. The intermineral diorite is another dyke intrusive unit carrying low grade gold mineralisation.

Other elements, range over all samples:

• Arsenic is low: 10-20 g/t

• Mercury is low: < 0.04 ppm

• Organic carbon is low: < 0.02%, saprolite 0.07%

• Silica 28-30%.

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A mineralogical analysis for the nature and deportment of gold particles and identification of the major sulphide minerals and gangue components for all samples, except saprolite, is awaiting completion.

Grind Size

Leach extraction versus grind size tests were carried out from 80% passing 53µm to 125µm. Saprolite material was not tested as this is weathered and not competent compared to the harder porphyry oretypes.

The samples showed a minor to moderate increase in extraction with grinding finer than P80 90µm. From an assessment of incremental revenue from the finer grinding compared to the incremental increase in costs, a grind size of P80 75 µm was selected for the subsequent comparative tests of whole ore leaching and gravity-leaching.

Whole Ore Leach

A 24-hour kinetic leach test at the selected grind size was carried out on each of the samples. Tests were carried out in an agitated beaker at 40% w/w slurry. Conditions for each test were to maintain a minimum 500mg/L NaCN, pH 10.5, and dissolved oxygen 10-15mg/L with oxygen injection. The results are summarised in Table 5.

Sample	Head	Residue	Extraction	Reagents	Reagents
	g/t Au (calc.)	g/t Au	% Au	NaCN kg/t	CaO kg/t
Early diorite	1.15	0.12	89.4	0.71	0.23
Intermineral diorite	0.48	0.06	87.0	0.69	0.16
Intrusive breccia	0.96	0.11	88.4	1.01	0.21
Porphyry andesite	0.51	0.09	82.6	0.73	0.22
Saprolite	1.35	0.04	97.4	1.29	3.65

Table 5 Whole ore leach gold extraction, Tesorito

Leach kinetics for gold are fast for saprolite and moderately fast for other ore types, as shown in Figure 1, with 24-hour extractions of 97% and 87% (unweighted average), respectively. These values do not account for soluble gold, fine carbon and other losses from the circuit.

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Figure 1 Whole ore leach, timed extraction by ore types, Tesorito

Silver residue assays are underway but have not been completed.

Soluble copper assays showed low cyanide soluble copper 4-7% for all samples, except intrusive breccia at about 20%. The average sodium cyanide consumption, except for saprolite which is a comparatively small proportion of the resource, was 0.8 kg/t. This consumption is considered reasonable for these types of ores. Cyanide soluble copper accounted for 0.2-0.3 kg/t of that cyanide consumption. Soluble copper concentration in leach slurry for different ore types at < 50 ppm Cu is not expected to have any significant or material impact on gold and silver leach and adsorption efficiency.

Gravity – Leach

A two-stage gravity treatment at a P80 250-300 µm grind size to reflect particle size distribution in the circulating streams in the grinding circuit, followed by leaching of gravity tailings ground to P80 75 µm was carried out. The gravity concentrate was treated by intensive cyanide leach conditions; the gravity tail by the standard cyanide leach conditions used for whole ore leach. The results are summarised in Table . Leach extraction is from leach feed, that is, gravity tails.

Sample	Head	Residue	Gravity	Leach	Overall	Reagents	Reagents
	g/t Au (calc)	g/t Au-	% Au	% Au	% Au	NaCN	CaO
Early diorite	1.37	0.13	23.4	87.7	90.6	0.67	0.20
Intermineral diorite	0.53	0.06	7.7	87.0	88.0	0.66	0.17
Intrusive breccia	0.97	0.12	6.0	87.1	87.9	0.95	0.20
Porphyry andesite	0.51	0.10	6.8	79.0	80.4	0.74	0.24
Saprolite	1.35	0.04	6.0	96.8	97.0	1.15	3.16

Table 6

Gravity recovery and gold extraction from gravity tails, Tesorito

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7 July 2022

Apart from a moderate gravity response for early diorite ore type, the other samples showed no significant amenability to gravity recovery. The leach residue grades for these tests were essentially the same as those for the whole ore leach residues. The overall recovery for saprolite (97%) and the average of the other ore types (87%) were the same as the whole ore leach.

As a gravity stage offered no overall recovery benefit, no change to reagent consumption, and inclusion of this circuit would incur a higher capital cost, a conventional grind – leach – adsorption circuit was selected as the basis for future development work on the Tesorito deposit.

Further metallurgical test work will continue as the project PEA is completed, and the project further advanced, however the board is very pleased with the strength of these preliminary metallurgical results.

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

For further enquiries contact:

Jason Stirbinskis

Managing Director - Los Cerros Limited 3/35 Outram Street WEST PERTH WA 6005 jason@loscerros.com.au

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.

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.

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Mineral Resources and Reserves Statement

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QUINCHIA GOLD PROJECT - MINERAL RESOURCE ESTIMATE (MRE)
Quinchia subzone Resource Category CUT-OFF TONNES (Mt) Au (g/t) Au (koz)
Tesorito Inferred 0.5g/t Au 50.0 0.81 1,298
Dosquebradas Inferred 0.5g/t Au 20.2 0.71 459
Miraflores - U.Ground Measured + Indicated 1.2g/t Au 9.3 2.82 840
Miraflores - U.Ground Inferred 1.2g/t Au 0.5 2.36 37
QUINCHIA RESOURCE 80.0 1.02 2,634
Note: Miraflores Resource includes Miraflores Reserve
MIRAFLORES RESERVE
CATEGORY TONNES (Mt) Au (g/t) Ag (g/t) Au (koz) Ag (koz)
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
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The information in this section is drawn from the following ASX releases:

Deposit	Release Date
Miraflores Mineral Resource Estimate and explanatorynotes	14 March 2017
Miraflores Ore Reserve Estimate and explanatorynotes	17 November 2017
Dosquebradas Mineral Resource Estimate and explanatorynotes	25 February2020
Tesorito Resource Mineral Resource Estimate and explanatorynotes	22 March 2022

.

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JORC Code, 2012 Edition – Table 1 report template - Drill Results

Section 1 Sampling Techniques and Data

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

• Criteria JORC Code explanation Sampling • Nature and quality of sampling (eg cut channels, random techniques 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.

Drilling	•	Drill type (eg core, reverse circulation, open-hole hammer,
techniques		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).

Commentary

• Diamond drilling is carried out to produce HQ and NQ core.

• Following verification of the integrity of sealed core boxes and the core within them at the Company’s core shed in Quinchia, the core is ‘quick logged’ by a Project Geologist and marked for sampling. Following the marking of the cutting line and allocation of sample numbers, allowing for insertion of QAQC samples, the core is cut by employees in the Company’s facility within the core-shed.

• Nominally core is cut in half and sampled on 2m intervals, however the interval may be reduced by the Project Geologist based on the visual ‘quick log’.

• Samples are bagged in numbered calico sacks and these placed in heavy duty plastic bags with the sample tag. Groups of 5 samples are bagged in a hessian sack, labelled and sealed, for transport.

• Sample preparation is carried out by ALS’ Laboratory in Medellin where the whole sample is crushed to -2mm and then 1kg split for pulverising to - 75micron.

• Splits are then generated for fire assay (Au-AA26) and analyses for an additional 48 elements using multi-acid (four acid) digest with ICP finish (MEMS61) at ALS’ laboratory in Lima, Peru.

• Metallurgical testwork samples were based on drill core log sheets and hole interval assays, intervals were selected and ¼ core sections cut to produce bagged intervals which were labelled then transported to Bureau Veritas Laboratory in Perth, Western Australia for analyses and metallurgical testing.

• The drilling program is a diamond drilling program using HQ diameter core. In the case of operational necessity this will be reduced to NQ core. Where ground conditions permit, core orientation is conducted on a regular basis.

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Criteria JORC Code explanation Commentary
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. •The drillers are required to meet a minimum recovery rate of 95%. •On site, a Company employee is responsible for labelling (wood spacer block) the beginning and end depth of each drill run plus actual and expected recovery in meters. This and other field processes are audited on a daily basis. •On receipt the core is visually verified for inconsistencies including depth labels, degree of fracturing (core breakage versus natural), lithology 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 geology 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. • 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

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Criteria JORC Code explanation Commentary
• 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. 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 QAQC sample procedure in this phase of drilling, any special sample preparation requirements e.g. due to unexpectedly coarse gold, will be identified and addressed prior to the resource drilling phase. • For metallurgical testwork, bags of drill core samples received at the metallurgical facility are recorded and reconciled with transport dispatch records. Drill core samples are stage-crushed to minus 4 mm and split into sub-samples for head assays and mineralogy, comminution testing, metallurgical testing and reserve samples for checking and storage for future requirements as required. Coarse and pulp rejects are kept on site until authorised to dispose. • Intervals were composited according to grade and lithology protocols into bulk samples each of 35-45 kg. This weight was considered appropriate for the grades and nature of mineralisation and suitable for the types and extent of testing planned.
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 (e.g. standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision have been established. • Gold assays will be obtained using a lead collection fire assay technique (AuAA26) and analyses for an additional 48 elements obtained using multi-acid (four acid) digest with ICP finish (ME-MS61) at ALS’ laboratory in Lima, Peru. • 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

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Criteria JORC Code explanation Commentary
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. • Metallurgical test work comprised: •analytical – head assays and mineralogy •physical – Bond rod and ball will work indices, abrasion indices •metallurgical – gravity, cyanide leaching, diagnostic, settling
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 Lidar 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. • 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 representivity. 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

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Criteria JORC Code explanation Commentary
• Whether sample compositing has been applied. 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.
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. •Drill holes are oriented to determine underlying lithologies and porphyry vectors and to intercept the two principal sets 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. •All material received and logged by the metallurgical laboratory are weighed and are assigned specific and unique sample numbers. Samples are stored in an area set aside for the project.
Audits or reviews • The results of any audits or reviews of sampling techniques and data. •At this stage no audits have been undertaken.

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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 status	such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.	•The Concession Agreement grants its holders the exclusive right to explore for and exploit all mineral substances on the parcel of land covered by such concession agreement.
	• 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.	•There are no outstanding encumbrances or charges registered against the Exploration Title at the National Registry.
Exploration	• Acknowledgment and appraisal of exploration by other	•Artisanal gold production was most significant from the Miraflores mines during
done by other	parties.	the 1950s. Interest was renewed in the area in the late 1970s. In the 1980s the
parties		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
		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 to not make
		further option payments and the property reverted to AMM under the terms of
		the option agreement.
		•Seafield Resources Ltd. (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

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7 July 2022 ASX Announcement ASX: LCL
Criteria JORC Code explanation Commentary
the Miraflores property in 30 November 2012. AMM stopped the artisanal exploitation activities in the La Cruzada tunnel on the same date, and transferred control of the mine to Seafield. •From June 2010-2013, 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 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 Barroso Formation of Cretaceous age. The intrusives suite show variable 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 NA

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Criteria JORC Code explanation Commentary
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.
Data aggregation methods • In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (e.g. 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. •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. •For metallurgical composites, continuous intervals of normally 6 to 12 m in a drill hole with common dominant lithology and with a cumulative grade between the cut-off grade and approximately two times the resource average grade were selected. The common lithology samples were aggregated into a bulk lithology composite. The depth of samples was from near surface to ~200 m, expected to be within a planned open pit operation.
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’). •The results reported in this announcement are considered to be of an early stage in the exploration of the project. •Mineralisation geometry is not accurately known as the exact number, orientation and extent of mineralised structures are 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 •NA

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Criteria JORC Code explanation Commentary
plan view of drill hole collar locations and appropriate sectional views.
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 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. An induced polarisation survey (IP) completed in 2021 revealed a chargeability high between Miraflores and Tesorito.
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 mineralisation. •The objective of the drill program is to test anomalous zones, within the Marmato Fault Corridor. •The initial metallurgical test programme on samples from the Tesorito deposit is to provide preliminary characterisation with respect to metallurgical properties, an assessment of possible mineral recovery methods, and to estimate gold and silver recoveries by the proposed treatment method. •Subject to the results of the initial test programme and relevant additional geological and mineralogy information, subsequent metallurgical test programmes will develop process options, optimise parameters for design, assess variability, evaluate production performance, and carry out vendor and environmental testing.

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