LEFROY EXPLORATION LIMITED — Capital/Financing Update 2019

Nov 28, 2019

ASX RELEASE-29 November 2019

Maiden Drilling Program Intersects Gold at Hang Glider Hill

• An early stage three-hole diamond drilling program completed at the Hang Glider Hill gold prospect has intersected visible gold in the first hole 19HGDD001

• Significant shallow gold intersections in hole 19HGDD001 include:

• 6.8m @ 1.86g/t Au from 53.7m

incl. 1.05m @ 7.42g/t Au

• 7.68m @ 0.66g/t Au from 44m

• The gold mineralisation is hosted by quartz-carbonate veins that cross cut a highly deformed, flat dipping, north-westerly trending package of highly altered rocks interpreted to be proximal to the Mount Monger Fault

• The Mt Monger Fault is a regional scale fault that appears to be a major influence on gold mineralisation at Hang Glider Hill and Lucky Strike, 17km to the south east

• The Hang Glider Hill prospect was initially recognised by the discovery of gold nuggets over a 2000m long north-westerly trend in 2018 and is supported by gold anomalies in auger surface sample results

• This new gold discovery complements the growing gold prospect portfolio at the Lefroy Gold Project, which now includes Lucky Strike, Zanex, Havelock and Red Dale

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Figure 1 Gold grain in drill core interval 47.08m to 47.36m from 19HGDD001 (red circle diameter 1cm)

E: info@lefroyex.com T: +61 8 9321 0984 ARBN: 052 123 930

Australian Registered Office Level 2, 11 Ventnor Avenue West Perth, 6005

ASX Code: LEX Shares on Issue: 100.5M Market Capitalisation: $19.5m

www.lefroyex.com

ASX Announcement 29 November 2019

Lefroy Exploration Limited (ASX: LEX) (“Lefroy” or “the Company”) is pleased to announce results from a recently completed diamond drilling (DD) program at the Hang Glider Hill (“Hang Glider” or “HGH”) prospect, located within the Lefroy Gold Project. The three angled holes were designed to evaluate the geology beneath the topographical feature known as Hang Glider Hill and constitute the maiden drilling by Lefroy at this developing gold prospect.

Hang Glider is located approximately 8km south west of the high-grade Daisy Milano underground mine operated by Silver Lake Resources (ASX: SLR), and central to three operating gold plants at Jubilee, St Ives and Randalls. Each of these plants is within 35km of HGH.

The Hang Glider Hill prospect is located close to the interpreted position of the regional scale Mt Monger Fault, along which (some 17km along strike to the south east) the Company continues to enhance the high-grade Lucky Strike prospect (Figure 2). HGH was recognised by the Company in early 2018 following the discovery of numerous gold nuggets (LEX:ASX 26 June 2018) and the definition of a north-westerly gold trend subsequently defined by surface sampling extending 2.3km from the original HGH nugget find.

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Figure 2 Lefroy Gold Project showing Eastern and Western Lefroy sub projects and the location of Hang Glider Hill relative to Lucky Strike prospect, Daisy Milano and St Ives. Refer to Figure 3 for inset map.

ASX Announcement 29 November 2019

Drill Program

The primary focus of the diamond drill program was to provide information for a geological model to allow planning of future diamond, RC and aircore drilling. The prominent topographic feature, known as Hang Glider Hill, consists of a shallowly south dipping, strongly deformed sequence of interpreted metasediment, intermediate volcanics and ultramafics that is intruded by feldspar porphyry. This sequence is cross cut by later upright northerly trending quartz-carbonate veins. Gold nuggets have been found in close proximity to the Hill, and also up to 2km along strike (refer LEX:ASX release 27 September 2018), and are interpreted to be derived from a primary source.

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Figure 3 Interpreted geological map of the Hang Glider Hill area and extent of LEX tenement package. Refer to Figure 4 for drilling inset map.

Three angled diamond holes were drilled on three drill sections spaced 80m apart. They were sited at the base of the south side of the hill (Figure 4) and evaluated 160m of strike. The first hole, 19HGDD001, was drilled to a depth of 258.6m. The rock sequence intersected guided the depths in the subsequent holes drilled on sections 80m either side. Diamond core drilling was commenced from surface for each hole to ensure collection of core through the shallow oxide (saprolite) zone (refer Figure 4).

Each of the holes intersected a similar geological sequence comprising a shallow oxide zone, and a strongly deformed or sheared zone. These are in contact with a lower, relatively undeformed sequence of biotite altered intermediate volcanic and sedimentary rocks, that includes black shale.

ASX Announcement 29 November 2019

The sheared zone comprises a highly deformed and altered mixed rock sequence that includes interpreted intermediate volcanic rocks, talc-altered ultramafic and feldspar porphyry over a downhole width of approximately 40m. This south flat dipping sheared sequence has a relatively sharp contact with the underlying relatively undeformed intermediate volcanic package and is interpreted to represent a thrust.

The shear zone is also characterised by later stage cross cutting, near vertical quartz veins (Figure 5). Visible gold (VG) was found in one of these quartz veins in hole 19HGDD001 (Figure 1).

The results from this early stage diamond drilling (Table 1) have confirmed gold mineralisation within the sheared and quartz veined rock package in hole 19HGDD001. The diamond holes 80m along strike either side of 19HGDD001 intersected a similar geological sequence but were not significantly mineralised.

Significant results returned from 19HGDD001 (Table 1) include: -

• 6.8m @ 1.86g/t Au from 53.7m

• 7.68m @ 0.66g/t Au from 44m (includes VG)

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Figure 4 Left Image drill hole and tenement plan. Recent diamond holes annotated and historical (1993) drilling depicted as circles. Right Image Drill section for hole 19HGDD001.

29 November 2019

ASX Announcement

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Figure 5 Drill core from 54.07m to 58.80m in 19HGDD001 highlighting mineralised cross cutting quartz veins and grade intervals.

Discussion and Next Steps

The results from the three diamond drill holes have for the first time provided important geological and structural information at Hang Glider Hill that will assist in refining the geological model. In addition, the drilling has discovered a new geological setting that is gold mineralised.

The three diamond holes provide key geological information of the rock package in fresh rock (primary zone) and reinforce the gold prospectivity of the area. This information can now be placed in context with a number of other geological indicators that the Company has been acquiring and building upon since early 2018. In particular, these include the distribution and coincidence of gold nuggets with a gold anomaly defined from auger sampling over a 2km strike length north west from HGH.

The developing geological model and, in particular, the shear zone with cross-cutting gold mineralised quartz veins, provides the Company with a distinctive target horizon and opportunity to focus further exploration that will include drilling. The Company holds approximately 4km of the interpreted structure extending north west from HGH under granted title. A key target area for future drilling is at the north western nugget patch (refer Figure 6) where weathered rock outcrops display similar characteristics to that observed at HGH.

Planning of the next stage of drilling activity is underway. This will include auger drilling to both infill the existing grid, but also to extend to the north west into tenure (Figure 3) only granted this year. The auger drilling is expected to commence in the March quarter of 2020.

The Company has commenced a detailed geological mapping program focused along the trend. This work will incorporate assessment and inclusion of mapping conducted by previous exploration companies that were focused on nickel, including WMC and BHP during the 1970’s and 1980’s.

Integration of the results from the geological mapping, the auger drilling and incorporating knowledge from the recent diamond drilling will guide a focused drilling program along the 4km trend that will include a combination of air core, reverse circulation and diamond drilling.

ASX Announcement 29 November 2019

Background-Hang Glider Hill

HGH is located in the north west region of the Company’s Lefroy Gold Project (“LGP” or “Project”), approximately 50km to the south east of Kalgoorlie. It is part of the Eastern Lefroy package of tenements which covers 226km[2] . Tenements are wholly owned by LEX and not subject to any farm-in agreements.

The LGP is referenced in two packages i.e.

• Eastern Lefroy covering 226km[2] of wholly owned tenements including Lucky Strike, Red Dale, Havelock, Hang Glider, Neon and other sub-projects along or adjacent to the regional Mt Monger fault; and

• Western Lefroy JV tenements covering 372km[2 ] adjoining the St Ives gold camp that are subject to a Farmin and Joint Venture agreement with Gold Fields Limited (“Gold Fields”).

The Eastern Lefroy tenements are proximate to the regional Mt Monger Fault (Figure 2), which is considered to be structurally analogous to other major regional faults in the Kalgoorlie terrain (e.g. Boulder Lefroy Fault). The Company considers areas around the Mt Monger Fault to be prospective for large gold deposits and hence these areas are a major focus for exploration by the Company.

HGH has been the focus of reconnaissance stage exploration since early 2018 following the discovery of numerous gold nuggets (LEX:ASX 26 June 2018) and preliminary definition of a north-westerly trend extending 2.3km from the original HGH nugget find. The Company considers the gold nuggets (Figure 6) to be a surface geochemical anomaly.

In September 2018 the Company completed an early stage auger drilling program as an initial exploration search tool along the trend. A total of 266 samples were collected at 50m centres along 200m spaced east west lines that effectively cover approximately 2000m of strike.

The results of the sampling (ASX: LEX 6 November 2018) defined northern and southern zones of gold anomalism (plus 20ppb Au) around the interpreted position of the Mt Monger Fault. The zones are coincident with the locations of the discovered gold nuggets. The northern anomaly consists of three subparallel trends with a strike of up to 880m. The southern anomaly is centered about Hang Glider hill (a linear topographical feature) and is a coherent anomaly over a 680m strike length. The anomaly has four sample points exceeding 50ppb Au, with a peak of 82ppb.

The HGH trend is consistent with a north west trending sub-cropping sequence of deformed ultramafic, chert and metasediments that dip to the south west at approximately 50 degrees. The sequence is cross cut by quartz veins and intruded in isolated locations by feldspar porphyry.

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Figure 6 Selection
of gold nuggets
found at Hang
Glider Hill (source
LEX: ASX release
27 September
2018)
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ASX Announcement 29 November 2019

About Lefroy Exploration Limited and the Lefroy Gold Project

Lefroy Exploration Limited is a WA based and focused explorer taking a disciplined methodical and conceptual approach in the search for high value gold deposits in the Yilgarn Block of Western Australia. Key projects include the Lefroy Gold Project to the south east of Kalgoorlie and the Lake Johnston Project 120km to the west of Norseman.

The 100% owned Lefroy Gold Project contains mainly granted tenure and covers 598km[2] in the heart of the world class gold production area between Kalgoorlie and Norseman. The Project is in close proximity to Gold Fields’ St Ives gold camp, which contains the Invincible gold mine located in Lake Lefroy and is also immediately south of Silver Lake Resources’ (ASX:SLR) Daisy Milano gold mining operation. The Project is divided into the Western Lefroy package, subject to a Farm-In Agreement with Gold Fields and the Eastern Lefroy package (100% Lefroy owned). The Farm-In Agreement with Gold Fields over the Western Lefroy tenement package commenced on 7 June 2018. Gold Fields can earn up to a 70% interest in the package by spending up to a total of $25million on exploration activities within 6 years of the commencement date .

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Location of the Lefroy Gold Project relative to Kalgoorlie and the Western Lefroy tenement package subject to the Gold Fields joint venture.

For Further Information please contact:

Wade Johnson

Managing Director Telephone: +61 8 93210984

Email: wjohnson@lefroyex.com

ASX Announcement 29 November 2019

Table 1: 2019 Diamond Drilling-Eastern Lefroy Gold Project-Hang Glider Hill Prospect

Diamond drill hole intersections tabulated below are calculated with a 0.25g/t Au lower cut for the entire drill program. The intercepts represent the intersections from individual consecutive core sample results that vary in length between 0.2m to 1.2m, but nominally 1m and include a maximum of 2m of internal dilution.

Hole ID	Collar E (MGA)	Collar N (MGA)	Collar RL	Depth (m)	Dip	Azimuth	Depth From (m)	Depth To (m)	Downhole Intersectio n (m)	Au Value (g/t)
19HGDD001	389357.97	6565063.54	372.12	258.6	-50	20	0.00	0.80	0.80	0.28
19HGDD001	389357.97	6565063.54	372.12	258.6	-50	20	35.00	36.97	1.97	0.56
19HGDD001	389357.97	6565063.54	372.12	258.6	-50	20	43.99	51.67	7.68	0.66
									VG@ 47.3m
19HGDD001	389358	6565063.5	372.12	258.6	-50	20	53.70	60.50	6.80	1.86
Including							57	58.05	1.05	7.42
									VG@ 60.25m
19HGDD001	389357.97	6565063.54	372.12	258.6	-50	20	64.00	66.00	2.00	1.02
19HGDD002	389435.77	6565026.50	372.09	171.7	-50	25	69.4	70.07	0.67	0.41
19HGDD003	389291.13	6565094.13	371.80	150.7	-55	20	NSR

*Notes Specific-ASX Announcements

The following announcements were lodged with the ASX and further details (including supporting JORC Reporting Tables) for each of the sections noted in this Announcement can be found in the following releases. Note that these announcements are not the only announcements released to the ASX by the Company but specific to Hang Glider Hill.

• Exploration Update: New Gold Prospect Identified: 26 June 2018

• Exploration Update: Drilling Commenced at Capstan: 27 July 2018

• Exploration Update: Eastern and Western Lefroy Projects: 6 August 2018

• June 2018 Quarterly Activities Report: 31 July 2018

• Exploration Progress Eastern and Western Lefroy Projects: 3 September 2018

• Auger Drilling Commenced at Hang Glider Hill: 27 September 2018

• Exploration Update Drilling Programs Completed at Eastern Lefroy: 18 October 2018

• September 2018 Quarterly Activities Report: 29 October 2018

• Surface Gold Anomaly Enhances Hang Glider Hill Trend: 6 November 2018

The information in this announcement that relates to exploration targets and exploration results is based on information compiled by Wade Johnson a competent person who is a member of the Australian Institute of Geoscientists (AIG). Wade Johnson is employed by Lefroy Exploration Limited. Wade has sufficient experience that is relevant to the style of mineralisation and type of deposits under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 edition of the JORC Code. Wade Johnson consents to the inclusion in this announcement of the matters based on his work in the form and context in which it appears.

JORC CODE, 2012 Edition-Table 1 Report –Lefroy Project –Hang Glider Hill Prospect October 2019 Diamond Drilling SECTION 1: SAMPLING TECHNIQUES AND DATA

Criteria	JORC Code Explanation	Commentary
Sampling techniques	• Nature and quality of sampling (eg cut channels, random 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.	• The sampling noted in this release has been carried out using Diamond drilling (DD) at the Hang Glider Hill prospect. The DD program comprised 3 angled holes for 581m. Holes varying in depth from 150.1m to 258.6m with an average depth of 194m. Holes 19HGDD001 and 19HGDD002 were drilled at -500toward 0200and 0250azimuth with 19HGDD003 drilled at -550toward 0200azimuth. Holes were drilled approximately 80m apart along a north-west strike. • Sampling and QAQC protocols as per industry best practice with further details below. • DD was conducted utilising triple tube HQ sized core to obtain the highest quality sample and to minimise core loss through the saprolite before transitioning to NQ sized core once the ground became competent. This was left to drillers’ discretion. Core was collected in core trays where it was marked up and logged by the supervising geologist. It was noted the there was excellent core recovery and only minor zones of core loss which were recorded by the geologist. Samples were first cut in half using an Almonte core saw and collected in calico bags with a minimum sample width of 0.2m and a maximum 1.2m to produce a 2- 4kg sample through the interpreted mineralised zone. Once at the lab samples were dried, crushed and prepared to produce a 40g charge for fire assay analysis for gold (Au) by Atomic Absorption Spectrometry (AAS).
Drilling techniques	• Drill type (eg core, reverse circulation, open- hole hammer, 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).	• The diamond drilling (DD) was completed by Raglan Drilling (Kalgoorlie). HQ triple tube was used to preserve core integrity and obtain accurate bottom of hole orientation marks. Once the driller decided the ground was competent enough, NQ sized core was used.
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.	• Diamond core was measured and compared to drilled interval indicated by the drillers. From this, a percentage of recovery can be calculated. Recovery in oxide material varied, however where core loss occurred this has been diligently noted by the drill crew and geologist. • The use of professional and competent core drilling contractors minimised the issues with sample recoveries. An honest and open line of communication between the drill crew and the geologist allowed for a comprehensive understanding of where core loss may have occurred. • Core recovery in the oxide material was often excellent, therefore,no significant bias is expected.
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.	• Detailed logging of, regolith, lithology, structure, veining, alteration, mineralisation and recoveries recorded in each hole by qualified geologist. • Every hole was logged for the entire length. • Diamond core underwent detailed logging through the entire hole with data being transferred to the Lefroy drilling database after capture • Analysis of rock type, colour, structure, alteration, veining and geotechnical data were all routinely collected. • Geological logging is qualitative in nature and relies on the geologist logging the hole to make assumptions of the core character based on their experience and knowledge. • Recovery, RQD (rock quality designation) and magnetic susceptibility measurements were recorded and are considered to be quantitative in nature. • Core within the core trays for each hole was photographed using a purpose made camera stand and a quality digital SLR camera and stored in the database. • All drill holes were logged in their entirety (100%).

Criteria	JORC Code Explanation	Commentary
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.	• Half core sampling was conducted with core cut using an Almonte core saw. • Where a bottom of hole orientation line was drawn on the core, this was also used as a guide to cutting the core, ensuring that the same (right hand) side of core was sampled. Where no orientation line existed, core was joined up in the trays as accurately as possible and an interpreted cut line was drawn on the core so that the same side of core was consistently sampled. • Quarter core sampling was used for duplicate samples. Duplicate samples were located at the Geologist’s discretion, usually where mineralisation was interpreted. • Certified reference material (CRM) standards and blanks were inserted at the geologist’s discretion on a roughly 1 in 20 sample bases.
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 (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) andprecision have been established.	• Samples routinely analysed for gold using the 40gram Fire Assay digest method with an AAS finish at Bureau Veritas’s Kalgoorlie Laboratory. • Quality control process and internal laboratory checks demonstrate acceptable levels of accuracy. At the laboratory regular assay repeats, lab standards, checks and blanks were analysed.
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.	• The results have been reviewed and verified by alternative company personnel. • No holes were planned to twin prior drill holes. • Capture of field logging is electronic using Toughbook hardware and Logchief software. Logged data is then exported as an excel spreadsheet to the Company’s external database managers which is then loaded to the Company’s DATASHED database and validation checks completed to ensure data accuracy. Assay files are received electronically from the laboratory and filed to the Company’s server, and provided to the external database manager. • There has been no adjustment to the assay data. The primary gold (Au) field reported by the laboratory is the priority value used for plotting, interrogating and reporting.
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.	• Drill hole positions were surveyed using a DGPS operated by a third-party contracting surveyor. The same contractor was used once drilling was completed to pick-up collar positions using a DGPS. Down holes surveys were completed by Raglan drill crew using a multi-shot gyro which records a survey every <5m down the hole. • Grid System – MGA94 Zone 51. Topographic elevation captured byusingthe differential GPS.
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.	• Hole spacing at approximately 80m spaced intervals • Mineralisation at Hang Glider Hill appears constrained to a highly deformed felsic to intermediate volcanic which has been extensively quartz-carbonate veined and biotite altered. It is interpreted that this represents a thrust fault zone. The orientation of which has initially been interpreted to strike approximately north-west south-east, hence the drill orientation, however this is early stage exploration and geological interpretation is ongoing. • Due to the fact this is early stage exploration, the first drill

Criteria	JORC Code Explanation	Commentary
Data spacing and distribution	• Whether sample compositing has been applied.	hole (19HGDD001) was sampled in its entirety. Sampling obeyed standard sampling protocol with sample intervals controlled by the min/max intervals and geological and alteration boundaries. Reported assay results are composited into an interval where samples >0.25g/t Au with a maximum of 2m internal dilution are reported.
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.	• The roughly North-East orientated drill traverses considered effective to evaluate the roughly North-West trending stratigraphy. • The drill orientation is a more effective test of “true” width of the host rock due to the fact the host rock unit is striking roughly North-West/South-East. • The holes represent the first significant exploration by Lefroy Exploration in this area and were drilled primarily to identify the geological characteristics of the prospect. The holes were planned based on knowledge acquired from previous explorers and outcrop mapping which suggested the drill orientation would maximise the potential to intersect geology and mineralising structures at an orientation which was roughly perpendicular to their orientation. Therefore reducing the sampling bias.
Sample security	• The measures taken to ensure sample security.	• Samples were bagged in labelled and numbered polyweave or plastic bags, collected and personally delivered to the Bureau Veritas Laboratory (Kalgoorlie) by Company field personnel. Samples were then sorted and checked for inconsistencies against lodged Submission sheet by Bureau Veritas staff. • Bureau Veritas checked the samples received against the Lefroy Exploration Limited (LEX) submission sheet to notify of any missing or extra samples. Following analysis, the sample, pulps and residues are retained by the laboratory in a secure storageyard.
Audits or reviews	• The results of any audits or reviews of sampling techniques and data.	• All sampling and analytical results of the drill program were reviewed by the Senior Exploration Geologist and Managing Director. Anomalous gold intersections were checked against library core photos and logging to correlate with geology. QAQC reports are auto generated by the database managers and reviewed bystaff.

Section 2: REPORTING OF EXPLORATION RESULTS – LEFROY PROJECT- Hang Glider Hill - October 2019 Diamond Drilling

Drilling
Criteria	JORC Code Explanation	Commentary
Mineral tenement and land tenure status	• Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings. • 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.	• The Lefroy Project is located approximately 50 km in south east from Kalgoorlie, Western Australia and consists of a contiguous package of wholly owned tenements held under title by LEX or its wholly owned subsidiary Monger Exploration Pty Ltd. The work described in this report was completed on a Exploration lease E 26/183. • E 26/183 is held 100% by Monger Exploration Pty Ltd a wholly owned subsidiary of Lefroy Exploration Limited • The tenements are current and in good standing with the Department of Mines and Petroleum (DMP) of Western Australia.
Exploration done by other parties	• Acknowledgment and appraisal of exploration by other parties.	• Previous RAB and RC drilling was conducted by Sovereign Resources NL in the early 1990’s. Most of the work involved shallow RAB which identified gold anomalous results on Hang Glider Hill. This was followed up by deeper RC which confirmed the presence of gold mineralisation in a highly foliated felsic volcanic rock. Only early stage exploration was conducted and since then has received no follow up work. Details of this drilling sourced from WAMEX item A39666 (Mineral exploration reports stored as open-file reports by the Geological Survey of Western Australian) were compiled by LEX and incorporated into the Company’s database. Given the historical nature of and type of drilling the Company places a low confidence on the data, but nevertheless used to guide exploration.
Geology	• Deposit type, geological setting and style of mineralisation.	• The Lefroy Project is located in the southern part of the Norseman Wiluna Greenstone Belt and straddles the triple junction of three crustal units, the Parker, Boorara and Bulong Domain. The Lefroy project tenements are mostly covered by alluvial, colluvial and lacustrine material with very little outcrop. Hang Glider Hill is a topographic high thought to represent a thrusted fault zone of felsic to intermediate volcanic rocks in contact with Ultramafic and basaltic volcanic rocks. Gold mineralisation is associated with late quartz-carbonate veins within the thrust fault zone in the felsic to intermediate volcanic rocks. The prospect lies close to the GSWA’s position for the regional Mt Monger fault with historic interpretation of magnetic imagery suggesting the presence of a roughly north-north-west strike fault referred to as the Isles Fault (Sovereign Resources NL, 1993).
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: • easting and northing of the drill hole collar • elevation or RL (Reduced Level – elevation above sea level in metres) of the drill hole collar • dip and azimuth of the hole • down hole length and interception depth • 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.	• Table containing drill hole collar, survey and intersection data for material (gold intersections >0.25gpt Au with a max of 2m internal dilution) drill holes are included in the Table in the body of the announcement. • No Information has been excluded.

Criteria	JORC Code Explanation	Commentary
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.	• All report grades have been length weighted. High grades have not been cut. A lower cut off of 0.25gpt Au has been used to identify significant results (intersections). • Where present, higher grade values are included in the intercepts table and assay values equal to or > 1.0 g/t Au have been stated on a separate line below the intercept assigned with the text ‘includes’. • No metal equivalent values or formulas used. • Reported diamond drill results have been results have been calculated using samples that vary in length from 0.2m to 1.2m but nominally 1.0m. No metal equivalent values or formulas used. • Where core loss is measured, a gold value of 0 ppm is applied for the length weighted interval for which this would apply and included in the intercept calculation and would count in the internal dilution.
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 (eg ‘down hole length, true width not known’).	• All results are based on down-hole metres. • Previous drill coverage has provided guidance for the presence of low angle thrust faults dipping toward the south-west roughly discordant to the north-west strike of the geological package. Mineralised intervals represent a down-hole length as work on the orientation of the mineralised veins is still on-going and exploration is still in its infancy at Hang Glider Hill.
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.	• Appropriate summary diagrams (section & plan) are included in the accompanying 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.	• Significant assay results are provided in Table 1 for the recent LEX DD drill program. • Drill holes with no significant results are reported. • Significant assay results from historical drilling are not included as much of the historic drilling was rotary air blast (RAB) drilling and results cannot be appropriately validated with confidence.
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.	• All relevant data has been included within this report.
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.	• The appropriate next stage of exploration planning is currently underway and noted in the body of the report.