LEFROY EXPLORATION LIMITED — Capital/Financing Update 2023

Jul 9, 2023

ASX ANNOUNCEMENT 10 July 2023

ASX: LEX

HIGHLIGHTS

• Lefroy receives AU$0.91 million tax refund from FY2022 for R&D activity undertaken at the Company’s Burns Gold-Copper Project near Kalgoorlie

• R&D program advanced geological understanding and helped develop a working model of Au Cu mineralisation, supporting exploration at Burns and the broader Eastern Goldfields Province (EGP) of Western Australia

• Led to MRE at Burns Central hosted in a new and unique style of alkalic porphyry Au Cu system with scale and limits of the broader system still to be determined

• Ongoing research during FY2022 undertaken in collaboration with the Centre of Exploration Targeting (CET) at the University of Western Australia.

• Research by the CET on the genesis of the Burns system accelerated during FY2023 and is expected to continue during FY2024 to aid further exploration.

Lefroy Exploration Limited (“Lefroy” or “the Company”) is pleased to announce it has received a tax refund of A$0.91 million from the Australian Tax Office (“ATO”) for the financial year ending 30 June 2022.

The refund was granted through the ATO’s research and development (“R&D”) tax incentive program, recognising the technical progress achieved by Lefroy at its wholly-owned Burns Gold-Copper Project (“Burns”), located 70km from Kalgoorlie in the Eastern Goldfields Province (EGP) of Western Australia.

A collaborative research program to advance the geological understanding of the Burns system was launched during 2021 with the Centre of Exploration Targeting (CET) at the University of Western Australia (UWA). This followed initial work completed by the Geological Survey of Western Australia (GSWA).

Subsequently, in early May 2023 the Company reported a maiden Mineral Resource Estimate (MRE) for the Burns Central prospect totaling 43 million tonnes grading 0.36g/t Au, 0.14% Cu and 0.35g/t Ag.

The MRE metal content contained 0.5 million ounces of gold, 58,000 tonnes of copper and 489,000 ounces of silver respectively (refer ASX announcement 4 May 2023).

The mineralisation is hosted within multiple alkalic porphyry intrusions and basalt dated to 2.6 billion years (Archaean age).

The Company considers this style of mineralisation to be atypical of the Eastern Goldfields and potentially a first-of-its-kind discovery in WA.

LEFROYEX.COM

ASX : LEX

==> picture [596 x 83] intentionally omitted <==

----- Start of picture text -----

ASX ANNOUNCEMENT | 6 July 2023
----- End of picture text -----

LEFROY EXPLORATION MANAGING DIRECTOR WADE JOHNSON SAID:

“The refund from the ongoing R&D tax incentive program is welcomed by the Company and is supporting recognition of the atypical style of gold copper porphyry mineralisation in the Eastern Goldfields that the Company has discovered at Burns.

“This discovery could be the first of its kind in WA and thanks to the collaboration with the Centre of Exploration Targeting at UWA and the GSWA since 2021, we have been able to advance the understanding of the Burns geological model.

“We are grateful for their support, with the research ongoing through FY2023 and expected to continue into FY2024 to support the exploration at Burns.”

RESEARCH ONGOING

Ongoing research conducted by the Company suggests this unique style of alkalic porphyry mineral system, which can occur with clusters of numerous porphyry centres with small strike extents, can add up to a mineral system with significant metal endowment.

The approved R&D claim reflects significant research undertaken by the Company in partnership with the CET to advance geological and geochemical understanding of Burns and the development of a working model to support further exploration at Burns and within the greater EGP.

The research work with the CET continued during FY2023 and is expected to continue into FY2024 as exploration continues to scope out the larger alkalic porphyry system.

Lefroy anticipates lodging a further R&D tax rebate for work undertaken in FY2023.

NEXT STEPS

The R&D tax refund will be reinvested into ongoing exploration activity within the Burns Gold-Copper Project to support resource growth, including:

• Extensional diamond and RC resource drilling at Burns Central to expand the resource immediately north, south and west of Burns Central where mineralisation is open.

• Diamond and RC drilling to evaluate multiple, largely untested gold-copper and geophysical exploration targets along the highly prospective Burns Corridor, including the Lovejoy, Smithers, Flanders, Skinner, Millhouse and Ralph prospects.

Lefroy is also planning further resource definition and exploration drilling at its recently acquired Location 45 asset 35km southeast of Kalgoorlie, with a focus on the existing 500,000oz Mt Martin Gold Mine.

Lefroy holds gold mineral exploration rights across the 76.3km[2 ] highly prospective land package, which was acquired in late May from Franco-Nevada Australia Pty Ltd (refer ASX announcement 23 May 2023).

LEFROYEX.COM

ASX : LEX

==> picture [596 x 83] intentionally omitted <==

----- Start of picture text -----

ASX ANNOUNCEMENT | 6 July 2023
----- End of picture text -----

-ends -

This announcement has been authorised for release by the Board of Directors.

==> picture [94 x 31] intentionally omitted <==

Wade Johnson Managing Director

For further information please contact:

INVESTORS

Wade Johnson - Managing Director Lefroy Exploration E. wjohnson@lefroyex.com P. +61 8 9321 0984

MEDIA

Josh Nyman - General Manager SPOKE. E. josh@hellospoke.com.au P. +61 413 243 440

More details: www.lefroyex.com

SUPPORTING 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 these announcements are not the only announcements released to the ASX but specific to mineral resource and exploration reporting by the Company at Burns Central at the Lefroy Gold Project.

• Multiple Gold Intercepts Continue to Expand Burns: 5 December 2022

• Multiple, Shallow Thick Copper -Gold Intersections at Burns: 6 February 2023

• Strong Gold and Copper Intersections Continue to Expand Burns Central: 2 March 2023

• Burns Project Demonstrates Significant Scale: 12 April 2023

• Strong Gold and Copper Intersections Continue to Expand Burns Central:2 March 2023

• 0.5M Ounces of Gold in Burns Central Maiden Resource: 4 May 2023

• Lefroy Increases Gold Resources to 602,000oz: 15 May 2023

LEFROYEX.COM

ASX : LEX

==> picture [596 x 83] intentionally omitted <==

----- Start of picture text -----

ASX ANNOUNCEMENT | 6 July 2023
----- End of picture text -----

ABOUT LEFROY EXPLORATION LIMITED AND 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 and nickel deposits in the Yilgarn Block of Western Australia. Key projects include the Lefroy Gold Project to the southeast 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 632km ² in the heart of the world class gold production area between Kalgoorlie and Norseman.

The Project is proximal 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 $25 million on exploration activities within six years of the commencement date.

==> picture [441 x 368] intentionally omitted <==

Location of the Lefroy Gold Project relative to Kalgoorlie, major gold and nickel operations and prospects. The Western Lefroy tenement package subject to the Gold Fields joint venture, and Gold Fields tenure is also highlighted. The East Location 45 licence forms the north-west corner of the Lefroy Gold Project and hosts the 500,000 Oz Mt Martin Gold Mine and 391,250 tonne Goodyear Nickel Deposit (at 3.78% Ni).

LEFROYEX.COM

ASX : LEX