LEFROY EXPLORATION LIMITED — Capital/Financing Update 2024

Oct 27, 2024

ASX Announcement

ASX: LEX

$3.3m Raised in Oversubscribed Placement to Commercialise Resources and Target New Discoveries

28 October 2024

HIGHLIGHTS

• Lefroy has received firm commitments to raise $3.3 million (before costs) in an oversubscribed share placement to institutional and sophisticated investors.

• Existing shareholders have provided strong support for the placement in addition to new overseas and domestic investors.

• Directors of Lefroy have committed to participate in the Placement for a total of $270,000, subject to shareholder approval.

• The Company is now well-funded to proceed down its pathway via its advanced conversations towards an outcome of commercialising its advanced gold projects, with the clear goal of unlocking the value of its gold assets, through a strategic partnership.

• An additional focus to grow the Company’s existing resource base through targeted resource extensional drilling at Mt Martin and unlocking future resource growth across its broader highly prospective Lefroy Gold Project.

Lefroy Exploration Limited (“LEX” or “the Company”) (ASX: LEX) is pleased to announce that it has received firm commitments to raise approximately $3.3 million (before issue costs) through an oversubscribed placement to institutional and sophisticated investors (“Placement”). The includes $270,000 from Lefroy Directors.

LEFROY CHAIRMAN, DAVID KELLY, COMMENTED:

“We are grateful for the ongoing support of existing shareholders, and welcome new investors who have joined us through this Placement.

Securing this additional equity funding allows Lefroy to accelerate its twin strategies of exploring it highly prospective tenements to make new discoveries to expand its existing 1Moz gold Resource, while seeking to commercialise its inventory of near surface gold deposits.

LEFROYEX.COM | ASX: LEX

1

==> picture [110 x 33] intentionally omitted <==

The very strong gold market is providing the catalyst for innovative and pragmatic transactions to take place to unlock the value of unmined resources within the Kalgoorlie-Kambalda region. Lefroy is very well positioned to participate in this process.

The coming year holds great promise for Lefroy shareholders. We look forward to providing regular updates to the market on our progress.”

PLACEMENT DETAILS

The Placement will result in the issue of a total of approximately 47.14 million fully paid ordinary shares (“Shares”) at an issue price of $0.07 per New Share. New Shares issued under the Placement will rank equally with the Company’s existing Shares.

The Placement issue price was at a 14.6% discount to the last closing price of LEX (on 23 October 2024) and a 9.7% discount to the 15-day VWAP of LEX Shares. The Placement was taken up by new overseas and domestic institutional and sophisticated investors and received strong support from existing shareholders. Lefroy’s Directors have committed to participate in the Placement for a total of $270,000. This will be subject to Shareholder approval at the Company’s next General Meeting of Shareholders.

The proceeds of the Placement will be used to accelerate the Company’s advancement towards commercialising its advanced gold projects and additionally, seeking to grow its gold resource base centred within the Company’s flagship Lefroy Gold Project (“LGP”). Coupled with the Location 45 freehold land, the LGP is located 35km southeast of Kalgoorlie within the Company’s commanding and contiguous 635km² tenement package.

Lefroy acquired 100% of the mineral rights to Location 45 from its title holder, FrancoNevada Pty Ltd, in May 2023 (refer to ASX release 23 May 2023). Location 45 contains the Mt Martin Gold Mine (“Mt Martin”) with a combined mineral resource estimate of 9.29Mt containing 439,000 ounces grading 1.47g/t Au (refer ASX release 10 Oct 2024) with a detailed resource split shown in Table 1.

Additionally, the Company holds the Lucky Strike project with a combined mineral resource estimate of 1.27Mt containing 79,600 ounces grading 1.95 g/t Au (refer ASX release 20 May 2020) and refer to Table 1 for a detailed resource category split.

Proceeds from the capital raise will be focused initially on feasibility activities centred around the Company’s advanced gold projects, specifically at Lucky Strike and Mt Martin, including shallow drilling to support confirmatory metallurgical studies, and targeted shallow resource definition drilling.

On ground activities and drilling to support these ventures will be scheduled throughout the December quarter of 2024 and through into the first quarter of 2025.

The Company will continue its advanced discussions with multiple regional operators and prospective developers towards commercialisation, through low-risk strategic partnerships.

LEFROYEX.COM | ASX: LEX

2

==> picture [110 x 33] intentionally omitted <==

Additional to this, the Company will continue to advance and seek to unlock the significantly underexplored exploration upside of the broader Lefroy Gold project, including a 40km belt extending from the Mt Martin project in the northwest towards the highly prospective Neon – Burns North corridor in the southwest.

The Placement of 47,142,870 Shares (A$3,300,000) consists of:

• (a) 43,285,725 Shares (A$3,030,000) to be issued pursuant to the Company’s existing placement capacity under ASX Listing Rules 7.1 and 7.1A (23,364,925 Shares under Listing Rule 7.1 and 19,920,800 Shares under Listing Rule 7.1A placement capacity), with settlement to take place on Monday 4 November 2024; and

• (b) 3,857,145 Shares (A$270,000) to be issued to Directors of the Company (or their nominees), subject to Shareholder approval to be sought at the Company’s next General Meeting of Shareholders.

Bridge Street Capital Partners Pty Ltd acted as Sole Lead Manager for the Placement.

- ENDS -

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

==> picture [148 x 53] intentionally omitted <==

Graeme Gribbin CEO

For further information please contact:

INVESTORS

MEDIA

Graeme Gribbin – CEO Lefroy Exploration E. ggribbin@lefroyex.com P. +61 8 9321 0984

Fiona Marshall White Noise Communications E. fona@whitenoisecomms.com

P: +61 400 512 109

More details: www.lefroyex.com

LEFROYEX.COM | ASX: LEX

3

==> picture [110 x 33] intentionally omitted <==

ABOUT LEFROY EXPLORATION LIMITED

Lefroy Exploration Limited (ASX:LEX) is an active West Australian exploration company focused on developing its growing gold and critical minerals projects. The Company’s portfolio of high-quality projects includes the Lefroy Project (Figure 1), located in the heart of the world-class Kalgoorlie and Kambalda gold and nickel mining districts, the Lake Johnston Project 120km west of Norseman, and the large 2,872km² Glenayle Project 210km north of Wiluna.

The Lefroy Project is a contiguous land package of 635km² with a growing mineral resource inventory of greater than 1 million ounces of gold, 58,000 tonnes of contained copper and 14,780 tonnes of contained nickel, (refer to Table 1).

In May 2023, Lefroy signed a Mineral Rights Agreement with title holder Franco-Nevada Pty Ltd, to acquire the mineral rights to Hampton East Location 45 (Location 45) (Refer ASX release 23 May 2023). Location 45 is a freehold property, located within 25km of Kambalda and 35km southeast of Kalgoorlie. The property hosts the historic Mt Martin gold mine, which has historically produced approximately 200,000 ounces of gold grading at 2.8g/t and which includes an existing resource of 439,000 oz gold (9.29Mt @ 1.47g/t Au) (refer to ASX release 10 October 2024).

==> picture [346 x 345] intentionally omitted <==

Figure 1: Regional location map of the Lefroy Project

LEFROYEX.COM | ASX: LEX

4

ASX Announcement

ASX: LEX

SUPPORTING ASX ANNOUNCEMENTS

The following announcements were lodged with the ASX and further details (including supporting JORC Tables) for each of the sections noted in this announcement can be found in the following releases. The Company confirms that it is not aware of any new information or data that materially aqects the information included in the original market announcements. In the case of all Mineral Resource Estimate’s (MRE), the Company confirms that all material assumptions and technical parameters underpinning the estimates continue to apply and have not materially changed.

• Maiden Lucky Strike Resource Estimate: 20 May 2020

• Half a million ounces of gold in Burns Central maiden resource: 4 May 2023

• Strategy to focus on Gold Development and Exploration: 23 February 2024

• High Grade Shallow Resource to Unlock Value at Burns Central: 3 October 2024

• Lefroy builds near-surface gold resources at Mt Martin: 10 October 2024

• South-West Connect – Investor Presentation October 2024: 16 October 2024

• Commercialising resources to advance exploration targets: 23 Oct 2024

COMPETENT PERSON STATEMENT

The information in this announcement that relates to exploration targets and exploration results is based on information compiled by Graeme Gribbin, a competent person who is a member of the Australian Institute of Geoscientists (AIG). Mr Gribbin is employed by Lefroy Exploration Limited. Mr Gribbin has suqicient 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. Mr Gribbin consents to the inclusion in this announcement of the matters based on his work in the form and context in which it appears.

LEFROYEX.COM | ASX: LEX

5

==> picture [110 x 33] intentionally omitted <==

Table 1: Total Indicated and Inferred Mineral Resources (small discrepancies may occur due to the effect of rounding)

Orogenic Gold Style	Orogenic Gold Style
		Indicated			Inferred			Total Resource
Deposit	Mt	Au (g/t)	Oz	Mt	Au (g/t)	Oz	Mt	Au (g/t)	Oz
Red Dale	0.64	1.21	24,660	0.03	0.60	570	0.67	1.18	25,230
Lucky Strike	0.70	1.93	43,400	0.57	1.97	36,200	1.27	1.95	79,600
Mt Martin	5.60	1.40	2.47,500	3.69	1.61	191,500	9.29	1.47	439,000
TOTAL	6.94	1.41	315,560	4.29	1.66	228,270	11.23	1.51	543,830

Porphyry Gold-Copper Style	Porphyry Gold-Copper Style	Porphyry Gold-Copper Style	Porphyry Gold-Copper Style	Porphyry Gold-Copper Style
			Indicated					Inferred				Total	Resource
Deposit	Mt	Au (g/t)	Cu (%)	Au (Oz)	Cu (t)	Mt	Au (g/t)	Cu (%)	Au (Oz)	Cu (t)	Mt	Au (g/t)	Au (Oz)	Cu (t)
Burns Central	32.31	0.38	0.16	394,308	50,253	10.65	0.3	0.08	103,165	8,047	42.96	0.36	497,472	58,300
Total	32.31	0.38	0.16	394,308	50,253	10.65	0.3	0.08	103,165	8,047	42.96	0.36	497,472	58,300

Nickel
		Indicated			Inferred			Total Resource
Deposit	tonnes	Ni (%)	Ni metal	tonnes	Ni (%)	Ni metal	tonnes	Ni (%)	Ni metal
Goodyear	-	-	-	392,000	3.78	14,780	392,000	3.78	14,780
TOTAL	-	-	-	392,000	3.78	14,780	392,000	3.78	14,780

LEFROYEX.COM | ASX: LEX

6