LOYAL METALS LTD — Capital/Financing Update 2021

Dec 19, 2021

ASX RELEASE

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20 December 2021

Providence Stage 2 RC Drill Program Approved

Highlights:

• 2,790M RC drill program planned for the Providence Prospect at Mt Monger North

• Drilling expected to commence in mid – late January 2022

• Previous drilling at Providence (ASX announcement 9 November 2021) returned exceptional results, including:

• 8m @ 16.15 g/t Au from 60m including 1m @ 111.4 g/t Au from 61m and 1m @ 15.01 g/t Au from 63m

• 8m @ 31.84 g/t Au from 66m including 1m @ 37.03 g/t Au from 68m; 1m @ 18.20 g/t from 69m and 1m @ 190.06 g/t Au from 70m

• Drilling will test the results from November’s program at depth and along strike

• Planned drill hole spacing will enable a Maiden Resource Estimate following the completion of the program (subject to results)

Monger Gold Limited ( ASX: MMG ) ( MMG or the Company ) is pleased to announce that a Stage Two follow-up Reverse Circulation (RC) drill program of 27 holes for 2,790m (plus 200m contingency for hole extensions if required) has been approved by the Board of Directors at the Providence Prospect, Mt Monger North Project. The program aims to test the discovery of high-grade gold intercepts from the Stage One RC drill program at depth and along strike. (MMG announcement below on 09 November 2021 “Drilling Uncovers Significant High-grade Gold at Providence”)

Extension RC drilling at the Providence Prospect (Mt Monger North) returned the following gold intersections:

• MNRC004 8m @ 16.15 g/t Au from 60-68m including 1m @ 111.4 g/t Au from 61-62m and 1m @ 15.01 g/t Au from 63-64m

• MNRC007 8m @ 31.84 g/t Au from 66-74m including 1m @ 37.03 g/t Au from 68-69m; 1m @ 18.20 g/t from 69-70m and 1m @ 190.06 g/t Au from 70-71m

The Stage One drilling was designed to follow-up Silver Lake Resources Limited’s (ASX:SLR) drill intersections (2011) into upper saprolite portions of the new deeper discovery:

• NMRC070 1m @ 20.7 g/t from 54m (ends in mineralisation)

• NMRC078 2m @ 7.93 g/t from 22m

• NMRC077 2m @ 4.21 g/t from 33m

Commenting on the upcoming drilling campaign, Monger Gold’s Chairman Mr

Peretz Schapiro said “The exceptional results from our maiden drill campaign have demonstrated the prospectively of the Providence prospect and enhanced our confidence in the project.

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Office : P: (08) 6245 2490 Directors: Exploration Manager: 602/566 St Kilda Road E: info@mongergold.com.au Peretz Schapiro Darren Allingham Melbourne VIC 3004 W: www.mongergold.com.au Andrew Graham Company Secretary: Romy Hersham Ian Pamensky

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Whilst this project has been explored by numerous companies over the years, it appears that they had been focused on shallow oxide mineralization and have overlooked the potential for deeper narrow vein high-grade gold mineralization in the fresh rock. The high-grade results we have recently received validate our hypothesis.

We are very much looking forward to this next phase of drilling as we look to increase the potential strike and add depth to this high-grade gold system. Subject to results, we anticipate that following this campaign we will be able to release a Maiden Mineral Resource”.

Testing of gold mineralisation is planned to deeper levels (new drill holes have -60 dip and 130 magnetic azimuths) over a 270m southwest extension, towards old surface workings also with a southwest strike. No drill holes have been completed in the proposed new MMG drill program extension area, both at depth and along strike. The parallel drill traverses are spaced at 25 metre intervals in the northeast drilling beneath shallow historical holes (grid of historical drilling by other mining companies) and 40 metres towards the southwest (new extension step-out grid) with drill holes 20 metres apart along each traverse. This drill hole spacing will test the extents and continuity of gold mineralisation discovered by MMG and will enable a resource estimation if confidence is increased in gold continuity.

The orebody is interpreted to be steeply northwest dipping and southwest striking in the form of high-grade narrow veins with silica-sericite-sulphide alteration, primarily hosted in fresh rock on the contact between mafic dolerite, intrusive porphyry and shale in the hinge of an antiform on the eastern side of a major northwest striking regional fault zone. Interpretation of MMG’s November 2021 exploration extension drill results demonstrate that previous explorers’ drilling primarily targeted shallow oxide zone gold mineralisation in the northeast sector. It is apparent that historical drilling overlooked the potential for significant deeper narrow vein high-grade gold mineralisation in fresh rock. MMG is currently in negotiations with drill companies to complete this substantial second stage drill program, which will likely commence in mid-late January 2022. A plan and three sections from MMG’s November drill holes and the planned drilling are illustrated in figures 1-4.

Analysis of multi-element samples from end-of-hole vertical vacuum drilling to basement (gold results announced 3[rd] November 2021) imply that the Providence Prospect area is traversed by a large northwest striking structure in the southwest sector, with above background trace element values (arsenic, tungsten, molybdenum). Also, previously unidentified high-magnesium diorites (sanukitoids), frequently associated with gold deposits in the Yilgarn Craton, have been identified east of the prospect, from MMG’s multi-element assays, suggesting that the adjacent area contains deep-seated mantle-taping structures.

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Figure 1: Plan of MMG Stage II planned drill program, MMG’s November 2021 drill collars and historical drill collars

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Figure 2: Section 9825N illustrating MMG’s 2021 drill holes and Stage II planned drill program

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Figure 3: Section 9850N illustrating MMG’s 2021 two drill holes and Stage II planned drill program

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Figure 4: Section 9875N illustrating MMG’s 2021 drill hole and Stage II planned drill program

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This announcement has been approved for release by the Board of MMG

For Further Information:

Peretz Schapiro Non-Executive Chairman info@mongergold.com.au

About Monger Gold

Monger Gold Limited is a well-structured listed gold exploration company with projects in Western Australia, ~50KM SE of Kalgoorlie. Through the systematic exploration of its tenements, The Company aims to delineate JORC compliant gold resources, creating value for its shareholders.

Competent Persons Statement

The information in this report that relates to Exploration Results is based on information compiled by Mr Darren Allingham who is an employee of the Company and a Fellow of the Australian Institute of Geoscientists and who has sufficient experience relevant to the styles of mineralisation and the types of deposit under consideration, and to the activity that has been undertaken, 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 Allingham consents to the inclusion in this report of information compiled by him in the form and context in which it appears.

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JORC Code, 2012 Edition – Table 1 report template Section 1 Sampling Techniques and Data

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

Criteria	JORC Code explanation	Commentary	Commentary
	• Nature and quality of sampling
	(e.g., cut channels, random chips,
	or specific specialised industry
	standard measurement tools
	appropriate to the minerals under
	investigation, such as down hole	•	Reverse Circulation (RC) drilling
	gamma sondes, or handheld XRF		was used to obtain samples at 1
	instruments, etc). These examples		metre intervals from the collar to
	should not be taken as limiting the		the end of hole (EOH).
	broad meaning of sampling.	•	An approximately 3-kilogram
	• Include reference to measures		sample was collected from each
	taken to ensure sample		one (1) metre interval down the
	representivity and the appropriate		hole.
	calibration of any measurement	•	The samples were placed into
	tools or systems used.		plastic bags and labelled prior to
Sampling techniques	• Aspects of the determination of mineralisation that are Material to	•	despatch to the laboratory. The samples were dried, crushed
	the Public Report.		and split (where there was
	• In cases where ‘industry standard’		excess sample) and submitted to
	work has been done this would be		the laboratory for analysis.
	relatively simple (e.g., ‘reverse	•	The samples were assayed by
	circulation drilling was used to		MinAnalytical Laboratory
	obtain 1 m samples from which 3		Services Australia Pty Ltd via 2
	kg was pulverised to produce a 30		cycle photon assay (considered
	g charge for fire assay’). In other		to be a superior method to fire
	cases, more explanation may be		assay for gold detection).
	required, such as where there is
	coarse gold that has inherent
	sampling problems. Unusual
	commodities or mineralisation
	types (e.g., submarine nodules)
	may warrant disclosure of detailed
	information.
	• Drill type (e.g., core, reverse
	circulation,open-holehammer,
	rotary air blast, auger, Bangka,
Drilling techniques	sonic, etc) and details (e.g., core diameter, triple or standard tube, depth of diamond tails, face-	•	Reverse Circulation (RC) drilling was used throughout.
	sampling bit or other type, whether
	core is oriented and if so, by what
	_method, etc). _
Drill sample	• Method of recording and assessing core and chip sample recoveries and results assessed.	•	Drill sample recovery was not measured but sample size was observed (visually) throughout the
recovery	• Measures taken to maximise		drilling to ensure sufficient sample
	sample recovery and ensure		size was acquired.

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Criteria	JORC Code explanation	Commentary
	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.
	• Whether core and chip samples
Logging	have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.	•The drill chips from the RC drilling were logged qualitatively using the Company’s logging code and recorded in an Excel spreadsheet. Each 1 metre interval was logged from the collar to the end of hole.
	• Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc)	•The drill chip sample piles were photographed at the completion of each hole.
	photography.
	• The total length and percentage of
	_the relevant intersections logged. _
	• If core, whether cut or sawn and
	whether quarter, half or all cores taken. • If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.	•RC drilling is considered to produce clean, uncontaminated samples. •Approximately 3 kg of sample was taken from each 1-metre interval
Sub- sampling techniques and sample preparation	• 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	and the samples were bagged and labelled for dispatch to the laboratory. •Full QA/QC and chain of custody procedures were undertaken by MinAnalytical, and all results were recorded and dispatched to Monger Gold via the same QA/QC and chain of custody procedures. •Sample sizes were considered to be appropriate for the analytical process being used (2 cycle photon assay).
	material being sampled.
	• The nature, quality and	•The drill chip samples were
	appropriateness of the assaying	submitted to MinAnalytical
Quality of assay data and	and laboratory procedures used and whether the technique is considered partial or total.	Laboratory Services Australia Pty Ltd (“MinAnalytical”) for determination of gold (au) via 2
laboratory	• For geophysical tools,	cycle photon assay technique
tests	spectrometers, handheld XRF	which is considered to be a
	instruments, etc, the parameters	superior analytical technique to
	used in determining the analysis	fire assay for gold.
	including instrument make and	•AllQA/QC and chainofcustody

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Criteria	JORC Code explanation	Commentary
	model, reading times, calibrations	information was provided by
	factors applied and their	MinAnalytical including a
	derivation, etc.	description of the sample
	• Nature of quality control	preparation methodologies.
	procedures adopted (e.g.,	•All sample runs were
	standards, blanks, duplicates,	accompanied by Standard
	external laboratory checks) and	Samples, Blanks and Duplicates
	whether acceptable levels of	to ensure the analytical process
	accuracy (i.e., lack of bias) and	was both precise and accurate.
	_precision have been established. _
	• The verification of significant
	intersections by either
Verification of sampling and assaying	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.	•No verification of the sampling occurred. •The assaying was verified by the use of Standards, Blanks and Duplicates throughout the analytical procedure.
	• Discuss any adjustment to assay
	_data. _
	• Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations	•All coordinate information the collar location of each RC drill hole was obtained via GPS. The grid system used is GDA94.
Location of	used in Mineral Resource	•Topographic control was only
data points	estimation.	provided via GPS readings but
	• Specification of the grid system used.	given the flat nature of the environment this was considered
	• Quality and adequacy of topographic control.	satisfactory for the program of work.
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	•The data spacing was not suitable for any resource estimation as this program was essentially aimed at gathering additional infill information over the Providence and Canista Prospects. •Sample compositing was used
	Reserve estimation procedure(s) and classifications applied. • Whether sample compositing has been applied.	with a 1m interval being the standard interval used and all intervals were given the same weighting when compositing.
	• Whether the orientation of	•Despite the holes being declined
	sampling achieves unbiased	at 60° no orientation data was
Orientation	sampling of possible structures	obtained as it was considered that
of data in relation to geological structure	and the extent to which this is known, considering the deposit type. • If the relationship between the	the short hole lengths (<80m) would not allow any significant deviation to occur. •The drill holes were declined at
	drilling orientation and the	60° to intersect the main
	orientation of key mineralised	mineralised structures as close to

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Criteria	JORC Code explanation	Commentary
	structures is considered to have	a right angle as possible to ensure
	introduced a sampling bias, this	true widths were being
	should be assessed and reported	encountered.
	if material.
		•QA/QC and chain of custody
Sample	• The measures taken to ensure	procedures were established with
security	sample security.	MinAnalytical as part of their service agreement.
Audits or reviews	• The results of any audits or reviews of sampling techniques	•Not applicable.
	_and data. _

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,	•The specific tenements are
tenement and land tenure status	location and ownership including agreements or material issues with third parties such as joint	outlined in this Announcement in Table 1 •The tenements that make up the
	ventures, partnerships, overriding	Providence and Canista
	royalties, native title interests,	Prospects can also be found in
	historical sites, wilderness or	on the DMIRS public spatial
	national park and environmental	datasets or in the Company’s
	settings.	Independent Geologist Report or
	• The security of the tenure held at	Prospectus document.
	the time of reporting along with
	any known impediments to
	obtaining a licence to operate in
	_the area. _
Exploration	• Acknowledgment and appraisal	•Historical work has not been
done by other parties	of exploration by other parties.	assessed or appraised in this Announcement. All historic work
		has been outlined in the
		Company’s Independent
		Geologists Report
		•Exploration has been conducted
		historically by:
		- Silver Lake Resources Ltd
		- Metaliko Resources Limited
		- Integra Mining
		- Cortona Resources Limited
		- Heron Resources Limited
		- SIPA Exploration NL
		- AngloGold Australia Limited
		•All relevant WAMEX open files.
Geology	• Deposit type, geological setting	•Monger Gold Limited are located
	and style of mineralisation.	within the Eastern goldfield’s
		greenstone belts. Mesothermal
		shear zone hosted gold deposits
		are the explorationand

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Criteria	JORC Code explanation	Commentary	Commentary
			development targets.
Drill hole	• A summary of all information	•	Drill hole collars were located
Information	material to the understanding of		using hand held GPS.
	the exploration results including a	•	The Easting, Northing, RL, Dip
	tabulation of the following		and Azimuth details are fully
	information for all Material drill		outlined in Table 1 in this
	holes:		Announcement.
	o easting and northing of the
	drill hole collar
	o elevation or RL (Reduced
	Level – elevation above sea
	level in metres) of the drill hole
	collar
	o dip and azimuth of the hole
	o down hole length and
	interception depth
	o hole length.
	• If the exclusion of this information
	is justified on the basis that the
	information is not Material and
	this exclusion does not detract
	from the understanding of the
	report, the Competent Person
	should clearly explain why this is
	_the case. _
Data	• In reporting Exploration Results,	•	All 1m samples were granted the
aggregation methods	weighting averaging techniques, maximum and/or minimum grade		same weighting where average grades are presented over
	truncations (e.g., cutting of high		multiple 1m interval lengths.
	grades) and cut-off grades are
	usually Material and should be
	stated.	•	Compositing was used only
	• Where aggregate intercepts		where there were continuous
	incorporate short lengths of high-		gold grades over some intervals.
	grade results and longer lengths		Each 1m sample length was
	of low-grade results, the		given equal weighting. No short
	procedure used for such		or long intervals were used.
	aggregation should be stated and
	some typical examples of such
	aggregations should be shown in
	detail.	•	Not relevant
	• The assumptions used for any
	reporting of metal equivalent
	_values should be clearly stated. _
Relationship	• These relationships are	•	All intercepts quoted in this report
between mineralisation widths and intercept lengths	particularly important in the reporting of Exploration Results. • If the geometry of the mineralisation with respect to the drill hole angle is known, its	•	are quoted as down holes lengths. The holes were declined at 60° to ensure that they cross-cut the main mineralising structures as
	nature should be reported.		close to right angles as possible
	• If it is not knownand only the		toprovide true width

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Criteria	JORC Code explanation	Commentary
	down hole lengths are reported,	intersections.
	there should be a clear statement
	to this effect (e.g., ‘down hole
	_length, true width not known’). _
Diagrams	• Appropriate maps and sections	•Appropriate maps are included in
	(with scales) and tabulations of	this ASX announcement.
	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. _
Balanced	• Where comprehensive reporting	•Only intercepts that are
reporting	of all Exploration Results is not	significant and relevant to gold,
	practicable, representative	silver and copper are included in
	reporting of both low and high	this announcement.
	grades and/or widths should be
	practiced avoiding misleading
	_reporting of Exploration Results. _
Other	• Other exploration data, if	•Not relevant for this
substantive exploration data	meaningful and material, should be reported including (but not limited to): geological	Announcement.
	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. _
Further work	• The nature and scale of planned	•Given the encouraging results
	further work (e.g., tests for lateral	(gold grades) from the in-fill RC
	extensions or depth extensions	drilling program a more extensive
	or large-scale step-out drilling).	follow-up RC drilling program is
	• Diagrams clearly highlighting the	being planned and designed.
	areas of possible extensions,	•Geological structures are not well
	including the main geological	understood at this stage and are
	interpretations and future drilling	still being studied.
	areas, provided this information
	_is not commercially sensitive. _

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