PACGOLD LIMITED — Interim / Quarterly Report 2021

Oct 25, 2021

26th October 2021

PACGOLD QUARTERLY ACTIVITY REPORT

For the three-month period ending 30th September 2021

Alice River Gold Project

• A multidiscipline exploration and drilling programme commenced at the Company's 100% owned Alice River Gold Project
• Field mapping and rock chip geochemistry with high-grade results returned up to 460g/t Au
• New, high-resolution IP geophysics survey highlights compelling new targets along a >7km long shear zone encompassing the historical open pit mine
• Two drill rigs (diamond and RC) currently drilling on the Central and Southern Targets on both MLs and EPM areas with results expected in November

Corporate

• Pacgold commenced trading on the ASX on 8th July with the code "PGO"
• Fully subscribed Initial Public Offer (IPO) raised $6 million, well supported by institutional, sophisticated, and retail investors

Gold exploration company, Pacgold Limited ("PGO", "Pacgold" or the "Company") is pleased to provide the Company's Quarterly Activities Report for the three-month period ending 30th September 2021.

Pacgold commenced trading on the Australian Securities Exchange (ASX) on 8th July, following completion of a fully subscribed IPO which raised $6 million through the issue of 24,000,000 shares at an issue price of $0.25 per share.

Pacgold is primarily focused on progressing its key asset, the Alice River Gold Project (the "Project") in North Queensland. The Project comprises a portfolio of eight mining leases and five exploration permits in a highly prospective gold terrain that has been previously underexplored. Figure 1. Location of Alice River Gold Project

Pacgold has defined compelling high-grade gold targets, along a 30km corridor which is centred on a historical producing goldfield.

Pacgold's initial focus will be on three priority targets covering 7km of the gold bearing shear zone:

• o Central Target: Targets along strike from open pit mine and down-plunge extensions to high-grade gold mineralisation - Drilling in progress.
• o Southern Target: Broad untested gold surface geochemical anomalies 1.8km x 500m in area Drilling in progress.
• o Northern Target: 2.5km-long extension to the Alice River Shear Zone under shallow cover, confirmed with new IP geophysics.

Figure 2: Alice River Gold Project (left) showing the prospective 30km long shear zone with insert figure (right).

Geological Mapping and Rock Sampling

Detailed geological mapping and rock geochemical sampling was completed over the Central and Southern Targets defining extensive zones of quartz vein/breccia over several metres width. Two main vein sets have been defined, trending N-S and NW-SE along an exposed strike length of 3.8km.

Rock chip sampling confirmed both vein sets are gold mineralised and the system remains open to the north, north-west and south, where the veins are interpreted to continue along strike, concealed beneath shallow cover. The most extensive zone of veining mapped in outcrop is within and adjacent to the historical, high-grade, AQ open pit. Sampling returned assay results up to 28.2g/t Au and 2.7g/t Ag from NW-SE trending veins immediately west of the historical AQ open pit on the Central Target. Results up to 460g/t Au and 82g/t Ag (with low As 60ppm and Sb 19ppm) were returned from a 0.5m channel sample from veining exposed on the Southern Target and represent examples of bonanza style quartz veining in an area with very limited historical shallow drilling.

Induced Polarisation Geophysical Survey

Pacgold completed a large high-resolution IP geophysical survey (pole-dipole, 25m spaced electrodes, total of 25.5 line km of survey) over the Alice River shear zone, which encompasses the Northern, Central and Southern Targets. Results from the survey define a resistivity 'low' corridor which defines the prospective Alice River shear zone over 7km and connecting the three main gold-mineralised target areas.

3D inversion modelling of the detailed IP survey data has been completed over 3.8km of strike of the Alice River shear zone encompassing the Central and Southern Targets. Figure 3 details the 3D resistivity data modelling and Figure 4 shows an oblique view of the 2D resistivity data modelled sections. Interpretation of the IP geophysical modelling highlights an exceptionally strong correlation between pronounced linear resistivity lows and the Alice River shear zone, confirming the IP data can be confidently used as a predictive targeting tool.

Figure 3: Horizontal slice through the IP Resistivity geophysics 3D model (45m below surface), with resistivity lows (blue-purple) defining the Alice River Shear Zone.

Two detailed pole-dipole IP survey lines were completed over the Northern Target on regional spaced lines approximately 1.1km apart, with data from these lines clearly defining the northern extent (2.2km) of the Alice River shear zone. This section of the regional shear has been tested previously by limited shallow scout drilling over approximately 200m of strike, returning a maximum result of 6m @ 4.5g/t Au from 22m (ARAT282). Refer to Figure 4 showing an oblique view of the 2D resistivity data modelled sections.

Figure 4: Oblique view (looking north) of 2D resistivity IP section models with resistivity lows (blue-purple) defining the Alice River Shear Zone.

Drilling Programme

Diamond drilling commenced on the Project during the Quarter, with a total of 4 diamond holes completed for 684m within the Central Target (ML's) to the end of September. A second drilling rig (RC) arrived at site in October and has commenced on the Central and Southern Targets (EPM's and ML's) with both rigs to continue until December, with approximately 6,500m of drilling (1,500m diamond and 5,000m RC) planned.

Figure 5: Diamond and RC drilling on Central Target.

The first diamond hole (ARDH001) was completed beneath the historical open pit and represents the first diamond drill hole on the project for 25 years. The drillhole intersected a 25m downhole wide zone of intense sulphidic hydrothermal breccia and quartz veining with visible gold mineralisation associated with late-stage crystalline quartz veins. A review of the drill core with specialist technical consultants highlights similarities with the Intrusion Related Gold System (IRGS) model for the Donlin Creek Gold system in Alaska (39Moz). Recognition of these similarities supports the potential for high-grade gold beneath the current level of exposure of the Alice River Gold Project. Results for the drilling completed to date are pending and will be reported when available.

Figure 6: Long section through the Central Target

Figure 7: Coarse visible gold intersected in quartz beneath the historical open pit, Central Target (drillhole ARDD001, 90.2m), assays pending.

Page 7 of 8

Results to Date

Results from the 3D modelling of the IP geophysics survey and the geological mapping strongly support the interpretation of a structural link between the Northern, Central and Southern Targets, defining a potential gold system >7km length and open along strike and at depth. The majority of the gold system is concealed beneath shallow cover sediments and remains undrilled in most areas away from exposed vein outcrops.

A geological review of the drilling supports an IRGS model similar to the Donlin Creek gold deposit,supporting potential for high-grade gold mineralisation beneath the current level of exposure at the Alice River Gold Project. Assay results from the drilling completed to date are pending.

Next Steps

RC and diamond drilling is planned to continue at the Project as part of a 6,500m programme at the Central and Southern Targets.

Corporate

Trading Commenced on ASX

Pacgold commenced trading on the Australian Securities Exchange (ASX) in July following the completion of a fully subscribed IPO which raised $6 million through the issue of 24,000,000 shares at an issue price of $0.25 per share.

Taylor Collison was the lead manager for the IPO.

Approved by the Board of Pacgold Limited.

For more information:

Tony Schreck Managing Director tschreck@pacgold.com.au +61 (0) 419 683 196

Victoria Humphries Media & Investor Relations victoria@nwrcommunications.com.au +61 (0) 431 151 676

Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow report

Name of entity

PACGOLD LIMITED

ABN Quarter ended ("current quarter")

30 636 421 782 30 SEPTEMBER 2021

	Consolidated statement of cash flows	Current quarter$A'000	Year to date(3months)$A'000
1.	Cash flows from operating activities
1.1	Receipts from customers	-	-
1.2	Payments for
	(a)exploration & evaluation (if expensed)	-	-
	(b)development	-	-
	(c)production	-	-
	(d)staff costs	-	-
	(e)administration and corporate costs	(387)	(387)
1.3	Dividends received (see note 3)	-	-
1.4	Interest received	-	-
1.5	Interest and other costs of finance paid	-	-
1.6	Income taxes paid	-	-
1.7	Government grants and tax incentives	-	-
1.8	Other (provide details if material):	-	-
	GST refunds	157	157
1.9	Net cash from / (used in) operatingactivities	(230)	(230)

2.		Cash flows from investing activities
2.1		Payments to acquire:
	(a)	entities	-	-
	(b)	tenements	-	-
	(c)	property, plant and equipment	(9)	(9)
	(d)	exploration & evaluation (if capitalised)	(1,028)	(1,028)
	(e)	investments	-	-
	(f)	other non-current assets	-	-

	Consolidated statement of cash flows	Current quarter$A'000	Year to date(3months)$A'000
2.2	Proceeds from the disposal of:
	(a)entities	-	-
	(b)tenements	-	-
	(c)property, plant and equipment	-	-
	(d)investments	-	-
	(e)other non-current assets	-	-
2.3	Cash flows from loans to other entities	-	-
2.4	Dividends received (see note 3)	-	-
2.5	Other (provide details if material)	-	-
2.6	Net cash from / (used in) investingactivities	(1,037)	(1,037)

3.	Cash flows from financing activities
3.1	Proceeds from issues of equity securities(excluding convertible debt securities)	1,085	1,085
3.2	Proceeds from issue of convertible debtsecurities	-	-
3.3	Proceeds from exercise of options	-	-
3.4	Transaction costs related to issues of equitysecurities or convertible debt securities	(547)	(547)
3.5	Proceeds from borrowings	-	-
3.6	Repayment of borrowings	-	-
3.7	Transaction costs related to loans andborrowings	-	-
3.8	Dividends paid	-	-
3.9	Other (provide details if material)	-	-
3.10	Net cash from / (used in) financingactivities	538	538

4.	Net increase / (decrease) in cash andcash equivalents for the period
4.1	Cash and cash equivalents at beginning ofperiod	5,377	5,377
4.2	Net cash from / (used in) operatingactivities (item 1.9 above)	(230)	(230)
4.3	Net cash from / (used in) investing activities(item 2.6 above)	(1,037)	(1,037)
4.4	Net cash from / (used in) financing activities(item 3.10 above)	538	538

	Consolidated statement of cash flows	Current quarter$A'000	Year to date(3months)$A'000
4.5	Effect of movement in exchange rates oncash held	-	-
4.6	Cash and cash equivalents at end ofperiod	4,648	4,648

5.	Reconciliation of cash and cashequivalentsat the end of the quarter (as shown in theconsolidated statement of cash flows) to therelated items in the accounts	Current quarter$A'000	Previous quarter$A'000
5.1	Bank balances	4,648	5,377
5.2	Call deposits	-	-
5.3	Bank overdrafts	-	-
5.4	Other (provide details)	-	-
5.5	Cash and cash equivalents at end ofquarter (should equal item 4.6 above)	4,648	5,377

6. Payments to related parties of the entity and their associates

6.1 Aggregate amount of payments to related parties and their associates included in item 1

Current quarter$A'000
	84
	-

6.2 Aggregate amount of payments to related parties and their associates included in item 2

Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity report must include a description of, and an explanation for, such payments

Payments to related parties includes $56,250 of consulting fees paid to Goldfind Exploration Pty Ltd, an entity associated with director Anthony Schreck, and non-executive director fees and superannuation.

• 7. Financing facilities Note: the term "facility' includes all forms of financing arrangements available to the entity. Add notes as necessary for an understanding of the sources of finance available to the entity.

7.	Financing facilitiesNote: the term "facility' includes all forms of financingarrangements available to the entity.Add notes as necessary for an understanding of thesources of finance available to the entity.	Total facilityamount at quarterend$A'000	Amount drawn atquarter end$A'000
7.1	Loan facilities	-	-
7.2	Credit standby arrangements	-	-
7.3	Other (please specify)	-	-
7.4	Total financing facilities	-	-

7.5 Unused financing facilities available at quarter end -

7.6 Include in the box below a description of each facility above, including the lender, interest rate, maturity date and whether it is secured or unsecured. If any additional financing facilities have been entered into or are proposed to be entered into after quarter end, include a note providing details of those facilities as well.

Not applicable

8.	Estimated cash available for future operating activities	$A'000
8.1	Net cash from / (used in) operating activities (Item 1.9)	230
8.2	Capitalised exploration & evaluation (Item 2.1(d))	1,028
8.3	Total relevant outgoings (Item 8.1 + Item 8.2)	1,258
8.4	Cash and cash equivalents at quarter end (Item 4.6)	4,648
8.5	Unused finance facilities available at quarter end (Item 7.5)	-
8.6	Total available funding (Item 8.4 + Item 8.5)	4,648
8.7	Estimated quarters of funding available (Item 8.6 divided byItem 8.3)	3.7

• 8.8 If Item 8.7 is less than 2 quarters, please provide answers to the following questions:
  • 1. Does the entity expect that it will continue to have the current level of net operating cash flows for the time being and, if not, why not?

Answer: N/A

1. Has the entity taken any steps, or does it propose to take any steps, to raise further cash to fund its operations and, if so, what are those steps and how likely does it believe that they will be successful?

Answer: N/A

1. Does the entity expect to be able to continue its operations and to meet its business objectives and, if so, on what basis?

Answer: N/A

Compliance statement

• 1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.
• 2 This statement gives a true and fair view of the matters disclosed.

Date: 26 October 2021

Authorised by: Board of Directors (Name of body or officer authorising release – see note 4)

Notes

• 1. This quarterly cash flow report and the accompanying activity report provide a basis for informing the market about the entity's activities for the past quarter, how they have been financed and the effect this has had on its cash position. An entity that wishes to disclose additional information over and above the minimum required under the Listing Rules is encouraged to do so.
• 1. If this quarterly cash flow report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. If this quarterly cash flow report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report.
• 1. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.
• 1. If this report has been authorised for release to the market by your board of directors, you can insert here: "By the board". If it has been authorised for release to the market by a committee of your board of directors, you can insert here: "By the [name of board committee – eg Audit and Risk Committee]". If it has been authorised for release to the market by a disclosure committee, you can insert here: "By the Disclosure Committee".
• 1. If this report has been authorised for release to the market by your board of directors and you wish to hold yourself out as complying with recommendation 4.2 of the ASX Corporate Governance Council's Corporate Governance Principles and Recommendations, the board should have received a declaration from its CEO and CFO that, in their opinion, the financial records of the entity have been properly maintained, that this report complies with the appropriate accounting standards and gives a true and fair view of the cash flows of the entity, and that their opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively.