PRODIGY GOLD NL — Capital/Financing Update 2021

Jul 25, 2021

ASX ANNOUNCEMENT / MEDIA RELEASE

ASX: PRX

26 July 2021

Diamond Drilling Underway at Reward Copper Gold Prospect

KEY POINTS

• Drilling continues at Reynolds Range with a 260m diamond drillhole underway to test the Reward Copper Gold Prospect
• The Reward Prospect contains a 400m long EM conductor located 350m to the southeast of the historic Reward Copper Mine that averaged 11% Cu
• Diamond rig to move to the PHD Prospect within the Hyperion Project following completion of the Reward drillhole

Prodigy Gold NL (ASX: PRX) ('Prodigy Gold' or the 'Company') is pleased to advise that diamond drilling is underway at the Reward Copper Gold Prospect ('Reward') within the Company's Reynolds Range Project in the Northern Territory.

The 260m diamond drillhole is targeting the Reward Copper Gold Prospect which has demonstrated strong potential to host Au-Cu-Pb and Zn mineralisation. The drillhole will test an EM conductor 50m below surface and 400m long located 350m southeast from the historic Reward Copper Mine.

Management Commentary

"We are pleased to have diamond drilling underway at the Reward Prospect with this program set to test an EM conductor highlighted in a recent RC drillhole. Reward is an exciting target located along trend from the historic Reward Copper Mine which produced copper at an average grade of 11%.

Reynolds Range covers 394km2 of highly prospective ground tenure including historic copper mining and has gold anomalism extending for 14km along the Stafford gold trend. Our team has completed a significant amount of work at Reynolds Range over the past 12 months which has greatly improved our understanding of the project area and assisted with refining priority targets.

Diamond drilling at Reward is expected to be completed later this month. Follow-up diamond drilling will commence at the PHD Gold Prospect within the Hyperion Project straight after we complete the Reward hole, and drilling at the Buccaneer Resource will also be undertaken this quarter."

Reward Prospect Background

Reward is considered prospective for copper, gold and silver mineralisation and is located approximately 63km west of the Stuart Highway. The Prospect has some shallow copper oxide workings from the 1950's era and abundant malachite, azurite and chalcocite occurs associated with a brecciated shear zone and sulphidic sediments (Figure 3). This style of polymetallic mineralisation

has similarities to the nearby Jervois Deposit, 350km to the east, which hosts 0.43 Mt copper and 21.4 Moz silver, 0.16 Mt lead/zinc and 176 koz Au (ASX KGL: 2 December 2020).

Figure 1 - Diamond drilling currently underway at Reward Target July 2021

RC and AC drilling under the Reward workings by McMahon Constructioni in 1988 returned 4m at 1.4% Cu, 71.2g/t Ag, 1.2g/t Au and 1.8% Zn from 16m (hole I, Figure 2); and 6m at 2.10g/t Au from 15m (hole C, Figure 2). This historic assay data should be treated with caution as no original data records are available. Confirmatory rock chip and soil sampling by Prodigy Gold in the vicinity of the workings returned results including >20% Cu, 200g/t Ag and 2g/t Au (ASX: 13 May 2010) supporting the original drill results and the presence of these metals in system.

An EM survey by Prodigy Gold indicated a conductor 50m below the surface and 400m long located 350m to the southeast of the Reward workings. The Prospect was opportunistically drilled with a single RC hole (RWRC2102 Figure 2) in May 2021 while RC drilling was completed on other targets at Reynolds Range. Subsequent downhole EM completed on the RC hole defined a high priority off-hole conductor. The diamond hole underway is modelled to intercept the conductor at 230m downhole, approximately 200m vertical below surface.

Figure 2: Map of Reward showing historic mine workings with best assay results and EM plate to the south with diamond hole currently underway (ASX: 13 May 2010)

Figure 3: Malachite and azurite mineralisation from historic mine workings at Reward

Reynolds Range Project Background

The Project is accessed from the Stuart Highway 90km north of Alice Springs. Proximity to infrastructure is good, with targets located between 20km and 120km off the NT highway, railway line (Ghan) and the NT gas pipeline.

These projects have excellent access and land ownership is a combination of pastoral lease and aboriginal land (ALRA). Prodigy Gold has negotiated access and permits to the land. The Project comprises 3 exploration licences, EL23655, EL23888 and EL28083. All activity in the current program is located on EL23888, wholly owned by Prodigy Gold.

Figure 4: Reynolds Range targets

Authorised for release by Prodigy Gold's Chairman, Tommy McKeith.

For further information contact:

Matt Briggs Managing Director +61 8 9423 9777

About Prodigy Gold NL

Prodigy Gold has a unique greenfields and brownfields exploration portfolio in the proven multimillion-ounce Tanami Gold Province. Prodigy Gold remains highly active in its systematic exploration approach and following the removal of COVID-19 restrictions intends to continue exploration prioritising on:

• drilling targets on its Tanami and Reynolds Range Projects
• systematic evaluation of high potential early stage targets
• joint ventures to expedite discovery on other targets

Competent Person's Statement

The information in this announcement relating to exploration targets and exploration results are based on information reviewed and checked by Mr Matt Briggs who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Briggs is a full time employee of Prodigy Gold NL and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 edition of the "Australasian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves". Mr Briggs consents to the inclusion in the documents of the matters based on this information in the form and context in which it appears.

Prodigy Gold NL confirms that it is not aware of any new information or data that materially affects the information included in the market announcement and that all material assumptions and technical parameters underpinning the estimates included in referenced previous market announcements continue to apply and have not materially changed.

Cautionary Statement Relating to Reward Historical Production Data

The Production details for the Reward Mine are referenced from publicly available data sources. The source and date of the production data reported has been reported in the Northern Territory Geological Survey records reporting production from the Reward Gold Mine in 1953. DITT digital records include open file Annual Reports and data pertaining to the exploration and development efforts of previous operators. The historical production data have not been reported in accordance with the JORC Code 2012. A Competent Person has not done sufficient work to disclose the historical production data in accordance with the JORC Code 2012.

i Report on E.L. 5288 Program and Expenditure for Year 1 23.10.1987 to 22.10.1988 CR89/007 https://geoscience.nt.gov.au/gemis/ntgsjspui/bitstream/1/65942/1/CR19890007.pdf