REACH RESOURCES LIMITED — Capital/Financing Update 2020

Oct 1, 2020

ASX ANNOUNCEMENT/MEDIA RELEASE

2 October 2020

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Drilling underway at Primrose

Cervantes Corporation Ltd (ASX:CVS) (The Company) is pleased to advise that a drilling programme has commenced at the Primrose Project at Paynes Find.

Three areas are to be drilled:

1. Check and limited infill drilling at Blue Heaven. One historic hole will be twinned to confirm the accuracy and repeatability of that drilling. Other holes are designed to test critical areas in support of assessing the Blue Heaven area for a JORC(2012) Mineral Resource. This work is in support of the exploration target of 170,000 to 250,000 tonnes at 2.2 to 4.5 g/t gold, as announced on 16[th] July 2020,

2. Close spaced drilling in the Pansy Pit to assess the near surface gold mineralisation potential in that historic pit, and

3. Exploration drilling of an as yet untested surface geochemical target in an area of no historic hard rock workings. The area had been mined for alluvial gold. This target may represent a hard rock source to that gold.

This drilling campaign will entail 20 to 34 RC holes for 500 to 800m, depending on results. Assays are not expected for at least six weeks, given the activity currently being experienced in the gold exploration industry.

Cervantes proposes to use the results of this drilling to assess near term exploitation of any shallow mineralisation defined and underpin discussions with third party toll treatment mills.

A high resolution Digital Elevation Model drone survey was undertaken in the areas being drilled in support of this work.

The Company also intends to use the results of the Blue Heaven drilling to guide its proposed campaign to test the deeper exploration target at the Primrose Gold Project. This target (Figure 1) was identified by the globally recognised geological consultancy, CSA Global, but never tested.

The deeper target may represent an Edna May mineralisation style. The highly respected Professor and State Government Geologist, Mr Edward de Courcy Clarke, whom the Earth Science Museum at UWA was named in honour of, carried out detailed assessment of the Paynes Find Goldfield in 1920, and commented:

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Figure 1 Primrose Shear conceptual gold target. The Paynes Find historic gold mines occur on secondary structures associated with this shear.

“The goldfield contains epidiorite, hornblende schist, serpentine, and foliated quartz porphyries, in addition to hornblende-biotite gneiss forming the matrix of the ore body. The gold quartz veins are found mainly in the epidiorites and hornblende schists, and only rarely in the serpentine. The gold bearing gneiss is east of the greenstone belt, and are of two lithological types 1) biotite dominant with quartz parallel to the foliation planes 2) mica subordinate to the hornblende .” (Mindat: Paynes Find Goldfield (Goodingnow)). He compares the geology as similar to Westonia (Edna May Mine) elsewhere in the State.

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Photo 1 Drilling in the Pansy Pit.

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Photo 2 Drilling in the Pansy Pit.

Cervantes is extremely pleased with ongoing assessment of the project to date. The current areas of the project being assessed make up only some 5% of the overall project area. The Company continues to assess a number of other projects while developing the Primrose project and will ideally be in a position to provide continuous good news to shareholders in the relatively near future.

This announcement has been authorised for release by the Board of Cervantes Corporation Limited.

For further information, please contact:

Collin Vost Chairman (08) 6436 2300

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