REACH RESOURCES LIMITED — Capital/Financing Update 2021

Sep 22, 2021

ASX ANNOUNCEMENT/MEDIA RELEASE 23 September 2021

DIRECTORS:

Mr Robert Downey Chairman

Mr Marcus Flis Technical Director

Mr Matt O'Kane Non Executive Director

CAPITAL STRUCTURE:

Shares on issue:

Unlisted Options expiring 31/12/22: 25,750,000

Unlisted Options expiring

Listed Options expiring 20/5/24: 1,134,002,075

Registered Office:

Level 4, 216 St Georges Terrace, Perth, WA, 6000

Postal address: Level 4, 216 St Georges Terrace, Perth, WA, 6000

Ph: +61 (8) 6268 2641 admin@cervanantescorp.com.au

www.cervantescorp.com.au

ASX : CVS First assays confirm gold target at Primrose Gold Project

Key points:

• First batch of assays received from drilling completed in July
• Significant gold intercepts include (down hole widths, true width unknown):

1,554,012,464 3m @ 8.85g/t Au in hole CVSRC047 from 75m 3m @ 3.33g/t Au in hole CVSRC038 from 15m 3m @ 3.28g/t Au in hole CVSRC045 from 24m 1m @ 26.3g/t Au in hole CVSRC038 from 93m 3m @ 3.76g/t Au in hole CVSRC039 from 82m 1m @ 6.85g/t Au in hole CVSRC039 from 122m 1m @ 21.73g/t Au in hole CVSRC040 from 34m 3m @ 3.81g/t Au in hole CVSRC042 from 66m

• 31/12/23: 18,000,000 Verification holes drilled within the Blue Heaven Exploration Target confirm historic intercepts
  • Holes drilled to the west of the known Blue Heaven gold deposit have extended mineralisation in that direction
  • Holes drilled along strike of the known gold lodes in the Exploration Target indicates potential to extend mineralisation
  • Only 399 assays have been received to date, a further 2,900 samples are still pending

Mr Downey, Cervantes' Chairman, remarked: "We are delighted with these results. Our drilling campaign was designed to advance the Blue Heaven exploration target, with the view of defining a resource. We are very encouraged by these significant intersections and eagerly anticipate receipt of the next batch of assays. Cervantes' primary goal remains to define a resource and define new areas that have the potential to significantly increase the areas gold endowment".

Cervantes Corporation Limited (ASX:CVS) is pleased to announce that the first batch of assays from the RC drilling completed on the Blue Heaven Prospect in the Primrose Gold Project in late July have been received. Approximately 400 assays from a total of 3,300 samples have been completed.

Assaying of the remaining RC samples is ongoing. Diamond cores not previously assayed are being scanned and cut in preparation for assaying.

Figure 1 Primrose Gold Project location.

Blue Heaven

On 30 July 2021, Cervantes announced the completion of 47 RC holes for 3,060 metres on the Primrose Gold Project (Figure 1). Eight RC holes were verification (twinned) holes of historic RC drill holes on the Blue Heaven Prospect. These were to support the conversion of the Exploration Target 1of 170,000 to 520,000 tonnes at 2.2 to 4.5g/t gold (ASX announcement, 16 July, 2020) to a JORC resource estimate. The potential quantity and grade of an Exploration Target estimate is conceptual in nature, as there has been insufficient reliable exploration data to estimate a Mineral Resource and it is uncertain if further exploration will result in the estimation of a Mineral Resource.

An additional 33 holes were drilled to in-fill areas within the Exploration Target zone and to test for extensions of the known gold mineralisation.

Figure 2 is a summary of the location of these holes, while Table 1 tabulates collar locations. These were surveyed by DGPS to better than 1cm accuracy.

Sampling was done on three metre composites except where drilling duplicated historically defined gold lode positions where one metre sampling was used. Significant three metre samples will be resubmitted for assaying at one metre intervals.

1 Mr Philip Jones MAusIMM is the Competent Person responsible for the exploration target. The Company is not aware of any new information or data that materially affects the information included in the ASX release of 16th July 2020 and the form and context in which the exploration target was presented have not been materially modified.

Figure 2 Locations of holes drilled during the July, 2021 campaign.

Discussion of results to date

Of the 399 assays received, only 7 were below detection limited with the average of all assays being 0.3909g/t Au, reflecting the highly auriferous nature of this prospect. Gold intersections over 1g/t are summarised in Table 2. Over 2,600 assays are yet to be received.

The correlation between gold mineralisation intersected in the new holes and the historic holes that were twinned is variable, reflecting the nuggety style of the gold mineralisation here. In some cases, new gold lines have been defined, some of which is to the west of the Primrose Shear and represents previously unrecognised mineralisation. The western side of the shear has been poorly explored in the past and represents potential for additional gold discovery. This will be further assessed once all assays are received.

On the eastern side of the Primrose Shear gold mineralisation is hosted in late stage steeply west dipping quartz veins hosted by the Paynes Find Gneiss. The gold lodes occur as steeply southerly plunging shoots within these veins. On the western side of the shear, the gold appears to be hosted in sheared ultramafics. The controls on this style are yet to be determined (Figure 3).

Figure 3 Drill cross section 6764015N. Refer to Figure 2 for new drill hole locations. This is a preliminary interpretation pending receival of all results.

Table 1 Collar locations and statistics. CVSRC083 surveyed by hand held GPS only.

HOLE ID	Easting (m)	Northing	Elevation	Total	Nominal	Nominal
	GDA94	(m) GDA94	AHD71	Depth (m)	Inclination	Azimuth
	MGA Zone	MGA Zone
	50	50
CVSRC038	566740.18	6764004.54	351.708	102	-60	60
CVSRC039	566766.28	6764015.28	350.981	138	-60	90
CVSRC040	566835.74	6764025.24	349.352	42	-60	90
CVSRC041	566749.34	6763983.06	351.973	78	-60	90
CVSRC042	566792.51	6763954.77	351.528	126	-60	90
CVSRC043	566855.11	6763902.02	350.661	54	-60	90
CVSRC044	566825.92	6763874.59	352.664	78	-60	90
CVSRC045	566873.82	6763825.46	351.451	78	-60	90
CVSRC046	566938.85	6763875.11	348.526	90	-60	90
CVSRC047	567046.78	6763788.28	346.356	78	-60	90
CVSRC048	567003.89	6763789.09	346.663	78	-60	90
CVSRC049	567013.18	6763809.69	346.883	78	-60	90
CVSRC050	567024.13	6763836.68	346.916	90	-61	40
CVSRC051	566992.72	6763831.04	347.246	97	-60	90
CVSRC052	567018.98	6763875.84	347.797	90	-60	90
CVSRC053	566997.15	6763935.67	348.556	102	-60	90
CVSRC054	566853.92	6764013.40	348.120	42	-60	38
CVSRC055	566848.62	6764001.89	348.306	48	-60	86
CVSRC056	566799.88	6764012.44	350.372	90	-60	90
CVSRC057	566716.62	6764098.57	350.487	90	-60	90
CVSRC058	566747.51	6764168.06	349.943	78	-60	90
CVSRC059	566771.54	6764222.46	349.102	36	-60	90
CVSRC060	566725.70	6764227.74	349.431	84	-60	90
CVSRC061	566758.90	6764286.46	348.613	84	-60	90
CVSRC062	566715.46	6764287.97	348.379	96	-60	90
CVSRC063	566775.05	6764298.79	348.462	30	-60	90
CVSRC064	566773.65	6764303.85	348.358	30	-60	90
CVSRC065	566772.68	6764309.34	348.255	30	-60	90
CVSRC066	566772.37	6764313.98	348.165	30	-60	90
CVSRC067	566769.96	6764319.81	348.125	36	-60	90
CVSRC068	566652.63	6764370.91	349.364	156	-60	337
CVSRC069	566643.15	6764196.28	349.809	30	-60	90
CVSRC070	566609.33	6764205.84	349.847	48	-60	90
CVSRC071	566576.05	6764219.06	349.872	108	-60	90
CVSRC072	566571.22	6764237.77	349.921	90	-60	90
CVSRC073	566577.60	6764559.78	351.828	36	-60	90
CVSRC074	566576.61	6764565.00	351.699	36	-60	90
CVSRC075	566576.48	6764569.81	351.692	36	-60	90
CVSRC076	566575.37	6764575.01	351.643	36	-60	90
CVSRC077	566572.63	6764578.49	351.739	36	-60	90
CVSRC078	566512.01	6764680.36	353.151	30	-60	56
CVSRC079	566575.91	6764133.15	350.541	48	-60	90
CVSRC080	566580.23	6764146.04	350.379	78	-60	90
CVSRC081	566496.80	6764163.68	350.917	216	-60	90
CVSRC082	567022.91	6764290.05	346.172	30	-60	90
CVSRC083	567396	6763710	340	30	-60	60
CVSRC084	567464.41	6763478.19	340.397	30	-60	90

		Table 2 Significant gold intersections received to date.
Hole	Interval	Gold grade	From	Withinbroader	GoldGrade	From
	m	g/t	m	interval m	g/t	m
CVSRC038	3	3.330	15
	1	2.309	90
	1	26.302	93	2	14.040	93
	1	1.020	98
CVSRC039	1	1.000	68
	3	3.755	82	6	2.601	82
	1	6.846	122
CVSRC040	1	21.726	34	3	7.960	34
	1	2.414	41	2	1.487	40
CVSRC041	3	1.871	54
CVSRC042	6	0.791	30
	3	3.810	66
CVSRC044	3	1.185	51
CVSRC045	6	1.435	12
	3	3.275	24	6	2.054	24
	3	1.320	33
CVSRC047	3	1.354	27
	3	8.850	75
CVSRC048	3	1.156	69	6	0.894	69

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

-ENDS-

For Further information please contact:

Chris Achurch Company Secretary (08) 6268 2641 admin@cervantescorp.com.au

About Cervantes Corporation Limited

Cervantes is an emerging gold explorer and aspiring gold miner. It has built up a portfolio of gold properties in a well-known and historically producing gold district with a strategy to apply novel exploration and development thinking. The company is committed to maximising shareholder value through the development of those opportunities.

About the Primrose Project

The Primrose Project covers in excess of 8km of the highly gold mineralised Primrose Shear in the Murchison District of the Eastern Goldfields, Western Australia. Over 37 gold mines operated in this field from 1911 till 1982. Some 79,915 ounces of gold was mined at an average grade of 28g/t during this period. It is generally accepted that significantly more gold than this was won from alluvial and unreported production.

Cervantes controls mining leases and prospecting licences that cover the majority of this historic gold field. A large database of drilling, surface geochemistry, geological, and geophysical data has been assembled to allow the field to be better understood than at any time in its history.

Competent Person's Statement

The details contained in this report that pertain to exploration results are based upon information compiled by Mr Marcus Flis, Technical Director of Cervantes Corporation Limited. Mr Flis is a Fellow of the Australasian Institute of Mining and Metallurgy (AusIMM) and has sufficient experience in the activity which he is undertaking to qualify as a Competent Person as defined in the December 2012 edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" (JORC Code). Mr Flis consents to the inclusion in the report of the matters based upon his information in the form and context in which it appears.

No New Information

Except where explicitly stated, this announcement contains references to prior exploration results, all of which have been cross-referenced to previous market announcements made by the Company. The Company confirms that it is not aware of any new information or data that materially affects the information included in the relevant market announcements.

Forward Looking Statement

This report contains forward looking statements concerning the projects owned by Cervantes Corporation Limited. If applicable, statements concerning mining reserves and resources may also be deemed to be forward looking statements in that they involve estimates based on specific assumptions. Forward-looking statements are not statements of historical fact and actual events and results may differ materially from those described in the forward looking statements as a result of a variety of risks, uncertainties and other factors. Forward looking statements are based on management's beliefs, opinions and estimates as of the dates the forward looking statements are made and no obligation is assumed to update forward looking statements if these beliefs, opinions and estimates should change or to reflect other future developments.

JORC Code, 2012 Edition

Section 1 Sampling Techniques and Data (Criteria in this section apply to all succeeding

sections.)
Criteria	Commentary
Samplingtechniques	Reverse circulation (RC) drilling samples were collected through a rig-mounted cyclone withcollected in one metre intervals. Whole of 1 metre samples were collected. Compositing wasdone by the lab using a splitter. RC drill chips (from each metre interval) were examinedvisually and logged by the geologist.
	Any visual observation of alteration or of mineralisation was noted on the drill logs. Theprospect is quartz related gold mineralisation; care was taken to log quartz content of thechips.
	Duplicate samples comprise approximately 4% of total samples taken (ie one duplicatesubmitted for every 25 samples).
	A company contract geologist supervised the drilling and sampling to ensurerepresentativeness. Drilling was done by industry standard techniques.
	Duplicates, were submitted to ensure assaying reliability and accuracy. Laboratory standardsand blanks were used to monitor lab contamination and accuracy.
	Hole locations were surveyed by hand held GPS and subsequently by DGPS to better than 1cmaccuracy.
	No downhole surveys were undertaken using a gyroscope.
Drillingtechniques	Drilling was by Reverse Circulation (RC) with NQ sized bit and rods.
Drill samplerecovery	RC sample recovery and sample quality was recorded via visual estimation of sample volumeand condition of the drill spoils.
	RC sample recovery was deemed as good with no loss of circulation reported.
	RC sample recovery was not problematic as the samples were dry.
	Relationships between recovery and grade are not evident and are not expected given thegenerally excellent and consistently high sample recovery.
	RC results are not utilised for Mineral Resource estimations.
Logging	RC chips were geologically logged at one metre intervals into a digital database that was keptwith sample numbers.
	Logging is qualitative.
Sub-samplingtechniques andsamplepreparation	One metre samples were collected from a cyclone into a plastic bucket and then laid out onthe ground in rows of 10.
	Three metre composites were used at depths of reduced interest or indications (eg, graniteintercepts may be sampled at three metres, sericite schists and quartz bearing intercepts atone metre.
	Mineralisation style is late stage quartz veins.
	The one metre samples are likely to downgrade actual grades intersected, but arecommensurate with minimum mining requirements; sample size is considered appropriate forresource estimation work.
Quality of	Fire assay is a total digest technique and is considered appropriate for gold.
assay data andlaboratory	Duplicates of 1 in every 25 samples were submitted.
tests	The lab inserted random pulp duplicates. Certified reference standards and blanks were

Criteria	Commentary
	inserted by the rig geologist into the sample run.
	Accuracy and precision levels have been determined to be satisfactory after analysis of theseQA/QC samples.
Verification ofsampling andassaying	Analysis was by fire assay using Intertek's FA50/OE procedure: samples were pulverised tominus 75 µm before a split of 50g was taken and analysed using standard Fire Assayprocedures. Assay accuracy is 0.005g/t gold. The method is an accepted industry analyticalprocess appropriate for the nature and style of mineralisation under investigation.
	Eight RC holes are twinned on historic holes.
	No adjustments were made to assay data.
Location of	Drill sites have been located in 3D using a DGPS unit with an accuracy of +/-0.01m.
data points	The drilling co-ordinates are all in GDA94 MGA Zone 50 co-ordinates.
	Azimuth was set by hand held compass there being no intensely magnetic rocks in the area.
	Drill hole inclination is set by the driller using a clinometer on the drill mast and checked bythe geologist prior to commencement of drilling.
	Hole trajectory was measured by a gyroscopic downhole unit recording every 10cmdownhole.
Data spacinganddistribution	RC holes were not placed on a grid.
	Together with historic data, the data spacing and distribution will be sufficient to establish thedegree of geological and grade continuity appropriate for the Mineral Resource and OreReserve estimation procedure(s) and classifications applied.
Orientation of	Drilling followed the geometry of existing holes.
data in relationto geologicalstructure	Previous drilling defined the strike and dip of ore zones. Current drilling utilised thatinformation.
	It is not anticipated that, on current interpretation, any bias has been introduced to thesampling.
Samplesecurity	Samples were collected in calico bags with sample number tickets included in each bag andthe same identification posted externally.
	Samples were delivered to the lab by a company representative using commercial transportservices.
Audits orreviews	Standards, blanks, repeats, and check assays are undertaken to ensure data robustness.

Section 2 Reporting of Exploration Results. (Criteria listed in the preceding section also apply to this section.)

Criteria	Commentary
Mineraltenement andland tenurestatus	Exploration results relate to work carried out over a package of tenements comprising miningand prospecting leases.
	The tenements are 100% owned and controlled by Cervantes Corporation Limited.
	All tenements and leases are currently in good standing with DMP with no knownimpediments to further exploration or development.
Explorationdone by otherparties	Historical drill holes exist at the project area.
	In early 1911, Thomas Payne found gold at what would become the Pansy lease, and shortlyafter more gold on what would become the Carnation lease on the main Paynes Findgoldfield.
	The field was operated continuously from 1911 to 1941, with interruptions during the First

Criteria	Commentary
	World War period and the 1920's. Leases were gradually consolidated until around six majormines produced the most output. After World War II it was operated by lone prospectors,and later the local Taylor family who conducted small scale gold mining until 2010 when theysold the leases to Paynes Find Gold Limited.
	From 1911 to 1918 the field produced 23,193 oz from 20,510 tonnes of ore, with a further575.72 oz from dollied gold and specimens. In 1939 it was reported since 1911 to that timethe field had produced 56,946 oz of gold from 59,898 tonnes of ore at an average calculatedgrade of 28.6 g/t Au.
	The main historic mines 5 km north-west of Paynes Find (and starting closest to the town) areGoodingnow, Mariposa, Havela/Sumpton, Princess Mary, Aster Consolidated, Oversight,Oversight North, Lakeview West, Trey Bit, Paynes Future, Orchid, Carnation Alluvials, SweetWilliam, Paynes Find/Taylor, Margarite, Marigold, Adeline and Bluebell. Goodingnow,Carnation and Orchid were the most active and largest producers. South-east of Paynes Findare Pansy, Pansy North, Daffodil and Gharrock. Daffodil has been the most recently mined,and its mullock plateau can be seen east of the roadhouse.
	Since that time, the following activities are noted:
	1983 Geological mapping by the GSWA
	1985 G.R.Dale & Assoc undertook surface and underground exploration.
	1987 Exploration of the Carnation Gold Mine as well as sampling other old mine workingsincluding Blue Heaven, Leschenaultia, Romes, Carnation, Daphne, Scadden(extensions), Daisy, Primrose, Sweet William, Kowhai, Horseshoe, Wattle, Marigold,Orchid by Falcon Australia Ltd They also undertook drilling.
	1986-7 Forsayth NL undertook field inspections, aerial photograph interpretation and drillingprogram.
	1998-8 Kirkwood Gold NL drilled two holes on M59/10, one diamond and one RC for 115.9mand 46m respectively (PFRCDD1, PFRC5). Three RC drill holes (PFRC2-4) were drilledon M59/244 for a total of 85m. A fourth hole (PRFCDD1) was drilled with an RC collar(58m) and diamond drilling 9.3m. All four holes returned anomalous gold values withthe most significant being one metre at 23.9g/t Au from 55m in PFRC4.
	2002 Hallmark Mining Limited undertook drilling with the aim of testing high-grade goldshoots below old workings for depth extensions.
	2010-7 Paynes Find Gold Ltd carried out detailed geological mapping (Fitton), Phase 1 andPhase 2 RC drilling (that forms the basis of the exploration target estimate), structuralmapping and interpretation, MMI survey.
	2017-19 Cervantes Corp Ltd undertook a re-interpretation of the aeromagnetic data, auditand verification of the drillhole database, reconnaissance aircore drilling, and surfacegeochemical surveys.
	2020: Cervantes undertook RC drilling in the Blue Heaven area and calculated an ExplorationTarget of 170,000 to 520,000 tonnes at 2.2 to 4.5g/t gold (ASX release: 16 July, 2020).
Geology	The historic mineralisation consists of major auriferous quartz lodes in the Paynes FindGneiss. The lodes are subparallel to the regional Primrose Shear that occurs to the west andare interpreted as classic flower structures emanating from that shear. The gold occurs assouth plunging shoots within the quartz lodes which tend to steepen towards the shear. ThePrimrose Shear marks the contact of the Paynes Find Gneiss to its east with ultramafics,predominantly amphibolites, to the west. The role of small felsic intrusives is speculated tohave remobilised primary gold mineralisation within the shear into, or causing, the quartzlode system.
Drill holeInformation	See tables in this release.

Criteria	Commentary
Dataaggregationmethods	Simple averages are used where aggregates are provided.
	Aggregated intercepts include contiguous metres where the grade does not fall below 0.5g/tfor more than one metre.
	Reported aggregated intervals have been weighted by length.
	No density weighting has been applied.
	No top-cuts have been applied (unless specified otherwise).
	Higher grade intervals of mineralisation internal to broader zones of mineralisation arereported as included intervals.
	Metal equivalence is not used.
Relationship	The intervals reported are the initial drill intervals and intercepts.
between	No adjustment has been to the intervals to account for the declination of drilling.
mineralisationwidths andinterceptlengths	Drilling is generally inclined at 60oto the NW (TN). Ore shoots generally dip approximately35oto the SE, meaning the apparent thickness is approximately the true thickness; this needsto be confirmed.
Diagrams	Relevant location maps and figures are included in the body of this announcement.
Balanced	Table of representative grades are included in the report.
reporting	This announcement includes the results of Au assays for the holes drilled as a follow-upprogramme to existing (reported) historic drilling.
Othersubstantiveexplorationdata	The area is covered by a 50m line spaced aeromagnetic survey.
	Previous workers undertook sufficient drilling to define an Indicated Resource, though that isnot now JORC compliant.
	No bulk samples, metallurgical results, groundwater or geotechnical studies have beencarried out yet.
Further work	Work programmes currently under review include re-assaying of composite samples to onemetre intervals, further drilling, metallurgical testing, resource estimation, and pitoptimisation studies.
	Any interpreted extension of the existing resource is commercially sensitive.

Section 3 Estimation and Reporting of Mineral Resources

No Mineral Resources are being reported.