REACH RESOURCES LIMITED — Capital/Financing Update 2021

Jun 15, 2021

Pursuing high grade gold for shareholder wealth

ASX ANNOUNCEMENT/MEDIA RELEASE

16 June 2021

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ASX : CVS

Definition drilling kicks off at Primrose Gold Project

DIRECTORS:

Mr Robert Downey Chairman

Mr Marcus Flis Technical Director

Mr Matt O’Kane Non-Executive Director

Key points:

• A planned 3,000 metre Reverse Circulation (RC) drilling program has started at the Primrose Gold Project

• Drilling being undertaken to progress the Exploration Target announced on 16 July, 2020. Previous intercepts include:

• 12m @ 6.62g/t from 10m in PFRC116

CAPITAL STRUCTURE:

Shares on issue: 1,554,012,464

• 3m @ 9.28g/t from 47m in HPFRC17

• 7m @2.43g/t from 26m in PFCR115

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

Unlisted Options expiring 31/12/23: 18,000,000

• Drilling will also be undertaken on the periphery of the Exploration Target to pursue gold mineralisation in areas not yet closed off by previous drilling

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

• An as yet untested potentially large tonnage primary gold mineralisation target identified by CSA will have its first drill test

Registered Office:

• Historic Lines of Lode, never before drill tested, are being targeted to assess their potential

Shop 11, Southshore Piazza 85, The Esplanade, South Perth, WA, 6151

Postal address:

PO Box 1196 South Perth, WA, 6951

Ph: +61 (8) 6436 2300 admin@cervanantescorp.com.au

Following a successful recapitalisation and re-quotation on the ASX, Cervantes Corporation Limited (ASX:CVS) is pleased to advise that drilling has commenced on its flagship Primrose Gold Project in the Yalgoo district of WA (Figure 1). A campaign of approximately 3,000m of Reverse Circulation (RC) drilling will focus on the Blue Heaven Exploration Target (ASX release on 16 July, 2020), an untested primary gold mineralisation target, and a number of as yet untested historic gold lodes.

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Figure 1 Primrose Gold Project location.

Blue Heaven

The Blue Heaven area covers the core of the historic Paynes Find gold field. It was the major focus of the previous explorer’s drilling activities. During 2020, Cervantes reviewed this data and confirmed and rectified collar locations with a high definition digital elevation survey supported by spot DGPS on the ground surveying. The data set was used to announce an Exploration Target of 170,000 to 520,000 tonnes at 2.2 to 4.5g/t gold. 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 that it is uncertain if further exploration will result in the estimation of a Mineral Resource.

Verification and in fill drilling has now started in support of converting this Exploration Target to a JORC resource, and test highly prospective ground not previously drilled.

The following historic intercepts will be retested with the following drill holes (Table 1):

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Table 1 Significant gold intersections from previous drilling.

				Within
Drill Hole	Interval (m)	Gold (g/t)	From (m)	broader interval	Gold (g/t)	From (m)
				(m)
HPFRC17	3	9.28	46	7	4.32	46
HPFRC19	2	14.7	21	4	8.46	20
and	4	8.43	8
PFRC010	2	2.49	18	10	1.53	18
PFRC115	3	4.34	30	7	2.43	26
and	4	1.91	16
PFRC116	6	11.49	12	12	6.62	10
PFRC120	1	271.63	41	3	92.1	41
and	1	1.52	35
PFRC135	3	8.05	77	7	4.83	77
and	2	3.6	48
PFRC149	3	4.64	41	9	2.16	41
PFRC150	3	5.85	120	6	3.56	120
and	2	12.04	79

In addition, in-fill and extensional drilling will be undertaken in areas that have gaps in the drilling or the mineralisation is not closed off.

Primrose Shear Conceptual Gold Target

Prior to the previous explorer exiting the field, CSA Global was commissioned to undertake a review of the geological data for the purpose of improving the understanding of the structural and lithostratigraphic controls on mineralisation in this gold field. CSA recognised two gold mineralising events:

1. Shear related quartz veining with high grade gold tightly bound within segmented and boudinaged quartz veins within the gneiss lithologic units – the main target for the historic mining activities. This is interpreted to represent remobilised gold.

2. Moderate grade, but more consistent gold mineralisation along the sheared contact between mafic amphibolite and gneiss that is interpreted as the primary gold mineralising event.

The previous explorer focused on the first style and it is this style that represents all of the historic Paynes Find gold mines. These mines are developed on secondary structures associated with the Primrose Shear. Over 37 historic mines occur within the area.

The second style, interpreted to be closely associated with the Primrose Shear itself (Figure 2), has not been well tested. Historic drill hole PFRC116 (Table 1) may possibly represent this style, having a thicker intercept with moderate grade. This style has been overlooked up until now as it is not generally associated with quartz veining.

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Figure 2 Primrose Shear conceptual gold target.

Exploration Drilling

Many of the known Lines of Lode, ie, major quartz veins along which shallow mines have been developed, have never been tested by drilling. The current drilling campaign is designed to undertake an initial testing of these to gauge their potential.

Drilling is expected to take approximately 15 days to complete.

Mr Downey, Cervantes’ recently appointed Chairman, remarked: “ This drilling campaign is an important step in advancing the Blue Heaven exploration target. While drilling is focused on better defining and expanding the known gold mineralisation, it will also test important new areas that have the potential to significantly increase the area’s gold endowment. ”

About Cervantes Corporation Limited

Cervantes is an emerging gold explorer and aspiring gold miner. It holds a commanding position in an often overlooked gold field that has had only sporadic, disjointed, and interrupted exploration carried out on it. Cervantes has identified opportunities in this gold field that were overlooked by previous explorers. 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 5km of the highly gold mineralised Primrose Shear and its extensions in the Murchison District of the Eastern Goldfields, Western Australia. Over 37 gold mines operated in this field from 1911 till 1982 winning in excess of 79,915 ounces of gold 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.

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Cervantes now 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.

Forward Looking Statement

This report contains forward looking statements concerning the projects owned by Cervantes Corporation Limited. Statements concerning exploration targets 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.

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

For Further information please contact:

Robert Downey Chairman (08) 6436 2300 admin@cervantescorp.com.au

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JORC Code, 2012 Edition

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

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Criteria Commentary
Sampling Reverse circulation (RC) drilling samples were collected through a rig-mounted
techniques cyclone with collected in one metre intervals. Samples were spear-sampled using
multiple sampling points from the sample pile. RC drill chips (from each metre interval)
were examined visually and logged by the geologist.
Any visual observation of alteration or of mineralisation was noted on the drill logs.
The prospect is quartz related gold mineralisation; care was taken to log quartz
content of the chips.
Duplicate samples comprise approximately 4% of total samples taken (ie one
duplicate submitted for every 25 samples).
A company contract geologist supervised the drilling and sampling to ensure
representativeness. Drilling was done by industry standard techniques.
Duplicates, were submitted to ensure assaying reliability and accuracy. Laboratory
standards and blanks were used to monitor lab contamination and accuracy.
Hole locations were surveyed by hand held GPS and by location onto 30cm resolution
DEM and aerial photography.
No downhole surveys were undertaken.
Drilling Drilling was by Reverse Circulation (RC) with NQ sized bit and rods.
techniques
Drill sample RC sample recovery and sample quality was recorded via visual estimation of sample
recovery volume and 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
the generally 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 kept with sample numbers.
Logging is qualitative.
Sub-sampling One metre samples were collected from a cyclone into a plastic bucket and then laid
techniques out on the ground in rows of 10.
and sample
Four metre composites were used at depths of reduced interest or indications (eg,
preparation
granite intercepts may be sampled at four metres, sericite schists and quartz bearing
intercepts at one metre.
Mineralisation style is late stage quartz veins.
The one metre samples are likely to downgrade actual grades intersected, but are
commensurate with minimum mining requirements; sample size is considered
appropriate for resource estimation work.
Quality of Fire assay is a total digest technique and is considered appropriate for gold.
assay data
Duplicates of 1 in every 25 samples were submitted.
and
The lab inserted random pulp duplicates, certified reference standards and blanks.
laboratory
tests Accuracy and precision levels have been determined to be satisfactory after analysis
of these QA/QC samples.
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Criteria Commentary
Verification of Analysis was by acqua regia using Intertek’s FA50/OE procedure: samples were
sampling and pulverised to minus 75 µm before a split of 25g was taken and analysed using
assaying standard Fire Assay procedures. The method is an accepted industry analytical
process appropriate for the nature and style of mineralisation under investigation.
There were no twinned holes.
No adjustments were made to assay data.
Location of All samples sites have been located using a hand held GPS unit with an accuracy of
data points +/-5m. These were cross-checked with a 0.3m resolution DEM and aerial
photography.
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 by the geologist prior to commencement of drilling.
Camera survey points were at the top and bottom of each hole.
Collar RLs were taken from the DEM data.
Data spacing RC holes were drilled on an existing grid set up for resource drill out.
and
Together with historic data, the data spacing and distribution will be sufficient to
distribution
establish the degree of geological and grade continuity appropriate for the Mineral
Resource and Ore Reserve estimation procedure(s) and classifications applied.
Orientation of Drilling followed the geometry of existing holes.
data in
Previous resource estimation defined the strike and dip of ore zones. Current drilling
relation to
utilised that information.
geological
structure It is not anticipated that, on current interpretation, any bias has been introduced to the
sampling.
Sample Samples were collected in calico bags with sample number tickets included in each
security bag and the same identification posted externally.
Samples were delivered to the lab by a company representative using commercial
transport services.
Audits or Standards, blanks, repeats, and check assays are undertaken to ensure data
reviews robustness.
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Section 2 Reporting of Exploration Results. (Criteria listed in the preceding section also apply to this section.)

Criteria	Commentary
Mineral tenement and land tenure status	Exploration results relate to work carried out over a package of tenements comprising mining and 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 known impediments to further exploration or development.
Exploration	Historical drill holes exist at the project area.
done by other parties	In early 1911, Thomas Payne found gold at what would become the Pansy lease, and shortly after more gold on what would become the Carnation lease on the main
	Paynes Find goldfield.
	The field was operated continuously from 1911 to 1941, with interruptions during the
	First World War period and the 1920's. Leases were gradually consolidated until
	around six major minesproduced the most output. After World War II it was operated

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Criteria Commentary
by lone prospectors, and later the local Taylor family who conducted small scale gold
mining until 2010 when they sold 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
further 575.72 oz from dollied gold and specimens. In 1939 it was reported since
1911 to that time the field had produced 56,946 oz of gold from 59,898 tonnes of ore
at an average calculated grade of 28.6 g/t Au.
The main historic mines 5 km north-west of Paynes Find (and starting closest to the
town) are Goodingnow, Mariposa, Havela/Sumpton, Princess Mary, Aster
Consolidated, Oversight, Oversight North, Lakeview West, Trey Bit, Paynes Future,
Orchid, Carnation Alluvials, Sweet William, Paynes Find/Taylor, Margarite, Marigold,
Adeline and Bluebell. Goodingnow, Carnation and Orchid were the most active and
largest producers. South-east of Paynes Find are 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
workings including 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
drilling program.
1998-8 Kirkwood Gold NL drilled two holes on M59/10, one diamond and one RC for
115.9m and 46m respectively (PFRCDD1, PFRC5). Three RC drill holes
(PFRC2-4) were drilled on 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 with the 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
gold shoots below old workings for depth extensions.
2010-7 Paynes Find Gold Ltd carried out detailed geological mapping (Fitton), Phase
1 and Phase 2 RC drilling (that forms the basis of the exploration target
estimate), structural mapping and interpretation, MMI survey.
2017-20 Cervantes Corp Ltd undertook a re-interpretation of the aeromagnetic data,
audit and verification of the drillhole database, reconnaissance aircore drilling,
and surface geochemical surveys.
Geology The mineralisation is seen as predominantly quartz veining in an undifferentiated
mafic sequence. Felsic intrusives are the likely driver of the gold mineralisation.
Drill hole See tables in this release.
Information
Data Simple averages are used where aggregates are provided.
aggregation
Aggregated intercepts include contiguous metres where the grade does not fall below
methods
0.5g/t for 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 are
reported as included intervals.
Metal equivalence is not used.
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Criteria Commentary
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.
mineralisation
widths and Drilling is generally inclined at 60 [o] to the NW (TN). Ore shoots generally dip
approximately 35 [o] to the SE, meaning the apparent thickness is approximately the
intercept
true thickness; this needs to be confirmed.
lengths
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-
up programme to existing (reported) historic drilling.
Other The area is covered by a 50m line spaced aeromagnetic survey.
substantive
Previous workers undertook sufficient drilling to define an Indicated Resource, though
exploration
that is not now JORC compliant.
data
No bulk samples, metallurgical results, groundwater or geotechnical studies have
been carried out yet.
Further work Work programmes currently under review include re-assaying of composite samples
to one metre intervals, further drilling, metallurgical testing, resource estimation, and
pit optimisation studies.
Any interpreted extension of the existing resource is commercially sensitive.
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Section 3 Estimation and Reporting of Mineral Resources

No Mineral Resources are being reported.

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