SUNSHINE METALS LIMITED — Capital/Financing Update 2021

Dec 9, 2021

ASX Announcement 10 December 2021

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FIRST 12 MONTHS OF SUNSHINE GOLD

Sunshine Gold Limited (ASX:SHN, “Sunshine Gold”, “the Company”) is pleased to provide an update of the activities in the 12 months since ASX re-listing.

HIGHLIGHTS

• ASX re-listed on 11 December 2020.

• Completion of 5,500 line km airborne magnetic survey at Hodgkinson Au Project, December 2020.

• Successful 7,126m RC drilling campaign at Triumph Au Prospect completed March 2021. Best results included:

• 21BNRC001 4m @ 27.12 g/t Au, from 43m (Big Hans)

• 21SHRC002 16m @ 5.48 g/t Au, from 34m (Super Hans)

• 21NCRC008 6m @ 13.11 g/t Au, from 96m (South Constitution)

• Acquisition of Ravenswood West Au-Cu-Ag-Mo-REE Project in April 2021.

• First fieldwork completed at Hodgkinson Au Project in July 2021.

• Soils and mapping completed at Ravenswood West in July 2021.

• Completion of 6,938m RC drilling campaign at Ravenswood West in October 2021. Best results included:

• 21TVRC004 66m @ 0.38 % Cu, 2.22 g/t Ag , 0.42 % Mo, from 26m (Titov) Including 6m @ 0.42 % Cu, 3.94 g/t Ag , 3.02 % Mo, from 70m

• 21TVRC007 158m @ 0.37 % Cu, 2.25 g/t Ag , 0.07 % Mo, from surface (Titov) Including 18m @ 0.50 % Cu, 2.89 g/t Ag , 0.12 % Mo, from 38m And 17m @ 0.65 % Cu, 4.00 g/t Ag , 0.15 % Mo, from 128m

• 21KNRC006 6m @ 0.49 % Cu, 2.06 g/t Au, 4.96 g/t Ag, 0.09 % Mo from 51m, (Keans) Including 2m @ 1.03% Cu, 6.02 g/t Au, 12.59 g/t Ag, 0.20 % Mo from 55m

• Commenced diamond drill hole at Titov Cu-Ag-Mo, Ravenswood West. Drilling continues.

• Commencement of 8,500m JORC Resource definition drilling program at Triumph Au Project in November 2021.

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Figure 1. Molybdenite and chalcopyrite in quartz vein (21TVDD001, 339.0m).

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SUNSHINE GOLD LIMITED (ASX:SHN)

Directors: Postal Address : Contact: Mr Alec Pismiris PO Box 572 T +61 8 6245 9828 Dr Damien Keys Floreat WA 6014 E info@shngold.com.au Mr Anthony Torresan Queensland Office : Wwww.shngold.com.au Mr Paul Chapman 3/50 Tully Street ABN 12 063 388 821 Mr Les Davis South Townsville QLD 4810

Capital: Ordinary shares: 467,822,730 Unquoted shares: 88,000,000 (24m Esc) Deferred shares: 100,000,000 (24m Esc) Unlisted options:71,000,000 (24m Esc) Unlisted plan options: 2,700,000 Perf Rights: 17,000,000 (24m Esc)

ASX Announcement 10 December 2021

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Sunshine Gold’s Managing Director, Damien Keys commented: “It has been an amazing 12 months for Sunshine Gold. At the time of re-listing, the drill rig was already turning at Triumph and a plane was collecting magnetic data in the Hodgkinson. We have not taken the foot off the pedal since, with a major project transaction (Ravenswood West), over 17,000m of RC drilled, 3,000 soil samples collected and field mapping/validation of a range of targets.

The result of all this activity is an emerging JORC Resource at Triumph. In addition, at Ravenswood West, activities have resulted in the “rediscovery” of a 15km long suite of Cu-Au-Ag-Mo porphyries, first works on a rare-earth element target (Elphinstone Creek) and definition of a drill ready gold target (Kirkers). We would also like to take the opportunity to thank our shareholders and key stakeholders for their support over the last 12 months. The year ahead promises to be even more exciting than 2021!”

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Figure 2. Sunshine Gold projects.

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ASX Announcement 10 December 2021

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TRIUMPH AU PROJECT (Sunshine Gold 100%)

A maiden RC drilling campaign commenced in November 2020. Drilling tested several prospects including Big Hans, Super Hans, New Constitution, South Constitution, Bald Hill, Bonneville, Galena and Brigham Young.

Assay results for the 7,126m drilling program were particularly encouraging with best results coming from the Southern Corridor prospects (Figure 3). Results included:

• 16 m @ 5.48 g/t Au from 34m (21SHRC002) – Super Hans

• 3 m @ 12.95 g/t Au from 30m (21SHRC003) – Super Hans

• 11 m @ 3.23 g/t Au from 31m (21SHRC006) – Super Hans

• 10 m @ 2.96 g/t Au from 11m (21SHRC001) – Super Hans

• 4 m @ 27.12 g/t Au from 43m (21BNRC001) – Big Hans

• 4 m @ 11.53 g/t Au from 69m (21BNRC006) – Big Hans

• 2 m @ 9.56 g/t Au from 63m (21BNRC007) – Big Hans

• 8 m @ 2.59 g/t Au from 77m (21BNRC005) – Big Hans

• 6 m @ 13.11 g/t Au from 96m (21NCRC008) – South Constitution

• 1 m @ 21.91 g/t Au from 135m (21NCRC006) – South Constitution

• 3 m @ 10.30 g/t Au from 64m (21NCRC002) – New Constitution

A review of the existing geochemical database was completed in February 2021. The existing database is comprised of 12,629 compatible samples. The data was assessed for alteration mapping, pathfinder analysis, lithological discrimination and stoichiometrically for sulphide and calcite abundance. Importantly, the review highlighted the prospectivity of the under-explored south-western prospects – Super Hans, Big Hans, New Constitution and New Constitution South. This area is heavily K-feldpar altered, elevated in As, Sb and Cu with elevated sulphide calculated in sampled holes. The zone also displays strong IP chargeability which is another indicator of higher metal/sulphide abundance.

Drilling recommenced at the Southern Corridor prospects in November 2021. The drilling will be used to define a maiden JORC Resource in March 2022.

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Figure 3. Drilling results in the highly prospective Southern Corridor, Triumph.

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ASX Announcement 10 December 2021

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RAVENSWOOD WEST CU-AU-AG-MO-REE PROJECT (Sunshine Gold 100%)

Sunshine Gold completed the acquisition of the Ravenswood West Au-Cu-REE Project in April 2021. Consideration was comprised of $400,000 and a 1% net smelter royalty on gold revenue.

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Figure 4. Prospect locations, Ravenswood West.

Early-stage field programs commenced immediately with 1,588 soil samples being collected in the Dreghorn gold field. The sampling confirmed anomalism > 100ppb Au over 9km of strike. A reconnaissance RC drilling campaign of 3,558m tested a range of structural targets to determine which orientations of faulting were most likely to contain economic gold. Best results were from NW striking faults and veins and included (Figure 5):

• 1m @ 8.06 g/t Au from 7m (21DRRC020) – Dreghorn Regional

• 1m @ 6.81 g/t Au from 7m (21DRRC029) – Rejoice

• 1m @ 5.85 g/t Au from 68m (21DRRC010) – Queenslander

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ASX Announcement 10 December 2021

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Figure 5. Dreghorn drilling and soils, Ravenswood West.

Sampling and field mapping moved focus to a 15km long suite of Cu-Au-Ag-Mo targets that were largely unexplored since the 1960’s. Soil sampling has been conducted over the rare earth anomalous Elphinstone Creek prospect (309 assays pending).

Field mapping confirmed drill ready targets at Titov, Keans and Gagarin.

Rock chip sampling at Gagarin returned peak values of:

• 10.96% Cu, 0.48 g/t Au, 4.61 g/t Ag, 1,048 ppm Mo (GG001); and

• 0.34% Cu, 2.11 g/t Au, 12.69 g/t Ag, 2,012 ppm Mo (GG003)

RC drilling was completed at Titov (1,550m) to confirm large thickness intervals of Cu and Mo, to assess potential for

Au-Ag mineralisation within the Cu-Mo zone and to define zones of high-grade mineralisation within the broader mineralised envelope. Quartz veining, intense chlorite-sericite alteration and associated molybdenite and chalcopyrite were logged in broad intervals in all eight drill holes. Best results included:

• 66m @ 0.38 % Cu, 0.42 % Mo, 2.22 g/t Ag , from 26m (21TVRC004) Including 6m @ 0.42 % Cu, 3.02 % Mo, 3.94 g/t Ag , from 70m

• 10m @ 1.32 % Cu, 2.11 g/t Ag , from 115m (21TVRC006) Including 2m @ 5.93 % Cu, 0.13 g/t Au, 6.87 g/t Ag , from 123m

• 158m @ 0.37 % Cu, 0.07 % Mo, 2.25 g/t Ag , from surface (21TVRC007) Including 18m @ 0.50 % Cu, 0.12 % Mo, 2.89 g/t Ag , from 38m

• And 17m @ 0.65 % Cu, 0.15 % Mo, 4.00 g/t Ag , from 128m

• 112m @ 0.44 % Cu, 0.08 % Mo, 2.48 g/t Ag , from surface (21TVRC008) Including 15m @ 0.62 % Cu, 0.02 % Mo, 2.38 g/t Ag , from surface And 17m @ 0.58 % Cu, 0.21 % Mo, 3.34 g/t Ag , from 50m

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ASX Announcement 10 December 2021

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Figure 6. Cosmonauts Yuri Gagarin (front) and Gherman Titov (rear) on their way to the launch pad in 1961 – around the last time Sunshine Gold’s Gagarin and Titov prospects were last explored.

Sunshine Gold commenced a diamond hole at Titov (December 2021) to assess the down dip extension to the Titov Cu-Ag-Mo system. The hole will also assist in determining vein orientations, refine the geological model, assess metal (-geochemical) zonation at depth and determine the nature of a deep Pole-Dipole IP Chargeability anomaly. Drilling is currently at 420m depth and has intersected an 88m zone of intense quartz veining (from 297m) , chlorite-sericite alteration and chalcopyrite and molybdenite mineralisation. Drilling is expected to be completed by mid-December 2021 and a detailed update on the diamond core will be released then.

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Figure 7. Abundant quartz veining and brecciation in intense sericite alteration (21TVDD001, 323.1m – 326.6m).

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ASX Announcement 10 December 2021

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The Keans Cu-Au-Ag-Mo target was also RC drilled (1,830m) in October 2021 and tested different orientations of mapped veining and geophysically interpreted faulting. Encouraging assays have been returned for 4 of the 15 holes. Results include:

• 12m @ 1.43% Cu, 33.07 g/t Ag, 0.03% Mo from 81m (21KNRC004) Including 3m @ 4.11% Cu, 120.27 g/t Ag, 0.07% Mo from 89m

• 4m @ 5.56 g/t Ag, 0.41% Mo from 21m (21KNRC005)

• 6m @ 0.49 % Cu, 2.06 g/t Au, 4.96 g/t Ag, 0.09 % Mo from 51m (21KNRC006) Including 2m @ 1.03% Cu, 6.02 g/t Au, 12.59 g/t Ag, 0.20 % Mo from 55m, 21KNRC006

HODGKINSON AU PROJECT (Sunshine Gold 100%)

An airborne magnetic and radiometric survey was completed over Hodgkinson in November 2020. The survey improved resolution from 400m line spaced data to 100m data over the entire project. Interpretation of the magnetic data was incorporated with early-stage fieldwork campaigns, comprising mapping and soil sampling (334 samples) at Campbell Creek and Peninsula.

The soil sampling at Campbell Creek defined three discrete soil anomalies greater than 20ppb Au. The soils and mapping campaign refined targets for potential reef-style, gold mineralisation. The anomalies are hosted in quartzveined, coarse iron-rich sandstones which define a ridge line. Prospector maps highlight the presence of “gold in stone” and two “reefs” along the anomalous 3km ridge line. Alluvial gold has also been worked from the creeks either side of the ridge line.

PLANNED ACTIVITIES

• December 2021: Complete deep diamond drilling at Titov Cu-Au-Ag- Mo. • December 2021: JORC Resource RC drilling at Triumph Au Project. • December 2021: Results from RC drilling at Keans Cu-Au-Ag- Mo. • January 2022: 31 December 2021 Quarterly Report. • January -February 2021: Results from JORC Resource RC drilling at Triumph Au Project. • 10-11 February 2022: Presentation at the Australian Gold Conference, Sydney. • 15-17 February 2022: Presentation at the RIU Explorers Conference, Fremantle. • 15 March 2022: Financial Statements for half year ended 31 December 2021. • March 2022: Triumph maiden JORC Resource estimate.

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ASX Announcement 10 December 2021

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ENDS

For further informa�on:

Dr Damien Keys Mr Alec Pismiris Managing Director Director & Company Secretary Telephone: +61 428 717 466 Telephone: +61 402 212 532 E-mail: dkeys@shngold.com.au E-mail: alec@lexconservices.com.au

This ASX announcement is authorised for market release by the Board of Sunshine Gold.

Competent Person’s Statement

The information in this report that relates to Exploration Results is based on, and fairly represents, information compiled by Dr Damien Keys, a Competent Person who is a Member of the Australian Institute of Geoscientists (AIG). Dr Keys has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration, and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the JORC Code. Dr Keys consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

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ASX Announcement 10 December 2021

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ABOUT SUNSHINE GOLD

Sunshine Gold is focused on its high-quality gold and copper projects in Queensland comprising a 100% interest in the Triumph, Hodgkinson, Investigator and Ravenswood West projects.

Ravenswood West Gold-Copper-Rare Earth Project

(EPM 26041, EPM 26152, EPM 26303, EPM 26304, EPM 27824, EPM 27825: 100%)

kms of the Ravenswood Mining Centre (4 Moz Au produced, a further 4.3 Moz Au in Resource and 1.8 Moz in Ore Reserves). The Ravenswood Mining Centre was purchased by EMR Capital and Golden Energy & Resources Ltd. (SGX:AUE) in 2020 for up to $300m and is presently subject to a ~$200m upgrade. In addi�on, there are three other gold mills within 100 km, two of which are toll trea�ng.

The Project is highly prospec�ve for intrusion-related and orogenic gold, porphyry gold-copper-molybdenum and rare earth elements. Ravenswood West covers 20-25 km of strike along a major fault that links Pajingo (4 Moz) and Ravenswood (9.8 Moz) and contains numerous historic gold workings.

Triumph Gold Project (EPM18486, EPM19343: 100%)

1879-1941. The project is located 50km south of the mining hub of Gladstone and comprises tenements covering 138km[2] . Triumph is located within the Wandilla Province of the New England Orogen. Nearby large gold deposits include Mt Rawdon (2.8 Moz Au), Mt Morgan (8 Moz Au and 0.4 Mt Cu) and Cracow (2 Moz Au). Triumph is a 15km² intrusion related gold system which has the poten�al to host both discrete high-grade vein deposits and large-scale, shear hosted gold deposits.

Hodgkinson Gold Copper Project (EPM18171, EPM19809, EPM25139, EPM27539, EPM27574, EPM27575: 100%)

Hodgkinson is located 100km north east of Cairns in North Queensland. The project comprises tenements covering 365km[2] . The project is situated between the Palmer River alluvial gold field (1.35 Moz Au) and the historic Hodgkinson gold field (0.3 Moz Au) and incorporates the Elephant Creek Gold, Peninsula Gold-Copper and Campbell Creek Gold prospects. Hodgkinson has been extensively explored for tungsten, owing to its proximity to the Watershed and Mt Carbine tungsten deposits, but underexplored for gold. BHP-Utah Interna�onal completed stream sediment sampling across the project in the late 1980’s and confirmed that the area was anomalous in gold as well as tungsten.

Investigator Copper Project (EPM27344, EPM27345: 100%)

Inves�gator comprises tenements covering 115km[2] . It is located 110km north of Mt Isa and 12km south of the Mt Gordon Copper Mine. Inves�gator has seen no modern explora�on and importantly, no holes have been drilled in the most prospec�ve stra�graphic and structural posi�ons.

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