SUNSHINE METALS LIMITED — Capital/Financing Update 2021

Sep 19, 2021

ASX Announcement 20 September 2021

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SHARE PLACEMENT RAISES $5 MILLION

HIGHLIGHTS

• High demand for share placement to institutional and sophisticated investors at $0.045 with commitments secured for $5 million (before costs).

• Proceeds to be used to rapidly advance on recent exploration successes including:

• focussed drilling at Titov and reconnaissance drilling at Keans, both large scale Cu-Mo-Au-Ag prospects at Ravenswood West;

• infill and extensional drilling at Triumph with the objective of delivering a maiden JORC Resource in early 2022; and

• ongoing field activities and news flow from Hodgkinson, Investigator, Ravenswood West and Triumph.

• Directors are contributing $315,000 to the Placement (subject to shareholder approval) and a further $162,000 through the exercise of options, bringing their total investment to ~$2.8 million.

Sunshine Gold Limited (ASX:SHN, “Sunshine Gold”, “the Company”) is pleased to announce that it has secured commitments for a placement of $4,685,000 million (before costs) at an issue price of $0.045 (10.1% discount to 5 day VWAP) to institutional and sophisticated investors (“ Placement ”).

It is proposed that, subject to shareholder approval, directors of Sunshine Gold will also subscribe for 7,000,000 shares at an issue price of $0.045, raising an additional $315,000 (“ Director Placement ”).

The Company expects to complete the Placement and therefore issue the new shares to institutional and sophisticated investors on or about 24 September 2021. The proposed issue of shares to directors will be completed on the Company obtaining the requisite shareholder approval at the Company’s Annual General Meeting. The issue of 104,111,112 shares pursuant to the Placement will be made under the Company’s existing placement capacity pursuant to Listing Rules 7.1 and 7.1A.

The funds raised from the Placement and Director Placement will be applied to rapidly advance on recent exploration successes, general working capital purposes and business development purposes. Shaw and Partners acted as sole lead manager to the placement and will be paid a 6% selling fee on funds received from their clients.

Sunshine Gold’s Managing Director, Damien Keys commented:

“We have an exciting period ahead. We are expecting to deliver a maiden JORC Resource over the high-grade gold project at Triumph. In addition, drilling has commenced at our large scale Titov and Keans Cu-Mo-Au-Ag prospects at Ravenswood West where significant mineralisation was intersected in the 1950/60s but never followed up. All this at a time when Cu and particularly Mo are experiencing strong demand and price increases (Cu US$9.25kg and Mo US$46.25 kg). There will also be constant news flow from across all of our quality projects as we put these new funds to good use. Sunshine Gold would like to thank our shareholders, new and existing, for their support and we look forward to delivering on our objectives.”

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SUNSHINE GOLD LIMITED	(ASX:SHN)
Directors:	Postal Address:	Contact:	Capital:
Mr Alec Pismiris	PO Box 572	T+61 8 6245 9828	Ordinary shares: 356,711,618
Dr Damien Keys	Floreat WA 6014	Einfo@shngold.com.au	Unquoted shares: 88,000,000 (24m Esc)
Mr Anthony Torresan	Queensland Office:	Wwww.shngold.com.au	Deferred shares: 100,000,000 (24m Esc)
Mr Paul Chapman	3/50 Tully Street	ABN 12 063 388 821	Unlisted options:71,000,000 (24m Esc)
Mr Les Davis	South Townsville QLD 4810		Unlisted plan options: 1,000,000
			Perf Rights: 17,000,000 (24m Esc)

ASX Announcement 20 September 2021

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CAPITAL STRUCTURE

(Post Placement & Shareholder Approval of Director Placement)

Quoted Securities
Fully Paid Ordinary Shares	467,822,730
Unquoted Securities
Unquoted shares (24m Esc)	88,000,000
Deferred shares (24m Esc)	100,000,000
Unlisted options @ $0.03 expiring 30/09/2025 (24m Esc)	71,000,000
Unlisted plan options @ $0.03 expiring 02/11/2025	1,000,000
Performance rights (24m Esc)	17,000,000

PLANNED ACTIVITIES
•Sept - Oct 2021:	Drilling at Titov and Keans.
•Sept 2021 quarter:	Audited financial statements.
•October 2021:	September 2021 quarterly report.
•Oct 2021 quarter:	Infill and extensional drilling at Triumph.
•Oct 2021 quarter:	Early-stage field work at Ravenswood West.
•Oct - Nov 2021:	Assays Titov and Keans.
•November 2021:	Annual General Meeting.

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.

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ASX Announcement 20 September 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.

Triumph Gold Project (EPM18486, EPM19343: 100%)

1. The project is located 50km south of the mining hub of Gladstone and comprises two explora�on permits 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 largescale, shear hosted gold deposits.

Ravenswood West Gold-Copper-Rare Earths Project (EPM 26041, EPM 26152, EPM 26303, EPM 26304: 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) from Resolute Mining Ltd. (ASX:RSG) in 2020 for up to $300m and is presently subject to a ~$200m upgrade. In addi�on, there are three other gold mills within 100km, 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 20-25km of strike along a major fault that links Pajingo (4 Moz) and Ravenswood (9.8 Moz) and contains numerous historic gold workings.

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 four explora�on permits and two explora�on lease applica�ons 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 en�re tenure 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 two explora�on permits 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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ASX Announcement 20 September 2021

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