SUREFIRE RESOURCES NL — Capital/Financing Update 2021

Jan 10, 2021

NEW DRILLING PROGRAM TO COMMENCE AT YIDBY GOLD PROJECT

Testing open extensions of thick gold mineralised zones down dip and plunge

• Up to 6,000m of RC drilling planned to define and extend the Yidby Road gold mineralisation, that produced the following previously announced (30 November 2020 and 15 December 2020) significant intersections:

YBRC007		56m	@	1.97	g/t Aufrom	44m
	including	4m	@	14.47	g/t Au
YBRC008		40m	@	3.01	g/t Aufrom	24m
	including	4m	@	26.57	g/t Au
YBRC006		36m	@	1.51	g/t Aufrom	32m
	including	5m	@	5.86	g/t Au
YBRC005		17m	@	1.74	g/t Aufrom	51m
	including	4m	@	5.13	g/t Au
YBRC009		16m	@	1.51	g/t Aufrom	50m
	including	4m	@	4.18	g/t Au
YBRC010		9m	@	1.60	g/t Aufrom	71m
	including	2m	@	4.62	g/t Au

• These fresh-rock intersections are open down dip and along strike/down plunge to the north and south, as shown on the longitudinal projection enclosed (Figure 1)
• Drilling is planned to extend the thick and relatively high-grade gold zones both at depth and down plunge and offers potential to define a substantial shallow resource
• Multiple mineralised zones occur across a 400m wide corridor at Yidby Road, that may continue to the Cashens Find structure, a further 500m to the north-east
• This major mineralised corridor may continue for a 5 km strike-length within SRN's tenements and remains largely un-tested outside the Yidby Road zone

Surefire Resources NL (ASX: SRN, "the Company" or "SRN") is pleased to announce that it will shortly commence a major drilling program focussed on the Yidby Road Prospect in the Mid-West region of Western Australia (Figure 1).

The program will initially comprise approximately up to 40 holes for 6,000m of RC drilling, and is designed to test the immediate down dip and along-strike/down-plunge extensions of this significant, thick and relatively high-grade, gold discovery.

The exceptional intersections recently produced from Yidby Road are from fresh rock, open at depth and define a zone that is open to the north and south of the drilled area to date (see longitudinal projection Figure 1).

Drilling will focus on defining and extending the "porphyry" zone that is up to 56m thick and dips moderately to the east. Historical aircore and limited RC drilling intersected other zones of mineralisation both east and west of the new discovery. However, drilling was previously oriented west to east and, in some cases, drilled down the steep to moderate easterly dipping mineralisation (see cross sections Figures 2 and 3). This provides scope for Surefire to further test these parallel structures across a mineralised corridor at least 400m wide (Figure 4).

Surefire Managing Director Vladimir Nikolaenko commented:

"We are looking forward to re-starting the drilling program at Yidby Road, aimed at expanding and defining this significant new gold discovery.

"This next stage of drilling will target immediate extensions of the exceptionally thick and relatively high-grade gold zones both at depth and along strike to the northwest and southeast.

"We will also be testing the other gold bearing structures within this wide corridor of gold mineralisation, that may continue for up to 5km within the Surefire tenements."

Figure 1: Yidby Road longitudinal Projection showing doubly plunging mineralisation and proposed holes

Figure 2: Yidby Road cross-section 6,751,750mN with recent intersections and proposed drilling

Figure 3: Yidby Road cross-section 6,751,840mN with recent intersections and proposed drilling

Figure 4: RC Drilling intercepts at Yidby road Prospect on magnetic image

Yidby Gold Project

The Yidby Gold Project is situated within the southern portion of the Yalgoo-Singleton Greenstone Belt near Ninghan Station Homestead. To the south of the project is the Extension Hill iron ore mine, Mount Gibson Gold Mine. The three exploration licences cover 113.77km² with three gold prospects hosting significant gold mineralisation. Historic workings occur at Ninghan Mining Centre, Delaney Well, and Cashens Find, while historic drilling which reported significant gold intercepts has occurred at Yidby road, Delaney Well, and Cashens Find Prospects.

The project is centred in a highly attractive location being within 1km of the Great Northern Highway a major arterial road which services the various mining centres and is the state's main link to the north west. The project is 400km along this route from Perth.

The project is also surrounded by several significant gold projects. The Mount Gibson Gold Project is 30km to the south, the Rothsay Gold Project is 30km to the west. 65km to the north-east along the Singleton-Yalgoo Greenstone Belt is the +1.1 million-ounce Minjar Gold Project, while the millionounce Kirkalocka Gold Project is approximately 70km to the northeast. 40km along the Great Northern Highway is the Paynes Find Mining Centre.

Preliminary interpretation of regional magnetic imagery (see Figure 5 below) has highlighted a series of northwest trending structures that correspond with both the Yidby Road and Cashens Finds prospects. The Yidby Road structure has truncated the axis of a major antiform, representing a structural high that is considered highly prospective for gold mineralisation.

Both the Yidby Road and Cashens Find structures are interpreted to continue for over 5km within the Surefire Resources tenements and remain largely untested by drilling along strike of the prospect areas tested to date.

Figure 5: Regional 1st Vertical Derivative (1VD) magnetics with interpreted structures and prospect locations

Figure 6 Yidby Project Regional Location

Authorised for ASX release by:

Vladimir Nikolaenko Managing Director

Competent Person Statement:

The information in this report that relates to exploration results has been reviewed, compiled and fairly represented by Mr Jonathon Dugdale, a Fellow of the Australian Institute of Mining and Metallurgy ('FAusIMM') and a full time employee of Discover Resource Services Pty Ltd. Mr Dugdale has sufficient experience, including over 34 years' experience in exploration, resource evaluation, mine geology and finance, relevant to the style of mineralisation and type of deposits under consideration to qualify as a Competent Person as defined in the 2012 Edition of the Joint Ore Reserves Committee ('JORC') Australasian Code for Reporting of Exploration Results, Minerals Resources and Ore Reserves. Mr Dugdale consents to the inclusion in this report of the matters based on this information in the form and context in which it appears.

Forward Looking Statements:

This announcement contains 'forward-looking information' that is based on the Company's expectations, estimates and projections as of the date on which the statements were made. This forward-looking information includes, among other things, statements with respect to the Company's business strategy, plans, development, objectives, performance, outlook, growth, cash flow, projections, targets and expectations, mineral reserves and resources, results of exploration and related expenses. Generally, this forward-looking information can be identified by the use of forwardlooking terminology such as 'outlook', 'anticipate', 'project', 'target', 'potential', 'likely', 'believe', 'estimate', 'expect', 'intend', 'may', 'would', 'could', 'should', 'scheduled', 'will', 'plan', 'forecast', 'evolve' and similar expressions. Persons reading this announcement are cautioned that such statements are only predictions, and that the Company's actual future results or performance may be materially different. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the Company's actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information.

JORC Code, 2012 Edition: Section 1: Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections.)

Criteria	JORC Code explanation	Commentary
Sampling techniques	•Nature and quality of sampling(e.g., cut channels, random chips,or specific specialised industrystandard measurement toolsappropriate to the minerals underinvestigation, such as down holegamma sondes, or handheld XRFinstruments, etc). Theseexamples should not be taken aslimiting the broad meaning ofsampling.•Include reference to measurestaken to ensure samplerepresentivity and the appropriatecalibration of any measurementtools or systems used.•Aspects of the determination ofmineralisation that are Material tothe Public Report.•In cases where 'industry standard'work has been done this would berelatively simple (e.g., 'reversecirculation drilling was used toobtain 1 m samples from which 3kg was pulverised to produce a 30g charge for fire assay'). In othercases, more explanation may berequired, such as where there iscoarse gold that has inherentsampling problems. Unusualcommodities or mineralisationtypes (e.g., submarine nodules)may warrant disclosure of detailedinformation.	Reverse Circulation drilling was usedto obtain 4m composite– or a1msample on the splitter on the cyclone.Samples weights have been noted atthe laboratory. Most samples were>3kg and were analyse at Nagromlaboratories using the ICP008 with a50g fire assay check.
Drilling techniques	•Drill type (e.g., core, reversecirculation, open-hole hammer,rotary air blast, auger, Bangka,sonic, etc) and details (e.g., corediameter, triple or standard tube,depth of diamond tails, facesampling bit or other type,whether core is oriented and if so,by what method, etc).	•Reverse Circulation drilling wascompleted using a face samplinghammer.
Drill sample recovery	•Method of recording andassessing core and chip samplerecoveries and results assessed.•Measures taken to maximisesample recovery and ensurerepresentative nature of thesamples.•Whether a relationship existsbetween sample recovery andgrade and whether sample bias	•Samples were weighed at thelaboratory to allow comparativeanalysis.•No relationship between samplerecovery and grade has beenobserved

Criteria	JORC Code explanation	Commentary
	may have occurred due topreferential loss/gain of
	fine/coarse material.
Logging	•Whether core and chip sampleshave been geologically andgeotechnically logged to a level ofdetail to support appropriateMineral Resource estimation,mining studies and metallurgicalstudies.•Whether logging is qualitative orquantitative in nature. Core (orcostean, channel, etc)photography.•The total length and percentage of	•Geological logging on a 1m basiswith lithologies and weathering zonesbeing documented throughout.
	the relevant intersections logged.
Sub-sampling techniques andsample preparation	•If core, whether cut or sawn andwhether quarter, half or all coretaken.•If non-core, whether riffled, tubesampled, rotary split, etc andwhether sampled wet or dry.•For all sample types, the nature,quality and appropriateness of thesample preparation technique.•Quality control proceduresadopted for all sub-samplingstages to maximise samplesrepresentivity•Measures taken to ensure that thesampling is representative of thein-situ material collected, includingfor instance results for fieldduplicate/second-half sampling.•Whether sample sizes areappropriate to the grain size of the	•Not applicable to this announcement•Every 1m RC interval was sampledas a dry primary sample in a calicoag off the cyclone/splitter.•Drill sample preparation and analysiscarried out at registered laboratory(Nagrom). Sample preparation is drypulverisation to 95% passing 75microns.•Field sample procedures will includethe use of standards, blanks, andduplicates at appropriate intervals forearly-stage exploration programs.•Sampling is carried out usingstandard protocols as per industrypractice.•Sample sizes range typically from 2to 3kg and are deemed appropriateto provide an accurate indication ofgold mineralisation.
Quality of assay data andlaboratory tests	material being sampled.•The nature, quality andappropriateness of the assayingand laboratory procedures usedand whether the technique isconsidered partial or total.•For geophysical tools,spectrometers, handheld XRFinstruments, etc, the parametersused in determining the analysisincluding instrument make andmodel, reading times, calibrationsfactors applied and theirderivation, etc.•Nature of quality controlprocedures adopted (e.g.,standards, blanks, duplicates,external laboratory checks) andwhether acceptable levels ofaccuracy (i.e., lack of bias) andprecision have been established.	•Gold assays are using an Aqua regiaICP method with a 50g Fire Assaycheck.•Detection limits and techniques areappropriate for included results.

Criteria	JORC Code explanation	Commentary
Verification of sampling andassaying	•The verification of significantintersections by eitherindependent or alternativecompany personnel.•The use of twinned holes.•Documentation of primary data,data entry procedures, dataverification, data storage (physicaland electronic) protocols.•Discuss any adjustment to assaydata.	•Intercepts have been calculatedgenerally using a 0.1g/t cut-off andinternal waste of up to 1m thicknesswith total intercepts greater than0.5g/t.
Location of data points	•Accuracy and quality of surveysused to locate drill holes (collarand down-hole surveys),trenches, mine workings andother locations used in MineralResource estimation.•Specification of the grid systemused.•Quality and adequacy oftopographic control.	•Location holes has been usinghandheld GPS with DGPS locationsplanned to be taken in due course.
Data spacing and distribution	•Data spacing for reporting ofExploration Results.•Whether the data spacing, anddistribution is sufficient toestablish the degree of geologicaland grade continuity appropriatefor the Mineral Resource and OreReserve estimation procedure(s)and classifications applied.	•20 – 50m spacing between currentdrilling with some holes replicatingprevious drilling
Orientation of data in relationto geological structure	•Whether the orientation ofsampling achieves unbiasedsampling of possible structuresand the extent to which this isknown, considering the deposittype.•If the relationship between thedrilling orientation and theorientation of key mineralisedstructures is considered to haveintroduced a sampling bias, thisshould be assessed and reportedif material.	•Intercepts given are downhole widthswith the true widths not determined.
Sample security	•The measures taken to ensuresample security.	•Samples transported by commercialcourier direct from Surefire to theLaboratory.
Audits or reviews	•The results of any audits orreviews of sampling techniquesand data.	•A full review of QAQC data will becompleted once all results received.

Section 2: Reporting of Exploration Results

Criteria	JORC Code explanation	Commentary
Mineral tenement and landtenurestatus	•Type, reference name/number,location and ownershipincluding agreements ormaterialissues with third parties such asjoint ventures, partnerships,overriding royalties, nativetitle interests, historical sites,wilderness or national park andenvironmental settings.•The security of the tenure heldat the time of reporting alongwith any known impediments toobtaining a licence to operatein the area.	•Located 320km northeast of Perth inthe mid-west region of WesternAustralia.•E 52/2390 and E52 /2326 are grantedtenements held by SurefireResources Pty Ltd•A 2% Royalty on Gold production ispayable to Beau Resources Ltd.
Exploration done by otherparties	•Acknowledgment and appraisalof exploration by other parties.	•Previous work has been completed byNormandy and Monarch Gold
Geology	•Deposit type, geological settingand style of mineralisation.	•Gold mineralisation at the projectprojects is orogenic, hosted withinquartz veining associated with felsicporphyry intrusives in mafic rocks.
Drill holeInformation	•A summary of all informationmaterial to the understanding ofthe exploration results includinga tabulation of the followinginformation for all Material drillholes:▪easting and northing of the drillhole collar▪elevation or RL (Reduced Level- elevation above sea level inmetres) of the drill hole collar •dip and azimuth of the hole▪down hole length andinterception depth▪hole length.•If the exclusion of thisinformation is justified on thebasis that the information is notMaterial and this exclusion doesnot detract from theunderstanding of the report, theCompetent Person shouldclearly explain why this is thecase.	•Northing and easting data generallywithin 5m accuracy using a GPS – withDGPS location planned.•RL data +/-2m•Down hole length =+- 0.2m.

Data aggregation methods	•In reporting Exploration Results,weighting averaging techniques,maximum and/orminimum grade truncations(e.g., cutting of high grades)and cut-off grades are usuallyMaterial and should be stated.•Where aggregate interceptsincorporate short lengths ofhigh-grade results and longerlengths of low-grade results, theprocedure used for suchaggregation should be statedand some typical examples ofsuch aggregations should beshown in detail. Theassumptions used for anyreporting of metal equivalentvalues should be clearly stated.	•Intercepts have been calculatedgenerally using a 0.1g/t cut off andinternal waste of up to 1m thicknesswith total intercepts greater than 0.5g/t.•No upper cut off has been applied tointersections.
Relationshipbetweenmineralisation widths andintercept lengths	•These relationships areparticularly important in thereporting of Exploration Results.•If the geometry of themineralisation with respect tothe drill hole angle is known, itsnature should be reported.•If it is not known and only thedown hole lengths are reported,there should be a clearstatement to this effect (e.g.,'down hole length, true width notknown').	•Orientation of mineralised zonesappears to be northwest-southeaststriking and steep to moderate eastdipping. Structural information has notbeen recorded as drilling is limited toreverse Circulation (RC) at this stage.However, the drilling that has beencompleted from east to westapproximates an orthogonal test andthus intersections widths approximatetrue width.
Diagrams	•Appropriate maps and sections(with scales) and tabulations ofintercepts should be includedfor any significant discoverybeing reported These shouldinclude, but not be limited to aplan view of drill hole collarlocations and appropriatesectional views.	•The data has been presented usingappropriate scales and using standardaggregating techniques for the displayof regional data. Geological andmineralisation interpretations arebased on current knowledge and willchange with further exploration.•Figure 1 is a longitudinal projectionthrough the Yidby Road mineralisation;Figures 2 and 3 are representativecross-sections through themineralisation; Figure 4 showsintersections and mineralisation in planview; Figure 5 shows regionalmagnetics interpretation and Figure 6is the regional geology and tenementslocation.
Balanced reporting	•Where comprehensive reportingof all Exploration Results is not	•Key drilling location information andassays have been provided in previous

	practicable, representativereporting of both low and highgrades and/or widths should bepracticed to avoid misleadingreporting of Exploration Results.	releases of 30/11/20 and 15/12/20.
Othersubstantiveexploration data	•Other exploration data, ifmeaningful and material, shouldbe reported including (but notlimited to): geologicalobservations; geophysicalsurvey results; geochemicalsurvey results; bulk samples –size and method of treatment;metallurgical test results; bulkdensity, groundwater,geotechnical and rockcharacteristics; potentialdeleterious or contaminatingsubstances.	•Geological interpretations are takenfrom published maps, geophysicalinterpretation, historical and ongoingexploration.
Further work	•The nature and scale of plannedfurther work (e.g., tests forlateral extensions or depthextensions or large-scale stepout drilling).•Diagrams clearly highlightingthe areas of possibleextensions, including the maingeological interpretations andfuture drilling areas, providedthis information is notcommercially sensitive.	•This release presents plans for thenext stage of drilling, comprising up to40 holes for 6,000m, that will beadjusted/expanded as results arereceived.•Possible extensions to themineralisation are shown on Figures 1(longitudinal view), 2 and 3 (crosssections) and 4 (plan view).

(Criteria listed in the preceding section also apply to this section.)