VIKING MINES LIMITED — Capital/Financing Update 2021

Feb 4, 2021

ASX ANNOUNCEMENT

VIKING SECURES DRILL CONTRACTORS & EXPLORATION WORK COMMENCES AT THE FIRST HIT GOLD PROJECT

• Drilling contractors secured to commence 1[st] phase 2,500m Diamond Drilling (DD) programme and ~6,000m regional Air Core (AC) programme in Q1 2021.

• Multi-stage Diamond and Air-Core drilling programs are being finalised to test for structural repeats and extensions of the First Hit mineralised structure.

• Gravity survey completed across the First Hit tenure with final data expected early February 2021.

Viking’s CEO Julian Woodcock commented: “With the completion of the acquisition of Red Dirt Mining and the First Hit project, I am excited that we have made significant advancements to get on the ground quickly and rapidly advance our exploration activity. The delivery of the DD and AC programmes will allow Viking to quickly expand our knowledge of the First Hit project pipeline, and with successful results deliver value to shareholders via the drill bit.”

ANNOUNCEMENT DETAILS

Viking Mines Limited (ASX: VKA) (“Viking” or “the Company”) is pleased to announce that drill programmes have been designed and contractors secured to commence drilling in February 2021. This coupled with the completion of a gravity survey across the tenements follows the Company’s strategy to aggressively explore and advance the projects in the Company’s West Australian portfolio (Figure 1).

FIELDWORK & PROGRAMME PREPARATION

Multiple phased field work programmes are being planned to rapidly assess and test the First Hit project area. These programmes are being designed to run concurrently to:

• Test the underground mine extensions at the First Hit gold mine.

• Commence exploration for additional mineralised gold shoots across the landholding.

• Enhance the Company’s understanding of the geology.

Gravity Survey

A gravity survey has been completed over the First Hit project tenure with an initial phase of data collection at 200m x 50m. The data is being processed and will be provided to Viking for evaluation in early February. The new gravity maps will assist in the detailed regional geological interpretation which is underway and will allow Viking to identify and prioritise targets and develop an understanding of the controls of mineralisation.

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Diamond Drill (DD) Programme

A comprehensive phase 1 diamond drill programme has been designed to test the mineralisation at First Hit and is estimated to incorporate ~11 diamond holes for ~2,500m. This programme is strategically designed to:

• Test for extensions of mineralisation along strike and down plunge.

• Drill in-between existing mined stopes to test remnant mineralisation.

• Test the structural and lode model which has been developed.

• Test the hanging wall geology to gain an understanding of the mineralisation controls.

• Determine geochemical fingerprint of mineralisation to assist in regional Air Core programme interpretation to identify the mineralised structures.

A DD contractor has been secured and will commence as soon as DD planning has been completed and drill pads prepared. Based on the current state of progress it is expected that drilling will commence mid-February.

Air Core (AC) Drilling Programme

A 1[st] phase regional AC programme has been designed to cover the First Hit tenements on a nominal 400m x 50m drill spacing with follow up programmes to be designed based on results. This programme is in the process of being evaluated and rationalised in conjunction with new information which is being obtained from the geological assessment and new gravity dataset. It is expected that the programme will be prioritised to test the most prospective parts of the tenure first. The phase 1 programme is estimated to incorporate ~300 holes for ~6,000m with the objective to:

• Drill through transported cover sequences and weathered rock to obtain top of fresh rock samples.

• Determine rock types at the end of hole to combine with the regional geological interpretation to confirm structures and develop a bedrock geology map.

• Use this interpretation to vector into prospective target positions.

• Obtain end of hole geochemistry to provide rock classification and assessment for pathfinder elements and alteration signatures to identify fertile gold structures.

• Identify and trace the position of the First Hit structure across the tenure for follow up with Reverse Circulation (RC) or DD testing.

• Test geochemical anomalies identified in the historical soil/auger datasets.

• Identify new bedrock and/or supergene gold anomalies.

The main objective of the AC drill programme is to build the understanding of the geology and to vector towards follow up bedrock targets. This strategy is based around the objective of identifying and tracing the fertile structures hosting the First Hit mineralisation.

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Interpretation of the airborne magnetics has identified potential structural positions which will be tested by the AC drilling. Samples will be tested for both gold and other pathfinder elements to identify fertile structures, which will then be followed up with Reverse Circulation (RC) and/or DD drill testing.

Whilst gold values from the AC drilling will provide immediate follow up targets, applying the geochemical fingerprint that is to be determined from the DD programme will allow the identification of broader halo anomalies of other pathfinder elements. This will in turn identify vectors towards narrower high-grade gold footprints (like that associated with First Hit) which will not necessarily be tested by the broader spacing of the AC drilling.

This strategy allows Viking to assess the entire tenement in a first pass drill programme. Follow up RC and/or DD drilling will then take place on the most significant geochemical and/or gold anomalies to advance the project pipeline. This is especially important for parts of the tenure which sit under transported cover masking any surface gold anomalism.

A contractor has been secured to undertake the AC drill programme on completion of their current work commitments. Forecast estimates indicate drilling will start in March 2021.

NEXT STEPS

The main priority over the coming weeks is to complete all the necessary works to commence the drill programmes on time, safely and effectively. Viking is focussed on refining and finalising the technical aspects of the DD and AC drill programmes and all data are being incorporated into the planning process and undergoing final checks. Follow up phases of DD and AC drilling are being planned and may continue directly after phase 1 results are received and assessed.

Viking are closely monitoring the COVID-19 situation with regards to planned work programmes. Fieldwork will only take place subject to following government advice and requirements in relation to the recently announced lockdown in the SW region of WA. The First Hit project is not in an area subjected to any restrictions at the timing of this release.

CSA Global will manage the safe execution and delivery of the exploration programme. A Principal Geologist has been appointed and is currently organising the logistics to commence drilling mid-February. A site visit is scheduled to take place prior to drilling and earthworks contractors are being engaged to prepare the drill pads. Further releases will be made to market with the details of the drill programmes as they are finalised.

This announcement has been authorised for release by the Board of the Company.

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Julian Woodcock CEO

Viking Mines Limited

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Figure 1: First Hit Gold project location and proximity to gold projects and processing plants

For further information, please contact: Viking Mines Limited Dean Jagger Company Secretary 02 8072 1447

Forward-Looking Statements

This document may include forward-looking statements. Forward-looking statements include, but are not limited to, statements concerning Viking Mines Limited’s planned exploration program and other statements that are not historical facts. When used in this document, the words such as "could," "plan," "estimate," "expect," "intend," "may”, "potential," "should," and similar expressions are forward-looking statements. Although Viking Mines Limited believes that its expectations reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements.

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