WESTERN MINES GROUP LTD — Capital/Financing Update 2021

Sep 15, 2021

ASX Announcement 16 September 2021

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Completion of Initial Field Program at Melita

Highlights

• [Soil sampling and ground magnetic surveys completed over entire Princess Melita (Au) ] and Airstrip Gossan (Cu-Pb-Zn) areas

• [High-resolution ground magnetic surveys to help identify and map geology and ] structures associated with the targets areas

• [Recent local prospecting and gold nugget finds has revealed new Kylie’s Patch target ] area, the focus of a second phase of field exploration planned for early October

Western Mines Group Ltd (WMG or Company) ( ASX:WMG ) is pleased to update shareholders on the completion of the first phase of fieldwork at the Company’s 100% owned Melita Project.

Summary

The Melita Project comprises exploration licence E40/379, located 20km south-southeast of Leonora and close to the Kookynie gold mining centre, in the heart of the WA Goldfields. The project area is considered highly prospective for both gold (Au) and copper-lead-zinc (Cu-Pb-Zn) mineralisation.

WMG has recently undertaken the first phase of a major field exploration program with soil sampling and ground magnetic surveys completed over the historical Princess Melita high-grade gold workings and Airstrip Cu-Pb-Zn Gossan areas. A total of 938 soil samples and 121 line kms of ground magnetics were collected over the two areas, covering approximately 5.5km[2] .

Soil samples were submitted to the lab in batches for multi-element gold and pathfinder geochemical analysis, with first results expected in 1 to 2 weeks. The high-resolution ground magnetic surveys were completed at 50m line spacing and will be used to help identify and map geology and structures associated with the target areas. Results of this work will define initial aircore (AC) drilling targets.

Whilst in the field, WMG visited Kylie’s Patch, an area of reported gold nugget finds recently discovered by local prospectors. This new area looks very prospective and will be the focus of a second field program in early October.

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Examples for Gold Nuggets, Gold Specimens and Copper Mineralisation from Melita E40/379 (further details on page 5)

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Commenting on the Melita Project, WMG Managing Director Caedmon Marriott said:

we visit Melita the more we learn about the area and a great example of this is Kylie’s Patch. This new target area looks very promising and will be the focus of a second phase of follow up exploration we are planning in October.”

Project Overview

The Melita Project comprises exploration licence E40/379, covering an area of approximately 105km[2] . The project is located 20km south-southeast of Leonora and to the north of the Kookynie, Niagara and Orient Well-Butterfly gold mining centres, in the heart of the WA Goldfields. The Kookynie area has seen recent upswing in exploration activity, with a number of companies active around the Company’s project, including the recently listed Mt Malcom Mines (ASX:M2M) (Figure 1).

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Figure 1: Location of Melita Project

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Princess Melita Gold Workings

An area of approximately 2.1km width and 2.3km strike around the historical Princess Melita gold workings was explored during this first field program. This area covered two parallel north-south striking trends of historical workings, and recent gold prospecting nugget patches and scrapings, associated with three satellite based alteration targets.

A total of 714 sieved soil samples were collected at a general 200m x 50m spacing, with a number of areas of interest infilled in greater detail down to 100m x 50m spacing. All these samples were submitted to ALS in Perth several weeks ago for multi-element gold and pathfinder element geochemical analysis. Results are anticipated in 1 to 2 weeks.

A high-resolution ground magnetic survey was completed over the same exploration area, with just over 105 line kms of data collected at 50m line spacing along east-west line across the north-south trend of geology. This data will be processed with the help of Southern Geoscience Consultants and used as a mapping tool to help identify geology and structures associated with the target area.

The aim of this work is to produce a litho-structural interpretation of the area, with associated gold and pathfinder geochemistry. Targets identified from this will be prioritised and used to plan a first pass AC drilling program.

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Figure 2: Princess Melita Exploration Area

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Airstrip Cu-Pb-Zn Gossan

An area of approximately 0.6km width and 1.3km strike around the Airstrip Cu-Pb-Zn Gossan, first identified in the 1970’s and confirmed by recent WMG rock chip sampling ( Major Field Exploration Program Commences at Melita, ASX 11 August 2021 ), was explored during this exploration program.

A total of 224 sieved soil samples were collected at a general 100m x 50m spacing, with the known gossanous area infilled in greater detail down to 50m x 25m spacing. These samples were submitted to ALS in Perth this week for multi-element geochemical analysis and results are anticipated in 4 to 5 weeks.

A high-resolution ground magnetic survey was completed over the same exploration area, with just over 16 line km of data collected at 50m line spacing along east-west line across the north-south trend of geology, and this will be processed with the help of Southern Geoscience Consultants.

The aim of this work is to define the extent of the known gossan and area of anomalous Cu-Pb-Zn mineralisation in order to help plan further work in the form of ground based geophysical surveys such as Fixed Loop EM and/or an initial drilling program.

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Figure 3: Airstrip Gossan Exploration Area

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Kylie’s Patch and Mt Melita

During the field campaign WMG’s exploration team met with local prospectors who showed them to the location of a recent new gold discovery, referred to as Kylie’s Patch, located within WMG’s tenement E40/379. A reported 10 to 12 ounces of gold nuggets and gold specimens within quartz veins was claimed to have been recovered from the area. Whilst these claims cannot be independently verified by WMG the location and geology certainly looked prospective and this area will be the included as part of second field campaign being planned for early October.

The prospectors also provided the Company with a number of good specimens of copper mineralisation they had found around the Melita tenement area and will continue to note the locations of any copper mineralisation they find.

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Examples of gold specimens Example of copper mineralisation
Examples of gold nuggets reportedly
reportedly recovered from Kylie’s reportedly recovered from WMG’s
recovered from Kylie’s Patch
Patch Melita tenement
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Future Plans

A second field campaign is currently being planned to commence in early October. This exploration program will likely include further soil sampling and ground magnetic survey work over the recently discovered Kylie’s Patch area as well as also focusing on the Ulster historical gold workings in the southern part of WMG’s Melita tenement area.

The Company looks forward to updating shareholders on the results of the recent exploration work and progress of these future activities in due course.

For further information please contact: Dr Caedmon Marriott Managing Director Tel: +61 475 116 798 Email: contact@westernmines.com.au

This announcement has been authorised for release to the ASX by the Board of Western Mines Group Ltd

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About WMG

Western Mines Group Ltd ACN 640 738 834 Level 3, 33 Ord Street West Perth WA 6005

Board

Rex Turkington Non-Executive Chairman

Dr Caedmon Marriott Managing Director

Francesco Cannavo Non-Executive Director

Paul Burton Non-Executive Director

Capital Structure

Shares: 43.8m Options: 18.4m Share Price: $0.205 Market Cap: $8.98m Cash (30/06/21): $5.5m

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@westernmines westernmines Western Mines Group

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Western Mines Group Ltd (ASX:WMG) is a mineral exploration company driven by the goal to create significant investment returns for our shareholders through exploration and discovery of high-value gold and nickel sulphide deposits across a portfolio of highly-prospective projects located on major mineral belts of Western Australia.

Our flagship project and current primary focus is the Mulga Tank Ni-Cu-PGE Project, a major dunite intrusive found on the under-explored Minigwal Greenstone Belt. Previous work shows significant evidence for a working sulphide mineral system and is considered highly prospective for Ni-Cu-PGE mineralisation.

WMG holds numerous other projects across major WA mineral belts including Melita (Au), midway between Kookynie and Leonora in the heart of the WA Goldfields and Jasper Hill (Au), with numerous prospective gold trends extending from the adjacent Lord Byron and Fish historical gold mines. The Company is also actively exploring Youanmi (Au), Pavarotti (Ni-Cu-PGE), Rock of Ages (Au), Broken Hill Bore (Au) and Pinyalling (Au).

Competent Persons Statement

The information in this announcement that relates to Exploration Results and other technical information complies with the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code) and has been compiled and assessed under the supervision of Dr Caedmon Marriott, Managing Director of Western Mines Group Ltd. Caedmon is a Member of the Australian Institute of Geoscientists and a Member of the Australasian Institute of Mining and Metallurgy. He 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. Caedmon consents to the inclusion in this announcement of the matters based on his information in the form and context in which it appears.

Disclaimer

Some of the statements appearing in this announcement may be in the nature of forward looking statements. You should be aware that such statements are only predictions and are subject to inherent risks and uncertainties. Those risks and uncertainties include factors and risks specific to the industries in which WMG operates and proposes to operate as well as general economic conditions, prevailing exchange rates and interest rates and conditions in the financial markets, among other things. Actual events or results may differ materially from the events or results expressed or implied in any forward looking statement. No forward looking statement is a guarantee or representation as to future performance or any other future matters, which will be influenced by a number of factors and subject to various uncertainties and contingencies, many of which will be outside WMG’s control.

WMG does not undertake any obligation to update publicly or release any revisions to these forward looking statements to reflect events or circumstances after today's date or to reflect the occurrence of unanticipated events. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions or conclusions contained in this announcement. To the maximum extent permitted by law, none of WMG, its Directors, employees, advisors or agents, nor any other person, accepts any liability for any loss arising from the use of the information contained in this announcement. You are cautioned not to place undue reliance on any forward looking statement. The forward looking statements in this announcement reflect views held only as at the date of this announcement.

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