WESTERN MINES GROUP LTD — Capital/Financing Update 2021

Aug 1, 2021

ASX Announcement 02 August 2021

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Jasper Hill Gold Project Tenement Grant and Project Expansion

Highlights

• [Grant of Jasper Hill tenement application E39/2079 ]

• [Recently pegged neighbouring area to expand Jasper Hill Gold Project footprint ]

• [New application P39/6267 contains a number of interesting shallow historical drilling ] results including:

PDH07: 4m at 3.40g/t Au from 12m inc. 1m @ 9.8g/t Au from 14m AJ24: 8.5m at 1.15g/t Au from 30m to EOH in mineralisation AJ04: 5m at 1.14g/t Au from 28m inc. 1m @ 3.10g/t Au from 31m

• [Very limited exploration or follow up work since the 1980’s ]

• [Coupled with nearby Rock of Ages, Jasper Hill will be WMG’s primary gold project]

Western Mines Group Ltd (WMG or Company) ( ASX:WMG ) is pleased to update shareholders on recent progress at the Jasper Hill Gold Project.

Summary

WMG’s tenement E39/2079, forming the Jasper Hill Gold Project, has recently been granted by the WA Department of Mines, Industry Regulation and Safety (DMIRS). The tenement covers an area of 11 blocks or 31.5km[2] and is located approximately 80km southeast of Laverton, and 50km from the Company’s Rock of Ages Project. The Jasper Hill Gold Project lies on the Merolia Greenstone Belt and is contiguous to the neighbouring gold mines of Lord Byron, immediately to the south, and Fish, to the east. The greenstone belt sequence hosting the Lord Byron deposit extends into the southern portion of WMG’s tenement.

The Company has also recently pegged a new application P39/6267, approximately 3km south of E39/2079, to expand the Jasper Hill project area. The tenement application contains 1.5km strike length of a known mineralised trend, where historical shallow RAB and RC drilling during the 1980’s has identified a number of interesting results including PDH07 4m at 3.40g/t Au from 12m, including 1m at 9.8g/t Au from 14m and AJ24 8.5m at 1.15g/t Au from 30m to the end of the hole (EOH) still in mineralisation - with little or no follow up work since that time.

Commenting on the Jasper Hill Gold Project, WMG Managing Director Caedmon Marriott said:

“The Company is pleased to receive the grant of E39/2079 and have another project area to get stuck into. It’s also great for WMG to have picked up some very interesting ground nearby to expand the footprint of the Jasper Hill project area - seeing the ground was free we raced out and pegged it.

This portion of greenstone belt is relatively lightly explored, with limited regional exploration after the discovery of the nearby Lord Byron and Fish gold mines. There’s often no better place to explore in the WA Goldfields than contiguous to existing mines.”

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Project Overview

The Jasper Hill Gold Project comprises exploration licence E39/2079, covering an area of 11 blocks or 31.5km[2] . The project is located approximately 80km southeast of Laverton and 50km from WMG’s Rock of Ages Project ( ASX, High-grade Gold Results at Rock of Ages Project, 30 July 2021 ). The project covers part of the poorly exposed Merolia Greenstone Belt, a north-northwest trending belt, up to 20km wide, that can be traced over 110km in a south-southeast direction from the Burtville Mining Centre.

The project area is lightly explored, due to being partly under shallow cover, but is contiguous to the recently producing gold mines of Lord Byron, immediately to the south and Fish, to the east. The Lord Byron and Fish deposits were mined from 2010 to 2012, and had a combined remaining resource of 156,000oz at 1.9g/t Au when sold into private ownership in 2019[1] . The greenstone belt sequence of ultramafic and mafics, BIF and ferruginous chert hosting the Lord Byron deposit extends into the southern portion of WMG’s recently granted tenement.

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Figure 1: Location of Jasper Hill Project

1. Focus Minerals Ltd (ASX:FML) Annual Report 2019

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Application P39/6267

The Company has also recently pegged a new prospecting licence application P39/6267, approximately 3km south of E39/2079, to expand the Jasper Hill project area. The tenement application contains 1.5km strike length of a known mineralised trend where historical shallow RAB and RC drilling during the 1980’s has identified a number of interesting results that have received little or no follow up work since that time. Significant intersections within the tenement application area are shown in Table 1 below.

This mineralised trend contains a number of fairly large open pit workings from which local operators in the 1960’s and 1980’s mined and transported ore to the Laverton State Battery for processing. The two most significant of these pits are the “Williams Pit” straddling the northern boundary of WMG’s application area and the “Southern Pit”, around the cluster of historical drilling (Figure 2).

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Figure 2: Area Around Prospecting Licence Application P39/6267

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HoleID	Easting (MGA51)	Northing (MGA51)	Max Depth (m)	Azimuth	Dip	From (m)	To (m)	Interval (m)	Grade (g/t Au)
AJ02	506162	6774240	56	100	-60	53	55	2	0.52
AJ04	506172	6774290	45.5	90	-60	28	33	5	1.14
AJ23	506191	6774249	18	75	-60	0	2	2	0.67
AJ24	506202	6774249	38.5	270	-60	8 30	9 38.5	1 8.5	0.69 1.15
PDH07	506162	6775371	46	90	-70	12 inc. 14	16 15	4 1	3.40 9.80

After first completing a heritage survey of the recently granted tenement area WMG intends to get straight into field activities including mapping, soil sampling and ground magnetics in order to delineate target areas for a first pass aircore or slimline RC drilling program. The Company looks forward to updating shareholders on the progress of these 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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Appendix: Drill Hole Table

HoleID	Easting (MGA51)	Northing (MGA51)	Max Depth (m)	Azimuth	Dip	From (m)	To (m)	Interval (m)	Grade (g/t Au)	Notes
AJ01	506156	6774200	50	90	-60	-	-	-	-
AJ02	506162	6774240	56	100	-60	53	55	2	0.52
AJ03	506172	6774290	24.5	90	-60	-	-	-	-
AJ04	506172	6774290	45.5	90	-60	28	33	5	1.14
AJ05	506173	6774327	6	90	-60	-	-	-	-
AJ06	506170	6774327	40	90	-60	-	-	-	-
AJ07	506159	6774526	50	90	-60	-	-	-	-
AJ21	506151	6775419	14	90	-60	-	-	-	-	Just outside P39/6267
AJ22	506141	6774519	34	270	-60	-	-	-	-
AJ23	506191	6774249	18	75	-60	0	2	2	0.67
AJ24	506202	6774249	38.5	270	-60	8 30	9 38.5	1 8.5	0.69 1.15
AJ25	506204	6774229	32.5	270	-60	-	-	-	-
AJ26	506143	6775419	37	90	-60	2	4	2	1.19	Just outside P39/6267
AJ27	506134	6774719	26.25	90	-60	-	-	-	-
AJ28	506113	6774696	29.5	90	-60	-	-	-	-
AJ29	506139	6774921	40.5	76	-60	-	-	-	-
PDH01	506162	6775417	40	90	-70	10	12	2	1.20	Just outside P39/6267
PDH02	506163	6775437	44	90	-70	14 41	19 43	5 2	3.11 1.55	Just outside P39/6267
PDH03	506162	6775479	41	90	-70	13 24	18 28	5 4	2.82 1.27	Just outside P39/6267
PDH04	506164	6775499	35	90	-70	7	8	1	0.95	Just outside P39/6267
PDH05	506163	6775543	20	90	-70	-	-	-	-	Just outside P39/6267
PDH06	506156	6775437	44	90	-70	28	31	3	1.27	Just outside P39/6267
PDH07	506162	6775371	46	90	-70	12 inc. 14	16 15	4 1	3.40 9.80

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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: $0.18 Market Cap: $7.88m 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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Jasper Hill

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

Criteria	JORC Code explanation	Commentary
Sampling techniques	• Nature and quality of sampling (eg cut channels, random chips, or specifc specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling. • Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used. • Aspects of the determination of mineralisation that are Material to the Public Report. • In cases where ‘industry standard’ work has been done this would be relatively simple (eg ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fre assay’). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information.	• Industry standard techniques for the time were used • Reverse circulation (RC) and rotary air blast (RAB) drilling was used to obtain 1m samples from which samples were taken for analysis by 30g aqua regia or fre assay and AAS
Drilling techniques	• Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc).	• Historical Jones Mining N.L. drilling prefxed PDH used a Mole Pioneer reverse circulation percussion drill rig • Historical Anglo Australian Resources N.L. drilling prefxed AJ used an Ingersol Rand T-64 percussion drill rig without reverse circulation capability
Drill sample recovery	• Method of recording and assessing core and chip sample recoveries and results assessed. • Measures taken to maximise sample recovery and ensure representative nature of the samples. • Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fne/coarse material.	• Some instances of poor recovery are noted in the historical logs, generally these holes were abandoned before reaching target depth • Measures taken to maximise sample recovery, ensure representativity of samples and any relationship between sample recovery and grade are unknown
Logging	• Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies. • Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography. • The total length and percentage of the relevant intersections logged.	• Historical logging was qualitative and was not completed to a level of detail to support a mineral resource estimate

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Criteria	JORC Code explanation	Commentary
Sub-sampling techniques and sample preparation	• If core, whether cut or sawn and whether quarter, half or all core taken. • If non-core, whether rifed, tube sampled, rotary split, etc and whether sampled wet or dry. • For all sample types, the nature, quality and appropriateness of the sample preparation technique. • Quality control procedures adopted for all sub- sampling stages to maximise representivity of samples. • Measures taken to ensure that the sampling is representative of the in-situ material collected, including for instance results for feld duplicate/ second-half sampling. • Whether sample sizes are appropriate to the grain size of the material being sampled.	• QAQC and sampling protocols for the historical drilling is unknown
Quality of assay data and laboratory tests	• The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total. • For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc. • Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision have been established.	• Both sets of drill holes (PDH and AJ) were analysed at Analytical Services WA using 30g aqua regia digest or fre assay and AAS • QAQC procedures are unknown
Verifcation of sampling and assaying	• The verifcation of signifcant intersections by either independent or alternative company personnel. • The use of twinned holes. • Documentation of primary data, data entry procedures, data verifcation, data storage (physical and electronic) protocols. • Discuss any adjustment to assay data.	• No twinned holes were drilled • Independent verifcation and any adjustments to the historical assay data are unknown
Location of data points	• Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation. • Specifcation of the grid system used. • Quality and adequacy of topographic control.	• Accuracy of location of historical holes is questionable and still needs to be verifed onsite by WMG • PDH holes were located on a local grid, whilst AJ holes were located using AGD84 Zone 51 • Subsequent explorers have noted an error in the quoted location of the AJ holes requiring a correction of +290m north and -375m east to correct to AMG • Based on high-resolution satellite imagery and historical feld plans showing drill hole locations WMG has applied a correction of +281m north and -366m east to the AJ holes, this will be verifed in the feld by handheld GPS is collar locations can be found • Corrected collar locations have been converted to GDA94 Zone 51 and quoted by WMG
Data spacing and distribution	• Data spacing for reporting of Exploration Results. • Whether the data spacing and distribution is sufcient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifcations applied. • Whether sample compositing has been applied.	• Given the frst pass nature of the historical exploration the spacing is appropriate for understanding the exploration potential and the identifcation of anomalous zones • Not applicable as frst pass exploration drilling • No sample compositing has been applied

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Criteria	JORC Code explanation	Commentary
Orientation of data in relation to geological structure	• Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type. • If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.	• The drilling orientation is variable through the drill programs and was varied to be approximately orthogonal to the interpreted strike and dip of the targeted structures and geological units • Any sampling bias is unknown
Sample security	• The measures taken to ensure sample security.	• No records available regarding sample security
Audits or reviews	• The results of any audits or reviews of sampling techniques and data.	• No records available regarding audits or reviews

Section 2: Reporting of Exploration Results

Criteria	JORC Code explanation	Commentary
Mineral tenement and land tenure status	• Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings. • The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.	• Jasper Hill Gold Project comprises granted tenement E39/2079 and tenement application P39/6267 • Both tenements held 100% by Western Mines Group Ltd • 1% NSR to original tenement holder of E39/2079 • Native Title Claim by Nyalpa Pirniku not yet determined • Historical stone monument within E39/2079, no environmentally sensitive areas within the tenement areas • Tenements are in good standing
Exploration done by other parties	• Acknowledgment and appraisal of exploration by other parties.	• Dechow & Co Pty Ltd (1972-77) - completed fairly extensive geological mapping, rock chip sampling along the mineralised trend • Jones Mining N.L. (1983-84) - completed geological mapping, rock chip sampling and 7 RAB holes PDH01 to PDH07 mostly focused on the Williams Pit area • Anglo Australian Resources N.L. (1986-87) - completed geological mapping, rock chip and soil sampling and 30 RAB/RC holes AJ01 to AJ30 along the mineralised trend
Geology	• Deposit type, geological setting and style of mineralisation.	• Geology of the area consists of a greenstone belt sequence of ultramafc and mafc rocks, BIF and cherts • Style of mineralisation targeted is similar to neighbouring Lord Byron and Fish mines being BIF hosted structurally controlled gold

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Criteria	JORC Code explanation	Commentary
Drill hole information	• A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes: • easting and northing of the drill hole collar • elevation or RL (Reduced Level – elevation above sea level in metres) of the drill hole collar • dip and azimuth of the hole • down hole length and interception depth hole length. • If the exclusion of this information is justifed on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.	• A listing of the drill hole information material to the understanding of the exploration results provided in the body of this announcement • The use of any data is recommended for indicative purposes only in terms of potential gold mineralisation and for developing exploration targets
Data aggregation methods	• In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-of grades are usually Material and should be stated. • Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail. • The assumptions used for any reporting of metal equivalent values should be clearly stated.	• Raw composited sample intervals have been reported and aggregated where appropriate • No metal equivalent values have been quoted
Relationship between mineralisation widths and intercept lengths	• These relationships are particularly important in the reporting of Exploration Results. • If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported. • If it is not known and only the down hole lengths are reported, there should be a clear statement to this efect (eg ‘down hole length, true width not known’).	• All results referenced are based on down-hole metres and therefore may not refect the true width of mineralisation or thickness of host lithologies • Given the widely spaced nature of the drilling, the mineralisation, geometry and extent of potential orebodies cannot be readily modelled at this early stage
Diagrams	• Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any signifcant discovery being reported. These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.	• Appropriate maps and tabulations are presented in the body of the announcement
Balanced reporting	• Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.	• All known historical drill holes within tenement application P39/6267 have been reported • All signifcant intervals greater than 0.5g/t Au have been quoted
Other substantive exploration data	• Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.	• Mining by the Williams Brothers from the Williams Pit, straddling the northern boundary of P39/6267 is recorded in the form of receipts from the Laverton State Battery with a 76.2t parcel mined and processed in 1964 and an approximately 200t mined and processed 1980-83

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Criteria	JORC Code explanation	Commentary
Further work	• The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large- scale step-out drilling). • Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.	• Future exploration may geological mapping, soil and rock chi sampling and ground magnetic surveys followed by aircore and RC drilling • Exploration is at an early stage and future drilling areas will depend on interpretation of results

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