WESTERN MINES GROUP LTD — Capital/Financing Update 2021

Jul 29, 2021

ASX Announcement 30 July 2021

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High-grade Gold Results at Rock of Ages Project

Highlights

• [Rock chip results over 13g/t Au confirm high-grade gold potential of project ]

• [Ground SAM survey results highlights historic workings associated with second order ] fault splay

• [Looking to expand current granted 5 hole PoW to accomodate larger initial drill ] program

• [Tendering underway to contract suitable RC drill rig for WMG’s maiden drilling program]

Western Mines Group Ltd (WMG or Company) ( ASX:WMG ) is pleased to update shareholders on recent activities and plans at the Rock of Ages Project.

Summary

WMG’s tenement P38/4203 contains the historical Rock of Ages workings, a series of shallow mine workings over approximately 450m strike. During June the Company undertook its first site visit to the project to complete geological mapping and rock chip sampling. Assay results from these rock chip samples confirm the high-grade gold potential of the project with results over 13g/t Au.

In November 2020 GAP Geophysics completed a ground Sub-Audio Magnetic (SAM) survey over the tenement area, in conjunction with our project neighbours Focus Minerals (ASX:FML). The results of this survey show a north-northeast trending low feature, clearly associated with the location of the historic workings, and interpreted to represent a second order shear structure or splay, and a break in the main prevailing north-south trend of the region.

Tendering is now underway to contract a suitable reverse circulation (RC) drill rig as soon as possible for WMG’s maiden drilling program. There is a 5 hole Program of Work approval already granted over the project area but WMG may now look to expand this in order to accomodate a larger initial drill program based on these promising results. Please see the rest of this report for full details of our activities.

Commenting on the Rock of Ages Project, WMG Managing Director Caedmon Marriott said:

“WMG is very much gearing up for our maiden company drilling program at the Rock of Ages Project and is encouraged by our recent fieldwork and interpretation.

The potential of the historical Rock of Ages workings has never been properly tested. Over 2,000oz of gold production at 50g/t Au was recorded in the early 1900’s with the old timers hand digging narrow shafts and stopes down to around 30m, along what appears to be a consistent mineralised horizon. The depth potential of this mineralisation has never been properly tested and our planned drilling program will be the first do so.

next few weeks.”

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ASX Announcement 30 July 2021

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Project Overview

The Rock of Ages Project comprises prospecting licence P38/4203 and is located approximately 32km southeast of Laverton. The project lies on the Laverton Greenstone Belt, around 4.5km south of the historical Burtville Mining Centre and is surrounded by Focus Minerals (ASX:FML) Laverton Gold Project, with the neighbouring deposits of Burtville (206,000oz at 0.96g/t Au) and Karridale (1.19Moz at 1.33g/t Au) within a 5km radius. The tenement contains the historical Rock of Ages workings, a series of shallow mine workings over approximately 450m strike, associated with quartz veining and ferruginous cherts, within felsic volcanic schists. Historical records indicate 2,074oz Au was mined from the workings between 1902 and 1911 at an average grade of 50g/t Au.

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Figure 1: Location of Rock of Ages Project

Rock Chip Results

During June WMG completed its first visit to the Rock of Ages Project, mapping the geology and historical workings, along with collecting 3 rock chip samples representing the various lithologies. The results and description of the samples are shown in Table 1 below, with both RA002 and RA003 showing results over 13g/t Au.

SampleID	MGA51 East	MGA51 North	Description	Au (g/t)	Ag (g/t)
RA001	465870	6812933	Ferruginous chert layer to east of trend of workings	0.212	0.03
RA002	465867	6812940	Quartz vein at edge of small shaft	13.85	1.76
RA003	465875	6812996	Gossanous looking mullock sample from mullock dump to east of main shaft	13.30	1.42

Table 1: Rock of Ages Rock Chip Results and Descriptions

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RA001 RA002 RA003
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Table 2: Rock of Ages Rock Chip Samples

It is interesting to note that the ferruginous chert horizon to the east of the quartz veining and main trend of workings is also weakly mineralised. Whilst the high-grade veining would have been the target of the historical workings, if the surrounding host rock is also mineralised this would be positive for a

larger lower grade deposit. Also of note is the large mullock piles on surface (over 900m[2] ) could still contain decent gold grade, despite being waste from the historical high-grade workings.

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BETTER FIGURE IN PROGRESS
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Figure 2: Rock of Ages Rock Chip Sample Locations

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Figure 3: Rock of Ages Main Shaft Area (Esmeralda hole RR-6 bottom lefthand corner, Burtville Mining Complex on horizon

SAM Survey

In November 2020, GAP Geophysics completed a ground SAM survey over the tenement area, jointly with WMG’s neighbours Focus Minerals (ASX:FML). The survey was conducted at 50m line spacing with lines orientated east-west across the tenement area, with current flow north-south. The results of the survey are shown in Figure 4 below. A low feature in the MMC 1VD image is clearly associated with the trend and location of the historical workings. This is interpreted to represent a break or shear structure, with a north-northeast orientation, within the main prevailing north-south trend of the region.

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Figure 4: Rock of Ages SAM Survey (MMC 1VD image)

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WMG Drill Planning

During the June site visit WMG was able to locate the drill collars of 7 historical RC holes drilled by Esmeralda Exploration in 1985. This was fortunate as the WAMEX report on the work doesn’t list these collar locations. Six of the collars were found in place, but hole RR-5 was found lying on the ground, so the inaccuracy of this location is noted and triangulated based on historical reports. Esmeralda attempted to drill underneath the historical workings, with the holes drilled to a maximum depth of 50m and average depth of 42m.

HoleID	MGA51 East	MGA51 North	Max Depth	Azimuth	Dip	Notes
RR-1	465859	6812935	26	76	-60	Hit stope at 18.5m
RR-2	465851	6812931	38	76	-65	Hit stope at 29.5m
RR-3	465841	6812927	48	80	-63
RR-4	465839	6812989	50	110	-60	Hit stope at 41.5m
RR-5	465853	6812994	38	-	-	Hit stope at 26.5m (collar lying on ground, position less accurate)
RR-6	465864	6812981	50	93	-60
RR-7	465865	6813043	50	80	-60

This drilling was largely ineffective, either encountering mined out stopes down to a vertical depth of approximately 35m or ending in the hanging wall before reaching the target mineralised horizon.

WMG is in the process of modelling these historical holes, along with the surface mapping and shaft locations. This work is being used to plan an initial 5 to 10 hole drilling program to a depth of 150m, for a total of 750m to 1,500m. There is a 5 hole PoW approval already granted over the project area but WMG may now look to expand this in order to accomodate a larger initial program. Tendering is currently in progress to contract a suitable RC drill rig as soon as possible for WMG’s maiden drilling program.

This work is being undertaken in parallel with a ramp up of exploration activities across Company’s project portfolio, including the imminent commencement of MLEM our flagship Mulga Tank Project. Shareholders can look forward to a number of updates over the coming weeks.

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: $0.17 Market Cap: $7.45m 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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Rock of Ages

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.	• Ground Sub-Audio Magnetic (SAM) survey undertaken by Gap Geophysics Pty Ltd, a proprietary geophysical technique using their own equipment • Rock chip samples taken as 1kg to 1.5kg grab samples • Historical Esmeralda drilling was reverse circulation with 2kg samples taken from 2m drilled sample intervals
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 Esmeralda drilling was reverse circulation percussion using a Schramm 42 rig with a 4.5inch hammer
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.	• 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.	• Not applicable

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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.	• Approximately 1kg to 1.5kg of material was collected for each rock chip grab sample • Samples were pulverised to >85% passing 75um at the laboratory • Historical Esmeralda drilling chips were collected in a cyclone and 2kg samples taken from 2m drilled intervals piled on the ground
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.	• Nature and quality of the assay and laboratory procedures are considered appropriate for the rock chip samples • Samples were submitted to ALS in Perth for gold and multi-element assay using method code AuME-TL43, overrange samples were reanalysed by Au-AROR43 • ALS also completed duplicate sampling and ran internal standards as part of the assay regime; no issues with accuracy or precision were identifed • SAM survey used GAP GeoPak High Power HPTX-80 geophysical transmitter, GAP TM-7 SAM magnetometer sampling at 2,400Hz, Geometric G-857 magnetometer base station and Trimble Ag114 diferential GPS, accurate to +/- 1m
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 adjustments have been made to assay data
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.	• Historical Esmeralda drill collars and rock chip samples located using a handheld GPS with accuracy of +/-3m • Coordinates are in GDA94 Zone 51 • Esmeralda drill collar dip and azimuth measured using digital compass and clinometer on a iPhone • SAM survey DGPS with sub 1m accuracy
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.	• SAM survey was conducted at 50m line spacings orientated at right angles to the current fow • Lines walked E-W with current fowing N-S

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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.	• SAM survey lines orientated in E-W direction believed to be approximately orthogonal to regional trend
Sample security	• The measures taken to ensure sample security.	• Samples were bagged and transported to the analytical laboratory by Company staf
Audits or reviews	• The results of any audits or reviews of sampling techniques and data.	• SAM survey feld component was undertaken by GAP Geophysics

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.	• Tenement P38/4203 • Held 100% by Western Mines Group Ltd • 1% NSR to original tenement holder • Native Title Claim by Nyalpa Pirniku not yet determined • No known historical or environmentally sensitive areas within the tenement area • Tenement is in good standing
Exploration done by other parties	• Acknowledgment and appraisal of exploration by other parties.	• Esmeralda Exploration undertook a 7 hole RC drilling program within the project area in 1985 (WAMEX A17850)
Geology	• Deposit type, geological setting and style of mineralisation.	• Geology consists of quartz veins in a schistose felsic volcanic-tufaceous sequence that includes ferruginous chert units
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

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Criteria	JORC Code explanation	Commentary
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.	• 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’).	• Not applicable
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.	• Not applicable
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.	• Not applicable
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 include aircore and RC drilling • Exploration is at an early stage and future drilling areas will depend on interpretation of results

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