ASX ANNOUNCEMENT 4 February 2021

Exploration Budget Doubled Following Excellent Results

Highlights:

. Board approves increase in FY2021 Exploration Budget from $3.0M to $6.3M . Drill results warrant accelerated H2 FY2021 program with >70,000m of continuous drilling planned . Operational performance and hedge position underpins confidence in future planning and cashflow . Aircore drilling has recommenced at Dalgaranga regional targets with the results of >10,000m of pre-Christmas drilling expected this quarter for the Tanqueray and Lindville structures . Follow-up extensional RC drilling underway at the southern end of Gilbey’s and will move to Sly Fox

Gascoyne Resources Managing Director and CEO, Mr Richard Hay commented: “We are very pleased to now be in a sufficiently strong financial position to do greater justice to the excellent exploration potential we see at Dalgaranga and our other exploration projects in Western . “The doubling of our FY2021 Exploration Budget to $6.3M, with the increase fully funded from operational free cashflows, primarily as a result of solid operational results and an excellent in-the-money hedge position. “Beyond the recent success we’ve been having at the core Gilbey’s, Sly Fox and Plymouth deposits, the ~1,000km2 Dalgaranga tenements have numerous large, lightly tested regional structures such as the 25km long Greencock trend. “In addition, several walk up drill targets at the exploration starved ~2,000km2 Glenburgh-Mt Egerton project now have substantial drill metres budgeted for the June quarter, setting off an exciting next six months for the Company’s second most advanced asset. “We continue to deliver on what we said we would do in terms of production from the Dalgaranga operation and pursuing organic growth by actively exploring the Company’s high quality projects. I look forward to updating the market as we progress these activities.”

Gascoyne Resources Limited (“Gascoyne” or “Company”) (ASX:GCY) is pleased to provide an update on accelerated exploration activities at the Company’s advanced exploration and new discovery projects in Western Australia. The Board has recently approved an increase in the FY2021 Exploration Budget to A$6.3 million to support the advancement of multiple exciting gold targets across its project portfolio.

The increased Exploration Budget will test a number of extensional and new discovery targets including:

o Further resource extensional drilling at Gilbey’s, Sly Fox and Plymouth within 1.5km of the plant o Additional aircore and initial RC drilling at Dalgaranga regional targets within 15km of the plant o A substantial drill program at the Glenburgh-Mt Egerton advanced exploration and evaluation project including extensional drilling at the high-grade Mt Egerton-Hibernian deposit

o Aeromagnetic surveys at Mumbakine Well (currently in progress) and planned for Glenburgh

Gascoyne Resources ABN 57 139 522 900 Level 1, 41-47 Colin Street, West Perth, Western Australia 6005 PO Box 1449 West Perth WA 6872 P: +61 8 9481 3434 E: [email protected] W: gascoyneresources.com.au

Glenburgh-Mt Egerton

The Glenburgh-Mt Egerton1 project (Figure 5) is located approximately 350km north of the Company’s Dalgaranga Gold Mine. An updated Mineral Resource Estimate for Glenburgh-Mt Egerton was released in late December 2020, outlining a 510.1koz gold resource contained in optimised pit shells and underground shapes (refer to ASX announcement dated 18 December 2020).

RC drilling will commence early in the June quarter at Glenburgh with initial focus being resource extensional drilling around the Zone 126, Zone 102 and Cobra deposits.

Substantial aircore drilling of >20,000m is also planned, targeting regional targets southwest and northeast of the known Glenburgh gold deposits. A particular area of focus will be in the southwest of Glenburgh where aircore drilling in 2018 intersected 11m @ 1.0g/t Au in the final hole on a line approximately 2km south-southwest of the Thunderbolt deposit. The intersection is open to the north and northeast (Figure 1).

At Mt Egerton – located 180km east of Glenburgh – soil sampling is in progress, targeting the untested >8km long section of the 15km long Hibernian fault/shear trend (Figure 2). Drill testing of any anomalies generated by the soil sampling will be advanced during H2 FY2021.

An updated Mineral Resource Estimate for the high-grade Hibernian deposit is in progress by Cube Consulting. This model will be used to identify drill targets below the base of drilling (70m deep) on the western half of the known extents of the deposit. RC drilling is planned to be undertaken in the June quarter, subject to timely receipt of required approvals.

Figure 1: Glenburgh Aeromagnetics showing Regional Aircore Drilling Target South of the Thunderbolt deposit

1. Note that Mt Egerton is located approximately 180km east of Glenburgh, well within trucking distance (refer Figure 5)

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Figure 2: Mt Egerton Aeromagnetics highlighting the >8km section of the Hibernian trend currently being soil sampled

Dalgaranga – Regional

Aircore drilling has resumed to test priority regional exploration targets located within Gascoyne’s highly prospective ~1,000km2 tenement package surrounding the Dalgaranga processing plant. The increased Exploration Budget will allow for up to 15,000m of aircore drill testing of the extensive (>25km) Greencock fault/thrust trend (Figure 3). The aircore drilling is required rather than surface soil sampling techniques as most of the southern half of the Dalgaranga exploration tenements have a transported cover layer ranging in depths from 2m – 40m. Importantly, the targeted Greencock trend is within 15km of the Dalgaranga processing plant. Furthermore, approximately 5,000m of aircore drill testing is underway, testing the Gilbey’s northeastern extension and intersection with the Tanqueray trend located on the Lease. Regional targets at Tanqueray and Lindville located within 10km of the plant were aircore drill tested prior to Christmas. Samples from the >10,000m of drilling completed are currently at the laboratory in Perth with assays anticipated to be returned during the March quarter.

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Figure 3: Dalgaranga aeromagnetics showing regional aircore drilling targets along the Greencock Trend

Mumbakine Well

The Mumbakine Well project is located 5km west of Capricorn Metals Limited’s (ASX:CMM) Karlawinda Gold Project (2.1Moz) which is currently under construction with mining recently commenced.

Mumbakine Well is located on the southern margin of the Sylvania Dome, an Archean granite-greenstone terrain and the northern margin of younger Proterozoic rocks of the Bangemall Basin. Previous explorers in the 1990’s carried out exploration on the western side of the tenement which included rock chip and soil sampling with follow up RAB and RC drilling.

Two main prospect areas were defined:

o Jim’s Vein where rock chip samples up to 180g/t Au occur in shallow dipping quartz veins; and

o Central Prospect where RAB and RC drilling have defined a mineralised shear zone with the best intersection of 13m @ 3.0 g.t Au (Figure 4).

A detailed aeromagnetic survey is currently being flown over the tenement area which will aid ongoing exploration and in particular the eastern portion of the tenement which lies close to Capricorn’s Karlawinda gold project.

Appendix 1 contains JORC Table 1 with the details of the historic exploration undertaken by previous explorers in the 1990’s.

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Figure 4: Mumbakine Well Aeromagnetics – showing the Central and Jim’s Vein prospects and proximity to the Karlawinda Project

Dalgaranga – Gilbey’s & Sly Fox

RC drilling has recommenced at Gilbey’s, targeting southern extensions down dip and along strike to the Gilbey’s Main Zone (GMZ). In particular, this drilling is following up the significant high grade result of 13m @ 2.1g/t Au from 277m in DGRC0620 which is the most southerly intersection of the GMZ to date (refer to ASX announcement dated 19 January).

Following completion of drilling at Gilbey’s, Sly Fox drilling will continue to target shallow open pit expansion targets and potential underground mining areas, in particular to follow up the wide high grade gold intersection, of 26m @ 2.3 g/t Au from 277m in DGRC0623, including 16m @ 3.0 g/t Au from 279m (refer to ASX announcement dated 19 January) approximately 250m below surface.

Authorisation

This announcement has been authorised for release by the Board of Gascoyne Resources Limited.

For further information, please contact:

Investor inquiries: Media inquiries: Richard Hay Michael Vaughan Managing Director and CEO Fivemark Partners +61 8 9481 3434 +61 422 602 720

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Figure 5: Gascoyne Resources Project Map

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Tanqueray EM Anomaly

Figure 6: Dalgaranga Project – Deposit Location map

BACKGROUND ON GASCOYNE RESOURCES Gascoyne was reinstated on the ASX in October 2020 and is focused on production, development and exploration of a number of gold projects in Western Australia underpinned by positive cash flow generated from the Dalgaranga Operation. In 2020, Dalgaranga produced in excess of 80,000 ounces of gold with targeted production over the next 4 years of between 70,000 and 80,000 ounces of gold per annum.

DALGARANGA: The Dalgaranga Gold Project (“DGP”) is located approximately 65km by road North-West of Mt Magnet in the Murchison gold mining region of Western Australia and covers the majority of the Dalgaranga greenstone belt. An updated Mineral Resource was estimated for the DGP being 29.6Mt @ 0.8 g/t Au for 801.3koz of contained gold (see ASX Announcement 10 June 2020). Refer to Table 1.

An updated Ore Reserve was estimated for the DGP being 16.3Mt at 0.8 g/t Au for 426.3koz of contained gold (see ASX Announcement 31 July 2020). Refer to Table 2.

Significant exploration potential remains at the Dalgaranga Gold Project within the Company’s surrounding extensive tenement holdings.

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Table 1: Dalgaranga Gold Project Summary Mineral Resource Statement as at 30 April 2020

Classification Mt Au g/t Au koz Measured 1.7 0.8 39.7 Indicated 21.2 0.9 588.6 Measured + Indicated 22.9 0.9 628.3 Inferred 6.8 0.8 173.1 TOTAL 29.6 0.8 801.3 Note: Discrepancies in totals are a result of rounding.

Table 2: Dalgaranga Gold Project Summary Ore Reserve Statement as at 30 April 2020

COG Au Classification Oxidation state Mt Au g/t (g/t Au) Koz Oxide 0.30 Transition 0.30 0.9 0.7 19.9 Fresh 0.30 0.5 0.7 11.3 Proved Stockpiles 0.30 1.1 0.4 12.9 Gold In circuit 1.7 SUBTOTAL 2.4 0.6 45.8 Oxide 0.30 0.1 1.0 2.5 Transition 0.30 0.8 0.8 19.8 Probable Fresh 0.30 13.1 0.9 358.3 SUBTOTAL 13.9 0.9 380.6 Total 16.3 0.8 426.3 Note: Discrepancies in totals are a result of rounding.

GLENBURGH: The Glenburgh Project in the Gascoyne region of Western Australia has an Indicated and Inferred resource of 16.3Mt @ 1.0 g/t Au for 510.1koz oz gold (See ASX announcement dated 18 December 2020 and titled “Glenburgh Resource Update”) from several deposits within a 13km long shear zone (see Table 3). The project is an exciting advanced exploration and evaluation project and will be fully evaluated over the coming months to determine its potential development to production.

Table 3: Glenburgh Gold Project – MRE Total Summary for All Deposits, as at 15 December 2020

Classification Mt Au g/t Au koz Indicated 13.5 1.0 430.7 Inferred 2.8 0.9 79.4 TOTAL 16.3 1.0 510.1

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MT EGERTON: The Mt Egerton project includes the high-grade Hibernian deposit and the high-grade Gaffney’s Find prospect, located on granted mining leases. Previous drilling includes high grade intercepts, 14m @ 71.7 g/t gold, 34m @ 14.8 g/t gold, 8m @ 11.4 g/t gold, 2m @ 147.0 g/t gold, and 5m @ 96.7 g/t gold associated with quartz veining in shallow south-west plunging shoots. The Hibernian deposit has only been drill tested to 70m below surface and there is strong potential to expand the deposit with drill testing deeper extensions to known shoots and targeting new shoot positions. Extensions to mineralised trends and new regional targets will be tested with air core during drilling campaigns.

Competent Persons Statement Information in this announcement relating to exploration activities and exploration results at Mumbakine Well Project and exploration activities at the Dalgaranga Gold Project are based on, and fairly represents data compiled by Gascoyne’s Chief Geologist Mr Julian Goldsworthy who is a member of The Australasian Institute of Mining and Metallurgy. Mr Goldsworthy has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify as Competent Persons under the 2012 Edition of the Australasian Code for reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Goldsworthy consents to the inclusion of the data in the form and context in which it appears.

The Ore Reserve estimates for the Gilbey’s, Gilbey’s South, Sly Fox and Golden Wings gold deposits at the Dalgaranga Gold Project referred to in this announcement are extracted from the ASX announcement dated 30 July 2020 and titled “Dalgaranga Gold Mine – Updated Life of Mine Production Target and Updated Ore Reserve”). The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and that all material assumptions and technical parameters underpinning the estimate in the original market announcement continue to apply and have not materially changed.

The Mineral Resource estimates for the Gilbey’s, Gilbey’s South, Sly Fox and Golden Wings referred to in this announcement are extracted from the ASX announcement dated 10 June 2020 and titled “Dalgaranga Gold Mine – Updated Mineral Resource”. The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and that all material assumptions and technical parameters underpinning the estimate in the original market announcement continue to apply and have not materially changed.

The Mineral Resources estimates for the Glenburgh Project referred to in this announcement are extracted from the ASX announcement dated 18 December 2020 and titled “Group Mineral Resources Grow to Over 1.3M oz”. The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and that all material assumptions and technical parameters underpinning the estimate in the original market announcement continue to apply and have not materially changed.

The Mt Egerton drill intersections referred to in this announcement were prepared and first disclosed under the JORC Code 2004 (see ASX announcement dated 29 May 2013 and titled “High grade Egerton Gold Project Secured Under Option”). They have not been updated since to comply with the JORC Code 2012. The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and that all material assumptions and technical parameters underpinning the information in the original market announcement continue to apply and have not materially changed.

Information in this announcement relating to the Mt Egerton Gold Project is based on, and fairly represents, data compiled by Gascoyne’s Chief Geologist Mr Julian Goldsworthy who is a member of The Australasian Institute of Mining and Metallurgy. Mr Goldsworthy has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as Competent Persons under the 2004 Edition of the Australasian Code for reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Goldsworthy consents to the

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inclusion in this announcement of the data relating to the Mt Egerton Gold Project in the form and context in which it appears.

Forward-looking statements This announcement contains forward-looking statements which may be identified by words such as "believes", "estimates", "expects', "intends", "may", "will", "would", "could", or "should" and other similar words that involve risks and uncertainties. These statements are based on an assessment of present economic and operating conditions, and on a number of assumptions regarding future events and actions that, as at the date of this announcement, are expected to take place.

Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties, assumptions and other important factors, many of which are beyond the control of the Company, the Directors and management of the Company. These and other factors could cause actual results to differ materially from those expressed in any forward-looking statements.

The Company cannot and does not give assurances that the results, performance or achievements expressed or implied in the forward-looking statements contained in this announcement will actually occur and investors are cautioned not to place undue reliance on these forward-looking statements.

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Appendix 1:

JORC Code, 2012 Edition – Table 1 Section 1 Sampling Techniques and Data Mumbakine Well project

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

Historic Exploration results referred to are sourced from Company reports publicly available from the WAMEX open file reports from the Western Australia Department of Mine and Industry Regulation and Safety (DMIRS)

Criteria Commentary

Sampling • The Jim’s Vein and Central Prospect have been drilled using Rotary Air Blast (RAB) and Reverse Circulation (RC) by the companies Battle Mountain Australia (1993-1994) techniques and Compass Resources (1997). Stream Sediment, soil sampling, rock chip sampling were undertaken by Battle Mountain and Compass over the Jim’s Vein and Central prospect areas as well • Sample procedures followed by historic operators are assumed to be in line with industry standards at the time

• The drilling referred to is sourced from historic Company reports publicly available from the Western Australia Department of Mine and Industry Regulation and Safety (DMIRS) WAMEX Reports

• The reports containing the drill data related to the Jim’s Vein and Central Prospect are listed below:

Battle Mountain Australia (Inc), 1994 Warrawanda JV Project Final Combined Report for Year Ending February 1995 Exploration Licences E52/783, 803, 804, 8063, 809 &E52/810. Battle Mountain Report No CR45 (2Vols) WAMEX Report No. A045598

Compass Resources NL, 1997. Warrawanda Joint Venture Annual Report to December, 1997 Exploration Licences E52/803, 804, 806, 809, 1140, 1224 & 1225 (By Stuart H. Robinson) (3Vols) WAMEX Report No. A053243 Drilling • RC and RAB drilling techniques

Drill sample • Battle Mountain reports contain drill logs recovery • Compass reports contain drill logs

Logging • Detailed logging exists for the historic drill holes in the Battle Mountain and Compass reports.

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Criteria Commentary

Sub-sampling • RC chips were riffle split. RAB samples were initially 4m composite samples (unless otherwise noted) techniques and • Sample size was appropriate, and representative of the material being sampled given the width and continuity of the intersections being reported and the grain size of sample the material being collected preparation Quality of assay • Battle Mountain samples were submitted to MinLab Laboratory for gold analyses (0.01 ppm detection) and arsenic, some samples were analyses for Ag, Bi, Cu, Sb, Zn data and • Compass samples were submitted to Genalysis Laboratory for gold analyses (0.01 ppm detection), some samples were analysed for Ag, Bi, Cu, Sb, Zn, Co, Ni, Mo, Pb laboratory tests • No downhole geophysical tools etc. have been used at Dalgaranga. • The laboratory’s used internal CRMs Verification of • Intersections calculated from Battle Mountain and Compass Annual Technical reports as listed above publicly available from the WAMEX open file historic company sampling and reports from Western Australia Department of Mine and Industry Regulation and Safety (DMIRS) assaying • Documentation of the primary data is unknown but the Battle Mountain and Compass reports contain drill logs, assay and collar file details which have been collated by Gascoyne geologists and entered into the company’s drill data base. Location of data • The drill holes were originally drilled on local grids – the collar positions have subsequently been converted to MGA94 and loaded into the company database points • The grid system is MGA_GDA94 Zone 50

Data spacing • The RC and RAB holes are located on lines between approximately 50 and 100m spacings and between 20 and 50m along lines and distribution • No resources have been estimated at Jim’s Vein and Central Prospect Orientation of • Drilling sections are orientated perpendicular to the strike of the mineralised host rocks. This varies between prospects and consequently the azimuth of the drill holes data in relation also varies to reflect this. The drilling is angled predominantly at -60° which is close to perpendicular to the dip of the stratigraphy. to geological • No orientation based sampling bias has been identified in the data at this point. structure

Sample security • No information is available regarding sample security-chain of custody.

Audits or • Data is validated by the GCY Database Manager whilst loading into database. Any errors within the data are returned to relevant GCY geologist for validation. reviews

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Section 2 Reporting of Exploration Results: Mumbakine Well Project

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

Criteria Commentary

Mineral • The historic drill results referred to are situated on tenement number E52/3531. The tenement is 100% owned by Gascoyne Resources Limited. tenement and • The tenement is in good standing and no known impediments exist. land tenure status

Exploration • The tenement areas have been previously explored by numerous companies including BHP, Battle Mountain, Compass Resources, Giralia Resources and . done by other parties

Geology • Regionally, the tenement is located on the southern margin of the Sylvania Dome, an Archean granite – greenstone inlier on the southern edge of the Hamersley Basin. The tenement also straddles to the south an unconformable contact between the Collier and Edmund Group (Bangemall Basin) sediments where it disappears under laterite and transported cover to the south. • The Jim’s Vein and Central Prospect lie close to the southern contact of the granite – greenstones and the sedimentary rocks of the Bangemall Basin • Gold mineralisation is related to quartz stockworks and narrow quartz veins developed along the east- west granite /sediment contact Drill hole • The drill results referred to is sourced from historic Company reports publicly available from the WAMEX open file historic company reports from Western Australia Information Department of Mine and Industry Regulation and Safety (DMIRS). Open File DMIRS WAMEX Reports referenced:

Battle Mountain Australia (Inc), 1994 Warrawanda JV Project Final Combined Report for Year Ending February 1995, Exploration Licences E52/783, 803, 804, 8063, 809 &E52/810. Battle Mountain Report No CR45 (2Vols) WAMEX Report No. A045598

Compass Resources NL, 1997. Warrawanda Joint Venture Annual Report to December 1997, Exploration Licences E52/803, 804, 806, 809, 1140, 1224 & 1225 (By Stuart H. Robinson) (3Vols) WAMEX Report No. A053243

Data aggregation • All reported assays have been length weighted if appropriate. No top cuts have been applied. A nominal 0.5 ppm Au lower cut off has been applied methods • No metal equivalent values have been used. Relationship • The mineralised zones at Mumbakine Well vary in strike between the Jim’s Vein and Central prospect, they are relatively moderately to steeply dipping. The Battle between Mountain and Compass drill holes are angled so that intersections are orthogonal to the expected orientation of mineralisation. It is interpreted that true width is mineralisation approximately 70-100% of downhole intersections. widths and intercept lengths

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Criteria Commentary

Diagrams • A location map has been included within the main body of the text.

Balanced • Historic exploration results are being reported based on information collated from Open File WAMX Reports from Western Australia Department of Mine and Industry reporting Regulation and Safety (DMIRS) Drillhole locations sourced from historic reports.

Other • No other meaningful or material exploration data to be reported at this stage further related details will be reported in future releases when data is available. substantive exploration data

Further work • Upon the receipt of the Aeromagnetic Survey data, exploration programs will be designed and planned. It is envisaged that it will include exploration drilling of new areas on the project.

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