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 Australia. “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) Page 2 of 14 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 Mining 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. Page 3 of 14 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. Page 4 of 14 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 Page 5 of 14 Figure 5: Gascoyne Resources Project Map Page 6 of 14 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.