Gascoyne Resources : Near-Mine Exploration Delivers Breakthrough Discovery

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ASX ANNOUNCEMENT

8 February 2022

NEAR-MINE EXPLORATION DELIVERS BREAKTHROUGH WITH

DISCOVERY IMMEDIATELY NORTH OF GILBEY'S PIT

Drilling highlights potential extension to main ore source at Dalgaranga with strong, shallow mineralisation intersected to +200m depth and over a +300m strike length

Highlights:

• New and developing area of extensive mineralisation discovered immediately north of the main Gilbey's Open Pit at the Dalgaranga Gold Project.
• 17 of 21 shallow Reverse Circulation (RC) drill-holes have intersected mineralisation from 1m below surface across zones up to 18m wide and down to 53m below surface within a structural corridor directly along-strike from the Gilbey's Pit.
• The closest current RC intercept is only 140m north of the current mining front at the Gilbey's Pit with consistent mineralised intercepts achieved from multiple stacked zones over a 300m north-south corridor. Some of the better intercepts include:

1. 10m @ 1.8g/t from 12m, including 4m @ 3.2g/t from 14m (DGRC0718)

1. 3m @ 3.4g/t from 35m and 4m @ 1.6g/t from 42m and 2m @ 2.5g/t from 51m (DGRC0719)

1. 5m @ 3.6g/t from 13m (DGRC0720)

1. 8m @ 1.6g/t from 26m, including 1m @ 6.7g/t from 32m (DGRC0721) o 3m @ 4.6g/t from 41m, including 1m @ 11.6g/t from 43m (DGRC0722) o 6m @ 3.1g/t from 25m, including 2m @ 6.6g/t from 27m (DGRC0723)

1. 18m @ 1.2g/t from 2m, 4m @ 1.3g/t from 25m and, 3m @ 1.8g/t from 46m and, 16m @ 1.2g/t from 61m including 7m @ 2.4g/t from 66m (DGRC0738)

• 1. 8m @ 3.9g/t Au from 24m, including 4m @ 6.1 g/t Au (Historical AC Hole - DGAC0384)
• A deeper stratigraphic diamond hole completed beneath the newly-defined Gilbey's North target has successfully intercepted the projected down-dip extension of the mineralisation 140m along strike from 159-180mdown-hole (close to true width and assays awaited).
• The hole has confirmed that the stratigraphy and mineralisation style is identical to that seen in the main Gilbey's Pit to the south.
• A high-capability Topdrill RC drill-rig is now on-site at Dalgaranga undertaking a 5,000m RC program specifically targeting a potential link between the Gilbey's Mineral Resource and the emerging Gilbey's North prospect.
• Drilling is currently underway less than 50m from the Gilbey's Open Pit high wall.

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Gascoyne Resources Managing Director and CEO, Mr Simon Lawson commented: "This is an exciting early breakthrough for our team which strongly vindicates our two-prongedapproach of optimising our operations by targeting higher-gradeore sources while in parallel aggressively working to unlock what we believe to be the significant untapped potential in the near-mineenvironment.

"Intersecting strong gold mineralisation from just 140m north of the operating Gilbey's open pit is a really exciting development, particularly as the new Gilbey's North zone appears to have considerable depth and strike extent. Encouragingly, a diamond hole which we were able to drill quickly by tasking the existing rig on site to test the area down-dip of the new discovery has also come up trumps, intersecting similar mineralisation some 140m to the north.

"We now have an RC rig on site completing a 5,000m program to in-fill and extend the mineralisation, and we are really looking forward to seeing what it can deliver. Our objective will be to advance this new discovery as quickly as possible to resource status so we can get the engineers working on potential mine plans to bring it into our production schedule. This shows that our strategy is working.

"We have also been able to post a record month of gold production from Dalgaranga in January, with 7,900 ounces of reconciled production for the month. That is a great result, which shows that the improving production trend seen in the December Quarter is continuing.

"In light of the significant exploration success we are enjoying in the near-mine environment and the rapidly rising cost environment in the WA resource sector, we have also made the decision to slow down feasibility and evaluation work on development of the Melville deposit at Yalgoo. While this remains firmly part of our development plans for Dalgaranga, it clearly makes sense to prioritise ore in close proximity to the mill for the time being given the extremely elevated rates for haulage, mining and construction."

Gascoyne Resources Limited ("Gascoyne" or "Company") (ASX: GCY) is pleased to advise that it has discovered a significant zone of gold mineralisation immediately north of the Gilbey's open pit, the main ore source at its 100%-ownedDalgaranga Gold Project in Western Australia.

The new zone, known as Gilbey's North, has been outlined in shallow RC drilling immediately north of the Gilbey's pit (see Figure 2). The mineralisation commences from shallow depths (just 1m) and has so far been defined over a strike length of great than 300m, to a depth of almost 200m and over down-hole widths of up to 18-20m.

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Gilbey's North - Significant New Near-Mine Discovery

The Gilbey's North target is located <1km from the Dalgaranga plant.

The on-site geology team, under the guidance of former Geology Manager and now Chief Geologist Graham Gadsby, prioritised drilling in this area to follow up an historic air-core intercept of 8m @ 3.9g/t from 25m including 4m @ 6.1g/t (DGAC0384 - see Figure 2).

The historic intercept was previously thought to be of transported origin, however its position 250m along- strike from the expanding Gilbey's Pit and its shallow stratigraphic position meant that there was inherently very little risk involved in following this intercept up as part of the Company's rejuvenated near- mine exploration program (see ASX announcement, 20 December 2021).

Accordingly, a small program of shallow RC holes was designed and executed with an outstanding outcome, as outlined in this announcement.

The drilling has returned highly encouraging intercepts, all located outside the current Mineral Resource:

• 7m @ 1.0g/t from 33m, including 1m @ 2.9g/t from 38m (DGRC0716)
• 9m @ 1.2g/t from 33m, including 1m @ 6.4g/t from 37m (DGRC0717)
• 10m @ 1.8g/t from 12m, including 4m @ 3.2g/t from 14m (DGRC0718)
• 3m @ 3.4g/t from 35m and 4m @ 1.6g/t from 42m and 2m @ 2.5g/t from 51m (DGRC0719)
• 5m @ 3.6g/t from 13m (DGRC0720)
• 8m @ 1.6g/t from 26m, including 1m @ 6.7g/t from 32m (DGRC0721)
• 3m @ 4.6g/t from 41m, including 1m @ 11.6g/t from 43m (DGRC0722)
• 6m @ 3.1g/t from 25m, including 2m @ 6.6g/t from 27m (DGRC0723)
• 5m @ 1.0g/t from 25m (DGRC0724)
• 4m @ 3.2g/t from 12m, including 1m @ 7.4g/t from 13m (DGRC0731)
• 3m @ 2.5g/t from 3m, including 1m @ 6g/t from 5m (DGRC0737)
• 18m @ 1.2g/t from 2m, 4m @ 1.3g/t from 25m and, 3m @ 1.8g/t from 46m and, 16m @ 1.2g/t from 61m including 7m @ 2.4g/t from 66m (DGRC0738)
• 3m @ 1.4g/t from 1m, and 5m @ 1.5g/t from 59m including 1m @ 6.1g/t (DGRC0739)
• 8m @ 3.9g/t Au from 24m, including 4m @ 6.1 g/t Au (Historical AC Hole - DGAC0384)

The presence of a diamond drill rig onsite also gave the geology team the option of confirming the geology, structure and mineralisation style at depth with a cored hole. Initial logging of the Gilbey's North prospect diamond hole has confirmed that the mineralisation appears to extend down-dip to a depth of at least 150m below surface and that the stratigraphy and mineralisation is identical to an ore type termed "G-Fin" seen in the north end of the Gilbey's Open Pit.

The "G-Fin" material typically yields higher gold grades and is more sulphide-rich than the other ore types in the Gilbey's Main Pit. Previous processing of the G-Fin material has performed well through the Dalgaranga Mill and follow-up drilling is currently underway to confirm the potential connection of the lodes in the main pit with the Gilbey's North prospect.

A 5,000m RC drill program has been approved to test the extents of the Gilbey's North prospect as well as to follow up a number of other historic drill intersections within 1km of the Dalgaranga Mill.

A further 5,000m of RC drilling is planned to further test the orientation and extents of the emerging high- grade Hendricks prospect located only 3km from the mill, in-fill drilling of the shallow Archie Rose prospect in preparation for a maiden JORC resource, situated 7km from the mill, as well as follow-up testing of a number of historic drill intercepts within a 10km radius of the Dalgaranga Mill.

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Figure 2: Gilbey's North gold prospect recent RC drilling locations.