Black Dragon Gold provided quarterly activities report for the period ending December 31, 2022. Padbury Gold Project exploration yields early results: During the quarter, Black Dragon identified gold in soil anomalies at its 100 per cent-owned Padbury Gold Project near Meekatharra, Western Australia. As announced by the Company to the ASX on 28 November 2022, the program collected 541 samples, tested using the innovative CSIRO Ultrafine technique, and was the first significant gold exploration program at the project beyond historic, traditional surface prospecting activity.

Significant gold in soil anomalies identified included: 3,700m x 700m gold in soil anomaly at the Fenceline Prospect; 2,300m x 1,100m gold in soil anomaly at the Ross's Bore Prospect; 1,000m x 350m gold in soil anomaly at the Honey Pot Hill Prospect. The Padbury Gold Project is an intrusion related gold target located on the northern Yilgarn Margin. New gold anomalies detected through the sampling program are parallel with a regional WNW-ESE striking structural geological architecture.

Anomalies are coincident with prospecting activity where numerous gold nuggets and gold in quartz have been identified in surface quartz lag deposits. The application of the Ultrafine technique reduces the nugget effect and is designed to detect bedrock accumulation including gold from intrusion related gold structures. Soil sampling program After acquiring the project in July 2022, the Company commenced a soil sampling program focused on ridges and spurs where transported cover is thinnest, with samples spaced between 100m and 600m along sample lines.

This work identified several targets over a regional 8km gold trend, coincident with a WNW-ESE striking structural grain identified in previously conducted remote sensing interpretations. In addition, geochemical principal component analysis of the multi-element data shows there is a spatial association with elevated lanthanum-cerium-magnesium-calcium that indicates potential carbonate alteration in geological structures, and copper-silver-mercury that is a common association in the intrusion related gold deposits. These associations further indicate that the source of the anomalism is likely related to a bedrock accumulation of mineralisation.

Compilation of prospector gold occurrences The project includes a compilation of prospector identified gold nuggets on the Padbury permit. These location coordinates have been supplied to the Company under an agreement with prospectors. Gold has been recovered using non-mechanical methods (metal detecting) with both free gold nuggets and gold in quartz, which is presumed to be eroded from nearby bedrock sources.

In total, 71 nuggets and occurences have been recorded and follow a broad WNW-ESE trend similar to the gold- in-soil sampling. Salave Gold Project in northern Spain moves forward During the quarter, Black Dragon continued to progress its 1.5m+ oz Salave high grade gold project in Asturias, northern Spain, with regular discussions occurring between the Company and key stakeholders including the Asturian Regional Government. Black Dragon further progressed its Environmental Impact Assessment (EIA) permitting program following submission of its responses to public and administrative comments received during the public consultation period.

Black Dragon fielded several technical queries from the Asturian Government, which were duly responded to and cleared as part of open and ongoing dialogue. Company representatives remain in constant communication with the Asturian Regional Government to progress EIA approvals and relevant zoning changes for Salave Gold critical to its development pathway.