Black Dragon Gold : Quarterly Report & Cashflow

EIA dossier on public comments for Salave Gold project submitted to Government Black Dragon acquires Western Australian gold projects

Sallave Investigation Permit extended

Drilling permit issued for Salave Gold Project

2 8 J U L Y 2 0 2 2

onlySignificant milestones across expanded gold portfolio

Activities report for quarter ending 30 June 2022

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Black Dragon Gold ("ASX:BDG; Black Dragon; and or the 'Company'") is pleased to provide the following quarterly activities report for the period ending 30 June 2022.

Managing Director, Gabriel Chiappini said:

"Significant progress was made at the Salave Gold Project during the Q2-CY22 June quarter, and we are pleased to have received significant government support, with an 18-hole drilling permit granted over the Company's current long tenured Mining Concessions.

"The permitting follows on from Black Dragon's successful 2018 drilling campaign, which confirmed the orientation of high-grade gold mineralisation and identified new areas of mineralisation that opened the deposit to the northwest, southeast and at depth.

"Subsequent to the end of the June quarter, the Company acquired gold projects covering 418km2 in Western ForAustralia's highly prospective Yilgarn Craton area.

"Black Dragon's maiden entry into Western Australia forms a key part of the Company's s strategic growth plans and provides Black Dragon shareholders with exposure to exciting early-stage exploration opportunities in a proven gold region."

Figure 1: Marlee Gold Projects in Western Australia

Operational update

Salve Gold Project - Northern Spain

onlyBlack Dragon continued to progress its 100 per cent owned Salave Gold Project in Asturias, northern Spain, during the June quarter.

The Government of the Principality of Asturias ('Government') issued Black Dragon with an 18-hole drilling permit for the Salave Gold Project, as announced in the ASX statementon 6 April.

This was followed by a three-year extension to the Sallave Investigation Permit, which allows the Company to carry out further exploration outside and contiguous to its current mining concessions. The newly granted Investigation Permit includes 94 mining grids, covering approximately 2,655 hectares.

useThe June quarter also saw Black Dragon submit to the Government its responses to the public and administrative comments received during the public consultation period for the Environmental Impact Assessment for Salave Gold.

Entry into Western Australian gold projects

Subsequent to the end of the quarter, and as announced in the

ASX statementon 6 July, Black Dragon has acquired both the personalPadbury Gold Project and Ivan Well Project in the highly

prospective Yilgarn Craton area of Western Australia.

The acquisition marks Black Dragon's maiden entry into Western Australia, with the acquisition to be completed by purchasing 100 per cent of private company Marlee Gold Pty Ltd.

It forms a key part of the Company's strategic growth plans, providing Black Dragon with a quality exploration portfolio to complement its flagship Salave gold project in northern Spain.

The Company is preparing an exploration program for the newly acquired assets, consisting of further integration and interpretation of remote sensing and geophysical data, regional reconnaissance and mapping, as well as soil geochemistry across the main structural trends and areas of gold occurrences.

Subject to the outcomes of these programs, the Company will design appropriate drill programs to test the targets.

ForRelated party costs

During the quarter, the Company paid a total of $108,000 to related parties for Director fees & salaries.

Tenement holding

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	In accordance with ASX Listing Rule 5.3.3 please find below the Company's tenements as at 30 June 2022.
		Concession Name		Registration		Area (Ha)	Date Granted	Expiration Date
				Number
		Dos Amigos		24.371		41.99	Sep 10, 1941	Oct 10, 2045
		Salave	25.380	67.98	April 10, 1945	Oct 10, 2045
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	Figueras		29.500		212.02	Jan 25, 1977	Jan 25, 2037
	Demasía				92.55
		Ampliación a Figueras	29.969	10.99	Nov 9, 1988	Nov 9, 2048
		Demasía		68.85
personal
	Segunda Ampliación a		28.820		100.04	Sept 16, 1981	Sept 16, 2041
	Figueras
		Demasía				67.55
		Subtotal		661.97
		Investigation Permit		Registration		Area (Ha)	Date Granted	Expiration Date
		Name		Number
		Sallave	30.812	2.655	April 2022	Extended for
								further 3 years
		Total		3,316.97
	- ENDS -
For
	FURTHER INFORMATION
	Shareholders contact			Media contact
	Gabriel Chiappini			Josh Lewis
	Managing Director			Investor Relations (Australia)
	Black Dragon Gold			Spoke Corporate
	M: [phone]			M: [phone]
	[e-mail]		[e-mail]

ABOUT BLACK DRAGON GOLD

onlyBlack Dragon Gold (ASX: BDG) is an Australian company with a global portfolio of exploration assets. The Company's flagship project is Salave, one of the largest undeveloped gold projects in all of Europe. Salave is 100 per cent owned by the Company and situated in the North of Spain in the province of Asturias. Recently the Company acquired local mining explorer Marlee Gold Pty Ltd as part of its growth strategy. The deal includes the purchase of three permits with early- exploration discovering near surface gold. For more information visit www.blackdragongold.com.

ABOUT - SALAVE PROJECT

useThe project has a Measured Mineral Resource of 1.03 million tonnes grading 5.59 g/t Au, containing 0.19 million ounces of gold; an Indicated Mineral Resource of 7.18 million tonnes grading 4.43 g/t Au, containing 1.02 million ounces of gold, plus Inferred Resources totalling 3.12 million tonnes grading 3.47 g/t Au, containing 0.35 million ounces of gold.

The information in this announcement that relates to the Mineral Resource estimate for the Salave project was first released by the Company in its news release entitled 'New NI 43-101 Mineral Resource Estimate Increases Resources at Salave' dated 25 October 2018.

Black Dragon confirms that it is not aware of any new information or data that materially affects the information included in the original announcement and that all material assumptions and technical parameters underpinning the estimate in the

previous announcement continue to apply and have not materially changed.

personalA full technical report summarising the Mineral Resource estimate completed by CSA Global is available on the Company's web site (www.blackdragongold.com) and posted on SEDAR. In addition to the current Mineral Resource, historical

exploration work suggests there is the potential for additional mineralisation within Black Dragon's landholdings. For

For personal use only

Rule 5.5

Appendix 5B

Mining exploration entity or oil and gas exploration entity

quarterly cash flow report

Name of entity

BLACK DRAGON GOLD CORP.
ABN	Quarter ended ("current quarter")
625 522 250	30 June 2022

Consolidated statement of cash flows	Current quarter	Year to date
			CAD$'000	(6 months)
				CAD$'000
1.	Cash flows from operating activities
1.1	Receipts from customers	-	-
1.2	Payments for
	(a)	exploration & evaluation	(94)	(208)
	(b)	development	-	-
	(c)	production	-	-
	(d)	staff costs	(139)	(240)
	(e)	administration and corporate costs	(227)	(484)
1.3	Dividends received (see note 3)	-	-
1.4	Interest received	-	-
1.5	Interest and other costs of finance paid	-	-
1.6	Income taxes paid	-	-
1.7	Government grants and tax incentives	-	-
1.8	Other (provide details if material)	-	-
1.9	Net cash from / (used in) operating	(460)	(932)
	activities
2.	Cash flows from investing activities
2.1	Payments to acquire or for:
	(a)	entities	(9)	(9)
	(b)	tenements	-	-
	(c)	property, plant and equipment	-	-
	(d)	exploration & evaluation	-	-
	(e)	investments	-	-
	(f)	other non-current assets	-	-

ASX Listing Rules Appendix 5B (17/07/20)	Page 1
+ See chapter 19 of the ASX Listing Rules for defined terms.