BMG Resources : AIRCORE HIGHLIGHTS SIGNIFICANT REGIONAL GOLD POTENTIAL

ASX ANNOUNCEMENT

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02 May 2022

AIRCORE HIGHLIGHTS SIGNIFICANT REGIONAL GOLD POTENTIAL AT

ABERCROMBY

Highlights:

• ▪ Aircore drilling (AC) has delineated a series of highly prospective gold anomalies within the Abercromby Gold Project, and opened up multiple target areas for more intensive exploration

• ▪ 4m @ 3.58g/t Au from 52m (22ABAC061) at the Archer Prospect intersected an interpreted southern extension of the Abercromby shear, open for some 1.4km

• ▪ 4m @ 1.19g/t Au from 16m (22ABAC117) punctuates an emerging 1.6km target zone with direct continuity from the high-grade gold of the West Lode at Capital

• ▪ 4m @ 1.46g/t Au from 44m (22ABAC014) at the Barrack Prospect reinforces the potential prospectivity of the area

• ▪ Over a dozen other 4m intercepts > 200ppm encountered in AC drilling

• ▪ Gold occurrences are conformable with SAM anomalism, which is known to map prospective structures at Abercromby, and suggests strong potential for further gold mineralisation at depth and along strike

• ▪ Further AC and RC drilling being planned to follow-up this outstanding opportunity for a greenfields discovery

Western Australian gold explorer BMG Resources Limited (ASX: BMG) (BMG or the Company) is pleased to advise that assay results returned from the recent 10,312m aircore drilling (AC) program have highlighted strong potential for further gold discoveries at the Company's 100% owned Abercromby Gold Project in the

Wiluna greenstone belt of WA.

The AC program was completed south of the highly mineralised Capital Prospect in February 2022, testing the significant prospective 5km strike potential between Capital and the previously identified Barrack/Archer prospects to the very south of the Abercromby tenement area.

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BMG Resources | ACN: 107 118 678 | T: (61 8) 9424 9390 | E:[e-mail] |www.bmgl.com.au

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Hole ID	EOH Depth	Intercept
Metres	Au g/t	From
22ABAC010	99	4	0.21	4
22ABAC011	111	4	0.21	4
3	0.25	108
22ABAC012	102	4	0.36	8
22ABAC014	80	4	1.46	44
22ABAC022	81	4	0.29	28
4	0.87	56
22ABAC028	54	4	0.58	28
22ABAC029	75	4	0.32	24
22ABAC040	87	4	0.65	24
22ABAC047	71	4	0.27	24
22ABAC050	59	4	0.31	48
22ABAC051	117	4	0.20	104
22ABAC061	99	4	3.58	52
22ABAC115	56	4	0.24	24
22ABAC117	80	4	1.19	16

The AC drilling broadly tested a number of targets generated by the SAM survey completed in December 2021 (refer ASX Release on 9 Dec 2021, Pipeline of Exploration Targets Grows at Abercromby). The SAM survey identified an extensive strike of SAM anomalism trending from the known gold-bearing structures at Capital into areas to the south where little or no drilling had taken place.

A total of 16 highly anomalous (+200ppb Au) results were encountered in 14 separate holes (refer to Table 1 below), providing compelling impetus for BMG to expand its work program at Abercromby to include these greenfields areas.

BMG Managing Director Bruce McCracken said the significance of the compelling first pass AC results marked what has been a fantastic week of results across the Abercromby Project, following the recent release of highly encouraging diamond drilling intercepts at Capital.

"The AC program has been successful at achieving the strategic aim of generating a pipeline of greenfields targets that we can progress contemporaneously with developing known high-grade gold mineralisation at Capital.

"The coincidence of geochemical and geophysical indicators at these greenfields targets is a delight and reinforces our view of strong prospectivity.

"With large untested distances either side of many of these new gold anomolies, we are encouraged that one or more Capital style deposits could easily be hiding in close proximity.

"We look forward to investigating these intercepts further in our next work program."

Table 1 - Compilation of Significant 2022 Aircore Results

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BMG Resources | ACN: 107 118 678 | T: (61 8) 9424 9390 | E:[e-mail] |www.bmgl.com.au

Discussion of significant intercepts

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The AC program tested targets generated from the SAM surveys which identified several high priority structural settings, including at the Barrack and Archer targets where gold mineralisation has been previously intersected with little follow-up drilling. The nature of the AC drilling - being 80m spaced holes on traverses often spaced 150 to 200m apart - together with the very limited previous drilling of 120m spaced holes with similar traverse spacing, means that the drill testing to date is still very broadly spaced.

The anomalous gold intercepts returned from the drilling are therefore very significant and likely to be indicative of the potential for further gold mineralisation in the area.

Figure 1 - Abercromby project area with SAM survey tilt derivative conductivity image showing new aircore results (squares with significant intercepts highlighted) along with pre-existing results (circles)

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BMG Resources | ACN: 107 118 678 | T: (61 8) 9424 9390 | E:[e-mail] |www.bmgl.com.au

Better intercepts from the AC drilling include:

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• • 4m @ 1.19g/t Au from 16m (22ABAC117) - situated within SAM anomalism with direct continuity to mineralisation at Capital, and adds to a series of historic anomalous gold results in the same area which can be traced for around 1.7km.

• • 4m @ 3.58g/t from 52m (22ABAC061) - situated in a previously untested position, now interpreted to be the south-eastern extension of the Abercromby shear. This area is open for around 1.4km, some 600m to the north-west, and 800m to the south-east aligning with anomalism defined by other BMG drilled AC holes nearby to the Archer prospect.

• • 4m @ 1.46g/t Au from 44m (22ABAC014) - situated near the Barrack prospect, open for several hundred metres to the north-west, and coincident with SAM anomalism.

Next Steps

BMG is now in the process of securing an AC rig to undertake regional follow-up drilling across the three key zones highlighted from this program (Capital South, Archer and Barrack), with infill traverses planned. We anticipate having a rig on site in the next 4 to 6 weeks.

Additionally, BMG is planning to redrill a diamond hole (abandoned due to technical difficulty in the last work program), to test for the southern extension of the West Lode at Abercromby, at the earliest opportunity. The Company has secured a diamond rig which we expect to have on site later this month.

BMG will update the market as to the specific timing of this follow-up drilling in due course.

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BMG Resources | ACN: 107 118 678 | T: (61 8) 9424 9390 | E:[e-mail] |www.bmgl.com.au

About the Abercromby Project:

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The Abercromby Project is located on the Wiluna Greenstone Belt, one of Western Australia's most significant gold-producing regions with a gold endowment of +40Moz Au - second only to Kalgoorlie globally in terms of historic production.

The geology at Abercromby is very favourable for gold mineralisation, with historic drilling at Abercromby having intersected multiple thick intervals of high-grade gold mineralisation to confirm the presence of a large high-grade gold system.

BMG holds 100% of Abercromby, which comprises the gold and other mineral rights (ex-uranium) of two granted mining leases (M53/1095 and M53/336).

Figure 2 - Map showing the regional location of the Abercromby Gold Project with other major gold projects in the region also highlighted.

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BMG Resources | ACN: 107 118 678 | T: (61 8) 9424 9390 | E:[e-mail] |www.bmgl.com.au