BMG Resources : ASSAYS CONFIRM VERY HIGH GOLD GRADES AT ABERCROMBY

ASX ANNOUNCEMENT

25 January 2022

only	ASSAYS CONFIRM VERY HIGH GOLD GRADES - INCLUDING 1M OVER
	100g/t Au - AT ABERCROMBY
use		▪ BMG has received assay results for the 1m samples from the most recent RC drilling at
	Abercromby
	▪ A number of very wide intercepts have been highlighted, punctuated by some very high gold
	grades:
	o 6m @ 19.8gpt from 83m (21ABRC007), incl 1m @ 100.39gpt from 83m
	o 34m @ 1.26gpt Au from 143m (21ABRC007)
	o 5m @ 3.97gpt Au from 238m (21ABRC007)
personal
	o 60m @ 1.46gpt Au from 127m (21ABRC005), incl 19m @ 2.87gpt from 159m
	o 50m @ 1.08gpt Au from 101m (21ABRC003), incl 4m @ 8.61gpt from 123m
	o 33m @ 1.38gpt Au from 233m (21ABRC004), incl 12m @ 2.47gpt from 250m
	o 35m @ 1.07gpt Au from 19m (21ABRC019), incl 13m @ 1.98gpt from 39m
	o 2m @ 6.47gpt from 80m (21ABRC019)
	o 25m @ 1.15gpt Au from 218m (21ABRC006), incl 9m @ 1.99gpt from 223m
	▪ The results are broadly consistent with and confirm the previously announced 4m composite
	sampling - refer ASX announcement on 19 October 2021
	▪ Extensional and infill diamond drilling at the Capital Prospect continues
	▪ Aircore drilling of high-prioritysub-audio magnetic targets underway

W stern Australian gold explorer BMG Resources Limited (ASX: BMG) (BMG or the Company) is pleased to report that it has received all outstanding assay results for the reverse circulation (RC) drilling program which was completed in 2021 at its Abercromby Gold Project in the north-eastern Goldfields of WA.

ForThese new assays confirm and build upon results reported on 19 October 2021, when preliminary 4m composite results were made public. The 1m assay results are, however, more significant due to their higher level of sample quality and collection rigour, and are considered more definitive in assay determination for downhole sampling.

The 1m assays illustrate wide, continuous zones of gold mineralisation at Abercromby, inclusive of extremely high grades.

BMG Managing Director Bruce McCracken said:

"The 1m results complete the story on the RC drilling completed in mid to late 2021 and supersede preliminary results of the 4m samples already announced. The 2021 RC program has succeeded in delivering some fantastic intercepts in what were gaps in the existing dataset.

Page | 1

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

"As indicated previously, the RC drilling has identified a new eastern lode which has not been previously intersected by historical drilling. This is an exciting development that opens up an area for a sizeable extension of the potential resource envelope at Capital.

only"Step-out drilling to the north of the Capital Prospect continues to intersect gold mineralisation, which provides encouragement that the high-grade mineralisation at Capital extends continuously for a further 500m to the Capital North Prospect - potentially significantly increasing the strike of mineralisation and suggesting a much larger mineral system.

"We are delighted by the increased resolution the 1m sampling has given, especially where individual assays of over 100gpt Au are returned.

"We're excited by the results to date and the drilling programs underway, and look forward to pressing ahead in the usecoming year."

Significant Gold Intersections Confirmed

The previously announced laboratory assays for the RC drilling were on the basis of 4m composite samples, refer ASX release 19 October 2021. The 1m RC drill sample assays now received have confirmed the outstanding high-grade gold

intercepts that were indicated by the 4m composite sampling and are set out below. For full details of the RC drill personalholes and assay results refer to the tables in Schedule 1.

Selected results on a hole-by-hole basis for the returned assays from Abercromby are shown below:

▪ 6m @ 19.8gpt from 83m (21ABRC007), incl 1m @ 100.39gpt from 83m ▪ 34m @ 1.26gpt Au from 143m (21ABRC007)

▪ 5m @ 3.97gpt Au from 238m (21ABRC007)

▪ 60m @ 1.46gpt Au from 127m (21ABRC005), incl 19m @ 2.87gpt from 159m ▪ 50m @ 1.08gpt Au from 101m (21ABRC003), incl 4m @ 8.61gpt from 123m ▪ 33m @ 1.38gpt Au from 233m (21ABRC004), incl 12m @ 2.47gpt from 250m ▪ 35m @ 1.07gpt Au from 19m (21ABRC019), incl 13m @ 1.98gpt from 39m ▪ 2m @ 6.47gpt from 80m (21ABRC019)

▪ 25m @ 1.15gpt Au from 218m (21ABRC006), incl 9m @ 1.99gpt from 223m

While the current drilling program is ongoing with the diamond drilling (DD) phase yet to be completed, these RC Foresults have confirmed extensions to multiple high-grade mineralised zones at the Capital Prospect - which was one f the primary goals for the current program. It is noted that a number of the RC holes did not reach target depths

due to unfavourable ground conditions and will be completed as part of the current DD program.

BMG's interpretation of mineralisation at the Capital Prospect is there are a number of north-west trending mineralised shear zones (lodes) that contain internal high-grade, plunging gold shoots. Encouragingly the latest drill results have further confirmed the two broadly defined steeply north-east dipping mineralised zones, the Western lode and Eastern lode, as well as the Flat Lode to the east. In addition, there are also indications that there may be further mineralised zones in the Capital area, both to the east and west of the main zones. Further information on the nature of the lodes is given in the ASX release dated 19 October 2021.

Page | 2

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

onlyuse

personalFigure 1 - Plan view of current drill program at the Capital Prospect, showing drilled RC holes (green), with SAM survey 2VD conductivity image in the background over aerial photograph.

ForFurther Work

Diamond drilling continues in 2022 to advance new holes, as well as those requiring diamond tails such as 21ABRC007, see ASX release 20 January 2022.

To date, all diamond core sample results are pending with the first assays expected in February. Upon receipt of outstanding assays, the BMG geological team will assess grade distribution and patterns with a view to building a better understanding of the nature and extent of the gold mineralisation at Abercromby.

In parallel and as they become available, results from the current generative c.12,000m aircore program, see ASX release 20 January 2022, will be interpreted with a view to the next round of RC drilling planned for later in the year.

Page | 3

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

About the Abercromby Project:

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

onlyproduction.

The geology at Abercromby is very favourable for gold mineralisation, with historic drilling at Abercromby having

i tersected multiple thick intervals of high-grade gold mineralisation to confirm the presence of a large high-grade g ld 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).

For usepersonal

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

This announcement has been authorised for release by Bruce McCracken, Managing Director of BMG Resources Limited.

***ENDS***

Page | 4

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

Competent Person Statement

The information in this report that relates to Exploration Targets, Exploration Results, Mineral Resources or Ore onlyReserves is based on information compiled by Mr Ben Pollard, a Competent Person who is a Member of the Australian Institute of Mining and Metallurgy. Mr Pollard is the Principal of Cadre Geology and Mining Pty Ltd and has been

retained to provide technical advice on mineral projects.

Mr Pollard has sufficient experience that is relevant to the style of mineralisation and type of deposits under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the 'Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Pollard

useconsents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Disclaimer

Forward looking statements are statements that are not historical facts. Words such as "expects", "anticipates", personal"believes", "potential", "may" and similar expressions are intended to identify forward looking statements. These st tements include, but are not limited to, statements regarding future production, resources and reserves and

exploration results. All such statements are subject to risks and uncertainties many of which are difficult to predict a d generally beyond the control of the Company, that could cause actual results to differ materially from those expressed in or implied by the forward looking statements. Investors should not construe forward looking statements as guarantees of future performance due to the inherent uncertainties therein.

For further information, please contact:

B uce McCracken

Managing Director

BMG Resources Limited

Phone: [phone]

Email:[e-mail]

ForFraser Beattie

Media and investor relations

Cannings Purple

Phone: [phone]

Email:[e-mail]

Page | 5

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