Gold and lithium explorer BMG Resources Limited (ASX: BMG) (BMG or Company) is pleased to announce a maiden Mineral Resource of 11.12Mt @ 1.45 g/t Au for 518koz Au for the Capital Deposit, part of its Abercromby Gold Project in the Wiluna-Agnew region of Western Australia.

The maiden Mineral Resource, combined with metallurgical work that confirmed the orebody as free milling across all zones1 , is a strong indicator of the potential for a straight-forward open-pit mining operation. BMG will now commence development studies alongside high-impact expansion drilling to further convert Inferred resources to the higher-confidence Indicated category. BMG is also preparing for further exploration activities across the Abercromby Project area to test large regional gold anomalies to the south, which could deliver further Capital-style discoveries.

BMG Resources Managing Director Bruce McCracken said: 'This large maiden Mineral Resource at Abercromby, delivered at a discovery cost of just $8.35 per ounce, is a step-change in value for BMG. Through efficient use of exploration spend across three major drilling campaigns, BMG has shifted from pure explorer to potential developer with a large resource base and huge potential for further growth. 'Abercromby now has a metric for valuation that BMG can use to quantitatively demonstrate to the market its success in leveraging value from the drill bit. 'Abercromby is well located for development. The potential to monetise the project in a rapidly appreciating gold price environment, underpinned by this maiden resource for the Capital Deposit, places BMG in an enviable position as we continue to pursue sustained, long-term shareholder value.'

The Abercromby Gold Project

The Abercromby Gold 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 favourable for gold mineralisation, with drilling having intersected multiple thick intervals of high-grade gold mineralisation confirming 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). The mining leases provide for an expedited development pathway for the Company to secure mining approval. Since acquiring the project in mid-2020, BMG has completed three reverse circulation and diamond drill programs primarily targeting the high-priority Capital Deposit. The Capital Deposit sits within the northern third of Abercromby's 12km2 project area. In parallel to the drill program, BMG has completed metallurgical test work on core samples from the Capital Deposit which confirmed its free-milling status and therefore amenability to conventional carbon-in-leach (CIL) processing, with high gold recoveries achieved.

A comprehensive legacy dataset has been supplemented with several drill programs' worth of additional data generated by BMG and considered for this Mineral Resource Estimate. Checks on the legacy data by comparison to the new data have satisfied BMG that the data is appropriate for use in the Mineral Resource Estimate (excluding legacy aircore samples from hole series HJVAC). Ordinary kriging was used to estimate the grade of blocks within seven modelled domains and estimates were calculated separately for oxide and fresh-sub domains. Top cuts were utilised to reduce overestimation of grade caused by high-grade outlier assay results. A QAQC program employing certified reference material standards, together with blanks and duplicates have ensured data veracity. Satisfactory QAQC results from BMG's drilling, combined with favourable comparisons with legacy data populations, have allowed BMG to attribute a high level of confidence to the legacy dataset (excluding historic aircore drilling series HJVAC). Assumed bulk-density values have been assigned according to domains delineated by geological logging to facilitate tonnage calculations.

Contact:

Tel: +61 487 934 880

Email: gmcartney@canningspurple.com.au

Competent Person Statement

The information in this report that relates to Exploration Targets, Exploration Results, Mineral Resources or Ore Reserves 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 consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

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