BMG Resources : OPERATIONAL UPDATE - ABERCROMBY DIAMOND DRILLING PROGRESSING

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ASX ANNOUNCEMENT

13 July 2022

OPERATIONAL UPDATE

ABERCROMBY DIAMOND DRILLING RAPIDLY PROGRESSING, AIR CORE RESULTS EXEPECTED SHORTLY

• 3,700m diamond drill (DD) program in full swing, at BMG's Abercromby Gold Project, with two holes substantially complete
• Drill hole 22ABDD006 (redrill of incomplete hole 21ABDD004) completed to target depth of 664.7m.
• Drill hole 22ABDD008 almost complete, currently 560m of planned 650m.
• Visual inspection of the core indicates both holes contain shearing with quartz veining and alteration corresponding with expected lodes positions
• Advancing towards a resource estimate with DD focused on infill and extensional drilling of the greater Capital Prospect
• Regional aircore drill program in the southern prospects at Abercromby complete, assay results expected in July
• Update on sale of Treasure development interest, Cyprus

Western Australian gold explorer BMG Resources Limited (ASX: BMG) (BMG or the Company) is pleased to provide an update on drill programs at the Company's 100% owned Abercromby Gold Project in the north-eastern goldfields of WA.

BMG Managing Director Bruce McCracken said:

"Our systematic drilling is demonstrating strong potential to further expand the mineralised envelope at the Capital Prospect as we progress towards a maiden resource for Abercromby.

"Diamond drilling at Abercromby continues 24/7, with encouraging early geological observations from two completed holes indicating that prospective alteration has been intersected in the predicted extensions of the East and West gold lodes.

"The air-core drilling testing large regional gold anomalies to the south has now been completed. Assays are expected this month, and the Company is excited by the opportunity to make a new discovery in this underexplored area of our tenure.

"We look forward to updating investors as our drilling progress continues and results come to hand."

Diamond Drilling

The DD program at the greater Capital Prospect area comprises 8 holes for ~3,700m, and is aimed at resource definition and extension of the high-grade gold lodes identified to date.

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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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The Company is pleased to report that the DD program is progressing well with two shifts operating. To date, almost two holes have been completed (22ABDD006 (completed) and 22ABDD008 (substantially completed)) to 664.7m and c.560m of 650m respectively, with the next hole (22ABDD009) to commence shortly (Figure 1).

Figure 1 - Plan view of proposed diamond drilling at Abercromby (set against SAM data). The final hole locations may be refined during the program, including the location of the 8th hole (22ABDD013) which will be determined from field observations gathered throughout the program.

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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 22ABDD006 is a re-drill of 21ABDD004, which suffered terminal drill rod failure at 360m prior to its target depth, and is designed to test extensions of the West Lode. 21ABDD004 intersected 10m @

11.71 g/t Au from 295m in the East Lode, 250m south of the existing mineralisation, confirming a very significant depth extent to the shallow, high-grade mineralisation at Capital.

Preliminary visual observations indicate that prospective shearing and quartz veining was observed in 22ABDD006 in the zone corresponding with the expected extensions of the East lode (Figure 2). An additional zone of sheared mafics with quartz veining and alteration was observed towards the end of the hole around 600 to 620m (Figure 3). In addition, both holes, 22ABDD006 and 22ABDD008, contain observed shearing with quartz veining and alteration corresponding with the expected extensions of East and West gold lodes positions.

Figure 2 - 22ABDD006 (296.8m - 305.2m) drill core from showing shearing and abundant quartz veining as part of the East Lode intercept.

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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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Figure 3 - 22ABDD006 (603.5m - 612.8m) drill core showing sheared mafic with quartz veining and alteration

Another key area to be tested in the DD program is the continuity of mineralisation intersected in 21ABDD003. The drilling will test around the deeper zones of the West Lode where 21ABDD003 intersected 13.8m @ 6.56m g/t Au from 446m.

Aircore Drilling

The Company has now completed all the holes that were part of the Aircore drilling infilling new, high- grade anomalisms intersected in the previous round of work in the Archer, Barrack and Capital South areas. The higher-grade gold assays were returned in positions with good potential for significant strike extent. These aircore targets form the foundation of BMG's growing prospect pipeline at Abercromby. A total of 59 aircore holes for 5,658m were completed. Initial assay results are expected in July.

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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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Figure 4 - Abercromby project area with SAM survey and previously announced aircore intercepts with recent drilling overlaid.

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