BMG Resources : Quarterly Report and Appendix 5B

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ASX ANNOUNCEMENT

31 January 2022

DECEMBER 2021 QUARTERLY ACTIVITIES REPORT

Highly productive quarter with wide, high-grade gold intercepts continuing to

expand the mineralised footprint at the Abercromby Gold Project

Key Highlights:

• 24-hole,4,095m reverse circulation (RC) drilling program completed at Abercromby with a number of very wide gold intercepts, punctuated by some very high grades confirmed by assays:
  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)
  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
• c.6,750m RC/ diamond drilling (DD) program at Abercromby Gold Project continues
• ~1,100m of ~2,750m DD program drilled, and expected to be fully completed by March 2022
• Field observations of DD indicate multiple thick intersections of alteration consistent with previously drilled mineralised lodes, punctuated by intensely altered zones; assays expected in February 2022
• Sub-audioMagnetic (SAM) geophysical survey identified high priority targets extending to the south of Abercromby; to be tested in early 2022 with 12,000m aircore program

Western Australian gold explorer BMG Resources Limited (ASX: BMG) (BMG or the Company) is pleased to provide shareholders with its quarterly activities report for the three months to 31 December 2021.

BMG is the 100% owner of three highly prospective gold exploration projects in Tier 1 mining jurisdictions - the Abercromby Gold Project in Wiluna, the Invincible Gold Project in the Central Pilbara and the South Boddington Gold Project in the Boddington region of Western Australia.

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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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During the three months to 31 December, BMG was primarily focused on undertaking major drill programs and other exploration initiatives at its 100% owned Abercromby Gold Project in WA. The results of these programs continue to increase confidence for the presence of significant open-pittablehigh-grade gold mineralisation at the Project.

Abercromby is favourably located in an established mining region; see Figure 1. A number of major producing gold mines and gold processing plants are in proximity to Abercromby. Access to infrastructure in the region will be positive for future development proposals that may be considered by the Company once a resource is delineated.

Figure 1 - Location Abercromby in an established gold mining region with other major operations highlighted

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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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Activities During the Reporting Period

Abercromby Project

RC drilling completed

On 19 October 2021, BMG announced that the RC component of the c.6,000m (now 6,750m) drilling program at Abercromby had been completed and that a ~2,000m (now 2,750m) DD program was underway. In total, 24 RC holes were completed for 4,095m of drilling. Some of the RC holes failed to reach depth due to water ingress and are being completed as part of the DD program.

First laboratory RC assays, based on 4m composite assays, were received during the reporting period and reported on 19 October 2021. The definitive 1m RC assays were reported on 25 January 2022, subsequent to the reporting period. Selected results on a hole-by-holebasis for the returned 1m sampling assays* 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

*Note:While there is some variation at the margin, the overall results are consistent with and confirm the 4m composite assays.

The 1m assays confirm and build upon the 4m results reported on 19 October 2021, which were preliminary.

The 1m assay results are more significant due to their higher level of sample quality and collection rigour, and are considered more definitive in assay determination for downhole sampling.

All holes drilled at the Capital Prospect intersected gold mineralisation and confirmed significant extensions of the known mineralisation, inclusive of extremely high grades. These results reinforced the Company's belief in the strong potential to deliver a significant, high-grade gold resource at Abercromby.

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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 program also identified a new eastern lode not previously intersected by historical drilling, opening up an area for a sizeable extension of the potential resource envelope at Capital.

Step-out drilling to the north of the Capital Prospect continued to intersect gold mineralisation, providing encouragement that the high-grade mineralisation at Capital extends continuously for a further 500m to the Capital North Prospect - suggesting a much larger mineral system.

Diamond drilling commenced

During the reporting period, the Company completed five of the nine scheduled diamond holes for 1,100m out of the planned circa. 2,100m program. This program has now been expanded from 9 to 10 holes for circa. 2,750m, with an additional 650m hole added to the program to test deeper extensions of the orebody.

The diamond drilling component of the program is aimed at testing the high-grade zones at Capital and test deeper extensions of the high-grade orebody, now two 650m holes (previously one) as part of the program.

Diamond drilling completed five RC holes (including one hole from the 2020 drill program) that were terminated early due to water ingress. The remaining holes are to test the down dip and deeper continuity of the known mineralisation up to 500m below surface.

Areas tested at depth include the zones of thick, high-grade mineralisation already identified at deeper levels, where significant intersections from BMG's previous drilling has included:

• 26m @ 6.07g/t Au from 192m including 7m @ 21.22g/t Au from 192m (20ABRC0004)
• 37m @ 1.70g/t Au from 127m including 3m @ 15.29g/t Au from 157m (20ABRC0008)
• 37m @ 2.58g/t Au from 144m including 8m @ 8.1g/t Au from 173m (20ABRC0010)
• 36m @ 1.30g/t from 232m including 8m @ 2.94g/t from 252m (21ABRC004)

The remaining holes in the program are expected to be completed by March 2022.

1. assay results are not yet available; however, encouragingly, the DD has intersected wide intervals of quartz-carbonate veining +/- sulphides at the anticipated lode positions.

Within these broad zones, more intensely altered intervals exist, characterised by intense bleaching (sericite), silica flooding and accessory pyrite. It is these intervals that are interpreted to potentially represent very high-grade portions of the gold deposit. The thick alteration zones intersected are in the position predicted as the potential extension of the known gold lodes, validating our geological model for the Capital Prospect.

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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 2 - 21ABDD003 (242.5-243m) showing silica flooding, carbonate altered interval with

accessory pyrite, indicative of gold mineralisation.

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