Chesser Resources Limited reported on its maiden Mineral Resource estimate ("Resource") over Karakara at the Diamba Sud Gold Project in Senegal, West Africa. The Diamba Sud Gold Project covers an area of 53.2km2 and is located in eastern Senegal within the highly prospective Senegal Mali Shear Zone orogenic belt. The Project is located 12km southwest of Barrick's Loulo mine (12.5 million ounces) and only 7km west of Barrick's Gounkoto mine (5.5 million ounces), both across the border in Mali.

Karakara is located 1.2km southwest of Area D and over a geochemical anomaly coincident with the interpreted trend of the Northern Arc structure. Mineralisation is predominantly associated with quartz-carbonate-hematite-albite-pyrite alteration within hydrothermally altered brecciated sedimentary rocks. Drilling has defined shallow, high-grade mineralisation over at least ~250m of strike.

The Karakara maiden Mineral Resource estimate was undertaken by Mr. Brenton McWhirter Member of Australian Institute of Geoscientists ("MAIG") and Mr. Andrew Grove (MAIG) and includes all drilling up to 1 September 2022 using Ordinary Kriging estimation methodology. The Karakara Resource has been reported in accordance with the JORC Code (2012) and is effective as of 26 October 2022. The Mineral Resources were reported within a pit shell using metal price assumptions of $1,800/oz gold, input parameters from the updated Scoping Study and were reported above a 0.5g/t gold cut-off grade ("COG").

Full details of the Resource Estimation can be found in Attachment 1 and JORC tables at the end of this report. The key attributes of the maiden Mineral Resource at Karakara are as follows: High-grade ounces: 116koz @ 2.1g/t gold which is relatively insensitive to changes in COG; High-value ounces: for future processing plant located on the Diamba Sud tenement, ~1.5km to the northeast and Continuous mineralisation: mineralised structures continuous over +250m strike. Exploration upside: opportunities to extend mineralisation along strike and on margins of defined mineralization High confidence Resource: 59% of the ounces falling within the Indicated Classification.

In preparation for updating the Diamba Sud Scoping Study reported by the Company on 15 March 2022 ("Original SS") with the maiden Karakara resource and the impending update of the Area D resource, Chesser became aware of an issue with the mining schedule used in the Original SS model. The mining schedule used was not derived from the Original SS pit designs but a larger optimisation shell. A revised mining schedule generated from the Original SS pit designs resulted in a 13% reduction in recovered gold and a 9% reduction in economics compared to the Original SS.

Whilst this error is disappointing, the project remains robust with very strong economics and rapid payback, and the Mineral Resources remain valid. The company expects the reduced production will be recovered, and the economics will be improved with the inclusion of the Karakara maiden resource and a pending update to the Area D resource in an updated Scoping Study expected to be completed during the December 2022 quarter. The updated mining schedule now agrees with the pit design.

The use of the updated mining schedule resulted in a 3% reduction in total material mined, a 20% reduction in ore tonnage, a 6% increase in grade and a 13% reduction in contained gold. The SS financial model was re-run using the correct mining schedule keeping all other parameters consistent with the SS published on 15th March 2022. The variances in mining and processing costs are due to the change in portions of oxide and fresh materials in the new mining schedule only as no change to the basis of the costs has been made.

The updated schedule resulted in a negative 9% impact on the Project post tax NPVCF5% using a gold price of US$1600/oz, reducing it from $224 million to $203 million. With the addition of Karakara Mineral Resources and the updated Area D resources the Company expects to see a significant uplift in the Project economics. The economics from the updated SS model continue to clearly demonstrate a robust highly economic project, NPVCF5% $203 million IRR 47% with a 17-month payback.

The updated mining schedule has condensed gold production with and average of 100koz pa produced from the project over 6 years at a low AISC of $784/oz. The lower AISC compared to the previous model is a result of higher annual gold production, shorter mine life reducing the carrying costs and a larger portion of the overall ore feed being oxide: Previous oxide 35% tonnes and 41% ounces and Updated schedule oxide 43% tonnes and 47% ounces which have a significantly lower operating cost profile. Work on the updating of the Mineral Resource estimate for Area D has commenced and will be released once completed in Fourth Quarter 2022 followed by an update to the Scoping Study including both the Karakara maiden mineral resource and the Area D updated mineral resource.

The Phase 9 drilling campaign aimed at adding additional resources, testing exploration targets and providing inputs into DFS at Diamba Sud is expected to commence in the December quarter following a detailed review and planning exercise. Baseline environmental and ESIA studies are ongoing over the Project area with the wet season field survey to be undertaken in November. Definitive Feasibility Studies to support future development at Diamba Sud are ongoing with initial metallurgical testwork results expected to be delivered during the quarter.

Initial reconnaissance exploration activities to commence over the new tenements, Bondala and Morichou will be undertaken.