Chesser Resources : Quarterly Activities Report and Quarterly Cash Flow Report

24 January 2022

Quarterly Report - December 2021

only	QUARTERLY REPORT - period ending 31 December 2021
f the Areas A and D deposits.
	HIGHLIGHTS
	NEW GOLD DISCOVERY AT DIAMBA SUD - AREA H
	Shallow, high-grade mineralisation defined over 125m of strike at Area H located ~1.2 km southwest
	Mineralisation remains open in all directions with Resource drilling to commence March quarter 2022.
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	Intercepts include:
	• DSR323: 17m at 9.6 g/t gold from 82m	• DSR343: 13m at 3.0 g/t gold from 42m
	• DSR341: 12m at 7.0 g/t gold from 92m	• DSR341: 9m at 4.2 g/t gold from 63m
	• DSR345: 8m at 10.5 g/t gold from 64m	• DSR338: 22m at 1.6 g/t gold from 106m
	• DSR323: 10m at 5.8 g/t gold from 117m	• DSR345: 3m at 11.4 g/t gold from 58m
	• DSR343: 14m at 4.0 g/t gold from 101m	• DSR345: 15m at 1.9 g/t gold from 75m
	• DSR342: 18m at 2.3 g/t gold from 53m	• DSR342: 10m at 2.7 g/t gold from 77m

ROBUST MAIDEN MINERAL RESOURCE DELIVERED - DIAMBA SUD 781koz Maiden Mineral Resource (JORC 2012) for Areas A and D at Diamba Sud:

personal		Classification			Tonnes			Grade			Metal			Total
				Mt			g/t Au			Koz			%
		Indicated	8.8		1.9		538		69%
		Inferred	6.4		1.2		243		31%
		TOTAL			15.2			1.6			781			100%

Resources reported within a US$1,800/oz gold price pit shell and at a cut-off grade of 0.5g/t gold

Figures are rounded and reported to appropriate significant figures to reflect the level of confidence

Scoping Study commenced over Areas A and D with results expected in the March quarter 2022. The key attributes of the Mineral Resource are as follows:

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High-gradeounces: 493koz @ 3.0g/t gold at a 1.5g/t cut-off

Shallow mineralisation: 95% of the ounces within 135m of the surface and 40% of the ounces occur within the near surface oxide mineralisation

High confidence Resource: 69% of the ounces fall within the Indicated classification

Robust Resource: 737koz falling within a US$1,500/oz gold price pit shell with low strip ratio

Significant Resource growth potential: mineralisation open along strike and at depth plus numerous prospective exploration targets on the tenement including the recent Area H discovery

• Emerging highly prospective region: additional discoveries being made in the area including
  Barrick's Kabewest prospect
• Excellent metallurgical characteristics: testwork averaged 96% gold recoveries with no evidence of deleterious elements, amenable to a simple cyanide leach process flow sheet
• Low discovery cost: US$11/oz

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24 January 2022

Quarterly Report - December 2021

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personal	Figure 1: Diamba Sud Mineral Resource 3D image of Resources (blocks greater than 1.0 g/t gold)
	within US$1,800/oz gold pit shell1

CORPORATE

• Cash at the end of the quarter totalled A$5.4 million.

• The Company received payments totalling $0.15 million from the exercise of options.

UPCOMING ACTIVITIES

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A 15,000 to 20,000m drill program will commence in January 2022 to rapidly test resource expansion at Areas A and D and target Area H mineralisation for inclusion into the Mineral Resource inventory during 2022. Drilling will also explore numerous other prospective targets on the tenement.

Continuation of a Scoping Study over the Areas A and D Mineral Resources with targeted completion in the March quarter 2022. The Area H discovery will not be included in this initial study but has potential to add significant value to the Project and can be included in future studies.

1 Refer to ASX announcement dated 16 November 2021 for details of the Mineral Resource Estimates. The Company is not aware of any new information or data that materially affects the information included in the referenced ASX announcement and confirms that all material assumptions and technical parameters underpinning the estimates in the market announcement continue to apply and have not materially changed.

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24 January 2022

Quarterly Report - December 2021

Chesser Resources Limited ("Chesser" or the "Company", ASX:CHZ) is pleased to present its onlyQuarterly Activities Report for the three months ended 31 December 2021. The Company's primary

focus during the reporting period continued to be the advancement of its Diamba Sud gold Project in Senegal.

PHASE 7 DRILLING - AREA H DISCOVERY

The Company completed the Phase 7 drilling campaign during the quarter consisting of 4,178m of Reverse Circulation ("RC") drilling over three prospects (Area H, Western Splay and Area F) on the Diamba Sud tenement (Figure 2).

useAt AREA H 14 RC drill holes were drilled on six 25m spaced drill traverses. Significant mineralisation was intercepted on all drill traverses (Figure 3) over the 125m of strike drilled with mineralisation remaining open along strike in both directions and at depth.

Mineralisation appears to be associated with quartz-carbonate-hematite-albite-pyrite alteration within hydrothermally altered brecciated sedimentary rocks. The north-south trending steep dipping

sedimentary sequence is bounded by granite to the east and west. The geometry of the mineralisation personalappears to be moderately west dipping within the steeply dipping sedimentary rock sequence (Figure

4), however more work is required to fully understand the controls and geometry of mineralisation.

Significant results achieved in the recent drill program include:

• DSR323: 17m at 9.6 g/t gold, 10m at 5.8 g/t gold and 4m at 4.1 g/t gold

• DSR341: 6m at 3.5 g/t gold, 17m at 1.1 g/t gold, 9m at 4.2 g/t gold, 5m at 3.0 g/t gold, 12m at 7.0 g/t gold and 1m at 11.8g/t gold

• DSR345: 3m at 11.4 g/t gold, 8m at 10.5 g/t gold, 15m at 1.9 g/t gold and 9m at 2.9 g/t gold

• DSR342: 4m at 1.2 g/t gold, 18m at 2.3 g/t gold, 10m at 2.7 g/t gold and 8m at 2.9 g/t gold

• DSR343: 13m at 3.0 g/t gold, 14m at 4.0 g/t gold and 6m at 1.7 g/t gold

• DSR340: 7m at 2.5 g/t gold, 2m at 2.7 g/t gold and 9m at 2.8 g/t gold

Area H will be subject to additional drilling commencing in January 2022 and it appears highly likely Forthat additional high-grade resources will be defined over this area.

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Quarterly Report - December 2021

Figure 2: Plan view showing historical drilling and holes reported in this release with selected

significant results2 and underlying resistivity image.

2 Refer to ASX announcements 22 December 2021 for drilling results. The Company is not aware of any new information or data that materially affects the information contained in those announcements.

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24 January 2022

Quarterly Report - December 2021

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Figure 3: Plan view showing historical drilling and holes reported in this quarter with selected

significant results3

Figure 4: Area H Section 14229560mN showing drilling and selected significant results4 and

interpreted geology.

1. Refer to ASX announcements 23 April 21 and 22 December 2021 for drilling results. The Company is not aware of any new information or data that materially affects the information contained in those announcements.
2. Refer to ASX announcements 22 December 2021 for drilling results. The Company is not aware of any new information or data that materially affects the information contained in those announcements.

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