Firefinch : Drilling at Morila Identifies New High-Grade Zone

ASX ANNOUNCEMENT

Tuesday, 21st December 2021

For personal use only

Drilling at Morila Identifies New High-Grade Zone

• High-graderesults received from drilling on the eastern side of the Morila Super Pit: o 5.0 metres at 30.3g/t gold from 294.6 metres, including 1 metre at 128g/t gold o 0.90 metres at 35.9g/t gold from 228.2 metres
  o 1.15 metres at 31.2g/t gold from 174 metres o 1.2 metres at 18.1g/t gold from 177.3 metres

1. 7.9 metres at 5.60g/t gold from 313.6 metres, including 1 metre at 31.8g/t gold

• 1. 36.6 metres at 2.01g/t gold from 371.1 metres, including 4 metres at 4.24g/t gold and 11.1 metres at 2.94g/t gold
• Results indicate the presence of a new high-grade zone at Morila, appearing to contradict the historical interpretation that mineralisation in this area is offset by shearing.
• Drilling continues at the Morila Gold Project and will be ongoing into 2022. A more fulsome drilling update will be provided in January.

Firefinch Limited (ASX: FFX) (Firefinch or the Company) is pleased to announce high-grade drilling results at the Morila Gold Project (Morila), which indicate the presence of a new high-grade zone on the eastern side of the Morila Super Pit.

Firefinch's Managing Director, Dr Michael Anderson, commented:

"It is always exciting to receive high grade drilling results but to receive several meaningful intersections above 30g/t gold is certainly noteworthy. It seems with Morila the more we drill, the more we find, and our intention is to continue drilling to better understand this globally significant deposit.

"Drill rigs will continue to turn over the Christmas - New Year period and we will provide a fuller update on results received in January along with our operations update."

Drilling in progress at Morila East

Firefinch Limited	Level 3, 31 Ventnor Ave,	T [phone]
ABN: 11 113 931 105	West Perth WA 6005,	E [e-mail]
ASX: FFX	Australia	W firefinchltd.com	1

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Morila East Drilling

Recent drilling has focussed on the eastern side of the Morila Super Pit targeting potential extensions to historical high-grade intersections and testing areas which were not previously well drilled.

Results have been received from three holes as detailed in Figure 1 and Appendix 1, including:

• 5.0 metres at 30.3g/t gold from 294.6 metres, including 1 metre at 128g/t gold (MRD0026);
• 0.90 metres at 35.9g/t gold from 228.2 metres (MRD0026);
• 1.15 metres at 31.2g/t gold from 174 metres (MRD0021);
• 1.2 metres at 18.1g/t gold from 177.3 metres (MRD0025);
• 7.9 metres at 5.60g/t gold from 313.6 metres, within a wider zone of 22.2 metres at 2.24g/t gold from 299.3 metres, including 1 metre at 31.8g/t gold (MRD0025);
• 36.6 metres at 2.01g/t gold from 371.1 metres including 4 metres at 4.24g/t gold and 11.1 metres at 2.94g/t gold (MRD0021);
• 10.5 metres at 1.87g/t gold from 241.9 metres including 4.1 metres at 3.30g/t gold (MRD0025);
• 10.5 metres at 1.68g/t gold from 155.7 metres including 4.8 metres at 2.51g/t gold (MRD0021); and
• 6.4 metres at 1.78g/t gold from 188.9 metres including 1 metre at 5.95g/t gold (MRD0025)

Previous drilling on the eastern side of Morila was relatively wide spaced, with mineralisation interpreted to be offset by a major shear zone. However, the presence of high-grade mineralisation in this drilling suggests this historical interpretation needs to be re-evaluated.

The intersections also lie outside the Mineral Resources delineated at Morila. The intersections are down dip of the Morila Pit Mineral Resource and along strike from the Morila NE Mineral Resource (Figure 2, refer Table 1 for details of the Mineral Resources).

Also of significance are the shallow high grade intersections of 1.15 metres at 31.2g/t gold from 174 metres in MRD0021 and 1.2 metres at 18.1g/t gold from 177.3 metres in MRD0025. If infill drilling confirms this lode is continuous then it will add additional open pittable mineralisation to the Morila resource.

Follow up drilling to infill these results and to test for extensions is currently in progress, with drilling already completed between MRD0021 and MRD0025 (Appendix 1).

Results from this drilling will be used to update the geological interpretation in this area and confirm the likely geometry of these high-grade zones for further drilling. Following this, an update for the Mineral Resources for Morila Pit and Morila NE will be completed.

Results were derived using the fire assay technique. Analysis by the more accurate screen fire assay technique is in progress.

Firefinch Limited	Level 3, 31 Ventnor Ave,	T [phone]
ABN: 11 113 931 105	West Perth WA 6005,	E [e-mail]
ASX: FFX	Australia	W firefinchltd.com	2

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Next Steps

Four rigs will continue to operate at Morila over the Christmas and New Year period. Drilling is focussed on following up recent and historical high-grade intercepts such as 10.5 metres at 34.0g/t gold in MRD0001, as well as improving delineation of mineralisation within initial mining areas to support Mineral Resources and Ore Reserves upgrades.

High-grade zones intersected within this drill programme will provide priority targets for ongoing drilling in 2022.

Open pit mining continues to ramp up with primary mill feed currently being provided by the Viper and Morila Pit 5 as the tailings resource is depleted. Pre-stripping activities at the Morila Super Pit will commence in Q1 2022, which will facilitate a ramp up in production to levels above 100,000 ounces of gold in 20221.

This announcement has been approved for release to the ASX by the Board.

For Enquiries
Dr Michael Anderson	Dannika Warburton
Managing Director	Principal
Firefinch Limited	Investability Partners
[e-mail]	[e-mail]
[phone]	[phone]

Forward Looking Statements

This announcement contains certain forward-looking statements with respect to Firefinch's financial condition, results of operations, production targets and other matters that are subject to various risks and uncertainties. Actual results, performance or achievements could be significantly different from those expressed or implied by those forward-looking statements. Such forward looking statement are no guarantees of future performance and involve known and unknown risks, uncertainties, and other factors beyond the control of Firefinch that may cause actual results to differ materially from those expressed in the forward-looking statements in this announcement.

Competent Persons Declaration

The information in this announcement that relates to Exploration Results and Mineral Resources at Morila is based on information compiled by Mr Bill Oliver. Mr Oliver is an employee of Firefinch Limited and a member of the Australian Institute of Geoscientists and the Australasian Institute of Mining and Metallurgy. Mr Oliver has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and the activity he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves ('the JORC Code')". Mr Oliver consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

1 Refer ASX announcement "New Life of Mine Plan for the Morila Gold Mine" (5th May 2021) for further information.

Firefinch Limited	Level 3, 31 Ventnor Ave,	T [phone]
ABN: 11 113 931 105	West Perth WA 6005,	E [e-mail]
ASX: FFX	Australia	W firefinchltd.com	3

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Figure 1: Plan showing Firefinch and historical drilling at Morila.

Firefinch Limited	Level 3, 31 Ventnor Ave,	T [phone]
ABN: 11 113 931 105	West Perth WA 6005,	E [e-mail]
ASX: FFX	Australia	W firefinchltd.com	4

For personal use only

0.9m at 35.9g/t

5.0m at 30.3g/t

Figure 2: Section 1292025mN showing MRD0026, historical drilling at Morila and Mineral Resources.

Table 1: Mineral Resources for the Morila Gold Project

Deposit	Measured & Indicated 6		Inferred			Total
	Tonnes	Grade	Ounces	Tonnes	Grade	Ounces	Tonnes	Grade	Ounces
	(millions)	(g/t)	('000)	(millions)	(g/t)	('000)	(millions)	(g/t)	('000)
Morila Pit 1	21.2	1.60	1,090	17.5	1.37	770	38.6	1.50	1,860
Morila NE 2				0.21	3.07	21	0.21	3.07	21
Samacline 2				3.74	2.56	308	3.74	2.56	308
Tailings 3	1.73	0.50	28				1.73	0.50	28
Morila Pit 5 4	0.72	1.04	24	0.12	1.38	6	0.84	1.10	30
N'Tiola 4	2.42	1.05	81	0.01	0.73	1	2.43	1.04	81
Viper 4	1.52	1.04	51	0.02	1.41	1	1.55	1.05	52
Domba 5	0.20	1.75	11	0.25	1.61	13	0.46	1.67	25
Koting 4	0.65	1.04	22	0.28	0.94	8	0.93	1.01	30
Total	28.42	1.43	1,309	22.08	1.58	1,124	50.50	1.50	2,433

1. The Morila Pit resource is quoted using a 0.4g/t gold cut-off grade.
2. The Samacline and Morila NE resources are quoted using a 1.8g/t gold cut-off grade.
3. The Tailings resource is quoted using a 0.3g/t gold cut-off grade.
4. The N'Tiola, Viper, Pit 5 and Koting resources are quoted above cut-off grades based on forecast costs (0.35 - 0.48g/t).
5. The Domba resource is quoted using a 0.5g/t gold cut-off grade.
6. Detailed breakdown of Measured, Indicated and Inferred Mineral Resources are supplied in the ASX Announcement of 3rd May 2021.
7. Numbers in the above table may not appear to sum correctly due to rounding.

Firefinch Limited	Level 3, 31 Ventnor Ave,	T [phone]
ABN: 11 113 931 105	West Perth WA 6005,	E [e-mail]
ASX: FFX	Australia	W firefinchltd.com	5