GBM Resources Limited provided an update on exploration activities and proposed activities at the Malmsbury Project JV in central Victoria. The Malmsbury Project is subject to a Farm In and Joint Venture agreement with Novo Resources Corp. (GBM 50%, Novo 50%).

During the quarter Novo advised that they are now sufficiently advanced in developing management systems specific to Victoria that they will be able to assume management in the fourth quarter of 2022, however they have indicated a desire to continue to involve a number of key GBM staff in future operations. Novo will assume project management from 1 October 2022. A total of 11 diamond drill holes for 3,162 meter were completed during fourth quarter 2021 through third quarter 2022, with the final hole of the program completed in July 2022.

Gold and multi-element assays from 8 of 11 holes have been returned. Significant results from the first three holes sampled (MD13, MD14 & MD16) and partial results from MD17 have been reported previously. Significant new results over 5 gram metres are: 7.75 m at 2.8 g/t gold from 87 m in MD15, 9 m at 1.1 g/t gold from 257 m in MD19 and 0.95 m @ 10.01 g/t gold from 102.65 m in MD17.

Further drilling along the Leven Star Reef continues to deliver robust results. Drill hole MD15 tested a failed historic drill section along the main mineralization trend and returned 7.75 m @ 2.8 g/t gold from 87 m. All drill holes that targeted the Leven Star Reef as part of the current campaign have been highly successful, with MD16 the standout, returning > 220 gram metres of gold down-hole. Drill hole MD21 is the final drill hole in the current campaign that tests a potential high-grade shoot zone on the Leven Star, with assays pending.

Additional significant results returned from MD17 include a high-grade intersection of 0.95 m @ 10.01 g/t gold from 102.65 m incorporating a 30 mm vuggy quartz vein that may represent extension of the historically mined N-S trending Hanover West Reef. This intersection occurs in the hanging-wall to the gold-mineralized Missing Link Monzogranite interval that was intersected further down-hole and previously reported. Drill holes MD19 and MD20 were collared on farmland on the Drummond North Goldfield and were designed to investigate the structural setting, down-dip continuity and tenor of the Queens Birthday and O'Connors Reefs, in addition to testing potential parallel reef systems. Both holes successfully intersected the target reefs, with MD19 returning 9 m @ 1.1 g/t gold from 257 m across a wide zone of alteration interpreted to represent the main O'Connors reef.

Either zone potentially representing down-dip continuity of the main high-grade Queens Birthday Reef. Both the O'Connors and Queens Birthday Reefs remain sparsely drilled and remain open at depth. Step-out hole MD22 successfully intersected a strongly altered, quartz veined and sulfide bearing porphyritic intrusive (Missing Link Monzogranite) between 137.2 - 179.3 m depth and some 80 m north of the previous reported gold-mineralized intrusive in MD17.

The intrusive remains open and untested at depth and gives further validation for an intrusion hosted and/or intrusion related ("IRG") system at the Malmsbury Project. Gold and multi-element assays for MD22 are pending. A series of high order gravity and magnetic targets have been generated at the Malmsbury Project following a comprehensive review of existing regional and local geophysical datasets.

A key component of the review involved reprocessing historic ground gravity data collected in 2008 across the highly prospective Belltopper Hill Area. High-resolution elevation data (DEM) acquired during a recent LiDAR survey (2020) and utilized during reprocessing has been fundamental in improving the quality of the historic regional and local ground gravity surveys in terms of reducing known legacy issues with terrain effects. Current geophysical interpretation is underpinned by new petrophysical data collected from a range of mineralized and unmineralized type-lithologies sampled from diamond core across the Malmsbury Project area.

These new data provide crucial insight into anticipated ranges for physical properties of the local units at Malmsbury and help inform characterisation of the interpreted sub-surface geology and potential "target" zones of mineralization within the project area. Further characterisation of the developing geophysical targets at the Malmsbury Project will involve an induced polarisation survey that is currently scheduled for fourth quarter 2022 that aims to identify potential "sulfide-rich target," zones within the granite (IRGS) target corridor, in addition to delineating disseminated sulfide haloes around high-priority gold reef targets. Additional ground magnetics and ground gravity data is planned commensurate with the upcoming IP survey to expand on these datasets and further refine the evolving geophysical targets.

Future exploration will involve a second phase of drilling at the Malmsbury Project that aims to build on current success and test the remaining and developing high-priority targets not tested in the recently completed campaign. This is currently scheduled for early 2023 pending rig availability. Geophysics involves a significant upcoming IP survey accompanied by ground gravity and an extensive ground magnetic survey which is currently scheduled for fourth quarter 2022.

Further expansion of systematic soil geochemistry, mapping and rock chip sampling is also scheduled to recommence in fourth quarter 2022.