Geopacific Resources : Woodlark Gold Project - Exploration and Development Update

23 December 2021

For personal use only

Woodlark Gold Project

Exploration and Development Update

Geopacific Resources Limited ('Geopacific' or 'the Company'; ASX: GPR) is pleased to provide a development and exploration update for the Woodlark Gold Project ('the Project').

Highlights

Exploration

• Results from the initial six holes from the recently commenced grade control RC drill campaign on Woodlark Island (ref ASX release 30 September 2021) have been received by the Company. This drilling campaign is being undertaken to refine ore zones in advance of mining and to provide certainty around early production.
• Drilling results include:

1. 080KUL159 with 29 metres at 7.6 g/t Au: o 080KUL158 with 31 metres at 6.7 g/t Au; o 080KUL172 with 50 metres at 4.6 g/t Au;
   o 080KUL173 with 44 metres at 4.7 g/t Au; and o 080KUL171 with 41 metres at 3.9 g/t Au.

While a further 18 holes (1,200 samples) are currently in the laboratory in Lae, Papua New Guinea pending assay, the initial results compare favorably with the resource model which has an average grade of 1.04 g/t Au1.

• The drilling campaign remains active on site with a 20,000 metre grade control and near pit extension drilling campaign underway and a second drill rig scheduled to commence drilling in early Q1 2022.
• Post completion of the grade control drilling, the RC drill rig will move into exploration drilling with an anticipated 40,000 metres of exploration drilling budgeted in CY 2022:
  o Exploration drilling will be focused on the significant near pit exploration potential previously inaccessible due to the proximity of community;
  o All three planned open pits at the Woodlark Gold Project are open at depth and laterally; and
  o The current pit shells are constrained by data and not economics and an extensive drilling campaign has the potential to add additional in-pit ounces, reduce strip ratio and increase the life-of-mine production.

Development

• Progress continues with the essential development work packages including the construction of the permanent camp, community relocation, engineering and the process plant ground preparation. Key updates include:

1. Earthwork activities to prepare the CIL tanks foundations is progressing with the placement of geotextile and fill material (see Figure 1);

1. Geotechnical drilling has been completed for the wharf validating the revised location (see Figure 2);

1.See ASX Release - 12 March 2018

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For personal use only

1. Earthworks completed for the permanent camp, with flat pack buildings scheduled for delivery to the island in early Q1 2022;

• 1. GR Engineering Services engineering of the process plant over 70% complete; and
  1. Continued community relocation program with over 50% of buildings complete.
• Further to the ASX Announcement of 11 November 2021, the work program to review the Project Development Schedule and Cost Estimate is continuing. Key updates include:
• 1. Consistent with the experiences being noted more broadly across the resources industry, cost increases continue to be observed for a number of key Project related activities;

1. Additional internal resources with extensive project development experience have been secured to assist with the review of all development assumptions, work packages and cost drivers and a number of these individuals will then join the Project Execution Team;

1. Tender documents are being released for the revised wharf solution and deep sea tailings line to firm up these cost components; and

1. The Board plans to engage a third party technical reviewer to assess Management's proposed revisions to the Project execution plan and the resulting costs to complete.

Chief Executive Officer, Tim Richards commented

The initial grade control drill results are extremely pleasing and support our view that there remains significant upside potential at the Project both within the existing pits and more broadly across the mining lease. With the impending arrival of the second drill rig, the drilling campaign will begin focusing on defining near pit potential concurrent with development activities. These early results highlight the possible upside that exists to add further mineral resources, and eventually ore reserves with the potential to significantly enhance the metrics of the Project. I look forward to updating the market on our exploration and development activities in coming periods."

Development Activity

Figure 1: Engineered backfill of the CIL Boxcut

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Figure 2: Wharf access road and Geotech drilling

For personal use only

Figure 3: Completed Community Housing

This announcement was authorised by the Board of Geopacific.

For further information, please visit www.geopacific.com.auor contact Mr Tim Richards, CEO.

Company details	Board & Management	Projects
Geopacific Resources Limited	Ian Clyne Chairman	PAPUA NEW GUINEA
ACN 003 208 393	Ian Murray Non-Executive Director	Woodlark Island Gold
ASX Code: GPR	Colin Gilligan Non-Executive Director
[e-mail]	Sir Charles Lepani Non-Executive Director
http://www.geopacific.com.au	Tim Richards Chief Executive Officer
T [phone]	Matthew Smith CFO and Company Secretary
HEAD OFFICE	Mike Meintjes Company Secretary
Level 1, 278 Stirling Highway
Claremont WA 6010.
PO Box 439, Claremont WA 6910.

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Appendix A: Woodlark Project Significant Intercepts

only		North	East	RL	Dip/	Total			Down-hole
	Azimuth	Depth		Mineralised Intersection
Hole ID						From	To	Interval	Gold
	m	m	M	degrees	m	grade
						m	m	m	g/t Au
080KUL158	8995914	469116	85	-60/270	57	8	39	31	6.72
						50	56	6	4.81
Including						13	14	1	17.3
						17	19	2	25.3
use							25	26	1	35.7
						52	56	4	6.57
080KUL159	8995910	469120	87	-60/270	60	14	43	29	7.62
						45	49	4	1.87
Including						14	15	1	87.7
						21	22	1	18.6
080KUL171	8995925	469113	84	-60/270	60	0	7	7	0.56
personal
						13	54	41	3.90
Including						23	24	1	37.7
						27	28	1	10.2
						36	37	1	22.9
						40	41	1	13.7
080KUL172	8995925	469119	84	-60/270	60	0	50	50	4.61
Including						13	14	1	22.3
						20	21	1	10.9
						29	30	1	10.1
						31	35	4	25.2
080KUL173	8995924	469125	85	-60/270	55	0	2	2	0.88
						11	55	44	4.66
Including						11	13	2	11.6
						22	25	3	19.2
For							32	37	5	11.2
						40	41	1	11.6
080KUL174	8995924	469131	85	-60/270	37	0	2	2	2.86
						21	37	16	7.08
Including						21	22	1	23.5
						28	36	8	10.2

BSRC21026	8993602	473100	65	-90/0	90		No significant Results
BSRC21037	8993552	472975	64	-90/0	30		No significant Results
BSRC21036	8993552	472950	64	-90/0	70	44	47	3		3.23
Including						46	47	1		8.53

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Appendix B: JORC Code, 2012 Edition - Table 1

For personal use only

Section 1: Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections.)

CRITERIA		JORC CODE EXPLANATION	COMMENTARY
Sampling		Nature and quality of sampling (e.g. cut channels,	Sampling was conducted using diamond drilling
techniques		random chips, or specific specialised industry	(DD) and Reverse Circulation Drilling (RC).
		standard measurement tools appropriate to the	Sampling of the diamond drilling comprised half
		minerals under investigation, such as down hole	core samples taken based on lithological,
		gamma sondes, or handheld XRF instruments, etc.).	alteration, and mineralisation breaks observed in
		These examples should not be taken as limiting the	geological logging. Generally, sampling is at 1m
		broad meaning of sampling.	intervals.
		Include reference to measures taken to ensure	1 in 50 samples is a duplicate sample, taken from
		sample representivity and the appropriate	quarter core.
		calibration of any measurement tools or systems	Core recovery is routinely recorded for each drill
		used.	run
			RC drilling samples were collected in 1m intervals
			from a cyclone and weighed. The entire sample is
			riffle split using a 75% / 25% splitter, yielding
			approximately 3kg sub split for assaying. The 75%
			split is stored in plastic sample bags and removed
			from site on the completion of the hole to a bag
			farm for future reference if required.
			The sample splitter is cleaned with compressed air
			and water if necessary to ensure no contamination
			between samples.
			1 in 50 samples is a duplicate sample, collected as a
			re-split of the residual sample material.
			All samples were submitted to ITS Pty Ltd PNG
			(Intertek Services Ltd) - operated sample
			preparation laboratory on site.
			Sample pulps were sent for fire assay gold at
			Intertek's Lae analytical laboratory with with four-
			acid multi-element analysis by ICPMS method at
			Intertek Genalysis Townsville analytical laboratory.
			Blank, duplicate, and standard samples were
			inserted at various intervals based on Geopacific's
			QAQC procedure to ensure sample representivity
			and repeatability of the sampling results.

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