Godolphin Resources : Quarterly Activities and Cash Flow Reports 31 December 2021

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25 January 2022

DECEMBER 2021 QUARTERLY ACTIVITIES REPORT

• Drilling commenced at Gundagai gold projects - 11-hole 1,825m program at historic Emu Gold Mine
• Zones of gold, silver and base metal mineralisation intersected in four Reverse Circulation percussion drill holes at the Quarry Lode, Lewis Ponds Project
• Soil re-interpretation completed at Lewis Ponds confirms significant gold and multi- element anomalism - geochemical comparisons with the two-million-ounce
  McPhillamy's Gold Deposit
• Planning for drilling at Yeoval and Cyclops prospects completed following comprehensive assessment of historical exploration data
• Two new strategic Exploration Licenses granted, providing Godolphin with significantly strengthened landholding
• Multiple exploration initiatives underway concurrently across the project suite

Godolphin Resources Limited (ASX:GRL) ("Godolphin" or the "Company") is pleased provide the following update on activities for the quarter ended 31 December 2021 (the "quarter"). The Company made considerable progress during the quarter on its exploration initiatives at the Lewis Ponds, Gundagai and Yeoval Projects, which are located in the world class Lachlan Fold Belt. In addition, Godolphin secured two new Exploration Licences, increasing its total landholding.

Managing Director Ms Jeneta Owens said: "Godolphin has made considerable progress during the quarter and continued to execute on its defined exploration strategy, which will allow us to unlock value across the Company's entire project suite.

Drilling at a number of prospects is underway and we expect a steady flow of assay results and additional exploration activities over the coming months. Further, we are excited to begin exploration on the leases which were granted during the quarter. These significantly bolster our landholding, in a highly prospective region."

OPERATIONAL OVERVIEW

Lewis Ponds Project - EL5583

Assay results were received from the Quarry Lode Reverse Circulation ("RC") percussion drill program at the Lewis Ponds Project (ASX: GRL announcement 10 November 2021). Lewis Ponds remains a high priority project with an Inferred Mineral Resource Estimate ("MRE") of 6.2Mt @ 2.0g/t gold, 80g/t silver, 2.7% zinc, 1.6% lead & 0.2% copper*.

The four RC holes testing the Quarry Lode mineralisation near surface and to the northwest of the current MRE at Lewis Ponds revealed all four holes intersected gold, silver and base metal mineralisation. Sulphides were intersected in all holes, with occurrences of chalcopyrite, galena and sphalerite observed.

• Refer to ASX: GRL announcement of 2 February 2021

	A: Unit 13, 11-19 William Street, Orange NSW 2800
	P: [phone]
ASX Code: GRL	E: [e-mail]
ABN: 13 633 779 950	www.godolphinresources.com.au

Further narrow zones of stringer veins containing lead and zinc sulphides and gold mineralisation also occurred across all four holes drilled in the program (Refer Table 1 for a summary of the drill result highlights).

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Table 1: Summary of drill result highlights from the quarry drilling program

Results, coupled with open mineralisation highlight the outstanding opportunity to increase the resource size, particularly along the western contact and to the north of the current Lewis Ponds MRE.

Re-interpretation of the 2020 100m x 50m soil sampling program at Lewis Ponds identified zones of gold (Au) mineralisation coincident with anomalous copper-barium-bismuth-molybdenum-lead-tellurium(Cu-Ba-Bi-Mo-Pb-Te) to the south of the resource. While further testing is required, geochemical comparisons can be made with one of Australia's largest undeveloped open-pit gold resources, the two-million-ounce McPhillamy's Gold Deposit located approximately 20km southeast along the Godolphin Fault Zone.

The findings provide Godolphin with a much greater understanding of the geological setting of Lewis Ponds. A number of initiatives have been planned with a focus of extending the gold mineralisation to the northwest as well as defining the anomalous Cu-Ba-Bi-Mo-Pb zone to the south with targeted soil and rock chip sampling and detailed geological mapping to inform drill hole designs.

Soil sampling continued at the Williams Prospect over the quarter, targeting trends in the southeast of the Lewis Ponds Project. By the end of the quarter 130 soil samples have been collected, dried, sieved and sent for geochemical analysis. It is anticipated that the assay results will be received in the first quarter of 2022.

Gundagai Gold Projects - EL8586 and EL8061

Godolphin commenced an 11-hole RC drill program, testing several prospects including the historically worked Emu Gold Mine, which has previously returned high-grade rock chip samples of up to 386g/t Au.

The program was planned for 1,825m and utilised a track-mounted RC drill rig which allowed for considerably easier navigation across steeper and wetter terrain following adverse weather events during the quarter. The program followed an extensive review of historical workings and recent assay results from rock chip sampling.

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Following the completion of the drilling at the Emu Prospect, the rig was moved to Manton's Prospect to test the historic workings along mineralised quartz veins and porphyry dykes at depth. Logging from the drill program identified several quartz vein intersections with occasional pyrite mineralisation within wider chlorite altered and siliceous dacite porphyry.

Due to persistent unseasonable weather events, the program at the Gundagai project was delayed briefly. Once recommenced an updated plan was developed which included 12 RC holes covering approximately 1,975m. Key prospects, including Manton's, Big Ben and Surprise Hill North, were targeted for drilling testing historical gold workings and mapped quartz veins. Assay results from the drilling in 2021 are expected during the first quarter of 2022.

Yeoval Project - EL8538

A number of prospects with significant potential to host economic copper mineralisation were identified at the Yeoval Project, following a review of historical data. With these targets identified, an exploration plan was developed to further explore these targets.

The initial focus will be on the highly prospective Yeoval and Cyclops Prospects within the existing land package. The two projects are located northwest of the Yeoval township (refer Figure 1), and both are hosted within the north-trending Devonian granodiorite of the Yeoval Batholith.

Figure 1: Location of the highly ranked Yeoval and Cyclops prospects

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Historical data reveals the mineralisation at Yeoval is typical of a copper porphyry deposit, with disseminated and vein-hosted chalcopyrite, bornite and molybdenite throughout. While mineralisation at the Cyclops Prospect has also been described as a copper-gold porphyry style. The previously reported JORC 2012 Mineral Resource Estimate for Yeoval is 12.8 Mt at 0.38% copper, 0.14g/t gold, 2.2g/t silver and 120 ppm molybdenum (0.2% Cu cut off) (refer Godolphin Resources Limited Prospectus, dated 29 October 2019).

The next steps in the exploration plan involve surface mapping and a soil sampling program utilising multi- element geochemistry at the Yeoval and Cyclops Prospects to test for potential extensions to the mineralisation in under-explored areas and to follow up by both RC and diamond drilling.

Sebastopol - EL9337

EL9337 Sebastopol, is located in the southern Lachlan Fold Belt, 16km south-southwest of Temora and covers

10 km2 (Figure 2). Godolphin lodged an application for the tenement on the basis of several old gold workings, including the Morning Star Mine, which is reported to have produced the majority of the region's gold.

Historic soil, rock chip and drill hole samples are concentrated in the north-east of the project area, towards the major Gilmore Fault Zone. The main gold-bearing quartz veins are orientated parallel to the Gilmore Fault Zone and drilling showed these continue at depth. A 1.6km strike length historic gold soil anomaly associated with the Morning Star Mine remains untested along its entirety. North and south of EL9337, along the Gilmore Fault Zone and in a similar structural setting to Sebastopol, are the West Wyalong gold fields and the Adelong gold fields, that each produced well over one million ounces of gold.

(NSW Department of Primary Industries, Primefact 558, Feb 2007).

Figure 2: Lachlan Fold Belt Geology Map showing EL9337 outline (red) in relation to a major regional fault zone and associated splays. Old mine workings located in and around EL9337 are indicated in yellow.

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Kinross - EL9333

During the Quarter Godolphin received confirmation that EL9333- Kinross had been granted. The Kinross project is located on the western boundary to the highly prospective Lewis Ponds Project and is 100ha in area.

It is situated three kilometres northwest of the historic Mt Bulga massive sulphide deposit which was worked during the late 1800's for silver and base metals. Historic exploration across EL9333 involved rock chip sampling, geological mapping, gradient array and dipole-dipole IP surveys and two RC drill holes. Strong base metal surface geochemistry is present aligned northwest parallel to the strike of the volcanics (refer Figure 3).

Figure 3: Kinross and Lewis Ponds overlain with 2010 magnetic survey and historic workings

Godolphin will undertake Kinross exploration concurrent workstreams at the Lewis Ponds Project.

Joint Venture Calarie Gold Project

Godolphin's Farm-in Joint Venture ("JV") Calarie Project with Orange Minerals (refer ASX: GRL announcement 18 December 2020) commenced an RC drilling program with the aim to validate historical drill holes and look to extend mineralisation.

Phase one of the program was completed in December 2021(refer ASX: OMX announcement 16 December 2021), with 10 holes drilled for a total of 1,044m. RC drill samples have been sent to the laboratory for assay with results expected to be received in February 2022. Following the receipt of assay results Orange Minerals intends to undertake a resource review and commence planning Phase 2 drilling.

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