Gold Road Resources : Quarterly Activities and Cash Flow Report - March 2022

ASX Announcement 27 April 2022

MARCH 2022 QUARTERLY REPORT

HIGHLIGHTS

Production and Guidance

ABN 13 109 289 527

•  Gruyere produced 71,1351 ounces of gold (100% basis) at an AISC of A$1,526 per attributable ounce during the March 2022 quarter (December quarter: 67,813 ounces at an AISC of A$1,526 per attributable ounce).

  COMPANY DIRECTORS

  Tim Netscher

  Chairman

•  The increased production quarter on quarter was primarily due to improving head grades, as well as continued strong quarterly processing throughput despite two scheduled plant shutdowns for relines of the SAG and ball mills, which were both successfully completed during the quarter.

  Duncan Gibbs

  Managing Director & CEO

  Brian Levet Non-Executive Director

  Maree Arnason Non-Executive Director

•  Gruyere remains on target for 2022 Annual Production Guidance of 300,000 - 340,000 ounces (150,000 - 170,000 ounces attributable) at an attributable AISC of between A$1,270 - A$1,470 per ounce. Production is anticipated to increase steadily through 2022.

  Denise McComish Non-Executive Director

  Hayden Bartrop Company Secretary

•  During the quarter, Gold Road reported total attributable Mineral Resources of 102.2 million tonnes at 1.43 g/t Au for 4.71 million ounces and attributable Ore Reserves of 54.6 million tonnes at 1.27 g/t Au for 2.23 million ounces2.

  CONTACT DETAILS

  Principal & Registered Office Level 2, 26 Colin St

•  Gold Road and Gruyere had no material impact on operations from COVID-19 during the quarter.

West Perth WA [e-mail]

Financial and Corporate

T [phone]

F [phone]

•  Gold Road's gold sales totalled 35,080 ounces at an average price of A$2,434 per ounce and included the delivery of 8,700 ounces into forward sales contracts. Gold doré and bullion on hand on 31 March 2022 was 2,070 ounces.

•  Free cash flow before payment of dividends was $1.1 million for the quarter (December quarter: $15.7 million), which included payment of $6.4 million in tax payments attributable to the prior period (as guided in the December quarterly report3) and $10 million of adverse working capital movements which will unwind beneficially in the next quarter's cashflows.

•  Cash and equivalents4 increased to $138.0 million (December quarter: $135.5 million) and no debt drawn.

•  On 28 March 2022, Gold Road determined a fully franked dividend of 0.5 cents per share for the six months to 31 December 20215.

•  On 4 April 2022, Gold Road announced a recommended takeover offer for DGO Gold of 2.16 Gold Road shares for one DGO share. DGO owns a portfolio of prospective assets including a 14.4% shareholding in De Grey Mining Ltd, a 6.8% shareholding in Dacian Gold Ltd, a 20.1% shareholding in Yandal Resources Ltd., and an attractive portfolio of exploration tenements.6

Discovery

•  Three drill rigs are currently active at the Yamarna Project (100% Gold Road). A total of 18,149 metres were completed during the March 2022 quarter.

•  Encouraging results continue to be received from RC and aircore drilling completed at the Abydos, Waffler and Kingston prospects with follow up programs in progress or completed and awaiting assays.

• 1 Previously reported on 7 April 2022

• 2 ASX announcement dated 17 February 2022

• 3 ASX announcement dated 31 January 2022

• 4 Cash and equivalents refers to cash, doré and bullion on hand

• 5 ASX announcement dated 28 March 2022

• 6 ASX announcement dated 4 April 2022

Introduction

Mid-tier gold production and exploration company, Gold Road Resources Limited (Gold Road or the Company), presents its activity report for the quarter ending 31 March 2022. Production is from the Gruyere Gold Mine (Gruyere) which is a 50:50 joint venture with Gruyere Mining Company Pty Ltd, a member of the Gold Fields Ltd Group (Gold Fields), which operates Gruyere.

During the March 2022 quarter, Gruyere delivered gold production of 71,135 ounces (100% basis) (December quarter: 67,813 ounces). As guided, head grades increased quarter on quarter. Production was delivered at an All-in-Sustaining Cost (AISC) of A$1,526 per attributable ounce to Gold Road (December quarter: A$1,526 per ounce). AISC was the same quarter on quarter with the costs associated with the two scheduled mill shutdowns, as well as some ongoing COVID-19 related costs, being offset by increased gold production. AISC per ounce is expected to fall in coming quarters, in line with guidance.

The weighted average Lost Time Injury Frequency Rate (LTIFR) for Gruyere and Gold Road was 3.34 at 31 March 2022. There were no Lost Time Injuries recorded during the quarter7.

Installation of the Gruyere 13 MW solar farm is progressing with practical completion anticipated in the June 2022 quarter.

On 28 March 2022 Gold Road reported its 2021 Annual Results, 2021 Sustainability Report, and determined a final dividend of 0.5 cents per share for the 6 months to 31 December 2021.

Production

Gruyere (100% basis)

Mining

Total material movement decreased by 0.5 Mt quarter on quarter but is up 1.9 Mt to the prior year corresponding period (March 2021: 8.3 Mt), with mining continuing from the Stage 2 and Stage 3 pits. Total material movement (waste and ore) continues to benefit from opportunistic use of the ore rehandle fleet. Ore mining totalled 2.6 Mt during the quarter. Mined grades lifted quarter on quarter to an average grade of 1.08 g/t Au. The mined grade is expected to continue to lift through 2022 as mining advances through higher grade zones in the deeper sections of the Stage 2 pit, along with the mining of higher grade oxide and fresh ore from the Stage 3 pit.

At the end of the quarter, ore stockpiles increased to 5.7 Mt at 0.73 g/t Au (December quarter: 5.2 Mt at 0.74 g/t Au). Mining continued at a rate higher than required to deliver ore to the process plant to mitigate ore supply risks in 2022 associated with the current tight labour market and anticipated higher levels of COVID-19 related workforce absenteeism.

Processing

Total ore processed during the quarter was 2.1 Mt at a head grade of 1.17 g/t Au, and a gold recovery of 91.0% for 71,135 ounces of gold produced. Head grade was higher quarter on quarter in line with expectations for 2022.

The solid quarterly throughput performance was achieved despite two scheduled plant shutdowns for relines of the SAG and ball mills, both of which were successfully completed during the quarter.

The production result was the second highest at Gruyere to date and follows a progressive quarterly increase in ounces and head grade over the past 12 months (as shown in the charts below). The March 2022 quarterly production forms a solid base for progressively increasing production through 2022, in line with guidance.

7 Despite no Lost Time Injuries occurring in the quarter the LTIFR increased quarter on quarter due to less hours being worked in Quarter 1 of 2022, than in Quarter 1 of 2021

Cost Performance

Operational mining costs were lower quarter on quarter as the result of a higher strip ratio translating to higher capitalised mining costs. Processing costs increased quarter on quarter because of higher maintenance costs associated with the scheduled shutdowns during the quarter. General and administrative costs also increased quarter on quarter partly due to costs associated with managing the COVID-19 pandemic. Ore Stock & GIC Movements equated to a lower credit quarter on quarter due to a lower build up in ore mining stockpiles. Sustaining capital costs were lower quarter on quarter with reduced expenditure following completion of bulk earthworks on the TSF Stage 3 lift.

AISC per ounce for the quarter was A$1,526 per ounce (December quarter: A$1,526), with the costs associated with the two scheduled mill shutdowns, as well as some ongoing COVID-19 related costs, being offset by increased gold production.

AISC are expected to fall in coming quarters, in line with guidance.

Operation (100% basis)	Unit	Mar 2022 Qtr	Dec 2021 Qtr	Sep 2021 Qtr	Jun 2021 Qtr	CYTD#
Ore Mined	kt	2,637	3,164	2,591	2,602	2,637
Waste Mined	kt	7,544	7,541	7,815	7,421	7,544
Strip Ratio	w:o	2.86	2.38	3.02	2.85	2.86
Mined Grade	g/t	1.08	1.00	0.88	0.87	1.08
Ore milled	kt	2,142	2,236	2,101	1,986	2,142
Head Grade	g/t	1.17	1.04	0.94	0.92	1.17
Recovery	%	91.0	91.2	89.5	89.8	91.0
Gold Produced**	oz	71,135	67,813	59,371	53,132	71,135
Cost Summary (GOR)***
Mining	A$/oz	164 190 204 135 164 657 639 712 702 657 154 102 130 156 154 (5) (38) (39) (63) (5) (2) (2) (3) (5) (2)
Processing	A$/oz
G&A	A$/oz
Ore Stock & GIC Movements	A$/oz
By-product Credits	A$/oz
Cash Cost	A$/oz	968 85 16 102 355 891 80 20 108 427 1,005 80 17 115 480 924 968 85 85 19 16 129 102 502 355
Royalties, Refining, Other	A$/oz
Rehabilitation*	A$/oz
Sustaining Leases	A$/oz
Sustaining Capital	A$/oz
All-in Sustaining Costs	A$/oz	1,526 1,526 1,697 1,659 1,526

*Rehabilitation includes accretion and amortisation. #Gold Road operates to a calendar financial year. ** Gold produced rather than recovered ***Cost per ounce reported against gold ounces produced during the quarter

Sales (50% share)*	Unit	Mar 2022 Qtr	Dec 2021 Qtr	Sep 2021 Qtr	Jun 2021 Qtr	CYTD#
Gold Sold Average Sales Price	oz A$/oz	35,080 2,434	35,460 2,309	28,350 2,231	28,425 2,145	35,080 2,434

*Gold Road's 50% share. #Gold Road operates to a calendar financial year

Quarterly Production (oz)

75,000

GruyereQuarterlyProduction(ounces)

70,000

65,000

60,000

55,000

50,000

45,000

40,000

35,000

30,000

1.2

GruyereQuarterly HeadGrade(g/tAu)

1.15

June 2021 Qtr

Sep 2021 Qtr

Dec 2021 Qtr

Quarterly Head Grade (g/t Au)

Mar 2022 Qtr

1.05

0.95

0.85

0.75

1.1

0.9

0.8

0.7

1

June 2021 Qtr

Sep 2021 Qtr

Dec 2021 Qtr

Quarterly Mill Throughput (Kt)

2,300

GruyereQuarterly Throughput(Kt)

2,250

Mar 2022 Qtr

2,200

2,150

2,100

2,050

2,000

1,950

1,900

1,850

June 2021 Qtr

Sep 2021 Qtr

Dec 2021 Qtr

Mar 2022 Qtr

COVID-19

Gruyere and Gold Road experienced no material production impacts resulting from the COVID-19 pandemic during the quarter. Gold Road continues to operate within the agreed Western Australian government guidelines. The tight labour market and associated cost and supply chain pressure in Western Australia continues to present a challenge for the mining sector as a whole.

2022 Guidance

2022 Annual Production Guidance remains unchanged at 300,000 - 340,000 ounces (150,000 - 170,000 ounces attributable) at an attributable AISC of between A$1,270 - A$1,470 per ounce. 2022 Annual Guidance is based on the COVID-19 pandemic not leading to material deviations to the early 2022 production and cost environment.

Production rates are anticipated to progressively improve during the year, largely reflecting improving head grade and plant utilisation.

Gruyere Deep Diamond Drilling

The final 4 of 13 diamond drill results from the 2021 Gruyere framework drilling program were returned during the quarter (highlighted yellow in Figure 1). Mineralisation occurs over a +1,100 metre strike length down to approximately 500 metres below the open pit Ore Reserve. New results include:

•  39.32 metres at 1.52 g/t Au from 763.18 metres (21GYDD0009)

•  29.63 metres at 1.60 g/t Au from 710.93 metres (21GYDD0012)

•  13.75 metres at 1.51 g/t Au from 718.00 metres (21GYDD0013)

The deepest hole of the program (21GYDD0007) intersected a narrower than anticipated thickness of Gruyere Porphyry and a relatively weak zone of mineralisation; 85.32 metres at 0.72 g/t Au from 1,228.15 metres. This result along with others, including the thicker than anticipated result in the northern most hole (21GYDD0006), suggest that the Gruyere mineralisation may plunge moderately to steeply to the north, rather than sub-vertical.

Figure 1: Long projection looking west (Gruyere Grid) showing results and location of holes beneath the Gruyere Open Pit and

Underground Mineral Resource. New results coloured yellow.