Golden Deeps : GED Raises $7.2M to Accelerate Development Programs

ASX ANNOUNCEMENT

ASX: GED

07 April 2022

Golden Deeps Raises $7.2M in Heavily Oversubscribed Capital Raising

Funds Raised to Accelerate Exploration and Development of Key Copper & Vanadium Projects

➢ Golden Deeps has completed a, heavily over-subscribed, placement to sophisticated and professional investors to raise $7.2 million (before costs) via the issue of 379,307,906 fully paid ordinary shares (ASX: GED) at $0.019 (1.9c) per share with a free attaching option exercisable at at $0.015 (1.5c) for every two shares issued (Placement).

➢ Funds raised will principally be used to:

• - Fast-track metallurgical testwork and mining and processing studies on the Company's near surface, high-grade, copper, vanadium, lead, zinc and silver projects in the Otavi Copper Belt of northern Namibia.

• - Accelerate exploration drilling of high-grade copper-silver sulphide targets that have been identified down-plunge of the Nosib and Khusib Springs deposits in Namibia, and,

• - Rapidly advance exploration of a potential new copper discovery at the Havilah Project in the Lachlan Fold Belt of central NSW.

Golden Deeps Limited ("Golden Deeps" or "Company") is pleased to announce that it has received a letter of firm commitments from the Lead Manager, Peak Asset Management Pty Ltd, in relation to a placement raising of $7.2 million (before costs). This will result in the issue of 379,307,906 fully paid ordinary shares (ASX: GED) at $0.019 (1.9c) per share and 189,653,953 options exercisable at $0.015 (1.5c) having an expiry date of 27 January 2024 (Placement Options).

The CEO of Golden Deeps Ltd, Jon Dugdale, said:

"We are extremely pleased to have received such strong support from investors for this $7.2 million capital raising.

"We will now rapidly advance testwork and development studies for our high-grade vanadium, copper-lead-zinc projects in Namibia, as we look to develop near term production of key battery metals products for renewable energy industries globally.

"We will also accelerate drill-testing of our high-grade, brownfields, copper-silver targets in Namibia as well as copper and gold targets in the Lachlan Fold Belt of NSW."

Otavi Copper Belt Projects, Namibia - Accelerated Test Work and Exploration Drilling Planned: Maiden Resource Estimate and Metallurgical Testwork for the Nosib Prospect:

The Company recently released0 high-grade diamond drilling intersections from its Nosib Block (Nosib) prospect in Namibia, including in NSBDD008 (see cross section Figure 1, below):

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53.52m @ 1.15% Cu, 0.62% V2O5, 3.49% Pb, 4.57 g/t Ag (3.6% CuEq*) from surface0, including: 25.74m @ 1.71% Cu, 1.17% V2O5, 6.57% Pb, 4.92 g/t Ag (6.3% CuEq*) from 2.26m including: 11.74m @ 2.67% Cu, 1.42% V2O5, 9.21% Pb, 7.12 g/t Ag (8.5% CuEq*) from 2.26m

*See copper equivalent (CuEq) calculation Appendix 1

Figure 1: Nosib cross section through NSBDD008 and deeper holes testing the copper-silver sulphide zone

The intersection in NSBDD008 is within the shallow, high-grade, copper-vanadium-lead-silver supergene zone at Nosib, that has now been tested over a 100m strike length and continues from surface to approximately 50m vertical depth (Figure 1). A further drilling result received from NSBDD010 of 23.48m @ 0.38% Cu, 2.33 g/t Ag from 12.5m including 2m @ 1.57% Cu, 12.57 g/t Ag, indicates that the mineralisation is open to the northeast as well as to the southwest (see longitudinal projection, Figure 2).

Following receipt of all results from the very successful diamond drilling program at Nosib, the Company will now complete a maiden Mineral Resource estimate for this high-grade copper-vanadium-lead-silver supergene deposit. This will allow initial open-pit mining studies to be carried out in parallel with processing testwork to be combined with the studies on the Abenab high-grade vanadium-lead-zinc resource1, 20km to the northeast of Nosib (Figure 3).

Figure 2: Nosib Prospect, longitudinal projection with NSBDD008 and other key intersections

Samples of diamond drill-core from NSBDD008 at Nosib, and other previous intersections (e.g., NSBDD0022) are being aggregated to produce a bulk sample for gravity concentration testwork, along similar lines to the testwork being carried out on the nearby Abenab vanadium-lead-zinc deposit1 (see Figure 3).

The gravity concentration testwork will aim to generate 3 to 5kg of material, targeting a 15 times upgrade of vanadium and lead, as well as copper.

The gravity concentrate will be subjected to a planned Stage 1 Hydrometallurgical leach testwork program based on the new flowsheet being developed for the Abenab project1.

The results of the initial testwork on the Nosib mineralisation will then be up-scaled to apply to a bulk-trial mining sample of approximately three tonnes currently being excavated from surface.

Table 1: Nosib diamond drilling intersections, this release:

Hole ID	From	To	m	Cu %	Ag g/t	Cut off
NSBDD010	12.50	35.98	23.48	0.38	2.33	>0.1%
incl.	29.00	31.00	2.00	1.57	12.57	>1.0%

Appendix 1 shows the copper equivalent (CuEq) calculations.

Appendix 2 includes details of drilling completed to date with mineralised intervals.

Appendix 3 includes JORC Table 1, Sections 1 and 2.

Figure 3: Otavi Mountain Land tenements with the location of the Company's key prospects

Khusib Springs High-Grade Copper-Silver Deposit - Drilling Planned:

At Khusib Springs (see location, Figure 3), previous targeting work by South African based geological consultancy, Shango Solutions, in January 20217, indicated that there is significant potential for a repeat of the very-high grade Khusib Springs copper-silver orebody (past production 300,000t at 10% Cu and 584 g/t Ag3) at depth, to the north of a normal/wrench fault that is interpreted to have offset the mineralised zone (see oblique section, Figure 4, below).

Khusib Springs p 300,000t at 10%

reKvhiouussibpSropdriuncgtsiopnre: vio Cu30a0n,d00508t4agt/1t0A%gCu a 7

us production: nd 584 g/t Ag3

Figure 4:

Cross section of Khusib Springs Mine showing developed and stoped areas, un-mined zones and targets.

High-grade copper-silver mineralisation has been intersected previously to the north of the fault, and deeper diamond drilling is now planned to further test this highly prospective zone for a repeat of the very high-grade Khusib Springs copper-silver orebody at depth (Figure 4).

Abenab High-Grade Vanadium (Lead-Zinc) Project Testwork and Development Studies:

The Abenab Project is located 20km northeast of Nosib (Figure 3) and was operated as an open pit and underground mine from 1921 to 1947 by the South West Africa Company. Historical production from Abenab included 176kt of 16% V2O5, 13% Zn and 54% Pb8 in high-grade concentrate.

The Company produced a Mineral Resource estimate for the Abenab Project in January 2019 of an Inferred 2.80Mt @ 0.66% V2O5, 2.35% Pb, 0.94% Zn at a 0.2% V2O5 cut-off 9,10, including the previously reported Inferred Resource estimate of 1.12Mt @ 1.28% V2O5, 3.05% Pb, 1.25% Zn at a 0.5% V2O5 cut-off 9,10, making Abenab one of the highest-grade vanadate resources in the world.

Further diamond drilling in 2019 produced high-grade intersections including ABRCD011 - 23m @ 1.34% V2O5, 3.33% Pb, 1.25% Zn from 167m11 (not part of the current resource estimate).

The Company completed a Mining Study in June 202112 that established that there is potential for a viable underground mining operation focused on the higher-grade portions of the current resource9,10, at a targeted production rate of 14,500 tonnes per month (tpm) or 174,000 tonnes per annum (tpa) of high-grade vanadium ore.

Previous gravity concentration testwork on the high-grade underground resource material by Avonlea Minerals Ltd in 2012 produced high concentrate grades of 21% V2O5, 14% Zn and 53% Pb13. Further, Phase 1, gravity testwork for Golden Deeps by Mintek - South Africa, utilised historical low-grade surface stockpiles and tailings material grading 0.30% V2O5, 1.29% Pb and 1.14% Zn to generate an overall concentrate grade of up to 8.9 % V2O5, 30.5% Pb, 8.95% Zn, representing a 30x upgrade of Vanadium14.

The Company commenced down-stream hydrometallurgical leach testwork on the Abenab concentrate with Core Resources ("Core") in Brisbane in mid-2021. The objective of this work is to generate an economic flowsheet to process vanadium-lead-zinc gravity concentrate from the Abenab deposit and produce down-stream high-value products such as vanadium electrolyte for vanadium redox flow batteries (VRFBs) as well as allow further processing to produce Vanadium Pentoxide (V2O5).