Golden State Mining : $2.5 million Capital Raise for Major Projects in WA

ASX ANNOUNCEMENT

8 April 2022

ASX Code: GSM

$2.5 million capital raise for major projects in WA

Exploration programs planned for gold, lithium and base metals

Gold, lithium, and base metals exploration company Golden State Mining Limited (ASX code: "GSM" or the "Company") is pleased to announce that it has successfully completed a bookbuild to raise $2.5 million in a placement to sophisticated and professional investors through the issue of 33.3 million new shares at 7.5 cents per share (Placement).

Use of Proceeds

Funds raised from the Placement, together with the Company's existing cash reserves, is intended to be applied towards (where applicable) the following:

•  Four Mile Well, near Laverton WA

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  Soil sampling survey currently underway Follow-up AC or RC drilling Q2

•  Yule exploration, in the Pilbara region WA

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  Target 2A - Li & Au - RC drilling Q2

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  Balla Yule - Ni, Co, Cu & Li - AC & RC drilling Q4 Yule East - Au - AC & DD drilling Q4

•  Payne's Find, in the Murchison region WA

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  Lithium and base metals targeting Soil sampling

•  Compile and review historic data on all five new tenement areas ~3,800km2

•  Additional exploration programs in 2H CY22 (to be confirmed)

•  Ongoing working capital requirements and general administrative overheads

Euroz Hartleys Limited acted as Lead Manager to the Placement.

Commenting on the success of the Placement, GSM's Managing Director, Mike Moore, said: "We are greatly pleased and welcome the significant support demonstrated by the oversubscribed Placement by existing shareholders and to new investors of the Company. The appetite for this placement has certainly endorsed the recent project targeting strategy as well as the significant advances made at the Yule project in the Pilbara region of WA over the past two years. GSM is now well positioned as it looks to significantly advance lithium and gold exploration at our six key target areas at Yule as well as important preliminary work at our Payne's Find lithium and base metals project in the Murchison region which formed part of our aggressive targeting work in late 2021 in Western Australia. The company now has several future metals projects that it will continue to refine over the coming months and we look forward to providing regular updates throughout 2022."

Placement Details

The Placement will result in the issue of ~33.3 million new fully paid ordinary shares at an issue price of $0.075 each.

The issue of 20,726,667 shares is not subject to shareholder approval (falling within the Company's placement capacity under ASX Listing Rule 7.1 (12,417,869 shares) and 7.1A (8,308,798 shares)). This portion of the placement is expected to settle Thursday, 14 April 2022.

The issue of 12,606,667 shares is subject to shareholder approval at a general meeting scheduled to take place by mid to late May 2022, with this portion of the placement expected to settle in mid to late May.

Golden State's directors and staff have committed to $100,000 in the Placement (the director's component subject to shareholder approval).

Figure 1: Four Mile Well Project showing tenements over geochemical anomaly

Figure 2: Yule Project Plan showing follow up drill targets established from reconnaissance AC drilling vectors

Figure 3: Target 2 (Southern Section) Plan showing significant results and LCT pegmatite RC targets

Figure 4: Payne's Find North location plan showing target zone with respect to Meleya Discovery

Upcoming Exploration Activities in 2022

For further information please contact:

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Mike Moore (Managing Director) on 08 6323 2384

- Greg Hancock (Non-Executive Director) 08 6323 2384