Hillgrove Resources Limited provided the following drilling update at its Kanmantoo Mine Lease located at Kanmantoo 55kms southeast of Adelaide in South Australia. In total, nine diamond holes have been drilled to the end of January 2023 for 2,759.9 metres of drilling. Drilling has now been completed and all assays received.

Overall, the 2022-23 drilling is very successfully increasing the mineralisation footprint around the Kavanagh lode system upon the Kanmantoo Mine Lease. The Emily Star mineralisation is located approximately 600 metres west of the Nugent Cu-Au zone and has been previously mined by a shallow open pit by Hillgrove in 2013-2015. These drill results (KTDD232-233) affirm the down dip continuity of multiple Cu-Au zones previously mined at Emily Star open pit and justify further drilling to determine the extent of these Cu breccia zones.

The objective of the Kavanagh drilling (KTDD234 and 234_W1) is to assess the northern continuation of the Central Kavanagh Cu-Au system. The two drill holes affirm that the Kavanagh alteration zone continues to the north hosting narrow zones of higher-grade copper breccia mineralisation. The North Kavanagh Cu-Au zone intersected in five drill holes (KTDD235 to KTDD238) is located approximately 190m west of the proposed Kavanagh underground development and is mineralisation that is in addition to the West, Central and East Kavanagh Cu-Au zones that have been previously reported and inform the May 2022 Kavanagh Mineral Resource Estimate.

These drill holes indicate that the North Kavanagh Cu-Au mineralised zone has at least 100m strike length and is open to the north and down plunge. The 2022-23 diamond drilling program is being undertaken from within the Kanmantoo Mine Lease. All holes are collared and drilled using conventional HQ/NQ diamond drilling tools and navi-drilling as required to achieve the targets.

Appendix B also describes the drilling techniques and QA/QC processes. Emily Star Drilling: The 2022-23 Emily Star (KTDD232 & 233) drilling is successfully demonstrating the presence of new Cu-Au zones that warrant further drilling to assess their significance to profitably contribute to the Kanmantoo underground mine plan. The Emily Star area is a significant key to the possible establishment of a South Hub underground mining operation and these two drill holes confirm HGO's interest in this area.

Pprovides an example of the Cu-Au breccia zone in KTDD233 at Emily Star from a downhole depth of 183m. The vein-breccia chalcopyrite-pyrrhotite is hosted in a strongly magnetic biotite-garnet-chlorite schist. Note the excellent core recovery.

Central Kavanagh Drilling: The 2022-23 Central Kavanagh drill program (KTDD234 and 234_W1) has successfully identified the northern continuation of the alteration zone that hosts the Kavanagh Cu-Au mineralisation and has confirmed the strike continuation of the Northern HW Cu-Au zone previously reported in drill hole KTDD204 (9m @ 1.26% Cu, 0.53 g/t Au) and KTDD198 (6.7m @ 1.06% Cu, 0.42 g/t Au). North Kavanagh Drilling: The 2022-23 North Kavanagh (KTDD235-238) drilling is successfully demonstrating the presence of new Cu-Au zones that warrant further drilling to assess their significance to profitably contribute to the Kanmantoo underground mine plan. Summary: These drilling results, as experienced in every drill program since 2018, continue to demonstrate that drilling is continuing to increase the footprint of the Cu-Au zones at Kanmantoo in preparation for underground mine planning.