Horizon Gold : 32% Increase in Resources at Gum Creek Gold Project

For personal use only

25 July 2022

32% INCREASE IN RESOURCES AT GUM CREEK GOLD

PROJECT

HIGHLIGHTS

• Updated Gum Creek Mineral Resource Estimate of 36.83Mt @ 1.51g/t Au for 1.79Moz represents a 433,100oz (32%) increase in Indicated and Inferred contained gold when compared with the February 2021 MRE at a discovery cost of less than A$14/oz.
• Free milling portion of the MRE is 29.24Mt @ 1.26g/t Au for 1.19Moz, representing over 66% of the total resource ounces and a 46% increase to the 2021 MRE free milling ounces.
• MRE includes nine maiden resources.
• Indicated ounces represent 64% of the total MRE.
• All resource areas remain open along strike and at depth and show strong potential for additional resource growth with further drilling.
• A major drill program aimed at significantly increasing the global MRE and crystalising the outstanding potential of the underexplored Gum Creek greenstone belt is well underway.

Horizon Gold Limited (ASX:HRN) (Horizon, the Company) is pleased to announce a significant increase to the Company's total Mineral Resource Estimate (MRE) that includes updates to the Swan/Swift, Howards, Heron South, Specimen Well, and Kingfisher deposits, and maiden MRE's for the Kingston Town, Manikato, Think Big, Orion, Snook, Camel Bore, Psi, Eagle, and Wahoo prospects all within its 100% owned Gum Creek Gold Project (Gum Creek or the Project) located in the Murchison Region of Western Australia.

Following 34,700 metres of infill and extension reverse circulation (RC) and diamond drilling completed at 16 priority targets in 2021, a revised total MRE of 36.83Mt @ 1.51g/t Au for 1.79Moz gold for the Gum Creek Gold Project (Table A), includes Indicated and Inferred resource classifications in accordance with the Australasian Code for Reporting of Identified Mineral Resources and Ore Reserves (JORC Code 2012 edition) with all resources located within granted mining leases. This updated MRE represents a 433,100oz (32%) increase in Indicated and Inferred gold when compared with the February 2021 MRE1 at a discovery cost of less than A$14/oz2.

1. Refer to Horizon Gold Ltd ASX announcement titled "Gum Creek Gold Project Resource Update" dated 12 February 2021. CP S.Carras.
2. Discovery cost has been calculated as the total capitalised exploration and evaluation expenditure for 2021 and Q1 2022 (since the previous resource update in February 2021) divided by the resource ounces added over the same period.

1

For personal use only

Managing Director Leigh Ryan said:

"We're very pleased with the 433,100 ounce increase to the Gum Creek gold resource which can be largely attributed to our 2021 drilling campaign, and the efforts of our exploration team. This MRE includes nine maiden resources, each with excellent expansion and development potential.

Our 2022 drilling campaign is well underway with over 15,000m of the proposed 25,000m completed, and we're reasonably confident that we'll add significant new ounces to our global MRE at the completion of this program. We're also working on a large pipeline of regional gold and base metal targets to fully evaluate the potential of this exciting, underexplored, highly strategic asset."

Figure 1: Gum Creek Gold Project and surrounding mines

The revised Gum Creek MRE is summarised in Table A, and broken down by material type and metallurgical categories in Tables B and C. The free milling portion of the updated MRE is 29.24Mt @ 1.26g/t Au for 1.19Moz, representing over 66% of the global resource ounces and a 46% increase to the 2021 MRE free milling ounces. Table D compares the current and previous MRE's by resource category, and within the technical section of the announcement Tables I to L and N to P compare the seven updated MRE's with previous published resource estimates. Details of all maiden and updated Mineral Resource Estimates by material type are included in Appendix 1, all resources are located in Figure 2, and plans and 3D diagrams of each resource are presented in Figures 3-30.

Over 15,000m of the Company's proposed 25,000m 2022 drill program targeting shallow oxide and high-grade depth extensions to new and existing high priority gold targets has been completed, however after 9 weeks since the commencement of drilling all assay results are still pending. The first of two diamond core holes planned at the Altair Zn-Cu prospect has also been completed, with an additional 4 diamond core holes planned for the Eagle and Kingfisher prospects.

2

For personal use only

Table A: Gum Creek Mineral Resources as at 25 July 2022

	Resour	Cut-off		Indicated		Inferred			Total
Resource	grade		Au			Au	Gold		Au
ce Date	Tonnes	Gold (oz)	Tonnes	Tonnes	Gold (oz)
	(g/t Au)	(g/t)	(g/t)	(oz)	(g/t)
Swan/Swift OC	Jul-22	0.4	9,980,000	1.09	349,500	2,735,000	0.96	84,600	12,715,000	1.06	434,100
Swan UG	Jul-22	2.5/3.0*	301,000	6.91	66,900	226,000	7.10	51,600	527,000	6.99	118,500
Swift UG	Jul-22	3.0	-	-	-	138,000	5.72	25,400	138,000	5.72	25,400
Wilsons UG	Jul-13	1.0	2,131,000	5.33	365,000	136,000	5.95	26,000	2,267,000	5.36	391,000
Howards	Jul-22	0.4	7,556,000	0.82	199,100	1,359,000	0.72	31,400	8,915,000	0.80	230,500
Kingfisher	Jul-22	0.8	318,000	1.91	19,500	1,745,000	2.24	125,600	2,063,000	2.19	145,100
Shiraz	Jul-13	0.4	2,477,000	0.84	67,200	439,500	0.76	10,800	2,916,500	0.83	78,000
Eagle	Jul-22	0.8	184,000	2.08	12,300	1,390,000	1.39	61,900	1,574,000	1.47	74,200
Wyooda**	Jul-22	0.8	430,000	1.56	21,600	862,000	1.56	43,200	1,292,000	1.56	64,800
Heron South	Jul-22	0.8	280,000	1.58	14,200	807,000	1.78	46,300	1,087,000	1.73	60,500
Snook	Jul-22	0.8	75,000	2.57	6,200	846,000	1.76	47,800	921,000	1.82	54,000
Toedter	Aug-16	0.5	-	-	-	688,800	1.54	34,000	688,800	1.54	34,000
Camel Bore	Jul-22	0.8	379,000	1.47	17,900	100,000	1.21	3,900	479,000	1.42	21,800
Specimen Well	Jul-22	0.8	-	-	-	408,000	1.59	20,800	408,000	1.59	20,800
Psi	Jul-22	0.8	100,000	2.08	6,700	226,000	1.69	12,300	326,000	1.81	19,000
Orion	Jul-22	0.8	69,000	1.49	3,300	182,000	1.40	8,200	251,000	1.43	11,500
Wahoo	Jul-22	0.8	-	-	-	258,000	1.25	10,400	258,000	1.25	10,400
Total			24,280,000	1.47	1,149,400	12,546,300	1.60	644,200	36,826,300	1.51	1,793,600

• cut-offgrades are 2.5g/t Au for Swan Underground (UG) Indicated, and 3.0g/t Au for Swan UG Inferred.
• Wyooda includes the Kingston Town, Think Big and Manikato resources which are within 600m and 200m of each other respectively.

Notes. Rounding errors are apparent. The information that relates to the reporting of the Wilson's, Shiraz, and Toedter Mineral Resources has been extracted from the Horizon Gold Limited ASX announcements titled "Gum Creek Gold Project Resource Update" dated 12 February 2021. The Company confirms that it is not aware of any new information or data that materially affects the information included in this announcement and that all material assumptions and technical parameters underpinning the Mineral Resource estimates in the announcement continue to apply and have not materially changed.

Table B: Gum Creek Mineral Resources by Material Type as at 25 July 2022

	Material Type			Indicated			Inferred			Total
		Tonnes	Au (g/t)	Ounces	Tonnes	Au (g/t)	Ounces	Tonnes	Au (g/t)	Ounces
	Oxide	4,689,000	1.14	172,300	2,423,300	1.31	102,400	7,112,300	1.20	274,700
	Transition	4,609,000	1.05	156,000	1,520,000	1.13	55,100	6,129,000	1.07	211,100
	Fresh	14,982,000	1.70	821,100	8,603,000	1.76	486,700	23,585,000	1.72	1,307,800
	Total	24,280,000	1.47	1,149,400	12,546,300	1.60	644,200	36,826,300	1.51	1,793,600
Note: Rounding errors are apparent.
Table C: Gum Creek Mineral Resources by Metallurgical Category as at 25 July 2022
	Material Type			Indicated			Inferred			Total
		Tonnes	Au (g/t)	Ounces	Tonnes	Au (g/t)	Ounces	Tonnes	Au (g/t)	Ounces
	Free Milling	19,334,000	1.12	694,400	9,904,300	1.54	491,300	29,238,300	1.26	1,185,700
	Refractory	4,946,000	2.86	455,000	2,642,000	1.80	152,900	7,588,000	2.49	607,900
	Total	24,280,000	1.47	1,149,400	12,546,300	1.60	644,200	36,826,300	1.51	1,793,600

Notes: Rounding errors are apparent. Preliminary metallurgical testwork indicates oxide mineralisation at all deposits is free milling, transition mineralisation from Swan/Swift, Howards, Kingfisher, Eagle, Wyooda, Toedter, Specimen Well, Orion and Wahoo is free milling, and fresh mineralisation from Swan/Swift, Howards, Kingfisher, Eagle, Toedter, Orion and Wahoo is free milling. Transition and fresh mineralisation from Wyooda, Heron South, Snook, Camel Bore, Specimen Well, and Psi is variably refractory (refer to JORC Table 1).

Table D: Gum Creek Mineral Resources February 2021/ July 2022 Comparison

	Resource		2021 Gum Creek MRE	2022 Gum Creek MRE		Variance
	Category		Tonnes	Au (g/t)	Ounces	Tonnes	Au (g/t)	Ounces	Tonnes	Au (g/t)	Ounces
	Indicated	13,932,000	2.2	986,000	24,280,000	1.47	1,149,400	74%	-33%	17%
	Inferred	4,654,000	2.5	374,500	12,546,300	1.60	644,200	170%	-36%	72%
	Total	18,586,000	2.3	1,360,500	36,826,300	1.51	1,793,600	98%	-34%	32%

Note: Rounding errors are apparent.

3

For personal use only

Figure 2: Gum Creek Gold Project Mineral Resources, Advanced Mineral Resource Targets and

Exploration Targets over simplified geology3.

3 Refer to Gateway Mining Ltd (GML) ASX announcement titled "Gidgee mineral resource increases 87% to 449,000oz" dated 14 December 2021, CP E.Haren, for information on GML Gidgee Project mineral resource estimates.

4

For personal use only

MRE Technical Reporting

The updated MRE for the Project includes all RC and diamond drilling results obtained from the 2021 drill programs. The updated Swan/Swift Open Cut and Howards MRE's were completed by MPR Geological Consultants Pty Ltd (MPR), the updated Swan and Swift underground MRE's were completed by Carras Mining Pty Ltd (Carras), and the Heron South, Specimen Well, Kingfisher, Wyooda (Kingston Town, Manikato, Think Big), Orion, Snook, Camel Bore, Psi, Eagle, and Wahoo MRE's were completed by Auranmore Consulting Pty Ltd (Auranmore). All other Gum Creek mineral resources reported in Table A remain unchanged from 12 February 20214.

Swan/Swift and Howards Deposits Mineral Resource Statement

MPR Geological Consultants Pty Ltd were engaged by Horizon Gold Limited to report mineral resources consistent with the JORC code 2012 guidelines for the Howards and Swan/Swift open cut areas following additional RC and diamond drilling completed at the deposits during 2021. The estimates were undertaken using Multiple Indicator Kriging (MIK) with block support adjustment and reported at a 0.4g/t Au cut-off grade.

Swan/Swift Open Cut Deposit

The Swan/Swift open cut deposit contains numerous mineralised domains. The estimates are confined to A$2,600/oz optimal pit shells generated by Auralia Mining Consulting using typical owner operator industry mining parameters, and up-to-date average operating costs for deposits of a similar scale and geological nature. The optimised pit constraining the open cut resource comprises several sub-pits within an area ~1.3km by ~1.6km and extends to a maximum depth of around 190m.

The estimates are based on three metre down-hole composited gold assays from RC and diamond drilling. The MRE is summarised in Table E and in Appendix 1.

Table E: Swan/Swift Open Cut Mineral Resource by Material Type as at July 2022 (0.4g/t Au cut-off)

	Material Type			Indicated			Inferred			Total
		Tonnes	Au (g/t)	Ounces	Tonnes	Au (g/t)	Ounces	Tonnes	Au (g/t)	Ounces
	Oxide	3,523,000	1.00	113,200	482,000	0.82	12,700	4,005,000	0.98	125,900
	Transition	3,144,000	1.05	106,100	667,000	0.83	17,800	3,811,000	1.01	123,900
	Fresh	3,313,000	1.22	130,200	1,586,000	1.06	54,100	4,899,000	1.17	184,300
	Total	9,980,000	1.09	349,500	2,735,000	0.96	84,600	12,715,000	1.06	434,100

Note: Rounding errors are apparent.

Swan and Swift Underground Deposits

The Swan and Swift underground mineral resource estimates are reported below the A$2,600/oz Whittle pit shells that constrain the updated Swan/Swift MIK open cut resource. The updated Swan and Swift underground block model, cut-off grades and estimation methodology are unchanged from the 2021 mineral resource4. The revised MRE for both deposits are summarised in Tables F, G and Appendix 1.

Table F: Swan Underground Mineral Resource by Material Type as at 25 July 2022 (2.5g/t Au Indicated & 3.0g/t Au Inferred cut-offs)

	Material Type				Indicated				Inferred				Total
			Tonnes		Au (g/t)	Ounces		Tonnes	Au (g/t)	Ounces		Tonnes	Au (g/t)	Ounces
	Oxide	-		-	-	-	-	-	-	-	-
	Transition	12,000	4.67	1,800					12,000	4.67	1,800
	Fresh	289,000	7.01	65,100	226,000	7.10	51,600	515,000	7.05	116,700
	Total	301,000	6.91	66,900	226,000	7.10	51,600	527,000	6.99	118,500

Note: Rounding errors are apparent. Cut-off grades are 2.5g/t Au for Swan UG Indicated, and 3.0g/t Au for Swan and Swift UG Inferred. Mineral resources are reported beneath A$2,600/oz optimised Whittle pit shells.

4 Refer to Horizon Gold Ltd ASX announcement titled "Gum Creek Gold Project Resource Update" dated 12 February 2021. CP S.Carras.

5