Labyrinth Resources : High grade results received at Labyrinth Gold Project

ASX ANNOUNCEMENT

26 April 2022

Labyrinth Gold Project, Canada

Strong first assays with high grades and significant widths

The results support Labyrinth's strategy to convert the 479,000oz foreign resource to a JORC-compliant estimate later this year

Key Points

• • Assays from first seven holes at the targeted Boucher lode consistently exceed, or confirm, the historic mineralised intervals used in the 2010 NI43-101 foreign estimate (2.1Mt @ 7.1g/t for 479,000oz)1

• • Highlights include:

  • o 7.5m @ 7.01g/t from 213m in hole LABU-22-06 including 0.5m @ 62.51g/t and 1.45m @ 8.46g/t

  • o 2.8m @ 5.2g/t from 230m in hole LABU-22-05 including 0.4m @ 18.91g/t

  • o 1.5m @ 4.68g/t from 201m in hole LABU-22-03 targeting shallowest extent of known Boucher modelled lode close to surface

• • Drilling also intersected the Talus lode just 21 - 27m off collar adjacent to McDowell 90Lvl West drill platform, again demonstrating consistent lode widths greater than historical interpretation, including:

  • o 3.7m @ 4.75g/t from 23m in hole LABU-22-07 including 0.35m @ 21.78g/t

• • More assays pending and drilling is ongoing

• • Metallurgical test-work to start within weeks as part of strategy to complete a maiden JORC estimate this year

1 Refer to ASX announcement 2 September 2021 (Initial Market Announcement) for foreign estimate information, JORC 2012 tables, cautionary statement and competent person statement. The Company is not aware of any new information or data that materially affects the information included in the 2 September release. All material assumptions and technical parameters continue to apply and have not materially changed.

Cautionary Statement: the estimates of mineralisation in respect to the Labyrinth and Denain gold projects reported in this announcement are "foreign estimates" for the purposes of the ASX Listing Rules, and accordingly:

• • the estimates are not reported in accordance with the JORC Code;

• • a competent person has not done sufficient work to classify the foreign estimates as mineral resources or ore reservices in accordance with the JORC Code; and

• • it is uncertain that following evaluation and/or further exploration work that the foreign estimates will be able to be reported as mineral resources or ore reserves in accordance with the JORC Code.

1

Figure 1 - Core tray containing Boucher intercept from ~213m in LABU-22-06, hosting 7.5m @ 7.01g/t

Labyrinth Resources (ASX: LRL) ('Labyrinth' or 'the Company') is pleased to announce strong first assays from drilling at its Labyrinth Gold Project in Quebec, Canada.

The results, which come from the first seven holes of the maiden underground diamond drilling program, confirm the presence of significant broad widths of mineralisation supported by discrete high-grade veining in the targeted Boucher lode.

Labyrinth Chief Executive Matt Nixon said: "These assays are an outstanding start to our maiden drilling program.

"They are entirely consistent with our strategy to convert the existing 479,000oz foreign resource to a JORC estimate this year.

"Importantly, the results support our view that the orebody hosts significantly wider mineralisation around the high-grade discrete veins, which in turn highlights the potential for more gold than previously estimated.

"These consistent widths exist 200 - 400m below surface, which is common in Abitibi deposits that often only open up in width and grade below the 300 - 500m horizon, with the Labyrinth Gold Project remaining open at depth and along strike".

Exploration Update

The maiden underground diamond drilling program at Labyrinth Gold Project consists of ~5,000m across 20 holes targeting the known resource mineralisation over a strike o 400m and to a depth of 400m below surface, with 15 holes focussed on the highly prospective Boucher lode, to enable conversion of the NI43-101 Resource compiled in 2010 to JORC classification.

Results have been received for holes LABU-22-01 through to LABU-22-07, with assays pending for LABU-22-08 through to LABU-22-10 and drilling ongoing. The initial results from the first seven holes drilled confirm the Boucher presence associated with the Labyrinthe Fault and pleasingly support the grade distribution indicated by historical data that was used to generate the foreign resource estimate.

Figure 2 - Significant intercepts of LABU-22-01 to LABU-22-07 collared in the MCD_90_W ore drive

The initial exploration campaign seeks to confirm two important attributes of the resource identified through due diligence by the Labyrinth team:

• 1) That the mineralised intervals of the Labyrinth Gold Project lodes are substantially wider than previously modelled by historic assessments, which would provide ore widths significantly more conducive to successful, profitable underground production activities; and

• 2) That the consistency of mineralisation widths and grade tenure improves as the ore body depth increases; This is typical of numerous similar deposits throughout the Abitibi Greenstone Belt.

While only an initial small data set of assay results have been received, the compilation of these results with historic intercepts into the Boucher lode at depths between 200m and 450m below surface as illustrated in Figure 3 demonstrate very encouraging gold volume consistency, most importantly remaining open at depth and along strike. Labyrinth intends to test this immense potential with subsequent exploration phases.

Figure 3 - All intercept results of historically modelled Boucher2 lode below 200m from surface

A detailed review of the historical results and their utilisation in the NI43-101 foreign estimate, such as in the example of RU-04-08 in Figure 4, illustrate the immediate upside potential of the mineral resource at the Labyrinth Gold Project. The historical foreign resource estimate included an assay result for RU-04-08 of 14.35g/t over a Boucher interval of 2.4m, yet excluded a discrete high-grade result of 1.2m at 22.35g/t. The total composited result for this interval is 6.4m @ 9.86g/t. Pleasingly, this significant result is validated by LABU-22-06 located just 60m away from RU-04-08.

Figure 4 - Assessment of historical data from RU-04-08 and comparison to LABU-22-06 result

2 Refer to Initial Market Announcement for all historically reported results utilised in foreign estimate.

To support Labyrinth's strategy to deliver a maiden JORC Resource for the flagship project

in 2022, SGS Canada Inc. have been engaged to conduct necessary metallurgical test-work in the coming weeks, with a drill rig relocation planned accordingly to enable exploration targeting of the McDowell lode and the mine sequence of the existing historic underground development.

This announcement has been authorised and approved for release by the Board.

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