Burns Update – Drill Results Support Larger Cu-Au System

ASX RELEASE-3 November 2021

Burns Update

Drill Results Continue to Support larger Cu-Au-Ag system

• Final assay results have been received from the remaining five holes of the July 9 hole RC drill program at Burns, and from a single hole of the recent 17 RC hole Burns corridor drill program. Results continue to support a growing Cu-Au-Ag Intrusion related mineral system.
• The single hole result is from LEFR297 that tested the edge of Lovejoy magnetic target located beneath Lake Randall. This intersected strongly altered diorite porphyry similar to that observed at Burns 2000m to the southeast. Assay results were:
• • 10m @ 0.21g/t Au & 0.60% Cu & 2.5g/t Ag from 218m Including 2m @ 0.41g/t Au & 1.56% Cu & 5.5g/t Ag from 225m
  • 8m @ 0.22g/t Au & 0.51% Cu & 1.75g/t Ag from 250m to EOH and Including 2m @ 0.67g/t Au & 1.53% Cu & 5.0g/t Ag from 256m to EOH
• Hole LEFR297 ended in Cu-Au-Ag mineralisation on the interpreted margin of the Lovejoy anomaly and had to be abandoned at 258m due to excessive water inflows. A specialised lake drilling rig has been secured to evaluate this priority target and will commence shortly.
• Results for the additional 16 RC holes, which evaluated other recognised multiple magnetic anomalies along the 3000m Burns corridor, are pending. These proof-of-concept holes intersected altered diorite and basalt similar to that seen at Burns at each of the locations tested and demonstrate the larger footprint of the Intrusion related system.
• Results from the final five holes of the July RC drill hole program drilled at Burns support and extend the mineralisation in both the Eastern Porphyry and the Western Basalt. Better results include:
• • 11m @ 1.45g/t Au & 0.10% Cu & 0.59g/t Ag from 108m in LEFR290 (Eastern Porphyry) Including 2m @ 5.04g/t Au & 0.13% Cu & 1.0g/t Ag from 114m
  • 40m @ 0.07g/t Au & 0.14% Cu from 42m in LEFR295 (Western Basalt)
  • 2m @ 3.96g/t Au from 284m in LEFR291
• Preparation for the Stage 2 offshore drilling program to assess the footprint of the greater Burns system extending beneath Lake Randall is well advanced and is due to commence shortly.

Lefroy Exploration Managing Director, Wade Johnson commented "We are pleased with the results from the recent RC drill programs that provide further evidence to the growing footprint of the Burns system. The single results from altered diorite from the edge of Lovejoy are exciting and we are very keen to get the lake drilling underway to further expand the system and make that breakthrough that leads to a large Cu-Au-Agdiscovery"

ASX Code: LEX	Australian Registered Office	E: [e-mail]
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www.lefroyex.com

ASX Announcement

3 November 2021

Lefroy Exploration Limited (ASX: LEX) ("Lefroy" or "the Company") is pleased to report results from two RC drill programs evaluating the Burns copper (Cu) gold (Au) prospect. Burns is within the Eastern Lefroy tenement package, which is part of the wholly owned greater Lefroy Gold Project (LGP) located 50km southeast of Kalgoorlie (Figure 1).

The Burns copper gold prospect is situated on the eastern margin of a large interpreted felsic intrusion, termed the Burns Intrusion. The intrusion does not outcrop but features a distinctive annular aeromagnetic and gravity geophysical signature (Figure 2). The Company has not yet established the association between the larger Burns intrusion and the diorite porphyry intrusions intersected at Burns but consider there is a genetic relationship between them.

Broad high-grade gold mineralisation is hosted within a newly discovered hematite-pyrite-chalcopyrite-magnetite altered diorite porphyry (refer LEX ASX release 23 February 2021) that intrudes high Mg basalt at Burns. This porphyry, termed the Eastern Porphyry, is open to the north and south. The eastern extent of the Eastern Porphyry is now defined, on multiple drill sections, by foliated basalt (footwall basalt). The copper and gold mineralisation hosted by both the diorite porphyry, basalt and massive magnetite veins is considered by the Company to be a new and unique style of Au-Cu-Ag mineralisation in the area, a land position dominated by Lefroy (Figure 1). The existence of additional mineralisation further east and north under Lake Randall is not discounted by the current drilling campaign and will be the subject of more exploration and drilling that is about to commence.

Figure 1 Lefroy Gold Project, highlighting Eastern and Western Lefroy, the location of the

Burns prospect and proximity to Lucky Strike. Refer to Figure 3 for Burns drill hole plan.

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ASX Announcement

3 November 2021

RC Drill programs-background

Two RC drilling campaigns were completed at Burns during the July to October 2021 period. The July program evaluated extensions immediately peripheral to the established Burns prospect while in October a 17 hole step out program was completed evaluating multiple magnetic anomalies along a 3000m corridor north of Burns (refer Figure 2).

Figure 2 Combined satellite image with transparent TMI RTP aeromagnetic image highlighting the discrete magnetic anomalies along strike of Burns and the extent of the +200ppm copper anomaly. The inset area refers to the area of RC and diamond drilling at the Burns Au-Cu-Ag prospect (Figure 3). (Warm colours represent rocks beneath the surface with higher magnetite content). Coloured and black dots represent historical AC drill holes. The October RC drill holes are highlighted. Refer to Figure 3, the inset, for the July RC hole locations.

The nine-hole RC drill program (LEFR287-296) was commenced and completed in July 2021 (refer LEX ASX release 20 July 2021) to evaluate both strike extensions to the Eastern Porphyry and strike and down dip extensions to the Cu-Au mineralisation in the western basalt (refer Figure 3). A total of 2328m of drilling was completed testing 4 targets, including a single hole (LEFR296) testing the Smithers aeromagnetic anomaly.

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ASX Announcement

3 November 2021

The drilling targeted strike extensions to the Eastern Porphyry (LEFR290) and strike and down dip extensions to the Cu-Au mineralisation in the western basalt.

Four holes (LEFR290, 291, 292, 293) evaluated the northern extension of the Burns system (Figure 3). Hole LEFR290, a 40m step out to the north, intersected a 101m downhole interval of altered porphyry including a 10m interval containing intense magnetite-pyrite alteration. The porphyry is open to the north. Hole LEFR 292, an 80m step out from LEFR285 intersected a 30m down hole interval of massive magnetite containing up to 20% pyrite alteration in basalt.

A fence of three 80m spaced holes (LEFR287, 288, 289) were drilled on the 160S section line to evaluate the southern strike extension of the Au-Cu mineralisation in the LEFR273 (Figure 3) and the broad downhole intervals of dominantly copper mineralisation in the western basalt intersected in holes LEFR271, and LEFR272 located 80m to the north.

A single RC hole was also drilled at Smithers to evaluate this aeromagnetic anomaly approximately 250m to the north of Burns. The hole (LEFR294) was successful in penetrating the 90m downhole interval of palaeochannel cover to intersect diorite porphyry, which is similar to the porphyry at Burns and contains two narrow (3-5m) intervals of pyritic magnetite veining. The hole had to be abandoned at 156m down hole. This hole demonstrates that the Burns system extends to Smithers, a distance of at least 500m. This issue was further evaluated in the October RC drilling campaign.

Results for four of the 9 RC holes were reported in the September quarter (LEX ASX release 24 September 2021). Three of the four holes were from the 160S section (Figure 3). The westernmost hole (LEFR289) intersected an impressive 244m downhole interval of copper mineralisation from 20m, hosted by high Mg basalt. This was followed by a further 24m interval of copper mineralised basalt to the end of hole (EOH) at 330m, a combined downhole total of 268m of mineralisation.

The mineralisation is open along strike to the south and at depth. The copper mineralisation in LEFR289 is associated with more extensive and elevated magnetite alteration in the high Mg basalt. This Cu dominant zone at Burns is known as the Western Basalt and the mineralisation is open.

The final results from the remaining 5 RC holes of that program have been received and validated (Table 3). These results further support the growing scale of the mineralised system to the north and west. Significant results from those holes include:

• 11m @ 1.45g/t Au & 0.10% Cu & 0.59g/t Ag from 108m in LEFR290 (Eastern Porphyry) Including 2m @ 5.04g/t Au & 0.13% Cu & 1.0g/t Ag from 114m
• 40m @ 0.07g/t Au & 0.14% Cu from 42m in LEFR295 (Western Basalt)
• 11m @ 0.27g/t Au & 0.29% Cu from 84m in LEFR294 (Smithers)
• 2m @ 3.96g/t Au from 284m in LEFR291

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ASX Announcement

3 November 2021

The mineralisation hosted by the Eastern Porphyry in hole LEFR290 on the northern most section (160N) at Burns (Figure 3) is open, with the next RC holes located approximately 400m to the north at Smithers where results from a single hole (LEFR294) from this program intersected encouraging Au, Cu, Ag and molybdenite mineralisation, which is a similar geochemical signature to that observed at the Burns anomaly (Figure 3). This provides evidence that the Burns anomaly, the site of the discovery hole LEFR260, is a component of a much larger intrusive related system highlighted by the results from the August aeromagnetic survey (Figure 2)

Figure 3 Drill hole plan at the Burns prospect highlighting the Jan-August 2021 drill program (LEFR259 to LEFR295) relative to LEFR260 and the interpreted extent of the Eastern Porphyry. Holes with recent results are highlighted in red font.

A detailed aeromagnetic survey completed over the broader Burns area in August 2021 that defined multiple Burns look alike magnetic anomalies over a 3000m trend (Figure 2), known as the Burns Corridor triggered the Company to commence a staged drilling program to assess the limits of the Burns mineral system. Stage 1 of the program involved drilling land-based targets using an RC rig, with stage 2 requiring a specialised lake aircore rig to evaluate targets (e.g., Lovejoy) in Lake Randall.

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