Lefroy Exploration Limited announced that two major early stage aircore (AC) drilling programs have recommenced and are underway at the Lefroy Gold Project (LGP) located 70km southeast of Kalgoorlie. Both programs are focussed on exploring for new gold mineral systems in areas of limited or no previous drilling coverage. At the Company's wholly owned Eastern Lefroy sub project aircore drilling has recommenced to evaluate multiple geophysical targets in the vast Lake Randall, continuing and expanding upon the program that commenced in November 2021 immediately adjacent to Burns.

At Western Lefroy, JV partner Gold Fields has also recommenced the large, land-based Full Field Aircore (FFAC) drilling program that commenced in October 2021. In October 2021 the Company commenced a staged drilling program to assess the limits of the Burns Cu-Au mineral system, with targets generated from the detailed aeromagnetic survey completed in July 2021. The general association of the Au-Cu-Ag mineralisation at Burns, with magnetite in both basalt and diorite porphyry rocks, provides the rationale for a strong, first order exploration program focussed on the newly found magnetic anomalies.

Stage 1 of the program involved drilling land-based aeromagnetic targets (onshore) using an RC rig. This program was completed in early November and results from the 12 RC holes are pending. Stage 2 commenced in late November 2021 and involved using specialised lake aircore rig to evaluate aeromagnetic targets (e.g., Lovejoy, Kenny's Dream) in Lake Randall (offshore) immediate adjacent to and along the Burns corridor.

The extent of drill hole coverage from this campaign. The stage 2 drilling program in Lake Randall was suspended in mid-December 2022 for the year end break, with 199 vertical holes being completed. Results for this campaign are pending with initial results expected in February.

The assay turnaround time is now extending out to 3 months post-despatch from Kalgoorlie due to staffing constraints and volume of samples to be processed at the Perth laboratory. During the November-December 2021 AC drilling campaign, additional drill targets were generated in Lake Randall based on geological information derived from the recent campaign and interrogated with geophysical (gravity & aeromagnetic) datasets. Twelve new drill targets were generated in Lake Randall and extend approximately 15km to the east over the Company's tenure.

Targets include some that are partially tested by previous (non-LEX) drilling at Neon and Monte Cristo, but most are newly generated targets with no prior exploration. The program aims to discover new gold and or gold copper mineral systems, peripheral and parallel to the Burns corridor beneath Lake Randall and to fill the geological knowledge gap in this largely unexplored area. The key targeting parameters or areas of priority focus are: Extension of the Burns diorite complex northwest of Lovejoy and out to Neon Demagnetised zones within the strike extensions of the Lucky Strike, Havelock and Erinmore sedimentary iron formations Targets (e.g., Monte Cristo) associated with the convergence of the regional Mt Monger and Randall Faults Immediate southeast strike extension of the sequence that hosts the gold mineralisation at Lucky Bay The aircore drilling is planned to test each target on a nominal 160m line spacing, with vertical holes at 80m centres.

A total of 300 holes have been planned, with an estimated average depth of 30m, for a total of approximately 9,000m to be drilled. The program is expected to take at least 6 weeks to complete, with assay results expected in April 2022. The drilling duration is expected to overlap with receival of assay results from the Nov-Dec 2021 drilling campaign and provide the opportunity to conduct infill drilling on gold and or gold copper anomalies generated while the specialised lake drill rig is on site.

The combined results from the lake AC campaigns and the October 2021 RC drill program will provide a broad geochemical and geological baseline framework over a 50 square kilometre area to focus more detailed drill evaluation at and or near to Burns in CY2022. Gold Fields Limited ("Gold Fields") has recommenced a major aircore (AC) drilling progra on the Company's tenements at Western Lefroy. The program is part of the $25million Farm-In and Joint Venture (FIJV) agreement between Lefroy and Gold Fields and a continuation of the program that commenced in October 2021.

That program involves completing approximately 1,300 vertical holes spaced 400m apart on traverses 400m apart to cover most of the land area of the Western Lefroy tenement package. This program will yield foundation geological and geochemical information that will be interrogated in conjunction with the geophysical data to deliver specific targets for AC, RC and diamond drilling. During the December quarter, 442 holes for 8,690m were completed.

This included a focused, close spaced drill program at Paddys Secret, the site of an alluvial gold find in 2013-2014, where several large (plus 10oz) gold nuggets were discovered in a 400m by 200m area. The AC drilling is a reconnaissance technique, searching for both geochemical anomalies and geology from the bedrock or top of fresh rock (TOFR) beneath the surface and oxidised rock that comprise the regolith. The depth of the regolith and TOFR is highly variable, ranging from 5m to 100m vertical and averaging 35m.

The air core program is expected to take 6 months to complete and is dependent on land access. Results material to the Company will be reported to the market as the program progresses. Assay results for the AC drilling completed in the December 2021 Quarter are expected in late January consistent with quarterly reporting requirements under the JV agreement.