Lefroy Exploration : Major Drilling Programs Recommenced at Lefroy

ASX RELEASE-18 January 2022

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Exploration Update

Major Drilling Programs Recommenced at Lefroy

Two major early-stage gold focussed aircore drilling programs have recommenced and are underway at the Lefroy Gold Project, 70km southeast of Kalgoorlie

At the wholly owned Eastern Lefroy, a 9000m aircore drilling campaign is evaluating multiple targets external to the Burns Cu Au prospect and which are considered prospective for gold mineralisation beneath Lake Randall. The program is: -

1. a continuation and expansion of the lake drilling aircore drill program that

commenced in November 2021 at Burns

o evaluating multiple host rocks and target styles generated from assessment of geophysical data, including extensions to Burns, over a 50km2 area of Lake Randall

1. scheduled to take 6 weeks to complete with assay results expected from April.

At Western Lefroy, JV partner Gold Fields has recommenced the 46,000m Full Field Aircore (FFAC) program that commenced in October 2021. The program is: -

1. designed to cover most of the land area of the tenement package with

approximately 1318 vertical holes on regular 400m by 400m spaced grid pattern planned

1. expected to take at least 6 months to complete, with first assay results to be reported by Gold Fields in April.

Initial assay results from the aircore drilling programs completed by the Company and Gold Fields at Eastern and Western Lefroy in 2021 are expected in January 2022.

AC drilling at Lake Randall

Lefroy Exploration Managing Director, Wade Johnson said "We are excited to be back out drill testing multiple targets for gold and gold copper mineral systems nearby to Burns and beneath the vast Lake Randall. Our campaign complements the recommencement of the land based FFAC drilling program by Gold Fields at Western Lefroy. In total +50,000m of early-stagedrilling is being undertaken on these two fronts at the Lefroy Project"

ASX Code: LEX	Australian Registered Office	E: [e-mail]
T: [phone]
Shares on Issue: 146M	Level 3, 7 Rheola St	ARBN: 052 123 930
Market Capitalisation: $44.5m	West Perth, 6005

www.lefroyex.com

ASX Announcement

18 January 2022

For personal use only

Lefroy Exploration Limited (ASX: LEX) ("Lefroy" or "the Company") is pleased to announce 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 (Figure 1).

Figure 1. Lefroy Gold Project showing extent of the Eastern and Western sub projects, proximity to the St Ives and Daisy Milano gold mines and areas of aircore drilling now underway. Refer to Figure 2 for the inset and detail to the aircore drilling targets at Eastern Lefroy.

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ASX Announcement

18 January 2022

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Eastern Lefroy-Lake Randall

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 is shown on Figure 3.

Figure 2 Inset figure highlighting targets to be drilled in Lake Randall. Inset (Figure 3) refers to drilling completed immediate adjacent to Burns.

The stage 2 drilling program in Lake Randall was suspended in mid-December 2022 for the year

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ASX Announcement

18 January 2022

end break, with 199 vertical holes being completed (Figure 3). 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
onlywith 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 (Figure 2).
	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.
useThe key targeting parameters or areas of priority focus are: -
personal	• Extension of the Burns diorite complex northwest of Lovejoy and out to Neon
copper anomalies generated while the specialised lake drill rig is on site.
	•	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 9000m 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
For	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.

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ASX Announcement

18 January 2022

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Figure 3 Combined satellite image with transparent TMI RTP aeromagnetic image highlighting the discrete magnetic anomalies (e.g., Lovejoy, Skinner, Flanders) along strike of Burns. White stars represent AC drill holes completed in November-December 2021. (Warm colours represent rocks beneath the surface with higher magnetite content). October 2021 RC holes are depicted.

Western Lefroy

Gold Fields Limited (NYSE: GFI) ("Gold Fields") has recommenced a major aircore (AC) drilling program (Figure 4) 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(refer LEX ASX release 12 October 2021).

That program involves completing approximately 1300 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 8690m were completed (Figure 4). 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 (LEX:ASX release 12 October 2017).

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