Lefroy Exploration : March 2021 Quarterly Activities Report

ASX Announcement

30 April 2021

LEFROY EXPLORATION LIMITED

Western Australian Focused

Gold Explorer

ASX Code: LEX

Shares on Issue: 120M

Current Share Price: $1.06

Market Capitalisation: $127m

Board of Directors

Chairman

Gordon Galt

Managing Director

Wade Johnson

Non-Executive Directors

Michael Davies

Geoffrey Pigott

Flagship Exploration Project

Lefroy Gold Project

• Eastern Lefroy
• Western Lefroy JV

Growth Exploration Project

Lake Johnston Project

Australian Registered Office

Level 2, 11 Ventnor Avenue

West Perth, 6005

1. [e-mail]

1. [phone]

1. [phone] ARBN: 052 123 930

www.lefroyex.com

March 2021 Quarterly Activities

Report

HIGHLIGHTS

Exploration during the March 2021 quarter included drilling programs evaluating the Burns Cu-Au Prospect at Eastern Lefroy and further drilling at Western Lefroy by JV partner, Gold Fields.

Eastern Lefroy

1. A 28-hole RC and diamond tails program evaluated the Burns Cu-Au Prospect.

1. Results included one outstanding hole:

• LEFR260 38m @ 7.63g/t Au & 0.56% Cu from 134m to
  EOH
  Incl. 27m @ 10.1g/t Au & 0.74% Cu and 1.5g/t Ag from 141m (272gm metres Au).

1. A follow-up diamond drilling campaign is underway seeking to expand the Cu-Au mineralisation in the Eastern Porphyry zone.

Western Lefroy JV

1. 17 RC and diamond drill holes were completed totalling 3326m. o Results continue to reinforce and advance the understanding of
   the geological prospectivity beneath Lake Lefroy.
   o An 11-hole RC drill program is currently underway to follow up aircore intercepts along strike from LJV01.

Lake Johnston

1. At Lake Johnston, a 22-hole aircore drill program was completed at the Bullseye nickel target. Drilling intersected ultramafic intrusive rocks supporting the geological model. Results include:
2. • 27m at 0.40% Ni & 0.02% Co from 16m in hole LKJA005 including 12m at 0.46% Ni & 0.02% Co from 16m
   • 8m at 0.72% Ni & 0.09% Co from 8m in hole LKJA018 including 4m at 1.04% Ni & 0.15% Co from 8m
   • 18m at 0.32% Ni & 0.01% Co from 8m in hole LKJA020

Corporate

1. The Company had $2.88m in cash and equivalents and zero debt as at 30 March 2021.

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ASX Announcement 30 April 2021

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30 April 2021

INTRODUCTION

Overview

The Board of Lefroy Exploration Limited (ASX: LEX) ("Lefroy" or the "Company") is pleased to provide its report on exploration activities during the March 2021 Quarter. Lefroy is an exploration company taking a systematic generative exploration approach at its flagship Lefroy Gold Project ("LGP") to discover high-value gold and gold-copper deposits.

Lefroy Gold Project (LGP)

The Lefroy Gold Project is wholly owned by the Company and located approximately 50km to the south east of Kalgoorlie in the Eastern Goldfields Province of Western Australia (Figure 1). The commanding, semi-contiguous, granted land package covers 637.6km2 immediately east of and adjoining the world class +10Moz St Ives Gold camp, operated by Gold Fields Limited (NYSE: GFI) ("Gold Fields"), and is immediately south of the high-grade Mt Monger gold centre operated by Silver Lake Resources Limited (ASX:SLR) ("Silver Lake"). Four gold processing operations are strategically located within 50km of the project and provide commercial options for processing any gold resources discovered.

LGP is referenced in two packages, i.e.

• Eastern Lefroy covering 265.6km2 of wholly owned tenements (Figure 1) including Lucky Strike, Red Dale, Hang Glider Hill, Havelock, Burns and other sub-projects along or near the regional scale Mt Monger fault and;
• Western Lefroy Joint Venture ("WLJV") tenements (Figure 1) covering 372km2 adjoining the Gold Fields tenements that make up the St Ives mining operation. Gold Fields can earn up to a 70% interest in the LEX tenements by spending up to a total of $25million on exploration activities within 6 years of the commencement date, 7 June, 2018.

Eastern Lefroy Gold Project

The key focus of exploration by the Company in Eastern Lefroy during the quarter was at the Burns Copper-Gold Prospect ("Burns Cu-AuProspect") located within the Lake Randall Exploration Hub that is immediately south east of the Lucky Strike-Havelock-Erinmore BIF trends and contained within the Non-JV Eastern Lefroy sub project (Figure 1).

This involved a 28-hole reverse circulation (RC) and diamond tails drill program for a total of 4955m. The initial 22-hole RC drill program, designed to evaluate the depth and strike extensions to the Burns Cu-Au system (refer LEX ASX release 12 January 2021) was completed on 12 February 2021. Outstanding assay results were announced in February (refer LEX ASX release 23 February 2021). Subsequently, in March 2021, six angled RC holes designed as pre collars for later diamond tails were completed at Burns.

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ASX Announcement 30 April 2021

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30 April 2021

Resampling results were announced at the end of April (refer LEX ASX release 27 April 2021) with remaining results from the RC and diamond tails being announced two days later (refer LEX ASX release 29 April 2021). The program identified outstanding high-grade gold and copper mineralisation at the Burns Cu-Au Prospect.

Subsequent to the initial assay results, a follow-up diamond drill program commenced on 20 April 2021. The diamond drill program is focused on expanding the Cu-Au mineralisation hosted by magnetite-altered diorite porphyry at the Burns Cu-Au Prospect (LEX ASX release 20 April 2021). The program is expected to take two months to complete and total approximately 2000m. Results from this drill program will provide fundamental geological information and be used to guide further exploration within this underexplored region.

Western Lefroy Joint Venture

In July 2020, Gold Fields commenced a 9000m RC and diamond drill program to evaluate five key targets generated on Lake Lefroy in the Western Lefroy JV (refer LEX ASX release 27 July 2020). That program was ongoing in the March 2021 quarter with 1902m of RC and 1424m of diamond drilling completed. Drilling is still in progress.

Figure 1 Lefroy Gold Project showing Eastern and Western Lefroy and the location of the Burns Cu-Au Prospect where drilling is underway, and the Lucky Strike and Hang Glider Hill prospects. Refer to Figure 2 for the Burns location plan.

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ASX Announcement 30 April 2021

ASX Announcement

30 April 2021

EXPLORATION ACTIVITIES

Eastern Lefroy Gold Project (LEX 100%)

The Eastern Lefroy project is a semi contiguous package of wholly owned tenements that cover approximately 37km of strike along and straddling the regional scale Mt Monger Fault (Figure 1). The Mt Monger Fault is considered to be structurally analogous to other major regional faults in the Kalgoorlie terrain (e.g. Boulder Lefroy, Zuleika, Randall) that are likely a primary control to gold mineralisation. The Company considers the Mt Monger Fault to be similarly prospective for large gold deposits, however the area lacks the same degree of exploration.

The Company has identified three priority centres or hubs along the Mt Monger Fault trend where greenfields exploration for gold is being focused (Figure 1). These hubs are ranked according to the level of prior exploration activity, gold anomalies identified, and the structural setting.

P1- Lake Randall Exploration Hub: -Generative Exploration

P2- Lucky Strike Exploration Hub: -Advanced Exploration

P3- Hang Glider Hill Exploration Hub: -Reconnaissance Exploration

During the March 2021 Quarter the Company shifted its focus to the Lake Randall Exploration Hub from the Lucky Strike Exploration Hub following the identification of visual native copper in intersections at the Burns Cu-Au Prospect. No drilling work was completed at either the Lucky Strike Exploration Hub or Hang Glider Hill Exploration Hub in the quarter.

Lake Randall Exploration Hub (Burns Cu-Au Prospect)

The Burns Cu-Au Prospect lies within the Lake Randall Exploration Hub that is immediately south east of the Lucky Strike-Havelock-Erinmore BIF trends. The hub contains tenement E15/1715 that covers an area of approximately 20km2 containing the Burns prospect that was discovered by Octagonal Resources Limited in 2011.

The Burns Cu-Au Prospect is situated on the eastern margin of a large interpreted felsic intrusion, termed the Burns Intrusion. The intrusion does not outcrop and is represented by a distinct annular aeromagnetic and gravity geophysical signature (Burns anomaly) (Figure 2) (refer LEX ASX release 16 September 2020).

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ASX Announcement 30 April 2021

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Figure 2 Inset plan highlighting, the location of the Burns Cu-Au Prospect and proximity to Lucky Strike on a satellite image. The extent of the newly acquired tenement E25/524 is also shown. The banded iron formation (BIF) trends are highlighted as dark blue lines. Refer to Figure 3 for Burns drill hole plan

An initial 22-hole combined RC and diamond drill program totalling 4026m, designed to evaluate the depth and strike extensions to the Burns Cu-Au Prospect, was completed on 12 February 2021. The program evaluated the previously defined Burns Cu-Au Prospect at depth on four, 40m spaced sections, with two 40m spaced step-out sections testing the northern strike extent. Two RC holes evaluated the underexplored eastern side of the Burns anomaly (LEX ASX release 12 January 2021).

On 23 February 2021, assay results were announced for the ten RC holes of the 22-hole program. The majority of the results received were for 7 RC holes drilled on two new 40m spaced step out sections immediately to the north of the previously drilled area (Figure 3). Results were also received for two holes (LEFR259 & 260) drilled on the northern most prior drill section (Figure 3) and designed to evaluate the underexplored eastern side of the Burns magnetic anomaly. These holes were the only holes in this phase of drilling to evaluate the eastern side.

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ASX Announcement 30 April 2021