Lefroy Exploration : Multiple Intervals of Altered Porphyry Intersected at Burns

ASX RELEASE-3 May 2021

Multiple Intervals of Altered Eastern Porphyry in

First New Diamond Drill Hole at Burns

• The new diamond drilling program at Burns is underway, with the first hole, LEFD004, ending at 371m. The hole was designed to twin RC hole LEFR 260 to approximately 170m, then investigate any downhole extension of the Eastern Porphyry zone. The hole is collared approximately 5m from LEFR260.
• For reference, LEFR 260 showed a strong Au Cu intersection in the host Eastern Porphyry, ie

• 1. 38m @ 7.63g/t Au & 0.56% Cu from 134m to 172m (EOH) Incl. 27m @ 10.1g/t Au & 0.74% Cu from 141m
• The diamond hole intersected a 187.5m downhole interval of the Eastern porphyry and then entered massive biotite chlorite altered basalt till EOH at 371m down hole. This is the broadest interval of the host diorite porphyry yet seen from drilling at Burns. The interval contains three distinct variants of the diorite porphyry indicating a multi-phase intrusive event. The estimated true width of the interval is 110m
• Multiple mineralised zones were intersected in the Eastern Porphyry as noted below. Photos of these intersections are attached.
• 1. From 117-169m, the twin position to LEFR260, a 52m interval of altered porphyry with some narrow basalt zones and a sulphide magnetite structure

1. From 185-195m, a new 10m interval, porphyry with intense hematite (red rock) alteration with disseminated pyrite and trace blebs of chalcopyrite.

This interval is also characterised by magnetite-chlorite veinlets.

• 1. From 216-266m, a new 50m interval, porphyry with weak red rock alteration and trace magnetite pyrite chalcopyrite alteration.
• Assays from hole LEFD004 are expected in June.
• A further 13 holes are planned under this current program, with total length of drilling expected to exceed 3000m. The next hole, which will test 50m vertically beneath the mineralisation in LEFR260 using a prior RC drill hole (OBURC025) as a pre-collar, is now underway.

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ASX Announcement

3 May 2021

Lefroy Exploration Limited (ASX: LEX) ("Lefroy" or "the Company") is pleased to announce initial results from the current diamond drilling program 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 south east of Kalgoorlie (Figure 1).

The Burns gold copper 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.

Broad high-grade mineralisation is hosted within a newly discovered hematite-pyrite-chalcopyrite- magnetite altered porphyry. This porphyry, termed the Eastern Porphyry, is open to the north and south and its eastern extent is unknown (Figure 2). The mineralisation is open at depth.

Figure 1 Lefroy Gold Project, highlighting Eastern and Western Lefroy, the location of the Burns prospect and proximity to Lucky Strike. Refer to Figure 2 for Burns drill hole plan.

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ASX Announcement

3 May 2021

Discussion

A fourteen-hole diamond drill program commenced on 20 April 2021 to evaluate the Eastern Porphyry over a 200m strike length on 40m spaced drill sections (Figure 2). The first hole of the program is complete ((LEFD004, Figure 3). The hole was designed to twin and extend past the high-grade interval found in LEFR260 to determine the width of the eastern porphyry.

The hole was sited 5m back (west) from LEFR 260 (refer Figure 3), had a mud rotary pre collar to 39m and was then tailed by HQ and finally NQ sized diamond drill core to EOH at 371m down hole. The host eastern porphyry was intersected from 117m to 304.5m, a down hole interval of 187.5m. The hole terminated in massive biotite chlorite altered basalt (304.5m-371m)

The 187.5m intersection of porphyry is the longest downhole interval of porphyry intersected to date at Burns. Three distinct variations of the host diorite porphyry are observed in this interval and are interpreted multi-phase intrusive events. Similar diorite porphyry intrusives are seen elsewhere at Burns external to the eastern porphyry.

This hole has provided important information to highlight the dimensions and constraints to the porphyry on this baseline (0N) section. The porphyry is interpreted to have a near vertical dip and an estimated true width of approximately 110m bounded by basalt to the west and east (Figure 3). This is the largest interval of porphyry seen at Burns to date. The porphyry is interpreted to extend at least a further 120m to the north and 80m to the south and is open.

Multiple broad zones of alteration and mineralisation where intersected in the porphyry in LEFD004 as follows:

• from 161m-172m, a zone of magnetite hematite sulphide (pyrite-chalcopyrite) altered porphyry interpreted to represent the high-grade zone intersected in LEFR 260
• from 185m-194.5m, fine grained porphyry with intense red rock (hematite) alteration with fine disseminated pyrite, trace blebs of chalcopyrite and magnetite-chlorite-actinolite veinlets with associated magnesite and anhydrite
• from194.5m-215m,coarse porphyry with moderate red rock alteration and trace pyrite- chalcopyrite
• from 216m-266m, both fine- and coarse-grained porphyry with weak to moderate red rock alteration and trace stringer veins containing pyrite-chalcopyrite-actinolite- magnesite.

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ASX Announcement

3 May 2021

Importantly the red rock and magnetite-sulphide (pyrite, chalcopyrite) over prints each of the three variants of the host diorite porphyry and at this early stage is considered a final event in the paragenesis of the system. This indicates and supports the Company's initial interpretations of the Burns copper gold prospect being multi-stage mineral system, with the final magnetite sulphide event (refer Figure 5) mineralising both the porphyry and the basalt host rocks.

Figure 4 LEFD004 interval 201-203m of altered diorite porphyry with chalcopyrite and magnesite

Figure 5 LEFD004 -108m magnetite vein structure (location of pen magnet)

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ASX Announcement

3 May 2021

Assay results for hole LEFD004 are expected in June.

Diamond drilling remains underway with a diamond tail to OBURC025 currently in progress (Figure 3). This hole will test 50m vertically beneath the mineralisation in LEFR260 using a prior RC drill hole (OBURC025) as a pre-collar.

An estimated 3000m of diamond drilling is planned in this program. Drilling will be initially undertaken using one drill rig on a single shift but can be increased to double shift subject to availability of drill crews. The 14-hole program is live and allows for flexibility to adjust holes, hole depths and priority dependent on the geology intersected in completed holes. The position of the Eastern Porphyry also gives scope for the Company to utilise older RC holes as pre collars

Figure 2 Drill hole plan at the Burns prospect highlighting the Jan-Mar 2021 drill program (LEFR 259 to LEFR 286) planned diamond drill tails (blue open circles) relative to LEFR260 and the interpreted extent of the Eastern Porphyry (refer Figure 3 for the Baseline drill section).

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