Lefroy Exploration : September 2020 Quarterly Activities Report

ASX Announcement

29 October 2020

September 2020 Quarterly

Activities Report

LEFROY EXPLORATION LIMITED

Western Australian Focused

Gold Explorer

ASX Code: LEX

Shares on Issue: 100.5m

Current Share Price: 24.0c

Market Capitalisation: $24.1M

Board of Directors

Chairman

Gordon Galt

Non-Executive Directors

Michael Davies

Geoffrey Pigott

Managing Director

Wade Johnson

Flagship Exploration Project

Lefroy Gold Project

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

Highlights

Exploration activity in the September 2020 quarter was a period of renewed focus on early stage programs to evaluate multiple target areas at Eastern Lefroy, complemented by diamond drilling in Lake Lefroy by JV partner Gold Fields at Western Lefroy.

• A significant baseline exploration program was completed in the Eastern Lefroy Project, with a total of 12,436m drilled in a 279- aircore drill hole program covering the Hang Glider Hill, Lucky Strike and Havelock areas. Results include:
• • Hang Glider Hill - enhanced gold prospectivity of the target area highlighted a 3.5km corridor adjacent to the Hang Glider Hill fault
  • Lucky Strike ~1.5km of the 3.8km BIF trend which includes the 79,600oz Lucky Strike deposit was tested. New drilling confirmed highly oxidised BIF over 700m of strike with gold anomalies.
  • Havelock - intersected 5m @ 1.2g/t Au from 50m, highlighting the potential for more discoveries along this and the parallel Erinmore trend which together have a total BIF strike length of 12.9km
• Five new strong surface gold anomalies identified near the Hang Glider Hill prospect from a 3120-sample point auger geochemical program that evaluated 17 kilometres of strike extending between Hang Glider Hill and Lucky Strike
• At the Western Lefroy JV with Gold Fields, results from ten RC holes from a 21-hole 4507m program continue to reinforce and advance understanding of the geological prospectivity beneath Lake Lefroy. Significant results include:

1. 9m @ 3.58g/t Au from 96m in SAL1764 including 1m @ 18.55g/t Au from 97m

1. 3m @ 3.25g/t Au from 82m in SAL1777 including 1m @ 7.88g/t Au from 82m

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ASX Announcement 29 October 2020

ASX Announcement

29 October 2020

INTRODUCTION

The Board of Lefroy Exploration Limited (ASX: LEX) ("Lefroy" or "the Company") is pleased to provide its report on exploration activities and progress made during the September 2020 Quarter. Lefroy is a gold focused exploration company taking a systematic generative exploration approach at its flagship Lefroy Gold Project (Lefroy Project or LGP) to discover high-value gold deposits.

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 621km2 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). Four gold processing operations are strategically located within 50km of the project and provide commercial options for processing any gold resources discovered.

The LGP is referenced in two packages i.e.

• Eastern Lefroy covering 249km2 of wholly owned tenements (Figure 1) including Lucky Strike, Red Dale, Hang Glider Hill, Havelock, and other sub-projects along the regional scale Mt Monger fault, and
• Western Lefroy JV (WLJV) tenements (Figure 1) covering 372km2 adjoining the Gold Fields tenements that make up the St Ives mining operation. These tenements are included in the Joint Venture agreement with Gold Fields. 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, 7June 2018.

The key focus of exploration by the Company in Eastern Lefroy during the quarter was at the Lucky Strike and Hang Glider exploration hubs located within the Non-JV Eastern Lefroy sub project (Figure 1).

This involved a 279-hole aircore (AC) drill program for a total of 12,436m completed by the Company in June/July 2020. The program evaluated five early stage and conceptual targets at the Lucky Strike and Hang Glider Hill exploration hubs. This was the first +10,000m aircore drilling campaign for over 18 months by the Company. Complementing this campaign was an auger drilling program covering the entire 17km of strike between Lucky Strike and Hang Glider Hill (LEX ASX release 3 August 2020). These generative early stage geochemical exploration programs are designed to highlight gold anomalies for follow up RC drill testing and fill the discovery pipeline.

In July 2020, Gold Fields commenced a 9000m reverse circulation (RC) drill program to evaluate five key targets generated in Lake Lefroy on the Western Lefroy JV (refer LEX ASX release 27 July 2020). During the September 2020 Quarter, 21 drill holes were completed totaling 4507m. A diamond drill rig was mobilised in September to support the program and remains ongoing.

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ASX Announcement 29 October 2020

ASX Announcement

29 October 2020

Figure 1 Lefroy Gold Project showing Eastern and Western Lefroy and the location of Lucky Strike, Hang Glider Hill and the recently acquired Burns gold copper prospect.

EXPLORATION ACTIVITIES

Eastern Lefroy Gold Project (LEX 100%)

The Eastern Lefroy project is a semi contiguous package of wholly owned tenements that cover approximately 30km 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 a likely a primary control to gold mineralisation. The Company considers the Mt Monger Fault to be similarly prospective for large gold deposits, but 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- Lucky Strike Exploration Hub: - Advanced Exploration

P2-Hang Glider Hill Exploration Hub: -Reconnaissance Exploration

P3-Lake Randall Exploration Hub: -Generative Exploration

During the September 2020 Quarter the Company refocused its activities to evaluate multiple early stage generative targets at both the priority Lucky Strike and Hang Glider Hill hubs with AC drilling. This was complimented by a large auger drill program.

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ASX Announcement 29 October 2020

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29 October 2020

Lucky Strike Exploration Hub

The Lucky Strike Exploration Hub is centered on the Lucky Strike deposit (refer LEX ASX release 20 May 2020) and envelopes the nearby gold prospects identified by the Company at Red Dale, Havelock, Neon and the Lucky Strike trend (Figure 2). The Hub is a continued priority target area for drill-based exploration on existing and generative gold prospects located within the Eastern Lefroy project. Gold mineralisation at Lucky Strike is hosted within multiple north west trending Banded Iron Formation (BIF) units interbedded with shale. Lucky Strike is hosted within a gold mineralised trend over a 3800m strike length, defined from AC drilling (Figure 2)

Figure 2 Inset Map - Lucky Strike exploration hub showing the multiple interpreted BIF trends (blue shade) and prospects on greyscale regional aeromagnetic imagery and max Au ppm in drill holes.

Lucky Strike

An AC drill program evaluated generative targets at Lucky Strike, Havelock, Salt Creek West and Red Dale West, which totaled 150 holes for 7723m in July 2020. The key focus was Lucky Strike where a further 700m of the BIF trend was tested, immediately along strike of the Lucky Strike resource (Figure 3). The close spaced drill program aimed to target the deeply oxidised meta- sedimentary package in search of the BIF which is the primary host for gold mineralisation at the Lucky Strike deposit.

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ASX Announcement 29 October 2020