Prodigy Gold NL : Buccaneer Gold Project Update

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ASXANNOUNCEMENT/MEDIARELEASE

ASX: PRX

11 February 2022

Buccaneer Gold Project Update

KEY POINTS

• Scoping study to evaluate a potential low-cost, heap leach processing scenario for the Buccaneer Resource continues to advance
• Metallurgical testwork including column leach test work for Buccaneer has commenced and results are expected in the coming months
• Assays for additional samples from previously reported Buccaneer diamond holes include: o 1.0m @ 5.1g/t Au from 26.0m - BCDD2104 and
  o 11.9m interval from 33.6m with 9.8m @ 2.1g/t Au recovered - BCDD2105
• The results from BCDD2105 comprise broader, previously reported (ASX: 17 December 2021), intervals of:

1. 0.65m @ 22.1g/t Au from 33.6m and

• 1. 0.85m @ 3.5g/t Au from 36.5m
• These results are in addition to recently reported results which included:
• 1. 13.35m @ 3.9g/t Au from 79.7m including 3.3m @ 13.5g/t Au from 79.7m - BCDD2104 (ASX: 29 November 2021) and

• 1. 12.6m @ 1.1g/t Au from 226m - BCDD2102 (ASX: 17 December 2021)
• The updated results show relatively narrow zones of mineralised quartz veins grading over 3.5g/t Au that are enveloped by wide zones of lower grade mineralisation
• The delineation of both the narrow higher grade zones and the lower grade envelopes will provide optionality for future mine design and planning

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Prodigy Gold NL (ASX: PRX) ("Prodigy Gold" or the "Company") is pleased to announce an update on activities underway on its wholly owned Buccaneer Gold Project in the Northern Territory.

Additional assay results have been returned for three previously reported diamond holes drilled to provide composite material for ongoing metallurgical studies.

The results released in this announcement relate to additional oxide material for previously reported holes BCDD21021, BCDD21042 and BCDD21053, with assays results recently received.

Management Commentary

Prodigy Gold Executive Director, Brett Smith said: "The Company is advancing mining studies on the Buccaneer Mineral Resource. The diamond drilling program completed at the end of 2021 was aimed at improving confidence in the current resource.

The additional results further support the indicator resource model with mineralisation intersected where predicted. Metallurgical testwork is now underway. This includes crush size recovery testwork, followed by column leach testwork to simulate the gold extraction performance of the run-of-mine material that could be stacked on a heap leach pad.

The additional assay results include a 11.9m wide interval in BCDD2105 from 33.6m with 9.8m @ 2.1g/t Au recovered. The updated results include two previously reported intercepts over 3.5g/t (0.65m @ 22.1g/t from 33.6m and 0.85m @ 3.5g/t from 36.5m3.

The occurrence of lower grade mineralisation enveloping higher grade mineralised veins is thought to be typical for this deposit. This will give future mine design and plans a wider range of options.

The 2.3km long monzogranite host rock at Buccaneer is a key control of the gold mineralisation. The majority of drilling is focussed in the southern 500 to 700 metres, with good potential for additions to the resource to the north where drill spacing increases or the monzogranite remains undrilled."

Metallurgical Diamond Drilling

An 8-hole program of geotechnical and metallurgical diamond drilling was completed at the end of 2021 and aimed at providing samples for metallurgical recovery testwork to optimise the crush size for heap leach extraction of the gold.

The program also aimed to provide core to allow the Company geologists to generate a predictive model of high grade structures within the thicker mineralised intervals.

Most of the results of this drilling program have been announced on 17 December 2021 - Exceptional Results in Buccaneer Diamond Drilling and 29 November 2021 - Progress Results for Buccaneer Diamond Drilling. The results presented in this release are an update for holes BCDD2102, BCDD2104 and BCDD2105, from which additional samples were collected for assaying (Appendices 1 and 2 and Figures 1, 2 and 3) and subsequent metallurgical testwork.

Metallurgical recovery testwork has commenced and includes testing economic recoveries, leach times and crushing work indices for three categories of rock, oxide transition and fresh rock and different crush sizes in intermittent bottle roll (IBR) tests and column leach tests.

1. ASX: 17 December 2021
2. ASX: 29 November 2021
3. ASX: 17 December 2021

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Figure 1 - Southwest-northeast cross section through recent metallurgical holes showing new gold results reported in this announcement only (Appendix 1).

Buccaneer Project - Background

The Buccaneer Mineral Resource is currently estimated to be 10Mt @ 1.8g/t Au for 585koz above a 1g/t cut-off grade4 (Appendix 3). The resource cut-off grade is based on processing at a mill the scale of Northern Star/Tanami Gold's Central Tanami Joint Venture Project Processing Plant or a similar mill built on the Twin Bonanza Mineral Lease.

Gold mineralisation is disseminated within a monzogranite intrusion, and typically associated with quartz veins with visible gold often observed in the quartz stockwork veining. Mineralisation extends from near surface to a depth of over 500m and has been defined in several zones over an area of 2,300m by 800m (Figure 3). Mineralisation is often up to 150m thick with intervals of 20-40m wide at 1 to 5g/t Au5. The deposit remains open at depth, and aircore and RAB drilling suggest the potential for further strike extensions.

The project is well advanced featuring:

• Granted mineral lease
• Over 300 RC and diamond drillholes
• Exploration and mining agreement with the Traditional Owners administered by the Central Land Council
• Heritage, flora and fauna baseline surveys
• Accommodation camp and workshops
• Water bores with marginal to fresh water
• Airstrip
• Haul road access nearby to the Tanami Road
• 220kl of fuel storage

1. ASX: 1 September 2017
2. ASX: 20 May 2021

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Studies undertaken over the last year have evaluated a heap leach processing scenario for the Buccaneer Deposit. When the type of mineralisation is appropriate, heap leaching is a simple, low- cost process that can result in significant savings in capital expenditure and operating cost, which can significantly improve a project's economics. Deep weathering in the Tanami results in softer weathered rocks, and sulphide is often completely oxidised up to 100m below surface.

Figure 2 - Buccaneer Prospect collar map showing new gold results reported in this announcement only. See the appendices for details.

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Figure 3 - Highlighted recent and previous drill intercepts (max Au) along the Buccaneer Monzogranite6

6 ASX: 6 October 2021, 29 November 2021 and 17 December 2021

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