Reach Resources : Maiden Resource at Blue Heaven - Primrose Gold Project

For personal use only

6 December 2021

MAIDEN INFERRED RESOURCE

BLUE HEAVEN PROSPECT

PRIMROSE GOLD PROJECT

Highlights

• Total Inferred Mineral Resource of approximately 1.035 Mt @ 3.2g/t Au for 105,000oz Au (1.0g/t cut off) at the Blue Heaven Prospect
• Includes a higher-grade component of approximately 0.582 Mt @ 4.7g/t Au for 87,000oz Au (1.5g/t cut off)
• Primrose Gold Project comprises the Company's Blue Heaven and Pansy Pit Prospects. Inferred Mineral Resource based solely on Blue Heaven
• Significant potential upside exists via further drilling at the Pansy Pit Prospect
• Mineral Resource restricted to 100m depth below surface due to insufficient detailed drilling at depth of the nuggetty natured mineralization
• Preliminary desktop optimisation studies indicate strong potential for economic extraction of the majority of the mineral resource - approximately 784,000 tonnes at 3.6g/t Au for 92,000 ounces
• Company can now pursue the monetisation of the Blue Heaven Resource
• Further drilling required to further evaluate targets located down dip and along strike of untested historical workings (Exploration Target) and high-grade mineralisation down dip and plunge of the Mineral Resource below a depth of 100m below surface.

Reach Resources Limited (ASX: RR1) ("Reach" or "the Company") is pleased to announce its Maiden Mineral Resource estimate reported in compliance with JORC (2012), for the Blue Heaven Prospect within the Primrose Gold Project, located approximately 420 km northeast of Perth, Western Australia ("Project").

Reach Resources Limited | Level 4, 216 St Georges Terrace, Perth WA 6000 | P: [phone]| web:reachresources.com.au

Email: [e-mail] | ABN 79 097 982 235 | ASX:RR1

For personal use only

Resource Estimation

A Mineral Resource estimate has been developed at the Blue Heaven Prospect within the Company's Primrose Gold Project. The estimation was completed by Philip A. Jones as a Competent Person based on data provided by the Company.

A total Inferred Resource of approximately 1.035 Mt @ 3.2g/t Au for 105,000oz has been estimated for the Blue Heaven Prospect, within the Company's Primrose Gold Project above a nominal 1.0g/t Au cut-off grade. Using a cut-off of 1.5g/t this Inferred Resource is approximately 0.582 Mt @ 4.7g/t Au for 87,000oz Au.

Encouraging exploration upside remains at the Blue Heaven Prospect in the form of an Exploration Target estimated within a range of approximately 0.963 to 1.925 Mt @ 2.0 to 3.2 g/t Au. For any Exploration Target Estimate the potential quantity and grade is conceptual in nature as there has been insufficient exploration to estimate a Mineral Resource and it is uncertain if further exploration will result in the estimation of a Mineral Resource. This Exploration Target estimate takes into consideration all the wireframed lodes below and along strike of historic shafts and stopes exposed at the surface but not intersected by drilling and not included in the Mineral Resource.

Additionally, the Inferred Mineral Resource and exploration target is isolated to drilling completed at the Company's Blue Heaven Prospect alone. Drilling at the Pansy Pit could potentially increase the Company's Resource, providing additional value to shareholders.

Reach Resources Chairman, Robert Downey said: "We are delighted to provide the maiden gold resource to the market for the Blue Heaven Prospect, at our flagship Primrose Gold Project in Western Australia. Converting the Company's previously announced exploration target of approximately 170,000 to 520,000 tonnes @ a grade range of 2.2 to 4.5 g/t Au into an Inferred Mineral Resource of approximately 1.035 Mt @ 3.2g/t Au for 105,000oz is a fantastic result for all of our shareholders. This Resource allows the Company to push ahead and fast track the potential monetisation of Blue Heaven. Additionally, it provides confidence to commence additional drilling at the Company's Pansy Prospect, which lies South of the Blue Heaven Prospect, and together form the Company's Primrose Gold Project. It is certainly an exciting time for the Company and we look forward to 2022".

Table 1 - Paynes Find November 2021 Mineral Resource Estimate

	Cut Off	Tonnage		Au
	(Au g/t)	(Kt)	Au (g/t)	(Koz)
	5.0	62	24.1	48
	4.0	86	18.6	52
	3.0	164	11.4	60
	2.0	340	6.8	74
	1.5	582	4.7	87
	1.0	1,035	3.2	105
	0.5	1,755	2.2	123
	0.0	2,347	1.7	127

NB- Differences in sum totals of tonnages and grades may occur due to rounding

Reach Resources Limited | Level 4, 216 St Georges Terrace, Perth WA 6000 | P: [phone]| web:reachresources.com.au

Email: [e-mail] | ABN 79 097 982 235 | ASX:RR1

For personal use only

Figure 1 - Paynes Find Project Location Plan

Technical Summary

Geology and Geological Interpretation

The Paynes Find district within which the Primrose Gold Project is located, is composed of a small greenstone and gneissic belt surrounded by granite traversed by many small pegmatites and porphyritic dykes, Figure 2.

Reach Resources Limited | Level 4, 216 St Georges Terrace, Perth WA 6000 | P: [phone]| web:reachresources.com.au

Email: [e-mail] | ABN 79 097 982 235 | ASX:RR1

For personal use only

Figure 2 - Local geology.

Reach Resources Limited | Level 4, 216 St Georges Terrace, Perth WA 6000 | P: [phone]| web:reachresources.com.au

Email: [e-mail] | ABN 79 097 982 235 | ASX:RR1

For personal use only

The majority of the historic gold production came from quartz veins splayed off to the northeast from the main north-south striking Primrose Shear within a hornblende-biotite gneiss known as the Paynes Find Gneiss. The Daffodil Shear limits the gneiss to the east. To the west of this gneiss, separated by the Primrose Shear, are mafic rocks that recent drilling by Reach has shown to also carry gold mineralisation.

The hornblende-biotite-quartz gneiss hosting most gold bearing quartz lodes extends a distance of at least 3,000 m. The foliation is very regular and has a strike direction of 330o to 360o (along the principal axis of the unit) and a dip of 60o W to vertical.

The field is traversed by a large number of narrow pegmatites trending north-west. These also occur elsewhere in the greenstone belt but not as plentiful. Some of the pegmatites are wide and long and cut the gold bearing quartz veins.

Some of the gold bearing quartz veins strike for a considerable distance, with the Carnation-Bluebell vein being some 400 m long, while ranging from mere threads up to 3 m wide. The gold is formed in lenticular or elliptical masses of quartz down to depths of up to 100 m, dipping steeply to the west south-west and pitching south as elongated steeply plunging pipes. Quartz is the dominant gangue, with pyrite, some galena and sphalerite with rare siderite and chalcopyrite.

Figure 3 - Schematic representation of mineralised structures.

Drilling Techniques

The area modelled was drilled by successive owners using a variety of methods including RAB, Aircore, Reverse Circulation (RC) and diamond drilling. Many of the underground workings were also surveyed and sampled by Falcon Australia Limited in 1987. All the drilling and mine sampling, along with mapped lode lines, were used to create the wireframes of the lodes, Figure 4, however since sampling of underground mine workings, Aircore and RAB drilling can be unreliable, only the RC and diamond drilling were used to model the grades, totalling 219 holes for 18,820.4 metres.

Reach Resources Limited | Level 4, 216 St Georges Terrace, Perth WA 6000 | P: [phone]| web:reachresources.com.au

Email: [e-mail] | ABN 79 097 982 235 | ASX:RR1