Rox Resources : Quarterly Activities Report - March 2022

ASX RELEASE

20 April 2022

Quarterly Activities Report

For the period ending 31 March 2022

HIGHLIGHTS

• • Youanmi Total Mineral Resource increases 93% to 3.2Moz at 3.6g/t Au

  • o 1.5Moz Au added to the Youanmi Resource in 2022

  • o Post-quarter end 204Koz Au, upgrade to Youanmi Near Surface Resource

• • Successful $4 million placement welcomes key institutional investors to the register

• • Regional Aircore drilling identifies 4km mineralised corridor and new targets

• • Continued exploration success at Youanmi near-mine

• • Diamond, RC and air-core exploration program completed at Mt Fisher, Mt Eureka orogenic gold/VMS project with assays pending

West Australian gold exploration and development company ("Rox" or "the Company") (ASX: RXL), is pleased to present its quarterly activities report for the period ending 31 March 2022.

The March quarter was underpinned by the 1.34Moz Au interim upgrade to the Youanmi Underground Resource, part of the Youanmi gold project near Mt Magnet in WA, a $4 million placement that welcomed key institutional investors to the register and ongoing exploration success at both the near-mine and regional targets within the Youanmi project envelope.

The Resource upgrade represented a 156% increase at the Underground Resource and consolidated all underground drilling results to the end of October 2021. Subsequent to the reporting period, Rox announced a further increase to the Youanmi Near Surface Mineral Resource, with the Near Surface Resource increasing 26% to 1,004Koz Au to bring the total Youanmi Project Mineral Resource to 3.2Moz at 3.6g/t Au.

Following the Youanmi Underground Resource upgrade, Rox executed a $4 million placement of 10 million new shares at 40¢ per share at a 6% discount to the 15-day VWAP. Through the raising, Rox welcomed key new institutional investors to its registry, which is in line with a stated objective of the Company.

ROX RESOURCES LIMITED	1	ASX CODE: RXL
Level 2, 87 Colin Street,
West Perth WA 6005	[e-mail]
[phone]	www.roxresources.com.au

Exploration work at both near-mine and regional targets continued at Youanmi. Near-mine diamond and RC drilling delivered high-grade results, while regional aircore drilling identified a 4km mineralised corridor and new targets for follow-up drilling.

Managing Director Alex Passmore commented: "Our Youanmi Underground Resource upgrade brought us to 3Moz of gold, and the post-quarter end near-surface resource upgrade now has our total resources at 3.2Moz of high-grade gold project located in one of Australia's most prolific gold regions. We have a pathway to production, a strong balance sheet, and a highly successful and active exploration program for both near-mine and regional tenements.

"The technology and techniques used at the historic mine are vastly different to those available today, and the mineral system at Youanmi continues to surprise on the upside.

"Through our successful $4 million placement we welcomed key institutional shareholders to the register. Hawke's Point's continued support on a pro rata basis is testament to the potential for long-term value creation at the Youanmi Gold Project."

Youanmi Gold Project

Rox holds a 70% interest in the OYG Joint Venture and is the manager at the historic Youanmi mining centre. Venus Metals Corporation Limited (ASX:VMC) ("Venus" or "VMC") retains a 30% interest.

The Youanmi Gold Project is located 480km NE of Perth and 400km inland and to the east of Geraldton. The Youanmi Gold Mine, located near the centre of the project tenement package, has historic production of 667,000 ounces of gold grading 5.42g/t from open pit (1987 - 1993) and underground operations. The operation was closed in 1997 when the gold price was approximately $400 per ounce with the last parcel of ore mined underground at 14.6 g/t Au grade.

The Youanmi Project Mineral Resource Estimate of 27.9Mt at 3.6g/t Au for 3.2Moz of gold can be categorised into a near surface portion of 18.0Mt at 1.7 g/t Au for 1.0Moz of gold and the Youanmi underground of 9.9Mt at 6.9 g/t Au for 2.2Moz (refer ASX release dated 20 April 2022).

The underground section of the Youanmi Mineral Resource Estimate was previously labelled "Deeps". In this announcement and all future announcements this terminology has been updated to "Underground".

Resource Upgrade

On 20 January, Rox announced an interim 1.34Moz Au Resource upgrade to the Youanmi Underground Resource incorporating drilling results to the end of October 2021. The upgrade was achieved at a discovery cost of $7 per ounce and represented a 156% increase to the Underground Resource, and an ~80% increase to the Total Project Mineral Resource for Youanmi to ~3Moz Au.

This substantial increase was the result of Rox's methodical and extensive drilling program totalling more than 38,000 metres of targeted infill, extensional and discovery drilling at the Link, Junction and mineralisation-parallel hanging-wall lodes.

A significant increase to an average of 2,900 ounces per vertical metre was achieved between surface and 750m below surface. This reflects mostly lateral resource growth in two aspects. Firstly, to the north including the Link area and secondly with new lodes discovered in the hanging-wall of the previously interpreted lodes.

An increase in total gold of 156% was achieved both in the Indicated and Inferred categories. In the previous Underground Resource upgrade in June 2021, a 4.0 g/t Au cut-off grade was applied which has now been reduced to 3.0 g/t Au based on recent mine planning assumptions. On an equal cut-off grade basis, specifically using a 4.0 g/t Au cut-off, the comparison to June 2021 shows a significant increase in metal of 128%.

Table 1: Summary of Youanmi Mineral Resource January 2022

Subsequent to quarter end, on 20 April 2022, Rox announced a further upgrade to the Youanmi Project Mineral Resource Estimate with the Youanmi Near Surface Resource increasing by 204Koz Au to 1,004Koz Au. All near surface drilling results from 2021 are included in this current resource update. All in exploration costs on a rolling average basis for the project were maintained at an outstanding discovery cost of $7 per ounce.

Table 2: Summary of Youanmi Mineral Resource April 2022

Figure 1: Growth in Youanmi Total Gold ResourcesFigure 2: 3D View of the Youanmi Underground Resource Model and Near Mine Part of Near

Surface Model

Following the substantial upgrade to the Youanmi Mineral Resource Estimate, Rox expects concept level project economics to be very robust and is therefore continuing to rapidly pursue its investigation of development pathways for the Youanmi Gold Project.

Youanmi Near Mine Drilling

During the quarter, Rox continued with its systematic exploration activities at both near-mine and regional targets.

On 22 February, Rox reported high-grade results from drilling targeting near pre-1942 stopes, the Link area and the hanging wall lodes at the Junction area.

High gold grades were intersected down plunge of historical underground workings. Results confirmed the potential of a significant material source and defined an area of high-grade material near to existing underground development. This served to convert the inferred resource to indicated and will likely contribute to early production plans.

Highlights from the drilling included:

• • RXDD031: 3.25m @ 32.22g/t Au from 282m and 4.38m @ 3.65g/t Au from 286.82m;

• • RXDD040: 4m @ 10.91g/t Au from 196m and 2.66m @ 11.6g/t Au from 307.15m;

• • RXDD037: 1.12m @ 48.01g/t Au from 299.78m;

• • RXDD036: 2.09m @ 5.71g/t Au from 281.82m and 3.51m @ 3.54g/t Au from 294.3m; and

• • RXRC418: 3m @ 3.33g/t Au from 273m and 4m @ 4.78g/t Au from 284m.

Drilling was also completed to evaluate the potential to extract the pillars left unmined during pre-1942 mining operations. Results from pillar drilling include:

• • RXDD034: 0.73m @ 38.65g/t Au from 266.6m; and

• • RXDD033: 1.2m @ 5.84g/t Au from 149.6m and 0.35m @ 9.13g/t Au from 154.27m.

These results demonstrated that significant grade remains in-situ in the pillars. Through the application of modern mining techniques, Rox believes the potential exists to extract remnant material in zones that were previously considered not technically feasible.

At the Link Prospect, drilling focussed on growing resource inventory at Youanmi through resource conversion and extensional drilling.

Drilling has defined a zone of high-grade mineralisation more than 200m from the current resource envelope with extensive down-plunge continuity of high-grade ore zones.

Results from an additional infill diamond hole at Link, RXDD028, intersected: 2.7m @ 6.09g/t Au from 206.3m, 3m @ 4.12g/t Au from 309m, 3.24m @ 3.67g/t Au from 323.76m and 3m @ 6.09g/t Au from 348m.

RXDD028 was drilled between previously reported holes (RXDD026: 7.25m @ 15.02g/t Au from 315.8m, RXDD018: 6.8m @ 11.98g/t Au from 264m and RXRC412: 8m @ 6.24g/t Au from 249m) with the aim of achieving indicated resource status in the area.