Sihayo Gold Limited announced this update on the latest drilling results from the Sihorbo South gold-silver target at Hutabargot Julu in the North block of the PT Sorikmas Mining Contract of Work ("CoW") located in North Sumatra Province, Indonesia. Assay results have been received for a further three holes at Sihorbo South (HUTDD118, HUTDD120 and HUTDD121). A summary of best mineralised intercepts is presented in Table 1 and a complete list of significant gold-silver intercepts is presented in Appendix 1. Sihorbo South is an intermediate-sulphidation epithermal gold-silver vein system located in the South-West corner of the large Hutabargot Julu prospect at the southern end of the Sihayo Gold Belt and approximately six km southeast of the proposed Sihayo Starter Project site (Figure 1).

It was previously identified by the occurrence of a 1930's Dutch adit that has no recorded gold production. Follow-up mapping and scout drilling conducted by the Company in 2012-13 returned encouraging historic gold-silver intercepts including 3.70 m at 15.45 g/t Au & 23 g/t Ag from 55.40 m in HUTDD040 and 16.80 m at 1.43 g/t Au & 237 g/t Ag from 46.95 m in HUTDD045. Sihorbo South is a silver-rich vein system that has returned significant silver-gold intercepts and shows potential for bonanza-grade ore shoots.

Additional details of the historic drilling and significant results obtained at Sihorbo South are summarised in Appendix 1 (2012 JORC Table 1 - Section 2). The recent phase of drilling at Sihorbo South commenced in September 2021. A total 2,321 metres in 17 holes was completed from the start of the program and up to the end of 2021.

Assay results were received and previously reported for these holes. These included significantly mineralised intercepts summarised in Table 2. The results from the 2021 program confirmed that the Sihorbo South vein system extends well below existing artisanal mine workings and that significant grades and potential tonnage remain in the subsurface. Assay results have been received for holes HUTDD118, HUTDD120 and HUTDD121 with a summary of best mineralised intercepts is presented in Table 1 and full details in Appendix 1. Long sections are presented in Figures 4-5 and drill sections are presented in Figures 6-8. HUTDD119 was not sampled because it was abandoned due to ground conditions.

Results for the next three holes (HUTDD122 to HUTDD124) are expected by early April. Drilling completed to-date has defined a +50 m wide zone of altered volcanic rocks hosting polyphasal gold-silver-sulphide mineralised quartz-chalcedony-adularia-manganocarbonate sheeted veins and associated stockworks that has been tested over approximately 400 m strike length and down to approximately 100 - 150 m depth. Individual veins vary in thickness from less than 1-cm and up to several metres and these follow an irregular and anastomosing pattern in multiple sub-zones within the broader defined vein-alteration zone.

There are locally significant variations in gold and silver grades and mineralised widths, which is typical of epithermal vein systems. The reasons for these variations are not yet fully understood at Sihorbo South. Overprinting mineralising events within the main vein structure and surrounding stockwork zones, and possibly the influence of cross-structures, are thought to be the most likely reasons for these variations in grade and mineralised widths. Of particular importance is the intersection of narrow zones of high-grade gold and silver mineralisation in several holes from the recent program (refer HUTDD098, HUTD101, HUTDD117 and HUTDD121).

The intersection of higher-grade mineralisation in veins displaying complex polyphasal fill textures indicates that are still drilling within the "boiling column" where processes responsible for high-grade mineralisation have occurred. The current drilling pattern is broadly spaced and relatively shallow with potential remaining to identify coherent zones of higher-grade mineralisation located within ore shoots along the vein system. Additional infill and deeper drilling are being planned for the next phase of work.

The Sihorbo South vein target is largely untested beneath and surrounding the active artisanal mining workings, and appears to be open along strike potentially below cover rocks. Another two to three holes are planned at the southern end of the vein system in the current program. These are expected to be completed in early April with results available during April.

geologists will continue with mapping and surveying the distribution and depth of these local mine workings to better understand their extent and estimate the volume of material removed in the subsurface. Information obtained to-date indicates that the historical mining was highly selective with large amounts of the top of the vein remaining. The workings are believed to be generally shallow (less than 50 m deep) and are more focused on extracting softer, strongly oxidised vein material.

The drilling crew will move to Sihayo to commence a 4-hole 1000 metre drilling program testing for additional high-grade gold-jasperoid mineralisation located in the deeper segments of the Sihayo gold resource and which are open toward a potential higher grade feeder zone on its deeper eastern edge. This drilling is planned to commence in April and completed by June when drilling will resume on Sihorbo South. Resource modelling has commenced targeting a maiden Mineral Resource estimate by early next quarter which will be assessed at a concept study level for incorporation into the Sihayo Starter Project.