Gascoyne Resources : Acceleration of Strategy to Unlock Higher Grade Ore Sources

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ASX ANNOUNCEMENT

20 December 2021

GASCOYNE ACCELERATES STRATEGY TO UNLOCK NEW HIGHER-GRADENEAR-MINE ORE SOURCES AT DALGARANGA

Strong drilling results across several near-mine and regional prospects

Highlights:

• Rejuvenated near-mine exploration strategy at Dalgaranga delivering encouraging results.
• Strategy aimed at identifying and unlocking potential new sources of higher-grade ore feed within a 5km radius of the state-of-the-art >2.5Mtpa Dalgaranga Mill.
• In conjunction with the optimised mine plan developed under new CEO Simon Lawson, this strategy is aimed at delivering a consistent +1g/t head grade in 2022.
• Key new drilling results at Dalgaranga all outside of current mine plans:

Plymouth - 2km from plant (currently being mined)

• 9m @ 2.0 g/t Au from 125m in DGRC0685
• 12m @ 2.2 g/t Au from 99m in DGRC0686
• 9m @ 3.4 g/t Au from 75m in DGRC0689
• 15m @ 1.5 g/t Au from 96m in DGRC0700

Hendricks - 3km from plant (targeting maiden Resource in early 2022)

• 1m @ 12.7 g/t Au from 24m in DGRC0690
• 5m @ 1.5 g/t Au from 47m in DGRC0692
• 8m @ 1.2 g/t Au from 54m in DGRC0693
• 5m @ 8.3 g/t Au from 80m in DGRC0694
• 15m @ 1.1 g/t Au from 51m in DGRC0695

Sly Fox - immediately adjacent to plant

•  In-fill diamond drilling underway targeting underground potential.

• New drilling results and recent developments at the Yalgoo Project, 60km west of Dalgaranga:

Crescent - (targeting maiden Resource in early 2022)

• 6m @ 5.1 g/t Au from 56m in FCRC0008
• 11m @ 1.9 g/t Au from 43m in FCRC0005

Melville Deposit

• Permitting continuing with heritage surveys underway on-site.
• Development activities advancing including metallurgical testwork, surface hydrological studies, waste rock characterisation studies and geotechnical review.

Gascoyne Resources ABN 57 139 522 900	Level 1, 41-47 Colin Street, West Perth, Western Australia 6005
PO Box 1449 West Perth WA 6872	P: [phone] E:[e-mail]
	W:gascoyneresources.com.au

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Gascoyne Resources Managing Director and CEO, Mr Simon Lawson commented: "These exciting near- mine exploration results are a clear indication of what we believe to be significant unrealised potential in the immediate near-mineenvironment around our low-cost>2.5Mtpa processing facility at Dalgaranga.

"We have been undertaking focused near-mine exploration programs as one key element of a multi- pronged strategy aimed at delivering higher grade mill feed to the Dalgaranga Mill, growing our Resource inventory and strengthening our growth pipeline.

"The significant results reported today demonstrate the opportunity to establish new potential ore sources within a 5km radius of the Dalgaranga Mill. At Plymouth, located just 2km from the plant, we have intersected significant mineralisation directly below where we are currently mining and outside the current mine plan. At Hendricks, 3km from the plant, we are working towards the delivery of a maiden JORC Resource early next year.

"And at Sly Fox, immediately adjacent to the plant, we have commenced in-fill diamond drilling targeting potential deeper mineralisation that could underpin a future underground operation. Previous drilling has shown that that the high-grade Sly Fox deposit remains open at depth below the old open pit mine. We look forward to the results from this program in the March quarter of 2022.

"Meanwhile, initial results including near-surfacehigh-grade intercepts from the Crescent deposit at Yalgoo also give us great cause for optimism that we will be able to deliver another JORC Mineral Resource for the Yalgoo Project in the early part of 2022."

Gascoyne Resources Limited ("Gascoyne" or "Company") (ASX: GCY) is pleased to report highly encouraging initial results from recent exploration programs being undertaken at the Company's 100%-

owned Dalgaranga and Yalgoo Gold Projects in Western Australia.

These programs form part of an increased focus on strategic and rejuvenated exploration activity aimed at identifying and rapidly delineating higher-grade sources of ore feed in the immediate near-mine environment at Dalgaranga (within 5km of the 2.5Mtpa Dalgaranga Mill), while at the same time strengthening the Company's longer term growth pipeline.

Exploration, permitting and pre-development activities are continuing at the Yalgoo Project, located 60km west of Dalgaranga, in order to establish a second strategic mining centre that will supplement the Dalgaranga Operation.

Near-Mine Exploration - Dalgaranga

At Dalgaranga, the Company's exploration team has prioritised a number of areas within a 5km radius of the plant where it believes there is an opportunity either to extend existing deposits or identify new higher- grade resources which could be fast-tracked towards development.

Plymouth

Resource extension drilling has been completed at Plymouth, located less than 2km from the Dalgaranga process plant with eight RC holes drilled for 933m of drilling.

Several significant intersections were returned below the current resource and active mining areas in the Plymouth pit. Better results include:

• 9m @ 2.0 g/t Au from 125m in DGRC0685
• 12m @ 2.2 g/t Au from 99m including 5m @ 3.9 g/t in DGRC0686
• 9m @ 3.4 g/t Au from 75m in DGRC0689, and
• 15m @ 1.5 g/t Au from 96m in DGRC0700 (see Figures 1 and 2).

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Hendricks

At Hendricks, located 1.5km east of the Dalgaranga processing plant on tenement E59/1709 (80% Gascoyne interest), 11 holes have been completed totalling 985m of drilling as as part of a program of in-fill drilling targeting 25m spaced infill lines to better define shallow oxide mineralisation at the prospect. Better results returned include:

• 8m @ 1.2 g/t Au from 54m in DGRC0693
• 5m @ 8.3 g/t Au from 80m in DGRC0694
• 15m @ 1.1 g/t Au from 51m, and
• 1m @ 12.7 g/t Au from 24m in DGRC0690.

Mineralisation at Hendricks is interpreted to be contained within 60-70 degree steeply west dipping quartz-pyrite altered veins hosted in sheared basalt with shallower mineralisation occurring in overlying near surface laterite sequences. The Hendricks prospect is located in an east-west trending 'axial - planar' fold hinge position within the regional antiform structure that hosts the Gilbey's, Plymouth and Sly Fox deposits at Dalgaranga.

Sly Fox Trend

Five RC holes were completed for 573m targeting further high-grade shoot positions SE from the Sly Fox deposit along a prominent shear/structural zone; encouraging broad altered sheared volcaniclastic and shale zones were intersected; gold mineralisation was intersected in several holes with encouraging results returned, including:

• 4m @ 1.1 g/t Au from 98m in DGRC0705
• 1m @ 2.5 g/t Au from 88m in DGRC0703, and
• 1m @ 1.8 g/t Au from 109m in DGRC0705.

Figure 1: Dalgaranga recent RC drilling locations

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Figure 2: Plymouth cross section showing latest drilling results in DGRC0686

Figure 3: Plymouth - Sly Fox Plan Showing Location of drillholes

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Dalgaranga Regional Exploration

Results from regional air-core drilling targeting the south-western end of the Greencock structural trend have been received - with a number of 'low level' anomalous gold zones intersected along lines of wide spaced (400m) drilling. Results from multi-element bottom of the hole assays from this drilling, once received the on-site geology team will assess whether further work is warranted in this area.

Figure 4: Hendricks cross section showing latest drilling results in DGRC0693 - DGRC0695

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