Gascoyne Resources : Exploration at Dalgaranga Delivers Outstanding Results

For personal use only

ASX ANNOUNCEMENT

22 March 2022

NEAR-MINE EXPLORATION AT DALGARANGA DELIVERS OUTSTANDING NEW RESULTS ON MULTIPLE FRONTS

Follow-up drilling further expands footprint of Gilbey's North discovery, more high-grade hits outside the Plymouth Resource and Lindville target lights up 8km from the plant

Highlights:

• Close-spacedfollow-up drilling at Gilbey's North, immediately north of the main operating pit at Dalgaranga, has delivered another series of shallow high-grade gold intercepts from multiple drill-holes including:

1. 9m @ 1.28g/t from surface and 29m @ 1.81g/t from 16m, including 18m @ 2.52g/t (DGRC0794)

• 1. 38m @ 2.46g/t from 11m, including 20m @ 4.0g/t (DGRC0795)
  1. 5m @ 1.58g/t from 2m and 7m @ 1.87g/t from 25m (DGRC0796)
  1. 5m @ 3.38g/t from 2m, including 2m @ 7.63g/t and,
  1. 17m @ 2.9g/t from 10m, including 5m @ 4.63g/t and 4m @ 4.58g/t and,
  1. 5m @ 2.72g/t from 34m and 1m @ 10,3g/t from 50m (DGRC0797)
  1. 3m @ 1.21g/t from 2m, 1m @ 4.34g/t from 22m, 11m @ 1.02g/t from 28m and,
  1. 24m @ 3.81g/t from 102m including 9m @ 8.41g/t and 10m @ 1.49g/t (DGRC0813)
  1. 5m @ 1.61g/t from 2m (DGRC0814)
• Further drill testing to evaluate the extent of gold mineralisation at the active Plymouth Open Pit has returned additional assays outside the current Resource envelope including:
• 1. 4m @ 5.59g/t from 56m (DGRC0780)

• 1. 7m @ 2.61g/t from 87m, including 4m @ 4.08g/t (DGRC0810)
• A new JORC 2012 compliant Mineral Resource Estimate (MRE) is underway for the active Plymouth open pit encompassing recent drilling success. Maiden JORC 2012 MRE for the Archie Rose prospect nearing completion and due for release in the coming weeks.
• Drilling of the Lindville gold prospect (8km north-east of the Dalgaranga processing plant) has returned encouraging near-surface assays including:
• 1. 10m @ 1.55g/t from 45m, including 5m @ 2.33g/t (DGRC0734)
• A recent detailed review of the active Gilbey's mine environment has also identified a large number of targets within the existing mine approval footprint, including an extensive area along the entire eastern (footwall) of the Gilbey's Open Pit. An aggressive drill-out using multiple rigs is set to commence in coming weeks. (refer Figure 5).

* Refer ASX announcements 8, 17, 24 and 28 February 2022 for details on relevant drill-holes.

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

For personal use only

Gascoyne Resources Managing Director and CEO, Mr Simon Lawson, said: "Gilbey's North is shaping up as a real game-changerfor the Company. These latest results demonstrate the continuity of consistent, thick zones of high-gradegold mineralisation both along strike and at depth - an outstanding result.

"Our smaller capacity rig has been very busy systematically punching close-spaced 54m deep holes around the highest grade, thickest shallow mineralisation at Gilbey's North. These close-spaced holes will give us confidence in preparations for an initial Mineral Resource Estimate and potential mining scenarios.

"An RC rig will return on 1st April and resume rapid drill-out of targeted extensions to Gilbey's North to the north and west and give us further confidence that existing lodes seen in the shorter drill-holes extend to depth. This rig will stay tasked with the Gilbey's North area and beyond for at least three months.

"Moving to the north-west we appear to be moving into an area that was previously targeted by wide- spaced drilling and more specifically into an area of around 200m x 200m with not one drill-hole in it. This is really exciting because our geophysical surveys show the structural demagnetised zone that hosts the entire Gilbey's deposit and Gilbey's North prospect also extends into this area.

"In addition to the geophysical support, a review of previous activities shows previous drilling hit the same 'double-shale' stratigraphy seen at Gilbey's and Gilbey's North, as well as some very interesting gold grades over 1,000m north-west at the previously un-named Roku prospect. We are looking forward to providing further updates on this developing story in the coming weeks and months.

"Following a meeting with the entire geology team on site last week, we have also identified a number of areas in the footwall of the Gilbey's open pit, including an area called the Gilbey's eastern cutback and another area to the north that have been mined historically at very high grades. There has been very little drilling in these footwall areas to follow up and potentially extend the pit in these areas as access has been restricted due to infrastructure being situated on the footwall as mining focussed on the main Gilbey's Main Zone.

"We have selected a mobile carrier diamond drill rig, typically seen in underground operations, to drill the footwall targets from inside the pit at Gilbey's. This type of rig has a very small footprint, can reposition itself independently and quickly and can also drill the angles we need. A third RC drill rig will also be mobilised to drill the footwall targets from along the eastern pit haul road. The potential outcome from drilling of the Gilbey's footwall area could be as significant as a large-scale eastern wall cutback with a substantial extension to the life of mine plan at Dalgaranga. We want to quickly assess this potential and we are moving aggressively to make it happen.

"In parallel to our strong exploration success, we are maintaining firm focus on producing safe and consistent profitable ounces. On the back of strong production in January, February and into March, this quarter is shaping up to be possibly one of the best on record for the Company.

"We continue to focus on costs and minimising debt, and we will see further benefit to our balance sheet as we move to unlock some of the unrealised value in our non-Murchison assets in the coming weeks. It really feels like the Company has turned a major corner in the last few months and we intend to continue to work hard to deliver meaningful outcomes for our shareholders."

Further to its announcement of 28 February 2022, Gascoyne Resources Limited ("Gascoyne" or "Company") (ASX: GCY) is pleased to advise that its near-mine exploration strategy at the 100%-ownedDalgaranga Gold Project in Western Australia is continuing to gather momentum, with significant new results received across multiple existing and emerging prospects.

The Company has received further spectacular assay results from the significant zone of gold mineralisation discovered immediately north of the Gilbey's open pit, the main ore source, along with further high-grade results outside the current Mineral Resource envelope at the active Plymouth Open Pit and exciting first-pass results from the Lindville prospect, 8km north of the Dalgaranga plant.

Page 2 of 19

For personal use only

Figure 1: Cross-section of Gilbey's North prospect with new results from DGRC0794 and 0797 (yellow).

Figure 2: Cross-section of Gilbey's North prospect with new results from DGRC0795 (yellow).

Page 3 of 19

For personal use only

Figure 3: Cross-section of Gilbey's North prospect with new results from DGRC0796, 0798 and 0813 (yellow).

Gilbey's North - Significant Near-Mine Gold Discovery

The Gilbey's North target is located less than 1km west of the +2.5Mtpa Dalgaranga processing plant.

Since its discovery, a very high percentage of follow-updrill-holes have intersected significant gold mineralisation (see ASX announcements, 8, 17, 24 and 28th February 2022) with the Company well underway with follow-up RC drilling in preparation for a maiden Mineral Resource Estimate (MRE).

Page 4 of 19

For personal use only

Figure 4: Gilbey's North gold prospect plan showing location of drill-holes.

Page 5 of 19