Gascoyne Resources : New Gold Discovery at Dalgaranga Continues to Grow

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ASX ANNOUNCEMENT

17 February 2022

GOLD DISCOVERY IMMEDIATELY NORTH OF GILBEY'S PIT AT

DALGARANGA CONTINUES TO GROW

Latest drilling extends mineralisation to the north, with strong widths and grades

highlighting potential to grow resources, reserves and mine life

Highlights:

• Recently announced discovery north of the main Gilbey's Open Pit continues to grow in width and extent (see ASX announcement made on 8 February 2022).
• A further 11 Reverse Circulation (RC) drill-holes have intersected mineralisation from 15m below surface across zones up to 17m wide and down to 108m below surface, within a structural corridor directly along-strike from the operating Gilbey's Pit.
• Some of the better intercepts (7 of the 11 RC holes reported in this update) include:

• 1. 14m @ 1.0g/t Au from 76m (DGRC0741) o 5m @ 1.7g/t Au from 103m (DGRC0742) o 7m @ 1.1g/t Au from 81m (DGRC0743)
     o 17m @ 3.5g/t Au from 22m, including 10m @ 5.3g/t Au (DGRC0759) o 10m @ 2.7g/t Au from 16m (DGRC0761)
     o 10m @ 0.6g/t Au from 29m, including 3m @ 1.2g/t Au (DGRC0762) o 2m @ 1.0g/t Au from 15m (DGRC0765)
• The closest intercept returned so far is just 50m north-west of the current mining front at the Gilbey's Pit. This intercept is from a thin, steeply-dipping upper hanging-wall zone with current drilling targeting thicker footwall zones further west (assays pending).
• The steeply-dipping, stacked nature of the mineralised units is very similar to the mineralised package seen throughout the main Gilbey's ore body, with true widths of individual units varying from metres to tens of metres across.
• Drilling is planned to commence in February on an upper bench of the northern extent of the Gilbey's Open Pit high wall to potentially link the mineralisation seen at Gilbey's North.

Gascoyne Resources Managing Director and CEO, Mr Simon Lawson, said: "Our on-sitegeology team continues to deliver consistent drilling results less than one kilometre from the processing facility at Dalgaranga. Importantly, the latest drilling results from Gilbey's North continue to highlight the similarities with the mineralisation styles seen in the main Gilbey's Open Pit and, with the closest assay result received so far less than 50m from the pit crest, we are growing increasingly confident of the near-termpotential to increase resources, reserves and mine life at Dalgaranga.

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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"The recent addition of a second dedicated RC drill-rig at Gilbey's North will help us to accelerate the drill- out of what appears to be an important resource extension area in close-proximity to existing mining operations and infrastructure.

"These great results are a real credit to our small but highly motivated geology team on site, and the entire Gascoyne team is backing them in to support this emerging discovery and the potentially significant outcomes it could deliver. In parallel, our mining and processing team is firmly focused on maintaining consistent production after setting a new Company record of 7,900 ounces produced in January."

Further to its announcement of 8 February 2022, Gascoyne Resources Limited ("Gascoyne" or "Company") (ASX: GCY) is pleased to report further highly encouraging drilling results from the significant zone of gold mineralisation discovered immediately north of the Gilbey's open pit, the main ore source at its 100%-ownedDalgaranga Gold Project in Western Australia.

The new zone, known as Gilbey's North, has been outlined in shallow RC drilling immediately north of the Gilbey's pit (see Figure 1). The mineralisation commences from shallow depths (just 1m) and has so far been defined over a strike length of more than 300m, to a depth of almost 200m and over down-hole widths of up to 20m.

The latest drilling results support and build on the ASX announcement of 8 February ("Near-Mine Exploration Delivers Breakthrough with Discovery Immediately North of the Gilbey's Pit"), increasing the Company's confidence in the strategic importance of this new discovery and its potential to increase resources, reserves and mine life at Dalgaranga.

The location of current RC drilling immediately north of the Gilbey's pit is shown in Figure 1 below.

Figure 1: RC drilling currently in progress on the haul road running along the pit crest of the Gilbey's Pit (view north).

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Gilbey's North - Significant New Near-Mine Discovery

The Gilbey's North target is located less than 1km west of the +2.5Mtpa Dalgaranga processing plant. A total of 21 RC holes were drilled initially with 17 intersecting significant mineralisation (see ASX announcement, 8 February 2022), prompting the Company to commence a 5,000m follow-up RC program.

Assays have now been received for a further 11 RC holes, with nine holes delivering significant intercepts (>0.5g/t gold) as outlined in this announcement. The drilling continues to return highly encouraging intercepts, all located outside the current Mineral Resource and Ore Reserve:

1. 14m @ 1.0g/t from 76m (DGRC0741) o 5m @ 1.7g/t from 103m (DGRC0742) o 7m @ 1.1g/t from 81m (DGRC0743)
   o 4m @ 0.8g/t from surface and 5m @ 0.7g/t from 101m (DGRC0744) o 17m @ 3.5g/t from 22m, including 10m @ 5.3g/t (DGRC0759)
   o 10m @ 2.7g/t from 16m (DGRC0761)
   o 10m @ 0.6g/t from 29m, including 3m @ 1.2g/t (DGRC0762) o 1m @ 1.0g/t from 30m (DGRC0763)
   o 2m @ 1.0g/t from 15m (DGRC0765)

Figure 2: Gilbey's North gold prospect cross-section 4920mN (section A to A')

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Figure 3: Gilbey's North gold prospect cross-section 4772.5mN (section B to B')

Next Steps

Additional drill metres will be allocated on a results basis with the following stages of drilling defined in a staged approach across both RC rigs;

1. Drill extensions to the south of Gilbey's North to assess the potential "link" to the main Gilbey's mineralisation.
2. In-filldrill known mineralisation in preparation for an initial maiden JORC resource down to a nominal 25m x 25m spacing and ~150m depth.
3. In-filldrill known mineralisation at a nominal 12.5m x 12.5m "Grade Control" spacing down to ~50m depth in preparation for potential mining of oxide mineralisation.
4. Drill extensions to the north of Gilbey's North to assess further shallow mineralisation along-strike less than 1km from the processing plant.

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