Thomson Resources : Moving Ahead with Hortons Gold Project

PO Box 956, Crows Nest, NSW 1585

Tel: [phone]

Web: www.thomsonresources.com.au

Thomson moving ahead with

Hortons Gold Project

1 October 2020

Highlights

• Due diligence completed on Hortons gold project near Tenterfield, NSW to Thomson's satisfaction
• Targets for exploration identified after acquisition completed
• Previous historic drilling significant intercepts include:

• 30m at 8.6 g/t Au from 24m depth (Hortons)
• 67m at 3.8 g/t Au from 15m depth (Hortons)
• 44m at 4.3 g/t Au from 46m depth (Hortons)
• 35m at 4.7 g/t Au from 31m depth (Hortons)
• 42m at 3.6 g/t Au from 34m depth (Hortons)
• 36m at 2.0 g/t Au from 6m depth (Hortons)
• 26m at 2.5 g/t Au from 20m depth (Surface Hill)

Acquisition of Hortons Gold Project

Thomson Resources Ltd ("Thomson" or "Company", ASX:TMZ), advises that the Company has completed due diligence on the Hortons gold tenement (EL8927) (see Figure 1) it is acquiring from private company, Syndicate Minerals Pty Ltd ("Syndicate") (see ASX release dated 31 August, 2020) to Thomson's satisfaction. This is the first of the key Conditions Precedent to Thomson's acquisition of the Hortons gold project.

The next steps towards completion of the acquisition will now be proceeded with, including, obtaining Thomson shareholder approval to the issue of the equity consideration - this will be sought at the AGM on 26 October 2020 - and Ministerial approval of the transfer of the tenement to Thomson.

The due diligence review has provided the Company with a better understanding of the potentiality of the project, including the Hortons prospect, and in particular of the other targets.

The Hortons gold tenement is situated 30km of Tenterfield in Northern NSW (Figure 1) and has high potential for Intrusion-Related Gold System ("IRGS") type gold mineralization. The tenement covers 58 sq. km and has several gold anomalies (Figure 2).

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Figure 1 - Location of Hortons Gold project in NSW.

Hortons Gold Project Geology

The geology is dominated by a series of granitic intrusions of Permian to Triassic age, all of which host gold occurrences. The differing granite types represent increasing fractionation of magma pulses as the magma chamber progressively emptied over millions of years. The most fractionated intrusion (hence the granite with the most potential for gold mineralisation) is the Surface Hill granite, which is intruded below and capped by the Montys and Bungalla granites.

Individual gold occurrences occur along a general NW-SE trend, but also appear to be controlled by NE- SW fault zones possibly related to the regional Demon Fault Zone to the west.

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Figure 2 - EL8927 showing surface soil and rock chip anomalies

Hortons Prospect

The Hortons gold mine was developed by T. Horton in 1883 and was worked intermittently until 1938 with a shallow open cut and a shaft to around 10m depth.

The first modern exploration was carried out by the Electrolytic Zinc company (EZ) from 1986 when 10 shallow holes were drilled (HOP series). The best intersection reported was in HOP26 with 14m at 2.3 g/t Au from 3m depth (see Figure 3).

Diamond drilling followed with HOD100-105 drilled by EZ, HOD106-110 by Saracen Minerals and HOD111- 112 by Homestake Australia Ltd (Homestake). In 1992 Homestake switched to RC drilling with HORC37-

44. Finally, from 1995 to 1996 Ross Mining drilled 14 further RC holes, RSM39-42 and RSM107-116, and one diamond hole RSMPQ4.

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All drilling, for this and other prospects, are tabulated below (Tables 1 and 2). Locations were converted to Map Grid of Australia co-ordinates by geo-referencing against any topographical data presented in open file reports.

Surface soil and rock chip samples were collected by EZ and Homestake from 1988 to 1991, showing strong anomalies either side of the old workings area (Figure 3).

The drilling defined a strong zone of high grade mineralisation at shallow depths which is continuous over five 20m spaced sections (A-E in Figure 3 - cross sections are in Figure 4 and Figures 6 -9 in Appendix 2). The sections are preserved in local grid co-ordinates to eliminate any grid conversion errors. There is no effective drilling either NNW or SSE, so there is further potential along strike and at depth.

Figure 3 - Hortons Prospect Plan View with drill traces on an image of surface anomaly

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