Westgold Resources : March Quarterly Report

ASX RELEASE

Westgold Resources Limited [Westgold ASX: WGX] is a dynamic, growth oriented Western Australian gold miner.

Westgold is unique in the Australian gold sector as an owner operator. We mine our orebodies with our own people and our own equipment and aspire to create wealth for our shareholders, employees and communities in a sustainable manner.

INVESTOR RELATIONS ENQUIRIES

Wayne Bramwell | Executive [e-mail]

CONTACT US

Westgold Resources Limited (ASX: WGX)

ACN 009 260 306

L6, 197 St Georges Terrace, Perth WA 6000 [phone]

MARCH 2022 QUARTERLY REPORT

65,426 OZ PRODUCED IN Q3

HIGHLIGHTS

• § Third Quarter of FY22 [Q3] gold production of 65,426oz @ an All-In Sustaining Cost (AISC) of $1,759/oz

• § At end of Q3, tracking to FY22 production and cost guidance with:

  • o 198,288oz Au produced @ AISC of $1,684/oz

• § Closing cash, unsold bullion and liquid assets - $189M including net proceeds from placement of $97M

• § Big Bell Mine - commercial production declared marking the transition to steady state operations

• § Paddy's Flat Mine - quarterly mine grade improves to 3.2g/t Au with air leg production of 3,340t @ 12.4g/t Au in February

• § Bluebird Mine - quarterly mine grade improves to 3.3g/t Au with southern plunge drilling revealing continuation of high-grade mineralisation

• § Exploration drilling commences - across various priority 1 targets

• § $100M placement completed - to fund growth projects

• § Plant expansion studies commence - for Fortnum and Tuckabianna

• § Mine expansion studies commence - for Bluebird and Comet

• § Two new key Board appointments - Peter Cook retires and Westgold appoints Cheryl Edwardes AM as Non-Executive Chair and Julius Matthys as Independent Non-Executive Director

Westgold Executive Director Wayne Bramwell commented:

"Westgold has delivered another solid quarter of production that maintains our track towards FY22 guidance.

This quarter saw operational momentum and grade continue to lift and Big Bell reaching steady state. Our focus remains on improving operational delivery through rigorous capital management and continuous cost optimisation that enhances profitability.

Corporately the company completed a $100M placement to fund key growth projects and made two new key appointments to our Board this quarter. Westgold now has the team, strategy and financial capacity to concurrently drive higher profitability and execute upon our growth aspirations."

EXECUTIVE SUMMARY - QUARTER IN REVIEW

Westgold Resources Limited (ASX: WGX, Westgold or the Group) is pleased to report results for the period ending 31 March 2022 [Q3, FY22]. Our Murchison and Bryah operations delivered another solid quarter with gold production of 65,426oz and maintained costs in an environment of continuing COVID related labour shortages and supplementary disruptions caused by isolation of close contacts [Figure 1 & 2].

Costs $/oz 2,500

2,000

1,500

1,000

500

-

Note: *Quarterly Averages

Figure 1 - Westgold Production (oz), Achieved Gold Price & AISC (A$/oz)

Westgold maintained an AISC of $1,759/oz or $115M for the quarter despite industry wide cost inflation in fuel, ground support, cyanide and labour. Pleasingly Westgold remains on track to achieve its FY22 production and cost guidance with Group YTD production to 31 March 2022 of 198,288oz @ an AISC of $1,684/oz [FY Guidance +270,000 Oz @ $1,500 - $1,700/oz].

Actual gold sales for the quarter were 55,489oz at an improved achieved gold price of $2,385/oz generating revenue of $132M. Unsold bullion on hand at the end of the quarter comprised of 10,395oz, valued at $27M at the closing spot price of $2,596/oz.

Year to date Westgold have maintained a margin of $683/oz over AISC equating to $135M. Q3 contributed $627/oz or $41M of this result. Capital expenditure during Q3 totalled $38M of which $25M was invested in growth capital, $9M in plant and equipment and $4M in resource development / exploration spending, resulting in Net Mine cash inflows of $3m (refer Table 1).

Westgold treasury closed strongly at quarter end with cash, unsold bullion and liquid assets of $189M including net proceeds from the successful placement of $97M.

MARCH 2022

QUARTERLY ACTIVITIES REPORT

2

80,000 1,800 70,000

GoldProductionoz.

60,000 50,000

40,000 1,500 30,000

Costperoz.

20,000 10,000

0 1,200

Gold Produced

AISC/oz

Jun Q 2021	Sep Q 2021	Dec Q 2021	Mar Q 2022
56,909	66,173	66,688	65,426
1,514	1,582	1,709	1,759
Gold Produced	AISC/oz

Figure 2 - Group Gold Production and A$ Costs

Environment, Social and Governance [ESG]

• § Group Power Project

  The 2021 Sustainability Report highlighted the commitment to integrating renewable power into our operations to lower carbon emissions. Carbon emissions from gas are 26% lower than diesel per GJ of energy, hence the switch to gas fired generators where practical is key to longer term emission management and fuel cost.

  Following a detailed review of Group power requirements, power station options and potential use of renewable energy, a market tender was undertaken in late 2021 for provision of power across the Group's major power stations. The Company is well advanced in negotiations with the preferred tenderer on an Electricity Purchase Agreement under which the Company's large diesel-fired power stations are intended to be replaced with a gas fuel solution complemented with solar power and battery storage.

  Under the proposed agreement, the independent power provider will fund and construct the new power plants and provide electricity on a fixed and variable cost basis. The project is expected to provide substantial cost savings to the business as well as significantly reducing the Company's carbon footprint through the use of cleaner fuel (gas versus diesel) and renewables (solar). Commissioning of the new power plants is expected to commence in mid-2023.

• § COVID-19 Management

  The COVID-19 pandemic has continued to provide operational and logistical challenges to our business. In this quarter, the business successfully implemented a range of specific Coronavirus control measures to restrict the impact of COVID-19 on our operations in line with WA Government requirements and industry best practice.

Each operating unit was impacted by positive COVID-19 clusters throughout the quarter, resulting in the isolation of positive cases and close contacts and this impacted production due to higher level of absenteeism.

§

Environment, Health and Safety (EHS)

The overall Total Recordable Injury Frequency Rate (TRIFR) increased slightly by 1.79% (from 23.96 to 24.39). Positively, our Lost Time Injury Frequency Rate (LTIFR) decreased by 13.85% (from 2.31 to 1.99) for the quarter.

Key LAG Indicator safety performance indicators are summarised in Figure 3 below.

30

20

RecordableInjuryCount

10

0

30.65 2.50

28.87 23.96 24.39 2.65 2.31 1.99

Q3 - FY21 Q1 - FY22

45.00

30.00

15.00

0.00

Roling12MonthFrequencyRateQ2 - FY22

Q3 - FY22

Recordable Injuries

12 Month TRIFR

12 Month LTIFR

Figure 3 - Westgold LAG Indicator Safety Performance

Westgold's Significant Environmental Incident Frequency Rate (SEIFR) remained at 0.00 for this quarter, with no change over the period. The overall Environmental Incident Frequency Rate (EIFR) increased slightly, moving from 12.12 to 12.19 for the quarter.

EH and S performance remains a continual focus as the business drives to achieve improved results. The business acknowledges the changes to the Workplace Health and Safety legislation during the quarter that came into effect on 31 March 2022 and is engaged in a wide variety of activities to ensure our business and our people remain aware and compliant through this implementation period.

In this quarter we proudly opened and formally commenced new-starter training programs at our Great Fingall underground training facility near Cue. The Great Fingall facility provides the opportunity to train new employees and cadets in a real mine environment utilising production scale equipment.

The Great Fingall facility is a unique and integral part of the wider new-starter training program developed by Westgold, with this site-based program dovetailing with our custom-built Canning Vale Training facility. This facility is the first step of our program is also used to provide an enhanced training and proficiency opportunity for our existing and developing underground operators.

These programs are all part of the investment in our people, by providing practical structure programs to initially train, upskill them and build greater organisational capability.

GROUP PERFORMANCE METRICS

The quarterly physical and financial outcomes for Westgold's operations are summarised in Table 1 below.

The Murchison operations include the Meekatharra and Cue business units and is considered as one project with two processing plants as Westgold has the operational flexibility to mine and process ore at either processing hub. The Bryah operation is the Fortnum business unit only.

At the end of Q3, Westgold remains tracking to be within its FY22 production and cost guidance.

Table 1 - Westgold March QTR FY22 and YTD FY22 Performance

MURCHISON	BRYAH	GROUP	GROUP
MAR QTR	MAR QTR	MAR QTR	YTD
FY22	FY22	FY22	FY22
Physical Summary	Units
ROM - UG Ore Mined	t	578,203	160,774	738,976	2,320,826
UG Grade Mined	g/t	2.8	3.0	2.9	2.7
OP Ore Mined	t	188,809	0	188,809	565,184
OP Grade Mined	g/t	1.84	0.00	1.84	1.59
Ore Processed	t	663,152	193,060	856,212	2,795,173
Head Grade	g/t	2.6	2.8	2.6	2.5
Recovery	%	89	94	90	90
Gold Produced	oz	49,301	16,125	65,426	198,288
Gold Sold	oz	40,064	15,425	55,489	187,406
Achieved Gold Price	A$/oz	2,375	2,411	2,385	2,366
Cost Summary
Mining	A$/oz	1,194	857	1,111	1,076
Processing	A$/oz	450	403	438	396
Admin	A$/oz	81	63	77	78
Stockpile Movements	A$/oz	(238)	90	(157)	(138)
C1 Cash Cost (produced oz)	A$/oz	1,487	1,413	1,469	1,412
Royalties	A$/oz	95	66	88	84
C2 Cash Cost (produced oz)	1,582	1,479	1,557	1,496
Corporate Costs / Reclaim etc	A$/oz	20	36	24	24
Sustaining Capital	A$/oz	192	134	178	164
All-in Sustaining Costs	A$/oz	1,794	1,649	1,759	1,684
Notional Cashflow Summary
Notional Revenue (produced oz)	A$ m	117	39	156	469
All-in Sustaining Costs	A$ m	(88)	(27)	(115)	(334)
Mine Operating Cashflow	A$ m	29	12	41	135
Growth Capital	A$ m	(23)	(2)	(25)	(86)
Plant & Equipment	A$ m	(8)	(1)	(9)	(26)
Exploration Spend	A$ m	(4)	-	(4)	(14)
Net Mine Cashflow	A$ m	(6)	9	3	10
MARCH 2022
QUARTERLY ACTIVITIES REPORT