Wiluna Mining Corporation Limited ('Wiluna', 'WMC' or 'the Company') (ASX: WMX) is pleased to provide an update on mine development activities in support of our 24-month, five-point Wiluna Development Strategy to; 1. Strengthen the balance sheet 2. Increase operational cash flow 3. Transition to include gold concentrate production 4. Expand production, and 5. Undertake exploration and feasibility studies to fully develop a 250kozpa, long life gold operation.

Stage 1 of the Development Plan, targeting an increase in gold production to 120kozpa, is currently progressing. Construction of the new flotation circuit to produce gold in concentrate in addition to gold dore has commenced with GR Engineering Services mobilised to site, pad preparation is completed and pouring of the concrete foundations are underway. Long lead time equipment orders have been placed, and early works contracts awarded.

Byrnecut Australia were mobilised in mid- November 2020 and have already completed in excess of 2km of decline and level development rehabilitation for access to initial stoping blocks. Repairs and upgrades of primary ventilation and dewatering networks are progressing to plan ahead of ore production which will commence in Q3 2021.

Open pit mining has been completed at Williamson Open Pit and MACA contracting staff and equipment have been demobilised. Over 600kt of stockpiled Williamson ore will continue to provide the majority of ore feed to the CIL plant until the new flotation circuit has been commissioned.

Golden Age continues to provide valuable high-grade ore for the free milling circuit. Recent resource development drill testing of the newly discovered eastern extension returned excellent intersections. We will continue to drill out this extension with the intention to bring it into production in the next quarter.

Milan Jerkovic, Wiluna Mining's Executive Chair commented: 'Outstanding progress has been made by our Projects and Operations teams and key contractors as we prepare to ramp up underground operations to supply sulphide ore feed to the new flotation concentrator currently under construction at Wiluna. Ensuring the success of these two activities through 2021 is the primary focus of our business as our people work to deliver upon our promise to transform the Wiluna Mining Centre into a significant producer of gold dore and gold in concentrate.

At the same time, we are drilling to expand our resources and reserves for inclusion in the Stage 2 Feasibility Study due to be completed by the end of this year. We continue to explore ways to mine and process more efficiently, sustainably and profitably for the benefit of our shareholders and stakeholders.

Of course, to realise the vision we have for Wiluna requires partnerships with leading industry players and we are particularly proud to have attracted support from GR Engineering Services for process engineering, plant design and construction and Byrnecut Australia to construct and operate the mine as well as our offtake partners Polymetal and Trafigura. I look forward to keeping you briefed on our progress through this year'.

About Wiluna Mining

Wiluna Mining Corporation (ASX: WMX) is a Perth based, ASX listed gold mining company that controls over 1,600 square kilometres of the Yilgarn Region in the Northern Goldfields of Western Australia. The Yilgarn Region has a historic and current gold endowment of over 380 million ounces, making it one of most prolific gold regions in the world. The Company owns 100% of the Wiluna Gold Operation which is the 7th largest gold district in Australia under single ownership based on overall JORC Mineral Resource.

BACKGROUND

Since gold was first discovered at Wiluna in 1896 a rich and diverse history has evolved with the initial surface workings moving underground and expanding over time to include over 100km of underground development over 3.5km in strike length on three main parallel structures and extending to 1km in depth. Over the years gold production has cycled between oxide and sulphide ore, from open pit and underground mining, with each change benefitting from improvements in technology and equipment available at the time.

Key to extracting the value embedded deep in the Wiluna operation is the transition to underground mining and processing of sulphide ore. We will introduce this approach by producing a concentrate to be sold to Trafigura and Polymetal with the Polymetal concentrate to be eventually processed at their POX (Pressure Oxidation) facility in Eastern Russia.

STAGED DEVELOPMENT PROGRAM

The redevelopment of Wiluna will be conducted in stages as resources and reserves grow and underground mine production is ramped up. The first stage has commenced with the construction of the flotation plant and rehabilitation of underground declines to sulphide production areas.

Core Infrastructure to Expand Production

Key to maximising the value from Wiluna's expansive underground resources is the transition to producing both gold in dore and gold in concentrate. The 750ktpa flotation plant, which is expected to be completed and commissioned in October 2021, will enable the Company to expand production to 120kozpa. The inclusion of flotation at Wiluna, together with Wiluna's existing infrastructure, make it possible to treat all ore types at site by: Treating Free milling ore through the existing 2.1Mtpa CIL process plant; Production of concentrate from sulphide ores at 750ktpa with a feasibility study in progress to expand production to 1.5Mtpa; Production of dore from gravity concentration and Tailings retreatment (Wiltails Project).

A More Sustainable Operation

A key business imperative of Wiluna's plan going forward is to minimise our environmental footprint and create a more sustainable future operation. To this end, we are pursuing more environmentally friendly processing routes undertaking process and mining efficiency studies, investigating the use of renewable energy solutions to meet our increasing energy demands and initiatives to clean up and rehabilitate any historic legacy issues. The Company will shortly install equipment to acquire wind data for a renewable energy power generation study, to commence in 2022.

Contact:

Milan Jerkovic

Tel: +61 8 9322 6418

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