Zuleika Gold : 20,000m Major Expansionary Drilling Programs

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ASX RELEASE

14 February 2022

ZULEIKA TO EMBARK ON MAJOR EXPANSIONARY DRILLING

PROGRAMS ON IT'S KALGOORLIE GOLD PROJECTS

Further ~20,000m drill program to commence focusing on newly defined exploration targets generated

from positive drilling results in 2021.

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Zuleika Gold Limited (Zuleika Gold, ZAG or Company) (ASX:ZAG) is pleased to report that it will recommence its drilling activities this month following on from extensive exploration completed in 2021 and focusing on newly defined exploration targets.

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ISSUED CAPITAL

Ordinary shares: 413 093 373

Market Capitalisation: ~$17M

Cash: $2.3M

DIRECTORS

Ms Annie Guo

Managing Director

Mr Graeme Purcell

Non-Executive Director

Mr Michael Higginson

Non-Executive Director

CONTACT

Zuleika Gold Limited

ACN 141 703 399

8 Kings Park Road

West Perth WA 6005

1. [phone]

1. [phone]

1. [e-mail]

www.zuleikagold.com.au

Ruby

K2 Mine

• During 2021, the Company drilled 23,370m, comprising 18,246m of aircore (AC) and 5,124m of reverse circulation (RC) drilling, primarily testing targets within the Zuleika and Credo Projects.
• The Company's 2022 plan is to complete a further ~20,000m of RC and AC drilling programs to advance exploration on the Zuleika Shear Project, together with testing new prospect areas generated from prior drilling and early-stage reconnaissance exploration.
• Drilling will initially focus on the Breakaway Dam, Browns Dam, Little T and Carnage Shear Prospects with 5,500m of AC and RC drilling.
• A further ~4,500m of AC drilling is to be completed at the Menzies and Goongarrie Projects.
• An additional ~5,000m of drilling is planned at the Paradigm East Prospect and the Credo Project, subject to results from drilling completed in late 2021.
• A further ~5,000m of drilling new targets is planned following receiving and analysing all assay results from its extensive surface geochemistry programs completed in 2021. Exploration programs to be designed for newly granted tenements covering the Zuleika and Carnage Shear Zones.
• The Company is well-financed to complete the planned systematic exploration of its highly prospective Projects with a $3m subscription agreement entered with prominent West Australian prospector and investor, Mr Mark Creasy.

ZULEIKA GOLD LIMITED (ASX:ZAG)

ABN 43 141 703 399

Ground Floor, 8 Kings Park Road, West Perth, WA 6005

Phone: [phone]

Fax : [phone]zuleikagold.com.au Email: [e-mail]

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Figure 1 - Zuleika Gold's tenement portfolio in Western Australia. Inset Kalgoorlie / Menzies Projects

Overview

The Company's flagship Zuleika Gold Project sits within the gold rich Kundana - Ora Banda district of the Kalgoorlie Goldfield and consists of an extensive land holding of 223km2 (Figure 1). The Project is positioned along significant regional structures within highly prospective stratigraphy which has been the host to more than 20 million ounces of gold production over the last 30 years (Figure 2).

During 2021 the Company advanced its targeted drilling programs and to date has drilled 23,370m, including 18,246m of aircore (AC) and 5,124m of reverse circulation (RC) drilling. The drilling tested targets at the Paradigm East, Browns Dam, Breakaway Dam, Little T and Carnage Prospects and the Credo Project (Figure 2).

The Company will complete this program in 2022, initially with ~5,500m planned to follow up the significant results achieved during 2021 at Breakaway Dam, Brown's Dam and the Little T Prospects and further AC drilling to be completed on the Carnage Shear and the Menzies Project.

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PARADIGM EAST & BROWNS DAM

BREAKAWAY

DAM

CARNAGE

SHEAR

LITTLE T

Figure 2 - Location of the Zuleika and Credo Projects along major gold fertile shear zones.

Initial 2022 Drill Program

Breakaway Dam Prospect

A first pass AC drilling program was designed to test historic drill results, lithologies and structures. A total of

101 holes for 5,479m was completed during 2021. Best intercepts from the composite samples include:

• 4m @ 4.3 g/t Au from a 4m composite in DBAAC0069 within 10m @ 2.1 g/t Au (ZAG ASX Ann 15/09/2021).

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• 4m @ 1.52 g/t Au from 31m, including 1m @ 4.05 g/t Au at 31m in DBAAC099 (ZAG ASX Ann 31/01/2022).

Best intercepts from 1m re-splits include (ZAG ASX Ann 31/01/2022):

• 11m @1.3 g/t Au from 40m, including 3m @ 3.33 g/t Au from 40m, including 1m @ 7.16 g/t Au at 40m in DBAAC069.
• 7m @1.17 g/t Au from 40m, including 1m @6.33 g/t Au at 40m in DBAAC039.

Results were generally from the supergene zones with >24 of the holes intersecting greater than 0.1 g/t Au, indicating a broad gold system is present (Figure 3).

Initial interpretation of results from Zuleika Gold's AC drilling displays the potential for multiple mineralised surfaces coincident with north-northeast trending structures (Figure 3).

A follow-up campaign consisting of 21 AC holes for ~1,300m has been designed to confirm and extend the mineralised trend at Breakaway Dam (Figure 3). Additionally, two RC holes for 280m will be drilled underneath hole DBAAC069 to test the continuity of the high-grade gold mineralisation into fresh bedrock.

Figure 3 - Breakaway Dam AC results on 1VD Magnetics showing interpretated mineralised surfaces

and planned follow-up AC and RC drilling.

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Browns Dam Prospect

During 2020, the Company announced results from its initial AC drilling at Browns Dam that were designed to test the Company's interpretation of the geophysics which had identified several complex structural zones and potential flexures along the main Zuleika Shear. Best intercepts within the 4m composite sampling of this program were;

• 5m of 3.1 g/t Au from 38m including 1m @ 6.60 g/t Au from 42m
• 1m @ 5.23 g/t Au from 39m in DBDAC0026 and 2m of 0.85 g/t Au and 4m of 0.68 g/t Au from 51m, including 17m of 0.33 g/t Au from 40m in DBDAC0027 (Figure 4).

Figure 4, Browns Dam 2021 aircore results on geology

A follow-up drilling campaign at Browns Dam during 2021 included 47 AC holes drilled for 2,979m. This drilling intersected mafic and ultramafic bedrock lithologies as well as quartz veining and alteration. The results provided best intercepts of:

• 10m @ 0.39 g/t Au from 36m including 1m @ 1.45 g/t Au in DBDAC058, finishing in the mineralisation (Figure 4).
• 8m @ 0.47 g/t Au from 36m in DBDAC057
• 4m @ 0.50 g/t Au from 36m in DBDAC063
• 4m @ 0.61 g/t Au from 44m in DBDAC084

These results were consistent with the previously identified broad zones of gold mineralisation and have highlighted a potential east-west trending gold corridor.

A follow-up campaign will consist of 280m of RC drilling below hole DBAAC0026 to test the continuity of the high-grade gold mineralisation into fresh bedrock.

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