Alchemy Resources : Karonie RC Drilling Commenced

8 April 2022

BOARD AND MANAGEMENT

MR LINDSAY DUDFIELD

NON-EXECUTIVE CHAIRMAN

MR JAMES WILSON

CHIEF EXECUTIVE OFFICER

MS LIZA CARPENE

NON-EXECUTIVE DIRECTOR

MR ANTHONY HO

NON-EXECUTIVE DIRECTOR

MS CARLY TERZANIDIS

COMPANY SECRETARY

PROJECTS

LAKE REBECCA (ALY 100%)

KARONIE (ALY 100%)

LACHLAN (ALY 80%)

WEST LYNN (ALY 80%)

BRYAH BASIN (ALY 20%, TSX-V SGI 80%)

BRYAH BASIN (ALY 20%, SFR 80%)

• 1 Refer ALY announcement 18 November 2021

• 2 Refer ALY announcement 9 March 2022

3 Refer ALY announcement 31 August 2021

KARONIE RC DRILLING COMMENCED

HIGHLIGHTS

ASX: ALY

• ▪ RC drill program has commenced at the Karonie Gold Project 110km east of Kalgoorlie testing multiple high priority targets.

  • o 3000-4000m of RC drilling

  • o Expected to take 2-3 weeks to complete

  • o First assays expected May 2022

• ▪ The campaign is evaluating multiple high tenor targets at the Gilmore trend, infill and extension drilling at Karonie East, and testing of EM plates at KZ5.

Alchemy Resources Limited (ASX: ALY) ("Alchemy" or "the Company") is pleased to announce that a Reverse Circulation ("RC") drill program is underway at the 100% owned Karonie Gold Project, located 110km east of Kalgoorlie.

The drill program will include holes at Gilmore, which was targeted as a result of high-resolution magnetics and detailed mapping in 20211. Gilmore is located along a NE-striking fault corridor that intersects fractionated magnetic dolerites. Historic RAB drilling was deemed ineffective and unable to penetrate the transported cover to test the basement geology, and the limited RC drilling was never followed up. The program is EIS co-funded, and Alchemy acknowledges the significant support from the

Department of Mines, Industry Regulation and Safety ("DMIRS").

At Karonie East, infill drilling is planned both along strike, and at depth, of the previous aircore intercepts2. The recent aircore program successfully outlined gold in the saprolite horizon, and the current holes are planned to test for bedrock mineralisation below these zones and along strike.

A single RC hole at KZ5 will test a historic untested electro-magnetic (EM) plate located along strike of the existing resource3. Mineralisation remains open to the north and the EM plate sits in the position now interpreted to represent the northern strike extent of mineralisation.

Chief Executive Officer Mr James Wilson commented:

"We are excited to be back out at Karonie drill testing our priority targets at Gilmore where there has been no RC follow-up of mineralised intercepts since 2002. At Karonie East we are testing mineralisation at depth, following up on the success of our recent aircore program. At KZ5 an untested EM plate lines up with our revised interpretation of mineralisation, which could add further strike length to the resource. Overall, our activities are proceeding in line with our 2022 objectives, testing existing walk-up and advanced stage targets at Karonie."

Alchemy Resources Limited

ABN: 17 124 444 122

T: 9481 4400 | E:[e-mail]| W:www.alchemyresources.com.au

8/8 Clive Street, West Perth 6004, WA

KARONIE PROJECT EXPLORATION (WA ALY 100%)

PHASE 3 REVERSE CIRCULATION DRILL PROGRAM (~3,000m) - COMMENCED

Phase 3 of Alchemy's planned drilling has commenced and will consist of approximately 3,000-4000m of RC drilling to test multiple targets at Gilmore, Karonie East and KZ5.

Figure 1: Karonie drill programs planned for 2022

GILMORE PROSPECT

Gilmore is part of an EIS co-funded drill program which consists of the Gilmore and Western Brown targets (Western Brown is due to be drilled as part of the Phase 4 drill program in Q3CY22). The Gilmore target (Figure 2) is defined by a northeast trending fault corridor which disrupts a highly magnetic and fractionated dolerite package. The target area has seen little effective drilling, with most of the historic RAB drilling at Gilmore not able to penetrate the transported cover to test basement geology. Alchemy has secured EIS co-funding for this target, which is seen as additional technical validation of its potential to host new discoveries in the region. Alchemy acknowledges the significant support from the DMIRS.

Figure 2: Gilmore drill targets

KARONIE EAST

Holes in this area (Figure 3) are designed to test a magnetic feature which runs along the northern zone over a 2km strike length. A NE trending structural dislocation trends through the prospect, and is interpreted to be a key control on mineralisation in the region. Assays from the recent aircore drill program returned numerous zones of anomalous gold (>0.1g/t Au) over a strike length of approximately 950m, with a best intercept of 2m @ 2.7g/t Au (48m) in KEAC009, including 1m @ 3.99g/t Au from 48m logged in saprolite². RC drilling is designed to test the mineralisation in bedrock below these intercepts and along strike from this zone.

Figure 3: Karonie East drill targets

KZ5

A single deep RC hole is planned for KZ5 to test a historically defined EM plate to the north of the existing defined resources. In mid-2021 Alchemy completed a drill campaign which was used to complete a maiden JORC compliant resource3. The geology at KZ5 was reinterpreted following the infill drilling and resource modelling, and the mineralisation is now interpreted to be offset to the north-west (vs north-south strike historically), with an EM Plate generated via a Moving Loop and Fixed Loop EM survey conducted in 19914 interpreted to represent an extension of the KZ5 mineralisation to the north.

Figure 4: KZ5 drill targets

4 Refer WAMEX Report A103351 Silver Lake Resources surrender report Aldiss Project