Perth, Western Australia - The Board of Besra Gold Inc (ASX: BEZ) (Besra or Company) is pleased to make this announcement.

Details

Completion of Entitlement Offer

On 25 November 2022 the Company announced a 1 for 3 Non-Renounceable Entitlement Offer of CDIs at $0.05 per CDI to raise approximately A$5.1m (before costs) ('Entitlement Offer'). The Entitlement Offer was fully underwritten by Quantum Metal Recovery Inc a substantial shareholder of Besra. Proceeds from the Entitlement Offer will be applied to:

Jugan Project Resources Review & Feasibility Studies; Funding Jugan test plant construction and commissioning (once approved); Drilling including follow-up step-outs to determine the extent of bonanza grade gold mineralisation encountered in BKDDH-27 during the 2022 Bekajang drilling campaign; In-Country Administration and Overheads; and General working capital and administration.

Gold Offtake Purchase Facility

Updating the disclosure made on 25 November 2022, the Company continues to advance its discussions with its substantial shareholder, Quantum Metal Recovery Inc, pursuant to which it is proposed that it will provide up to US$300 million in financial support, commencing as soon as CY2023, by way of a gold offtake purchase facility. The proposed facility, if implemented, would enable Besra to advance exploration and development planning, and to expedite production at the Bau Gold Project in Sarawak, Malaysia.

It is currently proposed that stream deliveries would be based on gold production from Bau, with Besra to receive 90% of the spot gold price for each ounce delivered subject to a monthly cap.

Potential to draw-down tranches to progressively fund procurement, construction, and commissioning of onsite mine & processing plant. Negotiations are progressing positively, although no agreement has yet been reached, and any agreement would be subject to Besra board, shareholder and regulatory approval including compliance with ASX listing rules.

The Company remains frustrated with the poor turn-around of assaying for its core samples.

During much of the December quarter drilling was suspended until the backlogged assay results were received and integrated into the forward program planning. The assay results for DKBBH- 28, -29 & -30 remain pending, however, the balance of received gold assays are listed in the above table following the drilling of 21 fully cored holes totalling 1400 m of drilling.

The best gold intercepts were associated with the traditional shallow target zone near the Bau Limestone upper contact with overlying sequences, most notably the Pedawan Shale (Limestone-Shale Contact or LSC) along the northern flank of the historic Bekajang tailings dam (Figure 1). However, BKDDH-27 encountered bonanza grade gold mineralisation in a deeper level of the Bau Limestone, quite discrete from the LSC highlighting the potential for a new deeper Bau Limestone mineralisation target.

Commencement of 2023 Drilling Program

The bonanza high grade gold intercepts at Bekajang, within the Bau Limestone, now constitute a second primary objective of the 2023 Bekajang drilling program which has just commenced with the drilling of BKDDH-31.

The first phase of this new program will involve drilling six fully cored drill holes, effectively as directional step-outs from the BKDDH-27 hole, (which encountered the deeper bonanza grade gold intercepts within the Bau Limestone), to determine the lateral extent and attitude of this deeper mineralised zone. It is speculated that this may be mineralisation within a sub-vertical conduit system providing the pathway for the preferential flow of mineral-charged hydrothermal fluids upwards into the overlying LSC zone.

The second phase will involve deeper reconnaissance, 'proof of concept' drilling to determine whether the deeper Bau Limestone mineralisation could be a pathfinder; part of a more extensive conduit system related to an intrusive complex and its heat source that is interpreted to be present beneath the Bekajang tailings dam on the basis of the DIGHEM anomaly interpretation (Figure 2).

Deep seated faulting may provide direct conduits by which richly endowed hydrothermal mineral charged fluids migrate vertically to gain access to the shallower LSC levels.

Environmental Impact Assessment

In early December 2022, Chemsain Konsultant Sdn Bhd completed community and other stakeholder dialogue meetings and finalised the EIA Report that it had been commissioned to prepare on behalf of the Company. In December 2022 the final report entitled 'Proposed Test Gold Mining and Processing at Jugan (ML 01/2013/1D and ML/05/2012/1D), Bau, Sarawak' was submitted in the Natural Resources and Environment Board (NREB) Sarawak in conformity with the initial Terms of Reference for the Project. The project activities include land access / compensation agreements, test plant engineering, procurement, and construction management (EPCM), engagement of mining contractors, site construction & earthworks, construction phase, test pit construction & plant commissioning, operational, bulk sampling & processing, and lastly rehabilitation & decommissioning.

At the same time an Application for Early Commencement Works (ECW) was lodged to undertake drilling activities prior to a determination of the EIA. This ECW was approved, by the NREB on 21 December 2022 within the area effected by the EIA.

Lapse of ML 1D/ 136/ML/2008

The Joint Venture has decided to allow ML 1D/136/ML/2008 to lapse at the conclusion of its 20- year term, given that it is extensively impacted by the subsequent gazettal of the Dered Krian National Park (Figure 3) and does not form part of the Joint Venture's core activities. As previously disclosed1 the Joint Venture had been advised by the Ministry of Urban Development and Natural Resources in 2018 of its intention to revoke four Mining Leases within the Bau Gold Project, totalling 252.4Ha. These four Mining Leases variously encroach upon the newly gazetted boundaries of the DKNP.

The Joint Venture submitted a proposal in August 2018 seeking to voluntarily surrender the portions of the Mining Leases which encroach upon DKNP in return for retaining the remaining portions of the Mining Leases or reapplying for new Mining Leases over those remaining portions. Given the imminent expiry of this ML it was considered most prudent not to apply for a renewal of the ML in its current form and allow it to lapse.

The Joint Venture will continue to advance its position and will consider full or partial renewals as appropriate for the other three MLs in due course.

This ML has not been core to the Joint Venture's activities and no direct work has been undertaken in it for more than a decade. Its expiry will result in an impairment in the Resource Inventory estimated at 263,800 Oz.

Contact:

Australasia

Ray Shaw

Chief Executive Officer

Email: ray.shaw@besra.com

North America

James Hamilton

Investor Relations Services

Email: jim@besra.com

Mobile: +1 416 471 4494

Competent Person's Statement

The information in this Announcement that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr. Kevin J. Wright, a Competent Person who is a Fellow of the Institute of Materials, Minerals and Mining (FIMMM), a Chartered Engineer (C.Eng), and a Chartered Environmentalist (C.Env). Mr. Wright is a consultant to Besra. Mr. Wright has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the JORC Code (2012 Edition) of the Australasian Code for Reporting of Exploration Results, and a Qualified Person as defined in National Instrument 43-101 Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators.

Kevin J. Wright consents to the inclusion in this Announcement of the matters based on his information in the form and context that it appears.

Disclaimer

This Announcement contains certain forward-looking statements and forecasts concerning future activities, including potential delineation of resources. Such statements are not a guarantee of future performance and involve unknown risks and uncertainties, as well as other factors which are beyond the control of Besra Gold Inc. Actual results and developments may differ materially from those expressed or implied by these forward-looking statements depending upon a variety of factors. Nothing in this Announcement should be construed as either an offer to sell or a solicitation of an offer to buy or sell securities.

This Announcement has been prepared in accordance with the requirements of Australian securities laws and the requirements of the Australian Securities Exchange (ASX) and may not be released to US wire services or distributed in the United States. This announcement does not constitute an offer to sell, or a solicitation of an offer to buy, securities in the United States or any other jurisdiction. Any securities described in this announcement have not been, and will not be, registered under the US Securities Act of 1933 and may not be offered or sold in the United States except in transactions exempt from, or not subject to, registration under the US Securities Act and applicable US state securities laws.

Unless otherwise indicated, all mineral resource estimates and Exploration Targets included or incorporated by reference in this Announcement have been, and will be, prepared in accordance with the JORC classification system of the Australasian Institute of Mining and Metallurgy and Australian Institute of Geoscientists.

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