Falcon Metals Limited announced that it has received final assay results for all the remaining diamond and aircore holes at the Karri and Ironbark prospects in the Pyramid Hill Gold Project, located north of Bendigo in Victoria, Australia. Falcon drilled a total of 8 diamond holes at Karri, one diamond hole each at Ironbark North and East, and 37 aircore holes to blade refusal at Ironbark East. Prior to this announcement, Falcon had only announced results for four of the diamond holes at Karri1.

Results from this drilling are highly encouraging, confirming primary gold mineralisation within the diorites at both Ironbark North and East, with the aircore results at Ironbark East helping further define the prospective zone and provide additional encouragement that diorites within the Bendigo Zone are a valid exploration target. The results at Karri have further extended the zone of primary mineralisation intersected by diamond drilling with grades > 1 g/t Au now identified over a strike length of 2.5km. The next step for Pyramid Hill is a detailed assessment of these results and finalisation of the forward work plan.

Drilling is expected to recommence in October 2022, with Falcon at the advanced stages of securing a quality drilling contractor for an extensive regional program to screen its substantial prospective land holding for large scale and high-grade gold systems. Ironbark: Several previous phases of work at Ironbark indicated the potential for gold mineralisation associated with the contact between Castlemaine Group Sediments and intrusive diorites, with some mineralisation hosted within the diorites. This geological setting was seen as a positive given there are several analogous high-grade diorite-associated gold deposits in Eastern Victoria (Walhalla-Woods Point Goldfields) including Cohen's Reef (~1.5Moz @ 32 g/t Au). Although the focus was initially at Ironbark North and South, drilling in 2021 at Ironbark East was particularly significant with aircore hole PA953 intersecting 13m @ 1.52 g/t from 113m ending in mineralisation, and hole PA918, located 200 metres to the west, intersecting 9m @ 0.91 g/t from 61m3.

Drilling for 2022 planned for an extensive infill program at Ironbark East around these holes on a 200m x 50m spacing to test the extent of the anomaly and to provide information to better target diamond drilling. Drilling commenced in March 2022 and was completed in May 2022 with 37 aircore holes reaching blade refusal. The aircore drill program at Ironbark East has identified two anomalous zones for further targeting.

The central zone is coincident with the diorite, with PHAC1030 returning 40m @ 2.81g/t Au from 50m, including 26m @ 4.2 g/t Au, and multiple metre intervals above 10g/t Au. A new zone in the northwest of the grid was also identified where two holes intersected >200ppb Au in Castlemaine Group Sediments. The mineralisation in PHAC1030 commenced at a depth of 50m within a 2m thick zone of transported quartz gravels.

Some of the quartz clasts are cemented with marcasite and both this zone and the organic rich layer directly above it were elevated in arsenic. The presence of such a high-grade zone of gold associated with anomalous arsenic suggests a proximal source to the gold in these gravels. This gravel layer overlies weathered diorite, containing gold mineralisation together with elevated arsenic, antimony, tellurium and sulphur, which suggests that this is a primary mineralized zone.

Importantly, the antimony, tellurium and sulphur values were higher in the saprolite than in the transported gravel. Some potential for downhole contamination was identified during geological logging on the basis of a minor component of transported gravel (presumably from the gravel horizon between from 50-52m at the base of the Murray Basin) being logged in the saprolitic diorite within selected intervals (54- 55m and 75-76m). The initial results from PHAC1030, based on the 4m composite samples, were highly variable.

Due to the high grade and poor repeatability of initial assays, additional sampling of each 1m interval was undertaken to test for variability. Repeat assaying of this was completed and whilst similar results were obtained over the entirety of the intercept, there was a high degree of variability on a sample- by-sample basis, suggesting the presence of coarse and nuggety gold. Following exhaustive test work, the reported results are considered robust and the most appropriate quantification of the gold present from the available sample.

A diamond drill hole, PHIRDD006, was also completed at Ironbark East. This hole targeted the zone under previous aircore hole PA953 with the primary objective of providing stratigraphical and lithological information to aid in planning of future drilling and was drilled before Falcon received the assays for the aircore holes (including PHAC1030). Based on the new results from PHAC1030, the eastern contact of the diorite with the Castlemaine Group Sediments is now considered a higher priority target.

Despite this, hole PHIRDD006 intersected narrow zones of mineralisation in both the Castlemaine Group Sediments and within the diorite including 0.4m @ 5.91g/t. Diamond drillhole PHIRDD005 was also completed at Ironbark North and intersected primary gold mineralisation associated with quartz veining within the diorite with a zone of 3.6m @ 3.74 g/t Au, the best intersection from this prospect so far. Karri: Drilling results for the final four diamond holes at Karri are now all received. In total 8 diamond holes were drilled for 4,264m.

PHKADD024 was the southernmost diamond drillhole at the Karri Prospect and it successfully confirmed primary gold mineralisation in this area. PHKADD025 was a 100m step out along strike to the north from PHKADD021 and the grade of the mineralisation remained consistent between these holes. Karri remains a priority target at Pyramid Hill due to the extent of the aircore anomaly (4km long) and the presence of high-grade mineralisation in intercepts such as PHDH015 (5.1m @ 13.96 g/t Au from 100.9m, including 2.2m @ 32.10 g/t Au).

Further assessment of the full results is currently underway, with a view to further refining the understanding of the gold system at Karri and consideration of infill aircore drilling to better vector in on the high-grade gold.