Firefly Resources : 21/04/2021 - Outstanding high-grade results from grade control drilling

ANNOUNCEMENT 21 April 2021

Outstanding shallow high-grade results confirm thick

oxide blanket at 196koz Melville Gold Deposit

Final assays of up to 8.9g/t from close-spaced grade control drilling point to early cash-

flow potential with diamond drilling commencing this week

Highlights:

• Final assays now received from recently completed 7,000m/612-holeclose-spaced grade control drill program at cornerstone Melville Gold Deposit, Yalgoo Gold Project. Significant results from the final batch include:

• 1. 12m @ 4.48g/t from surface including 4m @ 8.90g/t (FMGC0354) o 12m @ 3.05g/t from surface including 2m @ 5.80g/t (FMGC0368) o 12m @ 1.40g/t from surface including 3m @ 3.12g/t (FMGC0369) o 5m @ 4.16g/t from surface including 2m @ 8.33g/t (FMGC0367) o 7m @ 2.68g/t from surface including 2m @ 6.45g/t (FMGC0355) o 5m @ 2.63g/t from surface including 1m @ 8.19g/t (FMGC0353)
• Drilling has confirmed the widespread distribution of shallow gold mineralisation sitting above and overlying the recently announced 196koz Melville Mineral Resource Estimate.
• The presence of this shallow material will significantly enhance any future mining scenario.
• A JORC 2012 Grade Control Mineral Resource Estimate is underway and will be disclosed in the coming weeks.
• Due to the close-spaced nature of the drilling/sampling, regular drill spacing and continuity of mineralisation all of the ounces outlined in the new Grade Control MRE will be in the higher confidence Indicated category.
• Across the wider Yalgoo Gold Project, Firefly is progressing its 30,000m exploration program with another 4,400m of RC drilling recently completed at the Don Bradman, Applecross and Crescent/Olive Queen targets. Assays for this drilling are expected in the coming weeks.
• In addition, Firefly has mobilised a diamond drill rig to Yalgoo to drill ~2,000m of core. 1,000m of core will be drilled at the Melville Gold Deposit for geotechnical and metallurgical testwork purposes in preparation for mining studies.
• The remaining 1,000m of diamond core will be drilled at the shallow Applecross gold prospect, just 300m north of Melville, and at the high-grade Don Bradman and Crescent gold prospects, after favourable mineralisation was noted in recent RC drill chip logging.

Firefly Resources Ltd (ASX: FFR; Firefly or the Company) is pleased to report final assay results from its recent extensive grade control drilling program over the cornerstone Melville Gold Deposit at the 100%- owned Yalgoo Gold Project in Western Australia (see Figure 3)

The final batch of assays includes some strongly mineralised intercepts from surface including high-grade zones of up to 8.9g/t, highlighting the robustness of the shallow oxide blanket at Melville.

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ANNOUNCEMENT 21 April 2021

The Company recently announced a maiden JORC 2012 Indicated and Inferred Mineral Resource Estimate of 196,000oz for the Melville Deposit (refer ASX announcement, 17 March 2021) and immediately launched a close-spaced grade control program to follow up on the broad, shallow mineralisation observed in recent deeper resource-focused drilling.

The location of the grade control drill-holes is shown in Plan View in Figure 1 below, relative to the 2012 Mineral Resource outline. The drilling has confirmed the presence of an extensive blanket of shallow gold mineralisation extending over 100's of metres both along and across strike above the primary Mineral Resource. Significant assay results are shown in the cross-sections in Figure 2 below.

Figure 1. Plan view showing the distribution of the grade control drill program relative to the recently announced 2021 Mineral Resource

envelope and the area of the previously announced Tribute Mining Agreement.

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ANNOUNCEMENT 21 April 2021

Figure 2. Indicative cross-sections from the Melville Gold Deposit grade control drill program showing broad shallow gold mineralisation.

Some of the more significant intercepts from adjacent holes on two cross-sections in the centre of the grade control area are summarised below and shown in Figure 2 above:

1. 2m @ 2.07g/t from 2m (FMGC0351) o 2m @ 2.44g/t from 1m (FMGC0352)
   o 5m @ 2.63g/t from surface, including 1m @ 8.19g/t (FMGC0353) o 12m @ 4.48g/t from surface, including 4m @ 8.90g/t (FMGC0354) o 7m @ 2.68g/t from surface, including 2m @ 6.45g/t (FMGC0355) o 5m @ 1.03g/t from surface (FMGC0356)
   o 6m @ 1.96g/t from 2m, including 2m @ 4.35g/t (FMGC0366)
   o 5m @ 4.16g/t from surface, including 2m @ 8.33g/t (FMGC0367) o 12m @ 3.05g/t from surface, including 2m @ 5.80g/t (FMGC0368) o 12m @ 1.40g/t from surface, including 3m @ 3.12g/t (FMGC0369) o 4m @ 1.06g/t from surface (FMGC0370)

A full list of collar and hole details is provided in the Annexure to this announcement, together with a detailed list of 1-metre splits for all holes. As foreshadowed in the previous announcement (ASX:FFR on 9 April 2021) the assays from the recent drilling will form the basis of the anticipated JORC 2012 Grade Control Mineral Resource Estimate for the Melville Gold Deposit as also outlined in recent Firefly announcements of 24 February 2021, 17 March 2021 and 9 April 2021.

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ANNOUNCEMENT 21 April 2021

Figure 3. Plan view of Firefly's100%-owned Yalgoo Gold Project tenure with current Firefly priority gold targets over black and white magnetics. The 196,000-ounce Melville Gold Deposit sits within one of several kilometre-scale gold mineralisation trends that Firefly is targeting at Yalgoo.

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ANNOUNCEMENT 21 April 2021

Management Comment

Firefly Managing Director, Simon Lawson, said: "The close-spaced drilling program at Melville has been a huge success, revealing a thick blanket of oxide gold mineralisation overlying the 196koz Melville Mineral Resource.

"While we were aware of the presence of shallow gold at Melville, we have been pleasantly surprised to find that the gold is far more extensive than we thought. The real value of the shallow oxide gold is driven home by the fact that mineralisation is continuous down-hole as well as along and across strike. This low spatial variability coupled with low statistical grade variability confirms the in-situ nature of the gold and gives us a huge amount of confidence with respect to potential mining scenarios, in particular the possibility of strong reconciliation of in-ground ounces to produced gold ounces.

"The really exciting prospect for Firefly across the wider Yalgoo Gold Project is that this type of shallow, high- grade oxide gold mineralisation may exist across our other target areas. We are looking at a number of our existing targets now for this potential.

"I am also very pleased to announce the imminent arrival of a diamond drill rig at Yalgoo to drill core into the deeper parts of the Melville Resource for geotechnical and metallurgical test-work in preparation for potential mining scenarios. This rig will also follow-up on some exciting alteration and mineralisation we have seen in recent RC drilling at the high-grade Don Bradman and Crescent gold prospects."

Authorised by Simon Lawson, Managing Director - Firefly Resources Ltd

Investor Inquiries

Media Inquiries

Firefly Resources Limited

Read Corporate

08 9322 2338

Nicholas Read

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08 9388 1474

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Melville JORC 2012 Mineral Resource Estimate

Indicated

Inferred

Total

Tonnes

Au (g/t)

Ounces

Tonnes

Au (g/t)

Ounces

Tonnes

Au (g/t)

Ounces

3,314,900

1.47

156,753

887,547

1.39

39,635

4,202,447

1.45

196,388

1Calculated using

a 0.7g/t cut

-off grade

FFR confirms that it is not aware of any new information or data that materially affects the information contained in ASX announcement dated 17 March 2021 in relation to the above resource estimate. All material assumptions and technical parameters underpinning the mineral resource estimates continue to apply and have not materially changed.

Competent Persons Statement

The information in this announcement that relates to Exploration Results and Mineral Resources is based on and fairly represents information and supporting documentation reviewed, collated and compiled by Mr Simon Lawson, a full-time employee and the Managing Director of Firefly Resources Ltd. Mr Lawson is a professional geoscientist and Member of The Australian Institute of Mining and Metallurgy and has sufficient experience relevant to the style of mineralisation and type of deposit under consideration, and to the activity which has been undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Exploration Results, Mineral Resources, and Ore Reserves. Mr Lawson consents to the inclusion in this announcement of the matters based on this information in the form and context in which it appears.

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