Firefly Resources : 24/02/2021 - Firefly commences 30,000m drilling campaign

Firefly commences 30,000m drilling campaign targeting aggressive resource growth at Yalgoo Gold Project

Maiden JORC 2012 Resource for Melville Deposit imminent, with expansive drilling effort underway aiming to establish JORC Resources across a further seven prospects in 2021

Key Points:

• • Two RC rigs currently on-site drilling 7,000m of close-spaced Grade Control (GC) drill-holes at the Melville Gold Deposit.

• • The GC drilling is designed to prove up the potential economic extent of the extensive flat-lying surface gold mineralised zone, or "Oxide Zone", at Melville noted in historic drill-holes and emphasised again during Firefly drilling in 2020.

• • The Oxide Zone extends from surface to 10-12m depth and extends over an area up to 800m long and 300m wide across the upper extents of the Melville Gold Deposit.

• • The results will underpin a JORC 2012 Mineral Resource for the Oxide Zone separate from the overall JORC 2012 MRE for the Melville Deposit, which is on track for delivery next month.

• • A third RC rig will commence drilling in early March targeting JORC 2012 Mineral Resource Estimates at both the Don Bradman (3,600m of drilling) and Applecross (2,000m of drilling)

  Gold Prospects.

• • In addition, Firefly has committed to establishing numerous updated JORC 2012-compliant

  Mineral Resource Estimates across its extensive Yalgoo Gold Project during 2021, including;

  • o Prince George Gold Prospect - updated MRE in Q2 2021

  • o Victoria United Gold Prospect - 5,000m of drilling in Q2 2021

  • o Crescent Gold Prospect - 5,000m of drilling in Q2 2021

  • o City of Melbourne Gold Prospect - 3,000m of drilling in Q2 2021

  • o Brilliant Gold Prospect - 3,000m of drilling in Q3 2021

  • o Eagles Nest "Holland Acquisition" - 3,000m of drilling in Q3 2021

• • Firefly has planned and budgeted 30,000m of RC drilling to deliver at least seven updated or maiden Mineral Resource Estimates from the outlined prospects during 2021.

Firefly Managing Director, Simon Lawson, said: "This is a major commitment to resource development and exploration at Yalgoo, with 30,000m of drilling budgeted, aimed at advancing our existing gold prospects and establishing a robust JORC 2012-compliant Mineral Resource base right across the broader project.

"The journey begins next month with a JORC 2012-compliant Mineral Resource update for the Melville Gold Deposit. As best practice, we currently have an external consultancy reviewing the Melville MRE to ensure independence in the evaluation of our core gold deposit. We expect to complete that work shortly and finalise this cornerstone MRE for release to the market early next month. In the meantime, we also already have several rigs spinning to advance our existing gold prospects through to resource level. Geophysical targetingwork is also underway to deliver new targets and our small and active technical team is out there getting it all done. 2021 is going to be a massive year for Firefly!!"

"Our team is young and aggressive and we know we have an amazing opportunity in front of us. We have a strong plan to deliver results at Yalgoo in 2021 and there are very few of our peers that can say they will produce at least seven JORC-compliant resources across their key project area this year. I am confident that our bold and aggressive approach will continue to deliver results for our shareholders."

Firefly Resources Ltd (ASX: FFR; Firefly or the Company) is pleased to advise it has commenced the first phase of a 30,000m RC drilling campaign aimed at aggressively growing the resource base at its 100%-owned Yalgoo Gold Project in Western Australia (see Figure 1).

Figure 1. Firefly's Yalgoo Gold Project illustrating the Company's regional-scale tenure and applications across the under-explored Yalgoo-

Singleton greenstone belt as well as proximity to multiple gold-specific and gold-capable process plants.

The first phase of Firefly drilling consists of 7,000m of close-spaced Grade Control (GC) drilling across the shallow, flat-lying gold mineralised Oxide Zone, noted in recent Firefly drilling as overlying the key Melville Gold Deposit.

The Oxide Zone drill program consists of 600 small diameter RC drill-holes drilled at a collar spacing of 10m x 10m across the projected extents of the mineralisation. Each GC hole is drilled vertically to 12m depth and sampled at 1m intervals to give maximum data resolution through the thickness of the Oxide Zone.

Two RC rigs are currently on-site conducting this work which is scheduled to continue through to March 2021 and will deliver approximately 7,000 assays for use in the creation of a JORC 2012-compliant Melville Grade Control model by mid-year 2021.

Figure 2. Plan view over colour aerial highlighting the current Grade Control drilling over the Melville Gold Deposit

A second phase of RC drilling beginning in early March 2021 and overlapping with the first phase GC drilling at nearby Melville, will comprise approximately 3,600m of drilling at the advanced Don Bradman Gold Prospect and a further 1,400m at the Applecross Gold Prospect. This drilling will also provide assays for use in producing JORC 2012-compliant Mineral Resources for both prospects by mid-2021.

Figure 3. Regional plan over 1VD magnetics illustrating the priority advanced gold prospects across Firefly's Yalgoo Gold Project