Firefly Resources : 28/01/2021 - Firefly drilling highlights scale at Yalgoo Gold Project

ANNOUNCEMENT 28 January 2021

Significant intercepts 300m north of Melville Deposit

highlight potential scale of Yalgoo Gold Project

Thick shallow gold intercepts at the Applecross Prospect delineate a new zone of BIF-

hosted mineralisation with similar geometry to the Melville Deposit.

Key Points:

• Assays returned from 11 RC drill-holes completed prior to Christmas 2020 and designed to test along strike and up-dip resource extensions at the Melville Gold Deposit.
• Strong results received from six holes completed at the Applecross Prospect, located 300m along-strike to the north of the Melville Deposit, including:

16m @ 1.23g/t from 33m including 3m @ 3.60g/t and 10m @ 1.21g/t including 1m @ 3.58g/t from 61m (BIF-hosted gold) (FARC004); and

5m @ 0.91g/t from 22m and 3m @ 1.05g/t from 33m (BIF-hosted gold) (FARC0003); and

4m @ 1.57g/t from 166m (Porphyry-hosted gold) (FARC0002); and

1m @ 2.51g/t from 113m and 1m @ 1.31g/t and 5m @ 1.27g/t from 138m (Porphyry- hosted gold) (FARC0001)

• The gold mineralisation at Applecross is hosted in Banded-Iron-Formation (BIF) at shallow depth, with similar geometry to the Melville Gold Deposit. The recent drilling also encountered mineralised porphyry at depth, 50-100m east of the BIF unit.
• Both mineralised rock types at Applecross are adjacent to local-scalenorth-west-striking, steep faults as seen at the Melville Gold Deposit, further reinforcing the Company's genetic model for fault-relatedporphyry-intrusive gold mineralisation over the Yalgoo Gold Project.
• Two RC drill-holes were also completed into the northern extents of the Melville Deposit to test an up-dipin-fill opportunity and an interpreted down-dip structural offset for the upcoming JORC 2012 Resource update. The holes intersected:
  26m @ 1.20g/t (including 2m @ 5.8g/t and 3m @ 2.02g/t) from 55m (FMRC0034) (up- dip); and
  1m @ 2.03g/t from 73m and 4m @ 0.92g/t from 100m (FMR0035) (down-dip).
• These results confirm the Company's geological interpretation for the local area and strengthen the outer extent of the wireframe for the upcoming Mineral Resource update.
• The final three RC drill-holes of the 2020 campaign were drilled at wide spacing along the eastern margin of the Melville resource area targeting potential easterly up-dip extensions to the resource.
• The best result from the eastern extensional drilling was 7m @ 1.77g/t including 2m @ 4.13g/t from 14m (FMRC0036) (representing a new up-dip extension to resource).
• Firefly has now drilled 6,200m of a planned 10,000m of RC drilling at Melville, with drilling scheduled to resume next week at the Applecross prospect and ramp-up during February with a second RC rig arriving on site shortly afterward.

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ANNOUNCEMENT 28 January 2021

Firefly Resources Ltd (ASX: FFR; Firefly or the Company) is pleased to report significant assays from the third phase of its planned 10,000m maiden drill program at the 100%-owned Yalgoo Gold Project in Western Australia (see Figure 1).

This announcement details results from the eleven Reverse Circulation (RC) drill-holes at the Melville Gold Deposit prior to Christmas 2020, targeting northern extensions of the mineralisation and easterly up-dip extensions of the existing Resource.

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.

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ANNOUNCEMENT 28 January 2021

Six of the 11 RC holes outlined in this announcement were drilled approximately 300m north of the Melville Gold Deposit at the Applecross Prospect. The six holes were drilled to test for potential northern extensions to the upcoming Melville JORC resource update and to follow-up several historical drill intercepts with contrasting geology logs and 4m composite assays (see Figures 2 and 3 - Section "AA").

Figure 2. Plan view of the Melville Gold Deposit with historical drilling, recent Firefly RC drill-hole locations and the wider mineralised Melville

corridor targeted by the recent phase of drilling. Note that sections "AA" and "BB" are detailed in Figures 3 and 4 respectively.

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ANNOUNCEMENT 28 January 2021

The six holes drilled at Applecross have defined a thick mineralised BIF-unit at shallow depth with similar geometry to Melville (FARC002, FARC003 and FARC004), as well as a separate mineralised porphyry "swarm" at depth located 50-100m to the east (FARC001).

The most westerly holes (FARC005 and FARC006) drilled at the Applecross prospect have defined a probable local-scale structural offset in the west of the section - which also fits with the Company's geological interpretation of the regional architecture (see Figure 3).

Figure 3. Cross-section "AA" through the Applecross Gold Prospect looking north. Note the thick shallow mineralised BIF unit similar to that

seen at the Melville Gold Deposit 300m to the south and the presence of mineralised porphyry at depth in the east.

Drilling further south in the northern part of the Melville Gold Deposit targeted an in-fill opportunity up- dip of existing historical holes, as well as down-dip on the same northing to ensure that the Company's geological interpretation is as accurate as possible in preparation for the upcoming JORC resource update for the Melville Gold Deposit (holes FMRC0034 and FMRC0035, see Figure 2 for collar location).

FMRC0034 intersected 26m @ 1.20g/t from 16m, proving up a substantial in-fill to the current gold mineralised BIF unit in the area, while FMRC0035 returned a couple of thin intersections from depth, illustrating a probable small-scale offset of the Melville BIF at depth.

This information will be used in the estimation of the upcoming Melville JORC Mineral Resource.

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