GBM Resources : Malmsbury Drilling Update

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9 February 2022

Malmsbury Drilling Update

KEY POINTS

• Three diamond drill holes of the Phase 1 drilling program are complete at the Malmsbury JV Project, testing a series of structural/lode targets.
• Drill holes have intersected mineralised zones at the predicted target location (no analyses have been received to confirm the significance or otherwise of this mineralisation).
• Program includes resource extension and metallurgical drilling on the Leven Star Reef.
• Current JORC (2012) resource at Leven Star is 820 kt at 4.0 g/t Au for 104,000 ounces gold.
• Approximately 1,750 metres drilling planned on Belltopper Hill and 1,000 metres on the Drummond North goldfield 1.

GBM Managing Director and CEO, Peter Rohner, commented: "It is great to see drilling again at the

Malmsbury Project after a long hiatus. The geological team of GBM and Novo have completed some excellent work over the last 12 months to significantly advance our understanding of the structural controls, lithology and intrusive overlays. 3 holes have been completed and assays will start to follow later this quarter which we are all looking forward too."

Novo Non-ExecutiveCo-Chairman, Dr. Quinton Hennigh, commented: "We are pleased with recent progress at the Malmsbury Project and look forward to completing the Phase 1 diamond core drilling program in due course."

GBM Resources Limited (ASX: GBZ) (GBM or the Company) advises that it has completed three diamond drill holes as part of the Phase 1 diamond core drilling program at the Malmsbury Project JV in central Victoria. The Malmsbury Project is subject to a Farm In and Joint Venture agreement with Novo Resources Corp. (GBM 50%, Novo 50%).

Work to date has identified several gold mineralisation target styles present on the Malmsbury Project that include "Fosterville-type," structurally controlled orogenic targets, kilometre scale fault zones and breccias and an intrusion-related(IRGS) /intrusion-hosted-gold system associated with the mineralized Missing Link monzogranite at Belltopper Hill 1.

Phase 1 diamond drilling by Deepcore Pty Ltd commenced on RL6587 for the Malmsbury JV on 14 December, 2021. The proposed program at Belltopper Hill consists of eight diamond holes for approximately 1,750 m and includes the following:

• Five holes (~660 m planned) testing the Leven Star Reef (current JORC Resource area) as part of the tenure expenditure commitment requirements;

1 Refer to ASX: GBZ release 17 December 2021.

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• One deeper exploration focused hole testing an extension to the Leven Star Reef and potential extensions/structural intersections with the Missing Link, Antimony and Panama/Panama West Reefs;
• One drill hole testing the mineralized Missing Link monzogranite and Missing Link Reef at depth; and
• One drill hole testing the complex horsetail fault zone associated with the Never Despair Reefs and deep workings north of the historic Panama Mine

To date three holes are complete for a total of 609.1 m. It is interpreted that the drill holes have intersected their predicted target structures (Leven Star Reef and associated splays, Missing Link and Panama Reefs). In addition, several zones of intense alteration, disseminated and stringer sulphide mineralisation have also been intersected.

Of high significance is the confirmation of an anticlinal fold hinge position in MD14. This important structure was identified during recent detailed mapping coupled with structural data synthesis and is located within the highest priority Au-As-Sb-Mo soil anomaly that also hosts the Missing Link monzogranite. Anticlinal folding is key element in the structural architecture of the "Fosterville-style," gold mineralisation. This structural setting highlights the opportunities for multiple gold mineralisation styles expected to be discovered and advanced across the project area. Refer to table 3 below.

Table 1: Collar table of drill holes from the Malmsbury Project.

HOLE ID	DEPTH	EASTING	NORTHING	RL	AZIMUTH	DIP
MD13	112.4	263796	5880085	460	312.6	-30.9
MD14	365.5	263798	5880084	460	268.5	-50.1
MD15	131.2	263851	5880120	453	303.8	50.2

Note: Co-ordinates recorded in MGA94_Z55 projection and are based on handheld GPS.

Samples from MD13 have been dispatched for analyses, with results expected in late February or early March 2022.

Figure 1:Deepcore drill rig in operation on hole MD16 at Malmsbury (Belltopper Hill). This hole is testing the Leven Star Reef.

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Figure 2: Completed and Planned Holes at Belltopper Hill - Malmsbury showing detailed surface geology.

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Additional work planned for 2022 includes completion of an extensive gold and multi-element soil program covering over 50% of the Retention Licence area (currently underway), further mapping and rock chip and mine dump sampling and the completion of a detailed 2D/3D IP survey. The IP will be designed to detect disseminated mineralisation/alteration in quartz lode wall rocks and associated with the IRG system.

Figure 3: Section for Drill hole MD14 9970N (local grid) at Leven Star Prospect.

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Figure 4: Geological interpretation showing gold targets on the northern section of the Malmsbury Project.

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