Golden State Mining : Anomalous Target Trends at Yule

ASX ANNOUNCEMENT

23 February 2022

ASX Code: GSM

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Anomalous Target Trends at Yule

High prospectivity in under-explored Mallina Basin in the Pilbara

Highlights

• Anomalous gold from first batches (approx.75% of program) of regional AC drill assays
• Further consistent gold encouragement at Target 1 area
• Yule East - Gold and base metal pathfinders identified in inaugural drill program
• Lithium RC drill program planned for early Q2 2022
• • following up on previously identified lithium pathfinders

Gold, lithium, and base metals exploration company Golden State Mining Limited (ASX code: "GSM" or the "Company") is pleased to announce the first batch of composite assay results (approximately 75% of program results) from its regional phase three reconnaissance air-core ("AC") drill program at the Yule Project in the Mallina Basin. GSM is continuing its interpretation of anomalous and pathfinder element results with well-regarded industry consultants to determine the significance of these latest gold intercepts and their geological host rocks to vector in on prospective trends and structural corridors and to plan a follow-up drill program strategy.

Figure 1: Target 1 plan at Yule South showing significant gold results

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Golden State's Managing Director, Michael Moore, commented: "GSM has long recognised the gold and lithium potential of the Mallina Basin with the tenement acquisition prior to the Hemi discovery. We have spent the past three years progressively building a regionally significant exploration footprint and database for the company to exploit. The first two AC programs have justified our belief in the gold and lithium potential at Yule and this recent air-coreprogram, including the inaugural program at Yule East has continued to validate our targeting strategy by delivering further gold and pathfinder anomalism for follow up drilling. With less than one drill hole per square kilometre drilled so far, the full exploration potential at Yule is still to be realised. The company will continue the charge at this under-exploredproject in its quest to deliver a new discovery."

Yule Project 100% GSM

Yule Phase Three AC Program

The first assay results have been received for eleven target areas drilled during the phase three reconnaissance program (refer to ASX announcements dated 22 November 2021 & 5 January 2022 and Figure 2). A total of 3,990 samples were submitted for gold fire assay over 4 metre composite intervals and single metre end of hole ('EOH') gold and multi- element assays. To date, 3003 results have been received with the remainder due by mid-March.

At Yule South, composite results have been received for additional drilling at Target 1 East and new AC drilling at Target 1, located approximately 2.3 kilometres to the west (Figure 1). The results from additional drilling at Target 1 West, Target 2A and Target 5 remain outstanding. At Yule East, results have been received for all of the target areas from GSM's first reconnaissance drill program on the tenement (Figure 3).

All reconnaissance program holes were drilled on nominal 160 metre centres to blade refusal or to the limit of available drill rods (156 metres maximum) on regionally spaced drill traverses. Phase three drilling has returned several anomalous four and six-metre composite intervals greater than 100ppb gold.

A table of all significant gold and pathfinder intercepts is provided in Appendix 1.

Yule South

Target 1 East

Additional drilling at this target continued to probe a diorite intrusive and structural corridor previously discovered in phases 1 & 2 air-core programs. The best gold intersection occurred in a weathered saprolite horizon in hole 21GSYSAC0317 with 4m @ 200ppb from 30 metres. In addition, transported cover related gold mineralisation was intersected in hole 21GSYSAC0311 within an interpreted paleochannel containing a ferruginous grit host with 6m @ 190ppb from 24 metres. This shallow paleochannel anomaly requires follow-up drilling to test extent and potential gold source.

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Target 1

Reconnaissance AC drilling at this location was designed to target a south-east trending structural corridor containing potential mafic units and intrusives interpreted from aeromagnetic data. The best bedrock gold intersection (Figures 1 & 2) occurred near the end of hole 21GSYSAC0341 in a slatey fine-grained metasediment with pyrite with 1m @ 120ppb from 89 metres. Several anomalous gold intersections were also encountered at or near surface in weathered metasediments. The best result was recorded in hole 21GSYSAC0338 in a weathered arkosic saprock unit with 4m @ 200ppb from 21 metres.

GSM will follow up on the interpretation of the bedrock intersections and the considerable potential of paleo-channel related gold mineralisation in this area due to its proximity "downstream" of the Hemi gold deposit.

Figure 2: Target 1 Section showing significant gold results.

Yule East

GSM's assay results have now been received for all target areas at Yule East (Figure 3 & 4). Details of all significant intercepts are provided in Table 1.

GSM is investigating a possible link between the two gold intersections at Areas 1 & 2 potentially occurring within the same structure (Figure 3). Further magnetic modelling and interpretation will be completed to optimise any follow up drill orientations. A potential interpretation of these +100ppb Au intercepts is that they are associated with a NW-SE trending structure which is poorly tested and remains open to the NW and SE.

The additional gold and potential base metal pathfinder anomalism (Figure 4) is consistent with the results of previous drilling (refer to ASX announcements dated 8 January 2020 & 4 December 2020) along the YRSZ (Figure 3). GSM will continue working with industry consultants to consider this anomalism as potential vectors to economic mineralisation and understand the geological setting in which it may occur in the Mallina Basin.

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Table 1: Details of Significant Intercepts at Yule East

Name	Target Interpretation	HoleID		Significant Intercepts	Host
	Major fault intersection of northerly trending YRSZ	21GSYEAC0005		1m @ 302ppb Au from 114 metres	Laminated, chloritic schist sequence with quartz
Area 1	and NW striking thrust fault zone near a granite				veining
	contact.
Area 2	As above	21GSYEAC0018	8m	@ 136ppb Au from 83 metres	Similar to above
		21GSYEAC0027	4m	@ 8042ppb Ag, 811ppm Cu, 1076 ppm	Arkose pyritic metasediment
			Zn, 344ppm Pb within a broader elevated
			zone from 118 metres.
	Complex magnetic high occupied by a strongly	21GSYEAC0038	4m	@ 1322ppm As from 37 metres	Sheared arkose metasedimentary unit just below a
Area 3	deformed ultramafic rock with possible BIF units in		1m	@ 166ppm As from 99 metres	fractured shear zone
	NE trending dilation zones
		21GSYEAC0039	1m	@ 181ppm As from 113 metres	Arkose metasediment
		21GSYEAC0046	1m	@ 4778 ppm Ba, 248ppm Cu & 259ppm	Sheared arkose metasediment below a fractured
			Co from 75 metres	shear zone
Area 6	Major fault intersection between a north-east	21GSYEAC0053	2m	@ 168ppm As & 241ppm Cu from 112	Chloritic schist with quartz veining
trending structure and the YRSZ		metres
		21GSYEAC0057	20m @ 347ppm As & 117ppm Cu from 62	Limonitic metasediment with quartz veining
	Dilation zone with an Isolated magnetic anomaly		metres
Area 7		4m	@ 419ppm Cu & 1102ppm BA from 70	As above
and an intersection of multiple structures
		metres
		21GSYEAC0064	16m @ 353ppm Cu from 40 metres	Ferruginous & kaolinised metasediment saprock
	Dilational zone along major north-east trending fault	21GSYEAC0074	4m	@ 442 As & 104ppm Cu from 34 metres	Limonitic metasediment with abundant clays
Area 8	at the western edge of the YRSZ near a granite	21GSYEAC0075	1m	@ 113ppm As from 95 metres	Siliceous chloritic metasediment with
	contact
				weathered Fe laminations
	Isolated magnetic body adjacent to a non-magnetic	21GSYEAC0082	1m @ 2122ppm Ba from 14 metres	weathered granitoid
Area 9
intrusive
	21GSYEAC0082	1m @ 1785ppm Ba from 20 metres	weathered granitoid
Area 10	Isolated magnetic body adjacent to an	21GSYEAC0090	1m @ 1085ppm Ba from 23 metres	Increasingly biotitic coarse grained granitoid,
interpreted non-magnetic intrusive
*red text are EOH gold or potential pathfinder anomalies

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Figure 3: Yule East plan showing significant gold and gold pathfinder results.