Labyrinth Resources : and Denain Gold Project Update, Canada

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ASX ANNOUNCEMENT

10 March 2022

LABYRINTH AND DENAIN GOLD PROJECT UPDATE, CANADA

MULTIPLE INTERCEPTS OF MORE THAN 100g/t IN ADDITIONAL HISTORICAL ASSAY DATA OBTAINED FOR LABYRINTH GOLD PROJECT'S EXISTING FOREIGN ESTIMATE

Key Points

• Labyrinth has obtained high-grade historical assay data which further underpins its strategy to establish a significant JORC-compliant Resource at its flagship Labyrinth Gold Project in Quebec, Canada
• The historical assay data was previously provided to, and announced by, Labyrinth Resources as 45g/t top-cut values included in the project's existing NI43-101 foreign estimate, which stands at 2.1Mt at 7.1g/t for 479,000oz of gold1
• However, the raw historical data now in the possession of Labyrinth (summarised in Table 1 at page 2 of this announcement) contains numerous assays of more than 100g/t, including

1. 2.39m @ 207.8g/t from 218.8m in hole RS-02-07 (Boucher) including 0.3m @ 619.6g/t and 0.6m @ 505.1g/t

1. 2.26m @ 59.6g/t from 40.11m in hole TF-83-54 (Talus) including 0.4m @ 349.4g/t

• 1. 0.61m @ 132.2g/t from 245.1m in hole RU-03-08 (Boucher)
• The first three holes of Labyrinth's sixteen-hole underground drilling program have intersected the project's highly prospective Boucher target at modelled depth, presenting strong shearing, silica and sericite alteration associated with quartz veining. Sulphides in the form of pyrite and chalcopyrite occur within the main Boucher quartz vein, as well as parallel veinlets showing scope for wider intercepts
• At Labyrinth's Denain prospect in Quebec, initial assays confirm shallow high- grade gold presence, as well as evidence of associated elevated copper, in a complex geological setting at the abutment of the Abitibi greenstones against the Grenville Front. Structural controls on mineralisation appear to be varied based on lithological settings. Highlights include

1 Refer to ASX announcement 2 September 2021 (Initial Market Announcement) for foreign estimate information, JORC 2012 tables and competent person statement. The Company is not aware of any new information or data that materially affects the information included in the 2 September release. All material assumptions and technical parameters continue to apply and have not materially changed.

Cautionary Statement: the estimates of mineralisation in respect to the Labyrinth and Denain gold projects reported in this announcement are "foreign estimates" for the purposes of the

ASX Listing Rules, and accordingly:

• the estimates are not reported in accordance with the JORC Code;

• a competent person has not done sufficient work to classify the foreign estimates as mineral resources or ore reservices in accordance with the JORC Code; and

• it is uncertain that following evaluation and/or further exploration work that the foreign estimates will be able to be reported as mineral resources or ore reserves in accordance with the JORC Code.

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1. 1.0m @ 17.91g/t Au and 0.51% Cu from 200m in hole 22-14 (South Vein) o 1.0m @ 9.73g/t Au and 0.28% Cu from 45m in hole 21-07 (South Vein) o 0.8m @ 10.55g/t Au from 313m in hole 21-02 (North Vein)

Labyrinth Resources (ASX: LRL) ('Labyrinth' or 'the Company') is pleased to provide an update on exploration activities at the flagship Labyrinth Gold Project ('Labyrinth GP') and the Denain gold prospect ('Denain'), including the receipt of uncut historical assays, many of which grade more than 100g/t Au.

These very high-grade additional historical assays strengthen the Company's confidence in its strategy to generate a significant JORC resource for the Labyrinth GP.

They are important because the previously available results, used to compile the existing 2010 non-JORCNI43-101 foreign estimate, were top-cut to 45g/t.

Labyrinth Chief Executive Matt Nixon said the uncut additional assay data confirmed the significant high-grade nature and potential of the Labyrinth Gold Project.

"These outstanding historical assays indicate a conservative top-cut value was utilised and reinforces the potential for a significant gold resource to be unlocked through our aggressive exploration strategy," Mr Nixon said.

"We are also delighted to have intercepted the Boucher target at modelled depth with our first three holes of the underground drilling program and the core is visibly very pleasing. We now eagerly await assay results for the current drilling campaign, expected to be expedited through our agreement with nearby Swaslabs, Ontario."

Labyrinth Gold Project

In late February 2022, Labyrinth Chief Executive Matt Nixon and Chief Geologist Andrew Chirnside spent a week on site at the Labyrinth Gold Project and interrogated previously unavailable historical data, both paper-form and digital. As a result, the original database containing all exploration data for the project up to and including 2003 was obtained, containing the uncut results for very high-grade intersections on the Boucher, Talus, McDowell and Front West lodes (previously the Company was only able to access the result values used by SGS in the 2010 NI43-101 foreign estimate, which were all top-cut at a conservative 45g/t).

The updated historic results based on the additional data are summarised in Table 1 and validate the high-grade nature of multiple lode systems at the Labyrinth Project, with the Company now intending to also replicate some of these significant intersections with the current diamond drilling campaign that commenced in mid-February (refer ASX announcement 15 February 2022).

Table 1 Additional historic uncut assay data for Labyrinth Gold Project

	Drill Hole																		Hole			From			To			Width			Au
			Easting			Northing			RL			Azi			Dip			Length
	ID															(m)			(m)						g/t
																		(m)
	RS-02-07	6190.7		2680.4		10002.6		4		-15		233.2		218.8		219.2		0.4		619.6
																					220.1		220.6		0.5		505.1
	TF-83-54	6129.5		2560.3		9909.5		0		-75		54.9		41.4		41.8		0.4		349.4
	RU-03-08	6024.3		2548.3		9914.0		0		0		340.8		245.1		245.7		0.6		132.2
	TH-19	6385.6		2642.0		9916.8		166		45		25.9		22.1		22.3		0.2		120.0
	NB-18	5996.9		2444.5		9997.3		0		-69		287.4		63.8		65.2		1.4		67.9
	TF-83-04	6093.6		2504.2		9994.8		0		-60		182.6		99.6		100.0		0.4		60.0
	RU-02-08	6267.0		2667.6		9899.7		336		-45		235.3		204.8		205.4		0.6		52.0
	RS-06-01	6057.5		2321.0		9981.5		350		-60		570.6		490.8		491.6					51.8

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Figure 1 Additional historic uncut assay data for Labyrinth Gold Project

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The underground exploration campaign primarily targeting the prospective Boucher lode located in the footwall of the mine sequence has produced great initial outcomes, with the first three holes all intersecting the Boucher at target depth. The Boucher structure is presenting as a strongly sheared and silicified package with multiple stages of veining evident with the gold mineralizing event having abundant pyrite and chalcopyrite present in fine grained veinlets. Sulphides are most prevalent at the margins of the quartz veins as well as styolites within the veins. Of particular interest is the presence of parallel subsidiary veins with the same mineralization and appearance of the Boucher vein suggesting that there may be elevated gold grades into the hangingwall and footwall of the currently modelled structure.

Denain

The surface diamond drilling campaign was recently completed at the Denain gold prospect, with a total of 4,018m drilled from 22 holes, ensuring that Labyrinth importantly delivered the agreed exploration expenditure of CAD $1.085 million to satisfy the flow-through commitment incurred by previous owners G.E.T.T Gold (TSX-V: GETT). Satisfying this exploration commitment enables title for the Labyrinth and Denain tenements to be legally transferred to the Company once remaining tranche payments are paid in May and November 2022.

The Company has now received 62% of assays from the Denain exploration campaign (including the surface grab samples conducted in late 2021), with 1,500 assays still outstanding. The results to date confirm the presence of prospective high-grade, shallow gold mineralisation commencing at surface outcrops at the property, which is well located at the eastern end of the renowned Cadillac - Larder Lake Fault, as well as indication of elevated copper in South Vein intercepts. A full table of material results can be found in Schedule 1.

Figure 2 Significant South Vein intercepts

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Figure 3 Significant North vein intercepts

The Denain prospect is presenting as a highly prospective but complex mineralogical system, likely attributable to the influence of late-stage faulting associated with the Grenville Front. Mineralisation appears to occur in all rock types at the prospect with the Quartz Porphyry/Agglomerate contact seeming most favourable. As this contact is irregular in nature it requires further work to identify the areas that are most conducive to hosting high grade gold. Historical drilling has limited intercepts below 100m so the reported results in this announcement are encouraging that they show the system continues to host mineralisation at approximately 200m from surface. Labyrinth looks forward to receiving the remaining results and conducting a full technical assessment of the mineralisation presence and a subsequent strategy on future exploration.

Update of Contact Details

The Company advises that, effective immediately, the Company's contact phone number will change to the following:

[phone]

All other contact details remain the same.

This announcement has been authorised and approved for release by the Board.

Investor Enquiries	Media Enquiries
Matt Nixon	Paul Armstrong
Chief Executive Officer	Read Corporate
[e-mail]	[e-mail]

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