Mila Resources Plc informed that drilling for 2022 is now complete at its Kathleen Valley Gold Project in Western Australia ('Kathleen Valley' or the 'Project') and assays for the first three of the four drill holes completed have been received. Kathleen Valley is located in a region that hosts some of the largest gold projects in Australia, including the adjacent, high-grade Bellevue Gold Project, the high-grade producing Agnew Gold Mine located 50km to the south and the Bronzewing Gold Mine 50km to the northeast. Initial drilling has confirmed consistent, high-grade mineralization and Mila has been focused on expanding this to define sizeable gold-silver resource.

Mila has completed its final drilling campaign of 2022 with four diamond core holes for 1,462.55m being completed during the September-November period. The final hole KVDD0038 was drilled to a depth of 365.5m bringing Mila's total to 26 drill holes for 6,011.35m in the last 12 months since listing on the LSE at the start of November 2021. DHEM has been completed inside holes KVDD0037 and KVDD0038 which are the two deepest holes drilled to date.

DHEM results are currently being processed and interpreted by the Company's consulting geophysicist. The data will be combined with the previous geophysical data and interpreted in conjunction with the existing geological model with the aim of located more sulphide mineralization at depth and along strike from the defined mineralization at the Coffey Deposit. All samples have been cut and submitted for laboratory analysis with the results of the first three holes KVDD0035, KVDD0036 and KVDD0037 just returned from the laboratory.

The results of KVD0038 are still outstanding and are currently in process at the laboratory. Results from the deep holes matched the visual observations showing anomalous pathfinder and base metal elements associated with the observed shearing, alteration, sulphide mineralization and quartz veined zones, defining the structural corridor and fluid pathways that host the Coffey mineralization. The assay results for these recent holes returned disappointing results through these structurally sheared zones.

Ag-Cu-Pb-Zn where still anomalous through these zones along with the As-Ba-K-Sr pathfinder elements, however a maximum result of 0.5m at 1.04g/t Au, 11.60g/t Ag, and 0.55% Cu was returned in hole KVDD0035 from 261.85-262.35m (Table 1). This occurs within a broader 3.95m wide zone (259.55-263.5m) comprising 0.33g/t Au, 4.21g/t Ag, 0.13% Cu & 0.20% Zn. Silver (1.85g/t), Zinc (0.11%) and the pathfinder element where anomalous over an 11m wide zone defining the corridor from 257.55-269.0m.

Holes KVDD0036 and KVDD0037 returned 2 narrow upper and lower anomalous zones within the broader anomalous pathfinder structural corridors. Hole KVDD0038 also intersected two visual structural shear zones in the NE corner of the drilling area and assays are awaiting to confirm if the shear is mineralized in the northern extension of the Coffey structure. The fluid pathway reveals a strong geochemical fingerprint which is anomalous in As, Ba, K and Sr compared to the barren footwall and hanging wall basalts.

This defines a strong structural corridor providing a good vector to mineralization when mapping and interpreting the drilling results. Its normal for gold deposits to pinch and swell, form conjugate shear sets or step over to form new mineralized dilation zones within these structural corridors. The pathfinder elements and the visually deformed structures within the rocks are still present supporting the model that Mila are still in the "root zone" of the structural plumbing system and confident that additional lodes are likely to be present.

Drill core has been sent off for thin section and petrographic works to determine the origin and structural signature of the Coffey Deposit Mila's geologists are still confident that with the pending DHEM results, detailed structural analysis of the data and core collected to date, as well as detailed geochemical analysis of the full assay suite, that the next mineralized zone will be identified given the visual and pathfinder strength of the structural corridor defining the Coffey Shear zone. The work programme for 2023 remains unchanged, with RC drilling and diamond tails planned along strike for 350m towards the NW, potentially extending the shallow mineralization which is untested and open. Deeper diamond drilling will commence following the geophysical, geochemical and structural analysis works, testing for extensions or additions to the mineralized system.

All site rehabilitation has been completed in preparation for the summer rain period which will assist in rejuvenating the native vegetation within the drilling area. All drill sumps, drill pads, sample spoils and closed-out access tracks have been rehabilitated and contoured with the assistance of the Tjiwarl Aboriginal Rangers. During Mila's three drilling campaigns, the Company is still seeing the greater potential of the Coffey Au-Ag Deposit.

Coffey has grown significantly in size, width and grade compared to the initial predrilling resource that Mila listed on. The Company is still optimistic that it will be able to upgrade its JORC Resource for Coffey next year to included Indicated as well as Inferred category JORC material and extending the mineralization along strike to the NW where it remains open and untested. Geochemical modelling of the Coffey deposit demonstrates a strong relationship between the pre-existing sulphide horizon which is interpreted to be a VMS-style horizon derived from a black-smoker on the ancient seafloor.

The black-smoker deposited Ag-Cu-Pb-Zn bearing sulphide mineralization between two hosting pillow basalt flows, which formed the Mt Goode Basalt unit that hosts the Coffey Deposit and the Bellevue Gold mineralization within the Yakabindie Domain. The Yakabindie Domain correlates to the Kambalda Sequence of the Kalgoorlie Terrane to the south. To the east of the Yakabindie Domain, crustal scale structural deformation occurred along the Keith-Kilkenny Shear which stretched over 700km from Norseman, through Kalgoorlie to Wiluna, forming the rich goldmines throughout the Goldfields region.

The Miranda and Emu Shears formed as local structures paralleling the major Keith-Kilkenny Shear with the Highway and Yakabindie Shears forming as local splays off the Miranda Shear, resulting in gold bearing fluids penetrating the Mt Goode Basalts.