Musgrave Minerals Ltd. reported further strong assay results from reverse circulation (RC) drilling at the Amarillo Prospect, west of Break of Day and additional gold mineralisation identified along a new zone (Waratah zone), 400m east of Break of Day. Both areas are on the Company's 100% owned ground at its Cue Gold Project in Western Australia's Murchison district. This new gold mineralization is near surface, defined in three prospective zones and remains open down dip.

In addition, Musgrave is continuing to define further high-grade gold in the regolith at the Amarillo Prospect with additional follow-up drilling to continue in late January 2022. Waratah Trend: The Waratah trend is approximately 400m east of and runs parallel to the Lena/Break of Day corridor. It is interpreted to extend for over 4km of strike with gold mineralisation identified in at least three separate zones that are individually between 200m and 400m of strike.

The mineralisation is hosted within a sequence of sedimentary iron formation and dolerites. Mineralisation remains open down plunge and is also open to the south in Zone 3. Twenty-seven RC drill holes were drilled to test this new corridor with a highlight of significant results listed below and presented in Tables 1a and 1b. Intersections include: 2m @ 28.1g/t Au from 78m (21MORC359), including; 1m @ 53.2g/t Au from 78m; 2m @ 6.1g/t Au from 87m (21MORC361); 2m @ 5.8g/t Au from 31m (21MORC350); 5m @ 2.6g/t Au from 36m (21MORC352); 8m @ 1.7g/t Au from 33m (21MORC344); and 5m @ 2.0g/t Au from 98m (21MORC370).

Amarillo (previously named Target 14): At Amarillo, 1.2km south-west of Break of Day (Figure 1) and 800m north of Big Sky, RC drilling continues to intersect significant regolith gold mineralization including: 9m @ 8.7g/t Au from 44m (21MORC371) including; 2m @ 35.1g/t Au from 51m; 3m @ 1.4g/t Au from 45m (21MORC372); 3m @ 11.3g/t Au from 45m (21MORC375); Basement follow-up drilling will be planned for late January 2022. Cue Project: The Cue Gold Project is located approximately 30km south of the township of Cue in the Murchison district of Western Australia. The Lena and Break of Day deposits are only 5km from the Great Northern Highway, approximately 600km north of Perth.

The current resource estimate for the Cue Gold Project totals 6.4Mt @ 3.2g/t Au for 659koz including the Break of Day deposit (797kt @ 10.2g/t Au for 262koz contained gold) and the Lena deposit (4.3Mt @ 2.3g/t Au for 325koz contained gold) located 130m to the west of Break of Day. The new gold discoveries at White Heat, Big Sky, Amarillo, Waratah and Mosaic are all outside the existing resource areas. Ongoing Activities: Musgrave 100% tenements: All on site drilling was temporarily suspended for the Christmas-New Year break.

Drilling will recommence around January 10, 2022. Initial follow-up drilling of the new high-grade gold lode (the Mosaic Lode) identified south of White Heat is complete with assays due in early February 2022. Resource definition diamond drilling at the Big Sky Prospect is continuing with further assay results from RC drilling expected in February.

The aim is to deliver a maiden Mineral Resource estimate at Big Sky in the second quarter of 2022. RC pre-collars for resource conversion diamond drilling at Break of Day and Lena have commenced with diamond tails to commence in February 2022. A regional aircore program is underway to test the southern extension of the prospective West Island dolerite identified on the Evolution JV to the north.

Works to progress the prefeasibility level studies at Break of Day and Lena are ongoing with mining studies, environmental monitoring and assessments, metallurgical, processing, design and geotechnical test work continuing. Evolution JV: Follow-up diamond drilling on Lake Austin to test the basement beneath the new regolith gold mineralisation identified in recent aircore drilling at West Island will be ongoing following a Christmas-New Year hiatus. Further assay results for diamond drill holes at West Island are pending.

Assay results for the recently completed aircore drilling program on Lake Austin are pending.