Musgrave Minerals : New high-grade gold trend identified in regional RC program

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ASX RELEASE

6 January 2022

ASX: MGV

New high-grade gold trend identified

in regional RC program

• Regional exploration RC drilling at Cue continues to intersect further gold mineralisation identifying a new mineralised trend 400m east of Break of Day, called the Waratah trend
• Three new mineralised gold targets identified through broad 200m spaced drilling at Waratah. Significant intersections include:
  o 2m @ 28.1g/t Au from 78m (21MORC359), including; o 1m @ 53.2g/t Au from 78m
  o 2m @ 6.1g/t Au from 87m (21MORC361) o 2m @ 5.8g/t Au from 31m (21MORC350) o 5m @ 2.6g/t Au from 36m (21MORC352) o 8m @ 1.7g/t Au from 33m (21MORC344) o 5m @ 2.0g/t Au from 98m (21MORC370)
• Follow-upRC drilling at Amarillo (previously named Target 14), 1.2km south-west of Break of Day returns high-grade gold, including:
  o 9m @ 8.7g/t Au from 44m (21MORC371) including; o 2m @ 35.1g/t Au from 51m
  o 3m @ 11.3g/t Au from 45m (21MORC375)
• Assay results pending for ~100 drill holes across multiple target areas
• A program of RC drilling at the new high-grade zone, named the Mosaic Lode, where previous drilling intersected 15m @ 111.6g/t Au south of White Heat, has been completed with assays due early February
• Drilling will re-commence at site on or around 10 January 2022

Musgrave Minerals Ltd (ASX: MGV) ("Musgrave" or "the Company") is pleased to report further strong assay results from reverse circulation ("RC") drilling at the Amarillo Prospect (previously Target 14), 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 flagship Cue Gold Project in Western Australia's Murchison district (Figure 1).

5 Ord Street, West Perth WA 6005

Telephone: [phone] Fax: [phone]

Web: www.musgraveminerals.com.au Email: [e-mail]

ACN: 143 890 671

Musgrave Managing Director Rob Waugh said: "These are further strong results and support the upside prospectivity of the Cue Project. We continue to define new targets and hit new mineralised zones. The new Waratah zone is only 400m east of Break of Day. All new intersections sit outside the mineral resource estimates and the drill spacing is still very broad at ~200m with further infill required."

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"Interestingly, Waratah was a lower priority target which coincided with the proposed waste and tailings storage facility locations in the early PFS

design works. This preliminary design will obviously now need to be re-assessed."

"The potential for future resource additions at Big Sky and White Heat will

likely impact design

planning as well. Resource RC drilling and

diamond drilling will recommence in the new year at Big Sky. This work will enable a maiden Big Sky resource estimate in late Q2 2022".

"The results show that exploration continues to

identify strong gold mineralisation in previously untested and poorly tested areas as demonstrated by the newly identified near

surface high grade Waratah gold trend east of Break of Day."

This new gold mineralisation 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 (previously named Target 14) with additional follow-up drilling to continue in late January.

Figure 1: Regional plan showing drill hole collars and significant prospect locations

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Waratah Trend

The Waratah trend is approximately 400m east of and runs parallel to the Lena/Break of Day corridor (Figure 1) . 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 (Figure 2).

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:

1. 2m @ 28.1g/t Au from 78m (21MORC359), including;

1. 1m @ 53.2g/t Au from 78m

1. 2m @ 6.1g/t Au from 87m (21MORC361) o 2m @ 5.8g/t Au from 31m (21MORC350) o 5m @ 2.6g/t Au from 36m (21MORC352) o 8m @ 1.7g/t Au from 33m (21MORC344) o 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 mineralisation (Figure 3) including:

1. 9m @ 8.7g/t Au from 44m (21MORC371) including;

1. 2m @ 35.1g/t Au from 51m

1. 3m @ 1.4g/t Au from 45m (21MORC372) o 3m @ 11.3g/t Au from 45m (21MORC375)

Basement follow-up drilling will be planned for late January. Drill hole and assay details are presented in Tables 1a and 1b.

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Figure 2: Inset plan showing the Waratah trend, mineralised zones, new drill hole collars and new assay results

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Figure 3: Plan showing the Amarillo Prospect (previously referred to as Target 14) with follow-up drill collars and significant assays

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 (see MGV ASX announcements dated 17 February 2020 and 11 November 2020). The new gold discoveries at White Heat, Big Sky, Amarillo, Waratah and Mosaic are all outside the existing resource areas.

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