Nagambie Resources : Costerfield-Mine-Style Gold-Antimony Target at Nagambie Mine

ASX ANNOUNCEMENT	3 MARCH 2022

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HIGH-GRADE,COSTERFIELD-MINE-STYLE,GOLD-ANTIMONY TARGET BELOW THE WEST PIT AT THE NAGAMBIE MINE

A spectacular-looking intersection in 2006 of multiple massive stibnite veins with gold grades up to 24 g/t Au and antimony grades up to 60% Sb from approximately 80m vertically below surface was never explained geologically. With the intersection occurring on Nagambie Resources' 100%-ownedMining Licence MIN 5412, and with access to the treatment plant being built at the Nagambie Mine, a decline-minedevelopment could be rapidly advanced if exploration proved successful.

An initial program of two shallow, scissored, oriented diamond drill holes, to establish the strike and dip of the stibnite veins, and vertical continuity, is planned to commence in coming weeks.

Following the very encouraging initial gold and antimony intersections obtained below the Balaclava Hill open pit at Whroo (reported to the ASX on 18 February 2022), Nagambie Resources has revisited the best economic- grade gold-antimony intersection at its 100%-owned Nagambie Mine and analysed it in detail. Nagambie Resources now considers that the gold- antimony mineralisation below the West Pit will have continuity in a more N-Sdirection, probably NNW-SSE, rather than an E-W direction as had been initially assumed by the exploration management team at the time.

In July 2006, Nagambie Resources (then called Panaegis Gold Mines) commenced a program of 21 wide-spacedreverse-circulation (RC) holes at the Nagambie Mine, all to be drilled north to south and angled under the historic East and West oxide-gold pits. The holes were to be extended at depth with diamond "tails", using the selected UDR650 heavy-duty, multi- purpose drill rig capable of drilling both RC and diamond core holes. The driller, unfortunately, was not instructed to use a core orientation device (either manual or digital) and, as a result, orientation markings were not put on each length of drill core. In terms of staff continuity, all the Panaegis geologists involved in the 2006/2007 drilling program ceased working for the Company in 2007/2008.

The NRP program commenced at the West Pit and the second hole, NRP02, gave exciting assays for both gold and antimony. Table 1 sets out the intercepts from 109.0m to 136.1m down hole using a lower cut-off for antimony of 1.0% Sb, plus two internal intercepts of below cut-off material.

Table 1 Intersections of Gold and Antimony in NRP02

Hole ID	From	To	Sample	Intercept	Gold	Antimony	Gold Equiv.
	(m)	(m)	Type	(m)	Au g/t	Sb %	AuEq g/t*
NRP02#	109.0	117.0	RC	8.0	7.8	10.2	23.9
including	113.0	115.0	RC	2.0	14.4	33.4	67.1
NRP02	117.0	122.7	RC+Core	5.7	0.4	0.1	0.4
NRP02#	122.7	124.3	Core	1.6	12.5	20.2	44.3
NRP02	124.3	129.2	Core	4.9	2.2	0.2	2.4
NRP02#	129.2	136.1	Core	6.9	5.1	12.6	25.0
including	129.2	129.5	Core	0.3	24.0	60.2	119.1
including	131.3	132.3	Core	1.0	22.0	58.7	114.7
NRP02	109.0	136.1	RC+Core	27.1	4.8	7.5	16.7
NRP02#	Above Cut‐Off Only	16.5	7.2	12.3	26.6

* Using a gold equivalent factor of 1.58 (refer section Gold Equivalent Calculation).

NAGAMBIE RESOURCES

www.nagambieresources.com.au

Oriented diamond drilling of Fosterville-style, structural- controlled, high-grade, gold- stibnite underground targets within the Melbourne Zone tenements is being methodically carried out.

Nagambie Resources and Golden Camel Mining (GCM) have received approval for the construction and operation of a gold toll treatment facility at the Nagambie Mine. GCM will pay 100% of all construction and commissioning costs; thereafter all revenues and costs will be shared 50:50.

Underwater storage of sulphidic excavation material (PASS) in the two legacy gold pits at the Nagambie Mine is an excellent environmental fit with a major infrastructure project for Melbourne such as the North-East Link.

Recovery of residual gold from the 1990s heap leach pad using naturally- occurring bacteria is being investigated.

Mining and screening of sand and gravel deposits at the Nagambie Mine to produce sand and quartz aggregate products is also planned.

SHARES ON ISSUE 499,932,346

ASX CODE: NAG Nagambie Resources Limited

ABN 42 111 587 163

Registered, Operations &

Head Office

533 Zanelli Road

Nagambie Vic 3608

(PO Box 339)

Tel: [phone]

[e-mail]

Board

Mike Trumbull (Exec Chairman)

Bill Colvin (Director)

Alfonso Grillo (Dir/Company Sec)

James Earle CEO

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NAGAMBIE RESOURCES LIMITED

Costerfield-Mine-StyleGold-Antimony Target at the Nagambie Mine - 3 March 2022

The gold, antimony and gold equivalent grades in Table 1 are entirely relevant for exploration purposes. However, the intercept lengths in Table 1 are considered to greatly exaggerate the true widths, as explained below. The true widths of the massive stibnite veins and the internal waste intervals will only be calculable after the strike direction (probably NNW) and the dip (expected to be subvertical, as at the Costerfield Mine, 45 km to the west of the Nagambie Mine) of the veining is established by Nagambie Resources. The full intercept length down hole of 27.1m for the mineralisation could have a full true width of only say 10% to 15% of that figure. Nevertheless, metres of true width at the average gold equivalent grade of 16.7 g/t AuEq* (refer Table 1) is clearly exciting by industry standards.

High-grade gold is associated with the antimony (refer Table 1), as occurs at the gold-antimony Costerfield Mine. Assaying of the NRP holes was carried out at the Amdel laboratory in Adelaide. A JORC Table 1 is attached to this announcement.

NRP02 was drilled 160m west of NRP01 and NRP03 was drilled 160m west of NRP02 (refer Figure 1). Massive stibnite veining was reported in the diamond core for NRP02 with the veins being reported as generally 0.5m to 1.0m wide in the core trays (not true widths) but no orientation could be attributed to those veins. No massive stibnite veining was reported in NRP01 or NRP03. Nine more N-S holes, NRP04 to NRP12, were then drilled at a wide spacing (refer Figure 1) before the spectacular-looking NRP02 result was followed up.

Diamond core drilling is considerably more expensive than percussion drilling (such as RC) and the industry protocol is to always orient the core to maximise the amount of information that can be obtained from the drilling. With orientation markings on the outside of the core, including arrows pointing away from the hole collar, the geologist can relatively rotate all the pieces of core in the core trays so the markings line up down the hole. With the core oriented, structural logging can then be carried out to establish the strike direction and dip of the host rock bedding, fault planes, quartz veins, stibnite veins etc. In this process, the geologist uses a "rocket launcher" frame in the core shed to recreate the position of the drill core in the drill hole, adjusting for the calculated azimuth and dip of the drill hole at that depth. The geologist then takes two core angles, alpha (α) and beta (β), for each planar feature of interest, such as a vein, and converts those α and β readings into strike and dip using a software program or a stereonet.

Figure 1 2006 Drill Hole Plan - Nagambie Gold Mine

From the plan in the Panaegis Gold Mines (now named Nagambie Resources) report for the December Quarter 2006.

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NAGAMBIE RESOURCES LIMITED

Costerfield-Mine-StyleGold-Antimony Target at the Nagambie Mine - 3 March 2022

If the 2006 NRP diamond drilling had been oriented, as it should have been, the geologists could have quickly established the strike direction and dip of the stibnite veins intersected in NRP02. Follow up drilling could then have been carried out to establish the extent of the gold-antimony mineralisation along strike and up/down dip.

Without oriented core, no structural data could be estimated and the Panaegis exploration management team was forced to proceed using guesswork.

Believing that all mineralisation at the Nagambie Mine trended E-W, the geologists then proceeded to drill eight more close-spaced holes, NRP13 to NRP20 (refer Figure 1), with all but two, NRP15 and NRP20, drilled north to south (169 degrees magnetic or 180 degrees due south) over an E-W distance of only 160m.

None of the eight holes intersected any massive stibnite veining as occurred in NRP02. The six holes all drilled due south, like NRP02 was, could all have missed the stibnite veining due to the veining having a strike close to N-S and/or due to variable deviation in the holes. NRP14 was collared 11m due north of NRP02, angled 10 degrees steeper (-65 versus -55 degrees) and drilled due south to traverse under NRP02. Unfortunately, NRP14 deviated to the east relative to NRP02.

Table 2 sets out the hole details for NRP02, NRP14, NRP15 and NRP20. In NRP02, the plane of stibnite veining was intersected approximately between 80m and 99m vertically below the surface.

Table 2 Hole Details for NRP02, NRP14, NRP15 and NRP20

Hole ID	Easting	Northing	RL	Dip	Azimuth	RC	Diamond
	(m)	(m)	(m)		(magnetic)	Depth (m)	Interval (m)
NRP02	41260	26060	130	‐55	169	117.9	117.9‐250.6
NRP14	41260	26071	130	‐65	169	95	95‐204.6
NRP15	41340	26075	130	‐55	224	91	91‐210.3
NRP20	41248	26057	130	‐55	158	68.2	68.2‐178.2

Of the only two holes angled away from due south, NRP15 was collared 80m east and 15m north of NRP02 with an azimuth of 224 degrees magnetic (55 degrees west of south). To intersect the massive stibnite veining in NRP02, NRP15 should have been drilled around 39 degrees west of south - that is, NRP15 traversed well to the north of the stibnite veining in NRP02.

The second hole angled away from due south, NRP20, was collared only 12m west and 3m south of NRP02 with an azimuth of 158 degrees magnetic (11 degrees east of south). To scissor a hole with only an 11 degree differential angle can be problematic and NRP20, like NRP14, deviated to the east relative to NRP02.

If the stibnite veining intersected in NRP02 had a strike direction of NNE, NRP14 and NRP20, which both deviated to the east relative to NRP02, should have intersected some stibnite veining based on the detailed plots of the holes. If the stibnite veining in NRP02 had a strike direction of NNW, both NRP14 and NRP20 would have traversed to the east of it. As a result, Nagambie Resources considers that NNW is the probable strike direction for the stibnite veining intersected in NRP02. Why the Panaegis geological team at the time didn't come to the same conclusion, and proceed to scissor another hole at a calculated angle from west or east of NRP02, is not known.

Figure 2 shows the major gold-antimonynarrow-vein workings at the Costerfield Mine. Notably, the predominant strike direction for the gold-antimony veins at Costerfield is NNW. Also notably, there are many NNW vein systems at Costerfield.

Gao et al in 1992 carried out detailed structural mapping of the East Pit at the Nagambie Mine and identified a set of NNW-striking cross faults in addition to the more pronounced E-striking thrust faults (Fig. 4 A. on p.1751 of Gao, Z.L., Kwak, T.A.P., Changkakoti, A., Hussein, E., & Gray J., 1995. Supergene ore and hypogene non ore mineralization at the Nagambie sediment hosted gold deposit, Victoria, Australia. Economic Geology, Vol. 90, 1995, pp. 1747-1763). Detailed structural mapping of the West Pit was not carried out before mining prematurely ceased at the Nagambie Mine in 1994.

Two Epizonal Mineralisation Types at the Nagambie Mine

Nagambie Resources has focussed to date on the sandstone-siltstone-hosted disseminated gold associated with the Central Anticline and nearer-surface thrust faulting at the Nagambie Mine and its Feeder Zone to the south west of the West Pit.

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NAGAMBIE RESOURCES LIMITED

Costerfield-Mine-StyleGold-Antimony Target at the Nagambie Mine - 3 March 2022

The disseminated gold occurs in arsenian pyrite and arsenopyrite needles and is associated with quartz veining and disseminated stibnite, though not massive stibnite veining. The hydrothermal fluids that gave rise to this Fosterville-style mineralisation at the Nagambie Mine are considered to have risen up the Wandean Crustal Fault to the south west of the Nagambie Mine and then travelled north east and ultimately east along fracturing associated with nearer-surface thrust faults such as the Nagambie Mine Thrust Fault.

Following the detailed analysis of the 2006 NRP02 hole in recent weeks, Nagambie Resources now considers that high-grade,Costerfield-Mine-stylegold-antimony veining is an important second mineralisation type at the Nagambie Mine. The antimony, and the high-grade gold associated with it, is considered to emanate from the deep Proterozoic-aged Selwyn Block that underlies the Melbourne Zone and the eastern margin of the Bendigo Zone. The pathway for these hydrothermal fluids is considered to be deep NNW-striking faults not associated with the nearer-surface thrust faults.

Figure 2 Plan of Major Gold-AntimonyNarrow-Vein-Systems at the Costerfield Mine

From Mandalay Resources web site: mandalayresources.com/operations/Costerfield-mine

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Costerfield-Mine-StyleGold-Antimony Target at the Nagambie Mine - 3 March 2022

Exploration for Additional Costerfield-Mine-Style,Gold-Antimony Veining at the Nagambie Mine

The NRP02 hole drilled N-S in 2006 appears extremely lucky to have intersected a NNW-strikinggold-antimonynarrow-vein-system. With reference to the plan of the many Costerfield NNW-strikingnarrow-vein systems (Figure 2), the question arises as to how many such NNW-strikinggold-antimony systems could occur in total under the East and West Pits at the Nagambie Mine.

Nagambie Resources is not aware of any geophysical method that could pick up additional massive stibnite veining at the Nagambie Mine as stibnite gives little to no response to induced polarisation (IP) or electromagnetic (EM) surveys.

If the Company successfully drills the high-grade veining intersected in NRP02 and establishes that the mineralisation strikes NNW, it will systematically drill a series of overlapping holes under the entire length of the East and West Pits with azimuths as close to WSW as the pit configurations will allow. A diamond drilling rig that can set up at low angles, such as 25 to 30 degrees below horizontal, would be utilised to maximise the horizontal coverage achieved and minimise the total drilling costs.

Planned NAD007 and NAD008 Diamond Holes

Nagambie Resources' next two oriented diamond holes are designed to scissor, approximately 25 vertical metres apart, the massive stibnite veining in NRP02 (refer Figure 3).

Figure 3 Drill Hole Plan for NAD007 and NAD008 Diamond Holes

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