Nagambie Resources : March 2022 Quarterly Activity Report

HIGHLIGHTS

•  Detailed re-analysis of the spectacular-looking 2006 NRP02 drill intersection under the West Pit at the Nagambie Mine, but which was not explained geologically at that time, concluded that the massive-stibnite-veining system could strike NNW, a direction never tested in the eight follow up holes drilled in 2006/2007. NNW is the prevailing strike direction for the gold-antimony mineralisation at Australia's only current antimony mine, the Costerfield Mine, 45 km to the west of the Nagambie Mine.

•  The average grades for the NRP02 intersection, including all internal waste, are 4.8 g/t gold (Au), 7.5% antimony (Sb) and 22.5 g/t gold equivalent (AuEq) (refer Table 1). Excluding the internal waste using a lower cut-off of 1.0% Sb, the NRP02 intersection grades 7.2 g/t Au, 12.3% Sb and 36.2 g/t AuEq. Peak assays for the intersection are 24.0 g/t Au and 60.2% Sb.

•  Drilling of NAD007, the first oriented diamond drill hole designed to intersect this high-grade Costerfield-Mine-style target (named C1) under the West Pit, has just commenced.

•  Southern Cross Gold (ex Mawson Gold) drilled the first two deep diamond drill holes under Balaclava Hill within the Whroo JV Property (Nagambie Resources has the option to retain up to a 40% JV interest) and encouragingly obtained peak assays of 49.7 g/t gold and 16.5% antimony.

•  Golden Camel Mining (GCM) and Nagambie Resources are in advanced negotiations to secure the use of a new technology that has been developed in Australia and which would improve recoveries for the toll treatment plant at the Nagambie Mine. GCM are still scheduling for plant commissioning in the December 2022 quarter.

•  Stage 2 of laboratory testwork for the bacterial recovery of gold in the Nagambie Mine heap leach pad, using larger samples from the Nagambie Mine, is proceeding with additional R&D funding assistance from the Federal Government being sought.

COMMENTARY

Nagambie Resources' Executive Chairman, Mike Trumbull, commented: "The drilling program for the C1 massive-stibnite-veining target under the West Pit is underway. Exploration success could lead to Victoria's next significant high-grade mine development since the Costerfield and Fosterville Mines.

"The Nagambie Mine toll treatment plant, utilising INCO cyanide detox and dry-stacked geotube tailings storage technology, is to be the first of its kind in Victoria. Securing the use of new technology to improve recoveries in the plant would enhance the economics for GCM and Nagambie Resources. Utilisation of sustainable, cheaper renewable electricity, from solar and/or anaerobic digestion installations on Nagambie Resources' freehold land, would further enhance the economics."

NAGAMBIE RESOURCESwww.nagambieresources.com.au

Oriented diamond drilling of Fosterville-style, structural-controlled, high grade sulphide-gold underground targets within the Waranga Domain 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 513,146,176

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

GOLD EXPLORATION

High-Grade, Gold-Antimony Mineralisation Intersected in the 2006 NRP02 Hole

On 3 March 2022, Nagambie Resources reported the results from a detailed re-analysis of the spectacular-looking NRP02 intersection which was achieved by the Company under the West Pit at the Nagambie Mine in 2006, but which was never explained geologically at that time.

The re-analysis concluded that the massive-stibnite-veining system could strike NNW, a direction never tested in the eight follow up holes drilled in 2006/2007. NNW is the prevailing strike direction for gold-antimony mineralisation at the Costerfield Mine, 45 km to the west of the Nagambie Mine.

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	31.9
including	113.0	115.0	RC	2.0	14.4	33.4	93.2
NRP02	117.0	122.7	RC+Core	5.7	0.4	0.1	0.6
NRP02#	122.7	124.3	Core	1.6	12.5	20.2	60.2
NRP02	124.3	129.2	Core	4.9	2.2	0.2	2.7
NRP02#	129.2	136.1	Core	6.9	5.1	12.6	34.8
including	129.2	129.5	Core	0.3	24.0	60.2	166.1
including	131.3	132.3	Core	1.0	22.0	58.7	160.5
NRP02	109.0	136.1	RC+Core	27.1	4.8	7.5	22.5
NRP02#	Above Cut-Off Only	16.5	7.2	12.3	36.2

* Using a gold equivalent factor of 2.36 (refer below).

The intercept lengths downhole are considered to greatly exaggerate the true widths of the gold-antimony mineralisation (the true widths could only be around 10% to 15% of the downhole intercepts). The gold and antimony grades however are representative of the mineralisation intersected in NRP02.

The gold-antimony Costerfield Mine currently calculates its gold equivalent (AuEq) factor, the relative value of 1.0% antimony (Sb) in the mine to 1.0 gram / tonne gold (Au) in the mine as:

AuEq factor = [US$/tonne antimony price x 0.01 x 0.95 antimony recovery] / [US$/ounce gold price / 31.10348 grams per ounce x 0.93 gold recovery]

The Costerfield Mine is 100% owned by Mandalay Resources Corporation and the latest projections for CY2022 on the Mandalay website (https://mandalayresources.com ) adopt average CY2022 prices for gold and antimony of US$1,750 per ounce of gold and US$13,000 per tonne of antimony. For these prices, the AuEq factor using the above equation is 2.36.

Diamond Drilling of the C1 High-Grade, Gold-Antimony Target under the West Pit

Nagambie Resources' next two oriented diamond holes, NAD007 and NAD008, were provisionally designed to scissor, approximately 25 vertical metres apart, the massive stibnite veining in NRP02 (refer Figure 1).

NAD007 had been planned to commence in late March but the drilling contractor encountered ongoing problems with his workshop personnel being unable to work due to Covid directly, Covid close-contact family isolation rules, and other family illnesses. The drilling of NAD007 has just commenced with the first intersection of the C1 target expected in approximately one week's time.

Figure 1 Drill Hole Plan for NAD007 and NAD008 Diamond Holes

Redcastle and Whroo Joint Ventures with Mawson Gold

Mawson Gold has transferred its Australian interests into Southern Cross Gold Limited which has been working towards an initial public offering (IPO) on the ASX in order to significantly increase its gold exploration in Victoria - that IPO funding offer closes today. Southern Cross had previously raised $2.725 million to fund its ongoing drilling and IPO costs.

Southern Cross currently manages gold exploration within the Redcastle and Whroo JV Properties of 75 sq km and 199 sq km respectively.

Balaclava Hill, Whroo JV Property

On 18 February, Nagambie Resources reported the results of the first two diamond holes drilled by Southern Cross under the Balaclava Hill workings.

Table 2 sets out the intersections in the MDDBC001 and MDDBC002 diamond holes at Balaclava Hill using a lower cut-off of 0.5 g/t gold times the intersection width in metres (Au g/t x width (m) >= 0.5) except where significant antimony (Sb) grades have been intersected. Figure 2 is a section showing the MDDBC001 hole.

The significant intersections of antimony and gold clearly indicate that the target below Balaclava Hill is high grade gold-antimony, epizonal, Fosterville-style mineralisation. Southern Cross are comparing the early Whroo intersections with the published orebody dimensions and grades at the Costerfield Mine, the 6th-highest-grade global underground gold mine and the 5th-biggest antimony miner in the world.

Table 2 Intersections from MDDBC001 and MDDBC002

Hole ID	from (m)	to (m)	width (m)	Au g/t	Sb%
MDDBC001	201.0	202.0	1.0	8.4	0
including	201.5	202.0	0.5	16.5	0
MDDBC001	228.0	239.0	11.0	0.4	0
including	236.0	237.5	1.5	1.2	0
MDDBC001	262.4	262.8	0.4	1.4	10.5
MDDBC001	323.0	367.8	44.8	0.8	0.1
MDDBC001	324.9	325.5	0.6	49.7	0
MDDBC001	359.6	359.8	0.2	0.2	16.5
MDDBC001	362.8	363.0	0.2	3.8	6.3
MDDBC001	365.0	365.3	0.3	1.0	3.3
MDDBC001	403.0	416.2	13.2	0.3	0
MDDBC001	409.8	410.5	0.7	1.5	0
MDDBC002	69.0	70.0	1.0	1.1	0
MDDBC002	212.6	227.0	14.4	0.4	0
including	214.6	215.4	0.8	0.9	0
including	225.0	226.0	1.0	2.2	0
MDDBC002	332.1	332.8	0.7	5.0	0

Figure 2 Section showing MDDBC001 below Balaclava Hill and Whroo1 drilled in 1973

From a Southern Cross cross section.

Gold Tenements

The Company's tenements as at 31 March 2022, totalling 3,334.5 sq km, are listed in Table 3 and their general location in central Victoria is shown in Figure 3.

Table 3 Nagambie Resources Tenements as at 31 March 2022

Tenement Number	Tenement Name	sq km
MIN 5412	Nagambie Mining Licence	3.5
EL 5430 EL 5511 EL 6158 EL 6212 EL 6352 EL 6421 EL 6508 EL 6606 EL 6719 EL 6720 EL 6731 EL 6748 EL 6937 EL 6877 EL 7205 EL 7207 EL 7208	Bunganail Exploration Licence Nagambie Central Exploration Licence Rushworth Exploration Licence Reedy Lake North Exploration Licence Miepoll Exploration Licence Pranjip Exploration Licence Tabilk Exploration Licence Gowangardie Exploration Licence Euroa Exploration Licence Tatura Exploration Licence Arcadia Exploration Licence Waranga Exploration Licence Nagambie East Exploration Licence Nagambie Exploration Licence Angustown Exploration Licence Arcadia Exploration Licence Cullens Road Exploration Licence	160.0 21.0 46.0 17.0 342.0 45.0 33.0 88.0 81.0 145.0 218.0 102.0 2.0 8.0 49.0 156.0 29.0
EL 7209 EL 7210 EL 7211 EL 7212 ELA 7213 EL 7237 EL 7238 EL 7264 ELA 7265 EL 7594 ELA 7595 ELA 7690 RL 2019	Goulburn West Exploration Licence Locksley Exploration Licence Shepparton Exploration Licence Shepparton North Exploration Licence Pederick Exploration Licence Application Kirwans North (1) Exploration Licence Kirwans North (2) Exploration Licence Resource Recovery Exploration Licence Nagambie Town Exploration Licence Application Miepoll East Exploration Licence Miepoll West Exploration Licence Application Nagambie South Exploration Licence Application Doctors Gully Retention Licence	34.0 26.0 444.0 321.0 683.0 20.0 9.0 1.0 8.0 47.0 113.0 4.0 4.0
Total Waranga Domain	3,259.5
EL 5546 EL 7498 EL 7499	Redcastle Exploration Licence Cornella Exploration Licence Sheoak Exploration Licence	51.0 19.0 5.0
Total	3,334.5

NAGAMBIE MINE GOLD TOLL TREATMENT PLANT

Nagambie Resources Limited (NRL) and Golden Camel Mining (GCM) are proceeding with the construction and operation of a nominal 180,000 tonnes per annum toll treatment facility at the Nagambie Mine. GCM is the Manager and are paying 100% of all construction and commissioning costs; thereafter all revenues and costs will be shared 50:50. Initial feed for the plant is to be trucked from GCM's Golden Camel Mine.

GCM and NRL are in advanced negotiations to secure the use of a new technology that has been developed in Australia and which would improve recoveries for the toll treatment plant. Once the negotiations are completed, some additional detailed design work will be required to incorporate the new technology.

Despite some ongoing issues, GCM are still scheduling for commissioning of the plant to occur in the December 2022 quarter.

Use of Renewable Energy in Toll Treatment Plant Operations

GCM and NRL have been investigating the potential to produce renewable energy to reduce the toll treatment plant's operating costs and to minimise carbon emissions.