Pacgold Limited provided an update of step-out drilling assay results from the Company's Alice River Gold Project. To date, 30 drill holes have been completed on the Central Target in the current programme, with assay results pending for 13 drill holes targeting the F1a zone. The current drilling programme is now ~75% advanced with 6,778m RC and 6,009m DD completed.

Drilling to date has focused on the F1a zone (Central Target) and drilling is planned to commence on the Southern Target in October. Assay results for four drillholes are reported here: ARDH039, ARDH059, ARDH060 and ARDH061. As anticipated, high-grade gold was intersected in ARDH061, with the occurrence of disseminated fine visible gold in the drill core.

Results for ARDH061 include: 14.9m @ 10.3g/t Au from 242.1m (etw 3 6.3m) incl. 4.9m @ 21.4g/t Au from 242.1m. ARDH061 is an 80m step-out along the down-plunge projection of previously reported drill intersection of 17m @ 9.3g/t Au (etw 9.8m) incl.

3m @ 25.3 g/t Au (incl. 1m @ 40.7g/t Au) in ARDH026 4. The assay results for ARDH061 define excellent continuity of the high-grade gold zone over at least 80m distance between ARDH026 and ARDH061. This zone remains open at depth and to the south, with an approximate strike length of 100m.

Results for drill holes ARDH039, ARDH059 and ARDH060 confirm a continuous sub-vertical zone of broad, lower-grade gold mineralisation (estimated true width varies from 5m to 40m) which separates the two high-grade shoots that have been defined to date on the F1a zone. This central zone of gold mineralization is interpreted to represent a `halo' to nearby high-grade mineralisation immediately north and south. A summary of results includes: ARDH039: 16m @ 1.3g/t Au from 48m, ARDH059: 10.6m @ 1.0g/t Au from 272m, ARDH060: 2m @ 2.7g/t Au from 147m, 1m @ 4.6g/t Au from 156m, 8m @ 2.1g/t Au from 164m.

Previously reported screen fire assay test work 5 by Pacgold on 128 samples of varying grade and quartz vein types showed excellent correlation and repeatability to fire assay, highlighting negligible `nuggety gold' effects. Screen fire analysis was completed on the gold mineralised interval that is reported in this release. Pacgold plans to undertake further test work on high-grade gold results from the 2022 drilling programme.

The application of the Donlin gold model (Tier-1 gold deposit in Alaska) to the Alice River Gold Project is proving to be very successful. An important aspect of this model is the potential for the high-grade zones to have significant vertical extent, as demonstrated at Donlin. At Alice River, the high-grade zones are now defined over 520m of vertical extent and remain open at depth.

The high-grade gold mineralisation observed at the F1a zone is associated with zones of intense multi-phase, hydrothermal quartz veining and brecciation. The current drilling on the Central Target continues to provide strong indications that the F1a zone represents the upper levels of a large-scale, high-grade gold system. Pacgold has identified two primary controlling (north-south trending) structures on the Central Target, being the F1a and the F1b zones.

The highest gold grades intersected in drilling occur where broad, north-west trending, `linking' vein sets intersect the F1a and F1b zones. Drilling to date by Pacgold has concentrated on a 400m section of strike on the 1.5km-long F1a zone where multiple high-grade plunging zones are currently being defined. Repetitions of this structural setting have been identified along the northern extent of the F1a zone and some initial scout drilling has been completed, aimed at locating the intersection of the north-west trending veining corridor with the F1b zone which is completely concealed by shallow sand cover (results pending).

Scout drilling has also been completed on the F1b zone where Pacgold's drilling last year returned 7m @ 3.1g/t Au incl. 2m @ 9.8g/t Au (ARDH031) 6. In simpler terms, `bends' along the main structure are interpreted to potentially represent dilation zones which can focus gold mineralisation. These `bends' can be seen in the IP geophysics (mapped as resistivity lows), with the best example being at the Central Target.

It is interpreted that the gross structural setting at the Central Target which controls the distribution of the high-grade gold zones has many similarities to that observed in several large gold deposits, including Fosterville 4.4Moz (Australia) and Waihi 4Moz (New Zealand). On a regional scale, the structural model for the high-grade mineralisation is being applied to the Southern Target to generate priority targets within the broad gold system ahead of a diamond drilling programme planned for October 2022. Further IP geophysics is also planned for the Northern Target ahead of drilling planned for November 2022.

Wide-spaced IP geophysics is also planned to step out along the main Alice River Shear Zone to the north-west and to the south-east, to identify the structure over 10km of potential strike. Pacgold has over 30km of under-explored prospective structure secured under granted exploration permits. Diamond drilling to continue at the Central Target with initial diamond holes planned to commence at the Southern Target in late October 2022.

IP geophysics is planned on the Northern Target and extensions along the Alice River Shear Zone to the north-west and south-east of the current IP coverage. This work is currently scheduled to commence mid-October 2022.