Platina Resources Limited (ASX: PGM) has significantly strengthened its Western Australian gold presence, signing a conditional binding term sheet with Sangold Resources Pty Ltd (Sangold) to acquire 100% of the advanced, high-grade, nearsurface Brimstone Gold Project, 40 km north-east of Kalgoorlie.

Platina's pivotal acquisition also includes full ownership of the nearby Beete, and Binti Binti gold projects.

Platina Managing Director, Mr Corey Nolan, said the 277km2 tenement package will add critical mass to the company's Western Australian gold portfolio at a low acquisition cost in world-class gold districts. 'Brimstone is an advanced stage exploration project with immense appeal given the previously defined broad widths and high-grade gold assay results from numerous holes drilled across the tenement package. This historical work has never been followed up with a systematic exploration campaign, and therein lies the opportunity,'

Mr Nolan said. 'Brimstone includes six separate walk-up drill targets, including the Garibaldi prospect, which includes a historical drill intersection of 55m @ 2.07 g/t Au and the Jammie Dodger prospect, which includes a historical drill intersection of 22m @ 1.96g/t Au, both of which remain open in all directions. 'The Beete and Binti Binti projects are both located in proven mineralised provinces, with the Historical Beete Gold Mine situated inside the tenure under option. 'This new ground has the capacity to generate significant exploration results in the near term and will result in a solid pipeline of positive news flow over the next 12 to 24 months,' he said. A Programs of Works application has been submitted to the Department of Mines, Industry Regulation and Safety (DMIRS) and Heritage Survey clearances have been obtained for M27/501 at Garibaldi.

Mr Nolan said post completion of the transaction, the Company's top priority would be to immediately apply for further permitting at the Brimstone Project, which had potential to progress quickly towards a mineral resource estimate. Brimstone is located 42 km from Kalgoorlie, a region well-endowed with infrastructure, gold processing plants, and nearby gold mines including, Penny's Find and Kanowna Belle.

The acquisition of Sangold Resources Pty Ltd, remains subject to a due diligence and exclusivity period as well as a number of other conditions precedent which must be satisfied by 31 October 2022. The Company is intending to complete a capital raising to fund the ongoing development of its asset portfolio. A reverse circulation drilling program is due to commence at the Company's Xanadu Gold Project towards the end of August, while the results of a recent Challa air-core drilling are pending.

Transaction Summary

Platina has signed a conditional binding term sheet to acquire Sangold which owns the Beete and Binti Binti Projects and has an exclusive option to acquire the Brimstone Project. The transaction is subject to a three-month exclusivity and due diligence period, funded by a $50,000 option payment, that expires on 31 October 2022, during which time all conditions must be either satisfied or waived. Consideration for the acquisition includes $2.5 million of Platina shares issued at 5-day volume weighted average (VWAP) price on announcement of the transaction and $150,000 cash. Of the consideration shares issued for the transaction, $2.4 million will be subject to a 12-month escrow period and $0.1 million for a 3-month period. A further $1 million shares will be issued if a JORC compliant Inferred Mineral Resource above 100,000 ounces at 1.5g/t is achieved on any project within the acquisition tenements, based on a 5-day VWAP at the time the JORC Mineral Resource is announced. A corporate advisory and introduction fee of $75,000 (allocated as 50% shares and 50% cash) will be paid to Euroz Hartleys. Platina is intending to complete a capital raising to fund the ongoing development of its asset portfolio whilst it completes due diligence and finalisation of the transaction with Sangold.

Contact:

Tel: +61 (0)7 5580 9094

Email: admin@platinaresources.com.au

ABOUT PLATINA RESOURCES

Platina is an Australian-based company focused on returning shareholder value by advancing early-stage metals projects through exploration, feasibility, permitting and into development.

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