Prodigy Gold NL : Quarterly Activities and Cashflow Report June 2022

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QUARTERLY REPORT

For the 3 months ended 30 June 2022

Highlights:

Prodigy Gold 100% Projects

Hyperion Gold Project:

• RC drill planning underway to further test the historical resource at the Tregony Prospect, 24 kilometres north of the Hyperion Mineral Resource
• NT Government approves co-funding for drilling at the Boco North Prospect

Old Pirate and Tanami Exploration Tenements

• Agreement signed with private entity Stockton Mining for the divestment of the Company's Old Pirate Gold Project and 23 surrounding exploration tenements

Prodigy Gold JV Projects

Lake Mackay Project:

• Joint Venture restructured to give Prodigy Gold majority interest in the Gold Tenements while retaining its position in the Base Metal Tenements
• IGO will transfer a 40% interest in the Gold Tenements to Prodigy Gold whereby Prodigy Gold will hold a 70% interest and IGO a 30% interest in the Gold Tenements, subject to all necessary consents and approvals being obtained
• IGO will transfer a 34% interest in EL31794, so that the parties' joint venture interests will be Prodigy Gold 60%, IGO 26% and Castile 14%, subject to all necessary consents and approvals being obtained
• In return, Prodigy Gold will sole-fund agreed drilling programs on the Gold Tenements, EL31794 and the Base Metal Tenements, with all JV interests frozen for the duration of these programs
• RC drilling completed on the Gold Tenements at the Lake Mackay Gold JV Project, following up gold-in-soil anomalies and extensions to previous drilling in Western Australia and the Northern Territory
• First diamond hole completed on the Base Metal Tenements at the Lake Mackay JV Project following up results of 21PHDD002 at the Phreaker Prospect

Corporate:

• Mark Edwards commenced his role as Managing Director on 1 May 2022

Prodigy Gold NL (ASX: PRX) ('Prodigy Gold' or the 'Company') is pleased to provide this activity report for the three months ended 30 June 2022.

Management Commentary

Commenting on progress made during the June quarter, Prodigy Gold Managing Director, Mark Edwards said: "It has been a great start over the last few months in my new role. We have completed

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RC and diamond drilling at the Lake Mackay Project, progressed the Buccaneer Scoping Study and continued to advance the Old Pirate sales agreement with Stockton Mining Pty Ltd.

The drilling at the Lake Mackay Project has been an exciting activity which allowed Prodigy Gold to earn back a 70% interest in the Gold Tenements while maintain a 30% interest in the Base Metal Tenements. Sole-funding requirements for the Gold Tenements have been achieved, and we are now part way through completing the sole-funding requirement, involving diamond drilling at Phreaker, for the Base Metal Tenements.

It is great to see how the Joint Venture agreements are progressing, with both Newmont and IGO being active explorers in the region and having shown a high level of commitment to the JV projects with Prodigy Gold. We are looking forward to continuing with both parties as we advance these exciting projects.

Over the past couple of months, I also had the opportunity to visit all Company projects and meet the team in the field. A lay-of-the land tour has highlighted the potential contained in the Tanami region as well as showing the challenges faced working in some of Australia's most remote areas."

June Quarter Exploration Summary

Hyperion Project - 100% PRX

The Hyperion Project area contains the Hyperion Mineral Resource which is stated as 4.93Mt @ 1.95g/t Au for 309,500 ounces above a 0.8g/t Au lower cut-off grade. The resource cut-off grade is based on processing at a mill the scale of the Northern Star / Tanami Gold Central Tanami Project Joint Venture Processing Plant. The Hyperion Mineral Resource was previously called Suplejack, the name has since been changed at the request of the local community.

The mineralisation at the Hyperion Mineral Resource is associated with a structural break between regional north-south trending thrust faults. At the Hyperion Deposit, this is a shear zone hosted in differentiated dolerite, typically intruded by granitic dykes. The shear zone generally trends at approximately 106 degrees and dips towards the south at 60-80 degrees. The structure is typically between 4m and 13m thick, with an average true width of approximately 6m.

Hyperion July 2018 Mineral Resource Estimate1

Within the Hyperion Project are other defined prospects such as the Tregony, Boco and Boco North Prospects. The Tregony Prospect has a historical Inferred Mineral Resource previously reported by Ord River Resources (now Vango Mining Limited) in 20122 of 101,300 ounces of gold (2.44Mt @ 1.29g/t using a 0.5g/t Au low cut-off grade), this was classified using the JORC Code 2004. To comply with current reporting requirements, work is underway to review this historical resource for reporting under JORC Code 2012.

No drilling or sampling was completed on the Hyperion Project during the reporting period, however planning is currently underway to commence a drilling campaign at the Hyperion Project, particularly around the Tregony and Boco North Prospects located approximately 24km and 38km north along strike of the Hyperion Mineral Resource, respectively.

1. ASX: 31 July 2018
2. ASX VAN (previously ORD): 26 November 2012

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Both the Tregony and Boco North Prospects are located on EL31331. Part of the planned drilling campaign is under a co-funding agreement with the NTGS under the round 15 Resourcing the Territory grants as recently announced by the NTGS on the Resourcing the Territory website.

A site visit was also conducted to the Hyperion Project during June with all Company geologists and the Managing Director visiting drilling areas at Boco North and Tregony. This gave an opportunity for the team to assess the on-site camp as well as review previously drilled diamond core stored on site.

Figure 1: Location of Tregony and Boco North Prospects in the Hyperion Project area

Buccaneer Project - 100% PRX

Metallurgical testwork has continued on the Buccaneer project during the quarter and will continue for the coming months. This work includes column leach testing of the Buccaneer ore. Reporting is expected in the next quarter.

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Joint Venture Portfolio

Lake Mackay JV (IGO and IGO/Castile)

During the June quarter IGO Limited ("IGO") and Prodigy Gold executed a deed of excision, transfer and amendment ("Deed") in relation to the Lake Mackay Agreement. There are now three unincorporated exploration joint venture ("JV") agreements covering the Lake Mackay Project3 (Figure 3):

• Lake Mackay Gold JV Agreement - covering most of the Gold Tenements
  o transfers tenements EL25146, EL31234, EL31913 and EL80/5001 ("Gold Tenements") from the original Lake Mackay Agreement into a new unincorporated exploration joint venture
  o IGO will transfer a 40% interest in the Gold Tenements to Prodigy Gold whereby Prodigy Gold will hold a 70% interest and IGO a 30% interest in the tenements
  o Prodigy Gold will sole fund $500,000 of joint venture expenditure to drill 24 RC holes on the joint venture area - following the completion of the recent drilling campaign this commitment has been met
• Castile JV Agreement - covering Gold Tenement EL31794
  o transfers tenement EL31794 ("Gold Tenements") into a new unincorporated exploration joint venture between Castile Resources Limited ("Castile"), IGO and Prodigy Gold
  o IGO will transfer 34% of EL31794 to Prodigy Gold whereby Prodigy Gold will hold a 60% interest, IGO a 26% interest and Castile a 14% interest
• Lake Mackay JV Agreement - covering the Base Metal Tenements
  o amends and restates the terms of the original Lake Mackay Agreement and no longer covers the Gold Tenements
  o Prodigy Gold will sole fund $850,000 of joint venture expenditure to drill 3 diamond holes on the joint venture area within 24 months of signing of the amended Lake Mackay Agreement - following the completion of the recent drilling campaign fulfillment of this commitment is well underway

Lake Mackay JV - Exploration progress

Prodigy Gold completed 13 RC holes for 1,690 metres on the Western Australian title E80/5001, and 12 RC holes for 1,722 metres on leases EL31234 and EL25146 in the Northern Territory.4

The WA portion of the drilling is co-funded by the Round 23 of the EIS program of the Western Australian Department of Mines, Industry Regulation and Safety (DMIRS). The NT portion of the program is co-funded by Round 14 of the Northern Territory Geological Survey ("NTGS") Geophysics and Drilling Collaborations program.

RC samples have been submitted to Bureau Veritas in Adelaide for analysis as 4 metre composites for gold by the 50 gram Fire Assay technique. Receipt of the results is pending.

The drilling completed on E80/5001 in WA focused on an untested gold-in-soil target, and the continuation of known gold mineralisation at the Arcee Prospect across the WA/NT border. The new gold-in-soil target is located 12 km north-northwest of the Arcee Prospect. Drill-hole locations and orientations were guided by previous drilling, lag mapping and soil sampling results.

Drilling on E80/5001 was designed to test the entire width of the surface gold anomalies and the source of the surface gold anomalism at depth with multiple twin scissor (and nose-to-tail) holes.

1. ASX: 18 May 2022
2. ASX: 29 June 2022

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Figure 2 - Lake Mackay Project Map

Drilling completed on the Northern Territory side of the border tested the source at depth of three gold-in-soil anomalies with multiple twin scissor (and nose-to-tail) holes.

Prodigy Gold has also completed one of the three required diamond holes (PRDD2202) at the Phreaker Prospect located on EL30731. The drill core has been logged and samples were submitted to Bureau Veritas in Adelaide for geochemical analysis for copper, gold, silver and other elements. Receipt of the results is pending.

The polymetallic sulfide Phreaker Prospect was initially discovered using airborne and ground electromagnetic surveys, and follow-up RC drilling in 2018 and 2019.

Three diamond drill holes were drilled at the prospect in 2021 by IGO. All three holes successfully intercepted high-grade copper (gold-silver) sulfide mineralisation 75m to 430m below previous RC drilling. The best two recorded intersections were in hole 21PHDD0025:

• 4.5m @ 3.03% Cu, 1.78g/t Au and 14g/t Ag from 562m and
• 17.47m @ 2.13% Cu, 0.21g/t Au and 9g/t Ag from 575.23m

The RC drilling met the Lake Mackay Gold JV Tenement Agreement sole funding terms. Planning for two diamond holes on the Base Metal Tenements to cover the sole funding commitment under the Lake Mackay JV Agreement is currently underway to complete those holes within the required timeframes.

Tobruk JV and Monza JV (Newmont)

Tobruk

• Results for the surface geochemical surveys carried out during the June 2021 quarter (Q2 2021) and September 2021 (Q3 2021) were received and interpreted
• A reverse circulation (RC) drilling program comprising eight drillholes for 848 metres on the eastern project area was completed towards the end of the reporting period. This program tested where anomalous responses were highlighted in the 2021 surface geochemical survey. Results are pending

5 ASX: 26 May 2021

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