QMines Limited provided the following update on exploration and resource drilling operations at its Mt Chalmers Copper and Gold Project, located 17km north-east of Rockhampton, Queensland. Highlights: Results for the final four drill holes have now been received; Three holes drilled at Woods Shaft and one hole at Mt Chalmers for 435 metres; Results include further broad high-grade intersections including: 25m @ 1.04% CuEq from 30m; 19m @ 1.18% CuEq from 4m; and 11m @ 1.37% Cu Eq from 79m. Tracker 3 reconnaissance now complete with large gossans identified; Mt Chalmers Resource Upgrade (Third Resource) expected imminently; and Woods Shaft maiden Resource (Fourth Resource) expected in Q1-2023.

The Company completed an eleven-hole Reverse Circulation (RC) drilling program at the Woods Shaft Exploration Target¹ and four additional holes at Mt Chalmers for 1,455 metres drilled. Drilling was completed at the end of September 2022 and results have now been received for the four outstanding holes drilled at Woods Shaft and from one outstanding hole drilled at Mt Chalmers. The drilling results from the Woods Shaft prospect have delivered several broad intersections with exceptional copper equivalent grades up to 8.26% Copper Equivalent (CuEq) and 6.21% CuEq in hole QMWSRC001 and 5.26% CuEq in hole QMWSRC007.

The latest results include two broad zones of 25m @ 1.04% CuEq and 11m @ 1.37% CuEq in hole QMWSRC011 which extend the mineralisation towards the north where it remains open. Results from the last Woods Shaft hole to be drilled, step-out hole QMWSRC011 intersected two mineralised zones 25m @ 1.04% CuEq from 30m and 11m @ 1.37% CuEq from 79m. Mineralisation is open to the north of the recent drilling.

Background: The Woods Shaft prospect is situated 0.7km to the southwest of the Mt Chalmers main deposit. It has been defined by historic drilling to be over 250m in strike length and up to 40m wide. Mineralisation is from surface to a depth of 90m in places and contains gold and base metal mineralisation.

The geology of the deposit appears similar to the Mt Chalmers main lode and is dominated by a sulphide stringer zone. Historical resource estimates were compiled by historic explorers for this prospect but were not reported in accordance with JORC 2012. RC drilling at Woods Shaft has been undertaken by QMines to validate historical drilling completed by previous explorers and to deliver the historical Exploration Target into a JORC 2012 compliant Maiden Resource.

The Woods Shaft drill program has delivered significant broad and high-grade intersections from within areas where minimal drilling was undertaken by previous explorers. The recent drilling will enable the delivery of the maiden JORC 2012 Mineral Resource Estimate (MRE) for this part of the Mt Chalmers Copper project. Details relating to the original Woods Shaft Exploration Target can be found in the Company's Prospectus, Independent Geologist Report, prepared by H&S Consultants Pty Ltd. The Tracker 3 soil anomaly was briefly visited and several large surface gossans were identified.

Classic boxwork after massive sulphides were identified which may in part explain the associated Cu-Zn soil anomalies. Gossaous stringers have also been identified at high angles to and adjacent to these massive gossans and these may reflect T-shaped stringer zones. The largest gossan identified so far measures some 160m long by 20m wide.

A total of 16 first pass rock chip samples were collected from several gossans and analysed by ALS Brisbane for gold and other 48 elements. Gold was analysed by 25g fire assay with AAS finish and the remaining 48 element scans were by 4 acid digest with ICP-MS/ES. Results revealed generally low base metal and gold concentrations as is typical of surface depletion in oxidized gossan caps.

Better results included 0.53 g/t Ag in sample MCRK014 and 0.1% Cu in samples MCRK007 and MCRK008. What's Next?: Continued drilling operations at Mt Chalmers for the planned 30,000 metre RC and Diamond drilling programs; Regional airborne electromagnetic (EM) survey over the Mt Chalmers project to improve drill targeting for future drilling campaigns; Further surface exploration and mapping at Tracker 3, one of four large copper and zinc soil anomalies located in the region; Deliver a third Mineral Resource Estimate for Mt Chalmers in fourth quarter 2022; and Deliver a fourth Mineral Resource Estimate for Woods Shaft in first quarter 2023. Note: MGA 94_56: In reported exploration results, length weighted averages are used for any non-uniform intersection sample lengths.

Length weighted average is (sum product of interval x corresponding interval assay grade), divided by sum of interval lengths and rounded to two decimal points. No top cuts have been considered in reporting of grade results, nor was it deemed necessary for the reporting of significant intersections. The value of some of the reported CuEq drill intercepts may be driven by the gold content over the copper content.

The results are presented here in CuEq % rather than AuEq g/t for the purposes of consistency with previous releases. Woods Shaft is a satellite deposit to the Mt Chalmers deposit which is copper dominant.