Resources & Energy : Granny Venn T3 Set to Commence

For personal use only

ASX/Media Release

8th March 2022

Granny Venn T3 Set to Commence. Probe drilling intersects 12m@ 4.06gt/au from North End of Pit

Resources & Energy Group Limited (ASX: REZ or the Company) are pleased to provide an update for the Granny Venn Open Cut.

Highlights

• Preparations are underway for the third GV toll campaign with haulage commencing to Golden Mile Milling's Lakewood Plant
• ROM stocks of 56,000t @ 2.34gt/au for 4300oz of contained metal on site and ready for haulage
• Operations in the east cut back have reached the RL355m mark, with the final production flitches to RL350m expected to be completed over the coming week.
• Potential for resource extension at Granny Venn mine has been enhanced with high grade discoveries identified including 12m @ 4.06gt/au from 1.5m in the north end of pit.
• Drilling investigations at Maranoa have commenced to follow up previously reported 1m@ 33.75gt/au(1) from 37m result and further investigate potential for open cut development
• REZ continuing to unlock Gigante Grande for Gold and Springfield for Nickel and other technology and precious metals

Discussion

Mining operations at Granny Venn have reached the 355mRL and are nearing completion. The final production flitches from 355mRL to 350mRL are expected to be completed over the coming week. Run of Mine stocks on site are estimated at approximately 56, 000t@2.34gt/au for 4300oz of contained metal, refer plates 1 and 2. An additional 14.9kt@0 .79gt/au of low grade and mineralised waste for 378oz of gold has also been stockpiled at site. Preparations are underway for the projects third tolling campaign, with haulage commencing to Golden Mile Milling's Lakewood plant.

(1) ASX Release 17th January 2022	Plate 1 Granny Venn ROM Ore Stocks as a 7th October 2022
ACN 162 869 276 ABN 68 162 869 276	Head Office: Level 33, 52 Martin Place, Sydney, NSW, 2000
	Postal: Level 33, 52 Martin Place, Sydney, NSW, 2000
Twitter: @REZ_GOLD LinkedIN: REZGROUP	T: [phone] | F: [phone] | E: [e-mail] | W: www.rezgroup.com.au

For personal use only

The cutback at Granny Venn has been a very successful venture for the Company and its mining partner BM Mining Services, who have managed the development since commencement in late July 2021. Since that time mine operations have focused on three areas within the Granny Venn pit: the GV Ramp, GV North and GV East. To date approximately 49.5kt of production, primarily sourced from the GV Ramp and GV North cuts has been toll processed at Lakewood, with a reconciled head grade of 2.3gt au, and recovery of 90% for 3264oz au. Revenue from this gold production has largely funded operations. The current ROM stocks of 56kt have a claimed grade of 2.34gt au, however, this estimate is conservative, and the Company has a high expectation that this will be exceeded after milling and reconciliation.

With operations nearing completion, a program of probe drilling below the pit floor has also been carried out using the site blast hole rig. This area is not accessible for cut back mine operations due to end wall constraints but presents opportunity for a resource extension to the north. The occurrence of a high‐grade gold system in the north end of the Granny Venn pit has previously been postulated by the Company after review of historical exploration. This view is not without foundation after visible gold was encountered in one of three cored holes (GVDD21‐02) which were drilled in the north as part of pre‐development exploration activities carried out in May 2021, plate 3.

Granny Venn East Cut Back, 355RL Flitch Ore Production

Three of the probe holes drilled into the pit floor at RL360 intersected significant mineralisation in the north end of the Granny Venn, refer Table 1, and accompanying Appendix 1‐ JORC Table check List.

	Hole Ref	TD (m)	Easting	Northing	RL	Azimuth	Dip	From	To	Length	Au
	Mga Z51	MgA Z51	(Mn)	(m)	(m)	(m)	(ppm)
	GVE_360_probe11	15	315369.9	6717013.5	360.6	0	‐90	0	10.5	10.5	1.95
	GVE_360_probe12	15	315372.3	6717018.7	360.2	0	‐90	0	12	12	3.01
	GVE_360_probe13	15	315373.7	6717024.5	360.6	0	‐90	1.5	12	10.5	4.06

2

For personal use only

Table 1 Granny Venn‐Pit Floor Probe Drilling, Significant Results

The Company will be following these results up with a program of RC investigations which will target this area from surface.

GVDD21_02 from the interval 11.6 to 12.5 metres below pit floor

Additional drilling investigations are also being carried out to test the western highwall of the GV pit, and to follow up a previously reported high grade intersection at Maranoa (1) (1m@ 33.75gt/au from 37m). The Maranoa is being investigated for potential near term open cut operations.

Commenting on the completion of the Granny Venn cut back REZ director Dan Moore said "this is great outcome for the Company, and a fantastic start to 2022, with revenue coming in from Granny Venn to support our exploration efforts across the East Menzies Goldfield. We have some exciting Magmatic Nickel prospects emerging at Springfield, whilst also maintaining our focus on gold exploration across the broader tenement package including the Gigante Grande, Maranoa, Granny Venn West, and Granny Venn North prospects".

Competent Persons Statement and Consent

The information in this release that relates to Exploration Results is based on and fairly represents information compiled by Mr. Michael Johnstone Principal Consultant for Minerva Geological Services (MGS). Mr Johnstone is a member of the Australasian Institute of Mining and Metallurgy and has sufficient experience that is relevant to the reporting of Exploration Results to qualify as a Competent Persons as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr. Johnstone consents to the inclusion in this release of the matters based on their information in the form and context in which it appears.

About Resources and Energy

Resources and Energy Group Limited (ASX: REZ) is an independent, ASX‐listed mineral resources explorer, and miner with projects located in premier mining jurisdictions in Western Australia and Queensland. In Western Australia, the company's flagship is the East Menzies Gold project (EMGP),

3

For personal use only

situated 130km north of Kalgoorlie. The EMGP represents a +100km2 package of contiguous mining, exploration, and prospecting licenses, which are located within a significant orogenic lode gold province figures 1 and 2.

For resource growth, the company's focus is presently exploring the eastern and southwestern sides of the project area (Gigante Grande and Springfield Prospects). On the western side of the project area studies to investigate opportunities for renewed mining operations in M29/189 Granny Venn, M29/141 Goodenough, and M29/427 Maranoa have commenced.

Figure 1 East Menzies Gold Project Regional Location Plan

In Queensland, the company has a 12km2 Mineral Development Licence over the Mount Mackenzie Mineral Resource and retains a further 15km2 as an Exploration Permit. These Development and Exploration Licences are in the Connors‐Auburn Arc and are prospective for high, intermediate, and low sulphidation gold and base metals mineralisation. The current resource has been estimated at 3.42Mt @ 1.18g/t gold and 9g/t silver for a total of 129,000 oz gold and 862k oz silver. A metallurgical test program is currently underway to investigate processing options for primary mineralisation below the current resource extents.

Further information:

Richard Poole

Executive Director

1. [e-mail]

1. [phone]

Approved for Release by the REZ Board

4

For personal use only

Figure 2 East Menzies Gold Project tenement and Operations Plan

5