Sihayo Gold : Exploration Update

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ASX Announcement	25 January 2022

Sihayo Exploration Update

Highlights:

• HUTDDH117 returns 9 m @ 2.47g/t Au and 502g/t Ag (9.35 g/t Au equivalent1) from the southern part of Sihorbo South
• Final results received for all holes drilled at Hutabargot Julu in 2021 - Refer to Table 1
• Results demonstrate the presence of silver rich epithermal gold mineralisation at Hutabargot Julu, which is located approximately 6 km south of the planned Sihayo Processing Plant
• Drilling recommenced in January with one rig at Sihorbo South where mineralisation remains open along strike and at depth and appears to be strengthening to the south
• Further afield, in the south block of the CoW, target generative sampling work continued to deliver encouraging results at Tambang Tinggi with 16 of 40 selected grab samples assayed from 2.2 to 33 g/t gold, and up to 51 g/t silver, 2.0% copper and 2.1% zinc

Sihayo Gold Limited (ASX: SIH - "Sihayo" or the "Company") is pleased to provide an update on exploration activities and results on the Penatapan and Sihorbo South epithermal gold- silver targets located in the northern block of the PT Sorikmas Mining Contract of Work in North Sumatra, Indonesia, and on the progress of target generative work on the southern block.

Sihayo's Executive Chairman, Colin Moorhead commented on the exploration results:

"At Hutabargot Julu we are targeting discovery of higher-grade shallow epithermal deposits that can be mined as satellite pits to augment and enhance the planned Sihayo Starter Project. The drilling conducted in 2021 demonstrates good progress toward that objective. The exploration team also continues to generate exciting discovery targets for future follow up across the broader CoW, with the Tambang Tinggi area strongly anomalous for precious and base metals."

• AuEq (gold equivalent is based on Au g/t + (Ag g/t)/73 and assumes relative prices of USD $1800/oz gold and $24.5/oz silver. Metallurgical test work to date indicated recoveries for both gold and silver to be ~85% from standard leaching as planned at Sihayo

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Table 1: Final results from Hutabargot Julu 2021 drilling program

	Hole ID			From			To			Interval			Au			Ag			AuEq
	HUTDD#			(m)			(m)			(m)			(g/t)			(g/t)			(g/t)
	Penatapan
	105			41.0			47.0			6.0			1.67			7.7			1.78
	Sihorbo South
102		28.0		35.5	7.5		0.58	101	1.96
104		42.5		48.5	6.0		0.52	139	2.42
108		20.0		26.5	6.5		0.31	53	1.04
108		34.0		40.7	6.7		2.55	0.9	2.56
111		24.0		35.0	11.0		0.80	53	1.53
113		84.0		97.0	13.0		0.87	49	1.54
113		158.7		171.0	12.3		0.63	14.7	0.83
115		124.0		148.0	24.0		0.87	43	1.46
116		127.5		134.0	6.5		1.01	127	2.75
	117			96.6			106.0			9.4			2.47			502			9.35

Executive Summary

Following the completion of the initial reconnaissance drilling program at Hutabargot Julu in 2020, Sihayo has now completed three follow-up target drill programs at Sihorbo, Penatapan and Sihorbo South. The results of these initial three follow-up drill programs on the western side of the project confirm the presence of a large epithermal vein field containing multiple centres of gold-silver mineralisation hosted in volcanic rocks.

The Sihorbo target has been downgraded due to its deeper level of erosion and limited potential, however, significant gold-silver intercepts returned from Penatapan and Sihorbo South indicate better potential for shallow preserved gold-silver resources and additional drilling is warranted.

Penatapan is a bulk tonnage gold-silver target defined within a 400 m by 500 m area and associated with disseminated mineralisation in quartz-carbonatestockworks-breccias. It shows potential for low-stripping ratio shallow oxide gold-silver mineralisation from multiple narrow low-to-moderate grade gold-silver intercepts returned in various parts of the prospect and is open to the north and south of the drilled area (refer to Figure 1). Drill results returned to-datehighlight a strong variability of gold and silver grades within the mineralised stockworks. Thicker zones of higher-grademineralisation may be associated with secondary enrichment of gold and silver in limonite and manganese oxides in areas of deeper weathering across the prospect. Additional surface mapping is to be conducted over the next month which will assist in the planning of the next phase of drilling at Penatapan.

Sihorbo South is a discrete epithermal gold-silver target delineated over at least 400 m strike length and to about 100 - 150 m depth in polyphasal quartz-adularia-carbonate sheeted veins and associated stockworks. It is a silver-rich vein system that has returned significant silver- gold intercepts and shows potential for bonanza-grade ore shoots. The latest results continue to demonstrate that the Sihorbo South vein system extends well below existing artisanal mine workings and that significant grades and potential volume remain in the subsurface. As illustrated in Figure 2, this large vein system is open at depth and along strike. Additional drilling is currently in progress at the southern end of Sihorbo South with another 6 to 10 holes to be completed in the coming months.

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Figure 1: Penatapan - Drill hole location plan and gold assay surface projects

Figure 2: Sihorbo South Long Section - Gold-equivalent grade x Estimated true-width

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Photo: HUTDD117

HQ3 drill core slabs

Within interval 100.0 - 103.2 m 3.2m at 6.49 g/t Au & 1,311 g/t Au

Featured colloform banded chalcedony- microcrystalline quartz-adularia- sulphide fill

Hutabargot Julu Overview

The large Hutabargot Julu epithermal gold-silver project is located at the southern end of the Sihayo Gold Belt and approximately 6 km southeast of the proposed Sihayo Starter Project site. Over 10,000 m of diamond drilling have been completed across four programs on the project since the start of drilling in October 2020:

• Initial reconnaissance drilling including 25 holes for approximately 4,806 m
• Targeted drilling at Sihorbo with 8 holes completed for 1,679 m
• Penatapan testing a broader vein-stockwork target with 11 holes for 2,557 m
• Sihorbo South epithermal vein target with 17 holes for 2,321 m completed to date

The initial drilling program at Hutabargot Julu was of a reconnaissance nature and consisted of widely spaced drill holes testing a 3.5 km x 3.0 km gold-soil geochemical anomaly highlighted in previous work by the Company. Multiple gold-silver intercepts were returned in 21 of the 25 holes completed in this program and supported the Company's view of potential for bulk tonnage disseminated gold and higher-gradegold-silver vein targets across the Hutabargot Julu project area (refer to SIH:ASX announcements of 26 November 2020, 17 December 2020, 16 March 2021 and 12 April 2021).

Figure 3 illustrates the widespread distribution of anomalous gold and the occurrence of multiple "hot-spots" of higher-grade gold mineralisation highlighted from historic and 2020 reconnaissance drilling across the Hutabargot Julu project area. The geological interpretation of the historic and reconnaissance drilling database was recently revised. This was based on relogging of drill holes from core photos collected in the reconnaissance program and from a thorough review of the historic surface geochemistry and geophysical data, the latter including reprocessed and imaged magnetics data from the 2012 airborne survey by Intrepid Geophysics P/L.

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The widespread gold-silver mineralisation at Hutabargot Julu occurs in structurally controlled, intermediate-sulphidation epithermal veins, stockworks and hydrothermal breccias that are thought to represent a series of mineralised hydrothermal fluid cells within a structurally complex block faulted tectonic setting. The project area represents an extensively mineralised, fossilised geothermal system centered on a volcanic graben basin that was filled by subaerial andesitic-dacitic volcanosedimentary rocks, high-levelandesite-dacite intrusions and associated intrusive and eruption breccias. The basement rocks comprise older diorite and granite intrusions, and marine basaltic andesites and calcareous volcanosedimentary rocks.

Block faulting associated with the Sumatran Fault Zone has uplifted and down-dropped different segments of the mineralised rocks resulting in varying levels of erosion, exposure and preservation of the mineralised targets across the Hutabargot Julu area. Our current interpretation is that higher grade vein and stockwork targets have been uplifted and exposed toward the southern and western sides of the prospect, and that lower grade breccias and stockworks occur toward the northern and eastern sides of the prospect. Figure 4 provides a schematic illustration of this current interpretation.

Figure 3: Hutabargot Julu Project - Historic and Reconnaissance Drilling "Heat Map"

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