Sunshine Gold : Encouraging Met Test Work & Diamond Holes at Triumph

Figure 1. Broad altered and mineralised interval from diamond drill hole 22SHDD001 (65.9m - 69.2m).

ASX Announcement

26 May 2022

ENCOURAGING RESULTS FROM METALLURGICAL TEST WORK & DIAMOND HOLES AT TRIUMPH

Sunshine Gold Limited (ASX:SHN, "Sunshine Gold", "the Company") is pleased to announce the results of preliminary metallurgical test work from the Triumph Au Project.

HIGHLIGHTS

• Expanded metallurgical test work program completed to assess recovery by gravity, cyanide leaching and/or float
concentrate. Positive results were received for all methods tested, providing optionality to future processing.
only• The test work demonstrates excellent laboratory gold recoveries for each method, and it is expected that these
results can be even further improved by a combination of methods (which is typical in practice):
o	Gravity test work recovery results up to 79.1% (averaging 66.9%)
o	Flotation test work recovery results up to 97.6% (averaging 92.1%)
o	Cyanide leach gold extractions range up to 95.9% (averaging 86.7%)
use• Assays for four diamond drill holes returned encouraging results including:
o	3.2m	@ 6.74 g/t Aufrom 27.8m (22NCDD001)
o	4.5m	@ 2.16 g/t Aufrom 30m (22SHDD001)
o	And 10.8m @ 1.89 g/t Aufrom 59m (22SHDD001)
1.3m	@ 12.72 g/t Aufrom 58m (22SCDD001)

personal

Sunshine Gold's Managing Director, Damien Keys commented: "Preliminary test work results are positive from a Forange of different extraction techniques. This allows Sunshine Gold to explore all options for on-siteprocessing or toll

treating at Triumph in the future.

Assay results from four diamond holes drilled highlight the endowment potential of the Triumph Southern Corridor. The holes have been geologically and geotechnically logged, providing important data on vein thicknesses and orientations. The next phase of drilling, to commence in August 2022, will set out to expand on the 118koz JORC Resource released in March 2022. We are excited by the potential for growth at Triumph and look forward to a Resource update later in the year."

SUNSHINE GOLD LIMITED (ASX:SHN)

Directors:	Queensland Office:	Contact:	Capital:
Mr Alec Pismiris	1/23 Mackley Street	T [phone]	Ordinary shares: 467,822,730
Dr Damien Keys	Garbutt QLD 4814	E [e-mail]	Unquoted shares: 151,900,000 (24m Esc)
Mr Anthony Torresan		Wwww.shngold.com.au	Deferred shares: 50,000,000 (24m Esc)
Mr Paul Chapman		ABN 12 063 388 821	Unlisted options: 65,000,000 (24m Esc)
Mr Les Davis			Unlisted plan options: 2,700,000
			Perf Rights: 8,500,000 (24m Esc)

Table 1. Lowest, highest and average of all gravity test work results. Individual test results are available in Appendix 1.

Tail

Total Grav

Mids 2

Mids 1

2.70

1.45

41.8 1.3

0.3 94.5

20.9

89.6

58.2 15.1

20.9

79.1

5.5

10.4

3.0 2.7

23.5 8.6

5.5

7.3

17.2 13.5

16.6 21.6

1.9

2.1

56.4 86.00

50.6

18.1

1.0

1.0

(80µm Grind)

Grade

(g/t)

Grade

(g/t)

Recov Au (%)

Recov Au (%)

Mass

Pull (%)

Mass

Pull (%)

Lowest

Highest

GRAVITY

TESTWORK

2.71

8.6

91.4

12.6 5.6

66.9 19.9

33.1 1.1

4.9

16.4 16.3

2.4

38.0 69.4

1.3

Grade

(g/t)

Recov Au (%)

Mass

Pull (%)

Average

ASX Announcement

26 May 2022

FIRST STAGE METALLURGICAL PROGRAM, TRIUMPH

Five sample locations were selected to assess metallurgical recoveries across the defined JORC Resource (Refer to

onlyFuture test work will seek to assess combinations of gravity/leach or gravity/float circuits. Future test work will also be conducted to assess grinding parameters (comminution).

ASX release dated 31 March 2022). The samples were selected from composited, RC drilled intervals within the Southern Corridor JORC Resources at Big Hans, Big Hans North, Super Hans, New Constitution and South Constitution.

A series of studies sought to determine recoveries via gravity separation, cyanide leach and flotation.

Gravity Test Work

useThe tests were set up to simulate a gravity recovery stage as part of a milling circuit. Excellent gravity recoveries were achieved with an average gold recovery of 66.9% achieved from the five samples.

personalGemeni Table Con Calc Feed Grade

Bottle Roll Test Work

Basic bottle roll tests simulate the cyanide leaching stage of a conventional gold milling circuit. Constant cyanide concentrations were used for all the bottle roll leaching tests. The results of the optimisation work are shown in the table below. For comparison, leach tests were performed on samples at two grind sizes (80µm and a fine grind 45µm). Pleasingly, recoveries and consumptions were almost identical from both grind sizes. An average of the gold

recovered at an 80µm grind size is 85.3% versus a recovery at 45µm grind size of 86.7%

For

BOTTLE ROLL

Lowest

Highest

Average

TESTWORK

(80µm Grind)

Recov

Grade

Tail

Recov

Grade

Tail

Recov

Grade

Tail

Grade

Grade

Grade

Au (%)

(g/t)

Au (%)

(g/t)

Au (%)

(g/t)

(g/t)

(g/t)

(g/t)

24 Hr Au Leach Recov

76.0

1.8

0.6

95.9

7.1

0.3

85.3

2.7

0.3

(80µm Grind)

24 Hr Au Leach Recov

74.9

1.7

0.6

95.0

6.5

0.3

86.7

2.8

0.3

(45µm Grind)

Table 2. Lowest, highest and average of all bottle roll test work results. Individual test results are available in Appendix 2.

Future bottle roll test work will optimise recovery through direct cyanidation with gravity recovery and assess the effect of oxygen or air sparged through the slurry.

SUNSHINE GOLD LIMITED (ASX:SHN)

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Table 3. Lowest, highest and average of all flotation test work results. Individual test results are available in Appendix 3.

ASX Announcement

26 May 2022

Flotation Test Work

Flotation test work was completed to assess the amenability of the feed to produce a gold concentrate. The sample feed passed through a series of six rougher flotation cells to produce a concentrate. An average of the five tests completed shows a concentrate grade produced of 29.8g/t Au, recovering at 92.1% from 8.4% of feed (mass pull).

			FLOAT					Lowest						Highest							Average
			TESTWORK
only					Recov		Grade		Mass Pull			Recov Au		Grade		Mass Pull			Recov Au		Grade		Mass Pull
	(80um Grind)			Au
						(%)		(g/t)		(%)			(%)		(g/t)		(%)			(%)		(g/t)		(%)
use	Rougher 1	66.5	42.0		4.3		82.5	82.8	5.3		67.0	57.9	3.5
Rougher 2	7.2	10.4		1.9		15.1	72.3	1.1		15.3	28.0	1.6
Rougher 3	2.1	4.8		1.2		0.0		NSS	0.6		6.3	11.8	1.1
Rougher 4	0.5	1.6		0.9		0.0		NSS	0.7		2.7	6.8	0.9
Rougher 5	0.5	2.3		0.6		0.0		NSS	0.7		0.5	3.5	0.7
Rougher 6	0.3	1.3		0.5		0.0		NSS	0.6		0.3	1.6	0.6
		77.0	22.1		9.4		97.6	57.4	9.0		92.1	29.8	8.4
		Recoverable
			Tail	23.0	0.7		90.6		2.4	0.1	91.0		7.9	3.9	91.6
		Calc Feed Grade			2.69						5.31						2.76
personal	o 3.2m @ 6.74 g/t Aufrom 27.8m	(22NCDD001)

TRIUMPH DIAMOND DRILL RESULTS

Four diamond core holes were completed for a total of 523.5m across the four principal areas of interest within the S uthern Corridor. The average hole depth was 130.8m. The holes were drilled to characterise the mineralisation style, vein orientations and to provide specific gravity data for JORC Resource estimation.

Encouragingly, all four holes successfully intercepted mineralisation, represented by quartz-pyrite(-arsenopyrite) veining with sericite(-quartz) alteration selveges. The structural measurements confirmed the two preferential orientations for mineralisation as east-west and northwest-southeast, dipping from steep to sub-vertical. The pr ferred vein orientations are consistent with the overall modelled deposit orientations.

The best intersections from the diamond drill holes included:

For	o	4.5m	@ 2.16 g/t Aufrom 30m	(22SHDD001)
	& 10.8m @ 1.89 g/t Aufrom 59m	(22SHDD001)
o	1.3m	@ 12.72 g/t Aufrom 58m	(22SCDD001)

While the sericitic alteration assemblage around the veins naturally softens the host tonalite, the zones typically remain competent throughout the mineralised zone. Minor late, porphyritic basaltic dykes crosscut the tonalite but are not believed to be associated with the mineralising phase. The diamond core structural and lithological information will be used to update the current geological model, with assay results incorporated into future JORC Resource estimations.

SUNSHINE GOLD LIMITED (ASX:SHN)

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ASX Announcement

26 May 2022

use only
personal	Figure 2. Sulphide-rich mineralised position in diamond hole 22NCDD001 (28m - 29m).

NEXT STEPS TRIUMPH

Drilling will return to Triumph to extend the delineated Southern Corridor JORC Resource in August 2022. First drilling will also occur along the Northern Corridor where historic drilling intercepted 3m @ 24.96 g/t Au (17m, TDH155).

An updated JORC Resource estimate is planned for December 2022.

PLANNED ACTIVITIES
• June 2022:	IP/MT Survey Wilburs Hill - Smiths, Ravenswood West
• June 2022:	RC drilling, Titov & Bank, Ravenswood West
• June 2022:	Gagarin IP Survey, Ravenswood West
• June 14-15, 2022:	Australian Gold Conference, Sydney
• June 23-24, 2022:	RIU Investment Showcase Conference, Gold Coast
• July 2022:	Gagarin IP Survey, Ravenswood West
• July 20-22, 2022:	Noosa Mining Conference, Noosa
For	Quarterly Report
• July 2022:
• July-August 2022:	Electromagnetic & magnetic geophysical survey,	Investigator
• July 2022:	Results of rare earth characterisation study, Ravenswood	West
• August 2022:	RC drilling- Southern & Northern Corridors, Triumph

SUNSHINE GOLD LIMITED (ASX:SHN)

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ASX Announcement

26 May 2022

	ENDS
For further information:
Dr Damien Keys	Mr Alec Pismiris
Managing Director	Director & Company Secretary
Telephone: [phone]	Telephone: [phone]
onlyE-mail:[e-mail]	E-mail:[e-mail]
use

This ASX announcement is authorised for market release by the Board of Sunshine Gold.

Competent Person's Statement

The information in this report that relates to Exploration Results is based on, and fairly represents, information compiled by Dr Damien Keys, a Competent Person who is a Member of the Australian Institute of Geoscientists (AIG). Dr Keys has

sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration, and to the personalctivity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the JORC Code. Dr Keys consents to the inclusion in the report of the matters based on his information in the form and context in which it

appears. For

SUNSHINE GOLD LIMITED (ASX:SHN)

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