Sunshine Gold Limited provided an update on diamond drilling at Titov Cu-Ag-Mo target, Ravenswood West. Titov Diamond Drill Hole: The Titov diamond drill hole was completed in late December 2021. The 501.5m deep hole, 21TVDD001, collared approximately 300m south-east of the surface outcrop.

The drill hole targeted an Induced Polarisation (IP) anomaly, interpreted to be an extension of the Cu-Ag-Mo mineralisation intersected in the recent RC drilling. The sulphide abundance in the mineralised zone adequately explains the IP anomaly. The drill hole geology is summarised below: 0m ­ 135m: Granodiorite host.

Sparse quartz veining with weak potassic or sericitic vein selvedges (altered host rock on vein margins). Weak disseminated pyrite and chalcopyrite throughout. Two sheared zones (70m and 90m) contain molybdenite (Mo) + pyrite (Py) + chalcopyrite (Cpy) fracture fill.

An intense potassic alteration halo is seen to surround a vein at 149.4m. The halo emanates approximately 1m either side of a 2cm thick quartz vein that contains abundant chalcopyrite. 135m ­ 300.1m: Potassic altered granodiorite.

The intensity of alteration increases toward the end of the interval. Weakly disseminated chalcopyrite is observed throughout the interval. A sharp contact between the potassic zone and the mineralised zone is observed at 300.1m.

300.1m ­ 384.4m: Mineralised zone. Intense chlorite and sericite alteration appears to be overprinting potassic altered host. Quartz veining abundant, often containing coarse molybdenite and chalcopyrite.

Disseminated chalcopyrite is common throughout the interval. 384.4m ­ 460m: Potassic altered footwall. The intensity of alteration decreases toward the end of the interval.

Chalcopyrite-pyrite is common in quartz veining and weakly disseminated chalcopyrite is observed throughout the interval. Quartz veining becomes less regular and veins typically thinner toward the end of the interval. 460m ­ End of Hole: Granodiorite host.

Sparse quartz veining with weak potassic or sericitic vein selvedges. The drill hole has now been geologically logged. Structural data has also been collected from the oriented core.

The core will be cut and assayed, with results expected by the end of March 2022. Potassic Alteration (135m ­ 300.1m): The granodiorite host becomes pervasively potassic altered. The intensity of alteraon increases from weak to intense toward the end of the interval.

The pervasive potassic alteraon also contains weak disseminated pyrite and chalcopyrite throughout. A sharp contact between the potassic zone and the mineralised zone is encountered at 300.1m. Mineralised Zone ­ Strong Sericitic Alteration (300.1m ­ 384.4m): The rocks are heavily brecciated and contain disseminated molybdenum throughout the sericite altered zone either side of the abrupt upper contact.

Quartz veining is abundant throughout the mineralised zone. Veins vary in width from 1cm width to 60cm width and regularly contain coarse molybdenite and chalcopyrite. The zone reflects quartz abundances logged in the RC drill program and appears similarly proporonal to the amount of veining mapped in surface outcrop.

Mineralised Footwall Zone ­ Potassic Alteration (384.4m ­ 460m): The main chlorite-sericite-quartz mineralised zone grades into a zone of potassic alteraon. The footwall potassic zone is characterised by regular quartz veining (1cm to 10cm thick) that typically contains chalcopyrite and pyrite. The regularity and thickness of the veining decreases at depth in the interval.

As observed in the RC drilling, negligible molybdenite was observed within the footwall zone. TITOV CU-AG-MO (Sunshine Gold 100%): Titov is a swarm of Mo-bearing quartz veins hosted within a malachite (Cu carbonate) stained granodiorite. The prospect is located on a hill and is devoid of trees, owing to the elevated Cu in soils.

A shaft and series of shallow copper workings are spread across the 300m x 120m surface anomaly. Sunshine Gold completed RC drilling (8 holes, 1550m) at Titov in September 2021. The program's objectives were to: Confirm large thickness intervals of Cu and Mo; Define zones of high-grade mineralisation within the broader mineralised envelope; Assess potential for Au-Ag mineralisation within the Cu-Mo; and Test the nature of the emerging IP chargeability anomaly at depth.

The RC drilling program provided geological and geochemical information over 200m of strike extent. The drilling program intersected broad zones of copper, molybdenum and silver mineralisation in all drill holes. The thick intersections (estimated 100m true thickness) coincide with the some of the high copper grades in the easternmost holes drilled by Sunshine Gold; 21TVRC007 and 21TVRC008.

However the highest grade copper interval, 10m @ 1.32% Cu, 0.02% Mo and 2.11g/t Ag, was intersected in the deepest RC hole of the program (21TVRC006). Diamond drill hole, 21TVDD001, is interpreted to intersect the Titov lode 230m down dip of this high-grade intersection. The highest molybdenum grade interval intersected was 6m @ 3.02% Mo, 0.42% Cu and 3.94g/t Ag (21TVRC004, 70m).

A detailed review of the multi-element geochemistry will be completed on return of the assay data. This information will be important in determining mineral zonation and vectoring toward higher grade Cu-Mo and/or Au bearing mineralisation. The diamond hole will add further information regarding the metal zonation at depth.

To date, broad relationships observed include: More elevated Mo in the western end of the Titov lode grading to moderate Mo grades in the east; Most elevated Cu grades and thickness of intercepts in the eastern end of the tested Titov lode system, grading to moderate grades and thinner widths in the west; and Increasing Cu grades at depth. A >10ppb gold in soil anomaly is present to the east of the station track at Titov (Figure 9). The elevated Cu grades and increased thickness of lode on the east of the RC program, coupled with the gold in soil anomalism present an obvious follow up drilling opportunity for testing in 2022.

NEXT STEPS: The core will be cut and assayed, with results expected in late March 2022. Once cut, select samples of core will be sent for petrology to better understand the timing of alteration events and mineralisation. Historic diamond drill core from Titov drilling in 1967 has been located at the Queensland Exploration Data Centre, Brisbane.

SHN geologists will assess the condition of the historic core in February and relog and photograph all available drill core. SHN have submitted application to cut and sample the historic core. Follow up RC is being planned to test the eastern extension to the Titov mineralised system at relatively shallow depths.

The drilling is planned to commence in April 2022.