Sunshine Gold : Robust Maiden Resource at Triumph Gold Project

ROBUST MAIDEN RESOURCE AT TRIUMPH GOLD PROJECT

Sunshine Gold Limited (ASX:SHN, "Sunshine Gold", "the Company") is pleased to announce a maiden JORC 2012 Mineral Resource Estimate ("Resource") at the 100% owned Triumph Gold Project ("Triumph") totalling 1.8 million tonnes at 2.0 g/t Au for 118 koz of contained gold.

HIGHLIGHTS

• • Maiden Resource delivered in 16 months since drilling commenced in December 2020 at a discovery cost of A$20.83 /oz, plus acquisition cost of A$3.39 /oz.

• • Resource independently prepared by Measured Group, Brisbane.

• • Bulk of the Resource is located over ~1.25 km of strike in the Triumph Southern Corridor. Accordingly, the Resource comprises only ~25% of the >5km long Southern Corridor with significant potential to grow along strike and at depth. Further untested geophysical targets are likely to extend the Southern Corridor further still.

• • All Resources are open along strike and at depth and are expected to grow steadily over 2022. The next planned Resource update will be in the December 2022 quarter following extensional drilling in mid-2022.

• • Encouragingly, initial metallurgical test work indicates recoveries in excess of 96%. Further metallurgical test work on new diamond drill core is anticipated to allow for the conversion of a portion of the Inferred Resource to Indicated Resource.

• • Drilling is scheduled to recommence in June 2022.

Sunshine Gold's Managing Director, Damien Keys commented: "We are pleased to report a maiden Resource at Triumph from a modest amount of drilling. The low cost per ounce of the Resource addition is testament to the systematic nature of the exploration effort. Our team has successfully targeted and drilled a robust Resource within the first 16 months since acquisition. All this while conducting first pass exploration at Ravenswood West, Hodgkinson and Investigator.

The maiden Resource at Triumph has initially focussed on small centres within the broader Southern Corridor - a mineralised network of coalescing faults and veins. There is certainly scope to extend the known mineralisation as the Resources remains open along strike and at depth. Mineralisation along the broader Southern Corridor, identified in previous drilling and IP geophysical data, is expected to further expand the Resource during 2022.

Drilling will recommence at Triumph in June 2022, with a focus on extending the Resource in the Southern Corridor and delineating new Resources in the Northern Corridor near historic workings."

NEXT STEPS AT TRIUMPH

Field activities, drilling and further studies will continue at Triumph through 2022. Key activities include:

• • Completion of further metallurgical work on recent diamond drill core;

• • Incorporation of diamond drill assay results into Resource model;

• • Field mapping of Resource extensional areas and refinement of drill targets;

• • Recommencement of drilling in June 2022 including: Southern Corridor extensions and testing of select targets within the Northern Corridor; and

• • Resource update December 2022.

SUNSHINE GOLD LIMITED (ASX:SHN)

Directors:	Postal Address:	Contact:	Capital:
Mr Alec Pismiris	PO Box 572	T [phone]	Ordinary shares: 467,822,730
Dr Damien Keys	Floreat WA 6014	E [e-mail]	Unquoted shares: 93,400,000 (24m Esc)
Mr Anthony Torresan	Queensland Office:	Wwww.shngold.com.au	Deferred shares: 100,000,000 (24m Esc)
Mr Paul Chapman	3/50 Tully Street	ABN 12 063 388 821	Unlisted options: 65,000,000 (24m Esc)
Mr Les Davis	South Townsville QLD 4810	Unlisted plan options: 2,700,000
Perf Rights: 17,000,000 (24m Esc)

MAIDEN RESOURCE - TRIUMPH GOLD PROJECT (100%)

The Resource comprises three zones totalling ~1.25 km of strike within the >5km long Southern Corridor, with >90% of the Resource ounces at less than 100m depth. Identified mineralisation spanning >3.75 km is not yet included in the Resource and presents an opportunity for growth in future drill programs.

The Resource is presently classified as Inferred as further metallurgical studies and diamond drill hole assays have not yet been returned. It is anticipated that upon receiving the assay and metallurgical results, a moderate proportion of the Inferred Resource will be reclassified to Indicated with little further work required. The Inferred to Indicated Resource update will be assessed and reported in December 2022.

Resources are reported at a 1.0 g/t Au lower cut-off grade which is deemed acceptable based on approximate industry costings associated with open pit mining.

Triumph Gold Project	Category	Tonnes	Grade	Contained Au
,000 tonne	(g/t)	,000 ounces
Southern Corridor	Inferred	1,497	2.1	100

Northern Corridor

Total

•	Big Hans	Inferred	493	2.3	37
•	New Constitution	Inferred	690	2.0	44
•	Super Hans	Inferred	314	1.9	19
Inferred	311	1.8	18
Inferred	1,808	2.0	118

Sunshine Gold considers that Triumph has a reasonable expectation of being mined taking into account the depth, thickness, stacked nature of the veining, grades of deposits, metallurgical recoveries, proximity to toll treating mills and the presence of an operating mine. The hilly terrain also acts to reduce the potential strip ratio of any mined lodes.

The Resource has been independently estimated by Measured Group (see Competent Person's Statement) based on geological information supplied by Sunshine Gold. Resources at depth are drilling constrained with strong prospects of increasing through extensional drilling. Resources have been determined by 3D modelling of the vein systems and grade estimation using ordinary kriging. A full summary of the Resource methodology and validation is included in the relevant JORC tables attached to this announcement.

Figure 1. Long section (looking NW) of the block model, from the main mineralised surface at New Constitution, Southern Corridor. The model shows continuity of > 1g/t Au over 350m strike. The New Constitution model is comprised of 9 veins in total.

FURTHER RESOURCE GROWTH POTENTIAL

Sunshine Gold views the maiden Resource as an interim step and further Resource growth is targeted throughout 2022 with an updated Resource estimate expected in December 2022.

Given that the maiden Resource comprises only 25% of the defined mineralised Southern Corridor, which is open along strike and at depth, the potential for Resource growth is significant. Sunshine Gold will continue to systematically assess targets generated from Induced Polarisation (IP) geophysical data, historic drilling, mapping, rock chip sampling and drilling.

SOUTHERN CORRIDOR GROWTH

Resource has now been delineated in three discrete positions within the Southern Corridor. Mineralisation is interpreted to continue through untested zones between the delineated Resource areas. The mineralised fracture network has been modelled using a combination of drill intercept data, surface and downhole geochemical data and historical electrical geophysical methods (IP and EM). The delineated fracture network extends for >5km of mineralised strike length, of which ~1.25km (25%) has been incorporated into the maiden Resource. Follow up work will focus on extending the Southern Corridor from the Resource westward towards the margin of the Norton Tonalite.

Rock chip sampling also highlights the contact of the Norton Tonalite and surrounding metasediments as containing anomalous gold. Further mapping will refine targets on the Norton Tonalite contact for future drill testing.

Figure 2. Current Resources (black) and projected mineralisation (pink) correlate well with elevated chargeability (2016 Gradient Array IP data). Yellow arrows highlight extensional areas to be drill tested in June 2022 campaign for Resource growth.

NORTHERN CORRIDOR GROWTH

A series of highly encouraging drill results coincide with historic workings in the Northern Corridor. Sunshine Gold will complete RC drilling with a view to adding new Resource in the vicinity of historic workings where previous drilling has intercepted 3m @ 24.96 g/t Au. These workings were some of the deepest and highest grade workings on the Norton Gold Field with 4,044 ounces of gold at a grade of ~3.5 ounces per tonne being produced between 1895 and 1908.

Figure 3. Current Resource (black) and projected mineralisation (pink). Yellow arrows highlight extensional areas to be drill tested in June 2022 campaign for

Resource growth.

MAIDEN RESOURCE - SUPPORTING INFORMATION

Geology and Geological Interpretation

The Triumph Gold Project is located within Yarrol belt of the Wandilla Province (New England Orogen), where late Permian to Middle Triassic leucocratic intrusives are scattered throughout Devonian and Carboniferous sediments. It is within one of these intrusives, the Norton Tonalite, where Triumph is centred.

Lithology

The delineated Triumph Resource is located within the Norton Tonalite. The Norton Tonalite is a phaneritic intrusive primarily comprised of plagioclase and quartz, with lesser amounts of primary k-feldspar and biotite. The Tonalite is of Late Permian age to Early Triassic age and is intruded into Late Devonian sediments of the Wandilla Formation. Further Permian intrusives, such as the Many Peaks Granite and associated gabbros, are in contact with the Norton Tonalite to the south and east.

On a local scale, the Norton Tonalite is dissected by numerous brittle faults and shears, as well as common minor mafic intrusive dykes of dolerite to basaltic composition. Whilst known to be barren, the relationship between the mafic dykes and the mineralisation is yet unclear.

A distinct low magnetic signature at the core of the Norton Tonalite likely relates to a different intrusive phase, which is yet to be drill tested.

Structure

The Norton Tonalite is sinistrally offset (in plan) by ~1.8km, by the northwest-trending Norton / Yarrol Fault - a semi-regional fault which is traced for over 28km. Whilst the fault is clearly post-intrusive, it remains unclear whether the fault was active at the time of gold mineralisation.

On a local scale, the Norton Tonalite dissected by two distinct fracture orientations which are both known to host gold mineralisation. One fracture set is broadly east-west striking, the other northwest-southeast striking. Both fracture orientations are likely to have formed contemporaneously.

Alteration and Mineralisation

Gold mineralisation is hosted within quartz-sulphide veins and is broadly associated with pyrite and arsenopyrite. The veins typically show a sericite (-chlorite) alteration halo, however this appears to be more associated with the quartz veining itself rather than sulphides.

Targeted drilling during recent programs has focussed on an area known as the "Southern Corridor". The Southern Corridor comprises historical workings including Big Hans, Super Hans, New Constitution, South Constitution and Brigham Young. The Big Hans area is a mineralised trend which strikes southeast from the third-party mining lease boundary for ~650m. This trend has a number of historical workings.

Super Hans is an east-west trending zone which continues over 300m. The main zone strikes east-west whilst possible secondary trends are aligned west-northwest. It is possible that the Big Hans trend either merges into or is terminated by the Super Hans trend. To the east, it is hypothesised that the mineralisation is terminated, or more likely offset by, the Norton Fault. The New Constitution trend also consists of a number of workings in a southeast orientation. The trend largely consists of two worked zones - a southern and northern. The southern area sits at the confluence of an east-west trend known as South Constitution. The northern area is located ~320m northwest and encompasses an area also known as Brigham Young, which was also reported as an east-west trending zone.

The South Constitution area was identified during Sunshine Gold's maiden drill program at Triumph where drill hole 21NCRC001 intersected 3m @ 2.50g/t Au and subsequent hole 21NCRC008 intersected 6m @ 13.11g/t Au. Modelling of this zone indicated a steep northerly dip to the interpreted east-west trending mineralised zone.

Sampling and Sub Sampling Techniques

Drill hole data has been composited downhole prior to the geostatistical analysis, continuity modelling and grade estimation process. A 1m sample composites was used which comprises over 99% of the raw sample lengths, in order to minimise any bias due to inconsistent sample lengths.

Data used comprises Sunshine Gold's reverse circulation drilling and historical reverse circulation and diamond drilling.

Drilling Techniques

RC drill holes were collared using an 8-inch hammer bit to a depth of 10m and then reduced to 5.5-inch for the remainder of the hole. The metre samples were delivered as an 87.5% (bulk sample) to 12.5% (laboratory sample) split.

The laboratory sample was collected in a calico bag, pre-numbered with a sample ID. The bulk sample was collected in plastic green bags which were pre-numbered with meterage intervals. The bulk sample was then speared, sieved and washed and then logged by the rig geologist, who recorded the lithology, alteration, mineralisation, veining, structure and oxidation. A small representative sample of the interval was then placed into a plastic chip tray which was marked with the corresponding hole ID and metre interval. The chip trays were then stored at the Sunshine Gold office for future reference and the laboratory samples were dispatched for assay.

Criteria Used for Resource Estimation

All Resources are currently classified as Inferred. All drill hole summary data utilised in the Resource can be seen in Appendix B. Drill section fences are typically spaced 40m apart with holes spaced to 20m on section. Drilling orientations relative to the interpretation of veins is not always ideal for the deposits at Triumph due to topographic constraints. Diamond core structural measurements through mineralised vein intercepts were used to guide the vein 3D modelling interpretation.