Tesoro Resources : Drilling confirms district scale potential at El Zorro

A S X A N N O U N C E M E N T

1 2 J A N U A R Y 2 0 2 2

ASX: TSO | ACN 106 854 175

19

only▪

▪

▪

▪

use▪

▪ personalFor

Drilling Confirms District Scale Potential at El Zorro

Infill and extensional drilling continue to expand the Ternera Gold Deposit. Results returned for 22 holes which include multiple, broad, high-grade intercepts. Ternera East mineralised zone continues to expand.

Initial results from Drone Hill and Toro Blanco confirm district scale gold potential. ZDDH0242 is the 21st hole to return a >100-gram metre intercept at the El Zorro Gold Project. Ternera results include:

• ZDDH0242:
• • 17.10m @ 5.10g/t Au from 243.90m; and
  • 9.66m @ 7.58g/t Au from 256.00m;
  • • Contained within 71.00m @ 1.58g/t Au from 225.00m.
• ZDDH0236:
• • 10.06m @ 2.53g/t Au from 345.46m;

• • • Contained within 90.54m @ 0.92g/t Au from 345.46m; and
  • 4.50m @ 3.29g/t Au from 411.85m;
  • • Contained within 25.00m @ 1.28g/t Au from 400.80m.
• ZDDH0245:
• • 9.00m @ 3.44g/t Au from 251.79m; and
  • 30.00m @ 1.78g/t Au from 233.00m;
  • • Contained within 93.50m @ 0.70g/t Au from 216.00m.
• ZDDH0235:
• • 4.74m @ 5.24g/t Au from 267.26m; and
  • 35.00m @ 1.41g/t Au from 246.00m;
  • • Contained within 86.00m @ 0.68g/t Au from 212.00m;
  • 2.60m @ 4.39g/t Au from 478.40m.
• ZDDH0246
• • 5.00m @ 3.55g/t Au from 451.00m; and
  • 26.50m @ 1.31g/t Au from 442.50m;
  • • Contained within 86.00m @ 0.56g/t Au from 442.50m.

• Tesoro has drilled a total of 281 diamond drill holes for 92,074m at El Zorro.
• Assays remain outstanding for 36 diamond drill holes; results will be announced as they become available.

1	[phone] | [e-mail] | Suite 5, 62 Ord Street, West Perth WA 6005 | www.tesororesources.com.au

ASX Announcement 12 January 2022

For personal use only

Figure 1: Ternera Drilling - Collar locations on geology and significant intercepts for holes reported in this announcement. PSAD56/19S datum.

2	[phone] | [e-mail] | Suite 5, 62 Ord Street, West Perth WA 6005 | www.tesororesources.com.au

ASX Announcement 12 January 2022

onlyuse personalFigure 2: Ternera Drill Section 80m looking northwest. For

Figure 3: Ternera Drill Section -40m looking northwest.

3	[phone] | [e-mail] | Suite 5, 62 Ord Street, West Perth WA 6005 | www.tesororesources.com.au

ASX Announcement 12 January 2022

onlyuse personalFigure 4: Ternera Drill Section -60mlooking northwest. For

Figure 5: Ternera Drill Section -160m looking northwest.

4	[phone] | [e-mail] | Suite 5, 62 Ord Street, West Perth WA 6005 | www.tesororesources.com.au

ASX Announcement 12 January 2022

Tesoro Resources Limited (Tesoro or the Company) (ASX:TSO) is pleased to announce latest assay results from drilling at the Ternera Gold Deposit and the Ternera East discovery, located at the Company's El Zorro Gold Project (El Zorro) in Chile.

Tesoro received assays for 22 diamond drill holes completed as part of the current extensional and infill drilling program at El Zorro. Results were received for drilling from Ternera (12 holes), Ternera East (3 holes), Drone Hill (6 Holes) and Toro Blanco (1 hole).

onlyAll targets returned positive results with Ternera infill and extensional drilling highlighting further areas for potential Mineral Resource growth. First pass results from Drone Hill and Toro Blanco were positive, highlighting the potential of the El Zorro Gold Project to host additional gold resources outside of the main Ternera Gold Deposit.

Significant Intercepts are presented in Table 1.

Tesoro Managing Director Zeff Reeves commented:

"Ternera continues to produce some exceptional drill results with infill drilling adding new usemineralisation outside of the existing resource model, and extensional holes continuing to expand

the deposit, particularly to the south."

"We are encouraged by the initial results from Drone Hill and Toro Blanco where drilling encountered the main gold host rock and returned positive gold results indicating that the system is growing as we find favourable geological zones. Considering this is the first time these areas have been drilled it bodes well for further exploration success."

personalDRILLING RESULTS DISCUSSION

Holes ZDDH0233 to ZDDH0237, ZDDH0237A, ZDDH0239, ZDDH0240, ZDDH0242, ZDDH0243, ZDDH0245 a d ZDDH0246 were all drilled as infill and extensional holes at Ternera. All holes retuned positive results expanding existing mineralised zones within the Ternera Gold Deposit. Holes ZDDH0237A and ZDDH0239 were drilled in the southern margins of the deposit and have further defined new mineralised zones which remain open to the south and require additional step out drilling.

ZDDH0232, ZDDH0241 and ZDDH0247 were drilled at Ternera East, with all holes returning positive intercepts. Results continue to confirm the continuity of the newly defined Ternera East gold zone which has now been confirmed by drilling over 700m of strike.

Holes ZDDH0221, ZDDH0222, ZDDH222A, ZDDH224, ZDDH0238 and ZDDH0250 were drilled at the Drone Hill target to the west of the Ternera Gold Deposit. All holes intercepted the favourable El Zorro Tonalite (EZT) host rock and narrow gold intercepts. Best results were from hole ZDDH0238 which returned 3.85m @ 1.73g/t Au including 1.40m @ 4.14g/t Au. The EZT encountered at Drone Hill is interpreted to sit below the main body of EZT which hosts the Ternera Gold Deposit.

Hole ZDDH0244 was drilled at the Toro Blanco target approximately 1km north of the Ternera Gold ForDeposit. The host EZT was encountered in the upper part of the hole along with multiple narrow g ld intercepts associated with quartz veining and fault zones. The EZT intercepted is interpreted to be a thin faulted offset of an upper portion of the main EZT body which hosts the Ternera mineralisation to the south with potential for the main EZT to be buried under sedimentary

sequences to the east. Additional drilling is required to further test this area.

Results from Drone Hill and Toro Blanco confirm the potential of additional mineralised bodies of EZT to occur within the El Zorro Gold Project with work currently underway to vector towards better zones of gold mineralisation for future drill testing and trace mineralisation intersected at depth to surface.

5	[phone] | [e-mail] | Suite 5, 62 Ord Street, West Perth WA 6005 | www.tesororesources.com.au