African Gold : AUGER DRILLING AND SOIL GEOCHEM DEFINE TARGETS AT WALIA

only		4 July 2022
ASX Announcement
	AUGER DRILLING & SOIL GEOCHEMISTRY DEFINE TARGETS AT
	WALIA GOLD PROJECT, WEST MALI
	MAIDEN RC DRILLING PROGRAM SCHEDULED FOR Q4, 2022
HIGHLIGHTS
use	• First order gold geochemical anomalies have been defined over 15km of strike extent of the
prolific Senegal Mali Shear Zone (SMSZ), with peak values up to 2g/t Au in the soils/auger
program
• Walia Project is 5km along strike from Barrick Gold Corporation's +14Moz Loulo Mine

Complex

• Six high priority drill targets within the anomalies have been identified based on gold and associated multielement geochemistry

1. All targets are supported by prospective lithology and structure sites interpreted from mapping and airborne magnetic and electromagnetic data

personal	Mali
	o Targets range from approximately 1km to 5km in length with the majority untested
	by historical drilling
	• 4,000m RC drilling program is now scheduled for Q4 2022 post-wetseason to evaluate
	priority targets at Walia, Falémé and Sitikili Gold Projects all located within the KKI of West
African Gold CEO and Exploration Manager, Glen Edwards, commented:
For

"The Walia-Kofi Ouest Gold Project has an excellent address, straddling the prolific Senegal Mali Shear Zone (SMSZ) and its associated 2nd and higher order structures.

"Despite being along strike from one of Mali's largest gold complexes, Walia remains underexplored primarily because large portions of the permit are under in-situ and transported cover up to 20m thick.

"Mapping and auger drilling has identified a complex package of highly altered and deformed lithologies, predominantly north-north-east or north-north-west trending (depending on which side of the SMSZ you're located) including: metasediments, volcaniclastics, pre- and post- tectonic intrusive bodies and breccias similar to host rocks found in Barrick's Tier One 14moz Loulo Gold Mining complex only ~5km to the south of Walia.

"Recently completed soil geochemical and auger drilling programs have identified a number of robust onlyanomalies, that in many cases are supported by associated pathfinder and indicator multi-element responses as

well as conceptual geology-structural-magnetic-electromagnetic targets.

"Six of these have been prioritised for RC drilling which is scheduled to start late Q4 2022, post the wet season in west Mali. At the same time, we will follow-up with RC drilling on the aircore results from our 2020 program on the Falémé Project and a number of recent and historical drill intercepts at Sitikili."

For usepersonal

Figure 1: A1G's Walia Gold Project showing priority targets for RC drill testing. Also shown is the interpreted position of the SMSZ and higher order structures, areas of ferricrete/colluvium cover, imaged gold in soil & auger, targets, all historical RC/RAB/AC drilling (maximum down hole gold) on a grey scale magnetic image.

Walia Gold Project (Kedougou-Keneiba Inlier), Mali

onlyAfrican Gold Limited (ASX: A1G, African Gold or the Company) is pleased to provide an update on its Walia Gold Project located in the Kedougou-Kenieba Inlier (KKI) of west Mali. The southern boundary of the Walia - Kofi Ouest property abuts the Barrick Gold Corporation +14Moz Loulo Mine Complex and mine lease1. The Mine Complex hosts many deposits which are diverse in terms of host lithology, geometry, nature and style of mineralisation, but are common in that they are typically interpreted to be located along 2nd and higher order structures associated with the SMSZ and largely linked to transtensional events.

Mapping by African Gold of exposed basement in windows to cover has provided valuable insights into the usegeology. The Company is highly encouraged by what we see in these rocks in terms of complex deformed and altered lithotypes that are similar to those seen hosting deposits elsewhere in the KKI. The geology to the west of the interpreted position of the SMSZ is dominated by north to north-north-east trending folded limestones, greywackes, conglomerates and volcaniclastic sediment intruded by a post tectonic granite to the extreme west.

The interpreted position of the roughly north to north-west trending SMSZ is marked by discordant lithology with the eastern sequence being dominated by intercalated north-north-west trending sericite schists, argilites, arenites, quartzites, clastic sediments and tourmaline breccias. A deformed, foliated and altered pre- to syn-

tectonic granodiorite appears to lie close to the position of the SMSZ. Airborne magnetic and electromagnetic personalsignatures are fundamentally different on either side of the SMSZ as is background geochemistry.

The regolith terrain of Western Mali is some of the most variable and complex in West Africa. The property is dominated by extensive high, old, laterite and ferricrete capped plateaus, that are frequently observed in the region to have been leached of gold and represent a geochemical mask to any underlying mineralisation. The complex and variable regolith terrain leads to false positives and false negatives from conventional soil sampling and other near surface geochemical exploration. The regolith terrain and its impact on exploration is well understood by the African Gold team. Remote sensing data including spectrally enhanced satellite imagery and digital elevation data has been acquired and used to aid and guide the exploration planning in regolith terrain context.

The regolith terrain, with its variable iron crusted land surfaces, is both a hinderance and an asset for exploration. It is a hinderance in that there are limited parts of the terrain where low-cost soil geochemical exploration is effective. It is an asset though in that it has been demonstrated in recent years to mask and hide very significant gold deposits in the district; for example, the very large Gounkoto and Fekola deposits that occur along strike of Walia and proximal to the SMSZ. This masking has hidden gold deposits from artisanal miners and from modern explorers who have not taken adequate account of the "regolith factor" when planning and

Forinterpreting exploration programs.

Previous exploration has been extremely minimal with mapping, airborne magnetic and electromagnetic surveys, surface geochemical sampling, auger drilling and very limited RAB and RC drilling defining a number of priority targets, some of which have been partially tested or not tested at all. Only 158 shallow RAB holes (average depth of 25m) and 45 shallow RC holes (average depth of 48m) have been historically drilled, testing soil anomalies which, in the Company's opinion, were not effective given the extensive regolith.

Auger Drilling and Soil Sampling Program Results

A 9,338m, 1,208-holewide-spaced (400m x 100m) reconnaissance auger drill program, designed to provide a first pass assessment of prospective targets in areas under thick in-situ and transported ferruginous duricrust, was completed in 2021. A concurrent mapping and target defining detailed soil sampling program (200mx 50m)

in areas not obscured by alluvial and ferruginous duricrust was also completed.

onlyAuger and soil geochemistry returned a number of large, robust, coherent gold anomalies, up to 5km x 1km, with maximum soil and auger values of 1,961ppb Au and 1,480 ppb Au respectively. In a number of cases, gold anomalies are associated with multielement indicator and pathfinder elements (maximum Cu 453ppm; As 1,034ppm; Bi 130ppm and W 196ppm), all are coincident with interpreted lithological-structural-magnetic-electromagnetic targets.

A smaller more targeted 3,938m, 437-holefollow-up infill auger program designed to further test and define 7

of the higher priority anomalies defined during the reconnaissance auger drill program was completed in March use2022.

Results of the program are considered very encouraging and have confirmed and further defined 6 high priority RC drill targets. An additional 4 targets have been defined in areas covered by gold and multielement geochemistry in soils in areas of prospective geology.

Five of the significant areas - anomaly - clusters have been described in more detail below.

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• GAS01 - a large (5.5km x 1km), robust, coherent north trending gold in soil-auger anomaly located in the central north of the project's area. For the most part obscured by ferricrete plateaus (cp1 and cp2) and transported cover which reaches thicknesses of more than 18m in places. Breakaways and flanks of ferricrete plateaus in cases "bleeding" anomalous gold. Results for pXRF multielement analysis show a correlation with high As. Interpreted historical airborne electromagnetics and magnetic data suggest the anomaly to be transgressive to tectono-stratigraphyand lying to the east of the north-northwest trending SMSZ. Maximum gold in auger of 1,480ppb Au. A portion of a single line of shallow (maximum depth 30m) inclined RAB drilled in 2008 by the CLIB/Randgold JV on the southern portion of this anomaly intersected some interesting lithologies and one hole returned 12m @ 0.76g/t gold from 6m. There has been no drilling follow-up6.
• GAS02 - a large area (3km x 2km) soil-augeranomaly located in the south-east of the project area. Dominated by sub crop, thin alluvium and colluvium and low ferrecrete plateaus (cp2 and cp3). Within this broader area, a number of more coherent higher-grade anomalies, including a 3km x 1km anomaly located in the extreme south-east.Gold in soil/auger of up to 491 ppb Au with associated anomalous tungsten, arsenic, copper and zinc. Outcrop is sparce but, the area appears to be underlain intercalated fine and coarse, largely north-west striking, deformed and altered metasediments. In the far south of the area, 6 wide spaced RAB and RC traverses drilled over a strike of 1km drilled by Axmin in 2008 and Endeavour 2014 again returned some interesting intercepts including 7.5m @ 1.22g/t gold from 13.5m. No follow up of results and geochemical anomaly is open and undrilled to the west and to the north6.
• GAS03 - a large (1.5km x 0.7km) soil-auger anomaly located in the central part of the project area very close to the interpreted position of the SMSZ. The anomaly appears to lie close to the contact within an altered and deformed pre- to syn-tectonic granodiorite (based on mapping and interpretation of airborne magnetic and electromagnetic data) and possibly extending to the south-west on a contact between a greywacke and volcaniclastic sediment. The anomaly, which covers an area of 1.5km x 0.7km has returned values of up to 1,918ppb, 556ppb, 436ppb and 316ppb Au in soil and auger and is associated with arsenic and copper anomalism. There is no drilling on the anomaly.

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• GAS04 - a smaller, lower tenor gold in soil/auger anomaly but nevertheless very interesting target located in the north-east of the project area. Gold in soil/auger up to 556ppb Au within and close to the contact of a mapped tourmaline breccia. There is no drilling on the anomaly.
• GAS05 - a (1.5km x 0.8km) soil-goldanomaly located in central east of the project area. Gold in soils/auger to 1,384ppb with associated with arsenic. Outcrop is sparce, but the area appears to be underlain but intercalated fine and coarse largely north-north-west striking deformed and altered metasediments. There is no drilling on the anomaly.

Yatia Sud Gold Project (Kedougou-Keneiba Inlier), Mali

useA small auger drilling program of approximately 2,138m, 355-hole program was completed during Q1, 2022. The program was designed to test structural-magnetic and geological targets not previously tested. Results are still being interpreted but have returned a number of gold-in-augeranomalies that will need to be followed up. Maximum gold-inauger result was 599ppb.

Work Program KKI, West Mali

personalField work in West Mali is underway with RC drilling expected to commence post the wet season in late Q4 2022. The program will comprise the following: 2,3,4,5,6

Walia Gold Project: a RC drill program of approximately 3,500m to test at least six priority drill targets. Targeting has been based prioritised on gold and multielement anomalism, alteration, geological setting and interpretation of geophysical data. See above. Barrick to the south and Endeavour to the north have defined mineralised structures interpreted to trend into the Walia/Kofi permits.

Falémé Project: a small 1,500m RC drilling to follow-up the excellent, but under-appreciated, results returned from our late-2019 to early-2020 drill campaign. RC drilling of the TD and Damba Massa prospects returned a number of broad high-gradeintercepts, including: 1m at 102.38g/t from 56m; 20m at 1.19g/t gold from 55m, including 4m at 4.40g/t gold from 59m; 6m at 3.08g/t gold from 116 m and 5m at 2.01g/t gold from 55m.

Results from shallow wide spaced reconnaissance aircore drilling of conceptual structural-magnetic- geochemical anomalies are considered extremely encouraging and have resulted in the discovery of at least three new mineralised systems under thin laterite cover. These represent first pass single traverses and mineralisation is open along strike. The three most significant independent targets returned: 10m at 0.91g/t

Forgold from 26m; 20m at 1.15g/t gold from 4m and 12m at 1.10 /t gold from 0m. These first pass drill results point towards what could be a significant gold system with gold mineralisation open both along strike and down dip.

Sitakili Permit: a small 650m RC drilling program to follow-up significant intercepts achieved in a RC program carried out by A1G in late-2019 to early-2020. Results are again considered extremely encouraging with all 16 holes returning significant shallow anomalous gold intercepts including: 9.0m at 5.17g/t gold from 54.0m; 3.0m at 3.07g/t gold from 40.0m; 6.0m at 3.35g/t gold from 53.0m and 6.0m at 5.80g/t gold from 126m. Mineralisation is open in all directions - drilling undertaken was shallow and on broad spacings. It is also the intention to follow-up the previous Randgold 2006 intercepts of and 6.6m at 115.5g/t from 162.3m at the Kirchon prospect.