Alderan Resources : AL8 intersects 16.2m @ 1.04g/t Au with assays up to 6.0g/tAu

ASX ANNOUNCEMENT

25 February 2022

Alderan intersects 16.2m @ 1.04g/t Au with assays up to

onlyHIGHLIGHTS

6.0g/t Au at Drum

• Alderan's first drill hole 9DD22-001 at Drum gold deposit at its Detroit project in Utah, USA has intersected:

		o 6.3m @ 2.9g/t Au from 65.9m downhole and,
use	o 1.5m @ 5.6g/t Au from 70.7m downhole within…
…a broad gold mineralised interval of 16.2m @ 1.04g/t from 60.2m downhole.
		• 9DD22-001 gold grades over sample intervals include 6.01g/t (0.61m), 5.23g/t (0.92m) and
		3.4g/t (1.13m).
		• Result verifies the presence of high-grade remnant oxide gold mineralisation approximately
		20m below the bottom of the East Pit which Alderan modelled from historical drill hole data.
personal	• Drum Gold Mine produced 125,000oz and is geologically open along strike and down dip. It
has received no modern exploration since mining ceased in 1989.
• Examples of historical high-grade drill intercepts at Drum include:
		o 13.7m @ 6.4g/t Au from 13.7m downhole including 4.6m @ 18.1g/t Au (YC-58A)
		o 24.4m @ 2.7g/t Au from 9.1m downhole including 7.6m @ 7.6g/t Au (YC-60)
		o 22.9m @ 5.0g/t Au from 19.8m downhole including 9.1m @ 10.8g/t Au (YC-113A)
		o 35.1m @ 4.3g/t Au from 25.9m downhole including 18.3m @ 7.7g/t Au (YC-169)
		o 15.2m @ 4.5g/t Au from 73.2m downhole including 6.1m @ 10.3g/t Au (YC-174)
		• Modelling of historical drill data highlights Drum's potential for extensions to remnant
		mineralisation and high-grade gold in structural zones.
		• Alderan's in-pit rock samples at Drum assay up to 10.7g/t gold with 36 of 76 samples assaying
		+0.5g/t gold and 22 assaying +1.0g/t gold
		• Further 9DD22-001 and remaining Detroit drill hole assays are expected over coming weeks;
		Drum drilling is expected to recommence on 1st March.
	Alderan Resources Limited (ASX: AL8) (Alderan or the Company) is pleased to provide initial assay results for
For

d illhole 9DD22-001, the first hole completed at the historical Drum gold mine (Drum) in its planned 10-hole drilling programme aimed at verifying and extending remnant oxide mineralisation.1 Drum lies within Alderan's Detroit Project, located in the Drum Mountains region of western Utah, USA.

Hole 9DD22-001 drilled to 117.95m was designed to test for remnant gold mineralisation in the zone surrounding historical hole YC-16 on the western side of Drum's East Pit (see Figures 1 & 2). YC-16 intersected 56.4m @ 1.8g/t Au from 44.2m downhole in the Tatow unit which hosts historical ore in the East Pit. Alderan modelling of historical drill data suggests approximately 10-20m of the YC-16 intersection is remnant gold mineralisation below Drum's pit bottom (includes sample grades up to 7.1g/t Au).

Alderan received 9DD22-001gold-only assays for 20 samples ranging in length from 0.5 - 2.15m between 57.0

• 78.3m down the hole. The highest grade assays are 6.01g/t Au (0.61m), 5.23g/t Au (0.92m) and 3.4g/t Au
  (1.13m) and the mineralized intersections include:
• • 6.3m grading 2.9g/t Au from 65.9m downhole and,

1 Refer Alderan ASX announcements dated 20 January 2022, 22 February 2022

ASX ANNOUNCEMENT

25 February 2022

• 1.5m grading 5.6g/t Au from 70.7m downhole, within
• 16.15m grading 1.04g/t Au from 60.04m downhole (includes internal waste intervals grading <0.15g/t Au) which lies approximately 20m below the pit wall.

onlyFigure 3 shows a series of photographs of the mineralised drill core with interval assays.

Alderan Managing Director, Scott Caithness said: "The initial assays for hole 9DD22-001 are an excellent start to Alderan's Drum drilling campaign. This result, along with our in-pit rock samples which grade up to 10.7g/t Au, provides confidence in our modelling of exploration potential for remnant mineralisation and also in the grade f oxide mineralisation likely to be intersected in future drilling. Particularly exciting will be upcoming drilling for mineralised extensions in previously unexplored areas to the north, south and down dip of the historically defined

deposit.

use"Drilling will re-commence at Drum in early March with further verification holes followed by holes to extend the historically defined deposit. We are also expecting assay results for the remainder of 9DD22-001, Mizpah hole 3DD22-001 and the Detroit holes completed in Q4, 2021 over the coming weeks."

Hole 9DD22-001 was drilled as an angle hole to the east from the western pit wall of the East Pit rather than a twinned vertical hole next to YC-16 which was not possible due to historical mining. It is concluded from the grade of mineralisation and the length of the intersection that it represents a strong verification of the

mineralisation intersected in YC-16.

personalForigure 1: Drum East Pit cross section 4377325N showing historical drill hole intersections and Alderan's 9DD22-001 intersection.

It also provides confidence in Alderan's modelling estimate of exploration potential for remnant oxide mineralisation based on historical drilling of approximately 1.2 - 1.5 million tonnes at a grade of approximately

1.1 - 1.4g/t gold (approximately 42,000-67,000 ounces)2. This estimate of exploration potential quantity and grade is conceptual in nature, there has been insufficient exploration to estimate Mineral Resources and it is uncertain if further exploration will result in the estimation of a Mineral Resource.

2 Refer Alderan ASX releases dated 18 and 19 November 2021, 22 February 2022.

ASX ANNOUNCEMENT

25 February 2022

In addition to the exploration potential, the Drum mineralisation remains open along strike to the north and south plus down dip to the southwest where drill holes include YC-174 which intersected 15.2m grading 4.5g/t gold (including 6.1m at 10.3g/t Au) 150m from historical ore in the West Pit. Also, the ore horizon mined in the East onlyPit intersected by 9DD22-001 remains open down dip to the southwest and has not been drill tested below the West pit. Drum has both long and high-grade historical drill intercepts with hole DM-9 intersecting 70.1m grading

1.0g/t gold and the highest-grade individual 5ft (~1.5m) sample being 38.8g/t gold.

usepersonal

ForFigure 2: Aerial view of Drum showing pit outlines, significant historical drill intersections plus completed (red) and proposed Alderan drill holes. Priority 1 sites (yellow) are in the current programme while Priority 2 sites (green) are contingent.

Next Steps

Alderan awaits assays for drill hole 3DD22-001 at Mizpah and final assays for hole 9DD22-001 at Drum as well as results from holes 7DD21-003,6DD21-004,6DD21-005 and 6DD21-006 which were completed on its Detroit project in Q4 2021.3 Partial assays for holes 6DD21-004 and 6DD21-005 were released in an ASX announcement on 30 December 2021. COVID-19 is impacting the turnaround time for sample analysis with the lab operating at around 80% capacity.

Additional drilling focused on Drum will commence in early March following a drill crew break and rig change currently in progress (see Table 1). Personnel shortages due to COVID are impacting Major Drilling's ability to

3 Refer Alderan ASX announcements dated 30 December 2021, 22 February 2022

ASX ANNOUNCEMENT

25 February 2022

provide relief drillers when project dedicated drilling crews are due for breaks. This is resulting in drilling operating on a '20 days on - 10 days off' roster throughout the remainder of the Detroit programme.

only				Table 1: Drum Planned and Completed Holes
		Drill Site	Easting	Northing	Target	Site Rationale and Target
					Depth (m)
	Drum
	9DD22-001	327 449	4 377 326	120	East Pit: Verify remnant mineralisation at bottom of YC-16 which
	(Completed)				intersected 56.4m @ 1.8g/t Au.
						Initial assays received. Intersection of 16.15m @ 1.04g/t Au from
						60.04m downhole including 6.3m @ 2.9g/t Au from 65.9m downhole
						and 1.5m @ 5.6g/t Au from 70.5m downhole. Further assays
						awaited.
	Site A-1	327 209	4 377 250	50	West Pit: Verify remnant mineralisation at bottom of YC-114 which
						intersected 9m @ 2.0g/t Au.
use	Site A-2	327 209	4 377 250	110	West Pit: Verify remnant mineralisation at bottom of YC-72 which
					intersected 9m @ 1.4g/t Au & Tatow test.
personalFor	Site M-1	327 460	4 377 150	120	East Pit: Verify remnant mineralisation at bottom of DM-23 which
					intersected 16.8m @ 1.2g/t Au.
	Site M-2	327 455	4 377 150	120	East Pit: Tatow test below dropcut.
	Site B	327 243	4 377 045	150	West Pit: Verify remnant mineralisation at bottom of YC-169 which
						intersected 35m @ 4.3g/t Au & Tatow test.
	Site G	327 409	4 377 146	140	West Pit: Tatow test in hanging wall of King Tut fault.
	Site H	327 458	4 377 250	135	East Pit: Test down dip extension of YC-16 which intersected 56.4m
						@ 1.8g/t Au.
	Site E	327 369	4 377 104	100	West Pit: Tatow test in hanging wall of King Tut fault.
	Site Ma-01	327 096	4 376 904	120	West Pit Extension: Verify YC-174 which intersected 15.2m @
						4.5g/t Au; permit amendment required.

ASX ANNOUNCEMENT

25 February 2022

Figure 3: Photograph series of mineralised drill core from the hole 9DD22-001 with gold assays from 60.04 - 76.19m down hole. The overall mineralised intercept is 16.15m @ 1.04g/t Au which includes the internal waste intervals grading <0.15g/t Au.

For personal use only

0.19g/t

Au0.15g/t Au