Alderan Resources : completes two holes targeting Drum and Mizpah gold

ASX ANNOUNCEMENT

22 February 2022

Alderan completes two holes targeting Drum and Mizpah gold

HIGHLIGHTS

only	• Alderan completes two holes targeting the Drum and Mizpah gold deposits in its drilling
		programme at the Detroit copper and gold project in Utah, USA.
		• Drum historical oxide gold mine produced 125,000oz and is geologically open along strike
		and down dip. It has not received any modern exploration since mining ceased in 1989.
use	• 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
		• Mizpah oxide gold deposit was discovered in the 1980s and is geologically open along strike
		and down dip. It lies 2km north of Drum and was not mined.
personal	• Examples of historical high grade drill intercepts at Mizpah include:
o 7.6m @ 2.3g/t Au from 19.8m downhole (MZ-104)
remaining Detroit results from Q4 2021 drilling.
		o	10.7m @ 1.9g/t Au from surface (MZ-49)
		o 12.2m @ 1.7g/t Au from surface (MZ-93)
		o 16.8m @ 1.4g/t Au from 3.0m downhole (MZ-87-048)
		o 22.8m @ 1.1g/t Au from 44.2m downhole (MZ-87-052)
		• First results from the Drum and Mizpah drilling are expected in March following receipt of
For

Alderan Resources Limited (ASX: AL8) (Alderan or the Company) is pleased to provide an update on the planned 10- hole drilling programme at its Detroit Project, located in the Drum Mountains region of western Utah, USA, which recommenced in January 2022.

Two holes have been completed, hole 9DD22-001 at the Drum mine and hole 3DD22-001 at Mizpah. The Drum hole aims to verify a zone in the East Pit including historical drill hole YC-16 which intersected 56.4m @ 1.8g/t Au from 44.2m downhole. The Mizpah hole, one of the original Stage 1 holes, was planned to test the down dip extension of mineralisation in Alderan's hole DD20M-006 which intersected 83m @ 0.41g/t Au including 6.9m @ 1.98g/t Au.

Alderan Managing Director, Scott Caithness said: "It is exciting to be drilling to increase the size of two known gold deposits which have not been explored since the mid-late 1980s. Historical work on both prospects focussed on delineating near surface oxide gold deposits with the average drill hole depth of less than 50m at Drum and 30m at Mizpah. Both oxide deposits are open down dip and along strike and the potential for primary mineralisation below the oxide remains untested.

ASX ANNOUNCEMENT

22 February 2022

"With oxide gold deposits in neighbouring Nevada mined to cut off grades of 0.15-0.2g/t Au and both deposits being open, Drum and Mizpah have the potential to be significantly larger than what has been delineated in the onlypast. Our initial focus is to verify historical drill results and then confirm upside potential with first results expected

in March."

Detroit Drilling Update1

Alderan re-commenced its drilling programme at Detroit following rig maintenance and a break over Christmas- New Year. Drilling will focus on the Drum Gold Mine where 10 holes are planned totalling approximately 1,200m. Three holes are also planned at Mizpah totalling approximately 300m.

useDrilling at Drum aims to verify historically drilled gold mineralisation and also test for new mineralisation. A key focus of testing for new mineralisation will be drilling below the West Pit into the down-dip extensions of the Tatow unit, the prime ore horizon in the East Pit.

Drill hole 9DD22-001 completed at a depth of 117.95m was designed to test for gold mineralisation in the zone s rrounding historical hole YC-16 which intersected 56.4m grading 1.8g/t gold from 44.2m downhole in Tatow nit sediments. Modelling suggests approximately 10-20m of the YC-16 intersection which includes grades up to 7.1g/t Au remained as residual gold mineralisation below the final pit bottom when mining ceased at Drum in

1989. Figure 1 shows the location of completed and planned holes at Drum.

personalAt Mizpah, drill hole 3DD22-001 has been completed at a depth of 164.89m. This hole is a ~350m step-out to test for down dip extensions to the west of Alderan's hole DD20M-006 which intersected 83m @ 0.41g/t Au

including 6.9m @ 1.98g/t Au during maiden Detroit drilling in 2020 (see Figure 2).

Alderan has submitted samples from both holes for analysis and results are expected in March 2022. Table 1 below summarises the targets to be tested by each completed and planned hole.

Next Steps

Alderan awaits assays for drill holes 9DD22-001 and 3DD22-001 and also final assays for holes 7DD21-003,6DD21-004,6DD21-005 and 6DD21-006 which were completed on its Detroit project in Q4 2021. Alderan released assays for a 21m section of hole 6DD21-004 and a 31.8m section of hole 6DD21-005 in an ASX announcement on 30 December 2021.

Additional drilling at Drum and Mizpah as per the plan outlined in Table 1 will commence in early March following a drill crew break and rig change currently in progress. Personnel shortages due to COVID are impacting Major Drilling's ability to 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. For

1 Refer Alderan ASX announcements dated 15 October 2021, 12 November 2021, 8 December 2021, 16 December 2021, 30 December 2021.

ASX ANNOUNCEMENT

22 February 2022

onlyuse

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

For

ASX ANNOUNCEMENT

22 February 2022

onlyuse

personal		Table 1: Drum and Mizpah 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.
For	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.
	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.
	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.

Figure 2: Plan showing location of hole 9DD22-001 relative to the Mizpah deposit block model. As can be seen the hole is a bold 375m down dip step-out from hole DD20M-006 which intersected 83m @ 0.41g/t Au. See below for further background on the Mizpah modelling and sections.

Examples of high grade historical

intersections from drilling undertaken by Western States Minerals and Nevada Resources Inc in 1982-89include:

Figure 3: Alderan's Detroit tenement showing locations of Drum Mine & Mizpah.

2 Refer Alderan ASX announcement dated 30 September 2021.

3 Krahulec, K.; Sedimentary rock-hostedgold and silver deposits in the Northeast Basin and Range, Utah; Utah Geol Survey; Jan 2011.

4 Refer Alderan ASX releases dated 18 and 19 November 2021.

West Pit (see Figures 4-7).The ore horizon mined in the East Pit remains open down dip to the southwest and has not been drill tested below the West pit. Drum has both long and high-gradehistorical drill intercepts. Hole DM- 9 intersected 70.1m grading 1.0g/t gold and the highest-gradeindividual assay over a 5ft (~1.5m) sample interval is 38.8g/t gold.

The mineralisation however remains open along strike to the north, south and down dip to the southwest where drill holes include YC-174which intersected 15.2m grading 4.5g/t gold (including 6.1m at 10.3g/t Au) 150m from historical ore in the

personalAlderan's modelling of historical data suggests the 1980s drill defined gold deposit at Drum has exploration potential for remnant gold mineralisation totalling approximately 1.2 - 1.5 million tonnes at a grade of

approximately 1.1 - 1.4g/t gold (approximately 42,000-67,000ounces)4. This estimate of exploration potential quantity and grade is conceptual in nature, there has been insufficient exploration to estimate Mineral Resources a d it is uncertain if further exploration will result in the estimation of a Mineral Resource.

For

Drum Background

useAlderan secured an option over the Drum Gold Mine, one of the most productive and economically important sediment-hostedgold deposits in Utah, in late September 2021 as part of its strategy to consolidate the Detroit mining district2.

Drum was discovered in 1982 with a drill intercept of 15m grading 8.5g/t gold and was mined from the adjacent East and West pits between 1984-893.Over its six-yearmine life, it reportedly produced 125,000oz of gold from 3.17 million tonnes of oxide ore grading 1.22g/t gold. Towards the end of its life, a small underground operation was developed in the West Pit which produced mined grades of +4g/t gold.

ASX ANNOUNCEMENT 22 February 2022

East Pit: Test down dip extension of YC-16which intersected 56.4m @ 1.8g/t Au.

West Pit: Tatow test in hanging wall of King Tut fault.

West Pit Extension: Verify YC-174which intersected 15.2m @ 4.5g/t Au; permit amendment required.

Test down dip extension 300m to west of Alderan hole DD20M-006which intersected 83m@0.41g/t Au from 35.9m downhole

Site H

327 458 4 377 250

135

only	327 369	4 377 104	100
	Site E
	Site Ma-01	327 096	4 376 904	120
	Mizpah
	9DD22-001	326 321	4 379 409	164.89m
	(Completed)