Antilles Gold : Quarterly Report and Appendix 5B

28 July 2022

ANTILLES GOLD QUARTERLY REPORT & APPENDIX 5B - JUNE 2022

onlyANTILLES GOLD DEVELOPMENT OPPORTUNITIES

Antilles Gold is uniquely positioned to access a number of gold and copper development opportunities in mineral rich Cuba through its joint venture with a subsidiary of the

useGovernment's mining company, GeoMinera SA.

CUBA'S MINERAL POTENTIAL

C ba hosts a significant number of gold, copper, zinc, and nickel deposits that have been extensively explored by Canadian, Russian and Cuban mining companies, but where development opportunities have been largely overlooked by the international mining sector for over 20 years. However, Cuba is now

personalemerging as a new frontier for mining investment.

JOINT VENTURE

A tilles Gold's first project in Cuba, the development of the La Demajagua gold-silver open pit mine, will be carried out in a joint venture company, Minera La Victoria SA ("MLV"), which was registered in August 2020. MLV's shares are held by a subsidiary of GeoMinera (51%), and by Antilles Gold Limited's Cayman Islands registered subsidiary, Antilles Gold Inc ("AGI") (49%).

AGI is contributing US$13.0 million equity for its 49% shareholding in MLV, of which US$7.0 million has been invested to date. A further US$2.0 million will be spent by the end of 2022 to complete the Definitive F asibility Study ("DFS") for the La Demajagua project, and for general overheads of MLV. A further US4.0 million will be spent on mine infrastructure commencing early 2023.

GeoMinera has transferred the 900ha La Demajagua Mining Concession with 50,000m of historic drilling data to MLV for its 51% shareholding.

ForWHY ANTILLES GOLD IS ATTRACTED TO CUBA

▪ Exceptional opportunities for exploration and mine development.

▪ Cuba is a mining friendly jurisdiction which strongly encourages foreign investment in its mining sector. This is increasingly not the case elsewhere in Latin America following the election of populist Governments in Chile, Peru, Ecuador, Colombia, and Nicaragua during the past 12 months.

▪ Foreign Investment Laws protect minority shareholders in joint ventures in the mining, property, tourism, and agriculture sectors.

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Havana Office

▪ Equal representation on MLV's Board.

▪ MLV's jointly controlled foreign Bank account holds all proceeds from loans, or metal sales, with the only funds remitted to Cuba being for local expenses.

▪ Antilles Gold nominates all senior management.

only▪ Low entry cost for near term development of previously explored mineral deposits. ▪ Low operating costs.

▪ Joint venture with GeoMinera fast-tracks permitting.

ESTABLISHED HEADQUARTERS IN HAVANA

useMLV has established a fully functional head office in Havana with excellent multi-disciplined and professional Cuban staff.

The General Manager of MLV, Steven Mertens, is an Australian mining engineer who worked with Antilles Gold for 5 years in the Dominican Republic, and was previously employed on a major project in Panama.

The Construction Manager for the La Demajagua mine, Michael Wockner, is an Australian project manager

with extensive experience in Latin America who will join MLV next month from Barrick Mining's Pueblo personalVeijo mine expansion project in the Dominican Republic.

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EXPLORATION OFFICE - CIEGO DE AVILA

An Exploration Office is currently being established in the city of Ciego de Avila in central Cuba from which exploration of the major El Pilar copper-gold porphyry deposit will be conducted.

The activities of this office will be managed by Antilles Gold's Australian Exploration Director, Dr Christian

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Grainger, who has successfully explored for major ore bodies in Latin America for 25 years, and in
Colombia in particular during the past 12 years.
POTENTIAL NEAR TERM DEVELOPMENT PROJECTS
	▪	An open pit gold-silver mine at La Demajagua on the Isle of Youth in south-west Cuba is planned to
		commence construction in Jan 2023, and be commissioned in mid 2024 with estimated annual
use		production of 100,000oz Au equivalent in a sulphide concentrate for 8 years (refer Scoping Study
	advised to ASX 17 February 2022).
▪	An open pit mine that could potentially be developed on the El Pilar oxide deposit in central Cuba
	▪
		and be commissioned by mid 2025 to produce gold and copper concentrates (subject to its
		Exploration Target Range advised to ASX on 5 July 2022, being confirmed by near term drilling).
personalFor		The possible re-opening of the Antonio open pit mine within the New Horizons polymetallic mineral
	belt in central Cuba by mid 2026 to produce copper and zinc concentrates (subject to its Inferred
	Resource advised to ASX on 23 June 2022, being confirmed by drilling in 2023).

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PROPOSED LA DEMAJAGUA GOLD-SILVER OPEN PIT MINE

JORC RESOURCES

The Mineral Resource Estimate for the proposed La Demajagua open pit mine was recently revised by Western Australian mining engineers, Cube Consulting, based on selected data from 50,000m of historic

onlydrilling, and assays received from around 90% of an additional 28,000m of cored drill holes across the 2.2km strike length of the La Demajagua deposit, and advised to ASX on 28 June 2022 with details of the Competent Person.

MINERAL RESOURCE ESTIMATE FOR LA DEMAJAGUA OPEN PIT PROJECT WITHIN PRELIMINARY SHELL at 0.8g/t Au cut off

usepersonalNote - Figures do not add up due to rounding

The Mineral Resource Estimate will be finalised after outstanding assays are received from the completed drill holes in August 2022.

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Flotation Recoveries:

Concentrate grade:

Drilling at La Demajagua Gold/Silver Deposit

METALLURGICAL TESTWORK

Based on the Resource definition, preliminary pit shell, materials scheduling, the results of metallurgical test work to date are as follows;

Concentrate Production:

only	▪ 70,000t of bulk concentrate expected to be produced annually;
▪	containing around 85,000 oz Au and 1,150,000 million oz Ag annually (100,000 oz Au Eq.);
▪	8 year Mine Life for open pit expected to be followed by underground operation for 10 years

at approximately 65,000 oz Au Eq. annually.

• 37.5 g/t Au, and 500 g/t Ag.

use

• 80% Au and 75% Ag for oxide/transitional ore;
• 90% Au, and 95% Ag for sulphide ore.

Feed to the flotation plant is expected to be:

• 50,000 tpa of oxide/transitional ore with grades of 2.7 g/t Au and 36.0 g/t Ag.
• 900,000 tpa of sulphide ore with grades of 3.27 g/t Au and 40.5 g/t Ag.

personalNegotiation of a concentrate off-take agreement has commenced with a major international metal trader with the mutual objective of formalising an agreement by November, 2022.

INITIAL SCOPING STUDY

The Mineral Resource Statement and metallurgical test work form the basis of the Financial Model for the La Demajagua open pit mine prepared by Antilles Gold which assumed a mining rate of 50,000 tpa of oxide ore, and 900,000 tpa of sulphide ore, a stripping ratio of 7:1, and the production of 70,000 tpa gold and

Forsilver concentrate, containing approximately 100,000 oz Au equivalent, for six years.

Pr ject development costs in addition to Antilles Gold's US$13 million equity contribution for pre-development activity are currently expected to be in the order of US$62 million including financing costs during construction, and be funded by a combination of supplier credit for plant and equipment, and project loans.

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