BMG Resources Limited provided an update on drill programs at the Company's 100% owned Abercromby Gold Project in the north-eastern goldfields of WA. The DD program at the greater Capital Prospect area comprises 8 holes for ~3,700m, and is aimed at resource definition and extension of the high-grade gold lodes identified to date. The Company reported that the DD program is progressing well with two shifts operating.

To date, almost two holes have been completed (22ABDD006 (completed) and 22ABDD008 (substantially completed)) to 664.7m and c.560m of 650m respectively, with the next hole (22ABDD009) to commence shortly. Hole 22ABDD006 is a re-drill of 21ABDD004, which suffered terminal drill rod failure at 360m prior to its target depth, and is designed to test extensions of the West Lode. 21ABDD004 intersected 10m at 11.71 g/t Au from 295m in the East Lode, 250m south of the existing mineralisation, confirming a very significant depth extent to the shallow, high-grade mineralisation at Capital.

Preliminary visual observations indicate that prospective shearing and quartz veining was observed in 22ABDD006 in the zone corresponding with the expected extensions of the East lode. An additional zone of sheared mafics with quartz veining and alteration was observed towards the end of the hole around 600 to 620m. In addition, both holes, 22ABDD006 and 22ABDD008, contain observed shearing with quartz veining and alteration corresponding with the expected extensions of East and West gold lodes positions.

Another key area to be tested in the DD program is the continuity of mineralisation intersected in 21ABDD003. The drilling will test around the deeper zones of the West Lode where 21ABDD003 intersected 13.8m at 6.56m g/t Au from 446m. The Company has now completed all the holes that were part of the Aircore drilling infilling new, high-grade anomalisms intersected in the previous round of work in the Archer, Barrack and Capital South areas.

The higher-grade gold assays were returned in positions with good potential for significant strike extent. These aircore targets form the foundation of BMG's growing prospect pipeline at Abercromby. A total of 59 aircore holes for 5,658m were completed.

Initial assay results are expected in July. BMG provides an update regarding the proposed sale of its remaining 10% interest in Treasure Development Limited (TDL) to New Cyprus Copper PA Limited (New Cyprus). TDL is the owner and operator of the Treasure Project in Cyprus.

New Cyprus, a wholly owned subsidiary of Caerus Mineral Resources PLC (LON:CMRS) (Caerus), is the majority shareholder of TDL with 90% ownership. Following the acquisition by New Cyprus of an additional 20% interest in TDL from BMG completed in May 2022, as foreshadowed in BMG's March 2022 Quarterly Activities Report, BMG exercised its put option for the sale of its remaining 10% interest in TDL. New Cyprus has not paid BMG the sum of A$2,000,000 for the purchase of BMG's remaining 10% interest in TDL in accordance with the time frame required under the Share Purchase Agreement pursuant to which BMG has exercised its put option.

BMG maintains that NCC is now in breach of contract and has given notice of default to NCC. BMG will endeavour to resolve the matter in accordance with the dispute resolution procedures of the Share Purchase Agreement. BMG will keep the market informed of the outcome of the matter as and when resolved.