Firefly Resources : 09/04/2021 - Strong results from surface grade control drilling

ANNOUNCEMENT 09 April 2021

Strong results from surface grade control drilling further

enhance 196koz Melville Gold Deposit

Initial assays confirm presence of extensive broad zone of mineralisation at surface

Highlights:

• 7,000m/612-holeclose-spaced grade control drill program completed across the cornerstone Melville Gold Deposit, Yalgoo Gold Project.
• Holes drilled at 10m spacings to an average depth of 12m.
• Assays received for ~50% of the holes to date. Significant assay results include:

• 1. 8m @ 3.39g/t from surface, including 2m @ 8.79g/t (FMGC0340) o 7m @ 3.08g/t from surface including 3m @ 7.24g/t (FMGC0342) o 8m @ 1.48g/t from surface including 3m @ 2.75g/t (FMGC0341)
• Drilling has confirmed the widespread distribution of shallow gold mineralisation above the recently announced 196koz Mineral Resource.
• The presence of this shallow material will significantly enhance any future mining scenario.
• A JORC 2012 compliant Grade Control Mineral Resource Estimate will be calculated following receipt of all outstanding assay results.
• 30,000m exploration program progressing at Yalgoo with RC drilling underway at the Don Bradman, Applecross and Crescent/Olive Queen targets.

Firefly Resources Ltd (ASX: FFR; Firefly or the Company) is pleased to advise that it has received significant initial assay results from its extensive grade control drilling program over the cornerstone Melville Gold Deposit at the 100%-ownedYalgoo Gold Project in Western Australia (see Figure 3).

The Company recently announced a maiden JORC 2012-compliant Indicated and Inferred Mineral Resource Estimate of 196,000oz for the Melville Deposit (refer ASX announcement, 17 March 2021) and immediately launched a close-spaced grade control program to follow up on the broad, shallow mineralisation observed in recent deeper resource-focused drilling.

The recently completed grade control program comprised 612 shallow Reverse Circulation (RC) drill holes completed at 10m spacings to an average depth of 12 metres for a total of 7,000m of drilling. It forms part of a much broader ongoing 30,000m drilling program aimed at growing the resource base across the Yalgoo Project.

The location of the grade control drill-holes is shown in Plan View in Figure 2 below, relative to the 2012 Mineral Resource outline. Around 50% of the assays have been returned so far with the balance expected in the coming weeks.

The assays returned so far have confirmed the presence of an extensive blanket of shallow gold mineralisation extending over 100's of metres both along and across strike above the primary Mineral Resource. Significant assay results are shown in the cross-sections in Figure 3 below.

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ANNOUNCEMENT 09 April 2021

Figure 2. Plan view showing the distribution of the grade control drill program relative to the recently announced 2021 Mineral Resource

envelope and the area of the previously announced Tribute Mining Agreement.

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ANNOUNCEMENT 09 April 2021

Figure 2. Indicative cross-sections from the Melville Gold Deposit grade control drill program showing broad shallow gold mineralisation.

Some of the more significant intercepts reported to date are summarised below and shown in Figure 2 above:

1. 8m @ 3.39g/t from surface, including 2m @ 8.79g/t (FMGC0340) o 7m @ 3.08g/t from surface including 3m @ 7.24g/t (FMGC0342) o 8m @ 1.48g/t from surface including 3m @ 2.75g/t (FMGC0341) o 6m @ 1.02g/t from surface including 1m @ 2.06g/t (FMGC0344) o 9m @ 1.01g/t from surface including 1m @ 2.21g/t (FMGC0343) o 4m @ 1.02g/t from surface including 1m @ 2.22g/t (FMGC0201) o 5m @ 1.23g/t from surface including 1m @ 2.91g/t (FMGC0204)

A full list of collar and hole details is provided in the Annexure to this announcement, together with a detailed list of 1-metre splits for all holes.

These assays will form the basis of the anticipated JORC 2012-compliant Grade Control Mineral Resource Estimate for the Melville Gold Deposit outlined in recent Firefly announcements of 24 February and 17 March 2021.

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ANNOUNCEMENT 09 April 2021

Figure 3. Plan view of Firefly's100%-owned Yalgoo Gold Project tenure with current Firefly priority gold targets over black and white magnetics. The 196,000-ounce Melville Gold Deposit sits within one of several kilometre-scale gold mineralisation trends that Firefly is targeting at Yalgoo.

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ANNOUNCEMENT 09 April 2021

Management Comment

Firefly Managing Director, Simon Lawson, said: "The assays received so far from the Grade Control drilling further reinforce the strength, quality and tenor of the shallow gold mineralisation at the cornerstone Melville Deposit, which sits within the shadow of several regional processing plants.

"Shallow, high-grade gold mineralisation has been delineated over 100's of metres both along- and across strike and from surface in many of our drill-holes, really driving home the opportunity not just at Melville but potentially across our other target areas across the extensive Yalgoo Gold Project.

"In many gold deposits, the shallow material overlying the primary Mineral Resource is considered to be waste and is removed returning little economic value. In the case of Melville, virtually the entire blanket of shallow material is mineralised, in some cases with some impressively high-grade zones - albeit interspersed with lower grade areas. It's also important to note that drilling deliberately tested the margins of the resource to help close off the mineralisation in these areas for the purposes of future open pit mine designs.

"We are focused on delivering value from all the key targets within the Yalgoo Project and we started that journey with the recent release of a maiden JORC-2012-compliant MRE for Melville, where 80% of that resource was classified as higher confidence Indicated ounces. These Grade Control results build on that resource by focusing on near-surface ounces that would likely be mined first in any open-pit mining scenario.

"We will provide an independently reviewed JORC 2012-compliant MRE for those shallow ounces once we get all of the assays back and collate the results."

Authorised by Simon Lawson, Managing Director - Firefly Resources Ltd
Investor Inquiries			Media Inquiries
Firefly Resources Limited			Read Corporate
08 9322 2338					Nicholas Read
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Melville JORC 2012 Mineral Resource Estimate
		Indicated			Inferred				Total
Tonnes		Au (g/t)		Ounces	Tonnes	Au (g/t)	Ounces		Tonnes	Au (g/t)	Ounces
3,314,900		1.47		156,753	887,547	1.39	39,635		4,202,447	1.45	196,388
1Calculated using a 0.7g/t cut-off grade

FFR confirms that it is not aware of any new information or data that materially affects the information contained in ASX announcement dated 17 March 2021 in relation to the above resource estimate. All material assumptions and technical parameters underpinning the mineral resource estimates continue to apply and have not materially changed.

Competent Persons Statement

The information in this announcement that relates to Exploration Results and Mineral Resources is based on and fairly represents information and supporting documentation reviewed, collated and compiled by Mr Simon Lawson, a full-time employee and the Managing Director of Firefly Resources Ltd. Mr Lawson is a professional geoscientist and Member of The Australian Institute of Mining and Metallurgy and has sufficient experience relevant to the style of mineralisation and type of deposit under consideration, and to the activity which has been undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Exploration Results, Mineral Resources, and Ore Reserves. Mr Lawson consents to the inclusion in this announcement of the matters based on this information in the form and context in which it appears.

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