Gold 50 : Nevada Portfolio Consolidation

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GOLD EXPLORATION

IN ARIZONA AND NEVADA

Wednesday, 13 July 2022

NEVADA PORTFOLIO CONSOLIDATION AND COMMITMENT

TO SOUTHWEST USA GOLD EXPLORATION

• Exploration programs and drilling results have confirmed opportunities in our Nevada portfolio across Top Gun, Spitfire, Caisson and Broken Hills Projects
• Gold 50 has moved from option agreements to full ownership of all four Nevada properties with the new agreement improving flexibility of capital allocation, reduced vendor payments and lower royalty rate
• New agreement significantly increases capital allocation efficiency to maximise investment dollars in the ground
• Gold 50's drilling has confirmed a previously unrecognised gold-silver epithermal system at the Top Gun Project
• All assays have now been received from Gold 50's initial drilling program at the Spitfire Project
• Soil sampling program completed at the Caisson Project during June 2022 to provide focus for further exploration
• Gold 50 is well positioned to pursue exploration opportunities with cash of approximately $5.5 million at 30 June 2022

Gold 50 Limited (Gold 50 or the Company) (ASX: G50) is pleased to provide an update on its recent activities in Nevada and a restructuring of agreements with the vendor of Gold 50's projects in Nevada.

Gold 50 has a portfolio of four projects in Nevada - the Top Gun, Spitfire, Caisson and Broken Hills Projects. During the first half of 2022, Gold 50 completed initial drilling programs at Top Gun and Spitfire, as well as a soil sampling survey at Caisson.

Given the early-stage exploration nature of these four projects and a changed environment for investing in gold exploration, Gold 50 has successfully negotiated improved terms with the vendor of its four projects in Nevada.

Gold 50's Managing Director, Mark Wallace, commented:

"We are excited to remain partners with the project vendor and work towards our first principles exploration process as we work up the drilling targets at Broken Hills, Top Gun, Caisson and Spitfire. The new agreement provides certainty for both Gold 50 and the vendor with flexibility to maximise exploration dollars in the ground. We have worked hard in the first 12 months of our listed life to execute drilling programs across two projects, and we look forward to also advancing the remaining two projects as the year progresses."

Gold 50 Limited
Suite 5.03, Level 5, 140 Arthur Street	[e-mail]	gold50.com | ASX:G50
North Sydney, NSW 2060	ABN: 18 645 022 233

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New Purchase Agreement

The Exploration Lease and Option to Purchase Agreements for each of the four properties have been terminated and Gold 50 has entered into a new agreement ("Purchase Agreement") to purchase the four properties from the same vendor. The Purchase Agreement provides:

• a simpler path to 100% ownership of all four properties;
• a significant reduction in vendor payments and royalty; and
• increased visibility and flexibility for Gold 50 to allocate exploration capital across the portfolio.

The key terms of the Purchase Agreement are:

• payments to the vendor totaling US$500,000 over a 4 year period:

1. first payment of US$150,000 was made in the first week of July 2022;

1. remaining annual payments are $100,000 in July 2023, US$100,000 in July 2024 and US$150,000 in July 2025; and

• 1. Gold 50 may elect to make the payments earlier.
• no minimum expenditure commitments on the properties;
• Net Smelter Return royalty of 2.0% payable to the vendor on minerals produced from the properties. The vendor payments are not credited against future royalty payments.

Gold 50 continues to be responsible for paying the federal annual mining claim maintenance fees and other expenses to keep the Claims in good standing.

The now terminated Exploration Lease and Option to Purchase Agreements required escalating vendor payments and project expenditure commitments over the coming four years with onerous terms on the pathway to full ownership until numerous conditions were satisfied.

The table below summarises the advantages of the Purchase Agreement to Gold 50:

	Original	New Purchase
	Agreements	Agreement
Structure	Lease with option to purchase	Purchase
Escalating	Yes	No
payments/commitments?
Total payments to vendor	Average US$0.3m per project	US$0.5 million total
Expenditure commitments	>US$2.6m per project	Nil
Convert lease to ownership	US$1.0m per project	Nil
Net Smelter Return royalty	4.0%	2.0%

Table: 1: Summary of Original and New Purchase Agreements

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Top Gun

The inaugural Top Gun drilling program tested a 1,150 metre long zone of gold mineralisation, quartz veining and silicification with historic workings. Gold 50's 1,500m reverse circulation ("RC") percussion drilling program indicated a large, shallow gold system with best intercepts of:

• 3.05m at 1.3g/t Au and 26.5g/t Ag from 39.6m in hole TG005 (excludes 1.52m internal interval due to no sample from a historic mining void); and
• 10.6m at 0.4g/t Au from 42.7m in hole TG009, which is 400m along strike from TG005

All 11 holes intersected anomalous gold within broad zones of Ag-As-Sb and silica-pyrite alteration.

For further details on this drilling program, see Gold 50's announcement "Maiden Top Gun Drilling Confirms Gold-Silver Mineralised Epithermal System" dated 9 March 2022.

Spitfire

All assays have now been received from Gold 50's drilling program completed in February 2022.

The program comprised 6,660m of RC drilling in 28 holes and targeted the Lithia, 9 Ledge and Hearst areas as summarised on the diagram below.

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Skarn Area

9 holes

9 Ledge Area

6 holes

Lithia Area

7 holes

Hearst Area

6 holes

G

Figure 1: Spitfire Project, Nevada - Residual reduced to the pole ("RTP") ground magnetics with interpreted fault

structures

Drilling generally intercepted the targeted structures and rock types but did not intercept any multi- gram gold zones that had been indicated by surface sampling. Anomalous gold values were intercepted over various thicknesses in each area, providing encouragement that good potential remains for a substantial gold deposit at Spitfire.

Gold values correlate well with antimony, arsenic, thallium and copper. More pyrite than expected was intersected in several holes, indicating that an induced polarisation ("IP") survey may provide a vector towards high gold grades in future drilling. Notably, anomalous gold and copper values over the 260m strike length tested at the Skarn Area.

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Next Steps

Gold 50's Nevada projects are located within the prolific Walker Lane Trend, which is relatively under-explored but high discovery potential area that stands out with exceptionally high gold grades and growing reserves. Notable mines in the area include the Rawhide Mine (1.7 million oz's) and the Paradise Peak Mine (1.6 million oz's). Each of Gold 50's projects are large contiguous packages (no excisions) with limited small-scale mining and modern exploration.

Figure 2: Nevada Project locations

Gold 50 is currently assessing the outcomes from the drilling programs and other work done at the Top Gun and Spitfire Projects over the past year. Given the good prospectivity and untested areas at both projects, Gold 50 is planning how best to cost effectively explore these projects over the coming year.

At the Caisson Project, an extensive soil sampling program was completed in June 2022. The outcomes of this survey should provide areas to focus on for further work. Caisson has good potential for an intrusion related gold deposit.

The Broken Hills Project is prospective for epithermal gold-silver mineralisation similar to the nearby Rawhide Mine and Paradise Peak Mine which have each produced more than 1.6 million ounces of gold. Gold 50 has recently gained access to the data related to work done by Kinross on Broken Hills, which complements the data on the work done by Placer on the project.

This announcement has been approved for release by the Board of Gold 50.

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