GBM Resources : Twin Hills continues to deliver with 186 m @ 1.77 g/t Au

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ASX Announcement

25 May 2022

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ABN 91 124 752 745

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Twin Hills continues to deliver with 186 m @ 1.77

g/t Au

HIGHLIGHTS

• Excellent results continue to be returned for GBM's initial 309 Deposit drill program within its flagship Twin Hills Project and include:
  309DD22006: 152.1 m @ 1.16 g/t Au from 47.9 m, including

4.3 m @ 8.35 g/t Au from 51 m, and

4 m @ 10.2 g/t Au from 90 m

309DD22007: 186 m @ 1.77 g/t Au from 47 m, including 3 m @ 6.78 g/t Au from 69 m, and

9 m @ 12.99 g/t Au from 124 m, and

4.4 m @ 7.26 g/t Au from 154.6 m

309DD22009: 28 m @ 1.14 g/t Au from 94 m, including

8.3 m @ 3.01 g/t Au from 96.7 m

30 m @ 1.23 g/t Au from 127 m, including 2 m @ 9.85 g/t Au from 132 m

• 12.4 m @ 2.72 g/t Au from 248 m, including 1 m @ 30.66 g/t Au from 248 m

• Drill holes 309DD22006 and 007 intersected broad intervals of gold mineralisation with gram x metre (g*m) intersections of 176 and 329 g*m respectively.
• Drill hole 309DD22007 returned a peak result of 0.5 m @ 155.75 g/t Au from 125 m.
• Multiple zones of mineralisation intersected outside current resource in 309DD22009 underlines the potential to increase the modelled resources.
• A ~200 m wide zone of alteration, brecciation and veining at the base of 309DD22009 expands the size of the known system.

GBM Managing Director and CEO, Peter Rohner, commented:

"Once again drilling at the Twin Hills 309 deposit has returned excellent assay results that build on numerous high-grade intersections in the first five holes. It is very pleasing to see the results confirm previous drilling and the block model whilst defining extra mineralisation at depth and around the margins of the resource. We continue to build our understanding of the deposit and look forward to providing both additional results and an updated geological model in the coming weeks".

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GBM Resources Limited (AZX: GBZ) (GBM or the Company) is very pleased to announce more excellent results from the initial ~ 7,000 m diamond drill program at the Twin Hills Project 309 Deposit (Figure 1 and Appendix 1). Drilling is rapidly advancing with 13 of the planned 17 holes completed. A drill program of 14 holes for ~ 7,000 m at the nearby Lone Sister Deposit is also planned.

GBM's initial drill program at Twin Hills is designed to:

1. confirm historic drilling results and data;
2. infill areas of lower drill density drilling to upgrade resource confidence; and
3. importantly provide an initial test of extensions to mineralisation outside of the current resource boundaries

309 Deposit Assay Results

Additional excellent results have been returned for the 309 Deposit drilling program (Table 1) with the best intersections of 152.1 m @ 1.16 g/t Au from 47.9 m in 309DD22006 and 186 m @ 1.77 g/t Au from 47 m in 309DD22007. These results build on previously reported outstanding results of 162 m @ 2.65 g/t Au from 69 m in 309DD22001, 79 m @ 1.09 g/t Au from 131 m in 309DD22002 (Refer ASX: GBZ release 6 April 2022 and Table 2), 148 m @ 1.11 g/t Au from 26 m in 309DD22003, and 49 m @ 5.18 g/t Au from 310 m in 309DD22005 (Refer ASX: GBZ release 10 May 2022 and Table 2).

Assay results from holes 309DD22006 and 007 have returned broad intervals of gold mineralisation with gram x metre (g*m) intersections of 176 and 329 g*m respectively. These intervals start from 47.9 m downhole in 309DD22006 and 47 m downhole in 309DD22007 highlighting the open pit mining potential of the 309 Deposit (Table 1) whilst 309DD22007 returned a peak result of 0.5 m @ 155.75 g/t Au and 154.4 g/t Ag from 125 m emphasizing the continued presence of high-grade mineralization.

Drill hole 309DD22006 (Figures 1 and 2) intersected:

• 152.1 m @ 1.16 g/t Au and 3.71 g/t Ag from 47.9 m including o 4.3 m @ 8.25 g/t Au and 5.33 g/t Ag from 51 m
  o 4 m @ 10.2 g/t Au and 51.6 g/t Ag from 90 m

1. 5 m @ 2.47 g/t Au and 4.5 g/t Ag from 135 m.

Gold grades intersected by 309DD22006 are comparable to surrounding drill holes and the estimated resource grade. Several intersections between 50 and 100 m were better than expected whilst grades below 200 m downhole were less than expected.

Drill hole 309DD22007 (Figures 1 and 2) intersected:

• 186 m @ 1.77 g/t Au and 3.43 g/t Ag from 47 m including o 3 m @ 6.78 g/t Au and 14.3 g/t Ag from 69 m
  o 9 m @ 12.99 g/t Au and 22.91 g/t Ag from 124 m o 4.4 m @ 7.26 g/t Au and 5.32 g/t Ag from 154.6 m o 9 m @ 5.67 g/t Au and 5.29 g/t Ag from 168 m
  o 2 m @ 8.49 g/t Au and 2.65 g/t Ag from 212 m

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• 23 m @ 0.9 g/t Au and 1.42 g/t Ag from 269 m

The 309DD22007 intercept of 186 m @ 1.77 g/t Au and 3.43 g/t Ag from 47 m is an excellent result as it confirms the existing resource model grade distribution and will help to upgrade the classification of the resource in this area. Gold grades intersected are comparable to surrounding drill holes, however, two thirds of the intersection of 23 m @ 0.9 g/t Au and 2.65 g/t Ag from 269 m sits outside the resource model. 309DD22007 returned a peak result of 0.5 m @ 155.75 g/t Au and 154.4 g/t Ag from 125 m that is manifested as fine visible gold within a quartz-chalcedony- fluorite breccia vein (Figure 4). 309DD22007 also intersected multi-stagequartz-chalcedony- fluorite breccia fill in several places including in an interval of 1 m @ 19.02 g/t Au and 21.9 g/t Ag from 169 m (Figure 4).

Drill hole 309DD22008 (Figures 1 and 2) intersected:

• 14.2 m @ 0.72 g/t Au and 2.39 g/t Ag from 53.8 m

This drill hole returned lower grades than anticipated. Multiple zones of core loss were recorded in weathered material through the key ore zone between 38 and 54 m and this hole will likely be redrilled. The bulk of the intercept of 14.2 m @ 0.72 g/t Au and 2.39 g/t Ag from 53.8 m sits outside the existing resource model.

Drill hole 309DD22009 (Figures 1 and 3) intersected:

• 4 m @ 3.54 g/t Au and 1.97 g/t Ag from 57 m including o 1 m @ 11.32 g/t Au and 7.87 g/t Ag from 60 m
• 28 m @ 1.14 g/t Au and 1.75 g/t Ag from 94 m including o 8.3 m @ 3.01 g/t Au and 2.81 g/t Ag from 96.7 m
• 30 m @ 1.23 g/t Au and 2.93 g/t Ag from 127 m including o 2 m @ 9.85 g/t Au and 7.17 g/t Ag from 132 m
• 10 m @ 1.17 g/t Au and 1.71 g/t Ag from 176 m
• 12.4 m @ 2.72 g/t Au and 11.29 g/t Ag from 248 m including o 1 m @ 30.66 g/t Au and 2.55 g/t Ag from 248 m
• 28 m @ 0.34 g/t Au and 1.21 g/t Ag from 265 m

Gold grades intersected by 309DD22009 are comparable to surrounding drill holes and the estimated resource grade. Two zones of mineralisation were intercepted outside the resource model (Figure 3) and will likely provide a modest upgrade to the contained ounces. Of note, 309DD22009 drilled further south than previous holes (Figure 1). Intense to moderate silicification and adularia (Figure 4) as both alteration and vug and vein fill together with veining and brecciation was intersected across a 200 m down hole width below the last significant intercept (Figure 3). This shows that the alteration system is more extensive than previously understood and may provide a vector towards better grades or additional mineralisation at depth.

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Drill Hole

309DD22006

309DD22007

309DD22008

Comments	From	To	Interval	Au (g/t)	Ag (g/t)	Au g*m	^^
(m)	(m)	(m) ^
	0.0	11.3	11.3	0.37	0.24	4
	16.5	24.0	7.5	0.25	0.49	2
	28.2	39.0	10.8	0.67	0.47	7
	47.9	200.0	152.1	1.16	3.72	176
inc.	51.0	55.3	4.3	8.25	5.33	35
inc.	90.0	94.0	4.0	10.20	51.60	41
inc.	105.0	106.0	1.0	2.52	7.30	3
inc.	126.0	128.0	2.0	3.11	4.50	6
inc.	135.0	140.0	5.0	2.47	4.50	12
inc.	153.0	155.0	2.0	2.70	3.65	5
inc.	160.0	161.0	1.0	5.25	4.20	5
inc.	194.0	195.0	1.0	2.95	2.20	3
	217.0	221.0	4.0	0.44	1.58	2
	230.0	233.0	3.0	0.87	0.70	3
inc.	232.0	233.0	1.0	2.24	1.40	2
	237.0	238.0	1.0	0.27	0.00	0
	253.0	256.0	3.0	0.30	0.30	1
	260.0	267.0	7.0	0.16	0.44	1
	3.0	7.0	4.0	0.32	0.46	1
	47.0	233.0	186.0	1.77	3.43	329
inc.	54.0	57.0	3.0	2.83	4.13	8
inc.	69.0	72.0	3.0	6.78	14.30	20
inc.	80.0	81.0	1.0	4.98	24.60	5
inc.	124.0	133.0	9.0	12.99	22.91	117
inc.	154.6	159.0	4.4	7.26	5.32	32
inc.	168.0	177.0	9.0	5.67	5.29	51
inc.	181.0	182.0	1.0	2.55	2.00	3
inc.	204.0	205.0	1.0	2.34	2.10	2
inc.	212.0	214.0	2.0	8.49	2.65	17
	242.0	256.0	14.0	0.32	0.91	4
	269.0	292.0	23.0	0.90	1.42	21
inc.	287.0	290.0	3.0	3.01	2.00	9
	299.0	301.0	2.0	0.45	1.10	1
	3.0	4.0	1.0	0.46	0.25	0
	9.0	14.0	5.0	0.23	0.32	1
	20.0	30.1	10.1	0.38	0.85	4
	44.9	49.1	4.2	0.45	2.10	2
	53.8	68.0	14.2	0.72	2.39	10
	74.0	79.0	5.0	0.20	0.17	1

For

Table 1: Assay results returned for 309 Deposit drill holes 309DD22006 - 009.

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Drill Hole	Comments	From	To	Interval	Au (g/t)	Ag (g/t)	Au g*m	^^
(m)	(m)	(m) ^
		24.0	25.0	1.0	0.23	0.10	0
		31.0	33.0	2.0	0.59	0.49	1
		43.0	44.0	1.0	0.49	0.22	0
		51.0	52.0	1.0	1.15	0.77	1
		57.0	61.0	4.0	3.54	1.97	14
	inc.	60.0	61.0	1.0	11.32	7.87	11
		66.0	87.0	21.0	0.38	2.55	8
		94.0	122.0	28.0	1.14	1.75	32
	inc.	96.7	105.0	8.3	3.01	2.81	25
		127.0	157.0	30.0	1.23	2.93	37
	inc.	132.0	134.0	2.0	9.85	7.17	20
	inc.	145.0	147.0	2.0	2.00	2.60	4
309DD22009		162.0	171.0	9.0	0.44	1.48	4
inc.	168.0	169.0	1.0	2.06	3.47	2
		176.0	186.0	10.0	1.17	1.71	12
	inc.	185.0	186.0	1.0	7.13	6.24	7
		189.7	218.0	28.3	0.27	1.11	8
		248.0	260.4	12.4	2.72	11.29	34
	inc.	248.0	249.0	1.0	30.66	2.55	31
		265.0	293.0	28.0	0.34	1.21	10
		324.0	330.4	6.4	0.27	0.13	2
		339.0	348.0	9.0	0.18	0.63	2
		357.8	361.0	3.2	0.34	0.56	1
		370.0	376.0	6.0	0.26	0.22	2
		380.0	384.0	4.0	0.19	0.12	1
		417.0	421.0	4.0	0.22	1.18	1
		465.8	467.0	1.2	0.22	2.15	0

Intercepts calculated with 0.2 g/t Au cut‐off and 3 m internal dilution.

High grade included intercepts calculated with 2.0 g/t Au cut off and 3 m internal dilution.

• All widths and intercepts are expressed as metres down hole. ^^ Au g/t multiplied by metres

Table 1: Assay results returned for 309 Deposit drill holes 309DD22006 - 009 (continued).

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