Golden State Mining Limited announced the first batch of composite assay results (approximately 75% of program results) from its regional phase three reconnaissance air-core ("AC") drill program at the Yule Project in the Mallina Basin. GSM is continuing its interpretation of anomalous and pathfinder element results with well-regarded industry consultants to determine the significance of these latest gold intercepts and their geological host rocks to vector in on prospective trends and structural corridors and to plan a follow-up drill program strategy. The first assay results have been received for eleven target areas drilled during the phase three reconnaissance program.

A total of 3,990 samples were submitted for gold fire assay over 4 metre composite intervals and single metre end of hole (`EOH') gold and multi-element assays. To date, 3003 results have been received with the remainder due by mid-March. At Yule South, composite results have been received for additional drilling at Target 1 East and new AC drilling at Target 1, located approximately 2.3 kilometres to the west.

The results from additional drilling at Target 1 West, Target 2A and Target 5 remain outstanding. At Yule East, results have been received for all of the target areas from GSM's first reconnaissance drill program on the tenement. All reconnaissance program holes were drilled on nominal 160 metre centres to blade refusal or to the limit of available drill rods (156 metres maximum) on regionally spaced drill traverses.

Phase three drilling has returned several anomalous four and six-metre composite intervals greater than 100ppb gold. Additional drilling at this target continued to probe a diorite intrusive and structural corridor previously discovered in phases 1 & 2 air-core programs. The best gold intersection occurred in a weathered saprolite horizon in hole 21GSYSAC0317 with 4m @ 200ppb from 30 metres. In addition, transported cover related gold mineralisation was intersected in hole 21GSYSAC0311 within an interpreted paleochannel containing a ferruginous grit host with 6m @ 190ppb from 24 metres.

This shallow paleochannel anomaly requires follow-up drilling to test extent and potential gold source. Reconnaissance AC drilling at this location was designed to target a south-east trending structural corridor containing potential mafic units and intrusives interpreted from aeromagnetic data. The best bedrock gold intersection occurred near the end of hole 21GSYSAC0341 in a slatey fine-grained metasediment with pyrite with 1m @ 120ppb from 89 metres.

Several anomalous gold intersections were also encountered at or near surface in weathered metasediments. The best result was recorded in hole 21GSYSAC0338 in a weathered arkosic saprock unit with 4m @ 200ppb from 21 metres. GSM will follow up on the interpretation of the bedrock intersections and the considerable potential of paleo-channel related gold mineralisation in this area due to its proximity "downstream" of the Hemi gold deposit.

GSM's assay results have now been received for all target areas at Yule East. GSM is investigating a possible link between the two gold intersections at Areas 1 & 2 potentially occurring within the same structure. Further magnetic modelling and interpretation will be completed to optimise any follow up drill orientations.

A potential interpretation of these +100ppb Au intercepts is that they are associated with a NW-SE trending structure which is poorly tested and remains open to the NW and SE. The additional gold and potential base metal pathfinder anomalism is consistent with the results of previous drilling along the YRSZ. GSM will continue working with industry consultants to consider this anomalism as potential vectors to economic mineralisation and understand the geological setting in which it may occur in the Mallina Basin.