Labyrinth Resources : Half-Year Report 31 December 2021

For personal use only

Labyrinth Resources Limited Corporate directory

31 December 2021

Directors

onlyChief Executive Officer

Company secretary Contact

Registered office usePrincipal place of business

Share register

Auditor

personalStock exchange listing Website

ACN For

Dean Hely

Mel Ashton

Simon Lawson

Matthew Nixon

Kelly Moore

PO Box 1473, Subiaco WA 6904

Ph:[phone]

Email: [e-mail]

Suite 5, Level 1, 460 Roberts Road, Subiaco WA 6008

Suite 5, Level 1, 460 Roberts Road, Subiaco WA 6008

Automic Registry Services

Level 5, 191 St Georges Terrace, Perth WA 6000 Ph Within Australia: 1300 288 664

Ph Outside of Australia: [phone]

Moore Australia

Level 15 Exchange Tower, 2 The Esplanade, Perth WA 6000

Australian Securities Exchange (ASX code: LRL)

www.labyrinthresources.com

008 740 672

1

Labyrinth Resources Limited Directors' report

31 December 2021

The Directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter as the 'Group') consisting of Labyrinth Resources Limited (referred to hereafter as the 'Company' or 'parent entity' or 'Labyrinth') and the entities it controlled at the end of, or during, the half-year ended 31 December 2021.

onlyDirectors

The following persons were Directors of the Company during the whole of the financial half-year and up to the date of this report, unless otherwise stated:

Dean Hely (Non-Executive Chairman)

Mel Ashton (Non-Executive Director)

useMichael Foulds (Non-Executive Director - resigned 11 November 2021) Simon Lawson (Non-Executive Director - appointed 11 November 2021)

Review of operations

In the six months to 31 December 2021, the Company focused on the transformational acquisition of the Labyrinth and Denain gold projects in Quebec. As part of this strategy, Labyrinth raised $9.5 million, with Canaccord Genuity

(Australia) acting as Lead Manager.

personalTo reflect the Company's new direction, the decision was taken to change the name from Orminex to Labyrinth Resources.

Labyrinth's strong emphasis on maximising shareholder returns led to the Company agreeing to sell its remaining 50% interest in Penny's Find to joint venture partner Horizon Minerals Limited (ASX:HRZ). This was aimed at providing further working capital for exploration at the Canadian projects.

To support the exploration and growth activities of Labyrinth, the Company appointed Andrew Chirnside as Chief Geologist, commencing in January 2022. Mr Chirnside holds a Bachelor of Science in Geology from the University of Canterbury, New Zealand and has more than 15 years' experience specialising in underground, narrow vein gold mining operations. He has worked for several leading companies including Newmont, Barrick and Gold Fields. In his most recent role of Geology Manager for Northern Star Resources (ASX: NST) at its world-class Jundee Operations, Mr Chirnside oversaw a team of 200 personnel across five operating gold mines and achieved considerable success in a greenstone gold system with very similar mineralogy to the Abitibi Belt, which hosts Labyrinth's Canadian projects.

For

2

Labyrinth Resources Limited Directors' report

31 December 2021

CANADIAN ACTIVITIES

The Labyrinth and Denain gold projects are located approximately 230km apart along highway 117 and situated in a world class mining jurisdiction hosted by the prolific Abitibi Greenstone Belt. The acquisition of the projects from onlyNippon Dragon Resources Inc (TSX-V:NIP) ('Nippon') was completed during the half-year following the satisfaction of all conditions precedent and the payment of the initial consideration of CAD$2 million to Nippon (refer ASX

announcement 9 November 2021).

Following completion of the acquisitions, Mr Jean-Yves Thérien and Mr Sylvain Plante were appointed to the key management positions of President and General Manager of Operations respectively for Labyrinth Resources Canada Pty Ltd. Jean-Yves and Sylvain are Canadian residents fluent in both French and English with demonstrated success in venture capital and operational mine management roles respectively, including significant knowledge of the flagship Labyrinth project.

For personal use

Figure 1 - Location of Canadian projects, with historical production of significant Abitibi gold camps

3

Labyrinth Resources Limited Directors' report

31 December 2021

LABYRINTH

The Labyrinth Gold Project is located 35km west of the town of Rouyn-Noranda, situated at the Ontario/Quebec border, and comprises 34 Claims and 1 Mining Lease across an area of 1,411ha, with an historic non-JORC NI43- only101 resource of 2.1Mt @ 7.1g/t for 479koz of gold, including 570kt @ 6.52g/t for 120koz classified as measured/indicated1. The historical underground mine remains accessible and includes five main levels to a depth

of approximately 130m below surface.

During the December 2021 half-year, the Company focused on preparing for the start of operations. This included u derground and surface infrastructure, in preparation for commencement of underground diamond drilling in early 2022. External expert consultants were engaged to conduct assessments on critical ventilation, electrical and c mpressed natural gas underground heating, while drone technology was utilised to survey existing underground development and stoping voids. Appropriate road maintenance and snow-ploughing equipment has been procured to support the safe and efficient operational activities.

usepersonal Figure 2 Road maintenance activities by Labyrinth Resources supporting local community road users For

• Refer to ASX announcement 2 September 2021 for foreign estimate information, JORC 2012 tables and competent person statement. The Company is not aware of any new information or data that materially affects the information included in the 2 September release. All material assumptions and technical parameters continue

to apply and have not materially changed.

4