Navarre Minerals : Further high grade gold results from Telstra Hill drilling

ASX Announcement

20 June 2022

For personal use only

TELSTRA HILL DRILLING DELIVERS

FURTHER HIGH-GRADE GOLD RESULTS

P E A K I N T E R C E P T O F 9 5 . 2 g / t G O L D C O N F I R M S O U T S T A N D I N G P O T E N T I A L F O R

T E L S T R A H I L L T O B E C O M E A S U P P L E M E N T A L O R E S O U R C E F O R T H E M T C A R L T O N O P E R A T I O N

• Assays from ongoing infill and extensional reverse circulation and diamond core drilling at Telstra Hill, one kilometre from the Mt Carlton mill, confirm the strong grade and continuity of the gold-silver- copper mineral deposit.
• Highlight drilling results include:

• 5.0 metres at 22.1 g/t gold from 36 metres, including: o 1.0 metre at 95.2 g/t gold (TH22RC053)
• 24.1 metres at 2.1 g/t gold & 10.6 g/t silver from surface, including:

• • • 7.1 metres at 4.3 g/t gold & 14.1 g/t silver from 1.9 metres (TH22DD043)
  • 4.0 metres at 4.1 g/t gold from 36 metres, including:
  • • 1.0 metre at 9.5 g/t gold from 38 metres (TH22RC055)
  • 27.0 metres at 2.3 g/t gold & 0.2% copper from 14 metres, including:
  • • 1.0 metre at 18.3 g/t gold from 40 metres (TH22DD036)
  • 2.0 metres at 6.3 g/t gold & 0.3% copper from 59 metres, including:
  • • 1.0 metre at 11.9 g/t gold from 59 metres (TH22RC049A)
  • 8.0 metres at 2.1 g/t gold from 37 metres, including:
  • • 1.0 metre at 9.2 g/t gold from 41 metres (TH22RC057)
  • 12.3 metres at 1.7 g/t gold from 37 metres (TH22DD041)
  • 14.8 metres at 1.0 g/t gold & 0.1% copper from 28.1 metres (TH22DD042)
• Telstra Hill, together with satellite deposits at Mt Carlton United, Delta and BV7, represents a complementary resource for Navarre's mining strategy for the Mt Carlton operation, given the proximity to the 960Ktpa processing facility only one kilometre away.
• Drilling results will contribute towards an updated Mineral Resource and Ore Reserve estimate for the Mt Carlton operation scheduled for reporting in September 2022.

For personal use only

ASX Announcement

20 June 2022

2

Navarre Minerals Limited (ASX: NML) (Navarre or the Company) is pleased to report outstanding high- grade gold, silver and copper drilling intercepts at its Telstra Hill deposit, part of the recently acquired and wholly owned Mt Carlton Operation (Mt Carlton) in North Queensland, Australia (Figures 1 & 2).

These latest drilling results from Telstra Hill, including a highlight intercept of 5 metres at 22.1 g/t gold, add to the satellite deposits defined at Mt Carlton United, Delta and BV7 (see ASX announcements on 20 December, 17 January 2022, 17 February 2022 and 22 April 2022).

The results from Telstra Hill further reinforce the outstanding prospectivity of the Mt Carlton project area and support Navarre's strategic objective of growing the mineral inventory and extending mine life.

The results disclosed in this announcement have not been previously reported and cover an additional 10 reverse circulation (RC) and 19 diamond core drill holes for 2,218 metres of drilling completed at Telstra Hill since the previous update announced to the ASX on 22 February 2022.

While drilling continues in 2022 as part of an ongoing exploration program, Navarre anticipates the drilling results in this report will inform an updated mineral resource estimate for Telstra Hill which is expected to be published in September 2022, along with updated mineral resources for other Mt Carlton deposits such as V2, Mt Carlton United, BV7 and Delta.

Navarre Managing Director Ian Holland said:

"The Company is extremely pleased with the latest batch of drilling results received from Telstra Hill, a shallow high-grade gold, silver and copper deposit strategically located within one kilometre of our 960Ktpa processing facility.

"The ongoing resource definition drilling program has confirmed the continuity, tenor and width of the gold, silver and copper system of the Telstra Hill deposit.

"Telstra Hill is a key component of our satellite open pit mining strategy for the Mt Carlton operation which, to date, includes three other gold deposits delineated at Mt Carlton United, Delta and BV7.

"We can also see significant potential to expand our satellite mineral inventory, with exploration programs underway to progressively test key targets across the Mt Carlton mining lease, Crush Creek and regional prospects."

The drilling program has involved one RC and up to two diamond core drilling rigs, with the aim of infilling and extending the known limits of the gold, silver and copper mineralised system as well as providing metallurgical and geotechnical information within the broader envelope of known mineralisation.

ASX Announcement

20 June 2022

3

For personal use only

Figure 1: Location of Navarre's Mt Carlton Operation.

Telstra Hill Drilling Results

The Telstra Hill prospect is located approximately one kilometre northwest of the Mt Carlton processing facility and is interpreted to be an intrusive related, low sulphidation epithermal gold, copper +silver mineralised system, which has potential to provide supplemental mill feed at Mt Carlton (Figure 2).

The style of mineralisation has similar characteristics to Mt Carlton United and the producing V2 deposit, where early high sulphidation mineralisation has evolved over time to become a lower sulphidation system.

The Telstra Hill mineralisation appears to be mostly stratabound, hosted within a shallow dipping, permeable rhyodacite unit situated above granite basement rocks (Figure 4).

The drilling has focused on improving the definition of the geology and grade continuity within the shallow Inferred Mineral Resources already defined at Telstra Hill, as well as providing initial testing for potential depth extensions.

The drill assays are expected to upgrade and expand the existing Mineral Resource to build critical mass for high-grade new gold developments as potential satellite mill feed to the nearby Mt Carlton Operation. This is in addition to other potential satellite mill feed identified at Mt Carlton United and the Crush Creek Project (refer ASX announcement on 30 March 2022).

Details of the Telstra Hill drilling program are provided in Tables 1 & 2 and Appendix 1.

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ASX Announcement

20 June 2022

4

V2 open pit mine

Figure 2: Aerial view from the Mt Carlton processing facility looking northwest towards Telstra Hill and the Mt Carlton United prospects.

Figure 3: Plan of Telstra Hill showing the distribution of 2022 drill holes relative to historical drilling. The location of the Figure 4 cross-section is shown in yellow.

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ASX Announcement

20 June 2022

5

R e s u l t s a n d I n t e r p r e t a t i o n

A total of 29 resource definition RC and diamond core drill holes for 2,218 metres of drilling have been completed at Telstra Hill since the previous reporting of drilling intercepts to the ASX on 22 February 2022.

All assays have been received and are currently being interpreted and geologically modelled in preparation for updating the Inferred Mineral Resource. This drilling is expected to increase the confidence in the geology and grade continuity at Telstra Hill to upgrade the current Mineral Resource to the Indicated category.

The drilling has confirmed two distinct styles of mineralisation:

• a set of closely spaced, stacked, sub-horizontal lenses of high-grade gold and copper mineralisation that appears to be continuous across multiple drill holes. These high-grade lenses are contained within a broader 20 to 30-metre-thick envelope of lower-grade gold, copper and silver mineralisation. These lenses contain several high-grade intersections, including an impressive intercept of 5 metres at 22.1 g/t gold from 36 metres in drill hole TH22RC053. This intercept includes the current drilling campaigns peak assay of 1.0 metre at 95.2 g/t gold (Figure 4 & Table 2); and
• a high-grade, steeply dipping structure feeding into the stacked, sub-horizontal lenses (feeder structure).

Figure 4: Telstra Hill cross-section 558 737mE geological interpretation (refer to Figure 3 for location).