OzAurum Resources : Exploration Update RC Drilling at Mulgabbie North Demag Zone

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ASX Announcement

14 June 2022

Exploration Update: RC Drilling at Mulgabbie North's

Demag Zone

OzAurum Resources Ltd (ASX: OZM or OzAurum or the Company) is pleased to provide an update on the recently completed reverse circulation (RC) program at the new virgin gold discovery Demag Zone recently discovered at Mulgabbie North.

Highlights

• A ten-hole RC program for 2,100 meters (m) has been completed at the Demag Zone.
• Significant wide downhole intervals of silicification with pyrite and arsenopyrite mineralisation has been intersected in current RC drilling.
• The third diamond drill hole, MNODH 004, has commenced at the Demag Zone with a planned depth of 400m.
• Thick sequence of Mulgabbie North gold host - intermediate volcanoclastic lithology has been intersected in the RC drilling - and is interpreted to be approximately 120m in true thickness.
• Current RC holes aimed to target extensions of gold mineralisation associated with MNORC 177 - 56m @ 1.31 g/t gold (Au) - (from 68m) incl 18m @ 2.07 g/t Au and MNORC 176 - 26m @ 1.79 g/t Au - (from 136m) incl 8m @ 4.78 g/t Au.
• Mineralisation intersected in MNORC 177 is associated with pyrite and arsenopyrite mineralisation and quartz veining.
• The Demag Zone hosts significant Reverse Circulation (RC) gold results over three 100-metre spaced drill lines 8300N, 8400N and 8500N.
• Mulgabbie North Relief Shear continues to demonstrate its potential to host significant gold mineralisation directly adjacent to the Northern Star (ASX: NST) Carosue Dam mill.

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OzAurum Resources Limited ABN 63 643 244 544

Unit 1, 15 Williams1 St, West Kalgoorlie WA 6430 | PO Box 10396, Kalgoorlie WA 6430 | [e-mail]

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Figure 1: Mulgabbie North RC drilling Demag Zone

CEO and Managing Director, Andrew Pumphrey, commented:

"We are excited to report on the significant drilling progress at our Mulgabbie North Gold Project. The recently completed RC drilling at the new virgin gold discovery Demag Zone has intersected mineralisation that closely correlates with adjacent RC holes MNORC 176 and 177, further validating the potential of Mulgabbie to be a significant gold discovery. We look forward to providing shareholders

with further drilling updates at this exciting new discovery."

Mulgabbie North Demag Zone Drilling Update

Ten RC drill holes were recently drilled at the Demag Zone for a total of 2,100m. Significant wide downhole intervals of silicification with pyrite and arsenopyrite mineralisation has been intersected in the current RC drilling.

Furthermore, RC drilling has confirmed the host conglomerate unit having a true thickness of approximately 120m.

Diamond drilling has continued at the Demag Zone with the commencement of a third diamond hole planned to be drilled to a depth of 400m. Significant zones of faulting were intersected in diamond holes MNODH002 and MNODH003, and these faults may impact on the final depth of the current third diamond hole.

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The second diamond drill hole MNODH 003 at the Demag Zone, on the 8400N section, was planned to target gold mineralisation at a depth previously intersected by RC drill hole MNORC 177 (see ASX announcement 21st April 2022).

Diamond hole MNODH 003, which was drilled to a depth of 335, has intersected zones of arsenopyrite and pyrite mineralisation with silica flooding that correlates well with mineralisation seen in recently drilled RC hole MNORC 177. Recent logging of both MNODH 002 and 003 has revealed a number of mineralising episodes of arsenopyrite and pyrite mineralisation, as well as quartz veining.

Mineralisation intersected in MNODH 003 is situated within a highly altered intermediate/felsic volcanoclastic conglomerate unit (host unit) that is interpreted to be the stratigraphic equivalent to an Upper Black Flag unit. The key characteristic of this particular Upper Black Flag unit is the presence of fuchsite altered clasts within the mineralised clastic unit.

Additionally, a late basin epiclastic conglomerate unit, that represents an important stratigraphic unconformity, was intersected at EOH in both MNODH 002 and 003. The Company plans to drill the current diamond hole to a further depth of 400m to reach this unconformity.

At the Demag Zone, secondary magnetite as part of an early high temperature alteration assemblage has been altered to hematite which is part of the lower temperature alteration assemblage including sericite, carbonate, pyrite and arsenopyrite.

The Demag Zone is most likely a result of fluid pathways along the interpreted fault zone.

The diamond drilling rig is being operated by OZM, with OZM paying operating costs only. The drill rig, and associated equipment is owned by Andrew Pumphrey and has been supplied to the Company at no cost, providing OZM maximum flexibility with diamond drilling requirements.

Diamond core will provide valuable information on lithology, mineralisation, alteration, and structure associated with the gold mineralisation at the Demag Zone. Any preferred orientation of high-grade gold zones in this area will be determined via structural analysis of the orientated diamond drill core. A structural geology consultant is undertaking structural analysis and interpretation on diamond core from both Mulgabbie North Demag Zone and Patricia that commenced on the 23rd of May.

Mulgabbie North Demag Zone Background

The virgin gold discovery Demag Zone is an exciting development at the Mulgabbie North Project.

The Demag Zone is situated between the Alicia and Ben Prospects within the Mulgabbie North Project. Only limited historical drilling has been undertaken within the three recently drilled 100m spaced RC drill lines at the Demag Zone, being ten shallow wide-spaced vertical RAB holes drilled by Gutnick Resources in 1999.

Recent OZM Aircore (AC) drilling results intersected at the Demag Zone included MNOAC 523 4m @

1.47 g/t Au from 40m, MNOAC 524 4m @ 1.25 g/t Au from 56m, MNOAC 534 4m @ 2.00 g/t Au from 44m, MNOAC 535 4m @ 1.21 g/t Au from 40m, MNOAC 536 17m @ 0.80 g/t Au from 56m including 1m @ 1.52 g/t Au EOH and MNOAC 546 4m @ 1.61 g/t Au (see ASX release 16th December 2021).

A thick blanket of high-grade supergene gold mineralisation has been delineated by AC drilling over the Demag Zone that OZM has targeted by RC drilling, and is now being followed up with diamond drilling.

OZM's recently drilled RC Drill holes were on 100m spaced lines at the Demag Zone with significant primary gold intercepts from three consecutive lines 8400N, 8500N and 8600N.

8400NMNORC 177 intersected significant interval of high-grade primary mineralisation of 56m @ 1.31 g/t Au from 68m and includes 1m @ 5.26 g/t Au, 18m @ 2.07 g/t Au.

MNORC 176 intersected 26m @ 1.79 g/t Au from 136m including 8m @ 4.78 g/t Au.

8500NMNORC 174 intersected 28m @ 1.00 g/t Au from 72m including 4m @ 2.32 g/t Au.

8300NMNORC 178 intersected 11m @ 1.13 g/t Au including 5m @ 2.06 g/t Au.

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The Demag Zone is located on the Relief Shear and the lithological contact that hosts gold mineralisation is located at the James, Ben and Alicia Prospects. Higher grade gold intersections at the Demag Zone have significant pyrite and arsenopyrite mineralisation within the intensely sericite altered felsic to intermediate volcaniclastic unit.

Intrusive porphyries have been intercepted now in a number of RC drill holes at Mulgabbie North along the Relief Shear. Future geological work will be undertaken to understand the potential the links of intrusive porphyry to current gold mineralisation and will be targeted with future diamond drilling.

The RC drilling at Mulgabbie North has defined primary gold mineralisation for over 1.3km of strike and we are confident that extensional RC drilling completed will further extend this strike. Also, we believe future RC drilling will continue to identify new primary gold mineralisation related to the numerous geochemical gold anomalies and recent AC saprolite hosted gold mineralisation targets.

Recent RC results, combined with recently announced AC results defining new zones of mineralisation now extending for 2.8 km in strike (see ASX announcement on 2nd September 2021), further highlight the potential of Mulgabbie North to be a significant gold project.

RC drilling at Mulgabbie North has also discovered wide zones of weak to moderate hematite alteration in some RC holes. Specifically, the hematite alteration indicates oxidised fluids from an intrusive complex suggesting proximity to the mineralising centre - likely to be within OzAurum's 100% owned Mulgabbie North tenure.

Upcoming RC and AC drilling and Planned Exploration Activities:

Follow up RC drilling at the Mulgabbie North Demag Zone is a high priority, along with ongoing RC drill- testing of AC saprolite gold anomalies and extensions to the Ben and James Prospects.

Utilising best practice RC drilling, sampling and assay protocols will allow for a potential future JORC 2012 compliant resource to be estimated with confidence at Mulgabbie North.

The Company will continue to provide regular market updates on exploration activities and report on drilling results as soon as they become available.

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Figure 2: Mulgabbie North 1VD magnetic image with current drill results and previously released RC results.

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