Prodigy Gold NL : High Grade Intercepts of Historical Golden Hind Diamond Core

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ASXANNOUNCEMENT/MEDIARELEASE

ASX: PRX

25 January 2022

High Grade Intercepts from Historical Golden Hind Diamond Core

KEY POINTS

• Results have been returned for two previously un-sampled historical diamond core drill holes at Golden Hind.
• Both holes intersected mineralisation that has subsequently been mined out, but each hole provides important information to better predict possible mineralisation extensions and generate new drill targets.
• Significant intercepts for the previously un-sampled holes include:

1. 22.5m @ 25.2g/t Au from 11m - GHDD100001 including
2. • 16.5m @ 34g/t Au from 14m and including

• 0.9m @ 347g/t Au from 19.1m

• 1. 21m @ 0.8g/t Au from 3m - GHDD100002 including
  2. • 8m @ 1.4g/t Au from 16m
• Diamond hole GHDD100001 was drilled in 2012 as a twin of hole GHRC100014; both containing visible gold.
• 1. Previously reported results from GHRC100014 (ASX: 2 Oct 2012) include:
  2. • 42m @ 44g/t Au from surface including
     • • 15m @ 118.5g/t Au from 16m
• Hole GHDD100002 was drilled in 2012 to the north of the main high grade area to obtain information on the stratigraphy outside of the main mineralised area.
• Gold at the Golden Hind Deposit is contained in quartz veins and shear zones
• 1. The known high grade mineralisation has since been mined out, including the

intercepts presented in this release.

1. The two drill holes were originally drilled in 2012 and no sampling was conducted on the drill core (GHDD100001 and GHDD100002) prior to the sampling reported in this release.

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Prodigy Gold NL (ASX: PRX) ('Prodigy Gold' or the 'Company') is pleased to announce results from the sampling of previously un-sampled historical diamond core on its Golden Hind project in the Northern Territory. Golden Hind forms part of the Old Pirate Mineral Resource Estimate last updated in August, 2016 (ASX: 19 Aug 2016).

Management Commentary

Prodigy Gold Exploration Manager, Edward Keys said: "The Company is advancing its understanding

on the previously reported 10,000t @ 3.8g/t Au Golden Hind Mineral Resource (ASX: 19 Aug 2016). The recently completed sampling program analysed core from two historically drilled diamond core holes to assist with possible future modelling and drill targeting in the area. This is a material result due to the low number of holes in this part of the deposit. The two holes were drilled in 2012 prior to the area having been mined out in 2013-2016. The 2012 drilling, with results presented herewith, include 105.3m of previously un-sampled drill core with significant mineralisation (>0.5g/t Au) returned over 47.6m, or >45% of the total metres assayed. Mineralisation occurs over sheared zones in the oxidised zone including multiple steeply dipping veins.

The additional results broadly support the historically mined resource with mineralisation intersected where predicted and previously reported in historical RC drilling.

The diamond drilling intersected high grade mineralisation in oxidised rock with visible gold in veining. The result of 22.5m @ 25.2g/t Au from 11m in GHDD100001 is an example of the high grades that occur within the previously mined Golden Hind Mineral Resource. The re-evaluated historical drill core will allow the geologists to better assist with an explanatory or predictive model to target possible extensions to mineralisation in future drilling campaigns."

Golden Hind Deposit - Previous Work

The Golden Hind Mineral Resource is located approximately 600 metres south of the Company's Old Pirate High Grade Gold open pit. The project consists of gold bearing quartz veins hosted by sandstone and shale. Gold is hosted in quartz veins as well as ferruginous sheared sediments at Golden Hind. The Old Pirate gold deposit comprises the Old Pirate and Golden Hind Mineral Resources. Gold at Old Pirate was first recognised in outcropping veins in the late 1990's by North Flinders Mines. North Flinders Mines, Normandy NFM and Newmont Asia Pacific all conducted exploratory work on the project with the last recorded drilling by these entities undertaken in 2005. The Company acquired the project from Newmont in March 2010 and conducted extensive surface sampling, reverse circulation (RC) drilling, diamond drilling (DD), trial mining and mapping prior to the commencement of open cut mining in late 2014. Mining activities ceased in March 2016, and the project was placed on care and maintenance.

Historical results displayed that the gold at the Golden Hind deposit is contained in NW-SE striking quartz veins and quartz vein breccia which are dipping at approximately 71° to the west. At surface high grade gold was confirmed over a strike length of 60 metres. Historically presented results also indicate that the high grade zone is plunging approximately 35 degrees to the south within steeply dipping veins. The mineralised system at Golden Hind is approximately 90 metres long (at depth) and between 3 and 15 metres wide. The majority of drill intersections at the Golden Hind Project contain zones of coarse visible gold. There was an element of complexity with gold hosted in both quartz veins and shear-zones in sediments. As well as steeply dipping structures, there is a shallowly dipping geological control that is not yet fully understood.

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Contemporary review of historically drilled core and previously reported results

Diamond hole GHDD100001 was drilled as a twin of the previously reported RC hole GHRC100014; both containing visible gold. GHDD100002 was drilled to the north of the main high grade area, to obtain information on the stratigraphy outside of the main mineralised area. The previous management decided not to assay the core for these holes, but rather keep it for future reference purposes. Contemporary Prodigy Gold management elected to analyse the historical core due to the low number of holes in this part of the deposit.

The two-hole observation and assay program presented in this announcement was completed to provide results for possible future remodelling of the resource and renewed understanding of the controls to the previously mined mineralisation at the Golden Hind deposit. The program also aimed to provide the Company geologists ability to generate an improved model of the high grade structures within the broader Old Pirate mineralised system with a view to better predict possible mineralisation extensions and generate new drill targets.

The vicinity of the drilling area presented in this announcement has been completely mined out prior to March of 2016 (Figures 1-3). Results presented in this announcement intersected mineralisation in oxidised material where orientated core was not possible. Veins were preserved containing visible gold and were observed to be at shallow angles to the drill core axis indicating relatively steeply dipping orientation. The additional results broadly support the historically mined resource with mineralisation intersected where predicted and previously reported in historical RC drilling. The RC drill hole (GHRC100014) that was twinned by GHDD100001 displayed a significantly higher gold intercept of 42m @ 44g/t Au from surface (ASX: 2 Oct 2012).

The results and collar location for GHRC100014 were initially disclosed under the JORC2004 (ASX: 2 Oct 2012) and have not been re-released to the ASX under JORC2012 prior to this announcement. The results were, however, included in the JORC2012 compliant 2016 Mineral Resource update (ASX: 19 Aug 2016). Updated collar coordinates for GHRC100014 can be found in Appendix 2 following from differential GPS (DGPS) surveying that took place subsequent to Oct 2nd, 2012. Also updated in Appendix 2 are DGPS collar coordinates for GHDD100001 and GHDD100002 with greater spatial confidence than originally reported.

The very high grade assay, presented in this announcement, of 0.9m @ 347g/t Au from 19.1m in GHDD100001 was contained in weakly veined ferruginous sediments adjacent to wider veining containing visible gold (Figure 4).

The obtained results confirm broad consistency in the spatial distribution and style of mineralisation previously reported at Golden Hind. The consistency of grade, however, was observed to be variable between the closely spaced twinned holes' significant intercepts. The highly nuggetty mineralisation observed at Golden Hind along with the steeply dipping/narrow mineralisation could explain the variability between twin holes drilled less than 5m apart. Further modelling using the new results will potentially allow for a better understanding on the variability of grade and continuity of mineralisation at Golden Hind.

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Figure 1 - North-looking cross section through historically mined pit at Golden Hind. Highlighting notable contemporary results for GHDD100001. See appendices for a listing of all significant results. Note only RC and DD holes displayed.

Figure 2 - North-looking cross section through historically mined pit at Golden Hind. Highlighting notable contemporary results for GHDD100002. See appendices for a listing of all significant results. Note only RC and DD holes displayed

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Figure 3 - Golden Hind deposit along the Old Pirate mineralised trend on ML29822, showing historical drilling and recently sampled diamond drill holes.