Resources & Energy Group Limited advised that results from the recently completed September/October drilling program have been received. Numerous high grade and broad intervals of gold mineralisation have been intersected at the Maranoa, Sunday, and Gigante Prospects. Drilling Activities: During September and early October, the company completed 32 holes at East Menzies for an advance of 3945m.

The drilling Investigations targeted multiple prospects across the greater East Menzies Goldfield Project area including Gigante Grande, Maranoa, Granny Venn North, and Oliver Twist. The work was fully funded from cash flow generated from recent mine operations completed at Granny Venn in July 2022. A total of 33 holes were originally planned for an advance 4400m however several holes testing the resource at Gigante Grande, and Oliver Twist could not reach completion depth due to wet and boggy drilling conditions.

One hole at Granny Venn was not drilled due to concerns over its proximity to the pit highwall. The holes drilled short will be completed as diamond tails, the Granny Venn hole will be relocated and drilled in a follow up program which is currently being developed. Results Discussion: Altogether, 17 of the 32 holes completed during the September campaign intersected gram level gold mineralisation.

The shallow near surface nature of the mineralized intervals also underscores the quality and prospectivity of the 110km2 East Menzies Project area. Commencing in the central south, the Maranoa drilling program was designed to test continuity in the Sunday, Birthday Gift and Lady Min line of workings. These lodes have never been drill tested by modern exploration.

Seven holes were completed as part of the initial investigations. Three of these holes intersected gold mineralisation in quartz veins and contact alteration boundaries within a sheared sequence of weakly foliated close-grained metavolcanics. The most promising of these appear to be the Sunday line of workings, a parallel lode on the dip side of Maranoa, which returned a peak result of 5m@ 4.18gt/au from 7m down the hole in MRC37and 2m@ 3.05gt/au from surface.

Two diamond holes MRDDH28 and MRDDH29 were also completed over the Maranoa line of workings. These holes were drilled to test down dip continuity of the Maranoa lode below the current drilled extents, to collect sample for Metallurgical and AMD test-work and to indicate whether any stope activity had been carried out in the area under investigation. The lodes were intact and intersected in both holes at a depth of around 40m, with a best result of 1.5m@ 4.10gt/au from 39m (MRDD29).

Towards the East, investigations at Gigante Grande were directed at the Northern, Central and Southern domains of the prospect area. In the North domain, six scout holes were completed to probe for a potential continuation of mineralisation along the Moriarty Shear Zone (MSZ). The holes were primarily located on the basis of magnetic interpretation alone, targeting structures along granitic and mafic boundaries.

Drillhole GGRC32 successfully tested the concept intersecting 9m@1.87 gt/au from 111m down the hole in a sequence of mafic rocks. This is a significant exploration result; as it confirms that the mineralized system along the MSZ can be extended further north for a distance of at least 2.5km. In the central part of Gigante, eight holes for a cumulative advance of 979m were drilled to further investigate the resource potential of this prospect.

Four of these holes were drill testing historic +40ppb gold in bedrock anomalies. The most easterly of these, GGRC36 intersected 2m@7.32gt/au from 30m within a broader interval of 9m @ 1.8gt/au from 30m down the hole. Despite a lengthy time spent conditioning this hole, GGRC36 was terminated at 39m due difficult ground conditions.

Based on assays received, the hole was clearly still in mineralization and will be completed as a diamond tail in the near future. Four holes were also completed to test the strike of mineralization intersected previously in the vicinity of 21EMRC005 and 21EMRC004. All four holes intersected multiple intervals of gold mineralization, with peak results of 7m@ 1.66g/t au from 47m in GGRC38, 9m @ 2.17g/t au from 93m in GGRC39, 13m @ 1.32g/t au from 27m in GGRC40 and 5m @3.79g/t from 49m in GGRC41.

An analysis of assays received for GGRC40 indicates that this hole is essentially continuously mineralized from 15m to a depth of 92m down the hole. At a cut-off grade of 0.2gt/au, the aggregate gram/metres for this hole is 57m @ 0.8gt/au. Three holes were completed in the southern part of the Gigante prospect, GGRC42, GGRC43 and GGRC44.

These holes are all located in P29/2270, which is currently the subject of native title negotiations as part of a mining lease application lodged by the Company in 2021. Drillhole GGRC42 was drilled to test for a resource extension east of borehole 20EMRC14. The hole intersected three intervals of mineralisation, including 1m@ 3.95g/t au from 92m, 4m@ 2.35g/t au from 99m, including 1m@5.63g/t au from 99m and 3m@1.71gg/t au from 137m.

The two remaining holes, GGRC43 and 44, were essentially step-out holes to probe for a potential southerly continuation of mineralisation along the MSZ. GGRC43 intersected 2m@ 2.54gt/au from 90m. Unfortunately, this hole did not reach completion depth of 200m due to wet, boggy ground conditions and was terminated at 103m.

GGRC44 intersected a broad, 16m thick zone of weakly mineralized granitic/felsic rocks in the tenor of 0.18-0.7gt/au, from 184m to completion depth of 200m. The confirmation of mineralization in the southern domain extends the strike of the prospective ground by a further 300m to 600m. This outcome, in association with result achieved in the northern domain, increases the strike of the mineralized system at Gigante Grande to 5.0km.

At Granny Venn, resource modelling identified a potential flat lying body of mineralized rocks trending north, into P29/2621 and P29/2622. Three holes for an advance of 440m were planned to test this model, GVRC5, GVCR6 and GVRC7. Two of the holes GVRC4 and 5 failed to detect the ore body, however it is noted there was some compromise in the final set up locations to avoid protection bunds around the pit highwall.

The third hole was not drilled due to concerns with ground stability adjacent to the pit highwall. The third hole will be re-located and drilled in a follow up campaign which is being developed for the Springfield-Venn Corridor, and into the northern most tenement E29/929. There is a considerable strike length of untested ground in this corridor between Granny Venn and the most northerly prospects at Cock Robin.

The Company will be investigating these opportunities for repeat occurrences of the Granny Venn orebody further north and to the northwest of the current pit.