Rox Resources : Quarterly Activities Report - December 2021

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ASX RELEASE

28 January 2022

Quarterly Activities Report

For the period ending 31 December 2021

HIGHLIGHTS

• Youanmi Deeps Resource upgrade lifts total Youanmi Resource to 3 Moz Au
• Capital efficient Albion process shows average gold extraction of 92.2% in conceptual flowsheet for Youanmi sulphide ore
• Continued exploration success at Youanmi indicates resource growth to continue
• Exploration recommences at Mt Fisher - Mt Eureka Gold Project

West Australian focused gold exploration and development Company ("Rox" or "the Company") (ASX: RXL), is pleased to present its quarterly activities report for the period ending 31 December 2021.

During the quarter, Rox made significant progress toward establishment of production at the Youanmi Gold Project in WA through ongoing drilling and studies, and also resumed drilling at the Mt Fisher - Mt Eureka Gold Project in WA.

The extensive drilling and exploration activities at Youanmi lead to ongoing success at the Link Prospect, while a newly delineated hanging wall lode at Youanmi (Midway Prospect) is emerging as a strong target for follow-up drilling in 2022.

Subsequent to the quarter end Rox announced an increase in the Total Youanmi Mineral Resource of 1.34Moz Au to 3 Moz Au. The increase was based on drilling results up to the end of October 2021 and included an update to the Deeps Resource only, with the surface resource to be updated by the end of FY22. Pleasingly the resource contains a high-grade component of 9.9Mt at 6.89g/t Au for 2.2M ounces.

Rox is carrying out a number of development studies at Youanmi, including metallurgical testwork to address gold extraction from sulphide ore. During the quarter, two oxidation methods were tested including the pressure oxidation leach process (POX) and the Albion Process. Both saw improved gold recovery rates from the historic 86.8% to 95.6% and 92.2% respectively, with the Albion method preferred because of its lower cost.

Building on an extensive project scale review at the Mt Fisher- Mt Eureka Gold Project in the December quarter, Rox resumed exploration works including a 160-hole,7,000-metre aircore drilling program, a circa 4000m Reverse Circulation (RC) program and a high-resolution airborne magnetic survey targeting orogenic gold mineralisation and VMS style mineralisation over recently defined key target areas on Rox's 100% owned tenements.

ROX RESOURCES LIMITED	1	ASX CODE: RXL
Level 2, 87 Colin Street,
West Perth WA 6005		[e-mail]
[phone]		www.roxresources.com.au

For personal use only

Managing Director Alex Passmore commented: "The December quarter saw further outstanding exploration results reported from drilling at the Youanmi Gold Project, and also the delivery of impressive results from metallurgical testwork on sulphide ore.

"Our systematic and targeted exploration efforts at Youanmi continue to deliver strong results as we progress toward the potential restart of mining activities. This is clearly demonstrated with the recent resource upgrade announced subsequent to the quarter end. The geology team have done an incredible job in discovering new gold bearing structures.

The results from metallurgical testwork at Youanmi have been highly encouraging, with the Albion process significantly improving the gold recovery grade at a capital-efficient rate. Continued progress on these fronts emphasises the strong upside and outlook for Youanmi.

At Rox's second gold project, Mt Fisher, we are also actively exploring and are excited by the potential for a high-grade discovery."

Youanmi Gold Project

Rox holds a 70% interest in the OYG Joint Venture and is the manager at the historic Youanmi mining centre. Venus Metals Corporation Limited (ASX:VMC) ("Venus" or "VMC") retains a 30% interest.

The Youanmi Gold Project is located 480km NE of Perth and 400km inland and to the east of Geraldton. The Youanmi Gold Mine, located near the centre of the project tenement package, has historic production of 667,000 ounces of gold grading 5.42g/t from open pit (1987 - 1993) and underground operations. The operation was closed in 1997 when the gold price was approximately $400 per ounce with the last parcel of ore mined underground at 14.6 g/t Au grade.

The Youanmi Project Mineral Resource Estimate of 24.6Mt at 3.78 g/t Au for 3.0Moz of gold can be categorised into a near surface portion of 14.7Mt at 1.69 g/t Au for 0.8M ounces of gold and the Youanmi deeps of 9.9Mt at 6.9 g/t Au for 2.2M ounces of gold (refer ASX release 20 January 2022).

Resource extension drilling was conducted at Youanmi during the quarter with reverse circulation and diamond drilling rigs targeting shallow and deep positions respectively. Rox also undertook a substantial aircore drilling program on the regional tenements in the second half of calendar 2022 with results still pending.

Rox is working on further Resource updates that will incorporate all drilling results from 2021, to be released in the first half of this calendar year.

Resource Upgrade

Subsequent to the quarter end Rox announced that the Youanmi total mineral resource increased to 3Moz Au, an increase of 1.34Moz Au from the June 2021 resource of 1.66Moz Au (refer Table 1). The increase was based on drilling results up to the end of October 2021 and included an update to the Deeps Resource only, with the surface resource to be updated by the end of FY22.

ROX RESOURCES LIMITED	2	ASX CODE: RXL
Level 2, 87 Colin Street,
West Perth WA 6005		E: [e-mail]
[phone]		www.roxresources.com.au

For personal use only

The substantial increase in the Deeps Resource (+156% metal ounces) was across both the Indicated and Inferred categories and resulted in a significant increase in Au metal ounces per vertical metre, paving the way for expected robust conceptual economics.

The Deeps Resource upgrade was as a result of seven months of intensive diamond drilling for around 35,000 metres including infill, extensional, as well as defining new areas such as Link, Junction, and mineralisation-parallelhanging-wall lodes.

Table 1: Summary of Youanmi Mineral Resource January 2022

Figure 1: Deeps Resource and Near Surface Resource Model Au grade distribution in area near pits,

showing progression of Deeps Model from June 2021 (Deeps is below 300mRL)

ROX RESOURCES LIMITED	3	ASX CODE: RXL
Level 2, 87 Colin Street,
West Perth WA 6005		E: [e-mail]
[phone]		www.roxresources.com.au

For personal use only

Link Prospect

The Link target area is situated within the Northern Mineralised Envelope that hosts the high-grade United North, Kathleen and Rebel-Kurrajong open pits and Hill End underground mine.

On 19 October 2021, Rox reported assay results for four holes from the RC and diamond drilling program being undertaken at the Link Prospect at Youanmi from holes drilled during the quarter. At Link, a strongly mineralised North-South trending conjugate structure intersects the NW trending Mine Shear and forms multiple north plunging high-grade ore shoots. The highlights of this round of results included:

• RXRC412: 8m @ 6.24g/t Au from 249m, including 3m @ 12.1g/t Au from 250m
• RXDD030: 0.5m @ 77.49g/t Au from 277.8m and 0.75m @ 19.66g/t Au from 270.9m
• RXDD019: 1m @ 11.05g/t Au from 389m
• RXDD021: 0.7m @ 11.06g/t Au from 289.35m

On 29 November 2021, Rox reported a further four assays from the Link Prospect, including:

• RXRC430: 3m @ 9.35g/t Au from 182m, within 5m @ 6.33g/t Au from 180m
• RXRC428: 2m @ 7.93g/t Au from 279m within 9m @ 3.02g/t Au from 272m
• RXRC426: 2m @ 12.59g/t Au from 235m within 3m @ 8.61g/t Au from 235m
• RXRC406: 2m @ 7.81g/t Au from 234m, within 7m @ 2.82g/t Au from 230m

These results were from a 40mx40m-spaced (grid) drill pattern at Link, designed to convert mineralisation in the zone to additional gold resource inventory at Youanmi, and demonstrate that mineralisation in the area shows good continuity and should convert into resource ounces.

Further assay results were announced on 22 December 2021 for three RC holes at Link. The results included:

• RXRC437: 3m @ 7.23g/t Au from 131m, within 9m @ 4.27g/t Au from 128m
• RXRC436: 2m @ 8.16g/t Au from 183m, within 8m @ 4.17g/t Au from 178m
• RXRC438: 2m @ 6.78g/t Au from 127m, within 5m @ 4.33g/t Au from 122m

The results reported from this release were from shallower drilling up-plunge at Link in an area previously untested by drilling - between the base of historic open pits and underground development. Gold mineralisation intersected by this drilling is at 110 metres' depth, beneath the base of the Hill End open pit - a small historically mined (10m-15m depth) pit at Youanmi. This mineralisation also lies in a gap between the shallow and deeps resource envelopes, and hence is likely to contribute additional ounces to the resource inventory.

Mineralisation remains open down plunge to the northwest and up dip to the southeast.

ROX RESOURCES LIMITED	4	ASX CODE: RXL
Level 2, 87 Colin Street,
West Perth WA 6005		E: [e-mail]
[phone]		www.roxresources.com.au

For personal use only

Figure 2: Link Prospect long section (ASX: 22 December 2021)

Youanmi Hangingwall Lode (Midway Prospect)

Drilling at a newly delineated Hangingwall lode at Youanmi, as reported on 6 September 2021, has defined high-grade mineralisation in a newly delineated position in the hanging wall to the west of the Youanmi Mine Lode. This zone of mineralisation is situated 300m southwest of the Youanmi underground mine between the Bunker Pit and the Youanmi Main Pit. The Company has named the prospect "Midway".

On 18 November 2021, Rox reported that two additional diamond holes were completed to follow up on the previously reported intersection in hole RXDD022 (4m @ 45.5g/t Au from 341m, including 1.33m @ 129.3g/t Au from 341.75m) (ASX RXL 06/09/2021). Follow up drilling was completed 40m up dip (RXDD045) and 40m up plunge (RXDD046) of RXDD022. Both holes intersected similar style high-grade mineralisation.

High-grade intersections include:

• RXDD046: 3.87m @ 9.9g/t Au from 328.33m, including 2.45m @ 15.02 g/t Au from 328.8m
• RXDD045: 3.62m @ 6.49g/t Au from 315.42m, including 0.86m @ 21.03g/t Au from 315.42m

ROX RESOURCES LIMITED	5	ASX CODE: RXL
Level 2, 87 Colin Street,
West Perth WA 6005		E: [e-mail]
[phone]		www.roxresources.com.au