Sierra Nevada Gold : expands footprint at Blackhawk

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ASX ANNOUNCEMENT

ASX: SNX

31st May 2022

Sierra Nevada Gold expands copper-gold porphyry footprint at

Blackhawk

Step-outDipole-Dipole Induced Polarisation (DP-DP IP) lines reaffirm Blackhawk's large- scale hydrothermal system, expanding the porphyry sulphide footprint and upgrading drill targets.

Highlights

• 2 IP survey lines expands and adds to SNX's understanding of the large sulphide alteration system that underpins the Blackhawk porphyry project in Nevada, USA.

1. Line L8 400m (8.5km in length) extends the high-response chargeability anomaly 450m to the NE, expanding the large 13km2 sulphide shell1 underlying the porphyry core. Additional IP geophysics has upgraded existing targets and provided additional targets not previously defined.

• 1. Line L3 200m (4.5km in length) provided additional clarity to SNX's high priority Mother Load target area, previously covered by 400m spaced DP-DP data.
• SNX will combine new data with previously acquired IP data over the porphyry project (50.5-line km) and complete a 3D inversion for enhanced system understanding and drill targeting.
• SNX plans to drill Blackhawk porphyry targets in Q3 CY2022.

Sierra Nevada Gold (ASX: SNX) is pleased to announce an IP survey of its Blackhawk copper-gold porphyry project in Nevada, USA has expanded the sulphide footprint associated with the project.

SNX has defined both porphyry and epithermal systems at Blackhawk, with identified high impact targets ready to drill. Blackhawk porphyry is one of five projects in SNX's portfolio in Nevada, a tier-one mining jurisdiction.

Its recently completed extensional two-line program of DP-DP IP successfully expanded and better characterised the already defined +13km2 sulphide shell1, interpreted based on the previous 50.5-line km of 400m DP-DP IP surveying. The sulphide shell or "pyritic halo" is considered an integral feature of porphyry deposits and generally its scale is commensurate with the size of the porphyry system.

1 Information on SNX previous IP Geophysics - Sierra Nevada Gold Replacement Prospectus - Annexure A. Independent Geological Report pages 33-35, Figure 16 page 42.

SIERRA NEVADA GOLD INC	USA 5470 Louie Lane, Suite 101,	Australia Suite 119, Level 11, 28 Southgate Avenue,
ASX: SNX, ARBN: 653 575 618	Reno, Nevada 89502 | T [phone]	Southbank, Victoria 3006 | T [phone]
E [e-mail] W www.sngold.com.au
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SNX Executive Chairman Peter Moore said: "The results from two new lines of IP geophysical data shot in the past few weeks confirms the Blackhawk Porphyry is a very large-scale system (+30km2 area) 2. The new data expands the prospective copper-gold porphyry footprint and upgrades the identified priority drill targets that the company plans to drill in Q3 this year."

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Background

SNX's latest program of IP builds on previous successful surveys the Company has completed since 2017. SNX now has acquired more than 62-line km of high quality DPDP IP data over the porphyry target. This dataset defines a very large and significant sulphide shell (+13km2, and open) (see figure 1) that outcrops and underlies the mapped, large and zoned prograde and retrograde porphyry alteration system. The IP data reinforces other complimentary datasets underpinning the interpretation that the large hydrothermal alteration footprint mapped at Blackhawk are the result of a multiphase porphyry mineralised system.

Figure 1. Oblique view looking north at Blackhawk showing SNX's latest DPDP IP lines (L8 400 & L3 200) displayed as chargeability pseudo sections with mapped alteration, Cu geochemistry from rock chips (%) draped on topography. Underlying is the +13km2 (in plan view) +35msec chargeable shell inferred from the preceding 50.5 line km of 400m DPDP IP completed by SNX between 2017 and 2020.

2 Sierra Nevada Gold Replacement Prospectus - Page 33.

SIERRA NEVADA GOLD INC	USA 5470 Louie Lane, Suite 101,	Australia Suite 119, Level 11, 28 Southgate Avenue,
ASX: SNX, ARBN: 653 575 618	Reno, Nevada 89502 | T [phone]	Southbank, Victoria 3006 | T [phone]
E [e-mail] W www.sngold.com.au
	Page 2

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Since 2014, SNX has acquired numerous complimentary exploration datasets including drilling, detailed heli- magnetics, close-spaced gravity data, spectral data, soil and rock geochemical surveys and detailed geological/alteration mapping programs over the Blackhawk Project. These helped define a substantial and fertile mineral system with a large porphyry footprint and a well-developed epithermal vein component. These datasets have allowed SNX to generate numerous high quality drill targets on both the porphyry and epithermal systems, with a high-grade discovery already made beneath the Endowment Mine (BHD006 12m @ 219g/t Ag, 0.36g/t Au, 8.54% Zn, 3.05% Pb from 250m).3

Figure 2. Oblique view looking north. Schematic 3D representation of the datasets acquired by Sierra Nevada Gold at the Blackhawk Project and their integration in the porphyry targeting process.4

The Dipole-Dipole IP survey method is often used to determine the presence of disseminated sulphides. It can do this because rocks containing sulphide minerals can be more readily charged than non-sulphide bearing

1. Information on SNX's drilling - Sierra Nevada Gold Replacement Prospectus - Annexure A. Independent Geological Report pages 45 -51.
2. Sierra Nevada Gold Replacement Prospectus - Figure 2.7 Page 34.

SIERRA NEVADA GOLD INC	USA 5470 Louie Lane, Suite 101,	Australia Suite 119, Level 11, 28 Southgate Avenue,
ASX: SNX, ARBN: 653 575 618	Reno, Nevada 89502 | T [phone]	Southbank, Victoria 3006 | T [phone]
E [e-mail] W www.sngold.com.au
	Page 3

ground. When an external current is applied then charge separation can occur on sulphide grain boundaries, when the transmitted current is switched off the decay of the current can be measured.

About the Blackhawk Epithermal and Porphyry Project

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SNX has identified two major and extensive components of a large mineralised system at its Blackhawk Project

• an epithermal component and a porphyry component.

The Blackhawk epithermal vein system is prospective for high-grade, structurally controlled Ag-Au and base metal deposits and is partially coincident with, and adjacent to, the northern edge of the extensive Blackhawk porphyry system. At least eight historic mining areas were operated within the Blackhawk epithermal vein system between the 1860s and the early 1900s, the main mining areas being around the Endowment, Morning Star and Blackhawk mines. The epithermal vein system covers an area of approximately 5km2 and contains up to 22-line kilometres of mostly untested veins.5

SNX has obtained bonanza grade precious and base metal rock chips and drilling from the epithermal vein system and has a suite of drill ready targets.

Figure 3. Oblique view looking north showing, the Blackhawk epithermal vein field, silver rock chip geochemistry (g/t) and historical mines and production and areas of historic resource estimates. Note the vein field extends to the north and northwest beneath the post mineral cover rocks.6

5, 6 Sierra Nevada Gold Replacement Prospectus - Page 32 & Figure 2.5 Page 32.
SIERRA NEVADA GOLD INC	USA 5470 Louie Lane, Suite 101,	Australia Suite 119, Level 11, 28 Southgate Avenue,
ASX: SNX, ARBN: 653 575 618	Reno, Nevada 89502	| T [phone]	Southbank, Victoria 3006 | T [phone]
E [e-mail] W www.sngold.com.au

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The porphyry system is defined by a world-class scale, fertile alteration system measuring more than 30km2, which remains open. Centrally, the porphyry system is marked by a 4km diameter ring of historic mines that have exploited various porphyry style mineralisation types which is, in turn located coincidently with a large +13km2 zone of high chargeability (sulphides) defined by IP geophysics. The porphyry system is regarded as having significant potential to host porphyry-relatedCu-Au mineralisation.7 The Blackhawk Project consists of 636 contiguous 20-acre claims covering 49km2, close to existing highways and extensive infrastructure.

Figure 4. Plan view of the mapped porphyry alteration system showing the epithermal and the porphyry "D" vein fields, historic mines and the onlapping shallow post mineral rocks to the north and northwest. Cu geochemistry from rock chip sampling.8

Next Steps

SNX's mapping, geochemical, and geophysical programs continue at Blackhawk, enhancing our understanding of the mineral system and drill targets defined. SNX has a suite of exciting high priority targets ready for drill testing across both the epithermal and porphyry systems.

SNX is planning a program of core drilling targeting the first of our high priority porphyry targets, scheduled to commence early Q3 CY2022.

7, 8 Sierra Nevada Gold Replacement Prospectus - Page 33 & Figure 2.6 Page 33.
SIERRA NEVADA GOLD INC	USA 5470 Louie Lane, Suite 101,	Australia Suite 119, Level 11, 28 Southgate Avenue,
ASX: SNX, ARBN: 653 575 618	Reno, Nevada 89502	| T [phone]	Southbank, Victoria 3006 | T [phone]
E [e-mail] W www.sngold.com.au

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