Sihayo Gold Limited provide an update on the Company's operational and corporate activities in North Sumatra, Indonesia, with reference to recent detailed releases by the Company: Over the course of 2021 and 2022 to date, the Company has completed considerable work improving the technical definition of the Sihayo Starter Project (the "Project") and to de-risk its implementation through a series of work streams ("2022 Feasibility Study Update" or "2022 FSU"). This involved: Review of the geometallurgical model and its use for mine planning Development of a revised pit design and tactical mine schedules Updated design of processing plant consistent with the needs of the tactical mine schedule and geometallurgical parameters of the orebody Updated Tailings Storage Facility ("TSF") compliant with international standards and suitable for submission to the Indonesian Dam Safety Committee Development of the operational strategy Advancing the environmental and community strategy Developing a site-wide water balance model Updated project layout to de-risk construction and operating activities Re-estimation of operational and capital costs As a result of the 2022 FSU, Mineral Resources and Ore Reserves statements have been updated. The Project Economics were assessed using a USD1,700/oz gold price and 5% discount rate.

A summary of the key outputs for the 2022 FSU. The Mineral Resource estimate for the Sihayo and Sambung deposits has been updated to reflect consolidation of the results from the 2019 infill drilling program at Sihayo and a comprehensive revision of the geology and mineralisation models for both deposits. In particular, the geological model used in the 2020 DFS was updated to reflect metallurgical domains that are now in line with the mine and processing scheduling and inform the stockpiling and blending requirements for the operations.

Furthermore, the cut-off grade for the Mineral Resource estimate was revised down from 0.6 g/t Au to 0.4 g/t Au in response to economic analysis used for the Ore Reserve estimate, which showed 0.4 g/t Au was a suitable cut-off for economic material in the deposits. Using the updated geological model developed by SGC and updated economic inputs, AMC Consultants Pty Ltd. ("AMC") has completed pit optimisations, mine designs and detailed tactical scheduling for the Sihayo and Sambung deposits. The revised Ore Reserve estimate is based on a seven-year open pit operation, producing approximately 551 koz of gold from 774 koz contained gold over the LOM.

This mine plan includes 33 koz of gold from the Inferred Mineral Resource classification. In the revised mine plan, the throughput rate has increased from an average of 1.6 Mtpa in the 2020 DFS to 1.9 Mtpa in the 2022 FSU due to an increase in mill size. This has resulted in the mine life decreasing from 8.5 years to 6.5 years.

Comparison of the 2022 FSU to the 2020 DFS mine plan. The Sihayo process plant has been designed to treat the expected range of ore types to be delivered during the LOM mining schedule. The ore was characterised into seven categories based on ore type (regolith, jasperoid and clay-sulphide) and oxidation state (oxide, transitional and fresh).

The processing plant underpinning the 2020 DFS was sized for a throughput rate of 1.5 Mtpa on the harder (fresh) material and up to 2.0 Mtpa on the softer (oxide) material. Given the likely blending ratio of hard and soft material, the resulting throughput in the 2020 DFS averaged 1.6 Mtpa. During the Optimisation Studies, the Company determined that a larger mill size capable of operating at close to 2.0 Mtpa with all ore types would provide greater flexibility for operations, particularly in the event that additional sources of mineralisation are identified.

The 2022 FSU process design now incorporates a 5.7 MW semi-autogenous grinding ("SAG") mill. A 3.8 MW SAG mill was adopted for the 2020 DFS design. Another significant change to the processing plant design was the inclusion of an additional crushing station to more effectively manage the oxide ore.

A surge bin and emergency stockpile were also added to provide surge capacity ahead of the SAG mill, effectively decoupling the mill from the crushers. Changes were also made to the leaching and adsorption circuits, carbon treatment and tailings thickening design. The site layout and infrastructure has undergone significant re-work since the 2020 DFS.

This has primarily been driven by the need for increased risk mitigation for the tailings line and water security on site as well as to simplify operations and reduce operating risks. Of particular note was an update to the site-wide water balance model which indicated that, under the 2020 DFS design, where treated TSF decant water would be discharged to the environment rather than re-used in the processing plant, the site was likely to encounter periods where there was insufficient water to reliably sustain operation of the processing plant. A preferred option is to return decant water from the TSF to the processing plant to improve water security during operations.

The 2020 DFS site layout located the majority of processing and non-processing infrastructure close to the Sihayo pit, with the TSF located in the valley approximately 800 m in altitude lower than the processing plant. Given the need to return decant water to the processing plant, and the significant engineering design requirements for a tailings line descending 800 m under this design, alternative locations for the processing plant were considered as part of the Optimisation Studies. The Company decided to revise the location of the processing plant, relocating it to an area approximately halfway between the Sihayo pit and the TSF.

This reduced the size of the tailings line and decant water return line compared with the 2020 DFS location. The Company also decided to revised the location of other site infrastructure and facilities as a result of both the change in processing plant location and to reduce the construction and operating risks. The main changes include the relocation of the Mine Infrastructure Area ("MIA"), offices and run-of-mine ("ROM") pad closer to the processing plant and locating the mining camp closer to the mine front gate.

These changes allow for a lower-risk, faster construction schedule as the facilities and infrastructure construction can commence prior to completion of the mine access road (from the mine front gate to the Sihayo pit). It also reduces the amount of traffic on site during operations, with only mine workers (including the haulage fleet) required to travel past the MIA on the site access road. This significantly reduces traffic- related risks on site.