Thomson Resources : Twin Hills Silver-Gold Deposit Update

ASX ANNOUNCEMENT

18 January 2022

For personal use only

Mineral Resource Estimate Advances and Significant Silver-Gold Drill Intersections for Twin Hills Deposit, Texas Silver District Reported

HIGHLIGHTS

• Mineral Resource Estimate (MRE) for Twin Hills silver-gold deposit is well advanced, as next step in restatement of the New England Fold Belt Hub and Spoke silver-gold-base metal resource base -
• JORC 2012 compliant MREs for all Texas Project deposits anticipated Q1 2022
• Silver-golddrill intersections are reported to JORC 2012 for unmined in-ground Twin Hills areas at 25 and 90 g/t silver cut offs, from the newly validated drill hole database (Table 1, 2)
• Highlight intersections (m down hole) for the unmined in-ground resource include:
• • THP041: 36 m at 180.2 g/t Ag and 0.42 g/t Au from 66 m (6,486 Ag g*m@,25 g/t Ag cut off) Including 22 m at 267.9 g/t Ag and 0.61 g/t Au from 66 m (5,894 Ag g*m, 90 g/t Ag cut off)
  • THP305: 32 m at 210.1 g/t Ag and 0.37 g/t Au from 32 m (6,724 Ag g*m, 25 g/t Ag cut off) Including 10 m at 457.0 g/t Ag and 1.05 g/t Au from 48 m (4,570 Ag g*m, 90 g/t Ag cut off)
• New 3D geological model from detailed pit mapping and relogging of over 21,000 m of historic drilling delivers step change in geological understanding. Highlights:
• • Potential to improve resource model confidence and
  • District exploration prospectivity
• New metallurgical test work - for Twin Hills is well advance evaluating a grind / float / leach potential processing pathway for improved silver - gold recoveries vs the low recoveries returned from the previous mine operator's heap leach operation

Thomson Resources (ASX: TMZ) (OTCQB: TMZRF) (Thomson or the Company) advises that the Company is well advanced in defining a JORC 2012 Mineral Resource Estimate (MRE) for the Twin Hills silver-gold deposit, Texas silver district, southern Qld (Figure 1) (Texas Project).

The Texas Project is a 100% Thomson owned, silver-gold-zinc-lead-copper district with historic production totaling an estimated 4.2 million ounces of silver 1,2,3, 690 tonnes zinc, 1,050 tonnes of lead and 990 tonnes of copper. Exploration by previous operators in the Texas District has defined silver

- gold - base metal resources at the Silver Spur, Twin Hills and Mt Gunyan deposits.

Thomson is leveraging the many millions of dollars invested in exploration on these deposits by previous operators, with a complete review, including full relogging of previous drilling along with new proprietary geological and metallurgical knowledge, to calculate JORC 2012 MRE's for the Silver Spur, Twin Hills and Mt Gunyan deposits, all part of the Texas Project. The objective is to deliver a district scale picture of the in-ground silver, gold and zinc resource for the Texas Project. Thomson is well advanced in this process and anticipates delivering JORC 2012 MREs for Silver Spur, Twin Hills and Mt Gunyan during Q1 of 2022.

@ Ag Gram Metres = Ag (g/t) * Interval (m). Note widths are downhole.
THOMSON RESOURCES LTD (ASX: TMZ) (OTCQB: TMZRF) ABN 82 138 358 728	1
Level 1, 80 Chandos Street, St Leonards, NSW 2065

Tel: [phone] E:[e-mail] www.thomsonresources.com.au

ASX ANNOUNCEMENT

18 January 2022

For personal use only

Executive Chairman David Williams commented:

"Within the Texas District we have made a point of not taking the simple path of "rubber stamping" previously published MREs. Instead we have gone back to scratch and completely reviewed and validated the database of historic exploration results in order to provide us with a complete and well informed picture of what we have and where the potential lies to increase the MREs. This was accompanied by extensive relogging of all samples, including some reassaying, and geological mapping.

"We made the decision not to accept prior operators' models and have developed our own conclusions with a large amount of additional work required to fill the gaps in metallurgical understanding - key to ensuring not only that these deposits can be processed, but that they can be processed with the other Projects. This work has highlighted the higher-grade centre of the Twin Hills deposit.

"This has all taken time but has provided us with a much better understanding of what is going on in this District and a very robust database for the MREs to be defined from. We make no apologies for this as this reflects our commitment to progressing the New England Fold Belt Hub and Spoke Project into development in a commercially sustainable and long-term way.

"The extensive work done now has us at the stage where we can start the calculations of the MRE's for Twin Hills and Silver Spur and will soon start for Mt Gunyan so that we will have the complete Texas district scale picture.

"We have also begun the process to deliver an updated MRE for the high grade Webbs silver-base metal project to complete the New England Hub and Spoke resource picture."

Figure 1: Location of the Twin Hills, Silver Spur and Mt Gunyan Deposits, Texas Silver-Gold Base Metal District

THOMSON RESOURCES LTD (ASX: TMZ) (OTCQB: TMZRF) ABN 82 138 358 728

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Level 1, 80 Chandos Street, St Leonards, NSW 2065

Tel: [phone] E:[e-mail] www.thomsonresources.com.au

ASX ANNOUNCEMENT

18 January 2022

Twin Hills Metallurgical Test Work and New Mineral Resource Estimate

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Twin Hills is a bulk-minable, silver - gold deposit with minor associated zinc, lead and copper. Only approximate 25% of the known sulphide deposit has been mined via previous open pit mining and heap leach operations (Annexure 2, JORC Table 1). This has left the majority of the deposit unmined and silver - gold sulphide mineralisation outcropping in the pit floor, easily accessible for a potential restart of mining operations.

Thomson engaged geoscience consultants, Global Ore Discovery to re-evaluate the deposit geology and build a new geological model of Twin Hills, compile a validated database of all historic drilling information, augmented with additional bulk density and check assay sampling as required to calculate a new MRE to JORC 2012 reporting standards.

A validated and expanded drill hole data base and 3D wireframes of the new geological model have been delivered to Thomson's Resource Geological consultants, AMC Resources. Calculation of the new MRE for Twin Hills is progressing and will be reported within the coming weeks.

Global Ore also collected 78 metallurgical samples totaling 220 kg of sulphide mineralisation representative of the silver grade and mineralisation styles of the Twin Hills deposit. These samples were selected from historic drill core and outcrop from within the Twin Hills pit and submitted to Thomson's metallurgist consultants, CORE Resources, for metallurgical analysis.

All historic metallurgical test work on the Twin Hills mineralisation was focused on heap leach processing of the silver ore. Thomson's tests are designed to address gaps in the metallurgical understanding of the Twin Hills deposit and evaluate new processing pathways that could deliver higher silver recoveries than the less than 60%1,2, silver recovery returned from the historic heap leach operations. The overriding objective is to define metallurgical processes that could also be compatible with Thomson's central processing concept for the New England Fold Belt Hub and Spoke project portfolio.

The CORE Resources Twin Hills metallurgical test work is nearing completion and will be reported to Thomson in the next few weeks.

Silver - Gold Drill hole Intersection for Twin Hills in Ground Deposit

Down hole silver and gold intersections have been calculated from the newly validated drill hole data base at 25 g/t Ag cut off (approximate cut off grade of previously published Twin Hills MRE5) and at 90 g/t Ag cut off. Selected highlights from these intersections with greater than 2,000 and 1,200 silver gram/meters (g*m) respectively are presented in Tables 1 and 2.

These intersections highlight the broad intervals of bulk minable style silver mineralisation and the presence of a higher-grade silver "core zone" to the Twin Hills deposit.

Further, the intersections confirm the presence of potentially significant "co-product" gold mineralisation in the deposit, as highlighted below.

• 36 m at 180.2 g/t Ag and 0.42 g/t Au(hole THP041) 25 g/t Ag cut off
• 14 m at 196.6 g/t Ag and 0.75 g/t Au(hole THP061) 25 g/t Ag cut off
• 10 m at 457.0 g/t Ag and 1.05 g/t Au(THP 305) 90 g/t cut off
• 4 m at 675.0 g/t Ag and 2.19 g/t Au(THP061) 90 g/t cut off

A more comprehensive set of drill intersections for the unmined inground Twin Hills deposit at the 25 and 90 g/t silver cut offs are presented at greater than 250 and 350 Ag g*m in Annexure 1, Tables 1a and 2a respectively.

THOMSON RESOURCES LTD (ASX: TMZ) (OTCQB: TMZRF) ABN 82 138 358 728

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Level 1, 80 Chandos Street, St Leonards, NSW 2065

Tel: [phone] E:[e-mail] www.thomsonresources.com.au

ASX ANNOUNCEMENT

18 January 2022

Table 1: Twin Hills Drill Intersections for the Unmined Inground at > 25 g/t Silver cutoff (selection >2000 Ag g*m)

For personal use only

Hole ID	From (m)	To (m)	Interval (m)				Ag g/t			Au g/t	Ag Gram Metres
THD020	24	64	40										0.01
			104.3	4170.0
THD022	72	110	38		54.2	0.01		2058.0
THD030	50	84	34			90.0	0.01
		3060.0
THP041	66	102	36							180.2					0.42
									6486.0
THP045	58	96	38			81.3				0.40
					3088.0
THP046	100	149	49			84.7			0.27
				4152.0
THP048	44	86	42			80.1			0.27
				3366.0
THP054	92	139	47			87.1			0.24
				4093.0
THP061	118	132	14								196.6							0.75
									2752.0
THP305	32	64	32									210.1				0.37
							6724.0
THP312	30	58	28				104.9		0.19
				2936.0
THP331	24	54	30			80.0	0.05
		2400.0
THP336	22	52	30			83.7	0.06
		2512.0
THP433	44	48	4															0.64
675.0		2700.0
THR003	66	90	24									204.5	0.07
					4908.0
THR013	62	90	28			80.5	0.03
		2254.0
THR015	70	150	80			74.9	0.11
		5990.0
THR017	98	148	50			78.6	0.13
		3932.0
THR034	46	88	42		53.0	0.03
	2228.0
THR035	66	120	54					112.3	0.11
			6066.0
THR036	64	88	24				102.5	0.05
			2460.0
THR050	18	84	66			68.5	0.04
		4518.0
THR052	70	110	40		56.4	0.05
	2257.0
THR055	26	108	82			60.5	0.02
	4962.0
THRC002	14	49	35						159.0	0.00
		5564.1
THRC014	13	56	43			72.1	0.00
	3100.6
THRC019	31	73	42			62.3	0.00
	2615.1

Table 2: Twin Hills Drill Intersections for Unmined Inground Resource at >90 g/t Silver cutoff (Selection >1200 Ag g*m)

Hole ID	From (m)	To (m)	Interval (m)	Ag g/t			Au g/t	Ag Gram Metres
THD020	40	50	10			168.4	0.01					1684.0
THP041	66	88	22													0.61
267.9						5894.0
THP046	132	138	6															0.79						1750.0
291.7
THP054	92	104	12			168.3					0.45								2020.0
THP061	120	124	4
600.0	2.19	2400.0
THP305	48	58	10
457.0	1.05	4570.0
THP307	50	58	8				181.5	0.07			1452.0
THP312	30	42	12			159.7				0.39							1916.0
THP336	38	52	14		131.1	0.10							1836.0
THP433	44	48	4														0.64
675.0					2700.0
THR003	72	84	12								0.11
316.0	3792.0
THR013	80	88	8			151.3			0.04		1210.0
THR035	102	112	10												0.43
270.0		2700.0
THR036	70	82	12			154.0	0.07							1848.0
THR050	34	46	12		129.8			0.04				1558.0
THRC002	20	39	19								0.00
239.7	4554.2
THRC008	69	76	7					193.4	0.00			1353.5

No high-grade cut was applied. Intercepts calculated using 25 g/t Ag and 90 g/t Ag cutoff, with a maximum 2.0 m internal dilution. Intercepts represent downhole intersections, that may be greater than true widths for the mineralised zone. Assays below detection limit were multiplied by -0.5 g/t Ag. Ag Gram Metres = Ag (g/t) * Interval (m).

THOMSON RESOURCES LTD (ASX: TMZ) (OTCQB: TMZRF) ABN 82 138 358 728

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Level 1, 80 Chandos Street, St Leonards, NSW 2065

Tel: [phone] E:[e-mail] www.thomsonresources.com.au

ASX ANNOUNCEMENT

18 January 2022

For personal use only

New Geological Model, Implications for Resource Modelling and District Exploration

Thomson's geoscience consultants have completed detailed geological mapping of the pit area, relogged over 300 historic drill holes and completed petrology on 25 core samples to build a new geological understanding of the Twin Hills deposit.

This geological knowledge has been translated into a 3D wireframe of the Twin Hills Deposit (Figure

1. that will be used by Thomson's Consultants, AMC, to guide the new JORC 2012 MRE. The pervasive sulphide mineralisation at Twin Hills and the related alteration shows a good correlation with the distribution of the silver - gold grades. This has allowed the logged sulphide percentage of the deposit to be modeled in 3D to produce sulphide shells that can be used to guide MRE modeling and domaining of the deposit (Figure 3).

The disseminated sulphide content and the "blob" like morphology of the Twin Hills style of mineralisation makes it an excellent target for electrical geophysical survey techniques like gradient array, Induced Polarization (IP) and electromagnetics (EM). This has significant implications for exploration for other concealed deposits in the district (see Thomson ASX Release dated 16 December 2021 - IP Geophysical Survey Commenced at Texas Silver District to test large Scale Anomaly).

This analysis and geological modeling have also highlighted exciting conceptual exploration potential for concealed bulk minable and deeper higher grade precious and base metal mineralisation at Twin Hills and in the broader Texas Project area. Modeling of the pre-mining silver grade distribution using historic drill data, coupled with the new structural and stratigraphic understanding of the deposit, suggest the Twin Hills sediment hosted bulk mineable deposit has formed at the confluence of the following factors:

1. The intersection of NE trending structures with the district scale NW trending Stokes Fault zone that has acted as hydrothermal feeder zone to mineralisation;
2. Moderately carbonaceous and calcareous host shales that may have acted in part as a chemical and, when silicified, brittle host to mineralisation during progressive structural deformation; and
3. Deposit scale anticline that has ponded mineralisation into the hinge zone of the fold (Figure 4).

Targeting similar settings along the Stokes Fault zone and other like settings within the Texas Project with geological mapping and with electrical geophysics and geochemical sampling, has a strong probability of delivering discoveries of additional silver-gold base metal mineralisation.

For further information on the geology, mineralisation and exploration potential of the Texas district see Annexure 1.

THOMSON RESOURCES LTD (ASX: TMZ) (OTCQB: TMZRF) ABN 82 138 358 728

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Level 1, 80 Chandos Street, St Leonards, NSW 2065

Tel: [phone] E:[e-mail] www.thomsonresources.com.au