Zuleika Gold Limited reported that it will recommence its drilling activities this month following on from extensive exploration completed in 2021 and focusing on newly defined exploration targets. A first pass AC drilling program was designed to test historic drill results, lithologies and structures. A total of 101 holes for 5,479m was completed during 2021.

Best intercepts from the composite samples include: 4m @ 4.3 g/t Au from a 4m composite in DBAAC0069 within 10m @ 2.1 g/t Au. 4m @ 1.52 g/t Au from 31m, including 1m @ 4.05 g/t Au at 31m in DBAAC099. Best intercepts from 1m re-splits include: 11m @1.3 g/t Au from 40m, including 3m @ 3.33 g/t Au from 40m, including 1m @ 7.16 g/t Au at 40m in DBAAC069.

7m @1.17 g/t Au from 40m, including 1m @6.33 g/t Au at 40m in DBAAC039. Results were generally from the supergene zones with >24 of the holes intersecting greater than 0.1 g/t Au, indicating a broad gold system is present. Initial interpretation of results from Zuleika Gold's AC drilling displays the potential for multiple mineralized surfaces coincident with north-northeast trending structures.

A follow-up campaign consisting of 21 AC holes for 1,300m has been designed to confirm and extend the mineralised trend at Breakaway Dam. Additionally, two RC holes for 280m will be drilled underneath hole DBAAC069 to test the continuity of the high-grade gold mineralisation into fresh bedrock. During 2020, the Company announced results from its initial AC drilling at Browns Dam that were designed to test the Company's interpretation of the geophysics which had identified several complex structural zones and potential flexures along the main Zuleika Shear.

Best intercepts within the 4m composite sampling of this program were; 5m of 3.1 g/t Au from 38m including 1m @ 6.60 g/t Au from 42m, 1m @ 5.23 g/t Au from 39m in DBDAC0026 and 2m of 0.85 g/t Au and 4m of 0.68 g/t Au from 51m, including 17m of 0.33 g/t Au from 40m in DBDAC0027. A follow-up drilling campaign at Browns Dam during 2021 included 47 AC holes drilled for 2,979m. This drilling intersected mafic and ultramafic bedrock lithologies as well as quartz veining and alteration.

The results provided best intercepts of: 10m @ 0.39 g/t Au from 36m including 1m @ 1.45 g/t Au in DBDAC058, finishing in the mineralisation. 8m @ 0.47 g/t Au from 36m in DBDAC057, 4m @ 0.50 g/t Au from 36m in DBDAC063, 4m @ 0.61 g/t Au from 44m in DBDAC084. A follow-up campaign will consist of 280m of RC drilling below hole DBAAC0026 to test the continuity of the high-grade gold mineralisation into fresh bedrock.

During the June quarter of 2021, a first pass 28-hole AC drilling program for 725m was completed on the Little T Prospect, located just 4 km northwest of the East Kundana Joint Venture Mining Area. Three traverses across prominent magnetic features were designed to test the bedrock lithology and geochemistry. Best results of the campaign returned 9m @ 0.59 g/t Au from 24m in DKNAC028, finishing in mineralisation.

This intersection is spatially associated with a lithological contact and potential gold bearing fluid conduits between gabbro units to the east and sediments of the Black Flag Beds to the west. Zuleika Gold then completed an orientation soil sampling program on a staggered 80m x 80m grid to further test the lithological contact and also test an area to the north where ineffective historical holes were drilled in the 1980's. Results from this program are expected soon. In late 2021, the Company drilled 10 AC holes for 406m to partially complete a program testing the anomalism identified in DKNAC028.

Drilling encountered locally difficult ground conditions and the program was temporarily suspended. A further 11 holes for 500m will be drilled to complete the planned program. During 2021, an initial 20-hole AC drilling program for 1,133m was completed to test prospective lithologies of the Black Flag Beds along the Carnage Shear, a major structure sub-parallel and contemporaneous with the gold rich Zuleika Shear.

This area has had limited exploration and holes were drilled on an initial wide spacing, attempting to identify lithological boundaries and structures where significant gold mineralizing fluids have passed through. Results show a complex geological regime providing good rheological contrasts and lithostructural positions which will be targeted for further exploration. An encouraging result of 4m @ 0.38g/t Au from 16m in DCNAC007 indicates gold present within the area.

A series of tenements along the Carnage Shear have now been granted and an initial campaign consisting of 44 AC holes for 3,520m has been designed to further test the Carnage Shear corridor. In addition to these planned drill programs, the Company is continuing to assess results and define new targets for drill testing. Other Projects that will be actively explored throughout 2022 include: The Credo Project, following up the RC and AC drilling results from late 2021 with the aim to extend currently defined resources and identify new targets; AC drilling of potential new targets identified from an extensive surface geochemistry undertaken in the Zuleika Project.

Additional geochemistry surveys will continue to be completed throughout the Project in 2022; and An AC drill program to test gold anomalism in surface geochemistry identified at the Goongarrie West Project. In addition to the drilling, Zuleika Gold will continue to systematically carry out soil sample surveys on a number of other tenements in the Company's portfolio using the cutting-edge Ultrafine+ assay technique developed by the CSIRO, which is an excellent tool for defining subtle gold anomalies in soil covered terrain, generating more targets to drill test. Exploration will focus on: advancing existing resources; advancing the data on mineralised zones to move these to resources; identifying additional mineralisation and extensions and significant gold systems; and deploying reconnaissance exploration techniques to define new targets in untested tenements.

Zuleika Gold's project area is extensive and contains several major structural zones and secondary structures off these zones that are considered to have high potential for hosting economic mineralisation. Zuleika Gold is working systematically to evaluate the entire project area in the most cost-effective manner. Zuleika Gold's portfolio consists of prospects with known high-grade mineralisation through to geophysical target areas with no effective past exploration.

The programs currently underway include: the collection of UltrafineTM soils across areas of cover to identify the next generation of targets; bedrock AC drilling of identified structural or geochemical targets; RC target drilling following up bedrock anomalism and high-grade AC results; and RC drilling to test zones within and adjacent to the known resources at Credo and other targets within the broader Project.