White Dam Exploration Update

For personal use only

WHITE DAM EXPLORATION UPDATE

Mary Mine High Grade Cu-Au and Vertigo Significant Sulphide Au-Cu

HIGHLIGHTS

• Significant mineralised intercepts from remaining results at Vertigo include:
  Hole V21-RC-039: 8 m @ 4.40 g/t Au & 0.83% Cu from 67 m,
  Incl. 4 m @ 7.24 g/t Au and 1.11 % Cu from 70 m
  Hole V21-RC-043: 11 m @ 2.07 g/t Au & 0.39% Cu from 47 m,
  Incl. 3 m @ 5.76 g/t Au & 0.72% Cu from 49 m
  Hole V21-RC-041: 4 m @ 2.66 g/t Au & 0.88% Cu from 60 m
  Hole V21-RC-008: 14 m @ 1.21 g/t Au & 0.30% Cu from 51 m,
  Incl. 1 m @ 3.45 g/t Au & 0.75% Cu from 51 m
• Demonstrates significant sulphide gold and copper mineralisation around the base of oxidation.
• Drilling results at Vertigo strongly support the objective for a potential cut back for oxide/transitional ore feed to be treated at the White Dam Heap Leaching Operation.
• With receipt of final assays, work has commenced on an updated Mineral Resource Estimate.
• Recent Mary Mine dump samples returned high grades (to 6.4 g/t Au & 13.1% Cu), similar to historic sampling by Aberfoyle 1.
• The Mary lode is interpreted to be open in all directions based on historical drilling by Aberfoyle which reported:

• A follow up RC drilling program is being considered as a next step to test this system with oxide copper/gold mineralisation capable of being treated at White Dam with the SART plant operational.

GBM Managing Director and CEO, Peter Rohner, commented:

"These additional results continue to provide strong encouragement that the Mineral Resource at White Dam can be expanded. The work to update the existing Mineral Resource estimate is now underway. The drilling results also improve our understanding of the significant leachable copper values present which may lead to improvements in the economics of further mining/leaching activities at White Dam."

For personal use only

GBM Resources Limited (ASX: GBZ) (GBM or the Company) is pleased to present the remaining reverse circulation (RC) assay results, including cyanide soluble copper (CuCN) results, from recent drilling within the Vertigo and White Dam North deposits at the White Dam Gold-Copper Project (White Dam) in South Australia.

In addition, recent surface sampling results and a review of historical exploration work at the nearby Mary Mine is also included.

Initial assay results were reported in July (refer ASX:GBZ release 5 July 2021) which indicated potential to add to the oxide/transitional resources at Vertigo, supporting a pit wall cutback and additional ore feed to the operational White Dam heap leach pad.

New results add further support to the pit expansion concept with a number of drill holes returning strong intersections in areas not previously reporting within the existing resource block model. Cyanide soluble copper assays indicate copper mineralisation above or near the base of oxidation will respond well to leaching (e.g. 4 m @ 0.39% Cu in V21-RC-055 returned0.35 % Cu as cyanide soluble) and copper recovery with the operating SART plant at White Dam.

At White Dam North, copper and gold assay results were as expected, with the drill hole program designed to test the fault bounding the mineralisation to the west. Some long, low grade intercepts were returned such as 9 m @ 0.65 g/t Au and 0.12% Cu from 46 m in WDN002. Narrow higher grade intervals are present (>2 g/t Au). Cyanide soluble copper assays are yet to be received for White Dam North drill holes.

Figure 1: Location Map.

For personal use only

RC Drilling Results - Vertigo

The final round of assay results have been received from the remaining 23 holes at Vertigo (drill holes V21-RC-001 to 011 and V21-RC-037 to 056) including a set of cyanide soluble copper samples from intervals selected based on higher grade Au-Cu assays.

A total of 53 RC drill holes (4,041 m) have been drilled by GBM as part of Phase 1 of the planned drilling at White Dam, with 43 RC holes (3,270 m) drilled at Vertigo and 10 holes (771 m) drilled at White Dam North.

The mineralisation at Vertigo has been modelled using straight gold assays with a 0.15 g/t Au cutoff and separately as a gold equivalent using Au and CuCN (where cyanide soluble Cu assays are available) with the following formula;

• AuEq = Au (g/t) + (1.64 x CuCN%). Metal prices current 6/10/2021:

1. $2,414 AUD per ounce Gold

1. $12,774 AUD per tonne Copper

It should be noted that the gold equivalent has been used to guide interpretation only and no gold equivalent results are quoted within this release.

New drilling results from around the base of oxidation continue to demonstrate the gold and copper mineralisation potential and resource upgrade potential at Vertigo.

Significant mineralised intercepts from the recent round of assays include:

• Hole V21-RC-039: 8 m @ 4.40 g/t Au & 0.83% Cu from 67 m, Incl. 4 m @ 7.24 g/t Au and 1.11 % Cu from 70 m
• Hole V21-RC-043: 11 m @ 2.07 g/t Au & 0.39% Cu from 47 m, Incl. 3 m @ 5.76 g/t Au & 0.72% Cu from 49 m
• Hole V21-RC-041: 4 m @ 2.66 g/t Au & 0.88% Cu from 60 m
• Hole V21-RC-008: 14 m @ 1.21 g/t Au & 0.30% Cu from 51 m, Incl. 1 m @ 3.45 g/t Au & 0.75% Cu from 51 m

Employing the Au equivalent (Au + CuCN) mineralisation envelope has enabled generally continuous modelling of mineralisation on and across sections throughout the resource area and in conjunction with additional drilling data may allow numerous gaps in the resource model to be infilled (see Figures 2 and 3).

RC Drilling Results - White Dam North

Assay results from White Dam North (WDN) were generally lower (as expected) when compared to Vertigo. Drilling was focused on the interpreted fault zone targets outside the existing resource areas and while fault or shear zones were intersected, these structural targets were generally not well mineralised.

The best gold intersection from the White Dam North drilling occurred in WDN_002 with 1 m @ 2.22 g/t Au from 50 m, which is part of a broader 9 metre intersection returning 0.65 g/t Au from 46 m. This intersection is associated with a very soft and clay rich intensely chlorite altered biotite gneiss which is interpreted to be within a shear zone (see Figure 5).