Australian Gold and Copper : Boxdale Gold Target Review Highlights and Drilling Underway

15 December 2021

Australian Gold and Copper Ltd

ACN 633 936 526

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Boxdale Gold Target Review Highlights and

Drilling Underway

Boxdale Target (GOLD)

• Drilling for gold at Boxdale is underway along 4km gold-arsenic trend
• Fifteen RC holes planned for 1,500m targeting three large gold targets
• High grades in historic RC drilling, up to 9.55g/t over 1m from drilling in 2011
• Historic float sampling to 10.2 g/t gold and strong gold-arsenic in soils
• Historic data review and new soils increases target definition
• Ground magnetics underway for targeting extensions to mineralised structures

Australian Gold and Copper Ltd ('AGC, the 'Company') is pleased to provide an update on the 15km long, Boxdale-Carlisle Reefs gold targets at the Moorefield Project in central NSW. There are significant gold intercepts at both the North-western (Boxdale) and Southeastern (Carlisle Reefs) ends of the of the 15km trend.

RC drilling and a ground magnetics survey are now well underway after a thorough review of historic data has defined encouraging drill targets.

Boxdale first pass drill intercepts by global miner, Goldfields Ltd, in 2013 reported (ASX:AGC IPO Prospectus 18 Nov 2020):

• 19m @ 1.28g/t gold from 114m (BDRC001), including
• • 4m at 4.3g/t gold from 120m, including
  • • 1m at 9.55g/t gold from 123m
  • 2m at 1.9g/t gold from 130m
• 2m at 1.2g/t gold from 32m (BDRC003)
• 3m at 1.0g/t gold from 59m including
• • 1m at 2.2g/t gold from 60m
• 15m @ 1.00g/t gold from 85m, including
• • 6m at 2.1g/t gold from 92m
• 1m at 3.3g/t gold from 68m (BX-3)

Carlisle Reefs drill intercepts by Magmatic Resources Ltd (ASX:MAG), in 2017, reported (ASX:AGC IPO Prospectus 18 Nov 2020):

• 36m at 1.21g/t Au from 81m (MFRC017)
• 30m at 1.60 g/t Au from 80m (MFRC013)

The style of gold deposits being explored are Orogenic gold deposits whereby gold has a strong correlation with arsenic and the gold mineralisation is hosted in brittle fractures in

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the rock. The fractures are cemented with quartz/carbonate and sulphides such as pyrite and arsenopyrite. This cementing process creates mineralised veins which host gold.

Such deposits include the World-class, multimillion ounce Victorian gold deposits, the biggest being Bendigo and Fosterville (Kirkland Lake Gold).

Figure 1: The +15km prospective trend from Boxdale to Carlisle Reefs.

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Figure 2: The Boxdale area showing prospective areas and the locations of this programs RC drill holes.

The data review included reviewing the historic soil and shallow auger sampling and RC drilling by previous explorers, Goldfields Ltd and Magmatic Resources Ltd. Field work completed by AGC as QAQC for this review was field mapping, transport cover and drainage mapping to understand where soil sampling is ineffective, relogging of Goldfield's RC chips and our own soil sampling (pXRF) to tighten the drill targets. For drill targeting, a higher weighting has been placed on the soil sampling over the auger sampling (Figure 2) due to the tighter sample spacing of the soils and repeatability of the historic soils to AGC's soil sampling.

The three targets being drilled in this round of drilling are Anomaly 1 to Anomaly 3.

Boxdale Anomaly 1

Anomaly 1 is 500m in length and defined by ten drill holes, returning strong gold grades up to 9.55g/t over 1m. The target has high levels of arsenic in soil and in auger sampling. The anomaly was first drill tested in 1972 as oxide copper minerals were noticed in a historic mine working. The best drilling was produced by mining giant, Goldfields Ltd with four RC holes ranging to 200m in depth. Intercepts include (ASX:AGC IPO Prospectus 18 Nov 2020):

• 19m @ 1.28g/t gold from 114m (BDRC001), including
• • 4m at 4.3g/t gold from 120m, including
  • • 1m at 9.55g/t gold from 123m
  • 2m at 1.9g/t gold from 130m

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• 2m at 1.2g/t gold from 32m (BDRC003)
• 3m at 1.0g/t gold from 59m including
• • 1m at 2.2g/t gold from 60m
• 15m @ 1.00g/t gold from 85m, including
• • 6m at 2.1g/t gold from 92m
• 1m at 3.3g/t gold from 68m (BX-3)

Boxdale Anomaly 2

Anomaly 2 is 350m in length although has the potential to join with Anomaly 1 given the auger sampling results under transported cover (Figure 2). Anomaly 2 boasts Boxdale's highest gold in rock float samples, 8.3g/t and 10.2g/t gold (ASX:AGC IPO Prospectus 18 Nov 2020). These provide significant encouragement for drill testing. Only one historic RC hole was drilled here by Goldfields Ltd which did intercept low grades of gold, max 0.54g/t gold (BDRC005). Given the size and tenor of the surface geochemistry, follow up drilling is warranted.

Boxdale Anomaly 3

Anomaly 3 is now 400m long and has no previous RC drilling. Elevated gold and arsenic auger sampling have now been infilled by soil sampling (pXRF) by AGC geologists which has greatly increased the confidence of the target, its direction and lengthened its size. Anomaly 3 was originally only a two-point auger anomaly.

Figure 3: RC drill rig and AGC field crew at Anomaly 3 Boxdale.

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Drilling prioritised Anomaly 2 and 3 due to firmer track access from the wet weather and should be completed before the Christmas break. Anomaly 1 and Carlisle Reefs are scheduled to be drilled in January. Drill pads at Carlisle Reefs have already been prepared ready for a quick start in 2022.

Figure 4: Rock from Anomaly 3 showing mineralised arsenic veins.

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