Black Cat Syndicate Limited provided an update on underground diamond drilling activities along the Gabbro Veins at the Paulsens Gold Operation (Paulsens). HIGHLIGHTS During the December 2022 quarter, 19 diamond drill holes were completed into the Gabbro Veins. Assays have been returned for another 10 holes, meaning results have now been received for the first 14 holes.

Drilling into the Gabbro Veins continues to be highly encouraging with all holes to date intersecting quartz-sulphide (pyrite+/-chalcopyrite+/-galena) veins within altered gabbro, as predicted by the new geology model. Visible gold has also been intersected in several holes. As initially modelled, multiple vein swarms have been intersected with new significant assays including: 0.92m @ 11.10g/t Au from 10.16m and 1.92m @ 5.19g/t Au from 69.04m (22PGRD006).

0.50m @ 47.20g/t Au from 20.80m and 0.30m @ 20.40g/t Au from 38.90m and 2.50m @ 6.55g/t Au from 65.00m (22PGRD011), 1.03m @ 12.50g/t Au from 39.97m and 1.00m @ 13.60g/t Au from 46.57m (22PGRD012). The footwall Gabbro Veins are unmined and located adjacent to, and up to 200m from, the existing decline which was installed to access the Main Lode. The Gabbro Veins occur in the footwall over a 1km strike length and can form as swarms over areas up to 4m wide.

They represent a potential new, high-priority, start-up mining area. The remaining assays for the other 5 holes already completed are expected during January 2023 and similarly contain multiple veins with visible gold logged in 22PGRD001 at approximately 70m depth. Three holes have also been completed on the Paulsens Repeat target with samples in the laboratory and additional drilling planned.

Drilling is continuing, targeting extensions to the Gabbro Veins and the Main Lode and will be ongoing throughout January 2023. An upgrade to the high-grade underground Resource is expected in late January/early February 2023. Large Scale Area, 100% Controlled by Black Cat 530km2 of highly prospective ground is 100% owned and controlled by Black Cat.

Existing Resource of 217koz @ 4.9g/t Au. Background Underground mining at Paulsens produced 907koz @ 7.3g/t Au at an average of 75koz pa. approximately 1Moz endowment including current Resources: Underground 89koz @ 5.9g/t Au; Mt Clement 66koz @ 1.2g/t Au, Belvedere 30koz @ 3.9g/t Au, Electric Dingo 22koz @ 1.3g/t Au and Northern Anticline 24koz @ 1.4g/t Au.

Previous regional exploration largely involved surface activities with numerous gold and base metal anomalies identified but with only limited follow-up. Infrastructure in Place, Ready for a Low-Cost Restart On care and maintenance since 2018. Well maintained, 450ktpa processing facility requiring minimal restart capital.

+110-person camp on site. Mine and advanced Resources on Mining Licences, minimal barriers to restart. Underground mine fully dewatered and ventilated with processing water readily available.

Excellent access with sealed road and gas pipeline within 7kms of site. Significant Opportunities at All Stages - Multi-metal Potential While traditionally a gold region, Paulsens has multi-metal potential with numerous base-metal (Cu, Pb and Zn) targets, Australia's third largest antimony deposit at Mt Clement (along with Cu, Pb and Ag Resource) and thermal coal at Kazput. Paulsens is located in a prospective regional setting for orogenic gold mineralisation and the multi-metal potential remains under-explored.

There are four main prospect areas - the 15km long Paulsens Structural Corridor ("PSC"), the Northern Anticline, Mt Clement and Electric Dingo. The PSC is a complex zone of faults with the main structure through the PSC being the Hardey Fault. All gold mined at the Paulsens underground mine comes from where the Hardey Fault (and related fault splays) cuts through the Paulsens Mine Gabbro.

Finding similar faulted-off gabbros is a priority given the obvious grade and scale potential. Underground drilling in 2023 includes: New mining fronts located close to existing infrastructure being the Gabbro Veins and Apollo with potential for readily accessible ounces; and o Paulsens Repeat located 200m from the decline and representing a large-scale, faulted-off gabbro targeting "another Paulsens". Drilling at Paulsens commenced on 2 November 20221 targeting readily accessible, near-mine growth opportunities.

The Gabbro Veins, one of several targets, are known to be mineralised over a strike length of +1km, broadly parallel to the existing underground infrastructure. Most historic mining (producing 907koz @ 7.3g/t Au) occurred within the Main Lode and the footwall Gabbro Veins present a significant new mining opportunity at Paulsens. The Gabbro Veins are located adjacent to, and up to 200m from, the existing decline and can form as swarms over areas up to 4m wide over the +1km strike length.

Drilling into the Gabbro Veins has been encouraging with 19 holes completed so far, all intersecting quartz-sulphide (pyrite+/-chalcopyrite) veins within altered gabbro as predicted in Black Cat's new geology model. Multiple vein swarms were intersected in each hole and significant results from the latest 10 holes assayed include: 0.92m @ 11.10g/t Au from 10.16m and 0.15m @ 16.90g/t Au from 29.85m and 0.37m @ 8.81g/t Au from 54.82m and 1.92m @ 5.19g/t Au from 69.04m and 0.23m @ 9.83g/t Au from 83.04m and 0.49m @ 5.93g/t Au from 100.12m (22PGRD006) 0.50m @ 47.20g/t Au from 20.80m and 0.30m @ 20.40g/t Au from 38.90m and 2.50m @ 6.55g/t Au from 65.00m (22PGRD011) 1.03m @ 12.50g/t Au from 39.97m and 1.00m @ 13.60g/t Au from 46.57m (22PGRD012) 1.11m @ 8.75g/t Au from 12.06m and 1.94m @ 4.22g/t Au from 35.73m (22PGRD014) These results are consistent with previously reported assays from the first 4 holes, which included 1: 0.93m @ 2.92g/t Au from 19.07m and 1.92m @ 9.30g/t Au from 48.00m (visible gold logged) (22PGRD010) 1.09m @ 3.97g/t Au from 1.06m and 0.67m @ 12.50g/t Au from 29.12m and 0.44m @ 18.10g/t Au from 60.98m (22PGRD016) 0.98m @ 2.85g/t Au from 77.44m and 1.10m @ 4.77g/t Au from 87.95m (22PGRD019) All results are based on fire assays and a photon assay trial is underway. A recent photon re-assay trial at Coyote 2, illustrated that fire assay results may be under-reporting gold grades for coarse-gold, diamond core samples.

Results for the remaining 5 holes, already completed, are expected in January 2023. Geology is encouraging with numerous veins logged and visible gold observed in 22PGRD001 at approximately 70m depth. A further program, with at least 17 new holes, testing both Gabbro Vein targets and traditional Main Lode mineralization is already underway.

This drilling will be ongoing through January and February 2023. An upgrade to the high-grade underground Resource is expected in late January/early February 2023. This upgrade will include a significant reinterpretation of the current Resource based on the new geology model as well as the first 14 holes drilled and assayed by Black Cat.