Calidus Resources : to commence drill testing greenfields targets

onlyABOUT CALIDUS RESOURCES Ca idus Resources is an ASX listed gold compa y that is developing the 1.5Moz Warrawoona Gold Project in the East Pilbara district of Western Australia.

DIRECTORS AND MANAGEMENT

Mr Mark Connelly useNON-EXECUTIVECHAIRMAN

Mr David Reeves

MANAGING DIRECTOR

Mr Keith Coughlan

NON-EXECUTIVE DIRECTOR

Mr John Ciganek

NON-EXECUTIVE DIRECTOR

personalMr Paul Brennan

PROJECT DEVELOPMENT

Mr Rich rd Hill

CHIEF FINANCIAL OFFICER

Ms Julia Beckett

COMPANY SECRETARY

calidus.com.au

ForASX : CAI

[e-mail]

Suite 12, 11 Ventnor Ave

West Perth WA 6005

AUSTRALIA

1 December 2021

Warrawoona Gold Project, Pilbara, WA

Calidus to commence drill testing priority greenfields gold targets

RC program will test multiple high priority gold targets at

Warrawoona and nearby Blue Spec deposit

HIGHLIGHTS

• RC drilling will test greenfields, shear-hosted gold targets at Warrawoona and nearby Blue Spec deposit
• This includes testing high-grade gold in quartz reefs at Marble Bar
• The drilling will also determine the potential for shallow gold mineralisation at Blue Spec East
• Results from a stream sediment sampling program over part of the Blue Spec Project expected shortly
• First production at Warrawoona on track for June quarter next year; Warrawoona set for initial production of ~90,000oz pa1
• Definitive Feasibility Study well advanced at Blue Spec, which is aimed at increasing Warrawoona production rate to ~130,000oz pa1

Calidus Resources (Calidus or the Company) (ASX:CAI) is pleased to announce that it will imminently commence several programs of RC drilling as part of the Company's strategy to grow the Warrawoona Gold Project in WA's Pilbara.

At the Blue Spec Project, Government gravity data and multi-client aeromagnetic data have been reprocessed and interpreted by Southern Geoscience Consultants (SGC). RC drilling will target a newly identified zone of carbonate-sericite alteration and quartz- ankerite±pyrite veins south of the Blue Spec shear.

At the Company's flagship Warrawoona Gold Project, RC drilling will target a high-grade quartz reef at Marble Bar, which was the focus of historic mining, and carbonate- sericite alteration with quartz-ankerite±pyrite veins west of the Klondyke deposit.

Figure 1. Planned RC drilling at the Brockman-Hayprospect west of Klondyke.

Calidus Managing Director Dave Reeves said:

"While construction continues to advance at a rapid rate towards first gold pour in Q2 2022, grassroots exploration has continued across the Company's tenement package.

"Geological mapping and re-interpretation of geophysical data over the Blue Spec Project has provided a better onlyunderstanding of the controls on mineralisation and is helping to focus the search area for new deposits. A series of RC holes will also test depth extensions to an outcropping quartz reef at Marble Bar, which has never been tested below the

existing shallow workings, and a greenfields target at Brockman-Hay only 8km west of Klondyke."

Warrawoona Gold Project

At the Warrawoona Gold Project, strong progress continues to be made on construction ahead of mill commissioning2. About 8km west of the Klondyke deposit, a zone of shearing (Figure 1), accompanied by carbonate and variable sericite useand fuchsite alteration, and quartz-ankerite veins with goethite after pyrite in wall rocks and veins was mapped. The zone is up to 50m wide and was traced for nearly 4km along strike. In 2002, five short RC holes were drilled beneath mall prospectors' pits and into a zone of carbonate alteration by Image Resources3. The best result was 0.14 g/t Au over 4m from 36m in hole CNERB-03. However, the holes were probably too short to test the main part of the shear and strong water flows noted by Image Resources may have compromised the integrity of the samples. Thirteen RC holes

are planned to test the shear along its strike length. personalFor

The Warrawoona Gold Project includes E45/5172, a tenement that encompasses the northern part of the historic Marble Bar goldfield (Figure 2) immediately north of the town of Marble Bar. This field produced nearly 1,300kg of gold until about 1950, mainly from the Homeward Bound and Stray Shot group of mines4. Mineralisation is hosted in a quartz reef that strikes north to northwest and dips at 10° to 20° to the west.

Figure 2: Map of E45/5172 showing rock-chipresults and the location of historic and planned RC holes.

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personalForIn 1982, Consolidated Exploration Ltd drilled a series of very shallow RC holes adjacent to the Marble Bar quartz reef, five of which were located on E45/5172 in the current area of interest5. Several of the collars were located in the field; the details of the five holes and significant intercepts are shown in Table 2. Two of the holes drilled near the Nabob workings returned 3m @ 3.07 g/t Au from 17m and 1m @ 4.33 g/t Au from 19m.

In 1997, Britannia Gold NL drilled 6 shallow RC holes (BS01-BS06), the deepest of which was only 42m, close to the reef6 (Figure 2). These holes are located on a Mining Lease excised from E45/5172. Only 4m composites were assayed, but the best results were 8m @ 4.45g/t Au from 16m in hole BS04 and 4m @ 4.43g/t Au from 16m in hole BS03 (Table 3).

Mapping along the northern end of the workings shows that the reef has an envelope of carbonate and weak sericite alteration. No deeper holes have been drilled to test the depth extent of the quartz reef, which remains open down dip. A small RC program has been designed to test the potential for mineralisation in the quartz reef over 350m of strike length and down dip (Figure 2).

Figure 3: The Blue Spec Project showing the location of stream sediment samples collected on E46/1026.

Blue Spec Project

The Blue Spec Project comprises two granted Mining Leases (M46/244 and M46/115), two granted Exploration Licences (E46/1026 and E46/1035), and one Prospecting Licence (P46/1972) under application. Calidus recently reported assays from the completed Definitive Feasibility Study (DFS) drilling program at the Blue Spec Project7 about 15km ENE of Nullagine, in WA's Pilbara region. The Company is in the process of earning into an Exploration Licence, E46/10268. onlyuse

personalE46/1026 has seen no modern exploration; there are no historic stream sediment samples, soil samples or drill holes located on the tenement. To most efficiently and cost effectively narrow down the search area for gold deposits, a stream sediment sampling program was designed with 76 sites selected (Figure 3). XM Logistics carried out the program in July and samples were sent to the laboratory shortly afterwards. Considerable delays have been experienced with the laboratory, but assay results are expected very shortly.

Multi-client aeromagnetic data and government gravity data were processed by SGC, who provided Calidus with a regional structural interpretation of the Blue Spec Project area (Figure 4). The data shows that the Blue Spec Fault Zone is coincident with an E-W gravity ridge that extends to the west onto E46/1026. The gravity data maps the deep architecture of the Mosquito Creek Basin, although the precise cause of the anomaly is unclear: however, the

Forcoincidence of gold deposits with the high-density blocks suggests it has implications for gold prospectivity.

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Figure 4: Major structures (black lines), Calidus tenements (dark red outlines), and gold deposits overlain on the

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east-shaded 1VD gravity image. Mapped density blocks are shown by the stippled polygons.

Detailed structural mapping has begun around the Blue Spec pit to better understand the key factors in localising gold mineralisation along the Blue Spec Fault Zone. The exploration team has also carried out structural logging of core from the DFS drilling program at Blue Spec. Multi-element geochemistry and hyperspectral data are being collected on the

personalcore. These findings will be important for targeting more favourable structural zones on E46/1026 and in determining the best geophysical techniques to be employed in the search for blind deposits.

About 300m south of the Blue Spec Fault Zone, an ENE-striking zone of quartz-ankerite±pyrite veining with carbonate- sericite alteration has been identified over about 450m of strike length (Figure 5). The zone will be tested with five shallow RC holes. At Blue Spec East nearby, a program of 14 RC holes will be undertaken to test the potential for shallow mineralisation amenable to open pit mining (Figure 5).

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Figure 5. Map of planned RC holes in the Blue Spec area (M46/115).