Far East Gold Limited (FEG or the Company) announced that the Phase 1 drill program at the Woyla Project has returned bonanza grade gold and silver assays from three separate holes drilled at the Anak Perak and Rek Rinti vein systems. The Company considers the three holes to be Discovery Holes confirming the potential for high-grade gold and silver resources within three separate quartz vein - breccia zones. Core observations and assays have confirmed the presence of significant grades of gold and silver mineralization over significant widths in both of the vein systems being drilled. The drill program is progressing as planned with the Company aiming to conclude the Phase 1 drill program at Anak Perak and Rek Rinti prospect areas by the end of 2022.

The first 17 holes (APD001 to APD018) of the planned 20-hole Phase 1 diamond drill program have been completed at the Anak Perak Main Zone area for a total drilling of 2,312.2m. The Anak Perak Main zone intersections show consistent zone width along the 700m of strike length investigated and indicate that the zone was the site of repeated and superimposed vein and breccia development. Two holes were drilled on sections 100-150m apart.

The hole pairs were designed to test the zone over a vertical extent of approximately 100-150m. The drilling has confirmed the interpreted nature of the Anak Perak Main Zone with regards to expected zone width, expected vein textures and styles of mineralization and alteration. This includes 110m completed for 2 holes that were partially redrilled to improve recovery in zones of intensely fractured core.

Core recovery for completed holes was over 94%. Hole APD-15 was abandoned due to geotechnical issues with the drill pad and will be redrilled as part of the Phase 2 drill program. Holes APD016 to APD019 are testing the southern extent of the Anak Perak vein system.

Table 1 below lists details for the completed drill holes. The Anak Perak Main Zone was interpreted to have an East dip so the drillholes were positioned to drill to the West to intersect the Anak Perak Main Zone at approximately 50m and 100m depth. The Main Zone was intersected in each of the holes confirming lateral continuity of the vein/breccia system.

The drilled sections indicate that the Main Zone is comprised predominately of quartz stockwork and quartz matrix breccia with discrete narrow zones of massive chalcedonic and crystalline quartz. Vein textures include colloform and crustiform banding and narrow zones of cockade quartz breccia. The core observations infer that brecciation was followed by a period of quartz veining/breccia that formed in open spaces.

The occurrence of sulphide mineralization is manifest predominately as common pyrite with minor chalcopyrite, sphalerite and galena with very minor covellite and chalcocite and possible acanthite associated with emplacement of the quartz veins and cockade breccia. The Main Zone vein-breccia was intersected to a vertical depth of 150m in hole APD014 for which assays have not been received. While generally consistent with other Main Zone intersections the quartz breccia in this hole has an oxidized matrix suggesting increased sulphide content.

The southernmost hole APD016 did not intersect a quartz vein-breccia zone characteristic of the Main Zone as intersected in holes drilled to the north. This suggests that the vein deflection from a north-south trend to southeast as mapped on surface also marks a `pinching' of the Main Zone vein-breccia system. It may also be that the apparent deflection marks the intersection of 2 separate veins.

Future drilling will test this assumption. The target of hole APD016 was a structurally controlled, sulphide-rich quartz breccia that previous surface rock sampling indicated to contain high-grade Au (119 g/t Au), Ag (361 g/t) and significant Cu (3.39%) and Zn (5.16%). Assays are pending.

It is apparent that the process of brecciation and vein development within the Main Zone was multistage reflecting repeated and superimposed hydrothermal activity. In this context it is important to note that the development of these features was not consistent throughout the Main Zone. As such, while the width and general characteristics of the Main Zone is similar from hole to hole, each hole reflects variable intensity of brecciation and development of quartz stockwork veins and also the associated alteration and mineral assemblage.

The volcanic wallrocks also show variable intensity of clay and pyrite (argillic) alteration immediately adjacent to the Main Zone of quartz matrix breccia and quartz veining. One feature that does appear consistent is that the zone hanging wall (uphole) and footwall wall (downhole) contacts with volcanic rock wall rock are marked by fault breccia. The common presence of cavities and vugs in the quartz breccia and veins indicates that open-space infilling was the dominate mechanism of Main Zone development.

This suggests that the Main Zone developed in response to repeated fault activity whereby the host structure was dilated, and hydrothermal fluids emplaced. Understanding the relationship and relative timing of these features will be integral to define what event or combination of events were important for emplacement of gold-silver mineralization in the system. The occurrence of predominately chalcedonic matrix quartz breccia and quartz veins in the northern part of the Main Zone (APD001 to APD007) and the general low-grade gold in assays i consistent with that part of the vein system reflecting a higher level of the mineral system.

This premise will be tested by some deeper drill holes in future drilling. The Company believes that the high-grade assays received from holes APD-08 and APD-11 indicate the southern part of the Anak Perak Main Zone from APD-08 to at least hole APD-16 (approximately 600m distance) was an area of distinct gold-enriched hydrothermal activity and has the potential for significant gold mineralization. In this context the southern part of the vein system also contains less chalcedonic quartz with saccharoidal and more crystalline quartz common.

As such, ongoing detailed core logging will provide the geological context with which to assess the assay results when received for the completed Phase 1 program.