First Au : FAU Enters Option to Acquire up to 100% of Mt Turner Project

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First Au Limited

(ASX: FAU)

Date: 11 January 2022

FAU Enters Option to Acquire up to 100% of Mt Turner Copper-

Molybdenum Project in Queensland

Highlights

• The Mt Turner Project has the potential to be a large scale (>6km diameter) polymetallic hydrothermal mineralised deposit, a size often seen with world-class porphyry's
• FAU will commence a 60-day due diligence period to examine the project in detail
• FAU can earn a 51% interested in the project through a farm-in arrangement by way of $2,500,000 expenditure. FAU will have the option to acquire the remaining 49%

First Au Limited (ASX: FAU) ("FAU" or "the Company") is pleased to announce that it has entered a binding terms sheet ("Terms Sheet") with Essex Minerals Inc, a British Columbia incorporated minerals explorer listed on the TSX Venture Exchange (TSXV:ESX) ("ESX") for the option to earn an initial 51% interest and acquire up to a 100% interest in the Exploration Permits 27170 and 27525 (collectively the "Mt Turner Project" or "the Tenements") located in Queensland by way of farm-in and a later potential acquisition of outstanding interests.

The Mt Turner project provides the opportunity for a strategic acquisition that would complement FAU's existing copper prospects of Dogwood, Victoria and Mabel Creek, South Australia. Copper is expected to play a critical role in the electrification of the global economy and the transition to green energy. Independent reports indicate the worldwide demand for copper for transitioning to green energy alone will increase from under 1Mt in 2020 to be approx. 5.4Mt by 2030 (16% of total global copper demand)1.

The Mt Turner project presents FAU the opportunity to explore for a world-class porphyry copper- molybdenum deposit with significant scale (>6km diameter) that has the potential to deliver value for the Company.

A summary of the structure of the transaction is as follows:

1. After satisfactory completion by FAU of a 60-day period of due diligence investigation (and satisfaction of other conditions), ESX grants FAU an option which if exercised would commence the farm-in process. FAU will subject to the option proceeding pay ESX an option fee of an aggregate of 5,000,000 ordinary shares and 5,000,000 options each to acquire one ordinary share of FAU for an exercise price of 3 cents and expiring 2 years from issue. If issued, the shares and options forming the option fee will be issued under the placement capacity of FAU.
2. The option will have a term of 220-days. During the term of the option FAU will provide funding for an Induced Polarisation survey (IP survey) and associated exploration program for the purpose of identifying drill targets, the program is expected to cost $500,000.

1 Goldman Sachs Commodities Research, Green Metals: Copper is the new oil, 13 April 2021

First Au Limited ACN 000 332 918

Registered Office: Level 1 / 123 Whitehorse Road, Balwyn Vic. 3103 Australia. Telephone [phone]

Facsimile 03 9817 0799 Website: www.firstau.comEmail: [e-mail]

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1. If FAU elects the exercise the option, it will make a payment of 10,000,000 FAU ordinary shares to ESX under the placement capacity available to FAU at the time of issue. Once the option has been exercised, under the farm-in arrangement, FAU will be required to spend a minimum of $2,000,000 within 2-years to earn a 51% interest in the Tenements.
2. Subject to earning the 51% interest, FAU will have the right (but not the obligation) to acquire the outstanding 49% interest in the Mt Turner project for consideration as described in Annexure A.

A comprehensive summary of the material provisions of the Terms Sheet is set out in Annexure A.

Project Summary

The Mt Turner Project consists of two granted Exploration Permits covering ~ 100 km2 in area and located 380km SW of Cairns and 10km W of Georgetown, in northern Queensland (Figure 1 and 2). The area can be accessed from the all-weather Gulf Development Road. The project targets a large copper-molybdenum porphyry system at Mt Turner and epithermal gold-silver mineralisation along the Drummer Fault System, with a strike length of 14km.

Mt Turner was first identified through fieldwork by the Bureau of Mineral Resources (now Geoscience Australia) and Geological Survey of Queensland in 19752, as showing large scale (> 6km diameter) polymetallic hydrothermal mineralisation and associated alteration footprint, at a size often seen from world-class porphyry deposits. However, historic exploration since this government work has been limited, and minimal drilling has poorly tested the target area.

Historic mining has occurred along the Drummer Fault zone, with several open pits evident, providing good exposure of the oxidised mineralised vein system.

Geology

The Mt Turner Project is in the western portion of the Georgetown Inlier, which makes up most of the Etheridge Province. It consists of metamorphosed and deformed sedimentary and volcanic rocks of Palaeo- to Mesoproterozoic age, intruded by Mesoproterozoic granites. The Proterozoic rocks have been later intruded by Siluro-Devonian age granitic rocks during the Tabberabberan cycle of the Tasman Orogen (ca 430-380 Ma). The Georgetown Inlier subsequently experienced a period of felsic intrusion and accompanied sub-aerial volcanism during the Carboniferous to Permian period (ca 350- 230 Ma), associated with extension and rifting that developed during the Hunter-Bowen cycle of the Tasman Orogeny. This magmatism consisting of widespread and voluminous extrusive and intrusive igneous rocks, producing several large volcanic subsidence structures. This magmatic event was responsible for the 5 million oz Kidson gold deposit, 70km SE of Mt Turner.

2 Baker, E.M., and Horton, D.J., 1982, Geological environment of copper-molybdenum mineralization at Mount Turner, North Queensland: Geological Survey of Queensland Publication 379, p. 30-77.

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Figure 1. Location of Mt Turner Project, in Northern Queensland

The Permo-Carboniferous Mt Turner intrusive complex, which is centred within the property, consists of multiple phases of rhyolite to micro-granodiorite dykes, stocks and associated breccias, hosted by Meso-Proterozoic Mt Turner Granite and metasediments of the Palaeo-Proterozoic Lane Creek Formation. The overlying subaerial volcanics are postulated to have preserved the porphyry-style mineralisation.

Figure 2. Tenement plan and geology of Mt Turner Project

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In addition, a strongly developed, east west structure ~ 19 km long, known as the Drummer fault, cuts across the northern part of the project area. The structure is mineralized in gold and silver within quartz veins and silica flooded shears zones at the contact of a quartz mica schist and diorite intrusive. This structure postdates the Meso Proterozoic Brandy Hot Granodiorite and may have reflected the reactivation during the Carboniferous and Permian events. Mineralisation appears strongly influenced by the Mt Turner multiphase intrusive porphyry, which is only 1.4 km to the south.

The FAU geological team will now examine the Mt Turner project in more detail, as part of the due diligence period prior to entering into the option agreement.

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Authorised by:

Bryan Frost

Executive Chairman, Managing Director

About First Au: First Au is an advanced gold and base metals exploration company listed on the

Australian Securities Exchange (ASX: FAU) and is trading on the OTCQB market in the USA (OTCQB: FRSAF) and is pursuing a well-funded and aggressive exploration program at its 100% owned Gimlet Gold project near Kalgoorlie and Victorian Goldfields Project in East Gippsland.

Competent Person's Statement

The information in this announcement that relates to geological observations is based on information compiled by Dr Gavin England, a Competent Person who is a member of the Australian Institute of Mining and Metallurgy and the Australian Institute of Geosciences. Dr England is a consultant to First Au Limited ("FAU"). Dr England has also been appointed to the board of directors of FAU as Technical Director. Dr England has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity undertaken to qualify as a Competent Person as defined in the 2012 Edition of the Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Dr England has consented to the inclusion in this Public Report of the matters based on his information in the form and context in which it appears.

Enquiries in relation to this announcement please contact:

Ryan Skeen	[e-mail]	[phone]
Bryan Frost	[e-mail]	[phone]

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