Great Southern Mining : Oversubscribed placement to accelerate exploration programs

For personal use only

ASX ANNOUNCEMENT

13 December 2021

Oversubscribed Placement of $1,600,000 to accelerate

exploration programs in WA and QLD

Highlights:

• Planned share placement oversubscribed with firm commitments to raise A$1.6million (before costs).
• Air Core drilling program underway at Amy Clarke, diamond drilling program commencing at Southern Star.
• Funds to be used to accelerate exploration activities at newly identified conductor target at the East Laverton Nickel Project and fund extensional drilling programs at Southern Star.
• Queensland exploration team has been expanded to fast-track drill target generation at Edinburgh Park for testing in 2022.

Great Southern Mining Limited ("GSN" or "the Company") is pleased to announce a placement to new and existing sophisticated and professional investors to raise $1,600,000 (before costs) at $0.06 per share ("Placement"). Investors in the placement will also receive a 1 for 2 attaching Listed Option (ASX: GSNOA).

The Company has a number of aggressive exploration programs underway at its Western Australian and Queensland projects. Funds raised will be used to expand the drilling programs underway at Southern Star, further exploration work at the East Laverton Nickel Project and continue target generation work at Edinburgh Park in north Queensland.

Shaw and Partners Limited acted as Sole Lead Manager to the Placement which was oversubscribed and strongly supported by new and existing shareholders.

Chief Executive Officer, Sean Gregory, commented:

"Following the highly successful drilling programs at Southern Star and the Duketon Gold Project, the Company is well placed to accelerate exploration activities in the region with an aim to expand its resource base. Drilling is already underway at Amy Clarke with Diamond Drilling commencing at Southern Star.

The funds from this capital raising will provide the Company the opportunity to aggressively undertake extensional drilling at Southern Star, following up the 17m @ 7.0 g/t intercept 200m south of the previously known mineralisation and provide funds to add diamond drilling to explore the recently identified bedrock conductors at the East Laverton Nickel Project".

Suite 4, 213 Balcatta Road,	www.gsml.com.au
Balcatta, WA 6021 Australia
ACN: 148 168 825
T [phone]
ABN: 37 148 168 825
E [e-mail]

For personal use only

Placement Structure

The structure of the Placement is as follows:

• Up to 26.67 million fully paid ordinary shares ("Placement Shares") at A$0.06 per share; plus
• 1 attaching Listed Option (ASX:GSNOA) for every 2 Placement Shares subscribed for, with an exercise price of A$0.05 and an expiry date of 4 September 2022 ("Listed Options").

The Placement Shares and Listed Options will rank equally and carry the same terms as the securities on issue. The Lead Manager for the Placement will receive a fee of 6% of gross proceeds raised.

The Placement Shares will be issued within the Company's existing capacity under Listing Rule 7.1A.

All Listed Options to be issued under the Placement will be issued under Listing Rule 7.1.

The issue price of A$0.06 per share represents a 1.6% discount to the last GSN closing price of A$0.061 and an 6.3% discount to the 15-dayvolume-weighted average price for GSN.

A summary of the exploration programs which are being undertaken over the coming months is below:

East Laverton Nickel Project

The Company recently announced the results of the broad spaced Moving-LoopElectro-Magnetic (MLEM) survey, the first of its kind over the Diorite Hill magmatic complex. The survey covered over 70km2. Refer to ASX announcement on 08/12/21.

The survey was designed and modelled by Bill Amann from leading exploration and geophysical consultants Newexco Exploration Pty Ltd (Newexco), who have been instrumental in the discovery of numerous major nickel sulfide deposits in Western Australia over the last 20 years including Flying Fox, Spotted Quoll and Nova.

The survey returned three bedrock conductors with the largest conductor being 2km x 1km and shown in Figure 1.

The prominent bedrock conductor identified is in close proximity to the edge of the interpreted Diorite Hill magmatic complex, which is a favourable position for massive sulfide accumulation. Regional gravity data clearly highlights the Diorite Hill magmatic complex with the bedrock conductor highlighting the potential for a blind discovery of a nickel deposit.

Funds from the placement are being allocated to conduct a closer spaced Electro-Magnetic (EM) survey designed to further refine the orientation of the newly identified bedrock conductors with drill testing as soon as practical, as recommended by Newexco.

The survey will also extend south to examine if any other conductive sources are present.

Page 2 of 8

For personal use only

Figure 1: Channel 30 linear colour stretch image showing the south-east conductor at station 76 relative to the Diorite Hill magmatic complex (red outline), overlayed with GSWA magnetics and interpreted ultramafic units.

Southern Star Gold Deposit

As announced on 28/10/21, the Company's maiden drill program at Southern Star totalled 4,656m of Reverse Circulation (RC) drilled. The drilling was designed to establish continuity of mineralisation along strike and to define the extent of mineralisation to the north, south and at depth (Refer ASX Announcements 2/8/21, 25/8/21, and 11/10/21).

The program was highly successful and met all objectives with the best intercepts being:

• 68m @ 1.9 g/t Au from 61m incl. 4m @ 15.3 g/t Au from 89m and 5m @ 7.0 g/t Au from 114m in 21SSRC0036; and
• 59m @ 2.1 g/t Au incl. 9m @ 4.5 g/t Au and 16m @ 3.2 g/t Au from 53m in 21SSRC0009.

The drilling was successful in confirming the grade continuity and depth potential of Southern Star. Funds from the placement will be used to undertake an extensive RC program.

The Company also identified a new discovery zone of high-grade gold mineralisation, 200m south of the previously known extent of mineralisation with 17m @ 7.0 g/t Au from 111m incl. 2m @ 56.7g/t Au incl. 1m @ 109.0 g/t Au encountered in hole 21SSRC0039 (Refer Figure 2 and Figure 3).

Page 3 of 8

For personal use only

Figure 2 - Southern Star insert highlighting maximum gold downhole with draped magnetic data (TMI1vd) highlighting

the regional 345° trending stratigraphy that host both Ben Hur and Southern Star deposits.

The high-grade extension interception is positioned on a look-alike magnetic high feature also found at Southern Star with total strike length now in excess of 700m. Drilling at the new discovery zone to date only consists of four new drillholes. Another significant intercept from the recent campaign of 39m

• 0.4 g/t Au from 116m including 1m @ 3.6 g/t Au in SS21RC0023 was encountered. This wide intercept demonstrates that mineralisation is not constrained to the high-grade intercept in SS21RC0039 and indicates a likelihood of the mineralisation to be part of a larger gold system.

Funds from the placement will be allocated to further drilling at the new discovery zone.

Page 4 of 8

For personal use only

Figure 3 - Plan view of drilling results at Southern Star. Only intercepts greater than 40-gram metres are labelled. Refer to ASX announcements 2/2/21, 2/8/21, and 23/8/21.

As announced 13/12/21, Diamond Drilling is also underway at Southern Star. Two 160m deep diamond HQ core (63mm) drill holes are being drilled to build on the geological understanding of the deposit including the orientation of the structures controlling the gold mineralisation.

The first hole will be drilled between two of the thick high-grade RC drill intercepts encountered in the main part of the gold deposit; 59m @ 2.1g/t Au from 53m and 68m @ 1.9g/t Au from 61m (Figure 4, also refer ASX Announcements 2/8/21, 23/8/21, 11/10/21).

The second hole will be drilled in the recent discovery zone highlighted in Figure 3.

The results will be used to refine drill targeting for an RC drilling program planned for Q1 2022.

Page 5 of 8