Labyrinth Resources : Continued Mineralised Intercepts Across Multiple Gold Lodes

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ASX ANNOUNCEMENT

1 June 2022

Labyrinth Gold Project, Canada

Maiden Underground Drilling Program at Labyrinth Continues to Deliver Mineralised Intercepts across Multiple Lodes

Maiden JORC Resource on track for September quarter

Key Points

• Maiden underground exploration program at the flagship Labyrinth Gold Project in Quebec approaching completion with over 4,390m of diamond drilling completed
• Assays are pending for 8 holes, with 6 expected to be received in the next two weeks and the final hole in the initial program underway
• Visual logging of core indicating successful intercepts of multiple modelled gold lodes within the Labyrinth deposit
• Upon completion of the underground program, surface drilling to commence in late June targeting significant mineralisation extensions to depths of up to 400m below current known resource
• Discussions advanced with independent geological consultants and metallurgical test-work commenced to support compilation of maiden JORC resource, expected in the September quarter

Figure 1 - Core tray containing visually interpreted Boucher intercept from 310m - 326m in LABU-22-14

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Labyrinth Resources (ASX: LRL) ('Labyrinth' or 'the Company') is pleased to advise that the maiden underground diamond drilling program at its Labyrinth Gold Project in Canada continues to return highly encouraging mineralised intercepts of modelled targets based on visual inspection of the core.

Labyrinth Chief Executive Matt Nixon said: "We are extremely pleased with the progress at Labyrinth as we continue to intercept mineralisation across multiple historically modelled lodes through the first genuine exploration conducted in over ten years.

"The fact that we have a readily accessible underground mine provides a real point of difference to our exploration focus in regards to interpretation and comprehension of the mineralisation that has historically been mined across four levels down to 130m below surface.

"The initial underground drilling program has delivered great results in support of establishing a significant maiden JORC resource later this year and we now immediately turn our attention to the commencement of a surface diamond drilling campaign.

"The surface exploration will target a genuine step change in the scale of this deposit, drilling holes up to 400m deeper than the current known resource and seeking to unlock the growth potential of the substantial 1.4km of currently modelled strike".

Underground Diamond Drilling

The maiden underground diamond drilling program at Labyrinth Gold Project consists of ~5,000m across 17 holes targeting the known resource to enable conversion of the NI43-101 Resource compiled in 2010 to JORC classification. The drilling has progressed well since commencing in mid-February, with sixteen holes now completed for 4,389.5m and producing successful intercepts of multiple modelled gold lodes, as well as indicating potential to immediately extend the strike of the McDowell, Talus and Front West lodes.

The resulting core has presented strongly sheared and silicified packages with multiple stages of veining evident, with both discrete veining with fine pyrite and wider pervasive mineralisation containing prevalent sulphides at the margins, particularly in Boucher which has produced a significant visual interval interpretation of 16m in LABU- 22-14.

Surface Diamond Drilling

Preparations are well advanced for the commencement of a surface diamond drilling campaign immediately following completion of the underground program. The program will consist of ~3,000m across 5 holes covering over 1km in strike of the Labyrinth gold deposit and will be targeting the extension of the known resource to the significant depth of ~700m below surface.

The holes will drill through extension targets of all five existing lodes, as well as identify possible unmodelled repeat gold bearing structures, with target depths potentially providing resource extension of between 250m (Boucher) and 400m (McDowell & Talus) as indicated in Figure 2.

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Figure 2 Current planned design of surface exploration drilling targeting beneath known gold resource

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This announcement has been authorised and approved for release by the Board.

Investor Enquiries	Media Enquiries
Matt Nixon	Paul Armstrong
Chief Executive Officer	Read Corporate
[e-mail]	[e-mail]

Forward Looking Information

This announcement contains forward-looking information about the Company and its operations. In certain cases, forward-looking information may be identified by such terms as "anticipates", "believes", "should", "could", "estimates", "target", "likely", "plan", "expects", "may", "intend", "shall", "will", or "would". These statements are based on information currently available to the Company and the Company provides no assurance that actual results will meet management's expectations. Forward-looking statements are subject to risk factors associated with the Company's business, many of which are beyond the control of the Company. It is believed that the expectations reflected in these statements are reasonable but they may be affected by a variety of variables and changes in underlying assumptions which could cause actual results or trends to differ materially from those expressed or implied in such statements. There can be no assurance that actual outcomes will not differ materially from these statements.

Competent Persons Statement

The information in this announcement that relates to exploration results for the Labyrinth Gold Project is based on information compiled by Mr Andrew Chirnside, who is an employee of Labyrinth Resources Limited. Mr Chirnside is a professional geoscientist and Member of the Australian Institute of Mining and Metallurgy and has sufficient experience relevant to the style of mineralisation and type of deposit under consideration, and to the activity which has been undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Chirnside consents to the inclusion in this announcement of the matters based on this information in the form and context in which it appears.

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Appendix One - Interpreted Visible Boucher Intercept of LABU-22-14

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Hole

Diameter

Mine

Mine

Elevation

Azimuth

Dip

Length

ID

Easting

Northing

(m)

LABU-

BQ

6184.0

2624.7

9910

305.0

-65

357

22-14

Hole ID

From

Interval

Description

use

(m)

(m)

LABU-

299.7

340.45

BOUCHER

22-14

Shear zone with deformed rock and 5-10%quartz-calcite tension

veinlets, variable % of yellow leucoxene. Sulphides in traces (~1%)

with limited segments with 0.5% py as stringers of really fine xls.

Chloritized and strong silicification, traces potassic alteration.

ALTERATION

personal

Strongly silicified, locally epidotized, weak potassic alteration,

overall chloritized.

SUB-LITHO

STRUCTURE

@328.65-332m: Brecciated fault with sandy clay gouge, highly

fractured, mineralization in traces up to 1%, py.

MINERALIZATION: ~1% disseminated py.

VEINS: overall 15~20% brecciated quartz with altered host rock

@333.10-.70m: white quartz vein. 60cm@20*CA on proximal

contact, @variable on distal contact.

@339.10-340.45m: white quartz vein. 135cm@~65*CA on proximal

contact, @10~15*CA on distal contact. Mixed with purple-ish

aphanitic mineral (altered magnetite?)

and 2-4% mm automorph py.

For

starting ~327m, more Andesite looking rock with yellow leucoxene,

intervals of brecciated-fault and quartz characterizing the Boucher

Zone.

Distal contact: sheared, with similar but aphanitic rock formation

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