Pacgold Limited provided an update of drilling assay results and IP geophysics data from the Southern Target, on the Company's Alice River Gold Project, 300km northwest of Cairns, North Queensland. The Southern Target is located 2km south of the Central Target with shallow historical drilling (average hole depth 39m) defining a broad gold system extending over an interpreted strike in excess of 1.8km and closely associated with IP geophysics (resistivity low) reflecting the system's alteration and mineralisation character. IP geophysics completed in Fourth Quarter 2022 has extended the resistivity low `corridor' at the Southern Target an additional 2km to the southeast (below shallow sand cover), now defining a compelling target which extends over greater than 3.8km.

Historical drilling over the northern half (1.8km) of the resistivity low has defined several shallow coherent gold zones at the Southern Target. These are interpreted to represent the upper haloes above potential high-grade gold shoots which occur in a similar geological and structural setting to the shoots discovered by Pacgold on the Central Target (confirmed from latest diamond drilling ­ refer below). The results of the IP geophysics survey provide enormous potential to expand the Southern Target which already is recognised as the largest shallow gold system on the Alice River gold project.

Diamond drilling was completed on the Southern Target in Fourth Quarter 2022 with an initial two holes completed for 407m. Results provide strong encouragement for the definition of a second high grade gold system on the project located south of the Central Target (F1a zone). Both holes intersected significant widths of quartz veining and breccia, representing the historic Peninsula King ­ Big Blow lodes, along with several other mineralised subsidiary quartz veins which were mined on surface using small-scale methods in the early 1900's. As reported previously, visible gold was noted in drillhole PKDH002 in one of the main lodes.

Assay results include: PKDH001: 10.4m @ 1.9g/t Au from 33.6m: incl. 4.4m @ 3.3g/t Au from 33.6m; incl. 1m @ 11.2g/t Au from 35m.

3m @ 3.1g/t Au from 68m. PKDH002: 1m @ 4.4g/t Au from 32m; 15m @ 2.0g/t Au from 64m: incl. 3m @ 6.9g/t Au from 66.8m.

Discussion and Next Steps: The historical exploration of the Southern Target has been undertaken on the northern half of the 3.8km long IP resistivity low with wide-spaced shallow RAB and RC drilling (average downhole depth 39m) during the late 1980s. This drilling intersected multiple gold mineralised zones of quartz veining which vary in estimated true width from 3m to 20m wide over a strike length >1.8km. The initial two diamond holes drilled by Pacgold in late 2022 investigated the system at a vertical depth of 40m to 60m, confirming strong geological similarities with the upper levels of the Central Target gold system, above the high-grade gold shoots.

The next phase of drilling on the Southern Target will focus on several priority targets where it is interpreted that converging mineralised vein corridors intersect over 1.8km of strike, representing potential high-grade gold shoots (>100m below surface), similar to the Central Target. The regional structural setting of the Southern Target is particularly compelling, being centred on a major intersection between the NNW-trending Alice River fault zone and a regional WNW-trending structure, and is reflected in the IP geophysics as a resistivity low interpreted to be associated with several dilation zones considered to be highly favorable for development of large gold systems containing high-grade gold. The geophysics and drilling results reported here for the Southern Target provide support that the gold system has the potential to be significantly larger than that which has been tested by historical drilling over 30 years ago.

Exploration by Pacgold represents the first modern exploration on the Southern Target with latest IP geophysics indicating potential to double the scale of the gold system to over 3.8km of strike, at least 50% of which is concealed by shallow sand cover and not previously drilled. Several priority targets have been identified which are interpreted to represent the upper portions of high-grade gold shoots (in a similar structural setting to high-grade shoots discovered at the Central Target). Drilling is planned in second quarter, 2023 to target these zones at a depth of greater than 100m below surface, and additional IP geophysics is planned to continue to map the prospect Alice River fault zone (defined as a resistivity low) further south.

A summary of historical and Pacgold drilling results is shown on Figure 2 (long section) and Figure 4 (Plan). Processing and interpretation continue for three other IP geophysical surveys covering priority regional targets with historical gold mineralisation intersected in drilling, including Northern Target, Posie prospect, and White Lion prospect. This data will be released once processing and interpretation is completed.

Drilling on site has paused for the wet season and is expected to recommence in late March 2023.