Pacgold Limited provided an update on exploration activities, including screen fire assay results, review of structural and mineralisation model and recommencement of drilling at its Alice River Gold Project (`Project') in North Queensland. Significant advances have been made on the Pacgold team's understanding of the structural controls and geological setting of the high-grade gold mineralisation, through detailed structural interpretation of drill core combined with alteration and mineralisation modelling. This has provided an excellent platform for the current drilling programme, targeting the extensions of the high-grade gold system.

Pacgold's wide-spaced drilling of the F1a gold zone in 2021 provided strong indications that the gold grades within the system are increasing with depth. Recent structural modelling and updated geological interpretation supports a continuation of the drilling programme at depth vertically below the open pit, along with an expansion of the drilling to test structural targets on the F1a zone to the north and south. Two of the highest-grade intersections, 6m at 17.5g/t Au (ARDH027) and 17m at 9.3g/t Au (ARDH026), are both open at depth approximately 200m below surface and highlight outstanding potential for the system to continue at depth.

The current drilling programme recommenced in May and two diamond holes (ARDH040 and ARDH041) have been completed. Both drillholes have intersected several zones of quartz veining and alteration corresponding with the planned target zones. Of note, ARDH040 intersected a 30m (downhole width) zone of veining and alteration approximately 400m below surface and 165m below previous drill intersection of 6m at 17.5g/t Au (ARDH027).

This zone represents the deepest intersection of the mineral system to date. Also, ARD041 successfully intersected several zones of veining to the south of previous hole ARDH007 (26m at 3.6g/t Au from 104m incl. 3m at 21.0g/t Au from 126m).

Gold mineralisation within the Project is hosted by the >30km long, NW-trending, Alice River Shear Zone (`ARSZ') encompassing the historical Alice River goldfield. IP geophysics completed by Pacgold along 7km of the ARSZ clearly defines this important structure as a resistivity low which corresponds to zones of intense alteration and veining. A thorough review of the Project by the Pacgold technical team and specialist structural geology, economic geology, and petrology consultants has resulted in a significantly improved understanding of the alteration, mineralisation characteristics and structural controls on the Central Target F1a zone.

This new model has already resulted in the identification of new priority targets along the ARSZ. The geological/technical review established several key features of the F1a zone summarised as follows: Gold mineralisation is hosted by several phases of overprinting quartz veining and hydrothermal breccia within structural zones in two major orientations; The main F1a vein zone is hosted in a N - NNW trending dilatant structure along the eastern margin of the ARSZ and forms the eastern boundary of the IP resistivity low corridor. The F1a zone accommodates early-stage lower grade Au mineralisation hosted in dark grey, sulphidic chalcedonic silica, either as matrix in hydrothermal breccia or veining.

This early vein phase is often overprinted by creamy white, green to orange-pink chalcedonic quartz veins, which are sulphide poor and display moderate levels of gold mineralization; The higher-grade gold mineralisation on the Central Target is localised in hanging wall splay structures in the western section of the F1a zone. These splays are host to dilatant sheeted and stockwork quartz veins that are WNW to NNW trending with moderate to steep SW through vertical to NW dips and are formed as a result of pull-apart and dilation. These veins overprint the early-stage veins described above in the vicinity of the historical AQ open pit, and are characterised as sub-epithermal, white comb-crystalline and drusy quartz veins with weakly developed crustiform textures.

The hanging wall dilatant zones are interpreted to have channelled and focussed the later mineralised hydrothermal fluid which has resulted in the emplacement of the highest-grade gold. Bonanza style gold mineralisation is interpreted to be focussed at the structural intersection of the hanging wall splay veins and the N ­ NNW structure on the eastern margin of the F1a zone; A second N - NNW trending structure (termed the F1b zone) has been interpreted to be located to the west of the hanging wall vein splays, and forms a bounding structure broadly parallel to the F1a zone, coincident with an interpreted structural zone observed in the IP resistivity data. Pacgold conducted screen fire assay on 128 samples of varying grade and from varying quartz vein types from the 2021 drilling programme.

By comparing screen fire assay results to the standard fire assay method used for all gold assaying in 2021, understanding of the possible role of nuggety or coarse gold associated with the gold mineralisation would be increased. Gold results from the screen fire assay compared with the fire assay show no significant variation in gold grades between the two methods. The screen fire assay highlights that while the highest gold grade samples contain coarse gold, they do not appear to be nuggety (or highly variable).

This comparative analysis was completed for Pacgold to determine appropriate gold analysis methods to utilise in future resource modelling, as well as understanding the internal domains and level of gold variability in the drilling to date.