Prodigy Gold NL : Progress Results for Buccaneer Diamond Drilling

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ASXANNOUNCEMENT/MEDIARELEASE

ASX: PRX

29 November 2021

Progress Results for Buccaneer Diamond Drilling

KEY POINTS

• Buccaneer Resource is 10Mt @ 1.8g/t Au for 585koz above a 1g/t cut off
• Scoping study geotechnical and metallurgical diamond drilling completed to further evaluate a potential low-cost, heap leach processing scenario for the Buccaneer Resource
• Program of 8 holes for 1,419m of diamond drilling completed
• Results returned for the first hole include:

1. 7m @ 1.3g/t Au from 36.5m

1. 4m @ 3.4g/t Au from 48m

1. 13.35m @ 3.9g/t Au from 79.7m including 3.3m @ 13.5g/t Au from 79.7m

1. 12m @ 0.9g/t Au from 97.05m

• 1. 43m of a 120m hole mineralised
• Aircore drilling recently demonstrated potential for resource extension with mineralisation intersected 150m to the south of the resource.
• Unsampled historic diamond core containing visible gold at Golden Hind has been sampled and submitted for assay
• Delays in the laboratory screen fire assays are resulting in delays in reporting of Tregony, Golden Hind, and Buccaneer results.
• Results are reported for Reward and PHD diamond drilling

Prodigy Gold NL (ASX: PRX) ('Prodigy Gold' or the 'Company') is pleased to announce progress results from diamond drilling on its projects in the Northern Territory.

Studies undertaken over the last year have evaluated a heap leach processing scenario for the Buccaneer Deposit. When the type of mineralisation is appropriate, heap leaching is a simple, low- cost process that can result in significant savings in capital expenditure and operating cost, which can significantly improve a project's economics. Deep weathering in the Tanami results in softer weathered rocks, and sulphide is often completely oxidised up to 100m below surface.

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An 8 hole program of geotechnical and metallurgical diamond drilling was completed to provide samples for metallurgical recovery testwork to optimise the crush size for heap leach extraction of the gold.

In addition, results are pending for diamond drilling recently completed at the Tregony Deposit1, with initial observations of drill intersections highlighting several intervals of veining, including one with visible gold.

The Company recently announced the results of data validation at the Tregony Prospect which upgraded the prospectivity of the target. Similar work at Golden Hind has identified veining with visible gold in diamond drill core that had not been sampled previously. Two holes totalling 105m of core have been submitted for assay.

Figure 1 - Northwest - southeast cross section through drillholes BCDD2014 and BCDD2105 in the Buccaneer Deposit

Management Commentary

Prodigy Gold Managing Director, Matt Briggs said: "The Company is advancing mining studies on the 10Mt @ 1.8g/t Au Buccaneer Resource. The recently completed diamond drilling program drilled areas outside the existing resource while upgrading confidence in broadly drilled areas. The first diamond hole includes over 43m of mineralisation in a 120m hole. Mineralisation occurs in several stacked zones in the oxide. Deep weathering to ~80m in hole BCDD2104, and previous recovery testwork over Buccaneer, demonstrate the amenability to heap leach processing.

Additionally, this intersection supports the indicator resource model with mineralisation intersected where predicted.

1 ASX: 15 Nov 2021

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Results in aircore drilling reported in October 2021 demonstrated the potential for additional oxide mineralisation to the south of the current resource.

Significant visible gold has been intersected in several holes. Shortages in fabric to complete screen fire analysis on the holes with visible gold at Tregony, Buccaneer and Golden Hind have unfortunately delayed the reporting of results of drilling and sampling at these projects. The laboratory has advised the response and recovery from the hacking of their systems has compounded delays."

Buccaneer Scoping Study Continues

The first of the results reported are from one of the metallurgical holes. Results for BCDD2104 include:

• 7m @ 1.3g/t Au from 36.5m
• 4m @ 3.4g/t Au from 48m
• 13.35m @ 3.9g/t Au from 79.7m including 3.3m @ 13.5g/t Au from 79.7m
• 12m @ 0.9g/t Au from 97.05m

Three zones of mineralisation are observed in the oxide. As seen elsewhere in the resource this occur at the lower upper saprolite transition and saprock/fresh rock transition. The intersection in the hole provides support for the indicator model previously reported with good spatial correlation of the mineralisation in drilling to that predicted in the resource estimate.

Figure 2 - Diamond drillhole collar locations at the Buccaneer Prospect

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Upon the return of all results the remaining core will be used to generate composites for crush size recovery testwork, and column leach testwork. Crush size testwork will determine the optimum size to crush the material to, trading energy requirement and cost to process against metallurgical recovery of the gold. Column leach test work will provide a high quality lad scale estimate of metallurgical recovery in a heap leach using the composites of the average gold grade and material proportions (oxide, transitional and fresh) in the conceptual pit optimisation.

Results for the remaining 4 metallurgical holes are pending.

Buccaneer Project - Background

The Buccaneer Resource is currently estimated to be 10Mt @ 1.8g/t Au for 585koz above a 1g/t cutoff grade2 (Appendix 5). The resource cut-off grade is based on processing at a mill the scale of Northern Star's Central Tanami JV Processing Plant or a similar mill built on the Twin Bonanza Mineral Lease.

Gold mineralisation is disseminated within a monzogranite intrusion, and typically associated with quartz veins with visible gold often observed in the quartz stockwork veining. Mineralisation extends from near surface to a depth of over 500m and has been defined in several zones over an area of 2,300m by 800m. Mineralisation is often up to 150m thick with intervals of 20-40m wide at 1-5g/t Au3. The deposit remains open at depth, and aircore and RAB drilling suggest the potential for further strike extensions.

The project is well advanced featuring:

• Granted mineral lease
• Over 300 RC and diamond drillholes
• Exploration and mining agreement with the Traditional Owners administered by the Central Land Council
• Heritage, flora and fauna baseline surveys
• Accommodation camp and workshops
• Water bores with marginal to fresh water
• Airstrip
• Haul road access nearby to the Tanami Road
• 220kl of fuel storage

Reward Prospect

The Reward Prospect is considered prospective for copper, gold and silver mineralisation and is located approximately 63km west of the Stuart Highway. Reward hosts some shallow copper oxide workings from the 1950's era and abundant malachite, azurite and chalcocite occurs associated with a brecciated shear zone and sulphidic sediments. This style of polymetallic mineralisation has similarities to the nearby Jervois Deposit, 350km to the east, which hosts 0.43 Mt copper and 21.4 Moz silver, 0.16 Mt lead/zinc and 176 koz Au4.

Reward Drilling

In late July 2021, Prodigy Gold commenced diamond drilling at the Reward Copper Gold Prospect. The 260m diamond drillhole was designed to test an EM conductor 50m below surface and 400m long located 350m southeast from the historic Reward Copper Mine that averaged 11% Cu (Figure 3).

1. ASX: 1 September 2017
2. ASX: 20 May 2021
3. ASX KGL: 2 December 2020

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Figure 3 - Map of Reward showing historic mine workings with best assay results and modelled EM Plate5

The hole intersected biotite and andalusite schists with narrow intervals of pyrrhotite and chalcopyrite. No significant assays were returned for hole RWDD2021. There is potential the conductor has not been intersected and DHEM of the diamond hole is being considered. A revised target position generated from DHEM would warrant future drilling.

5 ASX: 13 May 2010

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