Prodigy Gold NL : Quarterly Activities and Cashflow Report December 2021

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QUARTERLY REPORT

For the 3 months ended 31 December 2021

Highlights:

Prodigy Gold 100% Projects

Reynolds Range:

• Results reported for Reward diamond drilling program

Hyperion Project:

• Results reported for PHD diamond drilling and aircore drilling programs
• Tregony results demonstrate stacked vein system with 5 zones of mineralisation intersected o New Deposit Model and Exploration Concept developed
  o Results received of 210.7m diamond drill hole completed at Tregony include:
• • 4.5m interval from 14.3m with 2.4m @ 1.1g/t Au recovered
  • 2.4m interval from 43.8m with 1m @ 1.7g/t Au recovered
  • 6.5m interval from 53.3m with 5.15m @ 2.5g/t Au recovered

Buccaneer Gold Deposit:

• 17 aircore holes for 1,224m completed at Buccaneer Resource to test for shallow extensions to existing resource demonstrated potential for resource extension with mineralisation intersected 150m to the south of the resource
• 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 include:

1. 13.35m @ 3.9g/t Au from 79.7m including 3.3m @ 13.5g/t Au from 79.7m - BCDD2104

1. 16.07m @ 5.8g/t Au from 140.43m including 6.57m @ 3.1g/t Au from 140.43m and 5.5m @ 13.2g/t Au from 151m - BCDD2103

1. 1.5m @ 17.9g/t Au from 74.5m - BCDD2109

1. 22m @ 1.1g/t Au from 81m including 8m @ 2.1g/t Au from 93.1m - BCDD2109

Golden Hind Gold Deposit:

• Golden Hind - Historical diamond core containing visible gold at Golden Hind sampled and assays reported post quarter end, including results of:
  o 22.5m @ 25.2g/t Au from 11m including 16.5m @ 34g/t Au from 14m including 0.9m @ 347g/t Au from 19.1m - GHDD100001
  o 21m @ 0.8g/t Au from 3m including 8m @ 1.4g/t Au from 16m - GHDD100002

Prodigy Gold Joint Venture Projects

Monza JV Agreement signed (Newmont):

• Exploration Farm-in and Joint Venture Agreement ("Agreement") signed with Newmont Exploration Pty Ltd, a wholly owned subsidiary of Newmont Corporation ("Newmont"), to advance exploration at the Monza Project located in the Northern Territory (the "Project")
• Prodigy Gold free carried until Newmont makes a decision to proceed with the development of a mine
• Under the Agreement, Newmont can earn an initial 51% interest in the Project by either spending A$6 million on exploration or defining a JORC 2012 Inferred Mineral Resource
• Newmont can earn an additional 29% interest in the Project if it makes a decision to mine
• Prodigy Gold has a financing option exercisable from the decision to mine to commencement of commercial production

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Barrow Creek divestment (Australasian Metals Limited) of 90% interest in selected tenements with Prodigy Gold's interest free-carried until completion of a pre-feasibility study (PFS)

Old Pirate Operator Agreement (Davidson) termination

Corporate Summary:

Board changes:

• Appointment of Gerard McMahon (Chairman) and Neale Edwards (Non-Executive Director)
• Resignation of Michael Stirzaker (Non-Executive Director) and Matt Briggs (Managing Director)
• Change of role to Interim Executive Director for Brett Smith
• Appointment of Patricia Farr to Alternate Secretary

Prodigy Gold maintains a cash balance of A$2.8M as at 31 December 2021

Prodigy Gold NL (ASX: PRX) ('Prodigy Gold' or the 'Company') is pleased to provide this activity report for the three months ended 31 December 2021.

Management Commentary

Commenting on progress made during the December quarter, Prodigy Gold Interim Executive Director, Brett Smith said: "A productive quarter for Prodigy Gold with progress to support our heap leach study at the Buccaneer Gold Deposit and the completion of key drilling programs within Hyperion.

A new geological model for Tregony, reinforced by updated historical results and intercepts in the recent diamond hole, clearly demonstrates the potential for extensions of the system.

Results reported for the diamond drillhole at Tregony increase our understanding of the structural controls and will be used to plan a drill program to screen for further mineralisation undercover to the north of Tregony. The same stratigraphy that hosts Tregony extends for over 9km to the north under shallow cover and is completely undrilled.

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 drilling includes over 200m of mineralisation (>0.3g/t Au) across 946.1m of drilling. Mineralisation occurs in several stacked zones in the oxide and multiple shallowly dipping stockwork vein arrays in the fresh rock.

The additional Buccaneer results support the indicator resource model with mineralisation intersected where predicted. Samples for the generation of metallurgical composites to commence metallurgical test work have arrived in Perth. These will initially be used for crush size recovery testwork, followed by column leach testwork to simulate the gold extraction performance of the average material that would be stacked on a heap leach."

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December Quarter Exploration Summary

Reynolds Range Project

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 Au1.

Reward - Diamond 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 1).

Figure 1 - Map of Reward showing historic mine workings with best assay results and modelled EM plate2

The hole intersected biotite and andalusite schists with narrow intervals of pyrrhotite and chalcopyrite. No significant assays were returned for hole RWDD20213. 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.

1. ASX: KGL: 2 December 2020
2. ASX: 13 May 2010
3. ASX: 29 November 2021

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Hyperion Project

Northern Tanami - PHD Target - 100% PRX

PHD is an 11km soil gold anomaly within the Hyperion Project, Northern Territory. It is located 30km northwest of the existing 4.93Mt @ 1.93g/t 310koz gold resource4 and 40km north of the Northern Star / Tanami Gold 1.1Moz Groundrush Resource (Figure 2). Shallow RC drilling by previous owner Ord River Resources in 2005 and 2006 defined gold within two zones over 3.5km of strike at PHD. Sampling along strike of the historic anomalism extended the soil gold anomaly over the structure to 11km in length. Airborne magnetic surveying completed in 2019 highlighted the extensions of the structure along strike and the potential for parallel structures.

Figure 2 - Location of PHD Prospect within the Hyperion Project Area

4 ASX: 31 July 2018

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PHD - Aircore Drilling

Results for a program of aircore drilling at the PHD Gold Target comprising 80 aircore holes drilling on 1,000m line spacing along 7km of strike were received during the quarter. Drill holes were sampled and assayed using 3m composites, or shorter intervals for visible mineralisation. No significant results (over 0.5g/t Au) were reported5. Results of aircore drilling at the PHD Prospect defined the structure consistently along strike.

PHD - Co-Funded Diamond Drilling

Following notification that Prodigy Gold's application for co-funding for a planned diamond drill hole at PHD under the Northern Territory Government's "Resourcing the Territory" initiative was successful, the Company completed a 240.7m stratigraphic diamond drillhole.

The drillhole was designed to provide insight into the structural context and stratigraphic controls of gold mineralisation within the PHD Prospect on the Hyperion Project. The drillhole intersected highly fractured sediments for most of the hole. Much of the structure was trending parallel to the drilling (Figure 3). Brecciated sediments, at the depth of the target structure, did not yield results of interest. An alternate interpretation of the historical RC drilling could be for two structures to dip to the east, rather than a single west dipping structure. Due to the scale of the target and previous positive drilling, RC drilling to test the east dipping orientation is being considered along with a larger scale program at the Tregony Deposit.

Figure 3 - PHD schematic cross section6

1. ASX: 6 October2021
2. ASX: 29 November 2021

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