Resources & Energy Group Limited advised it has commenced drilling operations at the Company's East Menzies Goldfield Project in Western Australia. A total of 32 holes have been planned for an advance of 4,200m. Wireline Services Group have also mobilized to site to commence work on a moving-loop electromagnetic survey over the Springfield prospect. The drilling and geophysical Investigations are targeting multiple prospects within the greater East Menzies Goldfield Project area including Gigante Grande, Maranoa, Granny Venn North and Oliver Twist Gold prospects and the Springfield Gold and Nickel prospect. These are the first of a series of campaigns the Company will be undertaking over the next several months. The work is fully funded from cash flow generated from recent mine operations and sales completed at Granny Venn in July 2022. The Company targeted the Gigante Grande Prospect following a regional air core drilling program in August 2020. RC drilling in September 2020(1) resulted in the first high grade hole 20EMRC012- 20m@5.1g/t au from 116m, including 1m at 76gt/t au from 134m. The gold mineralisation is interpreted to be associated with a steeply dipping high rheological contrast zone which in general runs through the entire length of the Gigante Prospect. The rheological contrast is represented by the Gigante Granite on the west, ultramafics in the middle, meta-mafic and basalts on the east. The mineralised area drilled to date has a length in the order of 1,200m and remains open to the north and south along strike and down dip to the west. Broad zones of gold mineralisation have been intersected with depths as shallow as 11m and as deep as 186m Within this zone, 65 RC holes have been completed with an aggregate meterage of 8639. Of this quantum 45 holes have intersected 157 intervals of gram level mineralisation, with an aggregated thickness of 563m. At a COG of 0.3g/t Au the mineralised intervals have a weighted grade of 2.03gt/au. These are very strong indicators that the prospect has potential to support large and shallow open cut gold mining operations. The Gigante Grande prospect has been subdivided into three geographical domains: Northern, Central and Southern. The drilling program will be targeting each of these areas. Commencing in the North, five areas of anomalous bedrock gold mineralisation have been identified. All of these are controlled by NW-NNW shear zones associated with movement along the Moriarty Shear Zone. A program of RC drilling has been prepared to drill test the Gigante North area. This comprises 7 holes for a combined advance of about 1,200m of drilling. In the central part of Gigante, 7 holes for a cumulative advance of about 1,000m are proposed to further test the resource potential of this prospect. Six of these holes are planned to test for resource extensions to the north and west, and two holes are drill testing historic +40ppb gold in bedrock anomalies. In the southern part of the prospect three step out holes are planned to test a resource extension to the south of existing hole 21EMRC00 The Maranoa is a granted Mining License (M29/427) and is being investigated as part of the Company's strategy to identify near term and low capital cost mine development opportunities along the western side of the East Menzies Project area. In May 2022, the Company completed a program of shallow RC investigations at Maranoa. This work generated numerous high-grade intervals of shallow gold mineralisation, with peak assays of 5m @ 7.95gt/au from 3m, including 1m@ 32.7gt/au from 6m in MR24(2), offering potential for open cut mining development. Maranoa is one of many northeast-trending sub-parallel shear zones on the west side of the East Menzies Project area. These zones occur within a sequence of weakly foliated close-grained
metavolcanics with gold mineralisation in quartz veins and contact alteration boundaries within. Apart
from the Maranoa lode, others in the suite include True Blue, Alexandra, Picton, Kensington, Sunday
Gift, Viking, Brilliant and Luxemburg. Historical production records show that these prospects are high-
grade, such as Kensington: 31.8g/t, and Sunday Gift 53.6g/t. Despite this, these working have never
been drill-tested. In the main, the lode systems are typically 1-4m thick, have a strike in the order of 200-300m, dip at 700-800 southeast, and plunge 30-450 south. They are conspicuously displayed by lines of historic gold reef workings which have exploited the mineralised trend along the east limb of the Goodenough Syncline. The drilling program has been designed to test whether there is any continuity in the Sunday, Birthday Gift and Lady Min line of workings, and whether these additional lode systems can be bulked together to support a larger scale of mining operations integrated between M29/427 and M29/434. Seven holes, with a cumulative meterage of 560m are planned to test this concept. Recent mining within the Granny Venn Cut back identified a potential extension to the resource in the northern end of the pit highwall. The presence of a high-grade shoot had previously been speculated by the Company and was confirmed by the final rounds of blast hole drilling in the pit which intersected number of high-grade intervals of gold mineralisation in the pit floor. The mineralisation trend established from mining is 0260 with a gentle plunge to the north. This orientation aligns with the Springfield Venn Corridor Resource modelling of the final Granny Venn Pit void identifies the extension as a potential flat lying body of mineralised rocks trending north, into P29/2622, 2623 and 2624. Three holes for an advance of 440m are planned to test this extension.