Resources & Energy : Shallow High Grade Gold Hits at Maranoa

ASX/Media Release

28 April 2022

Principal Mineralised Interval at COG 0.3gt/au	Including
Hole Ref	TD	Dip	Azimuth	From (m)	To (m)	Length (m)	Au (ppm)	From (m)	To (m)	Length (m)	Au (ppm)
MR05	20	‐60	280	7	10	3	2.10	8	9	1	4.93
13	14	1	1.17
MR06	18	‐60	280	3	7	4	1.84
MR08	24	‐60	280	12	16	4	1.47	21	22	1	5.57
20	22	2	4.08
MR09	24	‐60	280	11	14	3	2.55	11	12	1	4.43
MR12	20	‐60	280	16	18	2	2.03
MR21	40	‐60	280	32	35	3	2.75	34	35	1	6.5
MR22	40	‐60	280	26	31	5	0.91
MR23	40	‐60	280	22	25	3	5.06	22	23	1	14.65
MR24	20	‐60	280	3	8	5	7.95	6	7	1	32.1
12	13	1	5.73	12	13	1	5.73
MR25	20	‐60	280	9	12	3	1.71
MR26	20	‐60	280	7	13	6	1.59
MR27	30	‐60	280	10	13	3	1.65
19	26	7	3.20	19	20	1	9.15

Shallow High‐Grade Gold Hits at Maranoa

Resources & Energy Group Limited (ASX: REZ or the Company) are pleased to provide recent results from drilling operations at the Company's Maranoa prospect (M29/427). Shallow, quartz hosted intervals of gold mineralisation that have been intersected in multiple holes. Peak results include:

	MR23	3m @ 5.06gt/au from 22m, including 1m@14.65gt/au from 22m
	MR24	5m @ 7.95gt/au from 3m, including 1m@ 32.7gt/au from 6m
	MR27	7m @ 3.2gt/au from 19m, including 1m@ 9gt/au from 19m

DISCUSSION

The Maranoa prospect is being investigated as part of the Company's strategy to identify near term production opportunities for mining operations along the western side of the East Menzies project area. As part of this approach, the Company completed four RC holes at Maranoa in late December 2021. Three of the holes drilled during December intersected gold mineralisation, including one exceptional result of 1m@33.75gt/au from 37m down the hole in MR001(1). This result provided encouragement for a follow up program which was carried out in early March 2022.

The March 2022 program specifically targeted shallow, surface near gold mineralisation along the northern end of the Maranoa line of workings. The Maranoa ore body extends over a distance of about 250m‐300m, however, the principal historic workings are concentrated along the south end of the lode. The northern extent of the lode appears to be above and outside the upper limit of historical workings and was targeted to investigate this zone and its potential to host open pit mining.

A total of 21 holes for a drilling advance of about 500m were completed along the projected strike of the main Maranoa lode. Hole depths ranged between 15 and 40m. Significant results at COG 0.3gt/au are presented below in Table 1. Borehole Locations are shown in Figure 1. Complete drilling details and assays, including supporting JORC Table Checklist are presented in appendixes 1 and 2.

Table 1 M29/427 Maranoa March 2022 Drilling Significant Results

(1) ASX Release January 2022

ACN 162 869 276

ABN 68 162 869 276

Head Office: Level 33, 52 Martin Place, Sydney, NSW, 2000

Postal: Level 33, 52 Martin Place, Sydney, NSW, 2000

Twitter: @REZ_GOLD LinkedIN: REZGROUP

T: [phone] | F: [phone] | E:[e-mail] | W: www.rezgroup.com.au

The results presented in Table 1, highlight the shallow nature of the mineralisation, which is typically less than 20m and ranges from 3m in MR24 to 32m in MR21. The mineralised intervals themselves are in the order of 3m to 6m thick, which is significantly thicker than the previously reported range of 0.1‐ 1.0m. Based on these findings, it can be concluded that the resource has not been mined out near‐ surface, and that the thicker than expected mineralised widths enhance the potential for open‐pit mining.

Figure 1 Maranoa March 2022 Borehole Location Plan

NEXT STEPS

The resource model for Maranoa will be updated to incorporate the recent results, and to enable the potential for open pit mining to be assessed.

The Maranoa line of workings is one of the multiple northeast‐trending quartz veins, conspicuously displayed by lines of old workings and surface scratching's. Apart from the Maranoa reef itself, others in the suite include True Blue, Alexandra, Picton, and Lady Min all located in M29/427, and Sunday Gift, Viking, Brilliant and Luxemburg, which are located in M29/434, refer figure 2.

Historical production records show that these prospects are high‐grade, such as Kensington: 31.8g/t, Maranoa 14.8g/t, and Sunday Gift 53.6g/t. The development of additional shoots, along the strike of these prospects or parallel to them is also likely.

Further resource drilling will be carried out to investigate whether the shoots can be bulked together to support a larger scale of mining operations integrated between M29/427 and M29/434. In this connection, M29/427 is a granted mining lease and M29/434 is a mining lease application that has proceeded to Section 31 Native Title Negotiations.

M29/427 and 434 are contiguous with M29/189 (Granny Venn), which provides access to existing fit for purpose infrastructure. This includes a 2.5km long haul road with direct access to a turn‐out ontothe Goldfields Highway from the mine site. ROM stockpile pads and hardstands, with cleared levelled areas suitable for administration facilities and HEMM traffic, have also been retained on site because of recent mining activities at Granny Venn.

Figure 2 M29/427 and 434 Showing existing prospects and workings

Competent Persons Statement and Consent

The information in this release related to Exploration Results is based on and fairly represents information compiled by Mr Michael Johnstone, Principal Consultant for Minerva Geological Services (MGS). Mr Johnstone is a member of the Australasian Institute of Mining and Metallurgy and has sufficient experience that is relevant to the reporting of Exploration Results to qualify as a Competent Persons as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr. Johnstone consents to the inclusion in this release of the matters based on their information in the form and context in which it appears.

About Resources and Energy

Resources and Energy Group Limited (ASX: REZ) is an independent, ASX‐listed mineral resources explorer and miner, with projects located in premier mining jurisdictions in Western Australia and Queensland. As of July 2021, the Company has delineated gold and silver resources of 192k oz/au and 862k oz/au ag, refer table 1

In Western Australia, the Company's flagship is the East Menzies project (EMP), situated 130km north of Kalgoorlie. The EMP represents a +100km2 package of contiguous mining, exploration, and prospecting licenses which are prospective for precious metals, nickel, and other technology metals. The tenements are located within a significant orogenic lode gold province, figures 3 and 4.

Figure 3 East Menzies Gold Project tenement and Operations Plan

The EMP currently encompasses five operational areas, including the Gigante Grande Gold prospect on the east side project area, refer to Figure 2. In the southwest, drilling investigations at Springfield have intersected magmatic Ni sulphides. This significant and material exploration result has opened a large tract of prospective ground for nickel, cobalt, copper, and platinum group elements. In the central west, the Company is investigating opportunities for mining operations in M29/189 Granny Venn, M29/141 Goodenough, and M29/427 Maranoa, with drilling programs at Granny Venn and Maranoa currently underway.

In Queensland, the Company has a 12km2 Mineral Development Licence over the Mount Mackenzie Mineral Resource and retains a further 15km2 as an Exploration Permit. These tenements are prospective for high, intermediate, and low sulphidation gold and base metals mineralisation. The current MRE for Mount Mackenzie has been estimated at 3.42Mt @ 1.18g/t gold and 9g/t silver for a total of 129,000 oz gold and 862k oz silver; refer to the resource summary overleaf. The Company is carrying out mining, groundwater, ecological, and metallurgical studies, to inform a PFS study and an application for an Environmental Authority to develop the project.

Figure 4 East Menzies Gold Project Regional Location Plan