Sunshine Gold Limited provided an update on recent rare earth element ("REE") soil sampling and its integration with historic stream sediment sampling at the Elphinstone Creek REE-Au prospect, Ravenswood West (Sunshine Gold 100%). HIGHLIGHTS: Elevated REE from recent soil sampling at Elphinstone Creek including 11 results >1,000ppm total rare earth oxides ("TREO") with a peak value of 1,327ppm. Discrete zones of REE enrichment are located near the pluton margins of the Barrabas Adamellite - a regionally "unique" alkali intrusion and the likely source of the REE.

The soil sampling results confirm 15 historic stream sediment samples with strong Neodymium and Praseodymium oxides ("NdPr") levels. The historic stream sampling also returned high-grade gold results. Best samples include: 2.28% TREO including 0.37% Nd2O3, 0.11 % Pr6O11 (SRS10163); 1.63% TREO including 0.26 % Nd2O3, 0.08 % Pr6O11 (SRS10149); 1.56% TREO including 0.25 % Nd2O3, 0.08 % Pr6O11 (SRS10160); 1.12% TREO including 0.19 % Nd2O3, 0.05 % Pr6O11 (SRS10164); 0.94% TREO including 0.15 % Nd2O3, 0.05 % Pr6O11 (SRS13008); 6.28 g/t Au & 0.83% TREO including 0.12% Nd2O3, 0.05 % Pr6O11 (SRS13012); 1.11 g/t Au & 0.29% TREO including 0.04% Nd2O3, 0.01 % Pr6O11 (SRS10165).

Historic rock chip sample taken 1.8km west of the Barrabas Adamellite contact returned 49.07% Cu, 0.24 g/t Au, 1,793 g/t Ag and 0.21% Mo (BKR-060). No follow up work has occurred in the vicinity of the rock chip sample. Integrated soil sampling and magnetic interpretation confirm that the stratigraphic and structural architecture of the greater Elphinstone area is analogous to that found at the nearby Ravenswood Gold Mine.

Furthermore, diamond drilling at the Bank Breccia prospect was never assayed for REE despite being hosted in the Barrabas Adamellite and containing 22.8m @ 0.6% Cu (SRD002). This core is now being prepared for REE assaying. The Elphinstone Creek and Bank Breccia targets are hosted in the Barrabas Adamellite, a quartz monzonite, comprising medium to coarse-grained plagioclase and alkali feldspar (~60%) with lesser quartz (~35%) and biotite (~5%).

The Barrabas Adamellite is distinguishable as having broad, moderate magnetics. Notably, the Bank Breccia and Elphinstone Creek prospects sit on the northern margin of this unit in contact with a magnetic high feature, likely relating to dioritic to gabbroic intrusives seen near Ravenswood. This body is also highlighted in the radiometrics as having a strong potassium signature.

The prospective Barrabas Adamellite is large scale and occupies ~27km2. To date soil sampling covers only 3.7km2 (14%) of the area. Sunshine Gold collected 309 soil samples across the northern margin of the Barrabas Adamellite.

The sampling confirmed that the Barrabas Adamellite is enriched in REE, with all Barrabas Adamellite soil samples grading >400 ppm TREO. A coherent 800m long, ENE striking REE soil anomaly grading (>900 ppm TREO) is observed in the vicinity of the Bank Breccia. The anomaly is supported by elevated stream sediment samples grading up to 1.56% TREO.

The anomaly is located immediately east of the historic Bank Breccia drilling. Further REE soil anomalism occurs close to the adamellite margins on either side of Elphinstone Creek. A peak value of 1,091ppm TREO (Sample 256157) was recorded immediately east of Elphinstone Creek.

The soil survey will be extended to the south during 2022 to better refine targets for preliminary drill testing. Further soil sampling and mapping is planned for the Barrabas Adamellite. Sampling is scheduled to commence in March 2022 and will be ongoing though to June 2022.

Niche sampling of select mapped outcrops will focus on determining which adamellite phases are likely to be economically enriched (e.g. coarse-grained pegmatite, fine- grained aplite or greisen). The Bank Breccia core will be relogged and selectively sampled for REE mineralisation.