Sunshine Gold : Significant NdPr Rare Earths Target at Ravenswood West

ASX Announcement

25 January 2022

SIGNIFICANT NdPr RARE EARTHS TARGET AT ELPHINSTONE CREEK, RAVENSWOOD WEST

onlySunshine Gold Limited (ASX:SHN, "Sunshine Gold", "the Company") is pleased to provide 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.
use
•	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:
		o 2.28% TREO including 0.37% Nd2O3, 0.11 % Pr6O11 (SRS10163)
		o 1.63% TREO including 0.26 % Nd2O3, 0.08 % Pr6O11 (SRS10149)
		o 1.56% TREO including 0.25 % Nd2O3, 0.08 % Pr6O11 (SRS10160)
personalFor	o 1.12% TREO including 0.19 % Nd2O3, 0.05 % Pr6O11 (SRS10164)
o 0.94% TREO including 0.15 % Nd2O3, 0.05 % Pr6O11 (SRS13008)
o	6.28 g/t Au & 0.83% TREO including 0.12% Nd2O3, 0.05 % Pr6O11 (SRS13012)

o 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.

Figure 1. Garnet-bearing pegmatite float from tributary that contained 6.28 g/t Au & 0.83% TREO from stream sediment

sampling (SRS13012).

SUNSHINE GOLD LIMITED (ASX:SHN)

Directors:	Postal Address:	Contact:	Capital:
Mr Alec Pismiris	PO Box 572	T [phone]	Ordinary shares: 467,822,730
Dr Damien Keys	Floreat WA 6014	E [e-mail]	Unquoted shares: 93,400,000 (24m Esc)
Mr Anthony Torresan	Queensland Office:	Wwww.shngold.com.au	Deferred shares: 100,000,000 (24m Esc)
Mr Paul Chapman	3/50 Tully Street	ABN 12 063 388 821	Unlisted options:65,000,000 (24m Esc)
Mr Les Davis	South Townsville QLD 4810		Unlisted plan options: 2,700,000
			Perf Rights: 17,000,000 (24m Esc)

ASX Announcement

25 January 2022

Sunshine Gold's Managing Director, Damien Keys commented: "Stream sediment sampling in 1995 and 2018 provided the first indications of REE potential associated with a regionally "unique" alkali intrusion - the ~27km2 onlyBarrabas Adamellite. This sampling produced exceptional REE and gold results from Elphinstone Creek and its tributaries. Importantly, the REE are high in Neodymium and Praseodymium which constitute an estimated 90% of global REE value. Our recent soil sampling campaign has confirmed that the Barrabas Adamellite is a REE-enriched

i trusion.

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.

This is part of a 15km long corridor and we are genuinely excited about the prospectivity, both REE and Au-Cu, of the useBarrabas Adamellite and immediate surrounds. We have only sampled 14% of the Barrabas Adamellite and will

continue to cover the remainder of the area."

personalForigure 2. Geology of the 15km prospective Cu-Au-Ag-Mo corridor and the REE enriched Barrabas Adamellite and surrounds.

BARRABAS ADAMELLITE

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 (Figure 3).

The prospective Barrabas Adamellite is large scale and occupies ~27km2. To date soil sampling covers only 3.7km2 (14%) of the area.

SUNSHINE GOLD LIMITED (ASX:SHN)

2 | P a g e

ASX Announcement

25 January 2022

onlyuse

personal Figure 3. The Barrabas Adamellite (dashed) is a distinct feature in the potassium radiometrics.

ELPHINSTONE CREEK REE-AU AND BANK BRECCIA CU-AU-AG-MO

Elphinstone Creek is a target generated from elevated REE and Au in stream sediment sampling. The anomalous samples were collected from tributaries to Elphinstone Creek (Figure 4) where exploration in 2018 returned significant

stream sediment assay results including:

For	o 6.28 g/t Au & 0.83% TREO including 0.12% Nd2O3, 0.05 % Pr6O11 (SRS13012)
o 1.11 g/t Au & 0.29% TREO including 0.04% Nd2O3, 0.01 % Pr6O11 (SRS10165)
o 2.28% TREO including 0.37% Nd2O3, 0.11 % Pr6O11 (SRS10163)
o	1.12% TREO including 0.19 % Nd2O3, 0.05 % Pr6O11 (SRS10164)
o	0.94% TREO including 0.15 % Nd2O3, 0.05 % Pr6O11 (SRS13008)

Stream sampling was also conducted from tributaries to the Barrabas Creek, which runs along the western margin of the Barrabas Adamellite (Figure 4). The stream sediments from the western margin of the Barrabas Adamellite contained results including:

1. 1.63% TREO including 0.26 % Nd2O3, 0.08 % Pr6O11 (SRS10149)o 1.56% TREO including 0.25 % Nd2O3, 0.08 % Pr6O11 (SRS10160)o 0.83% TREO including 0.12 % Nd2O3, 0.05 % Pr6O11 (SRS10158)o 0.81% TREO including 0.13 % Nd2O3, 0.04 % Pr6O11 (SRS10150)

SUNSHINE GOLD LIMITED (ASX:SHN)

3 | P a g e

Figure 4. Stream sediment sampling locations at the Barrabas Adamellite over potassium radiometrics and airphoto.

ASX Announcement

25 January 2022

onlyuse

personalSunshine Gold collected 309 soil samples across the northern margin of the Barrabas Adamellite (Figure 4). 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.

ForFu ther REE soil anomalism occurs close to the adamellite margins on either side of Elphinstone Creek. A peak value f 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.

SUNSHINE GOLD LIMITED (ASX:SHN)

4 | P a g e

ASX Announcement

25 January 2022

personal use only

Figure 5. TREO distribution in soils. Only 14% of the Barrabas Adamellite has been sampled to date with the remaining

86% to be sampled in 2022.

The Bank Breccia prospect is located within the REE enriched Barrabas Adamellite within 300m of the Jessops Creek tonalite contact (host of the Ravenswood Gold Mine). Previous drill holes at the Bank Breccia included 22.8m @ 0.6% Cu(including intervals of 12.4m at 0.95% Cu, 120ppm Mo and 8.0 g/t Ag, and 6.05m at 1.31% Cu, 100ppm Mo and 12.4 g/t Ag). These holes were not assayed for REE. The drill core will be assayed for REE to determine which adamellite

phases are likely to be enriched (e.g. coarse-grained pegmatite, fine-grained aplite or greisen). For

Figure 6. Clast supported breccia with chalcopyrite-pyrite-tennantite-tetrahedrite from Bank Breccia (SRD002,129m)

SUNSHINE GOLD LIMITED (ASX:SHN)

5 | P a g e