As you are no doubt aware, on 6 June 2023 Westgold Resources Limited (Westgold) announced an unsolicited takeover offer for all of your shares in Musgrave Minerals Ltd (Musgrave or the Company).

After careful consideration of the Bidder's Statement and the offer, the Directors of Musgrave unanimously resolved to recommend that you REJECT the Westgold all scrip offer of 1 Westgold share for every 5.37 Musgrave shares (the Offer).

To REJECT the Offer you should simply DO NOTHING and take NO ACTION in relation to all documents sent to you by Westgold. Since announcement, the Westgold implied Offer price has traded below the Musgrave share price.1 We note that as at 23 June 2023, the last practicable day prior to the release of this letter, the Musgrave share price closed at $0.295 compared to the current Westgold implied Offer price of $0.250. You will shortly be receiving Westgold's formal Offer document, called a Bidder's Statement. This will be followed by the Target's Statement, which will be your Directors' formal response to the Offer. The recently released Stage 1 Prefeasibility Study for the Cue Gold Project illustrates a technically and financially robust project.

The value of Musgrave to Westgold has clearly been articulated in recent announcements, media coverage and analyst commentary post the announced intention to make an Offer. Your Directors believe that Westgold recognises the inherent value of Musgrave's Cue Gold Project and the 310km2 of tenure in the Cue area of the Murchison Region held by Musgrave.

Your Directors are currently preparing a detailed response to the Offer (our Target's Statement). Ahead of sending you our Target's Statement, your Directors consider that it is important to provide you with an overview of the reasons why we believe the Offer should be rejected. We urge you to read the attached reasons carefully.

The Westgold implied Offer price is below the current Musgrave share price.

The Offer is opportunistic given Musgrave's potential.

Musgrave delivers immediate growth to Westgold.

The Offer is highly conditional and uncertain.

Musgrave shareholders may face adverse tax consequences if they accept the offer.

It is also important to note that the Offer consideration is not cash and its true value is dependent on the value that can be attributed to a Westgold share.

You will gain NO ADVANTAGE by accepting the Offer immediately on receipt of the Bidder's Statement. Indeed, by doing so, you may also miss out on the benefits of any superior alternative proposal that might emerge from a third party and you may be unable to sell your Musgrave shares on market at a higher price if the opportunity arises. Each Director intends to reject the current Offer in respect of the Musgrave Shares they own, or control. As at the date of this shareholder letter, the Directors have voting power of approximately 2.43% in Musgrave shares.

Musgrave's objective is to progress the Cue Gold Project towards production and extend mine life through continued growth of the existing resource base and discovery of additional high-grade gold deposits. Musgrave holds approximately 310km2 of highly prospective and sought-after exploration ground at Cue in the Murchison region of Western Australia2 . Musgrave has a strong record of delivering exploration success with the sole focus on building a profitable gold mining business for the benefit of our shareholders. The Company recently released the robust Stage 1 Prefeasibility Study (PFS) which defines a financially attractive standalone project with an initial 5-year life of mine (LOM) demonstrating low cost, high margin gold production. The ongoing focus is on upgrading and expanding gold resources through infill and extensional drilling to extend and sustain mine life

Cue Gold Project - Stage 1 Prefeasibility Study3 Your Board has a clear strategy for the development of the Cue Gold Project (CGP). The excellent Stage 1 PFS outcomes demonstrate that Musgrave's Cue Gold Project is one of the highest margin, undeveloped gold projects in Australia. This potential new standalone development has a rapid payback period of 9 months from first processing due to the extraordinary near-surface, high-grade nature of the Break of Day and White Heat deposits. The project has an IRR of 95% (pre-tax) and the potential to deliver over 65,000 ounces of gold annually over an initial 5-year period (including 80,000oz/year for the first 3 years) at an AISC of A$1,315/oz and AIC of A$1,675/oz (based on full amortisation of start-up capital). The project generates cashflow of $314M (before tax) and EBITDA of $528M (at A$2,600/oz) with a C1 cost of A$934/oz. With this cost profile (based on Q1 2023 capital and operating cost assumptions), the Project is expected to be in the lowest cost quartile of gold producers in Australia. The Stage 1 PFS predominantly focuses on the current Indicated Mineral Resources at Cue (435koz gold) which constitute only 47% of the total 927koz gold Resource base. The Stage 1 PFS includes the mining of 6 open pit deposits (Break of Day, White Heat, Lena, Big Sky, Numbers and Leviticus) and an initial 2 years of gold production from the upper levels of an underground mine at Break of Day. Further development studies aim to add mine life through the extension and conversion of existing Inferred Resources to the higher confidence Indicated category, together with the potential inclusion of newly discovered resources. The Musgrave team has been very successful in defining new targets, making new discoveries and growing the resource base. The project has significant upside growth potential with recent discoveries like Amarillo and Waratah having the potential to add to the resource base in 2023. Musgrave has established an exploration pipeline to sustain production at CGP, with further exploration at Cue planned, along with recent acquisitions of neighbouring, under explored, tenement packages in Mainland and Mount Magnet South. As noted above, further details of the Directors' recommendation will be provided in the Target's Statement to be released in early July 2023. A copy will also be available on the ASX website, www.asx.com.au and Musgrave's website, www.musgraveminerals.com.au, as will news of any other developments in relation to the Offer.

Contact:

Tel: +61 412 144 719

Email: darrenm@longreachcapital.com

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