Nagambie Resources : Balaclava Hill Drilling Results and Extension of 2022 SPP

ASX ANNOUNCEMENT	18 FEBRUARY 2022

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BALACLAVA HILL INITIAL DRILLING RESULTS VERY ENCOURAGING WITH A PEAK ASSAY OF 49.7 G/T GOLD

Mawson Gold Limited ("Mawson") (TSX: MAW) overnight issued a news release to the Toronto Stock Exchange regarding drilling results within Nagambie Resources' 100%-owned Whroo JV Property in the Waranga Domain of the Melbourne Zone. The link for the Toronto Stock Exchange is https://tsx.comand the 'Q' for Mawson is 'MAW'. Clicking 'News' then brings up all the MAW releases, starting with the newest release.

Michael Hudson, Executive Chairman of Mawson, commented in the release: "There remains a lot of gold to be found in Victoria. Our drilling below one of the largest historic epizonal mines in Victoria, at Balaclava Hill, has produced the best drill result on the field since hard rock mining commenced 167 years ago. Grades up to 49.7 g/t gold over

0.6 metres are impressive as are the antimony grades including 0.2 metres @ 16.5% antimony, and the +200-metre-wide zone of anomalous "mine sandstone" host. These results provide [Mawson] with its second bona fide high grade drill project [in Victoria] …."

The Whroo goldfield lies to the east of the Heathcote-Mt William Fault Zone, 35 km northeast of the Costerfield gold-antimony mine and 40 km east of the Fosterville gold mine. There has been no detailed geophysical data collected over the goldfield to date, but the regional Bouguer Anomaly image shows Whroo is located above a local gravity high, as is the Fosterville mine.

The significant intersections of stibnite (antimony sulphide) clearly indicate that the target below Balaclava Hill is high grade gold-stibnite, epizonal, Fosterville-style mineralisation. Mawson are comparing the early Whroo intersections with the published orebody dimensions and grades at the Costerfield Mine, the 6th-highest-grade global underground gold mine and a top 5 global producer of antimony.

In the first year of the option / joint venture agreement, Mawson has spent $400,000 on exploration on the Whroo JV Property and paid $100,000 cash to Nagambie Resources for a 0% interest. Mawson must now spend a further $500,000 on exploration and pay a further $50,000 cash to Nagambie Resources before 2 December 2022 to earn a 25% interest. Mawson can earn up to 60% or 70%, at Nagambie Resources' option, by expending a total of $2.75 million or $4.25 million respectively.

Mawson has transferred its' Australian interests into Southern Cross Gold Pty Ltd ("Southern Cross") which is working towards an A$8 to A$10 million initial public offering ("IPO") on the ASX in coming months in order to significantly increase its' gold exploration in Victoria. Southern Cross recently raised A$2.725 million to fund its' ongoing drilling and IPO costs.

EXTENSION OF NAGAMBIE RESOURCES' 2022 SPP

In light of the very encouraging initial Balaclava Hill drilling results, the Board of Nagambie Resources has extended the Closing Date for applications for the Share Purchase Plan ("SPP") by two weeks from Thursday 24 February 2022 to Thursday 10 March 2022 (refer page 2).

NAGAMBIE RESOURCES

www.nagambieresources.com.au

Oriented diamond drilling of Fosterville-style, structural- controlled, high grade sulphide-gold underground targets within the Waranga Domain tenements is being methodically carried out.

Nagambie Resources and Golden Camel Mining (GCM) have received approval for the construction and operation of a gold toll treatment facility at the Nagambie Mine. GCM will pay 100% of all construction and commissioning costs; thereafter all revenues and costs will be shared 50:50.

Underwater storage of sulphidic excavation material (PASS) in the two legacy gold pits at the Nagambie Mine is an excellent environmental fit with a major infrastructure project for Melbourne such as the North-East Link.

Recovery of residual gold from the 1990s heap leach pad using naturally- occurring bacteria is being investigated.

Mining and screening of sand and gravel deposits at the Nagambie Mine to produce sand and quartz aggregate products is also planned.

SHARES ON ISSUE 499,932,346

ASX CODE: NAG Nagambie Resources Limited

ABN 42 111 587 163

Registered, Operations &

Head Office

533 Zanelli Road

Nagambie Vic 3608

(PO Box 339)

Tel: [phone]

[e-mail]

Board

Mike Trumbull (Exec Chairman)

Bill Colvin (Director)

Alfonso Grillo (Dir/Company Sec)

James Earle CEO

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NAGAMBIE RESOURCES LIMITED

Balaclava Hill Drilling Results and SPP Extension - 18 February 2022

New Key Dates for 2022 SPP

●	Record Date to determine entitlements	7.00pm (Melbourne time) on Monday 24 January 2022
●	ASX Announcement of SPP		Tuesday 25 January 2022
●	Despatch of documents to shareholders and SPP Opening Date	Friday 28 January 2022
●	Closing Date for application for Shares	5.00pm (Melbourne time) on Thursday 10 March 2022	*
●	ASX Announcement and SPP results		Monday 14 March 2022	*
●	Allotment Date for SPP Shares		Wednesday 16 March 2022 *
●	Quotation Commences		Thursday 17 March 2022 *

* These dates are indicative only and may be changed at the discretion of Nagambie Resources

To limit potential dilution under the SPP, the Board has also capped the SPP raising at $2.0 million (37.736 million SPP shares or 7.5% of the current issued shares of 499.932 million).

BALACLAVA HILL DRILLING DETAILS AND ASSAY RESULTS

A JORC Table 1 is attached to this announcement.

The collar coordinates for the two diamond holes are shown in Table 1 below. The 14km historic length of workings in the field is shown in Figure 1. The regional location of the Whroo goldfield, in relation to the Fosterville, Costerfield and Nagambie epizonal gold-stibnite mines is shown in Figure 2.

Table 1 Drill Hole Collar Information: Coordinate Reference System GDA94, Zone 55 (EPSG:28355)

Area	Hole ID	Easting	Northing	Dip	Azimuth	RL (m)	Depth (m)
Balaclava Hill	MDDBC001	323223	5942899	-50	145	184.54	456
Balaclava Hill	MDDBC002	323223	5942899	-50	185	184.54	447

The collar azimuth for MDDBC002 was 40 degrees to the west of that for MDDBC002 (refer Table 1) and the EOH for MDDBC002 was approximately 150m west of that for MDD001.

Figure 1 Whroo Historic Workings

From a Southern Cross plan.

Table 2 sets out the intersections in the MDDBC001 andMDDBC002 diamond holes at Balaclava Hill using a lower cut off of 0.5 g/t gold times the intersection width in metres (Au g/t x width (m) >= 0.5) except where significant stibnite grades have been intersected.

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NAGAMBIE RESOURCES LIMITED

Balaclava Hill Drilling Results and SPP Extension - 18 February 2022

Figure 2 Location of Whroo Goldfield in relation to Fosterville, Costerfield and Nagambie Mines

From a Southern Cross plan.

Figure 3 Section showing MDDBC001 below Balaclava Hill and Whroo1 drilled in 1973

From a Southern Cross cross section.

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NAGAMBIE RESOURCES LIMITED

Balaclava Hill Drilling Results and SPP Extension - 18 February 2022

Figure 3 shows the drill trace for MDDBC001 below the Balaclava Hill historic workings and the Whroo1 hole drilled in 1973 by Newmont and ICI. The deeper broad mineralised zone in MDDBC001 of 44.8m at 0.8 g/t gold (refer Table 2) relates well to the 63.0m at 0.35 g/t gold intersected in the shallower Whroo1 hole and could indicate that grade increases with depth.

Table 2 Intersections from MDDBC001 and MDDBC002

Hole ID	from (m)	to (m)	width (m)	Au g/t	Sb%
MDDBC001	201.0	202.0	1.0	8.4	0
including	201.5	202.0	0.5	16.5	0
MDDBC001	228.0	239.0	11.0	0.4	0
including	236.0	237.5	1.5	1.2	0
MDDBC001	262.4	262.8	0.4	1.4	10.5
MDDBC001	323.0	367.8	44.8	0.8	0.1
MDDBC001	324.9	325.5	0.6	49.7	0
MDDBC001	359.6	359.8	0.2	0.2	16.5
MDDBC001	362.8	363.0	0.2	3.8	6.3
MDDBC001	365.0	365.3	0.3	1.0	3.3
MDDBC001	403.0	416.2	13.2	0.3	0
MDDBC001	409.8	410.5	0.7	1.5	0
MDDBC002	69.0	70.0	1.0	1.1	0
MDDBC002	212.6	227.0	14.4	0.4	0
including	214.6	215.4	0.8	0.9	0
including	225.0	226.0	1.0	2.2	0
MDDBC002	332.1	332.8	0.7	5.0	0

Nagambie Resources understands that the peak gold assay in MDDBC001 of 49.7 g/t gold is the highest gold grade ever intersected in a deep diamond hole in the Waranga Domain (the northernmost domain in the Melbourne Zone). The significant intersections of stibnite (antimony sulphide) within the MDDBC001 hole clearly indicates that the mineralisation below the surface oxide zone at Balaclava Hill is gold-stibnite, epizonal, Fosterville-style mineralisation.

The Whroo goldfield (indicated in gold within the dark-blue Whroo JV Property in Figure 2) consists of the Balaclava Hill area which contains thirteen named reefs mined from an open pit and 137m deep shaft, while shallow workings extend across the trend over 14 km. Total production from the Whroo goldfield was estimated at 40,000 ounces of gold, at grades varying from 5 g/t gold to greater than 700 g/t gold from reefs and spurs within an E-W-striking pyritic sandstone. Based on the detailed logging of MDDBC001, gold at Balaclava Hill appears closely associated with quartz veins, arsenian-pyrite and stibnite. Arsenian-pyrite has also been logged by Nagambie Resources in the recent NAD-series of deep diamond holes targeting the Nagambie Mine Feeder Zone.

As Mawson noted in its' TSX release: Antimony is a critical metal, where China produces approximately 53% of the raw material and processes 80% of global production. Antimony alloys with lead and tin which results in improved properties for solders, bullets, bearings and batteries. Antimony is a prominent additive for halogen- containing flame retardants. Antimony is also used as a dopant in semiconductor devices. Mandalay Resources' Costerfield Mine is the target model sought by Mawson at Whroo. The widths and grades observed in Mawson's initial drilling are consistent with those observed from Costerfield, which is located 35 km SW from Whroo (refer Figure 1). The Costerfield mine corridor contains 2 million ounces of equivalent gold (pers. comm. Mandalay Q3 2021 Results), and in 2020 was the 6th-highest-grade global underground gold mine and a top 5 global producer of antimony. Average drill hole widths and grades at Costerfield are: Brunswick lode (0.7m @ 9.0 g/t Au and 4.0% Sb); Youle lode (0.4 metres @ 47.7 g/t Au and 11.4% Sb); Kendal Splay (0.3m @ 92.8 g/t Au and 41.3% Sb); and Peacock lode (0.4m @ 13.0 g/t Au and 6.0% Sb). The average vein width at Augusta is 0.3m, while the Cuffley lode averages 0.4m. Average mined widths at Costerfield are 2.0 metres (Mandalay Technical Report, 2021).

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NAGAMBIE RESOURCES LIMITED

Balaclava Hill Drilling Results and SPP Extension - 18 February 2022

By the order of the Board.

James Earle

Chief Executive Officer

Attachment: JORC Table 1

STATEMENT AS TO COMPETENCY

The Exploration Results in this report have been compiled by Mike Hudson B.Sc. (Hons 1st) who is a Fellow of the Australasian Institute of Mining and Metallurgy (FAusIMM) and Executive Chairman of Mawson Gold Limited, the Manager of the Whroo JV with Nagambie Resources Limited. Mike Hudson has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration, and to the activity which he is undertaking, to qualify as a Competent Person as defined in the 2012 edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". He consents to the inclusion in this report of these matters based on the information in the form and context in which it appears.

FORWARD-LOOKING STATEMENTS

This report contains "forward-looking statements" within the meaning of securities laws of applicable jurisdictions. Forward- looking statements can generally be identified by the use of forward-looking words such as "may", "will", "expect", "target", "intend", "plan", "estimate", "anticipate", "believe", "continue", "objectives", "outlook", "guidance" or other similar words, and include statements regarding certain plans, strategies and objectives of management and expected financial performance. These forward-looking statements involve known and unknown risks, uncertainties and other factors, many of which are outside the control of Nagambie Resources and any of its officers, employees, agents or associates. Actual results, performance or achievements may vary materially from any projections and forward-looking statements and the assumptions on which those statements are based. Exploration potential is conceptual in nature, there has been insufficient exploration to define a Mineral Resource and it is uncertain if further exploration will result in the determination of a Mineral Resource. Readers are cautioned not to place undue reliance on forward-looking statements and Nagambie Resources assumes no obligation to update such information.

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