GME Resources : Quarterly Activities Report and Cashflow Dec 2021

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QUARTERLY ACTIVITIES REPORT

December 2021

21 January 2022

GME Resources Limited ("GME" or "the Company") provides an update on its activities completed during the December 2021 quarter.

Highlights

• Nickel breaches US$22,000 /tonne ($10/lb) - highest price in ten years. Review of NiWest Nickel Cobalt Project to commence
• Soil sampling program commences over the Federation shear zone, targeting new gold anomalies at the Abednego Project

NiWest (100%) Nickel Cobalt Project

The NiWest Nickel Cobalt Project hosts one of the highest-grade undeveloped nickel laterite resources in Australia estimated to contain 81 million tonnes averaging 1.03% Nickel and 0.06% Cobalt. (Refer ASX announcement NiWest Resource Update 21 Feb 2017, refer Appendix 2 and 3, Tables 2 - 4). Over 75% of the resource falls within the Measured and Indicated categories.

The Project, is at an advanced stage, having completed high level Mineral Resource estimates and developed a technically viable process flow sheet. An extensive Pre-Feasibility Study (PFS) has been completed demonstrating that a robust economic outcome is achievable at similar commodity prices we are witnessing today. The PFS highlights the NiWest Nickel Cobalt Project as a significant 20 plus year operation that is strongly leveraged to long term nickel price growth. More detailed information relating to the PFS and the NiWest resources and reserves are listed Appendix 1 and 2.

During the quarter the Company witnessed increased interest in the NiWest Nickel Cobalt Project from market participants in the battery metals space. This increase coincides with a considerable increase in LME nickel price to over US $22,000 per tonne as warehouse inventories continue to fall.

Given the increased interest in the project, a strong nickel price and evidence of changing investment sentiment, the Company will commence a review and an update of the previous work undertaken in the PFS with the view to advancing the project.

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Abednego Gold Project

During the reporting period the Company announced the (Refer ASX announcement dated 14 December 2021) commencement of a detailed UFF soil sampling program targeting gold mineralisation within the highly prospective Federation shear zone, at the Company's 100% owned Abednego Project, situated approximately 45km east of Leonora, in the Eastern Goldfields of Western Australia (Figure 4).

The UFF soil sampling program has been designed to identify new gold anomalies and verify historic soil and vacuum gold anomalies situated over the Federation shear zone and located along seven kilometres of the strongly mineralised untested Federation shear zone strike from known mineralisation at Homeward Bound, Federation and Federation North (Figure 1). The UFF soil sampling program will provide sufficient detail and technical information to enable target prioritisation and design of follow-up aircore drilling programs.

Bedrock gold mineralisation has previously been outlined at Federation, Homeward Bound and Federation North deposits, all located on the southern margin of this survey. The Ultra-fine fraction soil sampling method has been selected by GME due to its effectiveness in detecting anomalism beneath shallow transported cover, its ability to minimise nugget effect and it's broad multi- element assay suite which will assist with target prioritisation."

The Ultra-fine fraction (UFF) soil program comprises sampling on a nominal 100 x 100m, 100 x 50m or 200 x 100m grid, for a planned total of approximately 514 samples (Figure 1). The program will target gold mineralisation below thin alluvial and sheetwash cover along the Federation shear zone.

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The Federation shear zone is considered highly prospective for gold mineralisation with recent drilling at Federation, located at the southern margin of the UFF soil survey, delineating multiple quartz reefs within a continuous structure and mineralised trend within the Federation shear zone (Figures 2 & 3). Drilling confirmed continuity of mineralisation in excess of 500m strike under areas of shallow cover and along the shallowly mined outcropping portions of the zone (refer ASX announcement 19 May 2021).

Figure 2: Federation prospect long section along (E-E') the main mineralised zone (window +/-

20m). The Federation deposit is located at the southern margin of the UFF soil sampling

program.

Previously reported intersections (refer ASX announcement 19 May 2021) at the Federation deposit include:

1. 11m @ 1.66g/t Au from 42m in ABRC036 o 1m @ 16.60g/t Au from 13m in ABRC021 o 10m @ 1.54g/t Au from 31m in ABRC019 o 6m @ 2.37g/t Au from 20m in ABRC031 o 5m @ 2.06g/t Au from 7m in ABRC027 o 13m @ 0.76g/t Au from 30m in ABRC029

The mineralisation is characterised by multiple, moderately steeply, east-southeast dipping lodes located within the north-northeast striking Federation Trend. Higher grades within these lodes exhibit a shallow (~10 degree) plunge to the south-southwest. The lodes extend to surface in places, where they have been mined by a network of shallow pits and shafts. The mineralised lodes have associated broader shallow zones of low to moderate grade, supergene, gold mineralisation (Figures 2 & 3).