Hillgrove Resources Limited (Hillgrove, the Company) (ASX:HGO) is pleased to provide the following drilling update at its Kanmantoo Mine Lease located at Kanmantoo, 55kms southeast of Adelaide in South Australia.

Underground diamond drilling commenced in May 2022 from the Exploration Decline for 12 holes, and then recommenced in July in 2023 as production activities started. In total, 96 UG drill holes have been completed by 1 October 2023 for 10,51.31 metres of drilling.

The nearest exploration drill hole to this UG intersection is drill hole KTDD202 which intersected 12m @ 1.73% Cu from 331m to 343m downhole. The two drill holes do not intersect the mineralised zone with the same angle of intersection so the widths of the intersection are not comparable, but the intensity of Cu veining and consequently Cu grades are very different and demonstrate the local variability of the mineralised zones.

To date the UG drilling has not completely drilled out all of the proposed stope areas and due to current decline access positions the UG drilling has not yet targeted the West Kavanagh stope areas. Commenting on the drilling results, Hillgrove CEO and Managing Director, Lachlan Wallace said: 'It is always pleasing to see trays full of high-grade drill core, such as this run of 36.6m at 3.35%Cu. The infill drilling increases the geological data density, enabling individual stope designs to be completed as we prepare for the commencement of copper production early next year. The geological reconciliation of the early stopes which are relied upon for first revenues remain the priority target for infill drilling. These areas will be drilled as the decline advances and additional underground drill platforms are established. Additional drilling capacity has been mobilised to accelerate the drilling information from the early stopes as drill locations become available. The additional drilling capacity is also following up on the recent step out hole at Spitfire, which recorded 45.4m @ 1.19%Cu and 0.12 g/t Au. This intersection was more than 100m away from the nearest hole, providing an opportunity for increased mineral resources in this area with further drilling.'

Contact:

Tel: +61 (0) 7070 169

Competent Person's Statement

The information in this release that relates to the Exploration Results is based upon information compiled by Mr Peter Rolley, who is a Member of The Australian Institute of Geoscientists. Mr Rolley is a full-time employee of Hillgrove Resources Limited and has sufficient experience relevant to the styles of mineralisation and type of deposit under consideration 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 (JORC Code)'. Mr Rolley has consented to the inclusion in the release of the matters based on their information in the form and context in which it appears. The information in this report that relates to past Exploration and Drilling Results on the Kanmantoo project were initially reported by the Company to ASX on 26 May 2016, 10 October 2019, 3 September 2020, 3 May 2021, 6 May 2021, 24 June 2021, 26 August 2021, 1 September 2021, 21 March 2022, 6 May 2022, 27 February 2023, 3 July 2023 and 2 August 2023. The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and that all material assumptions and technical parameters underpinning the Exploration Results and the Resource Estimate in the relevant market announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person's findings are presented have not been materially modified from the original market announcements.

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