Nagambie Resources Limited report the results from a detailed technical review of its grade-calculation processes for the 100%-owned Nagambie Mine. The aim was to establish the most accurate, consistent and meaningful way of reporting results for the Costerfield-Mine-style (C-vein) mineralisation being intersected. A principal conclusion was that all individual sample assays must be weighted by bulk density (BD) as well as sample width.

When all the recommended processes are applied to the assays for the NRP02 intersection of the C1 and C2 structures combined, drilled in 2006 and last reported on 29 April 2022, the new criteria result in material grade increases: The review emphasised the necessity of weighting individual sample assays by bulk density (BD) as well as sample length. It also highlighted the importance of reporting grades for both vein width and mineable width (considered by NRL to be 1.2m horizontal thickness or greater). A feature of the new benchmark calculation is that it allows for the higher BD of stibnite, as measured by Sb%, compared to the BD of the unmineralized waste.

The BD formula applied is one used at the high-grade, gold- antimony Costerfield Mine, situated 45km to the west of the Nagambie Mine. Results from the revised reporting procedures further support NRL's current drilling program, where assay results are expected to start flowing in coming weeks and months. Summary of C-Veins, Mining Method Considerations and Developed Assay-Reporting Criteria C-veins at Nagambie generally striking N to NNW and dipping vertically or sub-vertically to the W; C-veins are mineable from ~60m vertical depth from surface away from the West Pit and deeper under the West Pit (vertical geotechnical pillar to be determined in due course); Mining method proposed to be up-hole-drill stoping with ore drill drives 10m vertically apart (as for the Costerfield Mine).

Cemented rock fill (using underground development waste) will allow for future stopes above, below and besides each filled stope. Minimum stoping width of 1.2m EHT. For stopes side by side, the waste between them must be at least 1.5m EHT to cover the additional costs of strike driving, stoping, backfilling and potential dilution for multiple stopes; All individual sample assays to be weighted by both EHT and BD - using the Costerfield Mine BD formula based on Sb%; All intersection grades (Au, Sb, AuEq) to be reported for the EHT of the vein and, where the vein EHT is less than 1.2m, for the minimum mineable EHT of 1.2m by adding appropriate waste dilution (similar to the Costerfield Mine); and Mineable cut-off grade of 3.0 g/t AuEq over 1.2m EHT or greater (similar to the Costerfield Mine).

In time, when a sufficiently representative range of diamond core material is available, NRL will need to calculate the BD of the unmineralised waste (predominantly sandstones, siltstones and mudstones) at the Nagambie Mine. However, NRL does not consider that it will vary significantly from 2.74. The gold-antimony Costerfield Mine currently calculates its gold equivalent (AuEq) factor, the relative value of 1.0% antimony (Sb) in the mine to 1.0 gram /tonne gold (Au) in the mine as: AuEq factor = [US$/tonne antimony price x 0.01 x 0.95 antimony recovery] /[US$/ounce gold price /31.10348 grams per ounce x 0.93 gold recovery] The average BD overall increases from 2.74 to 2.89 due to the presence of stibnite (as represented by Sb%), an increase of 5.4%.

Note however that individual intercept BD increases by up to 50.4% (for the intercept assaying 60.2 Sb%) - this emphasises that the BD formula must be applied at the individual intercept level not for the overall intersection; The average Au grade increases from 4.84 g/t Au (weighted only for EHT) to 5.42 g/t Au (weighted for both EHT and BD), an increase of 12.1%; The average Sb grade increases from 7.51 Sb% (weighted only for EHT) to 9.15 Sb% (weighted for both EHT and BD), an increase of 21.9%; The average AuEq grade increases from 22.55 g/t (weighted only for EHT) to 27.01 g/t (weighted for both EHT and BD), an increase of 19.8%; The increase in Au grade is less than that for Sb as some of the gold occurs in quartz rather than in aurostibite within the stibnite; and All the individual intercept AuEq values that have been weighted for both EHT & BD and exceed 3.0 g/t AuEq are highlighted in red. All those less than 3.0 g/t AuEq are highlighted in grey. The three grey portions down the intersection total 0.525m, 0.129m and 0.249m EHT.

As all three portions are considerably less than 1.5m EHT (allowable waste EHT between stopes side by side), all three low-grade portions must be included in the mineable EHT and grades calculated/diluted accordingly.