Pacgold Limited provided an update on IP geophysics data processing and interpretation from the fourth quarter 2022 surveys on the Company's Alice River Gold Project (Project), 300km northwest of Cairns, North Queensland. IP geophysics completed in fourth quarter 2022 has extended the resistivity low `corridor' at the Southern Target 2 by an additional 2km to the southeast (below shallow sand cover), and now defines a compelling target that extends more than 3.8km. The Southern Target is located 2km south of the Central Target and is a broad gold system coincident with IP geophysics (resistivity low), reflecting the system's alteration and mineralisation character.

Three further IP geophysical surveys were completed on the Project in fourth quarter 2022, including the northern strike extension of the Central Target covering the Northern Target, the Posie Prospect (located 5km to the north-northwest of the Central Target), and the White Lion Prospect located 9.6km to the southeast of the Southern Target. Northern Target - Pole-dipole traverses (7 line km) were undertaken to infill the IP geophysical survey completed in 2021, extending 3.2km to the north of the Central Target. The survey has provided high resolution of the Alice River fault zone as a linear resistivity low and importantly has identified several areas of structural flexure (bends) or dilation zones which represent controls for the high-grade gold mineralisation at the Central Target.

Several parallel linear resistivity lows were also defined, interpreted to denote prospective parallel structures. Posie Prospect - The Posie Prospect is located 5km to the NNW of the Central Target. Previous exploration in the 1980s defined a NNW-trending shear zone containing high-grade gold mineralisation hosted in quartz veining, similar in nature to the F1a zone (Central Target).

Limited drilling was completed in the 1980s and approximately 1,500oz Au was mined from eluvial material on the surface 3. Selected previous drilling results include: 4.5m at 16.6g/t Au from surface (eluvial) and 4m at 11.5g/t Au from 22.5m (basement) (POD1); 2m at 26.1g/t Au from 46m (basement) (PDH02A); and 4m at 4.1 g/t Au from 19.3m (basement) (PDH012). A gradient array IP survey (20 line km) supplemented with two pole-dipole IP survey traverses (1.8 line km) across the mineralised structure at Posie has identified a strong resistivity low corridor on the mineralized structure. Importantly, the Posie resistivity low is now recognised as a parallel structure located 1km to the west of the main Alice River fault zone and is open.

This has significant upside for definition of further new mineralised zones along this regional structure. White Lion Prospect - The White Lion Prospect is located 10km to the ESE of the Southern Target. Previous exploration in the 1980s defined a zone of sub-outcropping quartz veining hosting gold mineralisation within a regional WNW-trending shear zone similar in nature to the Central Target (F1A zone).

The outcrop is limited to 500m and the host structure continues along strike beneath transported sand cover to the WNW and ESE. Three reconnaissance drillholes were completed in the 1980s to test the structure and all holes defined subsurface gold mineralisation, with results including: 20m at 0.40g/t Au from surface (ARAT-244); 4m at 0.60g/t Au from 16m (ARAT-245); and 2m at 0.90 g/t Au from 8m (ARAT-250). A gradient array IP survey (10 line km) was undertaken across the mineralised structure at White Lion, defining a strong WNW-trending resistivity low corridor on the mineralised structure.

The character of the resistivity low is very similar to that observed at the Central and Southern Targets and is interpreted to be an extension of the Southern Target resistivity low. Next Steps: Further IP geophysics (gradient array) to infill the zone between the Southern Target and the White Lion Prospect, and along the Posie structure will be planned and undertaken early in second quarter 2023. Selected structural zones of interest will be evaluated further with infill IP (pole-dipole) and geochemical programs to define drilling targets to be tested in third quarter 2023.

A re-evaluation of historical geochemical programmes and the project regolith is in progress. Previous explorers do not appear to have understood the importance of the regolith (depth and type of non-mineralised cover sediments which can mask the prospective basement rocks) in their interpretation of surface geochemistry data. Pacgold is developing a strong understanding of the nature of the regolith which will be key to the success of the design and interpretation of regional exploration programmes.