Sihayo Gold : Encouraging Surface Sample Results from Tambang Tinggi

ASX Announcement

6 April 2022

Encouraging Surface Sample Results from Tambang Tinggi

Highlights:

• • Anomalous gold and copper results returned from additional reconnaissance surface rock sampling over the Tambang Tinggi project area:

  • o 20 of 57 grab samples assayed >1 g/t Au, including five samples assaying from 13.1 to 36.6 g/t Au

  • o 19 of 57 grab samples assayed >0.2% Cu, including five samples assaying from 2.08 to 8.29% Cu in skarn type mineralisation

• • New results from Tambang Tinggi continue to support potential for high-grade gold and copper targets on the South Block of the Contract of Work (CoW)

• • Additional prospecting over other parts of the project area are in progress

Sihayo Gold Limited (ASX:SIH - "Sihayo" or the "Company") is pleased to announce the latest results from reconnaissance rock sampling in progress at Tambang Tinggi located in the northeast corner of the South Block of the PT Sorikmas Mining CoW in North Sumatra, Indonesia.

Sihayo's Executive Chairman, Colin Moorhead commented on the exploration results:

"Assay results from our surface sampling work on early-stage targets continue to demonstrate the exploration potential of the CoW. We continue to build a pipeline of exciting exploration base and precious metals targets across the CoW and will implement a structured approach to testing these targets."

Latest Results

Results were received for 57 reconnaissance grab samples taken from local mining muck piles and outcrops located surrounding and between the Tambang Tinggi and Tambang Ubi prospects. The encouraging results are summarised below and continue to highlight strong gold and copper anomalies associated with quartz-sulphide veins and skarns located with a >4 km by 1 km area along the Tambang Tinggi project area (refer to Figures 1 - 4 and Appendix 1 for a full list of results).

Highlights from these results include:

• ▪ 5 samples returned gold results ranging from 13.1 to 36.6 g/t Au

• ▪ 8 samples returned gold results ranging from 5.8 to 8.9 g/t Au

• ▪ 7 samples returned gold results ranging from 1.12 to 4.51 g/t Au

• ▪ 19 samples returned copper results >0.2% Cu, including 5 samples assaying from 2.08 to 8.29% Cu

The concentration of higher copper and associated gold results on the western side of the Tambang Tinggi project area is sourced from garnet-pyroxene-wollastonite-sulphide-magnetite skarns in Permian limestones. Gold-bearing quartz-sulphide veining cutting diorite intrusions is concentrated at the centre and eastern side of the Tambang Tinggi project and is associated with stronger arsenic and tellurium anomalism.

There is currently insufficient sampling density and grade representativity to comment on the potential geometry and size of the prospects at this stage. However, the apparent large distribution of local artisanal workings and consistency of gold and copper anomalies detected in rock chips taken to-date are encouraging for the potential to discover significant gold-copper deposits in the Tambang Tinggi project area.

Figure 1: PT Sorikmas Mining CoW - Tambang Tinggi Location Plan

Figure 3: Latest Rock Chip Sample Locations & Gold Results (ppm)

Background and Historical Work

The PT Sorikmas Mining CoW contains two large blocks of highly prospective exploration ground secured under long-term tenure. Multiple gold and polymetallic prospects have been defined by past exploration across the CoW area. The primary targets represent a diverse range of mineralisation styles including replacement-style sediment-hosted gold, epithermal gold-silver veins, intrusion-related quartz-sulphide veins, polymetallic skarns, and potentially porphyry-style copper-gold (Figure 5).

The initial focus for regional exploration over the past six months is in the northeast corner of the South Block of the CoW. This area contains multiple gold and base metal prospects highlighted by historic Dutch and more recent local artisanal mine workings. Regional stream sediment sampling completed during the late 1990s highlighted widespread gold and associated base metal anomalies along the Tambang Tinggi gold belt. It extends to the northwest and joins the Sihayo gold belt (Figure 6). The Tambang Tinggi gold belt features a complex zone of elevated regional magnetics associated diorite and granodiorite intrusions into volcanic and limestone basement rocks, which are partly overlain by dacitic volcanic cover rocks. These rocks are cut by multiple fault strands within the Trans Sumatran Fault Zone.

Figure 6: PT Sorikmas Mining CoW - Prospect Locations

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