Troy Resources : Quarterly Report June 2022

QUARTERLY REPORT &

APPENDIX 4C

COMPANY UPDATE AND QUARTERLY CASH FLOW REPORT FOR ENTITIES SUBJECT TO LISTING RULE 4.7B FOR THE THREE MONTHS ENDED 30 JUNE 2022

21 July 2022

HIGHLIGHTS

• On 24 June 2022, the Company released its Notice of Annual General Meeting for 2021 and Notice of General Meeting for shareholders to approve the recapitalisation transactions.
• On 23 June 2022, the Company issued 16 million shares at $0.022 per share raising $0.35 million before costs.
• At the end of the June quarter, cash and equivalents totalled $0.34 million.
• The Karouni processing facility remains on care and maintenance.
• Pursuant to the Karouni Earn-in Agreement, Barrick Gold Corporation continues with its exploration programmes.
• The Company released its 2021 Annual Report and December 2021 Half Yearly Report bringing all required ASX announcements up to date.
• The Company announced that it had entered into a Definitive Agreement with PST Empreendimentos e Participações Ltda, a Brazilian company (PST) in respect of the lease and assignment of certain non-core mining rights in Brazil prospective for iron ore, which will see the Company receive the aggregate amount of US$4 million in staged payments. The first payment of US$200,000 was received by Reinarda Mineração Ltda (RML), a wholly owned subsidiary of Troy Resources Limited, in May 2022.

FOR THE THREE MONTHS ENDED 30 JUNE 2022

TROY RESOURCES QUARTERLY REPORT & APPENDIX 4C

OPERATIONS

KAROUNI, GUYANA (Troy 100% through Troy Resources Guyana Inc.)

Care and Maintenance

As previously reported, operations were placed into a period of care and maintenance from August 2021 following the depletion of open pit ore reserves. The period of care and maintenance is expected to last until the commencement of the Smarts Underground project and Hicks open pit extension.

The care and maintenance program continued with the defined schedule of weekly and monthly inspections on plant and mobile equipment to ensure the integrity and operability of the company's physical assets are maintained for both short- and long-term periods. The main power station remained offline to reduce environmental impacts and unnecessary costs, with power being supplied by portable generators installed at primary locations (camp, mill admin, processing plant). A fuel cost analysis was completed, reducing supply requirements ensuring sufficient quantities are available to supply critical operating assets and supporting infrastructure to Barrick and associated contractors. Operational resources were increased to review and develop operating philosophies to align with critical maintenance tasks for the restart of the processing plant, inclusive of yearly maintenance work executed on the projects power generation facility.

The camp continues to operate with a total population of between 50-60 personnel, including TRGI staff, camp support contractors and Barrick workers. TRGI staff number approximately 28 to support all associated infrastructure in respect of the care and maintenance program and site security. Barrick activities included geological field work and exploration drilling. Troy continues to provide support to Barrick with site services across the project, including the use of equipment along with maintenance, medical and security functions.

A minor number of sales and / or disposal of the remaining inventory of reagents and explosives, along with several pieces of redundant heavy equipment, was undertaken during the quarter. Ongoing steel recycling activities continued during the period sporadically, due to public access infrastructure being affected by the increased rainfall. Internal site housekeeping activities across the project continue, including all accommodation areas and surrounding operating areas. In addition, all pre-camp container housing units have been sold and demobilised from the premises. The site retains sufficient accommodation dwellings to house the existing workforce (including contractors and Barrick personnel). Additional accommodation will be scheduled to be constructed, aligned with the ramp-up strategy of the development and operations of the Smarts Underground. Initial cost analysis has been completed to align with manning forecasts.

The sale of items has resulted in A$0.4 million in sundry income during the quarter.

Health and Safety

During the quarter, there were no reportable (Medical Aid or Lost Time) or First Aid incidents. The Project experienced an equipment damage incident involving a third-party contractor operating on behalf of Barrick. A damaged transfer hose from the discharge of a small pump resulted in a smouldering event leading to the asset being damaged and unserviceable. An appropriate level of investigation was completed and presented to TRGI with the findings and actions which have been implemented.

FOR THE THREE MONTHS ENDED 30 JUNE 2022

TROY RESOURCES QUARTERLY REPORT & APPENDIX 4C

As at 30 June 2022, the 12-month rolling Total Recordable Injury Frequency Rate (TRIFR) was 3.1 and the 12-month rolling Lost Time Incident Frequency Rate (LTIFR) was 3.1. Despite having zero lost time or reportable incidents, both the TRIFR and LTIFR increased slightly over the last quarter. This is attributed to lower hours in the current quarter due to a decrease in exploration activities and a reduction of required contractors mobilising to the project to remove purchased assets. Employee hours for the period averaged 15,564 per month including TRGI staff, Barrick staff and contractors.

Environment

With the ceasing of operational activities and transitioning into care and maintenance activities, the priority was maintaining environmental compliance and implementing the revised monitoring requirements in the new permit. During the quarter, regular monitoring for noise, water pH and stream turbidity flow occurred. Due to cyanide not being utilised at the plant and the closure of the onsite lab, monitoring was not required. The previous full spectrum water sampling regime was carried out in late 2021. No significant variances were identified in the results. TRGI is working with environmental consultants and has achieved a reduced monitoring program granted by the Environmental Protection Agency (EPA). The amended frequencies have reduced unnecessary capital to be expended within the operation's current status of care and maintenance.

FOR THE THREE MONTHS ENDED 30 JUNE 2022

TROY RESOURCES QUARTERLY REPORT & APPENDIX 4C

All reporting has been submitted as per permit requirements.

Rainfall for the period was above the season average; however, it did not impact the operations negatively. Ongoing infrastructure maintenance continues with additional water dispersion drains were developed to account for the additional rainfall experienced at the end of the quarter.

Table 2: Historic Average vs. 2021/22 Rain Fall

HR and Community

The reduced workforce was maintained throughout the quarter to match operational requirements. As at 30 June 2022, the total TRGI workforce was 28 at site and 13 at the Georgetown office. Minor restructuring was implemented within the business, with additional support and operational skillset mobilised to site. A minimal manpower compliment continues to provide security, maintenance, and camp support services. All non-essential contractors have been demobilized except for those required for catering, fuel management, and medical services.

The Site Medical Centre remained in operation during the quarter and continued to provide medical services to the local communities. Approximately 47 community individuals were attended to during the reporting period. A majority of the community visits were related to testing for malaria and other tropical diseases. TRGI continues to retain one medical resource on site at all times - alternating between a doctor and a medic and remains as the only medically capable facility within the region.

During the quarter, illegal mining activity continues to occur across the site daily, in both Smarts and Spearpoint pits. TRGI has engaged the Ministry of Natural Resources (MNR) to assist with the managing of illegal mining within the current leased areas by the business. The MNR has dispersed two wardens to the Karouni project on a permanent bases for the near future, aiding in the ability to seize illegal mining equipment and issue legal proceedings for the Ministry. This introduction of the wardens has seen positive influence in mitigating the risk of illegal mining at the Karouni Project. TRGI will continue to engage with the government agencies regarding this problem and has implemented new security protocols to better manage the situation.

FOR THE THREE MONTHS ENDED 30 JUNE 2022

TROY RESOURCES QUARTERLY REPORT & APPENDIX 4C

Coronavirus

As at 30 June 2022, TRGI and associated contractors experienced zero cases of COVID-19.

At the end of March, the government removed restrictions requiring masks to be worn in public places. However, TRGI continues to implement preventive controls and measures across the site. Pre-flight antigen testing was re-instated in early January in response to increased case numbers in Guyana; however, the protocol was removed again in late March.

Overall, our COVID safety measures and risk management have been successful in preventing and / or limiting its affect, despite levels of COVID-19 infection in Guyana increasing during this period. To combat this trend, Troy continues to engage in active management of the COVID risk; preventative measures such as pre-flight screenings, wearing of masks and social distancing remain in effect and enforced for protection of employees, contractors and visitors.

DEVELOPMENT

SMARTS UNDERGROUND, GUYANA (Troy 100% through Troy Resources Guyana Inc.)

All pre-development work at the Smarts area was halted in September 2021 including dewatering of the pit.

Review of the geotechnical and mine design has been ongoing with opportunities for improvement in the stope designs and ventilation system identified.

EXPLORATION

KAROUNI, GUYANA (Troy 100% through Troy Resources Guyana Inc.)

No exploration activities of substance were undertaken by Troy during the quarter.

Barrick Gold Corporation (Barrick) continued to undertake exploration activities over the quarter. Barrick's activities during the quarter consisted of geological mapping, rock chip sampling, air core drilling, and establishment of access tracks in anticipation of further drilling, with work to date focussing on the Potaro area of interest. Refer to the ASX announcement of 20 June 2022 for further information regarding Barrick's activities over the fourth quarter of 2021 and the first quarter of 2022.