CHAIRMAN'S LETTER TO SHAREHOLDERS

16 November 2020
Chairman’s Letter to Shareholders

Dear Shareholder,
I write to you to today to provide an update on our strategy to grow the high-grade gold endowment at the Marymia Project in support of our ambitions of becoming a significant gold producer. A strategy implemented in 2017.
The Company is focused on the substantial expansion of its resource at Marymia by drill testing high-grade extensions to our current resources, as well as deeper ‘Plutonic’ style repeat targets. The Plutonic gold mine sits along strike to the southwest of Vango’s ground and has produced over 5.5Moz1.
This same geological setting is interpreted to continue for forty kilometres into our Marymia Project area, and the majority of this tenure remains un-tested by drilling – and represents a significant opportunity for Vango to exponentially grow its resource base. The Company’s current phase of drilling commenced in July and results to date are meeting expectations, with all areas drilled so far demonstrating strong potential to expand the Marymia resource.
Results are also pending from deep drilling beneath the Trident area, at a priority target called Neptune. This drilling was co-funded with the Western Australian Government’s Exploration Incentive Scheme, and results are due this month. The Neptune drilling represents the first of the large-scale Plutonic-style targets to be drilled and has the potential to deliver a step-change to the Marymia resource and in turn the scale of our anticipated future mining operations at Marymia.
In addition, drilling has also been conducted at the Ned’s Creek joint venture farm-in Project with Loadstar Minerals (ASX: LSR). The first of these results are expected shortly.
The Company notes that turnaround times for drilling results from the assay laboratory are currently impacted by the incredible amount of drilling activity in the Resources sector. Notwithstanding, with the above outlined drilling programs, Vango will deliver a strong ongoing newsflow of drill results to the market and shareholders over the coming months.
I would also like to take the opportunity to touch on the Company’s ongoing dispute with Dampier Gold (ASX: DAU, Dampier) in respect of the K2 Gold Deposit. Whilst it is not Vango’s policy to provide a running commentary, shareholders should be aware that the Company is entirely confident in its position – and also of its management of the dispute.
Earlier this month, our managing director Mr Andrew Stocks and I attended a mediation process with Dampier, designed to bring the parties together to work towards achieving a satisfactory outcome.
Vango entered the process with a desire to resolve the issue and despite our best endeavours, no settlement was reached. Nevertheless, Vango remains committed to seeking a resolution.
Unfortunately, Dampier’s announcements to the ASX, on the morning of the mediation, included what could be read as inflammatory statements to the effect that a Dampier director would fund Dampier’s legal costs in return for a substantial personal financial reward. In Vango’s view, the announcement appears to infer a priority to pursue litigation, rather than engage meaningfully in the mediation process - at least until such time the ‘funding for reward’ by the Dampier director is put before Dampier shareholders.
Vango reiterates its confidence in its position, and views Dampier’s continued stance as an attempt to confuse and muddy what is actually a transparent process in commercial law.

To the future
All success stories start with a vision and successful visions are based on strong pillars. Your Board have built strong pillars and have focused on executing its strategy. That is, to grow our resource base to underpin a significant gold mining centre at Marymia, to operate with a strong and debt-free balance sheet and to ensure that we have the appropriate skills on the Board and management team.
Ongoing drilling continues to confirm our modelling and realise the huge potential of the Marymia area. In parallel, discussions with other corporate participants in the area seeking value accretive outcomes is also a focus of the Board – with the aim of enhancing the pillar supporting the development of production capacity.
The Board and I look forward to delivering near-term results, including increasing the resource base and also reducing the time required to achieve first gold production at Marymia. At the time of this letter, the Company is debt free and last month we announced the appointment of Mr Matthew Keegan to the Vango Board. Matthew is a successful geologist and mining sector professional with a diverse background in operational and corporate roles spanning over 25 years. Finally, I encourage shareholders with any questions or comment in relation to our operations or strategies to contact me or any of our senior executives.

Thank you.
Bruce McInnes, Chairman
Vango Mining Limited