Ann: Quarterly Report, page-2

Gold progressing well

The first 400m of NAD004 core was logged and samples of faulted and pyritic zones sent away for assay, while further samples were selected for later lithogeochemical analysis of the complete hole. Assay data and analysis for the first 400m should be available for release in coming weeks. Logging of the core between 400m and 836m down hole is nearly complete, with more sulphidic zones being observed

PASS progressing even better

Early in the March 2021 quarter, Nagambie Resources was requested by the same bidding consortium to give more detailed and specific pricing information than it had provided in early 2020. The Victorian Government has announced that its’ budget will be presented on 20 May 2021. The expenditure on NELP is expected by Nagambie Resources to be the biggest component of the “Big Build” spending in the budget forward estimates.

Bio leaching coming along well

Once the native bacteria have been extracted and characterised, laboratory-scale testing will commence to determine the bacteria's ability to leach gold from the heap leach material. Preparatory work in this regard has commenced with the chemical characterisation of the mine water and the milling and drying of the heap leach material. The design of the gold bioleaching experiments will be based on the results of the mine water characterisation. Bacteria strains from an external culture collection will also be analysed for their gold bioleaching capability on the heap leach samples. The necessary chemicals and bacterial cultures have now been sourced for this work.

A perfect storm is brewing