26 Nov

Chairmans Address to Shareholders

Nagambie Resources 2021 AGM Chairman’s Address CHAIRMAN’S ADDRESS BY MR MICHAEL TRUMBULL AT THE ANNUAL GENERAL MEETING OF NAGAMBIE RESOURCES LIMITED 11.00 AM (AEDT) ON FRIDAY 26 NOVEMBER 2021 Once again, good morning fellow shareholders and guests. The CEO, James Earle, will later be giving a presentation on the current status of our significant assets. I also trust that you have had the opportunity to read the 2021 Annual Report which was released on the 28 th of October. In this address, I’d like to cherry pick some of James’ topics and pose a few questions for shareholders and investors to consider – and hopefully I can join some of the dots. Firstly, what are our 3,300 sq km of Waranga Domain Gold Tenements worth? One of James’ slides will show these contiguous tenements on a map of Victoria. They represent a decent chunk of the State, and Nagambie Resources consider that they have significant value for reasons I’ll explain. The Fosterville and Nagambie mines and the Lockington gold mineralisation represent the largest examples to date of epizonal gold, quartz, pyrite, arsenopyrite and stibnite mineralisation in sediments in central Victoria – known as Fosterville-style mineralisation. A month ago, the Victorian Government announced that Kirkland Lake Gold, the current owner of the Fosterville Mine, had won three of the four gold blocks put out to open, international tender by the State. Those three blocks total 1,173 sq km in area and include the Lockington mineralisation discovered by Goldfields but subsequently dropped by that company. Nagambie Resources was delighted to learn that Kirkland Lake Gold has committed to spend $90 million over 5 years exploring that 1,173 sq km area. Nagambie Resources understands that over 30 gold exploration companies bid strongly for the four tender blocks. As only two companies were successful in the tender, it leaves a lot of unsuccessful bidders potentially looking for more Fosterville-style ground in Victoria. The biggest contiguous block of such tenements held by a junior is the 3,300 sq km holding of Nagambie Resources to the east of Fosterville / Lockington. Under our strategic agreement with Mawson Gold, as long as it holds 10% of Nagambie Resources’ shares on issue, it has a first-right-of-refusal over any tenements that we seek to joint venture. That is, we can explore any tenement 100% ourselves, we can arrange a joint venture with Mawson Gold over that tenement (as for the existing Whroo and Redcastle JVs), and Mawson Gold could match any JV offer made to us by a third party. Secondly, what is the Value of the Gold Toll Treatment Plant at the Nagambie Mine? As announced, Nagambie Resources and Golden Camel Mining received approval for the treatment plant in late August this year – a major achievement. Components for the CIL circuit arrived at the Nagambie Mine in October and Golden Camel have planned for the most critical component for the plant, the ball mill, to arrive on site today. Nagambie Resources 2021 AGM Chairman’s Address This is the first significant new oxide / sulphide gold treatment plant to be built in Victoria since the Costerfield plant in 1995 and the Fosterville plant in 2005. For commercial reasons, neither of those plants has ever been available, nor will be likely available in the future, for third-party toll treatment. Potential users of the Nagambie Mine plant currently include several existing deposits north of Bendigo, Mawson Gold’s Sunday Creek deposit to the south of Nagambie, Fosterville South Exploration’s Golden Mountain deposit to the east of Nagambie, and Golden Camel Mining’s deposits to the west of Nagambie – being Golden Camel, Toolleen, Shiraz and Bailieston. As well as providing significant sustainable income for Nagambie Resources from treating third party ore, the plant greatly improves the potential economics of our 100%-owned Nagambie Mine Feeder Zone target, the various gold targets being explored by Mawson Gold within the Whroo and Redcastle JV properties, and our remaining 100%-owned tenements in the Waranga Domain. Thirdly, what is the history of the Nagambie Mine Feeder Zone Target? Before Perseverance Mining ceased operations at the Nagambie Mine in the 1990s and moved to Fosterville, it drilled both to the east of the East Pit and west of the West Pit without success. Many years later, Nagambie Resources carried out geophysics and also drilled both east of the East Pit and west of the West Pit – again without success. Firmly believing that a feeder zone for the gold mineralisation in the East and West Pits must exist, we have persevered and been successful, in a somewhat surprising way. Very detailed logging of all the bedding strikes in all the relevant diamond drill holes to date has proved that the gold-hosting beds (predominately sandstones), the central anticline, and the various shear zones, all curve significantly to the south west of the West Pit. Depending on the interpretation of the gravity data, the compelling sulphide-gold target between the West Pit and the Wandean Crustal Fault (the obvious source of the mineralised, deep-crustal hydrothermal fluids) could be 1.3 km to 2.5 km in length. Once again, I would like to thank the Company’s very supportive and patient shareholders. The coming year will be transformational with the commissioning of the gold toll treatment plant at the Nagambie Mine and we continue to work hard on our other significant exploration and development projects, any or all of which could bear fruit in the coming year. I would also like to thank my fellow directors, the CEO and his team, our JV partners, and our expert consultants for another productive year, especially given the ongoing Covid- 19 issues. Mike Trumbull Executive Chairman

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