--

3 March 2022

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS STIPULATED UNDER THE UK MARKET ABUSE REGULATIONS.  ON PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS INFORMATION IS CONSIDERED TO BE IN THE PUBLIC DOMAIN.

Greatland Gold plc

("Greatland" or "the Company")

Updated Mineral Resource substantially increases Havieron Resource and Reserve

Mineral Resources (including Ore Reserves) increase to 5.5M oz Au and 218kt Cu or 6.5M oz AuEq¹,

 an increase of 2.1M oz AuEq¹ since the last Mineral Resource update

Probable Ore Reserves now stand at 2.4M oz Au and 109kt Cu or 2.9M oz AuEq¹,

compared to the 1.7M oz AuEq¹ in the Initial Ore Reserve estimation

Initial Mineral Resource estimated in the Eastern Breccia

Updated Mineral Resource incorporates an additional 10 months of consistently impressive drilling results since the February 2021 drilling cut-off used for the last Mineral Resource update

Havieron Mineral Resource Update Highlights*

§ A 53% increase in total gold content to 5.5M oz Au (6.5M oz AuEq¹)

§ A 63% increase in Indicated Mineral Resource gold ounces to 3.1M oz Au

§ An Initial Inferred Mineral Resource estimated at the Eastern Breccia

§ Mineral Resources include 33Mt @ 3.28 g/t Au and 0.48% Cu (containing 3.5M oz Au and 158kt Cu or 4.2M oz AuEq¹) in the South East Crescent Zone

§ Update has been subject to a detailed analysis and review, independently assessed by SRK Consulting and are reported in compliance with JORC (2012) guidelines    

Updated Mineral Resource estimate for the Havieron Deposit (100%)^#

^# Results are reported to one (gold) and two (copper) significant figures to reflect appropriate precision in the estimate, and this may cause some apparent discrepancies in totals. Results represent 100% of the Mineral Resource for Havieron. Mineral Resources in the Crescent are reported within a A$80 NSR/t shell while Mineral Resources in the Breccias are reported within a A$50 NSR/t shell. Resources are inclusive of Reserves.

* The Updated Mineral Resource Estimates assume selective mining of the South East Crescent Zone and bulk extraction in the Breccias and are reported inside A$80 or A$50 Net Smelter Return/t² ("NSR/t") shells respectively.

Havieron Ore Reserve Update Highlights

§ 50% increase in contained gold ounces to 2.4M oz Au (2.9M oz AuEq), including an 86%³ conversion of Indicated Mineral Resources to Probable Ore Reserves

§ The conversion rate of the South East Crescent Zone reiterates the robust nature of the South East Crescent Zone within the Havieron deposit while providing confidence in the ongoing conversion of further South East Crescent Zone material as drilling continues

§ Update has been subject to a detailed analysis and review, independently assessed by SRK Consulting and are reported in compliance with JORC (2012) guidelines  

Updated Ore Reserve estimate tabulation for the Havieron Deposit (100%)^

^ Data is reported to one (gold) or two (copper) significant figures to reflect appropriate precision in the estimate and this may cause some apparent discrepancies in totals. Data represents 100% of the Ore Reserve for Havieron. Ore Reserves are reported above a cut-off of A$95 NSR/t and reported within mining shapes based on a sub-level open stoping mining method. All reported metal was derived from the South East Crescent Zone only.

Greatland Gold plc (AIM:GGP), a leading mining development and exploration company with a focus on precious and base metals, is pleased to provide an independently assessed update on the Mineral Resources and Ore Reserves at the Havieron gold-copper deposit in the Paterson region of Western Australia. The update is based on increased drill density throughout the deposit with a further 87 drill holes for 59,270m completed since the last Resources and Reserves update published in the Pre-Feasibility Study ("Stage 1 PFS"), which used drill data up to February 2021.

Havieron Growth

§ This Resource update is at a 'point in time', with a 2 December 2021 cut-off for drilling information used to inform the Mineral Resource Estimate

§ Drilling is ongoing, with extension drilling targeting the South East Crescent Zone at depth, while growth drilling targeting the Eastern Breccia is underway with initial high grade intersections, evidenced by HAD104⁶ being comparable to those seen at the South East Crescent Zone, demonstrating a promising start

§ Drilling is also underway to continue to assess the broader Havieron breccia system's suitability for a bulk mining approach

§ Concurrent studies underway to assess production rates greater than 3 million tonnes per annum ("Mtpa")

§ Targeting a further 40,000m of growth drilling in the year to 30 June 2022 which has the potential to further expand the Havieron resource

Shaun Day, Chief Executive Officer of Greatland Gold plc, commented: "This Mineral Resource and Ore Reserve update represents a considerable increase on that which was defined in the Stage 1 PFS.  The update has unearthed further aspects of the Havieron system and validates that Havieron is a world class deposit with significant growth potential. Through an independently verified analysis, the total Mineral Resource at Havieron has increased to 6.5M oz of gold equivalent, an increase of almost 50% in 10 months of drilling.

The exceptional 86% rate of conversion of Mineral Resources to Ore Reserves demonstrates the quality of the high grade South East Crescent Zone at Havieron.

The South East Crescent Zone Mineral Resource is now defined to around 1,000m vertical extent below the Permian and still open at depth. In addition, high grade intercepts are delineated below this level, which further supports the potential for future Mineral Resource and Ore Reserve growth.

In addition to the Mineral Resources within the Havieron Breccia complex, growth drilling has now defined an initial Mineral Resource within the separate Eastern Breccia complex. This is the first Mineral Resource in a mineralised system outside the Havieron Breccia system and remains open at depth and to the south. This Eastern Breccia Mineral Resource does not capture the recent high grade intercepts to its south, which is of similar grade to the South East Crescent Zone.

With an ongoing and substantial expansion drilling campaign continuing, there is every opportunity to deliver more growth to the Mineral Resource and Ore Reserve as we continue to better understand the extent of mineralisation across the broader Havieron zonation.

The investment proposition for Greatland remains compelling, with this further understanding of the quality and scale of Havieron supported by this new Mineral Resource update. With Havieron in a Tier One mining jurisdiction, under development with a major partner in Newcrest, located near existing infrastructure and a study indicating modest capex and low operating cost, this confluence of factors position Havieron as a tremendous and globally unique asset."

Company's updated Mineral Resource and Ore Reserve estimate

Mineral Resource and Ore Reserve estimates are expressions of judgement based on knowledge, experience and industry practice.  They are also based on a number of material assumptions (such as future commodity prices and foreign exchange, cut off grades, future capital and operating costs and development timeline) which may prove to be incorrect.  Estimates which were valid when originally made may alter significantly when new information or techniques becomes available.  In addition, by their very nature, Mineral Resource and Ore Reserve estimates are imprecise and depend to some extent on interpretations, which may prove to be inaccurate.  Unless and until actually mined and processed, no assurance can be given that any estimated tonnage, grades and recovery levels will be realised or that any Ore Reserves will be mined or processed economically.

This announcement and the updated Mineral Resource and updated Ore Reserve estimates for the Havieron Project contained in it have been prepared solely by Greatland based on relevant available information and has not been reviewed by Newcrest Mining Limited ("Newcrest").   A subsidiary of Newcrest is the manager of the Havieron Joint Venture and holds the majority participating interest in that joint venture (currently 60% with an entitlement (subject to the terms of the Joint Venture Agreement) to an additional 10% interest and an option to acquire a further 5% interest at fair market value).  Whilst the information in this announcement pertaining to the estimation and reporting of Mineral Resources and Ore Reserves has been reviewed and approved by relevant Competent Persons⁴ and the updated Mineral Resource and updated Ore Reserve estimates have been independently assessed by SRK Consulting (Australasia) Pty Ltd5, the Company considers that it is possible that: (i) in preparing any future resource and reserve estimates for the Havieron Project,  Newcrest may adopt different interpretations, assumptions, parameters or plans, or make different judgements, to those used or made by Greatland in the updated Mineral Resource and Updated Ore Reserve estimates contained in this announcement and (ii) the Havieron Joint Venture may choose to carry out its operations (including the development of the Havieron Project) in a manner different to the assumptions used in the updated Mineral Resource and updated Ore Reserve estimates contained in this announcement.

Forward Looking Statements 

This document includes forward looking statements and forward looking information within the meaning of securities laws of applicable jurisdictions. Forward looking statements can generally be identified by the use of words such as "may", "will", "expect", "intend", "plan", "estimate", "anticipate", "believe", "continue", "objectives", "targets", "outlook" and "guidance", or other similar words and may include, without limitation, statements regarding estimated reserves and resources, certain plans, strategies, aspirations and objectives of management, anticipated production, study or construction dates, expected costs, cash flow or production outputs and anticipated productive lives of projects and mines. 

These forward looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance and achievements or industry results to differ materially from any future results, performance or achievements, or industry results, expressed or implied by these forward-looking statements. Relevant factors may include, but are not limited to, changes in commodity prices, foreign exchange fluctuations and general economic conditions, increased costs and demand for production inputs, the speculative nature of exploration and project development, including the risks of obtaining necessary licences and permits and diminishing quantities or grades of reserves, political and social risks, changes to the regulatory framework within which Greatland operates or may in the future operate, environmental conditions including extreme weather conditions, recruitment and retention of personnel, industrial relations issues and litigation. 

Forward looking statements are based on assumptions as to the financial, market, regulatory and other relevant environments that will exist and affect Greatland's business and operations in the future. Greatland does not give any assurance that the assumptions will prove to be correct. There may be other factors that could cause actual results or events not to be as anticipated, and many events are beyond the reasonable control of Greatland. Readers are cautioned not to place undue reliance on forward looking statements, particularly in the current economic climate with the significant volatility, uncertainty and disruption caused by the COVID-19 pandemic. Forward looking statements in this document speak only at the date of issue. Greatland does not undertake any obligation to update or revise any of the forward looking statements or to advise of any change in assumptions on which any such statement is based.

¹ The gold equivalent (AuEq) is based on assumed prices of US$1,450/oz Au and US$3.23/lb Cu for Ore Reserve and assumed prices of US$1,600/oz Au and US$3.50/lb Cu for Mineral Resource and metallurgical recoveries based on block metal grade, reporting approximately at 88% for Au and 84% for Cu which in both cases equates to a formula of approximately AuEq = Au (g/t) + 1.5 * Cu (%). It is the company's opinion that all the elements included in the metal equivalents calculation have a reasonable potential to be recovered and sold.  

² The Net Smelter Return ("NSR") is calculated using metals prices of US$1,600/oz Au and US$3.50/lb Cu, metallurgical recoveries based on block metal grade reporting approximately at 88% for Au and 84% for Cu, an USD:AUD exchange rate of 0.73, as well as treatment and refining costs, payables and royalties, similar to those in the Stage 1 PFS.

³ The Mineral Resource Conversion rate is based on the conversion of contained metal within the Indicated Mineral Resource to contained metal within the Ore Reserves, this calculates to 86%.

⁴ See Competent Persons Statement below for details.

⁵ See Sections 3 and 4 of Appendix 1 below for details.

⁶ Refer to announcement "Havieron Exploration Update" dated the 28 January 2022.

Enquiries:

Further Information on the Updated Mineral Resource and Updated Ore Reserve at Havieron

Project Details

The Project containing the Havieron Au-Cu deposit is centred on a deep magnetic anomaly 45km east of Telfer in the Paterson Province on the traditional lands of the Martu people. The Project is held in a joint venture between Greatland and Newcrest Mining Limited ("Newcrest"), where Newcrest currently holds a 60% joint venture interest and is entitled (subject to the terms of the Joint Venture Agreement) to an additional 10% interest, giving an aggregate interest of 70% (Greatland 30%).

Newcrest may also acquire an additional 5% joint venture interest at fair market value (under the principles of the Joint Venture Agreement) and, if exercised, Newcrest will be entitled to an overall joint venture interest of 75% (Greatland 25%).  As detailed in the announcement of 21 December 2021, Newcrest has issued a notice to Greatland informing it that Newcrest would like to begin the process under the joint venture agreement to seek to agree or, failing agreement, determine the option exercise price.  The Joint Venture commenced drilling during mid-2019 and has completed 272 drill holes for 226,492m (at 28 January 2022), with up to eight drill rigs in operation on the Project.

The Martu people and the Western Desert Land Aboriginal Corporation (WDLAC) are key project stakeholders. The Martu hold exclusive possession native title rights and interests over more than 130,000 km² of land, including to all points around the Telfer mine and Havieron Project. The Indigenous Land Use Agreement (ILUA) with WDLAC, centred on the Telfer mine, extends to the Havieron project.

The Project is located within granted Mining Lease M45/1287 and has received the necessary regulatory approvals for the construction of a box cut, exploration decline and associated surface infrastructure, with these works formally commencing in January 2021. The Stage 1 PFS released 12 October 2021 has outlined the next stage of the Project which comprises a Feasibility Study into the underground and surface development to establish the initial mining area at Havieron and ore processing at Telfer.

The Stage 1 PFS assessed mining production methods including Sub Level Open Stoping ("SLOS") with mining rates of 2 Mtpa to 3 Mtpa and caving options up to 6 Mtpa. Surface infrastructure studies were focused on the transportation of ore to the Telfer processing plant with a range of options considered in early-stage evaluations including conveyor, rail, pipeline and truck haulage, with the latter adopted for the Ore Reserve estimate used in the Stage 1 PFS. Processing studies evaluated a modified Telfer process plant to accommodate the Havieron ore.

The Stage 1 PFS demonstrated the potential to expand the Project and increase the mining rate to 3 Mtpa or more based on the upgrading of the October 2021 Inferred Mineral Resources and additional potential Mineral Resource growth from immediately below the South East Crescent Zone.

This release documents an update prepared solely by Greatland to the Resources and Reserves documented in the Stage 1 PFS and has not been reviewed by Newcrest. It is the preference of Greatland to update the Project's Mineral Resource and Ore Reserve estimates in line with Newcrest; however, in the context of Greatland's current investigation of potential financing options, and other Project decisions it may be required to make, it was considered necessary for the Company to undertake its own analysis (the last Havieron Mineral Resource and Ore Reserve update being released as part of the Stage 1 PFS with a 5 February 2021 cut-off for drilling information).

Updated Mineral Resource Estimate

The updated Mineral Resource estimate for the Havieron Deposit prepared by Greatland (Table One) ("Updated Mineral Resource") is based on drilling completed to 2 December 2021, comprising 311 holes for 209,911m, inclusive of 87 holes for 59,270m which are additional to the drilling data used in the Stage 1 PFS Mineral Resource and Ore Reserve estimates released on 12 October 2021. 

Table One: Updated Mineral Resource estimate tabulation for the Havieron Deposit (100%)#:

^# Results are reported to one (gold) and two (copper) significant figures to reflect appropriate precision in the estimate, and this may cause some apparent discrepancies in totals. Results represent 100% of the Mineral Resource for Havieron. Mineral Resources in the South East Crescent Zone are reported within a A$80 NSR/t shell while Mineral Resources in the Breccias are reported within a A$50 NSR/t shell.

The Updated Mineral Resource estimates are reported as Indicated and Inferred Mineral Resources in accordance with the 2012 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code). The reported Updated Mineral Resources are inclusive of Ore Reserves. Refer to details in Appendix 1 (JORC Table 1 - Sections 1 to 3) for more information relating to data collection and resource estimation.

The Updated Mineral Resource represents a significant increase on the Mineral Resources defined in the Stage 1 PFS (which was prepared at a 'point in time' using a 5 February 2021 cut-off for drilling information) including:

§ A 75% increase in total (Indicated plus Inferred) tonnes;

§ A 53% increase in total gold content; and

§ A 63% increase in gold ounces in the Indicated category.

Material differences between the Updated Mineral Resource and the previously announced Stage 1 PFS Mineral Resource are as follows:

§ A further 38,088 metres of infill drilling completed in the approximately 10 months since 5 February 2021 to 2 December 2021 within the South East Crescent Zone. This drilling validated both geological and grade continuity of the Stage 1 PFS South East Crescent Zone Mineral Resource, converting some Inferred Resource to Indicated Resource;

§ Growth drilling (21,182 metres completed since 5 February 2021 to 2 December 2021) which returned further high-grade results with the South East Crescent Zone now having a vertical extent of over 1,000 metres and extending to over 200 metres below the earlier Stage 1 PFS Mineral Resource;

§ The Updated Mineral Resource has been calculated using an A$80 NSR/t value cut-off for the Crescent material, compared with a A$100 NSR/t cut-off used in the Stage 1 PFS estimation. Due to the high NSR value of the majority of the South East Crescent Zone material this change is not considered to have resulted in a material change in the resources;

§ While different commodity prices have been used (US$1,600/oz Au and US$3.50/lb Cu and a USD:AUD exchange rate of 0.73 for the Updated Resource estimate compared with US$1,400/oz Au and US$3.40/lb Cu and a USD:AUD exchange rate of 0.75 used in the Stage 1 PFS), due to the high NSR value of most of the South East Crescent Zone material this change is not considered to resulted in a material change in the South East Crescent Zone Resources.  The increase in the Breccia Mineral Resources within the Havieron Breccia are a result of additional drilling and some effect of the commodity price variation between the models; and,

§ The Eastern Breccia Resource, which forms part of the Updated Mineral Resource was not part of the previous Stage 1 PFS Mineral Resource.

Based on drilling to date the Havieron deposit comprises an ovoid shaped body of variable brecciation, alteration and sulphide mineralisation with dimensions of approximately 650m x 350m trending in a north-west orientation, extending to over 1,100m in depth below 420m of Permian cover.

Within this ovoid body a sulphide rich South East Crescent Zone has been defined, it is 5-40m wide, extending over 700m in length (when unfolded in plan just below the basement contact) and defined over 1,000m vertically, tapering to ~600m in length (unfolded) at this depth and still open at depth. The South East Crescent Zone has continued to be the focus of drilling and has been progressively  infilled to a nominal drill spacing of 50m for the Indicated Mineral Resources, and 75m spacing for the Inferred Mineral Resources.

Gold and copper mineralisation at Havieron consists of breccia, vein and massive sulphide replacement gold and copper mineralisation typical of intrusion-related styles of mineralisation. Mineralisation is hosted by metasedimentary rocks (meta-sandstones, meta-siltstones and meta-carbonate) and intrusive rocks of an undetermined age. The main mineral assemblage contains well developed pyrrhotite-chalcopyrite and lesser pyrite sulphide mineral assemblages as breccia and vein infill, and massive sulphide lenses.

The Eastern Breccia complex comprises a second, separate body of mineralisation located on the northeast margin of the ovoid body developing around the 4000mRL (850m below the Permian unconformity), but open at depth and along strike. The Eastern Breccia comprises broad zones of actinolite cemented breccia hosted in metasediment rocks, with more abundant vein quartz and less calcite breccia than the main Havieron deposit breccias. The Eastern Breccia Mineral Resource is drilled to a nominal 75m x 75m spacing. Infill and extension drilling of the Eastern Breccia is ongoing.

The Indicated Mineral Resource estimate includes material from the South East Crescent Zone and adjacent Breccias only. The Inferred Mineral Resource estimate is comprised of some South East Crescent Zone, the adjacent Breccia Zones, a portion of the Northern Breccia to an RL of 3950m (~850m below the Permian unconformity) and the Eastern Breccia where drill data provides sufficient support to define an appropriate level of geological control and statistical confidence.

Ordinary Kriging of 5m composites of gold and copper was undertaken into  20m x 20m x 20m blocks and re-blocked into 4m x 4m x 4m blocks where required. The Mineral Resource model was domained utilising the geological units defining the South East Crescent Zone, the Cemented Breccia and Crackle Breccia. Hard boundaries were used between the Crescent Zone and the Breccia Zones and a transitional boundary of around 20m was used between the Breccia Zones. Kriging Neighbourhood Analysis was used to define the search neighbourhood for gold. Gold, copper and bismuth were estimated independently of each other. Composite copper, gold and bismuth grades were capped prior to estimation. Within the Havieron Breccia complex the resource estimation is based entirely on interpolation while the Eastern Breccia complex, which is considered a separate system, is based on 70% interpolated and 30% extrapolated blocks (which is defined as the nearest informing composite being more than 30m away and estimated by data from fewer than 4 drillholes) representing the early stage of resource definition in this area. The Mineral Resource model was validated via visual, statistical, and geostatistical methods.

The Indicated and Inferred Mineral Resource estimate has been constrained using appropriate drill hole data spacing parameters and geological control.  Resource classification is based on average weighted distance and slope of regression statistics for estimated gold grades.  The Indicated Mineral Resource classification within the South East Crescent Zone is reported based on the evaluation of nominal thresholds of the average weighted distance (45m) and slope of regression (>0.6) and with blocks lying within an A$80 NSR/t shell. The Inferred Mineral Resource classification within the South East Crescent Zone is reported based on the evaluation of nominal thresholds of the average weighted distance (75m) and slope of regression (>0.3) and with blocks lying within an A$80 NSR/t shell.

The Indicated Mineral Resource classification within the Breccias is reported on the evaluation of nominal thresholds of the average weighted distance (30m) and slope of regression (>0.6) within an A$50 NSR/t value shell with no internal selectivity, which assumes bulk mining and therefore includes internal waste. The Inferred Mineral Resource classification within the Breccias is reported on the evaluation of nominal thresholds of the average weighted distance (75m) and slope of regression (>0.3) within an A$50 NSR/t value shell with no internal selectivity, which assumes bulk mining and therefore includes internal waste.

The NSR uses metals prices of US$1,600/oz Au and US$3.50/lb Cu, metallurgical recoveries based on block metal grade, reporting approximately at 88% for Au and 84% for Cu, an USD:AUD exchange rate of 0.73, as well as treatment and refining costs, payables and royalties, similar to those used in the Stage 1 PFS.

Reasonable prospects for eventual economic extraction have been assessed through ongoing mining and processing studies which suggest that selective underground mining would be appropriate for exploitation of the South East Crescent Zone, while less selective underground mining would be appropriate for the exploitation of the mineralised Breccia Zones. There are no known environmental, social, governmental / regulatory or legal barriers to declaring this Mineral Resource.

Updated Ore Reserve Estimate

The updated Havieron Ore Reserve estimate prepared by Greatland ("Updated Ore Reserve") is reported as a Probable Ore Reserve in accordance with the 2012 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code). For more details regarding the Ore Reserve estimation process, refer to Appendix 1 (JORC Table 1 - Sections 4).  The Updated Ore Reserve contains 25 Mt at 3.0 g/t Au and 0.44% Cu for 2.4M oz of gold and 109 kt of copper (Table Two).

Table Two: Updated Ore Reserve estimate tabulation for the Havieron Deposit (100%)^{^}:

^{^} Data is reported to one (gold) or two (copper) significant figures to reflect appropriate precision in the estimate and this may cause some apparent discrepancies in totals. Data represents 100% of the Ore Reserve for Havieron. Ore Reserves are reported above a cut-off of A$95 NSR/t and reported within mining shapes based on a sub-level open stoping mining method. All reported metal was derived from the South East Crescent Zone only.

This is a significant increase to the Ore Reserves contained in the Stage 1 PFS (prepared at a 'point in time' using a 5 February 2021 cut-off for drilling information), including:

§ A 50% increase in total gold content;

§ A 84% increase in Reserve tonnes; and,

§ A 86% conversion of Au Metal within the South East Crescent Zone Indicated Resource to Probable Reserve.

Material differences between the Updated Ore Reserve and the previously announced Stage 1 PFS Ore Reserve are as follows:

§ The increased drilling completed in the period 5 February 2021 to 2 December 2021, both infilling and extending the Indicated Mineral Resources defined in the South East Crescent Zone and adjacent Breccias;

§ The Updated Ore Reserve has been calculated using a break even cut off value of approximately A$95/t milled, and a marginal cut off value of approximately A$80/t milled, compared to a A$130 NSR/t cut-off used in the Stage 1 PFS Ore Reserve.  The reduced cut-off was calculated from first principles and the reduction is primarily as a result of increased throughput from 2 Mtpa to 3 Mtpa, the latter being in line with the Stage 1 PFS Investment Case carried forward into the Feasibility Study as part of the Forward Works Program; and

§ Metal price changes from U$1,300/oz to U$1,450/oz for gold, U$3.0/lb to U$3.23/lb for copper and exchange rate from 0.75 to 0.73 USD per AUD.  These changes had a non-material impact on the overall Ore Reserve as the majority of the South East Crescent Zone material are well above cut-off value at both price points.  Lower grade material is more sensitive to price assumptions but makes up a non-material portion of the Ore Reserve.

The Updated Ore Reserve is based on a SLOS mining method with paste fill and truck ore haulage at a 3 Mtpa mining rate. Metallurgical test-work has been executed on samples taken from the Havieron deposit during the Stage 1 PFS and in preceding studies. The test-work undertaken is of an adequate level to ensure an appropriate representation of metallurgical characterisation and the derivation of corresponding metallurgical recovery factors.

The Havieron site does not currently have infrastructure to support mining operations. Major infrastructure requirements are included in the Stage 1 PFS capital cost estimates, which are based on multiple market prices across all technical disciplines. Provision has been made for capital expenditure requirements for new equipment, infrastructure and replacement of infrastructure and equipment during the life of the mine is based on the Stage 1 PFS. A contingency has been factored into the capital cost estimate consistent with the level of accuracy of the Stage 1 PFS.

The Updated Ore Reserve is based on the Stage 1 PFS cost estimates.  The Stage 1 PFS cost estimates have been built up from a combination of existing Telfer site costs scaled for the Havieron material throughput rate, first principles cost modelling and quotations where practicable. 

The Probable Ore Reserve is based on Indicated Mineral Resources and diluting material only.  Metal for Inferred Mineral Resource material was not considered for the Updated Ore Reserve and did not contribute to the mine design or economic evaluation. No Measured Mineral Resources are stated for this deposit and therefore no Proved Ore Reserves were estimated.

The Updated Ore Reserve has been prepared in line with the following bases used in the Stage 1 PFS:

§ decline, accesses to the levels, ore passes, ventilation raises and other underground excavations;

§ Sub-level open stoping (SLOS) stopes with paste fill;

§ paste fill plant and underground distribution system;

§ ventilation shafts, fans, regulators and refrigeration equipment;

§ dewatering, electrical and other service equipment; and

§ truck haulage of ore to surface via the access decline.

The following Modifying Factors have been applied to all production shapes to accurately represent the expected mined tonnes and grades:

§ dilution factors for unplanned overbreak in primary, secondary and tertiary stopes (average 9%) consisting of waste (average 6%) and stope paste (average 3%);

§ dilution included at zero grade; and

§ mining recovery factor of 97.5%.

The Updated Ore Reserve includes approximately 2.4 Mt of Inferred Mineral Resource as dilution. The metal contained in this material was not considered and did not contribute to the economic assessment or metal reported in the Updated Ore Reserve.

Havieron ore is anticipated to be processed on a campaign basis through the existing Telfer Train 2 Treatment Plant circuit (consistent with the Stage 1 PFS) and at a throughput of approximately 3 Mtpa.  Metal recovery is expected to be through conventional flotation to produce a copper/gold concentrate and gold doré through a newly installed flotation tails carbon-in-leach (CIL) circuit. The technology associated with the ore processing is conventional and the flowsheet is similar to that utilised by other operations.

Metallurgical recovery assumptions are based on detailed analysis and laboratory flotation and leach test work completed on 38 variability samples during the Havieron Concept Study (2020) and Stage 1 PFS (2021) with good spatial coverage of the South East Crescent Zone. Of the 38 samples, 8 samples are located in the Breccia Zones and 30 samples are located in the South East Crescent Zone, of which 21 samples are located within the Stage 1 PFS South East Crescent Zone Indicated Mineral Resources.  Based on these samples metallurgical recoveries for gold are anticipated to average approximately 88% and recoveries of copper are expected to average approximately 84% throughout the life of the project.

Bismuth is the key deleterious element for the gold/copper concentrate product with potential smelter penalties incurred on the basis of bismuth content above a threshold level. The impact of bismuth in concentrate is anticipated to be managed by mine sequencing and concentrate blending.

The Updated Ore Reserve employs a value-based cut-off determined from the NSR value equal to the site operating cost included within the Stage 1 PFS. The NSR calculation takes into account revenue factors, metallurgical recovery assumptions, transport costs, refining charges, and royalty charges.

The NSR uses metals prices of US$1,450/oz Au and US$3.23/lb Cu, metallurgical recoveries based on block metal grade, reporting approximately at 88% for Au and 84% for Cu, an USD:AUD exchange rate of 0.73, as well as treatment and refining costs, payables and royalties, similar to those used in the Stage 1 PFS.

Detailed environmental studies have been undertaken in the Havieron project area and include flora and vegetation, fauna, subterranean fauna, waste rock characterisation, soil and landform study, surface hydrology assessment, a basic hydrogeological assessment and a greenhouse gas emissions study.

The Havieron project has been designed to recognise biodiversity values and, through consultation with Martu and their native title corporation (WDLAC), minimise the impacts to sites and landscapes of cultural significance. The footprint for the Project has been minimised through the use of existing tracks and areas of disturbance, as well as utilising the existing Telfer Gold Mine infrastructure to process the ore and dispose of the tailings material.

Waste rock characterisation has been undertaken and shows that it contains material which has potentially acid forming (PAF) and metalliferous drainage, in addition to dispersive or saline material. The portion of PAF material is less than 1% of total waste volumes. Waste dumps have been designed for the life of mine that have incorporated cells to safely encapsulate the PAF material. The waste dump is to be located near the boxcut to minimise haulage distance and considering the local surface terrain and environmental and cultural aspects.

The site operating costs include mining cost, processing cost, relevant site general and administration costs and relevant sustaining capital costs. These costs equate to a break even cut off value of approximately A$95/t milled, and a marginal cut off value of approximately A$80/t milled.

Estimation of the Updated Ore Reserve involved standard steps of mine optimisation, mine design, production scheduling and financial modelling. Factors and assumptions have been based on benchmarked performance from similar SLOS operations. The Updated Ore Reserve has been evaluated through a financial model. All operating and capital costs as well as Ore Reserve revenue factors stated in this document were included in the financial model. A discount factor of 4.5% real was applied. This process demonstrated that the Updated Ore Reserve has a positive NPV. Sensitivities were conducted on the key input parameters including commodity prices, capital and operating costs, ore grade, mined tonnes, exchange rate and metallurgical recoveries confirming the estimate to be robust.

Newcrest stated on 17 February 2022 as part of their Half Year Results Update that the decline experienced difficulty in poor ground conditions during the early stages.  The team is working to understand the impact on the development schedule and this may also impact on vertical development.  First production ore is expected in FY24 (rather than H1 FY24) and more updates will be provided as information comes to hand.

Approvals

A mining lease has been granted over the orebody and a miscellaneous licence granted along the existing service corridor.

A staged approach for approvals is being undertaken with Stage 1 currently approved which has allowed the development of the box cut, decline and service corridor. These approvals also allow for a waste rock dump, evaporation ponds and supporting infrastructure such as offices and workshops.

Stage 2 approvals are expected to consist of a SLOS underground mine, permanent infrastructure corridor, associated infrastructure and changes to Telfer approvals to accept Havieron tailings in existing tailings storage facilities. The approvals for Stage 2 consist of both Commonwealth and State level approvals with engagement well advanced with all regulatory bodies. The approval timelines outlined in the Stage 1 PFS are considered achievable.  

For Stage 2 approvals an application is expected to be made for an additional miscellaneous licence to secure access for an infrastructure corridor to connect Telfer and Havieron (including haul road, powerlines and water pipes). This is not considered a risk to the timelines or project.

Indicative Production Profile (100% terms)

The Updated Ore Reserve is based on the updated Indicated Mineral Resource estimate and approximately 3 Mtpa underground SLOS operation with an expected mine life of 10 years. Ore is proposed to be transported in trucks along a new 55km long haul road to the modified processing plant at the Telfer mine and tailings deposited at Telfer's existing tailings storage facility (TSF).

Multiple stope priority runs were conducted to determine the optimal sequence which maximised the number of years at peak production while reducing and compressing the production tail as much as practical. The production rate of 3 Mtpa for the Havieron SLOS was determined by maximising the steady state production of the sequence.

Table Three: Indicative Updated Ore Reserve Production Profile*:

^*Data is rounded to two decimal places, which may cause some apparent discrepancies in totals. Data represents 100% of the Ore Reserve for Havieron.

Mine Development and Sequence

Sub-Level Open Stoping (SLOS) is a large-scale open stoping method that is conducted over multiple levels at once. Once the stope has been mined out it is backfilled with paste to maintain the overall stability of the opening and enable mining of adjacent stopes. This method is typically applied to strong orebodies that require minimal support and are surrounded by competent country rock, such as the Havieron deposit. Stopes are mined in a checkerboard fashion with primary stopes mined first, followed by the intermediate secondary stopes. The mining sequence is globally top down, divided into a number of different vertical fronts, separated by temporary horizontal sill levels which are recovered after the levels immediately above and below have been mined and filled.

A sub-level spacing of 50m with temporary sill levels located 20m below a mining front were selected. Some sub-level spacings are increased by up to 10m to accommodate the inclusion of ore, minimising additional level development. The design consists of ten semi-independent mining sequences, based on both horizontal and vertical mining fronts.

Infrastructure

The Infrastructure requirements are based on the Stage 1 PFS and contemplate the transport of ore from the mine to Telfer via road trains on an all-weather unsealed road. The road has been designed to withstand a 1-in-a-100-year flood event and maintain access to Havieron.

Power is expected to be supplied to Havieron from Telfer's existing gas power station via a 66 kilovolt (kV) overhead line running parallel to the nominated haul road corridor. Further opportunities to replace these with non-fossil fuel power generation are expected to be evaluated as part of the Feasibility Study during the Forward Works Program.

Telfer currently operates two processing trains with a total capacity of ~22 Mtpa. The Havieron ore is expected to be processed through a modified Telfer Train 2 Processing Plant which is expected to operate a single train at 6Mtpa rate on a campaign basis. The Plant modifications are expected to include magnetic separation within the flotation circuit to reduce the amount of pyrrhotite in the final Cu Concentrate and a carbon-in-leach (CIL) circuit on the flotation tail and cyanide detoxification circuit. The expected cost of the plant modifications is included in the project capital estimate. A single train operation provides optionality if higher mining rates are achieved from Havieron or through the extension of Telfer's current mine life (i.e. Telfer ore can be run through the other train with the existing flowsheet). Tailings from ore processed is anticipated to be deposited at the existing Telfer TSF.

Independent Review of the Mineral Resource and Ore Reserve Update

SRK Consulting (Australasia) Pty Ltd has completed an independent technical assessment of the Updated Mineral Resource and Updated Ore Reserve estimates completed by Greatland for the Havieron deposit. As part of that assessment SRK reviewed the Resource and Reserve modelling methods and parameters and found them to be reasonable and to take into consideration all of the current exploration data and levels of technical knowledge of the Havieron deposit.

SRK considers that the Mineral Resources and Ore Reserves have been reported in accordance with guidelines and principles outlined in the 2012 edition of the Australasian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code, 2012 edition).

Potential Growth with Ongoing Exploration

The Havieron mineral system as outlined by drill testing to date is a 650m by 350m ovate shaped north west trending alteration zone in which mineralisation is hosted by variable brecciation and sulphide accumulations centred on a complex of nested diorite intrusions. Higher grade zones are associated with increases in sulphide accumulations including pyrrhotite, chalcopyrite and pyrite with quartz. The South East Crescent Zone is a geological domain characterised by massive sulphide accumulations. Mineralisation has been observed to over 1,000m in vertical extent below the 420m of post mineralisation cover sequence.

The Havieron project has significant additional growth potential including:

§ Upgrading of existing Inferred Mineral Resources in both the South East Crescent Zone and adjacent Breccias;

§ Extension of the South East Crescent Zone below the Updated Mineral Resource, where increasing grade and thickness of mineralisation has been observed in recent drilling;

§ Expansion and infill drilling in the Eastern Breccia; and

§ Potential to discover addition mineralisation centres outside of the immediate ovoid pipe

At the South East Crescent Zone, growth drilling has reported significant intersections 200m below the Updated Mineral Resource. Drilling continues to assess the depth extents of South East Crescent Zone which now has a vertical extent of over 1,000m.

The deepest drill hole within the resource is HAD133W1, approximately 850m below the unconformity, with the system open beneath this hole.

§ HAD133W1

§ 133m @ 7.0g/t Au & 0.05% Cu from 1,446m

§ including 55.9m @ 9.7g/t Au & 0.04% Cu from 1,449.5m

§ including 20m @ 11g/t Au & 0.04% Cu from 1,519m

The true width of this intersection is approximately 60m.

Results external to or below the Mineral Resource include HAD86W3 and HAD029:

§ HAD086W3

§ 44.7m @ 7.1g/t Au & 0.17% Cu from 1,412m

§ including 20.2m @ 15g/t Au & 0.29% Cu from 1,421m

§ 48m @ 2.2g/t Au & 0.15% Cu from 1,525m

§ including 26.9m @ 3.7g/t Au & 0.26% Cu from 1,538.1m

§ HAD029

§ 134.2m @ 0.81g/t Au & 0.23% Cu from 1,460m

§ including 23m @ 2.7g/t Au & 0.14% Cu from 1,473m

As announced by Greatland on 28 January 2022, HAD086W3 returned two Crescent Sulphide Zone intersections, with assays for the lower portion of the drill hole reporting 48m @ 2.2g/t Au & 0.15% Cu from 1,525m, including 26.9m @ 3.7g/t Au & 0.26% Cu from 1,538.1m. These results along with high grade hole HAD133W1, approximately 100m to the southeast continue to support extensions of the South East Crescent Zone at depth. Drilling continues to assess the depth extents of the South East Crescent Zone which now has a vertical extent of over 1000m.

At the Eastern Breccia, drilling targeting strike extensions from previously reported drill holes HAD083 and HAD084 indicate the potential for the Eastern Breccia to represent a separate North West trending mineralised corridor, with an alteration footprint of approximately 600m in strike, adjacent to the ovoid Havieron breccia system and associated South East Crescent Zone.

Recently reported sulphide rich, Crescent Zone like higher grade zones appear to be developed internal to this Eastern Breccia Complex. The most significant intercept to date was returned from HAD104, reporting 62.5m @ 5.9g/t Au & 0.30% Cu from 1,546.5m, including 49.4m @ 7.1g/t Au & 0.38% Cu from 1,554.6m. The intercept is related to massive sulphide and quartz infill, which is characteristic of the South East Crescent Zone. The intercept is ~200m south east of the previously reported Eastern Breccia drillholes. HAD104 has highlighted the potential for this separate NW trending Eastern Breccia corridor to host Crescent Sulphide Zone style high grade mineralisation. Drilling is now focussed on defining the extents of this higher grade mineralisation seen in HAD104 which remains open in all directions.   

Results For HAD104 include:

§ HAD104

§ 62.5m @ 5.9g/t Au & 0.30% Cu from 1,546.5m

§ including 49.4m @ 7.1g/t Au & 0.38% Cu from 1,554.6m

In addition to this release, a PDF version of this report with supplementary information can be found at the Company's website: www.greatlandgold.com/media/jorc/.

Competent Persons Statements:

Information in this announcement that relates to exploration or development results has been extracted from the following announcements:

"Havieron Exploration and Development Update", dated 28 January 2022 (Greatland)

"Quarterly Exploration Report", dated 28 January 2022 (Newcrest)

"Havieron Exploration and Development Update", dated 9 December 2021 (Greatland)

"Exploration Update", dated 9 December 2021 (Newcrest)

"Havieron Exploration and Development Update", dated 28 October 2021 (Greatland)

"Quarterly Exploration Report", dated 28 October 2021 (Newcrest)

"Havieron Maiden Pre Feasibility Study", dated 12 October 2021 (Greatland)

"Havieron PFS Stage 1 delivers solid returns and base for future growth" dated 12 October 2021 (Newcrest)

"Havieron Development and Exploration Update" dated 9 September 2021 (Greatland)

"Exploration Update", dated 9 September 2021 (Newcrest)

"Havieron Development and Exploration Update" dated 22 July 2021 (Greatland)

"Quarterly Exploration Report", dated 22 July 2021 (Newcrest)

"Further Excellent Growth Drilling Results at Havieron", dated 10 June 2021 (Greatland)

"Exploration Update", dated 10 June 2021 (Newcrest)

"Excellent Growth Drilling Results at Havieron", dated 29 April 2021 (Greatland)

"Quarterly Exploration Report", dated 29 April 2021 (Newcrest)

"Further Outstanding Infill Drilling Results at Havieron", dated 11 March 2021 (Greatland)

"Exploration Update", dated 11 March 2021 (Newcrest)

"Newcrest Reports Further Drilling Results at Havieron", dated 28 January 2021 (Greatland)

"Quarterly Exploration Report", dated 28 January 2021 (Newcrest)

"Newcrest Reports Further Drilling Results at Havieron", dated 10 December 2020 (Greatland)   

"Exploration Update", dated 10 December 2020 (Newcrest)

"Initial Inferred Mineral Resource Estimate for Havieron", dated 10 December 2020 (Greatland) 

"Initial Inferred Mineral Resource Estimate for Havieron", dated 10 December 2020 (Newcrest) 

"Drilling Results at Havieron Highlight Potential New Eastern Breccia Target", dated 29 October 2020 (Greatland)

"Quarterly Exploration Report", dated 29 October 2020 (Newcrest)

"Latest Drilling Results at Havieron Highlight Potential Bulk Tonnage Target", dated 10 September 2020 (Greatland) 

"Exploration Update", dated 10 September 2020 (Newcrest) 

"Newcrest Identifies New Zone of Breccia Mineralisation at Havieron", dated 23 July 2020 (Greatland)

"Quarterly Exploration Report", dated 23 July 2020 (Newcrest)

"Further Outstanding Drill Results from Havieron", dated 11 June 2020 (Greatland)

"Exploration Update", dated 11 June 2020 (Newcrest)

"Newcrest Reports Further Outstanding Drill Results at Havieron", dated 30 April 2020 (Greatland)

"Quarterly Exploration Report", dated 30 April 2020 (Newcrest)

"Newcrest Reports Further Outstanding Drill Results at Havieron", dated 11 March 2020 (Greatland)

"Exploration and Guidance Update", dated 11 March 2020 (Newcrest)

"Further Outstanding Drill Results at Havieron", dated 30 January 2020 (Greatland)

"Quarterly Exploration Report", dated 30 January 2020 (Newcrest)

"New Outstanding Drill Results at Havieron Extend the Strike Length of High-Grade Mineralisation",

dated 2 December 2019 (Greatland)

"Exploration Update - Havieron", dated 2 December 2019 (Newcrest)

"Further High-Grade Drilling Results from Newcrest's Campaign at Havieron", dated 24 October 2019 (Greatland)

"Quarterly Exploration Report - September 2019", dated 24 October 2019 (Newcrest)

"Update on Newcrest Drilling Results at Havieron", dated 10 September 2019 (Greatland)

"Exploration Update - Havieron", dated 10 September 2019 (Newcrest)

"First Results from Newcrest's Drilling Campaign at Havieron", dated 25 July 2019 (Greatland)

"Newcrest Quarterly Exploration Report - June 2019", dated 25 July 2019 (Newcrest)

Information in this announcement pertaining to Reporting of Exploration Results, including Sampling Techniques and Data, has been reviewed and approved by Mr John McIntyre, a Member of the Australian Institute of Geoscientists (MAIG), who has more than 30 years relevant industry experience. Mr McIntyre is an employee of the Company and has a shareholding in Greatland Gold plc. Mr McIntyre has sufficient experience relevant to the style of mineralisation and type of deposit under consideration, and to the activity which he is undertaking to qualify as a Competent Person as defined by the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code) and under the AIM Rules - Note for Mining and Oil & Gas Companies, which outline standards of disclosure for mineral projects. Mr McIntyre consents to the inclusion in this announcement of the matters based on this information in the form and context in which it appears. Mr McIntyre confirms that the Company is not aware of any new information or data that materially affects the information included in the relevant market announcements, and that the form and context in which the information has been presented has not been materially modified.

Information in this announcement pertaining to Estimation and Reporting of Mineral Resources, has been reviewed and approved by Mr Stuart Masters, a Member of the Australian Institute of Geoscientists (MAIG) and a Fellow of The Australasian Institute of Mining and Metallurgy (FAusIMM), who has more than 35 years relevant industry experience. Mr Masters is the Principal Consultant and Director of CS-2 Pty Ltd, and has no financial interest in Greatland Gold plc or its related entities. Mr Masters has sufficient experience relevant to the style of mineralisation and type of deposit under consideration, and to the activity which he is undertaking to qualify as a Competent Person as defined by the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code) and under the AIM Rules - Note for Mining and Oil & Gas Companies, which outline standards of disclosure for mineral projects. Mr Masters consents to the inclusion in this announcement of the matters based on this information in the form and context in which it appears. Mr Masters confirms that the Company is not aware of any new information or data that materially affects the information included in the relevant market announcements, and that the form and context in which the information has been presented has not been materially modified.

Information in this announcement pertaining to Estimation and Reporting of Ore Reserves, has been reviewed and approved by Mr Otto Richter, a Member of The Australasian Institute of Mining and Metallurgy (MAusIMM), who has more than 20 years relevant industry experience. Mr Richter is an employee of the Company and has no financial interest in Greatland Gold plc or its related entities. Mr Richter has sufficient experience relevant to the style of mineralisation and type of deposit under consideration, and to the activity which he is undertaking to qualify as a Competent Person as defined by the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code) and under the AIM Rules - Note for Mining and Oil & Gas Companies, which outline standards of disclosure for mineral projects. Mr Richter consents to the inclusion in this announcement of the matters based on this information in the form and context in which it appears. Mr Richter confirms that the Company is not aware of any new information or data that materially affects the information included in the relevant market announcements, and that the form and context in which the information has been presented has not been materially modified.

Notes for Editors:

Greatland Gold plc (AIM:GGP) is a leading mining development and exploration company with a focus on precious and base metals. The Company's flagship asset is the world-class Havieron gold-copper deposit in the Paterson region of Western Australia, discovered by Greatland and presently under development in Joint Venture with Newcrest Mining Ltd.

Havieron is located approximately 45km east of Newcrest's Telfer gold mine and, subject to a positive decision to mine, will leverage the existing infrastructure and processing plant to significantly reduce the project's capital expenditure and carbon impact for a low cost pathway to development. An extensive growth drilling program is presently underway. Construction of the box cut and decline to develop the Havieron deposit commenced in February 2021.

Greatland has a proven track record of discovery and exploration success. It is pursuing the next generation of Tier 1 mineral deposits by applying advanced exploration techniques in under-explored regions. The Company is focused on safe, low-risk jurisdictions and is strategically positioned in the highly prospective Paterson region. Greatland has a total six projects across Australia with a focus on becoming a multi-commodity mining company of significant scale.

Appendix 1

JORC Code, 2012 Edition - Table 1

Section 1: Sampling Techniques and Data

Section 2: Reporting of Exploration Results

Section 3: Estimation and Reporting of Mineral Resources

Section 4: Estimation and Reporting of Ore Reserves