Breaker Resources NL - Compelling outcomes from first-pass open pit studies at Lake Roe

Breaker Resources NL (ASX: BRB; Breaker or the Company) is pleased to confirm positive outcomes from an open pit optimisation study (the Study) targeting the Bombora-Claypan gold deposits situated within its 1.7Moz Lake Roe Gold Project

The objectives of the Study are to: (i) assess the potential for open pit mining, (ii) guide decision making on the optimal size of a processing facility in a standalone development scenario and (iii) help determine at what depth a transition from open pit mining to underground mining is likely to be most profitable

Bombora is a virgin discovery with no mining legacy issues, is a typical Archean (stratabound) multi-lode deposit hosted by fractionated dolerite. The Company's objective at Lake Roe is to develop a standalone open pit and underground mine based initially on the Bombora gold deposit, while concurrently stepping up its drilling to keep growing the 9km-long gold system and further expand its development options. Preliminary underground mining studies are now underway and will initially focus on the high-grade Tura lode and the 2.2km-long array of high-grade flat lodes discovered below the open pit Resource over the last year.

Breaker Managing Director, Tom Sanders said: 'The study highlights the enormous value to be unlocked at Lake Roe. The outstanding potential free cashflow generation is a game-changer for Breaker and opens up a range of development and processing options. 'It also shows the huge upside for Breaker shareholders considering the Company's current market capitalisation, especially when the value of its free-carried lithum interests are considered. 'We now have a solid foundation for a long-term standalone mining project with scope for attractive margins at current gold prices and with potential for material enhancement from underground mining'.

Mineral Resource

The Study is based on the Mineral Resource Update (ASX Announcement 20 December 2021) generated by independent consultants Optiro Pty Ltd (Optiro), and totals 31.9 million tonnes at 1.6g/t gold for 1.68 million ounces. To guide planned mining studies, a subset of the Bombora Resource at higher cut-off grades was completed at the same time

Open Pit Optimisation Studies

The aim of the open pit optimisation study is to create a set of economically defined, staged open pits 'shells' which start at surface and which culminate in an 'ultimate' optimum open pit which aims to maximise the pre-tax free cash flow for a given range of input assumptions as summarised below. The initial open pit optimisation targeted the 5km-long Bombora-Claypan gold deposits, different elements of the same large gold system, the 'Global Bombora' run. In light of the positive results, a second optimisation run was completed over the northern part of the Bombora deposit to assess the potential for 1.1km-long 'starter' pit scenario that enables the establishment of a decline portal for early underground mining or for underground drill access the 'North Bombora Starter Pit' optimization

A preliminary assumption is that ore processing will occur on-site. The Study assumes a processing rate of 1.8Mtpa but this assumption may change and will be influenced by the results of this Study and further mining studies that will be completed prior to any decision regarding development by the Company. Given its preliminary nature, the Study does not account for the capital costs of a processing plant or other pre-mining capital and infrastructure works. The assumed average pit slopes used in the Whittle optimisation process make allowance for regulatory berms and access ramps that would otherwise be included in any final open pit design based on independent geotechnical studies. Detailed pit design and scheduling have not been completed and the results do not constitute an Ore Reserve.

Each open pit shell represents the tonnes and grades of the open pit Mineral Resource enclosed within that particular open pit shell inclusive of assumed mining dilution and metallurgical recovery. When 'mined' in progressively deeper stages, the pit shells simulate staged cut-backs in a potential open pit that culminates in an optimum open pit which aims to maximise the pre-tax cash flow. Where the incremental costs equals the incremental revenue, the Revenue Factor (RF) equals one and the net cash flow is at a maximum. Open pit shells below the optimal open pit shell may be 'profitable' in a cumulative free cash flow sense but are not optimal unless there is a change in the Whittle input parameters which result in a deeper optimal open pit shell upon re-optimisation, such as a lower unit processing cost per tonne by using a larger capacity processing facility. Other potential input parameters that may influence the final optimal open pit shell by the time of development after further mining studies, include a change in gold price, or a change in unit mining costs (eg. owner-operator vs contractor).

Each open pit shell has a maximum depth and designated Revenue Factor (RF). The Whittle process uses different Revenue Factors (RFs) to calculate different pit shells by varying the assumed base case gold price but keeping the costs the same. Revenue Factors represent the percent of the base case metal price (A$2,500) used to create an optimal open pit shell. For example, if the base case gold price is $2,500/oz (RF = 1.0), then a Revenue Factor of 0.7 equates with an optimal pit shell at a gold price of $1,750/oz. Approximately 85% to 99% of the Mineral Resource captured by the various Whittle open pit shells is in the Indicated Resource category, with the balance in the Inferred category

Cautionary Statements

The Study referred to in this ASX announcement is conceptual in nature. It is a preliminary technical study to assess the potential for open pit gold mining and to assist in determining the likely depth of open pit mining to guide preliminary underground mining studies. The Study is based on a JORC compliant Mineral Resource Estimate (MRE) for the Bombora gold deposit (ASX release 20 December 2021). The MRE underpinning the the Study has been prepared by a Competent Person in accordance with the requirements of the JORC Code (2012). All material assumptions and technical parameters underpinning the MRE continue to apply and have not materially changed. A Competent Person's Statement is found below in this announcement. The Study is preliminary and not intended as a feasibility study. It should be understood by the reader that this announcement reports on preliminary outcomes of early stage open pit optimisation works on the Bombora and Claypan deposits. The outcomes presented here should not be considered as anyre than preliminary guidance on economics of a stage in the potential development of the Lake Roe Project. It does not account for the capital costs of a processing plant or other pre-mining capital and infrastructure works. The Study includes preliminary economic analysis and is based on a number of Production Targets and material assumptions and other relevant factors estimated by a Competent Person to have an accuracy range of approximately +/-35%. The Study findings are indicative only and subject to assumptions outlined in this announcement, and market and operating conditions. They should not be construed as guidance and are subject to further studies and all necessary approvals, permits, internal and regulatory requirements. While Breaker considers that all the material assumptions are based on reasonable grounds, there is no certainty that they will prove to be correct or that the range of outcomes indicated by this study will be achieved. Whilst best efforts are taken to ensure that input parameters are realistic and achieveable they remain subject to review and confirmstion with more detailed estimation and/or tendering. They are not intended to purport a forecast of any financial nature at this time. The constraining of the resource model and the addition of dilution paramaters to provide plant feed estimates for preliminary economic analysis should not purport to represent a formal indication of reserves for the Project or parts of it at this stage. As such, no Ore Reserve has been declared. While each of the Modifying Factors was considered and applied, there is no certainty of eventual conversion to Ore Reserves or that the Production Targets will be realised. Further exploration and evaluation work and appropriate studies are required before Breaker is in a position to estimate an Ore Reserves or to provide any assurance of an economic development case. As such, the Study outcomes, and forecast financial information referred to in this announcement are based on low accuracy level technical and economic assessments that are insufficient to support estimation of Ore Reserves. The open pit shells described in the report capture portions of the MRE and include variable amounts of Indicated and Inferred Mineral Resources ranging from 85% to 99% of Indicated Mineral Resources, and 1% to 15% of Inferred Mineral Resources. There is a low level of geological confidence associated with Inferred Mineral Resources and there is no certainty that further exploration work will result in the determination of Indicated Mineral Resources or that the outcomes from open pit optimization studies will be realised. Breaker confirms that the potential financial viability of producing gold from the Project is not dependent on the inclusion of Inferred Resources in the various Production Targets. This announcement has been prepared by Breaker Resources NL. This document contains contextual information current as at the date of this announcement. This document provides a summary of the Study and does not purport to be all-inclusive or complete. Project development assumes the completion of a Definitive Feasibility Study (DFS). There is no certainty that the Company will be able to source the required development funding if and when required. The Company considers that there is a reasonable expectation that a project of this scale will be able to be funded with a combination of debt and equity at the appropriate time. It is also possible that such funding may only be available on terms that may be dilutive to or otherwise affect the value of the Company shares. It is also possible that Breaker could pursue other 'value realisation' strategies such as a sale, partial sale or joint venture of the project. If it does, this could materially reduce the Company's proportionate ownership of the project. Given the uncertainties involved, investors should not make any investment decisions based solely on the results of the Study.

Forward-Looking Statements

This ASX announcement contains a series of forward-looking statements. The words 'expect', 'potential', 'intend', 'estimate' and similar expressions identify forward-looking statements. Forward-looking statements are subject to known and unknown risks and uncertainties that may cause the actual results, performance or achievements to differ materially from those expressed or implied in any of the forward-looking statements in this report and are not a guarantee of future performance. Statements in this release regarding Breaker's business or proposed business, which are not historical facts, are forward-looking statements that involve risks and uncertainties. These include Mineral Resource Estimates, metal prices, capital and mine production costs, changes in project parameters as plans continue to be evaluated, the continued availability of capital, general economic, market or business conditions, and statements that describe the future plans, objectives or goals of the Company, including words to the effect that Breaker or its management expects a stated condition or result to occur. Forward-looking statements are necessarily based on estimates and assumptions that, while considered reasonable by Breaker, are inherently subject to significant technical, business, economic, competitive, political and social uncertainties and contingencies. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements. Investors are cautioned not to place undue reliance on forward-looking statements. The Company has concluded that it has a reasonable basis for providing these forward-looking statements and the forecast financial information included in this ASX announcement and accompanying Study. This includes a reasonable basis to expect that it will be able to fund the development of the Lake Roe Gold Project successful delivery of key development milestones. The detailed reasons for these conclusions are outlined throughout the ASX announcement and accompanying Study.

Contact:

Tom Sanders

Tel: [phone]

Email: [e-mail]

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