Breaker Resources NL : Lake Roe Gold Project Mineral Resource Update

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ASX ANNOUNCEMENT

20 December 2021

Lake Roe Gold Resource

Increases 23% to 1.7 Million Ounces

Results point to robust open pit and underground mining potential

Highlights

• Global Mineral Resource at the Lake Roe Gold Project in WA increases by 314,000oz (23%) to 1.7 million oz since the last update in April 2021 (31.9 million tonnes at 1.6g/t gold1)
• Mineral Resource at main Bombora gold deposit has increased to 1.5 million oz

(25.9 million tonnes at 1.8g/t gold1)

• Higher grade subsets of the Resource indicate outstanding mining potential:- Open Pit Mineral Resource (0.8g/t cut-off above 100mRL)
• • 11.2 million tonnes at 1.9g/t Au for 688,000oz (87% Indicated) Underground Mineral Resource (1.8g/t cut-off below 100mRL)
  • 4.4 million tonnes at 3.6g/t gold for 501,000oz (11% Indicated)
• Discovery cost of $21/oz for new ounces, and $40/oz for life-of-project ounces

Breaker Managing Director Tom Sanders, said: "This is a fantastic result which highlights the quality, scale and mining potential of our Lake Roe discovery after 314,000m of drilling.

"We believe that the new Resource provides a solid foundation for a long-term mining project with attractive margins at current gold prices. The high-grade growth potential immediately below the open pit Resource is wide open and we are seeing several areas opening up with the grade and continuity that is attractive for underground mining.

"We are looking forward to start the transition from discovery into mine development studies over the ensuing year. Accordingly, we plan to ramp up our drilling to firm up the best areas for development, while expanding the Resource in other areas at the same time.

"Over a five year period we have found 1.7Moz at a cost of A$40/oz which is exceptional value creation for shareholders. Given the recent high-grade drilling results, and our consistent track record of resource growth since 2018, we have every reason to believe this will continue.

"There are many avenues for growth as Bombora is part of a 9km-long gold system. The discovery potential along the syenite contact to the east of Bombora is very exciting for example, and there is mounting evidence that the mineralised structures at Bombora project into the syenite."

1 Combined open pit & underground Mineral Resource estimate with cut-off grades of 0.5g/t & 1.0g/t respectively

12 Walker Avenue	Telephone: +61	8 9226 3666
West Perth	WA 6005	Facsimile: +61	8 9226 3668
PO Box 244	Email: [e-mail]
West Perth	WA 6872	Website: www.breakerresources.com.au
	ASX Code: BRB	ACN: 145 011 178

ASX ANNOUNCEMENT 20 December 2021

For personal use only

Breaker Resources NL (ASX: BRB; Breaker or the Company) is pleased to report a 23% increase in the Mineral Resource at its Lake Roe Gold Project, 100km east of Kalgoorlie in WA.

Global ounces increased by 314,000oz to 1.68Moz. This follows a 40% increase since the previous Resource update announced in April 2021. The grade at the Bombora depost increased by 13% to 1.8g/t gold.

The new Mineral Resource was generated by independent consultants Optiro Pty Ltd (Optiro) and totals 31.9 million tonnes at 1.6g/t gold for 1.68 million ounces as summarised in Table 1 below (previously 27.9 million tonnes at 1.5g/t gold for 1.37 million ounces). A subset of the Resource at higher cut-off grades, designed to assist planned mining studies, is summarised in Table 2.

	Lake Roe Global Base Case	Cut-off Grade	Category	Tonnes	Grade	Ounces
	Bombora Open Pit above 100mRL		Indicated	15,153,000	1.46		712,000
	0.5	Inferred	2,703,000	1.3		111,000
	(87% Indicated)
		Subtotal	17,856,000	1.4		824,000
	Bombora Underground below 100mRL		Indicated	710,000	2.88		66,000
	1.0	Inferred	7,286,000	2.5		594,000
	(10% Indicated)
		Subtotal	7,996,000	2.6		659,000
	Total Bombora		Total	25,852,000	1.8		1,483,000
	Crescent-Kopai	0.5	Inferred	4,073,000	1.0		132,000
	Claypan	0.5	Inferred	2,004,000	1.1		69,000
			Grand Total	31,929,000	1.6		1,684,000
	Table 1: Lake Roe Mineral Resource using 0.5g/t and 1.0g/t cut-off grades2
	Bombora Mine Planning Subset	Cut-off Grade	Category	Tonnes	Grade	Ounces
	Open Pit above 100mRL	0.8	Indicated	9,588,000	1.94		599,000
	Inferred	1,611,000	1.7		89,000
			Subtotal	11,199,000	1.9		688,000
	Underground below 100mRL	1.8	Indicated	410,000	4.04		53,000
	Inferred	3,979,000	3.5		448,000
			Subtotal	4,388,000	3.6		501,000
	Total Bombora		Total	15,587,000	2.4		1,189,000

Table 2: Bombora Mineral Resource Subset (0.8g/t and 1.8g/t gold cut-offs)2

The new Mineral Resource builds on a track record of sequential growth since the maiden estimate in April 2018 (Figure 1).

Figure 1: Lake Roe Mineral Resource Growth Trend 2018-2021

2 All figures rounded to reflect the appropriate level of confidence (apparent differences may occur due to rounding)

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ASX ANNOUNCEMENT 20 December 2021

The new Mineral Resource estimate is based on a further 18 diamond drill holes (11,725m) and 8 Reverse Circulation (RC) drill holes (1,720m at Bombora South).

Most of the increase in the new estimate is from the Bombora Underground Resource area (245,000oz) where 87% of the new drilling was focused, and where mineralisation remains open along strike and at depth.

The new estimate also includes a small increase in the Bombora open pit area (21,000oz) where limited new RC drilling continued to extend the strike of the Bombora lodes to the south. Mineralisation remains open to the south in this area (Figure 2).

Revised geological models for the nearby satellite deposits of Crescent-Kopai and Claypan (Figure 2) resulted in increased Mineral Resource estimates in each area: the Crescent-Kopai estimate increased by 46,000oz to 132,000oz, and the Claypan estimate increased by 2,000oz to 69,000oz.

Figure 2: RC and Diamond Drilling Colour-coded by Maximum Gold (g/t)

on Aircore Maximum Gold Image and Aeromagnetics

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ASX ANNOUNCEMENT 20 December 2021

The open pit Mineral Resource at Bombora starts 5m from surface and is in a favourable configuration for large-scale open pit mining, assisted by a 150m-wide mineralised zone, and a gold endowment of ~3,800 ounces per vertical metre arising from a high concentration of lodes.

The kilometric-scale continuity of all three lode (mineralised fault) orientations initially established by extensive drilling in the open pit area, extends at depth, significantly de-risking any future underground mining.

A three-dimensional perspective of the Bombora Mineral Resource model by Resource category and lode type is provided in Figures 3 & 4 below, together with associated drilling.

Figure 3: Bombora 3-D Perspective View of Mineral Resource Block Model by Resource Category looking northwest

Steep Lodes = Red

Flat Lodes = Green

West Lodes = Blue

Figure 4: Bombora 3-D Perspective View of Mineral Resource Block Model by Lode Type looking northwest

New diamond drilling below the open pit resource since the previous Resource estimate in April 2021 has consistently delivered high-grade results on 80m step-outs, continuing to upgrade the grade and growth potential at depth.

The Tura lode (Figure 5 below) now extends over 900m down-plunge, remains open to the south and is one of eight south-plunging steep lodes extending beneath the Bombora deposit.

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ASX ANNOUNCEMENT 20 December 2021

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Figure 5: Long-section of Tura Steep Lode Looking West

The flat-dipping stacked lodes in the northern part of the Bombora deposit (Figure 6) have now been tracked for over a total strike of 2,200m, with the new Resource estimate including a further 280m of strike length since the previous April 2021 estimate. These flat lodes remain open to the north and south, with new flat lodes still being discovered as deeper drilling continues.

There is mounting evidence that mineralised flat faults at Bombora can be projected eastwards into the syenite contact, an emerging area of potential discovery.

The presence of lode stacking is a major advantage for any gold project, significantly increasing the ounces per vertical metre, thereby enhancing the potential economics in open pit or underground mining scenarios (Figure 7).

The Bombora open pit area has an average gold endowment of ~3,800oz per vertical metre with 86% of the mineralisation in the Indicated Resource category, reflecting the high density of drilling (Figure 7). As shown in Figure 7, the decrease in ounces per vertical metre with depth is a direct function of the amount of drilling completed to date.

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