Firefinch : High Grade Gold Results from the Morila Super Pit

For personal use only

ASX ANNOUNCEMENT

Tuesday, 22nd February 2022

High Grade Gold Results from the Morila Super Pit

• More excellent results received from drilling at the Morila Super Pit: o 4.0 metres at 13.6g/t gold from 315.2 metres
  o 16.8 metres at 3.02g/t gold from 279.4 metres, including 6.3 metres at 6.95g/t gold o 7.5 metres at 5.99g/t gold from 168.8 metres, including 2.7 metres at 15.9g/t gold
• Results from drillhole MRD0018 are significant as they may represent a new zone of mineralisation well outside the main pit and separated from the lodes previously mined:

1. 15.0 metres at 7.61g/t gold from 263.0 metres, including 9.0 metres at 11.1g/t gold

• 1. 2.8 metres at 23.7g/t gold from 236.4 metres, including 0.8 metres at 82.0g/t gold
• Drilling is continuing and will test extensions to high grade zones recently intersected on both the western and eastern sides of Morila
• Update of the Morila Mineral Resource underway

Firefinch Limited (ASX: FFX) (Firefinch or the Company) is pleased to provide an update on drilling activities at the Morila Gold Project (Morila), including a number of significant intersections with high grade gold mineralisation.

Firefinch's Managing Director, Dr Michael Anderson, commented:

"Our systematic drilling programme on both sides of the Morila Super Pit continues to intersect high grade zones of significant thicknesses within and around the deposit. Today's results are important because they confirm the potential to grow the Morila Resource. We expect to update the Resource and the Stage 1 mine plan for the Morila Super Pit in the coming months. Our team is continually updating the geological model to allow follow up drilling to be rapidly implemented utilising the three diamond core drill rigs currently operating at Morila."

Drilling in progress at MRD0018 with Pit 5 in the background

Firefinch Limited	Level 3, 31 Ventnor Ave,	T [phone]
ABN: 11 113 931 105	West Perth WA 6005,	E [e-mail]
ASX: FFX	Australia	W firefinchltd.com	1

For personal use only

MRD0018 Result

The intersections in MRD0018 are significant as they appear to be separated from the mineralised lodes previously mined at Morila (Figure 1).

MRD0018 tested for extensions to mineralisation intersected in a prior drillhole located 30 metres to the south (drillhole SAN 263 intersected 23 metres at 2.48g/t gold from 270 metres1) and returned much higher grades:

• 15.0 metres at 7.61g/t gold from 263.0 metres, including 9.0 metres at 11.1g/t gold (MRD0018); and
• 2.8 metres at 23.7g/t gold from 236.4 metres, including 0.8 metres at 82.0g/t gold (MRD0018)

The intersections are some 250 metres west of the pit and 130 metres south of the Morila Mineral Resource. It is unclear whether these thick and high-grade intersections represent an offset of the main Morila lodes or represent a new and discrete zone of mineralisation.

Mineralisation at Morila is generally flat lying and both controlling structures and mineralisation are interpreted to have a broad north-south trend. One of the targeting criteria used by Firefinch is to identify prior drill intersections which have not been tested to the north or south. Drilling is ongoing to the south of MRD0018, in the south-west portion of the Morila Deposit, testing similar historical intersections which were not followed up with closer spaced drilling.

Figure 1: Cross Section 1921930mN showing results from MRD0018.

Morila West Drilling

All results have now been received and interpreted from the drilling campaign at the western side of the Morila Super Pit, completed in Q4 2021.

1 Refer to ASX Announcement 31st August 2020.

Firefinch Limited	Level 3, 31 Ventnor Ave,	T [phone]
ABN: 11 113 931 105	West Perth WA 6005,	E [e-mail]
ASX: FFX	Australia	W firefinchltd.com	2

For personal use only

Results are detailed in Figure 2 and Appendix 1 and include:

• 7.5 metres at 5.99g/t gold from 168.8 metres, including 2.7 metres at 15.9g/t gold (MRD0015);
• 16.8 metres at 3.02g/t gold from 279.4 metres, including 6.3 metres at 6.95g/t gold (MRD0015);
• 21.7 metres at 1.40g/t gold from 266.7 metres (MRD0016);
• 18.0 metres at 1.58g/t gold from 262.5 metres, including 8.5 metres at 2.81g/t gold (MRD0012);
• 15.0 metres at 1.77g/t gold from 262.5 metres, including 4.6 metres at 3.55g/t gold, within a wider interval of 37.8 metres at 1.02g/t gold from 242.2 metres (MRD0010);
• 10.0 metres at 2.16g/t gold from 271.6 metres, including 4.5 metres at 3.60g/t gold, within a wider interval of 18.4 metres at 1.39g/t gold from 263.3 metres (MRD0024);
• 3.3 metres at 7.12g/t gold from 204.1 metres including 0.9 metres at 25.0g/t gold (MRD0011); and
• 14.0 metres at 1.60g/t gold from 129.8 metres including 8.1 metres at 2.57g/t gold (MRD0013)

This first phase of resource drilling at Morila has delineated down-dip extensions to mineralisation below the current planned pit design in the north-western portion of the deposit; the area where pre- stripping of waste has commenced2.

Drilling successfully intersected a number of high-grade zones in MRD0015 (7.5 metres at 5.99g/t gold including 2.7 metres at 15.9g/t gold and 6.3 metres at 6.95g/t gold) and MRD0011 (3.3 metres at 7.12g/t gold including 0.9 metres at 25.0g/t gold). These add to previously released results along strike to the north in MRD0006 (3.7 metres at 6.81 g/t gold) and MRD0009 (3.3 metres at 6.93 g/t gold)3.

These high-grade zones are now high priority targets for further drilling, currently underway, to increase the confidence in the Mineral Resource in these areas and inform mine planning to focus on accessing these high-grade zones.

The other results listed in Appendix 1 are largely consistent with the 2021 Mineral Resource, with some local variations in predicted position. These are the result of better definition of the mineralised horizon, controlling structures and refinement of the geometry of tonalite intrusions (which the mineralised horizons wrap around). Detailed structural logging has been completed on all core drilled by Firefinch with current work focussing on merging this in with historical data to provide new geological models and inform a new set of targets in this area.

The current open pittable Mineral Resource for Morila stands at 1.86 million ounces of gold comprising

1. million tonnes at 1.50g/t gold4 (21.2 million tonnes at 1.60g/t gold in the Indicated category, and

1. million tonnes at 1.37g/t gold in the Inferred category; refer Table 1). A Mineral Resource update will enable the Stage 1 pit design and 2022-2023 mining schedule to be refined.

1. Refer ASX Announcement 6th January 2022.
2. Refer ASX Announcement 22nd October 2021.
3. Refer to ASX announcement dated 8th February 2021.

Firefinch Limited	Level 3, 31 Ventnor Ave,	T [phone]
ABN: 11 113 931 105	West Perth WA 6005,	E [e-mail]
ASX: FFX	Australia	W firefinchltd.com	3

For personal use only

As drilling results are largely consistent with the existing resource modelling the resource update should also result in the conversion of deeper Inferred Resources to Indicated Resources leading to detailed planning of the Stage 2 pit design and provide further refinement to the life of Mine mining schedule.

Morila North East Drilling

In parallel with the resource drilling at Morila West, a campaign of drilling has been completed in the northeastern part of the deposit, targeting potential extensions to the intersection in MRD0001 (10.5 metres at 34.0g/t gold)5

Follow up drilling to the east of MRD0001 has now returned 4 metres at 13.6 g/t gold from 315.2 metres in MRD0028. This result is down dip from MRD0002 which returned 6 metres at 2.62g/t gold6 and geological and structural data from MRD0028 and surrounding holes are being interpreted to guide follow up drilling in this area.

This high-grade zone of mineralisation remains a focus for follow up drilling as the results intersected to date highlight the potential for an underground operation at Morila. The Company has already commenced a high-level study into underground mining at Morila and these results will be fed into forthcoming updates of that study.

This announcement has been approved for release to the ASX by the Board.

For Enquiries
Dr Michael Anderson	Dannika Warburton
Managing Director	Principal
Firefinch Limited	Investability Partners
[e-mail]	[e-mail]
[phone]	[phone]

5Refer ASX Announcement 18th August 2021.

6Refer ASX Announcement 22nd October 2021.

Firefinch Limited	Level 3, 31 Ventnor Ave,	T [phone]
ABN: 11 113 931 105	West Perth WA 6005,	E [e-mail]
ASX: FFX	Australia	W firefinchltd.com	4

For personal use only

Figure 2: Plan showing Firefinch and historical drilling at Morila. Drillhole results released in this announcement are labelled.

Firefinch Limited	Level 3, 31 Ventnor Ave,	T [phone]
ABN: 11 113 931 105	West Perth WA 6005,	E [e-mail]
ASX: FFX	Australia	W firefinchltd.com	5