Focus Minerals : Brilliant South Mineral Resource Grows 29%

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Market Announcement

23 February 2022

Brilliant South Mineral Resource grows 29%

Highlights:

• Total Indicated and Inferred Mineral Resource tonnes increase 70% for a 29% rise in gold ounces
• Global Mineral Resource for Brilliant South - including open pit and underground - now comprises 12.94Mt at 1.66 g/t Au for 692Koz
• Brilliant North-style, moderately east north-east dipping mineralisation now recognised at Brilliant South

West Australian gold explorer Focus Minerals (ASX: FML) (Focus or the Company) announces the completion of a Mineral Resource update for the Brilliant South deposit, part of the Company's Coolgardie Gold Project. The Mineral Resource estimate was completed by Cube Consulting (Cube).

Brilliant South (historically "Brilliant") is a key deposit within the Coolgardie Gold Project (Coolgardie), which covers 175km2 of highly prospective tenements on the outskirts of the Coolgardie township in the Goldfields region. Focus is pursuing a plan to resume gold mining operations at Coolgardie.

The Mineral Resource update incorporates drilling carried out in 2020 and 2021 and covers both the open pit and underground components of Brilliant South. The global Mineral Resource stands at 12.94Mt at 1.66 g/t Au for 692,000oz.

The updated Brilliant South open pit Mineral Resource is reported on a dry basis from surface to 230mRL (180m depth) at a 0.5 g/t cut-off and northing cut-off at 6,573,030mN:

	Classification			Tonnage		Au Grade		Au Contained		Au Ounces
			(Mt)		(g/t)		Koz		Increase %
	Indicated		8.99	1.39	400	29%
	Inferred		1.55	1.23	61	55%
	Total open pit Mineral Resource		10.54	1.36	462	32%

The updated Brilliant South underground Mineral Resource is reported on a dry basis at depths below 230mRL (below 180m from surface), with a 1.5 g/t cut-off and northing cut-off at 6,573,030mN:

	Classification			Tonnage		Au Grade			Au Contained		Au Ounces
			(Mt)		(g/t)			Koz		Increase %
	Indicated		0.27	2.38		21	100%
	Inferred		2.12	3.07		209	11%
	Total underground Mineral Resource		2.39	2.99		230	22%
Focus Minerals Limited
ACN 005 470 799 | ABN 56 005 470 799 | ASX: FML
Level 2, 159 Adelaide Terrace, East Perth WA 6004 | PO Box 3233, East Perth WA 6892
T [phone] | F [phone] | E [e-mail] | W focusminerals.com.au				Page 1 of 25

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Focus provides a comparison of total open pit and underground Indicated and Inferred Mineral Resources compared with the 2020 Brilliant South estimate (see ASX announcement dated 2 September 2020) and notes:

• Open pit (OP) Mineral Resources reported to 230mRL (180m depth) at a cut-off of 0.5 g/t Au;
• Underground (UG) Mineral Resources reported below 180m depth at a cut-off 1.5 g/t Au; and
• Both models reported south of northing 6,573,030mN.

	Comparison			Tonnage			Au Grade			Au Contained
			(Mt)			(g/t)			Koz
	September 2020 Indicated OP + UG1		4.68		2.06		309
	February 2022 Indicated OP + UG		9.26		1.41		421
	Difference Indicated OP + UG		+98%		-31%		+36%
	September 2020 Inferred OP + UG		2.92		2.42		227
	February 2022 Inferred OP + UG		3.67		2.29		270
	Difference Inferred OP + UG		+26%		-5%		+19%
	September 2020 Total OP + UG Indicated and		7.6		2.2		537
	Inferred Mineral Resources
	February 2022 Total OP + UG Indicated and Inferred		12.94		1.66		692
	Mineral Resources
	Difference Total Indicated and Inferred OP + UG		+70%		-24%		+29%
	Mineral Resources

It is noted that the grade of this updated Brilliant South open pit Mineral Resource has decreased in line with modelling to a lower economic grade cut-off and thereby increasing reported lower- grade tonnes.

Commenting on the independently compiled Brilliant South Mineral Resource, Focus Minerals' CEO, Mr Zhaoya Wang, said:

"The diligent rebuild of the Brilliant South deposit model has been rewarded by large-scale Mineral Resource growth. This is a tremendous result and increases confidence in this key open pit resource.

"Together with large-scale resource growth at CNX and a string of other resources at Coolgardie, we are on track to confirm a significant gold resource position that can underpin the proposed resumption of mining operations for the benefit of all shareholders."

• The Brilliant South Mineral Resource Update reported 2 September 2020 extended north of 6,573,030N into the area known as Brilliant North. Focus does not have a formal Mineral Resource for Brilliant North. All comparisons in this announcement relate to the Mineral Resources reported south of 6,573,030N. Also it is noted that no Mineral Resources north of 6,573,030N were used to inform the 2020 PFS Brilliant open pit design.
  The 2 September 2020 Brilliant South Mineral Resource Update was reported using 0.7 g/t cut off for Open Pit Mineral Resources and 1.5 g/t cut off for Underground Mineral Resources. All comparisons between the February 2022 Mineral Resource and the 2 September 2020 Mineral Resource are completed using the same cut off grades comprising: 0.5 g/t cut off for Open Pit Mineral Resources and 1.5 g/t cut off for Underground Mineral Resources.

Market Announcement | Page 2 of 25

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Brilliant South

Resource growth to enhance Coolgardie mine plan

Brilliant South is located 1km south-east of the Coolgardie township and on Mining Licences M15/646 and M15/1788, which are wholly owned by Focus. The open pit is less than 4km south-west of Focus' Three Mile Hill ROM pad. The Three Mile Hill plant is on care and maintenance.

Figure 1: Coolgardie Gold Project location map highlighting recent Mineral Resource updates and Mineral

Resources currently under review.

Market Announcement | Page 3 of 25

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The February 2022 Mineral Resource has grown significantly partly as a result of consistent interpretation following the detailed geological model and partly as a result of modelling to a lower economic cut off particularly in the open pit part of the Mineral Resource where the economic cut off has dropped from 0.7 g/t to 0.5 g/t.

The February 2022 Open Pit Mineral contains significant shoots of higher-grade material as represented by the Open Pit Total Indicated and Inferred Mineral Resource Tonnes vs Grade curve reported above 230 mRL (Figure 2).

1. Mt

1. Mt

15 Mt
		g/t
		Grade
10 Mt
5 Mt

Cut Off Grade g/t

Figure 2: February 2022 Open Pit Mineral Resource grade tonnage curve for Indicated and Inferred resource categories reported above 230mRL. At 1.3 g/t cut-off total Indicated and Inferred Open Pit Mineral Resources comprise 4.38Mt at 2.08 g/t for 293,000oz. At 2.3 g/t cut-off total Indicated and Inferred Open Pit Mineral Resources comprise 1.24Mt at 3.03 g/t for 121,000oz.

Market Announcement | Page 4 of 25

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Brilliant historic production and 2020 PFS refresh pit

The Brilliant South open pit Mineral Resource is a significant gold deposit in the Coolgardie region. The deposit was a major open pit gold producer, mined in stages from the 1970s to the early 2000s, with total production comprising approximately 88,000oz at an average grade of 2.45 g/t.

Brilliant South was considered an integral part of the 2020 Coolgardie PFS refresh (refer ASX announcement dated 22 September 2020).

For the 2020 Coolgardie PFS refresh, Mining One completed pit optimisations and Ore Reserve pit designs for Brilliant South incorporating the following economic parameters:

• Pit constrained to south of 6,573,010N
• A $2,200/oz gold price
• Selective mining unit (SMU) dimensions 5m x 3m x 2.5m
• Minimum mining width 20m
• Processing rate 1.4Mtpa
• Mining recovery 97%
• Dilution 34%
• Processing recovery 90.5% (historical recovery and metallurgical test work recovery are discounted by 5% to provide a conservative and realistic estimate of process recovery using the Three Mile Hill mill)
• Processing variable mill cost at 1.4Mtpa of $29/t plus cartage $2.68/t
• Mining fixed costs of $1.55/t; incremental variable costs for ore starting at $3.81/t; and waste at $2.78/t
• Royalty 3% (includes allowance for administrative overheads)

The resulting PFS pit extended to 230mRL (a depth of 180m):

Production

SMU

Recovered

Diluted

Total Cost

Pre Tax

PFS Resource

Cut

Grade

(A $ Per

Value

months

Gold (Koz)

Off g/t

(g/t)

Ounce)

(A $M)

Brilliant Open Pit

60

0.5

171

1.58

1,715

73

Within the final Brilliant South open pit design SMUs exceeding a 0.5 g/t Au cut-off can be reported as a mining-diluted Ore Reserve comprising:

Classification	Tonnage (Mt)	Au Grade (g/t)	Au Contained Oz
Proved Reserve	-	-	-
Probable Reserve	3.72	1.58	188,000
Total Reserve	3.72	1.58	188,000

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