Manuka Resources : Progress Report - Results of Mt Boppy extension drilling

ASX Announcement

28 March 2022

ASX: MKR

MARKET SENSITIVE

Results of Mt Boppy Extension drilling underpins future gold resource upgrade

Highlights:

• • Manuka completed a 43-hole (8,771m) RC drilling project at its 100% owned Mt Boppy Project on 18 January 2022, 29 of which primarily targeted strike & depth extensions to the known Boppy Main Lode mineralisation;

• • RC drill holes collared at surface extended the defined zone of high grade gold mineralisation by 30m along strike and at depth to 100m below the Mt Boppy pit floor, approximately 50m deeper than previous drilling and it remains open at depth;

• • The drilling beneath Mt Boppy yielded a particularly outstanding intercept of 30m @ 7.62g/t Au (including 15m at 15.2g/t Au);

• • Final assays from this program have recently been received and will be incorporated into an updated 3D mine planning model as a priority as well as an upgraded JORC Resource estimate, likely available in the June Quarter;

• • Best intercepts from the recent drilling program include:

  • o Hole MBRC032: 30m @ 7.62 g/t (159 - 189m) including 15m @ 15.2 g/t Au

  • o Hole MBRC060: 18m @ 3.5 g/t (210 - 228m) including 9m @ 5.6 g/t Au

  • o Hole MBRC054: 7m @ 3.8 g/t Au (160 - 167m) including 3m @ 7.3 g/t Au

  • o Hole MBRC036: 23m @ 1.9 g/t Au (225 - 248m) including 11m @ 3.45 g/t Au

  • o Hole MBRC062: 12m @ 2.6 g/t Au (224 - 236m)

  • o Hole MBRC056: 6m @ 2.7 g/t Au (192 - 198m)

• • Recent mineralised intercepts at depths from 60 - 128m RL are 30 -100m below the completed open pit floor (165m RL) and confirm the existence of high grade extensions to the Boppy Main Lode.

Manuka Resources Limited ("Manuka" or the "Company") is pleased to provide results from the recent RC drilling program on the Company's 100% owned Mt Boppy mining leases.

A program across the Mt Boppy MLs comprised 43 RC drill holes for a total depth of 8,771m. The program's primary target was extensions of existing high gold mineralisation defined by previous drilling beneath the Mt Boppy open pit. Secondary targets across the MLs tested conceptual structural and geophysical targets

Manuka Resources Limited - Level 4 Grafton Bond Building, 201 Kent St Sydney NSW Australia 2000

ABN 80 611 963 225 tel [phone]www.manukaresources.com.au

designed to define high risk - high reward resource gold ounces on the existing Mining Leases.

The following intercepts beneath the Mt Boppy pit either intercepted the full width of the Boppy Main Lode in an unmined position, or intercepted the historic underground workings (tailing sand, timber support, rubble) together with wall rock to either side of the workings. Collar locations and drill traces are shown below in Figures 1 - 3.

Hole MBRC032: 30m @ average 7.62 g/t Au (159 -189m downhole) - (unmined)

• • including 15m @15.2 g/t Au (172 -187m downhole)

Hole MBRC036: 23m @ average 1.9 g/t Au (225m - 248m downhole) - (unmined)

• • Including 11m @3.45 g/t Au (237 - 248m)

Hole MBRC054: 10m @ average 2.8 g/t Au (160m - 170m downhole) - (unmined)

• • Including 7m @3.8 g/t Au (160 -167m)

• • Including 3m @7.3 g/t Au (160 - 163m)

Hole MBRC056: 6m @ average 2.7 g/t Au (192 - 198m downhole) - (previously mined)

• • Hole ends in old workings

Hole MBRC060: 18m @ average 3.5 g/t Au (210m - 228 downhole) - (previously mined)

• • Including 9m @ 5.6 g/t Au (210m - 219m)

Hole MBRC062: 16m @ average 2.1 g/t Au (224 - 240m downhole) - (unmined)

• • Including 12m @ 2.6 g/t (224 - 236m)

Manuka's Executive Chairman Dennis Karp said:

"The recent RC surface drilling program at Mount Boppy has shown that the Boppy Main Lode is bigger than previously estimated. It extends 50m deeper than previously defined, up to 100m below the current pit floor and remains open at depth. The wide and high grade gold intercepts observed in 8 holes are most encouraging signs that deeper mining at Mount Boppy becomes an option, either through a deeper open pit or as an underground operation. We will include these results into an upgraded JORC resource likely in the June Quarter. Naturally we are disappointed that the program was not completed as originally planned as a result of the highly unusual weather event, however the results obtained are very exciting.

The company has transitioned to silver production at Wonawinta, after the Mt Boppy deposit provided well over 6 months' more ore and mine life than originally forecast. These new drill results have provided Manuka with a realistic option to stage a second campaign of mining from a deposit that delivered strongly for shareholders.

We continue to pursue our strategy to identify Mt Boppy look-alikes and believe that there is potential for a deeper more substantial deposit based on indications to date."

Technical discussion

The recent RC drilling program comprised:

Primary Target

• • 29 holes (6,171m) testing mineralised extensions beneath the Mt Boppy open pit (Figure 1 below in blue)

  Secondary Targets

• • Four holes (972m) testing a previously undrilled strong IP target south-east of the Boppy pit (Figure 1 below in green);

• • Five holes (612m) south-west of the Boppy pit testing a structural target along the West Boppy Lode and interpreted as a possible faulted northern continuation of the Boppy Main Lode (Figure 1 below in red);

• • Five holes (1016m) testing the previously undrilled northern extension of the Mt Boppy Fault (Fig. 1 below in purple).

The secondary targets all intercepted wide zones of quartz veining and pervasive re-silicification (indicated by green-grey coloration in fresh rock chips) which had ubiquitous anomalous but low tenor gold <1g/t. Widespread gold anomalism indicates the passage of gold-bearing fluids through the system but none of the secondary targets produced gold intercepts of economic grade or width. Interpretation of the drill results with respect to geophysical and structural parameters is ongoing.

The drill holes under the pit were designed to follow up previously reported high grade intercepts. Previous drill programs documented Mt Boppy Main Lode mineralisation at elevations from 150-120m RL, those being 15-45 metres below the open pit floor at 165m RL. The recent program was designed to intercept mineralised depth extensions and determine whether a sufficient increase in resource could be identified that would justify mining that material.

Holes into the primary target were collared at surface (approx. 280m RL) and targeted possible mineralisation ~ 50 to 100m below the pit floor, i.e between 120 to 60m RL.

Previous surface drilling programs into Boppy Main Lode were collared from the west of the open pit, due to the steeply W-dipping mineralisation. Figures 5 - 7 show that around 100m RL the steep westerly dip passes through an inflexion point and thereafter dips steeply to the east. Of the recent holes, ten were drilled from the west of the pit and 19 from the east to target deeper mineralisation. Most holes drilled from west of the pit were deviated to some degree by the presence of the West Boppy Fault, a near vertical fracture, which further complicates the issue of steeply W-dipping strata.

Three holes successfully penetrated the Boppy Main Lode, either the full thickness in an unmined position, or through the historic underground workings (tailing sand, timber support, rubble) together with wall rock to either side of the workings (Figures 4 - 6). Four holes were abandoned due to strong deviation from the planned drill track; showing the difficulties in keeping an RC rig on planned dip and azimuth.

Figure 1. Collar location plan reported Mount Boppy RC drill holes.

On November 30, 2021, a large rain event hit Canbelego and flooded the almost-completed mining operation and the historic underground workings below. As previously reported, this event closed the western haul road around the pit. Subsequent safety issues caused MBRC041 to be abandoned at 192m before reaching its prognosed target depth. Eight further holes planned from the western haul road were cancelled.

Subsequent holes drilled from the east of the pit were drilled in fans of three holes from each drill pad, comprising collar angles of -55, -60 and -65 degrees to maximise the number of penetrations of the Mt Boppy Main Lode (Figure 8). Eight of these holes successfully penetrated the Boppy Main Lode, either the full width in an unmined position, or through the historic underground workings (tailing sand, timber support, rubble) together with wall rock to either side of the workings. Six of the holes deviated widely from their proposed track and were unusable.

With the water level in the pit up to 200m RL a further five holes drilled after 2nd of December intercepted old workings in the Boppy Main Lode and encountered significant water inrush at the old stope which led to nil recovered sample and/or termination of those holes.

The following intercepts are from holes that ended at the Boppy Main Lode interface due to water inrush, bogged rods or nil recovered sample:

• o Hole MBRC028: 8m @ average 1.6 g/t Au (178 - 186m downhole depth)

  • ▪ including 3m @ 2.73 g/t Au (183 - 186m downhole depth)

• o Hole MBRC050: 1m @ 3.45 g/t Au (135-136m downhole depth)

  • ▪ tagged south end of Boppy Main Lode

• o Hole MBRC053: 2m @ average 1.7 g/t Au (224-226m downhole depth)

  • ▪ EOH due water inrush

• o Hole MBRC058: 1m @ average 3.26 g/t Au (229-230m downhole depth)

  • ▪ EOH due old stope, nil recovery

• o Hole MBRC059: 8m @ nil recovery (232 - 240m); hole in old workings

Conclusions

The recent RC drill program under the Mt Boppy pit shows that the Boppy Main Lode mineralisation extends 30m along strike from previous deep intercepts and at least some 100m vertical depth below the pit floor, to 60m RL.

Several wide and high grade gold intercepts (in holes MBRC-032, -036, -060) demonstrate excellent potential to increase the gold resource at Mt Boppy and Manuka anticipates a resource upgrade at Mt Boppy, most likely in the June Quarter. The holes that deviated from their prognosed tracks and those that terminated at the mineralised interface due water inrush did not allow a complete assessment of the Boppy Main Lode depth extension. Further drilling may be required to fully define the extent of mineralisation sufficient to define the full in-situ resource.