• White Dam gold mine is generating good free cash flow which is being reinvested to add value and optimize operations. Looking to divest White Dam to focus efforts on Drummond Basin projects.
• Drilling underway at the Twin Hills gold project, with assays expected in coming weeks. Early indications suggest mineralization is confirming expectations. Goal is to grow resource base from 760k ounces to over 1 million ounces.
• Advancing scoping studies for Drummond Basin projects in late 2022. Evaluating optimal development approach based on resource size and quality - Twin Hills may become central processing hub rather than Yandan.
• Looking to finalize deals for Milo, Mount Morgan, and other non-core assets over next 3-4 months. Will then critically evaluate whether to divest or JV the Fontana and Mt Perry projects.
• Completed $1.28M loyalty option raising, and option conversions already underway. Well-funded for 2022 drilling program of ~20,000m. Additional funds from White Dam sale and option conversions will further support exploration efforts.

About GBM Resources

GBM Resources is an Australian mineral exploration company focused on discovering large gold and copper deposits in the Drummond Basin region of North Queensland, Australia. The company has assembled a portfolio of projects prospective for gold and copper mineralization through acquisitions and joint ventures. GBM is now streamlining its portfolio to focus exploration efforts on its core Twin Hills gold project.

Interview with Peter Rohner, MD of GBM Resources

Streamlining Non-Core Assets

GBM's White Dam gold mine has been generating positive free cash flow since the company took over operations in mid-2021. While the mine provides funding to cover overhead costs, it is considered a non-core asset longer term. GBM is assessing opportunities to fully divest White Dam or do a joint venture sale to free up capital to accelerate exploration activities at Twin Hills.

The company is also looking to finalize the deals on several non-core exploration joint ventures in the coming months. This includes the Mount Morgan project JV with private company Smartset Services, the Milo project sale to Trigg Mining, and the Mayfield project JV with Japanese partner Nippon. Once these are completed, GBM will re-evaluate whether to continue, sell or joint venture its remaining early-stage exploration projects.

Ramping Up Exploration at Twin Hills

GBM acquired the Twin Hills gold project in January 2022, adding 760,000 ounces of resources to its portfolio. The project contains the 309 underground mine, which was operated briefly in 2006, and the Line Sister deposit. GBM considers Twin Hills to be a core asset with strong potential for resource growth and development.

The company has an extensive drilling program underway, with over 12,000 meters planned for the first half of 2022 focused on expanding the resources at both 309 and Line Sister. Results so far have confirmed extensions to mineralization and a better understanding of the geology. GBM believes Twin Hills could quickly grow to over 1 million ounces, making it the flagship project.

Advancing Towards Development

With the additional ounces from Twin Hills, GBM now has 1.6 million ounces of total gold resources in its Drummond Basin portfolio. The company aims to grow this above 2 million ounces over the next 6-12 months as it works towards evaluating development options. GBM has the internal expertise to advance Twin Hills through scoping, feasibility and into production.

The high grades and scale of the Twin Hills deposits provide flexibility in how they could be developed. Underground mining is an option at 309, while open pit potential exists across the project. The company is assessing whether to centralize processing at its Yandan mill or construct a new plant at Twin Hills. Trade-off studies will be conducted over the next 6-9 months before settling on a development scenario.

Well-Funded Through Options and Asset Sales

GBM raised $1.28 million in late 2021 from a loyalty options issue, which shareholders are already converting to boost the company's cash balance. The sale of White Dam and potential deals on several non-core assets could unlock further funding over the next 6-12 months.

GBM is in a strong financial position to aggressively explore Twin Hills in 2022 while advancing the project towards feasibility studies. The company's renewed focus on its core gold assets provides investors with leverage to exploration success and resource growth at Twin Hills in the near-term.

Conclusion

With its non-core portfolio streamlining underway, GBM Resources is setting itself up as a pure-play gold exploration and development company focused on advancing Twin Hills. The project has strong early indications of resource growth potential and several development options given the high grades encountered. GBM is funded to deliver news flow from aggressive drilling campaigns in 2022. The company's uncovered exploration upside and clear path towards feasibility studies provides investors with an attractive leveraged exposure to the Twin Hills gold project.