Hillgrove Resources : HITS 166M OF COPPER MINERALISATION AT KANMANTOO

HGO.AX

Commenting on the drilling results, Hillgrove CEO and Managing Director, Lachlan Wallace said: 'The multiple high-grade Cu-Au intersections in hole KTDD208 which aggregate to over 166m at 0.9% Cu and 0.13 g/t Au are an exciting confirmation of the large volume of mineralisation intersected in the earlier KTDD205 drill hole.

This is a major breakthrough in the scale of the possible underground opportunity and justifies the continued drilling to better define the mineralised zones and their Cu-Au endowment. Overall, the drilling results continue to demonstrate the opportunities for growing the underground resource at Kanmantoo and are an exciting development which, coupled with the rising copper price, provide opportunities to expand the potential mining inventory and optimise the existing plant and tailings storage capacity at the Kanmantoo site

Further to the announcements on 3 May3 and 6 May4 and 24 June5 2021, Hillgrove Resources Limited (Hillgrove, the Company) (ASX:HGO) is pleased to provide the following Kanmantoo Underground drilling update, located 55kms southeast of Adelaide in South Australia and hosted within the Delamerian Orogen, host to the Stavely porphyry Cu-Au mineral system.

In total, 37 diamond holes have been drilled in 2021 for 17.2 kms of drilling, of which the final nine holes are reported herein. This drilling update demonstrates that the drilling over the past two months since the June release has continued to expand the footprint of the Cu-Au mineralisation for underground evaluation. The Cu-Au intersection in drill hole KTDD208 is a confirmation and extension of the previous wide zone of multiple Cu-Au intersections reported on 6 May 2021 for KTDD205 of 170.65m @ 1.01% Cu. Both KTDD205 and KTDD208 drill holes have intersected multiple higher-grade Cu-Au lodes across a wide zone of mineralisation over approximately 130m vertically (920-780RL), approximately 70m apart along strike6 , and both intersect the same mineralised zones over 150m in horizontal width.

In addition to the wide zones intersected in drill hole KTDD208 zone, drill hole KTDD203_W5 has confirmed the down dip continuation of the mineralisation to over 800m below surface. This hole confirms the previously released KTDD203_W4 result of 4.55m @ 1.5% Cu, 0.24 g/t Au. This new intercept in KTDD203-W5 has a particularly high gold endowment of over 5 g/t Au over 3m and is also demonstrating the continuation of the Cu-Au endowment at Kanmantoo.

Finally, the drill results for the Spitfire and South-West Kanmantoo zone also confirm the extension of this zone and its gold endowment. Drill hole KTDD206_W4 has intersected a higher-grade gold zone of over 8 g/t Au over 2m, associated within a broad zone of magnetite alteration. In the open pit, this particular style of mineralisation generated high gold returns to the Cu concentrate and will be investigated in future metallurgical test work. Overall, every drill hole since the June drilling update has delivered a Cu-Au intercept that confirms the underground opportunity at Kanmantoo

Summary of Hillgrove's 2019 - 2021 Drilling Results

The Company commenced drilling the underground Cu-Au opportunity in 2019, and to date assays have been received for 68 drill holes into the Kavanagh, Nugent and more recently the Spitfire and South-West Kavanagh Cu-Au mineralisation. These 68 drill holes have yielded 92 Cu-Au intersections greater than 3m in width with >0.6% Cu, and only six (6) holes with sub-grade copper. This is an outstanding achievement given the strong structural controls on the Cu-Au mineralisation and is a testimony to the controlled drilling practices employed by the Company.

Contact:

Lachlan Wallace

Tel: +61 8 7070 1698

ABOUT HILLGROVE

Hillgrove is an Australian mining company listed on the Australian Securities Exchange (ASX: HGO) and focused on underground development at the Kanmantoo Copper Mine in South Australia and mineral exploration in the south-east of South Australia. The Kanmantoo Copper Mine is located less than 55 kilometres from Adelaide in South Australia.

Competent Person's Statement

The information in this release that relates to the Exploration Results is based upon information compiled by Mr Peter Rolley, who is a Member of The Australian Institute of Geoscientists. Mr Rolley is a full-time employee of Hillgrove Resources Limited and has sufficient experience relevant to the styles of mineralisation and type of deposit under consideration to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code)'. Mr Rolley has consented to the inclusion in the release of the matters based on their information in the form and context in which it appears.

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