Communicators

Chesser Resources Limited (“Chesser” or “the Company”; ASX:CHZ) is pleased to provide an update on drilling results from its flagship Diamba Sud Gold Project in Senegal, West Africa.

HIGHLIGHTS

Area D

-          Drilling intercepted widespread intervals of thick, shallow, high-grade oxide mineralisation, significantly extending zones from previous drilling in multiple directions. Results include;

-          44m at 4.37 g/t gold from 18m, including

-          4m at 13.29 g/t gold from 20m

-          4m at 9.96 g/t gold from 54m, and

-          1m at 13.30 g/t gold from 60m

-          49m at 3.64 g/t gold from 10m, including

-          8m at 10.75 g/t gold from 34m

-          38m at 4.36 g/t gold from 2m, including

-          22m at 6.66 g/t gold from 10m,

-          24m at 2.87 g/t gold from 10m, including

-          2m at 12.0 g/t gold from 12m

-          17m at 1.90 g/t gold from 48m

-          Deeper drilling returned sulphide mineralisation from structural zones and hydrothermal breccias in fresh rock as likely feeder zones to overlying oxide mineralisation. Results include;

-          17.9m at 2.36 g/t gold from 82.3m, including

-          0.95m at 19.40 g/t gold from 89.35m

-          5m at 3.57 g/t gold from 82m, including

-          0.9m at 12.80 g/t gold from 85m

-          14m at 2.34 g/t gold from 114m

“We are delighted to report very positive results from the first 11 of 27 holes drilled at Area D following the wet season. We have extended the thick oxide mineralisation by over 100m in multiple directions from the original discovery mineralisation with these step outs with more results pending. Deeper drilling has also intersected wide zones of mineralisation, with numerous mineralised structural zones pointing to likely controls on mineralisation. Results from the remaining program will assist to fully understand the controls of mineralisation. Whilst this discovery is still at an early stage, extensions to the thick oxide zones are very exciting. Results from an additional 16 holes from Area D are pending, as well as extensional drilling at Area A, which is ongoing. We are looking forward to releasing more results of this extensive program as they become available.” commented Mike Brown, Managing Director and CEO of Chesser Resources.

Figure 1: Area D plan view showing historical drilling, holes pending assays, and holes reported in this release with selected significant results.[i]

The Company is pleased to report drill assay results from 3 diamond holes (DD) and 8 reverse circulation (RC) holes (totalling 573m and 1,094m respectively). All holes are from Area D, where the company reported a high-grade discovery earlier in the year (see ASX announcement dated July 28, 2020).

AREA D

These are the first results reported from the fully funded planned program of 5,000m DD drilling and 15,000m of RC drilling that the Company is currently undertaking at Diamba Sud. The initial 3 DD holes and 8 RC holes reported in this release are the first results from 7 DD holes and 20 RC holes the company has drilled at Area D since commencing the drill program.

The RC drilling results have significantly extended the thick oxide zones intersected by previously reported holes DRS153-157 (the “Discovery Traverse”)[ii]. All the RC holes intersected significant wide gold mineralisation within saprolitic material. The mineralisation was mainly oxidised, in the form of limonite after pyrite and/or staining, with minor fine-grained pyrite zones. Further drilling is needed to confirm if the oxidised material has a horizontal lithological control additional to a structural control. Bedding from DD holes suggests the sediments are dipping gently to the northwest, striking to the northeast.

RC Holes DSR173, DSR174 and DSR175 were drilled on an east-west traverse to the north east of Area D on the 1429525 Line. All three holes hit significant oxidised mineralisation in saprolitic sediments and hole DSR173 intersected a mineralised zone in fresh rock from 103m downhole depth. DSR175 has increased the oxide trend to the northeast at least 50m and remains open. Holes DSR173 and DSR174 have delineated what may be a northwest trending oxide zone at least 100min strike length, which is open to the northwest with further results pending.

Select significant RC intersections included;

Figure 2: 1429500N section showing significant intersections of oxide and fresh rock mineralisation from drilling reported in this release.[iii]

RC holes DSR176, DSR177, DSR178 and DSR179 were drilled on an east-west section approximately 100m to the northwest of the discovery traverse (Figure 2). All four holes intersected thick oxidised mineralisation and significant wide zones of pyrite mineralisation in fresh rock. The holes are proximal to previously reported DSR103, which intersected 53m at 2.61 g/t gold.[iv] Further drilling is needed to confirm the relationship between these zones of mineralisation and a likely northwest trending mineralised structure.

Select significant RC intersections included;

DSR172 was drilled under the central area of the Discovery Traverse and intersected thick oxide mineralisation in saprolitic sediments: 37m at 1.28m g/t gold from 24m. At 90m downhole depth it intersected a pyrite mineralised zone in fresh rock. Further drilling is needed to determine the controls on the mineralisation.

Sulphide mineralisation

Drilling points to multiple potential structural controls, including the hydrothermal breccias, as the principal mineralisation system below the oxide mineralisation, which is very encouraging for further exploration work. Multiple intersections of pyrite mineralisation in DSR179, DSR178, and DSR176 suggest the mineralisation system may be extensive.

The initial 3 DD holes were drilled to test the depth extent of the high-grade oxidised and fresh rock mineralisation intersected in the Discovery Traverse, and to investigate the nature of a major NE trending structure. The holes encountered saprolitic sediments (fine grained sandstones and carbonates) transitioning into fresh limestones. Mineralisation was encountered in varying zones of extensive hydrothermal breccias with silica and carbonate matrix. Fine grained pyrite in stringers and matrix infill was observed in the breccia zones, with silicification and minor to moderate iron carbonate alteration.

Hole DSDD014 intersected a mineralised breccia in fresh rock that aligns with the northeast trending structure, that holes DSR155 and DSR156 intersected in oxidised material (Figure 3).[v] Further results and drilling are needed to confirm this interpretation.

Figure 3: 1429450N section showing drilling reported in this release intersecting a mineralised hydrothermal breccia , currently interpretated as trending NE, with a late NE regional fault indicated.[vi]

Hole DSDD016 was located at the southern end of the Discovery Traverse and intersected numerous mineralised and strongly silica/carbonate altered hydrothermal breccias in fresh rock. Results from DSDD017, drilled to the west and under DSDD016 are pending and should confirm the controls on mineralisation and orientation of the breccias.

Select significant DD intersections of fresh and oxide mineralisation included;

NEXT STEPS

Drill Results Pending

The receipt of drill assay results is pending from 16 holes drilled at Area D (4 DD and 12 RC) as well as ongoing drilling from Area A. The company is looking to complete the expected 20,000m program in March 2021, with a steady flow of results expected until late April 2021. The Company is also planning to extend gradient array induced polarisation geophysics (GAIP) over the large parts of the northern Diamba Sud block (DS1) early in 2021. GAIP has been proved to be effective for identifying structures and certain lithological units (such as granodiorites). The Company is well funded to complete all these activities following a ~$6million private placement in July of this year.

Table 1: Summary of significant gold intersections from Diamba Sud

Intervals are reported using a threshold of 1g/t Au or greater average over the interval equal or greater to 1m and selects all material greater than 0.30g/t Au with a maximum internal dilution of 2m. The true width of holes are unknown. Holes not included in this Table were not considered to have intersected significant gold mineralisation. Reported intervals with voids (*) excluded the void interval where included in a reported interval, with weighted averages taken for sections above and below the void and reported as a weighted average.

This release was authorised by the Board of Directors of Chesser Resources Limited.

-END-

For Further information, please contact:

Mike Brown, Managing Director

Mikeb@chesserresources.com.au

Mobile: +1 778 822 4345

Figure 4: Schematic regional geology of eastern Senegal, showing the Diamba Sud Project and its proximity to both the SMSZ, and the major gold operations and projects on or adjacent to splays off the SMSZ.

ABOUT CHESSER RESOURCES

Chesser Resources is an ASX listed gold exploration company with projects located in Senegal, West Africa. Chesser has announced a high-grade gold discovery at its Northern Arc target on its flagship Diamba Sud project. The Company currently holds ~300km2 of highly prospective ground in this underexplored world-class gold region. The Company has a corporate office located in Brisbane, Australia and a corporate and technical team based in Dakar, Senegal.

Diamba Sud is the Company’s flagship project, covering 53.2km2 over the gold-bearing Kedougou-Kenieba Inlier, Diamba Sud consists of two blocks referred to as DS1 in the north and DS2 in the south.

The Project is located ~2km to the west of the Senegal Mali Shear Zone (SMSZ), a major regional structure and host to numerous multimillion-ounce gold deposits including; B2Gold’s 7.6Moz Fekola mine, Barrick’s 18Moz Loulo-Gounkoto complex and AngloGold Ashanti/IAMGold’s Sadiola and Yatela mines. DS1 lies 7km to the west of the 5.5Moz Gounkoto mine and to the immediate east of the privately owned 0.5Moz Karakaene mine.

Competent Person’s Declaration

The information in this report that relates to the Diamba Sud and Diamba Nord exploration results, Mineral Resources and Exploration Targets is based on information compiled by Mr Mike Brown, BSc Hons, MAIG, who is employed as Managing Director for Chesser Resources Ltd. Mr Brown has sufficient experience which is relevant to the style of mineralisation and type of deposits under consideration and to the activity which he is undertaking 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.’ Mr Brown consents to the inclusion in the announcement of the matters based on his information in the form and context that the information appears.

Forward looking statements

Statements relating to the estimated or expected future production, operating results, cash flows and costs and financial condition of Chesser Resources Limited’s planned work at the Company’s projects and the expected results of such work are forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by words such as the following: expects, plans, anticipates, forecasts, believes, intends, estimates, projects, assumes, potential and similar expressions. Forward-looking statements also include reference to events or conditions that will, would, may, could or should occur. Information concerning exploration results and mineral reserve and resource estimates may also be deemed to be forward-looking statements, as it constitutes a prediction of what might be found to be present when and if a project is developed.

These forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable at the time they are made, are inherently subject to a variety of risks and uncertainties which could cause actual events or results to differ materially from those reflected in the forward-looking statements, including, without limitation: uncertainties related to raising sufficient financing to fund the planned work in a timely manner and on acceptable terms; changes in planned work resulting from logistical, technical or other factors; the possibility that results of work will not fulfil projections/expectations and realize the perceived potential of the Company’s projects; uncertainties involved in the interpretation of drilling results and other tests and the estimation of gold reserves and resources; risk of accidents, equipment breakdowns and labour disputes or other unanticipated difficulties or interruptions; the possibility of environmental issues at the Company’s projects; the possibility of cost overruns or unanticipated expenses in work programs; the need to obtain permits and comply with environmental laws and regulations and other government requirements; fluctuations in the price of gold and other risks and uncertainties.

ATTACHMENT 1

Table 2: Location of RC drilling reported

Azimuths taken from the top of the down hole survey

[i] Refer to ASX announcement on 25 March 2019, 10 April 2019, 6 May 2019, 14 May 2019, 26 August 2019, 3 September 2019, 21 January 2020, 21 March 2020, 17 June 2020, 28 July 2020 for drilling results. The Company is not aware of any new information or data that materially affects the information contained in those announcements.

[ii] Refer to ASX announcement on 28 July 2020 for drilling results. The Company is not aware of any new information or data that materially affects the information contained in that announcement.

[iii] Refer to ASX announcement on 25 March 2019, 10 April 2019, 6 May 2019, 14 May 2019, 26 August 2019, 3 September 2019, 21 January 2020, 21 March 2020, 17 June 2020, 28 July 2020 for drilling results. The Company is not aware of any new information or data that materially affects the information contained in those announcements.

[iv] Refer to ASX announcement on 3 September 2019 for drilling results. The Company is not aware of any new information or data that materially affects the information contained in those announcements.

[v] Refer to ASX announcement on 28 July 2020 for drilling results. The Company is not aware of any new information or data that materially affects the information contained in that announcement.

[vi] Refer to ASX announcement on 25 March 2019, 10 April 2019, 6 May 2019, 14 May 2019, 26 August 2019, 3 September 2019, 21 January 2020, 21 March 2020, 17 June 2020, 28 July 2020 for drilling results. The Company is not aware of any new information or data that materially affects the information contained in those announcements.