Announcement PDF 2023 FINANCIAL REPORT ACN 639 887 219 FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2023 FAR EAST GOLD LTD 2023ACN FINANCIAL FAR EAST GOLD 639REPORT 887 219 1 WWW.FAREAST.GOLD 2023 FINANCIAL REPORT ACN 639 887 219 CORPORATE DIRECTORY DIRECTORS AUDITOR Paul Walker Chairman KPMG Level 11, 80 Ann Street Brisbane QLD 4000 Shane Menere Chief Executive Officer Marc Denovan Chief Financial Officer Justin Werner Non-Executive Director COMPANY SECRETARY Catriona Glover Dr Christopher Atkinson Non-Executive Director Michael Thirnbeck Non-Executive Director REGISTERED OFFICE Level 18/324 Queen Street Brisbane QLD 4000 +61 7 3067 3368 ABN: 68 639 887 219 ASX CODE ASX:FEG AUSTRALIAN SOLICITORS GRT Lawyers Level 27, 111 Eagle Street Brisbane QLD 4000 WEBSITE https://fareast.gold/home SHARE REGISTRY Automic Pty Ltd Level 5, 126 Phillip Street Sydney NSW 2000 INDONESIAN SOLICITORS Christian Teo & Partners District 8, Treasury Tower Floor 25-B Sudirman Central Business District Jl. Jend. Sudirman Kav. 52-53 Jakarta 12190 Indonesia 2023 FINANCIAL REPORT ACN 639 887 219 TABLE OF CONTENTS CHAIRMAN’S LETTER 4 FY2023 HIGHLIGHTS 6 OPERATING REVIEW 8 Far East Gold Project Summary Indonesia Australia Tenement Schedule 9 11 16 20 GROUP FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2023 FAR EAST GOLD 2023 FINANCIAL REPORT 21 3 2023 FINANCIAL REPORT ACN 639 887 219 CHAIRMAN’S LETTER “On behalf of the Board of Directors, I would like to thank our shareholders and all our other stakeholders for their ongoing support over the last 12 months and look forward to reporting to you further on what we believe will be an exciting year ahead for the Company”. Dear Investor, On behalf of the Board of Directors of Far East Gold Ltd (‘Far East Gold’ or ‘Company’), it is with great pleasure that I can provide you with our Company’s FY23 Annual Report. In early 2022, Far East Gold successfully completed its Initial Public Offering (IPO), raising $11,734,500 at $0.20 per share and commenced trading on the Australian Securities Exchange (ASX) on 28 March 2022. In November and December 2022, the Company undertook a Placement for institutional and wholesale investors and Share Purchase Plan (SPP) for existing shareholders that was successful in raising a further $6,505,500 at $0.50 per share. The focus for Far East Gold is to explore and develop high quality copper and gold mining assets in Indonesia and Australia. Far East Gold has three mining projects located on the Sunda Magmatic Arc in Indonesia and three Australian mining projects located in Central Queensland’s Drummond Basin and Connors Arc regions. Key highlights for the Company’s projects are as follows: - Woyla Copper Gold Project is a 24,260 ha 6th generation Contract of Work in the Aceh region of North Sumatra, Indonesia that is highly prospective to host high grade epithermal and porphyry deposits. Far East Gold holds a 51% interest in the project that will increase to 80% upon the Company’s completion of a feasibility study and definition of a maiden JORC resource estimate for the project. In September 2022, Far East Gold commenced the first ever drilling in the 25 year history of this project. - Mount Clark West Copper Gold Project is a 1,912 ha EPM (exploration permit for minerals) in Central Queensland, Australia. The project is situated in the Connors Arc region and previous exploration indicates porphyry copper gold deposits at depth Far East Gold has a 90% interest in the tenement through an up-front Earn-In Agreement. In November 2022, Far East Gold announced an Exploration Target of 400Mt – 650Mt at a grade of 0.4% to 0.6% CuEq. - Hill 212 Gold Project is a 1,920 ha EPM (exploration permit for minerals) in Central Queensland, Australia. The project is situated in the highly prospective Drummond Basin and previous drilling indicates epithermal gold vein and breccia deposits. Far East Gold has a 90% interest in the tenement through an up-front Earn-In Agreement. In August 2022, Far East Gold completed its 2,100m Phase 1 RC drilling program. - Blue Grass Creek Gold Project is a 2,240 ha EPM (exploration permit for minerals) in Central Queensland, Australia. The project directly adjoins the Hill 212 tenement and early-stage exploration activities indicate an extension of the Hill 212 epithermal gold vein and breccia deposits into the Blue Grass Creek tenement. Far East Gold has a 90% interest in the tenement through an up-front Earn-In Agreement. Since listing on the ASX, the Company has continued to diligently apply the funds raised in the IPO, the subsequent Placement and SPP to further advance exploration activities on these projects and the permitting required to progress the projects towards mine development and operation. - Trenggalek Copper Gold Project is a 12,813 ha IUP OP (Mining licence for operation and production) in East Java, Indonesia. This advanced project has more than 17,700m of drilling completed and hosts several large-scale porphyry and epithermal prospects. In June 2023, Far East Gold completed the share transfers under the CSPA and now holds a 100% economic interest in the project. On behalf of the Board of Directors, I would like to thank our shareholders and all our other stakeholders for their ongoing support over the last 12 months and look forward to reporting to you further on what we believe will be an exciting year ahead for the Company. - Wonogiri Copper Gold Project is a 3,928 ha IUP Exp (Mining licence for exploration) in Central Java, Indonesia. This advanced project has a JORC 2012 resource estimate which, using a cut-off grade 0.2 g/t AuEq, contains 81.56 million tonnes at 0.44 g/t AuEq (0.38 g/t gold and 0.11% copper). This represents 996,500 ounces of gold and 190 million pounds of copper, or 1.15 million ounces AuEq. At a cut-off grade of 0.5g/t AuEq, the total contained resource estimate is 20.95 million tonnes at 0.85 g/t Au and 0.16% copper, representing 573,000 ounces AuEq consisting of 533,000 ounces of gold and 74 million pounds of copper. Far East Gold holds a 100% economic interest in the project. Yours sincerely FAR EAST GOLD 2023 FINANCIAL REPORT Paul Walker Chairman 4 2023 FINANCIAL REPORT ACN 639 887 219 CHAIRMAN’S LETTER Project Locations WOYLA TRENGGALEK WONOGIRI MT CLARK WEST BLUE GRASS CREEK HILL 212 FAR EAST GOLD 2023 FINANCIAL REPORT 5 2023 FINANCIAL REPORT ACN 639 887 219 FY2023 HIGHLIGHTS Shareholder Value Operations - November 2022 Placement and December 2022 Share Purchase Plan (SPP) raised a combined total of AU$6,505,500. - Upgrade of camp facilities at the Woyla project completed to provide on-site accommodation for over 70 staff at the Anak Perak base camp. - The 2022 Placement and SPP was completed at $0.50 per share. - First ever Induced Polarisation (IP) geophysics survey was completed at the Anak Perak and Rek Rinti prospect areas in the Woyla project. - On 29 March 2023 approval was received from the Indonesian Minister for Energy & Mines for the share transfers required to give effect to the Conditional Share Purchase Agreement (CSPA) for the Company to acquire 100% economic interest in the Trenggalek project. On 6 June 2023 Stage 2 Completion of the CSPA was achieved and transfer of all shares was concluded. First ever IPPKH (Borrow Use) licence granted by the Indonesian Government for the Woyla project which enables drilling and operations to occur. - First ever drill program in the 25 year history of the Woyla project commenced in September 2022. - Phase 1 4,630.9m diamond drill scout program at Anak Perak and Rek Rinti prospect areas in Woyla that comprised 33 holes was completed in December 2022. - Wonogiri Project’s AMDAL environmental approval application progressed - third and final Technical Approval received from the Indonesian Government. - Phase2 10,000m diamond drill scout and resource delineation program at the Anak Perak, Rek Rinti and Aloe Eumpeuk prospect areas in the Woyla project was commenced in January 2023 with approximately 8,000m of drilling completed by 30 June 2023. - - Bonanza grade assay results returned from both the Phase 1 and Phase 2 drill program at the Woyla Project of up to 81g/t gold and 1,359g/t silver. Metallurgical testwork on samples of epithermal type mineralization from south of Randu Kuning deposit at the Wonogiri project was completed and showed high gold recoveries of 96% with 75% of the contained gold being gravity recoverable gold suggesting rapid and low cost recovery is possible for this type of gold mineralization. - Preliminary metallurgical characterization test work on Woyla samples indicates gold recoveries of over 90% and silver recoveries of over 85%. Phase1 2,061m reverse circulation (RC) drill program that comprised 11 holes was completed at the Hill 212 project in September 2022. - 21 line km deep ground penetrating MIMDAS geophysics survey completed at the Mount Clark West project. - Exploration Target defined for the Mount Clark West project of 400 – 650Mt at a grade of 0.4-0.6% CuEq. - 2023 FINANCIAL REPORT On 17 November 2022, the Company’s Woyla Project was a finalist and runner-up for the 2022 Australian Mining Prospect Awards – Discovery of the Year. - - FAR EAST GOLD - Two additional epithermal prospect areas were identified at the Woyla project with peak assays from exposed sulphide bearing quartz brecccia returning 98g/t gold and 77g/t silver. 6 2023 FINANCIAL REPORT ACN 639 887 219 FY2023 HIGHLIGHTS Social Environment - To the extent applicable, the Corporate Governance Principles and Recommendations (4th Edition) as published by the ASX Corporate Governance Council were adopted and relevant policies published on the Company’s website. Participated and supported numerous religious and cultural festivals within the Indonesian project areas. - Audit and Risk Committee established by the Board carried out necessary activities. - Completed a Cultural Heritage Survey at the Hill 212 Project with the Jangga People prior to commencing the Phase1 RC drill program. - Appointed highly experienced, Handi Andrian as the Company’s Head of Sustainability. - Indonesian Government’s Director General – Mineral and Coal invited the Company to participate as a delegate on 30 November 2022 in the Indonesian National Seminar “The 1st Indonesia Minerals Mining Industry Conference-Expo 2022”. - Zero environmental incidents. - Zero fatalities. - 100% compliance with all environmental licence conditions. - Zero lost time injuries. - First listed Australian junior exploration company admitted to the UN Global Compact. - Established additional community based cooperative enterprises to support the Woyla Project on-site exploration activities. - FAR EAST GOLD 2023 FINANCIAL REPORT Governance 7 2023 FINANCIAL REPORT ACN 639 887 219 OPERATING REVIEW WOYLA INDONESIA TRENGGALEK WONOGIRI NT AUSTRALIA WA SA PROJECT LOCATION MINING LICENCE TYPE Woyla Copper Gold Project Aceh, Indonesia 6th Generation Contract of Work Trenggalek Copper Gold Project East Java, Indonesia IUP-Operation and Production Wonogiri Copper Gold Project Central Java, Indonesia IUP-Exploration TENEMENT AREA MT CLARK WEST BLUE GRASS CREEK MINEROLOGY TYPE HILL 212 QLD NSW CURRENT PROJECT STAGE 24,260 ha Porphyry Early-stage exploration completed Phase 1 - 4,640m drilling completed Phase 2 – 13,000m drill program on-going 12,813 ha Porphyry an Epithermal Advanced exploration - 17,786m drilling completed Indo Feasibility & Scoping Study completed Maiden KCMI reserve estimate 3,928 ha Advanced exploration – 21,771m drilling completed Indo Feasibility & Scoping Study completed Porphyry and Epithermal 1.15Moz Au Eq JORC resource estimate Epithermal Advanced exploration – 1,283m drilling completed 400 to 650Mt @ 0.4-0.6% CuEq Exploration Target Early-stage exploration completed Mount Clark West Copper Gold Project Connors Arc, Queensland, Australia Exploration Permit Mineral (EPM) 1,912 ha Early-stage exploration completed Hill 212 Gold Project Drummond Basin, Queensland, Australia Exploration Permit Mineral (EPM) 1,920 ha Epithermal Advanced exploration 2,805m drilling completed Blue Grass Creek Gold Project Drummond Basin, Queensland, Australia Exploration Permit Mineral (EPM) 2,240 ha Porphyry Early-stage exploration completed FAR EAST GOLD 2023 FINANCIAL REPORT 8 2023 FINANCIAL REPORT ACN 639 887 219 OPERATING REVIEW FAR EAST GOLD PROJECT SUMMARY Far East Gold is an Australian public Company listed on the ASX with six copper and gold projects, three located in Indonesia and three in Australia. These projects comprise: Woyla Copper Gold Project Trenggalek Copper Gold Project Wonogiri Copper Gold Project Hill 212 Gold Project Blue Grass Creek Gold Project Mount Clark West Copper Gold Project FAR EAST GOLD 2023 FINANCIAL REPORT 9 - Woyla Copper Gold Project a highly prospective 6th generation Contract of Work in the Aceh region of North Sumatra, Indonesia. This was previously explored by Barrick Gold (1996-1998) and then by Newcrest (1999-2002). - Trenggalek Copper Gold Project is an advanced 12,813 ha IUP OP located in East Java, Indonesia that is highly prospective for island arc-type epithermal and porphyryrelated gold and base metal deposits with 17,786m of drilling completed. - Wonogiri Copper Gold Project is located in Central Java, Indonesia and has 21,771m of drilling completed and a JORC 2012 resource estimate of 533Koz of gold, with a cut off 0.5g/t at the Randu Kuning deposit. This also equates to 996,500 ounces of gold and 190 million pounds of copper, or 1.15 million ounces AuEq with a cut off 0.2g/t. - Mount Clark West Copper Gold Project is located in the Connors Arc, Central Queensland with data identifying a potentially large-scaled porphyry system (or systems) coincident with Cu-Au-Mo chemistry. - Hill 212 Gold Project is located in the highly prospective Drummond Basin, Central Queensland a 10.0 km epithermal gold vein and breccia system has been identified. - Blue Grass Creek Gold Project is an exploration tenement in Central Queensland that directly adjoins the Hill 212 tenement and early-stage exploration activities indicate an extension of the Hill 212 epithermal gold vein and breccia system into this tenement. 2023 FINANCIAL REPORT ACN 639 887 219 OPERATING REVIEW The entities of the Company and the Projects held by each entity upon IPO and completion of the acquisitions are set out in the chart below. Far East Gold, through its subsidiaries, has full operational control of all six projects. FAR EAST GOLD LTD ACN 639 887 219 Far East Gold (Australia) Pty Ltd PT Far East Mnerals Indoneasia ACN 655 123 381 (Indonesian services company) Far East Gold (212) Pty Ltd Far East Gold (MCW) Pty Ltd Far East Gold (BGC) Pty Ltd ACN 651 852 514 ACN 641 485 681 ACN 653 006 770 Hill 212 Project Mount Clark West Project EPM 26217 EPM 26008 Blue Grass Creek Project Woyla Pty Ltd ACN 654 153 536 Woyla Aceh Ltd Woyla Project “Contract of Work” (Cayman Island Co) PT Woyla Aceh Minerals Trenggalek Pty Ltd ACN 651 852 514 PT Sumber Abadi Nusantara* Trenggalek Project “IUP OP” (Indonesia Co) PT Sumber Mineral Nusantara Wonogiri Pty Ltd ACN 155 279 477 PT Alexis Perdana Mineral (Indonesian Co) FAR EAST GOLD 2023 FINANCIAL REPORT Wonogiri Project “IUP Exp” PT Alexis Perdana Mineral 10 EPM 27794 2023 FINANCIAL REPORT ACN 639 887 219 OPERATING REVIEW INDONESIA INDONESIAN PROJECTS Given the extensive in-Country experience of the Far East Gold Board of Directors and key management, and their track record of accomplishment in successful mine development the Company has the right team in place to unlock the potential of the Indonesian Projects. Indonesia is a major contributor to the global mining sector and is a low production-cost jurisdiction with one of the lowest AISC (all in sustained costs) in the region. The creation of a Central Mining Authority in Indonesia and introduction in 2020 of the Omnibus Laws improved certainty in the sector and for Foreign Direct Investment into the Indonesian jurisdiction. SUNDA MAGMATIC ARC KM The Sunda Magmatic Arc hosts world class copper gold porphyries such as Batu Hijau and the Tujuh Bukit discovery. Vast portions of the area remain underexplored. N 0 500 WOYLA WONOGIRI 11 TRENGGALEK 2023 FINANCIAL REPORT ACN 639 887 219 OPERATING REVIEW INDONESIA WOYLA COPPER GOLD PROJECT WOYLA PIDIE PROVINCE ANAK PERAK 5KM RINTI UPPER REURIEUNG ALOE EUMPUEK ALOE REK MIDDLE BEURIEUNG BEURIEUNG PORPHYRY DOLOK ACEH BARAT PROVINCE LOWER BEURIEUNG ALOE VERA PROSPECT The Woyla Copper Gold Project is a highly prospective 24,260 ha 6th generation Contract of Work in the Aceh region of North Sumatra, previously explored by Barrick Gold (1996-1998) and then by Newcrest (1999-2002). Historic exploration included: - There is more than 13km of collective strike length of gold bearing low sulphidation epithermal type quartz vein systems. The Company has identified two additional prospect areas providing numerous drill ready vein targets at the project’s six main epithermal prospect areas that are located within an approximately 8km x 6km area. Woyla copper gold project FAR EAST GOLD 2023 FINANCIAL REPORT Aeromagnetic and radiometric survey. Landsat TM based lithostructural interpretations. Regional stream sampling and mapping. Petrographic investigations. Anomaly follow-up prospecting and soil/trench sampling. 12 2023 FINANCIAL REPORT ACN 639 887 219 OPERATING REVIEW INDONESIA WOYLA COPPER GOLD PROJECT The Woyla project is also prospective for porphyry copper-gold with three distinct magnetic anomalies on the tenement. - Preliminary metallurgical characterization test work on Woyla samples and suggests that a significant part of the gold and silver is associated with coarse gravity gold. The average cyanide soluble gold recovery (gravity and free gold) was 91%, and for silver 86%. The non-cyanide leachable gold was evenly distributed amongst carbonate, arsenopyrite, other sulphides, and silicate encapsulated minerals. The diagnostic leach tests indicate that gold and silver can be recovered using conventional cyanide leaching. A significant part of the gold and silver is associated with course gravity gold. - Two additional epithermal prospect areas were identified at the Woyla project with peak assays from exposed sulphide bearing quartz brecccia returning 98g/t gold and 77g/t silver. - On 17 November 2022, the Company’s Woyla Project was a finalist and runner-up for the 2022 Australian Mining Prospect Awards – Discovery of the Year. Operations by the Company on the Woyla Project in FY 2023 included: - Upgrade of camp facilities at the Woyla project completed to provide on-site accommodation for over 70 staff at the Anak Perak base camp. - First ever Induced Polarisation (IP) geophysics survey was completed at the Anak Perak and Rek Rinti prospect areas in the Woyla project. - On 7 September 2022, the Company was advised that the Minister of Environment and Forestry of the Republic of Indonesia (MoEF) had signed a Decree dated 6 September 2022 which granted the IPPKH and contained the “Approval of the Borrow-Use Management Ability Statement of the Gold and its Associated Mineral Exploration Activities” in the Woyla Project’s Contract of Work area. - First ever drill program in the 25 year history of the Woyla project commenced in September 2022. - Phase 1 4,630.9m diamond drill scout program at Anak Perak and Rek Rinti prospect areas in Woyla that comprised 33 holes was completed in December 2022. - Phase2 10,000m diamond drill scout and resource delineation program at the Anak Perak, Rek Rinti and Aloe Eumpeuk prospect areas in the Woyla project was commenced in January 2023 with approximately 8,000m of drilling completed by 30 June 2023. - Bonanza grade assay results returned from both the Phase 1 and Phase 2 drill program at the Woyla Project of up to 81g/t gold and 1,359g/t silver. - Drill hole RDD004 was drilled to test a projected vein occurrence to the southeast of hole RRD001-003, in a location where no vein was exposed at surface. The hole intersected a 61m wide zone of massive quartz from 98 to 159m, representing an apparent true width of approximately 56m. The quartz vein intercepted in RRD004 is predominately massive crystalline with common multiphase quartz breccia containing prominent colloform and crustiform banded quartz with common ginguro banded zones manifest by crenulated bands of dark grey-black sulphides. A very rare occurrence of fine-grained electrum mineralization was noted at 108.8m downhole in a narrow zone of ginguro banded quartz, this was associated with an assay of 78g/t Au and 631 g/t Ag over 0.5m. Woyla copper gold project FAR EAST GOLD 2023 FINANCIAL REPORT 13 2023 FINANCIAL REPORT ACN 639 887 219 OPERATING REVIEW INDONESIA TRENGGALEK COPPER GOLD PROJECT DALANG TURU TRENGGALEK 5KM SILICIFIED ZONE VEIN INTERPRETATION SURUH GREGAH MIRI/ CENGGER TIMAHAN BOGORAN NGERDAN TANJUNG KAMPUNG BARU BULUROTO TORONGAN The Trenggalek Copper Gold Project is an advanced 12,813 ha IUP highly prospective for island arc-type epithermal and porphyryrelated gold and base metal deposits. Multiple prospects with large alteration footprints and associated gold-multielement anomalies with a range of epithermal and porphyry-related alteration/ mineralisation signatures. Operations by the Company on the Trenggalek Project in FY 2023 included: Large tracts of the Trenggalek IUP have yet to be prospected, with potential to identify new prospect areas. Interpretation of airborne magnetic survey data by previous companies identified potential buried porphyry systems and reflected on surface with zones of jasperoidal alteration and hydrothermal breccia found within overlying limestone and volcanic stratigraphy in parts of the tenement. FAR EAST GOLD 2023 FINANCIAL REPORT SINGGAHAN 14 - The Company maintained full control of the project, accounts and staff under the terms of the the Conditional Share Purchase Agreement (CSPA). - On 29 March 2023 approval was received from the Indonesian Minister for Energy & Mines for the share transfers required to give effect to the CSPA for the Company to acquire 100% economic interest in the Trenggalek project. - On 6 June 2023 Stage 2 Completion of the CSPA was achieved and transfer of all shares was concluded. - The Company continued to progress of the application for the Izin Persetujuan Penggunaan Kawasan Hutan (IPPKH – borrow use licence) to allow the Company to carry out its drilling program on forest designated land within the tenement. 2023 FINANCIAL REPORT ACN 639 887 219 OPERATING REVIEW INDONESIA WONOGIRI COPPER GOLD PROJECT WONOGIRI BUKIT TUMBU BUKIT PITI 5KM RANDU KUNING GEBLAK JANGGLENGAN The Wonogiri Copper Gold Project is an advanced 3.928ha IUP (Exploration Mining Permit) for porphyry and epithermal gold and base metals. Wonogiri has a JORC Resource 1.15Moz AuEq sub outcropping porphyry prospect which remains open at depth. Operations by the Company on the Wonogiri Project in FY 2023 included: - Technical Approval for the Compliance of Emission Quality Standards for the Wonogiri Project was formally approved by the MoEF. - MoEF formally approved the Company’s B3 Waste submission. - The Randu Kuning prospect at Wonogiri, holds a shallow gold rich porphyry deposit returning consistent wide economic grade Au and Cu mineralisation from surface, with only the top 500m drill tested to date. The deposit remains open at depth. Metallurgical test work of porphyry and epithermal was undertaken with samples showing high gold recoveries of 96%, most being attributable to high extraction rate gravity recoverable gold of 75%. - The deposit has provided excellent metallurgical test results, with up to 89.0% recovery of Au and 93% of Cu via flotation, with potential for 55% recovery of gold by gravity. Updated Indonesian Government feasibility study completed – update was requested by MoEf in order to incorporate the new proposed dry stack tailing solution. - Updated Scoping Study commenced – draft received. Awaiting feedback on updated Indonesian Government feasibility to finalise Scoping Study. - AMDAL environmental permit continued to be progressed for the planned Carbon-in-Leach (CIL) processing mill operating at a rate of up to 1 million tonnes per year. 1.15 million ounce gold equivalent JORC 2012 mineral resource comprising 996 thousand oz Au (48% measured, 6% indicated and 46% inferred); and 190 million lbs Cu (38% measured, 3% indicated and 59% inferred). FAR EAST GOLD 2023 FINANCIAL REPORT 15 2023 FINANCIAL REPORT ACN 639 887 219 OPERATING REVIEW AUSTRALIA AUSTRALIAN PROJECTS Far East Gold’s three Australian projects are located in the highly prospective Drummond Basin and Connors Arc areas in Queensland and are in close proximity to other world class operational mine sites. The Queensland portfolio consists of two epithermal gold projects and one porphyry copper gold project. Far East Gold’s three Australian Projects are highly prospective for epithermal gold and copper gold porphyry deposits. Far East Gold intends to build upon the initial scout drilling which has returned promising indications for economic mineralisation of size. DRUMMOND BASIN & CONNORS ARC N Far East Gold’s projects at Hill 212, Blue Grass Creek and Mount Clark West are located in the highly prospective Drummond Basin and Connors Arc. 0 100 200 KM BLUE GRASS CREEK MT CLARK WEST Mackay Hay Point Port HILL212 N 0 100 DRUMMOND BASIN 200 KM BLUE GRASS CREEK MT CLARK WEST Mackay Hay Point Port HILL212 DRUMMOND BASIN FAR EAST GOLD 2023 FINANCIAL REPORT 16 2023 FINANCIAL REPORT ACN 639 887 219 OPERATING REVIEW AUSTRALIA HILL 212 GOLD PROJECT DRUMMOND BASIN CONNERS ARC HILL212 Mackay Home creek MT COOLON GOLD MINES P/L BlueGrass Creek HILL212 5KM 100KM N The Hill 212 Gold Project comprises one tenement (EPM 26217), which covers an area of 1,920 ha. The project is located 30 km east of Mt Coolon, in central Queensland, approximately 160 km west of Mackay. Operations by the Company on the Hill 212 Project in FY 2023 included: Far East Gold has entered into an Earn-In Agreement with Ellenkay Gold Pty Limited (Ellenkay) for the Hill 212 Gold Project that secures Far East Gold up to 90% economic interest. The Hill 212 tenement is located in the highly prospective Drummond Basin and a 10km epithermal gold vein and breccias deposit has been identified. Hill 212 Phase 1 Drill program FAR EAST GOLD 2023 FINANCIAL REPORT 17 - On 30 August 2022, the Company commenced drilling at the Hill 212 Gold Project. The initial Phase 1 drilling that comprised a 2,060m reverse circulation drill program across 11 holes to target depth and lateral extensions of mineralized quartz veins intersected by previous drilling at the project and test an extensive area of exposed quartz veins in the recently discovered Bobcat zone. - The Phase 1 drill program also tested two distinct geophysical spectral anomalies and interpreted linear features defined by the Company’s 2021 CSAMT geophysical survey. - The results from the Phase 1 drill program will assist in testing the project’s conceptual geological model that the Hill 212 veins exposed on surface and intersected on the tenement are representative of a high-level part of the vein system with the high-grade gold-silver zone occurring deeper in the system. - The Cultural Heritage Survey conducted by the Jangga People for the new access roads and drill pad locations was successfully completed on 16 August 2022. No Aboriginal, archeological or historical objects and no significant sites were found during the survey. Consequently, the Company has completed construction of the access roads and 40 surveyed drill pads to allow flexibility in location choices for both current and future phases of the project’s drill program. - Results from the recent 11 hole reversed circulation scout drilling program at the Hill 212 Gold Project were successful in improving the Company’s understanding of the nature of the mineralisation of the project’s vein system and to identify further areas for additional exploration. 2023 FINANCIAL REPORT ACN 639 887 219 OPERATING REVIEW AUSTRALIA BLUE GRASS CREEK GOLD PROJECT BLUE GRASS CREEK Mackay DRUMMOND BASIN Home creek MT COOLON GOLD MINES P/L BLUE GRASS CREEK HILL212 5KM 100KM N The Blue Grass Creek Gold Project comprises one tenement (EPM 27794), which covers an area of 2,240 ha and is located immediately adjoining and north of the Hill 212 Gold Project. The project is located 30 km east of Mt Coolon in Central Queensland, approximately 160 km west of Mackay. Far East Gold has entered into an Earn-In Agreement with Ellenkay for the Blue Grass Creek Gold Project that secures Far East Gold up to 90% economic interest in the tenement. Operations by the Company on the Blue Grass Creek Project in FY 2023 included field investigations to confirm the epithermal vein trend from Hill 212 into the Blue Grass Creek tenement. Above: Altered interpretation from Aster and Landsat satellite data Above: Extensive Epithermal Vein System in Hill 212 expected to trend into Blue Grass Creek FAR EAST GOLD 2023 FINANCIAL REPORT 18 2023 FINANCIAL REPORT ACN 639 887 219 OPERATING REVIEW AUSTRALIA MOUNT CLARK WEST COPPER GOLD PROJECT CONNORS ARC Mackay MT CLARK WEST DRUMMOND BASIN Nebo Hail Creek Coal Mine MT CLARK WEST Nebo 100KM N The Mount Clark West Copper Gold Project comprises one tenement (EPM 26008), which covers an area of 1,912 ha. The project is located 24 km northwest of Nebo, in central Queensland, approximately 100 km west-southwes