Quarterly Report Ending 31 December 2022

The Board of Breaker Resources NL (ASX:BRB, Breaker, or the Company) is pleased to report on a transformational quarter:

Key Highlights

• The Company’s founding Executive Director (Tom Sanders) and key driver of Breaker over the last decade departed the Company as it moves toward development phase. Non-executive Chairman, Peter Cook stepped into the role as acting CEO on an interim basis whilst a replacement was settled.
  
• Sam Smith, previously Chief Operating Officer was appointed as an Executive Director and CEO, formally commencing that role as of 1 January 2023.
• The Lake Roe Gold Project advanced with commercial studies based upon open-pit mining at Bombora and then underground mining of the Tura and Northern Flats lodes.
• Diamond drilling completed during the quarter focused on the primary underground lodes beneath the proposed Bombora open pit. Excellent high-grade results were returned, including:
  
  ‘Northern Flats’ Lodes
  • 1.91m @ 13.66 g/t gold from 543m in BBDD0149W1 (est. true width = 1.34m)
  • 4m @ 8.67 g/t gold from 445m in BBDD0150 (est. true width = 2.80m)
  • 4.35m @ 5.96 g/t gold from 484m in BBDD150W1 (est. true width = 3.05m)
  • 1.9m @ 13.46 g/t gold from 562m in BBDD0154W1 (est. true width = 1.33m)
• Subsequent to the end of quarter, additional high grade results were returned (ref ASX announce of Jan 17, 2023), including the following bonanza hits from the Northern Flats and Tura lodes respectively:
  • 0.78m @ 199.1 g/t gold from 659.37m in BBDD158 (est. true width = 0.54m)
  • 10.27m @ 6.09 g/t gold from 348.5m in BBDD0159 (est. true width = 5.2m)
• The Company completed the divestment of its interest in the Manna Lithium prospect (refer: ASX Announcement 26 October, 2022) for a final payment of A$60M taking the total received from the sale to approximately $88M over the past 12 months. The Company still retains all gold rights over the Manna tenements and retains a 1.5% NSR over other metals including lithium in the tenure (excluding the original Manna JV area).
• The Company commenced drilling at its Ularring Project in the central wheatbelt of WA with an initial 4 diamond holes, jointly funded under the government’s Exploration Incentive Scheme (EIS). Assay results are pending.
• Breaker closed the calendar year with approximately $78M in cash leaving the Company strongly funded. Importantly, the growth in cash has occurred without shareholder dilution.
• Breaker’s market capitalisation increased by over 50% during the quarter to approximately $104M.

The Lake Roe Gold Project (LRGP) is located approximately 100km east of Kalgoorlie. On 20 December 2021, Breaker released an updated JORC 2012 Mineral Resource Estimate for the LRGP containing a total (all JORC categories) of 1.7 million ounces (32 million tonnes at 1.6g/t Au). The resource estimate was prepared and signed off by expert industry consultants, Snowden Optiro. There are three main deposits defined in the overall resource:

1. The Bombora Prospect: 25 million tonnes at 1.8g/t Au containing 1.5 million oz;
2.The Claypan Prospect: 2 million tonnes at 1.1g/t Au containing 69,000oz;
3.The Crescent Kopai Prospect: 4 million tonnes at 1.0g/t Au containing 132,000oz.

The majority of the open-pittable resource is classified in the Indicated resource category, whilst the majority of the primary mineralisation (minable from underground) is classified in the Inferred category due to drill density.

The gold resources at Lake Roe are already on a granted mining lease and have a clear development pathway. Environmental, geotechnical, hydrological and metallurgical studies undertaken to date do not highlight any impediments to development (ASX Release 30 June 2019). Most of the Company’s pre-mining studies are at pre- feasibility level.

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