HILLGROVE RESOURCES LIMITED — Investor Presentation 2021

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AUSTRALIA’S NEXT COPPER MINE LACHLAN WALLACE IIIII CEO & MANAGING DIRECTOR 7 MAY 2021

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DISCLAIMER & COMPETENT PERSON STATEMENT

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DISCLAIMER

No representation or warranty is or will be made by any person (including Hillgrove Resources Limited ACN 004 297 116 (“Hillgrove”, “HGO”, or the “Company”) and its officers, directors, employees, advisers and agents) in relation to the accuracy or completeness of all or part of this document (the “Document”), or the accuracy, likelihood of achievement or reasonableness of any forecasts, prospects or returns contained in, or implied by, this Document or any part of it. This Document includes information derived from third party sources that has not been independently verified.

This Document contains certain forward-looking statements with respect to the financial condition, results of operations and business of Hillgrove and certain plans and objectives of the management of Hillgrove. Forward-looking statements can generally be identified by the use of words such as ‘project’, ‘foresee’, ‘plan’, ‘expect’, ‘aim’, ‘intend’, ‘anticipate’, ‘believe’, ‘estimate’, ‘may’, ‘should’, ‘will’ or similar expressions. Indications of, and guidance on, production targets, targeted output, mine development or timelines, exploration or expansion timelines, infrastructure alternatives and financial position and performance are also forward-looking statements. Any forecast or other forward-looking statement contained in this Document involves known and unknown risks and uncertainties and may involve significant elements of subjective judgment and assumptions as to future events which may or may not be correct. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of Hillgrove, and may cause actual results to differ materially from those expressed or implied in such statements. There can be no assurance that actual outcomes will not differ materially from these statements.

Various factors may cause actual results or performance to differ materially. These include without limitation the following: risks specific to Hillgrove’s operations; credit risk; levels of supply and demand and market prices; legislation or regulations throughout the world that affect Hillgrove's business; insurance expenses; the risk of an adverse decision or other outcome relating to governmental investigations; class actions or other claims; growth in costs and expenses; and risk of adverse or unanticipated market, financial or political developments (including without limitation in relation to commodity markets).

You are cautioned not to place undue reliance on forward-looking statements. These forward-looking statements are based on information available to us as of the date of this Document. Except as required by law or regulation (including the ASX Listing Rules) we undertake no obligation to update these forward-looking statements. This Document is provided for informational purposes only and is subject to change without notice. Subject to any obligations under applicable laws, regulations or securities exchange listing rules, Hillgrove disclaims any obligation or undertaking to release any updates or revisions to this Document to reflect any change in expectations or assumptions. Nothing in this Document should be interpreted to mean that future earnings per share of Hillgrove will necessarily match or exceed its historical published earnings per share, or that there has been no change in the affairs of Hillgrove since the date of this Document.

Nothing contained in this Document constitutes investment, legal, tax or other advice. The information in this Document does not take into account the investment objectives, financial situation or particular needs of any recipient. Before making an investment decision, each recipient of this Document should make its own assessment and take independent professional advice in relation to this Document and any action taken on the basis of this Document.

All currency referred to is Australian dollars ($) unless otherwise indicated (e.g. US$).

COMPETENT PERSONS STATEMENT

The information in this Document that relates to Exploration Results, Exploration Targets and Mineral Resource Estimates is based on 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 this Document of the matters based on their information in the form and context in which it appears. All exploration drill results, soil sampling images, and rock chip results have previously been reported to the ASX by Competent Person at the time. Hillgrove Resources confirms that the form and context in which the findings of the Competent Persons have been presented, have not been materially modified from the original market announcement. Peter Rolley (MAIG) consents to the inclusion in this Document of the matters based on their information in the form and context in which they appear.

AUTHORISATION

This announcement is authorised for market release by Hillgrove Resources’ Managing Director and CEO, Lachlan Wallace.

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CORPORATE SNAPSHOT

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Market Statistics

Investment Opportunity

• ✓ Advanced, fully permitted UG mining project with infrastructure in place to quickly convert for low capex and realise value of rising prices

• ✓ Drilling confirms depth continuity providing opportunities to increase resource base and mine life

• ✓ Exciting growth pipeline throughout SA

Shareholders

Share Price – 12 Months

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Institutional Investors
46%
Management
51%
Other Shareholders
3%
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$0.09
$0.08
$0.07
$0.06
$0.05
$0.04
$0.03
$0.02
$0.01
$0.00
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3 Note (1): Share price at close 6 May 2021 Note (2): Net cash as at 31 March 2021

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SUMMARY

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• The interim results of the 2021 drill confirm down and is program continuity dip

• expected to expand and increase the confidence of the Mineral Resource Estimate.

• Well advanced project: completed permitting, initial resource definition drilling, and initial mining contractor tender.

• The Kanmantoo Underground benefits from very low capital intensity due to existing infrastructure.

• Infrastructure maintained for ready restart which positions Kanmantoo to be Australia’s next copper mine as copper prices are forecast to continue to rise.

• Continue to explore exciting opportunities in the broader region with particular focus on porphyry signatures within Hillgrove’s 5,652km[2] exploration tenements in south-east SA.

• Carried forward tax losses and franking credits increase shareholder value.

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COPPER

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Historical and forecasted copper price at US$2021

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Kanmantoo
Underground
Open Pit
2011-2020
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Market conditions excellent for development of copper project

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COPPER

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Stocks to consumption ratio

Copper stocks already low due to post-pandemic demand resurgence and stagnant / disrupted supply…

Copper demand, per year, from green sectors

• …as world decarbonises through electrification, the demand for copper is set to increase further

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COPPER

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Demand growth anticipated to outstrip supply…

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… in on resulting largest long-term supply gap record and near term supply deficits unless price adjusts to restrict demand and/or encourage new supply investment...

But new supply takes time to discover, permit, finance and build... KANMANTOO POSITIONED TO BE AUSTRALIA’S NEXT COPPER MINE

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SHORT TIME PERIOD TO PRODUCTION

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• 100% owned by Hillgrove Resources ( HGO )

• Open pit mining from 2011-19 produced 137kt Cu

• 55km from Adelaide; local workforce, Tier 1 jurisdiction[1]

• 3.6Mtpa processing plant on C&M

• Fully operational TSF with additional capacity

• 360m deep open pit provides ready access to underground lodes

• All regulatory and community approvals in place to accelerate exploration and recommence mining

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All infrastructure and permitting in place to enable low cost and rapid ramp up to production

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8 Note 1: South Australia ranked 7[th] best jurisdiction for global investment attractiveness by Fraser Institute Annual Survey of Mining Companies 2020

2021 EXPLORATION PROGRAM

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3 drills targeting Kavanagh lodes at Kanmantoo (looking southwest)

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2021 EXPLORATION PROGRAM

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• Interim results released confirm down dip extension of high grade Cu-Au mineralisation to over 300m below pit.

• The program will;

• Increase geological confidence in the continuity and grade of the Cu-Au lodes for resource estimation for underground mine evaluation, and

• Increase the resource base and potential mine life.

High grade intersections in the deepest holes demonstrate mineralisation open at depth which provides opportunity to further increase inventory with additional drilling

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2021 EXPLORATION PROGRAM

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KTDD205 170.65m @ 1.01% 0.11 g/t Au from 339m downhole, including;

• 11.0m @ 1.65% Cu, 0.10 g/t Au, from 339.0m downhole, plus

• 23.0m @ 2.48% Cu, 0.24 g/t Au, from 385.0m downhole, plus

• 5.0m @ 1.86% Cu, 0.38 g/t Au, from 415.0m downhole, plus

• 12.2m @ 1.89% Cu, 0.49 g/t Au, from 451.0m downhole, plus

• 9.0m @ 1.94% Cu, 0.14 g/t Au, from 476.0m downhole, plus

• 13.8m @ 2.06% Cu, 0.12 g/t Au, from 495.85m downhole

The impact of these zones and their attendant lower on grade envelopes gradetonnage relationships and alternative UG mining opportunities is being investigated to optimise the existing plant and tailings storage capacity at the Kanmantoo site.

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2021 EXPLORATION PROGRAM

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Cu-Au mineralisation in KTDD205 in Kavanagh from 495.36m to 500.09m

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Peak copper assay is 13.25% Cu over 1.05m from 495.85m downhole

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2021 EXPLORATION PROGRAM

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The next steps for the evaluation of the Kanmantoo underground Cu-Au mineralisation are as follows:

■ Completion of the planned drilling program and receipt of all assays therefrom,

■ Evaluation of the drill results for additional Cu-Au mineralisation opportunities,

■ Completion of an updated mineral resource estimate, and

■ Completion of gold metallurgical test work to increase gold recoveries.

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FUTURE EXPLORATION

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Future drilling will focus on Kavanagh depth and strike extensions, Nugent and proximal lodes that can be accessed from the Kavanagh decline

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FUTURE EXPLORATION

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Exploration Target

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The Exploration Target is conceptual in nature as there has been insufficient exploration to define a Mineral Resource. It is uncertain if further exploration will result in the determination of a Mineral Resource under the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves, the JORC Code” (JORC 2012). The Exploration Target is not being reported as part of any Mineral Resource or Ore Reserve.

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FUTURE EXPLORATION

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The proximal lodes of North Kavanagh , Spitfire and SW Kavanagh have potential to add value by increasing the resource base for realtively low incremental cost as they utilise the same decline as the Kavanagh and West Kavanagh lodes.

Nugent has the potential to increase annual production through a separate, relatively low capital intensive decline.

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NORTH WEST, STELLA & MULLEWA

North West ; Copper soil anomaly is 2.3kms long; Rock chips have identified zones with high gold and copper

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Mullewa; Large alteration area and MT zone with Cu anomalism

Stella ; MT survey suggests a significant conductive zone coincident Cu & Au anomaly and gravity low, which presents a new large target for exploration

KANMANTOO

Although these targets may be large enough to justify stand alone capex, the proximity to the Kanmantoo mill and permitted TSF materially reduces capital hurdle

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• In parallel with the underground and near mine development opportunities, HGO continues to undertake low cost exploration across 5,652km[2] of tenements in south-east SA

• Tenements sit within USGS and GA Porphyry Tract which includes the Stavely Cu-Au-Mo Porphyry

• Multiple targets with geochemical signature in line with major porphyry deposits around the world that are coincident with regional magnetic anomalies

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Objective is to discover large scale porphyry Cu-Au deposits

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SUMMARY

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■ Mineralisation ~300m below pit and open at depth

■ Proximal lodes to increase mining inventory at low cost from same decline

■ Fully permitted and strong community support

■ Operational processing plant and tailings storage facility

■ Low capital intensity restart

■ Quick restart

■ Bullish copper price forecast

KANMANTOO POSITIONED TO BE AUSTRALIA’S NEXT COPPER MINE

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APPENDIX

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REFERENCES

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All exploration drill results, exploration information and Mineral Resource Estimates have previously been reported to the ASX by Competent Person at the time. The results reported herein are reported in the form and context of the original ASX releases.

Refer http://www.hillgroveresources.com.au/announcements

• 20 Jun 2019 Drilling of Kanmantoo Cu-Au Deeps to Commence

• 10 Oct 2019 Excellent Drill Results from Kanmantoo Cu-Au Deposit

• 31 Oct 2019 Maiden Kavanagh Underground Mineral Resource Estimate

• 5 Nov 2019 Additional Information to Maiden Kavanagh Underground

• ■ 2 Jun 2020 Underground Drilling Program Recommences

• 11 Aug 2020 Excellent Gold Recoveries from Kanmantoo

• 3 Sep 2020 Drilling Expands Cu-Au Footprint at Kanmantoo Underground

• 7 Dec 2020 Updated Kanmantoo Underground Mineral Resource Estimates

• ■ 23 Feb 2021 Kanmantoo Underground Exploration target Update

• 3 May 2021 Drilling Confirms Down-Dip Cu-Au Mineralisation at Kanmantoo

• ■ 6 May 2021 Hillgrove Hits 170m of Copper Mineralisation at Kanmantoo

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