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GASCOYNE GR RESOURCES LIMITED ASX : GCY 21 January 2021 QUARTERLY ACTIVITIES REPORT FOR THE PERIOD ENDED 31 DECEMBER 2020 Highlights : - Normalised free cash flow generation of $ 9.0M for the quarter ( excluding one- off administration and litigation costs ) ; $ 16.8M for the half year 20,381oz produced for the quarter ; 40,695oz for the half year ■ 21,341oz sold at an average realised price of A $ 2,605 / oz • Third consecutive quarter > 20koz produced ( 80,086oz for CY2020 ) AISC $ 1,100 / oz for the quarter ; $ 1,276 / oz for the half year On track for upper end of FY2021 production guidance of 70 - 80koz at an AISC of $ 1,200 - $ 1,300 / oz 668kt milled at feed grade of 1.03g / t and 92.2 % recovery for the quarter • Drilling success at Gilbey's , Plymouth and Sly Fox Aircore drilling commenced at prospects within 15km of Dalgaranga " - Group Mineral Resources now 1.3Moz gold with release of updated Mineral Resource estimate for Glenburgh Project of 510koz Net cash position of $ 0.8M with cash balance of $ 37.3M at quarter end $ 7.5M mark - to - market gold hedge position at quarter end , with 53,722oz hedged at an average of $ 2,611 / oz over the next 18 months Gascoyne Resources Limited ( " Gascoyne " or " Company " ) ( ASX : GCY ) is pleased to provide the following update on its activities for the quarter ending 31 December 2020 , including operating and cost performance at its 100 % owned Dalgaranga Gold Project ( " Dalgaranga " ) . The Company advises that it will be holding a teleconference to discuss the quarterly results at 10:00 am ( WST ) on Thursday , 21 January 2021. Dial - in and registration details to participate in the call are located at the end of this report . Gascoyne Managing Director and CEO , Mr Richard Hay , commented : " The December quarter results are very pleasing , in particular ending the quarter in a net cash position . The Company has achieved what we said we would do in a very short period of time since being reinstated to the ASX in October 2020 . " For the quarter we produced 20,381 ounces which has us on track to achieve the upper end of guidance of 80,000 ounces and within our AISC cost per ounce range of $ 1,200 to $ 1,300 . With 53,722 ounces hedged at an average price of $ 2,611 Gascoyne is well placed to continue generating free cash flow . " Furthermore , the Company successfully fired up both exploration and resource drilling across a range of targets within 15km of the Dalgaranga plant which continues to be one of the most efficient in WA with a milling cost of only $ 11.79 per tonne for the quarter . " In addition , the Company's total Mineral Resources now stands at 1.3 million ounces following release of the updated estimate of 510,100 ounces at the Glenburgh project . " SHARE PRICE : $ 0.52 at 20 Jan 21 SHARES ON ISSUE : 250.9 million MARKET CAP : $ 130 million at 20 Jan 21 CASH : $ 37.3 million All dollar figures included in this report are Australian dollars unless otherwise stated DIRECTORS Richard Hay , Managing Director & CEO George Bauk , Non - Executive Chairman Rowan Johnston , Non - Executive Director MANAGEMENT David Coyne , CFO & Joint Company Secretary David Baumgartel , Executive GM Operations and Development Julian Goldsworthy , Chief Geologist Shane McBride , Joint Company Secretary Gascoyne Resources Ltd ABN 57 139 522 900 PO Box 1449 West Perth WA 6872 Level 1 , 41-47 Colin Street West Perth WA 6005 +61 8 9481 3434 admin@gascoyneresources.com.au gascoyneresources.com.au