Musgrave Minerals Ltd: High-Grade Gold Intersected at West Island:

Perth, Australia - Musgrave Minerals Ltd. (ASX:MGV) (FRA:6MU) (OTCMKTS:MGVMF) is pleased to report further assay results (Table 1a*) from the current aircore and diamond drilling programs on the Cue Joint Venture with Evolution Mining Ltd ("Evolution") over Lake Austin in Western Australia's Murchison district. The aircore results continue to extend the large regolith gold mineralisation at the West Island Prospect where diamond drilling is returning high-grade basement gold mineralisation.

The West Island zone is part of a broader regional 7km-long anomalous gold corridor within the joint venture (Figure 1*). The mineralisation at West Island is hosted within a differentiated dolerite intrusive sill, similar to that hosting the high-grade Great Fingall and Golden Crown deposits 25km to the north at Cue.

The Great Fingall and Golden Crown deposits host a combined 4.4Mt @ 14.1g/t Au for 2.0Moz gold (Total Indicated and Inferred Resources and past production) (see Westgold Resources Ltd. (ASX:WGX) ASX announcement 10 June 2020, "Investor Presentation June 2020 - ASX Release", page 15).

Musgrave Managing Director Rob Waugh said: "The gold system at the Cue JV with Evolution continues to deliver strong results with diamond drilling confirming the potential for multiple high-grade basement gold lodes within the dolerite sill at West Island. Evolution increasing the exploration budget in H2 2022 and electing to act as Earn-in Manager from 1 January 2022 is a positive move and an indication of the upside potential of the joint venture ground."

Evolution has elected to act as the Earn-in Manager from 1st January 2022. This will free-up MGV personnel to accelerate activities on Musgrave's 100% tenure.

Evolution initially committed to a A$5M exploration budget to fund further drilling at Cue in FY22 and have now increased the JV budget for H2. The intent is to accelerate exploration and to delineate the scale of the gold system at West Island, to test additional gold-in-regolith aircore anomalies and define new diamond drilling targets through aircore drilling. This revised and accelerated budget adds an additional A$3-6M for a revised minimum total budget of A$8M for FY22.

Lake Austin Diamond Drilling Program Results

Results of diamond drilling continue to identify multiple, new northwest trending lodes oblique to the favourable dolerite host unit at West Island. Drilling will progress through the March quarter 2022 to delineate the potential scale of mineralisation at West Island whilst beginning to focus on the economic potential of previously identified gold bearing structures.

Significant diamond core intercepts from the December 2021 quarter include:

o 4.26m @ 41.5g/t Au from 160.74m (21MODD025) including:
o 0.41m @ 400.2g/t Au from 160.74m
o 6.0m @ 2.7g/t Au from 125m (21MODD033)

Diamond drilling has recommenced and results are currently pending for a further five diamond holes.

The results above confirm the geological model developed at West Island whereby mineralisation is hosted in multiple narrow lodes of limited strike extent constrained by the favourable dolerite host unit. The interval in 21MODD025 is encouraging because it indicates the potential for high grade mineralisation to exist within individual lodes (Figure 3*). Hole 21MODD033 was drilled 200m north of 21MODD025 and is interpreted to have intersected a separate structure.

The intersections are associated with extensive gold in regolith mineralisation which aircore drilling has shown to extend for at least 1.6km of strike length at West Island. The West Island zone is part of a broader regional 7km-long anomalous gold corridor within the joint venture tenements (Figure 1*). The diamond drilling to date at West Island has only tested a small area of basement and the mineralisation remains open along strike and at depth. Diamond drilling at West Island is continuing.

All new diamond drill hole collars with assay results above 1g/t are presented in Tables 1a and 1b*.

Lake Austin Aircore Drilling Program Results

Under the Musgrave - Evolution Joint Venture (Figure 1), a third phase of regional aircore drilling has now been completed on Lake Austin. Highlights from the recent phase of aircore drilling are summarised below and in Figure 2. The results continue to delineate the favourable dolerite host sill along strike which is important for hosting the better grades at West Island. Results from a further 72 aircore holes are pending.

New significant aircore results include:

o 34m @ 0.64 g/t Au from 124m (21MOAC032)
o 10m @ 1.43 g/t Au from 78m (21MOAC069)
o 12m @ 0.93 g/t Au from 78m (21MOAC068) and;
o 17m @ 0.49 g/t Au from 100m to EOH

All new aircore drill hole collars with assay results above 100ppb Au are presented in Tables 2a and 2b*.

Musgrave - Evolution Cue Joint Venture

In October 2019, Musgrave entered an Earn-In and Joint Venture Exploration Agreement with Evolution Mining Ltd. over a large area of Lake Austin and surrounds on the Cue Project in the Murchison District of Western Australia.

The Evolution JV lies to the north of and excludes all the current resources at Cue (including the Lena and Break of Day deposits), the new White Heat and Big Sky discoveries, and the Mainland option area.

Evolution can earn a 75% interest in the JV Area by sole funding A$18M on exploration over a five-year term. Evolution has currently spent approximately A$9M on the joint venture with a further A$3-6M planned for H2, FY22. Evolution is now the operator of the JV and is managing the ongoing drilling programs.

Ongoing Exploration - Cue Joint Venture

- Diamond drilling to test the basement beneath regolith gold mineralisation on Lake Austin is continuing.

- Assay results for five diamond drill holes at West Island are pending.

- Assay results for 72 aircore drill holes on the JV area are pending.

*To view tables and figures, please visit:
https://abnnewswire.net/lnk/30K53M73

About Musgrave Minerals Ltd:

Musgrave Minerals Ltd. (ASX:MGV) is an active Australian gold and base metals explorer. The Cue Project in the Murchison region of Western Australia is an advanced gold and copper project. Musgrave has had significant exploration success at Cue with the ongoing focus on increasing the gold and copper resources through discovery and extensional drilling to underpin studies that will demonstrate a viable path to development in the near term. Musgrave also holds a large exploration tenement package in the Ni-Cu-Co prospective Musgrave Province in South Australia.

Source:
Musgrave Minerals Ltd.

Contact:

Rob Waugh Managing Director Musgrave Minerals Ltd. +61 8 9324 1061 Luke Forrestal Associate Director Media and Capital Partners +61 411 479 144