GPAC.V · 2022-01-18 12:00:00

Fosterville South Reports Initial 2022 Assays from Drilling at the Beechworth Project Including 3m at 8.83 g/t Gold in Expansion Hole at Homeward Bound Target and 8m at 4.84 g/t Gold including 1m at 33.4 g/t Gold in Discovery Hole at Bon Accord Target

Drill Results

Fosterville South Reports Initial 2022 Assays from Drilling at the

Beechworth Project Including 3m at 8.83 g/t Gold in Expansion Hole at

Homeward Bound Target and 8m at 4.84 g/t Gold including 1m at 33.4 g/t

Gold in Discovery Hole at Bon Accord Target

Highlights:

Strong gold assays below and on strike to the initial discovery hole at Homeward Bound including;

m at 3.36 g/t Gold including

at 8.83 g/t Gold in reverse circulation drill hole HBRC21, and

4.38m

at 2.51 g/t Gold and

3.15m

at 3.38 g/t Gold in diamond drill hold HBDH002

Gold discovery hole at

Bon Accord

from reverse circulation drilling hole BHVP30 of

at 4.84 g/t Gold including

at 33.4 g/t Gold

Assays pending from additional holes including from multiple holes at Reedy Creek Target within the Providence Project

Q1 2022 drilling focus will be at

Providence

, Beechworth, Golden Mountain and Lauriston Projects

Approximately

$22 million

cash on hand

VANCOUVER, BC

Jan. 18, 2022

/CNW/ -

Fosterville South Exploration Ltd. ("Fosterville South") or (the "Company") (TSXV: FSX) (OTCQX: FSXLF) (

Germany

4TU) is pleased to report that new drilling at the Homeward Bound and

Bon Accord

prospect at the Beechworth Gold Project in

Victoria, Australia

has returned

strong gold grades. Additional assays are pending from drilling at high priority gold targets at Reedy Creek.

New Gold Assays at Beechworth Gold Project

Homeward Bound Prospect

Fosterville South received strong gold assays beneath its initial discovery diamond drill hole, HBDH001, that intersected

8.6m

at 5.22 g/t Gold from

194.6m

including

3.6m

at 10.72 g/t Gold from

196.8m

at the Homeward Bound prospect located at

Hillsborough

within the Beechworth Gold Project.

A second diamond drill hole, HBDH002, intersected two separate zones with strong gold mineralization of

3.15m

of 3.38 g/t Gold from

269.5m

and

4.4m

of 2.51

g/t Gold from

256.6m

along with another three supporting gold mineralized zones totalling

29.7m

within an overall envelope of

56.6m

downhole length. A detailed

reverse circulation drilling program was instigated to determine the extent of gold mineralization associated with the old workings following the encouragement

received from the initial discovery diamond hole. In particular, reverse circulation drill hole HBRC21 encountered

at 3.66 g/t Gold from

202m

, including

at 8.83 g/t Gold from

207m

and expanded the strike length of gold discoveries from the diamond drill holes to the north. Other significant results were

8.58 g/t Gold from

105m

in HBRC01,

at 11.20 g/t Gold from

134m

and

at 10.95 g/t Gold from

150m

in HBRC02 and

at 7.26g/t Gold from

50m

in HBRC09.

The main Homeward Bound reef strikes 023 degrees and dips west at -75 degrees.

The diamond drill and reverse circulation drilling results to date indicate wider zones of mineralization exist at depth (HBDH001, HBDH002 and HBRC21) in the

Homeward Bound prospect, Beechworth Project. The completed drilling program targeted the upper sections of the inferred zone of gold mineralisation based

upon the mine plans (HBRC05 to HBRC13) and to confirm some of the historic drilling results carried out in 1992 (HBRC01, 02 & 03) as well as continuing to

explore the deeper parts of the main zone of gold mineralization (HBRC21). The drilling established the extent of the previous mining through encountering voids

where the high-grade gold zone had been extracted.

Bon Accord Prospect

At the nearby Bon Accord Prospect, approximately 180 metres west from Homeward Bound, Fosterville South's reverse circulation drill program resulted in a new

gold discovery.

BHVP30 intersected

at 20.9 g/t Gold from

59m

and

at 4.84 g/t Gold from

64m

, including

at 33.4 g/t Gold from

68m

. This

discovery is referred to as the Bon Accord North zone and is not associated with any old workings. Reverse circulation drilling also encountered zones of gold

mineralization to the northwest of BHVP30. BHVP14 intersected

10m

at 1.68 g/t Gold from

30m

and BHVP32 intersection

12m

at 0.49 g/t Gold from

56m

Fosterville South also carried out a diamond drill program at Bon Accord. Diamond drill hole BADH001 was designed to test for mineralization beneath the main

shaft of the historic

Bon Accord

workings, including the Bon Accord Reef and Blind Reef. BADH001 interested

3.7m

at 3.05 g/t Gold

from

148.9m

corresponding to the main

Bon Accord

reef but no significant mineralization was detected below this level. The main

Bon Accord

reef strikes 350 degrees and dips

west at -85 degrees. Historic tunnels connect the

Bon Accord

workings with the Homeward Bound workings.

Continued drilling at the Homeward Bound and

Bon Accord

prospects will seek to expand gold mineralization at depth and along strike beneath the old workings

associated with these various encouraging drill results.

Table 1:

Hillsborough

(Homeward Bound and

Bon Accord

) Drill Results and Intercepts:

Hole ID

East

North

Azimuth (deg.)

Dip (deg.)

From (m)

To (m)

Downhole Interval (m)

True Width (m)

Au g/t

Cut-off grade

Au g/t

Hole Type

HOMEWARD BOUND

HBDH002

484836

5971320

125

-72

213.0

216.0

3.0

1.9

1.00

0.4

Diamond

and

226.5

233.7

7.2

4.5

0.69

0.4

Diamond

and

236.0

248.0

12.0

7.6

0.78

0.3

Diamond

and

256.6

261.0

4.4

2.8

2.51

0.4

Diamond

and

269.5

272.65

3.2

2.0

3.38

0.4

Diamond

HBRC01

484906

5971301

-62

105

106

1.0

0.6

8.68

0.4

HBRC02

484871

5971309

-60

134

136

2.0

1.3

5.91

0.4

Including

134

135

1.0

0.6

11.20

1.0

and

149

152

3.0

2.0

3.99

0.4

Including

150

151

1.0

0.6

10.95

1.0

HBRC03

484884

5911305

113

-60

128

129

1.0

0.7

3.32

0.4

and

133

134

1.0

0.7

2.79

0.4

HBRC09

484935

5971276

113

-60

6.0

4.2

2.57

0.4

Including

1.0

0.7

7.26

1.0

HBRC10

484933

5971274

113

-75

2.0

1.0

2.39

0.4

HBRC21

484936

5971319

-63

5.0

3.2

3.0

0.4

and

194

198

4.0

2.6

0.43

0.4

and

202

210

8.0

5.1

3.66

0.4

Including

207

210

3.0

1.9

8.83

1.0

BON ACCORD & OTHERS

BA09

484841

5971122

300

-65

5.0

1.2

3.0

0.4

Including

1.0

0.2

12.3

1.0

and

4.0

0.99

0.4

BADH001

484740

5971177

110

-70

113.1

114.8

1.7

0.7

1.76

0.4

Diamond

and

139.35

139.85

0.5

5.37

0.4

Diamond

and

148.9

152.6

3.7

1.6

3.05

0.4

Diamond

BE01A

476241

5970216

252

-75

3.0

3.26

0.4

and

1.0

8.34

1.0

BE03

476162

5970256

252

-55

4.0

1.38

0.4

BE04

476149

5970282

252

-55

1.0

1.73

0.4

BHVP14

484566

5971343

-60

6.0

0.43

0.4

and

10.0

1.68

0.4

BHVP19

484928

5971224

-80

8.0

3.3

0.87

0.4

BHVP22

484894

5971654

-60

8.0

0.72

0.4

BHVP30

484804

5971253

270

-60

1.0

20.9

0.4

and

8.0

4.84

0.4

including

1.0

33.4

1.0

BHVP32

484614

5971358

270

-60

12.0

0.49

0.4

and

6.0

0.41

0.4

BHVP50

484721

5971235

-60

2.0

1.7

0.4

and

130

134

4.0

1.05

0.4

The intercept cut-off grades are shown in the table, and they use a maximum internal waste of

. True widths are shown for prospects that have sufficient

information otherwise not determined (ND). The assays are not capped. Coordinates are Australian projection MGA94 Zone 55. Reverse circulation drill holes

BA01 to BA08, BA10 to BA12, HBRC05 to 08, HBRC11 to 13 did not contain significant gold mineralization. Planned holes HBRC04, HBRC14 to HBRC20 were

not carried out in this drilling campaign. For the BHVP scout drilling program seventeen proposed holes were not completed due to access difficulties, insufficient

time or due to logging activities being carried out by HVP. These proposed holes include holes BHVP01,02,11-13,21,26-27,35,37-38,40,42,44-46,48. All other

BHVP holes were completed up to and including BHVP50 and only those with significant assay results are shown in the above table. These proposed holes will be

revised along with new planned holes in the next drilling campaign. Similarly for the Stanley State Forest scout drilling program drillhole series BE was all

conducted using reverse circulation drilling. Seventeen hole (BE12, 14, 15, 19, 21-25, 27, 33-39) were not carried out for access or timing reasons. Other holes

from BE01 to BE40 were completed and the significant assay intersections are reported in the above table. Some assays remain pending from these various

drillholes.

The Homeward Bound and

Bon Accord

prospects are in the

Hillsborough

goldfield, which forms part of the Beechworth Gold Project, occurring in the

Tabberabbera Zone on the eastern margin with the Omeo Zones of the Lachlan Fold Belt in Victoria. Several key gold prospects and associated fault structures

have been identified within the Beechworth Gold Project based upon extensive geochemical sampling, geological & LIDAR mapping and limited previous drilling.

These gold mineralized zones are largely parallel striking NNW and include (from west to east) the Perseverance,

Bon Accord

and Homeward Bound faults. These

include various historical producing mines located within the Hurdle Flat goldfield (21,715 ounces of production at 15.32 g/t Au) and Hillsborough goldfield (47,492

ounces of production at 17.48 g/t Au). Mineralisation is typical of mesozonal orogenic gold deposits, although the

Hillsborough

area occurs within a contact

metamorphic aureole of a nearby granitic intrusion. Intrusion related gold mineralization has been found at

Hillsborough

, as gold rich float rock specimen samples

nearby Homeward Bound prospect and will form part of a new drilling program in the coming year when drill permits are received.

Figure 1 – Longitudinal Section of the drilling at Homeward Bound prospect, Beechworth (CNW Group/Fosterville South Exploration Ltd.)

Figure 2 – Longitudinal Section of the drilling at Bon Accord prospect, Beechworth (CNW Group/Fosterville South Exploration Ltd.)

Drilling Activities on Reedy Creek (Providence Project)

Fosterville South is actively drilling at Reedy Creek (Providence Project), which occurs within the epizonal district of the Melbourne Zone. Assays are pending for

two diamond drill holes at the Prince of Wales Reef completed late last year. Both drill holes intersected brecciated sediments with quartz veining corresponding

to the interpreted Prince of Wales reef zone.

Diamond and reverse circulation drilling will continue to focus expanding mineralization at the discovery hole RWR13

(

11m

at 31.34 g/t Gold including

80.05 g/t Gold from

68m

)

and the recently announced high-grade intercept from diamond drill hole RWD01 (

0.7m

at 238.1 g/t Gold from

68.70m

and

0.80m

22.5 g/t Gold from

40.80m

) at Weineroider Ridge. Drilling will also pursue nearby gold mineralization at Prince of Wales Reef, Thompson Reef, Bulmer's Reef

and other areas in close proximity to Weineroider Ridge. A key drilling Work Plan has recently been approved which will allow greater access to these key

prospects and drilling equipment has been mobilized to this prospect area. In the southeast of the tenement drilling (2) permits have been approved for the Big

Ben prospect area, which occurs on the southeast extension of the Reedy Creek anticline. Widespread anomalous soil geochemical anomaly occurs in a fairly flat

featureless plateau as well as at Bgi Ben where a brecciated fault zone was worked in the late 1800s. Another tenement known as Kinglake has been applied for

to cover the extensions to the Reedy Creek anticline, north and south of the Big Ben prospect area.

Drilling to Commence at Golden Mountain and Lauriston Gold Projects

Fosterville South will commence drilling at two key gold projects, Golden Mountain and

Lauriston Gold

, in the first quarter of 2022.

New drill permits were received for the Comet and Trojan Prospect at the Lauriston Project and confirmation is being sought from the Water Authority prior to

commencing work here. Previous drilling at Comet returned

10m

at 2.09 g/t Au

from

CRC01

and

14m

at 1.19 g/t Au

from

CRC04

. Diamond drilling at Comet

will be used to confirm the structural controls on these wider zones of gold mineralization. At Trojan, which is located in close proximity to Comet, Fosterville

South will carry the first modern day drill program.

Fosterville South also plans to carry out reverse circulation drilling at the Heyfield prospect at Golden Mountain. Heyfield has signatures of Au-As-Sb and is an

excellent target for epizonal style mineralization in the Melbourne Zone.

Figure 3 – Fosterville South Overview Map (CNW Group/Fosterville South Exploration Ltd.)

About Fosterville South Exploration Ltd.

Fosterville South began with two, 100% owned, high-grade gold projects called the Lauriston and Golden Mountain Projects, and has since acquired a large area

of granted and application tenements containing further epizonal (low-temperature) high-grade gold mineralisation called the Providence Project and a large group

of recently consolidated license tenement applications called the Walhalla Belt Project, which contain a variety of epizonal and intrusion related style gold

mineralisation, all in the state of Victoria, Australia. The Fosterville South land package, assembled over a multi-year period, notably includes a 600 sq. km

property immediately to the south of and within the same geological framework that hosts Kirkland Lake Gold's Fosterville epizonal gold tenements. Additionally,

Fosterville South has gold-focused projects called the Moormbool and Beechworth, which are also located in the state of Victoria, Australia. Moormbool project

has epizonal style gold mineralisation and Beechworth has mesozonal and intrusion relation gold mineralisation.

All of Fosterville South's properties, with the possible exception of Moormbool, have had historical gold production from hard rock sources despite limited modern

exploration and drilling.

Qualified Person

The technical content of this news release has been reviewed, verified and approved by Rex Motton, AusIMM (CP), COO and Director of Fosterville South, a

qualified person as defined by NI 43-101. Historical records were verified by reviewing annual and quarterly reports from government records by the Qualified

Person.

On behalf of the Company

Rex Motton

Chief Operating Officer and Director

Forward-Looking Statements

Information set forth in this news release contains forward-looking statements that are based on assumptions as of the date of this news release. These

statements reflect management's current estimates, beliefs, intentions and expectations. They are not guarantees of future performance. Fosterville South

cautions that all forward looking statements are inherently uncertain and that actual performance may be affected by many material factors, many of which are

beyond their respective control. Such factors include, among other things: risks and uncertainties relating to Fosterville South's limited operating history, its

exploration and development activities on the Lauriston, Golden Mountain,

Providence

and Beechworth Properties and the need to comply with environmental

and governmental regulations. Accordingly, actual and future events, conditions and results may differ materially from the estimates, beliefs, intentions and

expectations expressed or implied in the forward-looking information. Except as required under applicable securities legislation, Fosterville South does not

undertake to publicly update or revise forward-looking information.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Exchange) accepts responsibility for

the adequacy or accuracy of this release.

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SOURCE

Fosterville South Exploration Ltd.

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For further information:

Adam Ross, Investor Relations, Direct : (604) 229-9445, Toll Free: 1(833) 923-3334, Email: [email protected]

CO: Fosterville South Exploration Ltd.

CNW 08:30e 18-JAN-22

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