Announcement PDF ANNUAL REPORT for year ended 30 June 2023 TABLE OF CONTENTS Corporate Directory 2 Managing Director’s Letter 3 Directors’ Report 5 Auditor’s Independence Declaration 33 Consolidated Statement of Profit or Loss and Other Comprehensive Income 34 Consolidated Statement of Financial Position 35 Consolidated Statement of Changes in Equity 36 Consolidated Statement of Cash Flows 37 Notes to the Financial Statements 38 Directors’ Declaration 70 Independent Auditor’s Report 71 ASX Additional Shareholder Information 74 Tenements Schedule 80 CORPORATE DIRECTORY Tesoro Gold Ltd is an Australian listed company focused on the acquisition, exploration and development of commercially significant resource projects in Chile, with a focus on gold. For more details visit www.tesorogold.com.au. DIRECTORS Mr Zeffron Reeves (Managing Director) Mr Linton Putland (Executive Director – Mining and Development) Mr Geoffrey McNamara (Non-Executive Director) Ms Kristie Young (Non-Executive Director) Mr Alan Gibson (Non-Executive Director) COMPANY SECRETARY Ms Sarah Wilson REGISTERED OFFICE c/- Source Services Level 48 Central Park 152 – 158 St Georges Terrace PERTH WA 6000 AUDITORS RSM Australia Partners Level 32 Exchange Tower 2 The Esplanade PERTH WA 6000 SHARE REGISTRAR Automic Pty Ltd Level 5 191 St Georges Terrace PERTH WA 6000 GPO Box 5193, SYDNEY, NSW 2000 Telephone: 1300 288 664 (within Australia) Email: hello@automic.com.au SECURITIES EXCHANGE LISTING Australian Securities Exchange Limited and OTC Markets Group (Home Exchange: PERTH, Western Australia) Codes: ASX: TSO, TSOO, TSOOA OTCQB: TSORF 2|P a g e Tesoro Gold Ltd Managing Director’s Letter Dear Fellow Shareholders, On behalf of the Board of Directors, it is with great pleasure that I present the 2023 Annual Report for Tesoro Gold Ltd (Tesoro, or the Company). It has been anther busy and productive year for Tesoro as we continue to advance development of the El Zorro Gold Project. Following the momentum built through last year’s exploration successes, we have continued our strategy of rapidly advancing key work streams across the El Zorro area. Our extensive suite of exploration drilling, channel sampling and mapping programs produced some of the best results seen in the region, confirming El Zorro as a large-scale gold district. Our exploration activities culminated in a substantial upgrade to the Ternera Mineral Resource Estimate (MRE). On an unconstrained basis, the Ternera MRE grew to 42.6 Mt at 1.07g/t Au for 1.46 Moz. The constrained Ternera MRE increased to 33.7 Mt at 1.18g/t Au for 1.28 Moz with 802 Koz (63%) of the resource classified as Indicated. The updated MRE has been constrained to a US$1,800/oz optimised pit shell, this revised MRE represents a 17% increase in prospective gold resources. The revised MRE was accompanied by the announcement of an initial Exploration Target (ET) with a range between 48.5 Mt at 0.91g/t Au to 101.0 Mt at 1.45g/t Au. This target further highlights the exciting potential of the Ternera Gold Deposit, which we believe could potentially contain between 1.6 to 3.0 million ounces of gold. The Exploration Target has been prepared and reported in accordance with the 2012 edition of the JORC Code. The potential quantity and grade are conceptual in nature and there has been insufficient exploration to estimate a Mineral Resource. It is uncertain if further exploration will result in the estimation of a JORC-compliant Mineral Resource. The El Zorro Project continues to be steadily validated through the completion of preliminary mining and environmental studies along with extensive site preparation, ground consolidation and permitting. Importantly, we announced outcomes of the Phase 1 Open Pit Scoping Study in April 2023 (the Study), which confirmed a technically and commercially robust starter pit development opportunity. The Study considered an initial Phase 1 development of an open pit mining operation on the upper 200m of the Ternera Gold Deposit (the Deposit) to feed a 2.4 Mtpa gold processing plant. Study outcomes demonstrate the ability of the Deposit to support the estimated capital required for development at a scale that would result in an average gold production of between 90 and 100 koz per annum. Outside of the immediate Deposit area, new regional targets at Animas Viejas, Calderillas and Kitsune have been confirmed by ongoing exploration, with further wide, high-grade gold mineralisation identified at surface. These results helped revise and shape our expectations regarding the extent and quality of the vast, >10km near-continuous mineralised system extending south of Ternera at Buzzard, north to Kitsune and towards Calderillas. Through the coming months drilling will continue, targeting the extensive gold mineralisation across all El Zorro tenements with our current exploratory focus on Kitsune and the other regional opportunities. We are confident these targets hold strong potential to be large, high-grade extensions of the existing Ternera Resource and offer exceptional exploration and resource growth potential. The Company was very pleased to welcome Gold Fields Ltd (Gold Fields) (JSE:GFI, NYSE:GFI) as a 14.98% shareholder via a private placement of $4.2 million and a sub-underwrite of $1.5 million in November and December 2022, respectively. 3|P a g e Tesoro Gold Ltd Managing Director’s Letter On behalf of the team at Tesoro Gold, I would like to thank you, our shareholders, for your ongoing support and dedication. I look forward to updating you on our efforts in the coming year. All the best for the year ahead. Yours faithfully, Zeffron Reeves Managing Director Tesoro Gold Ltd 4|P a g e Tesoro Gold Ltd Directors' report 30 June 2023 The Directors present their report, together with the financial statements, of the Group (referred to hereafter as the “Consolidated Entity” or “the Group”) and the entities it controlled at the end of, or during, the financial year ended 30 June 2023. Directors The following persons were Directors of Tesoro Gold Ltd during, or since the end of the financial year: Mr Zeffron Reeves Mr Linton Putland Mr Geoffrey McNamara Ms Kristie Young Mr Alan Gibson Mr John Toll Managing Director Executive Director – Mining and Development Non-Executive Director Non-Executive Director Non-Executive Director (appointed 30 August 2023) Non-Executive Chairman (resigned 25 October 2022) Information on Directors Mr Zeffron Reeves Managing Director (appointed 29 January 2020) BSc (Hons) (Applied Geology), MBA, MAIG Mr Reeves is a geologist with over 20 years’ experience in the resources sector working on mineral resource projects through all facets of development from greenfield exploration, discovery, definition and feasibility, construction, production to closure. Mr Reeves was Managing Director of ASX listed Metallum Ltd (now ENRG Elements Ltd) which had several development and operational projects in Chile. He has also held senior management positions with Cleveland Mining Ltd and Ashburton Minerals Ltd, developing projects in Brazil. Mr Reeves has a Bachelor of Applied Geology (Honours), a Masters of Business Administration from Curtin University and is a member of the Australia Institute of Geoscientists. Mr Linton Putland Executive Director – Mining and Development(Appointed 14 September 2021) BEng, MSc (Economics) Mr Putland holds degrees in Mining Engineering (Bachelor of Engineering, Western Australian School of Mines) and a Masters of Science (Mineral Economics, Western Australian School of Mines) with more than 30 years’ experience in mining operations, joint ventures and corporate management in Australia, Africa and the Americas, over a wide range of commodities. Mr Putland is principal of LJ Putland & Associates, a private mining consultancy company which was founded in 2002, providing advisory and consultancy services in mining project and company evaluation and due diligence appraisals with a focus on corporate growth. During this period, he has also been Managing Director of a privatelyowned exploration company with joint venture interests in Africa. Prior to this he held corporate and senior management roles in IAMGOLD, Aurion Gold, Delta Gold and Pancontinental Mining. He is a Member of AusIMM and a Graduate Member of AICD. Mr Geoffrey McNamara Non-Executive Director (appointed 29 January 2020) BSc (Applied Geology), AusIMM, FINSIA, AICD Mr McNamara is a geologist with over 30 years of international resource sector experience, operational roles include Project Manager, Senior Mine Geologist and Mine Geologist for Ivanhoe Mines, Lion Ore International and Western Mining Corporation. Previously he worked in Private Equity (FUM USD800 million) and as a Director of Societe General’s Mining Finance team in New York. Geoffrey holds a Bachelors degree in Geology and a Graduate Diploma in Applied Finance and Investment from the Financial Services Institute of Australasia. He is a member of the Australian Institute of Company Directors (AICD) and a Fellow of the Australasian Institute of Mining and Metallurgy (AusIMM). 5|P a g e Tesoro Gold Ltd Directors' Report 30 June 2023 Ms Kristie Young Non-Executive Director (Appointed 14 September 2021) BEng (Mining) Hons, GAICD Ms Young holds a Bachelor of Engineering (Mining) Hons from the University of Queensland and a Post Graduate Diploma of Education (Mathematics & IT) from the University of Western Australia. She is a graduate of the AICD and holds a Cert IV HR from the Australian HR Institute. Ms Young’s more than 20 years’ experience includes technical engineering, project evaluation, strategy, business development, growth, marketing, commercial, client management, consulting governance and human resources. Prior to her Non-Executive Director portfolio career, she held senior growth and Business Development Director roles with leading professional services firms PwC and EY. As a mining engineer she worked with Mt Isa Mines, Plutonic Gold, Hammersley Iron, Gunpowder Copper, New Hampton Goldfields and Surpac. Mr Alan Gibson Non-Executive Director (Appointed 30 August 2023) LLB and B Econ Alan Gibson is an experienced and skilled M&A lawyer, with more than 20 years’ experience in Corporate, Energy and Resources Law, including more than 10 years of that as part of the Gold Fields Corporate Development team. Alan is currently Vice President: Corporate Development – Head of Legal for Gold Fields and has played an important role in a number of the group’s key growth transactions around the world, including the proposed joint venture between Gold Fields’ Tarkwa mine and AngloGold Ashanti’s Iduapriem mine in Ghana; the partnership with Osisko Mining at Windfall in Quebec, Canada; acquiring the Granny Smith, Lawlers and Darlot gold mines from Barrick in 2013; acquiring a 50% interest in the Gruyere gold mine in 2016; and evaluating the various funding options for Gold Fields’ key development asset Salares Norte in Chile in 2020. Mr. Gibson is an admitted legal practitioner holding a Bachelor of Laws and Bachelor of Economics from Murdoch University (WA). Mr John Toll Non-Executive Chairman (Appointed, 3 October 2017, Resigned 25 October 2022) B Comm, CA Mr Toll brought valuable experience to the Company as a partner of Azure Capital Limited, a leading corporate advisory firm based in Perth, Western Australia. Mr Toll has over 15 years’ experience in corporate advisory across a range of industries including mining, technology and, general industrials. He has advised local and international clients on transactions ranging from mergers and acquisitions, private capital raisings for early stage companies through to strategic and transformation financings for established businesses. Mr Toll has a Bachelor of Commerce, has completed the Institute of Chartered Accountants CA Program and a Graduate Diploma in Applied Finance. Company Secretary Ms Sarah Wilson Ms Wilson is a Company Secretary with national corporate advisory firm Source Governance and has over 10 years’ experience in company secretarial, corporate advisory and corporate governance roles, which have included the provision of company secretarial services to a number of ASX listed resource companies. Ms Wilson holds a Certificate in Governance Practice and is a Certified Member of the Governance Institute of Australia. She is currently company secretary to a number of ASX listed companies with a strong focus on resources. Ms Shannon Coates (resigned as joint company secretary 31 January 2023) 6|P a g e Tesoro Gold Ltd Directors' Report 30 June 2023 Directorships of Other Listed Companies Directorships of other listed companies held by Directors currently and in the 3 years immediately before the end of the financial year are as follows: Director Zeffron Reeves Linton Putland Geoffrey McNamara Kristie Young Alan Gibson Company Culpeo Minerals Ltd Rincon Resources Ltd Podium Minerals Limited Breaker Resources Limited WA Kaolin Limited Culpeo Minerals Ltd Rincon Resources Ltd Lithium Australia Limited Corazon Mining ChemX Materials Ltd Primero Group Ltd - Period of Directorship 25 July 2018 - current 07 August 2018 – 15 November 2021 3 November 2022 - current 16 August 2018 – 4 May 2023 20 May 2020 – 20 September 2022 25 July 2018 - current 07 August 2018 – 6 December 2021 22 December 2020 – current 1 September 2023 - current 26 May 2021 – 6 February 2023 18 August 2020 – 24 February 2021 - Principal activities The principal activities of the Company and its subsidiaries are the acquisition, exploration and development of commercially significant resource projects in Chile. The Company currently holds interests in Chile, namely the El Zorro Gold Project in Chile, which is prospective for gold. Operating results The loss, after tax, attributable to the Group for the financial year ended 30 June 2023, amounted to $2,868,539 (2022: Loss $5,349,228). Dividends No dividends were paid or declared since the start of the financial year. No recommendations for payment of dividends have been made. Directors’ Interests in Shares, Options and Performance Rights At the date of this report, the following represents the shares, options and performance rights holdings of the Directors of the Company: Ordinary shares Direct Indirect Directors Zeffron Reeves1 Linton Putland2 Geoffrey McNamara3 Kristie Young Alan Gibson Total 1. 2. 3. Share Rights Direct Indirect Options Direct Indirect Performance Rights Direct Indirect - 65,224,417 - - - - - 18,450,000 - - - 277,777 - - - 10,000,000 - 33,610,546 - - - - - 21,610,000 422,675 422,675 98,834,963 - 277,777 23,483 23,483 - 4,550,000 4,550,000 50,060,000 65,224,417 Fully Paid Ordinary Shares and 18,450,000 performance rights are held by Mr Zeffron Charles Reeves as trustee for the Palin Trust. 10,000,000 performance rights and 277,777 share rights are held by Mr Linton Putland as trustee for the Putland Family Trust. 33,610,546 Fully Paid Ordinary Shares are held by Tanamera Resources Pte Ltd (a company registered in Singapore). Mr Geoffrey McNamara is the sole director and shareholder of Tanamera Resources Pte Ltd. 21,610,000 performance rights are held by Linkwood Holdings Pte Ltd (a company registered in Singapore). Mr Geoffrey McNamara is a director and substantial shareholder of Linkwood Holdings Pte Ltd. 7|P a g e Tesoro Gold Ltd Directors' Report 30 June 2023 REVIEW OF OPERATIONS Tesoro is focused on exploration and development of the El Zorro Gold Project (El Zorro or the Project) located in Northern Chile. El Zorro is proximate to well established infrastructure and is 140km from the city of Copiapo and approximately 800km north of the Chilean capital, Santiago. El Zorro Gold Project Successful exploration at the Project has resulted in the definition of the 1.3 Moz Au Tenera MRE and an estimated Exploration Target, which indicates the potential for Ternera to contain between 1.6Moz and 3.0 Moz gold (refer Table 2 and Figure 2). The combination of highly prospective geology and positive early results from first pass regional exploration have confirmed El Zorro as a new Chilean gold district. Figure 1: El Zorro Gold Project location with proximate operating mines in detail. Completion of Phase 1 Scoping Study In April 2023, the Company presented the outcomes of a Phase 1 Scoping Study demonstrating the potential development of an initial, gold mining and processing operation at the Ternera Deposit within the El Zorro Gold Project in Chile. The Study was assessed on a 100% basis (Tesoro 85%) and confirmed that an initial starter open pit at the El Zorro Gold Project presented a technically and commercially viable development opportunity. It was prepared with input from a team of expert independent consultants and provides a preliminary assessment of the potential viability of the Project based on low-level technical and economic accuracy (± 35%). The completed Study considers the initial development of a Phase 1 open pit mining operation on the upper 200m of the Deposit to feed a 2.4 Mtpa gold processing plant. Key outcomes also demonstrate the ability of the Deposit to support the estimated capital required for the development of the Project at a scale that would result in an annual average gold production of between 90 and 100 Koz per annum. 8|P a g e Tesoro Gold Ltd Directors' Report 30 June 2023 Table 1: Scoping Study evaluation period results and key assumptions (100% ownership basis) Physicals and costs (± 35%) Ore tonnage Mt 17.1 Gold grade g/t 1.25 Contained ounces Koz 689 Plant throughput Mtpa 2.4 Evaluation period (excluding pre-strip) years 7.4 waste:ore 8.3:1 Process gold recovery (life of mine average) % 94.5 Process production – total evaluation period koz 651 Process production – average annual steady state koz pa 93 Upfront capital – plant and process infrastructure US$M 108.0 Upfront capital – open pit mining US$M 13.5 Upfront capital – pre strip US$M 10.4 Operating costs – mining US$/oz Au 585 Operating costs – processing US$/oz Au 368 Operating costs – general and administration US$/oz Au 102 Strip ratio Financials and key assumptions (± 35%) Gold price Discount rate (real) US$/oz % Base Spot 1,750 1,950 5 5 AISC (life of mine average) US$/oz 1,068 1,068 NPV5% (pre-tax) US$M 201 300 % 27.5 37.1 Net cash flow (undiscounted, pre-tax) US$M 312 442.5 Payback period (pre-tax) years 3.4 2.8 IRR (pre-tax) Mineral Resource update and Ternera Exploration Target defined Assay results returned from exploration drilling conducted throughout the year informed a significant MRE update. The constrained Ternera MRE increased to 33.7 Mt at 1.18g/t Au for 1.28 Moz with 802 Koz (63%) of the resource classified as Indicated. The updated MRE has been constrained to a US$1,800/oz optimised pit shell, with the underground resource reported at a 1.50 g/t Au cut-off. The underground resource is reported at a cut-off where gold mineralisation is consistently well-developed below the optimised pit shell. On an unconstrained basis, the Ternera MRE grew to 42.6 Mt at 1.07g/t Au for 1.46 Moz. The Ternera MRE update was undertaken utilising data from 310 diamond drill holes for approximately 105km of drilling, completed up to December 2022. A detailed geological reinterpretation and 3D modelling program of Ternera demonstrated a substantial improvement in gold grade and continuity throughout the Deposit. The increased and upgraded MRE has been achieved in a capital efficient manner with a low discovery cost of less than A$21/oz (US$14/oz), well below the global average greenfield discovery cost of US$45/oz. 9|P a g e Tesoro Gold Ltd Directors' Report 30 June 2023 The revised MRE was independently conducted by Mr Lynn Widenbar, a highly credentialed and experienced mineral resource consultant. The estimate was produced utilising 3D modelling of the host lithology and mineralised fault systems interpreted to control gold deposition within Ternera. The 3D geological framework was utilised to produce a block model grade estimation using Ordinary Kriging. The Ternera MRE was classified as Indicated or Inferred based on current drill spacing, and drilling has been verified using the Company’s QAQC program which is undertaken to normal industry standards. Additionally, an initial ET has been estimated for Ternera of between 48.50Mt and 101.00 Mt at between 0.91g/t Au and 1.45g/t Au. The ET is restricted to the area constrained by existing drilling at Ternera and indicates the drilled footprint could contain between 1.6Moz to 3.0 Moz of gold. Table 2: Constrained Tenera MRE. Au g/t Area Open Pit Resource Underground Resource Total Resources Indicated Inferred Total cut off Mt Au g/t Koz Mt Au g/t Koz Mt Au g/t Koz 0.30 22.5 1.10 795 10.0 1.18 379 32.5 1.13 1,175 1.50 0.1 2.64 7 1.2 2.64 100 1.3 2.64 107 22.6 1.11 802 11.2 1.34 479 33.7 1.18 1,282 Table 3: Unconstrained Tenera MRE reported at various cut offs to the 200mRL. Indicated Inferred Total Au g/t cut off Mt Au g/t Koz Mt Au g/t Koz Mt Au g/t Koz 2.00 2.6 3.75 317 2.0 3.71 241 4.7 3.73 558 1.00 7.2 2.25 523 5.6 2.24 400 12.8 2.24 923 0.50 16.3 1.39 727 12.8 1.37 561 29.1 1.38 1,288 0.30 23.2 1.09 815 19.4 1.03 645 42.6 1.07 1,459 Drilled metres 120,000 Resource (kOz Au) Tenera constrained MRE 3,500 3,000 100,000 3,000 2,500 80,000 2,000 60,000 1,096 40,000 20,000 0 1,281 661 479 1,460 1,600 645 1,500 1,000 593 586 75 503 July 2021 MRE May 2022 MRE 802 815 March 2023 MRE March 2023 unconstrained MRE 500 0 Drilled metres Indicated Resource Tenera Gold Deposit Exploration Target Inferred Resource Figure 2: Tenera MRE growth updates and initial Exploration Target highlighting improved classification and consistent resource growth with efficient drilling. 10 | P a g e Tesoro Gold Ltd Directors' Report 30 June 2023 A summary of significant drill intercepts announced during FY2023 are outlined in Table 4. Hole_ID From (m) To (m) Interval Au (g/t) Comments ZDDH0297 15.40 450.00 434.60 1.22 ZDDH0297 30.50 420.00 389.50 1.34 including ZDDH0297 72.00 290.50 218.50 1.86 including ZDDH0297 111.40 200.80 89.40 3.29 including ZDDH0297 111.40 148.40 37.00 6.54 including ZDDH0297 127.60 148.40 20.80 9.19 including ZDDH0297 195.00 201.25 6.25 3.24 including ZDDH0297 230.85 234.45 3.60 2.62 including ZDDH0297 254.32 265.00 10.68 2.17 including ZDDH0297 285.11 291.00 5.89 2.88 including ZDDH0297 358.73 374.00 15.27 4.72 including ZDDH0297 363.55 373.10 9.55 5.80 including ZDDH0298 27.00 590.00 563.00 0.35 ZDDH0298 27.00 109.00 82.00 0.72 including ZDDH0298 27.00 48.00 21.00 2.00 including ZDDH0298 31.00 38.80 7.80 2.80 including ZDDH0298 44.70 48.00 3.30 4.77 including ZDDH0298 174.00 177.50 3.50 1.85 including ZDDH0298 391.44 395.00 3.56 3.05 including ZDDH0298 474.75 500.45 25.70 1.00 including ZDDH0298 480.86 484.80 3.94 3.86 including ZDDH0299 139.50 146.00 6.50 0.85 ZDDH0299 139.50 142.23 2.73 1.83 including ZDDH0299 245.00 248.50 3.50 0.63 ZDDH0299 246.00 246.86 0.86 0.86 including ZDDH0300 31.00 34.00 3.00 1.37 ZDDH0300 31.00 34.00 3.00 3.04 including ZDDH0300 44.00 46.00 2.00 1.61 ZDDH0300 153.00 374.00 221.00 0.85 ZDDH0300 193.40 323.00 129.60 1.08 including ZDDH0300 193.40 263.00 69.60 1.23 including ZDDH0300 170.00 183.00 13.00 1.35 including ZDDH0300 193.40 216.00 22.60 2.51 including ZDDH0300 206.00 213.50 7.50 4.16 including ZDDH0300 292.50 315.00 22.50 1.48 including ZDDH0300 388.00 393.00 5.00 1.36 ZDDH0300 507.00 512.30 5.30 1.02 ZDDH0300 560.00 561.00 1.00 1.54 ZDDH0300 565.00 565.38 0.38 1.67 ZDDH0301 40.00 44.00 4.00 1.11 ZDDH0301 55.10 61.00 5.90 1.79 ZDDH0301 57.00 61.00 4.00 2.46 including ZDDH0301 83.10 90.00 6.90 0.88 ZDDH0301 206.30 207.00 0.70 5.10 ZDDH0301 231.00 268.00 37.00 0.58 ZDDH0301 231.00 233.00 2.00 1.65 including ZDDH0301 247.93 252.00 4.07 2.04 including ZDDH0301 264.00 268.00 4.00 2.19 including ZDDH0301 321.13 330.65 9.52 0.82 ZDDH0301 329.00 330.00 1.00 4.05 including ZDDH0301 346.00 368.08 22.08 1.98 ZDDH0301 346.00 363.86 17.86 2.35 including ZDDH0301 349.14 353.50 4.36 4.67 including ZDDH0301 359.60 361.93 2.33 7.23 including ZDDH0301 381.00 382.00 1.00 0.96 ZDDH0302 69.00 70.00 1.00 17.50 ZDDH0302 92.53 95.00 2.47 0.60 ZDDH0302 182.90 184.00 1.10 1.28 ZDDH0302 300.98 302.10 1.12 2.32 ZDDH0302 320.00 323.00 3.00 0.43 Hole_ID From (m) To (m) Interval Au (g/t) Comments ZDDH0303 275.00 276.00 1.00 0.59 ZDDH0303 295.56 314.00 18.44 0.41 ZDDH0303 295.56 296.00 0.44 1.15 including ZDDH0303 302.00 303.00 1.00 1.00 including ZDDH0304 7.00 8.00 1.00 0.78 ZDDH0304 13.00 13.70 0.70 1.27 ZDDH0304 43.00 44.63 1.63 0.52 ZDDH0304 91.00 107.00 16.00 0.67 ZDDH0304 91.00 92.00 1.00 6.73 including ZDDH0304 100.00 101.00 1.00 1.13 including ZDDH0304 126.00 127.00 1.00 0.78 ZDDH0304 211.00 212.00 1.00 1.20 ZDDH0305 11.00 12.00 1.00 0.57 ZDDH0305 50.00 96.62 46.62 0.77 ZDDH0305 50.00 59.00 9.00 1.03 including ZDDH0305 54.50 59.00 4.50 1.80 including ZDDH0305 69.00 85.00 16.00 1.45 including ZDDH0305 69.00 72.00 3.00 5.45 including ZDDH0305 145.00 146.00 1.00 0.79 ZDDH0305 156.00 157.00 1.00 0.77 ZDDH0305 206.00 206.39 0.39 2.43 ZDDH0306 96.00 97.00 1.00 0.56 ZDDH0306 99.00 100.00 1.00 0.59 ZDDH0306 164.40 166.39 1.99 0.53 ZDDH0306 173.00 175.00 2.00 7.30 ZDDH0306 195.57 197.00 1.43 1.29 ZDDH0306 201.00 202.00 1.00 1.81 ZDDH0307 61.00 62.00 1.00 0.44 ZDDH0307 100.78 103.00 2.22 2.39 ZDDH0307 109.00 110.00 1.00 1.83 ZDDH0307 146.10 147.00 0.90 0.75 ZDDH0307 184.00 184.80 0.80 5.40 ZDDH0308 15.00 16.00 1.00 2.38 ZDDH0308 62.00 63.90 1.90 0.59 ZDDH0308 80.60 81.00 0.40 0.85 ZDDH0309 40.00 45.00 5.00 1.10 ZDDH0309 57.00 110.50 53.50 1.17 ZDDH0309 57.00 57.65 0.65 2.90 including ZDDH0309 70.50 84.00 13.50 3.63 including ZDDH0309 70.50 77.60 7.10 6.36 including ZDDH0309 273.00 295.00 22.00 0.62 ZDDH0309 275.50 284.00 8.50 1.17 including ZDDH0309 333.00 363.20 30.20 0.52 ZDDH0309 344.00 357.00 13.00 0.74 including ZDDH0309 344.00 350.37 6.37 1.14 including ZDDH0309 430.00 435.70 5.70 0.89 ZDDH0309 476.00 480.00 4.00 1.00 ZDDH0309 476.00 478.00 2.00 2.18 including ZDDH0309 499.00 500.00 1.00 0.82 ZDDH0310 128.00 149.00 21.00 0.55 ZDDH0310 141.50 148.70 7.20 1.43 including ZDDH0310 147.30 149.00 1.70 3.92 including ZDDH0311 19.54 20.20 0.66 0.84 ZDDH0311 41.00 46.50 5.50 0.72 ZDDH0311 44.00 44.70 0.70 4.83 including ZDDH0311 70.50 72.35 1.85 0.94 ZDDH0311 117.00 118.00 1.00 0.76 ZDDH0311 242.50 270.00 27.50 0.69 ZDDH0311 242.50 243.00 0.50 1.53 including ZDDH0311 251.80 270.00 18.20 0.99 including Hole_ID From (m) To (m) Interval Au (g/t) Comments ZDDH0311 251.80 256.00 4.20 1.28 including ZDDH0311 268.00 270.00 2.00 6.24 including ZDDH0311 285.00 286.00 1.00 0.85 ZDDH0312 0.00 NSI ZDDH0313 112.00 113.00 1.00 0.33 ZDDH0313 146.00 147.40 1.40 3.39 ZDDH0313 169.00 170.00 1.00 0.29 ZDDH0313 179.00 180.00 1.00 0.34 ZDDH0314 0.00 NSI ZDDH0315 0.00 NSI ZDDH0316 0.00 NSI ZDDH0317 16.20 24.00 7.80 2.78 ZDDH0317 18.00 23.00 5.00 3.76 ZDDH0317 53.00 55.80 2.80 4.76 ZDDH0317 54.00 55.36 1.36 9.00 ZDDH0318 0.00 NSI ZDDH0319 11.00 12.00 1.00 0.40 ZDDH0319 14.80 15.60 0.80 0.70 ZDDH0319 19.00 20.00 1.00 0.56 ZDDH0319A 14.00 18.60 4.60 3.35 ZDDH0319A 14.50 17.00 2.50 5.48 including ZDDH0319A 42.00 43.00 1.00 2.55 ZDDH0319A 81.00 82.00 1.00 0.46 ZDDH0319A 140.51 141.16 0.65 0.49 ZDDH0320 103.90 115.00 11.10 0.86 ZDDH0320 103.90 105.00 1.10 2.44 including ZDDH0320 113.00 115.00 2.00 3.00 including ZDDH0320 190.00 191.00 1.00 0.72 ZDDH0320 193.70 194.00 0.30 1.32 ZDDH0320 215.00 216.00 1.00 44.40 ZDDH0320 297.00 332.00 35.00 0.66 ZDDH0320 298.00 313.00 15.00 1.20 including ZDDH0320 306.00 313.00 7.00 2.04 including ZDDH0320 306.00 307.00 1.00 7.43 including ZDDH0320 318.50 319.25 0.75 1.62 including ZDDH0320 331.00 332.00 1.00 1.46 including ZDDH0321 8.00 11.00 3.00 2.70 ZDDH0321 9.00 10.00 1.00 7.63 including ZDDH0321 28.00 39.00 11.00 0.32 ZDDH0321 32.71 33.47 0.76 1.38 including ZDDH0322 156.60 157.00 0.40 8.81 ZDDH0322 168.00 169.00 1.00 0.99 ZDDH0322 173.00 173.90 0.90 0.72 ZDDH0322 182.60 183.00 0.40 0.51 ZDDH0323 24.30 25.40 1.10 1.28 ZDDH0323 42.20 51.50 9.30 0.98 ZDDH0323 42.20 44.70 2.50 1.93 including ZDDH0323 48.80 50.65 1.85 2.05 including ZDDH0323 90.00 91.00 1.00 0.63 ZDDH0323 121.00 122.00 1.00 2.34 ZDDH0323 128.00 129.00 1.00 0.71 ZDDH0324 0.00 NSI (Abandoned) ZDDH0324A 53.90 67.63 13.73 0.76 ZDDH0324A 54.50 56.00 1.50 1.77 including ZDDH0324A 65.00 66.30 1.30 4.07 including ZDDH0324A 92.00 93.00 1.00 0.79 ZDDH0324A 112.00 112.50 0.50 3.18 Table 4: Drill hole assay results for holes completed during the year 2023 11 | P a g e Tesoro Gold Ltd Directors' Report 30 June 2023 Exploration activities confirm El Zorro as a new Chilean gold district At the beginning of the financial year, Tesoro announced it had received promising assay results from detailed surface sampling and mapping programs undertaken across the El Zorro Gold Project, which identified a belt of outcropping El Zorro Tonalite (EZT) over 33km of strike. Mapping and sampling programs confirmed a highly prospective north-south trending “gold” zone with outcropping occurrences of the EZT occurring as discrete dykes, as well as dyke swarms. Wide zones of surface gold anomalism analogous to the Ternera Gold Deposit were identified. Compelling new Ternera “lookalike” drill targets were also defined. Two new high priority targets, Kitsune and Calderillas were identified to the north of Ternera. These targets were initially characterised by strike extensive dyke swarms of the EZT coincident with broad gold zones up to 45m wide in outcrop. Both targets were interpreted to exhibit similar gold anomaly patterns and tenor to the surface expression of gold mineralisation at Ternera. The Calderillas target occurs approxi