KR1 and KR2 Deposits

The Company successfully completed an extensive reverse circulation drilling program at the KR1 and KR2 deposits within the Balfour Manganese Field. This delivered a significant Maiden Mineral Resource Estimate for a combined total of 103 Mt @ 10.4% Mn containing 10.7 Mt of manganese.

• KR1 of 79 Mt @ 10.0% Mn (100% Indicated)
• KR2 of 24 Mt @ 11.9% Mn (Inferred)

Scoping Study

In July 2024, the Company released positive results from a Scoping Study applied to the KR1 and KR2 deposits, based on the combined Mineral Resource of 103 Mt @ 10.4% Mn and ongoing metallurgical testwork. The Scoping Study was based on a 16 year mine life, with an average mining production rate of 3.0Mtpa, producing 12Mt of manganese concentrate over the Life of Mine (LOM). Production Targets of 48.2 Mt @ 10.9% Mn were estimated with the project generating on average A$46.1m annual operating cashflow over the Life of Mine.

Operating Cashflow

Financial Performance Summary	Unit	LOM
Initial LOM	(years)	16
Total LOM Revenue	(A$ M, real)	2,781
Total LOM EBITDA	(A$ M, real)	654
NPV @ 8% – before tax	(A$ M, real)	340
IRR – before tax	(%, real)	70%
Project Capital Expenditure	(A$ M, real)	84
Payback Period – before tax	(years)	<2
Average Sales Price (LOM)	Product (A$/t)	227
	$US/dmtu	4.60
EX rate AUD:USD	$	0.67
CI Cash Costs (CIF)	(A$/t, real)	149
	$US/dmtu	3.02
AISC (CIF)	(A$/t, real)	166
	$US/dmtu	3.38

Site Layout

Simple Flowsheet Design

Mineral Resource Estimates

The Mineral Resources at KR1 and KR2 are hosted in mostly outcropping manganese enriched shales and form topographically elevated features. The Mineral Resources defined at KR1 and KR2 have been estimated utilising RC drilling completed by Black Canyon comprising 112 holes for 3,419 m of drilling.

At KR1, the Mineral Resource estimate is based on drillholes on traverses completed on 200 m spaced lines and 100 m spaced drillhole centres. The drill data shows the manganese enriched shale geology and grades are continuous downhole and across strike, which supports the Indicated Mineral Resource classification at this drill spacing.

At KR2, the Mineral Resource estimate is based on drillholes on traverses completed on 200 m spaced lines and 200 m spaced drillhole centres. The drill data shows the manganese enriched shale geology and grades are continuous downhole and across strike, which supports the Inferred Mineral Resource classification at this drill spacing.

Summary of Mineral Resources for the KR1 and KR2 deposits across the Balfour Manganese Field, Nov 2023

Notes:

1. Mineral resources reported at a cut-off grade of 11% Mn.
2. Appropriate rounding has been applied.
3. Refer to Appendix 1 JORC Table 1, Sections 1 to 3 and Appendix 2 for further details

Type section 7,475,900mN (looking north) showing the KR1 Mineral Resource model cells and drill holes coloured by Mn grade (%).

Type section 7,472,000 mN (looking north) showing KR2 Mineral Resource model cells and drill holes coloured by Mn grade (%).

The geology at KR1 can be separated into a number of primary units:

• Supergene enriched manganese shales often associated with a higher iron content that form a prominent ridge in the centre of the deposit, and typically extend from surface to 15 to 20 m depth.
• A thick and widely distributed manganiferous enriched shale unit that contains supergene (manganese) enriched shale located between surface and 25 m depth.
• At depth the fresh manganiferous olive to green shales of the Balfour shale persist with variable manganese enrichment.
• A non-manganese bearing laterite layer is well developed on the southern drill lines and gets progressively thicker to the south and west. The laterite contains up to 31% Fe, but is low in Mn (<1%).
• A calcareous-manganese shale is encountered at the north end of the deposit and is often mapped at surface. It has a laminated appearance, with carbonate and manganese bands as opposed to the more massive manganese shale observed in the south.
• Below the fresher manganiferous shales, an unmineralized green and brown laminated shale is encountered.
• An 80 wide dolerite dyke striking to the NNE bisects the deposit. The dyke is subvertical and separates the manganese enriched shales.

KR1 deposit JORC Mineral Resource Classification (>7% Mn)

The KR2 deposit appears to be geologically simpler than the KR1 deposit.

• The surface enriched manganese shales which are typically higher grade and maybe ferruginised to some extent and occurs from surface to 15 m depth.
• A thick and widely distributed manganiferous shale unit that contains the supergene (manganese) enriched shale located between surface and 30 m depth.
• At depth the fresh manganiferous olive to green shales of the Balfour shale persist but have a lower manganese grade.

KR2 deposit JORC Mineral Resource Classification (>7% Mn)