Rumble Resources Limited (ASX:RTR) has been of interest to me for quite some time, and its recent recovery from a significant drop in share price has captured my attention. From a company standpoint, I am thinking that the new strategy is striking all the right chords in waking up the bull from a near 4-year hibernation. From a technical perspective, Samso spotted the value way before the discovery hole for the Earaheedy project way back in March 2021. I had tried to approach management at that time to host their prospective project on a Coffee with Samso but was kindly turned down. A while later, the company put out a release on the 19th of April 2021, "Major Zinc-Lead Discovery at Earaheedy Project, Western Australia," and that was when the share price took to the sky (Figure 1). Figure 1: The share price chart of Rumble Resources Limited (ASX:RTR) (source: commsec) Reflecting my views on the optimistic market outlook for 2025, Rumble seems to have a new management team with what seems to be an effective strategy. I believe it may be worthwhile to assess the potential of the existing project portfolio. Over the last few weeks, I have started to express my belief in a market shift (2025—The Year of The Golden Snake—Has The Market Catalyst Emerged?) and am wanting to discover potential under-the-radar opportunities and decide which ones have the potential to advance. As retail investors, we can't choose the perfect timing or the right investment without conducting research. For those who want to skip to the parts of the review, please use the list below. 1.0 The Rumble Resources 2025 Plan 1.1 New Message 2.0 The Prize Project - Western Queen Gold Project 2.1 History and Resources 3.0 Western Queen Gold Project - 2025 3.1 New Results 4.0 Western Queen South Gold Project - The comparison to the Never Never Gold Deposit. 5.0 Western Queen Gold Project - The Other Targets 6.0 Western Queen Gold Project - The Tungsten Story 7.0 Samso Concluding Thoughts 1.0 The Rumble Resources 2025 plan. After examining the most recent presentation from the RIU Conference in Fremantle, it seems to represent a promising new beginning for Rumble Resources. My initial impression is that analyzing Rumble Resources' Vision and Mission statements and employing some creative thinking, would be an effective way to uncover the deeper meaning and initiate the DYOR process. It is always a good way to understand what the company wants us to see as their path forward. With a current market capitalization of AUD $40M, 940M shares issued, and about AUD $4.6M in the bank, it’s a solid start. One anomaly I noticed is that the Earaheedy project might be generating value that doesn't align with market sentiment. This is a legacy "asset" that won't disappear in a quick fashion, so I'm unsure if this will be a concern in the future. 1.1 New Message Rumble Resources is now all about the Western Queen Gold project and targeting open-pit mining and toll processing in 2025. This new strategy is fully funded by the Bain Group, an Indian-based mining company that has agreed to fully finance the project's development with up to AUD $35M (Development of Western Queen Gold Project). The release does state that it is an Indicative Non-Binding Term Sheet, but I am not sure if this is now a binding proposition. This would be a good question for Peter Harold, the Managing Director and CEO, if I could convince him to do a Coffee with Samso. With gold prices surging and investor interest in the precious metals sector rising, Rumble’s near-term production story is why it got me curious enough to do this discussion. “When you've got a gold project in a gold environment like we're in, you've got to get into production as soon as you can.” — Peter Harold, MD & CEO 2.0 The Prize Project—Western Queen Gold Project (source: Rumble Resources Limited website) The Western Queen Gold project lies 110km NW of Mt Magnet within the Yalgoo Mineral Field of Western Australia and comprises two mining leases, M59/45 and M59/208, and 2 exploration tenements, E20-0967 and E59-2443, which are 100% RTR. The Project has 3 nearby operating gold processing mills (see Figure 2). The closest mill is the Dalgaranga Mill (48 km), which has a capacity of 2.5 Mtpa. The Checkers Mill (Mt. Magnet) has a capacity of 1.9 Mtpa, and the Tuckabianna Mill has a capacity of 1.2 Mtpa. Figure 2: Rumble Resources Limited's Western Queen Project Location and Neighbouring Gold Processing Facilities (source: Rumble 2025 RIU Presentation) 2.1 History and Resources The Western Queen Gold Project has historically produced 215,000 ounces of gold from two mined deposits: the Western Queen (Central) Mine (189,500 oz) and the Western Queen South Mine (25,500 oz). In August 2021, an updated Mineral Resource Estimate (MRE) reported a 35% increase in total resources, now at 2.1Mt @ 2.42g/t Au for 163,268 ounces. Indicated Resources grew significantly, rising 145% to 1.1 Mt @ 1.95 g/t Au for 67,145 ounces. The combined open-cut and underground resources are detailed in Table 1. Table 1—Western Queen Project Resource Estimate (source: Rumble Resources Website) 3.0 Western Queen Gold Project—2025 Rumble has upgraded the resource by 76% to date, and the resource is now up to 286,600 ounces from 163,268 ounces historically. Figure 3 highlights the existing historical pits and the potential mineralisation beneath, anchoring the future of the mining process. Figure 3: Western Queen Gold Deposit Longitudinal Section – Highlighting Previous Production, Resources and Potential New Resource Areas. (source: Rumble Resources Limited) For those still awake, it's important to understand the strike length. For those unfamiliar with the term "Strike," it refers to the distance of potential mineralisation. The 2.7 km strike length is what Rumble is relying on for its mining narrative. Rumble is concentrating on Western Queen South, which contains 85,000 ounces across the two smaller deposits within their current mining plan. 3.1 New Results On February 17, 2025, Rumbles announced the results of Phase 1 drilling: "High-grade gold and tungsten assays returned from Phase 1 drilling at Western Queen." The objective of Phase 1 drilling was to evaluate several shallow positions, which revealed two new high-grade lodes beneath Princess, under a pegmatite intrusion (Figure 4). Figure 4: Drilling from Rumble's First Phase drilling program is shown here through a longitudinal section of the Princess deposit showcasing the newly discovered high-grade lodes, illustrating their parallel southward plunging orientation in relation to the existing Western Queen Central lode. (source: Rumble Resources Limited) The drilling appears to be consistent with the extent of the mineralising body, which is great, but whether they will make it economically viable in the future will be important. The noted tungsten mineralisation is very interesting, and with grades of greater than 0.2% WO₃, this could be a positive addition to the economics. Tungsten is an interesting commodity, as it is one of the metals that are controlled by China, and it has hit the news front with China restricting its flow of the metal. which could throw a very positive spin for Rumble. My experience with tungsten will throw caution to the wind on this news, but in our uncertain nature of the business, it looks more than interesting for now. 4.0 Western Queen South Gold Project—The comparison to the Never Never Gold Deposit. In Peter Harold's presentation at the RIU Conference in Fremantle, he compares the Western Queen mineralisation to that of the Never Never deposit, which is being developed by Spartan Resources Limited (ASX:SPR). Figure 5 below illustrates his thoughts on the likely similarity of mineralisation and the potential upside of the Western Queen South deposit. Figure 5: Rumble Resources Limited Western Queen South comparison to Spartan’s Never Never (to scale). (source: Rumble 2025 RIU Presentation) Peter describes that the Never Never has over 2M ounces, and Western Queen South has only been drilled down to 300m and hence has the potential to be open with depth. This concept is good in principle. This concept is not new, and as many exploration and mining geologists will agree, the potential is always there, but reality is another ball game. The positive spin to that thought is that a consistently mineralised system that looks like it is at the Western Queen South deposit typically tends to continue with depth. Most times when they "disappear," it would be a truncation, or a cutting off, of the mineralised body. If that were to happen, then the task would be to identify where it has been "moved" to, in terms of directions. 5.0 Western Queen Gold Project - The Other Targets As most of the focus for Rumble has been on Western Queen South and Western Queen Central, there appears to be a potential upside along the other part of the shear zone (Figure 6). Figure 6: Western Queen Shear Zone Prospectivity over TMI Airborne Magnetics. (source: Rumble 2025 RIU Presentation) There is another 2km stretch between the Duke and Cranes deposits that remains largely unexplored, with some significant findings like 14m @ 4.7 g/t Au. It is good to remember that over the past 5 to 10 years, the reinterpretation of existing serial magnetics has been highly successful in targeting. Recently, geochemical sampling has been overtaken by the growing preference for geophysics. Explorers have come to realise that technology is transforming our understanding of what lies beneath the surface, and in many cases, geophysics is more economical. While I am a strong advocate of geochemistry, when it comes to probing deep below the surface, the timing of results and sometimes the funding required, geophysics offers numerous advantages. 6.0 Western Queen Gold Project—The Tungsten Story As mentioned earlier, the tungsten story adds some real meat to the whole Rumble story. The occurrence of Tungsten with gold is not a new concept, but the grades that have been reported at the Western Queen project are very enticing. Some readers may remember that I have mentioned in the past that I was involved in a tungsten project around 2012. When I am looking at the results in one of the slides from the RIU presentation (Figure 7), the grades of up to 4.58% WO₃ and one submeter of 18.35% WO₃ are a tungsten miner's dream. Figure 7: A presentation slide during the RIU conference that highlights a potential tungsten mix to the Western Gold project. A photo of the core looks like the mineralisation is dense and consistent with a likely mature mineralising system. (source: Rumble Resources Limited) The other major tungsten deposit that sits within a stone's throw from the major Telfer gold deposit is the famous O'Callaghan deposit in the Patterson Range. Time will tell what is in store with the tungsten part of Rumble's story, but the market is very hard to commercialise. 7.0 Samso Concluding Thoughts The Rumble story is finally taking a positive turn for shareholders after spending a long period on the bearish side. Shareholders, who have endured a prolonged downturn, haven't had much to celebrate since the initial surge to over AUD $0.60 in 2021, followed by a gradual decline with little noteworthy progress (Figure 8). Figure 8: Rumble Resources Limited share price chart since 2015. (source: comssec). Looking back on the Rumble Resources share price, as I have mentioned earlier, I approached management many times to get the story on Coffee with Samso to talk about the Earaheedy project, which, with the size, grade, and potential size, would have gone well. My thoughts are that the gold mining play with the support of the Bain Group is the perfect recipe and timing. I do think that the Earaheedy project is not a good fit. The best option for the Earaheedy project is to spin it out into another entity and let Rumble be a full-fledged gold play. This is not to say that the Earaheedy project has no value, but in the context of the very sensitive mineral exploration sector, this will lead to confusion as to where the underlying value proposition is. The Western Queen and all of its potential need to be the centre of attention. I am sure I am not saying anything that the management is not already planning, as this is the standard operandi for companies like Rumble. As I am not a mining engineer and I have not looked at the mining potential in great detail, I cannot comment on that part of the Rumble story with any authority. I take what has been presented as valid. In saying that, I do have some questions, but I am hoping that management will accept my invitation to come to Coffee with Samso. What is apparent currently is that the share price curve is flattening out now over the last 12 months (Figure 9). This is a good sign, and the ups and downs are expected, but the time is now for management to deliver what they are promising. Figure 9: Rumble Resources Limited share price chart for the last 12 months. (source: comssec). To support our independent nature of our work, please head over to our Support Page and give us a helping hand in any of the ways listed. This is a new initiate for the Samso Platform, and it was always the concept of Samso when we started this journey in 2018. Cover photo: Nowa Helena zinc lead mine Piekary, unknown author. Public domain, via Wikimedia Commons (https://commons.wikimedia.org/wiki/File:Nowa_Helena_zinc_lead_mine_Piekary.jpg). Reproduced photograph, shown faded under a navy overlay on the article thumbnail. Disclaimer The information or opinions provided herein do not constitute investment advice, an offer or solicitation to subscribe for, purchase or sell the investment product(s) mentioned herein. It does not take into consideration, nor have any regard to your specific investment objectives, financial situation, risk profile, tax position and particular, or unique needs and constraints. Read full Disclaimer. Share to Grow: Your Bonus Samso has just released an eBook: How to Add Value to your Share Portfolio A lesson on geological models sought by mining companies that gives insight and an understanding of which portfolios are better - and potentially more lucrative – investments. Click here to download this eBook. Download eBook If you find this article informative and useful, please help me share the information. I try and write about topics that are interesting and have the potential to be of investment value. It is not easy to find stories that fit those parameters. If you or your organisation see the benefit of what Samso is trying to achieve and have a need to share your journey, please contact me on noel.ong@samso.com.au. About Samso Samso is a trusted platform that equips dedicated investors with up-to-date industry knowledge and insights from top CEOs and thought leaders. By staying informed on business advancements and market trends, investors can enhance their financial decisions through a combination of expert guidance and their own research.

A notable announcement by E79 Gold Mines Limited (ASX: E79) securing 100% ownership of the Mountain Home Copper-Gold-Bismuth Project in the Northern Territory. The move, announced on 22 April 2025 (E79 Gold Acquires 100% of the Mountain Home Project), indicates that there may be some activity happening on this project soon. The geology in this region is very exotic, and I would also include the tectonics, or rather, the structural history, which is also noteworthy. Northern Territory geology has always been a great place for discoveries. The issue in the past has been the remoteness and the inability to get the market excited. Strategic Win: Early Option Exercise The company exercised its option to acquire the underlying tenement (EL32470) ahead of schedule from NT Minerals, securing a favourable renegotiation of terms: Net Smelter Royalty (NSR) reduced from 2% to 1% Royalty cap reduced from A$3 million to A$1.5 million Option to acquire the NSR outright for A$1 million This proactive move not only cements E79's control over the asset but also enhances its long-term economics and appeal to investors. "By exercising the Option early, we’ve secured 100% ownership on more favourable terms, significantly increasing the Project’s potential," - CEO Ned Summerhayes. The Mountain Home Project Figure 1: Location map of the Mountain Home Project with the McArthur and Carpentaria Basins. Tenure: EL32470 (now 100% owned), EL33886 & EL33887 (under application) Size: Covers 868km² within the McArthur Basin, Northern Territory Minerals: Copper, gold, and bismuth Geological Highlights: Rock chip samples returned assays of up to 45.5% Cu, 11.75 g/t Au, and 9.09% Bi Located in a known metallogenic province with high discovery potential This project (Figure 1) stands out not only for its impressive early results but also for its location in a basin known for being the world’s largest accumulation of zinc-lead resources and increasingly attractive for copper-gold exploration. The McArthur lead-zinc mine has been the cornerstone mining project in the area for decades. Apart from the Merlin diamond mine slightly towards the north, there has not been much action. I completed an honours project here in 1991, and the shoshonitic rocks I had were a mixture of chemistry, with some aligning themselves with alkaline basalts. I have not looked at where the Mountain Home project lies in relation to the Arunta block, which lies beneath the central part of the Northern Territory geology, but I am pretty sure the exoticness is high on the list for mineralisation. Rock chips are not something you measure the prospective nature of a project, but it does give you an indication of what could be sitting somewhere in the patch of ground that E79 has. Hard work from here is what will be required, and lots of cash. Hence, it is a very early stage, but I am keen to see what the exploration will uncover. E79 Gold Mines Continuing Momentum in 2025 With the AAPA heritage licence accepted and the heritage survey pending, E79 is on track to commence drilling in the dry season of 2025. This will be the first major campaign since securing full ownership, and expectations are high following promising geochemical results. Figure 2: Map of E79 Gold’s exploration projects. Beyond Mountain Home, E79 Gold holds ~1,838km² of exploration ground (Figure 2), including: Laverton South Project in the Laverton Tectonic Zone (Western Australia) Murchison Project (under JV with Scorpion Minerals) Areas prospective for gold, copper, bismuth, and even diamonds These projects are strategically located in world-class mineral provinces within the Yilgarn Craton and McArthur Basin, both of which are rich in historical and emerging discoveries. Why Investors Should Watch E79 Gold: ✅ Full ownership of high-grade copper-gold-bismuth project ✅ Strong value enhancement via reduced royalties ✅ Drill-ready in 2025 with confirmed high-grade surface samples ✅ Strategic position in two Tier-1 mining jurisdictions Concluding Comments from Samso E79 is a mineral explorer, and there is no denying that the company has no projects that would come close to attracting lots of funding at this stage of the market. The mineral exploration market is currently at a very difficult stage in terms of funding projects. What E79 has are very supportive shareholders, so from that point of view, shareholders can be grateful. I am taking some time to review E70 because, as I have mentioned before, I like the two most important parts of accessing companies like E79. These two points are the technical projects and the content of management. I have said enough, and for those that have not seen the Coffee with Samso with E79, please spend some time and check it out below: Mineral Explorer Perfectly Primed for Value Creation | E79 Gold Mines Limited (ASX:E79) | CWS Ep.201 There is ample time to look at the investment propositions for E79 so as I always say, DYOR and don't forget that there are only two things in life that is a sure thing, Paying Tax and Death. Happy investing. To support our independent nature of our work, please head over to our Support Page and give us a helping hand in any of the ways listed. This is a new initiate for the Samso Platform, and it was always the concept of Samso when we started this journey in 2018. Cover photo: Gold panning on Jack Wade Creek (24785190007), BLM Alaska. Public domain, via Wikimedia Commons (https://commons.wikimedia.org/wiki/File:Gold_panning_on_Jack_Wade_Creek_(24785190007).jpg) Disclaimer The information or opinions provided herein do not constitute investment advice, an offer or solicitation to subscribe for, purchase or sell the investment product(s) mentioned herein. It does not take into consideration, nor have any regard to your specific investment objectives, financial situation, risk profile, tax position and particular, or unique needs and constraints. Read full Disclaimer. Share to Grow: Your Bonus Samso has just released an eBook: How to Add Value to your Share Portfolio A lesson on geological models sought by mining companies that gives insight and an understanding of which portfolios are better - and potentially more lucrative – investments. Click here to download this eBook. Download eBook If you find this article informative and useful, please help me share the information. I try and write about topics that are interesting and have the potential to be of investment value. It is not easy to find stories that fit those parameters. If you or your organisation see the benefit of what Samso is trying to achieve and have a need to share your journey, please contact me at noel.ong@samso.com.au. About Samso Samso is a trusted platform that equips dedicated investors with up-to-date industry knowledge and insights from top CEOs and thought leaders. By staying informed on business advancements and market trends, investors can enhance their financial decisions through a combination of expert guidance and their own research.

Announcement: Gidji Drilling Delivers More Gold Results Gold is back in the Eastern Goldfields—and so is Miramar Resources (ASX: M2R), which is now back in town. In my opinion, the return to Gidji is the right path for M2R. Gidji is one of those projects that requires completion. A complete exploration of all potential options to discover that economic deposit. The latest results from Gidji Joint Venture (JV) Project, located just 15km north of Kalgoorlie, reinforce the project's potential to host a major new gold camp and come as the Australian dollar gold price surges past A$5,000/oz. Project Location The Gidji JV is strategically located along the Boorara Shear Zone, a proven structural corridor with multiple gold operations nearby, including Northern Star Resources’ Kalgoorlie assets (Figure 1). Figure 1: Gidji JV Project (yellow outline) and Boorara Shear Zone (white), near Kalgoorlie (source: M2R ASX Announcement on 12 May 2025) Why This Matters The latest drilling expands the supergene gold footprint at the high-priority Blackfriars target, an area that shares key geological characteristics with the multi-million-ounce Paddington deposit. Miramar’s Executive Chairman, Mr. Allan Kelly, commented: “The new results increase the footprint of the high-priority Blackfriars target, which shares several similarities to the multi-million-ounce Paddington gold deposit along strike to the north, including its location at the contact between the Boorara Shear Zone and the Black Flag Beds,” “This is the first systematic drilling at Gidji after a break of almost 3 years whilst, at the same time, the Australian dollar gold price has risen from $2,500/oz to well over $5,000/oz.” Drill Intercepts Miramar released results from the first 34 aircore holes of a 180-hole campaign. While grades are modest, several intercepts hint at a growing, consistent mineralisation: GJAC955: 1m @ 4.45g/t Au (paleochannel gold) GJAC944: 1m @ 2.01g/t Au GJAC932: 2m @ 1.96g/t Au GJAC960: 2m @ 1.12g/t Au (end-of-hole, open to east) Additionally, strong silver values were encountered: GJAC945: 2m @ 0.75g/t Au with 8.68g/t Ag GJAC943: 1m @ 0.53g/t Au with 4.38g/t Ag These numbers may seem small in isolation, but within the context of widespread supergene mineralisation across multiple targets, they carry weight (Figure 2). Figure 2: New aircore drilling results (squares) and previous drilling (circles) (source: M2R ASX Announcement on 12 May 2025) The Bigger Picture This is the first major drill program at Gidji since 2022. The flat-lying supergene gold zones being intersected are hosted below the Gidji Paleochannel, suggesting the potential for more significant bedrock-hosted mineralisation beneath. Since 2020, Miramar has: Unlocked multiple new gold zones through systematic aircore drilling Identified bedrock targets for deeper drilling Demonstrated large-scale mineralisation potential in an underexplored terrain Strategic Advantages Infrastructure: Close proximity to operating mills and gold mines Underexplored: Gidji has remained hidden due to transported cover and paleochannel masking Aggressive strategy: Miramar is leveraging historic data with modern exploration techniques What’s Next? Completion of the current 180-hole aircore campaign Targeting high-grade bedrock zones with RC and diamond drilling Assessing scale and continuity of new mineralised zoneshttps://youtu.be/uF2RPWPEXJw?si=QELGfFZBjje6DR5h With the Australian gold price pushing new highs and interest growing in the Kalgoorlie region, Miramar is positioning itself for a potential breakthrough. Samso’s Concluding Comments Gidji is one of those projects that was left behind, mainly due to the total disinterest in a gold project when the whole market was only interested in lithium. As a practitioner in this market on the corporate level, I am pretty sure that Allan had no choice but to leave Gidji in preference for the "other" commodities. The "Force" to look for the "Critical Minerals" would have been overwhelming. It is now funny that the major asset in the company that was neglected because the market sentiment was lithium and REE is now back in focus. I am glad the focus is now back on Gidji JV. I have mentioned, and you would have heard Allan make this comment many times about the Gidji JV project, "this is the cheapest house on the best street". The Gidji JV ticks many boxes—location, structure, scale, and now with a rising gold market, it is back in fashion. It should never have been taken out of fashion, as the previous exploration results gave no doubt that there exists a prize that is yet to be recovered. The recent results are evidence that the consistency of the exploration success is remarkable. Time and funding are needed to make this either a discovery or a sterilising program. One could not walk away from this project, confirming all the options. Coffee with Samso: The Gidji Story - Miramar Resources Limited (ASX: M2R) - Coffee with Samso - Episode 146 The Miramar Story - Miramar Resources Limited (ASX: M2R) - Episode 146 Rooster Talk: Discovery of the Primary source at Gidji : Miramar Resources Ltd (ASX: M2R) - Rooster Talk 63 A New Gold Camp in the Kalgoorlie Goldfields - Gidji Gold Project - Miramar Resources Ltd (ASX: M2R) Miramar Resources Ltd (ASX: M2R) Exploration Update: Gidji - Glandore - Whaleshark - Rooster Talk To support our independent nature of our work, please head over to our Support Page and give us a helping hand in any of the ways listed. This is a new initiate for the Samso Platform, and it was always the concept of Samso when we started this journey in 2018. Cover photo: Gold bullion 1, Szaaman. Public domain, via Wikimedia Commons (https://commons.wikimedia.org/wiki/File:Gold_bullion_1.jpg) Disclaimer The information or opinions provided herein do not constitute investment advice, an offer or solicitation to subscribe for, purchase or sell the investment product(s) mentioned herein. It does not take into consideration, nor have any regard to your specific investment objectives, financial situation, risk profile, tax position and particular, or unique needs and constraints. Read full Disclaimer. Share to Grow: Your Bonus Samso has just released an eBook: How to Add Value to your Share Portfolio A lesson on geological models sought by mining companies that gives insight and an understanding of which portfolios are better - and potentially more lucrative – investments. Click here to download this eBook. Download eBook If you find this article informative and useful, please help me share the information. I try and write about topics that are interesting and have the potential to be of investment value. It is not easy to find stories that fit those parameters. If you or your organisation see the benefit of what Samso is trying to achieve and have a need to share your journey, please contact me at noel.ong@samso.com.au. About Samso Samso is a trusted platform that equips dedicated investors with up-to-date industry knowledge and insights from top CEOs and thought leaders. By staying informed on business advancements and market trends, investors can enhance their financial decisions through a combination of expert guidance and their own research.

The narrative around critical minerals is no longer just a story of energy transition. It has become a complex intersection of economics, security, diplomacy, and market psychology. At first, it was about rare earths and lithium. What began as a conversation around rare earths and lithium has now extended deeper into the commodity spectrum—copper, gold, iron ore, antimony, and beyond are all being drawn into the geopolitical spotlight. What’s becoming increasingly clear is this: the battleground for the future of energy, technology, and manufacturing supremacy is being fought in the boardrooms of mining companies and in the rocks beneath their feet. And much of that tension will surface at events such as the Critical Minerals Investment Summit 2025, which runs from 22–24 July at the Mercure Perth. From where I sit and have seen over the last 5 years of the "Critical Minerals" narrative, there seems to be a stream of fear and positioning of those that have and a race for positions for those that have not settled. The recent decline in lithium price has deleted the word dominance of lithium from the narrative coming out of Australia. The next commodity that is dominated by Australia that may have the same fate could be iron ore, as Rio Tinto, the iron giant in the Pilbara Iron Ore heaven, recently announced to the world to expect lower grades. The chest-pounding Antimony explorers are currently raising their voices as there is a West vs. China war on that commodity. I think with China dominating that market as well, it would make perfect sense for them to make peace and bring the price back to a sensible market price. Once that happens, that game will be over as well, like the recent Cobalt, Tin, Lithium and REE ride. Let's delve into the whole geopolitical discussion and see if we can simplify all the smoke that is currently doing the rounds on mainstream media. The chapters below will help readers move around this review: 1.0 From Strategic Metal to Strategic Mindset 2.0 Was Geopolitics Always This Influential? 3.0 Gold, Copper, Lithium, Antimony, Iron Ore—How Deep Does It Go? 4.0 Between Headlines and Hard Policy 5.0  Australia’s Role in a Fragmenting Supply Chain 6.0  U.S. Industrial Policy and What It Means for Australian Critical Minerals Projects 7.0  Investment Realities: What Capital Is Willing to Pay For? 8.0  Strategic Partnerships vs. Transactional Deals: Which Way Forward? 9.0 Concluding Comments From Samso 1.0 From Strategic Metal to Strategic Mindset The traditional investor mindset of supply, demand, and commodity pricing is being upended. Whether it’s lithium required for EV batteries, copper for grid-scale electrification, or antimony used in military-grade flame retardants, the driver now is not just utility—it’s control. The U.S. administration—be it under Biden’s cooperative frameworks or Trump’s transactional style—is crystal clear on one thing: China dominates too many steps of the critical minerals value chain. And that’s no longer acceptable in Washington, Brussels, Tokyo, or Seoul. We’ve known about China’s grip on rare earth refining and graphite anodes for years. But we’re now seeing broader categories of minerals being swept into the same conversation—iron ore as a proxy for steel autonomy, gold as a hedge against monetary instability, and copper as the pulse of decarbonisation (Figure 1). Figure 1: News like China banning critical metals to the US is now the norm in mainstream media. (source: Reuters). At the centre of all this? Australia. With geology, political alignment, and operational capacity on its side, Australia is emerging as the most geopolitically strategic resource partner in the Western alliance. 2.0 Was Geopolitics Always This Influential? There’s a risk that all this could be dismissed as short-term noise or election-season rhetoric. But the reality is more layered. Geopolitics has always shaped resource flows—think oil in the Middle East, gas pipelines through Europe, or uranium trade networks. What’s different now is that the conversation has gone mainstream. Clyde Russell of Reuters said it best ahead of the summit: “If the U.S. wants critical minerals without China, it will cost more.” The challenge for Australia isn’t just technical or financial anymore—it’s also diplomatic (Figure 2). Securing funding or offtake agreements from the U.S. Department of Energy or Japan’s JOGMEC is increasingly dependent on policy alignment, ESG compliance, and even the optics of non-China ties. Dr. Vlado Vivoda, CEO & Director of Strategic Minerals Advisory & Research, offered another layer: the shift isn’t just away from China but also from laissez-faire market logic. The U.S. Inflation Reduction Act (IRA) is a blueprint of how industrial policy is now taking precedence over free trade principles. Figure 2: China is single-handedly propelling the price of Antimony. (source: Reuters) In that context, projects in Australia that may have previously struggled to gain traction due to modest scale or early-stage status are now finding a new kind of validation: strategic value. 3.0 Gold, Copper, Lithium, Antimony, Iron Ore—How Deep Does It Go? Figure 3: The mining process of these critical minerals are now changing masters. Who do mines side with now the changing funding landscapes? When I do a search on these commodities, they give me the same kind of generic reasons why they are critical and that there is a shortage of these commodities in terms of mines and resources. The list below is an example of the results. You may ask why gold is included in our list, and that is a great question. Lithium remains front and centre. The U.S. and its allies are scrambling to localise supply chains, from spodumene to hydroxide conversion, bypassing China-dominated processors. Australia’s lithium projects, especially those with downstream ambitions, are getting increasing attention. Copper is quickly becoming a metal of geopolitical importance. Beyond its obvious use in electric vehicles and renewables, copper is critical for rebuilding and upgrading power grids—a national security issue in disguise. Antimony is quietly having a moment. With China and Russia as major producers, Western countries are finding themselves exposed. The metal’s use in military applications and battery technology gives it disproportionate strategic weight relative to its market size. Iron ore is the wildcard. While traditionally seen as a bulk commodity, its central role in China’s industrial complex makes it a potential pressure point. Any serious decoupling between China and Western steelmakers will put Australia in a complicated spot. Gold, often ignored in critical minerals conversations, is not immune. Central banks, especially in non-Western countries, have been increasing their holdings. Gold is the original hedge against geopolitical chaos, and in a world facing growing monetary fragmentation, it is quietly being weaponised. When you look at the list above, the big elephant in the room is to ask if we are talking about critical from a geopolitical reason or from a geological and mining scarcity issue (Figure 3). Commodities such as Tungsten and Antimony have been talked about as being a threat of being critically short in the market for about 15 years. I say that because that is when I was introduced to these two metals. Today, we are still talking about it, but it has been enhanced with China making the ban effective (Figure 1). 4.0 Between Headlines and Hard Policy It’s tempting to view all this as just election theatre, especially with Trump poised for another potential term. But Vivoda is careful to point out that while the tone may shift, the direction remains. Whether the U.S. prefers alliances or arm-twisting, the end goal is the same: reduce dependency on China (Figure 4). Figure 4: Is the critical minerals pricing is a political or market narrative? (source: Reuters) When we look at the "noise' of pricing and the sudden supply crunch of antimony, tungsten, tin, etc., the complexity for investors is that we have to now, in 2025, factor in market demand vs. supply and the political issue. In the past, nations have gone to war (Figure 5) for these kinds of matters, so could we be potentially looking at something like that again? What happens when the warring sides begin to smoke that peace pipe? Are the critical metals suddenly not so critical, or do we believe that the Western world will learn the lesson and pay the price of recreating a "Western" market? Figure 5: As the geopolitical tensions continue to rise, will be look at the draconian thinking of the past? As usual, Australia will be courted either way, but we must be prepared to navigate uncertainty. Industrial funding mechanisms such as DPA Title III, the IRA-linked tax credits, and bilateral trade compacts offer huge opportunities—but only for companies that understand the rules of the new game. The United States–Australia Climate, Critical Minerals, and Clean Energy Transformation Compact might sound like diplomatic theatre, but it signals the direction of travel. Supply chains are being rewired, and Australian companies that are strategically aligned will find more doors open—if they can move fast enough. 5.0  Australia’s Role in a Fragmenting Supply Chain As global powers recalibrate their critical minerals strategies, Australia is becoming central to efforts aimed at diversifying away from China (Figure 6). With abundant resources, stable regulation, and established ESG standards, Australia is increasingly viewed as a reliable anchor in an unstable system. Is it? The Australian issue is the inability to rise above the mounting challenges: faster project approvals, scalable downstream capabilities, and the ability to form enduring trade partnerships that align with shifting geopolitical demands. For Australian players, the task ahead is no longer just about delivering supply—it’s about meeting the world’s rising expectations, on time and on terms that serve national and "partner" interests. Figure 6: World Critical Minerals Dependency Map. 6.0  U.S. Industrial Policy and What It Means for Australian Critical Minerals Projects The Inflation Reduction Act (IRA) is the cornerstone of America’s clean energy and industrial revitalisation strategy. Doing the research and trying to understand all the points is incredibly complex. Some of the key points are listed below. Navigating U.S. funding mechanisms—including tax credits and clean energy incentives—is complex for foreign companies. Eligibility hinges on factors like: Domestic content requirements Strategic alignment with U.S. supply chain goals Avoidance of Chinese-linked ownership or processing Additional policy layers include: Title III of the Defence Production Act (DPA) Department of Energy (DoE) Loan Programs Office Bilateral agreements such as the U.S.–Australia Climate and Clean Energy Transformation Compact The result is a maze of incentives and compliance conditions, requiring deep policy understanding. For Australian companies, the challenge is to align with U.S. priorities without compromising project independence or operational flexibility. In my opinion, all these trade restrictions will always eventually be relaxed with time, or another route for the trade will arise, which ultimately negates the barriers. History has shown that this is the way of the world; otherwise, global trade would not be as efficient as it is now. Investors must wonder if all this required effort is a place that they want to park their hard-earned money. With the recent reduction in tariffs being "negotiated," investors may prefer to just go for a holiday or leave it in some other asset class where there is more certainty. 7.0  Investment Realities: What Capital Is Willing to Pay For? For all the headlines around critical minerals being “strategic,” the investment fundamentals haven’t disappeared. At the end of the day, capital still moves based on risk, return, and timing. There’s no shortage of geopolitical interest, but translating that into real dollars, especially for early-stage projects, remains a challenge. Many assets that tick the right boxes in Washington or Brussels, in Hong Kong or Australia, struggle to attract meaningful funding without long-term offtake agreements or government-backed finance. Sovereign wealth funds, institutional capital, and specialist investors are circling, but their focus is narrow—priority is given to projects that are both politically aligned and commercially credible. As I read more into the whole concept of "Critical Minerals," one needs to understand to whom it is a critical issue. One would then assume that the eager capital that is used to fund the mineral exploration or the mining process must benefit the community that surrounds the end process. The competition for funding is fierce, so the business case for receiving funding would need to be on point. In Australia, there is no real downstream process, and one would think that it should not be our concern. A good example is the case of struggling Australian Mineral Explorers seeking government funding but having limited success. Why would this make sense? Why not spend the funding on commodities that Australia benefits from? Would that not make more sense, from Australia's point of view? In October 2024, Tim Craske was on Coffee with Samso explaining why we may have misunderstood the terminology and the meaning of Critical Minerals. Coffee with Samso - Insights: Critical Metals - The Real Meaning and Path Australia should Play in the Clean Energy Revolution. Capital is ultimately the market maker and the one that decides what sells and what is bought. There is no denying this simple point, and it has been this way for centuries. For developers across lithium, copper, antimony, and even gold, this creates a sharper lens: technical merit alone is no longer enough. The real question is whether Western governments—and their funding mechanisms—are genuinely prepared to absorb the cost of reshoring supply chains. In other words, are they ready to pay the “strategic premium,” or is this still a market that expects security without subsidy? 8.0  Strategic Partnerships vs. Transactional Deals: Which Way Forward? Australia is focused on establishing long-term alliances founded on trust and stability, in contrast to short-term, transactional deals that are often influenced by political cycles. To achieve this, Australia needs to collaborate with key partners, including the United States, the European Union, Japan, and South Korea. However, a significant challenge remains as the market is asking if Australia can preserve its strategic leverage without becoming entangled in one-sided or coercive economic agreements. Is siding with President Trump a good choice of economic policy, or is it time for Australia to be more strategic with its real trading partners, the ASEAN players? The strategic significance of certain minerals necessitates that partnership structures emphasize long-term, mutual benefits rather than mere opportunistic trade. It is not solely about supply. The process is also about fostering a shared vision, ensuring transparency, and aligning with broader economic and security objectives. Furthermore, the nature of these minerals should be reflected in the strategic planning of the partnerships. 9.0 Concluding Comments From Samso The growing intersection of geopolitics and critical minerals is no longer a speculative conversation—it’s the operating environment (Figure 7). What we’re seeing is not a short-term reaction, but a structural reordering of how resources are valued, funded, and supplied globally. Figure 7: The geopolitical impacts for "Critical Minerals". (source: Samso) Australia is in a unique position. We have the geology, the stability, and the diplomatic alignment that many countries are actively seeking. But that advantage is not automatic. It requires intent, speed, and the ability to structure projects that meet new geopolitical and ESG realities. The days of simply finding a high-grade deposit and waiting for the market to respond are fading. Today, investors and policymakers are demanding clarity on processing pathways, offtake alignment, ESG credentials, and geopolitical fit. If these elements aren’t addressed early, projects may miss the funding cycle altogether. For gold, copper, antimony, lithium, and even iron ore, the narrative has shifted from one of production to one of purpose. Why does your project exist, who does it serve, and how does it fit into broader supply resilience? These are now fundamental questions every explorer must answer. Figure 8: Rare Earth Elements have been a big topic for a while but can the "Western" influences re-create the downstream process and maintain the course. (source: Thermo Fisher Scientific) When you start talking about the Rae Earths, there is another level of complexity, as the cost of restabilising the downstream process may be too rich for the "West," so what do you do there? There are paths being created now, but will they be sustained, and will they break down as soon as the Trump factor goes into retirement? It’s encouraging to see forums like the Critical Minerals Investment Summit 2025 bring these issues to the front. These are the conversations that shape investor confidence and industry direction—not just in Australia, but across the global resource landscape. As always, I encourage companies and investors alike to look past the headlines. Understand the long game, track the geopolitical signals, and position wisely. The rocks haven’t changed, but the world around them has and is affecting the way we explore and complete the mining process. Greenbushes Lithium Mine in Western Australia. (source: Alamy) To support our independent nature of our work, please head over to our Support Page and give us a helping hand in any of the ways listed. This is a new initiate for the Samso Platform, and it was always the concept of Samso when we started this journey in 2018. Cover image: 1794 Samuel Dunn Wall Map of the World in Hemispheres - Geographicus - World2-dunn-1794, Thomas Kitchin. Public domain, via Wikimedia Commons (https://commons.wikimedia.org/wiki/File:1794_Samuel_Dunn_Wall_Map_of_the_World_in_Hemispheres_-_Geographicus_-_World2-dunn-1794.jpg). Reproduced map image, shown faded under a navy overlay on the article thumbnail. Disclaimer The information or opinions provided herein do not constitute investment advice, an offer or solicitation to subscribe for, purchase or sell the investment product(s) mentioned herein. It does not take into consideration, nor have any regard to your specific investment objectives, financial situation, risk profile, tax position and particular, or unique needs and constraints. Read full Disclaimer. Share to Grow: Your Bonus Samso has just released an eBook: How to Add Value to your Share Portfolio A lesson on geological models sought by mining companies that gives insight and an understanding of which portfolios are better - and potentially more lucrative – investments. Click here to download this eBook. Download eBook If you find this article informative and useful, please help me share the information. I try and write about topics that are interesting and have the potential to be of investment value. It is not easy to find stories that fit those parameters. If you or your organisation see the benefit of what Samso is trying to achieve and have a need to share your journey, please contact me at noel.ong@samso.com.au. About Samso Samso is a trusted platform that equips dedicated investors with up-to-date industry knowledge and insights from top CEOs and thought leaders. By staying informed on business advancements and market trends, investors can enhance their financial decisions through a combination of expert guidance and their own research.

In a world where major mineral discoveries are increasingly elusive and hidden beneath cover, Geoscience Australia has crafted a powerful lens into the Earth’s potential—mineral systems-based prospectivity mapping. This approach, backed by decades of data and a deep understanding of geology, is turning Australia into a frontier once again, particularly in the hunt for Iron Oxide Copper-Gold (IOCG) deposits. Since 2010, Geoscience Australia has carried out six major regional mineral potential mapping studies targeting IOCG and uranium systems (Figure 1). These studies span key terrains: eastern Yilgarn Craton, Western Australia (A, orogenic Au), northern Queensland (B, IOCG and uranium mineral systems), central-eastern South Australia (C, IOCG and uranium mineral systems), southern Northern Territory (D, IOCG and uranium mineral systems), southern Arunta region (E, IOCG), and Tennant Creek to Mt Isa region (F, IOCG). The base map used in these studies illustrates Australia's geological framework, with sedimentary basins in pale yellow and green, and older outcropping units in darker hues (Skirrow et al., 2019). Figure 1: Regional-scale mineral potential mapping studies undertaken by Geoscience Australia since 2010 (source: Ore Geology Reviews 113 (2019) 103011) The Science Behind the Discovery IOCG deposits are not just about copper and gold—they're about systems. They form through a series of interlocking geological events (Figure 2): Energy to drive these fluids through the crust. Architecture (structure pathways), like faults and shear zones, that act as superhighways for the fluids. Sources of metals and fluids, often magmatic or sedimentary. Ore deposition gradients where physical or chemical gradients cause the minerals to precipitate (Wyborn et al., 1994; McCuaig et al., 2010). This schematic outlines the critical processes required for an IOCG system to form. Figure 2: Presents a schematic of a mineral system showing that ore formation occurs when four critical components—source, energy, pathway, and trap—coincide in both time and space. These components may operate at different geological scales and times, with ore deposition occurring when mass and energy converge and physical or chemical changes trigger precipitation. Mineral potential mapping is a predictive tool that integrates geological knowledge and diverse datasets to highlight areas most likely to host mineral deposits. Rather than relying solely on known occurrences, it uses geophysical, geochemical, and geological indicators to assess where mineral systems could have formed, even in unexplored or covered regions (Figure 3). The mapping workflow developed by Geoscience Australia involves five key steps: (1) developing a mineral systems model; (2) identifying mappable geological proxies for ore-forming processes; (3) selecting and normalising spatial data layers; (4) assigning weightings based on importance, applicability, and confidence; and (5) integrating all components into a final prospectivity map. This structured approach enables consistent, data-rich, and knowledge-driven predictions across vast terrains. Figure 3: Summarises this workflow, showing how knowledge inputs and spatial data are combined through a scoring and rule-based inference framework to produce final prospectivity outputs. This method ensures a robust, transparent process for evaluating mineral potential. (source: Ore Geology Reviews 113 (2019) 103011) From Concept to Greenfields Discovery The method’s value is most apparent when it predicts success where none existed before. Exploration teams using this model have made new copper-gold discoveries in areas previously considered barren. In an age of declining discovery rates, this is no small feat. It underscores the power of data-rich, knowledge-driven exploration at a time when surface clues are no longer sufficient. Perhaps the greatest success lies in the tool’s ability to spotlight greenfields terrains—areas under cover, where the cost of drilling blind is high. With a decision-support framework like this, companies can reduce exploration risk, and governments can better target where to invest in new geoscientific data. To map mineral potential, Geoscience Australia developed an IOCG mineral system model based on the inclusion of all of the criteria listed in the definition (Figure 4). This model helps identify geological environments that are highly favourable for IOCG mineralisation, while also ensuring that important variants of IOCG systems are not overlooked. Figure 4: Presents a multi-scale model of IOCG systems based on the hematite-rich Olympic Dam type. At the lithospheric scale, it illustrates the deep mantle source of metals (S2), fluid and magma pathways (P), and energy sources such as mafic underplates (D). At the regional to deposit scale, it highlights possible host-rock sources (S1), structural pathways (P), heat sources (D), and zones where ore is deposited due to physico-chemical gradients (G). This comprehensive view captures the scale and complexity of IOCG systems. (source: Ore Geology Reviews 113 (2019) 103011) Samso’s Concluding Comments This work by Geoscience Australia is a masterclass in turning theory into action. What Skirrow and his team have developed is not just a predictive model—it's a strategic tool that reshapes how we think about resource discovery. As someone who has walked the terrain of countless mineral provinces, I can tell you that this methodology offers a real path forward for unlocking Australia’s vast covered terranes. The integration of science, data, and mineral systems thinking is exactly what our industry needs. With every overlay and every fuzzy logic equation, this model chips away at the guesswork and opens doors to deposits yet to be discovered. For those in the exploration game, this is a call to look again—and look deeper. References McCuaig, T. C., Beresford, S., & Hronsky, J. M. A. (2010). Translating the mineral systems approach into an effective exploration targeting system. Ore Geology Reviews, 38(3), 128–138. Schofield, A. (2012). A knowledge-driven approach to prospectivity mapping for IOCG deposits: Application to the Gawler Craton, South Australia. Geoscience Australia Record. Skirrow, R. G., Murr, J., Schofield, A., Huston, D. L., van der Wielen, S., Czarnota, K., et al. (2019). Mapping iron oxide Cu-Au (IOCG) mineral potential in Australia using a knowledge-driven mineral systems-based approach. Ore Geology Reviews, 113, 103011. Wyborn, L. A. I., Heinrich, C. A., & Jaques, A. L. (1994). Australian Proterozoic mineral systems: essential ingredients and mappable criteria. In Proceedings of the Australian Institute of Mining and Metallurgy Annual Conference. Mapping iron oxide Cu-Au (IOCG) mineral potential in Australia using a knowledge-driven mineral systems-based approach by Geoscience Australia - Roger G. Skirrow, James Murr, Anthony Schofield, David L. Huston, Simon van der Wielen, Karol Czarnota, Rohan Coghlan, Lindsay M. Highet, Daniel Connolly, Michael Doublier, Jingming Duan To support our independent nature of our work, please head over to our Support Page and give us a helping hand in any of the ways listed. This is a new initiate for the Samso Platform, and it was always the concept of Samso when we started this journey in 2018. Cover photo: Teghut Mine - open pit closeup, Serouj. CC0, via Wikimedia Commons (https://commons.wikimedia.org/wiki/File:Teghut_Mine_-_open_pit_closeup.jpg) Disclaimer The information or opinions provided herein do not constitute investment advice, an offer or solicitation to subscribe for, purchase or sell the investment product(s) mentioned herein. It does not take into consideration, nor have any regard to your specific investment objectives, financial situation, risk profile, tax position and particular, or unique needs and constraints. Read full Disclaimer. Share to Grow: Your Bonus Samso has just released an eBook: How to Add Value to your Share Portfolio A lesson on geological models sought by mining companies that gives insight and an understanding of which portfolios are better - and potentially more lucrative – investments. Click here to download this eBook. Download eBook If you find this article informative and useful, please help me share the information. I try and write about topics that are interesting and have the potential to be of investment value. It is not easy to find stories that fit those parameters. If you or your organisation see the benefit of what Samso is trying to achieve and have a need to share your journey, please contact me at noel.ong@samso.com.au. About Samso Samso is a trusted platform that equips dedicated investors with up-to-date industry knowledge and insights from top CEOs and thought leaders. By staying informed on business advancements and market trends, investors can enhance their financial decisions through a combination of expert guidance and their own research.

Declaration: I am a shareholder of Kaiser Reef Limited, and this review has not been endorsed by the company, nor has it been sponsored by any other party in any form (cash, shares, or options). The information provided in this blog is for informational purposes only and reflects my personal views and analysis. It is not intended to promote the company or create speculation. Readers should conduct their own research and seek professional advice before making any investment decisions. The conversion of Kaiser Reef Limited (ASX:KAU) into a gold producer through one transaction in a top-tier market is highly commendable. This action suggests that the management might have completed the best deal I've witnessed in my thirty years in this field. To add to the commendation, this deal was done at a rising bullish sentiment for gold. This deal with Catalyst Metals Limited (ASX:CYL) holds greater significance than what is currently available for Kaiser Reef. To grasp the dynamics, it's essential to consider both companies and their management aspects. If my thorough analysis is accurate, any investment in Kaiser now, may potentially yield substantial compound interest over the next five years. Reflecting on history, I believe Kaiser Reef is on the brink of achieving greatness, and with a current market capitalisation of just over AUD $41M (after announcing the acquisition), it's particularly appealing for retail investors once you consider all aspects of the transaction. This is likely as affordable as it gets. Let's try to logically outline why I'm so optimistic about this transaction. Conducting your own research (DYOR) is essential, and as experienced investors often say, there are no free lunches in the investment world where we must part with our hard-earned money. For those who want to skip to the parts of the review, please use the list below. 1.0 What Does The Transaction Mean? 2.0 Terms and Funding of the Transaction 3.0 The Henty Asset - The Value Creation. 4.0 Why Is Henty Almost a "No Brainer"? 5.0 Henty - Comments on the Production 6.0 Henty - Are there more ounces? - Exploration Upside 7.0 Concluding comments from Samso. 7.1 The Clues of the Future 7.2 The Perfect Storm 1.0 What Does The Transaction Mean? In my opinion, based on my own experience and understanding of the situations, underlying value of transaction ranks with the rise of Silverlake Resources Limited, which is now Vault Minerals Limited (ASX:VAU) (in 2008 through the consolidation of the Daisy Milano Gold Mine Leases), and Northern Star Resources Limited (ASX:NST) (September 2009), acquiring assets over the decades into a gold mining giant. Where Kaiser Reef differs from Silverlake and Northern Star is that it has completed this transaction at a time when the commodity, gold, is at an all-time high, and to make it even more spectacular, it has done this with gold prices having strong sentiments to go even higher in value (Figure 1). Both Northern Star and Silverlake Resources started their journey at a modest gold price and a gold sentiment that was far from being bullish. I remember Silverlake in 2008, when the gold price was in the USD $700s. Yes, that is seven hundred dollars (USD). Figure 1: Gold Price Chart (14/04/2025). (source: www.kitco.com) 2.0 Terms and Funding of the Transaction Let's look at the terms of the transaction (Figure 2). To me, the ease in with which the capital raise has taken place adds support to my narrative that this is a very soft and manageable transaction. When you look at the state of the market, which is very bullish, one would assume that anything you buy would many times its premium. Figure 2: The Terms of the Transaction for Kaiser Reefs Limited. (source: Kaiser Reef Limited). What is the most striking point of this transaction is that the deal is for an ongoing, profit-making gold mine that is operating as we speak. There are no wait times for cash generation; in fact, this is the best deal I have seen, as all you have to do is find the funds, and you are producing and selling gold bars. On the point of raising money to fund part of the acquisition, it appears that was not a problem either (Figure 3). Reading through the news release that outlined the whole transaction, I am sure that management of Kaiser Reef would have thought that this transaction was a no-brainer. Figure 3: The Terms of the Fundraising for Kaiser Reefs Limited. (source: Kaiser Reef Limited). The lack of complexity and a lack of significant hurdles that is usually common in a deal of this nature, tell me that is this is a very friendly sale. In other words, there is definitely a great amount of "working together" in the way the transaction has transpired. I am not concluding any deceit or "non-compliant" components; I am merely highlighting that the deal has all the essence of wanting this deal to happen as a win-win situation from both sides. Peace is not the absence of conflict, but the ability to cope with it -- Mahatma Gandhi Trust is the glue that holds everything together. It creates the environment in which all of the other elements win-win stewardship agreements, self-directing individuals and teams, aligned structures and systems, and accountability can flourish. -- Stephen Covey For those people that have been in business a long time and have had the best deals, I am sure they will understand the underlying value of a win-win situation. 3.0 The Henty Asset - The Value Creation Figure 4: Kaiser Reef Limited project locations in Australia. (source: Kaiser Reef Limited) The Henty Gold operation is situated 23 kilometers from Queenstown in north-western Tasmania (Figure 4), featuring an underground mine and a conventional CIL processing plant with a nameplate capacity of 300,000 tpa (Figure 5). Figure 5: The Henty 300ktpa CIL Plant and Administration Complex. (source: Catalyst Metals Limited) Henty is a high-grade underground gold deposit with well-established infrastructure and significant exploration potential in the mineral-rich Mt. Read Volcanic Belt, which has historically yielded over 8 million ounces of gold. Mining began in 1996, and the mine has since produced 1.4 million ounces of gold at an average mined grade of 8.9 g/t. Figure 6: The Henty acquisition terms. (source: Kaiser Reef Limited) In a climate that would have given Catalyst Metals all the leverage, this transaction (Figure 6) is all about giving Catalyst an exit to create value for Henty while still having a significant holding in Kaiser Reef. The other aspects of the transaction for Catalyst is the access to the production solution for their Victorian assets, although, I still say that the real value is the ability to have a solution for Henty to exudes its real potential in Kaiser Reef. For Kaiser, the obvious is that this will give the company instant value allowing the company to become a gold miner overnight. More importantly, I also see that this transaction will give Kaiser a cash-rich partner who wants this transaction to work well. The sale of Henty is not one that is about disposing of an unwanted or underperforming asset. Kaiser Reef is getting a very good deal from a supportive seller, who will become a supportive shareholder in the future. Looking at the asset from afar with little mining knowledge, this is a good asset with lots of potential. As I have mentioned, there have been many assets that have appeared to have limited upside, but over time, these assets have kept giving value to shareholders. Figure 7: The historical journey for the Henty Gold Mine. (source: Kaiser Reef Limited) The previous owners (Figure 7) have all been Tier 1, and they have all looked at Henty as an asset. The timing for Kaiser Reef could be perfect, as the rising gold price could be the catalyst that is required to iron out the issues that may have plagued the previous management before getting into a more economical pathway. The rising gold price is the space that incoming owners require to iron out any potential issues that would have been a deal breaker in a lower gold price environment. The divestment allows Catalyst to create value in the asset that otherwise would have been totally ignored by the market if it had sat within the company. As I have mentioned above, the rising gold price has allowed them to divest an unappreciated value to another entity that now has the space to fix any hurdles and create the value-adding that otherwise would have been restrictive in a less buoyant pricing climate. 4.0 Why Is Henty Almost a "No-Brainer"? Let's have a look at the good points of the Henty Gold Mine, as some very notable points make me feel that Kaiser got a very good deal. Over my three decades in this industry, I have come across and learned of several similar projects, and the common denominator has always been management and the potential upgrading of the resource. Figure 8: The good points list of the Henty Gold Mine (source: Kaiser Reef Limited). As I look at Figure 8 and explore the list of good points, what reminds me of previous projects, such as Daisy Milano (Silverlake Resources), is the resource potential of the Henty operations. I am inferring from the fact that Kaiser Reef is the recipient of the investment by Catalyst Metals in the upgrading of the resource endowment since Catalyst's acquisition in 2020. A 34% increase in the number is the clear upside for Kaiser to upgrade the resource to a reserve status (Figure 9). Figure 9: The key beneficial points of the Henty operations. (source: Kaiser Reef Limited) Another notable point is that the operations have somewhat stabilised. The flattening of the AISC (All In Sustaining Cost) is promising, and the market prediction of a continuing rising gold price must be the icing on the cake. It seems that the list of positive indicators is allowing the ducks to get in line. Whenever we look at operations such as Henty, the key asset can sometimes be not the asset but the management that understands the requirements and the potential to reduce cost or optimise operations. To this point, I feel that one of the major components of this deal could be the man who will drive operations, Brad Valiukas (Figure 10). Brad comes from the very successful operational team of Northern Star Resources Limited (ASX: NST), and I have been told that he was one of the key members of that team that led the success of the Pogo operations in Alaska. Figure 10: The biography of Brad Valiukas. (source: Kaiser Reef Limited) For those who have not had the pleasure of having conversations with Brad, I can say that my thoughts are consistent with his credentials. I do think that a person like Brad will be instrumental in the success of operations such as Henty. This is not a guaranteed endorsement, but I can comfortably say, from our previous Coffee with Samso conversations, the success of projects such as Henty is usually driven by a special kind of breed of mining-oriented people. Brad comes across as a person who is high on the technical side of the ledger, and the successful type of mining people that I have come across in my line of work all seem to be of the same type as Brad. 5.0 Henty - Comments on the Production As we look into the Henty acquisition, another positive for a non-mining commentator like me will be the optimisation of the mining operations. It goes without saying that Kaiser would be telling the market it will optimise the current operations, and it would not be wrong to scrutinise Kaiser's projection. Over the years, one of the common themes when an acquisition takes place is either that the new guy comes in and imposes their will, and the result is negative, or it works out. I always like to think positively, so I look at every acquisition in the following way: The new guy comes in and believes in the project and gives it love and tenderness, while the previous owner treated the asset as a burden and the unfavoured child. When one looks at the process in this manner, the extra love and tenderness always create a new environment, and in every case, this produces a better result. I saw this at the Silverlake Resource's Daisy Milano, the Spartan Resources regeneration of the Dalgaranga Gold project, and recently, the acquisition of the Telfer project by Greatland Gold Plc. Figure 11: The Henty Production Optimisation Proposal. (source Kaiser Reef Limited) Now, if we look at what Kaiser is promoting as its production optimisation, you will want to consider the previous paragraphs as to whether the increase in mining and production productivity is achievable (Figure 11). Figure 12: The Henty Cost Optimisation Proposal. (source: Kaiser Reef Limited) I think that investors should look at both Figure 11 and Figure 12 and decide if this is achievable for Kaiser Reef. This will be the most important consideration that one can make as a retail investor. If the thinking is that both of these proposals are not achievable, then what is the upside of this transaction? As a retail investor, you would not be wrong in writing this transaction off as one with not too much future. However, if you do think that this is achievable, then this is where the value-adding could be a happy place for investors. 6.0 Henty - Are there more ounces? - Exploration Upside For me, as an investor with geological experience, this is where I feel I have an advantage in "accessing" the upside of Henty. I make this comment with some reservations, as this so-called advantage can sometimes be a handicap in decision-making. However, in the case of Henty, I feel that the hidden value is in the future resources. As we have seen in Figure 9, there is a flattening of the AISC, and the messaging from Kaiser Reef is that production is being "sorted out." Readers have to realise that this is an ongoing concern that Kaiser has purchased. There is no waiting time for "cranking up" production. Once the regulatory boxes have been ticked after the shareholder meeting, Kaiser is a gold miner, and Kaiser Reef will be making money. Currently, there are over 5 years of Reserve and a Resource (Measured and Indicated) representing over 10 years of life. Looking at the annual production of 25,000 ounces, an investor can be excused for thinking that there is not much excitement for the future. For me, I am very comfortable knowing that the experienced management of Kaiser would have been all over the topic of future resources in the early part of the Due Diligence process (Figure 13 and Figure 14). Figure 13: Henty exploration upside. (source: Kaiser Reef Limited). As I have mentioned several times, the Henty information reminds me a lot of the Daisy Milano project with Silverlake Resources Limited (now Vault Minerals Limited (ASX: VAU). I am sure there are many others with similar stories, but I think I have made this point enough times. I don't think the Kaiser management would have gone through with this transaction if there was no potential upside in the exploration ounces. Figure 14: Regional exploration potential in the Henty project. (source: Kaiser Reef Limited). The regional exploration potential is good, but I think that this is of lesser importance than giving the immediate mine life another 5 to 10 years from the near-mine exploration (Figure 13). I consider the upgrading of the existing resources as critical as well (Figure 9). 7.0 Concluding comments from Samso I recently saw an article that described the acquisition of the Telfer gold mine as the deal of the decade, which, for the followers of Samso, you will know that we feel the same (check out the Coffee with Samso here: A Gold Mining Story - Clasping Victory from the Jaws of Defeat). I agree with the narrative that this was a great deal, and now that I know that Andrew Forrest backed the deal, it all makes sense. Great job for management to make the deal happen. The acquisition by Kaiser Reef Limited of the Henty Gold Mine, on a significantly smaller scale, is one that I see as the seed for the next Northern Star Resources, although the birth of Northern Star came from even more humble beginnings. The Henty Mine transaction will undoubtedly give Kaiser Reef instant cash flow and instant valuation. There is no question about the instant value adding, but what I see is the future potential of the company. Figure 15 below gives you a good summary of what we have discussed in the blog, but what is missing is the future potential that the current management and the potential partners will give Kaiser Reef and what Brad Valiukas has in mind. Figure 15: Henty acquisition overview for the Henty project. (source: Kaiser Reef Limited). I have known Brad for a while now, and my many conversations with him over time gives me the impression that he is a person perfect for shareholders, who want a company to grow in value over time with real projects. My impression of Brad is that he wants to create a gold-producing company with not much fanfare. There is no smoke and mirrors with Brad, and I find that he is very uncomfortable with overelaborating on the potential unless there are facts to back it up. Our Coffee with Samso conversations and our pre- and post-recording conversations make me very comfortable in making this assumption. 7.1 The Clues of the Future The management of Catalyst Metals Limited, led by James Champion de Crespigny as the Managing Director and CEO, strikes me as a conservative and calculative team. The acquisition of the Plutonic Gold Mine and the steering of the company to focus on making the old mine region work gives me the impression that they are serious. To believe that the Plutonic gold region is still fertile and has lots of upside means there has been some serious work done and then to convince the money to back it up shows me that this is a strong group. The reason that the Henty Gold Mine was being divested was to find a home where the value could be appreciated. One has to remember that this asset was still making money, and management would have realised that the future gold price was rising. If they did not have this thinking, why would they have taken the position at Plutonic? In Catalyst Metals, Henty was being overshadowed and underappreciated by shareholders and potential investors. The divestment had to happen, but it would only have been made possible if there was the appropriate vehicle (ASX company) and the appropriate leader, someone who had the skill set and, most importantly, someone who would be a trusted partner. 7.2 The Perfect Storm Brad and Kaiser Reef is the perfect solution, and my comments in the earlier parts of the blog have been written to set up these concluding comments. This transaction is so smooth and so win-win that the intent had to be aligned. You have the right jockey who has the credentials and the availability, and you have the horse that has the right pedigree, the Arabians who are renowned for their stamina and endurance, to run the mile race. The gold mining journey is a long race, and Kaiser Reef has the corporate structure to allow the transaction to fit. The departure of Brad from Aurumin Limited is clearly a big loss for Aurumin and a fantastic win for Kaiser Reef shareholders. When and how the deal was created or concluded is anyone's guess, but to me, Kaiser Reef is the beginning of the next multi-gold asset company. As I have mentioned, my conversations with Brad tell me that his ambitions are not a one-mine company but one that has some similarities to the larger gold mining houses, such as the likes of Northern Star, Newmont, Barrick Gold, Zijin Mining Group, and Shandong Zhaojin Mining Group. Samso commenced writing this blog prior to the 14th of April 2025 (see the date in Figure 1), and since then, there have been a few notations on the upside of Kaiser Reef, which supports my review. I do admit that it is an overstatement on our part to think that Samso has the monopoly on the upside of the company. However, I will say that Samso has the word on why we think the upside is presented, and it is simpler to read than the sophisticated Research Notes from big brokers. I don't know what the total value of Henty will be, but as I have mentioned, projects such as Paulsen, Daisy Milano, the Dalgaranga region, the De Grey Pilbara Gold province, and the likes of the Golden Mile have kept giving up ounces for decades. I feel that it is sufficient to say that the present value of Kaiser will surely be a distant memory when all the dust settles from the shareholder approval in the coming month of May 2025. Many great gold companies have been created with similar assets mentioned and moved on to bigger and better pastures. I think Kaiser Reef Limited is another one, and Samso readers should DYOR with intent. To support our independent nature of our work, please head over to our Support Page and give us a helping hand in any of the ways listed. This is a new initiate for the Samso Platform, and it was always the concept of Samso when we started this journey in 2018. Cover photo: Gold ore (GeoDIL number - 914), Darla Sondrol. CC0, via Wikimedia Commons (https://commons.wikimedia.org/wiki/File:Gold_ore_(GeoDIL_number_-_914).jpg). Reproduced photograph, shown faded under a navy overlay on the article thumbnail. Disclaimer The information or opinions provided herein do not constitute investment advice, an offer or solicitation to subscribe for, purchase or sell the investment product(s) mentioned herein. It does not take into consideration, nor have any regard to your specific investment objectives, financial situation, risk profile, tax position and particular, or unique needs and constraints. Read full Disclaimer. Share to Grow: Your Bonus Samso has just released an eBook: How to Add Value to your Share Portfolio A lesson on geological models sought by mining companies that gives insight and an understanding of which portfolios are better - and potentially more lucrative – investments. Click here to download this eBook. Download eBook If you find this article informative and useful, please help me share the information. I try and write about topics that are interesting and have the potential to be of investment value. It is not easy to find stories that fit those parameters. If you or your organisation see the benefit of what Samso is trying to achieve and have a need to share your journey, please contact me at noel.ong@samso.com.au. About Samso Samso is a trusted platform that equips dedicated investors with up-to-date industry knowledge and insights from top CEOs and thought leaders. By staying informed on business advancements and market trends, investors can enhance their financial decisions through a combination of expert guidance and their own research.

Coffee with Samso Episode 202 brings retail investors into an ASX company that may have the potential to become a multi-bagger investment. The LCL Resource Limited (ASX:LCL) story is one that will resonate with many retail small cap investors. A low market capitalisation of AUD $10M and an inferred gold resource of 831,000 ounces in a booming gold market where drilling results are being rewarded. LCL is not a stranger to the Samso platform, with "Los Cerros Limited (ASX: LCL) - A High-Grade Gold Porphyry Story in Colombia" published on 29th October 2021 and a Samso Insight written and published on 15th February 2022 entitled "Good Geology Never Disappoints - Los Cerros Limited (ASX: LCL) Colombian Style." The story changed to a Papua New Guinea focus recently, and on 25th November 2022, LCl released "Company acquires multiple PNG copper, nickel, gold targets" which was the entry into Papua New Guinea. Management Change Management and Board changes (Board Changes) within the company will bring much needed youth and energy into the LCL Resources, which, in my opinion, is why I am having a conversation on Coffee with Samso with Christopher Van Wijk, the Executive Chair of the company. LCL was in a transaction to sell the Columbian assets, but as I have realised, that resolution was voted down by shareholders. Whether this decision in hindsight turns out to be the correct decision will be known soon. Could it be sold to a higher bidder as the gold sentiment rises, will be something to ponder about at that time. What is more interesting for me is the current direction for the company with new management. The Project The Kusi project is a good start for the company with the inferred resource of 831,000 ounces of gold. The future of the project sounds like there are a lot of positives. Papua New Guinea is a haven for projects that are company makers. There are multi-million ounces of gold in the region that will be nectar to honey for LCL Resources. Coffee with Samso This is one of those conversations where I learnt a lot about my guest and the company story. Christopher Van Wijk gave me the impression that he has come into LCL with a mission to take this AUD $10M market cap to greater heights. His energy and the, as a matter of fact, tone of discussion give me confidence they have the right jockey. The next question is what the horse is like, and the rest of the team is able to do with the current project. As a matter of funding, I think that the fact that there are high-net-worth individuals backing this vehicle is a very good addition to the story. Chapters: 00:00 Start 00:08 Introduction 03:26 Who is Chris van Wijk? 04:18 Updates on the Columbian Project 06:18 The Kusi Project 07:39 Any jurisdiction issues? 09:25 Confidence in gold project 11:50 What can investors look forward to? 13:40 Discussion on funding 17:05 Takeaway 17:35 What can investors look forward to in terms of exploration activities? 20:11 Conclusion PODCAST About Christopher Van Wijk Chris is a seasoned geologist with expertise in project evaluation and generation. He possesses extensive experience in base metal and gold exploration across Africa, Europe, the Americas, and Australia. Chris has also managed joint ventures and evaluated projects for leading mining companies such as BHP, IAMGOLD, First Quantum Minerals, and Fortescue Metals Group. He holds a Master of Science in Ore Deposit Geology from the University of Western Australia and is a member of the AUSIMM. About LCL Resources Limited LCL, incorporated in Australia, is an ASX listed exploration and mining company. The Company holds ~3890 km² of exploration titles in 5 regions of Papua New Guinea prospective for copper, gold and nickel. The Company also holds a dominant position within the Quinchia region of the Mid-Cauca Gold Belt of Colombia. The Company is actively exploring in PNG while the 100% owned, 10,500 ha Quinchia Gold Project (2.6Moz @ 1g/t) in Colombia progresses through early-stage feasibility related studies. To support our independent nature of our work, please head over to our Support Page and give us a helping hand in any of the ways listed. This is a new initiate for the Samso Platform, and it was always the concept of Samso when we started this journey in 2018. Disclaimer The information or opinions provided herein do not constitute investment advice, an offer or solicitation to subscribe for, purchase or sell the investment product(s) mentioned herein. It does not take into consideration, nor have any regard to your specific investment objectives, financial situation, risk profile, tax position and particular, or unique needs and constraints. Read full Disclaimer. Share to Grow: Your Bonus Samso has just released an eBook: How to Add Value to your Share Portfolio A lesson on geological models sought by mining companies that gives insight and an understanding of which portfolios are better - and potentially more lucrative – investments. Click here to download this eBook. If you find this article informative and useful, please help me share the information. I try and write about topics that are interesting and have the potential to be of investment value. It is not easy to find stories that fit those parameters. If you or your organisation see the benefit of what Samso is trying to achieve and have a need to share your journey, please contact me on noel.ong@samso.com.au. About Samso Samso is a trusted platform that equips dedicated investors with up-to-date industry knowledge and insights from top CEOs and thought leaders. By staying informed on business advancements and market trends, investors can enhance their financial decisions through a combination of expert guidance and their own research.

It is good to see that E79 Gold Mines Limited (ASX: E79) has identified several compelling new drill targets at its Laverton South Project. The company has completed a comprehensive regional review and reinterpretation of large-scale geophysical datasets, inspired partly by the recent Lighthorse discovery by neighbour KalGold (ASX: KAL). Announcement: Compelling New Gold Targets Identified at Laverton South Executive Perspective E79’s CEO, Ned Summerhayes, highlighted the strategic timing of this re-evaluation: “This work has generated a number of compelling geophysical targets from both magnetics and gravity, adding to the pipeline of exploration opportunities in this region.” Both Target 1 & Target 2 are scheduled for immediate drilling between May and June 2025, and full assays are also pending from E79’s recently completed 82-hole, 5,871m air-core drilling program west of Lighthorse (Figure 1). Among the high-priority targets: Target 1 sits 3km south of KalGold’s Kirgella Gift resource. It is located in a structurally complex zone, marked by demagnetisation and a northwest-trending fault from reprocessed gravity and magnetic datasets. Target 2 lies in the north of the Lake Yindana tenements and is interpreted as a domal structure, geologically analogous to the nearby Duke deposit in Ramelius Resources’ (ASX: RMS) Rebecca Gold Project. Figure 1. Map of reprocessed and regional magnetics highlighting high-priority drill targets. (source: E79 ASX Announcement 15 May 2025) E79 Gold Mines Laverton South: A Gold Belt with Serious Pedigree The Laverton South Project covers 272km² within the Laverton Tectonic Zone (LTZ) — one of the richest Archean gold belts globally (Figure 2). The LTZ has yielded over 30 million ounces of gold, including: Granny Smith – 5.8Moz Sunrise Dam – 10.3Moz Wallaby – 11.8Moz Figure 2: Image adapted from OzAurum ASX announcement 29 November 2024 demonstrating the proximity of E79 Tenure to Heysen’s Find. (source: E79 ASX Announcement 15 May 2025) Recent developments at Heysen’s Find, just 250m north of E79’s tenements, are also drawing interest. Neighbour OzAurum Resources (ASX: OZM) announced surface rock chip samples returning up to 16.23g/t Au, from historic workings (Figure 2). These lie on a regional structure believed to extend into E79’s ground. E79 previously intersected 12m @ 1.12g/t Au (hole 23LRAC163) along this trend, enhancing confidence in the untapped gold potential. Additional fieldwork and air-core drilling are being planned to follow up on these results (Figure 3). Figure 3. Map of the Laverton South Gold Project. (source: E79 ASX Announcement 15 May 2025) E79 Gold’s projects include tenements in Western Australia’s Laverton Tectonic Zone and Murchison Goldfields—regions with over 30 million ounces of gold within the Yilgarn Craton (Figure 4). The Murchison Project is under a joint venture with Scorpion Minerals (ASX: SCN), allowing E79 to focus on its Laverton South exploration. Additionally, the company holds ~1,838km² of highly prospective ground in the Northern Territory’s McArthur Basin, known for its zinc-lead potential and prospectivity for copper, gold, bismuth, and diamonds. Figure 4: Map of E79 Gold’s exploration projects (source: E79 ASX Announcement 15 May 2025) Samso’s Concluding Comments I have always said that the mineral exploration game is a marathon, and it is good to see that E79 Gold is playing the long game with sharp focus on near-term execution. The Laverton South region is not new to gold—it’s a proven district with geological hallmarks that have consistently delivered million-ounce deposits (Figure 4). What’s exciting now is how E79 is interpreting the old data through a new lens, applying modern geophysics to target zones the old timers may have overlooked. The re-interpretation of historical data is not a new phenomenon. What is a phenomenon is the lack of importance that is paid to doing that, and to top it all off, is the lack of attention to do it properly and to treat the datasets with extreme caution. In the "old days", things were done differently, and in some ways, it was done with less technology and less emphasis on the methods that have been proven to work in recent times. Then there are considerations such as whether the collection was done by cowboys or not, so the skill is in understanding the datasets and the methods by which it was collected. In my opinion, irrespective of the way historical data was collected and interpreted, the point is that the skill now is to do it with diligence and importance, otherwise, it will be a case of "Rubbish In and "Rubbish Out" For E79, it probably appears that Targets 1 and 2 are probably not just shots in the dark, as I do have a lot of faith in management. The target looks like they do represent structurally sound zones that are supported by geophysical interpretations, and are adjacent to known mineralisation. We are told that there are pending assays from the recent air-core programs, so the news flow could build rapidly. As always, “money in the ground” is E79’s motto. The next few months may show just how well that principle plays out in the Laverton Tectonic Zone. Happy Investing and remember, always DYOR. To support our independent nature of our work, please head over to our Support Page and give us a helping hand in any of the ways listed. This is a new initiate for the Samso Platform, and it was always the concept of Samso when we started this journey in 2018. Cover photo: Gold bullion bars, Stevebidmead. CC0, via Wikimedia Commons (https://commons.wikimedia.org/wiki/File:Gold_bullion_bars.jpg) Disclaimer The information or opinions provided herein do not constitute investment advice, an offer or solicitation to subscribe for, purchase or sell the investment product(s) mentioned herein. It does not take into consideration, nor have any regard to your specific investment objectives, financial situation, risk profile, tax position and particular, or unique needs and constraints. Read full Disclaimer. Share to Grow: Your Bonus Samso has just released an eBook: How to Add Value to your Share Portfolio A lesson on geological models sought by mining companies that gives insight and an understanding of which portfolios are better - and potentially more lucrative – investments. Click here to download this eBook. Download eBook If you find this article informative and useful, please help me share the information. I try and write about topics that are interesting and have the potential to be of investment value. It is not easy to find stories that fit those parameters. If you or your organisation see the benefit of what Samso is trying to achieve and have a need to share your journey, please contact me at noel.ong@samso.com.au. About Samso Samso is a trusted platform that equips dedicated investors with up-to-date industry knowledge and insights from top CEOs and thought leaders. By staying informed on business advancements and market trends, investors can enhance their financial decisions through a combination of expert guidance and their own research.

This Samso Insight argues that the current market narrative around a major iron ore price decline, driven by the start-up of the Simandou Iron Ore Project in Guinea, may be overstated. While Simandou is a significant high-grade development, its forecast production needs to be considered against the scale of global iron ore supply and the long history of demand growth tied to steelmaking. The article places this discussion in historical context by tracing iron ore consumption through crude steel production since the 1960s, showing that the iron ore story has always been shaped by industrial growth, infrastructure build-out, and the ability of major producers to deliver reliable, scalable supply chains. The key conclusion is that iron ore should not be viewed simply as a commodity facing oversupply, but as a sector entering a new stage of differentiation. The article highlights that the future of iron ore will increasingly depend on product quality, logistics, and suitability for cleaner steelmaking pathways. In that sense, the real investment shift may not be about whether Simandou adds more tonnes to the market, but whether producers can supply the higher-grade feedstocks needed for Direct Reduction Iron and lower-emission steel production. The concluding view is that the iron ore market is in transition rather than decline. Global steel output remains near historically high levels, demand may shift geographically rather than disappear, and the rise of decarbonisation is creating a new premium segment for magnetite projects capable of producing Direct Reduction-grade concentrate and pellets. In supporting the narrative of a transition to cleaner DIR pellets, China is now deploying commercial DRI facilities. For investors, this means the more important story may not be short-term fear around Simandou, but identifying which companies and ore bodies are best positioned for the next phase of the iron ore business. To help readers navigate through the Samso Insight, a content list is provided below. Content 1.0 Introduction – Are Iron Ore Investments A Sunset Industry or Are We Being Fed The Red Herring. 2.0 Global Consumption of Iron Ore 3.0 Decade-by-Decade: What Drove the Iron Ore Appetite? 1960s — The export era switches on 1970s — Growth continues, then energy shocks bite 1980s — Mature economies plateau; Brazil’s next chapter ramps 1990s — A long pause before the surge 2000s — The super-cycle: steel becomes a global volume game 2010s — China dominates; the system industrialises further 2020s — Plateau signals + regional shift 4.0 Timeline: Consumption Milestones + When Major Producers Stepped Into The Iron Ore Game. 5.0 The “Major Producer Involvement” Point That Often Gets Missed 6.0 The Top 10 Global Iron Ore Projects 6.01 Rio Tinto – Pilbara iron ore system (Australia) 6.02 BHP – Western Australia Iron Ore (WAIO) 6.03 Vale – Carajás Northern System (Brazil, incl. S11D) 6.04 Fortescue – Pilbara iron ore operations (Australia) 6.05 Simandou iron ore project (Guinea) (projected) 6.06 Roy Hill (Australia) 6.07 NMDC – Bailadila iron ore complex (India) 6.08 Kumba Iron Ore – Sishen & Kolomela (South Africa) Sishen Mine – Northern Cape Kolomela Mine – Northern Cape Production & Strategic Importance Geological Context 6.09 LKAB – Kiruna & Malmberget (Sweden) 6.10 IOC – Iron Ore Company of Canada (Canada) 7.0 The New Generation of the Iron Ore Business -Direct Reduction Pellets — The Race Toward Green Steel Starts at the Ore Body China Making DRI Happen 7.01 What Are Direct Reduction (DR) Pellets? 7.01.1 Key Characteristics of DR Pellets: 7.02 How Are DR Pellets Produced? 7.02.1 Step-by-Step Process: 7.03 Why DR Pellets Matter 7.03.01 Decarbonisation of Steel 7.03.02 EAF Growth 7.03.03 Premium Pricing 7.04 Not All Magnetite Deposits Can Produce DR Pellets 7.04.01 Why? 7.04.02 Ore body geology determines pellet quality. 7.04.03 Why This Sector Is Emerging 8.0 Global Companies Working on DR Pellets 8.01 Vale S.A. - Brazil 8.02 LKAB - Sweden 8.03 ArcelorMittal (AMMC Canada) - Canada 8.04 Cleveland-Cliffs Inc. - US 8.05 Fortescue Limited - Australia 9.0 Small Iron Ore Companies Targeting the Direct Reduction Pellet Market 9.01 Tacora Resources – Magnetite DR Pellet Producer 9.02 Grange Resources – Magnetite Concentrate for DR Pellets 9.03 Kamistiatusset (Kami) Iron Ore Project – DR Pellet Feed Concept 9.04 Magnetite Mines – DR Pellet Feed From Razorback 9.05 Champion Iron – Premium DR Pellet Feed Supplier 9.06 Iron Bear Limited – Iron Bear Iron Ore Mine - Direct Reduction Strategy 10.0 Strategic Observations — The Samso View 11.0 Final Thoughts 12.0 Samso Concluding Comments 1.0 Introduction – Are Iron Ore Investments A Sunset Industry or Are We Being Fed The Red Herring. Investors in the iron ore sector are currently being told to brace for a softening in global iron ore pricing as the giant Simandou Iron Ore mine ships its first shipment of high grade ore. The street talk is that the imminent 120 million tonnes per annum production coming out of Guinea is going to drive iron ore pricing to the sub USD $80 to $90 per tonne. Iron Ore Rocks and Mining Operations in Australia Market analysts have largely accepted this situation, as the dominant conversation centers on the influx or "glut" of ore "flooding" the market. To me, this is reminiscent of past experts who predicted the decline of oil and gas, the continuous rise of lithium and cobalt, and the fall of gold in 1999 when its price dropped from USD $428 to below USD $240. I recall experts at that time claiming that gold would just become another commodity. Figure 1: Historical Gold Price Chart. (source: Macrotrends.net) For those readers who remember that moment in 1999, you would have thought that there must be some truth in those headlines, but as you can see in Figure 1, that was a mere bump in the road to the current gold price in February 2026. Check this site out, it has a good summary of the gold price movement for the last several decades: Best Brokers I remember in 2018, gold price was about to fall below USD $1000 and there was also a series of conversations of the oncoming dark clouds of a depressing gold price. Again, that was just another bump in the road. So is this current discussion with the iron ore price another bump in the road? Are we going to see a new era of a lesser iron ore pricing? 2.0 Global Consumption of Iron Ore Iron Ore Consumption Since the 1960s — and When the Giants Stepped In When discussing "iron ore demand," people typically refer to steel demand. Iron ore is the essential feedstock for primary steelmaking, and nearly all iron ore (around 98%) is used for steel production. For a clear and consistent timeline from the 1960s onward, the most dependable long-term indicator is world crude steel production, which serves as a strong proxy for iron ore consumption trends. What follows is a Samso-style overview of the past ~65 years: how the world's appetite expanded, why it evolved over time, and how the major producers (along with the modern export system) developed capacity to meet this demand. I discovered an excellent chart by Own Analytics (Figure 2) that I believe will complement the details described below. Owen Analytics has illustrated the volatility of iron ore pricing over the decades and how various events have influenced pricing. Figure 2: The Owen Analytics chart showing the share prices of the big three iron ore miners/exporters – BHP, RIO and Fortescue (FMG) and that of iron ore. Their share prices have been scaled in order to show them on the one chart. (source: Owen Analytics) In this Samso Insight, the key events influencing iron ore prices highlight why investors should carefully consider the current state of the iron ore market. While the common belief suggests a slowdown in pricing, I believe there are strong reasons to think the impact of Simandou might be exaggerated. Let's explore the Samso Insight to determine if the global trend of selling in anticipation of lower iron ore prices is actually a strategic move by the market to encourage others to sell while they themselves are buying for long-term positions. Consider this: in 2024-2025, the average global annual production of iron ore was approximately 2,490 MT, and in the future, Simandou is expected to reach a peak of about 120 MT annually. If they were to boost their production to 120 MT per year today, it would only represent about 4-5% of global production (a rough estimate). Figure 3: China Steel Output vs. Steel product exports. (source: Reuters) The speed at which Simandou reaches its maximum production is a significant factor. Although reaching the target of 120 MT per annum is an objective, any delays or operational disruptions that hinder achieving this level will lend more credibility to my views on Simandou's impact on global iron ore production. Assuming that consumption will increase over time and that the Chinese economy (Figure 3) will eventually resume its growth towards a forward-moving GDP, any new production will most likely simply be absorbed. Narratives forget that the whole world is still progressing and the consumption is always going to be increasing and deleption of ore is also always going to be increasing. For me, this is a very simplistic explanation of why I believe that the output from Simandou will naturally be consumed and not be a real significant hurdle for the iron ore price. Depletion from existing mines, which is a strong candidate for a decrease in future supply, will definitely contribute negatively to the global production versus consumption balance. My thoughts: the price of iron ore is unlikely to be depressed; if anything, it will remain at a sustainable level, with some volatility, and has a good chance of rising in the medium term, likely after the Chinese New Year period. Before we convince each other, let's look through some market facts that the internet cans provide for us. The Consumption Story (1960s → Today), Told Through Steel World crude steel production (million tonnes): Figure 4 Figure 4: Work Steel production since 1960. 1960: 347 MT -1970: 595 MT - 1980: 717 MT - 1990: 770 MT - 2000: 850 MT - 2005: 1,148 MT - 2010: 1,435 MT - 2015: 1,626 MT - 2020: 1,883 MT - 2024: 1,885 MT. The tonnage are an approximation from a search on google. Looking at Figure 2, you can see the narrative illustratively but it's a good addition to the visualisation if you consider the details listed below: 1960–1970: rapid industrial build-out (post-war rebuild + manufacturing expansion). 1970–1990: slows and flattens (oil shocks, recessions, and mature-economy saturation). 2000–2020: the modern super-cycle (China-led urbanisation and infrastructure build). 2020–2024: high plateau (still huge volumes, but no longer the same growth engine). 3.0 Decade-by-Decade: What Drove the Iron Ore Appetite? Figure 4 is a good chart to follow as you go through this section. 3.01 1960s — The export era switches on This decade is the “start gun” for the modern seaborne iron ore trade, especially for Australia. In 1960, Australia partially lifted an iron ore export ban that had been in place since 1938—one of those policy pivots that looks obvious in hindsight. On the consumption side, global crude steel output moved from 347 Mt (1960) to 456 Mt (1965), reflecting accelerating industrial demand. 3.02 1970s — Growth continues, then energy shocks bite Steel production rises to 595 Mt (1970) and 644 Mt (1975), but the growth rate slows as oil shocks and inflation reshape heavy industry economics. This is also when Japan’s role as a premium buyer of seaborne ore becomes structurally important (long-term contracting culture, reliability, and quality discipline), shaping how producers think about scale and consistency. 3.03 1980s — Mature economies plateau; Brazil’s next chapter ramps World crude steel is basically flat: 717 Mt (1980) and 719 Mt (1985). But the supply system keeps professionalising and expanding. A major marker here is Vale’s Carajás region, where Vale notes it has been mining iron ore in the area since 1985 (a key turning point in Brazil’s scale and grade advantage). 3.04 1990s — A long pause before the surge World crude steel is 770 Mt (1990) then 753 Mt (1995)—a decade where demand growth is real but not explosive. This is the era where efficiency, blending, and supply-chain reliability become increasingly valuable. The “big mining” model (large hubs, integrated rail/port, tight product specs) proves it can outcompete a fragmented supply base. 3.05 2000s — The super-cycle: steel becomes a global volume game Steel production jumps from 850 Mt (2000) to 1,148 Mt (2005). This is the decade that rewired iron ore thinking: volume security becomes strategic; pricing mechanisms evolve (from annual benchmark norms toward more market-linked approaches); and miners invest like the market will be big forever. 3.06 2010s — China dominates; the system industrialises further Steel hits 1,435 Mt (2010) and rises through the decade to the 1.8+ Bt level. By now, the iron ore market is less about “finding customers” and more about: keeping trains and ports running, matching product to mill blends, and managing grade/sinter/pellet strategies. 3.07 2020s — Plateau signals + regional shift World crude steel is basically at a high plateau: 1,883 Mt (2020) and 1,885 Mt (2024). Recent reporting also points to a key transition theme: China appears to have passed peak steel, while developing Asia continues to grow, which can change where iron ore demand growth comes from—even if global volumes remain enormous. 4.0 Timeline: Consumption Milestones + When Major Producers Stepped Into The Iron Ore Game. Table 1: Here’s a combined timeline (demand proxy + producer milestones) to make it easy to reference. Period Demand proxy (world crude steel) Producer “involvement” milestones (how the giants entered / scaled) 1960 347 Mt Australia partially lifts iron ore export ban (policy unlock) 1966 (mid-60s growth) Rio Tinto notes its first Pilbara shipment from Mount Tom Price in 1966 1969 (approaching 1970 peak) BHP marks 1969 as first railing + first shipment from the Mt Newman Project (Mt Whaleback / Port Hedland) 1970 595 Mt Pilbara system proves repeatable at scale (rail + port + long-term Asian contracting) 1980–1985 717–719 Mt Vale’s Carajás mining era begins (Vale references mining since 1985) 1990–1995 770 → 753 Mt Majors consolidate “hub” thinking: product quality, blending, port optionality, and reliability become competitive moats 2000–2005 850 → 1,148 Mt China-driven demand shock forces multi-year capital programs across Australia & Brazil 2010 1,435 Mt Market becomes structurally seaborne-volume dominated; miners optimise for throughput + consistency 2024 1,885 Mt New narrative: China output appears past peak; growth shifts toward developing Asia 5.0 The “Major Producer Involvement” Point That Often Gets Missed A useful way to frame producer involvement isn’t just “who existed,” but who built export systems that could scale: Australia (Pilbara) became the blueprint for integrated iron ore exports: mine → rail → port → Asia, enabled by the 1960 export policy shift and then executed through the first shipments in the mid-to-late 1960s. Brazil (Carajás) reinforced the other pillar of global supply: very large scale with quality advantages, with Vale referencing operations in Carajás since 1985. Over time, the market migrated from a “many suppliers” feel to a system where a small number of huge, operationally disciplined exporters set the reliability standard. 6.0 The Top 10 Global Iron Ore Projects 6.01 Rio Tinto – Pilbara iron ore system (Australia) Tonnes mined per year: ~330–340 Mtpa (operating capacity) Typical product grade: ~61–62% Fe Mine life remaining: 20+ years (continuously extended via replacement hubs) One of the aspects of the Rio Tinto operations in the Pilbara is the longevity of their operations. For example, the Paraburdoo region is one of the longest running iron ore operations in their Western Australian operations having started production in 1972 (Figure 5). Figure 5: A large haulpak working in Rio Tinto's operations in the Paraburdoo region in Western Australia. (source: RioTinto) The most recognisable iron ore operations in the Pilbara that Rio Tinto operates is the Mount Tom Price operations (Figure 6). The Mount Tom Price mine is located in the Pilbara region of Western Australia, near the town of Tom Price. The mine is fully owned and operated by Rio Tinto Iron Ore and is one of twelve iron ore mines the company operates in the Pilbara. In 2009, the combined Pilbara operations produced 202 million tonnes of iron ore, a 15 percent increase from 2008. Figure 6: The Mount Tom Price operations. (source: Wikipedia - By Bäras - Own work, CC BY-SA 3.0) The Pilbara operations accounted for almost 13 percent of the world's 2009 iron ore production of 1.59 billion tonnes. Figure 7 below shows the Rio Tinto operations as of 2023. Figure 7: Pilbara miners produced over 800 billion tonnes of iron ore in the 2020-21 financial year, with Western Australia accounting for 98% of the country’s total iron ore reserves. These products included over $100bn (A$150bn) worth of iron ore exports, and generated $103.3bn (A$154bn) in sales, up from $42.7bn (A$64bn) in 2016-17. (source: Mine Australia - Credit: Peter Christener via Wikimedia) The Hamersley Range, where the mine is located, contains 80 percent of all identified iron ore reserves in Australia and is one of the world's major iron ore provinces. (source: Wikipedia) 6.02 BHP – Western Australia Iron Ore (WAIO) Tonnes mined per year: ~330 Mtpa (operating system capacity) Typical product grade: ~61–62% Fe Mine life remaining: 20–30+ years (portfolio of mines) The BHP operations are just as extensive in the Pilbara and a type example of the iron ore operations is that of the Mount Whaleback mine, officially the Newman West operation and is located in the Pilbara region of Western Australia, six kilometres west of Newman. The mine is majority-owned (85 per cent) and is one of five iron ore mines the company operates in the Pilbara. Figure 8: The Mount Whaleback iron ore mine. The Mount Whaleback deposit was discovered in 1957 by Stan Hilditch but not publicised until 1960, when the Australian Government lifted the embargo on iron ore exports it had put in place because of concerns the mineral was in short supply. (source: Wikipedia - By Graeme Churchard from Bristol (51.4414, -2.5242), UK - Uploaded by PDTillman, CC BY 2.0 ) The story of iron ore mining around Newman begins in 1968, when BHP opened the Mount Whaleback Mine in the heart of the Pilbara. At the time, this was a defining moment for Australia’s iron ore industry. Mount Whaleback would become the largest single open-pit iron ore mine in the world. The mine itself is immense (Figure 8). The pit is around 1.5 kilometres wide and stretches more than five kilometres in length. Over time, the operation has continued to deepen, with the final design expected to reach roughly half a kilometre below surface. The scale of the deposit and the mining operation helped establish Newman as one of the key centres of iron ore production in the Pilbara (Figure 9). Figure 9: The location of the town of Newman to the Mt Whaleback mine - 2020. (source: Wikipedia - By NASA Earth Observatory image by Lauren Dauphin) Developing Mount Whaleback required more than just building a mine. A new township was established to support the workforce, and the town of Newman grew alongside the project. To move the ore to the coast, BHP constructed the 426-kilometre Mount Newman Railway linking the mine to port facilities on the Pilbara coast (Figure 7). Operations moved quickly once the infrastructure was in place. The first train carrying iron ore left Newman on 1 January 1969, marking the beginning of large-scale shipments from the Pilbara. Only a few months later, on 1 April 1969, the first cargo of Newman ore was loaded onto the vessel Osumi Maru for export. In those early years, Newman was operated as a closed company town, a common model for remote mining developments at the time. This arrangement remained in place until 1981, when the town opened up and evolved into the regional mining centre it is today. For anyone looking at the development of the Pilbara iron ore industry, the opening of Mount Whaleback and the creation of Newman marked the beginning of what would become one of the most significant iron ore production regions in the world. 6.03 Vale – Carajás Northern System (Brazil, incl. S11D) Tonnes mined per year: ~230 Mtpa (operating + ramp-up capacity) Typical product grade: ~65–67% Fe Mine life remaining: ~25–40 years The Carajás Northern System is the largest and most important iron ore production hub operated by Vale in northern Brazil. The operations are located in the Carajás Mineral Province in the state of Pará, one of the richest iron ore regions in the world. Figure 10: The Serra Norte iron ore mining area is part of Vale’s Northern System, and is located in the municipality of Parauapebas, which is in the state of Pará, in northern Brazil. The N4W, N4E and N5 mines are currently operating, generally referred to as the Carajas mining complex. The Carajás system contains some of the highest-grade iron ore deposits globally, typically averaging around 65% Fe, which allows Vale to produce premium lump and fines products with relatively low levels of impurities such as silica and alumina. These characteristics make Carajás ore particularly suitable for efficient steelmaking and lower emissions in blast furnace operations. Mining at Carajás began in the mid-1980s, and the region has since developed into a large integrated mining system consisting of multiple open-pit mines, beneficiation plants, rail infrastructure, and export terminals. The Northern System is the largest of Vale’s three main Brazilian iron ore systems and contributes the majority of the company’s total production. The S11D Operations. A major expansion of the Carajás operations came with the development of the S11D Eliezer Batista Complex, which began production in 2016. The S11D project is one of the largest iron ore developments ever built and significantly increased Vale’s capacity in the region. Figure 11: A conveyor belt transports iron ore at the Vale S11D mine in Parauapebas, Para state, Brazil. (source: Bloomberg - Photographer: Dado Galdieri/Bloomberg) The project is notable for its “truckless” mining system, where ore is transported from the pit to the processing plant using conveyor belts rather than traditional haul trucks. This approach reduces fuel consumption, operating costs, and environmental impacts. S11D has a designed production capacity of around 90 million tonnes of iron ore per year, making it one of the largest individual iron ore mining projects in the world. The ore from S11D is also exceptionally high grade, typically above 65% Fe, reinforcing the premium product profile of the Carajás system. Key Facts – Vale Carajás Northern System Location: Carajás Mineral Province, Pará State, Brazil Operator: Vale S.A. Main deposits: Carajás mines including the S11D complex Ore grade: typically around 65% Fe S11D capacity: ~90 million tonnes per year Transport: Estrada de Ferro Carajás railway (~890 km) Export port: Ponta da Madeira terminal (São Luís) One of the largest and highest-grade iron ore mining systems in the world 6.04 Fortescue – Pilbara iron ore operations (Australia) Tonnes mined per year: ~200–220 Mtpa (operating capacity) Typical product grade: ~56–59% Fe (improving with higher-grade replacement ore) Mine life remaining: 20+ years The iron ore operations of Fortescue are located in the Pilbara and form one of the largest iron ore production systems in the world. Since the company’s first shipment in 2008, Fortescue has grown from a new entrant in the Pilbara into the third major iron ore producer in the region, alongside Rio Tinto and BHP. Figure 12: A schematic diagram highlighting the iron ore hub for Fortescue Resources. (source: Livewiremarkets) Fortescue’s operations are centred on large open-pit iron ore mines that produce hematite ore from the Hamersley Basin, one of the world’s most significant iron ore provinces. The company operates multiple mining hubs that supply ore to processing plants, rail infrastructure, and export terminals on the Pilbara coast. Today, Fortescue’s Pilbara system has a production capacity of around 190 million tonnes of iron ore per year, supplying global steel markets, particularly in Asia. Major Mining Hubs Fortescue’s iron ore production is organised into several major mining hubs across the Pilbara. Chichester Hub Located near Cloudbreak (Figure 13) and Christmas Creek (Figure 14), the Chichester Hub was the company’s first major mining operation. These deposits produce a blend of ore types that are processed and transported to port via Fortescue’s rail network. Figure 13: The Christmas Creek iron ore operations. (source: Fortescue) Figure 14: The Cloudbreak iron ore operations. (source: Fortescue) Solomon Hub The Solomon Hub (Figure 15) includes the Firetail and Kings Valley iron ore deposits. This hub produces higher-grade ore compared with some of Fortescue’s earlier operations and contributes a large share of the company’s production. Figure 15: The Solomon iron ore operations. (source: Fortescue) Western Hub – Eliwana and Iron Bridge Fortescue expanded further west with the development of the Eliwana iron ore Mine (Figure 16), which began production in 2020. Eliwana provides higher-grade ore and supports Fortescue’s strategy to improve product quality iron ore. Figure 16: The Eliwana iron ore mine. (source: Fortescue) Another major development is the Iron Bridge Magnetite Project. Unlike Fortescue’s traditional hematite operations, Iron Bridge iron ore mine produces a high-grade magnetite concentrate and represents the company’s move into magnetite iron ore production. Figure 17: The Ironbridge magnetite project accomodation camp. (source: Fortescue) Key Facts – Fortescue Iron Ore Operations Operator: Fortescue Location: Pilbara region, Western Australia First production: 2008 Main mining hubs: Chichester Hub (Cloudbreak, Christmas Creek) Solomon Hub (Firetail, Kings Valley) Western Hub (Eliwana) Magnetite development: Iron Bridge project Rail network: ~600 km heavy-haul railway Export terminal: Herb Elliott Port, Port Hedland Production capacity: ~190 million tonnes per year 6.05 Simandou Iron Ore Project (Guinea) (projected) Tonnes mined per year: ~60 Mtpa (Phase 1 sanctioned) Long-term expansion discussions: up to ~120 Mtpa Typical product grade: ~65–66% Fe (very high-grade hematite) Mine life remaining: 30–40+ years Status: Under development (rail + port critical path) The Simandou Iron Ore Project (Figure 18) in the Republic of Guinea is widely regarded as one of the largest undeveloped high-grade iron ore deposits in the world. Located in the Simandou mountain range in southeastern Guinea, the project contains exceptionally high-grade hematite resources and has the potential to become one of the most significant new sources of seaborne iron ore supply. Figure 18: The Simandou Iron Ore Project. (source: South China Morning Post) The deposit is divided into four main blocks along the Simandou range. Development of the project is being undertaken by a consortium that includes Rio Tinto, the Aluminium Corporation of China (Chinalco) and a group of Chinese investors under the Simandou Winning Consortium. The government of Guinea also holds a stake in the project. Simandou has been known for decades as a world-class iron ore province, but development has been delayed due to infrastructure requirements, financing complexity and ownership changes. In recent years, construction has accelerated as the partners move toward bringing the project into production. Simandou is notable for its high-grade hematite ore, typically grading around 65–66% iron, which is comparable to the premium ores produced from Brazil’s Carajás deposits. The scale of the deposit is also exceptional, with resources estimated to exceed two billion tonnes of high-grade iron ore across the Simandou range. Figure 19: Mining begins at the Simandou Iron Ore Project. (source: Reuters) The ore occurs along a ridge system stretching more than 100 kilometres, making it one of the most extensive undeveloped iron ore formations globally. These characteristics mean Simandou could produce a premium iron ore product suitable for efficient steelmaking. The mine officiaily commenced in early November 2025. Production rates are expected to reach full capacity of 120mtpa by 2030, 60mtpa of which will come from SimFer, a consortium 53% owned by Rio. When the project reaches full capacity, it will account for about 5% of total global supply. As the Simandou operations approach full capacity, S&P Global estimates all-in sustaining costs in the range of $55-$60/t. Key Facts – Simandou Iron Ore Project Location: Simandou Range, southeastern Guinea Deposit type: High-grade hematite iron ore Resource scale: >2 billion tonnes Average grade: ~65–66% Fe Planned production: ~100 Mt per year (long-term) Infrastructure: ~650 km Trans-Guinean railway New deep-water export port Major stakeholders: Rio Tinto Chinalco Simandou Winning Consortium Government of Guinea 6.06 Roy Hill (Australia) Tonnes mined per year: ~60 Mtpa (operating nameplate) Typical product grade: ~55–62% Fe (lump + fines blend) Mine life remaining: >20 years The Roy Hill Mine is a large open-pit iron ore operation located in the eastern part of the Pilbara. The mine is operated by Roy Hill Holdings and represents one of the largest single iron ore mining developments constructed in Australia during the past two decades. Figure 20: The Roy HIll Iron Ore Operations. (source: MLG) The project is situated about 115 kilometres north of the mining town of Newman and was developed to exploit a large hematite iron ore deposit within the Brockman iron formation of the Hamersley Basin. Construction of the mine and associated infrastructure began in 2013, with the first shipment of iron ore exported in December 2015. The development required significant investment in mining infrastructure, processing facilities, rail transport and port infrastructure. Mining and Processing Operations Roy Hill is designed as a large-scale open-pit mining operation producing hematite iron ore. Ore extracted from the mine is transported to a central processing plant where it is crushed, screened and beneficiated to produce lump and fines iron ore products suitable for steelmaking. The operation has a nameplate production capacity of approximately 60 million tonnes of iron ore per year, placing it among the major iron ore producers in the Pilbara. Mining operations utilise large-scale haul trucks, excavators and drill rigs typical of modern Pilbara iron ore operations. The project was designed to operate as an integrated mining system with its own processing and logistics infrastructure. Ownership Roy Hill Holdings is privately owned and led by Australian businesswoman Gina Rinehart through the Hancock Prospecting group. The project also includes several international partners. Major stakeholders include: Hancock Prospecting Marubeni Corporation POSCO China Steel Corporation These partnerships helped finance the large-scale development of the project and support long-term iron ore supply agreements with steel producers. Key Facts – Roy Hill Iron Ore Mine Location: Pilbara region, Western Australia Distance from Newman: ~115 km north Mining method: Open-pit hematite mining Production capacity: ~60 Mt per year Railway: ~344 km Roy Hill Railway Export port: Roy Hill terminal, Port Hedland First shipment: December 2015 6.07 NMDC – Bailadila iron ore complex (India) Tonnes mined per year: ~45 Mtpa (operating / targeted) Typical product grade: ~64–66% Fe Mine life remaining: 20+ years (multiple mining leases) The Bailadila Iron Ore Complex is one of India’s most important iron ore mining regions and is operated by the state-owned company NMDC Limited. The complex is located in the Bastar district of Chhattisgarh, within a series of mountain ridges known as the Bailadila range (Figure 21). Figure 21: The Bailadila Iron Ore Mine. (source: NMDC) The name “Bailadila” translates roughly to “hump of the ox”, reflecting the shape of the hills where the iron ore deposits occur. These deposits are among the highest-grade iron ore resources in India, typically producing hematite ore with iron content exceeding 64% Fe. Mining in the Bailadila region began in the late 1960s and has since developed into a major production centre supplying iron ore to both domestic steel producers and international markets. The Bailadila complex consists of a number of iron ore deposits distributed along the Bailadila hill range. Several deposits are actively mined by NMDC, including: Deposit 14/11C Deposit 11B Deposit 5 Deposit 10 and 11A Mining is conducted using large open-pit methods, where ore is extracted from the hillside deposits and transported to nearby crushing and screening plants. The ore is then processed to produce lump and fines products suitable for steelmaking. The deposits are known for their high-grade hematite ore, which allows NMDC to supply premium iron ore products to steel mills. Key Facts – Bailadila Iron Ore Complex Location: Bastar region, Chhattisgarh, India Operator: NMDC Limited Deposit type: High-grade hematite iron ore Ore grade: typically 64%+ Fe Mining method: Open-pit mining Major deposits: 14/11C, 11B, 5, 10 and 11A Rail connection: Kirandul–Visakhapatnam line Export port: Visakhapatnam Port 6.08 Kumba Iron Ore – Sishen & Kolomela (South Africa) Kumba Iron Ore (Figure 22) is one of the largest iron ore producers in Africa and a major supplier of high-quality iron ore to the global steel industry. The company operates large open-pit iron ore mines in the Northern Cape Province of South Africa and is majority owned by Anglo American. Kumba’s operations are centred on the Sishen and Kolomela mines, which extract hematite iron ore from deposits within the Transvaal Supergroup of the Kaapvaal Craton. These deposits are known for producing high-grade lump and fines iron ore products, which are exported primarily to steel producers in Asia and Europe. The company plays an important role in South Africa’s mining sector, contributing significantly to the country’s iron ore exports and providing supply to both domestic and international steel markets. Sishen Mine – Northern Cape Location: Near Kathu, Northern Cape, South Africa Ownership: Operated by Kumba Iron Ore (majority owned by Anglo American) Product: High-grade hematite iron ore lump and fines Figure 22: Kumba Iron Ore Mining operations. (source: Mining Weekly) Sishen is one of the largest open-pit iron ore mines in the world and the flagship asset of Kumba Iron Ore. The orebody is predominantly high-grade hematite hosted within the Transvaal Supergroup. Mining is conducted via large-scale conventional open-pit methods using truck-and-shovel fleets. Sishen produces both lump (direct shipping ore suitable for blast furnaces) and fines products. The mine is a key supplier to global steelmakers and exports via the Sishen–Saldanha heavy-haul railway to the port of Port of Saldanha. Kolomela Mine – Northern Cape Location: Near Postmasburg, Northern Cape, South Africa Ownership: Operated by Kumba Iron Ore Product: High-grade hematite iron ore Kolomela is a newer, smaller but highly efficient open-pit iron ore operation compared to Sishen. It was developed to replace declining production from older pits and to maintain Kumba’s export capacity. Kolomela is known for: Relatively lower stripping ratios Operational efficiency Consistent high-grade product Production & Strategic Importance Combined production historically ~35–40+ million tonnes per annum (varies by year and market conditions). Typical product grade: ~64% Fe Mine life remaining: Sishen: ~10–15 years Kolomela: ~15–20 years Primary markets: China, Europe, and the Middle East. Strategic importance: Key supplier of premium iron ore products that support efficient blast furnace operations and lower emissions intensity per tonne of steel. Geological Context Both Sishen and Kolomela exploit Banded Iron Formation (BIF)-hosted hematite deposits, enriched through supergene processes that upgraded the original iron formation to high-grade direct shipping iron ore. This natural upgrading is a major reason why these mines are globally competitive. 6.09 LKAB – Kiruna & Malmberget (Sweden) The Kiruna Iron Ore Mine (Figure 23), located in Kiruna, Norrbotten County in northern Sweden, is owned by Swedish mining company LKAB (Luossavaara-Kiirunavaara AB). It is one of the largest and most significant underground iron ore operations in the world. In 2018, the mine produced 26.9 million tonnes of iron ore. The orebody is approximately 4 km long, 80–120 metres thick, and extends to a depth of up to 2 km. Since operations began in 1898, more than 950 million tonnes of ore have been extracted. As of 2020, the main haulage level sits 1,365 metres below the original ore outcrop at Kiirunavaara. Figure 23: Kiruna Iron Ore Mine - Cross Section (source: By Borvan53 - Own work, CC BY-SA 4.0,) Tonnes mined per year: ~25–30 Mtpa (operating) Typical product grade: Pellets: ~67% Fe Fines: up to ~70% Fe Mine life remaining: Kiruna main level to ~2046, longer with deeper mining Due to mining-induced ground subsidence, a decision was made in 2004 to gradually relocate the centre of Kiruna town, with the transition planned over several decades to accommodate continued mining expansion (Figure 24). Figure 24: The close proximity of the townsite and the mine is clearly shown in the two photos. (source: The moving of the Swedish mining city Kiruna) 6.10 IOC – Iron Ore Company of Canada (Canada) Tonnes mined per year: ~18–20 Mtpa (operating capacity) Typical product grade: ~65% Fe concentrate / pellets Mine life remaining: ~20–25 years 7.0 The New Generation of the Iron Ore Business -Direct Reduction Pellets — The Race Toward Green Steel Starts at the Ore Body The business of iron ore has now come to the a stage where the "green" factor is playing a larger role. The old business of just putting >60% Fe ore into a truck and loading it onto trains and then supertankers are now no longer the main game being positioned for the coming decades. It is a well known fact now that mills in China are taking blends and with the cleaning up of the mills in China, the need for cleaner style feed into the furnace is now the talk of the town. The real answer is not hematite vs magnetite — it is grade and quality. Steel mills increasingly prefer High-Fe feedstock (>65% Fe) because it: reduces coke use improves productivity lowers emissions reduces slag volume Remember the following: Steel mills do not prefer magnetite simply because it is magnetite They prefer: higher grade + cleaner ore. Magnetite can deliver that, but only if the beneficiation economics work. That is why some magnetite projects struggle: high capex energy intensive grinding China Making DRI Happen China’s Steel Industry Work Plan (2025–26) emphasises modernization through electric arc furnaces and hydrogen-based ironmaking technologies. China’s steel sector is exploring direct reduced iron (DRI) + electric arc furnace (EAF) as a major low-carbon alternative to blast furnaces. The DRI-EAF route is widely seen as a promising pathway to reduce emissions and reliance on coking coal. However, China currently produces very little DRI, which is why the technology is now being actively developed. China is beginning to deploy commercial DRI facilities. China Baowu and HBIS have commissioned Energiron DRI plants, part of the move toward low-carbon steelmaking (IEEFA) The future of the iron ore industry is now in plain sight as China’s steel industry begins to develop direct-reduction iron (DRI) technologies as part of its decarbonisation strategy, which will increase future demand for high-grade DR-grade pellets. Companies like Vale are already onto this part of the business and the article (Figure 25) from Reuters clearly show that the company is more than talk. Figure 25: An article reporting what Vale is doing to create a "greener" iron ore business. 7.01 What Are Direct Reduction (DR) Pellets? Direct Reduction (DR) (Figure 26) pellets are high-grade iron ore pellets specifically engineered for use in Direct Reduced Iron (DRI) processes. Unlike traditional blast furnace feed (sinter or standard pellets), DR pellets are designed for gas-based reduction using natural gas or hydrogen rather than coke. Figure 26: Iron ores prior to reduction within the direct reduction process. (source: Fraunhofer IKTS) In a DRI plant, iron ore is reduced in the solid state (below melting point) using reducing gases (H₂ and CO), producing Direct Reduced Iron (DRI) or Hot Briquetted Iron (HBI) — the preferred metallic feed for Electric Arc Furnaces (EAFs). 7.01.1 Key Characteristics of DR Pellets High Fe content (typically 67%+) Very low silica and alumina Low phosphorus and sulfur High mechanical strength Uniform size and porosity These specifications are critical. Gas-based reduction is far less forgiving than a blast furnace. Impurities directly affect metallisation rates, energy consumption, and steel quality. 7.02 How Are DR Pellets Produced? Producing DR-grade pellets (Figure 27) is something that I have found in my research that does show in a schematic way the whole palletisation process. I acknowledge that this is just one flowsheet and there will be more newer and modified versions. However, this should give readers a simplistic view of the process and a real world version from one of Vale's operations. Figure 27: Schematic flowsheet of the pelletizing plants of Complexo de Tubarão (Vale) with the HPGR operating in regrinding pre-pelletizing (CAMPOS et al., 2019a). (source: Campos, Túlio. (2023). A NOVEL HPGR ONLINE MODELING AND SIMULATION APPROACH COUPLED WITH REAL-TIME INFORMATION.) 7.02.1 Step-by-Step Process Mining & Crushing Magnetite ore is mined and crushed. Beneficiation Magnetic separation upgrades Fe content. Silica, alumina, and other gangue minerals are removed. Result: High-grade magnetite concentrate (often 68–70% Fe). Pelletising Concentrate is mixed with binders (usually bentonite). Rolled into green pellets using disc or drum pelletisers. Induration Pellets are fired at high temperatures (~1,250–1,350°C). This hardens the pellets and develops required strength and porosity. Quality Control Testing for compression strength, reducibility, swelling index, and metallisation potential. 7.03 Why DR Pellets Matter For decades, the global steel industry has relied heavily on the blast furnace–basic oxygen furnace (BF-BOF) route. This traditional pathway consumes large volumes of iron ore fines, coke, and sinter. However, the steel industry is now under increasing pressure to reduce carbon emissions, and this is where Direct Reduction (DR) pellets become critically important. DR pellets represent a specialised type of iron ore pellet designed specifically for direct reduction iron (DRI) processes, which are increasingly used in electric arc furnace (EAF) steelmaking. As the world transitions toward low-carbon steel production, DR pellets are emerging as one of the most strategically important raw materials in the iron ore value chain. 7.03.01 Decarbonisation of Steel (source: ScienceDirect) The global steel industry produces roughly 7–9% of global CO₂ emissions. The traditional blast furnace route emits large amounts of carbon because it relies on coking coal as both fuel and reductant. Table 2: Direct Reduction offers a lower-carbon pathway: Because DR furnaces require high-purity iron feed, DR pellets are essential to making this transition possible. Steelmaking Route CO₂ Intensity Blast Furnace ~1.8–2.2 t CO₂ per tonne steel Natural Gas DRI + EAF ~1.2 t CO₂ Hydrogen DRI + EAF <0.2 t CO₂ In simple terms: No DR pellets → No large-scale green steel. 7.03.02 EAF Growth Electric Arc Furnaces are expanding globally, especially in: Europe North America Middle East These plants need consistent, high-grade feedstock — and DR pellets are essential. 7.03.03 Premium Pricing DR-grade pellets command price premiums over: 62% Fe fines Standard blast furnace pellets The market increasingly differentiates based on Fe grade and impurity profile. 7.04 Not All Magnetite Deposits Can Produce DR Pellets This is an important part of the process and this is also important for several projects that are in the DR-space. This phenomenon is like we can all be a King but we will never be one because we are not born within the family tree. Hence, it is important understand that Just because a project is “magnetite” does not mean it can produce DR-grade pellets. 7.04.01 Why? Some magnetite concentrates cannot reach 67%+ Fe without excessive grinding cost. Elevated silica or alumina can persist after beneficiation. Certain deposits contain deleterious elements (P, S, TiO₂). Grinding to ultra-fine sizes may create pelletising issues. Mineralogy influences pellet reducibility and swelling. 7.04.02 Ore body geology determines pellet quality. Projects must demonstrate: Consistent concentrate chemistry Suitable grind size distribution Metallurgical test work confirming DR specifications Induration performance Without the specifications required to be a DR capable magnetite source, “DR - Ready” is just marketing. This means: Magnetite deposits are often preferred because beneficiation can produce very high grades. Many hematite deposits cannot reach DR pellet specifications without significant processing. This is why many smaller companies targeting DR markets are developing: magnetite projects beneficiation flowsheets pellet plants Table 3: Suitable Ore Types Note that this is why This is why many DR pellet projects focus on magnetite deposits. Magnetite beneficiation can produce concentrates >68–70% Fe, which are ideal for DR pellet feed. Ore Type DR Pellet Potential Magnetite concentrates Excellent High-grade hematite (>67% Fe) Good Typical Pilbara hematite fines Generally unsuitable 7.04.03 Why This Sector Is Emerging Three major trends are driving DR pellet demand: Electric Arc Furnace steelmaking growth Hydrogen-based steel production Decarbonisation of steel DRI processes need high-purity iron units, which makes DR pellets critical. The Middle East, Europe and the United States are already relying heavily on DR pellets. 8.0 Global Companies Working on DR Pellets - The Big Boys 8.01 Vale S.A. - Brazil World’s largest pellet producer. Actively developing DR-grade pellet feed. Pushing “green briquette” concepts. Positioned to supply Europe’s hydrogen DRI push. Vale’s Carajás ores are naturally high grade — a structural advantage. 8.02 LKAB - Sweden High-grade magnetite producer. Major supplier of DR pellets to Europe. Central to the HYBRIT hydrogen steel initiative. Vertically integrated model from mine to pellet. Figure 28: One of LKAB's main products is iron ore pellets, a small ball consisting of a mixture of refined iron ore, oxides, and additives. The company is now increasing its production volume of iron ore pellets in Kiruna and slowing the transition to carbon dioxide-free sponge iron production in the northern Swedish city. Fredric Alm Swedish magnetite mineralogy is ideal for DR concentrate production (Figure 28). 8.03 ArcelorMittal (AMMC Canada) - Canada Produces high-grade concentrate and DR pellets. Strategic supplier to North American EAF steelmakers. Leveraging Quebec’s magnetite deposits. 8.04 Cleveland-Cliffs Inc. - US Supplies DR-grade pellets domestically. Operates an HBI plant in Toledo. Integrated into US steel decarbonisation. 8.05 Fortescue Limited - Australia Iron Bridge magnetite project. Aiming for high-grade concentrate. Tied to green hydrogen ambitions. Still proving long-term concentrate consistency. Australia has abundant magnetite, but not all deposits achieve DR specifications economically. 9.0 Small Iron Ore Companies Targeting the Direct Reduction Pellet Market The shift toward Direct Reduction (DR) pellets is creating a new niche in the iron ore sector. Large producers dominate the current supply, but several smaller or emerging companies are positioning themselves to supply DR-grade concentrate or DR pellets, particularly because green-steel producers require high-purity iron units. Below is a review of smaller iron ore companies working toward the DR pellet or DR pellet feed market. 9.01 Tacora Resources – Magnetite DR Pellet Producer Tacora Resources is a smaller North American iron ore producer focused on high-grade magnetite concentrate suitable for DR pellets. Region: Labrador Trough Province: Newfoundland and Labrador, Canada Nearest town: Wabush Mining district: Western Labrador / Quebec–Labrador Iron Ore Belt Figure 29: Scully Mine Location located in North-West Tasmania, Australia. (source: Mining Services) Key Location Context The mine sits in the Labrador Trough, one of the world’s major iron ore districts. It is close to other historic operations such as those around Labrador City and the large deposits mined by ArcelorMittal and Champion Iron. The region is connected to the port of Sept‑Îles in Quebec via the Quebec North Shore and Labrador Railway, which is used to ship iron ore concentrate to global markets. Key points Operates the Scully Mine Produces 65–67% Fe concentrate Material is sold to pellet plants producing DR-grade pellets Beneficiation upgrades lower-grade ore to high-purity concentrate Tacora sits in the North American DR supply chain, feeding pellet plants that supply electric arc furnace steelmakers. 9.02 Grange Resources – Magnetite Concentrate for DR Pellets Grange Resources Limited operates one of the few integrated magnetite pellet operations in Australia. Key points Owns the Savage River Mine Pellets produced at the Port Latta Pellet Plant Pellet grade around 65–66% Fe Located in North-West Tasmania, Australia Figure 30: Location of the Savage River Iron ORe Mine in Australia. (source: Hancock, E. and Wynn, E. Savage River underground project update. 9th International Conference and Exhibition on Mass mining, Kiruna, Sweden 17-19 September 2024) Although much of the product goes into blast furnaces, magnetite pellets are technically suitable for DR processes depending on chemistry. Grange demonstrates that magnetite beneficiation + pelletisation is the pathway most juniors are exploring for the DR market. 9.03 Kamistiatusset (Kami) Iron Ore Project – DR Pellet Feed Concept Champion Iron Limited (“Champion” or the “Company”) acquired the Kamistiatusset Iron Ore Project (“Kami” or “The Project”) on April 1, 2021. Figure 31: Location of the Kami Iron Ore Project. (source: Champion Iron Limited). Kami is located southwest of the towns of Wabush and Labrador City in Newfoundland & Labrador and east of Fermont, Québec. The Project is situated 21 km southeast of the Company’s operating Bloom Lake mine, in the Labrador Trough geological belt in southwestern Labrador, near the Québec border. Key points Magnetite deposit Target 65–68% Fe concentrate Intended supply for North American pellet plants The project has gone through restructuring but remains a reference case for DR pellet-focused development projects. 9.04 Magnetite Mines – DR Pellet Feed From Razorback Magnetite Mines Limited is one of the most prominent junior DR pellet feed developers. Project: Owner: Magnetite Mines Limited (ASX: MGT) Location: Braemar Iron Formation, near Hawker, South Australia Key points Concentrate grade ~68–70% Fe Designed specifically for DR pellet feed Targeting green steel markets Located 240 km from Adelaide, Australia. Figure 32: Location of the Razorback Iron Ore Project. (source: Magnetite Mines). Ore Grade Run-of-Mine Ore Average in-situ grade: ~16–18% Fe magnetite mineralisation This is typical of large magnetite Banded Iron Formation (BIF) deposits, where beneficiation is required. Concentrate Grade After grinding and magnetic separation: Target concentrate: ~68.8% Fe magnetite concentrate Impurity levels: Very low silica Very low alumina Very low phosphorus This quality is designed to meet DR pellet feed specifications. Project Scale JORC Resource: ~5 billion tonnes of magnetite mineralisation. Planned production: ~5 million tonnes per annum of high-grade concentrate in the initial stage. Mine life: potentially >100 years due to the scale of the resource. This makes Razorback one of the largest undeveloped magnetite iron ore resources in Australia. Direct Reduction (DR) Strategy The Razorback project is specifically positioned to support low-carbon steel production. Key elements of the DR strategy: Produce DR-grade magnetite concentrate (~68–70% Fe). Supply pellet feed for Direct Reduction (DR) iron plants. Target customers operating Electric Arc Furnace (EAF) steelmaking routes. Align with green steel initiatives in Asia, Europe, and the Middle East. 9.05 Champion Iron – Premium DR Pellet Feed Supplier While larger than most juniors, Champion Iron Limited is still considered a mid-tier producer and is a key supplier of DR pellet feed concentrate. Figure 33: Location of the Bloom Lake Iron Ore Project. (source: Champion Iron Limited). Project: Bloom Lake Mine Key points Concentrate grade ~66–69% Fe Low impurities Material used in pellet plants producing DR pellets Champion Iron is increasingly positioning itself as a premium feedstock supplier for green steel. 9.06 Iron Bear Resources Limited – Iron Bear Iron Ore Mine - Direct Reduction Strategy Project: Iron Bear Iron Ore Project Owner: Iron Bear Resources Limited Location: Labrador Trough, near the Québec–Labrador border, Canada Deposit Type: Magnetite iron formation Ore Grade and Product Deposit type: Magnetite banded iron formation (BIF). Run-of-mine grade: typically around 25–30% Fe. Magnetite ore is expected to be beneficiated through grinding and magnetic separation. Target concentrate: 69–71% Fe magnetite concentrate Ultra low impurities Low silica Low alumina Low phosphorus This type of concentrate is suitable for premium iron products and pellet feed. Direct Reduction (DR) Strategy Iron Bear Resources is being evaluated specifically with Direct Reduction (DR) iron production in mind. Key strategy elements: Produce high-grade magnetite concentrate suitable for DR pellets. Target DR-grade pellet feed (71% Fe). Designed to supply Electric Arc Furnace (EAF) steelmaking. Aligns with low-carbon steel production strategies. Strategic Advantages Located in the Labrador Trough, an established iron ore mining district. Magnetite concentrate allows consistent high-grade product. Potential to produce DR pellet feed and DR pellets, which is increasingly demanded by decarbonising steelmakers. Positioned to supply future green steel supply chains in North America and Europe. 10.0 Strategic Observations — The Samso View DR pellet capacity is structurally constrained.High-grade ore bodies are rare. Geology now matters more than scale.Grade consistency and impurity control determine long-term competitiveness. The green steel narrative is real — but selective.Only a subset of global iron ore projects qualify. Future premiums will widen.62% Fe fines vs 67%+ DR feed could see structural divergence. Test work is everything.Investors must look beyond headlines: What is the grind size? What is the silica level after beneficiation? Has reducibility been tested? Is induration proven? 11.0 Final Thoughts The shift toward DRI is not simply a steel story — it is an ore body story. The companies that control consistent, scalable, DR-grade magnetite concentrate will hold strategic leverage in the decarbonising steel industry. But the market must understand: Magnetite ≠ DR pellet. Only certain mineral systems, with the right metallurgy and economics, will make that leap. And that is where the next iron ore differentiation cycle begins. 12.0 Samso Concluding Comments Iron ore consumption since the 1960s reads like a story of steel becoming the physical language of economic development. The numbers show steady growth, then pauses, then a once-in-a-generation surge that lifted the whole system into the billion-tonne era. The producer timeline matters because iron ore is not just a rock story—it’s an infrastructure story. The miners who mattered most were the ones who built repeatable, scalable logistics and then kept product quality consistent enough for steelmakers to plan around. The Transition to Cleaner Iron ore The last few years look like a transition chapter rather than an ending. Global steel output is still sitting near record levels, but the growth engine appears to be shifting geographically, and that will shape which supply chains feel “closest” to the next wave of demand. For me, the current general narrative of a iron ore supply disruption in terms of a potential increase in supply affecting the current producers is unfounded. There may be more disruption currently with them potential escalation of hostilities in the US vs. Iran. One may say that the hostilities may be a catalyst for a increase demand for iron ore and take away the Simandou effect. Making Green Gestures What is more important is for investors to take note of the Direct Reduction Iron factor. If you look at the need to participate in the "green" effect that is encapsulating global economies, the obvious one is to create products that the steel mills can use to increase their part in the decarbonisation process. The big players are all preparing for the switch and the vendors of magnetite projects prone for beneficiation to higher iron grades are all slowly rubbing their hands. There is a concerted effort to seek magnetite projects that will allow the beneficiation process to achieve Direct Reduction status. The companies with projects in the Labrador Trough seem to be making the most waves and this is going to create a this area into the next Pilbara Money Printer. For a start, companies such as Champion Iron Limited , Iron bear Limited and Tacora Resources should be on the watchlist. The Direct Reduction Iron Players Champion Iron stands out as the clear leader, but the unique partnership between Iron Bear Limited and Vale is the one to watch. With a market capitalisation of around AUD $50M as of March 8, 2026, Iron Bear Limited appears to be an incredible bargain, considering their JORC Resource of approximately 16.66 billion tonnes of magnetite mineralization, with a potential Direct Reduction concentrate grade exceeding 70% Fe and a SiO2 grade of 1-1.2%. As a shareholder of Iron Bear, I am particularly interested in this subject. The fact that Champion Iron is also categorising their magnetite in this way indicates that this is not a ground breaking process. Iron Bear Resources Limited is not reinventing the wheel with their efforts. Is Simandou Too late The coming on of a haematite high-grade iron ore deposit may just be too late. This will be a process for time to see if there is going to be a transition from high-grade haematite ore to high-grade magnetite ore that can be made into the Direct Reduction Pellets. Nothing in Life stands still and we know that the need to create cleaner energy products is high on the agenda. 13.0 The Samso Way – Seek the Research Here at Samso, we pride ourselves on delivering content for investors that is independent and informed by over three decades of experience in the industry. Our content is well-researched and is only created if I see merit in discussing the company's story. Our mission is simple: cut through the noise and spotlight what matters—genuine stories, grounded insights, and real opportunity. Our content is well-researched and is only created if the team sees merit in discussing the company or concept. Investors can explore our three core platforms: Coffee with Samso Samso Insights Samso News There may be numerous paths to success in investing, but the common thread among successful individuals is that they remain committed to making informed decisions. Equip yourself with the right knowledge and tools, and you will be well on your way to achieving your financial goals. Most importantly, investors need to be absolutely diligent in understanding their own risk-reward tolerance and capabilities. Never bite off more than you can chew. As they say, Rome wasn’t built in a day, and the Great Wall stood because it took centuries to complete. The Samso Philosophy: Stay curious. Stay sharp. And remember—digging deeper always uncovers the real value. In Life, there is no such thing as a Free Lunch. Never bite off more than you can chew is my parting comment. Happy Investing, and the only four-letter word you need to know is DYOR. To support our independent nature of our work, please head over to our Support Page and give us a helping hand in any of the ways listed. This is a new initiate for the Samso Platform, and it was always the concept of Samso when we started this journey in 2018. Cover photo: Hematite (GeoDIL number - 1308), Darla Sondrol. CC0, via Wikimedia Commons (https://commons.wikimedia.org/wiki/File:Hematite_(GeoDIL_number_-_1308).jpg). Reproduced photograph, shown faded under a navy overlay on the article thumbnail. Disclaimer The information or opinions provided herein do not constitute investment advice, an offer, or solicitation to subscribe for, purchase, or sell the investment product(s) mentioned herein. It does not take into consideration, nor have any regard to your specific investment objectives, financial situation, risk profile, tax position and particular, or unique needs and constraints. Read full Disclaimer. Share to Grow: Your Bonus Samso has just released an eBook: How to Add Value to your Share Portfolio A lesson on geological models sought by mining companies that gives insight and an understanding of which portfolios are better - and potentially more lucrative – investments. Click here to download this eBook. Download eBook If you find this article informative and useful, please help me share the information. I try to write about topics that are interesting and have the potential to be of investment value. It is not easy to find stories that fit those parameters. If you or your organisation sees the benefit of what Samso is trying to achieve and has a need to share your journey, please contact me at noel.ong@samso.com.au. About Samso Samso is a trusted platform that equips dedicated investors with up-to-date industry knowledge and insights from top CEOs and thought leaders. By staying informed on business advancements and market trends, investors can enhance their financial decisions through a combination of expert guidance and their own research.

Pure play natural gas and helium explorer D3 Energy Ltd is set to be the latest debutante on the ASX, with the company’s initial public offering (IPO) slated for April 26 this month. Under the IPO, the Africa-focused explorer aims to raise A$10 million for an offer of 50 million shares at an issue price of 20 cents apiece. With the coffers full, the company aims to explore and develop its natural gas and helium assets, situated in the Free State Province in onshore South Africa as well as fund general working capital. As a nation that is experiencing severe energy supply difficulties, South Africa is making the identification of natural gas reserves an important part of the present energy supply as well as the country’s energy transition. Primary focus Incorporated in April 2012, D3 Energy is an emerging natural gas and helium exploration company, aiming to acquire and explore interests in natural gas and helium projects in Africa. The company’s primary focus is on the exploration of, and where possible, the commercial production of natural gas and helium at its D3 project in South Africa (Figure 1). Importantly, gas samples taken at the company’s exploration right ER315 indicate the presence of helium within the natural gas. Looking ahead, D3 intends to separate helium from methane for potential commercial sale. Figure 1: Map of D3 Energy portfolio, Free State, South Africa (Source: D3 website) What are the company’s interests in the D3 Project? Upon listing, the company will hold 100% of Motuoane Energy (Pty) Ltd, a company incorporated in South Africa that holds the permits for the D3 Project (Figure 2). Currently, the company holds an 86.77% interest in Motuoane, an interest that was acquired on October 28, 2022, under the Motuoane Acquisition Agreement. Under the agreement, the company has agreed to acquire the remaining 13.23% interest in Motuoane upon the earlier of the first business day following July 2024 and the company receive conditional listing approval from ASX to be admitted to the official list. The offers are conditional on the completion of the company’s acquisition of the remaining 13.23% interest in Motuoane under the Motuoane Acquisition Agreement. Figure 2: Ownership of the exploration assets constituting the D3 Project once listed (Source: D3 Prospectus) IPO highlights The IPO is being facilitated by Peloton Capital Pty Ltd and Originate Capital Pty Ltd, serving as joint lead managers. Notably, the offering is not underwritten, reflecting the confidence of both investors and management in D3 Energy’s prospects. Applications under the public offer must be for a minimum of A$2,000 worth of shares (10,000 Shares) and thereafter, in multiples of $500 worth of shares (2,500 Shares). Figure 3: Indicative timetable (Source: D3 Prospectus) Samso's Thoughts Energy is one of the most narrated investment items currently and there are many opinions, especially the ones coming from the renewable space. I think that the investment community has latched onto this massive money-making concept and has again moved so fast that the reality of their intentions is not aligned. The investment sector has always been the initiator of great ideas that the world should partake in because they are correct. Just like the great notion of the "NINJA LOANS" that was the great learnings of the GFC. The repackaging of ABC loans was "ok", so we should not be concerned as they knew best. In a place like South Africa, the local discovery of power sources would be a money spinner but history has shown that places where there is a lack of jurisdiction authority always makes investments vulnerable. If D3 Energy can make this work, I am a big fan. As an investment for the mum and dads, I think serious DYOR must be made as this is a very vulnerable business concept despite the slow realisation that renewable energy is not sustainable. Get Deeper Insights The latest and most reliable information from experienced sources, that are completely unbiased are now available through a Paid Membership. Sign up here for a more trustworthy source of well-researched and independent information for investors. ------- Disclaimer The information or opinions provided herein do not constitute investment advice, an offer or solicitation to subscribe for, purchase or sell the investment product(s) mentioned herein. It does not take into consideration, nor have any regard to your specific investment objectives, financial situation, risk profile, tax position and particular, or unique needs and constraints. Read full Disclaimer. ------ About Samso Samso is a trusted platform that equips dedicated investors with up-to-date industry knowledge and insights from top CEOs and thought leaders. By staying informed on business advancements and market trends, investors can enhance their financial decisions through a combination of expert guidance and their own research. Coffee with Samso Experience

An advanced copper developer looking to enter the world of copper producers in Chile. With a rising copper price and the realisation that copper is indeed in a supply crunch, this could be a worthwhile company to have a decent effort to DYOR. Marimaca Copper Corp. (TSX: MARI, ASX: MC2) is a Canadian exploration and development company focused on copper exploration in Chile. The company is listing on the ASX to gain access to Australian capital markets while maintaining its primary listing on the Toronto Stock Exchange (TSX). Marimaca Copper Corp. has a market capitalisation of C$563M and has an MRE of 238MT @0.44% Cu with 1,041kt of contained copper, and it is not your average mineral explorer looking for copper in South America. The IPO is a compliance listing to achieve a dual listing status for the company to legally create a path to access funds from the Australian Stock Exchange (ASX). It is best to seek advice from your equity broker as to how one would participate in this listing, as that would be above the capabilities of Samso. Our interest in reviewing Marimaca is that it may be an opportunity to get access in the ASX to a valued TSX company with a decent-looking copper-producing opportunity. The timeline for the Definitive Feasibility Study (DFS) is encouraging, and although this is not a guarantee of success, this is a great opportunity to be able to participate as a copper producer in a region well known for its copper mining and production. To make it simple, readers can use the links below to move faster through the review of the Marimaca Copper Corp story. 1.0 IPO Details 2.0 Share Options & Escrow 3.0 Use of IPO Funds 4.0 Escrow Arrangements: 5.0 Key Dates 6.0 Directors of Marimaca Copper Corp.: 7.0 Management 8.0 Marimaca Copper Projects & Locations 8.10 Project History 8.20 Marimaca Copper Deposit Summary 8.30 Marimaca Copper Project – Exploration & Drilling Summary 8.40 Geology and Mineralisation – Marimaca Copper Project 8.41 Regional Geology 8.42 Cover Rocks 8.43 Metallogenic Setting 8.44 Deposit Characteristics 8.45 Mineralogy 8.50 Mineral Resources – Marimaca Copper Project 8.60 Project Status 9.0 Sierra de Medina Project – Summary 9.10 Overview 9.20 Location, Access & Infrastructure 9.30 Mineral Tenure 9.40 Infrastructure and Mining Hub Overview 10.0 Samso Concluding Thoughts 1.0 IPO Details (source: Prospectus) Offering: 100 CHESS Depositary Interests (CDIs) at A$6.00 per CDI, raising a total of A$600. CDI Ratio: 1 CDI = 1 common share. Market Capitalization: C$562 million (as of the last trading day before the prospectus). Number of Shareholders: The company has several major shareholders, including Greenstone Capital LLP (25.31%), Assore International Holdings Ltd (14.99%), and Ithaki Ltd (9.47%). ASX Listing: Expected to begin trading - TBA. 2.0 Share Options & Escrow (source: Prospectus) Outstanding Stock Options (as of November 12, 2024): Exercise Prices: Range from C$1.25 to C$5.00. Expiry Dates: Between April 2025 and October 2028. Recent Stock Option Grants: 2023 Grants: marimaca.com Quantity: 0.5 million stock options granted. Exercise Price: Weighted average of C$4.00 per option. Option Life: 5 years. Valuation: Fair value estimated at C$0.8 million. 3.0 Use of IPO Funds The IPO proceeds will be used for: 1. ASX Listing Compliance & Administration. 2. General Working Capital. 3. Supporting exploration & development at Marimaca & Sierra de Medina. 4.0 Escrow Arrangements (source: Prospectus) Public Disclosures: Specific details regarding escrowed shares or lock-up periods for Marimaca Copper Corp. are not publicly disclosed in the available sources. Common Practices: Escrow arrangements typically apply to insiders or significant shareholders, especially during financing events or initial public offerings (IPOs). Such arrangements are designed to prevent large-scale selling immediately after these events, thereby stabilizing the stock price. Recommendation: For detailed information on any existing escrow agreements, it is advisable to consult Marimaca Copper Corp.'s official filings or contact their investor relations department. Note: The information provided is based on publicly available sources as of March 15, 2025. 5.0 Key Dates (source: Prospectus) May 18, 2023 – Updated Mineral Resource Estimate (MRE), increasing Measured & Indicated Resources by 44% to 200Mt @ 0.45% Cu. April 15, 2024 – Development update on the Definitive Feasibility Study (DFS), geo-metallurgical modelling, and permitting. May 22, 2024 – First Community Open House in Mejillones, improving ESG rating to an "A" score. July 16, 2024 – Strategic C$68M investment by Assore International Holdings (AIH) through share acquisition & private placement. August 7, 2024 – Closed C$30.3M private placements, increasing AIH's stake to 14.99% of outstanding shares. November 18, 2024 – Announced dual listing process on ASX to access institutional capital. March 13, 2025 – Expected ASX listing under the ticker "MC2," marking expansion into the Australian market. Target Production Timeline: 2028 – Advancing towards full-scale copper production 6.0 Directors of Marimaca Copper Corp.: (source: Prospectus) Michael Haworth – Non-Executive Chairman Extensive experience in mining finance and corporate strategy. Hayden Locke – President & CEO Strong background in mining investment, project development, and corporate leadership. Giancarlo Bruno Lagomarsino – Non-Executive Director Experience in investment banking and capital markets. Clive Newall – Non-Executive Director Mining executive with experience in resource exploration and project development. Tim Petterson – Non-Executive Director Focus on corporate governance and mining investment. Colin Kinley – Non-Executive Director Technical expertise in resource exploration and feasibility studies. Alan Stephens – Non-Executive Director Over 40 years of experience in copper exploration in Chile. Kieran Daly – Non-Executive Director Experienced in mining project evaluation and financing. 7.0 Management (source: Prospectus) • José Antonio Merino – CFO & Managing Director (Chile) • Sergio Rivera – VP, Exploration • Solange González – General Counsel & Company Secretary • Nico Cookson – Head of Corporate Development 8.0 Marimaca Copper Projects & Locations (source: Prospectus) The Company’s flagship asset is the Marimaca Copper Project in Chile’s Antofagasta region. It is one of the few greenfield copper discoveries made globally in the last decade and is a low-risk project with substantial exploration potential. Figure 1: Marimaca Project location map. (source: Prospectus) The Marimaca Copper Project (Figure 1) is situated in Chile’s Antofagasta Province, Region II, roughly 25 km west of the port of Mejillones, about 45 km north of Antofagasta city, and 1,250 km north of Santiago, Chile. The project site is positioned at approximately 374,820 E and 7,435,132 S in WGS84 UTM coordinates. The project is within top-tier utilities and infrastructure. The Marimaca Project is comprised of 20 mining/exploitation concessions covering approximately 961 hectares. These concessions are listed in the national mining claims register and are in Sierra Naguayán, Commune of Mejillones, Province and Region of Antofagasta. 8.10 Project History (source: [1- Luis Oviedo]) In the general Project area, modern small-scale artisanal mining activities were conducted from the 1990s to the mid-2000s, with underground workings reaching a maximum depth of about 100m. No modern exploration occurred until Coro Mining Corp. (Coro), which later became Marimaca Copper, began acquiring the Project's ground holdings. The Marimaca deposit was discovered in 2016 after a reverse circulation (RC) drill program. Coro then conducted detailed geological surface mapping, rock chip sampling, additional RC drilling, core drilling for geotechnical and geometallurgical studies, metallurgical test work, and mining studies. An initial resource estimate was completed in January 2017, with Mineral Reserves first estimated in 2018. Coro completed a feasibility study in June 2018 (the 2018 Feasibility Study). This study considered using conventional equipment for open-pit mining to supply a refurbished process plant, known as the Ivan plant, capable of producing 10,000 tons of cathode copper annually. The 2018 Feasibility Study is not currently the favored option for Project development. Marimaca Copper does not regard the study as current, and the Mineral Reserve estimates are also not considered current. Nonetheless, some baseline information from the 2018 Feasibility Study was utilized in the 2020 PEA. An Environmental Impact Statement (Declaración de Impacto Ambiental, DIA in Spanish) and the Mining Safety Regulations and Environmental Qualification Resolution (RCA) were approved on 5 July 2018. Mineral Resources were updated in late 2019 as part of an internal study of the Mixed area (MAMIX) and again in 2022, with results discussed in the 2022 MRE report. This included a total of 110,790m drilled across 429 drill holes. The 2023 MRE includes a total of 139,164m across 554 drill holes. Coro changed its name to Marimaca Copper in May 2020. 8.20 Marimaca Copper Deposit Summary Geology, Mineralization and Deposit Types (source: [1- Luis Oviedo]) Location & Context: Marimaca lies in Chile’s Coastal Copper Belt, among other Mesozoic-age copper deposits (e.g., Mantos Blancos, Ivan). It displays features of both manto-type and IOCG (Iron Oxide Copper Gold) deposits. Geology & Structure: Hosted in intrusives of the Naguayán Stock (monzodiorite-diorite), the deposit is heavily fractured, especially along a north-south (NS) structural belt. These fractures form "sheeted-like" zones that enhance permeability. Later, NW and WNW faults also aided in fluid movement and oxide formation. Mineralization: The deposit is characterized by a copper oxide blanket at surface, ~1,600m long (NNW), 400–500m wide, and 200–300m thick. The upper two-thirds consist of copper oxides (e.g. brochantite, atacamite, chrysocolla), while the lower third is mixed with secondary sulfides like chalcocite and covellite. Structural control is key to the distribution of mineralization. Alteration: The deposit shows Na-Ca (calc-sodic) metasomatism with limited hydrothermal destruction. Alteration minerals include albitite, chlorite, minor K-spar, and biotite. Limonite (goethite) is associated with oxides. Unique Features: While Marimaca shares some IOCG features (low pyrite, chalcopyrite-magnetite, sodic alteration), it lacks gold and shows an unusually intense supergene (near-surface oxidation) overprint. This secondary oxide blanket is thought to result from prolonged oxidation of an earlier sulfide-rich zone, despite the primary IOCG system being low in pyrite. This points to a unique evolution involving repeated oxidation and lateral copper migration. 8.30 Marimaca Copper Project – Exploration & Drilling Summary (source: Prospectus) Artisanal Mining History: Small-scale underground mining occurred between the 1990s and mid-2000s, reaching depths of up to 100 meters. Modern Exploration: This began in 2016 with the Company’s land consolidation and RC drilling that led to the discovery of the Marimaca Oxide Deposit. Exploration Activities Since 2016 include: Surface mapping and rock chip sampling Reverse circulation (RC) and diamond core drilling Geotechnical and geo-metallurgical studies Metallurgical test work and mining studies Mineral Resource Estimates (NI 43-101): First estimate completed in January 2017 Updated in 2019, 2022, and most recently in May 2023 Drilling Overview (as of May 2023): Total holes: 560 Total meters drilled: 139,164m RC drilling: 127,186m Diamond drilling: 11,978m (mostly PQ and HQ3 core sizes) Eight drilling campaigns over 2016–2022 Average drill spacing: 50m × 50m, oriented at 220° and 310°, with 60° dip Drilling Contractors: RC and core drilling completed by Drillex and Major Drilling Reporting Standards: Exploration results and resources reported under NI 43-101 Additional compliance under the JORC Code (2012) in supporting technical documents (Annexure D) 8.40 Geology and Mineralisation – Marimaca Copper Project 8.41 Regional Geology Oldest Rocks: Late Palaeozoic to Triassic metasediments and intermediate intrusives. Intrusive Activity: Early Jurassic to Lower Cretaceous intrusive stocks dominate the region. Younger intrusives host the Marimaca oxide copper mineralisation. Volcanics: La Negra Formation, a bimodal volcanic event (similar to a large igneous province), surrounds the project area. Dyke System: Extensive bimodal dykes (gabbro to rhyodacite) intrude both volcanics and intrusives, mapped over tens of kilometres. Dated at 145–148 Ma, coinciding with regional manto-type copper events. 8.42 Cover Rocks Tertiary marine sediments mark paleo shorelines on the Mejillones Peninsula. Valley gravels and ash layers to the east date back 10–12 million years. 8.43 Metallogenic Setting Manto-type deposits: Hosted in La Negra volcanics, typically in brecciated and vesicular lava flows, and occasionally in veins and breccias. Alteration is weak and subtle (albitisation, K-feldspar replacement). IOCG-style mineralisation: Occurs in Jurassic intrusives, with Marimaca seen as an atypical IOCG variant due to its unique structural controls and deep supergene oxidation. Porphyry copper systems exist near the project’s eastern margin. 8.44 Deposit Characteristics Marimaca Oxide Deposit: A supergene copper oxide blanket exposed at surface. Extends ~1,800m NNW, 500–700m wide, and 200–350m thick. Upper 2/3: Copper oxides Lower 1/3: Mixed zone with secondary sulfides Depth of Oxidation: Supergene alteration reaches depths of over 400m, due to favorable post-Jurassic geomorphological and climatic evolution. Structural Controls: Mineralisation follows N–SE dipping structures and late NW–EW fault systems. 8.45 Mineralogy Oxide Zone Terms Used by Company: "Brochantite zone": Actually dominated by atacamite (clinoatacamite) with minor brochantite. "Enriched sulphide" / "chalcocite zone": Zone with chalcocite and covellite, replacing chalcopyrite or coating pyrite. Gangue Minerals: Limonite, goethite, minor hematite, clays, iron oxides, gypsum. Associated Alteration Minerals: Actinolite, chlorite, and magnetite. 8.50 Mineral Resources – Marimaca Copper Project Original Reporting Framework: The Marimaca Copper Project's Mineral Resource was originally reported under the NI 43-101 standard. The most recent NI 43-101 technical report is titled "Updated Mineral Resource Estimation for the Marimaca Copper Project, Antofagasta Region, Chile," with an effective date of May 2023. JORC Code Reporting (2025 MRE): The 2025 Mineral Resource Estimate (2025 MRE) is the first version to be reported under the JORC Code (2012). SRK Consulting (Australasia) Pty Ltd acted as the Independent Technical Expert, preparing the resource estimate included in Annexure D of the technical report. Data Consistency: The 2025 MRE uses exactly the same drillhole data and estimation approach as the 2023 NI 43-101 Mineral Resource. JORC Compliance & Documentation: The JORC Code (2012) Table 1 for the 2025 MRE is provided in Appendix A of the Independent Technical Expert’s Report. This appendix includes: Drill collar locations Hole orientations Significant and high-grade intervals Summary of nearby and near-mine exploration drilling Material Significance: The 2025 MRE represents the Company’s primary material asset. Further details of the 2025 MRE and the Marimaca Copper Project are available in the Independent Technical Expert's Report in Annexure D and the Chilean Solicitor's Report in Annexure E. 8.60 Project Status (source: Prospectus) A Definitive Feasibility Study (DFS) is in progress. Environmental permitting submitted for copper cathode production. Expected to be a significant near-term copper supplier. 9.0 Sierra de Medina Project – Summary The Sierra de Medina Project concessions are located about 85 km north-northeast of Antofagasta and roughly 28 km east of the Marimaca Copper Project. This project includes four exploration activity centers (prospects): Pías, Antennas, Pampa Medina, and Madrugador, as illustrated in Figure 2 below. Excluding the Pampa Medina and Madrugador regions, the Sierra de Medina Project consists of 55 mining concessions and spans approximately 14,361 hectares. The Pampa Medina area consists of 12 mining concessions covering around 144 hectares. The Madrugador area includes 10 mining concessions and covers about 852 hectares. Figure 2: Sierra de medina Project Areas. (source: Prospectus) 9.10 Overview Location: ~85 km north-northeast of Antofagasta ~28 km east of the Marimaca Copper Project Exploration Prospects: The project contains four main prospects: Pías Antennas Pampa Medina Madrugador Total Concessions & Area: Core Project (excluding Pampa Medina & Madrugador): 55 mining concessions Covers ~14,361 hectares Held by ICAL, a Marimaca subsidiary Pampa Medina Area: 12 mining concessions ~144 hectares Held by SCM Elenita MCAL has a purchase option (dated 8 August 2024) under Article 169 of the Chilean Mining Code Madrugador Area: 10 mining concessions ~852 hectares Held by SLM Juanita and SLM Madrugador MCAL has a purchase option (dated 9 December 2024) under Article 169 of the Chilean Mining Code 9.20 Location, Access & Infrastructure The project benefits from similar infrastructure and access as the Marimaca Copper Project, due to its proximity (~28 km east). 9.30 Mineral Tenure Ownership and options for each area are clearly defined: ICAL: Core 55 concessions SCM Elenita: Holds Pampa Medina – under option to MCAL SLM Juanita & SLM Madrugador: Hold Madrugador – under option to MCAL Additional legal and tenement details are available in: Annexure E – Chilean Solicitor’s Report Annexure F – Tenement Schedule 9.40 Infrastructure and Mining Hub Overview (source: Prospectus) Proximity to Key Cities & Infrastructure: Easily accessible from Antofagasta and Mejillones via a well-maintained multi-lane highway. Antofagasta International Airport is just 45 km from the project. Final access is via maintained dirt roads from the paved B12 road, which connects to the Antofagasta–Tocopilla Route. Geographic & Environmental Context: Located ~39 km north of the Tropic of Capricorn, in the Cordillera de la Costa range. Elevation ranges from 400 m to 1,000 m above sea level. Dry desert climate, with minimal vegetation—except where irrigation or the coastal Camanchaca sea mist supports growth. Average rainfall is just 2–3 mm annually, though rare storms can deliver 12–30 mm. Conditions are suitable for year-round mining operations. 10.0 Samso Concluding Thoughts Marimaca Copper Corp. is an interesting IPO as it is bringing over a fairly well-established porphyry project into the ASX. Table 2 is a table that shows a comparison between the two projects in the company and it is clear that the two projects are at very different stages. Table 2: Comparing major attributes of the Marimaca Copper and Sierra de medina projects. Feature Marimaca Copper Project Sierra de Medina Project Location ~45 km from Antofagasta Airport ~85 km north-northeast of Antofagasta ~39 km north of the Tropic of Capricorn ~28 km east of Marimaca Copper Project Access Paved highways + dirt roads Similar infrastructure and access to Marimaca Main Focus Copper oxide & secondary sulfide deposit Early-stage exploration across 4 prospects Exploration Stage Advanced – NI 43-101 & JORC Mineral Resource defined Early exploration – concessions and option agreements in place Resource Status 2025 MRE under JORC (same as 2023 NI 43-101) No public resource estimate yet Total Area Not specified here (focused deposit area ~1,800m × 500–700m) ~15,357 hectares total (combined from 3 areas) Ownership Held by Marimaca Copper and its subsidiaries Mix of held and optioned concessions under MCAL Legal Framework NI 43-101 and JORC Code (2012) Chilean Mining Code – Article 169 for option agreements Key Prospects N/A (single consolidated deposit) Pías, Antennas, Pampa Medina, Madrugador As I mentioned earlier, the main reason for having a look at Marimaca Copper Corp is the Marimaca Copper project, which appears to be on a short timeline to potentially join the ranks of copper producers. Mining the oxides and treating the oxides is a great way to step into the copper-producing world in a shorter timeline. This is what the likes of Cyprium Metals Limited (ASX:CYM) were trying to achieve before the rising interest rate put an end to that concept. The company then changed management, and it has struggled to bring back the mojo. It is the lack of success with projects that help new projects such as Marimaca look attractive. Jurisdictions like South America are geared for business such as what Marimaca Copper Corp. is endeavouring to manifest. Chile, Peru, and Argentina are the mecca for such projects. The lack of funding opportunities in Northern America is creating some great opportunities for ASX investors. Whether this project will become economic will be part of this process of due diligence and patience. I would think that a Heap Leaching process would be a great way for the oxide ores, which would allow the question of economic viability a much greater chance of success. A perfect arid climate, like Australia's, is ideal for any heap-leaching ideas. I know this has been a long list of details, but I think this is a great way to summarise the information from the prospectus. Like always, DYOR and happy investing. To support our independent nature of our work, please head over to our Support Page and give us a helping hand in any of the ways listed. This is a new initiate for the Samso Platform, and it was always the concept of Samso when we started this journey in 2018. Reference: [1- Luis Oviedo] Updated Mineral Resource Estimation for the Marimaca Copper Project, Antofagasta Region, Chile Luis Oviedo, P.Geo. NCL Ingeniería y Construcción SpA Marcelo Jo MJO Engineering and Consultants in Metallurgy SpA Effective date: May 18, 2023 Report date: June 26, 2023 Cover photo: Abandoned bus in San Pedro de Atacama (Unsplash), Pablo Garcia Saldaña pagsa_. CC0, via Wikimedia Commons (https://commons.wikimedia.org/wiki/File:Abandoned_bus_in_San_Pedro_de_Atacama_(Unsplash).jpg). Reproduced photograph, shown faded under a navy overlay on the article thumbnail. Disclaimer The information or opinions provided herein do not constitute investment advice, an offer or solicitation to subscribe for, purchase or sell the investment product(s) mentioned herein. It does not take into consideration, nor have any regard to your specific investment objectives, financial situation, risk profile, tax position and particular, or unique needs and constraints. Read full Disclaimer. Share to Grow: Your Bonus Samso has just released an eBook: How to Add Value to your Share Portfolio A lesson on geological models sought by mining companies that gives insight and an understanding of which portfolios are better - and potentially more lucrative – investments. Click here to download this eBook. Download eBook If you find this article informative and useful, please help me share the information. I try and write about topics that are interesting and have the potential to be of investment value. It is not easy to find stories that fit those parameters. If you or your organisation see the benefit of what Samso is trying to achieve and have a need to share your journey, please contact me at noel.ong@samso.com.au. About Samso Samso is a trusted platform that equips dedicated investors with up-to-date industry knowledge and insights from top CEOs and thought leaders. By staying informed on business advancements and market trends, investors can enhance their financial decisions through a combination of expert guidance and their own research.

The Chalice Mining Limited (ASX:CHN) narrative has centered around the Julimar discovery since early 2020. I would suggest that this discovery might have sparked two years of prosperity for small cap companies. Julimar, now better known as Gonneville (Figure 1), is a discovery of platinum group elements (PGEs), nickel, copper, cobalt, and gold, located just 70km north-east of Perth, near a town called Toodyay. Figure 1: The Gonnevelle wheatbelt scenery. (source: Chalice Mining Limited) The Chalice Mining journey since the 2020 discovery has gone from being the trailblazer to one that is now struggling for a new identity. Chalice was a favourite of the ASX small caps, with support coming from the retail and the institutional end. Raising money was not an issue, and management was praised for the innovation in making the discovery. Pricing sentiment for PGE (Platinum Group Elements), nickel, and copper was strong, and the general market sentiment for the company was strong in the market. In the early days, there were rumours of the grade of the deposit being sub-economical; hence, comments started to circulate that the processing cost would not be friendly to being a profitable business. History will show that the scoping study put an end to the speculation, and the share price chart in Figure 2 clearly shows what the market thought of the study. You can see the double dip in the share price chart, and that kind of indicated the whole market speculation process. I felt that this was worth a review because when I was at the Future Facing Commodities Conference in Singapore, I listened to the Chalice presentation and was very surprised at the messaging of the new Flow Sheet. I am curious if this could be the turning point for Chalice. The chapters below will help readers move around this review: 1.0 History 2.0 The New Chalice Mining Story 3.0 Resources 4.0 The New Flow Sheet - The Potential Game Changer. 5.0 Why Palladium? A Contrarian Opportunity in a Changing Automotive Market 6.0 De-risked and Development-Ready 7.0 The Greater Story for Chalice Mining. 8.0 Leadership with Proven Track Record 9.0 Sustainability at the Core 10.0 Investment Highlights and Upcoming Catalysts 11.0 Concluding Comments From Samso 1.0 History Over the last five years, the project has gone from being the darling of the industry to one that has had serious doubts about its economic viability, and the company is now trying to reverse the negative sentiments that have developed. As you can see below in Figure 2, the share price journey will give readers a great understanding of the journey. The drastic decline in share price came about when the company released its scoping study that showed an estimated higher capital cost and a longer time for first production. In the early days post-discovery, I had many conversations with industry participants, and the general consensus was that the numbers may not stack up. The release of the study confirmed this narrative, and the broader market was spooked and started the share price downfall. Figure 2: The Chalice Mining Limited share price chart as of 5th April 2025. (source: commsec) 2.0 The New Chalice Mining Story At the Future Facing Commodities conference in Singapore, I listened to the Chalice Mining presentation, and it looks like there is a new phase of development for the Gonneville project. Chalice Mining Limited (ASX:CHN) is now positioning itself with the new phase at the heart of the global energy transition with its flagship Gonneville Project. The Gonneville project is being described by Chalice Mining as the largest undeveloped palladium-nickel-copper resource located in the world’s best mining jurisdiction—Western Australia's Wheatbelt region (Figure 3). The company is marketing itself as delivering a rare combination of scale, jurisdictional safety, and critical mineral exposure—precisely what investors are seeking amid today’s global supply chain and geopolitical uncertainties. Figure 3: Gonneville PGE-Ni-Cu-Co Project. (source Chalice Mining Limited) 3.0 Resources Over the last 5 years post-discovery in 2020, there has been no doubt about the potential of a resource; the question has always been about the grade and, hence, the ability of the company to create an economical deposit for the market. As of the time of writing, April 2025, the project has the resources listed below: 17 Moz of contained Pd-Pt-Au (3E) · 960 kt nickel, 540 kt copper, 96 kt cobalt · 660 Mt @ 0.79g/t 3E, 0.15% Ni, 0.083% Cu This deposit sits at surface (Figure 4), allowing for low-cost, shallow open-pit mining, with high-grade zones supporting strong early cash flow. A recent flowsheet breakthrough now allows for simplified, standard flotation and CIL processing, reducing capital and operating costs significantly. Figure 4: The tier-1 scale Gonneville Resource. (source: Chalice Mining Limited) 4.0 The New Flow Sheet - The Potential Game Changer. In my eagerness to understand where Chalice is with its business, I was pleasantly surprised by the narrative of the story. Prior to the conference, I was not thinking that there was going to be a real solution to the demise of the Chalice story, but I think the potential recovery could be in the making with the "New Flow Sheet" concept. As I am not a metallurgist nor am I well versed with the ins and outs of the Gonneville story, looking in as a retail investor, I am thinking that this new way of processing could well be the magic pill to resurrect the fortunes of Chalice Mining. According to Chalice, this is the game changer for their business, and that is the new flow sheet to unlock the economical value of the Gonneville deposit. Eliminates costly hydrometallurgical steps Reduces pre-production capex by ~A$260M Cuts operating costs by ~A$4.10 per tonne Enhances margins for a bulk mining strategy The company estimates that Gonneville will be in the second quartile of the global PGE cost curve, making it one of the most competitive PGE projects in the world. Well, if this is to be true, I would think that investors need to do some serious DYOR, as if this story does turn around its ability to produce an economically viable process, this will be a nice place to put some hard-earned cash. 5.0 Why Palladium? A Contrarian Opportunity in a Changing Automotive Market The prevailing narrative about the death of internal combustion engines (ICEs) has proven premature (Figure 5). While battery electric vehicle (BEV) adoption is flattening, hybrid vehicle production is accelerating, especially in North America, Europe, and China. These hybrids require even more palladium than ICEs, sustaining demand even as BEV growth slows. Figure 5: Battery electric vehicle adoption has reached a plateau and demand for ICE/hybrid vehicles continues to grow (Source: China Passenger Car Association (CPCA), company data, Motor Intelligence). If anyone has visited a car dealer that is not a sole EV car dealer, you will hear the same story being told, and that car manufacturers are moving away from full electrification. The reality has set in that the world of total vehicle electrification is not practical. Goodness me, they only realised that now? Thank goodness. The Trump 2.0 administration in the US has repealed BEV incentives, and similar rollbacks are occurring in Europe. Hence, as the world re-equilibrates itself to a new transition of "Not 100% Vehicle Electrification," Chalice sees long-term upside in palladium as supply remains highly concentrated in Russia (45%) and South Africa (40%), both facing ageing infrastructure, geopolitical risk, and underinvestment. Recycling volumes are dropping amid low palladium prices, amplifying potential supply deficits. Gonneville offers one of the only large-scale palladium development exposures in a safe jurisdiction, offering investors a unique hedge against geopolitical and supply chain volatility. 6.0 De-risked and Development-Ready One of the key developments for Chalice is that since discovery, Chalice has delivered rapid progress in the form of acquiring land and regulatory approvals. In a way, the downturn in its share price is minimised as the lengthy process of gaining approvals would have created a period of "Nothing Exciting" for the market anyway. One of the fortunate timings for the company is that they raised a lot of money prior to its share price heading south. This has allowed the company to slowly work itself into a stronger position, and if the new narrative is correct, this is a godsend. Here is a list of Chalice's achievements: Acquired the 22km² farmland that hosts the resource Achieved both Strategic and Major Project Status from WA and Federal governments Defined mine infrastructure corridors, completed TSF design, and secured strong community and regulatory support Confirmed saleable products across all ore types and metallurgical domains As Chalice moves into another journey to get into production, the financing discussions are expected to begin in H2 2025, with the Final Investment Decision (FID) targeted in 2027. Chalice is currently fully funded to complete its Pre-Feasibility Study (PFS) and ongoing exploration, with A$90 million in cash and listed investments on the balance sheet. Massive Exploration Upside in the West Yilgarn Province. 7.0 The Greater Story for Chalice Mining. While Gonneville is a standout asset in its own right, Chalice holds ~10,000km² of tenements in the West Yilgarn Province, a previously underexplored region now shown to host major mineral systems (Figure 6). Key developments: Over 40 copper-gold and nickel-PGE targets defined Active drill campaigns underway at Barrabarra, Northam, and Kings Gold-in-soil anomalies discovered (e.g., 15km anomaly at Recherche West) Figure 6: Chalice has defined >40 Cu-Au-Ag and Ni-Cu-PGE targets in the West Yilgarn Province. (source: Chalice Mining Limited). As the market sentiment for the company swayed away from Cahlice over the last 12 months, the creation of attention towards other projects was predicted. The company had to do something to create attention, and with the prevailing gold sentiment, it is an obvious thing to do for Chalice. The new sentiment for Chalice was the Barrabarra drilling, and you can see some of that below in Figure 7. Figure 6: Chalice has Gold-copper focus at Barrabarra. (source: Chalice Mining Limited). Typically, the narrative is that these targets could potentially lead to multiple Tier-1 discoveries, and Chalice is applying a modern, systematic exploration approach to unlock value across this new frontier. Personally, the small-cap sector for the majority of the "new-age" commodity players will take time to recalibrate their position in the market. Lithium and the Rare Earth players have done their run, and they are all now narrating new stories. Chalice is the same, but as I have mentioned, the new "Flow-Sheet Story" may create some new thoughts. 8.0 Leadership with Proven Track Record The Board of Chalice is well credentialed, so there do not look like any real issues, and in my opinion, most Boards are competent and have the sincere drive for success, which is always aligned with their own personal interests. Hence, in a way, if the Board is listed with lots of incentives, a retail investor should be in some way comfortable that their potential investments will be aligned with the interests of the Board. Here are the current directors of Chalice Mining: Derek La Ferla, Non-Executive Chair – seasoned ASX 200 director, formerly with Sandfire Resources and Poseidon Nickel Alex Dorsch, CEO – former McKinsey consultant with strong project development and capital markets experience Garret Dixon, NED – ex-Alcoa and mining contracting executive with 30+ years in global operations Richard Hacker, NED – strategic finance expert, former Chalice CFO Supported by leaders across geology, metallurgy, ESG, and corporate development, Chalice has a team capable of delivering exploration success and project execution. 9.0 Sustainability at the Core As with all astute and aspiring miners, Chalice is proactively integrating ESG into every stage of development: Zero lost-time injuries or major safety events 38% women in workforce (above industry average) A$10M+ contributed to local communities since 2021 Working with 70+ Traditional Owners Commitment to no net biodiversity loss via the Gonneville Biodiversity Strategy The company is also aligning its reporting and planning to the Task Force on Climate-related Financial Disclosures (TCFD) framework. 10.0 Investment Highlights and Upcoming Catalysts To conclude this review, the main reason one would look at Chalice as an investment is that the company does present a rare combination of Tier-1 asset scale, financial stability, and growth potential. Key value drivers ahead include: ✅ Palladium market recovery due to ICE/hybrid demand and constrained supply ✅ Completion of Gonneville PFS (mid-CY2025) ✅ Financing and offtake milestones (from H2 2025 onward) ✅ Exploration results across a major new mineral province ✅ Continued strong government backing and streamlined approvals 11.0 Concluding Comments From Samso The concept of Samso Media and our content is to highlight potential investing concepts that arise because there is some angle that general media do not highlight. The mainstream content that retail investors tend to get for free is always more of highlights of the company rather than bringing to light the good, the bad, and the ugly. For these reasons, when Samso looks at Chalice Mining now, I am thinking if this could be the catalyst or the key to Chalice halting its downward value crisis. There is a lot of bearish sentiment in the sector, and it is not necessarily at the company but more at the sector that it is in as well. The sliding nickel price and the lack of interest in the majority of the non-gold sector are definitely not helping companies like Chalice Mining. Samso is looking for the counter-cyclical moments. As retail investors, we are always the last to know and the last to leave the sinking ship. Retail investors always take the highest risk while being told that this is the best time to take the risk. To me, if Chalice is genuinely able to turn around the cost of processing and is able to make Gonneville work, and coupled with the trend of a rising use of hybrid vehicle systems, then I think Chalice could be in for a change in fortune. Mining projects are not created; they are discovered, and they take time to be economical before they are able to produce. DYOR and check out my thoughts. I hope this helps readers gain some time in trying to understand a potential value proposition for something like Chalice Mining Limited. To support our independent nature of our work, please head over to our Support Page and give us a helping hand in any of the ways listed. This is a new initiate for the Samso Platform, and it was always the concept of Samso when we started this journey in 2018. Cover photo: Pentlandite with pyrrhotite (GeoDIL number - 1209), Darla Sondrol. CC0, via Wikimedia Commons (https://commons.wikimedia.org/wiki/File:Pentlandite_with_pyrrhotite_(GeoDIL_number_-_1209).jpg). Reproduced photograph, shown faded under a navy overlay on the article thumbnail. Disclaimer The information or opinions provided herein do not constitute investment advice, an offer or solicitation to subscribe for, purchase or sell the investment product(s) mentioned herein. It does not take into consideration, nor have any regard to your specific investment objectives, financial situation, risk profile, tax position and particular, or unique needs and constraints. Read full Disclaimer. Share to Grow: Your Bonus Samso has just released an eBook: How to Add Value to your Share Portfolio A lesson on geological models sought by mining companies that gives insight and an understanding of which portfolios are better - and potentially more lucrative – investments. Click here to download this eBook. Download eBook If you find this article informative and useful, please help me share the information. I try and write about topics that are interesting and have the potential to be of investment value. It is not easy to find stories that fit those parameters. If you or your organisation see the benefit of what Samso is trying to achieve and have a need to share your journey, please contact me at noel.ong@samso.com.au. About Samso Samso is a trusted platform that equips dedicated investors with up-to-date industry knowledge and insights from top CEOs and thought leaders. By staying informed on business advancements and market trends, investors can enhance their financial decisions through a combination of expert guidance and their own research.