The E79 share price closed at 3.4 cents on 22 September 2026, 61.9 per cent above its July low. For two months the stock traded between 2.1 and 2.9 cents, and more than half of the rise came in one session. The E79 Gold Mines share price has risen since the middle of July. Every figure is as at the close of Tuesday 22 September 2026, from the daily trading record for E79, checked against the ASX company page for E79 [R1]. For scale, 353,555,680 shares on issue at 3.4 cents is a market value of about A$12.0 million, which is Samso's arithmetic. Samso has followed E79 Gold Mines since a Coffee with Samso interview in March 2025, and the earlier coverage of its projects is listed at the end. This is a Samso Chart Read, the series on how to read stock charts. Samso takes the share price on its own terms, states each measure with the window it is taken over, explains what the measure is, and says what would make the reading wrong. There is no Samso Call in a Chart Read, and no entry, exit, target or position size. Samso does not tell anyone where to trade a price. How to use this piece Every technical term is explained in plain English where it first appears, and all of them are collected again in the vocabulary box at the back. TABLE 01 in section 4.00 puts every measure in one place with what it reads. The bracketed numbers, like [R2], are sources. The reference list at the end names the document behind each one, so any figure here can be checked against the record it came from. 1.00 THE FIRST IMPRESSION. The Move Since the July Low FIGURE 01 plots the closing price, the price set at the end of each day's trading, for the last two years [R2]. The lower panel enlarges the months since June 2026. On 21 July 2026 E79 closed at A$0.021, its lowest close since 24 September 2025. On 22 September it closed at A$0.034. That is a rise of 61.9 per cent over 45 trading sessions. A session is one trading day. Up to the close of 21 September the stock had gained 28.6 per cent. The 22 September session added another 25.9 per cent on its own. In cents, 0.7 of the 1.3-cent rise came in that one day. The close of A$0.034 is the highest since 18 May 2026. 2.00 THE RANGE. Support, Resistance and the Rising Lows From early August to mid-September the price moved inside a band of less than one cent. It closed at A$0.028 on six trading days between 7 August and 15 September and never closed above it. The highest price reached in that time was A$0.029, on 24 and 28 August. The lowest closes rose. The lowest close in July was A$0.021, in August A$0.023 and in September A$0.024. A price a stock keeps failing to close above is called resistance. A level it keeps holding above is called support. A rising floor under a flat ceiling is the shape the charting tradition calls an ascending triangle. The pattern is described in Robert D. Edwards and John Magee's Technical Analysis of Stock Trends, 1948, one of the standard texts of chart reading [R7]. The name describes a shape and does not forecast what follows. Whether it was an ascending triangle can only be judged after the price moves. The ASX sets the smallest amount a price can move, called the price step or tick. Below 10 cents it is 0.1 of a cent [R6]. The whole ceiling, A$0.028 to A$0.029, is one price step. At 2.8 cents one step is 3.6 per cent of the price. 3.00 THE BREAK. The 22 September Session On 22 September E79 opened at A$0.028, traded between A$0.028 and A$0.034, and closed at A$0.034, the top of the day's range. That was seven price steps above the previous close of A$0.027. The daily record does not show how many shares traded at 3.4 cents or whether the closing auction set that price. It traded 1,281,631 shares. That is 12.8 times the median volume of the 20 sessions before it, which was 100,000 shares. The median is the middle value of a set once it is lined up in order. It describes an ordinary day better than an average, which one busy day drags upwards. The close was above A$0.029, the highest price of the previous 55 sessions. That level is the upper line of a Donchian channel, named for Richard Donchian, a commodity trader commonly credited as one of the earliest to follow a written set of rules. Curtis Faith's Way of the Turtle, 2007, describes the channel in use [R8]. A close outside the channel is what traders call a breakout, meaning a move out of the range rather than a bounce inside it. The heaviest session of the whole period came a week earlier. On 15 September 1,747,775 shares traded and the price closed unchanged at A$0.028, right at the ceiling. Traders read heavy trading with no price change at a ceiling as sellers being met by buyers until the sellers run out. The price then eased to A$0.026 over the next three sessions. That is an interpretation of the pattern. The trading record does not say who bought or who sold. The ASX announcements record for E79, read on 23 September 2026, shows nothing lodged since 9 September [R1]. The 22 September session did not follow a company release. Trading on 23 September was under way when this was written and is not included. 4.00 THE MEASURES. Every Measure in One Place TABLE 01 lists each measure the piece uses, what it is in plain English, and what it reads at the close of 22 September 2026. 5.00 THE MOVING AVERAGES. What the 10-Day, 50-Day and 200-Day Averages Say A moving average is the average of the closing prices over a set number of past days, worked out again each day. It smooths out the daily jumps so the direction underneath shows. A longer window moves more slowly. Reading the 200-day average as the divide between a rising and a falling market is a market convention. It has a long history of use and a mixed record in testing. On no-trade days the record repeats the previous close, and every average here counts those days. FIGURE 02 draws three averages against the price for the last 250 sessions. The 10-day exponential moving average (EMA) is at A$0.0278 and the price is 22.4 per cent above it. Exponential means recent days count for more than older ones, so the line turns quickly. The 50-day simple moving average (SMA), where every day counts equally, is at A$0.0255 and the price is 33.1 per cent above it. That line is rising, 2.7 per cent higher than 20 sessions ago. The 200-day simple average is at A$0.0288. The price closed 18.2 per cent above it, the first close above that line since 4 June 2026. The line itself is flat. Over the last 120 sessions it has stayed between A$0.0275 and A$0.0288, and it is 0.6 per cent higher than 20 sessions ago. The 50-day average is still below the 200-day. Traders call the 50-day crossing above the 200-day a golden cross. On this chart it has not happened. 6.00 MOMENTUM AND TREND STRENGTH. What MACD and ADX Say Momentum measures show how fast a price is moving rather than where it is. MACD, short for moving average convergence divergence, tracks the gap between a 12-day and a 26-day exponential moving average. It then compares that gap with a nine-day average of itself, called the signal line. It is widely attributed to Gerald Appel, an American money manager and newsletter writer, who developed it in the late 1970s. He set it out in his booklet The Moving Average Convergence-Divergence Trading Method [R9]. FIGURE 03 shows MACD at +0.00087 against a signal line of +0.00032. MACD crossed above its signal line on 14 September and moved back above zero the same day. Above zero means the shorter average has moved above the longer one. ADX, the average directional index, measures how strong a trend is without saying which way it points. Direction comes from two companion lines, the directional indicators, +DI for upward pressure and -DI for downward. All three come from J. Welles Wilder's New Concepts in Technical Trading Systems, 1978, the book that also gave the market the relative strength index [R10]. Calling a reading above 25 a trend is a convention, and sources give slightly different cut-offs. FIGURE 04 shows ADX at 17.60. It has been under 25 for 113 sessions. The two direction lines are far apart, with +DI at 72.29 against -DI at 23.56. Most of that gap opened on 22 September. Recent pressure points up, and the strength reading still describes a range. ADX is smoothed twice over 14 days, so it is slow to respond to one large session. No-trade days also enter ADX, +DI and -DI. They narrow the average daily range, which makes one large session move the direction lines further. 7.00 THE TURNOVER. Volume and Turnover Since the July Low Volume is the number of shares traded. Turnover is the dollar value of them. On a share priced in cents, turnover is the better guide, because a large number of cheap shares can still be a small amount of money. FIGURE 05 plots daily volume for the last 120 sessions with the 20-day median drawn across it. Median daily turnover over the 20 sessions before 22 September was A$2,600, and five of those 20 had no trades at all. Over 60 sessions the median was A$1,161, with 18 no-trade days. About A$320,600 of stock changed hands in the 45 sessions from 22 July, and about A$43,600 of it on 22 September. Both are Samso's arithmetic at each day's closing price, so they overstate a day like 22 September, when some shares traded lower. Since the July low, 6.59 million shares traded on the 15 days the price rose and 2.75 million on the 11 days it fell. Sessions that closed unchanged, including 15 September, are in neither count. Traders call heavier trading on up days accumulation. The term describes volume. The record does not show who was buying. Releases the company marked price-sensitive, meaning likely to move the share price, came on five days between 21 July and 22 September [R1]. Two of those days had no trades at all. They were 29 July, the airborne geophysical survey release, and 21 August [R4]. The quarterly reports on 30 July and the 27 August release [R5] came on sessions that traded 4,000 shares each. Only the Cue heritage protection agreement on 3 August came with heavy trading, 1,653,829 shares and a 9.1 per cent rise [R3]. Most of the rise since July came on days without a release. The other way to read this A range of eight price steps on a few thousand dollars a day is a thin base for a pattern. On a stock this lightly traded, one or two holders can set the ceiling and one buyer can clear it. The ascending triangle may describe who happened to be trading rather than a change in the market's view. And until the price holds above A$0.029 on more than one day, the break is a single observation. 8.00 WHAT WOULD CHANGE THIS READING. The Old Range, Turnover, ADX and the 50-Day and 200-Day Averages Closes back inside the old range. A close at or below A$0.028 would put the price back under the ceiling it cleared on 22 September. The break would then read as one session rather than a change in the range. Turnover above the median for several sessions. Several sessions in a row above the 20-day median, without a release behind them, would say the interest is more than one day's. ADX rising through 25. A strength reading above 25 with +DI still above -DI would be the first time since April that this measure described a trend. The 50-day average crossing the 200-day. Until then, the 200-day average does not show the rise that the shorter averages show. 9.00 SAMSO CONCLUDING COMMENTS. What the E79 Share Price Chart Supports The chart supports the view that E79 has moved up since July. The lowest close has risen each month, the price has closed above a ceiling it failed to clear six times, and it is above all three moving averages. Up-day volume has run well ahead of down-day volume. The chart also shows limits to that reading. More than half of the rise came in one session, and the ceiling it cleared is one price step wide. ADX has not described a trend in 113 sessions and the 200-day average has not turned. The move has run on median turnover of one to three thousand dollars a day. Samso Take The rising lows since July are what give this chart some substance. They were built slowly, over two months of thin trading. The 22 September session is what made the chart look different. Now that the price has cleared 2.9 cents, will trading stay heavier, or go back to a few thousand dollars a day? Previous Samso Coverage of E79 Gold Mines Every earlier Samso post on E79 Gold Mines, newest first. The gold entry is the Coffee with Samso interview rather than a written piece. THE CUE GOLD PROJECT 24 FEB 2026 E79 Gold Mines Defines 40+ Gravity Drill Targets at Cue Gold Project. The high-resolution gravity survey at Cue and the drill targets it produced. 1 JAN 2026 E79 Gold Mines Exercise Option at the Cue Gold Project. E79 exercising its option over Cue and the start of exploration there. 5 OCT 2025 E79 Gold Acquire Cue Gold Project in WA's Day Dawn Goldfield. The agreement to acquire the Cue Gold Project, south of the Day Dawn goldfield. LAVERTON SOUTH, MOUNTAIN HOME AND THE INTERVIEW 21 NOV 2025 E79 Gold Mines Updates Air-Core Assays and Gold Nugget Discoveries At Laverton South. Air-core assay results and gold nugget finds at Laverton South. 31 OCT 2025 E79 Gold Mines Finds High-Grade Rock Chips At Mountain Home Copper-Gold Footprint. Rock chip results at the Mountain Home copper-gold project in the Northern Territory. 3 OCT 2025 E79 Gold Mines Discovers Two Coherent Gold Anomalies at T14 South. The final air-core assays at T14 South, Laverton South. 24 SEP 2025 E79 Gold Mines updates Strong Gold Hits at T14 South Project. Earlier drilling results from T14 South. 6 JUN 2025 E79 Gold Mines Sharpens the Drill Bit in Laverton South. Drilling plans at Laverton South. 20 MAY 2025 E79 Gold Mines Unveils New Drill Targets at Laverton South. New drill targets defined at Laverton South. 3 MAY 2025 E79 Gold Secures 100% Ownership of Mountain Home Project with Reduced Royalty Terms. E79 moving to full ownership of Mountain Home. 1 MAR 2025 Coffee with Samso - E79 Gold Mines Limited (ASX:E79) - Mineral Explorer Perfectly Primed for Value Creation. The Coffee with Samso interview with E79 management. The vocabulary, in plain English Closing price The price set at the end of each day's trading. On the ASX it is set by an auction after normal trading ends, not simply by the final trade. Trading day, or session A day the exchange is open. There are about 254 in a year, so 120 sessions is roughly six months and 20 is roughly a month. Support and resistance Support is a price a stock keeps holding above. Resistance is a price it keeps failing to close above. Both describe where trading has stalled before. Neither is a promise about where it stalls next. Ascending triangle A chart shape with a flat ceiling and a rising floor. It is described in Robert D. Edwards and John Magee, Technical Analysis of Stock Trends, 1948, one of the standard texts of chart reading. The name describes a shape, not an outcome. Breakout A price closing clear of the range it has been trading in, usually on heavier trading than normal, which traders read as a possible start of a move. Donchian channel The highest high and the lowest low over a set number of past sessions, drawn as two lines. Named for Richard Donchian, a commodity trader commonly credited as one of the earliest to follow a written set of rules. Curtis Faith's Way of the Turtle, 2007, describes the Turtle traders using the 55-day version. Moving average The average closing price over a set number of past days, worked out again each day. Reading the 200-day as the divide between a rising and a falling market is a market convention with a long history of use and a mixed record in testing. Exponential moving average A moving average that counts recent days for more than older ones, so it turns faster than a simple average of the same length. Golden cross The 50-day average crossing above the 200-day. A widely watched convention. MACD Short for moving average convergence divergence. The gap between a 12-day and a 26-day exponential moving average, compared with a nine-day average of itself called the signal line. Widely attributed to Gerald Appel, an American money manager and newsletter writer, in his booklet The Moving Average Convergence-Divergence Trading Method. Samso has not verified a first publication year. ADX, or Average Directional Index A measure of how strong a trend is rather than which way it points, from J. Welles Wilder, New Concepts in Technical Trading Systems, 1978. The same book introduced the relative strength index, one of the most used measures on a trading screen. Calling a reading above 25 a trend is a convention, and sources give slightly different cut-offs. +DI and -DI The two directional indicators, the companion lines to ADX, also Wilder's. +DI measures upward pressure and -DI downward. Whichever is higher is the direction the recent pressure points. Volume and turnover Volume is the number of shares that changed hands in a day. Turnover is their dollar value. On a share priced in cents, turnover is the better guide to how much trading there really was. Accumulation Chart language for more volume on days the price rises than on days it falls. It describes the volume. The trading record does not say who was buying. Median The middle value once every day in a window is lined up in order. It describes an ordinary day better than an average, which one very busy day can drag upwards. Price step, or tick The smallest amount a price can move. The ASX sets it by price band, and below 10 cents it is one tenth of a cent. References and sources Each bracketed number in the text, such as [R2], points to the entry with that number below. Prices and the number of shares traded cover every trading day from 7 October 2021, the company's first day of quotation, to 22 September 2026, which is 1,254 of them. Dates are the exchange's own, in Sydney time. The previous close, the five-day volumes, the shares on issue and the 52-week range were cross-checked against the ASX company page for E79 on 23 September 2026 and match. No bar was taken on the day it traded, so the 23 September session is excluded. The adjusted close equals the close on all 1,254 bars and the corporate-action record is empty, so nothing in the price line has been restated. Every chart is an original Samso illustration of sourced data, and no company figure or diagram has been reproduced. Every percentage, median and dollar figure in the piece is Samso's arithmetic on that price series. The price steps are from the ASX. Market-sensitive figures are stated as at the close of 22 September 2026 and change daily. [R1] ASX, E79 Gold Mines Limited (E79) company page and market announcements, asx.com.au, read 23 September 2026. Source for shares on issue, the 52-week range, the previous close, the five-day volumes used as a cross-check, and the announcement titles, dates and price-sensitive flags. [R2] Daily price and volume bars for E79, 7 October 2021 to 22 September 2026, 1,254 trading days, retrieved 23 September 2026 and dated in Sydney time. The price series behind every figure, TABLE 01 and the cover. [R3] E79 Gold Mines, Cue Gold Project Heritage Protection Agreement Executed, ASX announcement, 3 August 2026. [R4] E79 Gold Mines, E79 Advances Towards Initial Drill Program at Cue Gold Project After Achieving Key Milestone, ASX announcement, 21 August 2026. One of the price-sensitive releases counted in section 7.00. [R5] E79 Gold Mines, E79 Expands Cue Gold Project with Option Secured over Strategic Tenement, ASX announcement, 27 August 2026. One of the price-sensitive releases counted in section 7.00. [R6] ASX, Australian equities trading, asx.com.au. Source for the minimum price steps, which are 0.1 cent up to 10 cents, 0.5 cent from 10 cents to $2.00, and 1 cent at $2.00 and above. [R7] Robert D. Edwards and John Magee, Technical Analysis of Stock Trends, 1948. One of the standard texts of chart reading, where support, resistance and the triangle patterns are described. Its place in bringing moving averages into the charting canon is widely attributed. [R8] Curtis Faith, Way of the Turtle, 2007. The published account of the Donchian channel in a rule-based trading system, including the 55-day break. [R9] Gerald Appel, The Moving Average Convergence-Divergence Trading Method. The widely attributed origin of MACD. The copies in circulation are later reprints and no first publication year has been verified for this build. [R10] J. Welles Wilder Jr, New Concepts in Technical Trading Systems, 1978. The origin of the Average Directional Index, its two directional lines and the relative strength index. 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. Investors can explore our four core platforms: Coffee with Samso Samso Insights Samso News Samso Research 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. 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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, Samso Insights, Samso News and Samso Research are four ways into the same work. Interviews, long-form research, short takes on announcements and company-specific studies. Every one of them is about how to think about investing rather than what to buy. Samso News | www.samso.com.au | An Investor Lens on ASX-Listed Companies Samso News is independent research commentary for general information only. Nothing in this article is financial product advice, and it does not take into account any reader's objectives, financial situation or needs. Figures are drawn from public sources believed reliable at the stated dates but are not guaranteed. 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As investors, we are always looking for the next investment, and this search is one of the most common headaches for all investors, especially those like me, in the retail end of the spectrum. We are always the last to know about the things we need to know, and we are the ones that help the "Purple Circle" create their wealth, and to top it all off, we are also the ones that help them exit their positions. As we enter 2026, there is no doubt that all eyes are on Gold and Silver, and closely followed by Copper. I am confused if eyes are still on Antimony, but I suspect there are fewer looking at that now, as the whole Antimony chatter is getting long in the tooth for most investors. I think the heat may have cooled. Figure 1: The gold and silver price chart as of 7th January 2025 over the last 10 years. (source: macrotrends) The gold and silver price rise has long been seen as a marriage of the best friends (Figure 1). Although the quantum of the prices is significantly different, the way they "copy" each other is like a suckerfish to a whale. Every time you see a whale, you will see the suckerfish. Suckerfish (remoras) on a Whale Shark. (source: Divemagazine.com) The narrative for copper is stronger, and with all the talk of AI and the clean energy transition, copper was always going to appreciate, as it's like the backbone metal of civilisation, like iron ore and the hated oil and gas. There is no doubt in my mind that the value appreciation will continue (Figure 2). It is not a rare metal, but the abundance required makes it critical in the sense of future extraction. Figure 2: The copper price chart over the last 45 years as of 7th January 2025. (source: Macrotrends) I know there will be a lot of views on other metals that are going to play a big role, but I think the ones I have mentioned clearly overshadow the other metals. I have not put lithium up as a clear show stopper because I think the discussion of how lithium or EV is going to change the world is not just co mmon speak. It is not, in my opinion, a revelation anymore. Like Vanadium or High Purity Quartz, these are not old news, and frankly, it does not excite people. A great example is Molybdenum, which is looking like it's going to establish a strong case for all-time high pricing (Figure 3), but the market is not that excited. Anyone who is in the sector has been saying that the market is typically short on supply with an increasing demand for the metal. Figure 3: The molybdenum price chart since 2006. (source: Daily Metals) There has been a lack of investment into new mines and existing mines in the US, and most likely in China, are depleting with no new resources to replenish existing reserves. Does the market get excited? No, in fact, I used to say that the market does not even know how to spell the word. So what Does All This Mean In October 2025, I had a coffee with an associate, and we had a discussion in a cafe that got me thinking that the current gold price run may just be the start of something much larger in scale than I had ever thought would happen in my lifetime. He told me that a Bank in Europe is telling buyers of gold that delivery is a 6-month wait. If this is true, then are we looking at a shortage of major metals? “This isn’t a theme trade. This is a supply-chain reality trade.” Does this mean that the global shortage of these "critical" metals is going to cause the Clean Energy Revolution to take five and slow down, simply due to the fact that there are just not enough materials to build this new world we are being told is coming? As in all supply crunches, does this mean that we are just going to have to accept an increase in metal prices and hence an increase in the pricing of pretty much everything civilisation requires to make our world tick? What if the discussion of cryptocurrencies is all heading to stable coin representation? The last time I looked, the top 67 cryptocurrencies have a market capitalisation of billions, and the top 11 have multiple billions. Now, if all start to go towards stable coins, then the gold price may just be heading higher. The good news is that there is plenty of gold to extract, but the future demand for gold as a hedge for stable coins may change the availability. What happens If The Metal Is Important And Hard To Find, Like Tungsten? In 2012, when I was promoting a tungsten project, one of the exercises was to find and detail projects that I could compare and contrast for my presentations and discussions with shareholders and potential investors. Tungsten sample from the Kirwan Hill Tungsten Project in New Zealand. (source: Samso) AS my research grew deeper, it became apparent that there were not that many operational projects, either in the mining or exploration stage. Interestingly, there were not that many exploration projects. The list below is a summary of the main projects (Figure 4) at that time: Dolphin Tungsten Project — King Island Scheelite Ltd (ASX: KIS) now Group 6 Metals Limited (ASX: G6M) - King Island, Tasmania (Australia). Promoted on the back of a Definitive Feasibility Study (DFS) released in March 2012 and related development messaging. Mt Carbine Tungsten Project — Carbine Tungsten Ltd (ASX: CNQ) now EQ Resources Limited (ASX: EQR) - Far North Queensland (Australia). Promoted through 2012 investor/market materials positioning Mt Carbine as a restart/upgrade tungsten business. Nui Phao Tungsten Project - Masan High-Tech Materials (part of the Masan Group) - Polymetallic deposit with scheelite-hosted tungsten, alongside significant fluorspar, bismuth, and copper mineralisation. Reserves (approximate): ~55–83 million tonnes of ore defined, grading around 0.2–0.21 % tungsten (WO₃) — a very substantial resource base. Watershed Tungsten Project — Vital Metals Ltd (ASX: VML) - North West of Cairns, Queensland (Australia). Promoted in 2012 around feasibility and permitting, including financing to complete DFS work Barruecopardo Tungsten Project — Ormonde Mining plc (LSE: ORM) - Salamanca Province, Spain. Promoted during 2012 as it moved off a completed DFS (Q1 2012) into permitting, funding, and offtake discussions. Sangdong Tungsten Project — Woulfe Mining Corp. (TSX-V: WOF at the time) - South Korea. Promoted strongly in 2012 with a Sangdong Feasibility Study (effective June 2012) and ongoing market communications. There was also a connection to Warren Buffett through his company, IMC International Metalworking Companies (IMC), a subsidiary of Berkshire Hathaway. In 2012, IMC invested significantly in Woulfe Mining Corp. (which owned the mine) to secure a major supply of tungsten, a strategic metal for IMC's metal-cutting tool manufacturing in South Korea, positioning Sangdong to become a vital source for the global tungsten market. Hemerdon / Drakelands Tungsten-Tin Project — Wolf Minerals (ASX: WLF at the time) - Devon, United Kingdom. Widely promoted in the 2011–2012 window on the back of its DFS and development narrative as a major non-China tungsten supply option. Cantung Tungsten Mine — North American Tungsten Corp. (TSX-V: NTC at the time) - Northwest Territories (Canada). Promoted in 2012 as a restart/production resumption story (road reopening enabling production restart). Figure 4: Location of Tungsten projects being promoted in 2012. (source: Samso) As I am writing this blog, I have just realised that apart from the project I was promoting, there was only one other company that was promoting tungsten exploration, and that was Tungsten Mining Limited (ASX: TNG), which had just listed at the end of 2012. They were promoting a project called Kilba (Figure 5), which had a JORC-compliant Indicated and Inferred Resource of 5.0MT @ 0.27% WO3 that was announced on the 31st May 2013. Figure 5: Location of the Kilba Tungsten project. (source: TGN ASX Release 12th June 2013) Today, the majority of the projects are no longer in a near-production state. I am told that Nui Phao has reduced its production (though with the current pricing, they may be doing better). The Barruecopardo Tungsten Project appears to be in production, and Sangdong is "near" production. None of the projects is in a big production state; however, with the recent surge in pricing, things may start to look different soon. The Tungsten narrative is largely driven by the following: "China dominates it, and now the Trump factor has come to save it, but the market is somehow not interested, even when the metal price (ATP) is surging to an all-time high of USD $900 per mtu (metric ton unit). If you strip away the noise, tungsten’s 2026 story is simple: it sits at the intersection of defence, industrial capability, and supply-chain leverage. It’s not a “new economy” metal, but it has become a strategic economy metal—because so much of the upstream and processing chain still runs through China. Price reality check: what the market is actually saying (2025–early 2026) On the pricing front, APT (Ammonium Paratungstate) remains the benchmark reference point used across the industry, because it’s the key intermediate feeding most downstream tungsten products. Metal Recent market pricing snapshots show APT (CIF Rotterdam) sitting in a high band late 2025 into early 2026, alongside elevated China APT pricing. Metal A useful “market narrative” datapoint that’s been cited publicly is the view that APT moved materially higher across FY2025 and into 2026, reinforcing the idea that tungsten is trading above older baselines (regardless of the exact source you prefer). “When a minor metal holds high prices for long enough, it stops being a spike and starts looking structural.” The true driver: policy and permissions, not geology The tungsten market in 2026 is heavily shaped by export controls/licensing frameworks and policy signalling, especially out of China. Reuters has reported China expanding export restrictions to include tungsten-related products (among other critical minerals) using a licensing approach tied to national security framing. “Supply isn’t just ‘how much is mined’—it’s ‘how much can move’.” Will the “Fanya shadow” appear in 2026 The Fanya Metal Exchange was a China-based metals trading platform from 2011 to 2015 that accumulated huge rare-metal inventories (including tungsten in the form of ammonium paratungstate). When it collapsed in 2015, investors were left unable to withdraw funds, and courts seized the metal holdings. A lot of the stockpiles were later sold or absorbed by state-linked buyers. “Fanya taught the market what hidden inventory can do. 2026 is about controlled inventory and controlled flows.” How Big Were the Stockpiles? Analysts looked closely at the Fanya data in its final years: Reported holdings for tungsten (in the form of ammonium paratungstate, or APT) were allegedly around 29,000+ tonnes, or approximately as much as 30% of China’s annual production at one point. It stored significant quantities of other metals too — including large amounts of indium, bismuth, and rare earths — which in some cases were multiple times annual world output. These stockpiles were stored in warehouses across China under the exchange’s control. Why the Stockpiles Matter to Markets The existence — and then liquidation — of these stockpiles had major effects on metal prices and supply dynamics: Price Suppression from Overhang When the exchange collapsed, and authorities seized its inventory, there was concern that the sudden release of metal onto the market would depress prices — especially for tungsten and other hard-to-produce metals. At times, analysts suggested that if the Fanya APT stocks were released, prices could fall back to levels seen in earlier market lows, because a large overhang would flood available supply. Price Volatility Before Collapse During Fanya’s accumulation phase (2011–2014), speculative buying and accumulation pushed prices up because physical supply was being warehoused rather than hitting the open market. This distortion was widely blamed for significant price spikes during that period. What Happened to the Stockpiles After the Collapse? After Fanya froze operations in 2015: Chinese courts seized the exchange’s metal inventories. Some metals (like indium and antimony) were auctioned off or bought in bulk by large state outfits such as China Minmetals Auctions were conducted via online platforms like Taobao, often below market value, making it unclear how much of the backlog was fully absorbed or held strategically by state actors rather than released into open commerce. Not all stockpiled metals have been transparently returned to market: some were bought privately, some moved into strategic government inventories, and some may still be held in various forms under Chinese oversight. Is the Fanya Stockpiles Still Relevant? In 2025–2026, the Fanya Metal Exchange stockpile issue is generally not a major direct driver of tungsten markets anymore, though it still comes up in historical context. The relevance of the Fanya Shadow is no longer an issue for the following reasons: Less Direct Impact on Prices Now The bulk of the ex-Fanya APT stockpiles has been seized and at least partially absorbed into industry inventories or held by corporate/state buyers. Small Caps Market commentary and price behavior in late 2025/early 2026 focus much more on current supply tightness, geopolitical export controls, and Chinese production/export policy, rather than potential liquidation of Fanya stocks. Discovery Alert+1 In other words, the idea that a large stockpile could suddenly hit the market and pull prices down is less relevant now than it was a decade ago. Current Drivers That Matter More Recent supply/demand dynamics are shaped by: Chinese export controls and licensing strategies affecting tungsten supply globally. Geopolitical tensions and diversification of supply chains (e.g., Western buyers seeking non-China sources). Strong prices and tight inventory levels in the tungsten market through late 2025/early 2026, with prices at elevated levels and market participants in a wait-and-see mode. These factors are driving price trends and investment interest now far more than the remnants of Fanya stockpiles. Tungsten Price Trends (2025–2026): What the Market Is Really Responding To Now. 1. Prices: Structurally Higher, Not Speculative Through late 2025 into early 2026, tungsten prices (typically referenced via APT – Ammonium Paratungstate) have remained elevated and relatively firm compared to the long-term average. This is not being driven by financial speculation (as seen during the Fanya years), but by: Persistent supply tightness Limited new mine development Rising strategic demand, particularly from defence, aerospace, and advanced manufacturing The market tone is best described as tight but orderly. 2. China Policy Is the Dominant Lever China remains the key swing factor in tungsten pricing, but the influence today is policy-driven rather than inventory-driven. Key factors: Export licensing and quota controls on tungsten products Environmental and energy-cost pressures on domestic producers Strategic retention of critical metals, aligned with broader industrial policy Rather than flooding the market, China’s behaviour in 2025–26 has leaned toward controlled supply, which supports higher floor prices. 3. Inventory Levels Are Thin Unlike the 2012–2015 period: Western inventories are low There is no visible overhang equivalent to the Fanya stockpiles Buyers are increasingly working on just-in-time or short-term contracts This makes the market more sensitive to: Temporary supply disruptions Export approval delays Geopolitical or trade-policy shocks 4. Demand Is Shifting from “Industrial” to “Strategic.” Traditional demand drivers (hard metals, tooling, wear-resistant alloys) remain solid, but the growth is coming from: Defence and munitions Aerospace and space applications Energy transition technologies High-performance electronics This matters because strategic buyers are less price-elastic — they prioritise security of supply over marginal price movements. 5. What This Means for New Projects In 2026, tungsten is increasingly viewed as: A strategic metal, not just a cyclical commodity A sector where permitting, jurisdiction, and ESG profile matter as much as grade One where credible non-China supply attracts disproportionate interest Projects with: Simple metallurgy Clear permitting pathways Potential domestic or allied-nation offtake are being assessed through a longer-term strategic lens, not short-cycle commodity pricing. Samso Concluding Comments For those who have been following our coverage of tungsten, you will have seen our multiple posts on this space and realised that the next excitement among the ASX hopefuls is the rush into the tungsten space. The incredible fact is the surge in the price of tungsten in mtu. We have been raising awareness among investors on the potential rise to fame for a long time. In fact, the very first episode of Coffee with Samso was on tungsten, and that was in 2019 (A conversation about Tungsten). What is an MTU? - A Metric Ton Unit is defined as 1% of a metric ton (1,000 kg) and therefore equals 10 kilograms. Tungsten is primarily traded in the form of Ammonium Para Tungstate (APT) or tungsten concentrates, with prices quoted per MTU of tungsten trioxide ( WO3) content. Since that time, the price of tungsten has gone from sub USD $300 per mtu to a mind-boggling USD $1,000 per mtu as we write this blog today on 9th January 2026. The Samsop platform started covering tungsten again in earnest in May 2025, and the price then was in the USD $400 mark. Since that period, it has been an incredible rise to today's price in a very short time frame, and for those companies that are now rushing into this space, the big question is really about where they are going to find a tungsten deposit that can become economical, and this is the main issue that will keep driving the price. This Samso Insight is highlighting this very point, as what I see today is no different from when I was promoting a tungsten project in 2012. The main difference is the influx of exploration projects that seem to be banking on the Trump factor, and the focus is really on US projects. If one looks at what is available for mining, there are really not that many. If this continues to be the case, and we all know that developing a producing mine is something that takes years and in most cases decades. If that is the case, then you will have to think hard about what the sustainable price for tungsten will be if the lead time to relieve the supply crunch is the only way to reduce the surging price, and when that will happen. Figure 6: An article taken from SMM. (source: SMM) The article (Figure 6) from SMM (Shanghai Metals Market) is the perfect way to close this discussion. If you read the heading, it tells of a stable market that is very ordinary. The underlying truth is that the price have surge to a level now that is more than 300% times what it would have been 12 months ago. If there is no obvious relief in supply (assuming there is no Fanya Shadow lurking), what will be the ultimate multiple for the price before it is considered a stable market? Cover photo: Fluorine, scheelite, calcite (Chine), Parent Géry. Public domain, via Wikimedia Commons (https://commons.wikimedia.org/wiki/File:Fluorine,_scheelite,_calcite_(Chine).jpg). Reproduced photograph, shown faded under a navy overlay on the article thumbnail. 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. Investors can view our three main products in Coffee with Samso, Samso News and Samso Insights. 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 diligent in understanding their own risk-reward tolerance and capabilities. Never bite off more than you can chew is my parting comment. As they say, Rome was not built in a day, and the Great Wall is a great phenomenon because it took centuries to build. As usual, Happy Investing and remember, always DYOR. 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. 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. 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.

Washington has set a hard deadline of 1 January 2027. Australian producers are on the right side of it, but only if they can prove where every gram came from. Australian critical minerals producers have been handed their clearest opening yet into the United States defence supply chain, after President Trump signed an executive order closing the loophole that let American contractors keep buying Chinese magnets, tungsten and tantalum. Executive Order 14415, signed on 20 July 2026 and published in the Federal Register three days later, does not create a new ban. It enforces an existing one. US law already bars the defence department from buying certain materials produced in a “covered nation”, a list containing only China, Russia, North Korea and Iran. Australia is not on it. The order is unusually candid about why it was needed. Its opening section states that despite the longstanding prohibition, defence contractors have historically under-prioritised domestic production and resilience. That is an admission that the existing law has not been working. How the escape hatch worked, and how it closes The statute has two release valves. The first lets the Secretary waive the prohibition for a specific end item when a specific covered material of satisfactory quality and quantity cannot be obtained when needed at a reasonable price. Each such waiver runs for a maximum of 36 months. The second is a national security waiver, allowing delivery of an item containing covered material from a covered nation where the Secretary determines in writing that accepting it is necessary to United States national security interests. Contractors have leaned on the first valve heavily, because for most of these materials no tested, approved, available Western alternative existed. Qualifying a new supplier into a defence programme is slow, expensive and thankless work, and when a compliant Chinese supplier sits there at a fraction of the price, nobody volunteers to do it. From 1 January 2027, the order shuts the first valve and narrows the second. Routine non-availability waivers stop. A contractor still wanting one must submit a formal mitigation plan, accepted by the Secretary, that identifies the non-compliant source, documents evidence of exhaustive efforts to find compliant material, describes the steps to remove the non-compliant material from the supply chain, and sets a strict projected timeline for doing so. National security waivers survive, but they now require a request from the Secretary or a service Secretary to the Assistant to the President for National Security Affairs. Routing that decision through the National Security Council is a meaningful change of altitude. A waiver that was previously an acquisition matter becomes a White House matter. The sharpest clause is Section 2(c). A contractor's failure to qualify a domestic source no longer constitutes non-availability, unless that contractor can demonstrate active, adequately funded and ongoing efforts to qualify one. In plain terms, “we couldn't find anyone else” stops being an acceptable answer if you never seriously looked. There is a penalty tail. Where the Secretary determines a contractor has engaged in fraud or deliberately misled the government in its mitigation plan, or has knowingly failed to implement it, the order directs him to exercise all appropriate contractual remedies and permits referral to the Attorney General for investigation and possible prosecution. Section 4(b) is blunter still: failure to qualify an alternative source becomes grounds to suspend or terminate task orders, decline to exercise contract options, and terminate the existing contract. That is the real weapon. Not a fine, but the threat of losing the work. Why 1 January 2027 The date is not arbitrary, and this is the detail most commentary has missed. Legislation passed in 2021 amends the same statute on exactly that day. From 1 January 2027 the department may not enter into a contract for any covered material mined, refined, or separated in a covered nation, rather than only material melted or produced there. The same amendment narrows a widely used carve-out. The exception for commercially available off-the-shelf items currently excludes items that are 50 per cent or more tungsten by weight. From January 2027, that exclusion widens from tungsten to every covered material. So the waiver door and the traceability net move together. A contractor relying on a Chinese input buried three tiers down will find, on the same morning, that the input is more clearly caught, the off-the-shelf shortcut is narrower, and the exemption is gone. Figure 1. The two changes that matter land on the same day. Everything else is process around them. The list is shorter than “critical minerals” suggests The covered materials are narrower than most investors assume. “Critical minerals,” as a phrase, now encompasses roughly 60 commodities. The statute this order enforces does not. As it currently stands, the list is samarium-cobalt magnets, neodymium-iron-boron magnets, tungsten metal powder, tungsten heavy alloy and components containing it, tantalum metals and alloys, and molybdenum. Molybdenum was added in December 2025. Germanium and gallium join on 18 December 2027 under the same legislation. Two of the six current entries are tungsten. One is tantalum. Only two relate to rare earths. That matters for a market that has spent three years treating “critical minerals exposure” as a synonym for rare earths. Figure 2. The statutory list is specific and short. Broad “critical minerals” exposure is not the same as exposure to this order. Australia's Tungsten Paradox Tungsten has the highest melting point of any metal, which is why it goes into armour-piercing rounds, cutting tools and anything that runs hot. China dominates production. Australia ranks second in the world for tungsten resources, according to Geoscience Australia and peer-reviewed assessments of the national inventory, yet supplies only around one per cent of global output. Figure 3. Resource endowment without production capacity. The order raises the value of closing that gap. Tantalum, tungsten or molybdenum produced from recycled material is exempt where the contractor can show the recycled material was produced outside a covered nation and the melting and further processing takes place in the United States or in the country of a qualifying foreign government. Australia appears on the qualifying country list used to implement that concept in United States defence acquisition regulation, alongside Canada, Japan, the United Kingdom and around two dozen others. From 18 December 2027 the same exception extends to gallium and germanium. The practical reading is that Australian downstream processing of recycled tungsten, tantalum and molybdenum sits inside a statutory exemption, not merely outside a prohibition. For a country with substantial tungsten resources and an existing hard-metal recycling industry, that is a specific and under-discussed opening. It would be worth confirming the current qualifying country schedule before building a business case on it, since these lists are amended. Two other exceptions matter less to Australian producers but tell you where the pressure is heading. Off-the-shelf items are exempt, on the narrowing basis described above. Electronic devices are exempt unless the Secretary determines domestic availability of a particular device is critical to national security, and Section 2(f) of the order directs the Secretary to review how that electronics exemption is currently being applied. That is the single largest remaining gap in the regime, and the order has put it under review. Figure 4. Compliant supply is not only a domestic question. Four of the routes that stay open run through allied and US-financed sources The catches Being Australian is not sufficient. Section 3 requires contractors to submit a complete indentured Bill of Materials, tracing every component back to the origin of the raw materials across all supplier tiers. It also requires screening every supplier for foreign ownership, control or influence from a covered nation, defined broadly enough to capture influence that exists but is never exercised. Two consequences follow. First, an Australian mine that ships concentrate to China for separation is not producing compliant material once the January 2027 language bites. The premium attaches to the chain, not the deposit. Second, an ASX-listed company with a substantial Chinese shareholder or offtake counterparty can be caught despite mining in Australia. Registers and offtake books are now due-diligence documents. The clause nobody is discussing Section 6 may be the most commercially significant provision for Australian developers. Nothing in the order impairs acquisition of critical minerals produced by a foreign project financed, guaranteed or insured by the US Export-Import Bank or the Development Finance Corporation, or supported by the US departments of State, War, Commerce or Energy. That is a protected lane, written into the order, for foreign projects carrying United States government money. American financing has stopped being merely cheap capital and become a compliance position. It sits alongside Project Vault, the US Strategic Critical Minerals Reserve announced in February 2026 and backed by an EXIM loan of up to US$10 billion plus roughly US$2 billion in private capital, which the order also carves out. Two reality checks Defence volumes are small. Global magnet demand is dominated by electric vehicles, wind turbines and industrial motors, and defence consumption is a modest share of it. This order creates high-value, low-volume, certification-heavy demand. It does not move the bulk price deck. Any company whose investment case rests primarily on defence demand is selling a story the tonnages will not support. Qualification takes years. Getting a material tested and approved into a specific weapons platform is a multi-year exercise. The order concedes as much: Section 4(c) gives the Secretary 90 days simply to produce a strategy for accelerating testing and qualification, including identifying regulations to rescind. When a policy document has to commission a plan to speed up its own approvals process, that tells you how slow the process is. Revenue from this shift lands well after the announcements. What happens next Implementing guidance is due within 180 days, with a further 90 days for the regulations themselves. Those will matter more than the order, because they settle whether “allied” means “preferred” or merely “permitted”. The preamble commits to sourcing “domestically or from allied nations”, but the operative sections build only a mechanism for removing Chinese material, not a preference for Australian material over American. Two cautions. Defence is a small share of global magnet demand, so this creates high-value, low-volume, certification-heavy business rather than a shift in the bulk price deck. And qualifying a material into a weapons platform takes years, which is why Section 4(c) gives officials 90 days simply to devise a strategy for speeding that up. The opening is real. The revenue is not imminent. FOUR QUESTIONS FOR ANY COMPANY CLAIMING EXPOSURE • Is its output on the covered materials list, directly or through a product it feeds? • Can it document chain of custody from pit to delivered product, and where does the trail go cold? • Does its share register or offtake book create a foreign ownership, control or influence problem? • Is it inside the Section 6 financing perimeter, or should it be? Cover photo: Scheelite; mica, Géry PARENT. Public domain, via Wikimedia Commons (https://commons.wikimedia.org/wiki/File:Scheelite;_mica.jpg) 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. 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. 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 insigh0ts 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. Samso News | www.samso.com.au | An Investor Lens on ASX-Listed Companies

Coffee with Samso | Episode 213 | London - UK, Perth - Western Australia. Guest: Oliver Friesen – CEo & Executive Director, Guardian Metals Resources Plc (LON: GMET - OTCAX: GMTLF) Introduction In this episode of Coffee with Samso, I speak with Oliver Frieson, the CEO and Executive Director of Guardian Metals Resources PLC, about one of the most compelling but under-discussed metals in the global supply chain — tungsten. With prices at all-time highs, export bans in place from China, and increasing geopolitical interest, tungsten is now firmly at the centre of the strategic resources conversation. Guardian Metals, listed on the LSE and OTC, is a rare story that began long before the market caught on — positioning itself as a serious player in the US critical minerals space. This Coffee with Samso explores the macro forces driving the tungsten narrative, the market imbalance between China and the West, and Guardian’s role as a key part of the solution. This is a conversation that is highlighted only because the underlying business is not in the headlines. The Business of the Company: Focus – US Tungsten Projects Guardian Metals Resources has two strategic assets: Pilot Mountain, Nevada – One of the largest historical tungsten projects in the US, previously mined during World War II and advanced with a robust ongoing PFS process. Tempuite, Nevada – Formerly the largest producing tungsten mine in the US during the 1980s, now being revitalised with a current drill program and site refurbishment underway. With processing infrastructure already existing in Nevada and strong institutional support, Guardian is aiming to bring both mines into production before the end of the current US administration. Global Tungsten Market – Highlights from the Conversation China Has Weaponised Supply Since Feb 2025, Chinese exports of tungsten have virtually ceased. China continues to import and stockpile tungsten despite being the largest producer — creating a supply/demand distortion. Domestic Chinese prices have exceeded international prices — a counterintuitive signal suggesting internal demand pressures. Western Supply Gap is Real Global tungsten demand: ~100,000–120,000 tonnes/year. Western world mine production: ~10,000 tonnes/year. Net gap outside of China/Russia/North Korea: ~40,000–50,000 tonnes/year. New Equilibrium Price Forming Historically, tungsten projects needed USD $500+/MTU to be viable. Current prices: USD $620–630/MTU with upside momentum. Guardian’s projects were viable even at pre-2020 pricing norms — giving them a competitive advantage in a rising-price environment. Leadership Commentary – Oliver Frieson’s Perspective Oliver brings a unique lens — a geologist by trade, Canadian by background, and now building a US-focused tungsten strategy from London. He shared: Guardian’s five-year journey into tungsten (well before the current hype). Why he believes domestic mine supply is now a national imperative. How Guardian has already received US Department of Defense funding for its Pilot Mountain project. The critical difference between companies "mining the market" and those genuinely positioned to deliver a sellable product. "We’ve spent five years building this position. Now everyone is paying attention, but we were early — and we have the right assets in the right place." About the Projects Pilot Mountain: Located in mining-friendly Nevada. Historical producer during WWII. Ongoing PFS+ study with engineering, metallurgy, geotech, and mine design in progress. Pilot North staked as potential hub-spoke satellite to main project. Tempuite: Previously produced 0.45% WO3 grades – high for tungsten. All infrastructure still on site: mill foundation, substation, office. Currently undergoing resource upgrade drilling. Goal is to bypass scoping and move into DFS-level work. How Samso Understands the Investment Memo for the Company Guardian Metals is a real-time case study in: Early contrarian entry into a critical metal market Operating in one of the only jurisdictions with full processing infrastructure Holding assets with historic production, existing infrastructure, and proven metallurgy Aligning with national strategy: awarded US DoD funding, exploring within strategic minerals legislation In a field crowded with hype, Guardian is already executing. Samso Concluding Comments Guardian’s story is a reminder that real value often comes from being early. From my early experience with the Tungsten story, the current macro picture for tungsten is unprecedented — geopolitical shifts, price surges, and the weaponisation of exports all highlight how exposed the West has become. Guardian’s Nevada projects are ticking the right boxes — grade, infrastructure, timing, jurisdiction. There’s real substance here, and it’s worth keeping a close eye on as both projects move forward. In the words of Samso, get your favourite beverage and sit and listen to another great insight from Coffee with Samso. Chapters 00:00 Start 02:41 Introduction 03:13 Summary of Oliver Friesen 04:38 Update on the Tungsten Market 08:34 The Rarity Conversation of Tungsten. 15:01 The Conversation about the Economics of the Tungsten market. 22:16 How High Could the Tungsten Price go and What is the Sustainable Price? 28:00 About the Guardian Metals Projects? 31:41 What is the Upside of Guardian? 36:48 What stage are the projects at for Guardian? 41:12 The Guardian share price journey. 42:06 How can Investors be encouraged to take position in Guardian Metals. 46:06 Is the Critical Minerals hype translating to actual work on the ground? 49:05 What other Tungsten projects can work out there? 55:53 What should investors look for to help them guide an Tungsten investment. 59:47 Closing Comments 01:01:23 Conclusion 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. We are always asking the question that may sound simple and irrelevant, but these are typically the ones that make sense to you, the one seeking the knowledge. 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 News Samso Insights 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. 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. 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.

In this Coffee with Samso episode, I went back to Adelaide to sit down with the people who were there when Prominent Hill was found — the discovery that became one of South Australia’s defining IOCG (Iron Oxide Copper-Gold) stories. This is not a corporate recap. It is a first-hand account of what actually happened in the lead-up to discovery, how the target was chosen, what the drillers and geologists saw in the core shed, and why a single drilling decision could have changed everything. The team shared the backstory from the early tenement holders right through to the Uranus prospect becoming the Prominent Hill IOCG deposit— and the reality is simple: discovery is often a chain of decisions, relationships, and technical judgement made under uncertainty. Coffee with Samso | Episode 215 | Adelaide Markets | Adelaide | South Australia The Discovery that Proved Mineral Exploration for Deposits Under Cover. Guest: Derek Carter – Managing Director (later Chair) of Minotaur during the discovery period Tony Belperio (Exploration Lead) – Exploration Manager Barry Van Der Stelt (Contract Geologist) – first recognition of copper Peter Reid (Senior Geologist) – senior geologist involved in the Prominent Hill work 1) Prominent Hill Was Not a “New” Area — It Was a Patiently Reworked Story A key point in the conversation was that the Mount Woods ground had history well before Minotaur. The tenements were originally held by Metals X, who worked the region from the late 1980s onward, focusing on magnetic features and drilling at least one early target. Later, Burmine Limited entered the picture, and then Normandy/Poseidon ran a helicopter-based gravity survey across the area. Burmine Limited (ASX code: BUR1) was an Australian-listed gold and minerals exploration and mining company active in the late 1980s and early-to-mid 1990s. It was primarily focused on Western Australian gold projects, notably operating the Copperhead mine near Bullfinch. This matters because it shows the reality of exploration cycles: ground can be worked, tested, and even partly understood — but still not properly unlocked until the right targeting logic arrives. 2) The Technical Pivot: Magnetics Were Useful, But Gravity Was the Key The story turned when the targeting mindset shifted. Earlier programs were chasing magnetic features — and while they were hitting copper-bearing magnetite breccias, there was a ceiling to the grades being intersected. The breakthrough came when the team could simultaneously interpret magnetics and gravity, and start looking at where these anomalies were offset from each other. The concept was simple but powerful: Magnetic anomaly = something magnetic Gravity anomaly = something dense Offset between the two can be the clue to a different part of the IOCG alteration system This is where the conversation became very “real exploration”: data doesn’t tell you it’s mineralised. It tells you where you should be brave enough to test. 3) 3D Modelling Was a “Game Changer” — And It Was New Back Then One of the most important takeaways was how early this team was in adopting 3D inversion modelling. Today we treat 3D models as routine. Back then, it was cutting-edge. The team explained how the modelling allowed them to rank targets properly, separate those already drilled from those not tested, and better understand the geometry of gravity and magnetic responses. In Samso terms: this was one of those moments where technology didn’t replace geology — it amplified it. 4) “Uranus 1” — The Discovery Hole That Almost Looked Like Nothing The drill hole that changed everything was Uranus 1. Barry Van Der Stelt described the core and is the kind of detail that explorers remember for life: The core was so hematite-rich it was hard to even see textures. The team was washing core just to interpret it. The operation was low-budget — even the core cutting was done on a basic brick saw setup. Then came the moment: blue specks appearing after the core had sat for a couple of days. That blue tarnish was the first real visual signal of copper — and it triggered the call that brought the team running. This was also a reminder that Prominent Hill echoed the Olympic Dam story: sometimes the copper is not obvious until it’s tested, altered, or routinely assayed. 5) The Numbers Were Bigger Than Anyone Expected The team admitted they initially thought they might have something like “30 metres of ~1% copper.” Then assays came back with results that were materially stronger, including: a high-grade copper interval around 4% copper over ~30m, and broader zones around ~1% copper that they simply could not visually recognise in hematite breccia. Later, deeper drilling confirmed additional IOCG-style signatures, including: copper-gold mineralisation and uranium increasing at depth, reinforcing the Olympic Dam-style system interpretation. 6) The Sliding Doors Moment: Drilling the Flank, Not the Core This is one of the most valuable exploration lessons in the episode. After the discovery hole, infill gravity shifted the interpreted peak of the anomaly by several hundred metres. The team realised they had not drilled the very centre. The irony is that drilling into the “peak gravity” later hit barren, intensely altered hematite-silica core, which is now recognised as central IOCG alteration. The team openly discussed the risk: in 2001, if they had drilled the core first and hit barren alteration, they might have walked away. That is a brutal truth about exploration: a discovery can be decided by where you hit a system first. 7) The Business Reality: Minotaur Had Only 19% — But It Was Enough to Reap the benefits of the Prominent Hill IOCG Discovery. One of the most interesting parts of the conversation was the structure. Minotaur’s maximum share of the project was 19%, while the major partner (BHP/Billiton through the merger timeline) held the majority position. Minotaur’s “cost” for that 19% wasn’t cash — it was local geological knowledge and management. The team framed it with a simple idea that still applies today: Better to own a piece of something real than 100% of something you can’t fund. This is a proper junior-to-major alliance lesson, and it explains how big discoveries are sometimes possible in down cycles. 8) Capital Cycles Still Matter The group reminded us that this happened during a period when market attention was elsewhere — the dotcom era, when exploration was not “in fashion.” And yet, the discovery still drove a dramatic market response: strong share price movement, heavily oversubscribed shareholder participation, major legal/accounting work managing scale and compliance. The point wasn’t hype. It was showing how quickly markets can change when geology delivers. What This Episode Really Shows This Coffee with Samso episode is a reminder that discovery requires: Local knowledge (not just imported models) Funding and deal-making (alliances matter) Technical courage (you still have to drill the target) Open-minded thinking (don’t get trapped by one model) A tolerance for failure (because near-misses are common) Prominent Hill wasn’t found because everything was obvious. It was found because the team kept moving forward, making decisions with imperfect data, and backing their judgement. Samso Concluding Comments For me, episodes like this are part of documenting the real value chain of discovery. A lot of people talk about the “next Olympic Dam” like it’s a marketing phrase. This conversation shows what that actually looks like in practice: long lead times, multiple parties, tight budgets, imperfect data, and a team that had the discipline to keep testing. If you want to understand how IOCG discoveries really happen — this is one to watch. In the words of Samso, get your favourite beverage and sit and listen to another great insight from Coffee with Samso. Chapters 00:00 Start 00:10 Introduction 02:00 Introducing the Team 02:23 Derek Carter introduces the team 02:52 The Beginning 07:42 What was the capital being raised at that time? 08:25 The beginning of the Mt. Woods JV 10:13 Why did Billiton come to minotaur for the JV? 11:09 How was the funding being sourced for the journey? 12:56 The 3D Inversion Concept from Billiton. 14:30 How Uranus was chosen. 14:47 The offset of Gravity and Magnetics Triggered the Discovery Hole. 16:04 The Barren Core 16:45 The Flanks of these anomalies where the goodies are. 17:05 What level of confidence did the team have before the drilling? 18:44 The description of the copper mineralisation at Prominent Hill Discovery hole. 20:41 The sequence of discovery - Timing. 22:36 Realising the Discovery 25:12 A Sliding Door Moment. 26:26 Geochemistry Supporting the Discovery 27:47 The Share Purchase Plan - Share Price Movement 30:13 What percentage did Minotaur have in the JV? 31:38 The Reason why BHP left the JV. 31:59 The BHP Divestment. 34:06 The Oxana Acquisition 34:51 Was the BHP Alliance the Critical Part of the Journey. 35:58 Would the Technology today had helped the Discovery? 36:48 Advice To Aspiring People wanting to make Discoveries - Derek and Tony 38:30 Is the Geological Knowledge Less Important than Marketing Now? 39:50 Advice To Aspiring People wanting to make Discoveries - Barry and Peter 41:59 Should New Ideas be pushed even If the odds are stacked against it. 43:48 Discoveries are made over a long term strategy. 45:11 Is Capital still hard to get ? 45:48 What was the model for Minotaur prior to Discovery? 47:16 The Minotaur JV model 49:42 Toro Energy IPO 51:14 Is there another Olympic Dam ? 51:43 Thanking the Team 52:12 Last Words 53:12 Conclusion 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. Always read the announcement, understand the geology, and follow the development pathway before forming an investment view. 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. 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 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.

Roughly half the world's tungsten lives in skarn: a hard, ugly, calc-silicate rock that forms where a hot granite leans against limestone. Strip away the market noise and this is a story about chemistry at a contact. Here is how it works — in pictures. Samso Insights Research Insights Understanding Tungsten - Part 1 Geology Series WHAT THIS PIECE COVERS 1.00 THE SHORT VERSION A skarn is a chemical handshake between two rocks. 2.00 THE SETTING The recipe in cross-section, and how a tungsten skarn is made. 3.00 TWO PROCESSES, ONE ROCK Baking versus rebuilding, and why geologists keep them separate. 4.00 THE TWO ACTS Prograde then retrograde, and how tungsten moves twice. 5.00 THE FINGERPRINT What a tungsten skarn is made of, besides the tungsten. 6.00 ZONATION Distance from the granite works as a thermometer. 7.00 TWO FLAVOURS Reduced against oxidised, and why the split still matters. 8.00 THE EXPLORER'S TRICK Why scheelite glows under ultraviolet light, and how that finds it. 9.00 KNOW YOUR ORE MINERAL Scheelite in skarns, wolframite in veins, and what each tells you. 10.00 IN PRACTICE, AT HOME The Australian skarn, King Island and beyond. 1.00 — THE SHORT VERSION A skarn is a chemical handshake between two rocks The theory : a rising granitic magma will naturally proceed to a cooling phase as it makes contact against a limestone, leading to the granite exhaling hot, metal-bearing fluid into a rock that is almost pure calcium carbonate (Figure 1). Where the two meet, the limestone is rebuilt into a coarse, dense rock packed with calcium-silicate minerals. That rebuilt rock is the skarn. When the fluid is carrying tungsten, the calcium it strips from the limestone locks the tungsten up as scheelite — calcium tungstate, CaWO₄. The short version of what a skarn is now explained. Just remember that a tungsten skarn needs four ingredients in the same place: a fertile granite, a carbonate host, heat, and a plumbing system to move fluid. Miss one and you get no ore. The diagrams below walk through each of them. Skarn A coarse-grained calc-silicate rock formed by the chemical replacement of carbonate rock (limestone or dolomite) near an igneous intrusion. The ore-grade, fluid-built variety is sometimes called tactite. Scheelite CaWO₄ — calcium tungstate, the dominant tungsten ore mineral in skarns. About 80% WO₃ by weight. Heavy (SG ≈ 6), pale, and famously glows blue under ultraviolet light. 2.00 — THE SETTING The recipe, in cross-section - the creation of a tungsten skarn This is the picture to carry around. A granite pluton rises into a layered sequence of sediments (Figure 1). The heat alone bakes the surrounding rock into hornfels. But where the carbonate layers sit against the granite — and especially where faults give fluid a path — the limestone is chewed out and replaced by skarn. Scheelite concentrates right at that reaction front. Figure 1: The tungsten-skarn system. Heat bakes a metamorphic aureole; fluid from the granite (blue arrows), guided by faults, replaces the carbonate host with calc-silicate skarn (orange). Scheelite concentrates at the reaction front. Schematic by Samso, after standard skarn models (USGS Open-File 02-195; Meinert et al.). Samso take Notice what does the work: it is the carbonate, not the granite, that makes a tungsten skarn. The limestone supplies the calcium that traps tungsten as scheelite. No carbonate at the contact, no skarn — which is exactly why explorers map the marble, not just the granite. 3.00 — TWO PROCESSES, ONE ROCK Baking versus rebuilding Two different things happen near the intrusion, and geologists keep them separate. Contact metamorphism is heat alone — the rock recrystallises but its chemistry barely changes. Metasomatism is the active one — fluid floods in and physically swaps elements in and out of the rock. Ore-grade skarn is built by metasomatism. Figure 2: Heat alone turns limestone into marble (left). Fluid-driven metasomatism rebuilds it into calc-silicate skarn and drops scheelite (right). Schematic by Samso, after Geology Science & ITIA descriptions. 4.00 — THE TWO ACTS Prograde, then retrograde — and tungsten moves twice Skarns build in two acts as the system heats then cools. The hot prograde stage grows anhydrous minerals — garnet and pyroxene — and drops the first, fine scheelite. As the system cools, the wetter retrograde stage overprints it with amphibole, mica and fluorite, and crucially re-dissolves and re-concentrates the scheelite into coarse, high-grade masses. The best ore is usually retrograde. Figure 3: Tungsten precipitates twice. Early prograde scheelite is fine and molybdenum-rich; cooling retrograde fluids re-dissolve it and re-deposit it as the coarse, high-grade ore that mines chase. Schematic by Samso, after Newberry & Einaudi (1981) and Kwak & Tan (1981), King Island. Why does the ore move twice? Because the two processes produce two distinct types of scheelites. The prograde process — characterized by heat and dryness — crystallizes garnet and pyroxene, depositing the first scheelite at the marble front. This scheelite is fine-grained, dispersed throughout the rock, and typically molybdenum-rich, as molybdenum easily integrates into scheelite formed from these early high-temperature fluids. The retrograde process is where the value lies. As the pluton cools and the fluid becomes water-rich and more acidic, hydrous minerals such as amphibole, mica, epidote, and fluorite overprint the anhydrous framework. The initial scheelite that isn't trapped within garnet dissolves and re-precipitates as coarse, molybdenum-poor masses, usually accompanied by sulfides. The USGS skarn model clearly states: early scheelite near the marble front is generally remobilized and redeposited in coarse-grained, high-grade masses within the zones of hydrous alteration. Three factors make retrograde ore highly desirable, all of which are commercial. Grade where the richest tungsten is typically found with the hydrous, retrograde minerals. In the Processing stage, the coarse scheelite separates cleanly and can be recovered through inexpensive gravity separation, whereas the fine prograde scheelite is the sub-10-micron material that eludes gravity (the issue addressed in Part 2). The third factor is quality. The molybdenum, which was a disadvantage in the early scheelite, is removed during remobilization, resulting in cleaner retrograde scheelite. THE KILBA TELL You can read the retrograde signature straight off the metallurgy. Research is showing that the Kilba deposit (ASX: TGN) — a skarn / calc-silicate system against the Kilba granite in WA's Ashburton carries its tungsten as coarse-grained scheelite that responds to conventional gravity separation, and 2015 testwork produced an extremely high-grade concentrate. Coarse, gravity-recoverable and high-grade is the fingerprint of retrograde-remobilised ore: Kilba sits at the good-ore end of the curve above. The same story, across Australia The model is played out in the Australian deposits. The textbook case is the King Island (Dolphin) mine, where a classic 1981 study traced the exact sequence . The early Mo-rich scheelite with garnet and pyroxene, then coarse Mo-poor scheelite and molybdenite during the retrograde overprint. Read Table 1 below as a context map for what "prograde, then retrograde" means on the Australian project. Table 1: Australian tungsten deposits with Prograde and Retrograde examples. that Sources: Kwak & Tan (1981), Economic Geology 76(2), King Island (Dolphin); USGS skarn model (OF 02-195); JORC resource/reserve figures from company disclosures — Tungsten Mining NL (Kilba, Mt Mulgine, Big Hill, Watershed), Group 6 Metals (Dolphin), Venture Minerals (Mount Lindsay), EQ Resources (Mt Carbine). The Mt Mulgine molybdenum interpretation is Samso's, built on the reported Mo grades. Deposit (ASX) Where Style Resource & grade The prograde → retrograde tell King Island / Dolphin (G6M) King Island, TAS Scheelite skarn (Grassy Granite) Dolphin ~3.0 Mt @ 0.73% WO₃ (probable reserve) Kwak & Tan (1981) traced early Mo-rich scheelite with garnet–pyroxene, then coarse Mo-poor scheelite + molybdenite in the retrograde overprint — the model deposit. Mt Mulgine (TGN) Murchison, WA Porphyry / vein-stockwork W–Mo (greenstone) ~72.2 Mt @ 0.18% WO₃ (~186–220 ppm Mo) The molybdenum credit is the prograde-scheelite signature; large, lower-grade disseminated system. Kilba Ashburton, WA Skarn / calc-silicate 7.2 Mt @ 0.19% WO₃ Coarse, gravity-amenable, very high-grade concentrate — the retrograde end. Big Hill Pilbara, WA Scheelite (calc-silicate) ~11.5 Mt @ 0.15% WO₃ Same skarn-style scheelite. Mount Lindsay (CRI) NW Tasmania Sn–W magnetite skarn ~45 Mt @ 0.2% Sn, 0.1% WO₃ Polymetallic skarn with the same prograde (magnetite-garnet-pyroxene) → retrograde architecture. Watershed (TGN) ~130 km N of Cairns, QLD Calc-silicate-hosted scheelite TGN development project Another calc-silicate / skarn-style scheelite system. Mt Carbine (EQR) Far North QLD Wolframite in quartz veins (greisen) Australia's primary W producer The counter-example — a vein / greisen deposit, not a skarn, so it does NOT follow the prograde → retrograde model. 5.00 — THE FINGERPRINT What a tungsten skarn is made of A skarn announces itself by its minerals apart from the tungsten minerals that we have discussed such as scheelite (Figure 5) and wolframite. The diagnostic pair is garnet plus pyroxene and in tungsten skarns garnet usually dominates. Add the retrograde overprint and a few accessories, and you have the assemblage a geologist logs at the drill rig (Figure 4). Figure 4: The skarn assemblage. Anhydrous garnet and pyroxene form first; a hydrous retrograde overprint carries the high-grade scheelite and the sulphides. Compiled by Samso from USGS, mindat.org and Meinert skarn classifications. Those legend entries aren't abstractions — name a line and a famous deposit shows it. China's Shizhuyuan (Hunan), a world-class W–Sn–Bi–Mo–F skarn, carries exactly the prograde set: garnet, pyroxene, vesuvianite and wollastonite, with scheelite and bismuthinite between the grains. Its ore, though, sits mostly in the retrograde overprint of fluorite, epidote, amphibole and magnetite. Korea's giant Sangdong deposit is the textbook in miniature — you can walk from an outer, low-grade pyroxene–garnet zone, through an amphibole–biotite zone, into a quartz–mica core where the grade is highest. Both say what Part 1's curve does: the rich ore tracks the hydrous, retrograde minerals. Figure 5: Scheelite, the orange-brown pseudo-octahedral crystals, on muscovite. Its high density (SG ≈ 6) is a field giveaway. Specimen located from Mt Xuebaoding, Pingwu County, Mianyang Prefecture, Sichuan Province, China. (Source: Wikimedia Commons ) The garnet-versus-pyroxene balance also flags the skarn's "flavour" (section 7.00). Garnet-dominant, andradite-rich systems like Shizhuyuan are oxidised and tend to carry more molybdenum in their scheelite; pyroxene-dominant, hedenbergite-and-pyrrhotite systems like Canada's Cantung and Mactung are reduced, and their highest grades again sit in the retrograde amphibole and biotite facies. The minerals you log are already telling you the deposit type, the molybdenum penalty, and where the best ore should be. Named deposits that show the fingerprint A spread of well-studied tungsten skarns — two from China, three from elsewhere — and the assemblages that define them: Table 2: Sources: Shizhuyuan — Lu et al. (2003, Economic Geology 98(5)); Yang/Newberry Shizhuyuan studies; Xianglushan — comparative scheelite geochemistry, Shizhuyuan vs Xianglushan (oxidising vs reducing fluids). Sangdong — Almonty Korea project geology; Seo et al. genetic model (prograde wollastonite–garnet–clinopyroxene → pyroxene–garnet; retrograde amphibole–biotite → quartz–mica). Cantung / Mactung — Elongo et al. (2020) and CanTung E-Zone studies (reduced grossular–hedenbergite–pyrrhotite; highest grade in hydrous retrograde facies). King Island — Kwak & Tan (1981). Framework: Newberry & Einaudi (1981); USGS OF 02-195. Deposit (country) Skarn type Prograde assemblage Retrograde / ore assemblage The tell Shizhuyuan (Hunan, China) Oxidised, garnet-rich (W–Sn–Bi–Mo–F) Garnet · pyroxene · vesuvianite · wollastonite (+ interstitial fluorite, scheelite, bismuthinite) Fluorite · epidote · amphibole · chlorite · magnetite + scheelite, wolframite, molybdenite Ore mostly in the retrograde skarn; higher-Mo scheelite from oxidising fluids. Xianglushan (Jiangxi, China) Reduced-type W skarn Garnet–pyroxene skarn + layered sulphide–scheelite Scheelite (lower-Mo), sulphides The reduced counterpart to Shizhuyuan — cleaner, lower-Mo scheelite. Sangdong (South Korea) Zoned giant W(–Mo) skarn Wollastonite–garnet–clinopyroxene → pyroxene–garnet (outer, low grade) Amphibole–biotite → quartz–mica core (highest grade); scheelite >95% of W, minor wolframite, molybdenite Grade climbs inward with the hydrous overprint (~0.3% → ~3% WO₃). Cantung / Mactung (Canada) Reduced (high-grade) Grossular garnet + hedenbergite pyroxene (+ abundant pyrrhotite) Amphibole + biotite skarn (highest grade); scheelite tracks pyrrhotite; chalcopyrite, bismuth Textbook reduced W skarn — ore in the hydrous retrograde facies. King Island / Dolphin (Australia) Garnet–pyroxene skarn (Grassy Granite) Garnet · pyroxene hornfels; early Mo-rich scheelite Coarse Mo-poor scheelite + molybdenite (retrograde amphibole) The Kwak & Tan (1981) model deposit (also in §4.00). 6.00 — ZONATION Distance from the granite is a thermometer Walk away from the pluton and the skarn changes in an orderly way, because the fluid cools as it travels. At King Island's Dolphin mine, scheelite-bearing fluids ran at roughly 500°C at the granite contact and cooled to about 300°C some 500 m out. Garnet sits proximal (andradite-rich nearest the contact), pyroxene takes over distally, and the richest ore tends to sit near the marble front where the chemistry tips over. Figure 6: Skarn zonation. Proximal garnet gives way to distal pyroxene and finally marble; the high-grade scheelite clusters near the reaction front. Temperatures from the King Island (Dolphin) study. After Kwak & Tan (1981), Economic Geology, King Island (Dolphin) zoning study. 7.00 — TWO FLAVOURS Reduced versus oxidised — and why it matters In 1981 Newberry and Einaudi split tungsten skarns into two families, and the split still frames how geologists think. Reduced skarns form deeper, in carbon-bearing host rocks, with hedenbergite-rich (ferrous) mineralogy and often higher grade. Oxidised skarns form shallower, in hematite-bearing hosts, with andradite-rich (ferric) mineralogy. The distinction predicts grade, by-products and metallurgy. Figure 7: The reduced/oxidised division of Newberry & Einaudi (1981), based on host-rock chemistry, iron oxidation state and depth. It is shorthand for what grade and metallurgy to expect. After Newberry & Einaudi (1981), via the EarthSci / USGS skarn literature. 7.50 — The Mo tell: molybdenum writes the conditions into the crystal Section 7 sorted skarns into reduced and oxidised by the company they keep. But there is a finer signal hiding inside the scheelite — its molybdenum content — and it records the fluid one pulse at a time. Here is the catch that trips people up, and it looks at first like it contradicts the table above. The reduced/oxidised split tells you whether a system carries molybdenum — and reduced tungsten skarns very often are W–Mo deposits. But whether that molybdenum ends up locked inside the scheelite is a different question, and the answer runs almost the opposite way. Molybdenum only slips into the scheelite lattice — substituting for tungsten — when the fluid is oxidising enough to carry it as Mo⁶⁺. Turn the fluid reducing and the molybdenum walks off to build its own mineral, molybdenite, leaving the scheelite clean. So a high-Mo scheelite is the fingerprint of an oxidising pulse, not a reduced one. Figure 7.5: Where molybdenum goes. Oxidising fluids load Mo⁶⁺ into the scheelite lattice; reducing fluids divert it into molybdenite and leave the scheelite low-Mo. The same deposit can record both as it cools — at Yaogangxian the molybdenum in scheelite falls roughly an order of magnitude from the early oxidising stage to the late reducing one, and both generations are ore. Schematic by Samso, after Hsu (1977) and Li et al. (2023), Ore Geology Reviews. You can watch this play out inside a single orebody. At Yaogangxian in South China, the early retrograde scheelite grew from an oxidising fluid and carries around 1,800 ppm molybdenum (Figure 7.5). The later sulphide-stage scheelite — grown as the system cooled and turned reducing, with pyrrhotite everywhere — carries roughly 240 ppm. Same deposit, same granite, an order of magnitude less Mo in the crystal, purely because the redox shifted. And crucially, both generations are ore. The redox state changed the flavour of the scheelite without ever stopping it forming — which is the quiet lesson that oxygen state is not the master switch on whether tungsten drops out, just on what comes with it. Samso take This is where the geology reaches the bank. Molybdenum in scheelite is a penalty element in a tungsten concentrate — APT buyers want it low — so an oxidised, high-Mo orebody forces a choice: strip the Mo out, or sell it as a molybdenite credit. Western Australia's Mt Mulgine is the local case in point: its scheelite carries molybdenum, which is exactly why the flowsheet there is built to pull two products rather than one. Read the Mo number in the rock and you are reading a processing-and-pricing decision that is fixed long before the plant is designed. So is lattice Mo a bad thing for getting the tungsten out? It depends entirely on the form, and this is the crux. Molybdenum sitting as its own mineral, which is molybdenite is the easy case. Molybdenite floats off cleanly in processing and can even be sold separately. Molybdenum dissolved into the scheelite lattice is the hard case. Because it is built into the crystal, no amount of gravity, magnetic or flotation work can reject it — it rides with the tungsten straight into the concentrate. It does not lower how much tungsten you recover, but it contaminates the concentrate with a penalty element, forcing an extra chemical step downstream: the Mo dissolves alongside the tungsten during alkaline digestion and then has to be precipitated back out as a sulphide to reach APT specification. So a high-Mo scheelite is genuinely the awkward one — you carry a de-molybdenisation cost you cannot avoid with physics, and because the Mo is dispersed in the lattice rather than present as discrete molybdenite, you cannot bank it as a by-product credit either. The severity tracks the grade: a few hundred ppm is usually manageable, while a properly powellitic (Mo-rich) scheelite becomes a real concentrate problem. 8.00 — THE EXPLORER'S TRICK Why scheelite glows — and how it gets found Scheelite has a gift for explorers: under short-wave ultraviolet light it fluoresces a bright sky-blue. Swap some tungsten for molybdenum and the glow shifts toward cream-yellow — so the colour itself hints at composition. Geologists have mapped skarns at night with UV lamps for a century, and the trick still re-opens old mines by lighting up ore left in the walls. Figure 8: The same rock, two lights. Pure scheelite glows blue under short-wave UV; molybdenum shifts it to yellow. This single property turns a UV torch into a tungsten exploration tool. Schematic by Samso; fluorescence behaviour per Wikipedia (Scheelite), mindat.org and Geology.com. In my previous life working on a tungsten project in New Zealand, the identification of scheelite was indeed a sight to see (Figure 8.5). In my opinion, the Kirwan Hill project still remains one of the untapped tungsten occurrences that could be a game changer if the project was worked on in 2026. Figure 8.5: A scheelite core sample form the Kirwan Hill Tungsten Project, New Zealand. The sample shows scheelite in brecciated unit and occurs as coarse grains as well as in a disseminated form. Samso take Fluorescence is not a party trick — it is a low-cost mapping vector. A handheld UV lamp run over outcrop, drill core or mine walls converts an invisible problem into a visible one. For a small-cap explorer, that is meaningful: cheap nighttime traverses can rank targets before a single expensive metre is drilled. 9.00 — KNOW YOUR ORE MINERAL Scheelite (skarns) vs wolframite (veins) Tungsten comes in two ore minerals, and which one you have tells you a lot about the deposit. Skarns and their carbonate-bound calcium overwhelmingly carry scheelite. The other major ore, wolframite, belongs more to granite-hosted veins and greisens. They look, behave and process differently. Figure 9: The two tungsten ore minerals. Scheelite dominates skarns and gives up its calcium-tungstate identity under UV; dark wolframite belongs to the vein/greisen world. Compiled by Samso from ITIA, mindat.org and mineralexpert.org. The main importance for investors is to understand that Wolframite is the Fe cousin of Scheelite who is a Calcium variant. Discovering these tungsten minerals separately is ok, however, if they are associated in the same ore body, it will create issues in the processing part of the business. Wolframite will be magnetic and as thee ore bodies are commonly associated with magnetic minerals, the separation using a magnetic separator will be hampered. These are some aspects that investors need to keep in mind. IN part 2 of the Understanding Tungsten series, we will introduce the issues for Scheelite as the calcium variant of a tungsten mineral. 10.00 — IN PRACTICE, AT HOME The Australian skarn: King Island and beyond Australia's exemplary tungsten skarn is Dolphin, located at Grassy on King Island. It features scheelite in garnet-pyroxene skarn surrounding the Devonian-Carboniferous Grassy Granite, discovered in the early 1900s and intermittently mined for a century. It exemplifies the classic characteristics: carbonate host, granite contact, fault control, and retrograde high-grade ore. In Western Australia, Mt Mulgine (Tungsten Mining NL, ASX: TGN) contains scheelite with molybdenum, highlighting that the predicted Mo content in the geology becomes a significant factor in processing and pricing downstream. Figure 10: Selected Australian tungsten settings. Skarn-hosted scheelite (Dolphin, Mt Mulgine) contrasts with vein/greisen wolframite (Mt Carbine). Positions indicative only. Compiled by Samso from Group 6 Metals, Tungsten Mining NL and Geoscience Australia disclosures. But Dolphin is neither the biggest nor the only Australian skarn. The country's largest tungsten resource is O'Callaghans (Greatland Resources, ASX: GGP), about 10 km south of Telfer in WA — a flat-lying polymetallic skarn where scheelite- and wolframite-bearing amphibole–pyroxene–garnet rock replaces limestone above the reduced O'Callaghans granite. Its December 2025 resource is ~70 Mt at 0.35% WO₃ with copper, zinc and lead by-products, and the proposed flowsheet is pure Part 2: flotation for the base metals, then magnetic separation and gravity to recover the tungsten. Two more wear the classic fingerprint. Kilba (TGN, Ashburton WA) is scheelite in skarn / calc-silicate against the Kilba granite — and, as section 4 noted, its coarse, gravity-amenable scheelite is a textbook retrograde signature. Molyhil (Thor Mining, ASX: THR), 220 km north-east of Alice Springs, is a scheelite–molybdenite–magnetite skarn — a small but genuine W–Mo skarn that wears its molybdenum on its sleeve. Is Watershed a skarn? Not quite — and that's the point The most useful example is the awkward one. Watershed (TGN, 130 km north of Cairns) sits in the Hodgkinson Formation — a pile of deformed metasediments (conglomerate, psammite, slate), not a clean limestone. It carries genuine skarn minerals (garnet, clinopyroxene, actinolite), so the rock is calc-silicate / skarn-altered; but the scheelite was largely emplaced in shear-controlled veins and then upgraded during later metamorphism. The published work describes it as a "metamorphic tungsten upgrade after a magmatic-hydrothermal event" — a hybrid that sits between a contact skarn and a metamorphic / vein deposit. Its resource is large and low-grade (~49–70 Mt at ~0.11–0.14% WO₃). Cookes Creek is a similar matter of degree. It isn't a single named skarn but a granite-and-workings cluster in WA's Gascoyne; the defined resource on its margin — Big Hill (~11.5 Mt at 0.15% WO₃) is vein-hosted scheelite within a tremolite-rich calc-silicate unit: skarn-affiliated, but vein-controlled rather than a classic replacement body. So I would call this a hybrid and not a yes/no in regards to being a skarn deposit. Table 3: Australian Tungsten Deposits nd their relationship to being a skarn mineralisation. Sources: O'Callaghans — Greatland Resources (ASX: GGP) December 2025 Mineral Resource (~70 Mt @ 0.35% WO₃) and Newcrest skarn geology; Dolphin — Group 6 Metals / Kwak & Tan (1981); Kilba, Big Hill, Watershed, Mt Mulgine — Tungsten Mining NL disclosures; Molyhil — Thor Mining (ASX: THR) / NT Geological Survey; Mount Lindsay — Venture Minerals (ASX: VMS); Mt Carbine — EQ Resources (ASX: EQR). Watershed geology — Hodgkinson Formation / Mossman Orogen studies (the deposit is described as a metamorphic tungsten upgrade of a Carboniferous magmatic-hydrothermal system). Deposit (owner) Setting Skarn? O'Callaghans (Greatland, GGP) Polymetallic W–Cu–Zn–Pb replacement of limestone above the O'Callaghans granite, Telfer WA ✓ Classic skarn — largest in Australia Dolphin / King Island (G6M) Scheelite in garnet–pyroxene skarn at the Grassy Granite contact, TAS ✓ Classic skarn Kilba Scheelite in skarn / calc-silicate against the Kilba granite, Ashburton WA ✓ Skarn / calc-silicate Molyhil (Guardian Metals) Scheelite–molybdenite–magnetite skarn, Aileron Province NT ✓ Skarn (W–Mo) Mount Lindsay (Critica Limited) Sn–W magnetite skarn, NW Tasmania ✓ Skarn (Sn–W) Watershed (TGN) Scheelite in calc-silicate / skarn-altered metasediments + shear veins, Hodgkinson Fm, FNQ ~ Skarn-altered — not a classic carbonate skarn Big Hill / Cookes Creek Vein scheelite in a tremolite-rich calc-silicate unit on the Cookes Creek granite margin, WA ~ Calc-silicate-hosted, vein-controlled Mt Mulgine (TGN) Porphyry / vein-stockwork W–Mo in greenstone + greisen, Murchison WA ✗ Not a skarn (porphyry / vein) Mt Carbine (EQR) Wolframite in quartz veins / greisen, Far North QLD ✗ Not a skarn (vein / greisen) — SAMSO CONCLUDING COMMENTS The geology is the moat Like all mineral deposits, when it comes to classificating a deposit style type to define deposits as occurring the same way, I find that no single deposits ever sits in the same framework that an institution demands. My experience has shown me that a broad framework of conditions will work but when a discussion starts, everything seems to just falls apart and the final conclusion always seem to fall back to individuality rather than a group classification. Hence if we strip a tungsten skarn back and it is almost elegant in a Type case of a skarn tungsten deposit. It is a granite heat source, source rock, that breathes fluid into a limestone, the limestone gives up its calcium, and tungsten is locked away as scheelite at the reaction front. I think for reader, it is away to remember all the factors we have discussed in this Samso Insight, but I would not hold these points as a hard and fast rule to understanding skarn tungsten deposits. Everything an investor cares about downstream, grade, by-product molybdenum, how hard the ore is to process, whether a UV torch can cheaply find more is written into that geological setup before any mining decision is made. That is the reason Samso keeps coming back to the rocks and the process that creates the minerals and hence, the metal abundances. In a critical-minerals cycle full of noise, the contact between a granite and a carbonate is one of the few things that does not move with the headlines. Understand the skarn, and the tungsten story stops being a ticker and starts being a deposit. References & sources U.S. Geological Survey — Environmental Geochemistry of Skarn and Polymetallic Deposits, Open-File Report 02-195 (Chapter H). Skarn classification and W-skarn behaviour. Newberry, R.J. & Einaudi, M.T. (1981) — reduced vs oxidised tungsten skarn division; summarised in the EarthSci.org / USGS skarn literature. Meinert, L.D. et al. — World skarn deposits classification (resource split ~48% skarn). Via tungsten beneficiation review literature. Kwak, T.A.P. & Tan, T.H. (1981) — "The geochemistry of zoning in skarn minerals at the King Island (Dolphin) Mine," Economic Geology 76(2): 468–497. Bowman, J.R. et al. (1985) — CanTung E-Zone scheelite skarn isotope study, Economic Geology 80(7): 1872–1895. Geology Science — "Skarn deposits" overview; "Scheelite: properties, formation, occurrence." Wikipedia — Scheelite (CaWO₄, fluorescence, occurrence); cross-checked with Britannica and mindat.org (min-3560). Group 6 Metals Limited (ASX: G6M) — Dolphin Tungsten Project overview & exploration pages. Mineral Resources Tasmania — King Island geology documents; Callaghan (Resource & Exploration Geology) Dolphin/Bold Head report. International Tungsten Industry Association (ITIA); mineralexpert.org — scheelite vs wolframite mineralogy & WO₃ contents. Tungsten Mining NL (ASX: TGN) — Mt Mulgine (scheelite + molybdenum) disclosures. Hsu, L.C. (1977) — “Effects of oxygen and sulfur fugacities on the scheelite–tungstenite and powellite–molybdenite stability relations,” Economic Geology 72: 664–670. Li, W.-S., Ni, P., Pan, J.-Y., et al. (2023) — “The genetic association between vein and skarn type tungsten mineralization in the Yaogangxian tungsten deposit, South China,” Ore Geology Reviews 159: 105544 (open access, CC BY-NC-ND). Cover photo: Skarn (tactite) (GeoDIL number - 511), Nessa Eull. CC0, via Wikimedia Commons (https://commons.wikimedia.org/wiki/File:Skarn_(tactite)_(GeoDIL_number_-_511).jpg). Reproduced photograph, shown faded under a navy overlay on the article thumbnail. 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 work, please head over to our Support Page and give us a helping hand in any of the ways listed. This is a new initiative 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. 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. 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The Challenger Gold Mine Story The Challenger Gold Project is one of these forgotten projects that has more to give than people realise. The Challenger gold deposit is 750 km north-northwest of Adelaide in Archaean rocks of the Gawler Craton. The Challenger Mine is the most significant gold-only discovery made in South Australia. It took over three years of exploration to discover the ore body in 1995 by Dominion Mining Limited. They used what was then a new form of geochemical sampling called “calcrete” sampling. A regional sampling grid of 1.6km x 1.6km was used to cover the tenement area. The sampling anomaly was followed up with drilling to test the calcrete geochemical anomalies. After the discovery continued reconnaissance and infill calcrete sampling has defined over 300 calcrete gold anomalies over an area of approximately 10,000 km². Drilling of 50 of these prospects has revealed numerous occurrences of gold mineralisation but failed to define any further mineable reserves. Calcrete geochemical data, including the anomaly that led to the discovery of the Challenger deposit. (source: Peter Williams, David Frances, Jerome Gillman & Chris Bonwick (2003); Geophysical characterisation of the Challenger gold deposit, Gawler Craton, South Australia, ASEG; Extended Abstracts, 2003:3, 19-27, DOI: 10.1071/ASEGSpec12_02) One of the many hundreds of samples was the “lucky” sample and recorded above background values of gold in calcrete. That lucky sample led to the discovery of what is now a mine that produced 1M ounces of gold since mining started in 2002. Like many discoveries, the initial drilling intersected high-grade ore, but subsequent drilling was not consistent. Infilling of the regional sampling grids occurred by progressively decreasing the size of the patterns down to 400 m × 400 m then 100 m × 50 m, eventually homing in on the Challenger gold and arsenic anomaly. An initial RAB drilling program targeting the calcrete anomaly delivered an intersection of 28 m @ 5.8 g/t, which launched the Challenger project. (Androvic, P, Bamford, P, Sandt, M, The Challenger Gold Mine, 2008). Cross-section and drill hole geochemical data across the Challenger geochemical anomaly showing anomalous values associated with the Challenger mineralisation. (source: Peter Williams, David Frances, Jerome Gillman & Chris Bonwick (2003); Geophysical characterisation of the Challenger gold deposit, Gawler Craton, South Australia, ASEG; Extended Abstracts, 2003:3, 19-27, DOI: 10.1071/ASEGSpec12_02) More detailed drilling with detailed structural interpretation led to the discovery of a series of tightly folded linear shoots. Mineralisation occurred as discrete shallowly (30° to 45°) plunging shoots hosted by granulite-facies paragneiss, which lacks marker horizons to aid in geological and structural mapping. High-grade moderate to steeply dipping auriferous quartz veins occur within the shoots. The Challenger Landscape Geophysical Signatures What is interesting is that no significant structures are observable in the area in regional (400 m line spacing) aeromagnetic data. Most of the people I have spoken to tell me that there are no visible geophysical signs of the deposit. The diagrams below show the difficulties in using geophysics as a tool. There is some slight inference to the deposit, but like all hindsight theories, they are useless in real-life exploration. Regional-scale geophysical data from the northern Gawler Craton showing locations of gold deposits and prospects. Co-ordinates are AMG zone 53. SAEI TMI aeromagnetic data. (source: Peter Williams, David Frances, Jerome Gillman & Chris Bonwick (2003); Geophysical characterisation of the Challenger gold deposit, Gawler Craton, South Australia, ASEG; Extended Abstracts, 2003:3, 19-27, DOI: 10.1071/ASEGSpec12_02) The gravity data show more detail, but it is not a great use for identifying a target. Regional-scale geophysical data from the northern Gawler Craton showing locations of gold deposits and prospects. Co-ordinates are AMG zone 53. AGSO Bouguer anomaly gravity data. White circles show locations of gold mineralisation. Imaging by Cowan Geodata Services. (source: Peter Williams, David Frances, Jerome Gillman & Chris Bonwick (2003); Geophysical characterisation of the Challenger gold deposit, Gawler Craton, South Australia, ASEG; Extended Abstracts, 2003:3, 19-27, DOI: 10.1071/ASEGSpec12_02) The Mining of Challenger Challenger started as an open pit in 2002 and was mined to a depth of 135m and completed in April 2004. A total of 120,000 ounces of gold was mined. Due to the massive nature of the Challenger gneiss, the mining process was complicated. The poor natural fracturing and indistinct geology in the pit resulted in the problematic interpretation of ore zones. This lead to poor geological control. The actual structural geometry of the ore was not apparent during the open-pit mining period as no ore was exposed for mapping in the early part of the mining process. The folded nature of the ore was known, but the complexity of the ore was not fully realised. What was suitable for the mine was the “free dig” nature of the top 33m of the weathering profile. Challenger is a structural monster, and a laterally extensive shear zone defines the orebody with shoots plunging 30º to 030º – 035° (AMG) or 055° – 060° mine grid. Cartoon showing the progressive shortening of psammitic beds (So) to produce tight to isoclinal folds that ultimately are transposed by the axial planar foliation (S1) and local shear zones along attenuated limbs (S2). The psammitic bed could also represent leucosome melt bands and quartz veins and is independent of scale (from Standing, 2003). (source: Androvic, P, Bamford, P, Sandt, M, The Challenger Gold Mine, 2008) Speaking to some people who have worked in Challenger, they tell me the mine is called Challenger for a reason. The complexity would have caused a lot of dilution during the mining of the ore body. There are at least ten different known types of ore geometry, and I would not doubt that there would be even more that have not observed. In 2001, Challenger had a reserve of 110,000oz of contained gold and the mine produced over 460,000 oz up to June 2008. In the three financial years to 30 June 2008, the mine produced 325, 600 oz from 1.18M tonnes at an average grade of 9.1 g/t. The average operating cost was $319/oz (Not sure if the author is quoting in AUD or USD). That is an incredible costing. Remember that the gold price was just over USD400 in 2005 and about USD800 in 2008. Today, Challenger has produced over 1.1M oz of gold which is a testament to the endowment of the mine. What’s the upside? As my “devoted” readers know, I am all about exploration and the opportunity to find new deposits. I wrote about these opportunities many times such as Bellevue Gold Limited (ASX: BGL) and their Bellevue Gold Mine (Best Way to Find a Gold Mine: Bellevue Gold Project, an Exploration Success), Breaker Resources Limited (ASX: BRB) and their Bombora Project(Best way to find a Gold Mine: A Mineral Exploration Success) and the recently taken over Echo Resources Limited (ASX:EAR) (Echo Resources (ASX: EAR) – King of the Yandal Province). These stories are what excites me about the Challenger area. The last concentrated exploration effort would have been the period up to the discovery of Challenger in the late 1990s. All exploration would have stopped post-2000. During the search for Challenger, Dominion discovered several satellite prospects that were followed up by Southern Gold Limited (ASX: SAU). In 24th February 2010, SAU announced their maiden JORC-compliant Gold Resources of 102,600oz within the Challenger Area Gold JV. Trafford Resources Limited which is now Tyranna Resources Limited (ASX: TYX) took over the leases and had more exploration success and announced a JORC 2012 resource of 319,000oz over the JV leases. These two companies have made these discoveries based upon the work from the Dominion days while they were fine-tuning the discovery of Challenger. The lack of activity over the years is why I am excited. That’s one mine, 1.2M oz mined and not much else. If you were to draw a 100km radius around challenger, you would not find anything. In the Kalgoorlie and the Menzies area of the Eastern Goldfields of Western Australia, you would find thousands of operations. Comparing statistics, the same 100km radius around two well-known mining district in the Eastern Goldfields, Kalgoorlie and Menzies, you get a very different picture. There is one mine at Challenger while you have over 4,000 “mining activities” around Kalgoorlie and over 2,000 around Menzies area (Mining Activities = Mines that are classified as Shut, Proposed, Operating or Care and maintenance. Mindex Data from Department of Mines, Western Australia.) And when you look at Australia’s gold operations, it is even bleaker. The figure below does not even show Challenger as the big yellow circle is Olympic Dam. As many would know, I am an exploration geologist, and I look out for projects that have long legs for opportunities and have a cheap entry. To me, the Challenger area has lots of potentials (comes with lots of money required to explore) and the supergene deposits that are being discovered by Tyranna and Mamota Resources Limited (ASX: MEU) are what is the cream. These kind of deposits were all the rage in the 1980s in the Eastern Goldfields and is now an extinct creature. All the supergene low hanging fruits would have been taken out in the 1980s and 1990s. As one would expect, the concentration in activities is directly correlated to the quality of infrastructure. It is no secret that the mining infrastructure in and around the Eastern Goldfields are all an A-grade level. For this reason, Challenger is still “untouched” and the primary factor has been the remoteness and the lack of exploration funding since the 1990s. The Challenger area is remote and if not for the robustness of the gold price, we would not be even entertaining this prospect. Significant Gold Deposits in Australia, 2016. (source: Geoscience Australia) The best example of a similar scenario is when Gold Road Resources Limited (ASX: GOR) took up practically the whole Yamarna Greenstone Belt. At a time not too distant away, it was felt that the greenstone belt in the Yamarna was of different age and tectonic sequence and hence would not be mineralised like the Norseman-Wiluna belt. Well, 6.6Moz resource of which 3.9Moz is in Reserve later, this belt is pretty well endowed with gold. It is not too hard to think that this Challenger area could be that. There are more facts that there is more to find then there are facts to disprove this theory. Work by Tyranna Resources is factual evidence that the supergene mineralisation scenario is well and truly alive and well. The Challenger Gold Mine. (2018)(source: Tim James) The Samso Way – Seek the Research 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 a 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. 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. 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 – David Edgecombe and the Discovery of the Challenger Gold Mine Looking back at my unique experience in the mineral exploration industry, I feel privilege to have been in the tail end of an industry that was at the dawn of the new age of "modern" exploration. I think, I can say that the 1990s was pretty much the beginning of new techniques that involved less "boots on the ground" kind of work. Over the years, there are discoveries that change a region's prospectivity forever and I can safely say that the Challenger Gold Mine in the Gawler Craton is one of them. In this episode of Coffee with Samso, I sat down with David Edgecombe, the geologist who was instrumental in the discovery of the Challenger Gold Deposit in outback South Australia. David is not simply a man who happened to drill a good hole. He is a geologist's geologist — one who understood the rocks, trusted the science, and applied a methodology that was, at the time, genuinely groundbreaking in this part of the world. At 1.2 million ounces of gold, Challenger remains an enigma in the Gawler Craton. There is nothing comparable within a radius of several hundred kilometres. And yet, as David explains, the discovery almost didn't happen. A single calcrete sample — one out of more than 3,600 collected — came back at 180 parts per billion gold. Move that sample 200 metres in either direction, and the number drops below 20 ppb. The story of Challenger is as much about luck as it is about the brilliance of the exploration strategy. What makes this conversation particularly compelling is that David takes us back to the very beginning — the regional sampling programs, the calcrete geochemistry methodology that Dominion Mining pioneered in South Australia, the moment that anomalous result came through on the fax machine late one evening, and the drilling program that confirmed one of the more significant gold discoveries in Australian exploration history. This is a conversation about discovery methodology, about what works and what doesn't, about the value of good science over noise, and about what the next generation of explorers should be looking for in one of Australia's most underexplored terrains. In the words of Samso, get your favourite beverage and sit and listen to another great insight from Coffee with Samso. Coffee with Samso - Episode 219 | The Discovery of the Challenger Gold Mine | Adelaide | South Australia Audio Podcast Coffee with Samso - Episode 219 | The Discovery of the Challenger Gold Mine | Adelaide | South Australia Chapters 00:00 Start 00:10 Introduction 03:12 Introduction of David Edgecombe 04:32 The South Australian Connection 05:31 The South Hilda Project - The Beginning of Interest in Gold Exploration 06:08 - The Introduction of Exploration in the Challenger Area and Calcrete Sampling 06:58 The Realisation of Gold and Calcrete - Bounty Gold Mine 07:40 Adelaide Resources - Andromeda Metals Limited - Realisation of the Potential - Calcrete Sampling. 08:42 The Calcrete Sampling Program 10:29 Tightening of the Regional Sampling Program. - Initiating the Drilling Program. 11:22 The Discovery Hole - The Sixth Hole 12:37 Confirmation Hole - The Seventh Hole 13:02 The Mother Lode - Drilling the Lode Plunge 13:54 The Complication of Corporate Activities 14:33 Did David Think It was Going to As Big As It was? 16:29 Does David think Challenger is still feasible? 17:04 Is Challenger a Geochemical or Geophysical Discovery? 17:39 Geophysical was not Impactful in the Exploration 18:40 No Outcrop - Surface Description 19:27 Modern Explorers should go back to Calcrete Sampling 20:29 New Thoughts on Exploration - XRF 21:25 The Importance of Regolith 22:09 Did the MMI work ? 23:04 The XRF Sampling Potential 23:56 The Mystery of Sampling Points 24:28 Sampling the calcrete and soils with XRF. 25:21 The Naming of Challenger 27:09 Mineral Exploration takes time. 28:06 Was there a sliding doors moment that meant Challenger was not Discovered? 28:36 Timing of the Discover soil sample. 29:09 Was It a Eureka moment? 29:21 Closest Sampling result 29:41 Infill Discussion 30:37 Latest Gold Potential in Gawler 31:19 Could the same exploration style work today in 2026? 32:16 Should we go back to Calcrete sampling ? 34:15 Was there much Iron in the Challenger Area? 35:57 Is Challenger Alone ? 37:17 The Element of Luck 38:22 How close were you to missing the target ? 39:33 Other Sampling Techniques ? 40:37 Interpretation of the Other sampling Techniques ? 42:09 What Would David Tell A Younger Geologist? 44;03 The Wisdom of Age ? 44:34 Any last minute Wisdom to share? 45:20 The Myth of Geologist Destroying the Environment 46:29 David The Geologist. 47:20 Conclusion 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. Always read the announcement, understand the geology, and follow the development pathway before forming an investment view. 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 initiative 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 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. 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Anna Petts, Program Coordinator - Characterising South Australia's Cover at Geological Survey of South Australia. To many people the Gawler Craton is famous for IOCG deposits (Iron Oxide Copper Gold). The most famous mine, Olympic Dam started the rush for these giant deposits. When it was announced that there was this monster of a drill intercept, RD10 with 145m at 2.2% copper together with uranium and gold, this news created a rush like the wild west where everyone flocked to the region. Subsequent to the rush, two other famous discoveries were made and they are Prominent Hill and Carrapateena. However, it was not until 2001 when Prominent Hill was discovered and in 2005 that Carrapateena was discovered. All this action was in the eastern region of the Gawler Craton and this region was named the Olympic Metallogenic Belt or the IOCG Belt. Figure 1: The Olympic Cu-Au Province in the context of the geology of southern Australia. The main lithotectonic units of the Gawler Craton and Curnamona Province are shown and are interpreted from surface observation and geophysical data. The Olympic Cu-Au Province occurs in the eastern Gawler Craton and also indicated is the Central Gawler Gold Province, a gold-dominated metallogenic province formed during the same early Mesoproterozoic tectonic event that formed the Olympic Cu-Au Province. Inset shows the location of the Gawler Craton and Curnamona Province in the context of major Archean and Proterozoic terranes of Australia. (Source: Reid, Anthony. (2019). The Olympic Cu-Au Province, Gawler Craton: A Review of the Lithospheric Architecture, Geodynamic Setting, Alteration Systems, Cover Successions and Prospectivity. Minerals. 9. 371. 10.3390/min9060371. The complexity of the surrounding area is not for the faint hearted as they are still arguing about the origins and formation of Olympic Dam. Figure 1 gives a high level summary of the Gawler Craton and its different geological events. There is no doubt that there is no simple answer, but what the mineral explorers do know very well, is that their Return On Investment (ROI) here is not high. For this reason, the Gawler remains one of the least explored regions on the Australian continent. Hence, this discussion with Anna Petts is all about the prospectivity of the Gawler and what the Geological Survey of South Australia is doing to help explorers have the edge and the resources to understand and explore the region. Gold Discovery in the Gawler Craton In 1995, there was the discovery of a gold mine in the other half of the Gawler Craton - the more "boring" part which birthed the Challenger Gold Mine. This set up a rush to the area, but, till today, there is still no Challenger replica. To me, this has got to be one of the mysteries of Australian mineral exploration. If you draw a radius of 100km from the Challenger Gold Mine, there is nothing that is better than a prospect to be found (Figure 2). It will be pretty safe to say that the lack of discoveries is probably due to the fact that the last 20 years of exploration has been few and far between due to a lack of exploration funding and the historical low ROI in looking for minerals in the Gawler Craton. Figure 2: The spatial emptiness of big discoveries within the Gawler Craton. The comparison to a typical mining town like Kalgoorlie, there are too many producing assets to count. (Source: Taiton Resource Limited) Why I like the Gawler Craton My first introduction to the Gawler Craton was way back in 2019 when I looked over the Jumbuck project. Figure 2 was the result of that exercise when I was involved in trying to list a company with the project. I could see that there had not been any serious exploration in the region. The conversation that I had with people was that it is hard to make discoveries. The geophysics were not picking anything up. There was not enough data out publicly that companies could use to make discoveries. The lack of success was biting into exploration funding. Imagine a province like the Gawler Craton that still hides major discoveries. Look at the statistical probability of not finding another Challenger. This has to be a great place for the average mineral explorer who has the courage to test their exploration skills. Looking at the western province of the Gawler, the western part of the Stuart Highway, there are no producing mines currently. There are three deposits (Challenger is closed) that exist and two are currently being drilled out to see if they make the cut to become producing gold mines. In one conversation, I was told that while drilling for iron ore, they came across a Gossan. This shows the variability of the area. It was only two to three years ago that the south-western part of the Gawler was identified as a new nickel sulphide area. Samso's Conclusion So what do I make out of this conversation with Anna? What I got out of it is that there is now a flow of data that is being made public for explorers. The understanding of the Gawler is going to take a magnitude step forward in the near future, if not already. The testing of theories is now being played out with companies such as: Indiana Resources Limited (ASX: IDA), Cobra Resources Limited PLC, Investigator Resources Limited (ASX: IVR), Petratherm Limited (ASX: PTR), Barton Gold Holdings Limited (ASX: BGD), Marmota Limited (ASX: MEU) Taiton Resources Limited (ASX: T88) The company that I am involved with is testing the concept that there is an unloved and unrecognised mineral system in between the Olympic Dam Belt and the Gawler Craton gold province (See Figure 3). The concept of a theory like this can be easily considered to be shooting with a long bow, but the recent announcement has made good evidence that there could be some truth to the madness. Figure 3: The region that Taiton Resources Limited is testing its theory that there is a mineral system in the region (Red) which is now proven to be tapping the same source as the Olympic IOCG Belt (Green). The zircon test has come back with age of 1597.8 Ma, which is atypical of Olympic Dam. (Source: Taiton Resources Limited). The concept is that the red region (Figure 3) has been misinterpreted in the past and there lies a mineral system that may be fertile and endowed with mineralisation. This is the postulation and as mineral explorers, we are supposed to be testing the boundaries of belief. The role of the explorer is to come up with the ideas and the concept, and of finding minerals where others have missed. The role of the Geological Survey is to provide the tools and the solutions to aid discovery. After speaking with Anna, I feel that the Geological Survey is contributing a lot at the moment. The theory for Taiton Resources came about due to the data release in around 2020. The idea was born and the money was raised to test the theory. As a director of the company and as the person who spoke to the vendor of the Highway project, David McSkimming, I will say that the theory for Highway is the best I have heard. I like the idea that there is a different thinking to understanding the mineral system in this region. What the company has done to date has proven that this theory is still valid. Not only have we proven that our original story is valid, but we also think that we could be on the edge of two tectonic events and that would mean we are sitting on the margin of a major structural feature. We all know that major structural features are the blessings for an exploration project. None of what I had described would have been possible without the work generated by the Geological Survey of South Australia. Anna has clearly described what the Survey is doing and what datasets are now available. The new datasets will allow future explorers to take on what is potentially the last mineral province that has not been searched with intent for the last twenty years. Video Chapters 00:00 Start 00:20 Introduction 01:51 About Anna Petts 02:24 Disclaimer 03:04 The potential at Gawler Craton 06:07 The cover at Gawler Craton 10:39 Uncovering the lack of recent significant exploration stories 16:52 The exploration government initiatives 20:05 Potential mining hotspots 25:17 Understanding the overall complex of the big discoveries 29:01 Prospectively at Gawler Craton 32:31 All about the Ultrafine+ project 44:39 Potential mining location worth looking at 46:10 Conclusion 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.ure. Coffee with Samso Experience

Declaration: I am a shareholder of Cyclone Metals 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 Cyclone Metals Limited (ASX:CLE) story is one that immediately resonated with me the first time I was shown the playbook. I recognised the value of the Iron Bear project and had no problem putting some hard-earned cash into the company. The project lies in the province of Quebec and is one project that is not easily recognised by the average investor unless you have come across Champion Iron Limited (ASX:CIA). Cyclone Metals operates in the magnetite industry, and its recent surge in popularity is still regarded as a temporary trend without long-term prospects. It's understandable to believe that iron ore revolves around DSO and that haematite is the sole iron-rich mineral worth knowing. My thoughts are that when you look at Figure 1, the Cyclone Metals Limited price, compare it to Fenix Resources Limited (ASX:FEX) and Champion Iron Limited (ASX:CIA), and then wonder if this could be like investing in Fortescue Limited (ASX:FMG) or Woodside Energy Limited (ASX:WPL) in those early days. Figure 1: Cyclone Metals Limited share price chart as of 27th February 2025. (source: commsec) Magnetite has never been a sexy product in Australia, as the Pilbara Iron Ore Dream is all about haematite and the greater than 62% Fe content. Magnetite was frowned upon until the Chinese Enterprise arrived on our shores in 2005/2006 and created a frenzy of iron projects and the famous MOU announcements that seem to trigger alarming share price gains. However, the festivities did not last and promptly ended in 2009. Those companies that got hooked onto that magnetite festival spent the next decade trying to "make it work," exited, or divested to entities that seem to have the holding power. The iron ore rush of the mid-2000s created some promising mid-cap companies inspired to be iron ore producers, but history shows that the only real sole survivor was Fortescue Limited (ASX:FMG). The sole Chinese producer left was a company that could not fail, Citic Pacific Mining, which has built a large operation, the Sino Iron Project, an hour south of Karratha, Western Australia. The concept of upgrading the magnetite ore that typically has a low iron content to a grade in the plus 60% range was new to Australia, but as I have learnt over the years, that is what the rest of the world has been doing. Raw magnetite iron ore has a low iron content, but once it’s processed into a concentrate using beneficiation, it’s a high quality (65% Fe) product with low impurity levels – an ideal material for making steel pellets, which is the preferred feed in steelmaking. - Citic Pacific I remember being at the beginning of that project in 2007, thinking these guys are out of their minds. I witnessed an operation going from living in tents, old doggers with no ensuite, to the luxury of everyone having ensuites in the space of 9 months. We were told that this was going to be the biggest operation in Australia at AUD $2B. I think within 12 months of my departure from that project, I heard it had gone magnitudes over that number. As I mentioned previously, the Cyclone Metals story is not obvious as a value-adding process if you have not come across Champion Iron Limited or if you have not understood the value of upgrading magnetite ore. I still have people mentioning that the process will not work, but let's see if his review could change a few mindsets. For those who want to skip to the parts of the review, please use the list below. 1.0 Understanding Magnetite 2.0 The Iron Ore Market 3.0 The Labrador Trough - Canadian Iron Ore District 4.0 The Cyclone Metals Limited Story - Iron Bear Project 5.0 Samso Concluding Thoughts 1.0 Understanding Magnetite Magnetite, as an iron-rich mineral, actually contains more iron than the hematite mineral. However, while hematite ore typically has high concentrations of hematite, magnetite ore usually contains low concentrations of magnetite. Therefore, this type of iron ore must be concentrated before being used to produce steel. The magnetic properties of magnetite ore are advantageous during this process. Although magnetite ore may require more processing, products made from it are generally of higher quality than those made from hematite ore. This is because magnetite ore has fewer impurities than hematite ore; thus, the higher cost of processing magnetite ore can be offset. Australians only understand haematite as an iron ore mineral, but what is relatively unknown is that the Northern American iron ore is mainly magnetite. The Chinese use magnetite, and as they are the conglomerate of steelmaking, that speaks volumes. Magnetite ore is the main iron ore mined in the United States, Canada, and other iron-rich regions worldwide. In the US, major mining sites include the Mesabi Range in Minnesota and the Marquette Range in Michigan. These areas are part of the broader Iron Range, known for significant iron ore deposits. In Canada, the majority of magnetite mining takes place in what is known as the Labrador Trough, which is particularly iron-rich and is where mining companies focus on exploration and development. Cleveland-Cliffs is a key player in the magnetite mining industry, operating five iron ore sites, including the Hibbing Taconite joint venture in Minnesota’s Mesabi Range, which produces approximately 8 million metric tonnes of magnetite ore annually. The company is also North America's largest iron ore pellet producer. 2.0 The Iron Ore Market As many will know, iron is the staple of civilisation, and Figure 2 gives a schematic view of the major areas where notable iron ore deposits are discovered. One of the obvious messages from Figure 1 is that the central market for iron has been in China; Australia has the shortest distance to market; however, the rebuilding of the US is literally next door. Interestingly, the recent tariffs have not mentioned iron ore, and the steel-making machines in the US need cost-effective iron ore. Figure 2: Worldwide distribution of iron ore deposits. (source: [1]) There is a reason why the Chinese State-Owned Enterprises (SOE) came flooding into Australia like they did in the mid-2000s, and that is the distance to market. The Pilbara is flooded with iron from haematite (30% plus to 62% plus) to even more magnetite. There are multiple billions of iron-bearing geology in the region, and that is still going to be the mecca for iron ore, for now. The old business had been all about mining haematite (Figure 3), but as we are all learning with the green energy revolution, the green iron phenomenon is just being played out. Figure 3: Mining haematite as iron ore. This is not saying that the haematite iron ore business is going to be bearish. Like crude oil, the call for a ban on procuring oil is as ludicrous as the thought that the mining of iron-ore oxides is losing market share. This will never happen as long as you are supplying the higher end of the market. The big story will be how much disruption the Simandou Iron Ore mine (Figure 4) will do to existing higher-grade projects and how it will severely reduce the economics of the lower-grade companies. Figure 4: The Simandou Iron Ore project in Guinea. (source: GMK Centre) The magnetite business is not DSO, but it's all about producing the pellets (Figure 5), which are then shipped to the end user. The haematite game is a Direct Shipping Ore process and involves no processing. Figure 5: Magnetite products. The top left is from the Sino Iron Ore project in Western Australia. The top right and bottom are products from the Cyclone Metals Limited Iron Bear project in Canada. (source: Sino Iron Ore Project and Cyclone Metals Limited) There are other magnetite deposits that have very high grades in the 60% and 70%, but they tend to be in smaller volumes, commonly in less than 5M tonnes. These types of magnetite ores are rare to non-existent in the billions of tonnes, so this is why currently, the Banded Iron Formation type of magnetite ores is sought after by miners. As the iron ore price trend is in the current range (Figure 6), those who have low costs, like the Pilbara major players who are ranging in USD $25/T, will continue to make money. Those that are selling the magnetite pellets in the range of > 60%, like Champion Iron and potentially Cyclone Metals, will make even more as they are selling "Green Iron," which is potentially selling with a USD $60 to $90 premium to the base price, so I am told. Unlike the oxide ores, the sulphide ores that yield magnetite are a chemical process. The easier you upgrade, the more cost-effective your process is, and the higher grade you are able to achieve. Cyclone potentially fits that bill, as the company tells us, so with fingers crossed, let's hope that is consistent. Figure 6: The iron ore pricing for iron ore with a 62% iron content. (source: tradingeconomics.com) With the market currently expecting increased Chinese demand in 2025, this seems like an ideal time for Cyclone Metals to capitalize on its unique asset. In January, the Chinese government issued CNY 693 billion in new government bonds, more than double the amount from the previous year, indicating that officials are beginning to act on earlier promises to stimulate the country's slowing economy. According to Trading Economics, there is increased optimism that the housing crisis bottomed out last year. Local authorities have reportedly begun purchasing property from major distressed developers, signalling a willingness to support the sector, which is one of the world's largest steel consumers. Meanwhile, major iron ore producer BHP noted that signs of economic recovery in China and rate cuts by global central banks this year are expected to boost demand for precious metals. 3.0 The Labrador Trough—Canadian Iron Ore District Iron ore in Canada comes from four provinces: Quebec, Newfoundland, Labrador, and Nunavut. The major source of iron ore is found in the Labrador Trough, which is bordered by Quebec, Newfoundland, and Labrador (Figure 7). Figure 7: This graph illustrates Canada’s iron ore production by province and territory in 2023. Quebec led with 33.6 million tonnes, representing 57% of the total production. Newfoundland and Labrador followed with 20.2 million tonnes, accounting for 34%, while Nunavut contributed 5.6 million tonnes, making up 9% of the national production. (source: Natural Resources Canada). The Labrador Trough is located in north-eastern Quebec and western Labrador, Canada (Figure 8). It extends in a sinuous southerly direction for 1100 km from Ungava Bay to within 300 km of the St. Lawrence River. Figure 8: Labrador Trough, showing major iron deposits in Quebec and Labrador. (source [1]) The term Labrador Trough is used to describe an extensive geosyncline of Proterozoic rocks that traverses the Quebec-Labrador Peninsula for 1100 km. This belt is about 100 km wide in the central part and narrows considerably to the north and south. The Labrador Trough contains three main types of iron deposits: [1] Soft iron ores are formed by supergene leaching and enrichment of the weakly metamorphosed cherty iron formation; they are composed mainly of friable fine-grained secondary iron oxides (hematite, goethite, limonite). Taconites, the fine-grained, weakly metamorphosed iron formations with above-average magnetite content, which are also commonly called magnetite iron formations. More intensely metamorphosed, coarser-grained iron formations, termed metataconites by G.A. Gross (1968), contain specular hematite and subordinate amounts of magnetite as the dominant iron minerals. 4.0 The Cyclone Metals Limited Story—Iron Bear Project Cyclone Metals Limited's business may seem complicated when considering the technical aspects like the science of upgrading and achieving the proposed high grade. However, the overall business narrative is quite straightforward. The most important part of the Cyclone story is that it is an investment in the last part of a project. The ability to proceed to the production and processing stage has been made simpler with the completion of the binding MOU with VALE, which was released on the ASX (Cyclone Metals and Vale execute Development Agreement for the Iron Bear Project), spelling out all the missing pieces of the project, which are the funding and the potential exit for shareholders. For a company that currently has a market capitalisation of less than AUD $80M (as of 27th February 2025), this agreement sets it up for a pretty comfortable ride to production. The iron ore price (Figure 5) is probably either going to stay in the current range or move higher. The demand from China will have to kick in soon, as they need to stimulate the economy, and the consensus from market commentary seems to agree, at this stage. If this happens, we will be assured that the iron ore price will be potentially higher. Simplistically put, Cyclone has a resource of 16.6 billion tonnes @ 29.3% Fe% (inferred and indicated JORC 2012 compliant—ASX Release—(Significant Mineral Resource Upgrade for Project Iron Bear) and 18.2% magnetic Fe, with a cut-off grade of 12.5% magnetic Fe. I will not pretend to know the science, but from afar, I feel comfortable that the guys that know have pretty much scrutinised the numbers and are ok with it. For me, the Indicated Mineral Resource of 2.15 billion tonnes containing 28.68% total Fe and 19% magnetic Fe is the first important message. The metallurgical report indicating favourable upgrading parameters and grinding of the magnetite will be the key to the rest of the business. The metallurgical points from the ASX release are listed below: Production of a Direct Reduction grade concentrate grading 70.6% Fe and 1.2% SiO₂ with an overall magnetic Fe yield of 88.9%² Production of a Blast Furnace grade concentrate grading 68.9% and 3.4% silica with a magnetic Fe yield of 95.5% Very low deleterious elements (P, MnO, etc.) Favourable grindability indices of BWi = 16.7 kWh/t and SMC = 11.7 kWh/t The other key interest is the infrastructure issues that seem to be also checked off in the ASX release. It is good to remember that there has been a history of iron mining in the area; therefore, Cyclone is not pioneering a new mining region. There is a decent-sized rail line in place, and in a world of iron ore, this is critical. I fully understand the significance of infrastructure, which is why Tier 1 jurisdictions are crucial when evaluating mining projects. Canada, similar to Australia, is a top-tier location for investing heavily in such projects, as the government relies on mining to create national wealth. 5.0 Samso Concluding Thoughts There is an old saying, "Once bitten, twice shy," which is commonly said but sparingly applied in the real world. This is why history frequently repeats itself, and we all make the same mistakes over and over again. For me, that was not realising that the Champion Iron bandwagon still had a lot of legs left in February 2019 and missing out on Fenix Resources Limited (ASX:FEX) at the beginning of that year. When the Iron Bear project came across me, I was all over it. Looking at the business plan for Cyclone, I cannot help but feel that there may be similarities to that of Champion Iron. Looking at the share price chart for Champion (Figure 9), I am hoping that Cyclone will bear some similarities, one would hope. A third of Champion's market capitalisation would be a good prize for most shareholders of Cyclone at this stage (Figure 9). However, as we all know that the market has a habit of doing its own things, one should tread water carefully, and the best option is to take a long-term view. If you take note of Figure 9, it is good to know that the first significant jump in share price was in 2017, so that was 8 years to date. Figure 9: The Champion Iron Limited share price chart as of 25th February 2025. (source: commsec) The Fenix Resources Limited lesson was that I thought the resource was too small, and I could not see how they would be able to monetise the project so far inland with no rail. Well, that was another misconception derived from not understanding the business. The extremely high grade of the product made it commercial. The lesson from that is the high-grade nature of Cyclone is the key. The 72% and even the 68% products that Cyclone is promoting as an end product will put them in premium pricing territory. Another saying in our mining game is Grade is King, and that Cyclone has that grade. For me, the strongest endorsement is the binding MOU. Companies like VALE would not invest significant time during the due diligence phase, sign a non-binding MOU, and then finalize it by making it binding only to walk away afterwards. Additionally, it’s unlikely that a major company like VALE would go through all that effort without signing a binding agreement, only to overlook straightforward issues such as ore upgrade potential, missing infrastructure, technical problems that could threaten the project, or jurisdictional complexities. Vale, formerly Companhia Vale do Rio Doce, is a Brazilian multinational corporation engaged in metals and mining and one of the largest logistics operators in Brazil. Vale is the largest producer of iron ore and nickel in the world. What Could Go Wrong? Iron ore pricing is a key factor that could render Cyclone Metals insignificant. This possibility always exists, and market dynamics are inherently unpredictable. While the fluctuating price remains a concern, the market is currently stable, and with major economies needing to stimulate growth, the outlook for iron ore is not unfavorable. Technical shortcomings in the development of ore processing and upgrading present another possible obstacle. I believe that if there were going to be a problem, the business wouldn't have progressed to this point. Although this is a significant challenge that could cause any business to fail, I think companies like VALE would have identified it. It's also important to note that upgrading magnetite is not a new process. In fact, upgrading magnetite ore is likely the simplest aspect of Cyclone Metals' operations. The next potential issue could be an internal collapse in management, but given the high stakes, I believe it would be addressed swiftly. Paul Berend and Paul Vermeulen are crucial for success, as their experience will propel operations. Other technical and financial staff will be relatively easier to find. The market's view of their performance will be vital for the business's future, influencing overall market confidence in the company. The agreements with the First Nations community will be the next hurdle. From what I have gathered from publicly released information, this seems to be managed. Infrastructure looks ok from what I have researched. The Trump Tariffs are currently creating market turbulence, but I do think that the viability of the business has been shown to be more about the long term than any short term market fluctuations. How the dust settles with the specifics of the tariffs may not even affect iron ore coming from Canada. Like all projects, the access to funding is always the cloud hanging over every business. However, it does appear that the VALE agreement has addressed this part of the business. I believe the challenges facing Cyclone Metals will primarily stem from three areas: a decline in iron ore prices, a conflict with First Nations, and insufficient funding. Based on the news release, there are valid reasons to believe that these issues are currently being addressed. Retail is Not Driving This Narrative Some recent news published in the Sydney Morning Herald - Billionaires bullish on magnetite as new hematite discoveries slow - makes for a good read. A series of magnetite projects are making their run into being upgraded to the numbers mentioned by Cyclone Metals Limited. The introduction of magnetite to feed the Green Iron narrative is no longer being played out in conversations. The moves are well entrenched and remind me of the recent lithium rush. The article talks about the likes of Andrew Forrest and Gina Reinhart making big moves to have a share of the pie. The asset accumulation has already started, and those who are looking to take that ride may have been left standing on the jetty. Reading through the article, it may appear that the good projects have left the port. If anyone questions whether the entire Green Iron initiative is a marketing strategy, in October 2024, a consortium called Green Iron SA was established, consisting of Magnetite Mines, Flinders Ports, Aurizon, and GHD. This group intends to create a magnetite mining operation in the Braemar region of South Australia, with plans to produce export-quality pellets and build a direct reduced iron plant at Port Pirie. The recent bailout of the Gupta-controlled steelworks in Whyalla, South Australia, by the government is another endorsement of establishing a serious green iron ore-steel-making region (Figure 10). Figure 10: GFG Alliance’s mining arm, SIMEC Mining has produced its first high quality GREENSTEEL pellets that will underpin the future of decarbonised steel production in Whyalla, South Australia. This effort aims to establish South Australia as a leading supplier of green iron to Asian markets, utilizing the state's abundant magnetite resources and renewable energy. When you take all those components into consideration, one would have to conclude that this is worth some DYOR yourself and consideration with your financial advisors. 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: Swain, Sagar Kumar, Mishra, Devi Prasad, 2020 Global trends in reserves, production, and utilization of iron ore and its sustainability with special emphasis to India, Vol 68, June, pp11-18 Cover image: Instantaneous Flash in Rolling Mill, Pittsburgh, PA, The Metropolitan News Co., Manufacturers of Souvenir Postal Cards, Boston, Mass. & Germany, no. 2210. Public domain, via Wikimedia Commons (https://commons.wikimedia.org/wiki/File:Instantaneous_Flash_in_Rolling_Mill,_Pittsburgh,_PA.jpg). Reproduced postcard 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 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.

Announcement 1 Sept 2025 Cyclone Launches Pre-Feasibility Study for Iron Bear. Cyclone Metals Limited (ASX: CLE) has announced a major step forward with the commencement of a Pre-Feasibility Study (PFS) for its 100%-owned flagship Iron Bear Project, located in the Labrador Trough, Canada (Figure 1). The appointment of global engineering firm Hatch to lead the study underscores the project’s significance and the Company’s intention to position Iron Bear as a strategic supplier of high-grade magnetite concentrate for the global steel market. Figure 1: Project Location Map (source: CLE) This follows the strong Scoping Study released in August 2025 and represents the transition of Iron Bear into a more advanced phase of development. Cyclone has set a clear timeline, targeting PFS completion in Q2 CY2026. Cyclone CEO and Managing Director, Paul Berend, commented: “The launch of the PFS for Iron Bear, predicated by the outstanding results of the Scoping Study, represents a critical step in our strategy to unlock the value of this world-class asset. With increasing global demand for high-grade, low-emission iron ore products, such as blast furnace concentrate and pellets, Iron Bear is uniquely positioned to meet future market needs. We look forward to advancing the project through this next phase and demonstrating its significant economic and strategic potential.” Key Highlights - A Green Iron Ore Story. Appointment of Hatch, a leading global engineering firm with extensive experience in large-scale iron ore projects. PFS Scope will include: Detailed mine design and scheduling Advanced metallurgical test work Processing plant and infrastructure evaluation (including pelletising studies) Logistics options (rail and slurry pipeline) Capital and operating cost estimates Environmental, social, and permitting studies Marketing studies Comprehensive risk assessment and mitigation scenarios Pelletising Expertise – Cyclone has also engaged IDOM, a consulting group specialising in steel and metals industrial plants, to deliver pelletising plant design and cost estimation. With over 60 years of experience and five offices across Canada and the US, IDOM brings both global expertise and local capabilities. Cyclone’s updated development timeline shows a pragmatic shift in the transition from Phase 1 to Phase 2, moving from April to June 2025 (Figure 2). This adjustment reflects the realities of permitting, approvals, and the sequencing of key operational activities, rather than any fundamental change to the project’s trajectory. Importantly, it also allows for better alignment with Vale’s decision process, which underpins the funding and progression of Iron Bear. With the launch of the Pre-Feasibility Study now formalised as milestone 13, the project remains firmly on track, signalling both momentum and a disciplined approach to managing the complexities of a world-class development. Figure 2: Updated Development Timeline (highlighting Phase 1 to Phase 2 shift) (source: CLE) Next Steps Completion of advanced metallurgical test work. Progress on mine design, logistics, and pelletising plant studies. Ongoing stakeholder and environmental permitting workstreams. Delivery of the PFS in Q2 CY2026, marking the next key de-risking milestone. These next steps mark the transition of Iron Bear from concept to detailed planning, with a clear focus on technical validation, infrastructure design, and regulatory alignment. Each milestone builds towards the delivery of the PFS in Q2 CY2026, which will serve as a pivotal checkpoint in demonstrating the project’s economic and strategic potential. Samso Concluding Comments Cyclone Metals’ Iron Bear project appears to be advancing along a logical roadmap, with the PFS marking a pivotal stage in shaping the project’s future. The dual engagement of Hatch and IDOM signals a commitment to be ticking all the boxes to have technical rigour and market relevance, with a strong focus on sustainability and global competitiveness. The highlight is there is a need to keep the studies that will be in line with any Tier-1 company such as Vale. Investors looking at this announcement need to be reminded that the Cyclone story is unique with the strategic funding arrangement with Vale, ensuring momentum and credibility as Iron Bear progresses. While there are still challenges to overcome such as, permitting, logistics, and market dynamics, the project appears well-aligned with the broader industry trend of securing low-emission, high-grade iron ore supply. As a shareholder of the company, the comfort in the process is the understanding that this business at this stage has minimum technical issues as in most cases, the advancement to a mature study such as a PFS, is only open now to Black Swan events. As I have mentioned in my previous blogs on Cyclone Metals, a partnership with a company like Vale does not come with rigorous due diligence that was taken in the earlier stages of the project. Vale is not a newcomer to the iron ore industry. Vale is not a newcomer to the Green Iron story. Anyone who have had to deal with a Tier-1 company like Vale will know that someone like Vale would not commit its resources and time to a project that they don't have a strong conviction of a positive outcome. For investors and observers, the Q2 CY2026 PFS milestone will no doubt be a critical marker of value creation. For the believers, the Green Iron Ore story is on track and its aligned with market expectations as one of disciplined advancement, careful partnerships, and strong positioning in the global iron ore narrative. As always, #SamsoNews is about looking past the noise and focusing on the facts that matter. Cover photo: Magnetite - Magnetite, Darla Sondrol. CC0, via Wikimedia Commons (https://commons.wikimedia.org/wiki/File:Magnetite_(GeoDIL_number_-_1386).jpg) The Samso Way – Seek the Research At Samso, we emphasise cutting through the noise. As always, DYOR—true insights come from understanding the details behind each milestone, not just the headlines. 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. 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. 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 QUARTERLY ACTIVITIES REPORT FOR THE PERIOD ENDED 30 JUNE 2025 Cyclone Metals Limited (ASX: CLE) has released its Quarterly Activities Report for the period ending 30 June 2025, and the Iron Bear Project is steadily ticking boxes. As readers will remember from our previous Samso News, the Iron Bear project is backed by a strategic partnership with Vale S.A. The quarter saw the completion of critical technical studies, advancement in metallurgical testing, progress across engineering and environmental baselines, and tangible steps toward the upcoming Scoping Study and PFS. For shareholders, Cyclone Metals is focusing on de-risking its flagship 16.6Bt Iron Bear Project in the Labrador Trough (Figure 1). Figure 1: Iron Bear Project (source: CLE) Cyclone’s CEO and Executive Director, Mr Paul Berend, highlighted the benefits of the collaboration with Vale in advancing the project: “It is encouraging to see the Project developing at a rapid pace with key de-risking milestones being achieved. He added, “We are confident that the Iron Bear Project will deliver substantial benefits for all the key stakeholders, including our shareholders and local communities, as we work closely with our partner Vale, to develop a sustainable mining operation powered by cutting edge technologies and renewable energy”. Cyclone has met all key Iron Bear milestones and is now preparing 2025 drilling to expand resources, while advancing dry tailings work to support in-pit rehabilitation and enhance project sustainability (Figure 2). Figure 2: Strategic Development Plan Iron Bear Project (source: CLE) Highlights – Iron Key Bear Project - The Green Iron Ore Story. 1.0 Power Supply Study: Green and Economically Robust Hatch Ltd completed a conceptual power study to AACE Class 5 standards, outlining staged renewable energy solutions for the Iron Bear mine and concentrator complex. Three-phase power supply scenarios (10 Mtpa to 50 Mtpa) were modelled using blended hydro (Menihek, Churchill Falls) and wind energy. Phase 1 power unit cost estimated at just CAD 0.023/kWh, confirming cost-effective energy underpinned by green infrastructure (Figure 3). Total power CAPEX estimates range from CAD 1.6B (Phase 1) to CAD 4.4B (Phase 3). Figure 3: Iron Bear could operate with 100% renewable power (source: CLE) 2.0 Phase 4 Metallurgical Test Work Completed 17.7 tonnes of core sediment processed at the Quebec-based pilot plant (Figure 4). Outputs included: 2.3t DR concentrate @ 71% Fe, 1.2% SiO₂ 3.5t BF concentrate @ 69.1% Fe, 3.5% SiO₂ 260kg DR pellets @ 68.4% Fe with excellent metallisation and physical attributes. Recovery improvement: flotation yields lifted to 87–89%, well above the prior 80%. Figure 4: Selected drillhole collars for sampling campaign. (source: CLE) 3.0 Rail and Slurry Pipeline Studies Advance Simulation modeling completed to identify potential bottlenecks on existing rail infrastructure. Preliminary design and hydraulic modeling completed for the slurry and return water pipelines. Both rail and slurry studies feed into a broader internal trade-off study ahead of the PFS. 4.0 PFS Contracts and Additional Engineering Work Tenders issued and near award for: Main PFS Pelletising Study Marketing Study (Phases 1 & 2) Dewatering, drying, and dry tailings stacking testwork underway. Conceptual mine planning initiated using latest resource model. 5.0 Environment & Community Engagement Environmental and social work packages awarded to Sikumiut Environmental Management Ltd. (physical environment & permitting) and Transfert Environnement et Société (social integration). In-field surveys completed in June 2025: Focused on species at risk and biodiversity Surface water quality and flow regime monitoring installed, with two more survey visits planned in Q3–Q4 2025. 6.0 Financial Overview Cyclone had $1.3M in cash at 30 June 2025. Reimbursement of $1.2M from Vale for Q1 operational costs. Iron Block 103 Corporation (CLE’s Canadian subsidiary) held $5.2M in cash, with an additional US$5M received 3 July 2025 from Vale per the development agreement. CLE also holds ASX-listed equity investments totalling ~$6.7M. 7.0 Update on Other Assets Before Cyclone took on Iron Bear, the company portfolio had a mix of Australian and projects in New Zealand projects. The projects are primarily exploration in nature, and in light of the value of Iron Bear, these projects have taken a back seat to exploration activities. 7.1 New Zealand – Grand Port Projects (Figure 5) Sampling completed at Drybread (797 samples) and Waikerikeri (662 samples). Passive seismic (Tromino) geophysical surveys completed to support structural interpretations. Progress continues at Muirs and Mareburn tenements; geological modelling commenced at Muirs. Figure 5: Location of Grand Port Projects, situated in premier gold production districts. (source: CLE) 7.2 Australia – Wee Macgregor and Lady Ethleen (QLD), Nickol River (WA) Cyclone retains 20% interest in Wee Macgregor (Cohiba earning 80%). The Lady Ethleen tenement continues to be evaluated following prior GlyLeach™ trials. CLE continues to assess options for Nickol River, including JV or divestment strategies (Figure 6). Figure 6: Nickol River Project tenements, located 10km east of Karratha in the West Pilbara of Western Australia (source: CLE) 8.0 Corporate Updates Shareholder Meeting held 5 June 2025: all resolutions passed. Multiple share and performance rights transactions completed, including: Issuance of ~14.1M shares and 2M performance rights (converted to shares). Options (CLEO) began trading on ASX in May 2025. Quarterly spend: $198K exploration (mainly NZ) $390K admin and corporate cost $1.2M reimbursed by Vale Samso Concluding Comments Cyclone Metals is quietly shaping the Iron Bear Project into a credible green-aligned iron ore story on the ASX. Cyclone is showing the market that it is ticking the boxes that the company said it would do, in the process giving the market confidence that this is more than just talk. As an early shareholder, whenever I explained this story, I was consistently being rebuffed on its significance and ability to have market acceptance. Figure 7: Cyclone Metals Limited share price chart as at 28th July 2025. (source: commsec) The cost metrics revealed in the power study are compelling. A CAD 0.023/kWh energy input for Phase 1 puts Iron Bear firmly into the lower quartile for energy costs, critical for high-margin DR pellet production. From a metallurgical standpoint, the test results validate Iron Bear’s feed quality and processing potential and further support its low-carbon credentials. In addition, the standout power study is not just the numbers, although sub-CAD 0.025/kWh is impressive—it’s the execution. Partnering with Hatch, designing around Menihek and Churchill Falls, and mapping out three scalable phases signals a strategic, long-game mindset. It’s clear Cyclone is building a project that aligns with where the global steel industry is heading. For investors, this report reinforces CLE’s transition into a technically and financially supported iron ore development company. The next major catalysts will be the release of the Scoping Study, finalisation of the rail and slurry studies, and the kickoff of the Pre-Feasibility Study. This level of momentum, especially when paired with ESG-aligned infrastructure and community engagement, is not common for a junior iron ore developer. Vale’s presence in the background should not be overlooked or forgotten. Their funding and technical support de-risk the path to production considerably. This level of validation, along with the progressive test work and near-term Scoping Study, means the pieces are coming together with a high degree of intentionality. For investors, this is a time to consider how early de-risking—in metallurgy, infrastructure, and ESG—can be a value unlocker in this cycle. Iron Bear may not be front-page news just yet, but if the current momentum holds, that won’t be the case for long. For me, the Cyclone story has always been about execution, and at this stage, Cyclone appears to be aligning the right pieces on that front. Cover photo: Magnetite - Magnetite, Darla Sondrol. CC0, via Wikimedia Commons (https://commons.wikimedia.org/wiki/File:Magnetite_(GeoDIL_number_-_1390).jpg) The Samso Way – Seek the Research At Samso, we believe this is the phase where real value begins to crystallise. The iron ore market is changing, and companies that position themselves early in the low-carbon supply chain, supported by strong partnerships and rigorous planning, could be tomorrow’s strategic winners. Keep your eye on the detail—and always seek the research. 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. 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. 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.