A gold-copper explorer betting on the Paterson Province pedigree — and the team that helped find Hemi 01 / The 60-Second Pitch Aventine Resources Ltd (proposed ASX: ARE) is a Western Australian gold-copper explorer coming to the ASX with a $15m (minimum) to $20m (maximum) raise at $0.20 per share. The company is asking the market to back four projects totalling roughly 1,780 km² in the Paterson Province and the East Pilbara — two of the more credentialed exploration addresses in the country. The pitch is, first and foremost, about location. Aventine’s flagship Paterson Project sits north-northwest of Greatland Resources’ Havieron gold-copper deposit (4.1Moz Au) and northeast of the Telfer mine (3.2Moz Au) (Figure 1). The broader district hosts Rio Tinto’s Winu copper-gold discovery, the Nifty copper mine, Antipa’s Minyari Dome, and — over in the Pilbara — De Grey’s 11Moz Hemi gold system. This is not frontier dirt nobody has heard of. It is ground that the majors have circled for forty years. Figure 1: Map of Aventine Resources project tenements across the Paterson Province and East Pilbara, Western Australia, near the Telfer and Havieron gold-copper deposits (Source: IPO Prospectus) The notable name on the register is Greatland Resources (AIM; ASX: GGP). Greatland is vending much of Aventine’s tenure into the float, and hence they will be the company’s largest shareholder at around 11% on listing, and is appointing a nominee director (Rowan Krasnoff) after admission. Greatland owns and operates the two anchor assets of the modern Paterson — Telfer and Havieron — so its decision to seed Aventine and stay on the register is the closest thing this deal has to a stamp of approval. The second pillar is people. Technical Director Allan Kneeshaw is a 30-year exploration geologist who, most recently at De Grey Mining, played a key role in the discovery of the 11Moz Hemi gold deposit. Exploration Manager Rod King also comes out of the De Grey / Northern Star camp via a decade at Teck. Managing Director Benjamin Dunn brings the capital-markets side — two decades across Citigroup, JP Morgan and CLSA. On paper, this is a team that has actually found something before. What you are not buying is a resource. There is no JORC Mineral Resource, no Ore Reserve and no Exploration Target anywhere in the portfolio. There are encouraging historical drill intercepts — and that is exactly the point. Aventine is a drilling story, and the budget is built to drill. 02 / Aventine Resources IPO Snapshot Everything you need to know about the Aventine Resources IPO in one table: Table 1 — IPO Snapshot Item Detail Company Aventine Resources Ltd (ACN 686 650 297) Proposed ASX Code ARE Offer Price $0.20 per share Raise (min / max) $15.0m / $20.0m (75m / 100m shares) Indicative Market Cap (min / max) ~$27.95m / ~$33.51m (undiluted, at offer price) Existing Shares on Issue 31,652,222 Shares on Issue at Admission 139,767,376 (min) – 167,545,154 (max) Free Float ~62% (not less than 40%) Lead Manager Bell Potter Securities Limited Cornerstone / Strategic Greatland Resources (AIM; ASX: GGP) – ~11.1–11.4%; nominee director post-listing Lead Manager Options 3,000,000 unquoted @ $0.30, 3-yr expiry Board Options 7,000,000 unquoted @ $0.25 and $0.35, 3-yr expiry Performance Rights 8,884,168 (plus a separate Mt Cecelia milestone right) Lodgement / Open / Close / Quotation 22 May / 1 June / 22 June / 7 July 2026 (indicative) Min Application 10,000 shares ($2,000), then 2,500-share ($500) increments Underwritten? No Eligible Jurisdictions Australia (with limited offers to certain investors in permitted jurisdictions) 03 / Capital Structure & Dilution This is the number to sit with before anything else: existing shareholders go from owning 100% of the company to approximately 19% on Maximum Subscription (around 23% on Minimum). The number of shares on issue increases from 31.65 million to 167.5 million on maximum subscription — a ~429% increase. On a fully diluted basis (all options and performance rights in, plus the Mt Cecelia milestone shares), there will be roughly 191 million securities in issue at maximum. That is heavy, and heavier than you see on many small-cap floats. It is the direct consequence of a thin pre-IPO share count (a young company) raising a relatively large $15–20m and issuing a big slug of consideration shares to the vendors. New money and vendors together own roughly 75–80% of the company on day one. Existing holders are very much along for the ride. Table 2 — Capital Structure & Dilution Security class Min sub. (shares) % Max sub. (shares) % Existing shares 31,652,222 22.6% 31,652,222 18.9% IPO Offer shares 75,000,000 53.7% 100,000,000 59.7% Vendor shares 33,115,154 23.7% 35,892,932 21.4% Total shares at Admission 139,767,376 100.0% 167,545,154 100.0% Options on issue 10,000,000 — 10,000,000 — Performance Rights 8,884,168 — 8,884,168 — Fully diluted total 158,651,544 — 186,429,322 — Fully diluted total excludes the Mt Cecelia milestone right (up to a further 5,000,000 shares). The options and rights stack There are 10,000,000 options on issue at admission: — 3,000,000 Lead Manager Options @ $0.30, expiring 3 years from issue — 7,000,000 Board Options @ $0.25 and $0.35, expiring 3 years from issue Plus 8,884,168 Board Performance Rights issued to directors and management, with vesting terms set out in the prospectus. Separately, the Mt Cecelia acquisition carries a milestone right that converts to up to 5,000,000 shares if a JORC resource of at least 500,000 ounces of gold is defined at that project within five years. Two things to like here. First, the board options strike at and above the IPO price ($0.25 and $0.35), so management only makes money on them if the stock works for everyone. Second, the milestone right is genuinely performance-linked — it only triggers on a half-million-ounce discovery, which is the kind of outcome every shareholder would happily be diluted for. Escrow Roughly 52.7 million shares will be classified as restricted by the ASX — about 23.8m shares (plus most options and rights) under 24-month escrow, and about 28.9m shares under 12-month escrow. None of the IPO shares are escrowed. The free float is expected to be approximately 62%. That is a healthy free float, but the escrow means a meaningful chunk of the register is locked up for the first year or two — worth keeping in mind for liquidity. 04 / Use of Funds Including the $2.11m of cash already on the balance sheet, Aventine will have roughly $17.1m (min) to $22.1m (max) to deploy. Here is where it goes over the two years following admission: Table 3 — Use of Funds (2 years) Use of funds Min sub. ($) % Max sub. ($) % Exploration expenditure 11,981,274 70.0% 16,692,169 75.5% Feasibility expenditure 400,000 2.3% 400,000 1.8% Directors’ & management fees 1,991,360 11.6% 1,991,360 9.0% Costs of the Offer 1,382,511 8.1% 1,689,820 7.6% Working capital 1,353,996 7.9% 1,335,792 6.0% Total 17,109,141 100.0% 22,109,141 100.0% This is a lean, exploration-weighted budget, and that is a genuine positive. Putting 70–75% of available funds straight into the ground is at the upper end of what you see on a float of this size — a lot of explorers come to market spending a third of the raise on overheads and the offer. Aventine isn’t. The one line that may appear to be of note is costs of the offer, which work out to roughly 8–9% of the gross amount raised (higher at the minimum end). That is not outrageous for a non-underwritten small-cap IPO, but it sits at the firmer end of the range, and the Lead Manager also collects 3 million options on top of the cash fee. Directors’ and management fees of ~$2.0m over two years are reasonable for a five-person board plus management, and the percentage falls as the raise grows. 05 / The Project Portfolio Aventine comes to market with four projects across the Paterson Orogen and the East Pilbara. The headline acreage is real, but read the granted-versus-application column carefully — a chunk of the Paterson South ground is still in application. Table 4 — Project Portfolio Project Area (km²) Tenements Targets Lever / Analogue Paterson 676 5 granted Au, Cu NNW of Havieron, NE of Telfer; Black Hills Dome ≈ Telfer setting Paterson South 864 2 gr / 7 apps Au, Cu ~45km SW of Paterson; on trend to Nifty & Maroochydore Cu Mt Cecelia ~135 1 granted Au ~130km NW of Paterson; ~70km W of Rio’s Winu Panorama ~105 3 granted Au, Ni East Pilbara greenstone; orogenic Au + Ni sulphide TOTAL ~1,780 11 gr / 7 apps Multi Cornerstone: Greatland (~11%) 5.1 Paterson — The Flagship If you are buying ARE, Paterson is the centre of gravity. Five granted licences covering 676 km² — Black Hills, Black Hills North, Paterson Range East, Budjidowns and Basel — sitting directly on trend with Greatland’s Havieron and Telfer assets (Figure 2). The ground is being acquired from Greatland and from a Greatland–Rio Tinto joint venture. Figure 2: The flagship Paterson Project combines favourable geology, walk-up drill targets, Telfer and Havieron analogues and untested structural positions (Source: The company Website) The most important point is that there are already gold hits on this ground, not just next to it. Historical drilling at Black Hills returned intercepts including 13m @ 2.01 g/t Au from 67m and 12m @ 1.38 g/t Au from 32m, plus deeper gold-copper anomalism (3.5m @ 1.88 g/t Au from 226.5m; 23m @ 706 ppm Cu). The Black Hills Dome has a geological setting compared to Telfer itself, and sits on the same regional structure as Antipa’s Minyari Dome. Budjidowns has thrown up scattered deeper hits (3m @ 0.52 g/t Au from 502m at Atlantis), and Paterson Range East and Basel both carry untested or partially tested targets under cover. The work plan is what you want to see: consolidate the large historical datasets, build 3D structural models, define drill-ready targets, run heritage surveys, then drill — RC and diamond across Black Hills, Paterson Range East, Basel and Budjidowns. Two of the tenements (Basel and Budjidowns) carry a 1.5% NSR royalty back to the Rio vendor. 5.2 Paterson South — Big, But Mostly Applications Paterson South is the largest project by area (864 km²) and the one to read most carefully. Only two of the nine tenements are granted — the rest are exploration licence applications, and Aventine has explicitly confirmed that no IPO proceeds will be spent on the applications. One application (ELA45/7247) overlaps a prior third-party application and, on grant, may be cut down to a much smaller area — possibly nothing at all. What’s there geologically is interesting: Throssell Range Group sediments including the Broadhurst Formation, which hosts the Nifty and Maroochydore sediment-hosted copper deposits. The granted ground (the Lamil JV tenement acquired from Rumble Resources and AIC Mines, plus an FMG–Carawine tenement) has had historical drilling that mostly failed to penetrate cover or test the targets Aventine is interested in. So the thesis is “under-tested, on a good address” — but the project is more option than near-term driver, and the application overhang is a real caveat. The Lamil tenement carries a 1% NSR to its vendors. 5.3 Mt Cecelia — The Best Single Intercept Mt Cecelia is a single granted licence (~135 km²) on the East Pilbara–Paterson boundary, acquired from West Wits Mining (ASX: WWI). It punches above its size because it has, arguably, the best historical gold result in the whole portfolio. After geophysics defined bedrock conductors, Rio Tinto Exploration drilled the project under a farm-in and hit: — WEWI0004: 24m @ 0.95 g/t Au within 82m @ 0.51 g/t Au from 128m — WEWI0001: 20m @ 0.93 g/t Au within 56m @ 0.55 g/t Au from 194m Those are wide, near-surface gold intercepts from a first-pass program — exactly the kind of result that justifies a follow-up drill campaign. The catch is the royalty and consideration load: Mt Cecelia carries two separate 1% NSR royalties (a combined 2%), plus the deferred milestone payment to West Wits — $1.0m in cash or 5m shares — that triggers on a 500,000-ounce JORC resource. That’s a lot of leakage stacked on one tenement, but it only bites if the project actually delivers. 5.4 Panorama — The Pilbara Optionality Panorama is three granted licences (~105 km²) of Archaean greenstone in the East Pilbara, prospective for orogenic (lode) gold and nickel sulphides (Figure 3). Soil and rock-chip sampling has flagged a 1.4km nickel anomaly (peak 0.3% Ni rock chip) and weak gold. No specific budget has been allocated to Panorama in the first two years — it’s held for early-stage reconnaissance and regional sampling. Treat it as free optionality, not a reason to subscribe. Figure 3: The Panorama Project is located west of Nullagine and south of Marble Bar, only 50km from Nullagine Gold Project. (Source: The company website) 06 / The Exploration Budget Here is the detail behind the ~$12m–$16.7m exploration line — and the single most encouraging feature is how much of it is drilling. Table 5 — Exploration Budget Category Yr 1 Min ($) Yr 2 Min ($) 2-Yr Min 2-Yr Max Access, heritage, tenure & licence 1,343,375 1,008,013 2,351,388 2,437,220 Soil sampling 84,425 — 84,425 82,500 Geophysics & consulting 432,000 120,000 552,000 669,500 Drilling & assays 2,093,026 3,083,318 5,176,344 8,496,492 Field operating costs 1,861,728 1,955,389 3,817,117 5,006,457 Grand total 5,814,554 6,166,720 11,981,274 16,692,169 Drilling and assays alone account for over half of the exploration spend — roughly $5.2m at minimum, scaling to ~$8.5m at maximum. That is the right shape for an exploration story whose entire thesis is “drill the targets the majors left behind.” Year 2 is materially more drilling-heavy than Year 1, which makes sense: Year 1 is about data consolidation, modelling, heritage clearances and first-pass drilling; Year 2 is where the follow-up campaigns land. One transparency note: the budget is presented by activity, not by project. Unlike some floats that tell you exactly how many dollars each asset gets, Aventine hasn’t published a per-project split. Management’s described priority work — drill-ready targets at Black Hills and the Mt Cecelia follow-up — tells you where the early focus sits, but the precise allocation is at the board’s discretion. 07 / The Board, the Management, the Story Behind Them A small-cap exploration IPO is a bet on people, and this is where Aventine is strongest. The standout thread is De Grey Mining and the Hemi discovery — both the Technical Director and the Exploration Manager come out of that camp, which is about as good a recent gold-discovery pedigree as exists in Western Australia. Table 6 — Board and Management Name Role Track record / signal Benjamin Dunn Managing Director 20+ yrs legal, equity & capital markets in resources. Senior roles at Citigroup, JP Morgan, CLSA. The capital-markets engine. Simon Andrew Non-Exec Chairman 20+ yrs financial markets across Australia & Asia. Exec Director of Mamba Exploration (ASX: M24), NED of Riversgold (ASX: RGL). Allan Kneeshaw Technical / Executive Director (Exploration) 30+ yrs geologist. Key role in De Grey’s 11Moz Hemi discovery. Prior: Anglo American, AngloGold Ashanti, Acacia, MIM. Competent Person. John Barbante Non-Exec Director 30+ yrs mining & business. Ex-CEO of White Tiger Resources, secured two major-company farm-ins. Government & industry network. Rowan Krasnoff Proposed Non-Exec Director The Greatland nominee, to be appointed after Admission. Rodney King Exploration Manager Ex-Principal Geologist at Northern Star (post De Grey acquisition), former De Grey Exploration Manager; a decade at Teck. Clarissa Chua Company Secretary Chartered Accountant; Co Sec for several ASX-listed resources companies (via Mining Corporate). At the prospectus date, the founding directors each held around 5% of a tiny share count; post-raise they sit near 1% each on shares, with the upside loaded into options (struck at or above the IPO price) and performance rights. That is a reasonable alignment structure — the team makes real money only if the stock re-rates well beyond $0.20. Table 7 — Director Interests on Admission (Maximum Subscription) Director Shares % (max) Options Perf. Rights Benjamin Dunn 1,625,001 1.0% 1,750,000 2,555,000 Simon Andrew 1,625,001 1.0% 1,600,000 1,462,500 Allan Kneeshaw 1,725,000 1.0% 1,750,000 2,555,000 John Barbante 1,625,000 1.0% 1,400,000 851,668 Rowan Krasnoff 250,000 0.1% — — Board total 6,850,002 ~4.1% 6,500,000 7,424,168 08 / The Greatland Factor The Greatland relationship is the most distinctive feature of this float, and like any cornerstone arrangement it is part validation, part transaction, part overhang. Table 8 — Substantial Holders on Admission Holder Shares (min / max) % (min / max) Greatland Resources (AIM; ASX: GGP) 15,865,154 / 18,642,932 11.4% / 11.1% West Wits Mining (ASX: WWI) 10,000,000 / 10,000,000 7.2% / 6.0% The Read Greatland Resources is not a passive name on the register. It owns and operates Telfer (3.2Moz Au) and Havieron (4.1Moz Au) — the two assets that define the modern Paterson Province. It is vending a large slice of Aventine’s tenure (the Paterson and Panorama ground, alongside a Rio Tinto JV interest), taking equity as part-consideration, becoming the company’s largest single shareholder at ~11%, and appointing a nominee director after listing. The bull reading is straightforward: the dominant operator in the district has looked at this ground, decided it is worth exploring but not worth holding inside its own portfolio, and chosen to back a focused vehicle to do the work — while keeping a seat at the table and equity upside. A Paterson Province specialist seeding a Paterson Province explorer is a meaningful signal. The bear reading is the mirror image, and it’s the same pattern you see whenever a major divests ground to an explorer: Greatland is offloading non-core, pre-resource tenure it chose to deprioritise behind Telfer and Havieron. The ground is early-stage, and Greatland’s continued involvement does not guarantee a discovery — it guarantees a knowledgeable, aligned shareholder. West Wits Mining, the Mt Cecelia vendor, sits alongside Greatland with ~6–7% and a deferred interest tied to a future resource. Both holdings are validation and, in time, potential supply. 09 / The Financials Aventine’s financials are exactly what you’d expect from a company incorporated in April 2025 and converted to a public company in April 2026. Table 9 — Financial Position Item Detail Incorporated 29 April 2025 (public company 3 April 2026) Operating revenue Nil (pre-revenue explorer) Existing cash (at Prospectus Date) $2,109,141 Total funds available post-raise (min / max) ~$17.1m / ~$22.1m Implied enterprise value at listing (approx.) ~$11m (market cap less available cash) Dividend policy None expected near term Two things to note. First, unlike many pre-IPO explorers that arrive on the eve of listing running on fumes, Aventine comes to market with ~$2.1m of cash already in hand — modest, but a more comfortable starting position than the bare-cupboard floats you often see. The prospectus presents the company as adequately funded for roughly two years on the back of the raise. Second, the implied enterprise value is the number that matters. Strip the IPO cash out of the ~$28–33.5m market cap and the market is effectively valuing the ground itself at around $11m. Most of the headline market cap, in other words, is the cash you’re putting in. That is normal for an exploration float, but it frames expectations correctly: you are paying ~$11m for a package of drill targets on a great address, not for a defined resource. 10 / The Market Context — A Great Address at a Great Time for Gold Most of the value case here is leverage to two things: the quality of the Paterson Province as a gold-copper address, and the gold price that funds the drilling. The Address The Paterson Orogen is one of the few Australian districts that has produced genuine tier-one discoveries in the modern era. Telfer has been a multi-decade gold producer; Havieron is one of the most significant gold-copper finds of the last decade; Rio Tinto’s Winu sits to the east; the Nifty copper mine and Antipa’s Minyari Dome round out the neighbourhood. Over in the East Pilbara, De Grey’s Hemi system — the discovery that several of Aventine’s team worked on — redefined what greenstone gold exploration could deliver and ended in a Northern Star takeover. The point is not that proximity equals a discovery (it never does), but that the ingredients, the structures and the host rocks that produced those deposits run through Aventine’s tenure. The gold backdrop The timing is, frankly, the easy part of the story. Gold has been trading around US$4,500 an ounce in mid-2026 — extraordinary levels by any historical measure, and a world away from the sub-US$2,000 environment of a few years ago. For a pre-revenue explorer, a strong gold price does two things: it makes capital easier to raise, and it makes even modest-grade intercepts look economically interesting. A 24-metre hit at ~1 g/t gold reads very differently at US$4,500/oz than it did at US$1,500/oz. That tailwind won’t last forever, and exploration risk is exploration risk regardless of the metal price — but it is hard to imagine a better moment to be funding a Paterson gold drill program. The copper angle (Paterson South’s Nifty-style targets, the copper anomalism at Black Hills) adds a second commodity string, into a market where copper’s structural supply story remains one of the most durable in resources. Samso Concluding Comments Aventine is a clean, well-constructed exploration float. There is no resource, no reserve, not even an exploration target — and the prospectus says so plainly. What you are backing is a drilling story on a genuinely good address, run by a team that has found gold before, and seeded by the district’s dominant operator. Most importantly, it is access to exploration tenure that has come from Greatland Gold - access that would not have happened without their participation. The things to like are real. The address is Tier-1. There are already gold hits on the ground — Black Hills and Mt Cecelia in particular give the team something concrete to chase rather than blue-sky nearology. The budget is lean and drilling-heavy, with over half of exploration dollars going into the drill bit. The Greatland cornerstone and board seat is the kind of validation money can’t manufacture. And gold near US$4,500/oz is the most supportive funding backdrop a gold explorer could ask for. The frictions are equally real, and they cluster around dilution and stage. Existing holders are diluted to ~19% on max — this is, in effect, a new company. Listing is conditional on completing five separate acquisition agreements, any of which could slip. A large slab of the Paterson South ground is still in application, with one tenement at risk of being granted over almost nothing. The royalty load across the portfolio is heavy — multiple 1% and 1.5% NSRs, plus the Mt Cecelia deferred consideration — which will matter if any project ever reaches production. And until the drill rig turns, every target in the portfolio is a hypothesis. The natural next conversation, exactly as with any quality explorer, is the first post-listing drill program — where it lands, what targets it tests, and whether Black Hills and Mt Cecelia convert historical hits into something that can grow toward a maiden resource. If they do, the re-rate path against a US$4,500 gold backdrop is obvious. If they don’t, this is a long, capital-hungry road like every other exploration story. The address is excellent and the team is credible; the deal is priced for exploration, and the drill bit will write the rest. 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High-grade, near-surface hits up to 46.2 g/t Au from the company's first program — and a textbook Bendigo-Ballarat structural setting beneath a former open-cut. The electro-hydraulic diamond rig set up at Mt Egerton with NQ drill string in foreground — work started on day one of BHL's ASX listing in December 2025. Samso Insights ASX: BHL Gold Mt Egerton Black Horse Mining Ltd (ASX: BHL) is the latest small-cap to put a drill rig on a piece of Victorian gold history. The Company listed on the ASX on 2 December 2025 and, unusually for a freshly-listed explorer, had both ground geophysics and diamond drilling underway on day one at its flagship Mt Egerton Gold Project, located within and around the township of Mt Egerton between Ballarat and Melbourne. Mt Egerton itself has serious pedigree: it is one of only eight gold mines in Victoria to produce over 1 million ounces from primary (hard-rock) sources, with recorded production up to 1903 of approximately 1.29 million ounces at grades of between 5.5 and 19.3 grams per tonne, and operations ceased in 1906 due to water ingress and failure of pumping equipment rather than resource depletion. Critically for the modern exploration thesis, less than 10% of historical drilling has gone deeper than 150 metres, leaving the down-plunge extensions of the historic high-grade lodes effectively untested — a setup that invites comparison with Fosterville, where the transformative ultra-high-grade Swan zone was only discovered well below 800 m depth. Over five short months between December 2025 and April 2026, BHL has moved from "company listing" to "high-grade gold confirmed" — and the underlying announcements deserve a careful read because the numbers are real, the geological story is coherent, and the conservatism around lost core is notable. Why Mt Egerton matters — at a glance Maiden drill hit — hole 26MEDD005 returned 0.75 m @ 17.4 g/t Au from 55.8 m and 0.7 m @ 14.6 g/t Au within a 5.2 m mineralised zone. Follow-up bonanza grade — hole 26MEDD004 returned 0.25 m @ 46.2 g/t Au and 0.5 m @ 20.5 g/t Au from a 4.4 m zone starting at 49.65 m — extending the high-grade zone vertically by ~10 m. Historic workings confirmed — a 4.85 m void in 26MEDD001 and a 1.75 m void in 26MEDD004 (filmed with a downhole camera) validate the location of the historic Quarry Lode workings. Phase 2 ready — a larger-diameter (HQ) rig capable of drilling up to 1,000 m holes is being prepared to test deeper targets E, F, and parallel reef systems. Cash position — A$5.54 million at 31 March 2026; 8+ quarters of funding at current burn. Setting the scene — what BHL acquired and why it matters Mt Egerton is not a "greenfield" story. The field has an extensive mining history, and the bedrock geology — folded Ordovician turbidites cut by north-south quartz reefs and a series of late-stage faults — is the textbook recipe that produced Fosterville and Bendigo. The accompanying long-section, reproduced from BHL's prospectus, shows the field's known reef-and-stope footprint and the seven priority drill target areas the Company has nominated for systematic testing. Figure 1 — Mt Egerton mining complex long-section showing historic stoped regions (dark grey), plunge-from-workings (light blue) and the priority drill target areas A through G. The Company's maiden program tested Target Area B; deeper targets E, F and G are still untested. (Source: ASX Announcement) The "Stoped Region" shading on the section tells a useful story: previous miners stripped out continuous lodes down to roughly 200–400 m below surface, but the projection of those plunges keeps going — into ground that has never had a modern drill hole through it. That is the strategic prize. Day one: magnetotellurics before the drill rig moves Before any holes were collared, BHL ran a ground magnetotelluric (MT) survey. The purpose was deliberately narrow: to locate the historic underground workings, which previous mapping had placed inaccurately. The Company found that interpreted historical shaft locations were 30–40 m off their noted positions — a meaningful error when planning a 100 m diamond hole. Figure 2 — Real-time MT data showing zones of high (red) and low (blue) resistivity directly beneath the survey line, used on-site to refine drill hole geometry. (Source: ASX Announcement) The MT method has a useful operational feature: the raw field data can be read in real time and used to nudge proposed drill collar locations, dips and azimuths to avoid intersecting voids. Figure 3 — MT field survey line at Mt Egerton showing the electrodes and charging/recording wire pegged out across the survey corridor. (Source: ASX Announcement) In the March 2026 quarterly report, BHL confirmed that the MT results, together with reprocessed historical ground penetrating radar (GPR), have been integrated into a 3D geological model of the project — a quiet but important step for resource-style targeting. The maiden drill program — seven holes, 618 m of core, Target Area B BHL drilled a total of 618 m of NQ diamond core across seven holes between December 2025 and February 2026, all within Target Area B beneath the hill behind the Waste Transfer Facility (formerly the historic Quarry Lode open cut). The drillhole layout is shown below. Figure 4 — Drillhole location plan over Target Area B. Red traces are 2026 holes (26MEDDxxx); yellow traces are 2025 holes (25MEDDxxx). The green polygon marks the position of historic underground voids intersected and videoed by the program. Drillhole collar summary Table 1: Maiden drilling program collar table. * Holes 25MEDD002 and 25MEDD002A were abandoned before reaching target depth. Highlighted rows show holes with assays already received. Hole ID Type MGA East MGA North RL (m) Azimuth Dip Status 25MEDD001 DD 244,617 5,831,018 600.7 310.79 -52.0 Received 25MEDD002* DD 244,614 5,831,055 604.2 281.59 -60.5 Pending 25MEDD002A* DD 244,612 5,831,056 604.2 281.59 -61.5 Pending 25MEDD003 DD 244,617 5,831,016 600.8 310.69 -40.0 Pending 26MEDD004 DD 244,587 5,831,065 603.8 268.69 -71.5 Received 26MEDD005 DD 244,587 5,831,065 603.8 268.69 -76.0 Received 26MEDS001 DD 244,587 5,831,065 603.8 152.00 -65.0 Pending Figure 5 — The maiden drill rig set up on the hill behind the Mt Egerton Waste Transfer Facility — which itself sits in the filled-in historic Quarry Lode open cut. Hole 26MEDD005 — the first signal that the historic miners left something behind "We are very encouraged by these first drilling results from Mt Egerton, which have confirmed high-grade, near-surface gold mineralisation in hole 26MEDD005…" — David Frances, Managing Director, 11 March 2026. Reported on 11 March 2026, hole 26MEDD005 intersected a 5.2 m zone of mineralisation from 55.8 m to 61 m downhole. Core recoveries through the altered, mineralised section were intermittently poor, but the assayed portions of the zone returned highly encouraging numbers — and importantly, BHL elected NOT to interpolate any grade across the lost intervals, which means the headline grades read low rather than high. Table 2: Significant gold assays from hole 26MEDD005. Highlighted rows show the headline high-grade intercepts of 0.75 m @ 17.4 g/t Au and 0.7 m @ 14.6 g/t Au within the 55.8–61.0 m zone. Reporting cut-off 0.75 g/t Au; maximum 3 m internal sub-grade for significant intercepts. From (m) To (m) Interval (m) Au (g/t) Comment 18.95 19.50 0.55 1.09 20.00 20.50 0.50 1.35 21.60 21.75 0.15 2.03 22.75 23.35 0.60 0.76 55.80 56.55 0.75 17.40 High-grade 57.65 58.35 0.70 14.60 High-grade 58.90 59.25 0.35 4.51 59.40 60.35 0.95 3.02 60.45 61.00 0.55 1.79 84.70 86.15 1.45 1.45 91.70 91.80 0.10 2.25 92.00 92.50 0.50 0.74 92.60 93.20 0.60 0.81 Figure 6 — Section 5831065N looking north, showing the 26MEDD005 intersection in red and the relationship with historic intersections MTEC075 (2 m @ 35.9 g/t Au) and MTEC038 (7 m @ 18.03 g/t Au). Two further details about 26MEDD005 deserve attention. First, hole 26MEDD001 — drilled on the same target as historic hole MTEC038 (7 m @ 18.03 g/t Au) — encountered a 4.85 m void exactly where the historic data said a stope should be. The cross-check is significant: it tells BHL that the historic positional data, while not perfect, is reliable enough to plan modern drilling against. Second, BHL's competent person notes that recoveries in the surrounding country rock below the weathering horizon (roughly 80–120 m depth) are good — the recovery problem is specifically tied to the altered, mineralised zones and the historic workings themselves. That is a solvable problem with larger-diameter core. Figure 7 — Orthogonal section showing the spatial relationship between historic hole MTEC038 (7 m @ 18.03 g/t Au) and the void encountered in 26MEDD005 directly beneath it. The small offset gives strong confidence in the historic positional data. Hole 26MEDD004 — and then it got better Two weeks later, on 24 March 2026, BHL released the assays for 26MEDD004 — drilled essentially from the same collar as 26MEDD005 but at a shallower dip — and the numbers stepped up materially. Table 3 — Significant gold assays from hole 26MEDD004. The 4.4 m zone from 49.65 m to 54.05 m culminates in 0.5 m @ 20.5 g/t Au and 0.25 m @ 46.2 g/t Au — a bonanza-grade tail intercept that extends the high-grade zone ~10 m vertically above 26MEDD005. From (m) To (m) Interval (m) Au (g/t) Comment 3.00 3.10 0.10 5.01 4.10 4.25 0.15 1.18 24.10 25.10 1.00 2.53 49.65 50.45 0.80 1.03 51.15 51.75 0.60 3.77 51.85 52.20 0.35 2.48 52.30 53.00 0.70 5.75 53.00 53.50 0.50 20.50 High-grade 53.80 54.05 0.25 46.20 Bonanza Two intervals from this hole — 0.5 m @ 20.5 g/t Au and 0.25 m @ 46.2 g/t Au — are the kind of grades that justify the term "bonanza" in Victorian goldfield language. When combined with the 26MEDD005 intercepts directly below, the result is a coherent, vertically-stacked high-grade zone, exactly the geometry that historic Bendigo-Ballarat miners learned to follow downwards. "The conservative approach of assigning zero grade to unrecovered core intervals means the true tenor of the mineralised zones is likely materially higher than reported." — David Frances, Managing Director, 24 March 2026. Figure 8: Combined Section 5831065N showing 26MEDD004 and 26MEDD005 intersections together. The high-grade zone is continuous and extends vertically by ~10 m above the earlier intercept. ERC042 (10 m @ 6.38 g/t Au) sits to the east on a separate sub-parallel structure. A camera in the hole — the void that proved the model Hole 26MEDD004 also intersected a 1.75 m void at 20.25 m downhole. Rather than just log it and move on, BHL lowered a camera down the hole and videoed the working. The footage (available on the Company's YouTube channel) reveals a north-south striking drive of approximately 1 m x 1.8 m and an east-west crosscut roughly 2.4 m x 1.8 m, with a series of south-dipping quartz veins clearly visible in the drive walls and back. Figure 9: Still from the downhole camera survey inside the historic drive intersected by 26MEDD004. Blue lines trace south-dipping quartz "spur veins" visible in the wall and backs — the same vein style logged in core from the surrounding drilling. These spur-vein arrays are the structural fingerprint of the central Victorian goldfields. The classic Willman & Wilkinson (1992) diagram below shows what the historic miners were chasing: extensional vein arrays splaying off a reverse fault and concentrating gold in dilational jogs. Figure 10: Reef and dilational-jog on reverse fault, with extensional spur-vein arrays typical of the Bendigo-Ballarat Goldfields (after Willman & Wilkinson, 1992). The architecture in the 26MEDD004 drive footage matches this model. Spur-vein zones host significant gold in mines across the Bendigo-Ballarat goldfields, and the historic hole ERC042 — sitting immediately east of the void — already confirms that these particular spur veins are themselves mineralised, returning 10 m @ 6.38 g/t Au (including 3 m @ 17.7 g/t Au). Figure 11 — Detailed section showing the void intersected in 26MEDD004 (green) immediately adjacent to historic hole ERC042 (10 m @ 6.38 g/t Au). Numbers down the ERC042 trace are individual sample grades in g/t Au, showing a clear mineralised zone proximal to the workings. What the geology is telling us Pull the threads together and a consistent picture emerges. Mt Egerton is a classic central-Victorian orogenic gold system, with mineralisation concentrated in north-south quartz reefs at fold hinges, along late-stage faults, and at dilational jogs where extensional spur veins splay off the main reef structure. The 19th- and 20th-century miners removed the obvious, near-surface portions of the reefs — but the structural model says high-grade should also exist: • Down-plunge of the historic workings, where the projected plunges (light-blue shading in the long-section) head into ground that has never been drilled. • In vertically-stacked or parallel reef systems adjacent to but offset from the worked lodes. • At structural intersections (fault-on-reef, fold-hinge-on-fault) where the system would naturally concentrate fluid flow. • At depth below the historic stopes, where no historic drill data exists at all. The Fosterville analogy is doing a lot of work in the prospectus and the recent announcements — and while every junior wants to be the next Fosterville, the geological logic is genuinely there: an under-explored Victorian goldfield with confirmed remnant high-grade mineralisation, where modern drilling and 3D modelling can be applied to ground that has never had either. Phase 2 — bigger rig, deeper holes, broader targeting BHL has flagged that the next drilling campaign will use a rig capable of drilling larger-diameter (HQ) core to depths of up to 1,000 m. The shift from NQ to HQ is a direct response to the core recovery problems encountered in the altered and worked zones of the maiden program — bigger core means better recovery, which means the "true grade" of mineralised zones is less likely to be obscured by lost intervals. The Phase 2 program will target: • Accurately located historic Quarry, Egerton, Sister Rose and Rose shaft positions (tightened up via MT and 1930s/1970s aerial photography). • Follow-up of the high-grade 26MEDD004/005 zone to establish strike and dip continuity. • Extensions into other known historic intercept zones along the section. • Deeper holes into Target Areas E and F, which sit beneath the historic stopes. Assays from holes 25MEDD002, 25MEDD002A, 25MEDD003 and 26MEDS001 are still pending and will provide additional structural information about the system before the bigger rig moves on site. The cash, the people, the runway BHL ended the March 2026 quarter with a cash balance of A$5.54 million. Year-to-date exploration spend sits at A$944,000 against a A$4 million 24-month prospectus allocation — meaning the bulk of the exploration budget is still ahead of the Phase 2 program. On the quarter's operating burn, the Company estimates eight quarters of funding available, comfortably clear of the ASX's two-quarter rule. Funds used vs Prospectus forecast Table 4 :Reconciliation of actual expenditure to 31 March 2026 against the Prospectus 24-month forecast (A$'000). Source: BHL March 2026 Quarterly Activities Report. Allocation of Funds Prospectus 24-month forecast (A$000) Actual to 31 Mar 2026 (A$000) Exploration activities 4,000 944 Acquisition Agreement 100 76 Expenses of the Offer 610 824 Corporate, administrative & working capital 3,290 508 Total 8,000 2,352 Two corporate items from the quarter are worth noting. The Company appointed Mr Charles McHugh as Executive Director and Ms Amber Rivamonte as Chief Financial Officer (ASX release, 31 March 2026), rounding out a board that began the year heavily reliant on Managing Director and Competent Person David Frances. For a junior explorer that has just listed and is moving into a more capital-intensive drilling phase, that is a sensible strengthening of the bench. Samso Concluding Comments The Black Horse Mining story is definitely one that I will be following with great interest. David Frances and Charles McHugh were in my batch of aspiring geologists in the University of Western Australia three decades ago, in fact, it is nearly four decades ago. I have a great respect for what they have achieved over the years, and after speaking to Charles recently, the Mt Egerton Gold Project sounds to be more than interesting. The strategy and the history are convincing, and with Charles being a mining engineer with experience in Western Mining Corporation, I am sold that they have someone competent to take that role of "making it happen". The history and the strategy for finding the extension of the lodes seem to be gaining traction with their recent drilling. The fact that there is a potential of early mining, this is going to a bonus for existing shareholders. I encourage readers to look deep into the story and reach out to Dave and Charles to explain the details. I ensure that those who do will come away from that conversation with the same conviction as I did. I am looking forward to having a Coffee with Samso with David and Charles (if possible). Black Horse is definitely on our list of companies to follow. About the Black Horse Mining Ltd Black Horse Mining Ltd (ASX: BHL) is a Victorian-focused gold explorer that debuted on the Australian Securities Exchange on 2 December 2025 following a heavily oversubscribed A$8 million initial public offering. The IPO was cornerstoneed by major shareholder Province Resources Ltd, which subscribed for A$3 million, and shares opened well above the offer price on day one. The Company's flagship asset is the Mt Egerton Gold Project, located within the township of Mt Egerton between Ballarat and Melbourne in the southwestern Bendigo-Ballarat Zone of the Lachlan Fold Belt — one of Australia's most historically productive gold belts, with more than 80Moz produced across the Bendigo–Ballarat zone. The Company is led by Managing Director and CEO David Frances, a Member of the Australian Institute of Geoscientists and the Competent Person on Mt Egerton's exploration results, with the board strengthened during the March 2026 quarter by the appointment of mining veteran Charles McHugh as Executive Director and Amber Rivamonte as Chief Financial Officer. With A$5.54 million in cash at 31 March 2026, a maiden drilling program that has already returned near-surface intercepts up to 46.2 g/t Au, and a Phase 2 program planned with larger-diameter (HQ) core capable of holes up to 1,000 m deep, BHL is positioning Mt Egerton as a modern re-examination of one of Victoria's truly significant but long-overlooked historical gold fields. 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. 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 insigh0ts from top CEOs and thought leaders. 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Re-assay of vacuum drill pulps from 161 historic holes at the Cardea 1 Project has delineated a shallow, laterally extensive gallium system within the Darling Range bauxite province, with intercepts including 4.5m at 105.5 ppm Ga₂O₃ from 1.5m and 2.5m at 134.4 ppm Ga₂O₃ from 2m. Samso News | ASX: WYX | Critical Minerals | Gallium | Cardea 1 Gallium Project | Ida Holmes Junction Project Western Yilgarn NL (ASX: WYX) has released the results of an extensive re-assay program over its 100%-owned Cardea 1 Project, situated along the Darling Range north of Perth in Western Australia. Vacuum drill pulps from 161 historic holes drilled by Bauxite Alumina Joint Venture in the early 2010s have been re-analysed for gallium and a broader trace element suite, with results pointing to a coherent, near-surface gallium system developed within the lateritic bauxite profile (Figure 1). The Cardea 1 re-assay reframes what was historically a bauxite-only story into a dual-commodity proposition, with gallium emerging as a potential by-product across an established alumina province. The result comes at a time when gallium has become a focal point of critical mineral supply chain conversations following export restrictions imposed by major producing nations. Figure 1: Vacuum Drillhole Location Map Highlighting Significant Gallium Oxide (Ga₂O₃) Grades ( Source: WYX ASX Announcement May 25, 2026) Ida Holmes Synergy Importantly, the story sits alongside the maiden gallium-tellurium discovery at Ida Holmes Junction, reported in the March quarter, positioning Western Yilgarn as a multi-asset critical-minerals exploration story across Western Australia. During the quarter, Western Yilgarn has also delivered high-grade cobalt-nickel-copper-lead-scandium results within E36/1028 at Ida Holmes. Table 1: Samso Summary of the Cardea 1 Re-Assay Samso Summary Details Company Western Yilgarn NL ASX Code WYX Primary Asset Profile 244Mt Total JORC (2012) bauxite resources across Julimar West, Cardea 2, Cardea 3 and New Norcia; critical mineral exploration across Ida Holmes Junction (~1,300 km²) and Darling Range bauxite projects Main Story Re-assay of vacuum drill pulps from 161 historic holes at Cardea 1 (E70/6703) confirms shallow, laterally extensive gallium mineralisation from surface to 7m, with multiple intercepts exceeding 100 ppm Ga₂O₃ Standout Cardea 1 Intercept 4.5m at 105.5 ppm Ga₂O₃ from 1.5m in JDV236; 2.5m at 134.4 ppm Ga₂O₃ from 2m in JDV383; 3m at 113.9 ppm Ga₂O₃ from surface in JDV332 Peak Values 106 ppm Ga; 142.5 ppm Ga₂O₃ (JDV312); average grade ~63 ppm Ga across the shallow drilling Update from Ida Holmes Maiden gallium-tellurium discovery at Ida Holmes Junction E36/1046: rock chips to 185.5 ppm Ga, 249.35 ppm Ga₂O₃, 1.29 ppm Te over 1.5km strike Other High-Grades E36/1020 rock chips to 153 ppm Ga, 205.66 ppm Ga₂O₃; E36/1028 to 2.47% Co, 1.07% Ni, 1.30% Pb, 126.25 ppm Sc₂O₃ Operating Platform A$366k cash at 31 March 2026; quarterly exploration spend A$94k; 1.52 quarters of funding per Appendix 5B Item 8.7 Forward Plan Systematic testing of untested western portion of Cardea 1; ongoing exploration across Ida Holmes Junction critical minerals corridor Figure 2: Location Map of E70/6703 Vacuum Drillhole Locations (Source: WYX ASX Announcement May 25,2026) The re-analysis has produced what the company describes as a broad and consistently mineralised near-surface gallium system across the Project area. Gallium grades from the shallow drilling peaked at 106 ppm Ga, with an overall average grade of around 63 ppm Ga. Several standout intersections returned grades above 80 to 100 ppm Ga over thicknesses of two to four metres, demonstrating continuity within the shallow lateritic profile. The geological framework is consistent with the regional setting. Gallium substitutes for aluminium within gibbsite and associated clay minerals during lateritic weathering, and the deeply weathered profiles of the Darling Range, commonly exceeding 20 metres in thickness and containing extensive aluminous duricrust horizons developed over granitic terrains. This process provide the chemistry and the residence time required to concentrate gallium alongside alumina. In the Darling Range, gallium is not typically present as a standalone mineral but occurs as a dispersed trace element through the bauxite profile. Table 2: Selected significant gallium intercepts from the Cardea 1 re-assay Hole ID From (m) Interval (m) Ga (ppm) Ga₂O₃ (ppm) JDV236 1.5 4.5 78.5 105.5 JDV237 1.5 3.0 78.1 104.9 JDV258 2.0 2.0 75.6 101.6 JDV259 2.5 1.5 77.9 104.8 JDV327 0.5 2.5 96.8 130.1 JDV332 0.0 3.0 84.7 113.9 JDV383 2.0 2.5 100.0 134.4 JDV389 1.0 5.5 76.4 102.7 JDV613 3.5 3.5 80.3 107.9 JDV312 1.5 0.5 106.0 142.5 JDV580 2.0 2.0 94.1 126.5 JDV585 0.5 1.5 92.4 124.2 JDV555 1.0 4.0 87.8 118.0 JDV563 1.0 3.0 87.6 117.8 JDV588 1.0 2.5 85.5 115.0 Intercepts are downhole intervals; drill holes were drilled vertical through approximately flat-lying mineralisation, so reported intervals approximate true widths. Full results are reported in Appendix 1 of the 25 May 2026 ASX announcement. Beyond the headline grades, the spatial distribution of the intercepts is the more material outcome. The drilling is concentrated across two principal sectors, mapped as Insert A (around the 6,511,000mN northing) and Insert B (around the 6,508,900mN northing), separated by approximately 2.5 kilometres along strike. Both sectors return shallow, broadly continuous mineralisation, supporting the interpretation that gallium enrichment within the project is not isolated to a single area but forms part of a laterally extensive trend developed across the lateritic profile. The Cross Section at 6,511,160mN (Figure 3) reveals a wide area of shallow gallium mineralization within the lateritic profile, with numerous drillholes showing consistently high Ga₂O₃ grades near the surface. Drillholes JDV262 to JDV269 exhibit strong continuity of mineralization along this section, featuring several high-grade intervals surpassing 100 ppm Ga₂O₃, with peak values reaching 139.8 ppm and 130.5 ppm. Figure 3: Cross Section 6,511,160mN highlighting Significant Gallium Oxide (Ga₂O₃) Grades (Source: WYX ASX Announcement May 25,2026) The cross section at 6,508,900mN reveals a widespread zone of shallow gallium mineralization within the weathered lateritic profile, with high Ga₂O₃ grades consistently found across several drillholes. The section indicates a rise in gallium concentration towards the eastern part of the line, where drillholes JDV613 and JDV614 yielded several high-grade results over 100 ppm Ga₂O₃, with peak assays reaching 121.5 ppm, 116.7 ppm, and 115.5 ppm. Figure 4: Cross Section 6,508,900mN highlighting Significant Gallium Oxide (Ga₂O₃) Grades (Source: WYX ASX Announcement May 25,2026) The shallow nature of the system — commonly within the upper few metres from surface — is the operational point of difference. It indicates the potential for low strip-ratio extraction scenarios and aligns the gallium horizon closely with the distribution of aluminous laterite and bauxitic units already mapped across the project area. The implication is that if a future development pathway through alumina is pursued, gallium has the potential to ride alongside as a by-product rather than as a standalone development decision. Management Commentary — Cardea 1 Re-Assay “These latest vacuum re-assayed pulps from the Cardea 1 Gallium Project continue to reinforce our view that we are dealing with a large-scale, shallow and laterally extensive gallium system with strong continuity across multiple target zones. Importantly, the mineralised footprint remains open in several directions and many drillholes outside the highlighted results continue to demonstrate anomalous gallium values, providing confidence that there is considerable upside for future resource definition and expansion drilling. “As global demand for gallium continues to increase due to its critical role in semiconductors, defence technologies and advanced electronics, we believe Cardea 1 is rapidly emerging as a potentially significant Australian gallium project with strong strategic relevance. These results provide a solid foundation for advancing the project toward systematic resource evaluation and further metallurgical assessment.” — Pedro Kastellorizos, Non-Executive Director, Western Yilgarn NL (25 May 2026) Gallium in the Darling Range: Province-Scale Context As the Gallium narrative swirls around the market place, Samso feels that there is too much emphasis being placed on the significance of how Gallium is a critical mineral and how valuable nature of the metal. For us, taking the Samso approach, once can be only valuable is there is a means to economise the metal. The market is now taken notice of the Gallium mineralisation across the Darling Range and hence attracting investor and producer attention. The province hosts one of the world's largest bauxite systems, extending south of Perth through areas historically mined for alumina feedstock by companies including Alcoa (Figure 5).The deposits formed through prolonged tropical-style weathering of granitic and doleritic basement rocks, resulting in thick lateritic profiles enriched in gibbsite and iron oxides. Figure 5: Western Yilgarn Bauxite Projects across Darling Range (Source: WYX Website) The relevance to a gallium investment thesis is straightforward. Alcoa is potentially sitting on a Gallium story that will be hard to compete as the company has the most important part of the chain, ready made infrastructure. The other is the large volume of unprocessed ore. As we all know now, gallium is commonly enriched in bauxite and alumina systems because the element substitutes for aluminium within gibbsite during lateritic weathering. As alumina refineries process these ores, gallium becomes concentrated in Bayer liquor circuits and refinery residues, creating downstream recovery opportunities. With gallium classified globally as a critical mineral on the back of its use in semiconductors, defence technologies, LEDs, photovoltaics and advanced electronics, historic bauxite provinces such as the Darling Range are being reassessed for their strategic gallium potential. The renewed interest reflects the broader supply concern that followed export restrictions imposed by major producing nations in recent years, and rising demand from the technology sector. Although the region's primary focus historically has been bauxite and alumina production, the scale of the lateritic systems suggests the potential for substantial contained gallium inventories when evaluated across large tonnage deposits. This creates an opportunity for projects to potentially incorporate gallium as a by-product alongside alumina production, improving project economics and supporting the development of secure Western supply chains for critical minerals. Western Yilgarn, in our opinion, just needs to establish the ore is economical and to develop scale. Once this is established, there is a hungry giant that will want to take on more feed for their gallium processing strategy. As a junior player with limited funding to establish a stand alone processing facility nor the appetite, Western Yilgarn is potentially sitting on a asset that has a natural buyer. Western Yilgarn's positioning within this province sits across multiple tenements. The 244Mt Total JORC (2012) bauxite resource base — Julimar West (168.3Mt at 36.1% Al₂O₃), Cardea 2 (20.1Mt at 32.1% Al₂O₃), Cardea 3 (16.6Mt at 34.2% Al₂O₃), and New Norcia (39.3Mt at 22.7% Available Al₂O₃) — provides the alumina footprint, and Cardea 1 now adds gallium-specific exploration leverage on top of that base. The Ida Holmes Junction Discovery Story The March quarter was dominated by results from the Ida Holmes Junction Project, a ~1,300 km² landholding located approximately 50 kilometres southwest of Gold Fields' Agnew Gold Mine within the Mt Ida–Agnew greenstone belt. The standout was the maiden discovery of gallium-tellurium mineralisation within Exploration Licence E36/1046. A rock chip reconnaissance program (Figure 6) returned all twelve samples with outstanding gallium values, including: • 169 ppm Ga, 227.17 ppm Ga₂O₃, 1.29 ppm Te in sample 30104 • 185.5 ppm Ga, 249.35 ppm Ga₂O₃, 1.19 ppm Te in sample 30106 • 171 ppm Ga, 229.86 ppm Ga₂O₃, 1.26 ppm Te in sample 30111 • 147 ppm Ga, 197.6 ppm Ga₂O₃, 0.99 ppm Te in sample 30109 Figure 6: Location map over E36/1046 highlighting the high-grade gallium rock chip results (Source WYX ASX Announcement Feb 09, 2026) The results span over 1.5 kilometres of strike length and the company has interpreted the tight clustering as indicative of structural control by the proximal Waroonga Shear Zone, rather than random supergene enrichment. The persistence of the gallium and tellurium signal across multiple samples is read as evidence that the shear zone was reactivated repeatedly, allowing successive hydrothermal events to upgrade the mineralised system. E36/1020 returned an additional set of high-grade gallium rock chips up to 153 ppm Ga (205.66 ppm Ga₂O₃), confirming a 200-metre strike by 120-metre wide gallium-bearing zone. Eight rock chip samples over E36/1028 returned high-grade cobalt-nickel-copper-lead-scandium results (Figure 7) with sample 30098 returning 2.47% Co, 0.58% Cu, 1.07% Ni, 1.30% Pb and 82.5 ppm Sc (126.25 ppm Sc₂O₃) — a result that defines a 120-metre along-strike zone east of the Ballard Fault Zone. Figure 7: Location Map over E36/1028 highlighting the high-grade Co-Cu-Ni-Pb-Sc rock chip results ( Source: WYX ASX Announcement Feb 18.2026) Next Steps at Cardia 1 The Project has growth potential within untested bauxite zones in the western portion of the Exploration Licence area at Cardea 1. Regional mapping by the Western Australian Geological Survey has delineated laterite and pisolitic gravels in which the bauxite — and by extension the gallium — occurs, and these areas will be systematically targeted as first-pass exploration. The company has flagged advancing the project toward systematic resource evaluation and further metallurgical assessment, which is the natural next gate for any project transitioning from re-assay confirmation toward maiden resource definition. Across the broader portfolio, the structural framework around Ida Holmes Junction and the relationship between the Waroonga Shear Zone, the Ballard Fault Zone and the identified mineralised footprints remains the obvious next geological question. Further systematic exploration is required to test that relationship. Table 3: Near-term milestones to watch Activity Timing Status / Source Cardea 1 — systematic targeting of untested western portion of E70/6703 Forward program Regional mapping completed; first-pass exploration to follow (25 May 2026 release) Cardea 1 — progression toward systematic resource evaluation and metallurgical assessment To be scheduled Flagged in Director commentary (25 May 2026 release) Ida Holmes Junction — follow-up exploration over E36/1046 gallium-tellurium discovery Ongoing Maiden rock chip results over 1.5km strike (Feb 2026 / March Quarterly) Ida Holmes Junction — systematic evaluation of relationship between Ballard Fault Zone and Co-Ni-Cu-Pb-Sc mineralisation at E36/1028 Ongoing Continuity confirmed over 120m strike (March Quarterly) Bauxite portfolio — ongoing land access and project advancement at Julimar West Underway Land access agreement signed 20 January 2026 About Western Yilgarn NL Western Yilgarn NL (ASX: WYX) is a Western Australian critical minerals and bauxite exploration company. The company holds a diversified portfolio of tenements across Western Australia spanning the Darling Range bauxite province, the Mt Ida–Agnew greenstone belt of the Eastern Goldfields, the Gascoyne region and other prospective areas. The company's bauxite portfolio carries a Total JORC (2012) Inferred Mineral Resource of 244Mt, comprising 205Mt at 34.1% total Al₂O₃ and 23.7% total SiO₂ across the Julimar West, Cardea 2 and Cardea 3 projects, and an additional 43Mt at 30.7% Available Al₂O₃ and 6.43% Reactive Silica using the Bomb Digest method across Cardea 2, Cardea 3 and New Norcia. Western Yilgarn's critical mineral exploration is anchored by the Ida Holmes Junction Project, a ~1,300 km² landholding located approximately 50 kilometres southwest of Gold Fields' Agnew Gold Mine. The Project hosts a maiden gallium-tellurium discovery within E36/1046 with rock chip values to 185.5 ppm Ga and 1.29 ppm Te over 1.5km strike, and confirmed Co-Ni-Cu-Pb-Sc rock chip mineralisation within E36/1028 with values to 2.47% Co and 126.25 ppm Sc₂O₃. The company reported A$366,000 in cash and cash equivalents at 31 March 2026, with no debt. Exploration and evaluation spend during the March 2026 quarter was A$94,362. 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 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.| 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 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 113: A Samso Exploration Discovery Series This is the first of the Samso Exploration Discovery Series that shares great discovery stories. These series share the thoughts that made the discoveries and the stories that followed. In this first of the series, we have Jon Hronsky OAM, of Western Mining Services telling us about the discovery of the West Musgraves Ni-Cu-PGE district. The West Musgrave Ni-Cu-PGE is more than a discovery as Jon Hronsky OAM puts it, this is a shift in understanding. A paradigm shift in the understanding of mineral exploration. This is a great story of how thinking outside the box brought about a change in looking at discoveries. I loved the idea that it was during this significant time that culminated in a whole new way of looking a finding major deposits. Western Mining was and is still the only company that was a world class explorer who dared to look for the Tier 1 deposits. Funding was not for mining the market but rather for the discoveries that was to be delivered by the geoscientists who were valued and cherished. Another take away from this episode is that the release of geophysical data had helped in the discovery. The whole concept of understanding deep seated structures being a source of mineralisation was only possible with the availability of government released datasets. Jon shared a lot of compelling thoughts on the subject and I got a lot more out of this conversation than I had first thought. One of the most impactful comments was that this discovery was really about creating a paradigm shift in how we look at finding deposits. The shift in world affairs and the major development in Mabo, was the catalyst that had sifted how geoscientist were allowed to think far and wide and was the beginning of how we currently work in mineral exploration. I have included time stamps for the video below: Chapters: 00:00 Start 01:06 The story begins. 01:23 What the discovery meant for mineral exploration. 02:10 Setting the scene for the story. 03:32 A shift in thinking about Nickel Exploration. 04:19 The start of exploring for a Norilsk type deposit. 05:27 The discovery of Voisey Bay Nickel deposit. 06:00 The birth of the new concept of Exploration Exploration. 08:50 The changing of old to new exploration thinking. 11:21 Why the Musgrave was still available. 13:24 The moment West Musgrave became live. 15:05 Was this a Nickel or an Exploration moment. 16:29 What we know now was not in the old days... 17:27 The emergence of digital geophysical database. 19:30 Missing out on Tropicana. 20:36 Exploration activities at the West Musgraves. 21:54 The Rob Waugh Story. 23:17 West Musgrave discovery was the beginning of more discoveries. 25:03 The reasons why good meticulous mineral exploration is valuable. 26:29 Julimar is a product of this early thinking process. 27:55 Where is the next frontier in Australia? 28:24 The greater McArthur Basin, Northern Territory. 30:11 Discovery is all about applying data knowledge. 31:46 The South Australian potential. 33:09 Potential elephants still available. 33:38 Early work is important but commonly not funded. 33:58 The Encounter Story. 34:43 The long gestation period of exploration. 37:28 Conclusion PODCAST This is a good time to download the first Ebook (FREE) from Samso as it is all about VMS (Volcanogenic Massive Sulfides). Download our eBook now About Jon Hronsky Jon Hronsky OAM (BAppSci, PhD) Chairman of the Board of the Center for Exploration Targeting in Western Australia Chairman of the Australian Geoscience Council (the peak body for geoscience organisations in Australia) Adjunct Professor at both the University of WA and Macquarie University. Jon Hronsky has more than thirty-five years of experience in the global mineral exploration industry, primarily focusing on project generation, technical innovation and exploration strategy development. He has worked across a diverse range of commodities and geographies, and has particular expertise in targeting nickel sulfide and gold deposits. His targeting work led to the discovery of the West Musgrave nickel sulfide province in Western Australia. His experience includes leadership roles in both major mining and junior mining companies, and he has consulted globally for the last 12 years. In January 2019 he was awarded the Order of Australia Medal for services to the mining industry. Jon is currently Chairman of the Board of the Center for Exploration Targeting in Western Australia, Chairman of the Australian Geoscience Council (the peak body for geoscience organisations in Australia) and an Adjunct Professor at both the University of WA and Macquarie University. He was the 2009 Society of Economic Geology Distinguished Lecturer. Jon joined WMS in 2007. Prior to that, he was Manager-Strategy & Generative Services for BHP Billiton Mineral Exploration and Global Geoscience Leader for WMC Resources Ltd. About Western Mining Services Western Mining Services (WMS) provides the best in geoscientific and risk management advice and services to mineral explorers globally. WMS offers a range of essential services: Advice on exploration strategy development both brownfield and greenfield Review and critique of mineral exploration strategies, plans and programs Assistance with the organisational structures Metallogenic framework and mineral targeting studies that deliver viable greenfield targets Brownfield and near-mine studies and target generation Support for target validation at all scales Technical due diligence and new opportunity analysis Deal terms review and evaluation Commercial risk analysis WMS' proven track record: Over the last 12 years, WMS helped more than sixty companies pursue exploration programs and opportunities globally. The resulting rewards include the largest gold-copper skarn discovery in the Americas and major nickel and gold discoveries in Australia. Over 600 students attended their popular Senior Exploration Management (SEM) Course which, by many accounts, ranks as “one of the best”. WMS offers the SEM Course annually in Perth WA and Denver CO, and also offers the course in-house for clients who want a course tailored to their strategy and exploration program. WMS developed an on-line Senior Exploration Management (SEM) course that tracks in-person SEM Course and that will make excellent, experienced training services more available to exploration groups worldwide. WMS Team is experienced, focused and eager to help achieve the mineral exploration mission. Please contact us, and let’s discuss how we can help. CONTACT JON HRONSKY m/ +61 417992518 e/ jon.hronsky@wesminllc.com w/ https://www.wesminllc.com/ 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 Keep us informed too! Please let us know your thoughts and send us any comments to info@samso.com.au. Remember to Subscribe to our YouTube Channel, Samso Media and our mail list to stay informed and make comments where appropriate. Other than that, you can also give us a Review on Google.

A WA explorer secures government backing for its Whaleshark Copper-Gold project while kicking off the first auger campaign at a high-grade base-metals prospect since 1964. Samso News | ASX: M2R | Copper-Gold | SEDEX | IOCG | Gascoyne Region | Miramar Resources Limited (ASX: M2R) released three announcements between 30 April and 19 May 2026, marking a clear uptick in field momentum across its Gascoyne region portfolio (Figure 1). On 30 April, Miramar confirmed it had secured up to $180,000 in WA Government co-funding under Round 33 of the Exploration Incentive Scheme (EIS) for drilling at its 100%-owned Whaleshark copper-gold project in the Ashburton region. Thirteen days later, on 13 May, the company advised that an auger drilling team had begun mobilising to the Joy Helen prospect within the Chain Pool Project - the first drilling programme at the site since 1964. By 19 May, the rig was turning. Miramar expects the approximately 100-hole auger programme to take around two weeks, with samples to be returned to Perth for assay. Figure 1: Miramar's Gascoyne Region Projects (Source: M2R Website) Samso Summary Table 1: Summary of the Miramar Resources news flow Item Detail ASX Code M2R Company Miramar Resources Limited Key Projects Covered Whaleshark (IOCG, Cu-Au) | Chain Pool (SEDEX, Cu-Pb-Ag) EIS Co-Funding Secured Up to A$180,000 for Whaleshark drilling Whaleshark Location ~40km east of Onslow, Ashburton region, WA Chain Pool Programme ~100 auger holes across three alteration halos at Joy Helen Joy Helen Strike Length ~300m confirmed; potential extension to ~1km Best Rock Chip Result CP003: 73.48g/t Ag, 5.48% Cu, 42.0% Pb Shares on Issue 2,109,589,909 Market Cap ~A$6.33 million (@ A$0.003) Cash (31 March 2026) A$1.13 million About Whaleshark Copper-Gold Project Whaleshark sits at the north-western end of the Proterozoic Capricorn Orogen and is characterised by a Proterozoic banded iron formation and granodiorite intrusion beneath approximately 100m of Cretaceous Carnarvon Basin sediments. Historical exploration in the mid-1990s included diamond drilling that intersected gold mineralisation in one of the banded iron formation units. Miramar has been building its understanding of the project systematically since 2020. Aircore drilling to the basement in 2022 returned strongly anomalous IOCG pathfinders beneath Mobile Metal Ion surface geochemical anomalism. EIS co-funded diamond drilling in 2023 intersected primary copper sulphide mineralisation — including chalcopyrite — within structures crosscutting the granodiorite. “A key advantage of exploration at Whaleshark is that the prospective basement rocks are much shallower than in other IOCG provinces, such as the Stuart Shelf in South Australia, and we are now refining and prioritising targets prior to drill testing. We have strongly anomalous copper, gold and other IOCG pathfinders, IOCG-style alteration and copper sulphide mineralisation associated with iron-rich rocks at Whaleshark, so we are very keen to drill our new targets.” — Marion Bush, Managing Director, Miramar Resources New Targets from MVI Modelling Magnetisation Vector Inversion (MVI) modelling completed in 2025 identified several new targets carrying overlapping gravity and magnetic anomalies — a key signature of many large IOCG deposits globally. The key advantage that Miramar identified at the Whaleshark project is that the prospective basement rocks are considerably shallower than in comparable IOCG provinces such as the Stuart Shelf in South Australia, reducing the cost and risk of initial drill testing. The project is also well-serviced by existing infrastructure, including the Northwest Coastal Highway, the Dampier-Bunbury Natural Gas Pipeline, and port facilities at Onslow, Mardie and Cape Preston. The company stated it is now refining and prioritising drill targets ahead of the funded programme. Figure 2: Whaleshark Project showing MVI model and proposed aircore drill targets (stars).( Source: M2R ASX Release 30 April 2026) Chain Pool Drilling Earlier this month, Miramar's drill team mobilised to the Joy Helen prospect within the Chain Pool Project (E08/3676), located approximately 275km northeast of Carnarvon in WA’s Gascoyne region. Miramar confirmed on 19 May that auger drilling had commenced at Joy Helen — the first drilling of any kind at Chain Pool in over 60 years (Figure 2). Figure 3: Auger rig on site at Joy Helen, Chain Pool Project, May 2026. (Source: M2R, ASX Release 19 May 2026.) The auger rig is targeting the three main carbonate alteration halos defined by Miramar’s prior soil sampling. The programme aims to outline the extent of high-grade mineralisation beneath shallow cover, with Miramar believing the SEDEX-style copper-lead-silver mineralisation may be close to surface given the geological setting. Samples collected during the programme will be returned to Perth for assay. The company noted it will keep investors informed as the programme progresses. Previously, the programme had been pushed back from its original Easter window by Tropical Cyclone Narelle and fuel supply restrictions. “We're happy to have a drill bit turning again at our Chain Pool project for the first time in over 60 years. This is the first drilling since rotary air blast holes were completed back in 1964 and there has been no systematic or recent exploration either, so it's a fantastic opportunity for a potential base metal discovery.” — Marion Bush, Managing Director, Miramar Resources Joy Helen Prospect — Historical Context Joy Helen has been known since at least the 1960s. According to historical data, the prospect contains flat-dipping irregular segregations of copper, lead and zinc minerals in silicified dolomite breccia of the Middle Proterozoic Irregully Formation, arranged in three lodes. The eastern lode shaft reportedly assayed 2.4m at 35% Pb and 5% Cu, and the middle lode 9m at 5–10% Pb. A chip sample from a pit on the eastern lode graded 23.6% Pb, 0.24% Zn, 0.15% Cu and 19.28g/t Ag. The Middle Proterozoic (Mesoproterozoic) Irregully Formation is a major carbonate-dominated geological unit situated in the Edmund Basin of the Gascoyne Region in Western Australia. It forms the basal unit of the Bangemall Group and is historically and economically significant for its stratiform sediment-hosted lead-zinc-silver (SEDEX) and copper mineralization. An example of the use of veins to establish a cover fold history—irregully formation, western Australia In 1964, a programme of 91 shallow vertical rotary air blast holes was drilled around the old workings, intersecting sub-horizontal copper and lead mineralisation — up to 1.6% and 13.7% respectively — in silicified dolomite breccia at depths up to 35 feet (WAMEX reports a567 and a574). That was the last time a drill bit turned at this site. There has been no modern or systematic exploration of Joy Helen since then. Miramar applied for E08/3676 in December 2023; the tenement was granted in August 2024. “Joy Helen is hosted in carbonate rocks located adjacent to a major growth fault at the edge of the Edmund Basin, while soil sampling exhibits the same zoned carbonate alteration halo with increasing base metal values towards the proximal siderite zone as seen in the typical SEDEX model.” — Allan Kelly, Technical Director, Miramar Resources Miramar’s Work to Date Initial reconnaissance rock chip sampling in July 2024, conducted before the grant of the tenement, returned several high-grade Cu-Pb-Ag results, including CP003: 73.48g/t Ag, 5.48% Cu, 42.0% Pb (Figure 3). Figure 3. Sample CP003 from Joy Helen (73.48g/t Ag, 5.48% Cu, 42% Pb). (Source: M2R, ASX Release 19 May 2026) Subsequent sampling confirmed and extended the known mineralisation, with strike potentially reaching at least one kilometre when a historic 1994 CRA sample within the adjacent Barlee Range Nature Reserve — reportedly grading 4.6% Cu, 40% Pb and 20g/t Ag and described as malachite and galena — is taken into account. Grid soil sampling identified potential for additional parallel mineralised zones to the east and west, consistent with folding of the mineralisation post-emplacement. Table 2: Joy Helen Rock Chip Results - 2024 (Source: Miramar Resources, ASX Release 21 November 2024.) Sample Ag (g/t) Cu (%) Pb (%) Other CP001 40.34 3.34 54.5 71.15ppm Sb, 405ppm Zn CP002 36.16 5.42 36.7 82.6ppm Sb, 2659ppm Zn CP003 73.48 5.48 42.0 51.81ppm Sb, 925ppm Zn CP004 23.70 3.78 32.0 24.42ppm Sb, 398ppm Zn CP005 34.48 0.45 29.7 23.06ppm Sb, 3913ppm Zn CP006 8.60 3.22 6.67 26.02ppm Sb, 521ppm Zn CP007 59.49 7.23 26.7 65.34ppm Sb, 856ppm Zn, 0.81g/t Au Programme Design The auger programme planned approximately 100 shallow vertical holes across the three main carbonate alteration halos identified by soil sampling at Joy Helen, with expected depths ranging from 2 to 20 metres. Managing Director Marion Bush confirmed the two-week programme would be the first drilling of any kind since 1964, and that next steps, depending on results, could include aircore and/or RC drilling. The SEDEX deposit model underpins the exploration approach. Miramar’s Technical Director Allan Kelly noted that Joy Helen sits hosted in carbonate rocks adjacent to a major growth fault at the edge of the Edmund Basin — a setting consistent with well-known SEDEX systems such as the Cannington, George Fisher, Mount Isa and HYC deposits in Australia, and the Lady Loretta deposit in Queensland. Soil sampling at Joy Helen exhibits the same zoned carbonate alteration halo — with increasing base metal values towards the proximal siderite zone — as observed at Lady Loretta. About Miramar Resources Limited Miramar Resources Limited is a WA-focused mineral exploration company targeting gold, copper and nickel-copper-PGE deposits across the Eastern Goldfields and Gascoyne regions of Western Australia. The board carries a track record of discovery, development and production within Australia, Africa and North America. Since listing, Miramar has maintained a high level of exploration expenditure, averaging approximately 70.5% of cash flow to date allocated directly to exploration. The company holds eight projects across two primary regions: the Eastern Goldfields — anchored by the 80%-owned Gidji JV Gold Project near Kalgoorlie — and the Gascoyne, where it holds Whaleshark, Chain Pool, Bangemall, Carnarvon Sands and the newly optioned South Ashburton project. Miramar completed the sale of its Randalls Project to Ore Resources Limited (ASX: OR3, formerly known as Future Battery Minerals Ltd) on 7 April 2026, as part of an ongoing strategy to rationalise its Eastern Goldfields portfolio and focus capital on its highest-priority targets. Previous Samso News Coverage Samso has followed Miramar Resources across multiple ASX releases. The following represents our prior published coverage of the company: April 3, 2026 - March 19, 2026 - January 17, 2026 - December 9, 2025 - September 11, 2025 - August 15, 2025 - July 9, 2025 - June 16, 2025 - May 16, 2025 - December 16, 2024 - August 20, 2024 - November 30, 2022 - July 21, 2022 - May 20, 2022 - February 8, 2022 - November 1, 2021 - February 15, 2021 - Samso Concluding Comments What I like about Miramar Resources is that the potential for a discovery is always present. I have always felt that the targets and the potential of discovery whenever Allan Kelly and the team, or rather Marion Bush and the Team, are always legitimate. I have a lot od respect for the thinking behind the team. The concept that Chain Pool could be an IOCG target is exciting. This latest steps to discover the potential of Chain Pool is one that I am happy to take a position in Miramar for as the upside is very clear. Miramar has a AUD $5M market capitalisation and has a history of being very liquid when trading occurs. If and when a discovery comes, The potential will be rewarding. As I have mentioned, the history that has been outlined above for a potential discovery is very clear and concise. The strategy is implicit and in my opinion, it is balanced and had good scientific merit. What they need now is luck and for those well healed investors in this sector, Lady Luck is very important. The auger program is not going to be the one that makes the discovery but it will definitely get excitement happening if there are added conclusive indication of mineralisation beneath the surface. Hence, patience is very important and the low market capitalisation is good for those still looking to top up or get a position. 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 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.| 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 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

Daly Resources Limited is set to list on the ASX AT A GLANCE Company Name: Daly Resources Limited Proposed ASX Code: DLY Raise: $10m – $12m @ $0.25/share Indicative Market Cap: ~$20.75m – $22.75m Prospectus lodged: 27 April 2026 | Offer close: 19 May 2026 Expected ASX quotation: 16 June 2026 What you are looking at: A frontier NT explorer with 13,092 km² of ground in the McArthur and Georgina Basins, a high-grade fluorite signature already in hand at Huckitta (rock chips up to 95.1% CaF₂ across ~6 km of strike), an experienced ASX-aligned board and management group, and a 13% strategic holding from Sandfire Resources (ASX: SFR) — which sold the seed package and is now along for the ride. The strongest leg: Huckitta fluorite, near Tivan Limited's (ASX: TVN) Sandover Project. The hydrothermal vein system is real, mapped and sampled — it's now a drilling story, set against a tightening global fluorspar market. The points of friction: No JORC resource yet on any project, going-concern flag on the audit, dilution from the IPO is heavy (existing shareholders go from 100% to ~47% on max), and the Lead Manager fee load is at the upper end of what you see on small-cap raises. The deal is priced for an exploration story, not a development story. 1. The 60-Second Pitch Daly Resources Limited (proposed ASX: DLY) is an Australian mineral exploration company listing on the ASX with a $10m (minimum) to $12m (maximum) raise at $0.25 per share. The company is asking the market to back five exploration projects across approximately 13,092 km² in the McArthur and Georgina Basins in the Northern Territory (Figure 1). The targets are fluorite, copper, zinc, lead and silver. The flagship — and where management says the immediate work will go — is the Huckitta Project, 200 km northeast of Alice Springs. Huckitta sits on the same fluorite reef system as the Sandover Project owned by Tivan Limited (ASX: TVN) (Figure 2). In December 2025, Daly's own rock chip program over a ~6 km northern fluorite belt returned grades up to 95.1% CaF₂, with the majority of high-grade samples above 85% CaF₂. The historic drillhole PH1 intersected 6.1 m at 35.1% CaF₂ — and the rest of the system has barely been touched. Sitting alongside Huckitta are four base-metals plays of varying maturity: Batten (next door to Glencore's giant McArthur River zinc mine), Broughton, Beetaloo and Bulman-Jimbu. These are largely greenfields, but they cover a significant acreage in a country that has not seen modern systematic exploration. The notable shareholder on the register is Sandfire Resources (ASX: SFR). Sandfire vended its North Batten and Huckitta tenure into Daly via a sale and purchase agreement that completed on 28 October 2024, took 12 million shares as consideration, retained a 1.5% net smelter return royalty over those tenements, and negotiated a participation right in future capital raisings. Sandfire's holding on Admission will be ~13.19% (Max Subscription) — diluted from 27.91% pre-IPO. That is a real signal: Sandfire is an ASX 100 copper specialist with a global portfolio (MATSA in Spain, Motheo in Botswana) and it does not put its name on ground lightly. 2. Daly Resources IPO Snapshot Everything you need to know about the Daly Resources IPO in one table: Table 1: IPO Snapshot Item Detail Company Daly Resources Limited (ACN 664 007 621) Proposed ASX Code DLY Offer Price $0.25 per share Raise (min / max) $10.0m / $12.0m (40m / 48m shares) Indicative Market Cap (Min / Max) ~$20.75m / ~$22.75m (undiluted, at offer price) Existing Shares on Issue 43,000,000 Shares on Issue at Admission 83,000,000 (Min) – 91,000,000 (Max) Free Float Not less than 20% Lead Manager Euroz Hartleys Limited Cornerstone / Strategic Sandfire Resources (ASX: SFR) – 12,000,000 shares (13.19% Max / 14.46% Min) Lead Manager Options 4,000,000 unquoted: 2m @ $0.40 + 2m @ $0.50, 4-yr expiry Performance Rights 5,500,000 (vest at $0.75 and $1.00 20-day VWAP) Capital Raising Fee 6% of funds raised + Lead Manager Options Lodgement / Close / Quotation 27 Apr 2026 / 19 May 2026 / 16 Jun 2026 (indicative) Min Application 10,000 shares ($2,500), then $625 increments Eligible Jurisdictions Australia, and certain investors in New Zealand 3. Capital Structure & Dilution The capital structure of the Daly Resources post-Admission is set out below. The headline number to internalise: existing shareholders go from owning 100% to approximately 47% on Maximum Subscription (51.8% on Minimum). On a fully diluted basis (assuming all options and performance rights vest), there will be 119,250,000 securities in issue at Maximum — a 177% increase from today's 43 million. Table 2: Capital Structure & Dilution Security class Min sub. (Shares) % Max sub. (Shares) Max sub. (Shares) Existing shares 43,000,000 51.81% 43,000,000 47.25% New shares (Public Offer) 40,000,000 48.19% 48,000,000 52.75% Total shares at Admission 83,000,000 100.00% 91,000,000 100.00% Options on issue 22,750,000 — 22,750,000 — Performance Rights 5,500,000 — 5,500,000 — Fully diluted total 111,250,000 — 119,250,000 — The Options and Performance Rights stack There are 22,750,000 options on issue at Admission. The mix: 8,500,000 Options with an exercise price of $0.40, expiring 5 years from Admission 7,750,000 Options with an exercise price of $0.30, expiring 5 years from Admission 500,000 Options with an exercise price of $0.50, expiring 5 years from Admission 2,000,000 Options issued as consideration for the Cedar Resources Pty Ltd acquisition (1m @ $0.30 + 1m @ $0.40), expiring 5 years from Admission 4,000,000 Lead Manager Options (2m @ $0.40 + 2m @ $0.50), expiring 4 years from Admission The 5,500,000 Performance Rights split into two equal tranches: 2,750,000 vest at a 20-day VWAP of $0.75 (a 3.0× re-rate from the IPO price) 2,750,000 vest at a 20-day VWAP of $1.00 (a 4.0× re-rate) These are ambitious but reasonable hurdles. If the share price actually hits $1.00 sustained, the dilution from the rights and options exercise is exactly the kind of dilution every shareholder will be happy to suffer. 4. Use of Funds The board's intended use of the raise over the first two years post-Admission: Table 3: Use of Funds Use of funds (over 2 years) Min sub. ($) % Max sub. ($) % Exploration & development 7,030,000 67.0% 8,100,000 64.8% Directors & management fees 879,200 8.4% 879,200 7.0% Costs of the offer 732,832 7.0% 825,463 6.6% Working capital 1,852,935 17.6% 2,690,304 21.5% Total 10,494,967 100.0% 12,494,967 100.0% 5. The Project Portfolio Daly comes to market with five projects totalling 13,092 km² across two world-class Australian basin systems. The portfolio summary: Table 4: Project Portfolio Project Area (km²) Targets Granted / Application Lever / Analogue Huckitta 3,729 Fluorite, Cu, Zn, Pb 9 granted / 1 app Adjacent to Tivan's Sandover; on same fluorite belt Batten 1,129 Cu, Zn, Pb, Ag 5 granted / 1 app ~13km from Glencore's McArthur River (HYC) Broughton 1,633 Cu, Zn 4 granted Sandstone-hosted (Laisvall analogue) Beetaloo 4,945 Cu, Zn 6 applications Sediment-hosted Cu concept; untested Bulman-Jimbu 1,656 Zn, Pb 2 applications Adjacent to historic Bulman Mine (MVT style) TOTAL ~13,092 Multi-commodity 19 granted / 9 apps Strategic partner: Sandfire (13.19%) Figure 1: Daly Resources Tenure in the Northern Territory ( Source: Daly Resources IPO Prospectus) 5.1 Huckitta — The Hero Asset If you are buying DLY shares, you are mostly buying Huckitta. That is according to the directors says so, the budget says so, and the geology says so. Huckitta sits in the southern Georgina Basin, 200 km northeast of Alice Springs, accessible via the Plenty Highway and station tracks. The project covers 3,729 km² across 9 granted licences and 1 application. It straddles the northern margin of the Jinka Granite (1,730–1,710 Ma) and the southern fringe of the Georgina Basin which is a geological setting that hosts a long, well-developed hydrothermal fluorite vein system. Figure 2: Huckitta Project Geology (Source: Daly Resources IPO Prospectus) Why Huckitta matters It is on the same fluorite trend as Tivan Limited's (ASX: TVN) Sandover Project. Tivan's late-2025 maiden diamond drilling program (7 holes, 518 m) intersected fluorite in every hole — including 20.3 m at 18.9% CaF₂ from 24 m (with 6.2 m at 37.7%) and 3.4 m at 71.7% CaF₂ from 36.8 m. That confirmed continuity at depth on the same vein system that runs into Daly's tenure. Daly's own 92-sample rock chip program in December 2025 returned grades up to 95.1% CaF₂ across ~6 km of strike, with the bulk of high-grade samples exceeding 85% CaF₂. Historic drillhole PH1 intersected 6.1 m at 35.1% CaF₂ in the same belt. Limited modern exploration. The fluorite reefs were first noted by Central Pacific Minerals in the 1970s and have barely been worked since. Only two airtrack holes (58 m total) have ever been drilled for fluorite within Daly's tenure. Copper and base metal upside is real. Sandfire's pre-vending work identified the southern Georgina Basin as having all the geological ingredients for sediment-hosted (Kupferschiefer-style) copper, but only 20 deeper-than-50 m drillholes exist across the entire project. The Box Hole Pb-Zn prospect within a tenement excision and the nearby Jervois Cu-Pb-Zn project (KGL Resources Ltd) flag the broader base-metals prospectivity. Daly is budgeting $4.04m – $4.82m for Huckitta over Years 1 and 2 — about 60% of the total exploration budget. Drilling is planned in Year 1 (~$200k–$300k) with the bulk in Year 2 ($1.3m–$1.6m), after geophysics, geochemistry and native title surveys are completed in Year 1. 5.2 Batten — Living Next Door to Glencore The Batten Project is 13 km west of the operating McArthur River mine, one of the world's largest Zn-Pb-Ag mines, owned by Glencore plc. The project covers 1,129 km² and is targeting the same McArthur River (HYC) style of sediment-hosted Zn-Pb-Ag mineralisation — bedded massive sulphides in the HYC Pyritic Shale Member of the ~1640 Ma Barney Creek Formation. The Teena deposit, Rox Resources & Teck's discovery from the 2010s, sits 7 km from Daly's Batten ground and carries an Inferred resource of 58 Mt @ 11.1% Zn, 1.6% Pb. The Myrtle deposit is 16 km south of HYC at 43.6 Mt @ 4.1% Zn, 0.9% Pb. Daly's pitch on Batten is that the petroleum-mineral systems approach (Century, QLD and Dzhezkazgan, Kazakhstan as analogues) has been under-applied here, and that the legacy Falcon gravity data acquired by Teck remains under-utilised. Geographically, this is the most mature project in the portfolio. Geologically, it is also where the most prior money has been spent — by Mount Isa Mines, BHP, Sandfire (which originally held these tenements before vending them in), MMG and Teck across roughly 40 years. None of them found it. Daly is going to need a genuinely differentiated approach to crack it. Budget: $1.46m – $1.59m over 2 years. Includes $400k for diamond drilling in Year 1. 5.3 Broughton, Beetaloo, Bulman-Jimbu — The Long Optionality These three projects are early-stage frontier ground covering ~8,234 km² in aggregate. They are not the reason to buy this IPO, but they are why the company has 28 tenements in total. Broughton (1,633 km², 4 granted): On the Roper Group, Arnhem Shelf. The Poseidon-Normandy exploration era of 1989–1995 defined the Galena Cliffs, Conways and Swamp prospects using a Laisvall (Sweden) sandstone-hosted Pb-Zn analogue. Limited follow-up since. Budget: nominal — the project is being held but is not currently a drill target. Beetaloo (4,945 km², 6 applications): All ground still in application phase. Sits at a major structural intersection on the SW margin of the Beetaloo Basin (part of the Greater McArthur Superbasin that hosts HYC). Concept-stage sediment-hosted Cu target. Will be a paper exercise (water bore analysis, AEM, historic core review) over the next 24 months pending grant. Bulman-Jimbu (1,656 km², 2 applications): Two tenement applications along the Bulman Fault, immediately west of the historic Bulman Mine which produced Zn and Pb intermittently to ~1940. MVT-style mineralisation in carbonates. Largely virgin ground. 6. The Exploration Budget Here is what management is actually going to spend the money on over the next two years: Table 5: Exploration Budget Project Yr 1 Min ($) Yr 2 Min ($) 2-Yr Min Total 2-Yr Max Total Huckitta (priority) 1,580,000 2,460,000 4,040,000 4,820,000 Batten 910,000 550,000 1,460,000 1,590,000 Broughton + others 670,000 860,000 1,530,000 1,690,000 Grand Total 3,160,000 3,870,000 7,030,000 8,100,000 7. The Board, the Management, the Story Behind Them A small-cap exploration IPO is, more than anything else, a bet on people. The Daly cast is tight-knit, ASX-experienced, and substantially overlapping with another ASX-listed entity — Metal Hawk Limited (ASX: MHK). Four of the seven listed individuals on the Daly team currently hold roles at Metal Hawk. Table 6: Board and Management Name Role Track record / signal Mike Edwards Executive Chairman Geologist/economist, 25+ yrs. Ex-NEC of Firefly → Spartan Resources, acquired by Ramelius for ~$4.2b in Aug 2025. Currently NEC of Metal Hawk, NED of De.Mem, Javelin & Sommerset Minerals. David Pennock Non-Exec Director (Founder) Corporate geologist, 20+ yrs. Appointed on incorporation (Nov 2022). Currently Executive Director of Metal Hawk Limited (ASX: MHK). Scott Glasson Finance Director Chartered Accountant, 20+ yrs (KPMG, EY). Currently CFO of Metal Hawk Ltd and Director of TalonX Resources. William Belbin Non-Exec Director Exploration geologist, 20+ yrs. Was Exploration Manager at Rox Resources during the Teena Zn discovery in the NT, and worked the Fisher East Ni-sulphide discoveries. Currently MD of Metal Hawk Limited (ASX: MHK). Gregor Bennett Chief Geologist 15+ yrs. At Rox: 2.3Moz Au at Youanmi; 7.5Mt Fisher East Ni; Teena Zn deposit. Driver of Daly's Huckitta fluorite work. Daniel Greene Exploration Manager 19 yrs exploration mgmt, 6+ years specifically in the NT (Alligator Rivers, Murphy Province) as Exploration Manager – NT with DevEx Resources. Chris Marshall Company Secretary Corporate / mining lawyer, 18+ yrs (Corrs Chambers Westgarth). Also Co Sec for Metal Hawk and TalonX Resources. Table 7: Distribution of Shares Director Shares % (Max) Options Perf Rts FD % Mike Edwards 600,000 0.66% 2,000,000 1,000,000 0.50% David Pennock 2,650,000 2.91% 3,000,000 1,000,000 2.22% Scott Glasson 2,500,000 2.75% 3,000,000 1,000,000 2.10% William Belbin 2,300,000 2.53% 3,000,000 1,000,000 1.93% Board total 8,050,000 ~8.85% 11,000,000 4,000,000 ~6.75% 8. The Sandfire Factor The Sandfire shareholding is the single most distinctive feature of this IPO and deserves careful attention. It is part validation, part overhang, part transaction history. Table 8: The Sandfire Factor Holder Shares (pre-IPO) % (pre-IPO) % on Admission (Max) Sandfire Resources (ASX: SFR) 12,000,000 27.91% 13.19% David Rawlings 2,900,000 6.74% < 5% David Pennock (Director) 2,650,000 6.16% < 5% Scott Glasson (Finance Director) 2,500,000 5.81% < 5% William Belbin (Director) 2,300,000 5.35% < 5% The Deal Mechanics On 28 October 2024, Daly's wholly-owned subsidiary Glyde River Pty Ltd completed the acquisition of Sandfire's North Batten and Huckitta tenements via a sale and purchase agreement (Sandfire SPA). The consideration was 12,000,000 Daly shares. As part of that transaction, Glyde River: Granted Sandfire a 1.5% net smelter return royalty over 11 specified tenements (the Sandfire Royalty Tenements), covering all base and precious metals discovered. Payable from first commercial production. Granted Sandfire security over those tenements until the royalty obligation is satisfied. Assumed the Finching Royalty — $0.50 per tonne of manganese ore — though this may no longer apply, as the relevant historic tenements have been relinquished. Agreed to provide Sandfire with advanced notice of any future equity capital raisings, and to use reasonable endeavours to allow Sandfire to participate. This right ceases on a change of control of Sandfire, or if Sandfire's holding drops below 10% for more than 20 consecutive days, or 5 years post-completion (i.e. 28 October 2029). Net read: Sandfire monetised exploration ground it could not justify holding inside an ASX 100 copper producer, took equity in a focused vehicle, retained royalty upside on any discovery, and locked in a follow-on participation right. This is a classic strategic divestment structure — and it is identical in shape to what Sandfire has done with several other early-stage explorers over the years. 9. The Financials — Light Daly's pre-IPO financials look exactly like you would expect for a pre-revenue exploration company on the eve of listing — small numbers, capitalised exploration spend, and a going-concern flag from the auditor pending the success of the IPO. Table 9: The Financials Selected items 31-Dec-25 30-Jun-25 30-Jun-24 Cash & equivalents $69,357 $36,326 $149,941 Exploration & evaluation (capitalised) $1,775,593 $1,711,708 $224,840 Total assets $1,845,663 $1,759,401 $375,919 Net assets $1,822,266 $1,734,709 $352,452 Net loss for period ($22,443) ($352,743) ($62,850) Accumulated losses ($635,234) ($612,791) ($260,048) Share Capital $2,457,500 $2,347,500 $612,500 Two things stand out: First, the company is running on fumes pre-IPO. At 31 December 2025, cash was just $69,357 against trade payables of $23,397. The company has been kept alive on small seed raises ($600,000 in the most recent round, contributing 6 million shares at a blended ~$0.10 price). The IPO is genuinely binary for the entity — without it, Daly is not going to continue. The auditor (Hall Chadwick) has flagged a material uncertainty as to the company's ability to continue as a going concern. The previous auditor (BDO Australia) flagged the same for the year ended 30 June 2024. Second — the bulk of value to date sits in capitalised exploration assets ($1.78m at 31 December 2025). This is bookkeeping, not market value. It reflects historical spending on tenements, not a JORC asset on the ground. The auditor's IFRS-compliant view is that this spend is recoverable in the future, which is itself contingent on the IPO succeeding and exploration delivering results. Pro-forma post-Offer position Assuming the offer closes at Minimum Subscription, Daly will have approximately $9.9m in cash on the balance sheet on Day 1 of listing. At Maximum, approximately $11.8m. Net assets become approximately $12.0m (Min) to $13.9m (Max). At a $20.75m (Min) to $22.75m (Max) market cap, the enterprise value at listing will be approximately $10.8m (Min) and $10.95m (Max) — most of the market cap is the IPO cash. Table 10: Pro forma post-Offer position Pro forma (post-Offer) Reviewed 31-Dec-25 Pro forma Min Pro forma Max Cash & equivalents $69,357 $9,898,025 $11,805,394 Exploration assets $1,775,593 $2,150,593 $2,150,593 Net assets $1,822,266 $12,025,934 $13,933,304 Issued capital $2,457,500 $11,883,897 $13,793,897 10. The Market Context — Fluorite is the Hidden Critical Mineral Most investors look at Daly and instinctively price it as a base-metals explorer. They should not. The economic engine — over the next 12 to 24 months — is fluorite (fluorspar) at Huckitta. And the global fluorite picture has shifted dramatically in the past 18 months. The Fluorite Story Fluorite (CaF₂) is the primary commercial source of fluorine. Fluorine, in turn, is the input for hydrofluoric acid — and HF feeds into refrigerants, fluoropolymers, fluoropharmaceuticals, aluminium smelting, uranium hexafluoride enrichment (for nuclear fuel), and increasingly into the electrolyte chemistry of lithium-ion batteries (lithium hexafluorophosphate, or LiPF₆). Acid-grade fluorspar (≥97% CaF₂) is the highest-value grade and the one most relevant to chemical and battery markets. The global fluorspar market is approximately 8 million tonnes per annum, with China producing more than 60% of supply. China has been a net exporter of fluorspar but in 2022–2023 transitioned to net importer status as domestic reserves depleted and high-quality material was prioritised for domestic chemical manufacturing. China designated fluorite a strategic mineral resource. Acid-grade fluorspar prices in Europe (CIF) have moved from below US$400/t three years ago to approximately US$750/t recently, with Mexican material at US$550/t and Chinese at US$530/t. The US classifies fluorspar as a critical mineral. Australia is moving in the same direction — Tivan Limited's Speewah pre-feasibility (July 2024) was framed explicitly within Australia's Critical Minerals Strategy. Samso Concluding Comments Daly's campaign to be a Fluorite player is starting with some good "noise", with the recent rock-chips returning high-grade fluorite (multiple samples above 85% CaF₂, peak 95.1%) along a 6 km belt that has had virtually no modern drilling. Then there is the nearology play with the adjacent Tivan Limited (ASX: TVN) Sandover Project, which is on the same vein system to the south. This simply means that the natural conversation will be the next drilling program that has some clear targets. If Daly executes a successful 2026–2027 drilling campaign at Huckitta and converts the results into a JORC-compliant inferred resource, the asset will re-rate with a narrative of a tightening global supply-demand backdrop. Tivan's NT fluorite story has already attracted Northern Territory government and Strategic Minerals attention, so that is all good news for Daly. The interesting part is that I have worked in the same region as both Huckitta and the Batten project back in the early 1990s. If my memory serves me well, the Huckitta area is geologically "interesting". For those that need more information, take a look at our Samso News on these recent Fluorspar stories: 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. 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The mill in Victoria has just doubled its run-time, the Union Hill decline is being opened up after years of stillness, and a string of fresh exploration targets is queuing up for the drill bit. Samso News | ASX: KAU | Gold | Maldon Gold Project Kaiser Reef Limited (ASX: KAU) has accelerated operations this month across its Maldon Gold Project in Victoria. As of 1 May 2026, the Porcupine Flat Processing Plant has transitioned to a two-shift operation, enhancing its processing capacity. On 18 May 2026, the company announced the commencement of underground refurbishment at the Union Hill Decline, signalling a significant step in the project's development. In conjunction with the refurbishment efforts, the company is preparing several exploration targets within the Maldon Gold Project, aiming to expand its resource base and improve overall project viability. Table 1: Summary of May 2026 activities Samso Summary Details Company Kaiser Reef Limited ASX Code KAU Primary Assets Henty Gold Mine, Tasmania; Maldon Gold Project, Victoria Main Story Maldon processing has moved to two shifts and Union Hill decline refurbishment is underway Operating Platform March quarter production of 5,534oz gold across Henty and Maldon; closing cash of A$45.6M Maldon Processing Porcupine Flat now processing day and night shift, Monday to Thursday Union Hill Stockpile 566kt @ 0.48g/t for 8,649oz Au; supports processing to 2030 at 10,000t/month Key Exploration Work Union Hill underground drill platform, Quill, Maldon North and Nuggetty South The Core Development Point The processing update is the clearest operational change. Kaiser reported that Porcupine Flat (Figure 1) is now operating on day and night shifts Monday through Thursday. The company stated that this has doubled plant throughput for a limited increase in personnel and costs. In that setting, throughput and processing cost per tonne become central to project management. Kaiser stated that the shift change is expected to reduce processing cost per tonne because capacity has increased without a significant rise in fixed costs or overheads. The Union Hill Stockpile remains an important part of the processing schedule. Kaiser stated that the stockpile supports continued processing until 2030 at 10,000 tonnes per month. Small-scale ore purchases are also ongoing, giving the plant additional feed flexibility while the underground and exploration programs are advanced. Figure 1: Maldon Gold Project (Source: Kaiser Reef Website) Porcupine Flat Processing Plant: The Practical Base of the Maldon Strategy The Porcupine Flat Processing Plant is central to the Maldon update because it gives Kaiser an operating processing asset at the project. The move to two shifts is a practical improvement rather than a conceptual change. The plant is now operating across day and night shifts from Monday to Thursday, with the stated result being doubled throughput. The company has framed this as an important change because the additional throughput has been achieved with limited additional personnel and costs. For a processing plant that is handling a large component of low-grade stockpile feed, this is a key operating point. The plant does not need to wait for a discovery before contributing to the project strategy. It can process available material while the company works on underground access and target generation. The release also notes that small-scale ore purchases are ongoing. This is not the main story, but it adds another practical layer to the processing model. It suggests that Porcupine Flat can operate with a mix of Union Hill stockpile material and external parcels while Kaiser continues to assess the broader Maldon opportunity. Management Commentary "Maldon is a fully permitted operation in the heart of Victoria's Golden Triangle, including the Porcupine Flat Processing Plant, which is pouring gold, and the Union Hill Underground Mine, where we are both reclaiming and trucking low-grade stockpile material and finalising preparations for decline refurbishment." "The change to two shifts at Maldon will significantly reduce our processing cost per tonne, as we have doubled capacity without significantly increasing our fixed costs or overheads. This is a material change, especially given that the bulk of the mill feed is from low-grade stockpiles. We expect Maldon to be near self-funding, including for exploration, moving forward, " — Brad Valiukas, Managing Director, Kaiser Reef Limited (1 May 2026) Union Hill: Refurbishment Re-establishes Underground Access Kaiser announced that the refurbishment of the Union Hill decline has begun (Figure 2). The initial phase includes establishing a new northern access drilling platform about 250 metres down the decline, targeting untested sections of the Eaglehawk and Ladies Reefs. This is a meaningful step for the project because underground access can improve the way the company tests the reef system. The release states that the Union Hill underground sits between and parallel to multiple lines of lode. The planned platform is designed to give Kaiser a position from which it can test areas that have not yet been drilled from that access point. Figure 2: Jumbo in decline - Union Hill decline refurbishment work underway. (Source: Kaiser Reef ASX announcement dated 18 May 2026) The refurbishment work also includes stripping sections of the decline where needed to establish a full-sized profile for life-of-mine haulage. That detail is important because it shows the work is not only about exploration access (Figure 3). It is also about preparing the underground infrastructure to support future operational use, subject to the results of ongoing work. Management Commentary "It's exciting to be back working underground at Maldon, and it's another milestone for Kaiser Reef. The Union Hill underground, with its existing footprint and positioning between and parallel to multiple lines of lode, is a key asset that will let us advance Maldon, both for exploration and production." — Brad Valiukas, Managing Director, Kaiser Reef Limited (18 May 2026) Figure 3: Union Hill North proposed drilling platform targeting untested sections of the Eaglehawk and Ladies Reefs. (Source: Kaiser Reef ASX announcement dated 18 May 2026) Quill: A New Target Generated The Quill target is one of the more interesting exploration components because it came from work associated with the proposed TSF 4 location (Figure 4). Kaiser reported that its recently completed 1,090 metre aircore program produced an anomalous intersection through in-situ material in drillhole TSAC_021. Follow-up one-metre samples upgraded the intersection to 8 metres at 4.16 g/t gold from 10 metres, including 2 metres at 9.90 g/t gold from 11 metres. Kaiser also completed a reconnaissance electrical resistivity tomography survey over the area. The survey highlighted a high-resistivity zone running broadly north-south, coincident with the TSAC_021 intersection. Kaiser interpreted this as a potential quartz reef target, with follow-up RC drilling planned. This remains an early-stage target. The significance is that the company now has a specific geophysical and geochemical target beneath a reported mineralised intersection. The next test is whether follow-up drilling can confirm continuity, geometry and grade beyond the initial aircore result. Figure 4: Quill target and TSAC_021 location. (Source: Kaiser Reef ASX announcement dated 18 May 2026) Maldon North: Soil Survey Results Build the District-Scale Picture Kaiser also reported results from the phase one Maldon North soil sampling program. The survey was completed on a 160 metre by 80 metre grid and covered about 2.7 square kilometres of prospective tenure that had no previous surface sampling information available (Figure 5). The program identified several areas of geochemical anomalism around the northern part of MIN5146. Kaiser highlighted an 850 metre north-northwest gold trend west of the Cumberland Line of mineralisation, as well as anomalism around the Sailors and Mosquito Reefs. Figure 5: Maldon North soil sample locations with gridded gold percentile results and mapped quartz veins. (Source: Kaiser Reef ASX announcement dated 18 May 2026) The company stated that the survey re-highlighted gold anomalism and mineralisation across multiple lodes over the full 4.4 kilometre strike within the tenement package (Figure 6). A phase two infill survey on 40 metre by 40 metre spacing is underway in areas of anomalous gold. From a project assessment perspective, Maldon North is still at the target-generation stage. The value of the work is that it provides a more systematic surface dataset in an area that previously lacked that coverage. The infill program should help determine which anomalies are strong enough to move toward drilling. Figure 6: Gridded soil sample percentile results across the Maldon Gold Project. (Source: Kaiser Reef ASX announcement dated 18 May 2026) Nuggetty South: Permitted Drilling on a Defined Gap Nuggetty South (Figure 7) provides a different kind of exploration target. Kaiser stated that drill planning is finalised, approvals are in place and a drilling contractor has been appointed. Drilling is scheduled to commence in late June. The target is based on a newly interpreted shallow plunge south of the Nuggetty, or Tarrengower, Shaft. Kaiser noted historical drilling results including 3.4 metres at 34.0 g/t gold, including 0.35 metres at 187.5 g/t gold in DDH_57W1, and 4.3 metres at 11.2 g/t gold in DDH005. The planned drilling will test an identified gap of approximately 170 metres of strike between known mineralisation along the interpreted plunge. Kaiser also noted that the Nuggetty Reef has estimated historical production of 301,000 ounces at approximately 187 g/t gold. The immediate question for investors is whether the untested gap can return results that support the interpreted plunge model. Figure 7: Nuggetty long section showing the 170m untested area between successful drilling. (Source: Kaiser Reef ASX announcement dated 18 May 2026) Near-Term Milestones to Watch The following near-term milestones have been disclosed in the two source releases: Table 2: Near Milestones Activity Timing Status/Source Porcupine Flat 2-shift processing (day and night, Mon–Thu) Commenced Confirmed in 1 May 2026 release. Underpinned by Union Hill Stockpile until 2030 at ~10,000 t/month. Union Hill decline refurbishment Underway Confirmed in 18 May 2026 release. Includes establishment of a new northern drill platform ~250m down decline and stripping for full-sized life-of-mine haulage profile. Underground drilling from new Union Hill North platform (Eaglehawk and Ladies Reefs) Next quarter Scheduled in line with the published Strategic Plan for the Maldon Gold Project (18 May 2026 release). Nuggetty South diamond drilling (170m untested strike) Late June 2026 Permitting complete; diamond drill contractor appointed (18 May 2026 release). RC follow-up drilling at Quill Target Planned To test interpreted quartz reef along N–S resistivity high coincident with TSAC_021 intersection (18 May 2026 release). Maldon North soil sampling — Phase 2 infill (40m x 40m) Underway Following Phase 1 results across 2.7 km² of MIN5146 (18 May 2026 release). Concluding Samso Comments The kaiser story is one that I have like for a long time. The gold sector has had the limelight for the last couple of years and it is not cooling off in terms of the "hype". I have described that the deal that Kaiser Reeek Limited got to acquire the Henty Gold Mine as a deal of the century, but as Brad Valiukas has discussed with me in his last Coffee with Samso (see below), the Maldon project is a value creating asset as well. In the wiser period of my life through multiple periods of learnings, I am now seeing with clear glasess that assets in the mining sector often appear to be boring and unassuming. In my simpleton thinking, the first thought of Maldon was not one of bells and whistles. Since talking to Brad and my recent understanding of the Victorian gold fields, I am now thinking clearer and seeing the upside, no matter how awkward is the project, namely being underneath a populated town. Our recent coverage of Black Horse Mining Limited is point in case. Readers should take some time and read throught the Samso insight we wrote below. The key aspect of the Maldon story is that you have someone that is a practitioner of making mines work. Patience is obviously a key component for Maldon, hence, you need a company that is self funding, which Kaiser Reef Limited is, because patience is a direct correlation to the size of your wallet. Developing Maldon is going tot ake time and a lot of money, so this is why my thoughts are very comfortable with someone liek Kaiser Reef Limited to create the opportunity and the ability to see through the potential. As always, time will tell and Samso is well aware that anything can happen with a mining project. Having being in the industry for over three decades, I have seen many scenarios, predicted and not. About Kaiser Reef Limited Kaiser Reef Limited (ASX: KAU) is an Australian gold producer and exploration company with operating assets in Tasmania and Victoria. The company presents itself as a multi-asset gold producer with a growing production base, supported by annual production of more than 30,000 ounces from the Henty Gold Mine and a high-grade Maldon Gold Project with a fully operational 200ktpa processing plant. In Tasmania, Kaiser owns and operates the Henty Gold Mine, an established underground gold operation with a processing facility and associated exploration tenure. Henty has become a key production asset for the company and provides Kaiser with operating exposure to the Australian gold sector. In Victoria, Kaiser is advancing the Maldon Gold Project, located in the historic Victorian goldfields. Maldon includes the Porcupine Flat Processing Plant and the Union Hill underground mine area. The project has a long mining history and is reported by Kaiser to have produced approximately 1.75 million ounces of gold at 28g/t from quartz reefs. Kaiser’s stated focus is on production growth, reserve expansion and building value from its Australian gold asset base. The company’s project portfolio gives it exposure to both current gold production and exploration upside across two established mining jurisdictions. Its published core values are integrity, respect, responsibility and performance. Previous Samso Coverage Samso has followed the Kaiser Reef Limited story across multiple ASX releases. The following represents our prior published coverage of the company: April 01, 2026 February 25, 2026 | December 17, 2025 November 21, 2025 November 07, 2025 October 14, 2025 May 31, 2025 May 22, 2025 April 27, 2025 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. 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 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

An impressive high-grade 4.20 metre intersection at 42.43g/t Au — including 1.37 metres at 126.93g/t Au — has reinforced the case for Burbanks. A second drill rig is now pushing the Inferred Resource down to 450 metres below surface, and a paired tenement swap with Accelerate Resources delivers fresh ground proximal to the Black Swan Processing Hub. Samso News | ASX: MRT | Gold | Black Swan Processing Hub | Burbanks Gold Project | Maritana Minerals Limited (ASX: MRT), formerly Horizon Minerals Ltd, has progressed three significant work streams across its Western Australian gold portfolio in May 2026. The activity sits within the company's broader strategy to refurbish the 2.2 Mtpa Black Swan Processing Hub and bring it back online as a standalone gold producer, with first gold targeted for mid-2027. Earlier this month, the company delivered additional high-grade assay results from its completed Phase 1 diamond drill program at the 100%-owned Burbanks Gold Project. Bolstered by these results, Maritana kicked off phase 2 drilling at Burbanks mid-May , with a second rig mobilised to site. On 19th May, the company announced a dual tenement transaction with Accelerate Resources Limited (ASX: AX8), acquiring the Kanowna East tenure package and divesting its non-core Balagundi tenure package. Table 1: Summary of May 2026 activities Samso Summary Details Company Maritana Minerals Limited ASX Code MRT Primary Assets Black Swan Processing Hub (2.2Mtpa, in C&M); 1.9Moz Group Mineral Resource across multiple WA Goldfields projects Main Story Phase 1 drilling delivered ultra-high-grade results at Burbanks; Phase 2 drilling now underway with second rig mobilised; Kanowna East acquired and Balagundi divested in dual transaction with Accelerate Resources Operating Platform Fully funded through A$175M placement plus A$4.65M SPP; A$114.1M cash and no debt (as at 6 March 2026) Black Swan Studies Pre-production capital A$160.5M; capital intensity ~A$1,500/oz; project pre-tax NPV8 ~A$631M; IRR 83% at A$5,500/oz gold price Burbanks Phase 1 53 holes for 15,798m completed; standout intercept 4.20m at 42.43g/t Au including 1.37m at 126.93g/t Au from 290.84m in 26HBBD044 Burbanks Phase 2 Designed to extend Inferred Mineral Resource from 250m to up to 450m below surface; revised total program 25,000m Kanowna East Acquired from Accelerate Resources for ~A$200,000 in MRT shares (net); proximal to Gordon's Dam and Black Swan Balagundi Divestment Divested to Accelerate; Maritana retains 1% NSR royalty and a 5-year right of first refusal over future toll treatment at Black Swan Burbanks Phase 1 Drilling: High-Grade Results Define the Story The Burbanks Gold Project is located on a granted Mining Lease (M15/161) nine kilometres south of Coolgardie in the Western Australian Goldfields. The mineralisation is hosted within the Burbanks Shear Zone, a five-kilometre strike package of basalts and intercalated gabbro, dolerite and sediments (Figure 1). Gold occurs in ptygmatically folded and boudinaged laminated quartz veins with pyrite, pyrrhotite, scheelite and an alteration assemblage of plagioclase, calcite, biotite and garnet. Historical underground mining at Burbanks produced 324,000 ounces at a head grade of 22.7g/t gold between 1885 and 1961. In geology, a ptygmatically folded rock layer or vein features highly irregular, tight, and complexly contorted wrinkles that resemble a chaotic, looping snake or a squeezed tube of toothpaste. (Click Here for illustration) A boudinaged rock layer or vein has been stretched and pulled apart into a series of sausage-shaped fragments (Click Here For Illustration) Figure 1: Burbanks Gold Project showing the location of the Phase 1 completed holes and the current Phase 2 drill program (Source: MRT ASX Announcement 14 May, 2026). During the phase 1 program, the company reported a series of high-grade results that have materially improved the geological understanding of the deposit. Hole 26HBBD044 is the standout. It returned a 4.20 metre intersection at 42.43g/t gold from 289.63 metres, which includes 1.37 metres at 126.93g/t gold from 290.84 metres. The same hole returned a 0.30 metre intercept at 54.02g/t gold from 207.41 metres and a 1.84 metre intercept at 5.98g/t gold from 223.00 metres, including 1.20 metres at 8.69g/t gold (Figure 2). Figure 2: Gold mineralisation located within a quartz vein hole 26HBBD044. The interval grades 4.20m @ 42.43g/t Au from 289.63m including 1.37m @ 126.93 g/t Au from 290.84m (Source: MRT ASX Announcement 04 May, 2026). Maritana began a two-phase extensional and infill drilling program at Burbanks in late June 2025. Phase 1 was designed to improve geological confidence at the Burbanks North open pit, which is included in the current LOM plan, and at the Burbanks underground, which is not. Phase 1 comprised 53 diamond drill holes for a total of 15,798 metres. Assay results have been received for all but the final four holes, with two further results pending at the time of the 4 May 2026 release. The company also highlighted that visible gold was logged in quartz veining within the shear zone in 26HBBD044, with a photograph of the mineralisation included in the announcement. The presence of visible gold in a hand-sized core sample is a strong geological indicator but introduces the well-known nugget effect into grade interpretation. From a project assessment perspective, the result is significant because the standout intercept is associated with the broader Burbanks Shear Zone rather than a single anomalous nugget. Other notable Phase 1 results include a 6.49 metre intersection at 2.66g/t gold from 354.51 metres in hole 26HBBD039 (including 1.27 metres at 6.54g/t gold), a 1.81 metre intersection at 13.82g/t gold from 113.88 metres in 26HBBD040, a 2.02 metre intersection at 5.99g/t gold from 244.98 metres in 26HBBD042, and a 0.63 metre intersection at 24.32g/t gold from 460.37 metres in 26HBBD038 including 0.30 metres at 40.95g/t gold. Table 2: Selected significant intercepts from Phase 1 drilling at Burbanks Hole ID From (m) Interval (m) Au (g/t) 26HBBD044 289.63 4.20 42.43 incl. 290.84 1.37 126.93 26HBBD044 207.41 0.30 54.02 26HBBD044 223.00 1.84 5.98 incl. 223.64 1.20 8.69 26HBBD038 460.37 0.63 24.32 incl. 460.37 0.30 40.95 26HBBD039 354.51 6.49 2.66 incl. 355.97 1.27 6.54 26HBBD040 113.88 1.81 13.82 26HBBD042 244.98 2.02 5.99 26HBBD049 229.62 0.52 10.83 Intercepts are downhole intervals and not true widths. Reporting uses a 1.0g/t Au cut-off with a maximum of 1m internal dilution. No top-cut has been applied. Full results are reported in the 4 May 2026 ASX announcement. Beyond the headline grades, the spatial context of the Phase 1 pierce points is the more material outcome. The schematic long section (Figure 2A) published in the 4 May 2026 release shows that the recently reported intercepts sit both within and outside the current Inferred Mineral Resource envelope. The deep intercept in 26HBBD038 (0.63 metres at 24.32g/t Au from 460.37 metres) is well below the existing resource shell, supporting the case that mineralisation continues at depth. This is the geological basis for the Phase 2 program now underway. Figure 2A: SW NE schematic long section on local grid showing the location of drilling in the 2025-26 drill program at Burbanks North, the current MRE categories, historical pierce points and recent drill traces with pierce points >1.0g/t. Previously reported intersections from this program are highlighted in white boxes, current intersections are in yellow. (source Maritana Minerals Limited - ASX Release 4th May 2026) Management Commentary — Phase 1 Results “Following strong results previously reported, the latest assays from Burbanks continues to demonstrate consistent high-grade mineralisation and improved geological confidence. The ongoing success of the drilling program continues to de-risk the project, as we progress Burbanks towards becoming a reliable source of feed for Maritana's 100% owned Black Swan Processing Hub.” — Grant Haywood, Managing Director and CEO, Maritana Minerals Limited (4 May 2026) Burbanks Phase 2: Drilling the Resource at Depth Maritana kicked off Phase 2 drilling in the days following the 4 May 2026 Phase 1 results release. A second drill rig has been mobilised to site to accelerate the program (Figure 3). The two-phase program has been revised to a total of 25,000 metres, comprising both reverse circulation (RC) and diamond drilling The Phase 2 program is designed to test and extend the Inferred Resource of the high-grade Burbanks Main and Birthday Gift Lodes from the current depth of 250 metres below surface to up to 450 metres below surface. The company noted that access to neighbouring tenements held by Auric Mining was required to support optimal drill positioning, given the steeply dipping geometry of the orebody and the limited width of Maritana's own tenure. This access has been secured, allowing drill collars to be stepped back to test the mineralisation at depth. Figure 3: - Phase 2 drilling commenced on Burbanks Main and Birthday Gift Lodes. Second drill rig mobilised MRE Underway All assay results from Burbanks North drilling have been received. The company has stated that an updated Mineral Resource Estimate is now underway and scheduled for completion in the June 2026 quarter. Ore Reserve studies based on the improved confidence in resource classification from Inferred to Indicated will then follow. From a project assessment perspective, the importance of Phase 2 is that Burbanks underground was not included in the Black Swan Processing Hub Scoping Study. The release describes this as significant upside potential to the current LOM plan, which is targeted to produce 100,000 ounces of gold per annum over an initial period of five years. The Phase 2 drilling is the work program designed to test whether the depth extension can carry the high grades reported from Phase 1. Management Commentary — Phase 2 Commencement “Maritana's Phase 1 drilling at the Burbanks Gold Project has reaffirmed the high-grade nature of the mineralised system and increased our geological confidence in the deposit. "Our Phase 2 program is the next step to accelerating our exploration and development strategy for the Project, improving our current mine plan to feed the Black Swan Processing Hub.” — Grant Haywood, Managing Director and CEO, Maritana Minerals Limited (14 May 2026) Burbanks South: A Second Target Area Opens Up Alongside the Phase 2 deep drilling, Maritana has initiated exploration activity at Burbanks South, an area targeting high-grade shallow gold mineralisation. The 14 May 2026 release noted that preliminary observations from recent drilling indicate the presence of shearing and quartz veining consistent with the structural controls observed at Burbanks North. The company reported that the area is supported by numerous historic workings that highlight its prospectivity, but that limited shallow drilling completed to date means the extent and continuity of mineralisation remains largely untested. Follow-up RC drilling is being planned to test mineralisation along strike, with geological modelling underway to refine targets. Burbanks South remains at the target-generation stage. The next test is whether follow-up RC drilling can confirm a structural and grade footprint that justifies elevating it to a defined target along the broader Burbanks corridor. Kanowna East: A Strategic Tenement Swap with Accelerate Resources On 19th May, Maritana Resources executed a dual tenement transaction with Accelerate Resources Limited (ASX: AX8). Under the agreements, Maritana will acquire Accelerate's Kanowna East tenure package and will divest its own Balagundi tenure package to Accelerate. The acquired Kanowna East package comprises twelve tenements, including five granted tenements (E27/596, E27/700, E27/704, P27/2428 and E27/752) in which Accelerate holds a 70% interest with Metal Hawk holding the remaining 30%, and seven tenements in application (E27/743, E27/750, E27/754, P27/2642, P27/2643, P27/2644 and P27/2645) in which Accelerate holds a 100% rights-in-application interest. The acquired ground is described by the company as proximal to its existing Kalgoorlie operations, including the Gordon's Dam Project and the Black Swan Processing Hub (Figure 4). Figure 4: Greater tenement area around Black Swan Operations, showing the acquired Kanowna East tenements (green), the existing Gordon's Dam Project, the Wilsons Prospect and the Black Swan Processing Hub. (Source: Maritana MRT ASX announcement 19 May, 2026) Net consideration under the transaction comprises A$200,000 payable in Maritana shares, calculated as the greater of 133,333 shares or shares worth A$200,000 based on Maritana's five-day VWAP before execution. The cash consideration payable under each sale agreement is A$60,000, with the two amounts effectively set off against each other. Completion of the transaction is expected in the June 2026 quarter, and the acquired tenements will be incorporated into Maritana's FY2027 exploration strategy. A 1% net smelter return royalty applies to all minerals extracted from each side of the transaction, granted in favour of the divesting party. This is a standard royalty structure for tenement transactions of this type and ensures both parties retain a financial interest in any future production from the ground they have transferred. Balagundi: Divestment Preserves Optionality on Future Toll Treatment The Balagundi tenure package divested to Accelerate comprises seventeen tenements held by Kalgoorlie Ore Treatment Company Pty Ltd, all of which are granted. The release described Balagundi as non-core to Maritana's current Kalgoorlie operating district. The divestment removes ongoing exploration expenditure commitments from a part of the portfolio that does not fit the company's current operational focus. Importantly, Maritana has retained a structural right over future toll treatment of Balagundi ore at the Black Swan Processing Hub. Under the Balagundi sale agreement, Accelerate has been granted a five-year right of first refusal in respect of future toll treatment opportunities at Black Swan, subject to the terms of the agreement. Maritana has also granted Accelerate the benefit of the existing Land Use Agreement with the Applicants for the Marlinyu Ghoorlie Native Title Claim. The practical effect is that if Accelerate progresses Balagundi toward development, Maritana has structural exposure to that ore as a potential future feed source for Black Swan. The company has framed this as preserving strategic optionality without continuing to carry the asset on its balance sheet. Management Commentary — Kanowna East and Balagundi “This transaction reflects Maritana's disciplined approach to portfolio management. By acquiring the Kanowna East Project and divesting the Balagundi tenure, we are consolidating our landholdings around the Black Swan Processing Hub, while rationalising assets that are better suited to a party with the scale and intent to advance them. "Importantly, the right of first refusal we have retained over future toll treatment at Black Swan preserves exposure to a potential future ore source and revenue stream open for Maritana shareholders, should Balagundi progress to development. We consider this a sensible, value-accretive outcome for both companies.” — Grant Haywood, Managing Director and CEO, Maritana Minerals Limited (19 May 2026) Black Swan Processing Hub: The Operating Anchor The Black Swan Processing Hub is the central asset around which Maritana's standalone gold producer strategy is built. The plant is located approximately 50 kilometres north-east of Kalgoorlie in Western Australia and has a nameplate capacity of 2.2Mtpa (Figure 5). It is currently in care and maintenance, having previously operated as a nickel sulphide flotation facility. Figure 5: Maritana's project locations, regional geology and surrounding infrastructure, including the Accelerate Resources tenement acquisitions. (Source: Maritana Minerals ASX announcement dated 19 May 2026) The Black Swan Scoping Study released by the company on 17 February 2026 supports a conversion of the existing comminution circuit to gold processing with the addition of a carbon-in-leach (CIL) circuit. The estimated replacement value of the existing infrastructure is more than A$200 million, against a stated capital cost of A$101 million for the plant refurbishment and approximately A$160.5 million in total pre-production capital. Capital intensity is approximately A$1,500 per ounce. Headline study outcomes include average production of 102,000 ounces per annum, life-of-mine production of 546,000 ounces over five years, C1 cash cost of A$2,852 per ounce, all-in sustaining cost of A$3,353 per ounce, and a project pre-tax NPV8 of approximately A$631 million at an A$5,500 per ounce base case gold price. The study reported an IRR of 83% and a payback period of 18 months from plant commissioning. Maritana is fully funded for the refurbishment and the commencement of mining and processing through an A$175 million placement completed in February 2026, a A$4.65 million Share Purchase Plan completed in March 2026, and existing cash and listed investments. The company reported A$114.1 million in cash and cash equivalents as at 6 March 2026, with no debt. Near-Term Milestones to Watch The following near-term milestones have been disclosed across the three ASX announcements and the April 2026 investor presentation: Table 3: Near-term milestones Activity Timing Status / Source Burbanks Phase 1 remaining assays (final 4 holes including 26HBBD052 and 26HBBD053) Underway Pending at time of release (4 May 2026 release) Burbanks North Mineral Resource Estimate update June 2026 quarter All Phase 1 assays received; MRE update to enable Inferred to Indicated reclassification (14 May 2026 release) Burbanks Phase 2 drilling — Main Lode and Birthday Gift Lodes from 250m to 450m below surface Underway Commenced; second rig mobilised (14 May 2026 release) Burbanks Ore Reserve studies Following MRE update To follow Inferred to Indicated reclassification (14 May 2026 release) Burbanks South RC drilling program Planned Geological modelling underway; follow-up RC drilling planned (14 May 2026 release) Kanowna East tenement acquisition completion June 2026 quarter Dual transaction with Accelerate Resources (19 May 2026 release) Kanowna East exploration integration FY2027 Acquired tenements to be incorporated into Maritana's FY2027 exploration strategy (19 May 2026 release) Black Swan FEED studies and Final Investment Decision (FID) Q2 CY2026 Per published Strategic Plan (April 2026 Investor Presentation) Black Swan plant construction Q3 CY2026 – Q2 CY2027 Per published Strategic Plan (April 2026 Investor Presentation) Black Swan first gold production Mid-2027 Per published Strategic Plan and Scoping Study (April 2026 Investor Presentation) Figure 6: Key Milestone and Timing for Black Swan Processing Hub (Source: Maritana Minerals Investor Presentation, April 2026) About Maritana Minerals Limited Maritana Minerals Limited (ASX: MRT) is a Western Australian gold developer positioning to become a standalone gold producer in the Kalgoorlie–Coolgardie region. The company holds a land package of approximately 1,167 square kilometres across the WA Goldfields and a Group Mineral Resource of 1.9 million ounces of gold (34.3Mt at 1.7g/t Au) across multiple deposits, including the cornerstone Burbanks and Boorara projects. The centrepiece of the company's strategy is the 2.2Mtpa Black Swan Processing Hub, located approximately 50 kilometres north-east of Kalgoorlie. The plant is currently in care and maintenance and is being refurbished and converted to gold processing, with the first gold targeted for mid-2027. Studies completed in February 2026 support the development of a gold operation producing more than 100,000 ounces per annum from the refurbished facility through a hub-and-spoke operating model. Maritana also holds the Nimbus Silver-Zinc deposit, located approximately 44 kilometres from Black Swan, which contains a Mineral Resource of 20.2 million ounces of silver, 104,000 tonnes of zinc and 77,000 ounces of gold and provides additional optionality across the portfolio. The company reported a market capitalisation of approximately A$332.8 million as at 14 April 2026, cash and cash equivalents of A$114.1 million as at 6 March 2026, and no debt. Maritana is fully funded for the refurbishment of Black Swan and the commencement of mining and gold production. Previous Samso News Coverage Samso has followed Maritana Minerals (formerly Horizon Minerals) across multiple ASX releases. The following represents our prior published coverage of the company: May 5, 2026 - October 8, 2025 - September 2, 2025 - August 21, 2025 - August 1, 2025 - July 27, 2025 - June 29, 2025 - Samso Concluding Comments The Maritana Minerals share price journey(Figure 7) is taking a decline over the last few months and this is not necessarily a reflection in the performance of the company but rather a reflection of the devaluing of the gold price (Figure 8), I think. If you look at the leaders in the sector such as Northern Star Resources Limited (ASX: NST), they are not fairing well too, coming off a high of almost AUD $32 to a recent price of AUD $18.83. Westgold Resources Limited (ASX: WGX) is coming of a high of just over AUD $8.00 to a current price of AUD $4.96. Figure 7: The Maritana Minerals Limited share price journey as of 22 May 2026. (Source: Commsec) There is definitely a sense of uneasiness in the sector and companies such as Maritana Minerals who are in the development phase are going to be vulnerable. Does this mean that there are going to be downgrades to come, I think the signs are definitely there but we all know that the market is always adjusting and the key for shareholders and potential investors is timing. Personally, with all the years of looking at the market in this sector, producers and aspiring producers are nearly always the first to reflect upturns and downturns. The gold price "run" is only really from September 2026 (Figure 8) and the monetary adjustments has only started. Are we going to see gold at thighs of over USD $5,000 again, I think this is a real possibility. When is that going to happen ? That is the million dollar question. We are starting to see the lithium price coming back. Lithium companies are restarting projects and the optimism in the air is getting moving. Nickel price which has been in the lows are starting to get headlines again. As we all know already, inflationary concerns are still the main topic of conversation and monetary policy controls are still very well alive. Figure 8: The gold price chart as of 25th May 2026. (Source: Trading Economics) In regards to companies like Maritana who have recently raised funds to proceed with development, this could well be a stocktake sale that serious investors should take seriously. Remember that investors tend to sell with a falling share price and buy on a rising tide. Maritana may not be a Northern Star at the moment but it definitely is a company that has gold to sell. Caution is the key word at the moment as Maritana is trading at a market capitalisation of just over AUD $260M as of 25th May 2026. I am sure that a business that has gold to sell when a resurgence of the gold price reappears, will be wroth more than its current level. The key is understanding of where that curve in Figure 8 is going to go in the next six months. Are we going to see more discounting and if so, is a series of accumulating the stock at a discounting price a good way or positioning yourself in a potential future gold producer. 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 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.| 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 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 209 | UWA Club, Crawley, Western Australia In this latest episode of Coffee with Samso, I reconnect with exploration legend Jon Hronsky to unpack one of the most significant emerging geological stories in Australia: the West Arunta carbonatite province. This conversation builds on John's recent presentation at the AIG’s event and dives deep into how Encounter Resources Limited (ASX: ENR) has methodically uncovered what may become a globally significant carbonatite-hosted niobium and rare earth element (REE) district in remote Western Australia. From big structures and conceptual targeting to nuanced mineral system thinking, this discussion is a masterclass in modern greenfields exploration. It reminds us that true discovery lies in resisting the urge to pigeonhole — and embracing complexity. Key Highlights A Career in Discovery Jon Hronsky is entering his fifth decade in mineral exploration, with a long history of working across major greenfields campaigns. He is a director at Encounter Resources and previously with Western Mining Corporation, where he was mentored by Roy Woodall. Discovery of West Arunta - Carbonatite Province. Encounter pegged a strong magnetic anomaly in remote WA, now known as the Hoschke Prospect, with initial IOCG targeting. Drilling in 2019 revealed complex magnetite alteration and ultimately a carbonatite with 16m @ 1% Nb₂O₅. What began as an IOCG hunt became a game-changing niobium-carbonatite discovery, drawing analogies with Palabora and Olympic Dam. Mineral System Thinking Jon challenges rigid classifications like IOCG vs carbonatite, advocating for a spectrum-based approach to targeting. Shared features across IOCG and carbonatites: deep mantle-tapping structures, lamprophyres, and metasomatic fluids. Gravity vs Magnetics While gravity anomalies aided other discoveries (e.g., Luni), the Westrunter carbonatites lack strong gravity signatures due to weathering offsets. Emphasis is placed on magnetic data and structural interpretation as primary exploration tools in the region. Targeting with Data Exploration guided by WA’s exceptional pre-competitive datasets (GSWA, GA). Shallow cover (<50m in many places) enables low-cost aircore drilling, accelerating discovery. Encounter also incorporates EM, passive seismic, and gravity for 3D understanding of mineralisation. Metallurgy and Development Encounter believes its discoveries could support a standalone niobium operation. Metallurgical testwork is ongoing — John notes that niobium is far less complicated to process than rare earths. Early-stage studies suggest the project is economically viable “on the back of the envelope.” Conceptual Learnings Jon highlights the concept of IOCGs without the iron — disseminated copper without the typical magnetic/gravity signature. Explains the significance of multi-scale thinking, where the key is understanding regional and global context for every local anomaly. Building a Province Carbonatite event dated to ~800 Ma, with potential reactivation of 1590 Ma Olympic Dam-aged structures. Big structures show repeated pulsing through time, allowing multiple mineralisation events. The Greenfields Challenge Funding remains a structural issue — greenfields needs long-term, risk-tolerant capital. Small caps struggle to sustain non-revenue-generating exploration without external support or JV backing. Advice to Young Geologists John’s #1 advice: develop the cognitive skill of scale integration — link deposit, district, regional, and global frameworks. Always ask: “What is the context?” Expand the search space. Use regional data to make better local decisions. Next Steps Continue metallurgical studies and mineralogical definition across the West Arunta belt. Target additional carbonatite-hosted systems along the identified structural corridor. Drill conceptual copper targets associated with 1590 Ma geochronology and surface anomalies. Advance regional exploration using passive seismic and detailed gravity. Chapters 00:00 Start. 00:10 Introduction. 01:03 Introducing Jon Hronsky. 01:12 Jon Introduction. 02:30 Mineral System Approach and Discovering the West Arunta Carbonatite Province. 03:19 Jon's view of Mineral Systems - The similarity of geological relationships. 04:14 Reason why Encounter gets involved in the West Arunta region. 05:29 The IOCG Connection - The Beginning. 06:34 The Roy Woodall Concept of tenement consolidation. 07:02 The remoteness of the West Arunta Project. 07:40 The Discovery hole. 08:49 The Geophysical Conundrum - Carbonatite Signatures for Encounter Resources. 10:19 The Hybrid Conversation of Mineral Mineralisation - IOCG without the Iron. 12:46 Jon's Concept of Search Space. 14:45 The fundamentals of the West Arunta Province for Large Scale Mineralisation. 18:17 Funding the Reality of taking Discovery to Mining. 19:58 Any learnings from the discovery techniques by WA1 Resources? 21:44 The Competitive Advantage of Free Government Datasets. 23:21 Current project acquisition from free data. 24:08 Chemistry of Kimberlites and Lamprophyres could be a clue to future discoveries? 26:01 Are there any thoughts in the past that could help modern mineral exploration? 27:49 Is there a place left for Field Mapping? 28:39 Are the learnings of modern exploration being taught to younger geologists? 29:54 AI Targeting. 30:56 Risk reward ratio for Greenfield Exploration 32:29 The difference in Greenfield and Near-Mine Exploration. 33:43 The challenges to provide capital and skillset to do proper mineral exploration. 34:45 What advice would you give to the incoming young geologists today? 36:43 Conclusion. Samso Concluding Comments In the world of mineral exploration, for me, few conversations are more engaging in terms of explaining the complexities of mineral exploration than that with Jon Hronsky. This episode is about the conversation of Western Australia standing at the edge of a new global province — and it’s not lithium, gold, or copper. It’s Carbonatites, niobium, and rare earths. What is the significance of Carbonatites? Generally, carbonatites are rare, and globally there are only a few hundred known occurrences, typically small bodies (plugs, dikes, breccia pipes) associated with alkaline complexes. Despite their rarity, they are incredibly economically significant as many of the world’s richest REE and niobium deposits, plus phosphate (P), and sometimes Fe–Cu, come from carbonatites (e.g., Bayan Obo, Mountain Pass, Araxá/Catalão, Palabora). This story is what I call the power of staying open-minded in geology. You go in searching for an IOCG and come out with a Carbonatite. You chase magnetics but find your answer in subtle alteration. You expect Olympic Dam–style signatures but discover something without the iron. I have had so many conversations on what real mineral exploration looks like — messy, adaptive, and powered by deep systems thinking. The significance of West Arunta is not just what Encounter Resources has drilled — it’s the framework they’re exposing and building. Encounter is opening the door to a scale of mineral endowment that few in the market are fully appreciating yet. As Jon notes, greenfields isn’t about hope — it’s about managing a portfolio with creative concepts, disciplined testing, and repeatable targeting. This province — if it matures — could become the next big thing not just in WA, but globally. 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.

Big Jim Fluorspar Lode Rediscovered at OD6 Metals Quinn Project, Confirming a Third High-Grade System in Nevada Samso News | ASX: OD6 | Critical Minerals | Fluorspar — Nevada, USA This is another reason why Samso has been a keen follower of the OD6 story. The pivoting towards a US-based fluorspar portfolio was a good move, especially at a time when the reality of the "critical minerals" narrative is getting rewarded, especially in the United States. The United States currently imports 100% of the fluorspar it consumes, with the majority sourced from China. Samso identified OD6 Metals because the Quinn Fluorspar Project sits in Nevada, one of the world's premier mining jurisdictions, and hosts historical grades that are exceptionally high by any fluorspar standard — including 98.6% CaF₂ at the now-rediscovered Big Jim lode. The project entered the company's portfolio via an option agreement announced in March 2026, and the pace of field work since acquisition has been prompt, as within weeks, the team had relocated a historically documented lode that had not been formally visited in decades. Whether this is it s a fortunate, orchestrated, lucky scenario is irrelevant. Fortune favours the creative is my thought. The Big Jim rediscovery adds a third extensive fluorspar system to the Quinn Project alongside Mammoth and Horseshoe, expanding the district-scale footprint. The company is now systematically de-risking through sampling, mapping, and drill target definition. For investors tracking the critical minerals space, the intersection of ultra-high grade, a strategic domestic supply gap, and proximity to the US Strategic Minerals Reserve at Hawthorne is a combination that warrants close attention. Big Jim Fluorspar Lode Located at Quinn Project: A Third Extensive High-Grade System Confirmed in Nevada as OD6 Metals Defines Its Next Drill Target Samso News ASX: OD6 | Source: OD6 Metals Limited ASX Release, 12 May 2026 Introduction OD6 Metals Limited (ASX: OD6) has announced the rediscovery of the Big Jim Fluorspar Lode at its Quinn Fluorspar Project in Nevada, United States. The lode was historically referenced in United States Geological Survey reports and first mined by Frank and Joe "Big Jim" Perkins from 1934. The lode was discovered through targeted field reconnaissance guided by historical descriptions documented as far back as the 1940s. Its rediscovery in 2026 confirms a third extensive fluorspar system on the Quinn Project tenement, sitting approximately 1km north-northeast of the Horseshoe deposit and complementing the Mammoth and Horseshoe discoveries already identified by the company's exploration team. Historical reports documented by Goulet and Jones in 1947 recorded fluorspar content of 94.6%, 96%, and 98.6% CaF₂ across the main vein. Visual estimates (Figure 1) made by the company's field team during the 2026 rediscovery are consistent with that historical record, estimating the massive fluorspar vein at 85–95% CaF₂ and the footwall breccia at 40–60% CaF₂. Figure 1: Big Jim rediscovered in 2026. Location 616125mE, 4221580mN (Datum NAD83, Zone 11) To place those figures in context, today's economic fluorspar projects generally operate at grades above 20% CaF₂, and some companies indicate that mineralisation at grades above 8% CaF₂ can be considered economic. The Big Jim main vein, which is clearly exposed at surface with a width of approximately 2 metres, sits an order of magnitude above the general threshold for economic viability. OD6 Metals Limited Big Jim Main Vein - Highlights The United States currently imports 100% of the fluorspar it consumes domestically, with approximately 68% of global supply sourced from China. Fluorspar is listed as a critical mineral by the United States Geological Survey, with applications spanning hydrofluoric acid production, AI semiconductor chip etching, advanced battery technologies, nuclear fuel processing, and aerospace and defence applications. The Quinn Fluorspar Project sits approximately 300km by road from the US Strategic Minerals Reserve at Hawthorne, Nevada, a geographic context that the company has consistently flagged as part of the strategic case for domestic fluorspar development (Figure 2). Figure 2: Quinn Fluorspar Location in Nevada. Highlights Key Historical Assay Results — Big Jim Fluorspar Lode (Goulet & Jones, 1947) Big Jim is situated about 1 km NNE of the Horseshoe Fluorspar Deposit. It was discovered and intermittently mined by Frank and Joe "Big Jim" Perkins starting in 1934. Table 1: Key Historical Assay Results — Big Jim Fluorspar Lode (Goulet & Jones, 1947) Source: OD6 Metals ASX Release, 12 May 2026. Historical results from Goulet & Jones, 1947, compiled by Competent Person Dr Darren Holden (Fellow, AusIMM). Visual estimates are not a substitute for laboratory results and should not be relied upon. Assay results are historic in nature and whilst consistent with surface observations should not be relied upon pending new laboratory confirmation. A 1947 report by Goulet & Jones described the Big Jim lode as a shallow dipping, high-grade lode over 6 feet (2m) wide. The workings reported grades of 94.6%, 96%, and 98.6% from the vein (Figure 3). See Table 1 below for some key assay results. Figure 3: Schematic Geological Cross-section of Big Jim geology. Widths are schematic for illustration purposes with the massive fluorspar estimated at 2m, and the footwall breccia at least 2m (lower contact not observed). Management Commentary What the Company's Leadership Said About the Big Jim Rediscovery Brett Hazelden, Managing Director of OD6 Metals, attributed the rediscovery to targeted geological detective work by the company's Nevada-based team, drawing on historical descriptions in documents dating back to the 1940s to narrow the search area. Brett Hazelden characterised Big Jim as the company's highest-grade target to date at the Quinn Project and confirmed it represents a third extensive fluorspar system alongside Horseshoe and Mammoth, each of which is now a target for the drill-out program. He described the visual estimates of size and grade as consistent with the historical reports, lending confidence to the company's assessment of the lode's potential. Hazelden framed the discovery specifically within the context of OD6's strategic objective: to develop a US-based, high-grade fluorspar asset that can contribute to domestic supply at a time when US demand for the mineral is structurally unsupported by any domestic production. "Big Jim perhaps is our highest-grade target to date. This discovery validates our ambition to be a US-based high-grade fluorspar developer coinciding with increasing strategic demand for US domestic supply." — Brett Hazelden, Managing Director, OD6 Metals Limited The geological commentary in the release is notable for its specificity about what remains open. The footwall breccia base contact was not observed during the field visit, which means its true width is not yet confirmed. This may mean that the true width may be thicker than the approximately 2 metres currently visible. The system is described as open to the north and south beyond the 220 metres of historic workings that have been mapped (Figure 4). A third lode, approximately 20 metres beneath Big Jim, reported by Goulet and Jones in 1947, has not yet been located. Each of these represents an aspect of the system that remains to be tested through further field work and, ultimately, drilling. Figure 4: Schematic geological map of the Big Jim area based on recent field visit. Not all historic workings were located at surface, and their position is estimated based on geographically referencing Figure 3. (source: OD6 Metals Limited) Near-Term Milestones to Watch What Investors Should Monitor Following the Big Jim Rediscovery Announcement Near-Term Milestones to Watch Samso Concluding Comments The 12 May 2026 announcement from OD6 Metals is best understood as a field validation of a historically documented deposit, combined with the definition of a new drill target within a growing district-scale fluorspar system. The company is not reporting a new discovery in the geological sense, as Big Jim was mined from 1934 and formally documented in 1947. As far as I understand, the field team has physically located it in 2026, confirmed that the surface exposure is consistent with historical descriptions, collected samples for laboratory confirmation, and identified the geological geometry that defines the depth drill target. As an exploration practitioner, sometimes, situations like this are a greater boost to the project development than what meets the eye. A "discovery" of something like Big Jim can add to the big picture in terms of prospectivity. The bonus is the ability to confirm the grades that are in the historical books (Figure 5). Figure 5: Annotated mine sketch map with historic results (Goulet & Jones, 1947) for AFW Carlson of Bishop, California The grade context deserves emphasis. Fluorspar is unusual among critical minerals in that its commercial grade threshold is well-established and widely published. Existing projects are generally considered economic above 20% CaF₂, with some operators citing 8% CaF₂ as a minimum. The Big Jim main vein has historically recorded 94.6%, 96%, and 98.6% CaF₂ and the footwall breccia material that was historically dismissed as uneconomic "gangue" at 60% CaF₂ would itself be considered high-grade by the standards of today's operating projects. The company has explicitly noted this point in the release, observing that material once considered commercially valueless now represents a potentially valuable fluorspar source by modern economic standards. This is a meaningful observation: it suggests the economic inventory at Big Jim may be larger than the historic operators recognised. The structural geometry of the Big Jim system is also worth noting as an investor consideration. The lode dips shallowly to the west at approximately 32 degrees, which is a geometry that, as the company's schematic cross-section illustrates, places the mineralisation directly beneath the jasperoidal lithocap at accessible depths. A jasperoidal lithocap is a large, erosional, silica-rich capping layer that forms at or near the surface in an epithermal/hot spring system, characterized by intense silicification. It represents a "cap" of altered rock—often replacing limestone or dolomite—that overlies deeper porphyry copper-gold mineralization. ------- University of Tasmania, "Lithocaps - characteristics, origins and significance for porphyry and epithermal exploration" This is a more tractable drill target than a steeply dipping vein that requires deep drilling to intercept at depth. The shallow dip also has implications for potential mining geometry, should the project advance to that stage: flat-lying or gently dipping ore bodies are generally more amenable to open-pit or shallow underground extraction than steep systems. Don't get excited, this is still an early-stage project What will Make This A Economical Fluorspar Project? The open questions at this stage are the ones that assays and drilling will resolve. The laboratory results from the 2026 rock chip samples will confirm or refine the visual grade estimates. The geological mapping program will clarify the strike extent and depth continuity of the system beyond the 220 metres of historic workings. The soil geochemistry program will define the geochemical footprint of Big Jim and the surrounding prospects. And when drilling eventually commences — subject to US Forest Service permitting — it will test whether the historical high grades persist at depth beneath the lithocap. Each of these steps is a discrete, measurable milestone. Investors tracking OD6 Metals and the Quinn Fluorspar Project should watch for the assay results as the next near-term data point, followed by any disclosure on the geological mapping and drill permitting timeline. The company is moving quickly and the March 2026 option agreement suggests an intent to advance the project systematically and disclose results as they come to hand. About OD6 Metals Limited OD6 Metals Ltd (ASX: OD6) is an Australian public company pursuing exploration and development opportunities across the critical minerals sector, with a portfolio spanning fluorspar, rare earth elements, and copper. Its flagship rare earth asset is the Splinter Rock Project in Western Australia's Esperance-Goldfields region, which hosts one of Australia's largest clay-hosted rare earth deposits with an Indicated Resource of 119Mt at 1,632ppm TREO and an Inferred Resource of 563Mt at 1,275ppm TREO. In fluorspar, the company holds an option to acquire the Quinn Fluorspar Project located approximately 220km north of Las Vegas, Nevada — a project with documented high-grade mineralisation across multiple systems, including Mammoth, Horseshoe, and now the rediscovered Big Jim lode, each exhibiting grades well above the economic threshold for fluorspar development. The company also holds the Gulf Creek Copper-Zinc VMS Project near Barraba in New South Wales. Previous Samso News Coverage Samso has followed OD6 Metals Ltd across multiple ASX releases. The following represents our prior published coverage of the company: April 05, 2026 - April 17, 2026 - March 18, 2026 - December 19, 2025- November 08, 2025- September 10, 2025- August 24, 2025 - August 13, 2025 August 22, 2023 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. 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. Samso News | www.samso.com.au | An Investor Lens on ASX-Listed Companies

This Samso Insight argues that the current market narrative around a major iron ore price decline, driven by the start-up of the Simandou Iron Ore Project in Guinea, may be overstated. While Simandou is a significant high-grade development, its forecast production needs to be considered against the scale of global iron ore supply and the long history of demand growth tied to steelmaking. The article places this discussion in historical context by tracing iron ore consumption through crude steel production since the 1960s, showing that the iron ore story has always been shaped by industrial growth, infrastructure build-out, and the ability of major producers to deliver reliable, scalable supply chains. The key conclusion is that iron ore should not be viewed simply as a commodity facing oversupply, but as a sector entering a new stage of differentiation. The article highlights that the future of iron ore will increasingly depend on product quality, logistics, and suitability for cleaner steelmaking pathways. In that sense, the real investment shift may not be about whether Simandou adds more tonnes to the market, but whether producers can supply the higher-grade feedstocks needed for Direct Reduction Iron and lower-emission steel production. The concluding view is that the iron ore market is in transition rather than decline. Global steel output remains near historically high levels, demand may shift geographically rather than disappear, and the rise of decarbonisation is creating a new premium segment for magnetite projects capable of producing Direct Reduction-grade concentrate and pellets. In supporting the narrative of a transition to cleaner DIR pellets, China is now deploying commercial DRI facilities. For investors, this means the more important story may not be short-term fear around Simandou, but identifying which companies and ore bodies are best positioned for the next phase of the iron ore business. To help readers navigate through the Samso Insight, a content list is provided below. Content 1.0 Introduction – Are Iron Ore Investments A Sunset Industry or Are We Being Fed The Red Herring. 2.0 Global Consumption of Iron Ore 3.0 Decade-by-Decade: What Drove the Iron Ore Appetite? 1960s — The export era switches on 1970s — Growth continues, then energy shocks bite 1980s — Mature economies plateau; Brazil’s next chapter ramps 1990s — A long pause before the surge 2000s — The super-cycle: steel becomes a global volume game 2010s — China dominates; the system industrialises further 2020s — Plateau signals + regional shift 4.0 Timeline: Consumption Milestones + When Major Producers Stepped Into The Iron Ore Game. 5.0 The “Major Producer Involvement” Point That Often Gets Missed 6.0 The Top 10 Global Iron Ore Projects 6.01 Rio Tinto – Pilbara iron ore system (Australia) 6.02 BHP – Western Australia Iron Ore (WAIO) 6.03 Vale – Carajás Northern System (Brazil, incl. S11D) 6.04 Fortescue – Pilbara iron ore operations (Australia) 6.05 Simandou iron ore project (Guinea) (projected) 6.06 Roy Hill (Australia) 6.07 NMDC – Bailadila iron ore complex (India) 6.08 Kumba Iron Ore – Sishen & Kolomela (South Africa) Sishen Mine – Northern Cape Kolomela Mine – Northern Cape Production & Strategic Importance Geological Context 6.09 LKAB – Kiruna & Malmberget (Sweden) 6.10 IOC – Iron Ore Company of Canada (Canada) 7.0 The New Generation of the Iron Ore Business -Direct Reduction Pellets — The Race Toward Green Steel Starts at the Ore Body China Making DRI Happen 7.01 What Are Direct Reduction (DR) Pellets? 7.01.1 Key Characteristics of DR Pellets: 7.02 How Are DR Pellets Produced? 7.02.1 Step-by-Step Process: 7.03 Why DR Pellets Matter 7.03.01 Decarbonisation of Steel 7.03.02 EAF Growth 7.03.03 Premium Pricing 7.04 Not All Magnetite Deposits Can Produce DR Pellets 7.04.01 Why? 7.04.02 Ore body geology determines pellet quality. 7.04.03 Why This Sector Is Emerging 8.0 Global Companies Working on DR Pellets 8.01 Vale S.A. - Brazil 8.02 LKAB - Sweden 8.03 ArcelorMittal (AMMC Canada) - Canada 8.04 Cleveland-Cliffs Inc. - US 8.05 Fortescue Limited - Australia 9.0 Small Iron Ore Companies Targeting the Direct Reduction Pellet Market 9.01 Tacora Resources – Magnetite DR Pellet Producer 9.02 Grange Resources – Magnetite Concentrate for DR Pellets 9.03 Kamistiatusset (Kami) Iron Ore Project – DR Pellet Feed Concept 9.04 Magnetite Mines – DR Pellet Feed From Razorback 9.05 Champion Iron – Premium DR Pellet Feed Supplier 9.06 Iron Bear Limited – Iron Bear Iron Ore Mine - Direct Reduction Strategy 10.0 Strategic Observations — The Samso View 11.0 Final Thoughts 12.0 Samso Concluding Comments 1.0 Introduction – Are Iron Ore Investments A Sunset Industry or Are We Being Fed The Red Herring. Investors in the iron ore sector are currently being told to brace for a softening in global iron ore pricing as the giant Simandou Iron Ore mine ships its first shipment of high grade ore. The street talk is that the imminent 120 million tonnes per annum production coming out of Guinea is going to drive iron ore pricing to the sub USD $80 to $90 per tonne. Iron Ore Rocks and Mining Operations in Australia Market analysts have largely accepted this situation, as the dominant conversation centers on the influx or "glut" of ore "flooding" the market. To me, this is reminiscent of past experts who predicted the decline of oil and gas, the continuous rise of lithium and cobalt, and the fall of gold in 1999 when its price dropped from USD $428 to below USD $240. I recall experts at that time claiming that gold would just become another commodity. Figure 1: Historical Gold Price Chart. (source: Macrotrends.net) For those readers who remember that moment in 1999, you would have thought that there must be some truth in those headlines, but as you can see in Figure 1, that was a mere bump in the road to the current gold price in February 2026. Check this site out, it has a good summary of the gold price movement for the last several decades: Best Brokers I remember in 2018, gold price was about to fall below USD $1000 and there was also a series of conversations of the oncoming dark clouds of a depressing gold price. Again, that was just another bump in the road. So is this current discussion with the iron ore price another bump in the road? Are we going to see a new era of a lesser iron ore pricing? 2.0 Global Consumption of Iron Ore Iron Ore Consumption Since the 1960s — and When the Giants Stepped In When discussing "iron ore demand," people typically refer to steel demand. Iron ore is the essential feedstock for primary steelmaking, and nearly all iron ore (around 98%) is used for steel production. For a clear and consistent timeline from the 1960s onward, the most dependable long-term indicator is world crude steel production, which serves as a strong proxy for iron ore consumption trends. What follows is a Samso-style overview of the past ~65 years: how the world's appetite expanded, why it evolved over time, and how the major producers (along with the modern export system) developed capacity to meet this demand. I discovered an excellent chart by Own Analytics (Figure 2) that I believe will complement the details described below. Owen Analytics has illustrated the volatility of iron ore pricing over the decades and how various events have influenced pricing. Figure 2: The Owen Analytics chart showing the share prices of the big three iron ore miners/exporters – BHP, RIO and Fortescue (FMG) and that of iron ore. Their share prices have been scaled in order to show them on the one chart. (source: Owen Analytics) In this Samso Insight, the key events influencing iron ore prices highlight why investors should carefully consider the current state of the iron ore market. While the common belief suggests a slowdown in pricing, I believe there are strong reasons to think the impact of Simandou might be exaggerated. Let's explore the Samso Insight to determine if the global trend of selling in anticipation of lower iron ore prices is actually a strategic move by the market to encourage others to sell while they themselves are buying for long-term positions. Consider this: in 2024-2025, the average global annual production of iron ore was approximately 2,490 MT, and in the future, Simandou is expected to reach a peak of about 120 MT annually. If they were to boost their production to 120 MT per year today, it would only represent about 4-5% of global production (a rough estimate). Figure 3: China Steel Output vs. Steel product exports. (source: Reuters) The speed at which Simandou reaches its maximum production is a significant factor. Although reaching the target of 120 MT per annum is an objective, any delays or operational disruptions that hinder achieving this level will lend more credibility to my views on Simandou's impact on global iron ore production. Assuming that consumption will increase over time and that the Chinese economy (Figure 3) will eventually resume its growth towards a forward-moving GDP, any new production will most likely simply be absorbed. Narratives forget that the whole world is still progressing and the consumption is always going to be increasing and deleption of ore is also always going to be increasing. For me, this is a very simplistic explanation of why I believe that the output from Simandou will naturally be consumed and not be a real significant hurdle for the iron ore price. Depletion from existing mines, which is a strong candidate for a decrease in future supply, will definitely contribute negatively to the global production versus consumption balance. My thoughts: the price of iron ore is unlikely to be depressed; if anything, it will remain at a sustainable level, with some volatility, and has a good chance of rising in the medium term, likely after the Chinese New Year period. Before we convince each other, let's look through some market facts that the internet cans provide for us. The Consumption Story (1960s → Today), Told Through Steel World crude steel production (million tonnes): Figure 4 Figure 4: Work Steel production since 1960. 1960: 347 MT -1970: 595 MT - 1980: 717 MT - 1990: 770 MT - 2000: 850 MT - 2005: 1,148 MT - 2010: 1,435 MT - 2015: 1,626 MT - 2020: 1,883 MT - 2024: 1,885 MT. The tonnage are an approximation from a search on google. Looking at Figure 2, you can see the narrative illustratively but it's a good addition to the visualisation if you consider the details listed below: 1960–1970: rapid industrial build-out (post-war rebuild + manufacturing expansion). 1970–1990: slows and flattens (oil shocks, recessions, and mature-economy saturation). 2000–2020: the modern super-cycle (China-led urbanisation and infrastructure build). 2020–2024: high plateau (still huge volumes, but no longer the same growth engine). 3.0 Decade-by-Decade: What Drove the Iron Ore Appetite? Figure 4 is a good chart to follow as you go through this section. 3.01 1960s — The export era switches on This decade is the “start gun” for the modern seaborne iron ore trade, especially for Australia. In 1960, Australia partially lifted an iron ore export ban that had been in place since 1938—one of those policy pivots that looks obvious in hindsight. On the consumption side, global crude steel output moved from 347 Mt (1960) to 456 Mt (1965), reflecting accelerating industrial demand. 3.02 1970s — Growth continues, then energy shocks bite Steel production rises to 595 Mt (1970) and 644 Mt (1975), but the growth rate slows as oil shocks and inflation reshape heavy industry economics. This is also when Japan’s role as a premium buyer of seaborne ore becomes structurally important (long-term contracting culture, reliability, and quality discipline), shaping how producers think about scale and consistency. 3.03 1980s — Mature economies plateau; Brazil’s next chapter ramps World crude steel is basically flat: 717 Mt (1980) and 719 Mt (1985). But the supply system keeps professionalising and expanding. A major marker here is Vale’s Carajás region, where Vale notes it has been mining iron ore in the area since 1985 (a key turning point in Brazil’s scale and grade advantage). 3.04 1990s — A long pause before the surge World crude steel is 770 Mt (1990) then 753 Mt (1995)—a decade where demand growth is real but not explosive. This is the era where efficiency, blending, and supply-chain reliability become increasingly valuable. The “big mining” model (large hubs, integrated rail/port, tight product specs) proves it can outcompete a fragmented supply base. 3.05 2000s — The super-cycle: steel becomes a global volume game Steel production jumps from 850 Mt (2000) to 1,148 Mt (2005). This is the decade that rewired iron ore thinking: volume security becomes strategic; pricing mechanisms evolve (from annual benchmark norms toward more market-linked approaches); and miners invest like the market will be big forever. 3.06 2010s — China dominates; the system industrialises further Steel hits 1,435 Mt (2010) and rises through the decade to the 1.8+ Bt level. By now, the iron ore market is less about “finding customers” and more about: keeping trains and ports running, matching product to mill blends, and managing grade/sinter/pellet strategies. 3.07 2020s — Plateau signals + regional shift World crude steel is basically at a high plateau: 1,883 Mt (2020) and 1,885 Mt (2024). Recent reporting also points to a key transition theme: China appears to have passed peak steel, while developing Asia continues to grow, which can change where iron ore demand growth comes from—even if global volumes remain enormous. 4.0 Timeline: Consumption Milestones + When Major Producers Stepped Into The Iron Ore Game. Table 1: Here’s a combined timeline (demand proxy + producer milestones) to make it easy to reference. Period Demand proxy (world crude steel) Producer “involvement” milestones (how the giants entered / scaled) 1960 347 Mt Australia partially lifts iron ore export ban (policy unlock) 1966 (mid-60s growth) Rio Tinto notes its first Pilbara shipment from Mount Tom Price in 1966 1969 (approaching 1970 peak) BHP marks 1969 as first railing + first shipment from the Mt Newman Project (Mt Whaleback / Port Hedland) 1970 595 Mt Pilbara system proves repeatable at scale (rail + port + long-term Asian contracting) 1980–1985 717–719 Mt Vale’s Carajás mining era begins (Vale references mining since 1985) 1990–1995 770 → 753 Mt Majors consolidate “hub” thinking: product quality, blending, port optionality, and reliability become competitive moats 2000–2005 850 → 1,148 Mt China-driven demand shock forces multi-year capital programs across Australia & Brazil 2010 1,435 Mt Market becomes structurally seaborne-volume dominated; miners optimise for throughput + consistency 2024 1,885 Mt New narrative: China output appears past peak; growth shifts toward developing Asia 5.0 The “Major Producer Involvement” Point That Often Gets Missed A useful way to frame producer involvement isn’t just “who existed,” but who built export systems that could scale: Australia (Pilbara) became the blueprint for integrated iron ore exports: mine → rail → port → Asia, enabled by the 1960 export policy shift and then executed through the first shipments in the mid-to-late 1960s. Brazil (Carajás) reinforced the other pillar of global supply: very large scale with quality advantages, with Vale referencing operations in Carajás since 1985. Over time, the market migrated from a “many suppliers” feel to a system where a small number of huge, operationally disciplined exporters set the reliability standard. 6.0 The Top 10 Global Iron Ore Projects 6.01 Rio Tinto – Pilbara iron ore system (Australia) Tonnes mined per year: ~330–340 Mtpa (operating capacity) Typical product grade: ~61–62% Fe Mine life remaining: 20+ years (continuously extended via replacement hubs) One of the aspects of the Rio Tinto operations in the Pilbara is the longevity of their operations. For example, the Paraburdoo region is one of the longest running iron ore operations in their Western Australian operations having started production in 1972 (Figure 5). Figure 5: A large haulpak working in Rio Tinto's operations in the Paraburdoo region in Western Australia. (source: RioTinto) The most recognisable iron ore operations in the Pilbara that Rio Tinto operates is the Mount Tom Price operations (Figure 6). The Mount Tom Price mine is located in the Pilbara region of Western Australia, near the town of Tom Price. The mine is fully owned and operated by Rio Tinto Iron Ore and is one of twelve iron ore mines the company operates in the Pilbara. In 2009, the combined Pilbara operations produced 202 million tonnes of iron ore, a 15 percent increase from 2008. Figure 6: The Mount Tom Price operations. (source: Wikipedia - By Bäras - Own work, CC BY-SA 3.0) The Pilbara operations accounted for almost 13 percent of the world's 2009 iron ore production of 1.59 billion tonnes. Figure 7 below shows the Rio Tinto operations as of 2023. Figure 7: Pilbara miners produced over 800 billion tonnes of iron ore in the 2020-21 financial year, with Western Australia accounting for 98% of the country’s total iron ore reserves. These products included over $100bn (A$150bn) worth of iron ore exports, and generated $103.3bn (A$154bn) in sales, up from $42.7bn (A$64bn) in 2016-17. (source: Mine Australia - Credit: Peter Christener via Wikimedia) The Hamersley Range, where the mine is located, contains 80 percent of all identified iron ore reserves in Australia and is one of the world's major iron ore provinces. (source: Wikipedia) 6.02 BHP – Western Australia Iron Ore (WAIO) Tonnes mined per year: ~330 Mtpa (operating system capacity) Typical product grade: ~61–62% Fe Mine life remaining: 20–30+ years (portfolio of mines) The BHP operations are just as extensive in the Pilbara and a type example of the iron ore operations is that of the Mount Whaleback mine, officially the Newman West operation and is located in the Pilbara region of Western Australia, six kilometres west of Newman. The mine is majority-owned (85 per cent) and is one of five iron ore mines the company operates in the Pilbara. Figure 8: The Mount Whaleback iron ore mine. The Mount Whaleback deposit was discovered in 1957 by Stan Hilditch but not publicised until 1960, when the Australian Government lifted the embargo on iron ore exports it had put in place because of concerns the mineral was in short supply. (source: Wikipedia - By Graeme Churchard from Bristol (51.4414, -2.5242), UK - Uploaded by PDTillman, CC BY 2.0 ) The story of iron ore mining around Newman begins in 1968, when BHP opened the Mount Whaleback Mine in the heart of the Pilbara. At the time, this was a defining moment for Australia’s iron ore industry. Mount Whaleback would become the largest single open-pit iron ore mine in the world. The mine itself is immense (Figure 8). The pit is around 1.5 kilometres wide and stretches more than five kilometres in length. Over time, the operation has continued to deepen, with the final design expected to reach roughly half a kilometre below surface. The scale of the deposit and the mining operation helped establish Newman as one of the key centres of iron ore production in the Pilbara (Figure 9). Figure 9: The location of the town of Newman to the Mt Whaleback mine - 2020. (source: Wikipedia - By NASA Earth Observatory image by Lauren Dauphin) Developing Mount Whaleback required more than just building a mine. A new township was established to support the workforce, and the town of Newman grew alongside the project. To move the ore to the coast, BHP constructed the 426-kilometre Mount Newman Railway linking the mine to port facilities on the Pilbara coast (Figure 7). Operations moved quickly once the infrastructure was in place. The first train carrying iron ore left Newman on 1 January 1969, marking the beginning of large-scale shipments from the Pilbara. Only a few months later, on 1 April 1969, the first cargo of Newman ore was loaded onto the vessel Osumi Maru for export. In those early years, Newman was operated as a closed company town, a common model for remote mining developments at the time. This arrangement remained in place until 1981, when the town opened up and evolved into the regional mining centre it is today. For anyone looking at the development of the Pilbara iron ore industry, the opening of Mount Whaleback and the creation of Newman marked the beginning of what would become one of the most significant iron ore production regions in the world. 6.03 Vale – Carajás Northern System (Brazil, incl. S11D) Tonnes mined per year: ~230 Mtpa (operating + ramp-up capacity) Typical product grade: ~65–67% Fe Mine life remaining: ~25–40 years The Carajás Northern System is the largest and most important iron ore production hub operated by Vale in northern Brazil. The operations are located in the Carajás Mineral Province in the state of Pará, one of the richest iron ore regions in the world. Figure 10: The Serra Norte iron ore mining area is part of Vale’s Northern System, and is located in the municipality of Parauapebas, which is in the state of Pará, in northern Brazil. The N4W, N4E and N5 mines are currently operating, generally referred to as the Carajas mining complex. The Carajás system contains some of the highest-grade iron ore deposits globally, typically averaging around 65% Fe, which allows Vale to produce premium lump and fines products with relatively low levels of impurities such as silica and alumina. These characteristics make Carajás ore particularly suitable for efficient steelmaking and lower emissions in blast furnace operations. Mining at Carajás began in the mid-1980s, and the region has since developed into a large integrated mining system consisting of multiple open-pit mines, beneficiation plants, rail infrastructure, and export terminals. The Northern System is the largest of Vale’s three main Brazilian iron ore systems and contributes the majority of the company’s total production. The S11D Operations. A major expansion of the Carajás operations came with the development of the S11D Eliezer Batista Complex, which began production in 2016. The S11D project is one of the largest iron ore developments ever built and significantly increased Vale’s capacity in the region. Figure 11: A conveyor belt transports iron ore at the Vale S11D mine in Parauapebas, Para state, Brazil. (source: Bloomberg - Photographer: Dado Galdieri/Bloomberg) The project is notable for its “truckless” mining system, where ore is transported from the pit to the processing plant using conveyor belts rather than traditional haul trucks. This approach reduces fuel consumption, operating costs, and environmental impacts. S11D has a designed production capacity of around 90 million tonnes of iron ore per year, making it one of the largest individual iron ore mining projects in the world. The ore from S11D is also exceptionally high grade, typically above 65% Fe, reinforcing the premium product profile of the Carajás system. Key Facts – Vale Carajás Northern System Location: Carajás Mineral Province, Pará State, Brazil Operator: Vale S.A. Main deposits: Carajás mines including the S11D complex Ore grade: typically around 65% Fe S11D capacity: ~90 million tonnes per year Transport: Estrada de Ferro Carajás railway (~890 km) Export port: Ponta da Madeira terminal (São Luís) One of the largest and highest-grade iron ore mining systems in the world 6.04 Fortescue – Pilbara iron ore operations (Australia) Tonnes mined per year: ~200–220 Mtpa (operating capacity) Typical product grade: ~56–59% Fe (improving with higher-grade replacement ore) Mine life remaining: 20+ years The iron ore operations of Fortescue are located in the Pilbara and form one of the largest iron ore production systems in the world. Since the company’s first shipment in 2008, Fortescue has grown from a new entrant in the Pilbara into the third major iron ore producer in the region, alongside Rio Tinto and BHP. Figure 12: A schematic diagram highlighting the iron ore hub for Fortescue Resources. (source: Livewiremarkets) Fortescue’s operations are centred on large open-pit iron ore mines that produce hematite ore from the Hamersley Basin, one of the world’s most significant iron ore provinces. The company operates multiple mining hubs that supply ore to processing plants, rail infrastructure, and export terminals on the Pilbara coast. Today, Fortescue’s Pilbara system has a production capacity of around 190 million tonnes of iron ore per year, supplying global steel markets, particularly in Asia. Major Mining Hubs Fortescue’s iron ore production is organised into several major mining hubs across the Pilbara. Chichester Hub Located near Cloudbreak (Figure 13) and Christmas Creek (Figure 14), the Chichester Hub was the company’s first major mining operation. These deposits produce a blend of ore types that are processed and transported to port via Fortescue’s rail network. Figure 13: The Christmas Creek iron ore operations. (source: Fortescue) Figure 14: The Cloudbreak iron ore operations. (source: Fortescue) Solomon Hub The Solomon Hub (Figure 15) includes the Firetail and Kings Valley iron ore deposits. This hub produces higher-grade ore compared with some of Fortescue’s earlier operations and contributes a large share of the company’s production. Figure 15: The Solomon iron ore operations. (source: Fortescue) Western Hub – Eliwana and Iron Bridge Fortescue expanded further west with the development of the Eliwana iron ore Mine (Figure 16), which began production in 2020. Eliwana provides higher-grade ore and supports Fortescue’s strategy to improve product quality iron ore. Figure 16: The Eliwana iron ore mine. (source: Fortescue) Another major development is the Iron Bridge Magnetite Project. Unlike Fortescue’s traditional hematite operations, Iron Bridge iron ore mine produces a high-grade magnetite concentrate and represents the company’s move into magnetite iron ore production. Figure 17: The Ironbridge magnetite project accomodation camp. (source: Fortescue) Key Facts – Fortescue Iron Ore Operations Operator: Fortescue Location: Pilbara region, Western Australia First production: 2008 Main mining hubs: Chichester Hub (Cloudbreak, Christmas Creek) Solomon Hub (Firetail, Kings Valley) Western Hub (Eliwana) Magnetite development: Iron Bridge project Rail network: ~600 km heavy-haul railway Export terminal: Herb Elliott Port, Port Hedland Production capacity: ~190 million tonnes per year 6.05 Simandou Iron Ore Project (Guinea) (projected) Tonnes mined per year: ~60 Mtpa (Phase 1 sanctioned) Long-term expansion discussions: up to ~120 Mtpa Typical product grade: ~65–66% Fe (very high-grade hematite) Mine life remaining: 30–40+ years Status: Under development (rail + port critical path) The Simandou Iron Ore Project (Figure 18) in the Republic of Guinea is widely regarded as one of the largest undeveloped high-grade iron ore deposits in the world. Located in the Simandou mountain range in southeastern Guinea, the project contains exceptionally high-grade hematite resources and has the potential to become one of the most significant new sources of seaborne iron ore supply. Figure 18: The Simandou Iron Ore Project. (source: South China Morning Post) The deposit is divided into four main blocks along the Simandou range. Development of the project is being undertaken by a consortium that includes Rio Tinto, the Aluminium Corporation of China (Chinalco) and a group of Chinese investors under the Simandou Winning Consortium. The government of Guinea also holds a stake in the project. Simandou has been known for decades as a world-class iron ore province, but development has been delayed due to infrastructure requirements, financing complexity and ownership changes. In recent years, construction has accelerated as the partners move toward bringing the project into production. Simandou is notable for its high-grade hematite ore, typically grading around 65–66% iron, which is comparable to the premium ores produced from Brazil’s Carajás deposits. The scale of the deposit is also exceptional, with resources estimated to exceed two billion tonnes of high-grade iron ore across the Simandou range. Figure 19: Mining begins at the Simandou Iron Ore Project. (source: Reuters) The ore occurs along a ridge system stretching more than 100 kilometres, making it one of the most extensive undeveloped iron ore formations globally. These characteristics mean Simandou could produce a premium iron ore product suitable for efficient steelmaking. The mine officiaily commenced in early November 2025. Production rates are expected to reach full capacity of 120mtpa by 2030, 60mtpa of which will come from SimFer, a consortium 53% owned by Rio. When the project reaches full capacity, it will account for about 5% of total global supply. As the Simandou operations approach full capacity, S&P Global estimates all-in sustaining costs in the range of $55-$60/t. Key Facts – Simandou Iron Ore Project Location: Simandou Range, southeastern Guinea Deposit type: High-grade hematite iron ore Resource scale: >2 billion tonnes Average grade: ~65–66% Fe Planned production: ~100 Mt per year (long-term) Infrastructure: ~650 km Trans-Guinean railway New deep-water export port Major stakeholders: Rio Tinto Chinalco Simandou Winning Consortium Government of Guinea 6.06 Roy Hill (Australia) Tonnes mined per year: ~60 Mtpa (operating nameplate) Typical product grade: ~55–62% Fe (lump + fines blend) Mine life remaining: >20 years The Roy Hill Mine is a large open-pit iron ore operation located in the eastern part of the Pilbara. The mine is operated by Roy Hill Holdings and represents one of the largest single iron ore mining developments constructed in Australia during the past two decades. Figure 20: The Roy HIll Iron Ore Operations. (source: MLG) The project is situated about 115 kilometres north of the mining town of Newman and was developed to exploit a large hematite iron ore deposit within the Brockman iron formation of the Hamersley Basin. Construction of the mine and associated infrastructure began in 2013, with the first shipment of iron ore exported in December 2015. The development required significant investment in mining infrastructure, processing facilities, rail transport and port infrastructure. Mining and Processing Operations Roy Hill is designed as a large-scale open-pit mining operation producing hematite iron ore. Ore extracted from the mine is transported to a central processing plant where it is crushed, screened and beneficiated to produce lump and fines iron ore products suitable for steelmaking. The operation has a nameplate production capacity of approximately 60 million tonnes of iron ore per year, placing it among the major iron ore producers in the Pilbara. Mining operations utilise large-scale haul trucks, excavators and drill rigs typical of modern Pilbara iron ore operations. The project was designed to operate as an integrated mining system with its own processing and logistics infrastructure. Ownership Roy Hill Holdings is privately owned and led by Australian businesswoman Gina Rinehart through the Hancock Prospecting group. The project also includes several international partners. Major stakeholders include: Hancock Prospecting Marubeni Corporation POSCO China Steel Corporation These partnerships helped finance the large-scale development of the project and support long-term iron ore supply agreements with steel producers. Key Facts – Roy Hill Iron Ore Mine Location: Pilbara region, Western Australia Distance from Newman: ~115 km north Mining method: Open-pit hematite mining Production capacity: ~60 Mt per year Railway: ~344 km Roy Hill Railway Export port: Roy Hill terminal, Port Hedland First shipment: December 2015 6.07 NMDC – Bailadila iron ore complex (India) Tonnes mined per year: ~45 Mtpa (operating / targeted) Typical product grade: ~64–66% Fe Mine life remaining: 20+ years (multiple mining leases) The Bailadila Iron Ore Complex is one of India’s most important iron ore mining regions and is operated by the state-owned company NMDC Limited. The complex is located in the Bastar district of Chhattisgarh, within a series of mountain ridges known as the Bailadila range (Figure 21). Figure 21: The Bailadila Iron Ore Mine. (source: NMDC) The name “Bailadila” translates roughly to “hump of the ox”, reflecting the shape of the hills where the iron ore deposits occur. These deposits are among the highest-grade iron ore resources in India, typically producing hematite ore with iron content exceeding 64% Fe. Mining in the Bailadila region began in the late 1960s and has since developed into a major production centre supplying iron ore to both domestic steel producers and international markets. The Bailadila complex consists of a number of iron ore deposits distributed along the Bailadila hill range. Several deposits are actively mined by NMDC, including: Deposit 14/11C Deposit 11B Deposit 5 Deposit 10 and 11A Mining is conducted using large open-pit methods, where ore is extracted from the hillside deposits and transported to nearby crushing and screening plants. The ore is then processed to produce lump and fines products suitable for steelmaking. The deposits are known for their high-grade hematite ore, which allows NMDC to supply premium iron ore products to steel mills. Key Facts – Bailadila Iron Ore Complex Location: Bastar region, Chhattisgarh, India Operator: NMDC Limited Deposit type: High-grade hematite iron ore Ore grade: typically 64%+ Fe Mining method: Open-pit mining Major deposits: 14/11C, 11B, 5, 10 and 11A Rail connection: Kirandul–Visakhapatnam line Export port: Visakhapatnam Port 6.08 Kumba Iron Ore – Sishen & Kolomela (South Africa) Kumba Iron Ore (Figure 22) is one of the largest iron ore producers in Africa and a major supplier of high-quality iron ore to the global steel industry. The company operates large open-pit iron ore mines in the Northern Cape Province of South Africa and is majority owned by Anglo American. Kumba’s operations are centred on the Sishen and Kolomela mines, which extract hematite iron ore from deposits within the Transvaal Supergroup of the Kaapvaal Craton. These deposits are known for producing high-grade lump and fines iron ore products, which are exported primarily to steel producers in Asia and Europe. The company plays an important role in South Africa’s mining sector, contributing significantly to the country’s iron ore exports and providing supply to both domestic and international steel markets. Sishen Mine – Northern Cape Location: Near Kathu, Northern Cape, South Africa Ownership: Operated by Kumba Iron Ore (majority owned by Anglo American) Product: High-grade hematite iron ore lump and fines Figure 22: Kumba Iron Ore Mining operations. (source: Mining Weekly) Sishen is one of the largest open-pit iron ore mines in the world and the flagship asset of Kumba Iron Ore. The orebody is predominantly high-grade hematite hosted within the Transvaal Supergroup. Mining is conducted via large-scale conventional open-pit methods using truck-and-shovel fleets. Sishen produces both lump (direct shipping ore suitable for blast furnaces) and fines products. The mine is a key supplier to global steelmakers and exports via the Sishen–Saldanha heavy-haul railway to the port of Port of Saldanha. Kolomela Mine – Northern Cape Location: Near Postmasburg, Northern Cape, South Africa Ownership: Operated by Kumba Iron Ore Product: High-grade hematite iron ore Kolomela is a newer, smaller but highly efficient open-pit iron ore operation compared to Sishen. It was developed to replace declining production from older pits and to maintain Kumba’s export capacity. Kolomela is known for: Relatively lower stripping ratios Operational efficiency Consistent high-grade product Production & Strategic Importance Combined production historically ~35–40+ million tonnes per annum (varies by year and market conditions). Typical product grade: ~64% Fe Mine life remaining: Sishen: ~10–15 years Kolomela: ~15–20 years Primary markets: China, Europe, and the Middle East. Strategic importance: Key supplier of premium iron ore products that support efficient blast furnace operations and lower emissions intensity per tonne of steel. Geological Context Both Sishen and Kolomela exploit Banded Iron Formation (BIF)-hosted hematite deposits, enriched through supergene processes that upgraded the original iron formation to high-grade direct shipping iron ore. This natural upgrading is a major reason why these mines are globally competitive. 6.09 LKAB – Kiruna & Malmberget (Sweden) The Kiruna Iron Ore Mine (Figure 23), located in Kiruna, Norrbotten County in northern Sweden, is owned by Swedish mining company LKAB (Luossavaara-Kiirunavaara AB). It is one of the largest and most significant underground iron ore operations in the world. In 2018, the mine produced 26.9 million tonnes of iron ore. The orebody is approximately 4 km long, 80–120 metres thick, and extends to a depth of up to 2 km. Since operations began in 1898, more than 950 million tonnes of ore have been extracted. As of 2020, the main haulage level sits 1,365 metres below the original ore outcrop at Kiirunavaara. Figure 23: Kiruna Iron Ore Mine - Cross Section (source: By Borvan53 - Own work, CC BY-SA 4.0,) Tonnes mined per year: ~25–30 Mtpa (operating) Typical product grade: Pellets: ~67% Fe Fines: up to ~70% Fe Mine life remaining: Kiruna main level to ~2046, longer with deeper mining Due to mining-induced ground subsidence, a decision was made in 2004 to gradually relocate the centre of Kiruna town, with the transition planned over several decades to accommodate continued mining expansion (Figure 24). Figure 24: The close proximity of the townsite and the mine is clearly shown in the two photos. (source: The moving of the Swedish mining city Kiruna) 6.10 IOC – Iron Ore Company of Canada (Canada) Tonnes mined per year: ~18–20 Mtpa (operating capacity) Typical product grade: ~65% Fe concentrate / pellets Mine life remaining: ~20–25 years 7.0 The New Generation of the Iron Ore Business -Direct Reduction Pellets — The Race Toward Green Steel Starts at the Ore Body The business of iron ore has now come to the a stage where the "green" factor is playing a larger role. The old business of just putting >60% Fe ore into a truck and loading it onto trains and then supertankers are now no longer the main game being positioned for the coming decades. It is a well known fact now that mills in China are taking blends and with the cleaning up of the mills in China, the need for cleaner style feed into the furnace is now the talk of the town. The real answer is not hematite vs magnetite — it is grade and quality. Steel mills increasingly prefer High-Fe feedstock (>65% Fe) because it: reduces coke use improves productivity lowers emissions reduces slag volume Remember the following: Steel mills do not prefer magnetite simply because it is magnetite They prefer: higher grade + cleaner ore. Magnetite can deliver that, but only if the beneficiation economics work. That is why some magnetite projects struggle: high capex energy intensive grinding China Making DRI Happen China’s Steel Industry Work Plan (2025–26) emphasises modernization through electric arc furnaces and hydrogen-based ironmaking technologies. China’s steel sector is exploring direct reduced iron (DRI) + electric arc furnace (EAF) as a major low-carbon alternative to blast furnaces. The DRI-EAF route is widely seen as a promising pathway to reduce emissions and reliance on coking coal. However, China currently produces very little DRI, which is why the technology is now being actively developed. China is beginning to deploy commercial DRI facilities. China Baowu and HBIS have commissioned Energiron DRI plants, part of the move toward low-carbon steelmaking (IEEFA) The future of the iron ore industry is now in plain sight as China’s steel industry begins to develop direct-reduction iron (DRI) technologies as part of its decarbonisation strategy, which will increase future demand for high-grade DR-grade pellets. Companies like Vale are already onto this part of the business and the article (Figure 25) from Reuters clearly show that the company is more than talk. Figure 25: An article reporting what Vale is doing to create a "greener" iron ore business. 7.01 What Are Direct Reduction (DR) Pellets? Direct Reduction (DR) (Figure 26) pellets are high-grade iron ore pellets specifically engineered for use in Direct Reduced Iron (DRI) processes. Unlike traditional blast furnace feed (sinter or standard pellets), DR pellets are designed for gas-based reduction using natural gas or hydrogen rather than coke. Figure 26: Iron ores prior to reduction within the direct reduction process. (source: Fraunhofer IKTS) In a DRI plant, iron ore is reduced in the solid state (below melting point) using reducing gases (H₂ and CO), producing Direct Reduced Iron (DRI) or Hot Briquetted Iron (HBI) — the preferred metallic feed for Electric Arc Furnaces (EAFs). 7.01.1 Key Characteristics of DR Pellets High Fe content (typically 67%+) Very low silica and alumina Low phosphorus and sulfur High mechanical strength Uniform size and porosity These specifications are critical. Gas-based reduction is far less forgiving than a blast furnace. Impurities directly affect metallisation rates, energy consumption, and steel quality. 7.02 How Are DR Pellets Produced? Producing DR-grade pellets (Figure 27) is something that I have found in my research that does show in a schematic way the whole palletisation process. I acknowledge that this is just one flowsheet and there will be more newer and modified versions. However, this should give readers a simplistic view of the process and a real world version from one of Vale's operations. Figure 27: Schematic flowsheet of the pelletizing plants of Complexo de Tubarão (Vale) with the HPGR operating in regrinding pre-pelletizing (CAMPOS et al., 2019a). (source: Campos, Túlio. (2023). A NOVEL HPGR ONLINE MODELING AND SIMULATION APPROACH COUPLED WITH REAL-TIME INFORMATION.) 7.02.1 Step-by-Step Process Mining & Crushing Magnetite ore is mined and crushed. Beneficiation Magnetic separation upgrades Fe content. Silica, alumina, and other gangue minerals are removed. Result: High-grade magnetite concentrate (often 68–70% Fe). Pelletising Concentrate is mixed with binders (usually bentonite). Rolled into green pellets using disc or drum pelletisers. Induration Pellets are fired at high temperatures (~1,250–1,350°C). This hardens the pellets and develops required strength and porosity. Quality Control Testing for compression strength, reducibility, swelling index, and metallisation potential. 7.03 Why DR Pellets Matter For decades, the global steel industry has relied heavily on the blast furnace–basic oxygen furnace (BF-BOF) route. This traditional pathway consumes large volumes of iron ore fines, coke, and sinter. However, the steel industry is now under increasing pressure to reduce carbon emissions, and this is where Direct Reduction (DR) pellets become critically important. DR pellets represent a specialised type of iron ore pellet designed specifically for direct reduction iron (DRI) processes, which are increasingly used in electric arc furnace (EAF) steelmaking. As the world transitions toward low-carbon steel production, DR pellets are emerging as one of the most strategically important raw materials in the iron ore value chain. 7.03.01 Decarbonisation of Steel (source: ScienceDirect) The global steel industry produces roughly 7–9% of global CO₂ emissions. The traditional blast furnace route emits large amounts of carbon because it relies on coking coal as both fuel and reductant. Table 2: Direct Reduction offers a lower-carbon pathway: Because DR furnaces require high-purity iron feed, DR pellets are essential to making this transition possible. Steelmaking Route CO₂ Intensity Blast Furnace ~1.8–2.2 t CO₂ per tonne steel Natural Gas DRI + EAF ~1.2 t CO₂ Hydrogen DRI + EAF <0.2 t CO₂ In simple terms: No DR pellets → No large-scale green steel. 7.03.02 EAF Growth Electric Arc Furnaces are expanding globally, especially in: Europe North America Middle East These plants need consistent, high-grade feedstock — and DR pellets are essential. 7.03.03 Premium Pricing DR-grade pellets command price premiums over: 62% Fe fines Standard blast furnace pellets The market increasingly differentiates based on Fe grade and impurity profile. 7.04 Not All Magnetite Deposits Can Produce DR Pellets This is an important part of the process and this is also important for several projects that are in the DR-space. This phenomenon is like we can all be a King but we will never be one because we are not born within the family tree. Hence, it is important understand that Just because a project is “magnetite” does not mean it can produce DR-grade pellets. 7.04.01 Why? Some magnetite concentrates cannot reach 67%+ Fe without excessive grinding cost. Elevated silica or alumina can persist after beneficiation. Certain deposits contain deleterious elements (P, S, TiO₂). Grinding to ultra-fine sizes may create pelletising issues. Mineralogy influences pellet reducibility and swelling. 7.04.02 Ore body geology determines pellet quality. Projects must demonstrate: Consistent concentrate chemistry Suitable grind size distribution Metallurgical test work confirming DR specifications Induration performance Without the specifications required to be a DR capable magnetite source, “DR - Ready” is just marketing. This means: Magnetite deposits are often preferred because beneficiation can produce very high grades. Many hematite deposits cannot reach DR pellet specifications without significant processing. This is why many smaller companies targeting DR markets are developing: magnetite projects beneficiation flowsheets pellet plants Table 3: Suitable Ore Types Note that this is why This is why many DR pellet projects focus on magnetite deposits. Magnetite beneficiation can produce concentrates >68–70% Fe, which are ideal for DR pellet feed. Ore Type DR Pellet Potential Magnetite concentrates Excellent High-grade hematite (>67% Fe) Good Typical Pilbara hematite fines Generally unsuitable 7.04.03 Why This Sector Is Emerging Three major trends are driving DR pellet demand: Electric Arc Furnace steelmaking growth Hydrogen-based steel production Decarbonisation of steel DRI processes need high-purity iron units, which makes DR pellets critical. The Middle East, Europe and the United States are already relying heavily on DR pellets. 8.0 Global Companies Working on DR Pellets - The Big Boys 8.01 Vale S.A. - Brazil World’s largest pellet producer. Actively developing DR-grade pellet feed. Pushing “green briquette” concepts. Positioned to supply Europe’s hydrogen DRI push. Vale’s Carajás ores are naturally high grade — a structural advantage. 8.02 LKAB - Sweden High-grade magnetite producer. Major supplier of DR pellets to Europe. Central to the HYBRIT hydrogen steel initiative. Vertically integrated model from mine to pellet. Figure 28: One of LKAB's main products is iron ore pellets, a small ball consisting of a mixture of refined iron ore, oxides, and additives. The company is now increasing its production volume of iron ore pellets in Kiruna and slowing the transition to carbon dioxide-free sponge iron production in the northern Swedish city. Fredric Alm Swedish magnetite mineralogy is ideal for DR concentrate production (Figure 28). 8.03 ArcelorMittal (AMMC Canada) - Canada Produces high-grade concentrate and DR pellets. Strategic supplier to North American EAF steelmakers. Leveraging Quebec’s magnetite deposits. 8.04 Cleveland-Cliffs Inc. - US Supplies DR-grade pellets domestically. Operates an HBI plant in Toledo. Integrated into US steel decarbonisation. 8.05 Fortescue Limited - Australia Iron Bridge magnetite project. Aiming for high-grade concentrate. Tied to green hydrogen ambitions. Still proving long-term concentrate consistency. Australia has abundant magnetite, but not all deposits achieve DR specifications economically. 9.0 Small Iron Ore Companies Targeting the Direct Reduction Pellet Market The shift toward Direct Reduction (DR) pellets is creating a new niche in the iron ore sector. Large producers dominate the current supply, but several smaller or emerging companies are positioning themselves to supply DR-grade concentrate or DR pellets, particularly because green-steel producers require high-purity iron units. Below is a review of smaller iron ore companies working toward the DR pellet or DR pellet feed market. 9.01 Tacora Resources – Magnetite DR Pellet Producer Tacora Resources is a smaller North American iron ore producer focused on high-grade magnetite concentrate suitable for DR pellets. Region: Labrador Trough Province: Newfoundland and Labrador, Canada Nearest town: Wabush Mining district: Western Labrador / Quebec–Labrador Iron Ore Belt Figure 29: Scully Mine Location located in North-West Tasmania, Australia. (source: Mining Services) Key Location Context The mine sits in the Labrador Trough, one of the world’s major iron ore districts. It is close to other historic operations such as those around Labrador City and the large deposits mined by ArcelorMittal and Champion Iron. The region is connected to the port of Sept‑Îles in Quebec via the Quebec North Shore and Labrador Railway, which is used to ship iron ore concentrate to global markets. Key points Operates the Scully Mine Produces 65–67% Fe concentrate Material is sold to pellet plants producing DR-grade pellets Beneficiation upgrades lower-grade ore to high-purity concentrate Tacora sits in the North American DR supply chain, feeding pellet plants that supply electric arc furnace steelmakers. 9.02 Grange Resources – Magnetite Concentrate for DR Pellets Grange Resources Limited operates one of the few integrated magnetite pellet operations in Australia. Key points Owns the Savage River Mine Pellets produced at the Port Latta Pellet Plant Pellet grade around 65–66% Fe Located in North-West Tasmania, Australia Figure 30: Location of the Savage River Iron ORe Mine in Australia. (source: Hancock, E. and Wynn, E. Savage River underground project update. 9th International Conference and Exhibition on Mass mining, Kiruna, Sweden 17-19 September 2024) Although much of the product goes into blast furnaces, magnetite pellets are technically suitable for DR processes depending on chemistry. Grange demonstrates that magnetite beneficiation + pelletisation is the pathway most juniors are exploring for the DR market. 9.03 Kamistiatusset (Kami) Iron Ore Project – DR Pellet Feed Concept Champion Iron Limited (“Champion” or the “Company”) acquired the Kamistiatusset Iron Ore Project (“Kami” or “The Project”) on April 1, 2021. Figure 31: Location of the Kami Iron Ore Project. (source: Champion Iron Limited). Kami is located southwest of the towns of Wabush and Labrador City in Newfoundland & Labrador and east of Fermont, Québec. The Project is situated 21 km southeast of the Company’s operating Bloom Lake mine, in the Labrador Trough geological belt in southwestern Labrador, near the Québec border. Key points Magnetite deposit Target 65–68% Fe concentrate Intended supply for North American pellet plants The project has gone through restructuring but remains a reference case for DR pellet-focused development projects. 9.04 Magnetite Mines – DR Pellet Feed From Razorback Magnetite Mines Limited is one of the most prominent junior DR pellet feed developers. Project: Owner: Magnetite Mines Limited (ASX: MGT) Location: Braemar Iron Formation, near Hawker, South Australia Key points Concentrate grade ~68–70% Fe Designed specifically for DR pellet feed Targeting green steel markets Located 240 km from Adelaide, Australia. Figure 32: Location of the Razorback Iron Ore Project. (source: Magnetite Mines). Ore Grade Run-of-Mine Ore Average in-situ grade: ~16–18% Fe magnetite mineralisation This is typical of large magnetite Banded Iron Formation (BIF) deposits, where beneficiation is required. Concentrate Grade After grinding and magnetic separation: Target concentrate: ~68.8% Fe magnetite concentrate Impurity levels: Very low silica Very low alumina Very low phosphorus This quality is designed to meet DR pellet feed specifications. Project Scale JORC Resource: ~5 billion tonnes of magnetite mineralisation. Planned production: ~5 million tonnes per annum of high-grade concentrate in the initial stage. Mine life: potentially >100 years due to the scale of the resource. This makes Razorback one of the largest undeveloped magnetite iron ore resources in Australia. Direct Reduction (DR) Strategy The Razorback project is specifically positioned to support low-carbon steel production. Key elements of the DR strategy: Produce DR-grade magnetite concentrate (~68–70% Fe). Supply pellet feed for Direct Reduction (DR) iron plants. Target customers operating Electric Arc Furnace (EAF) steelmaking routes. Align with green steel initiatives in Asia, Europe, and the Middle East. 9.05 Champion Iron – Premium DR Pellet Feed Supplier While larger than most juniors, Champion Iron Limited is still considered a mid-tier producer and is a key supplier of DR pellet feed concentrate. Figure 33: Location of the Bloom Lake Iron Ore Project. (source: Champion Iron Limited). Project: Bloom Lake Mine Key points Concentrate grade ~66–69% Fe Low impurities Material used in pellet plants producing DR pellets Champion Iron is increasingly positioning itself as a premium feedstock supplier for green steel. 9.06 Iron Bear Resources Limited – Iron Bear Iron Ore Mine - Direct Reduction Strategy Project: Iron Bear Iron Ore Project Owner: Iron Bear Resources Limited Location: Labrador Trough, near the Québec–Labrador border, Canada Deposit Type: Magnetite iron formation Ore Grade and Product Deposit type: Magnetite banded iron formation (BIF). Run-of-mine grade: typically around 25–30% Fe. Magnetite ore is expected to be beneficiated through grinding and magnetic separation. Target concentrate: 69–71% Fe magnetite concentrate Ultra low impurities Low silica Low alumina Low phosphorus This type of concentrate is suitable for premium iron products and pellet feed. Direct Reduction (DR) Strategy Iron Bear Resources is being evaluated specifically with Direct Reduction (DR) iron production in mind. Key strategy elements: Produce high-grade magnetite concentrate suitable for DR pellets. Target DR-grade pellet feed (71% Fe). Designed to supply Electric Arc Furnace (EAF) steelmaking. Aligns with low-carbon steel production strategies. Strategic Advantages Located in the Labrador Trough, an established iron ore mining district. Magnetite concentrate allows consistent high-grade product. Potential to produce DR pellet feed and DR pellets, which is increasingly demanded by decarbonising steelmakers. Positioned to supply future green steel supply chains in North America and Europe. 10.0 Strategic Observations — The Samso View DR pellet capacity is structurally constrained.High-grade ore bodies are rare. Geology now matters more than scale.Grade consistency and impurity control determine long-term competitiveness. The green steel narrative is real — but selective.Only a subset of global iron ore projects qualify. Future premiums will widen.62% Fe fines vs 67%+ DR feed could see structural divergence. Test work is everything.Investors must look beyond headlines: What is the grind size? What is the silica level after beneficiation? Has reducibility been tested? Is induration proven? 11.0 Final Thoughts The shift toward DRI is not simply a steel story — it is an ore body story. The companies that control consistent, scalable, DR-grade magnetite concentrate will hold strategic leverage in the decarbonising steel industry. But the market must understand: Magnetite ≠ DR pellet. Only certain mineral systems, with the right metallurgy and economics, will make that leap. And that is where the next iron ore differentiation cycle begins. 12.0 Samso Concluding Comments Iron ore consumption since the 1960s reads like a story of steel becoming the physical language of economic development. The numbers show steady growth, then pauses, then a once-in-a-generation surge that lifted the whole system into the billion-tonne era. The producer timeline matters because iron ore is not just a rock story—it’s an infrastructure story. The miners who mattered most were the ones who built repeatable, scalable logistics and then kept product quality consistent enough for steelmakers to plan around. The Transition to Cleaner Iron ore The last few years look like a transition chapter rather than an ending. Global steel output is still sitting near record levels, but the growth engine appears to be shifting geographically, and that will shape which supply chains feel “closest” to the next wave of demand. For me, the current general narrative of a iron ore supply disruption in terms of a potential increase in supply affecting the current producers is unfounded. There may be more disruption currently with them potential escalation of hostilities in the US vs. Iran. One may say that the hostilities may be a catalyst for a increase demand for iron ore and take away the Simandou effect. Making Green Gestures What is more important is for investors to take note of the Direct Reduction Iron factor. If you look at the need to participate in the "green" effect that is encapsulating global economies, the obvious one is to create products that the steel mills can use to increase their part in the decarbonisation process. The big players are all preparing for the switch and the vendors of magnetite projects prone for beneficiation to higher iron grades are all slowly rubbing their hands. There is a concerted effort to seek magnetite projects that will allow the beneficiation process to achieve Direct Reduction status. The companies with projects in the Labrador Trough seem to be making the most waves and this is going to create a this area into the next Pilbara Money Printer. For a start, companies such as Champion Iron Limited , Iron bear Limited and Tacora Resources should be on the watchlist. The Direct Reduction Iron Players Champion Iron stands out as the clear leader, but the unique partnership between Iron Bear Limited and Vale is the one to watch. With a market capitalisation of around AUD $50M as of March 8, 2026, Iron Bear Limited appears to be an incredible bargain, considering their JORC Resource of approximately 16.66 billion tonnes of magnetite mineralization, with a potential Direct Reduction concentrate grade exceeding 70% Fe and a SiO2 grade of 1-1.2%. As a shareholder of Iron Bear, I am particularly interested in this subject. The fact that Champion Iron is also categorising their magnetite in this way indicates that this is not a ground breaking process. Iron Bear Resources Limited is not reinventing the wheel with their efforts. Is Simandou Too late The coming on of a haematite high-grade iron ore deposit may just be too late. This will be a process for time to see if there is going to be a transition from high-grade haematite ore to high-grade magnetite ore that can be made into the Direct Reduction Pellets. 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Australian-Domiciled Iron Ore Developer Advancing the Iron Bear Magnetite Project in the Labrador Trough, Canada Samso Insights ASX: IBR Iron Ore Development Labrador Trough, Canada Iron Bear Resources Ltd (ASX: IBR) is advancing a magnetite iron ore project in a jurisdiction that has been producing iron ore since 1954, and that hosts some of the world's most established direct-reduction-grade producers. Our fascination as a shareholder with the Iron Bear story can be measured by three attributes that matter most for a development-stage magnetite story. The first is scale that is genuinely global, the second, metallurgical results that demonstrate a Direct Reduction-grade concentrate is achievable at industrial pilot scale, and finally, one of the most important parts, infrastructure proximity that is not theoretical but operational. The Iron Bear project sits within 35km of an open-access heavy-haul railway connected to the Sept-Îles and Pointe-Noire iron ore export ports, with access to low-cost renewable hydroelectric power. The 13.6 billion tonne Mineral Resource which 4.5 billion tonnes is now Indicated , technically places the project among the largest magnetite endowments held by an ASX-listed developer. The 71.0% Fe and 1.2% SiO₂ DR-grade pilot concentrate result is a number that puts Iron Bear's potential product specification within the upper band of what the global decarbonisation steel transition is calling for. Indicated Mineral Resource Lifts 114% to 4.5Bt at 29.5% Fe, Strengthening the Foundation for the Iron Bear Project in the Labrador Trough Samso Insights | ASX: IBR | Source: Iron Bear Resources Limited ASX Release, 12 May 2026 Introduction Iron Bear Resources Limited has released its 2026 Mineral Resource Estimate Update for the Iron Bear Iron Ore Project in the Labrador Trough region of Newfoundland and Labrador, Canada (Figure 1). Figure 1: Iron Bear - Regional Access and Infrastructure. (source: Iron Bear Resources Limited) The headline number from the announcement is the 114% increase in the Indicated category, from 2.1 billion tonnes in the previous April 2024 estimate to 4.5 billion tonnes in the current estimate, at a grade of 29.5% total Fe and 20.6% magnetic Fe. The total Indicated and Inferred Mineral Resource sits at 13.6 billion tonnes containing 30.0% total Fe and 20.7% magnetic Fe, reported at a 12.5% magnetic Fe cut-off grade. The total resource has decreased by 18% from the previous estimate, which the company attributes to revised geological interpretation, updated pit optimisation parameters, and application of updated modifying factors. Readers should see the significance of this update in the potential methodology shift behind it. The 2024 Indicated category was defined by reference to a "30-year pit shell". The 2026 Indicated category is defined by reference to closer-spaced drilling supported by an optimised pit shell that satisfies Reasonable Prospects for Eventual Economic Extraction (RPEEE) requirements. The reduction in the total resource is therefore not a reflection of less mineralisation — it is a reflection of a stricter application of constraints. The trade-off is a much larger Indicated category, which is the category that can support more advanced technical studies and is the foundation from which Ore Reserves are ultimately derived. For a development-stage company, this is a meaningful methodological maturation. Iron Bear Resources Limited Mineral Resource Estimate The Mineral Resource update is supported by an updated geological interpretation developed in conjunction with Snowden Optiro, integrated with field mapping completed by IOS Géosciences across 284 stations during the 2025 summer season, and underpinned by four phases of pilot-plant scale metallurgical test work at Corem in Canada. The metallurgical work confirms that the Iron Bear deposit can produce a Direct Reduction-grade concentrate of 71.0% Fe and 1.2% SiO₂ at an overall magnetic Fe yield of 88.8%, and a Blast Furnace-grade concentrate of 69.1% Fe and 3.5% SiO₂ at a magnetic Fe yield of 97.5%. These are pilot-plant production-run averages, not single-day peaks, and are the basis on which the resource has been optimised for RPEEE. Highlights 2026 Mineral Resource Estimate Detail Iron Bear Mineral Resource Estimate at 12.5% Magnetic Fe Cut-Off (Effective Date 5 May 2026) Table 1: The Mineral Resource Estimate. (source: Iron Bear Resources Limited ASX Release, 12 May 2026 (Table 2). Inferred Mineral Resources have a lower level of geological confidence and must not be converted to Ore Reserves and do not have sufficient confidence to support economic studies.) Global Peer Comparison How Iron Bear's Magnetite Grades Compare to Major Global Magnetite Operations and Developments Magnetite iron ore deposits are not assessed in the same way as direct-shipping hematite ores. The head grade and the in-ground iron percentage is typically lower than for hematite deposits, because magnetite ores are designed to be processed through grinding and magnetic separation into a high-grade concentrate. What matters in a magnetite assessment is the combination of three things: the in-ground magnetic Fe percentage (which drives recovery and tonnes-to-concentrate ratio), the concentrate Fe specification achievable from metallurgical work, and the impurity profile (particularly SiO₂ and Al₂O₃) of the final concentrate. The table below benchmarks Iron Bear against a selection of major global magnetite operations and developments on those parameters. Table 2: Global magnetite deposit comparisons. (sources: Public company disclosures, JORC/NI 43-101 reports, Geoscience Australia Australian Resource Reviews, S&P Global Commodity Insights, and operator websites accessed May 2026. Concentrate specifications refer to production-run or pilot-plant averages; in-situ head grades refer to current Mineral Resource or Reserve grades at stated cut-offs. Iron Bear concentrate specifications are pilot-plant production-run averages (Corem Phase 4).) The relevant observation from this comparison is not the in-ground head grade which for a magnetite BIF is always going to fall in a range that reflects the geological character of the host rock. The Iron Bear in-ground grade of 29.5% Fe / 20.6% magnetic Fe sits within the typical range for Lake Superior-type taconite operations globally, comparable to Sino Iron at ~28-30% Fe and the Mesabi Range taconite operations at ~25-30% Fe. What separates Iron Bear from the lower-grade end of this peer group is the concentrate specification. A 71.0% Fe DR-grade concentrate at 1.2% SiO₂, with alumina below analytical detection limits, is at the upper specification band of the global magnetite industry. It is comparable to what Bloom Lake (Champion Iron) is targeting from its DR-grade pellet feed upgrade project at 69% Fe, and approaches the LKAB Kiruna premium pellet feed specifications. Readers should remember that the concentrate purity is a function of both the favourable mineralogy at Iron Bear (low alumina, low phosphorus, low manganese) and the flow sheet's inclusion of reverse flotation and tertiary grinding to break apart any composite magnetite-quartz particles. Table 3: Top 10 Global Iron Ore Producers by Proven & Probable Reserves. Note that the top 4 alone account for over 80% of reserves among the top 10, which is a concentration that defines long-term supply dynamics. (Source: Vale, BHP, Wikipedia, Rio Tinto, Champion Iron, Cleveland Cliff, LKAB, ArcelorMittal Anglo America) What is very interesting is that the global concentration of iron ore producers as shown in Table 3 show that the top 4 producers in a list of a global top 10 list of producers, account for over 80% of reserves. This is very important when you take into context that Iron Bear Resources Limited has Vale as a funding partner. For the shareholders of Iron Bear Resources, this is very important as the upcoming release of the PFS is going to need a Tier-1 partner to fund the Iron Bear project. The Iron Bear project is not a small project, it is in the scale of all the major iron projects. This is a very important fact to remember because investors could be blindsided by the very low market capitalisation of Iron Bear Resources Limited. Last 5 Major Iron Ore Projects Developed (to May 2026) Ranked by scale of investment and significance, with all figures cross-checked against company disclosures and recent reporting up to early 2026: 1. Simandou — Guinea Operators: Rio Tinto SimFer (Blocks 3 & 4) and Winning Consortium Simandou / Baowu (Blocks 1 & 2) Ownership of SimFer: Rio Tinto 53%, Chalco Iron Ore Holdings 47% (with Guinea Government holding 15% in the mining concession company) CAPEX: Total project investment of approximately US$20 billion (Wikipedia/industry summary including rail and port). The Simfer joint venture alone has a capital funding requirement of approximately US$11.6 billion, of which Rio Tinto's share is approximately US$6.2 billion. Status: First shipment left Guinea in December 2025. Ramping up over 30 months to 60 Mtpa from the SimFer mine, with combined Simandou (SimFer + WCS) capacity up to 120 Mtpa. Grade: ~65% Fe high-grade hematite — described as the world's largest untapped high-grade iron ore deposit. 2. Onslow Iron — Pilbara, Western Australia Operator: Mineral Resources Limited (MinRes, ASX: MIN) on behalf of the Red Hill Iron Joint Venture JV Partners: MinRes (60.3%), China Baowu Steel Group, AMCI, POSCO CAPEX: Approximately A$3 billion (~US$2 billion). MinRes subsequently sold a 49% interest in the dedicated haul road to Morgan Stanley Infrastructure Partners for total expected proceeds of A$1.3 billion. Status: First ore on ship May 2024, ahead of schedule. Reached nameplate capacity of 35 Mtpa in 2025. Expected mine life of more than 30 years. Grade: Hematite Direct Shipping Ore 3. Iron Bridge — Pilbara, Western Australia Operator: Fortescue (FMG Magnetite Pty Ltd) JV Partners: FMG Magnetite (69%, owned by Fortescue and Baosteel) and Formosa Steel IB (31%) CAPEX: US$3.9 billion total (Fortescue share approximately US$3.0 billion). The project blew out from an original estimate of US$2.6 billion at FID in 2019. Status: First magnetite production May 2023. Ramp-up has been slower than planned — revised guidance now sees nameplate of 22 Mtpa not reached until FY2028 (a full five-year ramp from first production). Grade: 67%+ Fe high-grade magnetite concentrate 4. Western Range — Pilbara, Western Australia Operator: Rio Tinto JV Partners: Rio Tinto (54%), China Baowu Steel Group (46%) CAPEX: US$2 billion (Rio Tinto share US$1.3 billion). Completed on time and on budget. Status: First ore processed late March 2025. Officially opened June 2025. Capacity of up to 25 Mtpa, sustaining the Paraburdoo mining hub for up to 20 years. Grade: Pilbara Blend hematite 5. Serra Sul +20 Mtpy (S11D Expansion) — Carajás, Brazil Operator: Vale S.A. CAPEX: Approximately US$2.8 billion Status: Operating licence received from IBAMA in September 2025; commissioning scheduled for the second half of 2026. As of July 2025 the project was at 77% physical progress and 57% financial progress. Capacity Add: Lifts S11D mine-plant capacity by 20 Mtpa to approximately 120 Mtpa. Grade: ~65% Fe Carajás high-grade fines Total Capital Deployed Across These Five Projects Approximately US$30 billion in headline project investment (using the lower Simfer-only figure of US$11.6 bn for Simandou rather than the total US$20 bn integrated figure). Thoughts To Ponder The CAPEX figures highlight just how capital-intensive new iron ore development has become. The smallest of these — Western Range at US$2 bn — is a sustaining brownfield project that leveraged existing Paraburdoo infrastructure. Simandou, the largest, required US$20 billion in part because it had to build 622 km of greenfield railway and a deep-water port from scratch. Infrastructure is the variable that swings project cost most heavily. The two magnetite projects on the list (Iron Bridge and the still-developing context of what Iron Bear faces) tell their own story. Iron Bridge ran from US$2.6 bn to US$3.9 bn through construction and is now in a multi-year slow ramp. That's the lesson that's most relevant to the Iron Bear context. This is why the infrastructure proximity of the Labrador Trough (existing rail, existing ports, existing hydro) is genuinely material to any project economics in that region versus building greenfield in the Pilbara. The Kami Project, which I referenced in a previous Samso Insight (see below) as a development-stage Labrador Trough peer, is currently estimated at approximately US$4 billion to bring into production is the most useful as a benchmark for what an undeveloped DR-grade magnetite project of similar scale might require. The Australian Magnetite Scene The Australian magnetite industry has been described in industry commentary as having a "checkered past" — Sino Iron and Karara are well-documented examples of major cost overruns, slow ramp-ups and challenging economics. The lesson from those operations is that low head grade combined with high beneficiation cost can produce a project that struggles to compete with hematite Direct Shipping Ore producers. What makes A Magnetite Project Work The variable that determines whether a magnetite project is commercially viable is whether the concentrate it produces commands sufficient premium to offset the additional processing cost. That premium is being increasingly driven by demand for DR-grade pellet feed (above 67% Fe, with low silica and alumina) from electric arc furnace (EAF) and hydrogen-based direct reduction iron (DRI) steelmaking — the routes that are central to the global steel industry's decarbonisation pathway. Iron Bear's pilot-plant concentrate specifications place it within the DR-grade window that this consistent to this market segment. Regional Peer Comparison Iron Bear in the Context of Labrador Trough and North American Magnetite Peers The Labrador Trough is one of the most established iron ore regions in the world, with continuous production dating to 1954. The region currently produces approximately 50 million tonnes per annum across producers including Rio Tinto's Iron Ore Company of Canada (IOC) operation at Labrador City, ArcelorMittal's Mont-Wright operation in Quebec, Champion Iron's Bloom Lake mine, and other regional producers (Table4). The Iron Bear project sits within the same geological belt , the Sokoman Formation, that hosts these operations, but with its own particular structural characteristic: the deposit has been thickened by repeated thrust faulting that has stacked the mineralised stratigraphy across more than 500 vertical metres of section. The table below benchmarks Iron Bear against its Labrador Trough and adjacent North American magnetite peers. Table 4: An attempt to create a Labrador Trough peer comparison. (sources: Champion Iron corporate filings, Rio Tinto Labrador Iron Ore (LIORC) disclosures, Champion Iron / Nippon Steel / Sojitz Kami Project partnership announcements, ArcelorMittal Mining Canada disclosures, and Cleveland-Cliffs operational reports. Comparison is for illustrative context only and does not represent equivalent reporting standards across all entries.) The Labrador Trough peer comparison clarifies what Iron Bear is and what it is not. Iron Bear is not yet a producer. Bloom Lake, IOC, and Mont-Wright are all operating mines that have been shipping concentrate for decades or in Bloom Lake's case, they have completed a major Phase II expansion and are now investing in a DR-grade upgrade. The peer that most resembles Iron Bear's current stage of development is the Kami Project, which is also a development-stage DR-grade-targeted project, also in the Labrador Trough, also without a final investment decision. Kami's announced partnership with Nippon Steel and Sojitz provides a useful benchmark for the scale of investment that DR-grade Labrador Trough development represents, which is that the Kami partners have indicated up to US$490 million of partner funding ahead of Champion's pro-rata contribution, and the project has been described as requiring an investment in the order of US$4 billion to bring into production. What Iron Bear does have in common with the Labrador Trough producers, and what is distinct from the Australian magnetite peer group, is the geological character of the mineralisation. The deposit is a Lake Superior-type banded iron formation hosted in the Sokoman Formation — the same stratigraphic unit that hosts Bloom Lake, IOC's Carol Lake, and the historical Schefferville direct-shipping ores. The 2025 mapping conducted by IOS Géosciences confirmed three main NW-SE repetitions of the stratigraphic package in the southeastern portion of the property, identifying previously unrecognised iron formation between Boot Lake and Burnetta Lake and north of Nash Lake. The 2026 geological interpretation incorporates the structural complexity that is characteristic of the eastern Labrador Trough, where thrust faulting has repeatedly stacked the iron formation. This is the same geological process that has produced the multi-billion-tonne deposits underpinning Bloom Lake, Mont-Wright, and IOC. The comparison that matters here is geological provenance. Iron Bear's host rock is the same as the host rock for the established producers; its DR-grade concentrate specification falls within the same band as the regional producers; and its proposed processing flowsheet uses techniques that are well-established in Labrador Trough operations. Figure 2: Iron Bear - Regional Geology and Historic Drilling. (source: Iron Bear Resources Limited) Metallurgical Test Work — Pilot Plant Production Pilot Plant Concentrate Production: Corem Phase 4 Confirms the DR-Grade Product Specification The 2026 Mineral Resource estimate is supported by four phases of metallurgical test work conducted at Corem in Canada, culminating in Corem Phase 4 — a 17-tonne resource-grade composite that produced bulk customer samples and informed the pellet plant thermal profile design. The Phase 4 production-run results have been used as the basis for the resource modelling factors and pre-feasibility study design factors. The table below summarises the production-run concentrate chemistry across the four phases: Table 4: Metallurgical Test Work - Pilot Plant Production. (source: Iron Bear Resources Limited ASX Release, 12 May 2026 (Tables 8 and 9). Phase 4 results were obtained as five-day continuous pilot plant averages and are used as the basis for resource modelling and PFS design factors. Alumina (Al₂O₃) grades in both BF and DR concentrates are below analytical detection limits.) The progression from Phase 1 to Phase 4 demonstrates that the concentrate specifications are reproducible across different feed grades and that the addition of column flotation in Phase 4 — replacing conventional reverse flotation — has materially lifted DR concentrate magnetic Fe recovery from 80.7% in Phase 1 to 88.8% in Phase 4. The presence of an Isamill as a tertiary grinding circuit, introduced in Phase 4, was specifically added to break apart any larger composite particles of magnetite and quartz observed in the +45 micron size fraction. The technical implication is that the flowsheet is converging on a configuration that delivers a consistent DR-grade product at high recovery — which is the technical foundation on which a magnetite project's commercial case is built. Management Commentary What the Company's Leadership Said About the Mineral Resource Update Paul Berend, Managing Director and CEO of Iron Bear Resources, characterised the updated Mineral Resource as an important and exciting milestone for the project. His commentary focused on the significance of the Indicated Resource increase and on what it represents for the foundation of the company's ongoing technical studies. The Pre-Feasibility Study is being led by global engineering firm Hatch, and the resource update is the technical input that feeds the optimised mine plan associated with that study. "This Mineral Resource Update is an important and exciting milestone for the Iron Bear project. We now have an indicated mineral resource of 4.5 billion tonnes which strengthens the foundation for ongoing technical studies." — Paul Berend, Managing Director and CEO, Iron Bear Resources Limited The technical detail of the resource update is supported by the work of independent consultants. The Mineral Resource Estimate has been prepared by Mr Michael Andrew FAusIMM, a full-time employee of Snowden Optiro, who is the Competent Person responsible for the estimate. The metallurgy and processing information has been reviewed and compiled by Mr Paul Vermeulen MAusIMM, MAIST, a Director of Vulcan Technologies Pty Ltd. Both consultants have provided sign-off in accordance with the JORC Code (2012) reporting standards. Near-Term Milestones to Watch What Investors Should Monitor Following the 2026 Mineral Resource Update Near-Term Milestones to Watch Samso Concluding Comments Putting the Iron Bear Mineral Resource Update in Context Investors and potential investors should look at the 12 May 2026 ASX release from Iron Bear Resources as a meaningful technical step. What this meaningful step is the 114% increase in Indicated Resource. The 2024 Mineral Resource defined the Indicated category by reference to a "30-year pit shell". The 2026 Mineral Resource defines the Indicated category by reference to drill spacing, supported by an optimised pit shell that incorporates RPEEE constraints and surface exclusion zones. This is a stricter approach. It is also the approach that is more typically applied at the pre-feasibility stage of project development. The Indicated category has doubled under a stricter methodology rather than shrinking, which in most cases is the opposite. It reflects the closer-spaced drilling at the heart of the resource, supported by the structural reinterpretation that came out of the IOS Géosciences mapping work and the Snowden Optiro modelling (Figure 3). Figure 3: Preliminary Geological Map (LHS) vs Model (Middle) vs Geophysics comparison (RHS) at Iron Bear The peer comparison context is what gives the resource update its commercial dimension. A 4.5 billion tonne Indicated Resource is simply a very large resource, regardless of where it sits. But the value of that resource is determined by what can be produced from it, and the Corem Phase 4 metallurgical work has provided the answer that matters most: a 71.0% Fe DR-grade concentrate at 1.2% SiO₂ with alumina below detection limits, at 88.8% magnetic Fe recovery, produced from a 17-tonne pilot-plant production run. That concentrate specification places Iron Bear within the upper specification band of the global magnetite industry, alongside Bloom Lake's planned 69% Fe DR-grade upgrade, the LKAB Kiruna pellet feed product, and the Kami Project's targeted 67.5%+ Fe DR-grade specification. The difference between a 65% Fe blast furnace product and a 71% Fe DR-grade product is not marginal in commercial terms — it is the difference between selling into the conventional integrated mill market and selling into the decarbonisation steel market where premium pricing is established and growing (See the Samso Insight below). Figure 4: Examples of DR Pellets. The infrastructure context is the third leg of the assessment. Magnetite projects globally have struggled, where the infrastructure case has been built on assumptions rather than operational reality. Karara and Sino Iron in Western Australia both had to build new rail, port and water infrastructure to support magnetite production. In terms of accounting, these are capital line items that materially affected the cost of those projects. The Iron Bear project sits within 35km of an existing open-access heavy haul railway that is currently being used by Rio Tinto's IOC, ArcelorMittal, Champion Iron, Tata Steel and Tacora to ship approximately 50 million tonnes per annum of iron ore concentrate to the Sept-Îles and Pointe-Noire ports. The rail line is operating. The ports are operating. The power is available from Newfoundland and Labrador's hydroelectric grid which is the same Churchill Falls hydroelectric system that has historically underpinned the regional industrial base. This is the operational infrastructure case that Australian magnetite projects have generally lacked. Iron Bear is a development-stage company that has market capitalisation of AUD $62M (as of 14th May 2026). The Pre-Feasibility Study is still in progress and should be primed to be release soon. How many companies at this stage is valued at this range? For investors watching this story, the question is no longer whether the Iron Bear project has a meaningful resource. The 12 May 2026 announcement answers that question. The question is what the published PFS will say about the capital intensity of bringing such a resource into production, what the proposed production rate will be, what the strip ratio and operating cost profile look like in study-level detail, and what the financing pathway is for what will inevitably be a multi-billion-dollar development. The Labrador Trough peer set has demonstrated that DR-grade magnetite projects of this scale can attract major partners and that is pretty much answered with Champion Iron's Kami Project partnership with Nippon Steel and Sojitz. Iron Bear has Vale as a paying partner now. Previous Samso News Coverage Samso has followed Iron Bear Resources (formerly Cyclone Metals) across multiple ASX releases. The following represents our prior published coverage of the company: April 12, 2026 January 5, 2026 September 3, 2025 August 13, 2025 July 31, 2025 March 24, 2025 March 9, 2025 About Iron Bear Resources Limited (ASX: IBR) Australian-Domiciled Iron Ore Developer Advancing the Iron Bear Magnetite Project in the Labrador Trough, Canada Iron Bear Resources Limited (formerly Cyclone Metals Limited, renamed in January 2026) is an Australian-domiciled mineral development and investment company focused on advancing the Iron Bear magnetite iron ore project located in the Labrador Trough region of Newfoundland and Labrador, Canada. The project consists of ten licences totalling 7,275 hectares on 291 graticular Mineral Claims, situated approximately 30 km northwest of Schefferville, Quebec, and 1,200 km northeast of Montréal. The mineralisation is a Lake Superior-type banded iron formation of the Sokoman Formation — the same host stratigraphy that has underpinned operating mines in the region for seven decades. The company's strategy is to develop a long-life magnetite operation producing Direct Reduction (DR) and Blast Furnace (BF) grade iron ore concentrates, supported by a 1.6t to 17t pilot plant metallurgical test work programme conducted at Corem in Canada. The Iron Bear project lies within 35 km of an existing open-access heavy haul railway connected to the Sept-Îles and Pointe-Noire iron ore export ports, and benefits from access to low-cost renewable hydroelectric power. The company has received development funding support from Vale. 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