Announcement PDF 20 March 2024 GUM CREEK SCOPING STUDY ADDENDUM Inclusion of production schedule showing sequencing of resource categories Horizon Gold Limited (ASX:HRN) (“Horizon”, the “Company”) refers to its announcement dated 18th March 2024 titled “Compelling Gum Creek Scoping Study”. The announcement inadvertently neglected to include a production schedule graph showing sequencing of resource categories. This graph is included below and has been inserted on page 9 as a new “Figure 4: Annual Ore Mined (Mtpa) by Resource Category” within the original announcement and as a new Figure 7 on page 18 of the Scoping Study Report. There are no other changes to the announcement other than updating figure numbering for the insertion of the table in both sections of the announcement. For completeness the full announcement including the additional graph is attached. Mined Ore (Mt) 3.5 3.0 2.5 2.0 2.22 1.5 2.26 2.03 1.46 1.15 1.97 2.07 2.04 1.75 1.0 1.34 1.15 0.5 0.0 - 0.10 0.17 Year 0 Year 1 Year 2 0.39 0.47 Year 3 Year 4 1.02 1.18 0.75 0.21 Year 5 INFERRED Year 6 Year 7 Year 8 0.34 0.27 0.14 Year 9 Year 10 Year 11 INDICATED Figure 4: Annual Ore Mined (Mtpa) by Resource Category This ASX announcement was authorised for release by the Horizon Board. For further information contact: Leigh Ryan Managing Director +61 8 6331 6092 Horizon Gold Limited ACN: 614 175 923 Suite 8, Level 3, 47 Havelock Street, West Perth WA 6005 | PO Box 39, West Perth WA 6872 Telephone: +61 8 6331 6092 | Email: info@horizongold.com.au | Website: www.horizongold.com.au 20 March 2024 COMPELLING GUM CREEK SCOPING STUDY Key Points  The Scoping Study (“Study”) indicates that near surface open pittable gold resources at the 100% owned Gum Creek Gold Project (“Project”) will deliver compelling financial outcomes.  Projected average recovered gold production of approximately 84,000 ounces per year processed through a new 2.4 million tonne per annum gravity / CIL plant over a 10-year Life of Mine (LOM).  Initial open pit mine production target of 24.46Mt @ 1.13g/t Au for 888,000 ounces (76% Indicated, 24% Inferred) from selected deposits. “There is a low level of geological confidence associated with Inferred Mineral Resources and there is no certainty that further exploration work will result in the determination of Indicated Mineral Resources or that the production target itself will be realised.”  Robust financial metrics returned using a conservative A$2,900/oz base case pricing assumption and current industry costings:   Pre-tax cashflow of A$574M, pre-tax Net Present Value at an 8% discount rate (NPV8) of approximately A$318M, and pre-tax IRR of 31.5%. Payback period from commencement of mining of 3.0 years. Study base case gold price is approximately A$400/oz below the current spot gold price, representing significant potential upside to predicted financial outcomes. The A$3,300/oz gold price scenario returns:    Pre-tax cashflow of A$904M, pre-tax NPV8 of approximately A$548M, and pretax IRR of 45.8%. Payback period from commencement of mining of 2.1 years.  Pre-production capital cost of A$238.5M includes a new 2.4Mt per annum gravity / CIL processing plant, a new 200-person camp, and a 20% capital cost contingency.  LOM C1 cash operating cost of A$1,730/oz produced, and LOM all-in sustaining cost of A$1,931/oz produced.  Additional resource drilling to focus on expanding the shallow oxide resources excluded from the Study and potentially further enhance the positive economic outlook of the highly prospective Gum Creek Project.  Underground mining options at all deposits including Swan/Swift, Kingfisher, Omega, and Wilsons are yet to be evaluated. 1 Horizon Gold Limited ACN: 614 175 923 Suite 8, Level 3, 47 Havelock Street, West Perth WA 6005 | PO Box 39, West Perth WA 6872 Telephone: +61 8 6331 6092 | Email: info@horizongold.com.au | Website: www.horizongold.com.au ________________________________________________________________________________ Important Note - Cautionary Statement The Scoping Study referred to in this announcement has been undertaken to determine the viability of open pit mining at Horizon Gold’s Gum Creek Project in Western Australia, with processing of selected deposits to be undertaken at a new processing plant constructed at the previous Gidgee Gold Processing Plant location. The Study is a preliminary technical and economic assessment of the potential viability of the Project. It is based on low level technical and economic assessments that are not sufficient to support estimation of Ore Reserves. Further evaluation work and studies are required before the Company will be able to provide assurance of an economic development case. Of the mineral resources scheduled for extraction in the Study mine production target, approximately 76% of the resource ounces are classified as Indicated, with the remaining 24% classified as Inferred. There is a low level of geological confidence associated with Inferred Mineral Resources and there is no certainty that further exploration work will result in the determination of Indicated Mineral Resources or that the production target itself will be realised. The Company has concluded that it has a reasonable basis for providing these forward-looking statements and the forecast financial information included in this release based on the material assumptions outlined in this release. These include assumptions about the availability of funding. While the Company considers all the material assumptions to be based on reasonable grounds, there is no certainty that they will prove to be correct or that the range of outcomes indicated by the Study will be achieved. To achieve the range of outcomes indicated in the Study, pre-production funding in the order of A$238.5 million will likely be required. Investors should note that there is no certainty that the Company will be able to raise that amount of funding when needed. It is possible that such funding may only be available on terms that may be dilutive to or otherwise affect the value of the Company’s existing shares. It is also possible that the Company could pursue other ‘value realisation’ strategies such as a sale, partial sale or joint venture of the Project. If it does, this could materially reduce the Company’s proportionate ownership of the Project. Given the uncertainties involved, investors should not make any investment decisions based solely on the results of the Study. Horizon Gold has concluded it has a reasonable basis for providing the forward-looking statements included in this announcement and believes it has a ‘reasonable basis’ to expect it will be able to complete the development of the mineral resources outlined in the attached Scoping Study Report (Appendix 2). This announcement has been prepared in compliance with the JORC Code 2012 Edition (JORC 2012) and the ASX Listing Rules. All material assumptions on which the forecast financial information is based have been provided in this announcement and are also outlined in the attached JORC 2012 table disclosures. Given the uncertainties involved and listed above, investors should not make any investment decision based solely on the results of the Study. ________________________________________________________________________________ 2 Introduction Horizon Gold Limited (ASX: HRN) (Horizon or the Company) is pleased to announce the results of a scoping study that assesses the economic potential to recommence production from near surface, free milling open pittable gold resources at the 100%-owned Gum Creek Gold Project (Gum Creek or the Project) located in the Murchison Region of Western Australia (Figure 1). Gum Creek has historically produced more than 1 million ounces of gold and currently hosts a gold resource of 2.14 million ounces 1. The Project covers 519 square kilometres of granted tenure over the highly prospective and underexplored Gum Creek greenstone belt, which contains 37 open pit and three underground gold mines. The Company has considered various options to recommence gold mining at Gum Creek including mining and toll treating ore at the closest operating gold processing facilities, however it has determined that constructing and operating a new gravity / CIL processing plant is the optimum business strategy for the Project. The Study envisages an initial mine production target of 24.46Mt @ 1.13g/t Au for 888,000 ounces (76% Indicated, 24% Inferred 2) from selected deposits, with an average recovered gold production of approximately 84,000 ounces per year over a 10-year mine life, processed through a new 2.4 million tonne per annum gravity / CIL processing plant located at the previously permitted Gidgee mill site. Established infrastructure including air strip, haul roads, tailings dam, waste dumps, in-pit water resources, camp (for construction and overflow purposes) and existing ROM pads have been used in the Study and upgraded where required. Figure 1: Gum Creek Gold Project and surrounding gold resources and gold processing operations. 1 Refer to Horizon Gold Limited ASX announcement titled “19% Increase in Gold Resources at Gum Creek Project” dated 15 May 2023. There is a low level of geological confidence associated with Inferred Mineral Resources and there is no certainty that further exploration work will result in the determination of Indicated Mineral Resources or that the production target itself will be realised. 2 3 Scoping Study Summary  The Study evaluates free milling Whittle in-pit gold resources optimised using a base case gold price of A$2900/oz (+/- A$200/oz and +/-A$400/oz).  All gold resources in the Study are located on granted mining leases within the 100% owned Gum Creek Gold Project.  Only deposits with greater than 15,000 gold ounces inside Whittle pit shells from previous pit optimisation work were included in the Study, which equates to only 14 of the current 26 Gum Creek Gold Project resource areas.  Ore to be processed through a new 2.4Mt per annum gravity / CIL processing plant located at the previously permitted Gidgee gold processing site.  Existing Native Vegetation Clearing Permit could be used for clearing the proposed processing infrastructure area (processing plant), and the Swan, Swift, Eagle and Shiraz deposit areas.  Mining Proposal (ID 46008) is currently approved for the Swift deposit and the Gidgee processing infrastructure area.  Initial open pit mine production target of 24.46Mt @ 1.13g/t Au for 888,000 ounces comprised of 76% indicated and 24% inferred gold resource ounces (compliant with the JORC 2012 guidelines).  Average recovered gold production of approximately 84,000oz per year over a 10-year LOM.  LOM C1 cash operating costs of A$1,730/oz produced including:     LOM Mining: A$34.30/t milled (A$993.6/oz produced) LOM Processing: A$23.61/t milled (A$684.1/oz produced) LOM General and Administration (G&A): A$1.82/t milled (A$52.7/oz produced) LOM All-in Sustaining Costs (AISC) of A$1,931/oz produced including:   LOM Sustaining Capital: A$3.88/t milled (A$112.4/oz produced) LOM Royalties (Govt & 3rd party): A$3.05/t milled (A$88.4/oz produced)  Pre-production capital cost of A$238.5M including existing plant demolition and removal, a new 2.4Mt per annum gravity / CIL processing plant, a new 200-person camp, pit dewatering costs, and a 20% contingency.  LOM sustaining capital cost of A$94.9M including an additional Tailings Storage Facility (TSF), ongoing pit dewatering capital and Property Plant & Equipment (PP&E) costs.  Compelling financial outcomes at A$2,900/oz gold price:   Pre-tax cashflow of A$574M, pre-tax NPV8 of approximately A$318M, and pre-tax IRR of 31.5%. Payback period from commencement of mining of 3.0 years.  Study base case gold price is approximately A$400/oz below the current spot gold price, representing significant potential upside to predicted financial outcomes.  The A$3,300/oz gold price scenario returns:   Pre-tax cashflow of A$904M, pre-tax NPV8 of approximately A$548M, and pre-tax IRR of 45.8%. Payback period from commencement of mining of 2.1 years. 4  Upside to Study outcomes:  Excellent potential to extend the proposed mine life through underground mining and other processing methods.  Underground mining options at all deposits including Swan/Swift, Kingfisher, Omega and Wilsons are yet to be evaluated.  Additional shallow resource expansion drilling at the 12 resource areas not included in the study could potentially increase the resource size and gold grade of these deposits and elevate them to an economically viable status for inclusion into the mining schedule. Managing Director Leigh Ryan said: “The Study highlights the Gum Creek Project’s potential robust financial metrics for a stand-alone gold processing facility in a world class Western Australian gold jurisdiction and shows a pathway for delivering value to shareholders. The Study includes only the free milling open pittable portions of 14 of our 26 mineral resource areas and the Company is confident that through further resource drilling additional shallow oxide gold resources will be defined at the remaining 12 resources and other areas, to potentially become part of the current mine plan, extending the LOM well beyond the 10-year mine life envisaged in this Study. Almost 50% of the Study mine production target ounces are sourced from the Swan / Swift deposit which is scheduled to be mined in years 1 to 5, and over 80% of these in pit resource ounces qualify as indicated resources (compliant with JORC 2012 guidelines). This will allow for a simple, low risk mining operation to progress during the estimated 3 year capital expenditure payback period and allow ample time for mining preparations at satellite deposits to take place, and time for additional resource drilling to be completed. Existing granted clearing and mining proposals should enable a quick transition to mining at Gum Creek and once established, the processing facility will become a strategic asset for the region with the potential to consolidate some of the surrounding stranded gold assets. We’re very pleased with the results of the Study and are preparing to commence a feasibility study and other activities that further enhance the Project’s positive economics on our path to becoming the region’s next gold producer.” 5 Gum Creek Gold Resource Estimate On 15 May 2023 the Company announced an updated Mineral Resource Estimate (MRE) for the Gum Creek Gold Project of 44.45Mt @ 1.50g/t Au for 2.14 million ounces contained gold (Table 1) reported in accordance with the JORC Code (2012 Edition) and based on documentation prepared by Competent Persons as defined by the JORC Code guidelines. A summary of the current MRE is detailed in Table 1 below. The MRE contains 26 discrete deposit areas that are a mixture of open cut and underground resources. No Ore Reserves have been declared for the Gum Creek Gold Project. Table 1: Gum Creek Gold Resources as at 15 May 2023 Cut-off grade (g/t Au) Resource Date Swan/Swift OC Swan UG Swift UG Wilsons UG Howards Kingfisher OC Kingfisher UG Heron Heron South Shiraz Eagle Wyooda Snook Hawk Toedter Specimen Well Wedge Camel Bore Kearrys Psi HypernoReliance Melbourne Bitter Deep South Reliance Eagles Peak Orion Wahoo Fangio Jul-22 Jul-22 Jul-22 Jul-13 May-23 May-23 May-23 May-23 May-23 May-23 May-23 Jul-22 Jul-22 May-23 Aug-16 May-23 May-23 Jul-22 May-23 Jul-22 0.4 2.5 / 3.0* 3.0 1.0 0.4 0.6 1.5 0.6 0.8 0.4 0.8 0.8 0.8 0.6 0.5 0.8 0.6 0.8 0.6 0.8 May-23 Indicated Au Tonnes Gold (oz) (g/t) 9,980,000 301,000 2,131,000 8,064,000 621,000 359,000 330,000 720,000 2,539,000 395,000 430,000 75,000 378,000 379,000 450,000 100,000 1.09 6.91 5.33 0.82 1.77 3.48 2.11 1.79 0.70 1.94 1.56 2.57 1.28 1.47 1.24 2.08 349,500 66,900 365,000 213,100 35,400 40,200 22,400 41,400 57,300 24,700 21,600 6,200 15,500 17,900 18,000 6,700 0.6 119,000 1.73 May-23 0.6 214,000 May-23 0.6 May-23 Jul-22 Jul-22 May-23 0.6 0.8 0.8 0.6 Inferred Au Tonnes Gold (oz) (g/t) Tonnes Total Au (g/t) Gold (oz) 1.06 6.99 5.72 5.36 0.81 1.58 3.31 1.60 1.66 0.68 1.85 1.56 1.82 1.26 1.54 1.50 1.52 1.42 1.25 1.81 434,100 118,500 25,400 391,000 266,900 45,100 135,700 110,600 78,900 78,900 68,800 64,800 54,000 34,400 34,000 25,500 23,800 21,800 20,000 19,000 445,000 1.31 18,800 6,100 362,000 1.44 16,800 1.56 2,400 224,000 1.62 11,700 0.99 1.40 1.25 1.35 1,300 8,200 10,400 1,300 305,000 251,000 258,000 129,000 1.16 1.43 1.25 1.33 11,400 11,500 10,400 5,500 2,735,000 226,000 138,000 136,000 2,136,000 269,000 917,000 1,822,000 761,000 1,064,000 764,000 862,000 846,000 471,000 689,000 529,000 487,000 100,000 46,000 226,000 0.96 7.10 5.72 5.95 0.78 1.12 3.24 1.51 1.53 0.63 1.80 1.56 1.76 1.25 1.54 1.50 1.52 1.21 1.35 1.69 84,600 51,600 25,400 26,000 53,800 9,700 95,500 88,200 37,500 21,600 44,100 43,200 47,800 18,900 34,000 25,500 23,800 3,900 2,000 12,300 12,715,000 527,000 138,000 2,267,000 10,200,000 890,000 1,276,000 2,152,000 1,481,000 3,603,000 1,159,000 1,292,000 921,000 849,000 689,000 529,000 487,000 479,000 496,000 326,000 6,600 326,000 1.16 12,200 1.56 10,700 148,000 1.28 176,000 1.64 9,300 48,000 264,000 69,000 99,000 1.19 1.49 1.32 10,100 3,300 4,200 41,000 182,000 258,000 30,000 Total 28,193,000 1.48 1,346,000 16,257,000 1.51 791,300 44,450,000 1.50 2,137,300 * Cut-off grades are 2.5g/t Au for Swan Underground (UG) Indicated, and 3.0g/t Au for Swan UG Inferred. ** Wyooda includes the Kingston Town, Think Big and Manikato resources which are within 600m and 200m of each other respectively. Notes: Figures have been rounded. The information in this announcement that relates to the reporting of the Wilsons, and Toedter Mineral Resources has been extracted from the Horizon Gold Limited ASX announcement titled “Gum Creek Gold Project Resource Update” dated 12 February 2021 and is available to view at https://horizongold.com.au/announcements/. The information in this announcement that relates to the reporting of all other Mineral Resources has been extracted from Horizon Gold Limited ASX announcements titled “32% Increase in Resources at Gum Creek Gold Project” dated 25 July 2022 and “19% Increase in Gold Resources at Gum Creek Gold Project” dated 15 May 2023, both of which are available to view at https://horizongold.com.au/announcements/. 6 Open Pit Mine Production Target The Study in-pit mine production target totalling approximately 24.46Mt @ 1.13g/t Au for 888,000 ounces is sourced from 14 deposits including Eagle, Hawk, Heron South, Howards, Hyperno-Reliance, Kingfisher, Manikato, Shiraz, Snook, Specimen Well, Swan/Swift, Think Big, Toedter, and Wedge (Table 2). Of the mineral resource ounces scheduled for extraction in the Study production target, approximately 76% are classified as Indicated and 24% as Inferred 3 during the 10-year proposed LOM. The open pit mine production target is reported within optimised Whittle pit shells generated by Auralia Mining Consulting using a base case input gold price of A$2900/oz. The pit shells are based on typical contractor mining parameters and up-to-date average operating costs for deposits of a similar scale and geological nature. The production target includes a mining recovery of 95% and a mining dilution of 10%. Cut-off grades were calculated in Whittle and varied by deposit and weathering based on processing recoveries and haulage distance with values of between 0.3g/t Au and 0.6g/t Au calculated. The production schedule reported low grade material between the calculated lower economic cut-off grade and 0.6g/t Au, with high grade material being greater than 0.6g/t Au. Table 2: Scoping Study Open Pit Mine Production Target by Deposit Deposit Swan/Swift OC* Howards* Eagle Heron South Toedter Hawk Kingfisher OC Hyperno-Reliance Manikato Shiraz* Snook Specimen Well Think Big Wedge Total Tonnes 10,396,000 8,160,000 1,145,000 907,000 566,000 765,000 256,000 328,000 335,000 491,000 158,000 252,000 431,000 274,000 24,463,000 Production Target Au (g/t) 1.29 0.85 1.08 1.17 1.48 1.09 2.11 1.25 1.20 0.81 1.83 1.52 1.06 1.65 1.13 Ounces 431,000 222,000 40,000 34,000 27,000 27,000 17,000 13,000 13,000 13,000 9,000 12,000 15,000 15,000 888,000 * MIK models constructed as diluted mining models, hence no further dilution mining dilution or mining recovery factors have been applied. Notes: Figures have been rounded. The Whittle optimisation work in this Study used the mineral resource estimates referred to in previous Horizon Gold Limited ASX announcements titled “Gum Creek Gold Project Resource Update” dated 12 February 2021, “32% Increase in Resources at Gum Creek Gold Project” dated 25 July 2022 and “19% Increase in Gold Resources at Gum Creek Gold Project” dated 15 May 2023, all of which are available to view at https://horizongold.com.au/announcements/. 3 There is a low level of geological confidence associated with Inferred Mineral Resources and there is no certainty that further exploration work will result in the determination of Indicated Mineral Resources or that the production target itself will be realised. 7 Open Pit Mining and Mining Schedule Auralia Mining Consulting were engaged to complete pit optimisation work using Whittle software to create a series of pit shells providing an optimal discounted cash flow (DCF). To simplify the study, only deposits containing more than 15,000 gold ounces inside Whittle pit shells from previous pit optimisation work were included in the Study. Pit shells were produced using typical contractor mining parameters and up-to-date average operating costs for similar sized deposits of a similar geological nature. Mining costs used in the pit optimisation process included dewatering, grade control, drill and blast, load and haul (using rigid class haulage fleets and medium (100t-150t class) excavators, and ore haulage including haul road upgrades and maintenance. Ancillary and overhead costs used in pit optimisation work included dozing, ground control, engineer/geologist/surveyor salaries, contractors and all site General & Administration (G & A) costs. Conventional drill and blast practices have been assumed using suitable drilling rigs and sampling procedures on 5m benches, incorporating Ammonium Nitrate-Fuel Oil (ANFO) in dry and Emulsion bulk product in wet conditions. Density inputs are determined by previously reported specific gravity work and vary according to oxidation surfaces as used in previously announced mineral resource estimates. Metallurgical recoveries, pit wall angles, State and third-party royalties, and refining costs were all factored into the optimisation process. In-pit mineral resources for this Study are reported within optimised Whittle pit shells generated using a base case A$2900/oz gold price. Sensitivity analysis pit optimisation runs used A$2500/oz, A$2700/oz, A$3100/oz and A$3300/oz. The in-pit production targets include a mining recovery of 95% and a mining dilution of 10%. Scheduling for the open pit mining was completed using Excel spreadsheets incorporating optimised in-pit volume and resource data reported against optimised pit shells. No pit designs have been completed for this study. The open pits are planned to be excavated with conventional surface mining methods. Benches are to be 5m high and will be mined in 2.5m flitches. Pit wall angles were designed based on geotechnical recommendations specific to each pit, varying from a minimum of 30 degrees in fill material to 56 degrees in competent fresh rock. The resulting average waste to ore strip ratio for the optimised pits in the Study is 5.2:1. Top-down mining assumptions were used with a mining rate of up to 16,000 Bulk Cubic Metres (BCM) per day per excavator. The schedule assumes initial utilisation of two 100t to 150t excavators and two 777 haul truck fleets for the Swan/Swift area and to complete mining of the smaller satellite pits before reducing to one fleet when mining the smaller satellite pits and the Howards pit. Road trains will be used for longer distance hauling from the northern and southern deposits beginning in year 6. The Company’s strategy is to mine larger, lower risk open pit deposits adjacent to the proposed processing area (Swan/Swift) that return substantial profit margins in the first 5 years of mining incorporating the other “Central” satellite pits during the 3rd year of mining (Eagle, Wedge, Hawk and Kingfisher). Due to higher strip ratios, from year 6 the “Northern” satellite pits (Shiraz, Snook, Specimen Well and Toedter) and “Southern” satellite pits (Hyperno Reliance, Heron South, Manikato and Think Big) will be mined while the 2 haul truck fleets are on site. Howards will be mined from year 7 to 10 using a single fleet (Figure 2). The average LOM recovered gold production using a calculated average gold processing recovery of 95.1% is estimated to be approximately 84,000 ounces per year. 8 Scheduled ore mined (tonnes per annum) and the ore grade (g/t) is presented in Figure 3, and scheduled ore mined (Mtpa) by resource category is presented in Figure 4. Quarterly Production (tonnes) by Mining Location 5,000,000 4,500,000 4,000,000 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 - 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 SwanSwift1 SwanSwift2 SwanSwift3 SwanSwift4 Howards1 Howards2 Howards3 Eagle Wedge Hawk Kingfisher Shiraz Snook Specimen Well Toedter Manikato Think Big Hyperno Reliance Heron South Figure 2: Quarterly Production Schedule by Deposit Mined Ore 1.80 3,500,000 1.60 3,000,000 1.40 2,500,000 1.20 2,000,000 1.00 1,500,000 0.80 0.60 1,000,000 0.40 500,000 0 0.20 0 1 2 LG Ore - Tonnes Mined 3 4 5 6 HG Ore - Tonnes Mined 7 8 Low Grade g/t 9 10 11 0.00 High Grade g/t Figure 3: Annual Ore Mined (tpa) and Ore Grade (g/t) 9 Mined Ore (Mt) 3.5 3.0 2.5 2.0 2.22 1.5 2.03 2.26 1.46 1.15 1.97 2.07 2.04 1.75 1.0 1.34 1.15 0.5 0.0 - 0.10 0.17 Year 0 Year 1 Year 2 0.39 0.47 Year 3 Year 4 1.02 1.18 0.75 0.21 Year 5 INFERRED Year 6 Year 7 Year 8 0.34 0.27 0.14 Year 9 Year 10 Year 11 INDICATED Figure 4: Annual Ore Mined (Mtpa) by Resource Category Metallurgy, Processing and Power Supply The Study assumes the existing Gidgee processing facility will be removed and replaced with a new fit for purpose gravity / carbon-in-leach (CIL) processing facility with a nameplate capacity of 2.4 million tonne per annum. The new facility will include a three-stage crushing circuit and will be constructed in the existing mill location so that it aligns with previous processing approvals. The cost of demolishing and removal of the existing plant was estimated by Demex, and the design, cost and timeline to construct the processing plant were estimated by Sedgman Pty Ltd (Sedgman). Processing throughput varies between 2.2Mtpa and 2.4Mtpa depending on the ore feed material hardness. Comminution, reagent consumption and metallurgical recoveries for ore sourced from the Project are derived from metallurgical testwork conducted by ALS Metallurgy, a 2012 CPC Engineering desktop study and site operating records. Sedgman’s process design work used an abrasion index of 0.25g, a bond rod work index of 21kWh/t and a bond ball work index of 19kWh/t. Metallurgical sighter test-work has been completed on all 14 deposits included in the Study at a grind size of 80% passing 75μm. An average gravity gold recovery of ~35% was returned from the 14 ore sources. A review of relevant metallurgical reports and test results by Sedgman noted that the free milling ore showed rapid leach kinetics with most of the leaching being completed within 8 hours and totally complete in under 24 hours. Sedgman stated an expected weighted average total circuit recovery of 94.5%. Average Life of Mine (LOM) gold recoveries estimated from monthly Gidgee Gold Mine production reports from 1987 to 2005 were 93.0% which supports the Sedgman metallurgical test work review average recovery estimate. Sedgman’s process design used a leach residence time of 6 hours, an adsorption residence time of 18 hours, an average sodium cyanide consumption of 0.39kg/t and a lime consumption of 0.54kg/t for process design work. Further metallurgy and comminution test work will feature in the Company’s ongoing economic studies. ECG Engineering recommended that power should be derived from a mixed solar and LNG generating facility supplied on a Build-Own-Operate (BOO) basis by an independent power producer under a price per kWhr contract. 10 Tailings Storage The Company plans to use the existing Tailings Storage Facility (TSF) and continue with upstream raising of the perimeter embankment, but simultaneously develop a new TSF immediately north of the existing TSF to achieve the required LOM tailings storage capacity. The footprint area of the existing TSF will not increase, and the new northern TSF’s footprint will cover an area of approximately 70 ha. The two TSF’s will be operated separately with tailings deposition alternating between the two facilities. Water Supply, Dewatering and Water Management Groundwater in the main mining area (Swan/Swift/Kingfisher) consistently reports good water quality (low Total Dissolved Solids) and is suitable for mineral processing and stock drinking water, meeting the Australian and New Zealand Environment Conservation Council (ANZECC) stock drinking water guidelines. Dewatering and water management will be required throughout the LOM and is necessary for 10 of the 14 deposits included in the Study. Dewatering will be required to commence 3 months prior to the commencement of mining. Initial dewatering will consist of pumping th