Announcement PDF 2024 ANNUAL REPORT 1 Contents Chairman’s Letter .................................................................................................................... 3 Review of Operations .............................................................................................................. 4 Directors' Report……………………………………………………………………………………...16 Corporate Governance Statement ......................................................................................... 29 Directors' declaration ............................................................................................................. 30 Auditor’s Independence Declaration ...................................................................................... 31 Independent Auditor’s Report ................................................................................................ 32 Consolidated Statement of Profit or Loss and Other Comprehensive Income ....................... 36 Consolidated Statement of Financial Position ....................................................................... 37 Consolidated Statement of Changes in Equity ...................................................................... 38 Consolidated Statement of Cash Flows................................................................................. 39 Notes to the consolidated financial statements...................................................................... 40 Consolidated Entity Disclosure Statement ............................................................................. 67 Additional ASX Shareholder Information ............................................................................... 68 Corporate Directory ............................................................................................................... 75 2024 ANNUAL REPORT 2 Chairman’s Letter Dear Shareholder, Horizon Gold Limited has made significant advances over the past 12 months with the completion of a scoping study for the Gum Creek Gold Project. The study includes only the free milling open pittable portions of the Project’s mineral resources but has returned compelling economic metrics and shows a clear pathway for delivering value to shareholders. We’re very pleased with the results of the scoping 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. The Company is confident that through further resource drilling, additional shallow oxide gold resources will be defined at the numerous resource areas not yet included in the scoping study, and that these will potentially become part of the mine plan, extending the mine life well beyond the 10 years envisaged in the study. The granted clearing permit and existing mining proposal should enable a quick transition to mining at Gum Creek and once established, the new processing facility would become a strategic asset for the region with the potential to consolidate some of the surrounding stranded gold assets. The Company continues to hold approximately 60.8 million shares in Alto Metals Limited (ASX:AME) which currently represents 8.4% of AME’s issued capital. This strategic investment was part of Horizon’s aim of delivering value to shareholders and advancing the development of the Gum Creek Gold Project, however, following the proposed merger of AME with Brightstar Resources Limited this investment is under review. The Company has established a short-term loan facility with its major shareholder, Zeta Resources Limited, which will allow Horizon to review its strategic objectives and its funding requirements. The Board believes that Gum Creek represents a compelling development opportunity, and with gold at record prices we are confident that our focus on the development of our large gold resource will add significant value for shareholders. On behalf of the Board, I would like to thank our non-executive Director Dugald Morrison who recently resigned for his input and commitment to the Company over the past 4 years, and I would also like to thank our shareholders for their ongoing support as we look forward to sharing our exciting development progress during the year ahead. Yours sincerely Peter Sullivan Chairman 2024 ANNUAL REPORT 3 Review of Operations Horizon Gold Limited (ASX:HRN) (Horizon or the Company) is focused on expanding and enhancing the quality of its gold resources and unlocking the economic potential of its 100%-owned Gum Creek Gold Project (Gum Creek or the Project) located in a world class gold province within the Yilgarn Craton in Western Australia. Gum Creek has historically produced more than 1 million ounces of gold and hosts a current Mineral Resource Estimate (MRE) of 2.14 million ounces. The Project covers more than 500km2 of contiguous tenure over the Gum Creek greenstone belt located within a well-endowed gold region that hosts multimillion-ounce resources at Mt Magnet, Meekatharra, Wiluna, Bellevue and now at Gum Creek (Figure 1). The Project not only represents a significant brownfields exploration opportunity, but also offers significant greenfields exploration upside along its 80 kilometres of prospective and continuous strike. All the existing resources and most of the potential resource areas are located on granted Mining Leases. The Project also has significant infrastructure in place, including a 110-man camp, an operating airstrip, a relic CIL processing facility, extensive haul road network and a large tailings storage facility. Figure 1: Gum Creek Gold Project showing surrounding mines and gold deposits over simplified geology. 2024 ANNUAL REPORT 4 Project History Gold was first discovered in the area at Jonesville (now part of the Swan deposit) in 1926, with the first recorded gold production in 1931. More modern mining operations commenced in the 1980’s and ceased in 2005 when the gold price was approximately A$560/oz. To that time, more than one million ounces of gold was produced from over thirty open pits and three underground mines, with the main gold-producing areas being Swan-Swift, Kingfisher and Omega. Unlocking Value at the Gum Creek Gold Project During the reporting period the Company completed a comprehensive scoping study (Study) that assessed the recommencement of gold production from near surface, free milling, open pittable gold resources at the Gum Creek Gold Project 1. The Study returned compelling financial outcomes at a gold price of A$2,900/oz (approximately A$400/oz below the spot gold price at the time of reporting and approximately A$600/oz below the spot price as at 30 June 2024), including a pre-tax cashflow of A$574M, pre-tax NPV8 of approximately A$318M, a pre-tax IRR of 31.5% and a payback period from commencement of mining of 3.0 years. The Company considered various options to recommence gold mining at Gum Creek including mining and toll treating ore at the closest operating gold processing facilities, however the Study confirmed that constructing and operating a new gravity / CIL processing plant was the optimum business strategy for the Project. The Study envisaged an initial mine production target of 24.46Mt @ 1.13g/t Au for 888,000 ounces (76% Indicated, 24% Inferred) from selected deposits, processed through a new 2.4 million tonne per annum gravity / CIL processing plant located at the previously permitted Gidgee mill site. 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. Scoping Study Summary  The Study evaluated 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. 1 Refer to Horizon Gold Ltd ASX Announcement dated 20 March 2024 titled “Compelling Gum Creek Scoping Study”. CP L.Ryan 2024 ANNUAL REPORT 5  Initial open pit mine production target of 24.46Mt @ 1.13g/t Au for 888,000 ounces comprised of 76% Indicated and 24% Inferred Mineral Resources (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.  LOM All-in Sustaining Costs (AISC) of A$1,931/oz produced.  Pre-production capital cost of A$238.5M.  LOM sustaining capital cost of A$94.9M.  Compelling financial outcomes at A$2,900/oz gold price: ‒ Pre-tax cashflow of A$574M, pre-tax NPV8 of approximately A$318M, pre-tax IRR of 31.5%, and payback period from commencement of mining of 3.0 years.  Study base case gold price was approximately A$400/oz below the March 2024 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, pre-tax IRR of 45.8% and payback period from commencement of mining of 2.1 years. Gum Creek Scoping Study The Study evaluated free milling Whittle optimised in-pit gold resources from only 14 of the current 26 Gum Creek Gold Project resource areas (refer to Figure 6 below) using a base case gold price of A$2900/oz. All gold resources used in the Study, including Eagle, Hawk, Heron South, Howards, Hyperno-Reliance, Kingfisher, Manikato, Shiraz, Snook, Specimen Well, Swan/Swift, Think Big, Toedter, and Wedge, are located on granted Mining Leases. Ore is to be processed through a new 2.4Mt per annum gravity / CIL processing plant located at the previously permitted Gidgee gold processing site using 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 where possible and upgraded where required. The Study envisaged an average recovered gold production of approximately 84,000oz per year over a 10-year LOM using an initial open pit mine production target of 24.46Mt @ 1.13g/t Au for 888,000 ounces comprised of 76% Indicated and 24% Inferred Mineral Resources (compliant with the JORC 2012 guidelines) (Table 1). 2024 ANNUAL REPORT 6 Table 1: 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 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/. The estimated pre-production capital cost of A$238.5M includes 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. Pre-production mining costs (open pit pre-strip) of A$36.4M are included in the mine operating costs over the first 5 months of operations. Sustaining capital includes all capital expenditure post-production commencement. Sustaining capital for the processing plant includes allocation of capital replacements and throughput optimisation, as well as the construction of a second tailings storage facility (Table 2). 2024 ANNUAL REPORT 7 Table 2: Summary of Capital Expenditure Pre-Production Capital Demolition of existing Processing Plant Processing Facilities (incl. offices)* Camp and Site Facilities Property Plant & Equipment (incl. vehicles and administration offices) Tailings Storage Facility (TSF)* Open Pit Dewatering (pumps, pipes, and operating costs incl. diesel) Pre-production Mining Contractor Costs** Total Pre-production Capital Sustaining Capital (LOM) Tailings Storage Facility (TSF) Dewatering & Water Management (pumps, pipes, vehicles & equipment) Property Plant & Equipment (vehicle & building maintenance) Total Sustaining Capital Total Capital Costs (A$M) 1.0 193.1 25.4 3.0 3.5 10.5 2.0 238.5 (A$M) 30.1 62.8 2.0 94.9 333.4 * Costs are expected to be accurate within the study allowance of ±35%, the estimates include a contingency allowance of 20%. ** Pre-production mining costs of $36.4M in addition to mining contractor costs are included in mine operating costs over the first 5 months. LOM C1 cash operating costs of A$1,730/oz (produced), include Mining costs (A$34.30/t milled, A$993.6/oz produced), Processing costs (A$23.61/t milled, A$684.1/oz produced) and General and Administration (G&A) costs (A$1.82/t milled, A$52.7/oz produced). LOM All-in Sustaining Costs (AISC) of A$1,931/oz (produced), include Sustaining Capital costs (A$3.88/t milled, A$112.4/oz produced) and Royalties (Govt & 3rd party) (A$3.05/t milled, A$88.4/oz produced) (Table 3). It is estimated that approximately A$13.4M in royalties will be paid to third party companies, and approximately A$61.2M in royalties will be paid to the State Government over the LOM. Table 3: Estimated Operating Costs Operating Cost Description Mining (incl. grade control, haulage, dewatering) Processing Site G&A C1 Cash Operating Cost* Royalties Sustaining Capital All-in Sustaining Cost (AISC)** LOM Operating Cost (A$M) 838.9 577.6 44.5 1,461.0 74.6 94.9 1,630.5 A$/t milled 34.30 23.61 1.82 59.73 3.05 3.88 66.66 $/oz Au Produced $993.6 684.1 52.7 1,730.40 88.4 112.4 1,931.20 * C1 cash cost includes mining, processing, and administration costs. ** AISC per ounce payable includes C1 cash cost, royalties and sustaining capital. It does not include corporate, exploration or non-sustaining costs. A range of scenarios considering different production profiles and cut-off grades were evaluated in the Study. The 2.4 Mtpa throughput sustains full production for ten years, is the preferred production rate, and provides the opportunity to add additional satellite deposits beyond the current mining schedule. The Study demonstrated that the recommencement of open pit mining at a base case gold price of A$2,900/oz provides a substantial economic return, yielding a pre-tax cashflow of A$574M, pre-tax NPV8 of approximately A$318M, and a pre-tax IRR of 31.5%. The payback period from commencement of mining in this scenario would be 3.0 years. The annual undiscounted cashflow and cumulative undiscounted cashflow (from funding drawdown) outcomes are presented in Figure 2 below. 2024 ANNUAL REPORT 8 Cashflow $700 $600 $500 $400 $300 $200 $100 $$(100) 0 1 2 3 4 5 6 7 8 9 10 11 $(200) $(300) Cashflow Cumulative Cashflow Figure 2: Cashflow and Cumulative Cashflow (A$M) by Year The Study base case gold price retains a significant potential upside to predicted financial outcomes with the A$3,300/oz gold price scenario returning a pre-tax cashflow of A$904M, pre-tax NPV8 of approximately A$548M, pre-tax IRR of 45.8% and a payback period from commencement of mining of 2.1 years (Table 4). Table 4: Scoping Study – Gold Price Scenarios Description Pre-tax Cashflow (A$M) NPV8 (A$M) IRR (%) Payback Period (years) $2,500 $244.96 $88.09 15.3% 4.6 $2,700 $409.59 $202.94 23.8% 3.7 Gold Price (A$/oz) $2,900* $574.23 $317.79 31.5% 3.0 $3,100 $738.87 $432.65 38.8% 2.5 $3,300 $903.50 $547.50 45.8% 2.1 * Base case gold price A sensitivity analysis of the Study’s key economic parameters demonstrated that Project economics are most sensitive to a change in gold price, followed by a change in operating costs, discount rate and capital expenditure. The results of the sensitivity analysis are presented in Figure 3 in terms of NPV sensitivity. 2024 ANNUAL REPORT 9 Figure 3: Study NPV Sensitivity Analysis The Company’s strategy is to mine larger, lower risk open pit deposits adjacent to the proposed processing area that return substantial profit margins in the first 5 years of mining. Initially, this includes the Swan/Swift deposit, with other “Central” satellite pits introduced 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 remain on site (Figure 4). Howards will be mined from year 7 to 10 using a single mining fleet. Quarterly Production (tonnes) by Mining Location 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 - 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 Hyperno Reliance Heron South Manikato Think Big Figure 4: Quarterly Production Schedule by Deposit 2024 ANNUAL REPORT 10 Scheduled ore mined (million tonnes per annum) by resource category and average gold grade (g/t) is presented in Figure 5 below. Mined Ore (Mt) 3.0 2.5 2.0 1.46 2.22 1.15 1.5 2.26 2.03 1.97 2.07 2.04 1.75 1.0 1.34 1.15 0.5 0.0 1.02 1.18 0.75 - 1 0.10 0.17 2 3 0.39 0.47 4 5 0.21 INFERRED 6 7 INDICATED 8 9 0.34 0.27 10 11 0.14 12 Avg Grade Figure 5: Annual Ore Mined (Mtpa) by Resource Category and Average Gold Grade (g/t) 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. The Scoping Study provides justification that the development of the Gum Creek Gold Project is a commercially viable stand‐alone mining operation and accordingly the Board of Horizon Gold Limited are supporting the commencement of a Feasibility Study. The Study retains significant upside including 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, and additional shallow resource expansion drilling could potentially increase the resource size and gold grade of the 12 resource areas not included in the study and elevate them to an economically viable status for inclusion into the mining schedule. 2024 ANNUAL REPORT 11 Gum Creek Future Work and Growth Potential Since completing the Study, further work on improving the economic outcomes of the Gum Creek Project has been undertaken with a focus on reducing pre-production capital expenditure, including processing facility and sustaining capital cost reductions. Deposits with lower strip ratios have also been brought forward in the mining schedule to reduce initial pre-strip mining and water management related capital costs. Geological modelling and wireframing of the Swan/Swift open cut, Howards and Shiraz gold mineralisation has been completed in advance of converting the Multiple Indicated Kriging (MIK) resource models to Ordinary Kriging (OK) resource models which better represent the style of mineralisation at the deposits, and further evaluation of different grade cutoff options and processing throughput rates has commenced. Drilling planned over the next 12 months will include resource drilling targeting shallow oxide resources near the Gidgee mill and at strategic locations along the existing haul road. Limited infill resource drilling to cover additional geotechnical and metallurgical requirements is also planned. The drilling will aim to further increase the mineral resource inventory and support the current economic studies at the highly prospective Gum Creek Project. Wide-spaced drilling is also planned to explore the extensive untested strike of known mineralised structures in the Gum Creek Project and further advance the large pipeline of regional gold targets within this underexplored, highly strategic asset. 2024 ANNUAL REPORT 12 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 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 5 below. Table 5: 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 Total Indicated Au Tonnes Gold (oz) (g/t) Tonnes 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 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 0.6 119,000 1.73 6,600 May-23 0.6 214,000 1.56 May-23 0.6 176,000 May-23 Jul-22 Jul-22 May-23 0.6 0.8 0.8 0.6 264,000 69,000 99,000 28,193,000 Inferred Au Gold (oz) (g/t) Tonnes 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 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 1,292,000 921,000 849,000 689,000 529,000 487,000 479,000 496,000 326,000 326,000 1.16 12,200 10,700 148,000 1.28 1.64 9,300 48,000 1.19 1.49 1.32 10,100 3,300 4,200 41,000 182,000 258,000 30,000 1,346,000 16,257,000 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 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 1.48 Total Au (g/t) 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 on https://horizongold.com.au. The information in this announcement that relates to the reporting of the Swan/Swift Open Pit Mineral Resource, the Swan and Swift Underground Mineral Resource and the Camel Bore, Orion, Psi, Snook, Wahoo and Wyooda Mineral Resources has been extracted from the Horizon Gold Limited ASX announcement titled “32% Increase in Resources at Gum Creek Gold Project” dated 25 July 2022 and is available to view on https://horizongold.com.au. 2024 ANNUAL REPORT 13 Gum Creek Base Metal Resource Estimate On 14 March 2023 the Company announced a maiden MRE of 7.0 Mt @ 1.8% Zn, 0.5% Cu, 5.0g/t Ag (2.9% ZnEq) at a 2.0% ZnEq cut-off for 200,000 ZnEq tonnes (130,000t Zn, 30,000t Cu, 1.1Moz Ag) for the Altair Zinc-Copper-Silver deposit located 24 kilometres to the north-northwest of the Gidgee Mill (Figure 6, and Table 6). Table 6: Altair Inferred Mineral Resource as at 14 March 2023 (Zinc Equivalent % cut off) Cut-off Total Tonnes & Grade Total Metal Content ZnEq % Mt ZnEq % Zn % Cu % Ag g/t ZnEq (Kt) Zn (Kt) Cu (Kt) Ag (Moz) 1.5 11.9 2.3 1.5 0.3 4.5 270 180 40 1.7 2.0 7.0 2.9 1.8 0.5 5.0 200 130 30 1.1 2.5 4.3 3.3 2.1 0.5 5.4 140 90 20 0.8 Note: The metal equivalent calculation formula is ZnEq % = Zn (%) + 2.78 x Cu (%) + 0.018 x Ag (g/t) using metal prices of A$4,500/t Zn, A$12,500/t Cu and A$30/oz Ag. Based on preliminary metallurgical studies, recoveries used were 90% for Zn, 90% for Cu, and 75% for Ag. In Horizon’s opinion all elements included in the metal equivalents calculation have a reasonable potential to be recovered and sold. Figures have been rounded. Figure 6: Gum Creek Gold Project current mineral resources and exploration targets over regional geology. 2024 ANNUAL REPORT 14 Corporate Alto Metals Limited Share Purchase In July 2023 the Company acquired 60.8 million shares in Alto Metals Limited (ASX:AME) for $3.17 million which currently represents 8.4% of AME’s issued capital. The average price paid per AME share was $0.052. This strategic investment is part of Horizon’s broader aim of enhancing the value of the Gum Creek Gold Project. AME owns the Sandstone Gold Project located approximately 90km south of the Gidgee mill. The Sandstone Gold Project covers over 740km2 of the Sandstone Greenstone Belt and contains an unconstrained MRE of 23.5Mt @ 1.4g/t Au for 1.05Moz. On 1 August 2024, Brightstar Resources Limited (ASX:BTR) and AME announced they had entered into a Scheme Implementation Deed under which AME agreed to propose a Scheme of Arrangement for the acquisition of 100% of AME by BTR. The transaction has an implied value of approximately 6 cents per AME share and the AME share price has subsequently increased to similar levels from 3.4 cents at 30 June 2024 and the value reflected in the Financial Statements. This investment is under review. Renounceable Entitlement Issue On 4 October 2023, the Company announced a 1 for 5 Renounceable Entitlement Issue (“the Issue”) at $0.30 per share, to raise approximately $7,500,000. The Company received acceptances for $5,897,485 in respect to 19,658,282 shares, representing a 79% take up of the Issue. As part of the Application and Issue process the Company also repaid in full (through offset) the short-term loans mentioned below (including interest) to the value of $4,059,028 to the subsidiary company of Horizon’s major shareholder, Zeta Resources Limited. As such net proceeds from the Entitlement issue after repayment of the loan and interest was $1,838,457 before costs. Funding In June 2023 Horizon secured a short-term funding facility of up to $500,000 from Zeta Energy Pte Limited (a wholly owned subsidiary of Horizon’s major shareholder Zeta Resources Limited). In July 2023, an additional facility of $3,180,000 was secured for the purchase of AME shares and another facility of $300,000 was secured to provide extra working capital. The loan facilities were unsecured, could be drawn in tranches of not less than $50,000 and interest was payable at 8.0% per annum. The funds were repayable by no earlier than 31 December 2023. The above short-term funding was repaid in full in November 2023 as part of the application and issue process of the Renounceable Rights Issue. In May 2024 Horizon secured a short-term funding facility of up to $1,000,000 from Zeta Energy Pte Limited (a wholly owned subsidiary of Horizon’s major shareholder Zeta Resources Limited). The loan facility is unsecured, could be drawn in tranches of not less than $50,000 and interest is payable at 8.0% per annum. The funds are repayable by no earlier than 31 December 2024. At 30 June 2024 no drawdown on the facility has been made but subsequent to financial year end $800,000 of the facility has been drawn down. In September 2024 Zeta Resources Limited agreed to increase the short-term loan facility to $1,500,000. . 2024 ANNUAL REPORT 15 Directors’ Report 30 June 2024 The directors present the