Announcement PDF ASX Announcement | 30 April 2025 Variscan Mines Limited (ASX:VAR) Quarterly Activities Report for the Period Ended 31 March 2025 Key Highlights • • • • • High-grade zinc intersections from maiden underground drilling at Udias Mine o Maiden drilling at Udias returned significant high-grade zinc mineralisation, confirming the presence of substantial mineralised zones. o Notable results, including 20.1m @ 8.22% Zn and 1.72% Pb (refer ASX Announcement dated 24 February 2025), are outside of the Company’s existing Mineral Resource Estimate. Exceptional drilling results from the San Jose Mine identifying a potential feeder zone o Drilling at La Caseta (Central zone) of San Jose Mine has returned the highest assay result (width x grade) from a single drill hole drilled by Variscan at the Novales-Udias project to date - 15.3m @ 17.42% Zn, 4.40% Pb (refer ASX Announcement dated 4 March 2025). Drilling at San Jose and Udias Mines in this Quarter delivered 5 of the best-ever 20 drill holes Strong endorsement from Government of Cantabria for the Novales-Udias Zinc Project o Following a series of high-level meetings, the Government of Cantabria expressed strong support for Variscan's plans to recommence mining operations. o The Government’s endorsement provides increased confidence in the permitting pathway for project development. Progress towards Mine Re-start Studies at Udias and San Jose Variscan advanced technical studies critical to mine restart initiatives, including geological modelling, metallurgical testwork and geotechnical assessments. These efforts underpin the Company’s objective to fast-track a return to production in northern Spain. Variscan’s Managing Director and Chief Executive Officer, Stewart Dickson, commented: "This has been another Quarter of significant progress on all fronts. We delivered standout drill results from both the San Jose and Udias Mines and received strong public commitment from the Cantabrian Government to support the re-start of mining operations. We are gaining strong operational momentum, and our Explorer-Producer strategy is delivering. The strength of this high-grade, former-producing asset continues to be validated and we look forward to keeping shareholders updated as we advance our development plans through 2025.” Operations Report Variscan Mines Limited (ASX:VAR) (“Variscan” or “the Company”) is pleased to announce its Activities Report for the Quarter ended 31 March 2025 (“Q3 FY25”). Novales-Udías Project The Novales-Udías Project is located in the Basque-Cantabrian Basin, approximately 30km southwest of the regional capital, Santander. Since its acquisition, the Project has been centered around the former producing San Jose underground mine with a large surrounding area of exploration opportunities over the 12km Novales Trend, which includes several satellite underground and surface workings. Udias Mine – Maiden Underground Drilling During the March 2025 quarter, the Company reported first assays from its maiden underground drilling program at the Udias Mine, part of the Novales-Udias Project in northern Spain. This campaign marks the first time the southern section of the Udias Mine, extending over 1.4 km and previously undrilled, has been systematically tested. On 24 February 2025, the Company announced high-grade assay results from the initial holes of this program. These results confirm the presence of substantial zinc mineralisation beneath historical workings and support the development of a Mineral Resource Model at Udias. Assays from first 5 diamond drillholes confirm significant mineralisation: o UDDT004: 20.1m @ 8.22% Zn, 1.72% Pb o UDDT002: 16.5m @ 6.16% Zn, 0.87% Pb o UDDT001: 7.8m @ 7.41% Zn, 0.68% Pb o UDDT005: 11.4m @ 4.76% Zn, 0.24% Pb o UDDT003: 11.0m @ 4.92% Zn, 0.04% Pb These intersections demonstrate the continuity and grade of the mineralisation, providing confidence in the potential for resource delineation. The drilling is located outside of the current Mineral Resource Estimate (MRE) model, indicating the opportunity for resource expansion. 2 Figure 1. Plan view of southern end of the Udias Mine indicating locations of underground diamond drillholes, mine development and historical face samples2 Insert shows location relative to the size and scale of the Udias Mine, as well the continuation into the San Jose/Novales Mine to the northeast. 3 Figure 2. Diamond Drill Core from UDDT004 illustrating massive sphalerite hosted in dolostone Note: Hole depth shown is from 0m to 20.1m San Jose Mine – Exceptional Drilling Results On 4 March 2025, the Company reported further high-grade zinc intercepts from its ongoing underground diamond drilling program at the San Jose Mine, part of the Novales-Udias Project in northern Spain. This drilling campaign aims to expand known zones of mineralisation and discover new zones to support an upgraded Mineral Resource Estimate (MRE). 4 The recent drilling focused on the La Caseta Trend within the Central Zone of the San Jose Mine. Specifically, hole NDDT059 within the Central Zone returned the highest assay result (width x grade) from a single drill hole drilled by Variscan at the Novales-Udias project to date, 15.3m @ 17.42% Zn, 4.40% Pb. Several other high-grade assays from the drilling at La Caseta include: o NDDT058: 14.30m @ 8.09% Zn, 1.28% Pb o NDDT060: 15.25m @ 6.10% Zn, 0.46% Pb Figure 3. Section view of northern end of the La Caseta area in the Central zone of the San Jose Mine indicating locations of underground diamond drill holes and mine development. 5 Figure 4. Diamond Drill Core from NDDT059 (15.3m @ 17.42% Zn, 4.40%) illustrating massive sphalerite hosted in dolostone. Hole depth shown is from 0.00m to 16.95m Probable feeder zone identified at La Caseta Geological mapping and exploration work has consistently indicated strong structural controls on mineralisation and the possible existence of one or more sub-vertical feeder zones channelling metalbearing hydrothermal fluids upward in the San Jose Mine. In particular a north-south oriented linear zone of abundant high-grade sulphide mineralisation in the northernmost part of the La Caseta area of the San Jose Mine was identified (Figure 5). Drilling was conducted in this area to test the feeder zone concept and to infill an area that is adjacent to zones with existing Measured & Indicated Mineral Resources. 6 Figure 5. Feeder zone with conspicuous, abundant iron sulphides (partly oxidized on surface) that accompany high-grade zinc and lead sulphide mineralisation Recent drilling results are highly significant The drilling results reported from the San Jose Mine and the Udias Mine3 have delivered outstanding results. These drill holes now account for 20% of our best-ever 20 drill holes at the Novales-Udias project that the Company has drilled (see highlighted red rows in Table 1 below). All of the results recently reported are located outside of the existing MRE model and are expected to add to an updated MRE, anticipated for later in 2025. 7 Table 1. Top 20 best-ever intercepts drilled by Variscan Mines at the Novales-Udias Project4 Mine Re-Start Study The Company continued progressing key technical workstreams forming part of the Mine Re-Start Study during the Quarter. Metallurgical test work, comprising four distinct phases, is underway across European laboratories. These include sample preparation prior to pre-concentration, ore sorting trials with TOMRA in Germany, heavy liquid separation trials in the UK, comminution testing, and flotation optimisation. The goal is to confirm recovery assumptions and support design parameters for a modular processing facility. Geotechnical work also progressed, with uniaxial compressive strength (UCS) testing and stope stability assessments underway. Early results support previous assumptions of strong, competent host rock and indicate minimal ground support requirements for initial mining areas. This data will inform mine design and scheduling considerations. Government Support for the Novales-Udias Project Additionally during the Quarter, the Company announced strong support from the Government of Cantabria for the advancement of its Novales-Udias Zinc Project in northern Spain. This endorsement followed a series of high-level meetings between Variscan's Managing Director & CEO, Stewart Dickson, and senior regional government officials, including the President of Cantabria and the Regional Minister for Industry. The discussions reaffirmed the Government's commitment to revitalizing the mining sector in Cantabria and its recognition of the potential economic and employment benefits associated with the recommencement of mining operations at Novales-Udias. The Government expressed a clear 8 willingness to support Variscan's efforts to progress the project through the necessary permitting and development stages. This strong governmental backing enhances Variscan's confidence in the project's development pathway and underscores the collaborative relationship between the Company and regional authorities. The Company remains committed to maintaining transparent and constructive engagement with all stakeholders as it advances towards the potential restart of mining activities in the region. Figure 6. Meeting between Variscan Mines and the President of the Government of Cantabria, Ms. María José Sainz de Buruaga and the Regional Minister for Industry, Employment, Innovation and Trade, Mr. Eduardo Arasti Barca. Explorer-Producer Strategy Variscan continues to implement its Explorer-Producer strategy, centred on advancing the high-grade Novales-Udias Project towards restarting production while simultaneously growing the resource base 9 through targeted exploration. This dual track approach is designed to leverage the Project’s unique position as a de-risked, former producing mine, while recognising the potential opportunities in and around it that remain underexplored. The phased development strategy is underpinned by the goal of generating early cash flow to support ongoing exploration and development, creating a self-sustaining cycle of value creation. FINANCIAL & CORPORATE SUMMARY OF EXPENDITURE ON EXPLORATION ACTIVITIES For the quarter, the Group spent $454,000 on exploration activities, substantively all of which related to the Group’s Spanish zinc projects. These exploration activities related to: • • • • • Underground drilling; Geological mapping and modelling; Technical consulting fees; Tenement administration, reporting and management; and Directly-attributable corporate overheads and administration costs. In accordance with ASX Listing Rule 5.3.2, the Company advises that no Mining Development or Production activities were conducted during the quarter. DEFERRED SETTLEMENT SHARES In accordance with the acquisition of the Spanish Zinc projects, the Company must issue additional shares upon the satisfaction of certain exploration milestones. These milestones are for the definition, in accordance with JORC 2012, of an Inferred Mineral Resource (or greater) of: • • • Milestone 1: 4 million tonnes at 7% Zn Milestone 2: 8 million tonnes at 7% Zn Upon satisfaction of each of these milestones, the Company must issue 27,500,000 ordinary shares to the vendors of Slipstream Spain Pty Ltd and Slipstream Spain 2 Pty Ltd, and 2,426,471 shares to Hispanibal S.L. as the vendor of the “Hispanibal Option”, for a total of 59,852,941 Ordinary Shares if both milestones are met. There is currently no obligation to issue the milestone shares. OTHER During the quarter, the Company made payments to related parties of $56,000, represented by remuneration paid to Directors. ENDS To ask questions directly to the Variscan management team and access media content, visit our interactive investor website at: https://variscan.com.au/s/aa7e61 10 This ASX announcement has been approved by the Board and authorised for issue by Mr Stewart Dickson, Managing Director and CEO, Variscan Mines Limited For further information, please contact: Variscan Mines Limited (ASX:VAR) Stewart Dickson Managing Director & CEO E: stewart.dickson@variscan.com.au T: +44 (0) 7799 694195 Media & Investor Enquiries Jane Morgan Management Chloe Hayes / Jane Morgan E: chloe@janemorganmanagement.com.au / jm@janemorganmanagement.com.au P: + 61 (0) 458619317/ +61 (0) 405 555 618 We encourage all investors to share questions on this announcement via our interactive investor hub: https://variscan.com.au/link/8r65oe Or scan the QR code. Subscribe to our news alert service: https://variscan.com.au/s/8d46e7 About Variscan Mines Limited (ASX:VAR) Variscan Mines Limited (ASX:VAR) is a growth oriented, natural resources company focused on the acquisition, exploration and development of high-quality strategic mineral projects. The Company has compiled a portfolio of high-impact base-metal interests in Spain and Australia. Its primary focus is the development of its advanced zinc projects in Spain. The Company’s name is derived from the Variscan orogeny, which was a geologic mountain building event caused by Late Paleozoic continental collision between Euramerica (Laurussia) and Gondwana to form the supercontinent of Pangea. To learn more, please visit: www.variscan.com.au For more information Follow us on LinkedIn Follow us on Twitter Visit our investor website: www.variscan.com.au 11 Novales-Udias Project Summary The Novales-Udias Project is an advanced, zinc-lead project located in the Basque-Cantabrian Basin, some 30km southwest from the regional capital, Santander. The project is centred around the former producing San Jose and Udias underground mines with a large surrounding de-risked, district scale exploration and development area. This includes a number of satellite underground and surface workings and areas of zinc anomalism. Variscan has delineated the significant 12km mineralised Novales Trend the majority of which is over valid, granted mining tenements 1. The San Jose Mine is nearby (~9km) to the world class Reocin Mine which is the largest known stratabound carbonate-hosted Zn-Pb deposit in Spain 2 and one of the world’s richest MVT deposits 3. It is within trucking distance (~80km) from the San Juan de Nieva zinc smelter operated by Asturiana de Zinc (owned by Glencore). Novales-Udias Project Highlights • • • • • • • • • • • Near term zinc production opportunity (subject to positive exploratory & development work) Updated JORC compliant Mineral Resource Estimate of 3.4Mt @ 7.6% Zn, 0.9 %Pb released in December 20244 Expanded tenement holding of 111 km2 (including a number of granted mining tenements) Regional exploration potential for another discovery analogous to Reocin Mine (total past production and remaining resource 62Mt @ 8.7% Zn and 1.0% Pb 5 6) Trucking distance (~ 80km) from the San Juan de Nieva smelter (Glencore owned) Classic MVT carbonate hosted Zn-Pb district Historic production of high-grade zinc from San Jose Mine; average grade reported as ~7% Zn 7 with super high grade ‘bolsas’ (mineralised pods and lenses) commonly 10-20% Zn and in some instances +30% Zn 8 Maiden drilling at Udias Mine Simple mineralogy of sphalerite – galena – calamine Mineralisation is strata-bound, epigenetic, lenticular and sub-horizontal Access and infrastructure all in place Refer to ASX announcement of 29 July 2019 Velasco, F., Herrero, J.M., Yusta, I., Alonso, J.A., Seebold, I. and Leach, D., (2003) ‘Geology and Geochemistry of the Reocin Zinc-Lead Deposit, Basque-Cantabrian Basin, Northern Spain’ Econ. Geol. v.98, pp. 1371-1396. 3 Leach, D.L., Sangster, D.F., Kelley, K.D., Large, R.R., Garven, G., Allen, C.R., Gutzner, J., Walters, S., (2005) ‘Sediment-hosted lead-zinc deposits: a global perspective’. Econ. Geol. 100th Anniversary Special Paper 561 607 4 Refer to ASX announcement of 9 December 2024 5 Velasco, F., Herrero, J.M., Yusta, I., Alonso, J.A., Seebold, I. and Leach, D., 2003 - Geology and Geochemistry of the Reocin Zinc-Lead Deposit, Basque-Cantabrian Basin, Northern Spain: in Econ. Geol. v.98, pp. 1371-1396. 6 Cautionary Statement: references in this announcement to the publicly quoted resource tonnes and grade of the Project are historical and foreign in nature and not reported in accordance with the JORC Code 2012, or the categories of mineralisation as defined in the JORC Code 2012. A competent person has not completed sufficient work to classify the resource estimate as mineral resources or ore reserves in accordance with the JORC Code 2012. It is uncertain that following evaluation and/or further exploration work that the foreign/historic resource estimates of mineralisation will be able to be reported as mineral resources or ore reserves in accordance with the JORC Code 2012. 7 These figures have been taken from historical production data from the School of Mines in Torrelavega historical archives. 8 Reports of the super high-grade mineralisation are supported with historical production data from the School of Mines in Torrelavega historical archives. (Refer ASX release 29 July 2019) 1 2 12 Figure 7. Map of Novales-Udias Project licence areas COMPETENT PERSONS STATEMENT The information in this document that relates to the Exploration Target, exploration results and technical information is based on, and fairly represents information and supporting documentation reviewed by Dr. Mike Mlynarczyk, Principal of the Redstone Exploration Services, a geological consultancy acting as an external consultant for Variscan Mines. Dr. Mlynarczyk is a Professional Geologist (PGeo) of the Institute of Geologists of Ireland, and European Geologist (EurGeol) of the European Federation of Geologists, as well as Fellow of the Society of Economic Geologists (SEG). With over 10 years of full-time exploration experience in MVT-style zinclead systems in several of the world’s leading MVT provinces, Dr. Mlynarczyk has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the December 2012 edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves” (‘JORC Code’). Dr. Mlynarczyk consents to the inclusion in the report of the matters based upon the information in the form and context in which it appears. Where reference is made to previous releases of exploration results and mineral resource estimates in this announcement, the Company confirms that it is not aware of any new information or data that materially affects the information included in those announcements and all material assumptions and technical parameters underpinning the exploration results and mineral resource estimates included in those announcements continue to apply and have not materially changed. Reference is made to the following ASX announcements: 24 February 2025 and 4 March 2025. 13 FORWARD LOOKING STATEMENTS Forward-looking statements are only predictions and are not guaranteed. They are subject to known and unknown risks, uncertainties and assumptions, some of which are outside the control of the Company. Past performance is not necessarily a guide to future performance and no representation or warranty is made as to the likelihood of achievement or reasonableness of any forward-looking statements or other forecast. The occurrence of events in the future are subject to risks, uncertainties and other factors that may cause the Company’s actual results, performance or achievements to differ from those referred to in this announcement. Given these uncertainties, recipients are cautioned not to place reliance on forward looking statements. Any forward-looking statements in this announcement speak only at the date of issue of this announcement. Subject to any continuing obligations under applicable law and the ASX Listing Rules, the Company, its directors, officers, employees and agents do not give any assurance or guarantee that the occurrence of the events referred to in this announcement will occur as contemplated. MINERAL RESOURCE STATEMENT FOR NOVALES-UDIAS PROJECT JORC Mineral Resource Estimate for San Jose Mine and north-eastern Udías by deposit and classification reported above at 2% Zn+Pb cut-off (ASX announcement 9 December 2024) 14 LISTING OF TENEMENTS HELD AT 31 MARCH 2025 Tenement SPAIN – Note 5 Tenement No. Interest Joint Venture Details Cantabria Buenahora Fraction 1 IP 16.662-01 100% Buenahora Fraction 2 IP 16.662-02 100% San José EC 94 100% La Torra EC 512 100% Tres Amigos EC 1565 100% Torpeza EC 2557 100% Andrea EC5220 100% Andrea-demasía a EC5374 100% Es EC8049 100% Dudosa EC8165 100% Cargadoiro EC11589 100% Tres amigos-demasía a EC11594 100% Flor del pueblo EC12942 100% Torpeza-demasía a EC12952 100% Torpeza-3ª demasía a EC13079 100% Torpeza-2ª demasía a EC13080 100% Flor del pueblo-demasía a EC13154 100% Dudosa-demasía a EC13170 100% Andrea-3ª demasía a EC13175 100% Andrea-2ª demasía a EC13176 100% Cargadoiro-demasía a EC13260 100% Ampliación a Matilde EC13641 100% Aumentada EC14238 100% Campitos EC14554 100% Campitos-demasía a EC14640 100% Carmenchu EC14945 100% Amelita EC14949 100% Eloísa EC14947 100% Ampliación a Matilde-demasía a EC14948 100% Cargadoiro 2 EC14954 100% Amelita-demasía a EC14979 100% Carmenchu-demasía a EC14980 100% Eloísa-demasía a EC14981 100% Carmenchu-2ª demasía a EC14982 100% 6º Aumento a porvenir EC15672 100% Ampliación a Matilde-demasía a EC13641-10 100% Campitos-segunda demasía a EC14554-20 100% Cargadoiro 2- demasía a EC14954-10 100% Carmenchu-tercera demasía a EC14980-30 100% 6º Aumento a porvenir-demasía a EC15672-10 100% 15 Tenement Torpeza-tercera demasía a Tenement No. EC2557-30 Interest 100% Joint Venture Details Esperanza IP 16674 100% Estela IP 16672 100% Elena IP 16673 100% Candela IP 16676 100% Valeria IP 16675 100% IP 4.203 100% Willyama EL 8075 0% Hillston EL 6363 39.2% Native Dog EL 8236 0% Note 1 Woodlawn South ELs 7257 and 7469 0% Royalty interest only Junction Dam EL 5682 0% Marmota acquired 100% ownership. See Note 2 Callabonna EL 5360 49% Red Metal 51%, can earn 70% St Pierre PER 100% Beaulieu PER 100% Toledo Guajaraz NEW SOUTH WALES Note 1 Perilya can earn 80%, Eaglehawk 9.8% SOUTH AUSTRALIA FRANCE EL = Exploration License PER = Permis Exclusif de Recherche (France) IP = Investigation Permit (Spain) EC = Exploration Concession (Spain) Note 1: Under an agreement with Silver City Minerals Limited, Broken Hill Operations and Eaglehawk Geological Consulting Pty Ltd Variscan has converted its interest in parts of these tenements to a NSR (Net Smelter Return). Note 2: Marmota has earned 100% of the uranium rights only in EL 5682. Variscan has a 0.5% net profits royalty on production from a uranium mine. Note 3: The remaining exploration licenses owned by Variscan Mines SAS (excluding the Couflens PER) have been conditionally acquired by a new wholly owned subsidiary, Variscan Mines Europe Limited. Pursuant to the approval for the Subsidiary Sale, the Ministry of Economy and Finance has imposed, without prior consultation, the compulsory relinquishment of the remaining licenses. The Company has approved the relinquishment request and has yet to receive a response. The timetable for the completion of the relinquishment process is unknown. 16 Rule 5.5 Appendix 5B Mining exploration entity or oil and gas exploration entity quarterly cash flow report Name of entity Variscan Mines Limited ABN Quarter ended (“current quarter”) 16 003 254 395 31 March 2025 Consolidated statement of cash flows Current quarter $A’000 1. Cash flows from operating activities 1.1 Receipts from customers 1.2 Payments for Year to date (9 months) $A’000 - - (a) exploration & evaluation - (2) (b) development - - (c) production - - (d) staff costs (45) (241) (e) administration and corporate costs (49) (376) 1.3 Dividends received (see note 3) - - 1.4 Interest received 2 6 1.5 Interest and other costs of finance paid - - 1.6 Income taxes paid - - 1.7 Government grants and tax incentives - - 1.8 Other (provide details if material) - - 1.9 Net cash from / (used in) operating activities (92) (613) 2. Cash flows from investing activities 2.1 Payments to acquire or for: (a) entities - - (b) tenements - - (c) property, plant and equipment - - (454) (1,215) (e) investments - - (f) - - (d) exploration & evaluation other non-current assets ASX Listing Rules Appendix 5B (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms. Page 1 Appendix 5B Mining exploration entity or oil and gas exploration entity quarterly cash flow report Consolidated statement of cash flows 2.2 Current quarter $A’000 Year to date (9 months) $A’000 Proceeds from the disposal of: (a) entities - - (b) tenements - - (c) property, plant and equipment - - (d) investments - - (e) other non-current assets - - 2.3 Cash flows from loans to other entities - - 2.4 Dividends received (see note 3) - - 2.5 Other (provide details if material) - - 2.6 Net cash from / (used in) investing activities (454) (1,215) 3. Cash flows from financing activities 3.1 Proceeds from issues of equity securities (excluding convertible debt securities) - 2,367 3.2 Proceeds from issue of convertible debt securities - - 3.3 Proceeds from exercise of options - - 3.4 Transaction costs related to issues of equity securities or convertible debt securities - (216) 3.5 Proceeds from borrowings - - 3.6 Repayment of borrowings - - 3.7 Transaction costs related to loans and borrowings - - 3.8 Dividends paid - - 3.9 Other (provide details if material) - 32 - 2,183 1,152 250 - Receipt of Director Working Capital loans 3.10 Net cash from / (used in) financing activities 4. Net increase / (decrease) in cash and cash equivalents for the period 4.1 Cash and cash equivalents at beginning of period 4.2 Net cash from / (used in) operating activities (item 1.9 above) (92) (613) 4.3 Net cash from / (used in) investing activities (item 2.6 above) (454) (1,215) ASX Listing Rules Appendix 5B (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms. Page 2 Appendix 5B Mining exploration entity or oil and gas exploration entity quarterly cash flow report Consolidated statement of cash flows Current quarter $A’000 Year to date (9 months) $A’000 4.4 Net cash from / (used in) financing activities (item 3.10 above) - 2,183 4.5 Effect of movement in exchange rates on cash held 2 3 4.6 Cash and cash equivalents at end of period 608 608 5. Reconciliation of cash and cash equivalents at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts Current quarter $A’000 Previous quarter $A’000 5.1 Bank balances 608 1,152 5.2 Call deposits - - 5.3 Bank overdrafts - - 5.4 Other (provide details) - - 5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above) 608 1,152 6. Payments to related parties of the entity and their associates 6.1 Aggregate amount of payments to related parties and their associates included in item 1 45 6.2 Aggregate amount of payments to related parties and their associates included in item 2 11 Current quarter $A'000 Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity report must include a description of, and an explanation for, such payments. ASX Listing Rules Appendix 5B (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms. Page 3 Appendix 5B Mining exploration entity or oil and gas exploration entity quarterly cash flow report 7. Financing facilities Note: the term “facility’ includes all forms of financing arrangements available to the entity. Add notes as necessary for an understanding of the sources of finance available to the entity. Total facility amount at quarter end $A’000 Amount drawn at quarter end $A’000 7.1 Loan facilities - - 7.2 Credit standby arrangements - - 7.3 Other (please specify) - - 7.4 Total financing facilities - - 7.5 Unused financing facilities available at quarter end 7.6 Include in the box below a description of each facility above, including the lender, interest rate, maturity date and whether it is secured or unsecured. If any additional financing facilities have been entered into or are proposed to be entered into after quarter end, include a note providing details of those facilities as well. 8. Estimated cash available for future operating activities 8.1 Net cash from / (used in) operating activities (item 1.9) (92) 8.2 (Payments for exploration & evaluation classified as investing activities) (item 2.1(d)) (454) 8.3 Total relevant outgoings (item 8.1 + item 8.2) (546) 8.4 Cash and cash equivalents at quarter end (item 4.6) 608 8.5 Unused finance facilities available at quarter end (item 7.5) 8.6 Total available funding (item 8.4 + item 8.5) 608 8.7 Estimated quarters of funding available (item 8.6 divided by item 8.3) 1.11 - $A’000 - Note: if the entity has reported positive relevant outgoings (ie a net cash inflow) in item 8.3, answer item 8.7 as “N/A”. Otherwise, a figure for the estimated quarters of funding available must be included in item 8.7. 8.8 If item 8.7 is less than 2 quarters, please provide answers to the following questions: 8.8.1 Does the entity expect that it will continue to have the current level of net operating cash flows for the time being and, if not, why not? Answer: Yes, the entity anticipates operating at a similar level to the current quarter should fun