Earnings release
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1 www.americanwestmetals.com (ASX: AW1) QUARTERLY ACTIVITY AND CASHFLOW REPORT – MARCH 2025 For personal use only
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www.americanwestmetals.com (ASX: AW1) 2 HIGHLIGHTS Storm Copper Project, Canada Positive Preliminary Economic Analysis (PEA) defines Pathway to Production: • Initial production target. Study on a starter operation at Storm based on mining inventory of 10.3Mt @ 1.3% Cu, 3.7g/t Ag delivers 487,000t of copper concentrate at 17.1% Cu, 49g/t Ag1 • 10-year production plan. Initial mine plan covers 10 years of production with scope to increase both the scale of the mining operation and the mine life with potential increases in the Storm Mineral Resource Estimate (MRE) • Attractive financials. Robust economics (estimated based on the assumptions in the base case and assuming no leverage): Total revenue - Approx. US$839m Post-tax NPV8 - Approx. US$149m Post-tax IRR - Approx. 46% • Low-cost operation. Very low capex and operating costs of approximately: Initial CAPEX - US$47.4m Life of mine CAPEX - US$80.3m C1 Cost - US$2.63/lb • Enhanced shareholder returns with leverage. Pre-tax IRR of approximately 135% with project development using 100% debt finance. American West is in discussions with a number of parties that are considering proposals to provide off-take finance or other debt solutions for development of Storm • Innovative processing with high ESG credentials. Simple ore-sorting and beneficiation produces a high- quality copper-silver product with zero deleterious elements, chemicals, and tailings • Mine permitting to commence. Mine permitting will now be initiated based on the PEA • Continued development during 2025. Activities will include the completion of key studies required to advance the Pre-Feasibility Study (PFS) 2025 drilling to accelerate copper growth: • 2024 discoveries ready for resource definition drilling. Potential to rapidly increase the MRE through resource definition drilling of new discoveries, including: o The Gap – a strong EM anomaly confirmed with drilling that returned 20m @ 2.3% Cu from 28m o Cyclone Deeps – potential continuation of the large Cyclone Deposit at depth with drill intercepts such as 10m @ 1.2% Cu from 311m o Cirrus Deeps – high-priority EM target with stratigraphic setting similar to Cyclone Deeps 1 See ASX announcement dated 3 March 2025, Storm Copper Preliminary Economic Study. For personal use only
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www.americanwestmetals.com (ASX: AW1) 3 • Regional targets highlight large endowment potential. Pipeline of large-scale exploration targets along the 110km copper belt including: o Tornado/Blizzard – located 5km east of the Storm copper deposits the area hosts a 3.2km x 1.5km geochemical copper anomaly and two large electromagnetic (EM) plates yet to be drilled o Midway – 58m of visual copper sulphide identified in historical drilling approximately 5km to the west of the Storm MRE area • Geophysics to generate new targets. Large airborne Mobile Magneto-Telluric (MT) survey planned for the Storm MRE area and other areas of interest along the 110km prospective copper horizon during 2025 • Preparations for 2025 field season well advanced . The sealift operation completed in Q4 2024 delivered bulk supplies to Storm in preparation for the 2025 field season, significantly streamlining logistics to enable a short lead time for start of drilling in 2025 and reducing 2025 costs by circa. $4.0m West Desert Project, Utah • The Company is continuing to evaluate strategies to unlock the value of this large and strategic critical minerals deposit including a potential spin-out or other commercial arrangement for the Project • West Desert represents the only JORC compliant indium resource in the US with a JORC 2012 Inferred Mineral Resource Estimate (MRE) for indium of: 33.7Mt @ 20g/t In and 0.1g/t Au for 23.8Moz of indium and 119Koz of gold1 • West Desert is rated as one of the largest undeveloped indium deposits globally; with only 10% of the project area explored and only 35% of drill holes sampled and assayed for indium, there is also potential to rapidly increase the already large-scale indium resource • The Company is also looking at various means of funding to advance the Project including US Government grants for critical mineral projects Copper Warrior Project, Utah • American West Metals and Bronco Creek Exploration have agreed to extend the option period over the Project into a fourth year to allow further exploration • Copper Warrior is located 15km north of the Lisbon Valley Copper Mine, which has recently been added to the Trump Administrations FAST-41 critical mining projects list – an initiative aimed at fast tracking the permitting and approval process 1 See Table 8 of this ASX announcement and ASX release dated 13 December 2023. For personal use only
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www.americanwestmetals.com (ASX: AW1) 4 Corporate • American West Metals and Ocean Partners Holdings Ltd ( OP) – a global metal trading, technical advisory and financing company – have entered into a partnership and funding agreement for the development of the Storm Copper Project ( Storm or the Project). The binding heads of agreement includes: o US$2m Private Placement – OP will subscribe to fully paid ordinary shares of American West to the value of US$2m o Project Financing – OP will provide up to 80% of initial capital for the development of the Project via a senior secured loan facility, subject to a bankable feasibility study and formal documentation o Offtake – OP’s subscription under the Private Placement is subject to American West and OP entering into a binding offtake agreement (Offtake Agreement) which secures OP 100% of the offtake of copper and silver products from the Project forecast under the Prelimi nary Economic Analysis (PEA) o Technical and copper market advisory . The American West/OP strategic alliance will work together to optimise and advance the development activities to define the best outcomes for the Project • Taurus Mining Royalty (Taurus) agreed to advance the US$3.5m second tranche of the Royalty payment based on the positive Storm PEA results, with payment of US$2.8m made to American West on 28 April 2025 For personal use only
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www.americanwestmetals.com (ASX: AW1) 5 American West Metals Limited (ASX: AW1) (“American West” or “the Company ”) is pleased to report on its quarterly activities for the period ending 31 March2025. Dave O’Neill, Managing Director of American West Metals commented: “This quarter has seen the delivery of two very important milestones for Storm, which position the project as what could be the first major copper mine in the Canadian Arctic, joining other very successful base metal mines in the region such as Polaris (22Mt @ 14.1% Zn, 4% Pb) and Nanisivik (18Mt @ 9% Zn, 0.7% Pb). “The initial economic study for the Storm Copper Project has highlighted a low capital cost pathway to mine development with significant upside to expand the production profile and mine life as our continuing exploration identifies further copper resources. “There is very strong potential to quickly add tonnes to the existing mineral resource estimate. With the scoping study supporting the economic potential of a mining operation at Storm, any increase in the resource is likely to further enhance the potential economics of that mining operation. “The strategic partnership and funding package for the Storm Copper Project secures the long-term future of the Project. American West ’s ability to attract and partner with global companies like Ocean Partners speaks volumes to the high-quality of the Project and the management team, and emphasises the low -risk pathway to potential development. “Ocean Partners’ existing partnerships and experience with ore- sorting and direct shipping ores ( DSO) copper products are a natural fit with Storm and will help strengthen and streamline the technical aspects of the processing work flow for the PFS and beyond. “On the back of these important milestones for Storm, Taurus has agreed to advance the second tranche of the royalty payment. This tranche of funding was made available immediately and demonstrates Taurus’ strong belief in the development and growth potential of Storm. “The funding package and strategic partnership will allow American West to execute the dual strategy of aggressive exploration and streamlined development during 2025. We look forward to updating investors as the work programs are finalised and get underway.” “Corporate and business development activities have also continued on West Desert and Copper Warrior with the aim to maximise the value of these important US assets. “We thank shareholders for their ongoing support and look forward to providing continued strong news flow with a busy and productive year in 2025.” For personal use only
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www.americanwestmetals.com (ASX: AW1) 6 STORM COPPER NUNAVUT, CANADA For personal use only
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www.americanwestmetals.com (ASX: AW1) 7 STORM PRELIMINARY ECONOMIC ANALYSIS PROJECT OVERVIEW The Storm Copper Project is an undeveloped and open- pit mining opportunity located on northern Somerset Island, Nunavut in the Canadian Arctic Archipelago. The Project lies within the Polaris Mineral District which includes the historical Polaris and Nanisivik zinc-lead Mines. The Project is centred around an existing copper -silver resource of 20.6Mt at 1.1% Cu and 3.8g/t Ag which contains 229Kt of copper and 2.2Moz of silver (using a 0.35% Cu cut-off)1. The PEA is based on the following assumptions and parameters: • Year-round mining and processing over a 10-year life • Initial mine production of approximately 850Ktpa, ramping up to 1.25Mtpa during year 3 • Mining commences at the outcropping Chinook and Corona Deposits to access 1.8-2.0% copper mineralisation • Mining of mineralisation from the large and flat-lying Cyclone Deposit commences during year 3 • Over 78% of the resource included within the initial mine plan is classified under the JORC Indicated Category, with 22% classified as Inferred • The processing occurs in stages beginning with an ore-sorting circuit, followed by the introduction of a dense media separation (DMS) plant during year 3 • Annual copper and silver production peaks at 15,360t and 136,100oz respectively during year 6 • Estimated development and first production to begin within 2-3 years The ore sorting and DMS processing techniques used at Storm are a simple, highly effective, low-cost, and low- footprint method of treating the Storm copper-silver mineralisation. The copper-silver product is stored in containers and shipped to market during the summer months on reliable shipping routes. The closest destination port is the Port of Montreal, Quebec, Canada. This port is serviced by an extensive rail network with direct access to Canada and the US. During peak operations, the project will accommodate approximately 120 personnel with the work force using fly-in, fly-out style rosters. This PEA has been prepared to confirm the Projects potential to become an extremely low -cost, highly ESG credentialled copper and silver mine, that will form the basis of a larger and longer term, belt -scale growth opportunity. The PEA includes mining from all the Storm copper deposits and confirms the amenability of the resources to traditional open-pit mining. For full details of the study see ASX release dated 3 March 2025: Storm Copper Project Preliminary Economic Analysis. 1 See Table 7 of this ASX announcement and ASX release dated 16 December 2024 For personal use only
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www.americanwestmetals.com (ASX: AW1) 8 OPEN PIT OPTIMISATION The resource models have been regularised to a selective mining unit that is suitable for blasting and mining operations. The result of the regularisation process is that there is an increase of ore tonnes of 3% and a loss of contained copper of 5%. For this PEA these factors are considered adequate for ore loss and dilution. A range of pit optimisations were completed using indicated and inferred resources to determine if there were opportunities to simplify and lower the initial costs of the processing plant by using an ore sorting only option. This scenario would begin by mining higher-grade mineralisation and allow the deferral of a significant amount of processing capital. The results of the optimisation were highly positive and confirmed the potential to target the higher grade, outcropping deposits early in the mine life. OPEN PIT DESIGNS Given the high level of resource confidence, it was decided to manually generate pit designs for the first few years of production to generate a higher level of confidence in the mine plan. These initial pits are classified as ‘Stage 1’ and were designed f or the Chinook, Corona, Thunder, and Cyclone Deposits, and ensure early access to the higher-grade ores whilst minimising the stripping of waste. The remainder of the life of mine pits were created as optimised shells. The Life of Mine (LOM) strip ratio is 4.4. Mining will use 5m benches mined as a single bench, or in 2.5m flitches, using 100- 150t excavators and 100t rigid body dump trucks. With only a single mining fleet in operation for each pit, the optimised designs could be more aggressive and used 12m wide ramps and allowed for passing bays at every berm. Figure 1: Storm Copper Project open-pit shells and MRE blocks (Indicated and Inferred Classification). For personal use only
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www.americanwestmetals.com (ASX: AW1) 9 MINING SCEHDULE The aim of the mine production schedule is to generate a practical and achievable schedule taking into account the differing geometry and copper grade of the orebodies, and the most efficient and lowest cost processing options. The selected mining schedule initially takes advantage of the higher average grades and outcropping nature of the copper mineralisation within the Chinook and Corona Deposits. These deposits provide an opportunity to mine and process during the first two years with a processing circuit consisting of ore sorters only. This scenario has the advantage of deferring the capital for the Inline Pressure Jig (IPJ ) fines circuit until later in the mining schedule. This mining scenario also allows the simultaneous st ripping of waste from the flat lying deposits to expose the copper mineralisation for subsequent mining. The current mine schedule includes 10.3Mt @ 1.32% Cu, 3.79g/t Ag being sent to the processing plant, to deliver 487,00t of copper-silver product at 17.1% Cu, 49g/t Ag. The introduction of lower-grade mineralisation from the remaining resources during Year 3 coincides with the implementation of the IPJ circuit. The combined ore sorting/IPJ process maintains a consistent copper product grade and delivers higher recoveries with the finer grained mineralisation in the later years of the mine plan. The initial two years of the mining schedule produce approximately 4.3Mtpa, ramping up to approximately 11.5Mtpa per year for the remainder of the LOM. Mining operations currently last for 6 years, with the process grade dropping soon after mining is complete and when the process feed is sourced solely from stockpiles. The lower mining volumes in the initial mine plan will utilise a single 100t excavator and 100t dump truck fleet. For the ramp up of production during Year 3, a 150t excavator is also brought to site and these two machines (with the associated fleet of 100t dump trucks) are sufficient to keep up with process feed requirements. Approximately 78% of the ROM feed is classified as Indicated and 22% is classified as Inferred resources. Inferred resources average 43% of the overall ROM feed processed during Year 1 of production, 37% during Year 2, and then reduces to an average of app roximately 20% during the remaining mine life. The percentage of Inferred resources early in the mine plan is not a determining factor for project viability due to the lower volumes of ROM material mined compared to later years. For personal use only
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www.americanwestmetals.com (ASX: AW1) 10 PROCESSING SCHEDULE The crushing and processing schedule mimics that of the mining schedule with the addition of four years of continuing stockpile process feed after mining ceases. Processing production commences at approximately 2,260tpd (825Ktpa) with the use of two ore sorters. The average copper and silver grades during the initial processing phase is 2.06% Cu and 3.65g/t Ag to achieve and average copper-silver product grade of 19.2% Cu and 35g/t Ag. The processing ramps up to 3,390tpd (1.25Mtpa) with the commissioning of the remainder of the processing circuit during Year 3, with three ore sorters and the IPJ circuit. The average copper and silver grades over the remainder of the mine life are 1.4% Cu and 4.25g/t Ag producing an average copper-silver product grade of 17% Cu and 50g/t Ag. Figure 2: Storm Copper Project annual mining and processing schedule. METALLURGY AND MINERAL PROCESSING Metallurgical studies were initiated by American West and multiple phases of test work have been completed between 2022 and 2024. The tests studied the upgrade performance of a range of sensor based and gravity technologies using large volumes of diamond drill core sourced from the Chinook and Cyclone Deposits. The mineralisation was tested over a wide range of copper grades an d size fractions to determine the upgrade potential across the mineral resource. For personal use only
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www.americanwestmetals.com (ASX: AW1) 11 The test results confirmed that the Cyclone and Chinook copper mineralisation is extremely amenable to upgrading, and could generate a product with target of 16- 22% Cu from Cyclone and Chinook ore -grade materials. The studies show a direct correlation betw een copper grade, copper recovery, and mass yield performance. The higher the copper grade, the coarser the sulphide veining, and thus, the easier the sulphide particles liberate from the host rocks (dolomitic host rocks). Silver is common in most copper m inerals and its upgrade performance is directly related to that of the copper. Of all of the tests completed, ore -sorting and wet jigging (a gravity separation technique) using the Inline Pressure Jig (IPJ) produced the most favourable upgrade results, and the combination of the two circuits allowed both the coarse (>11.2mm) and fine fractions (<11.2mm) to be processed effectively. Steinert Ore Sorters and Gekko Inline Pressure Jigs ( IPJ) were used for the tests and the assumptions of the PEA are based around the use of these machines for the process plant. An independent review of the ore sorting test work by consultants SIX-S helped to refine the mineralogical and metallurgical assumptions for the PEA, the ongoing study efforts on recoveries and process flow diagrams, and determine recommendations for the n ext steps. A series of algorithms were developed from the current data sets that represent best-fit equations for mass yield and copper recovery based on copper feed grade and the desired finished copper product grade. The Bond Ball Mill Work Index tests were used during the study to determine the hardness and grindability of the ores, with the ore-grade sample described as ‘soft,’ returning an index of 8.65, and the lower grade sample returned an index of 9.59. These ores exhibited low specific energy requirements for the crushing and screening. The highly favourable metallurgical results were used to generate a design process flow diagram (PFD ) incorporating particle ore sorters and Inline Pressure Jigs ( IPJ) to produce a copper product with a pre -defined grade (PEA target grade is 17-20% Cu). CRUSHING AND CLASSIFICATION The feed rate for the crushing and classification circuit begins at approximately 140tph, with an increase to approximately 270tph during Year 3. A jaw crusher receives the ROM feed via a variable speed drive controlled grizzly vibe feeder. The grizzly allows a nominal < 50mm to bypass the crusher. The crusher and grizzly outputs then report to a two-deck classification screen. The classification screen separates the crushed material base on particle size, with the >10mm fraction fed to the ore sorting circuit (approximately 70% of the mass), and the <10mm fed to the IPJ circuit (approximately 30% of the mass). ORE SORTING The >10mm material from the classification screens is fed to the XRT sensor ore sorters for partitioning into copper concentrate and rejects. The rejects generally contain fine grained copper and are sent to a low -grade stockpile. The concentrate grade product is sent to a tertiary crusher for sizing to <10mm to allow blending with the finished IPJ product. The base case scenario commences with two ore sorter units operating side by side, ramping up to three units in Year 3. The three ore sorters produce an estimated throughput of approximately 150tph. Given the modular nature of the ore-sorter units, the circuit can be easily scaled up if an increase in throughput is desired. For personal use only
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www.americanwestmetals.com (ASX: AW1) 12 GRAVITY SEPARATION The fine <10mm material that is passed from the classification screens is fed to a rougher Inline Pressure Jig (IPJ) circuit. The rougher processes approximately 45tph and delivers concentrate feed particles directly into a IPJ cleaner. The IPJs are a closed system that use recirculated water with estimated water losses of <5%. FINISHED PRODUCT The final products from both the ore sorting and IPJ circuits is nominally sized at <10mm. These two copper- silver products are recombined and containerised for overland transfer to the MLA, and subsequent shipping to market. The layout plan below ( Figure 3) reflects a general arrangement depicting the 2 -circuit ore-processing scheme that encompasses sensor- based ore sorting followed by gravity beneficiation using in -line pressure jigs. Two products are generated, a high-grade copper-silver product for market, and a lower-grade copper stockpile for future processing. Figure 3: Storm Copper Project Process Flow Diagram for the Processing Circuit. For personal use only
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www.americanwestmetals.com (ASX: AW1) 13 INFRASTRUCTURE AND SERVICES The Project includes three major facilities which will include the mine-plant-power complex, camp-aerodrome, and marine laydown area (MLA). These features will support the multiple open pits, mine-to-plant ore delivery and ROM ore stockpiles, the in -pit an d ex -pit waste rock storage facilities (WRSF), haulage roads, finished product storage, and heavy-civil infrastructure. POWER The largest power generation station and generator building exists at the mine -plant-power complex. Smaller satellite generators were located at the MLA and camp -aerodrome complex for the lighter energy demands. The generator buildings along with the maintenance shop warehouse were planned as pre-engineered buildings for the purposes of climate and environmental controls, principally for reasons of fuel/lube storage-transfers. FUEL The total on-site fuel usage requires 12 million litres of annual storage and containment at the diesel fuel farm. Split storage capacity exists between the MLA, camp-aerodrome complex and mine-plant-power complex. Figure 4: Storm Copper Project infrastructure and facility general layout. For personal use only
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www.americanwestmetals.com (ASX: AW1) 14 LOGISTICS AND SHIPPING All supplies are delivered and removed from Somerset Island via cargo ships that are equipped for sealift. Sealift activities are carried out using large, tugboat- guided barges that are maneuvered onto a suitable beach, and then off-loaded using large wheeled loaders. Materials are hoisted from the ship to the barges (and vice versa) using large cranes. This system advantageously removes the need for wharfs or other port infrastructure to load and unload bulk cargo. The NEAS cargo ship, Mitiq, has recently completed a sealift operation at the Storm Project, confirming the amenability of Aston Bay and the current MLA as suitable areas of operations. The sealift has clearly demonstrated the complete logistics chain for a potential mining operation at the Storm Project. The copper-silver product from Storm will be stored in half -sized sea containers and shipped to market during the summer months. The product will be transported as back loads (retrograde) on empty ships returning to port on the east coast of Canada. The cl osest destination port is the Port of Montreal, Quebec. This port is serviced by an extensive rail network with direct access to Canada and the US. APPROVALS AND SUSTAINABILITY COMMUNITY American West and its joint venture partner, Aston Bay Holdings Ltd., have actively engaged with the community of Resolute over several years through site tours, regulatory inspections, and direct communication. Given the Project’s location on Crown land, multiple regulatory authorities are involved in decision -making processes. To guide engagement with local communities, Inuit associations, and government stakeholders, a Community Engagement Plan has been developed. This plan is designed to support the Project’s progression through future construction, operations, and closure phases. In Nunavut, the level of community engagement required for permitting mining activities is significantly greater than that for the exploration phase. Meaningful engagement is essential for advancing the Project, building trust, aligning benefits with commu nity needs, and addressing concerns early in the process. The Engagement Plan identifies potentially affected Inuit communities, organizations, and government entities, ensuring a structured and transparent approach to communication. The Joint Venture Partners have maintained ongoing communication with the Community and Council of Resolute through Community Information Sessions, food bank donations, and local workforce hiring. Engagement efforts date back to 2016, when Aston Bay, along with BHP Billiton (“BHP”), conducted visits to Iqaluit and Resolute Bay to meet with stakeholders and address community concerns. ENVIRONMENTAL ASSESSMENT A key component and long lead permitting requirement for the project are detailed baseline studies for flora and fauna. These studies were initiated during 2022, 2023 and 2024, and data collection continues. The studies completed to date have included; • Waste rock and acid-based accounting • Surface water quality, fish habitat, and hydrology • Terrestrial wildlife flora and fauna • Marine mammal For personal use only
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www.americanwestmetals.com (ASX: AW1) 15 The studies have covered the larger Somerset Island and Somerset-Quebec shipping routes, and more localised assessments focused specifically on the Storm Project area. The initial flora and fauna studies indicate that the Storm area is a typical Arctic environment and that there is low potential for endangered or critical species. On rare occasions, field crews have observed typical Arctic fauna such as Polar Bears, various bird species, Arctic Fox, and Musk Oxen outside of the Project area. It is noted that the design of infrastructure should consider the potential for migratory animals. The hydrological and surface water activities have studied local streams and lakes, confirming that a number of lakes have depths exceeding 20m and likely do not freeze during the winter. DNA sampling noted the potential for fish within the deeper lakes. Discussions with the community at Resolute indicate that Arctic Char (a common type of Salmon) can be found in Aston Bay, where they fish most years during the Autumn. Future water extraction and impacts of water extraction will form a detailed part of any pre-feasibility study. Studies on waste rock have confirmed the low potential for acid and metal leaching from waste dumps and the open pit voids. A weather station was installed during 2024 and is collecting a wide range of meteorological data on an hourly basis. Shipping is expected to have a very low impact on the local assessment area, and almost zero impact on the regional assessment area, as the ships would most likely have already been travelling past Somerset Island for other regional sealift activities. Further work in the next phase of studies will include extensions and broader assessment of the current flora and fauna surveys for continuing baseline adequacy along with the critical input of Indigenous communities and other key project stakeholders. These activities will form the basis of the Environmental Assessment (EA) which will be prepared in support of the application for mining leases and permit approval. PERMITTING The Nunavut Agreement (NA ) and the Nunavut Land Claims Agreement (NCLA ) are the basis for land and resource management in Nunavut. Land in Nunavut is classified as either Crown land, Commissioner's land, or Inuit Owned Land (IOL ). Mineral exploration and mining activities in Nunavut are co -managed by the Government of Canada ( GC), the Government of Nunavut ( GN), Nunavut Tunngavik Incorporated (NTI), the Regional Inuit Associations (RIA) and various Institutions of Public Government. Crown-Indigenous Relations and Northern Affairs Canada (CIRNAC) administers Crown land through the federal Territorial Lands Act ( TLA). The TLA and its regulations govern the administration and disposition of mineral rights, and access to those rights. The Territorial Land Use Regulations (TLUR) regulate surface activities related to mineral exploration and mining and the Nunavut Mining Regulations regulate subsurface mineral exploration. Based on the Project’s location on Crown land, the key regulatory authorities (RAs) involved in decision-making on project proposals, land use, and the use of water will be: • Nunavut Water Board (NWB) • Nunavut Planning Commission (NPC) • Nunavut Impact Review Board (NIRB) • Crown-Indigenous Relations and Northern Affairs Canada (CIRNAC) The PEA and associated environmental studies form the basis for the Project permitting submission to the NPC. For personal use only
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www.americanwestmetals.com (ASX: AW1) 16 The typical duration to complete the permitting through the complete NPC/NIRB process is stated as approximately 3 Years. Given the advanced nature of environmental baseline studies and other ESG activities, American West believes that this represents a reasonable timeframe to development and first production. If the project proposal is not referred to NIRB, then permitting and commencement of development can potentially occur within 1-2 years. FINANCIAL ANALYSIS CAPITAL COSTS Capital cost estimation for the PEA is based on inputs from advisors Sacre-Davey and Nexus-Bonum, and on the basis of detailed infrastructure and process planning and designs. Pre-development costs are required to ramp-up the exploration and development activities and are included in the LOM summary table below. The capital estimates are appropriate for this level of study and have a confidence range of +30%/ -20%. Contingency has been applied to all capital estimates. Capital Expenditure Item Pre-Develop US$M Initial US$M LOM US$M Mining Infrastructure 1.0 3.1 4.8 Infrastructure & Site Facilities 1.7 7.2 11.3 Processing 3.0 9.4 18.7 MLA 1.0 3.5 4.5 Aerodrome - Camp 1.0 3.7 5.6 Advanced Project Expense 3.0 - 3.0 Construction Owners Costs - 0.6 0.8 Construction & Indirects 2.2 10.4 16.6 Contingency 1.8 9.5 15.0 Total 14.7 47.4 80.3 Table 1: Storm Copper Project Capital Cost estimates – Base Case. For personal use only
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www.americanwestmetals.com (ASX: AW1) 17 OPERATING COSTS The operating costs estimates for the PEA base case are derived from inputs from advisors Sacre -Davey, Ausenco, and Nexus-Bonum. These estimates have been benchmarked against industry standards and other projects located in Nunavut, NWT, and other regions of Canada. Royalites and taxes are based on published data from the Nunavut and Canadian Governments. The operating cost estimates have been compiled and factored from unit rate data from the above consultants. Operating Cost Item LOM US$/t Ore Mining 23.48 (4.33/total t) Processing 4.39 Site and General Administration 11.96 Closure and Rehabilitation 0.67 Ship loading, Port Management, Treatment, Refining 6.87 Total 47.37 Table 2: Storm Copper Project estimated Operating Costs – Base Case. ECONOMIC EVALUATION A discounted cashflow analysis has been undertaken for the Storm Copper Project using a staged mining and processing schedule. The key cashflow metrics presented represent a 100% equity based funding scenario, using a copper price of $4.60/lb, and determined to be reasonable based conservative price forecasts, current spot pricing, and the increased demand in copper metal. A 100% debit funded scenario is also presented below to highlight the effect on the economics with various funding strategies. A summary of the estimated results of the cashflow models are presented in Table 4 and Table 5. All metrics are presented in US dollars. Financial Summary – Equity Scenario LOM US$M Revenue ~839 Net Cash Flow (Post-tax) ~191 Pre-tax NPV (8% discount rate) ~182 Post-tax NPV (8% discount rate) ~149 Pre-Tax IRR ~52% Post-tax IRR ~46% Capital Payback Period – Years from first production ~3 Table 3: Storm Copper Project Approximate Key Economic Outputs – 100% Equity Scenario. For personal use only
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www.americanwestmetals.com (ASX: AW1) 18 Financial Summary – Debt Scenario LOM US$M Revenue ~818 Net Cash Flow (Post-tax) ~156 Pre-tax NPV (8% discount rate) ~146 Post-tax NPV (8% discount rate) ~115 Pre-Tax IRR ~135% Post-tax IRR ~118% Capital Payback Period – Years from first production ~1.6 Table 4: Storm Copper Project Approximate Key Economic Outputs – 100% Debt Funding Case. Figure 5: Storm Copper Project approximate Annual Cashflows after tax- 100% Equity Scenario. For personal use only
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www.americanwestmetals.com (ASX: AW1) 19 SENSITIVITY ANALYSIS Sensitivity analysis was completed to determine the impact of a range of factors on the Project’s financial performance. The following factors were reviewed: • Copper Price • Mining Costs • Processing Costs • G & A Costs • CAPEX Costs The analysis has been completed on the estimates of the post-tax NPV, with the key sensitivities tested between -20%/+20%. While the analysis indicates that the Project is most sensitive to copper price, mining costs, and G&A costs, it also highlights that the robust economics in all sensitivity ranges. Figure 6: Storm Copper Project NPV sensitivity analysis - approximate values For personal use only
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www.americanwestmetals.com (ASX: AW1) 20 NEAR MINE RESOURCE OPPORTUNITIES The open mineralisation of the known Deposits, recent discoveries of high- grade copper mineralisation in the Storm area, and the largely untested 110km prospective copper horizon, highlight the outstanding potential for the discovery and definition of further resources within the existing project tenure. The three highest-priority targets in the Storm area include Cirrus Deeps, Cyclone Deeps, and the Gap Prospect. (Figure 7). These opportunities have thick intervals of high -grade copper mineralisation, and/or have the potential to rapidly expand the mine life of the Storm Project with very little drilling. Figure 7: Plan view of the Storm area showing the high-priority areas with potential for further growth of copper mineralisation based on drilling, geochemical sampling and geophysics, overlaying copper deposit outlines, geology, and topography. For personal use only
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www.americanwestmetals.com (ASX: AW1) 21 Cyclone Deeps High-grade copper mineralisation has been discovered at depth, and offset to the south of the Cyclone Deposit (13.1Mt @ 1.2% Cu, 4.0g/t Ag - Figure 8)1. The Cyclone Deeps intersection of 10m @ 1.2% Cu (drill hole ST24- 01) displays a typical sediment hosted copper mineralogical profile with a high-grade core of native copper and chalcocite (including 3m @ 2.2% Cu) with peripheral chalcopyrite and other less copper -rich sulphide minerals (see ASX release dated 31st January 2025: Quarterly Activities and Cashflow Report). The copper mineralisation is hosted near the top of a thick sequence of fractured dolomudstone of the Allen Bay Formation. The Allen Bay is the main host of the known copper mineralisation within the Storm area, and the stratigraphic position near the top of the formation also hosts Cyclone, the largest deposit discovered to date. This mineralisation may represent the missing southern portion of the faulted Cyclone Deposit and presents as an exceptional opportunity to add significant volume to the current r esources. This prospective horizon extends for over 5km in the immediate Storm area. Figure 8: Schematic geological section at 464730E The mineralisation intersected by ST24- 01 is situated immediately below the Cape Storm Formation, similar to the Cyclone Deposit. 1 See Table 7 of this ASX announcement and ASX release date 16 December 2024. For personal use only
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www.americanwestmetals.com (ASX: AW1) 22 Cirrus Deeps Diamond drill hole ST24-03 was designed to target a 1,300m x 500m MLEM anomaly ( Figure 10 – EM anomaly A1) which is bounded by a series of large, steeply dipping EM plates (approx. 350m to top, cond uctance ~40- 60S, moderate ~40-60deg S/SW dip, striking ~WNW-ESE) at its the northern edge. The series of EM anomalies are located below the Cirrus Deposit and the Gap high -grade copper prospect, and are interpreted to be proximal to the Southern Graben Fault. This stratigraphic location below the Cape Storm Formation, and similar depth to that of the Cyclone Deeps target. These two prospects may be indicative of a large, connected accumulation of copper within the Central Graben area. ST24-03 has currently been drilled to a downhole depth of 414m (planned depth of 600-700m) and intersected several zones of fracturing and sporadic copper sulphides (Figure 9) in the upper portion of the hole. An increase in fracturing and the presence of voids at the current depth resulted in reduced circulation and the loss of drilling fluids (and salt). The drill hole had to be suspended pending the delivery of more salt (now completed), and will be completed as the priority in the 2025 drill program. Figure 9: NE-SW geological section view through ST24-03 (looking NW) showing the Cirrus Deposit, interpreted Southern Graben Fault and modelled MLEM conductors. The planned drill hole depth is 650- 700m. For personal use only
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www.americanwestmetals.com (ASX: AW1) 23 The Gap Prospect The Gap is defined by a 500m-long zone and bullseye EM anomaly located between the Corona and Cirrus copper deposits (Figure 10), where multiple drill holes have intersected high-grade copper sulphides, including 20m @ 2.3% Cu, 3.3g/t Ag (Including 8m @ 5.3% Cu, 6.4g/t Ag) from 28m in SR24-003 (see ASX release dated 31January 2025: Quarterly Activities and Cashflow Report). Follow-up drilling will aim to quickly a define a resource at the prospect by expanding the footprint around the current high-grade mineralisation. Figure 10: 400m loop MLEM image (CH20BZ) overlaying drilling and structural interpretation of the Storm area. REGIONAL EXPLORATION TARGETS The Project covers over 110km of stratigraphy that is host to multiple deposits and occurrences of copper and zinc sulphides (Figure 14). Whilst the majority of work on the P roject has been focused in the immediate area of the Storm MRE, regional exploration has confirmed the prospectivity of the entire stratigraphic horizon. Each one of these regional prospects has the potential to yield another Storm-style mineralisation camp. The immediate focus for the regional exploration will be to drill along the highly prospective Midway -Storm- Tornado corridor. This 20km+ mineralised trend is centered on the known Storm copper deposits and is controlled by the large -scale and laterally extensive Storm Graben. There is strong geological and geophysical support for the prospectivity of this area and for potential significant expansion of the known copper mineralisation. For personal use only
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www.americanwestmetals.com (ASX: AW1) 24 Midway Prospect The Midway Prospect ( Figures 11 & 14) has been recently identified as an area of high priority following a reinterpretation of historical drilling, which identified thick intervals of visual copper sulphides. Drill hole AB18 -04 was completed by Aston Bay during the 2018 drilling program and was drilled to test the geology approximately 5km to the west of the known Storm Deposits. Figure 11: Plan view of the Midway -Storm-Tornado corridor with the 2018 drill hol es that will be sampled and assayed, overlaying regional geology and topography. See Table 3 and ASX release dated 16 December 2024 for details on the Storm Mineral Resource Estimate. The drill hole encountered a total of 58.49m of visual mineralisation which included two intervals with up to 2.5% of sulphide logged (Table 5). The mineralised intervals typically show vertical zonation with an interpreted chalcocite core, with pyrite and sphalerite interpreted on the margins. This profile indicates that the mineralisation is relatively flat-lying. The visual copper sulphides are hosted within heavily brecciated dolomites of the Allen Bay Formation, in a similar setting and stratigraphic level to the large Cyclone Deposit. The mineralised intervals also contain abundant organic material, which is a critical component copper mineralisation in the sediment hosted copper mineralisation model. Drill hole AB18-04 has not been sampled and will be processed immediately, along with four other historical drill holes, upon the commencement of the 2025 field program (Tables 5 and 6). Visual estimates of mineral abundance should never be considered a proxy or substitute for laboratory analyses where concentrations or grades are the factor of principal economic interest. Laboratory assays are required to For personal use only
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www.americanwestmetals.com (ASX: AW1) 25 determine the presence and grade of any contained mineralisation within the reported visual intersections of copper sulphides. Tornado and Blizzard Prospects The Tornado Prospect is located 5km along strike and to the east of the known Storm deposits. The prospect is centered on an area with abundant chalcocite and malachite boulders within a 3.2km x 1.5km geochemical copper anomaly. The large copper anomaly shares the same linear trend as the main str uctural features of the Storm Graben. Most of the anomalous copper samples are located proximal to the interpreted Northern Graben Fault, which is a similar setting to that of the large and laterally extensive Cyclone Deposit at Storm (Figure 11). The Moving Loop EM (MLEM) survey completed in 2024 has defined two strong anomalies at Tornado that are located within the prospective Allen Bay Formation. The interpretation of the 3D modelling indicates that the EM anomalies may be flat lying and located deeper than the current limit of the recent RC drilling and GeoTEM/VTEM survey detection (>150m vertical depth, Figure 12). The positive correlation between the recent MLEM and historical VTEM surveys supports the interpretation of the structural setting and deep copper potential at Tornado. Historical drill hole AB18-07 was drilled to a downhole depth of 300m and intersected the Allen Bay Formation with brecciation throughout the entire hole and logged visual copper oxide mineralisation (1- 4% abundance between 19.40m and 20.50m downhole – Table 5). Further to the east, though not covered by the recent MLEM survey, historical drill hole AB18-01/01B also intersected multiple intervals of disseminated and veinlet -hosted visual chalcocite (Figure 13). These drill holes have not been assayed (furth er information regarding historical drilling can be found within the Prospectus, ASX announcement dated 29 October 2021). The Tornado and Blizzard areas contain a compelling coincidence of ideal structural and stratigraphic setting, strong gravity and EM anomalies, and copper geochemistry, located just 5km along strike from Storm. Visual estimates of mineral abundanc e, type or habit should never be considered a proxy or substitute for laboratory analyses where concentrations or grades are the factor s of principal economic interest. Laboratory assays are required to determine the presence and grade of any contained mineralisation within the reported visual intersections of copper sulphides. For personal use only
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www.americanwestmetals.com (ASX: AW1) 26 Figure 12: Oblique section view of the drill line at the Tornado prospect looking WNW. The image shows MLEM image (CH18BZ) and geology (map view, top – warmer colours indicating higher conductivity) above 3D inversion shells from the 2011 VTEM survey (cross -section view, bottom – cooler colours indicating higher conductivity). The section location is illustrated as A – A’ in Figure 4. Figure 13: MLEM image (CH18BZ) of the Tornado and Blizzard 400m loop survey overlaying geology and interpreted major faults. Hotter colours indicate higher conductivity. For personal use only
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www.americanwestmetals.com (ASX: AW1) 27 Figure 14: Prospect location map of the Storm Project highlighting the main prospective copper and zinc stratigraphic horizons. 1 Seal zinc-silver deposit is a NI 43-101 foreign and historical resource and is not reported in accordance with JORC Code 2012. A competent person has not done sufficient work to classify the ‘foreign estimates’ as ‘mineral resources’ in accordance with t he JORC Code. It is uncertain the that following evaluation and/or further exploration work that the ‘historical estimates’ will be able to be reported as ‘mineral resources’ in accordance with the JORC Code. See the 29 October 2021 Prospectus for more information. For personal use only
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www.americanwestmetals.com (ASX: AW1) 28 Hole ID From (m) To (m) Min Description (min %) AB18-01b 89.90 91.45 cc Trace cc in diffuse veinlets (0.2%) 93.00 96.30 cc Trace cc in diffuse veinlets (0.2%) 99.85 102.00 cc Trace cc in diffuse veinlets (0.2%) 105.00 105.50 cc Trace cc in diffuse veinlets (0.2%) 184.55 185.70 chpy Fine disseminated chalcopyrite (0.1%) 197.00 203.00 cc Trace cc in diffuse veinlets (0.2%) 226.00 251.00 cc Trace cc in diffuse veinlets (0.2%) AB18-02c 7.70 10.00 chpy 1% chalcopyrite in veinlets AB18-04 137.00 137.10 sph Vuggy with organics and sphalerite (2%) 167.00 170.00 cc Fracture fill veinlets with cc (0.1%) 170.12 174.78 py/sph Vuggy with organics and sphalerite (0.2%) 193.84 194.16 py/sph Vuggy with organics and sphalerite (0.2%) 196.00 202.00 py Fracture veinlets (0.1%) 220.00 221.40 cc Veinlets of cc (0.1%) 255.00 257.68 cc Veinlets and blebs of cc (1%) 303.78 304.23 cc Veinlets of cc (0.1%) 306.00 309.20 py Rusty specks and veinlets (0.1%) 310.46 314.00 cc Cc veinlets (1%) 332.29 338.47 cc Abundant cc veinlets (2.5%) 341.90 344.28 sph/py Rusty specks (5%) 344.28 346.84 py/cc Abundant cc veinlets (2.5%) 346.84 352.37 cc Veinlets in dark rock (1% cc) 354.60 354.90 cc Lineated blebs of cc (1%) 360.27 366.88 cc Small scatter and needles of cc (0.1%) 366.50 368.20 py/sph Disseminations (0.2%) 381.78 383.00 py/sph Rusty intervals and mud seams (0.2%) 389.90 392.86 cc Cc veinlets (1%) 398.00 401.00 cc Cc or sph veins in very dark rock (0.1%) 403.80 404.50 sph/cc Veinlets of sph (0.1%) AB18-05 181.00 183.00 cc Veinlets of cc (0.1%) 188.00 190.00 cc Veinlets of cc (0.1%) 194.20 195.30 cc Veinlets of cc (0.1%) 206.00 207.00 cc Veinlets of cc (0.1%) 217.30 218.80 cc Veinlets of cc (1%) 236.00 237.00 cc Veinlets of cc (0.1%) 265.00 266.50 cc Breccia cc (0.1%) AB18-07 19.40 20.50 CuOx Brecciated Cu (1-4%) Table 5: Summary log of the copper-related mineralisation and intervals to be assayed for the 2018 drilling. For personal use only
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www.americanwestmetals.com (ASX: AW1) 29 Mineralisation key: cc = chalcocite, chpy = chalcopyrite, br = bornite, py = pyrite, Cu = native copper, ct = cuprite, ml = malachite, sph = sphalerite, ga = galena. (5%) = visual estimation of sulphide content. Intersections below are expressed as downhole widths and are interpreted to be close to true widths. Visual estimates of sulphide type, quantity and habit should not be considered a substitute for laboratory assays. Portable XRF analysis has been used to c onfirm the nature of the sulphide intercepts. Laboratory assays are required to determine the widths and grade of mineralisation as reported in preliminary geological logging. Hole ID Prospect Easting Northing RL (m) Depth (m) Azi Inclination AB18-01b Tornado 472372 8169734 309.1 308.0 180.5 -79.2 AB18-02c Cyclone NW 462392 8175740 256.4 158.0 180 -85 AB18-04 Midway 459521 8176877 200.9 473.0 178.6 -80.2 AB18-05 Cyclone NW 462699 8175133 268.1 322.0 180 -80.2 AB18-07 Tornado 471301 8170849 283.8 300.0 176.2 -79.9 Table 6: Details for the 2018 drill holes that are to be sampled and assayed during 2025. Deposit Category Tonnes Cu (%) Ag (g/t) Cu (t) Ag (Oz) Cyclone Inferred 3,335,000 1.03 3.76 34,200 403,300 Indicated 9,761,000 1.24 4.11 121,500 1,289,400 Chinook Inferred 913,000 0.81 2.85 7,400 83,700 Indicated 857,000 1.92 4.37 16,500 120,200 Corona Inferred 1,880,000 0.85 1.51 15,900 91,500 Cirrus Inferred 1,552,000 0.62 1.29 9,600 64,300 Thunder Inferred 1,824,000 1.04 1.55 19,000 90,800 Lightning Ridge Inferred 491,000 0.93 4.37 4,600 69,000 Total Inferred 9,996,000 0.91 2.50 90,600 802,700 Total Indicated 10,618,000 1.30 4.13 137,900 1,409,700 Total Ind + Inf 20,614,000 1.11 3.34 228,500 2,212,300 Table 7: Total unconstrained MRE of the Storm Project using a 0.35% Cu cut-off. For personal use only
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www.americanwestmetals.com (ASX: AW1) 30 LARGE-SCALE GEOPHYSICAL TARGETS A recent review and reinterpretation of the historical regional-scale airborne GeoTEM and IP data (see the ASX announcement dated 29 October 2021, Prospectus) has also yielded significant results and defined numerous targets for the potential discovery of further copper. The interpreted data highlights a series of extensive EM and IP anomalies that coincide with the known copper deposits and main structures of the graben fault system, the interpreted main copper fluid conduits (Figures 15 and 16). Of particular interest is a series of GeoTEM and IP anomalies that are located along the central graben – an ideal setting for sediment hosted copper deposits. The anomalies are interpreted to be at a deeper stratigraphic level (~100-300m depth) than the kno wn copper deposits and located in an area of no drilling. These features may represent a southern offset extension of the Cyclone copper mineralisation. Multiple other anomalies have been highlighted in these data sets, including strong coincident anomalies with the Corona and Cirrus Deposits, as well as the Thunder, Lightning Ridge, and The Gap Prospects. Figure 15: Plan view of the Storm area showing the known copper deposits and drilling, overlaying IP metal factor imagery (Hotter colours indicate higher conductivity contrast) at -100 to 200m depth. For personal use only
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www.americanwestmetals.com (ASX: AW1) 31 Figure 16: Plan view of the Midway -Storm-Tornado corridor showing the known copper deposits and faults overlaying GeoTEM apparent conductivity image (Hotter colours indicate higher conductivity contrast). Note the elevated conductivity of the Cyclone Deposit and conductive trend within the Central Graben and toward the Midway Prospect. NEW GEOPHYSICAL SURVEYS FOR TARGET GENERATION A regional-scale Mobile Magneto-Telluric (MMT) survey is planned to cover the Storm and regional exploration areas during the 2025 program (Figure 17). MMT utilizes natural source energy to capture a wider range of EM frequencies than the techniques used at Storm to date. The survey is designed to show a greater contrast between the host rocks and potential accumulations of conductive material (i.e. me talliferous sulphide) with better spatial and depth resolution. This is potentially very useful for deeper (>200m) occurrences of copper sulphide at Storm where the resistive host rocks cause a decreased signal -to-noise ratio (and decreased confidence in interpretation) with depth in the historical geophysics. The initial MMT survey will be completed over the Midway -Storm-Tornado area as an orientation survey to determine the response of the known deposits before extending the survey into more regional areas. For personal use only
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www.americanwestmetals.com (ASX: AW1) 32 Figure 17: Proposed MMT survey showing the planned Phase 1 and Phase 2 survey lines, overlaying topography and regional geology. For personal use only
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www.americanwestmetals.com (ASX: AW1) 33 WEST DESERT UTAH, USA For personal use only
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www.americanwestmetals.com (ASX: AW1) 34 The Company is considering strategies to unlock the value of this large and strategic mineral deposit including a potential spin-out or other commercial arrangement for the Project. Policy shifts in the US to promote onshoring of critical metals supply chains have placed renewed focus on the only undeveloped indium resource in the USA – located at American West’s 100%-owned West Desert Project. INDIUM AT WEST DESERT The West Desert Deposit in Utah is the only deposit in the USA known to have a JORC Code 2012 compliant resource estimate of indium. Only 35% of drill samples used in the JORC MRE were assayed for indium , highlighting the significant and immediate upgrade potential of the existing resource . As it stands, West Desert is already one of the largest undeveloped deposits of indium in the world, and the largest in the US.1 The indium at West Desert is associated mainly with zinc, copper, silver, and magnetite mineralisation. This is typical of indium which does not form as a primary mineral deposit and is recovered through the processing of other minerals such as sphalerite (Zn), chalcopyrite (Cu) and roquesite (Cu/In). Due to the unique features and exceptional indium endowment at the West Desert Deposit, the Utah Geological Survey (UGS) received a $300,000 federal grant (from the US Geological Survey, a Federal agency) to complete a detailed study on the indium at West Desert (see ASX announcement dated 9 November, 2022 – US Federal Grant for West Desert Critical Metals Study). The UGS research is focusing on how the West Desert deposit formed, the deportment of the indium throughout the deposit and exploration indicators that may help find similar deposits in the future. The West Desert resource is situated within land (i.e. patented claims) owned 100% by American West. This ownership will assist to expedite permitting for potential mining activities. Utah is rated as the world’s No.1 mining jurisdiction by the Fraser Institute, further emphasizing the favourable location of the Project. West Desert Project is ready for development studies with an established resource, security of tenure and access to existing regional infrastructure GALLIUM AND GERMANIUM AT WEST DESERT Porphyry and their related skarns deposits (like West Desert) are known sources of gallium and germanium, and Utah is host to one of the only Ga -Ge mines in the US, the Apex Mine 2, which is mined primarily for these minerals. 1 See USGS publication dated 12 September 2022 titled ‘Indium deposits in the United States ’. For information on other global indium deposits, see “The world’s by-product and critical metal resources part III: A global assessment of indium” by T.T. Werner, Gavin M. Mud, Simon M. Jowitt published by Elsevier. 2 Photo reference Page 28 – Drill core from WD22-01C from between 421.21-425.33m downhole (3.4% Cu, 91g/t Ag, 0.74g/t Au, 17g/t In, 0.05% Mo - See ASX announcement dated 19 September: Assays Confirm Growth Potential at West Desert). For personal use only
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www.americanwestmetals.com (ASX: AW1) 35 Gallium and germanium were not included in the MRE for West Desert as assaying for these metals has only been completed on American West drill holes that were completed during 2022. None of the historical drill samples (approximately 90% of the total drilling ) have been assayed for Ga and Ge, and a study is currently underway to outline a resampling program and to determine the potential of these important strategic metals within the Fish Springs Mineral District (100% controlled by American West). Category Material Mine type Tonnes In (g/t) Au (g/t) In (Oz) Au (Oz) Inferred Oxide Open Pit 15,531,071 10.8 0.09 5,916,698 49,306 Inferred Sulphide Open Pit 3,140,102 23.89 0.10 2,646,148 11,076 Inferred Sulphide Underground 14,996,864 28.73 0.12 15,198,136 63,480 Total 33,668,038 20.01 0.10 23,763,978 118,761 Table 8: JORC 2012 compliant West Desert Indium and Gold Inferred Resource. Cut-off grades are: Open-pit Heap Leach oxide material category at 0.7% Zn, Open-pit Wet Mill sulphide material category 1.5% Zn, Underground Mill flotation sulphide material category >3.5% Zn. For further details see the ASX Release dated 13 December 2023: ‘23.8 Million Ounces of Indium Defined at West Desert’. INDIUM – METAL WITH STRATEGIC AND CRITICAL IMPORTANCE Indium is considered a critical and strategic mineral and is used in the aerospace, defense, energy, and telecommunications sectors. In 2023, the USA imported 100 percent of its indium needs with China dominating the world’s production (U.S. Geological Survey, 2024). Indium, in the form of indium tin oxide (ITO), is sought after for use in high-tech applications, electronics, solar panels and advanced military technologies. ITO is used as a transparent conductor for touchscreens in smart phones, laptops and other electronic devices , LCD screens and other display technologies. Indium is also used in the production of semi-conductor chips, a high-growth sector in the USA which is seeking to reduce reliance on foreign chip manufacturers. In April 2024, the US government allocated US$6.4 billion to Samsung, facilitating the establishment of expansive semiconductor chip plants in central Texas. Samsung agreed to inject US $40 billion into the venture. These chips are pivotal, powering technologies ranging from artificial intelligence applications to vital medical devices. The growth in artificial intelligence ( AI) is expected to increase demand for specialis ed chip materials and AI hardware and servers. Indium, as ITO, is used as a coating on data centr e fibers and cables to increase signal transmission and reduce loss. World indium prices have risen steadily over the past five years, increasing from US$192/kg in 2019 to US$264/kg in 2024. 3 3 See USGS bulletin dated 1986 titled ‘Geology and Mineralogy of the Apex Germanium-Gallium Mine, Washington County, Utah. 3 Mordor Intelligence, Indium Market Report 2024 For personal use only
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www.americanwestmetals.com (ASX: AW1) 36 China dominates both the known world reserves of indium (66%) and global indium production (65%) 4, and China’s control of reserves and production is believed to affect global prices and availability. 4 Mordor Intelligence, Indium Market Report 2024 COPPER WARRIOR UTAH, USA For personal use only
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www.americanwestmetals.com (ASX: AW1) 37 Work during the quarter on the Copper Warrioir Project has included site visits, exploration program planning, and corporate activities with the Company considering strategies to advance this strategically located project. OPTION AGREEMENT EXTENDED The existing, three-year Option Agreement over the Copper Warrior Project was due to expire during October, 2024. At this time, the Company could elect to exercise the Option over the Project and purchase 100% of the property claims, or relinquish the rights of the property back to Bronco Creek Exploration Inc. (Bronco Creek). Based on the positive results to date, significant exploration upside remaining at the project, and deep experience of American West operating in Utah and Lisbon Valley, Bronco Creek has agreed to extend the term of the Option Agreement for another year to allow further exploration work. Under the Amending Agreement , the Option Period is extended to October 14, 2025, with American West required to pay Bronco Creek US$10,000 in addition to the Annual Advance Royalty Payment of US$15,000. For full details of the Copper Warrior Option Agreement, please see ASX announcement dated 29 October, 2021, Prospectus. LISBON VALLEY AREA IDENTIFIED FOR FAST TRACKED APPROVALS The Copper Warrior Project is located is the Paradox Basin in south -east Utah. The Paradox Basin is known for its world class endowment of copper, lithium, uranium, vanadium, and potash. The Project is located only 15km north of Utah’s second largest copper mine, the Lisbon Valley Copper Mine (LVCM). The Project comprises 81 unpatented lode mining claims for a total land holding of approximately 6.5km 2, and covers a strategic land position next to an abandoned, historical copper mine at the opposite end of the valley to the LVCM. As discussed in the West Desert section, the recent policy shifts in the US are creating opportunities for potential project funding and to fast track the permitting and approval timelines in key development areas. The Lisbon Valley Copper Mine and local area have been identified as critical to the ongoing supply of copper and silver in Utah. In particular, the Trump Administration has added the Lisbon Valley Copper Mine to the FAST- 41 program. This program aims to accelerate domestic critical minerals production by streamlining the permitting processes and reducing the timelines of environmental reviews. The Copper Warrior Project is ready for further exploration work with permitting underway for a follow -up exploration and drilling program. The follow- up program will feature a series of drill fences across the Lisbon Valley Fault, which is the main source of mineralising fluids for the copper orebodies at the LVCM, and on other key targets on the property . The prospective Lisbon Valley Fault is exposed for over 4km within the Copper Warrior Project area, highlighting copper endowment potential of the Project. For personal use only
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www.americanwestmetals.com (ASX: AW1) 38 CORPORATE & TENURE For personal use only
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www.americanwestmetals.com (ASX: AW1) 39 CORPORATE STRATEGIC PARTNERSHIP KEY TERMS The American West/Ocean Partners strategic partnership represents a significant step in securing the future of Storm and highlights the Projects position as an emerging producer of high- quality copper and silver raw materials. The long-term agreement with OP follows an extensive due diligence process and further highlights Storm as a viable, low-risk, highly ESG credentialed, copper-silver growth story. OP has a successful track record of funding base metals projects utilising o re-sorting to produce a commercial DSO product, which will be valuable to enhancing the technical aspects of the development work at Storm. ABOUT OCEAN PARTNERS Ocean Partners offers a complete range of trading services for miners, smelters, refiners, and metal consumers around the world. Working closely with global partners Ocean Partners offer customised risk management solutions while linking clients to unique market opportunities. Ocean Partners operates worldwide via strategic offices, agencies, and partnerships. The Ocean Partners team have extensive backgrounds in mining, geology, metallurgy, and finance which includes significant experience within the DSO markets. The key terms of the Ocean Partners binding Heads of Agreement are set out below: 1. US$2 million Private Placement Funds will be advanced to American West for the issue of 78,697,462 ordinary shares at an issue price of A$0.042 per share, which represents the 30-day volume weighted average price (VWAP) of traded Shares as at 8 April 2025 and using an exchange rate of USD$1:A$0.60. Ocean Partners subscription under the placement is subject to: (1) American West and Ocean Partners entering into an offtake agreement in respect of 100% of PEA Base Production from the Storm Project; (2) shareholder approval at a General Meeting of American West; and (3) Taurus advancing US$2,800,000 to American West under the Royalty Financing Agreement dated 23 September 2024 between Taurus and American West. The shares issued to OP will be subject to a voluntary 24 months escrow period, commencing on the date the shares are issued. 2. Project Debt Financing Ocean Partners will work together with American West to arrange funding for the development of the Storm Project. OP will provide up to 80% of the initial development capital for the Storm Copper Project subject to, amongst other things, the delivery of a bankable feasibility study and American West making a final investment decision in respect of the Project. For personal use only
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www.americanwestmetals.com (ASX: AW1) 40 Other indicative terms of the funding facility include: (a) A maximum of US$40,000,000 to be advanced by way of a 3-year senior secured loan. (b) Subject to shareholder approval, the Company issuing OP upon first drawdown of the loan agreement with options to acquire ordinary shares in American West (being a number of options equal to US$5m divided by the 20-day VWAP of shares immediately prior to the date of issue) with the options having a 3-year term. (c) A one-off establishment fee to be paid to OP in the amount of 2% of the loan to be paid in cash or equity (at a deemed issue price per Share which is equal to the VWAP of Shares on the 30 consecutive trading days immediately prior to the date of issue) at the election of American West. If American West elects to pay the establishment fee in Shares the issue will be subject to shareholder approval. (d) A repayment structure matched to the cash flows under the project development. 3. Offtake Agreement Ocean Partners are granted exclusive right to 100% of copper and silver products from the Project (based on the forecast production under the PEA). American West and Ocean Partners will work together to optimise the economics and product specifications for the Project. Pricing for the offtake will be based on market terms usual for transactions of this type. The offtake agreement recognises the high-quality of the proposed Storm copper-silver products and OP’s long- term belief in the development potential of the Project. ROYALTY PAYMENT - SECOND TRANCHE PAID Taurus agreed during the quarter to advance the second tranche of the US$12.5 million royalty package entered into in 2024. The amount of US$3.5m was advanced by Taurus in April 2025, with American West to receiving US$2.8m and Aston Bay Holdings US$0.7m. The royalty package over the Storm Copper Project requires Taurus to make three staged payments: (a) US$5 million on signing of formal documentation and financial close – PAID. (b) US$3.5 million upon delivery of a pre-feasibility study for Storm and submission of permitting documents for a development at Storm – PAID. (c) US$4 million upon delivery of a resource increase in the JORC compliant resource for Storm to at least 400,000 tonnes of contained copper at a resource grade of at least 1.00% Cu. For further details of the royalty package, see our ASX Release dated 24 June 2024 ‘$18.8M Royalty Financing’. For personal use only
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www.americanwestmetals.com (ASX: AW1) 41 TENEMENT INFORMATION Details of the Company’s tenement holdings are listed below. WEST DESERT PROJECT, UTAH American West Metals has ownership of 330.275 acres of private land which includes interest s of 100% of 15 patented claims, 87.5% ownership of the Last Chance No.2 patented claim, 83.3% of the Mayflower patented claim, 66.6% of Emma and Read Iron patented claims, and 41.6% of the Ogden patented claim. American West Metals has 100% ownership of 336 unpatented lode claims (Crypto-Zn 150-151, 154-160, 164- 178, 186-201: Crypto 1-211: Pony 9-16, 21-64, 100-127, 200-214). American West Metals is 100% owner of the leasehold interest of State of Utah Metalliferous Minerals Lease ML48312. STORM/SEAL PROJECT, NUNAVUT American West Metals has an 80% interest over 117 Mineral Claims (AB 44-47, 49-50, 56-60, 63-66, 68, 70-72, 74-79, 84-96, 98-111, 113-124: Ashton 2, 3, 5, 7- 10: Aston 1, 4, 6), and 6 Prospecting Permits (P29 -31). Aston Bay Holdings Ltd holds the remaining 20% interest, an unincorporated joint venture with Aston Bay will be formed between the two parties, with American West as the manager of the Joint Venture. American West Metals has 100% interest in 32 claims held under a staking agreement with APEX Geoscience Ltd (S 1-32). COPPER WARRIOR PROJECT, UTAH American West Metals has an Exploration and Option Agreement with Bronco Creek Exploration Inc. over 61 unpatented lode claims (Big Indian 2-25: Copper Warrior 1-37). American West Metals has 100% ownership of 20 unpatented lode claims (Copper Warrior 38, 40-58). APPENDIX 5B An Appendix 5B – Quarterly Cash Flow Report for the quarter ended 31 March 2025, accompanies this Activities Report. American West Metals provides the following information in relation to payments to related parties and their associates, as required by section 6.1 of the Appendix 5B. During the quarter ended 31 March 2025, a total of $141,000 was paid to the Directors of the Company as remuneration. For personal use only
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www.americanwestmetals.com (ASX: AW1) 42 This announcement has been approved for release by the Board of American West Metals Limited. For enquiries: Forward looking statements Information included in this release constitutes forward -looking statements. Often, but not always, forward looking statements can generally be identified by the use of forward- looking words such as “may”, “will”, “expect”, “intend”, “plan”, “estimate”, “anticipate”, “continue”, and “guidance”, or other similar words and may include, without limitation, statements regarding plans, strategies and objectives of management. Forward looking statements inherently involve known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, performance, and achievements to differ materially from any future results, performance, or achievements. Relevant factors may include, but are not limited to, changes in commodity prices, foreign exchange fluctuations and general economic conditions, the speculative nature of exploration and project development, including the risks of obtaining necessary licens es and permits and diminishing quantities or grades of reserves, political and social risks, changes to the regulatory framework within which the Company operates or may in the future operate, environmental conditions including extreme weather conditions, recruitment and retention of personnel, industrial relations issues and litigation. Forward looking statements are based on the Company and its management’s good faith assumptions relating to the financial, market, regulatory and other relevant environments that will exist and affect the Company’s business and operations in the future. The Company does not give any assurance that the assumptions on which forward looking statements are based will prove to be correct, or that the Company’s business or operations will not be affected in any material manner by these or other factors not forese en or foreseeable by the Company or management or beyond the Company’s control. Although the Company attempts and has attempted to identify factors that would cause actual actions, events, or results to differ materially from those disclosed in forward looking statements, there may be other factors that could cause actual results, per formance, achievements, or events not to be as anticipated, estimated or intended, and many events are beyond the reasonable control of the Company. Accordingly, readers are cautioned not to place undue reliance on forward looking statements. Forward looki ng statements in this announcement speak only at the date of issue. Subject to any continuing obligations under applicable law or any relevant stock exchange listing rules, in providing this information the Company does not undertake any obligation to publ icly update or revise any of the forward -looking statements or to advise of any change in events, conditions or circumstances on which any such statement is based Dave O’Neill Managing Director American West Metals Limited doneill@aw1group.com + 61 457 598 993 Dannika Warburton Principal Investability info@investability.com.au +61 401 094 261 For personal use only
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www.americanwestmetals.com (ASX: AW1) 43 Competent Person Statement – Previously Released Results The information in this Announcement that relates to Exploration Results is based on information compiled by Mr Dave O’Neill, a Competent Person who is a Member of The Australasian Institute of Mining and Metallurgy. Mr O’Neill is employed by American West Metals Limited as Managing Director, and is a substantial shareholder in the Company. Mr O’Neill has sufficient experience that is relevant to the styles of mineralisation and type of deposits under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’ The ASX announcement contains information extracted from the following reports which are available on the Company’s website at https://www.americanwestmetals.com/site/content/: • 23 April 2025 New Copper Target Expands Storm • 3 March 2025 Storm Copper Project Preliminary Economic Study • 16 December 2024 Update on Reconnaissance Drilling for Storm • 27 November 2024 Storm Project - Regional Exploration Update • 31 October 2024 Quarterly Activities and Cash Flow Report • 17 October 2024 Thick Copper from Surface at Chinook • 27 September 2024 Drilling hits 22.9m @ 8.5% Cu at Storm • 20 September 2024 Thick and High-Grade Copper in Deep Drilling • 3 September 2024 13% Cu in Assays and a New Discovery at Storm • 13 August 2024 Storm Copper DSO Potential Confirmed • 1 July 2024 Drilling Hits 7% Copper as Summer Season Starts • 26 September 2023 More High-Grade Copper Discoveries at Storm • 3 March 2025 Storm Copper Project Preliminary Economic Study The Company confirms that it is not aware of any new information or data that materially affects the results included in the original market announcements referred to in this Announcement and that no material change in the results has occurred. The Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement. Competent Person’s Statement – JORC MRE The information in this announcement that relates to the estimate of Mineral Resources for the Storm Project is based upon, and fairly represents, information and supporting documentation compiled and reviewed by Mr. Kevin Hon, P.Geo., Senior Geologist, Mr. Christopher Livingstone, P.Geo, Senior Geologist, Mr. Warren Black, P.Geo., Senior Geologist and Geostatistician, and Mr. Steve Nicholls, MAIG, Senior Resource Geologist, all employees of APEX Geoscience Ltd. and Competent Persons. Mr. Hon and Mr. Black are members of the Association of Professional Engineers and Geoscientists of Alberta (APEGA), Mr. Livingstone is a member of the Association of Professional Engineers and Geoscientist of British Columbia (EGBC), and Mr. Nicholls is a Member of the Australian Institute of Geologists (AIG). Mr. Hon, Mr. Livingstone, Mr. Black, and Mr. Nicolls (the “APEX CPs”) are Senior Consultants at APEX Geoscience Ltd., an independent consultancy engaged by American West Metals Limited for the Mineral Resource Estimate for the Storm Project. The APEX CPs have sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources For personal use only
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www.americanwestmetals.com (ASX: AW1) 44 and Ore Reserves". The APEX CPs consent to the inclusion in this announcement of matters based on his information in the form and context in which it appears. The Company confirms that it is not aware of any new information or data that materially affects the results included in the original market announcements referred to in this Announcement and that no material change in the results has occurred. The Company confirms that the form and context in which the Competent Persons’ findings are presented have not been materially modified from the original market announcement. The ASX announcement contains information extracted from the following reports which are available on the Company’s website at https://www.americanwestmetals.com/site/content/: • 16 December 2024 Significant Growth for Storm MRE Competent Person Statement – JORC MRE for West Desert The information in this announcement that relates to the estimate of Mineral Resources for the West Desert Deposit is based upon, and fairly represents, information and supporting documentation compiled by Mr Allan Schappert, a Competent Person, who is a Member of the American Institute of Professional Geologists (AIPG). Mr Schappert is a Principal Consultant at Stantec and an independent consultant engaged by American West Metals Limited for the Mineral Resource Estimate and has sufficient experience that is relevant to the style of mineralisation and type of deposit unde r consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" (the JORC Code). The Company confirms that it is not aware of any new information or data that materially affects the results included in the original market announcement referred to in this announcement and that no material change in the results has occurred. All material assumptions and technical parameters under the Mineral Resource estimates in the original market announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement. The ASX announcement contains information extracted from the following reports which are available on the Company’s website at https://www.americanwestmetals.com/site/content/: • 13 December 2023 - 23.8 Million Ounces of Indium Defined at West Desert Competent Person’s Statement – Mine Engineering The Information in this Report that relates to the Preliminary Economic Analysis is based on information compiled by Jim Moore, who is a qualified mining engineer and a Chartered Professional member of the Australian Institute of Mining and Metallurgy. Mr Moore is employed by Mine Planning Services. Mr Moore has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Moore consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. The Company confirms that it is not aware of any new information or data that materially affects the results included in the original market announcement referred to in this announcement and that no material change in For personal use only
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www.americanwestmetals.com (ASX: AW1) 45 the results has occurred. All material assumptions and technical parameters under the Mineral Resource estimates in the original market announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement. The ASX announcement contains information extracted from the following reports which are available on the Company’s website at https://www.americanwestmetals.com/site/content/: • 3 March 2025 Storm Copper Project Preliminary Economic Study ASX Listing Rule 5.12 The Company has previously addressed the requirements of Listing Rule 5.12 in its Initial Public Offer prospectus dated 29 October 2021 (released to ASX on 9 December 2021) (Prospectus) in relation to the 2016 Foreign Seal MRE at the Storm Project. The Company is not in possession of any new information or data relating to the Seal Deposit that materially impacts on the reliability of the estimates or the Company’s ability to verify the estimates as mineral resources or ore reserves in accordance with the J ORC Code. The Company confirms that the supporting information provided in the Prospectus continues to apply and has not materially changed. This ASX announcement contains information extracted from the following reports which are available on the Company’s website at https://www.americanwestmetals.com/site/content/: • 29 October 2021 Prospectus The Company confirms that it is not aware of any new information or data that materially affects the exploration results included in the Prospectus. The Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the Prospectus. For personal use only
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ABOUT AMERICAN WEST METALS AMERICAN WEST METALS LIMITED (ASX: AW1) is an Australian clean energy mining company focused on growth through the discovery and development of major base metal mineral deposits in Tier 1 jurisdictions of North America. Our strategy is focused on developing mines that have a low-footprint and support the global energy transformation. Our portfolio of copper and zinc projects in Utah and Canada include significant existing resource inventories and high-grade mineralisation that can generate robust mining proposals. Core to our approach is our commitment to the ethical extraction and processing of minerals and making a meaningful contribution to the communities where our projects are located. Led by a highly experienced leadership team, our strategic initiatives lay the foundation for a sustainable business which aims to deliver high-multiplier returns on shareholder investment and economic benefits to all stakeholders. www.americanwestmetals.com (ASX: AW1) 46 For personal use only
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Rule 5.5 ASX Listing Rules Appendix 5B (17/07/20) Page 1 + See chapter 19 of the ASX Listing Rules for defined terms. Appendix 5B Mining exploration entity or oil and gas exploration entity quarterly cash flow report Name of entity American West Metals Limited ABN Q uarter ended (“current quarter”) 74 645 960 550 31 March 2025 Consolidated statement of cash flows Current quarter $A’000 Year to date (9 months) $A’000 1. Cash flows from operating activities - - 1.1 Receipts from customers 1.2 Payments for (1,124) (15,236) ( a) exploration & evaluation (b) d evelopment - - (c) p roduction - - (d) s taff costs (353) (1,066) ( e) administration and corporate costs (318) (1,310) 1.3 Dividends received (see note 3) - - 1.4 Interest received 13 40 1.5 Interest and other costs of finance paid - - 1.6 Income taxes paid - - 1.7 Government grants and tax incentives - 137 1.8 Other (provide details if material) – GST and FX 1,060 512 1.9 Net cash from / (used in) operating activities (722) (16,923) 2. Cash flows from investing activities - - 2.1 Payments to acquire or for: ( a) entities (b) t enements - - (c) pr operty, plant and equipment - (6) (d) e xploration & evaluation - - ( e) investments - - ( f) other non-current assets - - For personal use only
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Appendix 5B Mining exploration entity or oil and gas exploration entity quarterly cash flow report ASX Listing Rules Appendix 5B (17/07/20) Page 2 + See chapter 19 of the ASX Listing Rules for defined terms. Consolidated statement of cash flows Current quarter $A’000 Year to date (9 months) $A’000 2.2 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 - (6) 3. Cash flows from financing activities - 6,980 3.1 Proceeds from issues of equity securities (excluding convertible debt securities) 3.2 Proceeds from issue of convertible debt securities - - 3.3 Proceeds from exercise of options - 51 3.4 Transaction costs related to issues of equity securities or convertible debt securities - (451) 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 – Royalty payment - 5,954 3.10 Net cash from / (used in) financing activities - 12,534 4. Net increase / (decrease) in cash and cash equivalents for the period 4.1 Cash and cash equivalents at beginning of period 1,423 5,096 4.2 Net cash from / (used in) operating activities (item 1.9 above) (722) (16,923) 4.3 Net cash from / (used in) investing activities (item 2.6 above) - (6) 4.4 Net cash from / (used in) financing activities (item 3.10 above) - 12,534 For personal use only
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Appendix 5B Mining exploration entity or oil and gas exploration entity quarterly cash flow report ASX Listing Rules Appendix 5B (17/07/20) Page 3 + See chapter 19 of the ASX Listing Rules for defined terms. Consolidated statement of cash flows Current quarter $A’000 Year to date (9 months) $A’000 4.5 Effect of movement in exchange rates on cash held - - 4.6 Cash and cash equivalents at end of period 701 701 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 503 803 5.2 Call deposits 198 629 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) 701 1,423 6. Payments to related parties of the entity and their associates Current quarter $A'000 6.1 Aggregate amount of payments to related parties and their associates included in item 1 141 6.2 Aggregate amount of payments to related parties and their associates included in item 2 - 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. For personal use only
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Appendix 5B Mining exploration entity or oil and gas exploration entity quarterly cash flow report ASX Listing Rules Appendix 5B (17/07/20) Page 4 + See chapter 19 of the ASX Listing Rules for defined terms. 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 $A’000 8.1 Net cash from / (used in) operating activities (item 1.9) (722) 8.2 (Payments for exploration & evaluation classified as investing activities) (item 2.1(d)) - 8.3 Total relevant outgoings (item 8.1 + item 8.2) (722) 8.4 Cash and cash equivalents at quarter end (item 4.6) 701 8.5 Unused finance facilities available at quarter end (item 7.5) - 8.6 Total available funding (item 8.4 + item 8.5) 701 8.7 Estimated quarters of funding available (item 8.6 divided by item 8.3) 0.97 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 8.8.2 Has the entity taken any steps, or does it propose to take any steps, to raise further cash to fund its operations and, if so, what are those steps and how likely does it believe that they will be successful? Answer: As announced on 9 April 2025 the Company has entered into a strategic partnership with Ocean Partners Holdings Ltd for a US$2.0m placement in AW1, subject to shareholder approval with a meeting to be held on 30th May 2025. US$2.8m royalty funding from Taurus Mining has also been brought forward with funds received by the Company on 28th April 2025. For personal use only
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Appendix 5B Mining exploration entity or oil and gas exploration entity quarterly cash flow report ASX Listing Rules Appendix 5B (17/07/20) Page 5 + See chapter 19 of the ASX Listing Rules for defined terms. 8.8.3 Does the entity expect to be able to continue its operations and to meet its business objectives and, if so, on what basis? Answer: Yes, the Company expects to be able to continue its operations and to meet its business objectives. Note: where item 8.7 is less than 2 quarters, all of questions 8.8.1, 8.8.2 and 8.8.3 above must be answered. Compliance statement 1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A. 2 This statement gives a true and fair view of the matters disclosed. Date: 30 April 2025 Authorised by: Sarah Shipway, Company Secretary (Name of body or officer authorising release – see note 4) Notes 1. This quarterly cash flow report and the accompanying activity report provide a basis for informing the market about the entity’s activities for the past quarter, how they have been financed and the effect this has had on its cash position. An entity that wishes to disclose additional information over and above the minimum required under the Listing Rules is encouraged to do so. 2. If this quarterly cash flow report has been prepared in accordance with Australian Accounting Standards, t he definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. If this quarterly cash flow report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report. 3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity. 4. If this report has been authorised for release to the market by your board of directors, you can insert here: “By the board”. If it has been authorised for release to the market by a committee of your board of directors, you can insert here: “By the [ name of board committee – eg Audit and Risk Committee]”. If it has been authorised for release to the market by a disclosure committee, you can insert here: “By the Disclosure Committee”. 5. If this report has been authorised for release to the market by your board of directors and you wish to hold yourself out as complying with recommendation 4.2 of the ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations, the board should have received a declaration from its CEO and CFO that, in their opinion, the financial records of the entity hav e been properly maintained, that this report complies with the appropriate accounting standards and gives a true and fair view of the cash flows of the entity, and that their opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively. For personal use only