Ann: Pedra Branca East Scoping Study and Development of Decline-AVB.AX, page-2

PEDRA BRANCA EAST SCOPING STUDY CLEARS PATHWAY TO DECLINE DEVELOPMENT Avanco is pleased to announce highly encouraging results from the Pedra Branca East Scoping Study and the start of underground development activities. The decision to commence development underpins Avanco’s strategy to become a mid-tier copper-gold company.

HIGHLIGHTS
 Scoping Study1 demonstrates viability of a large scale underground mine at Pedra Branca East2 (PBE)

 Financial modelling3 of the Scoping Study findings provided sufficient confidence for the Board to approve commencement of the PBE mine decline access

 The PBE Pre-Feasibility Study, which envisages initial extraction of ore and treatment at the Antas Mine, is close to completion and results are expected to be released in coming months

 The selected underground mining contractor is mobilising to begin construction of the box-cut, portal and decline

 The decline will be sized adequately for the needs of the future full scale mine

 Underground access activities will be funded from existing cash reserves

 Commencement of underground works underscores Avanco’s commitment to Pedra Branca and positions the Company to react quickly and benefit from any improvement in commodity prices

 The Company is now well-positioned to pursue an aggressive corporate growth strategy, leveraging of its recent successful transformation to “producer status”

 The Company aims through a series of staged expansions, at becoming a ~50,000tpa copper and 30,000ozpa gold producer