Ann: Completion of Mt Carlton divestment, page-3

In accordance with the Vendor Fallback Provisioning terms set out in the Asset Sale Agreement for Mt Carlton, Evolution Mining Limited provided Navarre Minerals Limited with a transitional environmental bonding facility. This was in the form of a bank guarantee totalling $31,952,509 to allow Navaree to satisfy its obligations under the applicable Queensland environmental legislation.

During the half-year ended 31 December 2022, agreement was reached with Navarre to revise the terms of the above environmental bonding facility. The amortisation schedule of the guarantee, which Evolution is providing for Navarre, had been extended to June 2025.

If the Administrators of Navarre are unable to restructure and/or recapitalise the business, the above could have significant consequences for Evolution.

Note: the exposure Evolution retained with the Asset Sale Agreement for Mt Carlton was supposed to "enable Evolution shareholders to benefit from the future success of the operation".

Cheers

These are only my thoughts and it does not constitute investment advice. Before acting on any information you read and before making any financial or investment decisions, you should always consult your advisor(s) or other relevant professional experts.