Ann: Blacksmith Scoping Study Investor Presentations, page-17

Melbourne presentation

My take on the key takeaways of the presentation and discussion-

Red Dog Highway road to Blackjack Project turnoff is a critical path requirement. There have been meetings with Main Roads and another planned shorty (can’t remember the date). There may be an option for RH to provide the road base initially and offset that cost against future transport levies. Main Roads to seal road when they are ready (and continue its construction beyond the turnoff.

Finance. No Convertible Notes. Project financing likely by combination of debt equity, placement and maybe off-takes paid in advance. A small CR will be required to get us to PFS possibly Rights Issue. Project Finance after PFS.

PFS due Q1 cy2024. The DFS (will be the BFS) due July/August 2024.

Potential ports other than PH.

Cape Preston West - Mardi Salt. Most advanced of the future Pilbara future ports projects. RH has had meetings with them. Construction has commenced. I think shipping (salt) due to commence 2026?

Cape Preston East - Leichhardt. RH has had meetings with them. CPE will be designated a multi user port. It sounded like RH may be a good fit to latch on this project particularly as the possible tonnage and mine life could enhance port infrastructure viability. It sounded like RH requirement could be designed in. L Project no yet at FID.

Anketell Port mentioned but sounded like only a distant possibility.

Whim Creek trucking transfer. No involvement with BBI. May not need to unload and reload. May be no more than a parking bay and drivers swap vehicles. Issues with uncoupling ultra quads and coupling to a different prime mover as needs certain levels of compliance. More work to be done here during the PFS.

Port Hedland. Confident that RH will get port space allocation. RH have had meetings and port visits. Increased tonnage above 3mtpa is plausible.

RH team. Now 23 people.

Scoping Study financial metrics etc.

Quite conservative. Platts forecast of IO price US$89/t used (and explanation as to why). Study NPV (and other metrics) would improve when upgraded resource applied. Asked about 30+ year mine life and the comment was it is better to increase pa tonnage rather than 30+ years at 3mtpa. Talked about cost of increasing tonnage which was not as high as start up and basically was another crusher and more trucks or nearer port.

The CAPEX pay back of 3 years may be much less if IO price much higher than the US$89 used in ScopingStudy. (I think currently IO price is around US$110/t).

Further comment from me. I am estimating the NPV post the resource upgrade announcement Monday to be around $500m. This could substantially increase upon higher than planned IO price or increased production above 3mtpa. With a new port nearer to our deposits the NPV could easily exceed $1b IMO.

SM spoke well and like someone that really has full grasp of the project, the possibilities and what needs to be done to make it viable and successful. There was no skirting around questions or issues, or avoiding open answers unlike pre the SM days. Very refreshing. The attitude of SM is a “can do” mentality. Great to finally have a doer onboard!

Now the above is just my aged recollection and thoughts and may not be entirely correct so do your own research. I encourage all shareholders to attend the presentations if possible or the webinar on the final day.