HIGHLIGHTS• 12-month option for Boab to acquire Yuguang’s 25%...

HIGHLIGHTS
• 12-month option for Boab to acquire Yuguang’s 25% interest in Sorby Hills,
increasing Boab’s current 75% interest in the Project to 100%.
• During the option period, Boab will carry Yuguang’s joint venture expenses and in
turn, will have full control over joint venture budgets and work programs.
• Should the option be exercised, Boab will pay Yuguang:
o Tranche 1: A$12.5M upon exercise of the option and the concurrent
acquisition of Yuguang’s 25% Joint Venture interest;
o Tranche 2: A$5.5M payable no later than 12 months from the
commencement of concentrate production at Sorby Hills; and
o Tranche 3: A$5.0M payable no later than 18 months from the
commencement of concentrate production at Sorby Hills.
• The ability to exercise the option is subject to Boab reaching a Final Investment
Decision (FID) on the Sorby Hills Project within the next 12 months.
• Importantly, the option agreement requires no immediate payment to Yuguang
and allows for Tranche 1 payment to be met with funds raised at FID.

Boab Managing Director and CEO, Simon Noon, stated:
“Yuguang has been a committed partner over the past 6 years of Boab’s involvement in Sorby
Hills joint venture. Their support during this period has allowed us to effectively grow the
Resource and complete high-quality Feasibility Studies and associated work on the Project.
With the Project now in an advanced development state, the option agreement provides
Boab with a clear runway to present Sorby Hills to project financiers on the basis that it will
be 100% owned by Boab Metals. We are confident of reaching a Final Investment Decision
during the option period and subsequently acquiring 100% of the Project.”
Yuguang made the following statement on the agreement:
“Our joint venture relationship with Boab to date has been positive and productive. The
agreement we have struck is reflective of this co-operation and provides a new pathway to
advance Sorby Hills toward a Final Investment Decision. We look forward to continuing to
work with Boab throughout the option period and beyond and ultimately seeing Sorby Hills
come into production.”

its a clear indication of how undervalued BML is by the market. BML management are placing a value on Sorby Hills of $92 Million and this most likely opens the door to NAIF funding and Export Australia funding. BML have offered a fair price and it is very unlikely that Henan Yuguang would have sold for less than there total investment over the years since they took ownership of 25% of Sorby Hills which predates BML's ownership of 75% which they acquired in 2018.

This also explains the delay with offtakes.
The Company is in advanced discussions with preferred offtake parties. Whilst negotiations of
offtake terms is well progressed, the Company has not sought to complete the award of the
offtake for the Sorby Hills concentrate until this option agreement is finalised to maximise
offtake value and the potential for securing project finance from the offtake parties.
With the Joint Venture option agreement now in place, Boab will re-engage with potential
project financiers and offtakers based on having the option to acquire 100% ownership of the
Project and the Sorby Hills concentrate.