Ann: Initial funding from Quantum received, page-177

This is what the Q says about the Quantum deal.

Corporate On 21 March 2023 Besra announced3 the execution of a non-binding term sheet for the provision of up to US$300m gold pre-purchase drawdown and offtake funding agreement (“Facility’ with Besra’s largest shareholder Quantum Metal Recovery Inc (“Quantum”. The key Facility terms include:

▪ Up to 3m ounce gold offtake purchase facility for JORC-2012 gold mineral resources at the Reference Price, less 10%;

▪ The Reference Price is set at the time of each drawdown and is the 5-day average of the London Metal Market gold price in US$ per troy ounce and is subject to a floor price of 115% of All in Sustaining Costs (‘AISC’ being the all-in sustaining cost to produce an ounce of gold, including general and overhead administration, depreciation and amortisation of capital, the cost of exploration to replace mined ounces as more particularly described in the World Gold Council Guidance Note on Non-GAAP Metrics) at the time of delivery (“Floor Price");

▪ Up to US$300m is to be made available to Besra by way of Quantum paying Besra a 5% deposit of the Reference Price on future gold production of up to 3m ounces;

▪ Subject to drawdowns under the Facility occurring, funding will be available to Besra at the rate of up to US$10m per month to be paid into a drawdown account (“Drawdown Account” controlled by Besra, with an initial US$2m is available upon execution of the Term Sheet and another US$3m upon execution of the Facility Agreement, subject to the satisfaction of all conditions including shareholder approval;

▪ Quantum will secure rights to acquire a part of Besra’s future gold production, in relation to the specific amounts received in the Drawdown Account; ▪ A ‘Delivery payment’ to Besra of the remaining 85% of the Reference Price (being the discount of 10% and less the 5% prepaid deposit) at the time of delivery to Quantum of allocated ounces covered by the prior deposit payment;

▪ Deliveries to Quantum are to be made from all gold produced up to 25,000 ounces, 80% of all gold produced from 25,001 to 120,000 ounces and thereafter 65% of all gold produced (collectively “Delivery Ounces”, leaving 35% of gold production unassigned;

▪ Any funds raised under the Facility are to be used for construction, commissioning and operation of mine site plant and associated infrastructure, renewal of mining leases, feasibility studies, exploration and mining activities, M&A, gold treasury activities, Besra corporate and working capital purposes;

▪ Besra has agreed to grant in favour of Quantum a first ranking charge over the Drawdown Account and the Delivery Ounces (the “Security”; and

▪ No recourse to Besra should the Bau Project fail. At completion, Besra will have immediate access to a funding schedule to allow it to advance the Bau Project. It plans to commence an update of the 2013/4 pre-feasibility study and accelerate plans to begin pilot production in calendar year 2023. On the exploration front, it will focus on upgrading the quality of the JORC Resource inventory by converting a portion of our Inferred ounces into the Measured & Indicated categories. 3 ASX Announcement ASX:BEZ 21 March 2023 “Up to US$300m non-binding Drawdown Offtake Funding Facility Term Sheet to facilitate development of the 3m ounce Bau Gold Project”.

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All extremely positive and will probably send the SP up today ... but it still doesn't confirm that the facility agreement has been signed.

I would hope we will get an additional announcement imminently confirming that.

EB