@thecrabpest and @speculator101, thank you both for your...

@thecrabpest and @speculator101, thank you both for your valuable insights. Hope you don’t mind me adding a few more questions here in relation to McPhillamys.

I notice in the last Mineral Resource and Ore Reserve Statement, McPhillamys’ numbers remain very much the same as its Maiden Ore Reserve Estimate announced on 8 September 2017 which is based on a gold price of only A$1,400 per ounce for Ore Reserve pit optimization. I wonder if it’s likely to be revised in the upcoming DFS and the next Mineral Resource and Ore Reserve Statement due on 31 Dec 21?

We paid $3.25 million for McPhillamys back in May 17 so I assume its book value would be less than half a cent (3.25/754) per share. In case we cannot get approval for McPhillamys (unlikely?), the share price in theory should not be affected much at all, I hope! especially when it's trading close to its NTA value.

On the other hand, if it gets approved and if it costs $350m - $400m (Infra and Plant) to develop, we will end up with a mine that has a 10 years+ life @ an annual production of 200 koz for a total cost less than half of Tropicana. Once developed, how much would McPhillamys be valued at? Although the general consensus is that we overpaid for Tropicana, its advantage is generating instant cash flow that would be required for McPhillamys development. From a long-term strategic point of view, Tropicana is perhaps worth the premium.

While McPhillamys approval is pending, what is the fair value for RRL?

Personally I still use the CR price of $2.70 as a benchmark, given that Tropicana deal was done in a period when POG XAUAUD was at the lowest this year and the instos would have done their due diligence conservatively at the time. There is enough evidence that the average cost of Vanguard’s 38 mil current holding (5.05%) is still close to $2.70 if not more. https://hotcopper.com.au/threads/ann-becoming-a-substantial-holder.6299525/page-8?post_id=56326615

I have listed below key announcements in relation to McPhillamys and Tropicana for easy reference if anyone is interested in further discussions.

23 February 2017 ACQUISITION OF BLAYNEY GOLD PROJECT NEAR MCPHILLAMYS

https://wcsecure.weblink.com.au/pdf/RRL/01831505.pdf

The Blayney Gold Project is reported to host Mineral Resources at two gold deposits. Discovery Ridge has an Indicated and Inferred MRE of 13.84Mt at 1.1g/t Au for 501,000 ounces and Bald Hill has an Inferred MRE of 37.0Mt at 0.5g/t Au for 595,000 ounces.

19 May 2017 COMPLETION OF BLAYNEY GOLD PROJECT ACQUISITION

https://wcsecure.weblink.com.au/pdf/RRL/01858948.pdf

The board of Regis Resources Ltd is pleased to advise that the acquisition of the Blayney payment of $3.25 million to the vendor, Aeris Resources Limited.

4 July 2017 UPDATE ON MCPHILLAMYS GOLD PROJECT

https://wcsecure.weblink.com.au/pdf/RRL/01871252.pdf

Significant work has been completed towards finalising the EIS for the development of the project. Regis is aiming to submit a Conceptual Project Development Plan (CPDP) to the NSW Department of Planning & Environment (DPE) in the September 2017 quarter. This will commence the approvals process for the development of the project. It is then expected that the EIS will be submitted to the DPE by the end of the December 2017 quarter.

8 September 2017 MAIDEN ORE RESERVE OF 2.03 MILLION OUNCES AT McPHILLAMYS GOLD PROJECT

https://wcsecure.weblink.com.au/pdf/RRL/01894095.pdf

Maiden Ore Reserve Estimate at the McPhillamys Gold Project (MGP) is 60.1 million tonnes at 1.05g/t Au for 2,034,000 ounces of gold. A gold price of A$1,400 per ounce was used in Ore Reserve pit optimisation. This increases Regis’ total gold Reserves to in excess of 4.2 million ounces.

26 July 2018 PRELIMINARY ENVIRONMENTAL ASSESSMENT SUBMITTED FOR MCPHILLAMYS GOLD PROJECT

https://wcsecure.weblink.com.au/pdf/RRL/02002519.pdf

“The submission of the PEA is a positive step for the MGP which will lead to the NSW DPE issuing environmental assessment requirements for the project. This will in turn allow the required environmental impact and feasibility studies to be completed which will underpin Regis progressing the project through permitting and into development.”

17 July 2019 DEVELOPMENT APPLICATION SUBMITTED FOR MCPHILLAMYS GOLD PROJECT

https://wcsecure.weblink.com.au/pdf/RRL/02124000.pdf

McPhillamys Gold Project proponent, Regis Resources, has submitted the State Significant Development Application (SSDA) and Environmental Impact Statement (EIS) to the NSW Department of Planning and Industry (DPI).The McPhillamys Gold Project is currently expected to require an average of 350 construction jobs during the construction phase and over the ten-year operational life there will be an average of 260 direct jobs.

8 September, 2020 ANOTHER KEY MILESTONE FOR MCPHILLAMYS GOLD PROJECT

https://wcsecure.weblink.com.au/pdf/RRL/02278475.pdf

Australian gold miner Regis Resources has reached another key milestone in the McPhillamys Gold Project located in Central Western NSW, after lodging a Submissions Report (SR) and Project Amendment Report (AR) with the NSW Department of Planning, Industry and Environment (DPIE), on 4 September……the Submissions Report addressed comments and

questions that were raised by government agencies and the community during the public exhibition of the Environmental Impact Statement (EIS) in 2019.

13 April 2021 BINDING AGREEMENT TO ACQUIRE A 30% INTEREST IN THE TROPICANA GOLD PROJECT AND A$650 MILLION CAPITAL RAISING

https://wcsecure.weblink.com.au/pdf/RRL/02362920.pdf

21 April 2021 MINERAL RESOURCE AND ORE RESERVE STATEMENT AS AT 31 DECEMBER 2020

https://wcsecure.weblink.com.au/pdf/RRL/02365475.pdf

HIGHLIGHTS

• Group Ore Reserves increased by 11% from 3.6 million ounces to 4.0 million ounces

(20% increase after accounting for mining depletion).

• Group Mineral Resources increased by 5% from 7.7 million ounces to 8.1 million

ounces (increased by 9% after accounting for mining depletion).

GREENFIELDS EXPLORATION - MINERAL INVENTORY GROWTH

• An aggressive exploration programme across the Duketon project continues to focus on identification of both new mineralisation and the expansion of current mineral resources with many promising targets generated for testing in the coming year.

Jim Beyer, Regis’ Managing Director and CEO said “This is a very pleasing result for the company with this increase in our reserves and resources coming within nine months of our previous 31 March 2020 statement. The annual statement has now been brought forward to 31 December each year to align with the annual budgeting process which follows. With this latest review we can plan for at least another seven years at both Duketon North and Duketon South ahead of further expected exploration success.

15 June 2021 MINERAL RESOURCE AND ORE RESERVE GROWTH WITH THE INCLUSION OF TROPICANA

https://wcsecure.weblink.com.au/pdf/RRL/02384299.pdf

Jim Beyer, Regis’ Managing Director and CEO said

“We are pleased to have incorporated Tropicana into our portfolio increasing our total resources to 10.4Moz and total reserves to 4.8Moz. The Tropicana JV delivers on our strategic objective to grow as a safe, responsible, reliable, long life, low cost gold producer, generating strong financial returns.

Beyond the long history of open pit mining, the establishment of Tropicana’s first underground mine at Boston Shaker is a key milestone for the mine and with continued exploration and resource definition the potential for growing underground production is a compelling aspect of the future for the operation.

Investment in regional exploration at Tropicana will also continue to seek to identify new discoveries and ultimately unlock a long future of production at the operation…..”