Ann: Scoping Study Underway for Near Surface Mineral Resource, page-2

The June 2025announcement materially strengthens the investment case for James Bay Minerals(ASX: JBY), building on and validating the thesis laid out in the February 2025research note. Here's how it shifts the investment narrative:

Positive Developments

1. Scoping Study Progress – Key De-risking Milestone

• Engaging Kappes, Cassiday & Associates to lead the Scoping Study validates management's execution strategy and shows tangible progress toward near-term development of the oxide resource.
• Focus on open-pit, heap-leach operation reinforces the economic model highlighted in the original thesis, particularly given Nevada's supportive cost structure and infrastructure.

Resource Clarity and Expansion Potential

• The oxide resource is now explicitly stated as 294koz @ 0.40g/t (Indicated) and 91koz @ 0.32g/t (Inferred), aligning well with the previous NI 43-101 estimates and confirming confidence in existing resources.
• A further 370m of strike outside the current MRE footprint is now being explored, reinforcing the potential to increase the near-surface resource from ~385koz to 500koz+, a key valuation lever in the original thesis.

High-Grade Skarn Resource Now Quantified

• The high-grade skarn mineralisation has now been officially classified at 984koz @ 6.67g/t Au (Inferred), compared to 796koz estimated in the earlier report. This ~20% uplift in high-grade ounces materially increases the asset's optionality and attractiveness, especially for potential acquirers like Nevada Gold Mines (NGM).

Confirmation of Development Optionality

• The dual-resource strategy—low-cost near-term oxide development with high-grade skarn optionality—has moved from conceptual to structured, staged planning, improving clarity on the path to production and longer-term value realisation.

⚖️ Neutral/Remaining Risks

1. No Metallurgical Update Yet

• Metallurgy was cited as a key risk in the earlier note. The June announcement doesn't address recovery testing or ore type processing plans. This remains a crucial de-risking step for the heap-leach strategy.

Execution and Funding Still Required

• The update reaffirms the strategic pathway but doesn't address funding for development or exploration. These concerns—particularly dilution risk—remain relevant.

Net Impact: Strongly Positive

Investment CaseEnhancement:

• The announcement affirms heap-leach viability, extends mineralisation, and increases both oxide and skarn resource confidence.
• It improves the likelihood of a near-term re-rating and enhances long-term takeover logic through stronger project scale and synergy potential.

ValuationImplications:

• Based on previous peer takeout valuations (~$137/oz), the updated figures (~1.37Moz Au in total) place JBY’s resource base at ~$188M, vs. its current ~$63M market cap, indicating 2–3x upside still in play.
• The resource expansion pathway (targeting ~2Moz) is now more credible, increasing the probability of realizing the $200M–$300M valuation range mentioned in the February note.

Conclusion

This update is atextbook confirmation of the February investment thesis. It enhances visibility on resource scale,validates the heap-leach development route, and reinforces the strategic appealto potential acquirers. For current holders, it supports continued confidenceand potential accumulation onweakness, pending metallurgical confirmation.