Offer Price: The offer price is A$0.065 per share Discount:...

Offer Price:

The offer price is A$0.065 per share

Discount:

• 27.8% discount to the last close
• 25.2% discount to the 5-day VWAP

Offer Details:

Capital raising of up to A$13.5 million, which comprises:

• a 1 for 6 pro rata accelerated non-renounceable entitlement offer to raise up to ~A$5.4 million through the issue of ~83.0 million new shares (“ANREO”); and
• a placement to raise ~A$8.1 million through the issue of ~124.5 million new shares, utilising the Company’s placement capacity under ASX Listing Rule 7.1 and 7.1A (“Placement”) together, the “Offer”

Use of Proceeds:

• Underground resource development drilling
• Pearse open pit waste stripping
• Processing plant commissioning
• Working Capital

Investment Highlights:

1. Successful completion of the Mineral Hill Tailings Project in the Cobar Basin: The Tailings Project has been a highly successful operation for the company. Operating cash of $24m has set the stage for the re-commencement of open pit mining

2. Near term expansion of cash flow: High grade gold and silver from the open pits is forecast to increase cash flow substantially. Payable metal is expected to grow 133% YOY in FY25 to ~7kt CuEq

3. Plant refurbishment and expansion options: Refurbishment of the processing plant for concentrate production is in the final stages. Crushing and grinding of oxide ore to commence in Q2 2024. Internal work on plant expansion options to 700ktpa

4. Growth in resources and reserves: Initial underground Ore Reserve due in Q2 2024 and drilling for underground expansions in Q4 2024. Other underground deposits with existing development to be advanced and added to the mining inventory

5. Strategic value of existing processing capacity granted MLs: As the owner of the only two polymetallic plant in the Cobar Basin, Kingston is very well placed to participate in potential regional consolidation

6. Mineral Hill supporting the Energy Transition: Transition to underground at Mineral Hill will result in increasing production of foundational base metals, essential for the Energy Transition

7. Misima’s leverage to the gold price: Large, low-cost 20-year gold project with A$1.3Bn NPV at a gold price US$2,000/oz. Potential for significant value realisation and growth acceleration