Announcement PDF Legacy Minerals Holdings Limited ABN 43 650 398 897 Annual Report for the year ended 30 June 2024 Legacy Minerals Holdings Limited Annual Report 30 June 2023 Page 1 Corporate Directory Directors Website Dr David Carland – Non-Executive Chairman www.legacyminerals.com.au Christopher Byrne – CEO & Managing Director Securities Exchange Thomas Wall – Executive Director Australian Securities Exchange (ASX) Matthew Wall – Non-Executive Director ASX Codes: LGM and LGMO Douglas Menzies - Non-Executive Director Securities Registry Company Secretary and Chief Financial Officer Automic Pty Ltd Ian Morgan Registered Office C/- Benbow & Pike Chartered Accountants 401/ 54 Miller Street North Sydney NSW 2060 Telephone +61 02 9959 3520 Site Office Level 5, 126 Phillip Street Sydney NSW 2000 Telephone (within Australia): 1 300 288 664 (outside Australia): +61 2 9698 5414 Auditor Nexia Sydney Audit Pty Ltd Level 22, 2 Market Street Sydney, NSW 2000 3/202 Russell Street Bathurst NSW 2795 Email info@legacyminerals.com.au Legacy Minerals Holdings Limited Annual Report 30 June 2024 Page 2 Table of Contents Corporate Directory........................................................................................................................................... 2 Table of Contents .............................................................................................................................................. 3 Chairman’s Letter .............................................................................................................................................. 4 Directors’ Report ............................................................................................................................................... 5 Consolidated Statement of Profit or Loss and Other Comprehensive Income ............................................... 43 Consolidated Statement of Financial Position................................................................................................. 44 Consolidated Statement of Changes in Equity ................................................................................................ 45 Consolidated Statement of Cash Flows ........................................................................................................... 46 Notes to the Financial Statements .................................................................................................................. 47 Directors’ Declaration...................................................................................................................................... 72 Auditor’s Independence Declaration............................................................................................................... 73 Independent Auditor’s Report ........................................................................................................................ 74 Additional Shareholder Information ............................................................................................................... 78 Legacy Minerals Holdings Limited Annual Report 30 June 2023 Page 3 Chairman’s Letter Dear Fellow Shareholder, I am pleased to present Legacy Minerals Holdings Limited’s (ASX: LGM, Legacy Minerals or the Company) fourth Annual Report to our shareholders following our successful initial public offering and listing on the Australian Securities Exchange in 2021. This letter provides an overview of the significant progress achieved across our diverse portfolio in New South Wales within the prolific mining and exploration districts of the Lachlan and New England Fold Belts. Legacy Minerals has diligently executed an extensive exploration program across our nine projects, with a strong focus on drilling and targeting generation aimed at the large-scale epithermal systems at Drake, Black Range, and Bauloora, targeting high-grade gold, silver, and copper mineralization. Through our exploration efforts at Black Range, the finalization of the Drake Project acquisition, and the exploration of Bauloora in collaboration with our partners, Newmont, we have increasingly recognised the substantial potential of these projects to host large-scale and high-grade epithermal gold and silver mineralisation. Our other high-quality projects in the Lachlan Fold Belt, including the Cobar, Rockley, and Fontenoy Projects, have seen significant progress. Fontenoy, being explored under an Exploration Alliance Agreement with partner EarthAI, witnessed sustained drilling and exploration efforts, leading to the maiden discovery of magmatic platinum-palladium and nickel. During the financial year, we identified and acquired two significant projects aligned with our strategic discovery approach. These were the Glenlogan Project, subject to a joint venture with S2 Resources, and the Thomson Project, which complements our existing focus projects in our portfolio and offers additional discovery exposure for shareholders. Post the financial year, Legacy Minerals’ secured another earn-in partner, Helix Resources, on our Central Cobar Project. This discovery-focused joint venture will see commitments to drill targets at Cobar project, bringing the total earn-in and joint venture figure to $28.5 million across four projects. The markets for gold and copper, our primary commodities of interest, have remained robust. Despite significant ownership consolidation in these sectors, the persistent demand for precious metals, including gold and silver, and the widening shortfall in copper supply have continued. I would like to express our sincere gratitude to our small yet highly skilled exploration and management team for their outstanding dedication and hard work, which has been instrumental in driving significant progress for Legacy Minerals over the year. Finally, we thank our shareholders for their continued loyalty and confidence in us. We are particularly grateful to those who participated in our entitlement offer and placement completed this year. As always, we maintain a focus on being good stewards of capital and maximising the value of your investment. Yours sincerely, David J Carland Non-Executive Chairman Legacy Minerals Holdings Limited Annual Report 30 June 2024 Page 4 Directors’ Report The directors of Legacy Minerals Holdings Limited (ASX: LGM, Company or Legacy Minerals) and its subsidiaries Legacy Minerals Pty Ltd (LMPL), Greenpath Minerals Pty Ltd and Starlight Exploration Pty Ltd (together referred to as the Group) present their report, together with the financial statements for the year ended 30 June 2024. Directors The Directors of the Company at any time during or since the end of the financial year are: Dr David Carland (Non-Executive Chairman) PhD (Econometrics), MEc, BEc (Hons), MAICD Appointed 21 June 2021 David has over 40 years of investment banking and commercial experience in both the private sector and government. He is the Executive Director of Australian Resources Development Pty Ltd, a company focused on the provision of specialised advice and assistance on the structuring, financing, and developing of energy and resource projects. He is the former chairman of Rex Minerals Limited (ASX: RXM), and former nonexecutive director of Indophil Resources NL (ASX: IRN) and Polymetals Mining Limited (ASX: PLY). David holds a PhD (Econometrics), MEc, BEc (Hons1) and is a member of the Australian Institute of Company Directors. In the last three years, Dr Carland has been a director of Rex Minerals Limited (ASX: RXM), appointed on 12 December 2013 and retired on 31 May 2021; and Aguia Resources Limited (ASX: AGR) appointed on 4 December 2020 and resigned on 15 July 2022. Christopher Byrne (CEO & Managing Director) BsC, BEngs (Hons), M.PM, MAusIMM, MAICD Appointed 21 May 2021 Chris has a number of years of experience as an engineer and manager in the mining, infrastructure, and logistics sectors in NSW and QLD. In the mining and exploration space he has worked in greenfield and brownfield environments, from early exploration projects through to mine establishment and operations. Chris’s experience has been focused on large and complex project delivery, project management, maintenance and operational support. Outside the mining sector, Chris has lead infrastructure teams in the public sector in the provisioning and delivery of large capital projects. Chris is a Member of AusIMM and the Australian Institute of Company Directors. Matthew Wall (Non-Executive Director) CTE, MCILT, MAICD Appointed 21 May 2021 Matthew is a metals and mining specialist with over 35 years of experience in sales, marketing, shipping/logistics, trading, capital raising and risk management. He has held senior management roles with Rio Tinto, EDF Trading and Wood Mackenzie. Matthew has advised a number of small private and junior listed mining companies in Australia and overseas on capital raisings and market development. Matthew is a Member of the Australian Institute of Company Directors and the Chartered Institute of Logistics & Transport (CILT). In the last three years, Mr Matthew Wall was a director of Allegiance Coal Limited (ASX: AHQ). He was appointed on 23 February 2022. AHQ was delisted on 28 August 2023. Legacy Minerals Holdings Limited Annual Report 30 June 2024 Page 5 Directors’ Report (continued) Thomas Wall (Executive Director and Exploration Manager) BsC (Hons), MPhil (Geology), MAIG Appointed 21 May 2021 Thomas is a geologist with wide-ranging experience within the resource sector in NSW and WA having previously held senior roles at Peak Gold Mines, New South Resources and Omya Australia. He has demonstrated mining and exploration success across a variety of commodities and deposit styles with particular focus within the Lachlan Fold Belt of NSW. Thomas is a Member of the Australian Institute of Geoscientists (AIG). Douglas Menzies (Non-Executive Director) DipBA, GradCertIT, BsC (Hons) Appointed 21 May 2021 Douglas has over 28 years of experience in the mineral exploration and GIS industries including as a consultant. Douglas has experience exploring for porphyry gold-copper and epithermal gold mineralisation in Australia, PNG, Indonesia, Fiji, Laos, Chile, Argentina and Mexico. Douglas is a Member of the Australian Institute of Geoscientists (AIG). In the last three years, Mr Menzies was a director of Godolphin Resources Limited (ASX: GRL). He was appointed on 1 May 2020 and resigned on 9 January 2023. Company Secretary and Chief Financial Officer Ian Morgan B Bus, M Com Law, Grad Dip App Fin, CA, AGIA, MAICD, F Fin Appointed 21 May 2021 Ian is a member of Chartered Accountants Australia and New Zealand and the Governance Institute of Australia, with over 35 years of experience. Ian provides secretarial and advisory services to a range of companies, including holding the position of Company Secretary and CFO for other listed public companies. Nature of Operations and Principal Activities Legacy Minerals is involved in the acquisition and exploration of gold and copper projects in the prospective Lachlan Fold Belt (LFB) and New England Fold Belt (NEFB) of New South Wales (NSW). The Group wholly owns 2,690km2 of granted and pending exploration licence applications spanning eight projects. The LFB, also known as the Lachlan Orogen, hosts world-class copper-gold orebodies including the Cadia-Ridgeway, Northparkes and Cowal Mines. Legacy Minerals has a straightforward exploration strategy: to systematically define and drill a pipeline of prospective targets for gold and copper mineralisation. The work conducted on Legacy Minerals’ tenements has defined a number of compelling drill ready prospects. Legacy Minerals’ projects contain numerous untested geochemical, geophysical and geological targets. These afford the Company multiple opportunities for gold and copper discoveries; commodities which the Company considers having long term favourable fundamentals. Highlights of the projects include: • • • drill-ready targets that provide immediate opportunities for gold and copper discoveries; projects with a prime position in the LFB targeting porphyry-related Cu-Au, Cobar-type, and low sulphidation epithermal-style systems; and high grade and shallow exploration targets in underexplored or overlooked projects that present an opportunity for aggressive resource definition. There were no significant changes in the nature of the activities of the Company during the financial year. Legacy Minerals Holdings Limited Annual Report 30 June 2023 Page 6 Directors’ Report (continued) Dividends There were no dividends paid or declared by the Company to members during or since the end of the financial year. Review of Operations and Outlook 1 Legacy Minerals (ASX: LGM) is targeting porphyry related, low-sulfidation epithermal, Cobar-type, volcanichosted massive sulphide (VHMS), and orogenic gold mineralisation styles. The portfolio of projects provide the Company with significant exposure in the Lachlan Fold Belt, a mineral province that hosts several worldclass, tier-one ore bodies, and the New England Fold Belt, which hosts several major gold, silver and base metal deposits. i The Company is exploring four of these projects, Bauloora, Cobar, Glenlogan, and Fontenoy, under earn-in and alliance agreements with Newmont Corporation, Helix Resources, S2 Resources, and Earth AI. THOMSON PROJECT During the Quarter, Legacy Minerals secured a new belt-scale exploration opportunity for large-scale mineral deposits through the acquisition of the Thomson Project in NSW (EL9190, EL9194, and ELA6777)ii. Details of the Acquisition Legacy Minerals wholly-owned subsidiary, Starlight Exploration Pty Ltd (Starlight), entered into a binding agreement to acquire exploration Licences EL9190 and EL9194 for A$200k in cash from Eastern Metals Limited (EMS). A$50k was paid within 7 days of an executed HOA and the remaining $150k is to be paid upon transfer of the tenements. Starlight will grant a 1.5% royalty to EMS and have the option to buy back 0.75% of the royalty for A$2M and the remaining $0.75% for A$4M at any stage ii. F IGURE 1: PROJECT OVERVIEW SHOWING EL9190, EL9194, ELA6777 AND EXAMPLES OF “ BULLSEYE” MAGNETIC TARGETS ( INSET) II. 1 The information in the Directors’ Report that references previously reported exploration results is extracted from Legacy Minerals Holdings Limited’s ASX Announcements released on the date noted in the body of the text where that reference appears. For endnote references refer page 83. Legacy Minerals Holdings Limited Annual Report 30 June 2024 Page 7 Directors’ Report (continued) Project Overview Located west of Bourke, the Thomson Project covers 5,500km2 of tenure under granted and pending exploration licenses, securing a belt-scale exploration opportunity for Legacy Minerals shareholders. Legacy Mineral’s is now exploring across eight projects in NSW, with three under farm-in and joint venture agreements and an alliance agreement, covering more 8,000km2 of tenure. The Thomson Project is located near the southern margin of the Thomson Orogen nearby the interpreted contact with the Lachlan Fold Belt and the Delamerian Orogen. The Thomson Orogen covers a large area of Queensland and north-western New South Wales, mostly under cover of the Mesozoic Eromanga Basin. The dominant basement rocks are interpreted to consist of Cambrian to Ordovician volcanics, metamorphosed turbidite, siltstone, and slate that are intruded by Silurian to Devonian felsic and mafic igneous rocks. Current knowledge of the basement geology of the southern Thomson Orogen is minimal however the following datasets provide critical insights into the geology and prospectivity of the area: • • • Several deep stratigraphic drillholes completed by the NSW Geological Survey (such as Tongo1, Laurelvale 1). Historic drillholes completed by previous exploration companies. The incorporation and interpretation of regional geophysical data (aeromagnetic, gravity and seismic) conducted by the NSW Geological Survey (GSNSW) with geology logged in drill holes. The Thomson Project is covered by younger sediments that ranges up 280m thick. These sediments are part of the Eromanga and the Surat Basin cover sequences. This cover has historically in part deterred exploration and has limited the realisation of the Thomson Orogen’s mineral potential. Significantly, historical work indicated that this cover sequence is geophysically transparent with a number of the critical geophysical targeting methods such as magnetics and gravity providing highly useful and necessary data sets. The GSNSW have suggested that the basement rocks within the Thomson Orogen have the potential to hold similar mineral potential to the adjoining belts, including the base metal and gold endowment of the Lachlan Orogen to the south which is over 80Moz gold and 13Mt copper. iii A series of major belt-scale faults are observable that may act as significant fluid flow conduits during both early extensions and later deformation of the belt. Exploration Rationale Legacy Minerals is searching for high-grade copper-gold intrusion-related deposits in what is considered to be one of the most under explored orogenic belts in Australia. These deposits can often have a magnetic signature that reflects either magnetic minerals associated with the alteration or ore bearing fluids. The opportunity offers Legacy Minerals a huge discovery upside, that if successful, positions the Company as the significant tenement holder in a new mineral province with-in a top tier, stable jurisdiction. The Company has been drawn to the Thomson due to its lack of exploration and early encouragement from previous explorers who have confirmed mineralisation in association with these magnetic high anomalies. These undercover targets are defined by discrete, “bullseye” magnetic and gravity anomalies, are similar to other Tier-1 deposits characteristics. Limited historical drilling on some of these targets has confirmed the presence of widespread alteration and mineralisation in association with the magnetic targets. Of the 14 historical holes, 7 failed to intersect the causative magnetic bodies, 4 were sighted on the wrong target area, and 3 holes that partially tested the causative magnetic bodies all delivered encouraging assay results worthy of follow-up drilling. Historical drilling has generally been too shallow or mis-targeted to test Legacy Minerals Holdings Limited Annual Report 30 June 2024 Page 8 Directors’ Report (continued) targets. The Company notes that many of the targets share similar intrusion related gold signatures to that of the Greatland Gold (AIM: GGP) Havieron deposit (8.4Moz AuEq, IRG iv) including: • • • • Bullseye to sub-circular magnetic high anomalies; Meta-sedimentary host rocks; Pyrrhotite related mineralisation; and Related gravity high anomalies. Target Overview Examples F1 Anomaly A fence of three Reverse Circulation (RC) and Diamond (DD) core holes was completed at the F1 anomaly. Drilling intercepted an I-type intrusive granodiorite with hydrothermal alteration was noted as occurring with pyrrhotite, minor chalcopyrite and molybdenite intergrown with coarse muscovite, interstitial to igneous quartz, feldspar and biotite, within granodioritic host rocks. The easternmost drillhole (F1DD01), passed through anomalous molybdenum (up to 0.2% Mo) as well as other IRG pathfinders including Bi, As (up to 1%) and Au (up to 0.24g/t). The pattern between the three drillholes suggests a pathfinder zonation in the F1 anomaly, pointing to potential for high gold zones in association with magnetic high responses, outside the centre of the intrusion. Modelling indicates no drilling tested the discrete magnetic high anomaly. H1 Anomaly A discrete magnetic high where regional aeromagnetics suggests the anomaly is underlain by a large intrusive. Drilling intersected significant fluorite in veins indicating the influence of igneous fluids and hydrothermal mineralisation. Disseminated magnetic pyrrhotite becomes more abundant towards the bottom of the hole corresponding to increasing Zn anomalism. Modelling suggests the magnetic target was not tested. CUT-B Anomaly The coincident gravity high and magnetic high anomaly shows the close spatial relationship between magnetic material and dense material in a favourable structural position. Historical drilling appears to have missed the magnetic anomaly however mineralised veins were noted with assays up to 113g/t Ag, 0.5% Cu and 4.2% Zn. These veins are within a 300 m zone of strong carbonate and silica alteration indicative of an extensive, metalliferous, hydrothermal system, which the Company interprets to have not been tested. FIGURE 2: AEROMAGNETIC RTP IMAGES SHOWING EXAMPLES OF DISCRETE MAGNETIC TARGETS ON THE PROJECT Proposed Exploration Initial work will focus on compiling and interpreting the existing exploration datasets and reviewing historical drill core stored at the Londonderry Core Library. This work will be completed in parallel with ongoing activities across the Company’s portfolio within our existing budget. Legacy Minerals Holdings Limited Annual Report 30 June 2024 Page 9 Directors’ Report (continued) DRAKE PROJECT The Drake Project sits within the highly prospective New England Fold Belt (NEFB) and covers two granted exploration licences EL6273 and EL9616, and exploration licence application ELA6642. It is one of several epithermal gold, silver, and base metal districts that formed along the east coast of Australia during the Permian age as back-arc extensional volcanic basins. Several significant mines and deposits occur within the NEFB, including the Cracow gold mine (2.5Moz Au @ 4.97g/t) v, Mt Carlton gold mine (8.5Moz Au) vi and Mt Rawdon gold mine (2Moz Au) vii, and the Mt Carrington Mine which the Drake Project surrounds. Details of the Acquisition Legacy Minerals wholly-owned subsidiary, Greenpath Minerals Pty Ltd (Greenpath), entered into an agreement to acquire exploration license EL6273 EL9190 and EL9194 for A$200k in cash from White Rock Limited (EMS). Starlight will grant a 1.5% royalty to EMS and have the option to buy back 0.75% of the royalty for A$2M and the remaining $0.75% for A$4M at any stage. Project Overview and Exploration The Company continues to work towards compiling a comprehensive database of all historical surface and drilling assays, as well as historical geological maps, mining activities and geophysical surveys. The size of the Project area and the extensive work that has been undertaken by companies over the years is significant and provides Legacy Minerals with a fantastic base of knowledge and information from which to leverage and work from. This work is expected to be finalised over the next couple months and the learnings from which will be key in determining the forward exploration program. In parallel to this work, the Company is assessing a range of potential geophysical survey techniques to be acquired over the tenement area. The work will begin to set the foundation for the Company’s systematic approach of target generation across the Project area. Extensive, shallow gold, copper and silver results from across the Project area demonstrate compelling discovery potential, with assays including: • RED003: 8m at 16.92g/t Au, 17g/t Ag, 0.53% Cu, 1.45% Pb and 6.89% Zn, from 52m viii During the reporting period, Legacy Minerals signed a key land access agreement with the Forestry Corporation of NSW covering 13,728 ha of the Drake Project. The Company has now established a base of operations at Drake by leasing a property, including a shed and core yard, to facilitate future exploration and drilling programs. FIGURE 3: EXAMPLES OF EPITHERMAL VEIN TEXTURES FROM DRILL HOLES KYDD003 AT 65.5M, WRDD012 AT 120M AND 146.5M AND INTERPRETED PORPHYRY D-VEIN IN KYDD001 AT 52.5M ix, x, xi Legacy Minerals Holdings Limited Annual Report 30 June 2024 Page 10 Directors’ Report (continued) FIGURE 4: DRAKE PROJECT EXPLORATION L ICENCE (EL6273 AND EL9616) AND E XPLORATION LICENCE A PPLICATION (ELA6642) WITH MAJOR PROSPECTS HIGHLIGHTED OVER THE PERMIAN D RAKE VOLCANICS xii. Legacy Minerals Holdings Limited Annual Report 30 June 2024 Page 11 Directors’ Report (continued) BAULOORA PROJECT The Bauloora Project exhibits a larges zone of low sulfidation, epithermal-style gold and silver alteration and mineralisation in NSW. The project hosts numerous targets with shallow high-grade Au-Ag occurrences which includes the Mee Mar Prospect with vein strikes over 2 km and rock samples up to 55.5g/t Au and 933g/t Ag xiii. Legacy Minerals has progressively developed the Bauloora Project through systematic exploration work including geological mapping, rock chip sampling, gradient array IP surveying, detailed ground magnetic surveying, ASTER data acquisition and interpretation, and widespread soil sampling. The results from this work strongly supported the assessment that there is significant potential for a major low sulfidation epithermal-style gold-silver deposit at the Bauloora Project. The Bauloora Project is in the Central Lachlan Fold Belt NSW, which is host to world-class copper-gold orebodies including the Cadia-Ridgeway, Northparkes, and Cowal Mines. It is in a zone which is bounded to the west by the Gilmore Fault Zone and to the east by the Cootamundra Fault. Bauloora contains structural remnants of Early Silurian dominantly dacitic volcanic rocks and related granites, Siluro-Devonian sediments and felsic volcanic rocks deposited on a basement of Late Ordovician turbidites, Late Ordovician to Early Silurian intermediate volcanic rocks and related intrusions and sedimentary rocks. xiv Geophysics and Geochemistry F IGURE 5: B AULOORA PROJECT AERIAL MAGNETICS AND PRIMARY VEIN FIELD LOCATION xv Legacy Minerals Holdings Limited Annual Report 30 June 2024 Page 12 Directors’ Report (continued) The Company completed Phase 1 of a large-scale, 80 line-km Audio-frequency Magnetotelluric (AMT) Survey over the Bauloora Vein Field. Phase 1 of the AMT survey comprising 522 sites across the Bauloora Vein field, aimed at defining resistive potential ‘feeder structures’ that may host high-grade gold. AMT is a geophysical survey technique that has been successful in targeting low sulphidation epithermal Au-Ag deposits around the world and will provide visibility to almost 1km depth. Geophysical contractors Quantec Geoscience and AGS were engaged to complete this work. The total survey area including Phase 2 will cover approximately 10km2 with approximately 200m spaced lines and infill to 100m spaced lines at the Breccia Sinter Prospect. The Company flew a large and detailed magnetic and radiometric survey across the entire 330km2 Bauloora Project, comprising 7,041 line km at 50m spaced lines, co funded by the NSW Government xvi. Flight lines were at 50m line spacing at a height of approximately 60m-150m, to provide high quality magnetic and radiometric survey data which will greatly improve upon the currently available government survey data obtained over the tenement. These datasets will greatly enhance the ability to interpret litho-structural controls to mineralisation across the tenement and potentially the direct detection of new Au-Ag epithermal prospect areas by identifying demagnetisation due to magnetite-destructive alteration of the host volcanic rocks and elevated K:Th which may represent illite-adularia alteration. Three diamond drill holes were completed for a total of 1,795.7m at the Breccia Sinter prospect. Low sulphidation epithermal-style veins were intersected in all drill holes. Variations in vein textures and mineralogy between veins and overprinting existing quartz veins suggests a low-sulphidation epithermalstyle of mineralisation has been overprinted by a later intermediate sulphidation epithermal-style of mineralisation. Geological observations indicate these holes intersected host rocks that are variably altered rhyodacites, conglomerate, volcaniclastics and tuffs. Broad zones of chlorite-sericite hydrothermal alteration are observed distal to structures and moderate to intense sericite-hematite or silica-sericite+/- hematite alteration is found proximal to epithermal-style veins. Legacy Minerals Holdings Limited Annual Report 30 June 2024 Page 13 Directors’ Report (continued) Drilling F IGURE 6: B AULOORA PROSPECTS, DRILLING AREAS IN Q1 AND Q2 2024 AND INTERPRETED SINTER RELATED LITHOLOGY Legacy Minerals Holdings Limited Annual Report 30 June 2024 Page 14 Directors’ Report (continued) Newmont Earn-in and Joint Venture Agreement Legacy Minerals entered into a A$15 million farm-in and joint venture agreement with Newmont Exploration, a subsidiary of the Newmont Corporation, at its Bauloora Project. Minimum Commitment Before withdrawal from the joint venture, Newmont was required to test the Breccia Sinter Prospect by the end of 2023, undertake a regional aerial magnetic survey of the tenements by end of 2023, and spend A$2 million within 24 months. Newmont has met all these minimum requirements. Phase 1 - $5M earn-in for 51% Subject to satisfying the minimum commitments, Newmont may acquire a 51% farm-in interest in the Bauloora tenements by spending a total of A$5 million within 48 months. Newmont will be required to undertake 4,000m of drilling within 48 months and Legacy Minerals will act as operator during the initial earn in period. Phase 2 - $10M earn-in for 75% Subject to completion of Phase 1, Newmont may earn a further 24% farm-in interest in the tenements by spending an additional A$10 million and undertaking a further 8,000m of drilling within 48 months. Newmont financing facility and Mining Joint Venture • A Mining Joint Venture may be formed between the companies upon the decision to mine. • At the discretion of Legacy Minerals, LGM may enter an agreement to a loan carried