Anax Metals Corporate Update

Anax Metals Limited (ASX: ANX, Anax, or the Company) is pleased to provide an update to the market on its corporate strategy focused on the recommencement of production at the Whim Creek Copper Project (Project), located 115km southwest of Port Hedland in the West Pilbara region of Western Australia (Figure 1). The Project is 80% owned by Anax with the remaining 20% owned by Develop Global Limited (ASX: DVP, Develop).

• Strengthened copper prices have enhanced the Whim Creek economics by 32% providing a Pre-Tax NPV₇ of $357M and IRR of 74%.*
• The planned 8-year mine life will generate ~$520M in free cash.*
• Potential to increase open pit mine-life and cashflow through re- optimisation at higher commodity prices.
• Evelyn and Salt Creek copper resource extension exploration to be prioritized in the coming field season.
• Studies for the regional processing hub strategy have commenced.
• The Sulphur Springs Oxide/Transitional leaching test work at the CSIRO completed.
• Project financing and strategic partnering discussions progressing.

Anax’s Managing Director, Geoff Laing commented: “The Whim Creek asset continues to shape up as a strategic processing hub for the Pilbara. The robust standalone project delivers attractive economic outcomes which are highly leveraged to base metal prices.

The recent increase in copper and other key metal prices has significantly enhanced project financial metrics. Anax is ideally positioned to benefit from the positive momentum building in copper demand on the back of its critical role in electrification and green technologies

The team has worked diligently to ensure the Whim Creek asset is ready for near term production of key energy metals while establishing a platform for growth through the processing hub and resource extensions.”

Figure 1: Location of the Whim Creek Project

Strengthening copper, zinc, lead, silver and gold prices adds significant momentum to Whim Creek’s near-term development and recommencement of operations. Key outcomes from the Whim Creek Definitive Feasibility Study (DFS)¹ and Heap Leach Study² based on current metal price and exchange rate inputs provides a ~32% improvement in the Whim Creek financial outcome and would generate circa $520 million free cash, a Pre-Tax NPV₇ of $357M and an IRR of 74%* (noting that the DFS¹ and Heap Leach Study² outputs from March and September 2023 provided an NPV₇ of $270M and IRR of 55%, respectively).

Furthermore, price assumptions used in open pit optimisations in the DFS were markedly lower than current commodity prices as shown in Table 1.

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