June 2024 Quarterly Activities Report

Anax Metals Limited (ASX: ANX, Anax, or the Company) continues to advance its flagship Whim Creek Copper-Zinc JV Project (the Project) located in the Pilbara region of Western Australia (Figure 1).

Highlights of the Quarter ended 30 June 2024

• Whim Creek production hub strategy gathering momentum
• Promising heap leach results from Sulphur Springs
• Memorandum of Understanding (MOU) executed with GreenTech Metals Ltd over the Whundo VMS Project
• Drilling contract with part payment of drilling services in equity up to $1 million executed with Topdrill Pty Ltd
• Rig mobilised to the high-grade Evelyn deposit in July (post quarter)
• Expanded focus on base metal exploration in the next quarter

The Whim Creek DFS (April 2023) demonstrated a technically and economically robust polymetallic project and strategic processing hub development in the Pilbara.¹ The DFS considered processing sulphide ore from the Mons Cupri, Whim Creek, Evelyn and Salt Creek deposits through a proposed new 400 kilo-tonnes per annum (ktpa) concentrator.

In addition to the sulphide concentrate production, Anax also intends to use the fully permitted existing heap leach facility to produce copper cathode and zinc sulphate. Heap leaching is anticipated to begin in the second year of operation and the modest refurbishments costs would be funded out of operational cashflow.

The heap leach Scoping Study (September 2023), was underpinned by column leaching test work that achieved copper extraction of 80% and zinc extraction of 90% from low grade sulphide ore.^2,3

Figure 1: Whim Creek Project Location in the Pilbara Region of Western Australia

The Whim Creek Project is forecast to produce an average of 12,000 tonnes of Copper Equivalent** (CuEq) per annum consisting of 62Kt of copper, 97Kt of zinc and 20Kt of lead over an 8-year mine-life

A summary of the key financial metrics of the previously released studies are presented below in Table 1.

Table 1: Key financial metrics of the combined sulphide and heap leach Whim Creek Project*

*Reported on a 100% Project Basis. ANX has an 80% interest in the project and will contribute 80% of costs and receive 80% of financial outcomes.
*Copper US$9,100, Zinc US$3,000, Lead US$2,100, Silver US$25, Gold US$1,800 US AUD 0.68.
**Refer to Copper Equivalent calculation later in this announcement.

The Whim Creek Project remains a robust development option that would be highly profitable in the current commodity price environment.

The Company is continuing Project financing discussions with several parties, including commodity traders, mining funds, and multi-nationals. Indicative non-binding terms have been received from several parties. Anax will continue to evaluate the options received to date and those that the Company expects to receive in the coming quarter.

While financing discussions continue, the Company will focus on pursuing Project growth opportunities, through Consolidation and Exploration.

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