Arbitration Update

Antilles Gold Limited (“Antilles Gold”, or the “Company”) (ASX: AAU, OTCQB: ANTMF) confirms that the specialist law firm acting for the Company in Arbitration proceedings for ~A$45M of contractual claims against the Dominican Republic Government has received advice from the World Bank’s International Centre for Settlement of Investment Disputes (“ICSID”) stating “drafting of the Award is well advanced, and will be issued in the first quarter of 2024”.

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• Drafting of the Award from the recently concluded Arbitration of claims for ~$45 million against the Dominican Republic Government, is well advanced
• The Award is now expected in Q1 2024
• Receipt of even a modest (partial) Award could potentially cover the Company’s committed costs through to mid-2025 when the Nueva Sabana mine should be producing a positive cash flow

This is later than previously expected, and as a consequence the Company has decided to effect a small $1.0M to $2.0M share placement to Sophisticated Investors, to maintain the momentum of its projects in Cuba through this period.

These funds should enable the MRE, metallurgical test work, Scoping Study, and the majority of permitting for the Nueva Sabana gold-copper mine in central Cuba to be completed by the end of March 2024 in anticipation of commencement of the 10 month construction period in June 2024.

A total of 10,000m of diamond drilling for the Nueva Sabana oxide deposit has been completed, and the final two holes in the initial program of 6 deeper holes into the underlying El Pilar copper- gold porphyry deposit will be drilled by the end of this month.

Metallurgical test work on the gold-arsenopyrite concentrate that will be produced from the proposed La Demajagua mine will be commenced in December 2023 by Chinese engineering company, BGRIMM Technology Group.

On completion of the test work, BGRIMM will present an offer for the turnkey design and construction of a 75,000tpa two-stage fluid-bed roaster, and a 100,000tpa CIL circuit, to process ~50,000tpa of gold arsenopyrite concentrate and ~35,000tpa of oxide ore from La Demajagua, and ~25,000tpa of imported gold pyrite concentrate.

Constructing the concentrate processing facility with a production capacity of ~100,000oz Au per year in a doré should significantly increase the profitability, and the NPV of the La Demajagua project.

An amendment to the existing Environmental Permit for the La Demajagua mine will also be progressed during the next few months to accommodate the inclusion of the roaster/CIL operations.

Mr Brian Johnson, Chairman of Antilles Gold commented that “it is disappointing that the Arbitration Award will not be known for several months, and he hoped shareholders would understand that a small raise at this time was preferable to approaching the market in December or January for funding of activities in Q1 2024.

Funding through March 2024 will be in place after the proposed raise, and even a modest Arbitration Award could potentially meet committed costs through to when cash flow is expected to commence from the Nueva Sabana mine in mid 2025.

In an effort to minimize, or avoid, coming back to the market for additional capital to fund copper exploration campaigns, the Company has approached three major copper miners on the possibility of an association that would result in non-dilutive financial support for advancing the exploration of the El Pilar copper-gold porphyry system, and the three concessions in the Sierra Maestra copper belt which are highly prospective for copper, gold, and molybdenum.”

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