Quarterly Activities and Cashflow Report for the period ending 31 December 2024

Boab Metals Limited (ASX: BML) (“Boab” or “Company”) is pleased to provide the following activities and cashflow report for the quarter ending 31 December, 2024. During the quarter, the Company continued progressing its flagship Sorby Hills Lead-Silver-Zinc Project (“Sorby Hills” or “the Project”), located in the Kimberley Region of Western Australia.

HIGHLIGHTS

• Binding US$30 million Prepayment Terms Sheet and associated Offtake Agreement executed between Boab’s 100% subsidiary Sorby Hills Pty Ltd and global commodities trader Trafigura.

Prepayment Terms Sheet – Key Terms

• US$30 million Prepayment Facility from Trafigura to be applied towards the construction and development of the Project.
• Interest Rate of SOFR + 5% per annum.
• 5-year Term from first drawdown with an 18-month interest-only period.

Offtake Agreement – Key Terms

• 75% of lead-silver concentrate from Sorby Hills for a minimum of 531,000 tonnes.
• If Boab obtains alternative financing to the Prepayment, the Offtake volume will revert to 50% (or greater, at Boab’s discretion) for a minimum 354,000 tonnes.
• If Financial Close is not achieved on the Prepayment, the Offtake volume will revert to 25% (or greater, at Boab’s discretion) for a minimum 177,000 tonnes.
• WA Government consented to key amendments for Sorby Hills required under Part IV of Western Australia’s Environmental Protection
• Boab continues to progress opportunities to further reduce capital and operating costs.
• Targeted Final Investment Decision in 2H 2025.
• The Company had a cash balance of approximately A$3.5M as at 31 December, 2024.

“The December quarter of 2024 saw significant project execution milestones achieved. The binding Prepayment and Offtake agreement with Trafigura is highly favourable for Boab and is the result of a thorough offtake process that demonstrated the attractiveness of the Sorby Hills concentrate. The EPA amendments provide Boab with scope to implement the Sorby Hills Project in line with the Project’s FEED study, including an increase to the open pit depth and mining production rate. We look forward to building upon these milestones and the momentum that we have generated over the past six months to advance Sorby Hills to a Final Investment Decision in 2025.”

Background Information

Sorby Hills is located 50km from the regional centre of Kununurra in the East Kimberley of Western Australia and has access to existing sealed roads to transport the concentrate 150km from the site to the facilities at Wyndham Port. The Project comprises a Mineral Resource of 47.3Mt containing

1.5Mt Pb at 3.1% and 53Moz silver at 35g/t (Table 1). The current Sorby Hills mine plan comprises 18.3Mt at 3.4% Pb and 39g/t Ag of which ~83% is classified as an Ore Reserve (Table 2).

On 6 June 2024, Boab released the results of a Front-End Engineering & Design Study (“FEED Study”) on the Project showing strong pre-tax economics including C1 operating costs of US$0.36/lb payable Pb (incl. a net silver credit of US$0.37/lb payable Pb), NPV₈ of A$411M, IRR of 37%, A$778M free cash flow, and an average annualised EBITDA of A$126M. Pre-production capital costs were estimated to be A$264M.

With operating costs covered by revenue generated by a historically non-volatile lead price, the Project free cash flow is exposed to movements in the price of silver.

The Company currently owns 75% of the Project and has executed an agreement to acquire the remaining 25% of the Project upon a Final Investment Decision (ASX release 23 September 2024).

Binding Offtake and Prepayment Agreement

During the quarter, Boab (via its 100% own subsidiary Sorby Hills Pty Ltd (“SHPL”) executed a binding Offtake Agreement and associated US$30 million Prepayment with global commodities trader, Trafigura (ASX release 10 December 2024).

The Prepayment terms include a 5-year term, an interest rate margin of SOFR¹ + 5%, and an 18- month interest-free period after which repayments will be paid via equal monthly instalments. Financial Close and drawdown of the Prepayment are subject to, amongst other things, the execution of full-form documentation, the finalisation of outstanding due diligence, and the Project being fully-funded.

Base offtake terms are for 75% of the Sorby Hills Lead-Silver concentrate up to a minimum of 531,000 tonnes (~7 years based on the FEED Study production schedule) with market standard metal payabilities, metal pricing based on spot pricing and a lead treatment charge linked to the quoted annual benchmark. Should Boab utilise alternative financing to the Prepayment or not reach financial close on the Prepayment, Boab shall have the discretion to reduce the offtake volumes to 50% and 25% respectively. In each case, lead treatment charges will revert to an average of the prevailing annual benchmark and the spot lead treatment charge.

The agreements are the result of a highly competitive process including other global traders and smelters that demonstrated the attractiveness of the Sorby Hills concentrate product and represent a key milestone towards a final investment decision on Sorby Hills and a cornerstone of Boab’s financing solution for the Project.

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