AIC MINES LIMITED — Capital/Financing Update 2021

Oct 31, 2021

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ASX Announcement

1 November2021

Completion of Eloise Copper Mine Acquisition

AIC Mines Limited (“AIC” or “the Company”) (ASX: A1M) is pleased to advise that it has completed the acquisition of the Eloise Copper Mine from FMR Investments Pty Ltd (“FMR”).

The acquisition heralds a new and exciting stage for the Company. It creates a new growth-oriented ASX-listed copper mining company with strong free cashflow and the ability to add value through exploration success, resource growth, operational reliability and regional consolidation.

Aaron Colleran, the Managing Director of AIC, said:

“Considerable effort has gone into completing the Eloise transaction and I am very thankful for the herculean efforts of both the AIC and FMR employees who have assisted with the completion process and ownership transition.

The opportunity ahead of us is very exciting. We can now turn our attention to capturing the potential which we believe exists at Eloise. AIC’s exploration strategy for Eloise will focus on both extensions to the known resource areas and the discovery of new satellite lodes within the Eloise tenements. There is clear potential to extend the mine life well beyond five years.”

The Company’s shares are expected to be reinstated to trading on the ASX on 5 November 2021.

Authorisation

This announcement has been approved for issue by, and enquiries regarding this announcement may be directed to Aaron Colleran, AIC Mines Managing Director, via email info@aicmines.com.au.

About the Eloise Copper Mine

Eloise is a high-grade operating underground mine located 60 kilometres southeast of Cloncurry in North Queensland. It commenced production in 1996 and has since produced approximately 339,000t of copper and 167,000oz of gold. Current annual production is approximately 40,000dmt of highquality copper concentrate containing approximately 11,000t of copper and 6,000oz of gold.

Current operations consist of an underground mine accessed via decline. The upper levels of the mine (above 1,190m below surface) are extracted by longhole open stoping and the lower levels are extracted by sublevel caving. Eloise is an owner-miner operation with a mining contractor used only for underground development.

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Processing is via conventional crushing, grinding and sulphide flotation with capacity to treat up to 750,000tpa. Metallurgically the ore is very consistent as the ore mineralogy at Eloise is almost exclusively chalcopyrite. Processing achieves high copper recoveries (generally 94% - 95%) and produces a clean concentrate. The concentrate has significant by-product credits from gold and silver.

Further information about the Eloise acquisition is provided in the Company’s Notice of General Meeting released on 24 September 2021, available at the Company’s website.

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