CANYON RESOURCES LIMITED — Board/Management Information 2021

Jun 16, 2021

Announcement

17 June 2021

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Experienced Rail Expert Joins Project Team

Highlights

• Highly experienced rail construction and operations executive, André Henry, joins the team in Cameroon.

• André brings more than 35 years of rail development and operational leadership to the Canyon team including with Emirates Global Aluminium’s US$1.4bn GAC project in Guinea.

• André’s appointment strengthens the project team in the key areas of port and rail.

Canyon Resources Limited (ASX: CAY) ( Canyon , Company ) is pleased to announce the appointment of André Henry as Director of Port and Rail, Camalco. Camalco SA ( Camalco ) is the 100% owned Cameroonian entity which holds the permits for Canyon’s Minim Martap Bauxite Project in Cameroon, one of the highest-grade bauxite deposits globally. André has been consulting to Canyon for the last 6 months.

André, as Director of Port and Rail, joins Camalco Director General Rick Smith in Cameroon, and, upon an invitation from Camrail, is based in the Camrail office near the port of Douala. André and Rick both recently held senior management positions in the construction of the US$1.4bn GAC bauxite project in Guinea. Together with Camalco’s technical services team in Cameroon and the corporate team in Perth, Australia, André’s appointment prepares the owners team for the transition from studies to project execution.

André has had a highly successful, rail and logistics focussed career for over 35 years and has led billion-dollar international railway initiatives for AECOM’s West African, Middle East and North American businesses, Etihad Rail and Emirates Global Aluminium’s bauxite project in Guinea. He has also operated his own successful rail consultancy business for 10 years and has previously worked on the Cameroonian rail network including within the port of Douala. His experience spans the project development cycle from government negotiations, financing, construction, operational readiness, operations, and operational optimisation. Bringing direct experience on the Cameroon rail line and a well-connected network of technical and governmental contacts in Cameroon, André is very well placed to take the rail and port project elements to the next phase of development.

As the BFS proceeds towards completion, André will lead negotiations between Camalco and the government, Camrail and the Port Authority of Douala to ensure commercial alignment with the technical studies. Meanwhile our key BFS consultants, Vecturis, FHDI and CIE, continue to advance the technical components of the BFS.

Managing Director, Phil Gallagher said: “It gives us great pleasure to welcome Andre to the team. His rail and Cameroonian expertise are second to none and with recent experience delivering the rail solution for the GAC Project in Guinea, we couldn’t have hoped for a more perfect fit for the role.”

André Henry added: “I am very excited to join the Canyon team. This project benefits greatly from the rail network, and I am absolutely ready to take on this challenge and deliver the infrastructure solutions for the Minim Martap Bauxite Project. I’ve worked with Vecturis in the past and have worked on the Cameroon railway, so I know it intimately and I understand the challenges and opportunities exceptionally well.”

Canyon Resources Limited ACN 140 087 261 L9/863 Hay Street Perth WA 6000 | PO BOX 7606 Cloisters Square WA 6850 | p: +61 8 6382 3342 f: +61 8 9324 1502 | info@canyonresources.com.au | www.canyonresources.com.au

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Experienced Rail Expert Joins Project Team

About Canyon Resources

Summary

Canyon Resources is focussed on the development of the 100% owned Minim-Martap Bauxite Project, a direct shipping ore (DSO) project development opportunity in central Cameroon. The Project is situated adjacent to the main rail line linking the region to the Atlantic port of Douala. The rail line is currently underutilised and coupled with the existing port of Douala, supports a low capex, low opex solution to deliver high grade, low contaminant, seaborne bauxite to market to fuel the large and growing aluminium industry as described in the 2020 Pre-Feasibility Study[1] . The country is planning a rail extension and is undergoing rail line debottlenecking upgrades, giving longer term potential for export through the newly built, deep-water port of Kribi.

Canyon is planning the development of the bauxite Project in a 2 Stage, 2 Port execution programme with initial production exported though the port of Douala utilising the existing rail and port infrastructure and Stage 2 unlocking tonnes and reducing costs by utilising the planned rail extension to access the deep-water port of Kribi.

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1 ASX announcement 1 July 2020

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Experienced Rail Expert Joins Project Team

Pre-Feasibility Study

The Company’s Stage 1 Pre-Feasibility Study[2] demonstrated the Minim Martap Bauxite Project’s potential as a long-term producer of very high quality, low contaminant bauxite via a multi-stage development program utilising existing infrastructure in Cameroon. Subsequent to the PFS, the mining costs have been updated to reflect cost inputs from mining contractors to demonstrate outcomes for mining contract, rather than owner operated, mining operations. The headline economic outcomes of the Pre-Feasibility Study and the subsequent update are shown below. Canyon is advancing strategic partnership and off-take agreement discussions with interested parties to accelerate the Project development timeline.

Minim Martap Project	Units	PFS(Owner Mining)2	PFS(Contractor Mining)3
Annual Production Rate Mtpa 5.0 5.0
Project Development Capital US$M 120 109
Average OperatingCost C1 US$/t 35.1 36.1
Project NPV10 US$M 291 289
Project IRR % 37 38
Capital Intensity US$/t 24 24

Reserves and Resources

The Project is validated by the Ore Reserve estimate[3] prepared by a Competent Person, in accordance with the JORC Code (2012) and is stated as:

Reserve
Classification	Tonnes (Mt)	Alumina	Silica
Proved	99.1	51.6% Al2O3	2.4% SiO2
Probable	-	-	-
Total Ore Reserves	99.1	51.6% Al2O3	2.4% SiO2

The underlying Mineral Resource estimate[4] prepared by a Competent Person, in accordance with the JORC Code (2012) is stated as :

Resource(35% Al2O3cut-off)
	Tonnes (Mt) ore	Alumina	Silica
Total	1,027	45.3% Al2O3	2.7% SiO2
Measured	382	47.3% Al2O3	2.7% SiO2
Indicated	597	44.2% Al2O3	2.7% SiO2
Inferred	48	43.2% Al2O3	3.7% SiO2
Contained High Grade Resource(45% Al2O3cut-off)
	Tonnes (Mt) ore	Alumina	Silica
Total	500	49.0% Al2O3	2.6% SiO2
Measured	268	49.7% Al2O3	2.6% SiO2
Indicated	218	48.3% Al2O3	2.5% SiO2
Inferred	14	47.3% Al2O3	2.8% SiO2

2 ASX announcement 1 July 2020

3 ASX announcement 25 May 2021

4 ASX announcement 11 May 2021

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Competent Person’s Statement – Ore Reserves

The information in this report that relates to Ore Reserves is based on information compiled or reviewed by Mr John Battista, a Competent Person who is a Member and Chartered Professional (Mining) of the Australasian Institute of Mining and Metallurgy and is currently employed by Mining Plus (UK) Ltd. Mr Battista has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which is being undertaken to qualify as a Competent Person as defined in the 2012 edition of the Australasian Code for the Reporting of Exploration Results, Mineral Resources, and Ore Reserves (JORC Code).

Mr Battista consents to the disclosure of information in this report in the form and context in which it appears.

Competent Person’s Statement – Mineral Resources

The information in this announcement that relates to mineral resources is based on information compiled or reviewed by Mr Mark Gifford, an independent Geological expert consulting to Canyon Resources Limited. Mr Mark Gifford is a Fellow of the Australian Institute of Mining and Metallurgy and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which is being undertaken to qualify as a Competent Person as defined in the 2012 edition of the Australasian Code of Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code).

Mr Gifford consents to the inclusion in the announcement of the matters based on his information in the form and context in which it appears.

Mineral Resource estimate

The data in this announcement that relates to the Mineral Resource estimates for the Minim Martap Bauxite Project is based on information in the Resources announcement of 11 May 2021 and available to view on the Company’s website and ASX.

The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and, in the case of estimates of Mineral Resources, that all material assumptions and technical parameters underpinning the estimates in the original market announcement continue to apply and have not materially changed. The Company confirms that the form and the context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement

Pre-Feasibility Study

The data in this announcement that relates to the Pre-Feasibility Study for the Minim Martap Bauxite Project and associated production targets and forecast financial information, is based on information in the PFS announcement of 1 July 2020 and available to view on the Company’s website and ASX.

The Company confirms that all the material assumptions underpinning the production target and forecast financial information derived from the production target continue to apply and have not materially changed.

Ore Reserve estimate

The data in this announcement that relates to the Ore Reserve estimate for the Minim Martap Bauxite Project is based on information in the maiden Ore Reserve announcement of 25 May 2021 and available to view on the Company’s website and ASX.

The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and, in the case of estimates of Ore Reserves, that all material assumptions and technical parameters underpinning the estimates in the original market announcement continue to apply and have not materially changed. The Company confirms that the form and the context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement.

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About Cameroon

Canyon Resources Ltd is exploring and developing high grade bauxite reserves in Cameroon, a central-west African country between Nigeria and Equatorial Guinea with Yaounde as the capital. The country has enjoyed the development of industry and infrastructure, particularly agriculture, roads, railways and ports and including a hydro-electric powered aluminium smelter at Edea, currently utilising imported alumina. Cameroon is a producer, consumer and exporter of gas, having exported 6,262,113 million BTU by the end of May 2020, and crude oil and has rich deposits of cobalt, iron ore, gold, diamonds and vast high grade bauxite ore reserves. Revenues from the extractive industries accounted for 5.43% of GDP and 33.23% of total exports in 2015. Cameroon has the fundamental infrastructure and mineral deposits to support a significant mining industry and the population is generally highly skilled in the technical vocations commensurate to exploration, construction and mining.

Forward looking statements

All statements other than statements of historical fact included in this announcement including, without limitation, statements regarding future plans and objectives of Canyon, are forward-looking statements. When used in this announcement, forward-looking statements can be identified by words such as ‘anticipate”, “believe”, “could”, “estimate”, “expect”, “future”, “intend”, “may”, “opportunity”, “plan”, “potential”, “project”, “seek”, “will” and other similar words that involve risks and uncertainties.

These statements are based on an assessment of present economic and operating conditions, and on a number of assumptions regarding future events and actions that are expected to take place. Such forwardlooking statements are not guarantees of future performance and involve known and unknown risks, uncertainties, assumptions and other important factors, many of which are beyond the control of the Company, its directors and management of Canyon that could cause Canyon’s actual results to differ materially from the results expressed or anticipated in these statements.

Canyon cannot and does not give any assurance that the results, performance or achievements expressed or implied by the forward-looking statements contained in this announcement will actually occur and investors are cautioned not to place undue reliance on these forward-looking statements. Canyon does not undertake to update or revise forward-looking statements, or to publish prospective financial information in the future, regardless of whether new information, future events or any other factors affect the information contained in this announcement, except where required by applicable law and stock exchange listing requirements.

This announcement has been approved for release by the Board. Enquiries:

PHILLIP GALLAGHER | Managing Director | Canyon Resources Limited T: +61 8 6382 3342 E: info@canyonresources.com.au

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Canyon Resources Limited