CAVALIER RESOURCES LIMITED — Capital/Financing Update 2024

Oct 22, 2024

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ASX ANNOUNCEMENT
23 OCTOBER 2024
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Rights Issue Closes Strongly Supported

Highlights

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Non-renounceable rights issue closed with the full amount of $1.735 million raised

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• Board of Directors took their full entitlement

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• Significant support from shareholders and from new sophisticated, institutional and professional investors

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• Company is now well-placed to continue with finalising mine approval works and sourcing mining contractors, processing plant suppliers and financing for the Stage 1 oxide pit at the Crawford Gold Project

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• Increasing gold prices continue to positively impact the bottom line for Stage 1 and the future potential of the greater Crawford area

Daniel Tuffin, Executive Technical Director & CEO, commented:

“We would like to thank our existing shareholders for their support they have shown during this Entitlement Offer, representing over 73% of the issue amount. This strong participation underscores confidence in our management and the potential of the Crawford project.

We are equally pleased to welcome our new shareholders who join us at a pivotal time as we continue development of the Stage 1 pit at Crawford. With the completion of the Rights Issue, the Company can now continue to advance approvals and secure financing.

The current high gold price further enhances the prospects of increased financial returns from potential production at the Stage 1 Crawford pit, leaving us optimistic about a prosperous 2025.”

Gold Price Comparison Table:

Given the recent increases in the gold price, the Company has updated the range of its gold price analysis on the Stage 1 oxide-only pit.

The pit design, and therefore the contained physical ore and waste tonnages, remains unchanged.

The only alteration made was to the gold price.

Table 1: Gold Price Comparison Table, Original Stage 1 PFS Gold Price of A$2,900/oz Highlighted

Gold Price ($A/oz)	2,900	3,100	3,300	3,500	3,700	3,900	4,100
NPV8 ($A)	$14.8m	$19.0m	$23.2m	$27.4m	$31.6m	$35.8m	$40.0m
IRR (%)	122.9%	160.1%	198.8%	238.5%	279.1%	320.4%	362.2%
Payback (Mths)	12.3	11.6	11.0	10.5	10.1	9.8	9.5
Undiscounted Cashflow ($A)	$17.2m	$21.7m	$26.2m	$30.7m	$35.2m	$39.7m	$44.2m
Pre-Capex Undiscounted Cashflow ($A)	$23.7m	$28.2m	$32.7m	$37.2m	$41.7m	$46.2m	$50.7m

Note: Values in the table account for all existing royalties (state and NSR’s) at their relative gold price, but exclude tax, depreciation and amortisation.

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Details of the Rights Issue:

Cavalier Resources Limited ( ASX: CVR ) (“ Company ”) is pleased to advise that it has completed a 1 for 3 non-renounceable rights issue at 12 cents per share to raise $1.735 million (before issue costs).

The rights issue was strongly supported by the Company’s existing shareholders with a total of $1.278 million raised through acceptances, comprising 73.7% of the total amount sought under the rights issue. These shares are being issued today, Wednesday 23 October 2024 .

In addition, Daltons Equities (lead manager to the issue) has received firm commitments to place the $0.456 million shortfall with sophisticated, professional and institutional investors. The shortfall shares are expected to be issued on Friday, 25 October 2024 .

The funds raised under the rights issue will principally be used to conduct near-mine development and exploration drilling at the Crawford Gold Project, as well as additional drilling at the Ella’s Rock Li-Au-Ni Project, and for general working capital purposes.

Specifically, with the Crawford Gold Project, the funds raised will be deployed primarily to enable the Company to finalise progress of regulatory approvals and native title discussion to enable production at the Stage 1 open pit at the Crawford Gold Project and continue to advance financing and source mining contractors and process plant suppliers.

Crawford Gold Project:

The Crawford Gold deposit is located on the mining lease just 20km east of the Leonora township.

The Company aims to establish the Crawford Gold Project as a new gold mining hub and become self-funded, allowing the continuance to develop Crawford and progress with further exploration of its Leonora assets.

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Figure 1: Cavalier’s Leonora Projects, with Mineral Resource and Stage 1 Pit Ore Reserve (at a A$2,900/oz Gold Price) at Crawford Highlighted

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Crawford Stage 1 Oxide Pit Ore Reserve at A$2,900oz Gold Price:

The Ore Reserve relates specifically to the conversion of Indicated Resources to Probable Ore Reserves only within the Crawford pit design and includes consideration of the modifying factors.

Table 2: Crawford Maiden Ore Reserve

Reserve Classification	Ore Tonnes	Gold (g/t)	Gold Produced (Oz)
Probable	1,002kt	0.91	29,300
Total	1,002kt	0.91	29,300

Some errors may occur due to rounding. Mineral Resources are reported inclusive of Ore Reserves. Ore Reserves are based on a gold price of $2,900/oz. A cut-off grade of 0.3g/t was calculated based on the base case cost and processing recovery inputs and was used to generate the production schedule and calculate the Ore Reserve. Note that Ore Reserves are susceptible to geological, economic, geotechnical, permitting, metallurgical, mining, processing and other factors.

For more information on the Ore Reserve and Stage 1 Oxide PFS, please refer to the ASX releases on 14 March 2024 and 5 September 2024.

Cautionary Statement:

The production target and forecast financial information referred to in this announcement comprise Indicated Mineral Resources (99.8%) and Inferred Mineral Resources (0.2%) within the planned Stage 1 oxidised pit at the Crawford Gold Project. There is a low-level of geological confidence associated with Inferred mineral resources and there is no certainty that further exploration work will result in the determination of Indicated mineral resources or that the production target itself will be realised.

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Figure 2: Plan - Crawford Gold Stage 1 Oxidised Material Open Pit Project Plan at a A$2,900/oz Gold Price

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Competent Persons Statements:

The information relating to geology and exploration results is based on information compiled, reviewed and assessed by Mr. Paddy Reidy, who is a Member of the Australasian Institute of Mining and Metallurgy. Mr. Reidy is a consultant to the Company and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined by the 2012 Edition of the Australasian Code for reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code).

The scientific or technical information in this report that relates to metallurgical testwork and mineral processing for oxide mineralisation is based on information compiled or approved by Randall Pyper. Randall Pyper is an employee of Kappes, Cassiday & Associates Australia Pty Ltd and is considered to be independent of Cavalier Resources. Randall Pyper is a Fellow of the Australasian Institute of Mining and Metallurgy and has sufficient experience which is relevant to the commodity, style of mineralisation under consideration and activity which he is undertaking to qualify as a Qualified Person under National Instrument 43-101.

The information in this report that relates to Ore Reserves is based on information compiled by Anthony Keers, a Competent Person who is a Member and Chartered Professional (CP Mining) of The Australasian Institute of Mining and Metallurgy. Anthony Keers is Managing Director of Auralia Mining Consulting and Non-Executive Director of Cavalier Resources Ltd. Anthony Keers has sufficient experience that is relevant to the type of deposit and proposed mining method under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code).

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 or Ore Reserves, that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement.

The Company further confirms that all the material assumptions underpinning the production target, or the forecast financial information derived from the production target, in the initial public report continue to apply and have not materially changed.

This announcement has been approved and authorised by the Board of Cavalier Resources Limited.

For further information:

For further information:
Investor Relations	Media Enquiries
Daniel Tuffin	Stewart Walters
Executive Technical Director	MarketOpen
daniel@cavalierresources.com.au	Stewart@marketopen.com.au

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About Cavalier Resources

The Company has interests in Tenements in Western Australia, collectively known as the Leonora Gold Project, Hidden Jewel Gold Project, and Ella's Rock Li-Ni-Au Project, prospective for lithium, gold and nickel mineralisation.

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For more information on Cavalier Resources and to subscribe to our regular updates, please visit our website here and follow us on:

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https://twitter.com/CavalierLtd https://www.linkedin.com/company/cavalier-resources-ltd/

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https://www.facebook.com/cavalierresources

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