CAVALIER RESOURCES LIMITED — Capital/Financing Update 2024

Sep 4, 2024

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ASX ANNOUNCEMENT
5 SEPTEMBER 2024
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High Gold Prices Present Further Upside at the Crawford Project

Corporate Highlights

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• Record gold price highs present further upside to the Stage 1 Crawford open pit

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• The recently completed Stage 1 Oxide-only Pre-Feasibility Study (‘PFS’) was constrained to the highly recoverable, low cost, oxidised portion of the Mineral Resource for application to heap leach Processing

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• The PFS Maiden Ore Reserve for Stage 1 oxide pit was 1Mt @ 0.91g/t for 29,300oz of gold with a pre-CAPEX undiscounted cashflow of A$24.6M , NPV8 of A$15.7M and an IRR of 130% using a gold price of A$2,900/oz

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• Application of a gold price of A$3,700/oz to the same Stage 1 oxide pit design returns a preCAPEX undiscounted cashflow of A$43.0M , NPV8 of A$32.8M and an IRR of 289%

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• Mining approval processes continue on schedule for the Stage 1 Oxide-only open pit

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• All remaining environmental studies are complete; mining licence applications are on schedule for completion. Approval submission scheduling remains on track

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• The Company has begun requesting tenders for mining

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• Further detailed heap leach circuit studies have been progressed. The Company is now looking to source processing components ahead of expected ore delivery to the ROM circa Q2, 2025

Daniel Tuffin, Executive Technical Director & CEO, commented:

“Current high gold prices present a significant upside for the Stage 1 Crawford open pit, shifting the PFS IRR from 130% and a NPV8 of A$15.7M at a gold price of A$2,900/oz to an IRR of 289% and a NPV8 of A$32.8M at a gold price of A$3,700/oz.

Mining approval processes for the open pit are progressing on schedule; the Company has begun requests for mining tenders, while moving forward with detailed heap leach circuit studies.

The Company continues to advance the project towards the submission of mining approvals and looks forward to commencing mining operations for Stage 1 early in the coming new year.”

Gold Price Comparison Table:

Auralia Mining Consulting completed an updated gold price analysis on the Stage 1 oxide-only pit. The pit design, and therefore the contained physical ore and waste tonnages, remained unchanged. The only alteration made was to the gold price.

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

Gold Price ($A/oz)	2,500	2,700	2,900	3,100	3,300	3,500	3,700
NPV ($A)	7.2m	11.5m	15.7m	20.0m	24.3m	28.5m	32.8m
IRR (%)	59.5	93.8	130.2	168.3	207.9	248.5	289.9
Payback (Mths)	14.0	13.1	12.2	11.5	10.9	10.4	10.0
Undiscounted Cashflow ($A)	9.0m	13.6m	18.2m	22.8m	27.4m	31.9m	36.5m
Pre-Capex Undiscounted Cashflow ($A)	15.4m	20.0m	24.6m	29.2m	33.8m	38.3m	42.9m

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Approvals Update:

Major approval studies completed to date include:

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• Surface environmental flora and fauna site surveys

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• Subterranean fauna study

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• Hydrogeological study

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• Surface water assessment

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• Ore & waste environmental tests / soils characterisation

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• Archaeological and ethnographic baseline assessment

Stakeholder engagement and consultation with traditional owners is continuing, as is a review of the requirements for further detailed archaeological and ethnographic surveys.

Environmental baseline studies to date indicate there are no significant environmental factors which trigger the requirement for approval under Part IV of the Environmental Protection Act (1986) WA, or the Commonwealth Environmental Protection and Biodiversity Conservation Act (1999).

Compilation of the relevant Mining Act and Environmental Protection Act Approvals are progressing on schedule, including:

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• Mining Proposal and Mine Closure Plan

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• Native Vegetation Clearing Permit

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• Works Approval

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Applications under the Rights in Water and Irrigation Act (1914) WA

Approval submission scheduling remains on track.

Mining Tenders:

Suitably qualified mining contractors have been approached to provide Cavalier with quotes to undertake mining of the Stage 1 oxide-only pit at Crawford. Initial responses have been within expected tolerances used for the PFS.

Crawford Stage 1 Oxide Pit Pre-Feasibility Study at A$2,900/oz:

The PFS resulted in an Ore Reserve of 1,002,000 tonnes at 0.9g/t for 29,300 ounces of gold, with a pre-CAPEX undiscounted cash flow of A$24.6M using a gold price of A$2,900/oz.

Key PFS Highlights:

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Project Life 18 Months Processing Life 15 Months Gross revenue A$68M Gold production of 23,467 recovered ounces

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C1 AISC of A$1,777/oz

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Pre-Production Capital expenditure of A$5.6M Total undiscounted cash flow of A$18.2M, inclusive of capital costs NPV8 of A$15.7M

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IRR of 130%

Key PFS Parameters:

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Indicated Resources account for >99.5% of ore contained in the production target. Applied gold price of $A2,900 per ounce

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95% mining recovery factor and 10% mining dilution factor

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Base total mining cost applied $5.05/bcm, with fixed increase of $0.375/bcm per 5m in depth Contractor fixed costs of $2.40/bcm

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Processing costs of $20/t ore and recovery of 80% WA state gold royalty of 2.5% Discount rate of 8%

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Crawford Stage 1 Oxide Pit Ore Reserve:

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 announcement on 14 March 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.

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 to become self- funded to continue to develop its gold assets near Leonora and progress with further exploration.

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Figure 1: Cavalier’s Leonora Projects, with Resource and Reserve Figures at Crawford Highlighted

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Figure 2: Plan - Crawford Gold Stage 1 Oxidised Material Open Pit Project Plan

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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.

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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