CAVALIER RESOURCES LIMITED - Capital/Financing Update 2025

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ASX ANNOUNCEMENT
5 SEPTEMBER 2025
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Placement to Raise up to $2.1 Million

Highlights

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Firm commitments received from sophisticated and professional investors for a Placement to raise up to $2.14 million
Negotiation of binding agreements for the proposed US$11 million secured pre-payment with Raptor Capital International Limited ( Raptor ) remains unchanged
Placement conducted using the entire available capacities under LR 7.1 and 7.1A at a 11.9% discount to the 15-day VWAP
Funds to be applied towards near-mine resource development drilling at the Crawford Gold Project to fast track potential future mine stages

Summary:

Cavalier Resources Limited ( ASX:CVR ) (“ Company ”) is pleased to announce that has received firm commitments for a placement to raise approximately $2.14 million (before issue costs) at $0.23 per new fully paid ordinary share (“ Placement ”).

The funds raised under the Placement will principally be used for:

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Resource development and extensional drilling at the Crawford Gold Project
Pre-mine development expenditure
General working capital

The Company continues to negotiate binding agreements for the proposed US$11 million secured upfront pre-payment with Raptor.

For further information on the Company’s current activities, please see the latest quarterly report released on 29 July 2025.

Daniel Tuffin, Executive Technical Director & CEO, commented:

“This funding allows us to accelerate near-mine resource development drilling to grow the current JORC Mineral Resource and define potential mine stages beyond the starter pit.

While very profitable, the Stage 1 starter pit is currently scheduled to be completed within 12 months of commencement, so advancing resource development and extensional drilling as soon as possible is critical in order to optimise future mining operations.

Discussions regarding the proposed US$11 million secured upfront pre-payment remain on foot and are unaffected and unrelated by this Placement.”

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Placement Details:

The Company will issue a total of 9,296,555 new fully paid ordinary shares ( ‘New Shares’ ) at an issue price of $0.23 each.

All New Shares will rank equally with the existing fully paid ordinary shares.

The issue price represents a 14.8% discount to the last closing price on 2 September 2025 of $0.270, a 10.1% discount to the 5-day VWAP of $0.256 and a 11.9% discount to the 15-day VWAP of $0.261.

The New Shares will be issued under the Company’s available placement capacities under ASX Listing Rule 7.1 (3,512,333 shares) and Listing Rule 7.1A (5,784,222 shares).

Sanlam Private Wealth Pty Ltd (“ Sanlam ”) acted as Lead Manager to the Placement and will receive a 6% fee on the funds raised.

Sanlam will also receive 1 broker option for every 5 shares issued under the Placement, exercisable at 50 cents per option with a 2 year expiry date. The broker options are subject to the receipt of shareholder approval, which will be sought at the Company’s AGM.

Cautionary Statements:

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.

The secured up-front pre-payment referred to in this announcement is indicative in nature, it is nonbinding and contains the general terms of a proposed transaction. Any future commitment will be subject to and is contingent upon all internal approvals of Raptor as well as the completion of due diligence (including but not limited to legal and technical due diligence) and legally binding documentation. There is no certainty that the secured up-front will be approved by the Company or by Raptor’s investment committee. There is no certainty that the transaction will be concluded based on what is presented in the term sheet.

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About the Crawford Gold Project:

Revised Pre-Feasibility Study, April 2025

The Company recently undertook a revised Pre-Feasibility Study ( PFS ), incorporating higher gold prices and updating the mining and heap leach capital cost estimates. The physical pit design of Stage 1 and the subsequent Ore Reserve estimate remained unchanged for the purposes of the update.

The key outputs of the revised PFS are set out in Table 1 below and include a range of comparisons based on various gold prices.

Table 1: Gold Price Comparison Table, Stage 1 Update; PFS Gold Price of A$4,600/oz Highlighted

Gold Price ($A/oz)	4,000	4,200	4,400	4,600	4,800	5,000	5,200	5,400

NPV8 ($A)	$39.1M	$43.3M	$47.5M	$51.7M	$55.9M	$60.1M	$64.3M	$68.5M

IRR (%)	403%	459%	518%	580%	644%	711%	781%	854%

Payback (Mths)	9.5	9.3	9.1	8.9	8.7	8.5	8.3	8.2

Undiscounted Cashflow	$43.4M	$47.9M	$52.4M	$56.9M	$61.4M	$65.8M	$70.3M	$74.8M
($A)

Pre-Capex Undiscounted	$53.2M	$57.7M	$62.2M	$66.7M	$71.2M	$75.7M	$80.2M	$84.7M
Cashflow ($A)

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. Some errors may occur due to rounding.

The key updates to the revised PFS were:

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Optimisation parameters and pit design remain unchanged Gold price of A$4,600 per ounce applied to financials Total capital costs of A$9.8M, consisting of:

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A$1.2M site clearing and establishment,
A$5.8M for processing infrastructure,
A$2.0M for pre-strip mining, and
A$0.8M site closure

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Life of mine (LOM) mining costs of A$11.08/bcm mined General and administration costs of A$4.84/t ore Processing costs of A$11.13/t ore and recovery of 80% Additional Net Smelter Royalty of 1.75%

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The revised PFS generated the following key outputs: