CAVALIER RESOURCES LIMITED - Capital/Financing Update 2025

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ASX ANNOUNCEMENT
29 APRIL 2025
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Crawford Gold Project - Raptor Funding Update

Corporate Highlights

A recent site visit to the Crawford Gold Project was carried out by streaming fund Raptor Capital International Limited ( Raptor ) with whom the Company signed a non-binding term sheet for US$11 million.
The site visit was positive and productive; Raptor has subsequently requested an extension of the non-binding term sheet until June 1, 2025 as both parties advance towards drafting binding agreements. The Company has agreed to the extension.

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Picture 1: Exploration Geologist Paddy Reidy (second left) outlining prior onsite drilling information to representatives from Raptor. Cavalier Non-Executive Director and Mining Engineer Anthony Keers is shown far right.

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Daniel Tuffin, Executive Technical Director & CEO, commented:

“The recent site visit was a useful hands-on exercise, resulting in both parties remaining supportive of the transaction and electing to extend the current non-binding agreement out to June 1, 2025 whilst working towards drafting binding agreements.”

Non-Binding Funding Term Package:

The Company announced in February that it had signed a non-binding term sheet for a US$11 million (~A$17.1 million) stream finance facility with Raptor.

The funds would fully finance the development of the Crawford Gold Stage 1 open pit, and fund nearmine extensional infill drilling to upgrade further portions of the current Resource to Ore Reserves and potential future open pit stages.

The facility amount is in excess of the A$12.5 million peak capital drawdown requirement outlined in the revised PFS, providing a significant working capital contingency balance for the Company.

The stream finance facility is non-dilutive to shareholders and does not require any additional equity capital be raised to advance the Crawford Project into production at Stage 1, ensuring that any potential returns and earnings on a per share basis are maximised.

The non-binding term sheet contemplates delivery of up to 11,000 ounces of gold from the Crawford Gold Project, to be delivered on the basis of one ounce of gold for every 3.25 ounces produced on a delivery schedule to be agreed.

Any ounces remaining to be delivered at the conclusion of Stage 1 can either be delivered early at Cavalier’s discretion from its allocation or carried forward to be delivered from potential future open pit stages.

Should the parties proceed to a binding agreement, Raptor will receive a transaction fee of 1.5% of the facility amount to be retained on drawdown.

For further information, please refer to the ASX announcement on 20 February 2025.

About Raptor:

Raptor provides finance to low-cost development stage gold mining projects enabling them to initiate or increase production through streaming financing.

Their team has decades of experience in the mining industry, financing, building and operating precious and base metal mines, and are looking to build out their geographically diversified portfolio of high-quality gold and precious metals projects.

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 stream finance term sheet 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 stream finance 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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Crawford Gold Project:

Revised Pre-Feasibility Study

During the quarter the Company undertook a revised Pre-Feasibility Study ( PFS ) to the original PFS that was released in March 2024.

The revised PFS incorporated higher gold prices and updated the mining and heap leach capital cost estimates, however the physical pit design and the Ore Reserve estimate remained unchanged for the purposes of the revised PFS.

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.

The key updates to the revised PFS were: