FALCON METALS LTD — Capital/Financing Update 2026

May 4, 2026

Falcon Metals

ASX / Media Announcement

5 May 2026

THIRD DIAMOND DRILL RIG COMMENCES AT BLUE MOON TARGETING PARALLEL REEF

• Third diamond rig has commenced drilling at Blue Moon targeting the northern extension of the 3.8Moz New Chum line of reef¹,²
• The hole is designed to provide stratigraphic information across the Garden Gully and New Chum lines of reef, whilst targeting the interpreted Dahlia Zone position in the eastern limb of the New Chum fold hinge
• It will also provide a platform for subsequent wedge holes on New Chum and to target the high-grade Lotus Zone on Garden Gully, with previously announced highlights including:
• BMDD001W1³ 1.2m @ 543g/t Au from 544.2m
• BMDD003⁴ 2.75m @ 41.9g/t Au from 605.3m; incl.
• 0.5m @ 222g/t Au from 607.55m
• BMDD004W1⁵ 0.8m @ 86.2g/t Au from 635.0m; incl.
• 0.4m @ 167g/t Au
• Step out drilling ongoing with two diamond rigs on the northern continuation of the 5.2Moz Garden Gully line of reef
• Falcon remains well-funded, with $19.3 million cash as at 31 March 2026, supporting an ongoing high-impact Bendigo gold exploration program

Falcon Metals Limited (ASX: FAL) (“Falcon” or “the Company”) advises that a third rig has commenced diamond drilling at its 100%-owned Blue Moon Gold Project (see Figure 1) on licence EL007839, located immediately north of the 22Moz Bendigo Goldfield in Victoria, Australia (see Figure 2).

Drilling at Blue Moon commenced in June 2025, targeting the down-plunge northern extension of the Garden Gully anticline, the most prolific structure in the Bendigo Goldfield. Targets were generated from a comprehensive 3D reconstruction of historical underground workings and mine reports, as well as detailed field mapping. This was the first ever drilling into the Blue Moon target.

Figure 1 Third diamond drill rig operating at the Blue Moon Gold Project

Falcon Metals Limited

ASX: FAL

Level 6, 350 Collins St, Melbourne VIC 3000

PO Box 106, Flinders Lane VIC 8009

T: +61 3 8648 6684

E: info@falconmetals.com.au

www.falconmetals.com.au

ABN 87 651 893 097

---

Figure 2 Location map of the Blue Moon Gold Project

To date, Falcon has completed eight parent diamond drill holes and multiple wedge holes at Blue Moon, with two diamond drill rigs currently operating. Results announced to date from BMDD001 and its associated wedge holes, together with BMDD002, BMDD003, and prioritised assays from BMDD004, have confirmed the extension of Bendigo-style, high-grade gold mineralisation onto Falcon's ground. Assay results on remaining completed holes and wedges are delayed due to backlogs at Victorian laboratories and will be announced once received.

The third rig has commenced a stratigraphic hole from east to west, primarily designed to intersect the New Chum line of reef and its associated fold hinge. On its way to the target zone, the hole is expected to cross the Garden Gully hinge close to the interpreted position of the high-grade Lotus Zone. It will then continue through to target the interpreted Dahlia position on the eastern limb of

Falcon Metals Limited

ASX: FAL

---

the New Chum hinge zone and is then planned to cross the hinge at approximately 1,100m downhole depth (see Figure 3).

This parent hole will provide a platform for future wedge holes to target the intersection of key stratigraphic units and potentially mineralised structures on the New Chum line of reef and the Lotus Zone on the Garden Gully line of reef from the east-west orientation.

The New Chum line of reef is a historically productive structure within the Bendigo Goldfield, with reported production of approximately 3.8Moz @ 15g/t Au. New Chum is interpreted as a parallel reef system west of Garden Gully, with similar structural controls and high-grade potential. This stratigraphic hole will allow Falcon to get a significantly improved understanding of the fold geometry of both Garden Gully and New Chum, whilst also assessing if any subordinate fold structures may be present that have the potential to become additional targets for exploration.

Figure 3 Geological cross-section illustrating the planned east-west stratigraphic diamond drill hole BMDD009, currently being drilled by the third rig at the Blue Moon Gold Project

Falcon Metals Limited

ASX: FAL

---

This announcement has been approved for release by the Board of Falcon Metals. For more information, please contact:

Tim Markwell
Managing Director
tmarkwell@falconmetals.com.au

Media and Investor Queries
Ben Creagh
benc@nwrcommunications.com.au

References used in this document

¹ November 2022 Catalyst Metals Ltd, AGM Presentation slide 13
² November 2003 Fraser et al, The Role of Historical Research in the Development of the ‘New Bendigo’ Gold Project, Central Victoria
³ First wedge hole at Blue Moon hits 1.2m at 543g/t gold dated 11 July 2025
⁴ Blue Moon Extended 200m Metres Along Strike Hitting 2.75 Metres @ 41.9g/t Gold dated 18 December 2025
⁵ Blue Moon extended 80m along strike hitting 0.4m @ 167g/t gold dated 16 February 2026

About the Blue Moon Project

Blue Moon is a project on the 100% owned licence EL007839. Falcon submitted an application for this permit when it came out of moratorium in December 2021. It is the exploration ground that surrounds the Bendigo mining permit (that remains in moratorium) which had historical production of 22Moz of gold. Blue Moon is located 25km west from the Fosterville Gold Mine with the Swan Zone (2.3Moz @ 49.6g/t Au⁴), owned by Agnico Eagle (NYSE: AEM).

The 174km² exploration licence was granted to Falcon for its initial 5-year term in mid-2023 (see ASX announcement “Exploration Update and Key Bendigo Tenement Awarded” released on 1 June 2023), and Falcon completed an initial program of low-impact aircore drilling on some regional reconnaissance targets in the 2023/2024 drill season.

Since its initial granting, Falcon has undertaken an extensive review of all the historical information on the 22 Moz Bendigo Goldfield, with the Blue Moon target generated. It is the interpreted down plunge northern extension of the prolific Garden Gully anticline trend which produced 5.2Moz @ 15g/t Au over an 8km strike length. No modern exploration had previously been carried out at Blue Moon prior to Falcon’s activities.

COMPETENT PERSON STATEMENT:

The information contained within this announcement relates to exploration results based on and fairly represents information compiled and reviewed by Mr Doug Winzar who is a Member of the Australian Institute of Geoscientists. Mr Winzar is a full-time employee of Falcon Metals Limited 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 in the 2012 edition of the “Australian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves”. Mr Winzar consents to the inclusion in the documents of the matters based on this information in the form and context in which it appears.

FORWARD LOOKING STATEMENT:

This announcement may contain certain forward-looking statements, guidance, forecasts, estimates, prospects, projections or statements in relation to future matters that may involve risks or uncertainties and may involve significant items of subjective judgement and assumptions of future events that may or may not eventuate (Forward Statements). Forward Statements can generally be identified by the use of forward looking words such as “anticipate”, “estimates”, “will”, “should”, “could”, “may”, “expects”, “plans”, “forecast”, “target” or similar expressions and may include, without limitation, statements regarding plans, strategies and objectives of management, anticipated production and expected costs. Indications of, and guidance on future earnings, cash flows, costs, financial position and performance are also forward-looking statements. Forward looking statements, opinions and estimates included in this announcement are based on assumptions and contingencies which are subject to change, without notice, as are statements about market and industry trends, which are based on interpretation of current market conditions. Forward looking statements are provided as a general guide only and should not be relied on as a guarantee of future performance.

Falcon Metals Limited
ASX: FAL