FOCUS MINERALS LTD — Capital/Financing Update 2022

May 24, 2022

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Market Announcement

25 May 2022

Coolgardie Operations Update

Highlights:

• Draft Life of Mine plan under development to include CNX open pit and optimised designs for Greenfields and Brilliant South open pits

• Mining and milling costs have been updated based on current benchmarking to similar sized Western Australian mining projects

• Plant refurbishment contractor selection process in progress, target to award refurbishment contract in July/August

• Three Mile Hill plant to be refurbished to historical name plate capacity of 1.2Mtpa

• Mining and stockpiling of ore expected to commence in early CY2023

West Australian gold company Focus Minerals Limited ( ASX: FML ) ( Focus or the Company ) is pleased to provide an update to its plan to resume mining operations ( Resumption Plan ) at the Coolgardie Gold Project ( Coolgardie ). The Resumption Plan objectives were to refine elements of the 2020 Prefeasibility Study ( Coolgardie 2020 PFS ) (see ASX announcement dated 22 September 2020). Focus has undertaken review and assessment of the following areas:

Draft Life of Mine (LOM) Plan - The Coolgardie 2020 PFS was based on the mining of Greenfields and Brilliant South open pits and Bonnie Vale underground. At that time the Coolgardie Mineral Resource was 33.8Mt @2.3g/t for 2.42Moz Au. Since then, the Coolgardie total Mineral Resource has been revised to 42.2Mt @ 1.9g/t for 2.6Moz Au (see ASX announcement dated 24 May 2022). The additional Mineral Resource allows the Company to refine its production plan to now incorporate the CNX deposit, located only 1.25km north north-west of the Three Mile Hill ROM pad.

At Greenfields the Mineral Resource has been reconsidered targeting improvement in strip ratio for a faster mining single stage pit optimisation and design. An updated Mining Proposal for the Greenfields open pit has been submitted to regulators for approval.

Focus has also refined the optimisation of Brilliant South open pit using the updated 23 Feb 2022 Mineral Resource. The Feb 2022 Mineral Resource has grown significantly and includes new lodes to the NE which are now being considered in the new design. The outcome of the optimisation is expected to deliver a significant reduction in mined waste.

The preliminary optimisation and design of these three open pits is expected to improve the economic mining outcome despite inclusion of up to date contract mining market rates.

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At present, the Bonnie Vale underground project is undergoing a more detailed engineering assessment than the 2020 PFS design and costing. Geotechnical drilling will commence in June to be included in an updated design.

The Company is also well advanced in submitting a mining proposal for the Big Blow deposit. It shows potential for a small mining project for toll milling at a regional processing plant to bring in early cash flow. The Mineral Resource may have further potential as a future underground operation. The Company is also assessing the viability of toll treating low-grade stockpiles and has completed grade control drilling at Dreadnought and Big Blow low grade stockpiles during April and May 2022.

Three Mile Hill Plant – The scope of works for the mill refurbishment has been prepared for final engineering and cost estimation. The Company is now engaging with contractors leading to early contractor involvement (ECI) prior to the development of a design and construct (EPC) refurbishment contract. It is anticipated that the Company will finalise negotiations and award the refurbishment contract during July/August 2022. The plant upgrade may take up to 12 months to complete, subject to the availability of materials and a suitably qualified construction workforce.

Project Delivery Timeline - The Resumption Plan targets recommencing mining and stockpiling at Coolgardie which could commence in early CY2023 but, acknowledges that this timeframe may change depending on the mill refurbishment schedule and other relevant factors. The prevailing demand/supply conditions in the WA mining industry, present a significant risk to the schedule for returning Focus to production.

Commenting on the Resumption Plan, Focus Minerals’ Executive Chairman, Mr Wanghong Yang, said:

“Focus is making significant progress to prepare the Coolgardie Gold Project for a resumption of mining activities. We remain diligent and disciplined in refining elements of the production scenario at Coolgardie to deliver a sustainably profitable gold mining operation in a timeframe achievable in the current mining industry environment. I look forward to further updating shareholders on our progress with executing the Company's plans over the coming months.”

The release of this ASX announcement was authorised by Mr Wanghong Yang, Executive Chairman of Focus Minerals Ltd.

For further information please contact:

Nicholas Ong Company Secretary Focus Minerals Ltd. Phone: +61 8 9215 7888 Email: info@focusminerals.com.au

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About Focus Minerals Limited (ASX: FML)

Focus Minerals is a Perth-based, ASX-listed gold exploration company focused on delivering shareholder value from its 100%-owned Coolgardie Gold Project and Laverton Gold Project, in Western Australia’s Goldfields.

Focus is committed to delivering shareholder value from the Coolgardie Gold Project, a 138km[2] tenement holding that includes the 1.4Mtpa processing plant at Three Mile Hill (on care and maintenance), by continuing exploration and value-enhancing activities. An updated PFS in September 2020 highlighted the potential for a low capital cost, fast-tracked return to mining at Coolgardie and delivered an NPV7.5% of $183 million. The Company’s efforts are now focused on increasing production-ready Mineral Resources at Coolgardie and delivering the approvals and permits required for a resumption of gold-mining operations.

The Laverton Gold Project covers 362km[2] area of highly prospective ground that includes the historic Lancefield and Chatterbox Trend mines. Focus’ priority target is to confirm sufficient gold mineralisation at the Beasley Shear Zone, Lancefield-Wedge Thrust, Karridale and Burtville to support a Stage 1 production restart at Laverton. In parallel, Focus is working to advance key Laverton resource growth targets including Sickle, Ida-H and Burtville South. Focus has delivered first results from a progressive Pre-Feasibility Study (Pre-Tax NPV5.0% A $132M) and is advancing study work utilising Laverton’s expanded Mineral Resource position.

Competent Person Statement

The information in this announcement that relates to Exploration Results is based on information compiled by Mr Alex Aaltonen, who is a Member of the Australasian Institute of Mining and Metallurgy (AusIMM). Mr Aaltonen is an employee of Focus Minerals Limited. Mr Aaltonen has sufficient experience that 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 Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves.

Mr Aaltonen consents to the inclusion in the report of the matters based on the information in the form and context in which it appears.

ASX Listing Rule 5.19.2

The draft LOM plan will continue to evolve and is part of the progressive refinement of the Coolgardie 2020 PFS announced in September 2020. Focus confirms that all material assumptions underpinning the production target or the forecast financial information derived from the Coolgardie 2020 PFS announced in September 2020 continue to apply and have not materially changed.

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