INFINITY MINING LIMITED — Capital/Financing Update 2024

Oct 2, 2024

ASX ANNOUNCEMENT 3 October 2024

INFINITY TO ACQUIRE CANGAI COPPER PROJECT

Highlights

• Binding agreement signed to purchase Cangai Copper Project EL8625, EL8635 and EL8601.

• JORC[2012] compliant Mineral Resource Estimate of 4.4Mt @ 2.5% Cu Inferred Insitu and 0.2Mt @ 1.35% Cu Indicated from historic stockpiles for ~114kt contained copper metal, with additional credits for zinc, gold, and silver.[1]

• Significant potential for resource expansion, particularly in downdip extensions of known ore lenses. Previous drilling results identified copper grades as high as 10.25% Cu, with some intersections reaching up to 14.45% Cu, demonstrating strong development potential.

Infinity Mining Limited (ASX: IMI ) (“Infinity” or the “Company”) is pleased to announce that it has entered into a binding term sheet with Castillo Copper Ltd (ASX: CCZ) to acquire the Cangai Project which comprises the granted exploration tenements EL8625, EL8635, and EL8601 located in the north-western corner of New South Wales, approximately 220 km south of Brisbane and 500 km north of Sydney which host Cangai Copper Mine (“Cangai Copper Mine tenements”).

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Figure 1: Cangai Copper Project Location.

Infinity Mining Ltd / ABN: 73 609 482 180 / T: +61 7 3221 1796 / W: infinitymining.com.au Kings Row Office Park, Suite 1G, Building 1, 40-52 McDougall Street, MILTON QLD 4064, Australia

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The acquisition is in addition to a portfolio of gold and copper exploration projects in NSW, Victoria and Tasmania from various vendors as announced on 15 August 2024.[1]

OVERVIEW

The tenements EL8625, EL8635 and EL 8601 are adjacent exploration licenses making up the Cangai Copper Project, are shown in Figure 1.

Cangai was renowned for its high-grade ore, which was mined from the rich sulphide ore bodies in the area. During its operation, the mine processed ore with copper grades approximately 7-10% Cu.[2]

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Figure 2: Historic Timeline of the Cangai Copper mine.

Historic production of the Cangai from 1904 to 1917, produced approximately 5,000 tonnes of copper, along with notable quantities of gold and silver.

1 ASX: IMI Announcement – 15/08/2024: Infinity to Acquire Portfolio of Highly Prospective Gold and Copper Exploration Projects in NSW, Victoria & Tasmania.

2 GSNSW MinView portal

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Figure 3: Historic Long Section.

DRILLING & EXPANSION

Robust project that delivers material exploration upside & one of Australia’s highest grading copper deposits.

• DIAMOND DRILLING assays returning up to 14.45% Cu, 5.93% Zn & 40.1g/t Ag, including best intersection of 4.39m @ 5.06% Cu, 2.56% Zn and 20.1 g/t Ag from 49.9m.[3]

• RC DRILLING assay results up to 10.25% Cu, 6.04% Zn and 32.5g/t Ag, including best intersection of 11m @ 5.94% Cu from 40m including 1m @ 10.25% Cu, 3m @ 8.1% Cu and 1m @ 7.53% Cu from 41m.[4]

• Downhole Electromagnetic (DHEM) results highlight sizeable, massive sulphide conductors & new targets open at depth.

• Potential high-grade south-east trending mineralised extension inferred from surface assays, including “Canberra” 1,660ppm Cu & “Sydney” 500ppm Cu, Rock-chip results in same area up to 23.9% Cu.

3 ASX:CCZ ASX Announcement – 11/12/2018, link: https://wcsecure.weblink.com.au/pdf/CCZ/02058422.pdf

4 ASX:CCZ ASX Announcement – 03/09/018 , link: https://wcsecure.weblink.com.au/pdf/CCZ/02017898.pdf

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Figure 4: Long Section with drilling intercepts.

METALLURGY & OPPORTUNITIES

There is potential to generate near-term revenue from processing the existing spoil dumps at Cangai. Metallurgical tests have confirmed the presence of high-grade copper and associated metals in these dumps, which could be economically processed using modern techniques.

• Metallurgical test-work identified significant beneficiation of the ore, with copper concentrate recoveries exceeding 80% with a grade of up to 22% Cu[5] .

• In September 2019, assay results for Smelter Creek slag dump and Marks and McDonough’s dumps showed average head grades of 1.23% and 2.03% Cu.[5 ]

• In December 2019 work on an insitu massive sulphide ore sample reported a commercial grade concentrate of 22.2% Cu & 7.4% Zn with a 79.3% copper recovery[6] .

5 ASX:CCZ ASX Announcement – 12/09/2019, link: https://wcsecure.weblink.com.au/pdf/CCZ/02141953.pdf

6 ASX:CCZ ASX Announcement – 03/12/2019 , link: https://wcsecure.weblink.com.au/pdf/CCZ/02181109.pdf

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KEY TERMS OF ACQUISITIONS

IMI will acquire the Cangai Copper Mine tenements on the following terms:

1. The consideration payable to CCZ:

   • 40,000,000 fully paid ordinary shares in the Buyer ( Acquisition Shares ); and

   • 20,000,000 options to acquire ordinary shares in the Buyer, each exercisable at $0.07 and expiring 5 years from the date of grant ( Acquisition Options ).

2. CCZ will procure that the holders of the existing royalties over the Cangai Copper Project (ranging from a 1-3% NSRs) will grant IMI the first right of refusal to forfeit or assign 100% of the royalty interests in consideration for the issue of 30,000,000 IMI shares and 15,000,000 IMI options each exercisable at $0.07 and expiring 5 years from the date of grant.

3. Issue of 3,000,000 IMI shares to Marshall Custodians as their fee for introducing and facilitating the acquisition.

4. The acquisition is subject to and conditional on a number of conditions precedent including:

5. A Formal Sale Agreement being executed on terms consistent with the agreed Term Sheet;

6. IMI receiving firm commitments for a capital raising of not less than $1 million (before costs); and

7. IMI and CCZ where required, obtaining all shareholder, statutory and regulatory approvals and/or waivers required to implement the Sale, including IMI shareholder approval to issue the Acquisition Shares and Acquisition Options.

8. The completion period is 60 days after execution of the Term Sheet.

Note, at the time of writing, IMI and CCZ still must complete all necessary ancillary legal documentation, while the transaction is still subject to standard regulatory conditions apparent in NSW including ministerial consent to transfer the tenements.

Infinity confirms that CCZ is an unrelated party of the Company and that the acquisition has been negotiated on arms’ length terms. CCZ is not a person to which ASX Listing Rule 10.1 applies.

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NEXT STEPS

Infinity Mining plans to initiate an extensive exploration program at the Cangai site, focusing on unmined sections and the high-grade supergene copper zone. This will include soil sampling, drone topographic surveys, and a two-stage drilling program to target both the known orebody and new, deeper conductor anomalies identified through advanced geophysical techniques such as Downhole Electromagnetic (DHEM) and Fixed Loop Electromagnetic (FLEM) surveys.

The historic production and drilling results, coupled with new exploration data, suggest a scalable resource with potential for both direct ore shipment and future expansion. The proximity to surface of the high-grade ore zones, combined with favourable metallurgy demonstrating copper concentrate recoveries exceeding 80%, positions the Cangai Copper Project as a standout asset within Infinity’s portfolio.

The Cangai Copper Project consists of several exploration licenses and covers an area of extensive historical copper mining activity. Infinity Mining intends to update the current Mineral Resource Estimate and move the project towards production readiness in the near term.

Joe Phillips, Executive Chairman of Infinity Mining commented:

“The acquisition of the Cangai Copper Project represents a significant opportunity for Infinity Mining, aligning with our recent acquisitions announced on 15th August 2024. With rising copper demand and the project's outstanding historical grades, we are eager to unlock its full potential through targeted exploration and development, creating additional value for our shareholders.”

For further information please contact:

Joe Phillips

Executive Chairman +61 7 3221 1796 communications@infinitymining.com.au

Company Profile

Infinity Mining Limited holds 100% interest in over 700 km[2] of tenements in the East Pilbara as well as 22 km[2] in the Central Goldfields regions of Western Australia. These tenements are located in highly prospective Lithium, Nickel, Copper and Gold terranes. The Company’s business strategy is an increasing focus on lithium exploration on its highly prospective Pilbara tenements.

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Caution Regarding Forward Looking Statements

Certain of the statements made and information contained in this press release may constitute forward-looking information and forward-looking statements (collectively, “forward-looking statements”) within the meaning of applicable securities laws. All statements herein, other than statements of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future, including but not limited to statements regarding exploration results and Mineral Resource estimates or the eventual mining of any of the projects, are forward-looking statements. The forward-looking statements in this press release reflect the current expectations, assumptions or beliefs of the Company based upon information currently available to the Company. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and no assurance can be given that these expectations will prove to be correct as actual results or developments may differ materially from those projected in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include but are not limited to: unforeseen technology changes that results in a reduction in copper, nickel or gold demand or substitution by other metals or materials; the discovery of new large low cost deposits of copper, nickel or gold; the general level of global economic activity; failure to proceed with exploration programmes or determination of Mineral resources; inability to demonstrate economic viability of Mineral Resources; and failure to obtain mining approvals. Readers are cautioned not to place undue reliance on forward-looking statements due to the inherent uncertainty thereof. Such statements relate to future events and expectations and, as such, involve known and unknown risks and uncertainties. The forward-looking statements contained in this press release are made as of the date of this press release and except as may otherwise be required pursuant to applicable laws, the Company does not assume any obligation to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise.

Competent Persons Statement

The information contained in this report that relates to the Exploration Results, Mineral Resource Estimate and Exploration Target Estimate is based on information compiled by Mr Andrew Hawker, who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Hawker is a Geological Consultant for Infinity Mining and has sufficient experience relevant to the style of mineralisation and type of deposit under consideration, and to the activity which he has undertaken to qualify as Competent Person as defined in the 2012 Edition of the Australasian JORC Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Hawker consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

No New Information

To the extent that this announcement contains references to prior exploration results and Mineral Resource estimates, which have been cross referenced to previous market announcements (including supporting JORC reporting tables) made by the Company, unless explicitly stated, no new information is contained in accordance with Table 1 checklist in the JORC Code. The Company confirms that it is not aware of any new information or data that materially affects the information included in the relevant market announcements and, in the case of Mineral Resources that all assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed

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