LYCOPODIUM LIMITED — Capital/Financing Update 2023

Sep 4, 2023

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ASX:TRE

info@toubaniresources.com 1202 Hay Street West Perth, WA 6005

ASX ANNOUNCEMENT 5 SEPTEMBER 2023

LYCOPODIUM APPOINTED AS LEAD ENGINEER FOR KOBADA DFS UPDATE

Toubani Resources, Inc ( ASX: TRE ) (“ Toubani Resources ” or the “ Company ”) is pleased to announce that it has appointed Lycopodium Minerals ( Lycopodium ) as lead engineer for the Definitive Feasibility Study Update ( DFS Update or Study ) for its Kobada Gold Project (“ Kobada ”, “ Project ”) in southern Mali. The Kobada project hosts 2.4 Moz[1] in Mineral Resources which occurs over a 4.5km strike length and is predominantly free-digging, oxide and open pittable.

HIGHLIGHTS

• Lycopodium appointed as engineering lead for DFS Update to optimise processing flowsheet, plant design, capital and operating estimates for the Study

• Initial focus will be to assess the potential for a higher processing rate, and consequently increased annual gold production, underpinned by an initial oxide focused phase followed by the inclusion of fresh material later in the mine plan

• Lycopodium to jointly manage the Study along with Toubani's Owner's team seeking to optimise an initial oxide phase, as well as a blended oxide and fresh phase longer term

• Lycopodium is a leader in its field and has a significant track record in Mali and West Africa, having completed a number of studies and construction projects in recent years

• DFS Update to immediately commence targeting a 1Q 2024 completion

Toubani Chief Executive Officer, Phil Russo, commented: “We are very pleased to be partnering with Lycopodium on the DFS Update. Lycopodium is a Tier 1 engineering company with an enviable track record in both studies and project execution in Mali and West Africa, and its operational insight and experience will be key as we position Kobada as an oxide-dominant gold project of significance.

The DFS Update will utilise the recent Mineral Resource update as the foundation for the Kobada pit design and mine planning. With some 1.5Moz in shallow, free-digging oxide Mineral Resources, we are able to plan an oxide focussed project phase over an extended life leveraging the technical strengths that make Kobada compelling.

We look forward to advancing the DFS Update at a key point in time for the Company and the sector overall given the dearth of low technical risk projects of scale currently coming through the development pipeline.”

toubaniresources.com

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1 Combined Indicated and Inferred Mineral Resource of 87Mt at 0.86g/t. Refer to ASX Announcement dated 18 August 2023

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DFS Update

The DFS Update will focus on a range of development scenarios to analyse the impact of higher processing rates on operating costs, capital costs and the financial performance of the project. The 2021 DFS contemplated a processing plant throughput rate of 3.0Mtpa with mining rates averaging 24Mtpa.

The Company believes that Kobada’s overall technical and geological risk profile could reduce significantly under a large tonnage, majority oxide scenario with the nature of the deposit amenable to a bulk mining approach, and the potential economics of a larger processing plant and increased annual production benefitting the project overall. As a result, Lycopodium's scope of work and the DFS Update will focus on maximising and de-risking the initial oxide processing phase.

As part of the DFS Update, Lycopodium will assess a range of higher oxide processing plant throughputs, with mining schedules to be updated to match these processing rates while minimising stockpile balances. Initial work will assess the possible range of throughputs that can be achieved without significant changes to the mining rates contemplated in the 2021 DFS, while using achievable mining productivities and consistent material movements for a project of this scale. The mining work package to be completed as part of the DFS Update will use the recently updated Mineral Resource for the Kobada Gold Project (refer Table 1 and ASX Announcement 18 August 2023).

Lycopodium's primary responsibility will be to optimise the processing plant throughput to maximise the NPV of the resultant project and work with Toubani to ensure Kobada's operating cost profile is positioned competitively when compared to peer projects to Kobada. Once the oxide throughput rate is determined, Lycopodium will be responsible for the process plant DFS design as well as related infrastructure that will also optimally provide for an oxide/fresh rock blend later in the mine life. The engineering work during this stage will include sourcing of formal quotations from the market in order to define the capital and operating cost profile for the Kobada Project to a Feasibility Study level of accuracy (+/15%).

The 2021 DFS contemplated an onsite processing plant treating a blend of oxide, transitional and fresh gold-bearing ores from the open pit – all ore types are free milling and capable of processing using conventional Carbon-in-Leach methods. The DFS planned the processing of oxide material only in the initial project phase by removing the secondary and tertiary crushing stages as well as the secondary ball mill from the oxide DFS flowsheet. Given the DFS level of metallurgical testwork already completed, the Company does not anticipate making significant changes to the flowsheet as part of the DFS Update. However, prior to commencing detailed plant design, Lycopodium will review the process design to determine if any opportunities exist to refine and optimise the flowsheet.

About Lycopodium

Lycopodium is a leader in its field, working with clients to provide integrated engineering, construction and asset management solutions. Lycopodium has the expertise to deliver complex, multidisciplinary projects, through to the provision of feasibility studies and advisory services. Operating across the Resources, Infrastructure and Industrial Processes sectors, Lycopodium offer a diverse team of industry experts to deliver bespoke and innovative solutions across all commodity types. With the capability to deliver projects around the world, Lycopodium has offices in Australia, South Africa, Canada and the Philippines.

Lycopodium is currently engaged in the Engineering, Procurement and Project Management of the Goulamina Lithium Project in Mali for the Leo Lithium - Ganfeng JV as well as delivering over 25 studies and projects in Mali including, B2Gold's Anaconda DFS and recently commencing the FEED services for B2Gold's Fekola DFS Update and 7.5Mtpa Expansion, and Endeavour Mining Corporation's Kalana Gold Project DFS. Lycopodium also possesses extensive experience delivering studies and projects within broader West Africa for over 30 years. Notable recent/current projects delivered in this region include: Séguéla Gold Project (Fortuna Silver Mines Inc), Bomboré Gold Project (Orezone Gold Corp), Ahafo North Project (Newmont Mining Corp.), Sabodala-Massawa BIOX® Expansion Project and Lafigué Project (Endeavour Mining Corp).

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About Toubani Resources Inc

Toubani Resources (ASX: TRE) is an exploration and development Company with a focus on advancing Africa’s next gold development project with its oxide-dominant Kobada Gold Project. The Company has a highly experienced Board and management team with a proven African track record in advancing projects through exploration, development and into production.

For more information regarding Toubani Resources visit our website at www.toubaniresources.com.

This announcement has been authorised for release by the Board of Toubani Resources.

For more information :

Phil Russo

Phil Russo Jane Morgan Chief Executive Officer and Executive Director Investor and Media Relations +61 (0) 478 138 627 +61 (0) 405 555 618 phil.russo@toubaniresources.com jm@janemorganmanagement.com.au

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Table 1: Mineral Resources for the Kobada Project

Material		Indicated			Inferred			Total
	Tonnes (Mt)	Grade (g/t)	Ounces (Moz)	Tonnes (Mt)	Grade (g/t)	Ounces (Moz)	Tonnes (Mt)	Grade (g/t)	Ounces (Moz)
Oxide1, 2	38	0.80	0.96	17	0.93	0.51	55	0.84	1.48
Fresh3	22	0.79	0.57	9	1.16	0.35	32	0.90	0.92
Total	60	0.79	1.53	27	1.01	0.86	87	0.86	2.39

Tonnages are dry metric tonnes. Minor discrepancies may occur due to rounding. 1 Oxide refers to Laterite, Saprolite and Transitional material as detailed in the ASX Announcement of 18 August 2023. 2 Oxide resources are quoted above 0.25g/t. 3 Fresh rock resources are quoted above 0.30g/t.

Information on the Mineral Resources for the Kobada Gold Project presented in this announcement is contained in an ASX announcement dated 18 August 2023.

The Company confirms that it is not aware of any new information or data that materially affects the information in the relevant market announcements, that all material assumptions and technical parameters underpinning the Mineral Resource estimate in the 18 August 2023 announcement continue to apply and have not materially changed, and that the form and context in which the Competent Persons findings are presented have not been materially modified from the original announcement.

Cautionary statements

This press release contains “forward-looking information” within the meaning of applicable Canadian securities legislation. Forwardlooking information includes, but is not limited to, statements regarding the expansion of mineral resources and reserves, and drilling and exploration plans of the Company. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: receipt of necessary approvals from Canadian and Australian regulatory authorities; general business, economic, competitive, political and social uncertainties; future prices of mineral prices; accidents, labour disputes and shortages; available infrastructure and supplies; the COVID-19 pandemic and other risks of the mining industry. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

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