POLYMETALS RESOURCES LTD — Capital/Financing Update 2024

Dec 3, 2024

ASX Announcement

ASX: POL

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4 December 2024

ENDEAVOR PROJECT UPDATE #1

Making the Endeavor Silver Zinc Mine Great Again.

HIGHLIGHTS

• Recruitment of senior management complete and appointment of supervisors advanced.

• Most critical path capital items ordered.

• Surface refurbishment works well underway.

• Underground readiness works on schedule.

• Mobile equipment selection complete and delivery scheduled to meet the mine plan.

Polymetals Resources Ltd (ASX: POL ) (Polymetals or the Company) is pleased to provide an update on redevelopment activities for the restart of the Endeavor Silver Zinc Mine. The mine had operated continuously for 38 years before being placed on care and maintenance in 2020. During this operational period, some 32 million tonnes of ore was mined and processed recovering saleable metal in concentrate valued at more than A$18 billion at today’s metal prices.

Polymetals acquired the Endeavor Mine in 2023 after resetting a prohibitive 100% silver streaming royalty to a 4% NSR over silver, lead and zinc. Restructuring this royalty provides new life to the mine with Polymetals now executing on its initial 10-year mine plan.

The Company concluded a US$20 million loan facility[1] with Ocean Partners and is fully funded to complete refurbishment activities with first cashflow scheduled during H1 2025.

Redevelopment works are progressing safely, efficiently and to plan.

Polymetals Endeavor Mine General Manager Matt Gill said:

“Activity on site is gaining pace as we continue with our aggressive recruitment campaign. We have secured our senior leadership team, are assembling a great group of supervisors and are building our operations and maintenance workforce in accordance with the proven Polymetals operational strategy. This momentum builds with the arrival of the first underground mobile equipment before Christmas, and in parallel, we have a very experienced team working on the surface infrastructure and processing plant to bring them back to life in the New Year.”

1 Refer ASX announcement, “Endeavor Project Finance Completed” dated 8th November 2024.

Polymetals Resources Ltd | ACN 644 736 247 | Unit 1, 101 Main Street Alstonville NSW 2477 Australia

ASX Announcement ASX: POL | polymetals.com

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Site Establishment Work

Polymetals commenced site establishment work in August 2024.

Key areas of work completed as at the date of this release include:

• The identification and implementation of the necessary safety, training, environmental and accounting systems,

• Recruitment of senior management,

• Improvement and allocation of housing and unit accommodation,

• Recruitment, onboarding and training of various staff roles (Figure 1), and

• Operational readiness with a focus on site offices, workshop and change room facilities.

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Figure 1: Our growing site team - 0600 morning meeting

Surface Work

Polymetals commenced surface refurbishment work in October 2024.

Key areas of work completed or underway as at the date of this release include:

• Structural Audit,

• Electrical Audit,

• Clean-up of surface infrastructure,

• Re-energizing electrical site systems,

• Replacement of winder ropes for shaft haulage,

• Refurbishment and re-certification of gantry cranes and hoists (Figure 2),

• Modification of the mine portal entrance to allow access for larger 65t trucks (Figure 3), and

• Inspection and refurbishment of ventilation fans and replacement of foundations (Figure 4).

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ASX Announcement

ASX: POL | polymetals.com

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Figure 2: Refurbishment and re-certification of headframe gantry crane.

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ASX Announcement

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Figure 3: Modification of the mine portal entrance to allow access for larger 65t trucks

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Figure 4: Refurbishment of vent fan No. 5 including sealing and replacement of foundations.

Underground Works

Polymetals commenced underground readiness works during November 2024.

Key areas of work underway or completed as at the date of this release include:

• Ground support rehabilitation works on an underground electrical substation,

• Underground mine decline and access LIDAR survey,

• General underground clean-up (Figure 5),

• Check scaling program commenced on all mine access areas,

• Clearing redundant services,

• Access and early stope identification (Figure 6),

• Preparing storage areas for mining logistics, and

• Planning well underway for mine development rehabilitation works.

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ASX Announcement ASX: POL | polymetals.com

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Figure 5: Underground Clean-up

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Figure 6: Re-entering and inspecting historic levels in the Upper Main Lode in preparation for mining activities

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ASX Announcement ASX: POL | polymetals.com

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This announcement was authorised for release by Polymetals Resources Ltd Board.

For further information, please contact:

Linden Sproule Simon Condon Corporate Development Media & Public Relations Polymetals Resources Ltd simon@republicpr.com.au linden.sproule@polymetals.com +61 417 021 312

REFERENCES

The information in this report references the following ASX announcement:

• ASX Announcement “ Endeavor Project Finance completed” dated 8 November 2024

• ASX Announcement “ Significantly improved Endeavor Silver Lead Zinc Mine Plan” dated 5 August 2024

• ASX Announcement “ September 2024 Quarterly Report” dated 22 October 2024

• ASX Announcement “Clarification – Endeavor Mine Near Surface Mineral Resource” dated 5 June 2023

The Company confirms that it is not aware of any information or data that materially affects the information included in the relevant market announcement and all material assumptions and technical parameters underpinning the estimates in the Original Announcement continue to apply and have not materially changed.

ABOUT POLYMETALS

Polymetals Resources Ltd (ASX: POL) is a mining company developing the high-grade Endeavor silver zinc lead mine within one of Australia’s premier polymetallic mineral provinces the Cobar Basin, New South Wales, Australia. Polymetals is on track to become a long term, profitable base and precious metal producer. Polymetals holds a strong exploration portfolio for organic growth with excellent potential for discovery of copper, gold, silver and zinc orebodies. For more information visit www.polymetals.com

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ASX Announcement ASX: POL | polymetals.com

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FORWARD LOOKING STATEMENT

This report prepared by Polymetals Resources Limited (or ‘the Company’) includes forward looking statements. Often, but not always, forward looking statements can generally be identified by the use of forward looking words such as ‘may’, ‘will’, ‘expect’, ‘intend’, ‘plan’, ‘estimate’, ‘anticipate’, ‘continue’, and ‘guidance’, or other similar words and may include, without limitation, statements regarding plans, strategies and objectives of management, exploration results, anticipated production or construction commencement dates and expected costs or production outputs. Forward looking statements inherently involve known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, performance and achievements to differ materially from any future results, performance or achievements. Such forwardlooking statements are not guarantees of future performance and involve known and unknown risks, uncertainties, assumptions and other important factors, many of which are beyond the control of the Company, the Directors and management of the Company. The Company cannot and does not give assurances that the results, performance or achievements expressed or implied in the forward-looking statements contained in this announcement will actually occur and investors are cautioned not to place undue reliance on these forward-looking statements. Although the Company attempts and has attempted to identify factors that would cause actual actions, events or results to differ materially from those disclosed in forward looking statements, there may be other factors that could cause actual results, performance, achievements or events not to be as anticipated, estimated or intended, and many events are beyond the reasonable control of the Company. Accordingly, readers are cautioned not to place undue reliance on forward looking statements.

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