POLYMETALS RESOURCES LTD — Capital/Financing Update 2024

May 28, 2024

ASX: POL

ASX Announcement

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29 May 2024

ENDEAVOR SILVER ZINC MINE PLAN OPTIMISATION Geotechnical drilling of near surface high-grade Silver Resources.

Polymetals Resources Ltd (ASX: POL ) ( Polymetals or the Company ) continues to progress its optimisation of the Endeavor mine plan with a work program of geotechnical drilling of the near surface high-grade Upper North Lode (UNL) resources. Drilling will support optimisation of the mining method aiming to convert further Resources to Reserves.

HIGHLIGHTS

• Geotechnical drilling to commence in June 2024.

• Potential to increase high grade Ore Reserves.

• Endeavor Mine Plan Optimisation Study to be released Q3 CY24.

MINE PLAN OPTIMISATION

The Polymetals Endeavor Mine Restart Study (MRS)[1] provided a Stage 1 mine life of 10 years and first concentrate production within 9 months from commencement of mine rehabilitation and mill refurbishment. Increasing metal prices have significantly improved the project economics as summarised by Table 1 .

Parameter	October 2023 MRS	Spot Price2
Silver Price (US$/oz)	$23.00	$32.34
Zinc Price (US$/tonne)	$2,750	$3,122
Lead Price (US$/tonne)	$2,200	$2,336
Exchange Rate AUD : USD	0.67	0.67
Before Tax NPV8%	$201M	$371M
IRR	91%	183%
Before tax Free Cashflow	$323M	$570M

Table 1: Endeavor MRS - Financial Outcomes Comparison

1 Refer ASX announcement “Endeavor Silver Lead Zinc Mine Restart Study Completed”, dated 16th October 2023.

2 Source - Market Index 29/05/2024.

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

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ASX Announcement

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UPPER NORTH LODE – DUE DILIGENCE DRILLING

Polymetals completed a 21-hole due diligence surface drilling programme of the Upper North Lode and adjacent remnant South Lode prior to securing the Endeavor Mine[3] . Mineralisation was intersected in all due diligence drillholes with intercepts and assays summarised in Appendix 1[4] .

Examples of mineralised UNL intercepts previously announced are as follows:

Met_1LS_1 (81m of mineralisation – refer Figure 1 )

• 81m @ 473g/t Ag, 7.4% Zn, 1.15g/t Au, 0.11% Cu and 5.5% Pb from 77m to end of hole.

PNL009 (46m of total mineralisation)

• 46m @ 396 g/t Ag, 6.9% Zn, 1.04 g/t Au, 0.16% Cu and 5.9% Pb from 78m to 124m.

PNL010 (42m of mineralisation)

• 22m @ 816 g/t Ag, 4.6% Zn, 0.69 g/t Au, 1.27% Cu and 2.6% Pb from 101m to 123m, and;

• 20m @ 435g/t Ag, 5.5% Zn , 0.89g/t Au, 0.08% Cu and 2.6% Pb from 130m to 150m.

PNL012 (53m of mineralisation)

• 41m @ 423 g/t Ag, 5.0% Zn, 1.03 g/t Au, 0.17% Cu and 4.9% Pb from 82m to 123m, and;

• 5m @ 481g/t Ag, 7.9% Zn , 0.74g/t Au, 0.14% Cu and 5.3% Pb from 127m to 132m, and;

• 7m @ 346g/t Ag, 8.3% Zn , 0.82g/t Au, 0.10% Cu and 3.9% Pb from 137m to 144m.

UPPER NORTH LODE - GEOTECHNICAL DRILLING

Planned core drilling of the UNL [5] has been designed to intersect UNL mineralisation and surrounding strata to enable geotechnical logging to be completed ( Figure 1 ). The geotechnical investigations are aimed at determining if the UNL Ore Reserve can be enhanced via a change to mining techniques. Should these investigations prove positive, the Company anticipates that project economics will be significantly enhanced via increased available UNL ore, reduced mining costs and faster mining rates.

3 Refer ASX announcement, “Endeavor Mine Acquisition Final”, dated 28th March 2023.

4 Refer ASX announcement, “Outstanding high grade assays Zn-Ag-Au-Cu-Pb at Endeavor”, dated 9th May 2023.

5 The UNL Resource is contained within the Upper Main Lodes JORC (2012) Mineral Resource. Refer ASX announcement “Endeavor Near

Surface Resource 94% Measured & Indicated”, dated 23 May 2023

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Figure 1: Upper North Lode - Planned geotechnical core holes.

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MAIN OREBODY - RESERVE UPGRADE

Ongoing Mine Plan optimisation of the Main Orebody has identified additional stopes (designed after release of the October 2023 MRS) which may materially increase Ore Reserves.

The outcomes of this continuing Main Orebody work and the UNL optimisation (pending the geotechnical drilling) will be released upon completion; however, the expected uplift in ore tonnage will extend the Endeavor Mine life.

Polymetals Executive Chairman Dave Sproule said:

“Polymetals has continued its mine plan optimisation work since the release of its initial MRS in October last year. With the recent strategic investment by Metals Acquisition Limited, the Company is now funded to complete its final optimisation work program, being geotechnical drilling of the high-grade silver zinc Upper North Lode for mine planning optimisation purposes, as well as providing improved resources to reserves conversion.

We are confident that the planned drilling might generate an uplift in the UNL Ore Reserves which are planned to be mined over the first 2-years of production. The high grade and high margin silver and zinc UNL is shallow and has existing mine development allowing immediate access for accelerated mining.

Results from the drilling will be included along with the additional tonnes identified from within the main orebody in our optimised study”.

This announcement was authorised for release by Polymetals Resources board.

For further information, please contact:

Linden Sproule

Corporate Development linden.sproule@polymetals.com

ABOUT POLYMETALS

Polymetals Resources Ltd ( ASX: POL ) is a mining and metals company developing & producing commodities like silver and zinc. Polymetals owns and operates the high-grade underground Endeavor silver zinc mine (+copper & gold). Endeavor is located within Australia’s premier polymetallic mineral province the Cobar Basin, New South Wales Australia. Polymetals is seeking to become a long term, consistent and profitable base and precious metal producer holding a strong exploration portfolio for organic growth, and continually measure strategic acquisition opportunities. For more information visit www.polymetals.com

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FORWARD LOOKING STATEMENTS

Certain statements in this document are or maybe “forward-looking statements” and represent Polymetals’ intentions, projections, expectations or beliefs concerning among other things, future exploration activities. The projections, estimates and beliefs contained in such forward-looking statements necessarily involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of Polymetals, and which may cause Polymetals’ actual performance in future periods to differ materially from any express or implied estimates or projections. Nothing in this document is a promise or representation as to the future. Statements or assumptions in this document as to future matters may prove to be incorrect and differences may be material. Polymetals does not make any representation or warranty as to the accuracy of such statements or assumptions.

COMPETENT PERSON STATEMENT

The information supplied in this release regarding Mineral Resources of the Endeavor Project is based on information compiled by Mr Troy Lowien, a Competent Person who is a Member of the Australian Institute of Mining and Metallurgy. Mr Lowien is an employee of Polymetals Resources Ltd and has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken 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 Lowien consents to the inclusion of matters based on information in the form and context in which it appears.

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APPENDIX 1 – Endeavor Upper Main Lodes Drillhole details

Table 1: Endeavor Due Diligence Drilling 2023 - Significant mineralised intercept

Hole ID	From	To	End of Hole	Intercept (m)	Ag g/t	Zn%	Au g/t	Pb%	Cu%	Comments
MET_1LS_1	77	158	158	81	473	7.4	1.15	5.5	0.11	Diamond hole drilled during 2015. Core split Feb 23 for assay.
including	77	85		8	931	6.2	2.21	12.2	0.18
PNL001	84	136	144	52	343	5.7	0.65	4.6	0.12
including	84	86		2	2020	1.1	0.64	6.3	0.13
PNL002	95	135	135	40	226	5.1	0.88	2.9	0.10	Could not continue beyond 135m. Ending in mineralisation.
and	142	145	156	3	576	5.4	0.51	2.8	0.08
and	147	156	156	9	757	7.6	0.82	3.1	0.07
PNL004	120	156	156	36	341	7.3	0.43	4.6	0.18	Ending in mineralisation.
PNL005	138	147		9	228	5.2	0.39	3.8	0.09
and	151	156	162	5	281	6.8	0.60	4.9	0.08
PNL006	119	139		20	237	7.2	0.66	5.0	0.14
and	146	148	150	2	255	6.8	0.56	5.0	0.13
PNL007	109	140		31	226	6.5	0.66	3.8	0.11	Ending in mineralisation.
and	144	150	150	6	183	6.6	0.52	4.2	0.11
PNL008	109	135		26	232	5.6	0.88	6.1	0.12	Ending in mineralisation.
and	139	155		16	158	6.1	0.95	5.2	0.14
and	157	159		2	295	3.6	1.37	1.8	0.08
and	162	164	164	2	296	3.8	0.92	2.2	0.11
PNL009	78	124	138	46	396	6.9	1.04	5.9	0.16
PNL010	101	123		22	816	4.6	0.69	2.6	1.27	includes 5m x 5.08% Cu from 101m
and	130	150	150	20	435	5.5	0.89	2.6	0.08	Ending in mineralisation.
PNL011	106	125		19	398	7.6	0.64	5.2	0.12
and	128	132	132	4	640	8.3	0.81	4.5	0.13
PNL012	82	123		41	423	5.0	1.03	4.9	0.17
and	127	132		5	481	7.9	0.74	5.3	0.14
and	137	144	144	7	346	8.3	0.82	3.9	0.10
PNL013	97	109	109	12	239	7.6	0.88	3.2	0.09	Ending in mineralisation.
PNL014	-	-	143	-	-	-	-	-	-	No significant assays
PNL015	121	151		30	393	6.7	0.48	5.8	0.15
and	155	174	180	19	478	5.9	0.47	3.9	0.08
PNL016	52	85.5		33.5	180	2.9	2.64	3.9	0.06	Abandoned at 85.5m. Rods bogged.
including	64	68	85.5	4	62	0.5	13.9	1.8	0.02	Ending in mineralisation.
PSL017	99	111	111	12	35	0.1	0.51	3.3	0.00	Ending in mineralisation.
PSL018	100	134	134	34	302	2.1	0.47	4.9	0.49	includes 5m x 2.50% Cu from 117m
PSL019	32	48	48	16	0.5	0.1	0.03	1.9	0.02	Abandoned at 48m. Rods bogged.
PSL020	107	178		71	272	3.6	0.43	4.2	0.13
including	144	178	180	34	492	7.3	0.76	4.8	0.14
PSL021	68	96	96	28	81	0.04	0.37	3.6	0.01	Ending in mineralisation.

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