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SANDFIRE RESOURCES LIMITED Capital/Financing Update 2024

Jul 4, 2024

65773_rns_2024-07-04_3403b59b-e21d-4c2d-8b82-0608ebd7bea3.pdf

Capital/Financing Update

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5 July 2024

MATSA MINERAL RESOURCE AND ORE RESERVE UPDATE

HIGHLIGHTS

  • Updated Measured, Indicated and Inferred Mineral Resource estimate for MATSA as at 31 March 2024:
    • Overall Measured, Indicated and Inferred Mineral Resource estimate for MATSA of 172.8Mt at 1.3% Cu, 2.8% Zn, 1.0% Pb and 38.6g/t Ag containing an estimated 2.2Mt of copper, 4.8Mt of zinc, 1.8Mt of lead and 215Moz of silver with an estimated Net Smelter Return (NSR) of US$114/t1 (using an NSR cut-off).
    • The Mineral Resource estimate comprises 110.7Mt of Polymetallic material at 1.1% Cu and 4.2% Zn and 62.0Mt of Cupriferous material at 1.6% Cu and 0.3% Zn.
    • Contained mineral resource tonnes have increased by 9% with a 7% increase in contained copper and a 3% increase in contained zinc since the previous Mineral Resource estimate stated as at 30 June 2023. This replaces mining depletion over the intervening period and incorporates new material to the Mineral Resource.
  • Updated Proved and Probable Ore Reserve estimate for MATSA as at 31 March 2024:
    • Overall Proved and Probable Ore Reserve estimate for MATSA of 38.3Mt at 1.5% Cu, 2.6% Zn, 0.8% Pb and 37.3g/t Ag containing an estimated 588kt of copper, 1,003kt of zinc, 315kt of lead and 45.9Moz of silver with an estimated NSR of US$113/t2 (using an NSR cut-off).
    • The Ore Reserve estimate comprises 26.3Mt of Polymetallic material at 1.5% Cu and 3.7% Zn and 12.0Mt of Cupriferous and Stockwork material at a combined grade of 1.7% Cu.
    • Contained ore tonnes have increased by 6% with a 4% increase in contained copper and an 8% increase in contained zinc since the previous Ore Reserve estimate stated as at 30 June 2023. This replaces mining depletion over the intervening period and incorporates new material to the Ore Reserve.
  • Initial areas of two new zones have been included in the Ore Reserve estimate, San Pedro (ASP) in Aguas Teñidas and Masa Olivo (M2O) in Magdalena. Both areas remain open, and when combined contain 2% of the total ore tonnes.

Management Comment

Sandfire's Chief Executive Officer and Managing Director, Brendan Harris, said: "It's pleasing to see the team at MATSA continue to build on our improved orebody knowledge. We have been successful in replacing mining depletion and are now seeing the beginnings of the resource and reserve growth potential we believe will be a key driver of value at MATSA.

It is also very encouraging to see that a portion of the San Pedro and Olivo zones, discovered only 18 months ago, have been included in this Reserve estimate and we expect their contribution to increase over time.

This update and the ongoing geological work being undertaken by the MATSA team underline our belief that there is enormous untapped potential in the Iberian Pyrite Belt. Near-mine exploration will continue to be a major focus as we accelerate our program to materially increase our reserves and increase mine life."

1 Refer to the attached MATSA Mineral Resource Statement and Explanatory Notes, Mineral Resource - Section 3 of the JORC 2012 Table 1 for details on the estimation of the Mineral Resource NSR US$/t value and applied NSR cut-off.

2 Refer to the attached MATSA Ore Reserve Statement and Explanatory Notes, Ore Reserve - Section 4 of the JORC 2012 Table 1 for details on the estimation of the Ore Reserve NSR US$/t value and applied NSR cut-off.

Sandfire Resources Limited (Sandfire or the Company) is pleased to report an updated Mineral Resource and Ore Reserve estimate for our MATSA asset, located in the Iberian Pyrite Belt of Spain.

The new Mineral Resource estimate totals 172.8Mt at 1.3% Cu, 2.8% Zn, 1.0% Pb and 38.6g/t Ag containing an estimated 2.2Mt of copper, 4.8Mt of zinc, 1.8Mt of lead and 215Moz of silver with an estimated Net Smelter Return (NSR) of US$114/t (using an NSR cut-off).

The updated Mineral Resource estimate, reported as at 31 March 2024, was completed employing standard industry practice and a robust NSR methodology utilising independent and highly regarded consultants, GeoEstima, with support from Sandfire.

Figure 1 – MATSA Mineral Resource tonnage variance 30 June 2023 to 31 March 2024.

The updated Ore Reserve estimate totals 38.3Mt at 1.5% Cu, 2.6% Zn, 0.8% Pb and 37.3g/t Ag containing an estimated 588kt of copper, 1,003kt of zinc, 315kt of lead and 45.9Moz of silver with an estimated NSR of US$113/t (using an NSR cut-off).

The updated Ore Reserve estimate, reported as at 31 March 2024, was completed employing standard industry practice, and a robust NSR methodology and utilising Sandfire's internal resources. The MATSA Ore Reserve has been updated based on updated Mineral Resources (as at 31 March 2024) and changes to modifying factors.

This has resulted in a net overall increase in the MATSA Ore Reserve of 2.3Mt, an increase of 23kt of contained copper and increase of 73kt of contained zinc after accounting for mining depletion through to 31 March 2024 and adjustments to modifying factors.

Figure 2 – MATSA Ore Reserve tonnage variance 30 June 2023 to 31 March 2024.

Table 1 shows a summary of the MATSA Mineral Resources (MR) and Ore Reserves (OR) by mine and the increase or decrease from the previous respective declaration statements3,

Mine andCategory Tonnes(Mt) NSR(US$/t) Cu(%) Zn(%) Pb(%) Ag(g/t) Cu(kt) Zn(kt) Pb(kt) Ag(Moz) Increase /Decrease
Aguas Teñidas MR 53.6 129 1.3 3.0 0.9 39.9 673 1591 457 68.8 +9.6Mt
Aguas Teñidas OR 16.5 105 1.2 3.4 1.0 44.2 199 560 171 23.4 +1.0Mt
Magdalena MR 25.4 194 2.2 2.5 0.8 37.5 571 637 191 30.7 +2.3Mt
Magdalena OR 17.7 128 1.9 2.2 0.7 32.2 331 388 118 18.4 +0.6Mt
Sotiel MR 74.0 82 1.0 3.1 1.3 41.6 734 2,293 993 99.0 +0.3Mt
Sotiel OR 4.1 78 1.4 1.3 0.6 31.4 58 55 25 4.2 +0.7Mt
MATSA Mines MR 153.0 117 1.3 3.0 1.1 40.4 1,978 4,521 1,641 198.5 +12.2Mt
MATSA Mines OR 38.3 113 1.5 2.6 0.8 37.3 588 1,003 315 45.9 +2.3Mt
Projects MR 19.8 89 1.2 1.7 0.6 25.4 236 326 117 16.2 +3.1Mt
MATSA Cons. MR 172.8 114 1.3 2.8 1.0 38.6 2,213 4,847 1,758 214.7 +15.3Mt

Table 1: Summary of MATSA Mineral Resources and Ore Reserves by Mine at 31 March 2024

Notes:

  1. Mineral Resources are inclusive of Ore Reserves.

  2. Different long term real commodity prices are used to estimate NSR value for Mineral Resources and Ore Reserves. See

attached explanatory notes.

  1. Numbers may not add due to rounding.

The MATSA process plant located next to the Aguas Teñidas mine has a nominal capacity of 4.7Mtpa consisting of three independent processing streams. The mine operating strategy adopted for MATSA is to maximise value by utilising the mill capacity and blending the various plant feed sources to produce the highest value concentrates.

The blending strategy considers the two primary ore types at MATSA, being polymetallic and cupriferous ores, and the variations within those ore types. The in-built system flexibility allows short

3 Refer to Sandfire's ASX announcement titled 'MATSA Mineral Resources and Ore Reserve Update', dated 31August 2023 for details.

and longer-term ore feed variability to be managed to achieve objectives. End of mine life production tails can also be effectively managed.

Mill feed sourced from the respective mines is nominally split 45% from Aguas Teñidas (ATE), 45% from Magdalena (MGD) and 10% from Sotiel (SOT).

Technical and economic studies are ongoing to test the viability of extracting unconverted Measured and Indicated Mineral Resources. Finalisation of such studies will occur after all extraction methodologies have been evaluated.

Similarly, the requirement for Measured and Indicated Mineral Resource sterilisation assessments remains and will be undertaken in each respective mine that has remnant areas. Focus areas include the Aguas Teñidas orebody including stockworks at the Aguas Teñidas mine, the Masa 1 orebody at the Magdalena mine, and the Sotiel, Sotiel East and Migollas orebodies at the Sotiel mine.

No Ore Reserves have been declared for the satellite deposits of Concepción, Poderosa and Castillo Buitrón (included in the Mineral Resource tables above within 'Projects MR') as these only contain Inferred Mineral Resources. Studies will be undertaken to determine the technical and economic viability of these deposits to inform future development potential.

- ENDS -

For further information, please contact:

Investors Ben Crowley Head of Investor Relations Office: +61 8 6430 3800

Media Peter Kermode Purple T: +61 411 209 459

This announcement is authorised for release by Sandfire's Chief Executive Officer and Managing Director,

Brendan Harris.

Competent Person's Statement – Mineral Resources

The information in this report that relates to Mineral Resources is based on and fairly represents information and supporting documentation prepared by Mr Orlando Rojas who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Rojas is a full-time employee of GeoEstima. Mr Rojas has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity that he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Minerals Resources and Ore Reserves'. Mr Rojas consents to the inclusion in this report of the matters based on the information in the form and context in which it appears.

Competent Person's Statement – Ore Reserves

The information in this report that relates to Ore Reserves is based on and fairly represents information and supporting documentation prepared by Mr Fabián Silva who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Silva is a full-time employee of Sandfire MATSA. Mr Silva has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity that he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Minerals Resources and Ore Reserves'. Mr Silva consents to the inclusion in this report of the matters based on the information in the form and context in which it appears.

Forward-Looking Statements

Certain statements made within or in connection with this release contain or comprise certain forward-looking statements regarding Sandfire's Mineral Resources and Ore Reserves, exploration and project development operations, production rates, life of mine, projected cash flow, capital expenditure, operating costs and other economic performance and financial condition as well as general market outlook. Forward-looking statements can generally be identified by the use of forward-looking words such as 'expect', 'anticipate', 'may', 'likely', 'should', 'could', predict', 'propose', 'will', 'believe', 'estimate', 'target', 'guidance' and other similar expressions. You are cautioned not to place undue reliance on forward-looking statements. Forward-looking statements are provided as a general guide only and should not be relied upon as an indication or guarantee of future performance. Although Sandfire believes that the expectations reflected in such forward-looking statements are reasonable, such expectations are only predictions and are subject to inherent risks and uncertainties which could cause actual values, results, performance or achievements to differ materially from those expressed, implied or projected in any forward- looking statements and no assurance can be given that such expectations will prove to have been correct.

Accordingly, results could differ materially from those set out in the forward-looking statements as a result of, among other factors, changes in economic and market conditions, delays or changes in project development, success of business and operating initiatives, changes in the regulatory environment and other government actions, fluctuations in metals prices and exchange rates and business and operational risk management.

Unless otherwise stated, the forward-looking statements are current as at the date of this announcement. Except as required by law or regulation, for statutory liability which cannot be excluded, each of Sandfire, its officers, employees and advisors expressly disclaim any responsibility for the accuracy or completeness of the material contained in these forward-looking statements and excludes all liability whatsoever (including in negligence) for any loss or damage which may be suffered by any person as a consequence of any information in forward-looking statements or any error or omission. Sandfire undertakes no obligation to update publicly or release any revisions to these forward-looking statements to reflect events or circumstances after today's date or to reflect the occurrence of unanticipated events other than required by the Corporations Act and ASX Listing Rules. Accordingly, you should not place undue reliance on any forward-looking statement.

MATSA Mineral Resources and Ore Reserves 2024 Statement and Explanatory Notes

Setting

The MATSA operations comprise copper-zinc-lead deposits of three mines: Aguas Teñidas, Magdalena and Sotiel and three Projects, Concepcion, Castillo – Buitron and Poderosa. These deposits are all interpreted as volcanogenic massive sulphide, or VMS, in a well-established mineralised belt known as the Iberian Pyrite Belt (IPB) located in southwest Spain near the international border with Portugal (see Figure 3). MATSA holds 47 exploitation concessions grouped into three mining projects: Aguas Teñidas, Magdalena and Sotiel.

Figure 3: Location of MATSA deposits, south-west Spain.

The three MATSA underground mines are located in relatively close proximity to one another (see Figure 3). The Aguas Teñidas mine is 7km west of the Magdalena mine, within the Almonaster la Real municipality and less than 2km from the villages of Valdelamusa and Cueva de la Mora. The Sotiel mine is located approximately 38km south of the Aguas Teñidas mine within the municipality of Calañas, immediately on the southern border of the village of Sotiel Coronada.

The three MATSA mines are accessed by the national road network which is characterised by well-maintained paved roads. The Aguas Teñidas processing plant and mine are located approximately 100km north from the industrial port city of Huelva.

Mineralisation at all three mines is dominated by massive sulphides, with the dominant sulphide mineral being pyrite with lesser amounts of sphalerite, chalcopyrite and galena. The character of the mineralisation is specific to each mine.

MATSA Mineral Resource

The MATSA Mineral Resource statement is as at 31 March 2024 and includes drillhole data acquired between 1984 and 31 July 2023, and uses mapping information collected from underground development in its three mines.

The 2024 MATSA Mineral Resource update followed an interpretation approach consistent with that used for previous models for Aguas Teñidas, Magdalena and Sotiel Mines, as well as mineral resources related to three exploration projects.

The mineral resource model of Aguas Teñidas Mine includes the Aguas Teñidas, Western Extension, Calañesa, and Castillejito deposits. The mineral resource model of Magdalena mine includes Masa 1, Masa 2, Masa Gold, Masa Gold Norte, and Masa Olivo deposits, and the mineral resource model of Sotiel Mine includes Sotiel, Sotiel East, Migollas, Calabazar, and Elvira deposits. The projects' mineral resource models include the Concepcion, Castillo – Buitron and Poderosa deposits.

The Reasonable Prospects of Eventual Economic Extraction test uses updated commodity prices for Copper, Zinc, Lead and Silver and recoveries that allow the valuation of blocks based on NSR calculations. NSR cut-offs were applied for each mine assuming the relevant production costs that are applicable in each case. The models have been created, and Mineral Resources classified, assuming the current mining method, namely transverse and longitudinal sub-level, long hole open stoping.

The estimated Mineral Resources at the MATSA are shown in Table 2.

Table 2: MATSA Mineral Resources Estimate as at 31 March 2024 by Mine

Deposit Class Tonnes(Mt) NSR(US$/t) Cu(%) Zn(%) Pb(%) Ag(g/t) Cu(kt) Zn(kt) Pb(kt) Ag(Moz)
Aguas Measured 40.3 134 1.3 3.1 0.9 42.5 520 1,245 375 55.1
Teñidas Indicated 10.2 103 1.1 2.2 0.6 29.2 108 222 59 9.6
Inferred 3.0 156 1.5 4.1 0.8 41.8 45 124 23 4.1
Total 53.6 129 1.3 3.0 0.9 39.9 673 1,591 457 68.8
Magdalena Measured 15.5 216 2.4 3.0 0.9 45.3 379 467 141 22.5
Indicated 5.7 154 1.8 2.1 0.6 28.7 103 120 34 5.3
Inferred 4.3 166 2.1 1.2 0.4 21.4 90 50 16 2.9
Total 25.4 194 2.2 2.5 0.8 37.5 571 637 191 30.7
Sotiel Measured 42.9 87 1.0 3.3 1.4 42.4 436 1,415 609 58.6
Indicated 19.2 79 1.0 2.6 1.1 39.9 196 496 218 24.6
Inferred 11.9 70 0.8 3.2 1.4 41.4 101 382 167 15.8
Total 74.0 82 1.0 3.1 1.3 41.6 734 2,293 993 99.0
Projects Measured - - - - - - - - - -
Indicated - - - - - - - - - -
Inferred 19.8 89 1.2 1.7 0.6 25.4 236 326 117 16.2
Total 19.8 89 1.2 1.7 0.6 25.4 236 326 117 16.2
MATSA Measured 98.7 126 1.4 3.2 1.1 42.9 1,335 3,127 1,124 136.2
Consolidated Indicated 35.0 98 1.2 2.4 0.9 35.0 407 838 311 39.4
Inferred 39.0 97 1.2 2.3 0.8 31.1 472 882 323 39.0
Total 172.8 114 1.3 2.8 1.0 38.6 2,213 4,847 1,758 214.7

Notes:

    1. Mineral Resources estimate has been reported in accordance with the 2012 edition of the JORC Code.
    1. Mineral Resources are reported on a 100% ownership basis.
    1. Mineral Resources are inclusive of Ore Reserves.
    1. Mineral Resources that are not Ore Reserves do not have demonstrated economic viability.
    1. Mineral Resources are estimated at the following NSR cut-off value:
    • a. Magdalena: US$43/t
    • b. Aguas Teñidas and projects: US$45/t
    • c. Sotiel: US$46/t
    1. Mineral Resources are estimated using the following long-term prices:
    • a. Cu US$9,780/t
    • b. Zn US$3,250/t
    • c. Pb US$2,090/t
    • d. Ag US$23.00/oz
    1. Cu recovery for Polymetallic ranged between 40% and 79%, for Cupriferous ranged between 50% and 92% and for Stockwork ranged between 85% and 92%.
    1. Zn recovery for Polymetallic ranged between 45% and 83%.
    1. Pb recovery for Polymetallic ranged between 25% and 50%.
    1. Original statements did not present metal content, these have been derived for the consolidated table only.
    1. Numbers may not add due to rounding.

Table 3: MATSA Mineral Resources Estimate at 31 March 2024 by Material Type

Mine Class Tonnes(Mt) NSR(US$/t) Cu(%) Zn(%) Pb(%) Ag(g/t) Cu(kt) Zn(kt) Pb(kt) Ag(Moz)
Aguas Teñidas
Measured 22.6 155 1.2 5.3 1.6 60.6 262 1,199 354 44.1
Indicated 4.7 131 1.0 4.6 1.2 54.7 49 216 57 8.2
Polymetallic Inferred 2.2 179 1.6 5.4 1.0 49.9 35 121 22 3.6
Total 29.6 153 1.2 5.2 1.5 58.9 346 1,536 432 56.0
Measured 9.9 128 1.8 0.3 0.2 29.9 176 29 15 9.5
Indicated 0.7 84 1.2 0.2 0.2 26.6 9 2 1 0.6
Cupriferous Inferred 0.5 95 1.3 0.4 0.1 23.2 7 2 1 0.4
Total 11.1 124 1.7 0.3 0.2 29.4 192 33 17 10.5
Measured 7.2 79 1.1 0.1 0.0 3.8 76 5 2 0.9
Stockwork Indicated 4.6 79 1.1 0.0 0.0 3.6 48 2 1 0.5
Cupriferous Inferred 0.3 84 1.1 0.2 0.1 11.0 3 0 0 0.1
Total 12.0 80 1.1 0.1 0.0 3.9 127 7 2 1.5
Measured 0.2 63 1.0 1.5 0.5 18.6 2 3 1 0.1
Stockwork Indicated 0.0 83 1.1 2.1 0.3 21.9 1 1 0 0.0
Polymetallic Inferred 0.0 59 1.1 1.0 0.2 22.5 0 0 0 0.0
Total 0.3 67 1.0 1.6 0.4 19.3 3 4 1 0.2
Measured 0.2 73 1.0 0.2 0.2 18.1 2 0 0 0.1
Halo Indicated 0.1 70 0.9 0.2 0.1 21.3 1 0 0 0.0
Cupriferous Inferred 0.0 62 0.8 0.4 0.1 16.5 0 0 0 0.0
Total 0.3 72 1.0 0.2 0.2 18.8 3 1 0 0.2
Measured 0.2 79 0.6 3.3 1.1 43.8 2 8 3 0.3
Halo Indicated 0.1 63 0.8 2.1 0.6 35.2 1 2 0 0.1
Polymetallic Inferred 0.0 61 0.8 1.9 0.8 37.1 0 0 0 0.0
Total 0.3 74 0.7 2.9 1.0 41.4 2 10 3 0.5
Measured 40.3 134 1.3 3.1 0.9 42.5 520 1,245 375 55.1
Indicated 10.2 103 1.1 2.2 0.6 29.2 108 222 59 9.6
Total Inferred 3.0 156 1.5 4.1 0.8 41.8 45 124 23 4.1
Total 53.6 129 1.3 3.0 0.9 39.9 673 1,591 457 68.8
Magdalena
Measured 6.2 314 3.0 6.7 1.9 87.3 189 419 120 17.5
Indicated 1.6 232 2.0 6.3 1.6 68.1 33 103 27 3.6
Polymetallic Inferred 0.8 208 1.9 5.4 1.5 61.2 15 43 12 1.5
Total 8.7 289 2.7 6.5 1.8 81.3 237 565 158 22.6
Measured 6.7 174 2.4 0.2 0.1 13.3 159 13 7 2.9
Indicated 3.2 132 1.8 0.2 0.1 10.9 59 6 3 1.1
Cupriferous Inferred 3.1 165 2.3 0.1 0.1 12.2 72 5 4 1.2
Total 13.1 162 2.2 0.2 0.1 12.4 290 24 14 5.2
Measured - - - - - - - - - -
Stockwork Indicated - - - - - - - - - -
Cupriferous Inferred - - - - - - - - - -
Total - - - - - - - - - -
Measured - - - - - - - - - -
Indicated - - - - - - - - - -
StockworkPolymetallic Inferred - - - - - - - - - -
Total - - - - - - - - - -

Mine Class Tonnes(Mt) NSR(US$/t) Cu(%) Zn(%) Pb(%) Ag(g/t) Cu(kt) Zn(kt) Pb(kt) Ag(Moz)
Measured 0.5 71 0.9 0.3 0.1 11.3 5 2 1 0.2
Halo Indicated 0.3 71 0.9 0.2 0.1 7.6 3 1 0 0.1
Cupriferous Inferred 0.2 62 0.8 0.1 0.0 5.8 2 0 0 0.0
Total 1.0 69 0.9 0.3 0.1 9.1 10 3 1 0.3
Measured 2.0 90 1.3 1.7 0.7 30.0 26 34 14 1.9
Halo Indicated 0.6 93 1.3 1.8 0.6 27.8 7 10 3 0.5
Polymetallic Inferred 0.1 82 1.0 2.1 0.7 28.9 1 2 1 0.1
Total 2.7 90 1.3 1.7 0.7 29.5 34 46 18 2.5
Measured 15.5 216 2.4 3.0 0.9 45.3 379 467 141 22.5
Indicated 5.7 154 1.8 2.1 0.6 28.7 103 120 34 5.3
Total Inferred 4.3 166 2.1 1.2 0.4 21.4 90 50 16 2.9
Total 25.4 194 2.2 2.5 0.8 37.5 571 637 191 30.7
Sotiel
Measured 35.6 77 0.8 3.8 1.6 44.5 302 1,356 582 51.0
Indicated 14.0 72 0.9 3.3 1.5 43.9 125 467 203 19.7
Polymetallic Inferred 11.1 69 0.8 3.4 1.5 42.6 91 374 163 15.1
Total 60.7 74 0.9 3.6 1.6 44.0 517 2,197 948 85.9
Measured 6.1 146 2.0 0.6 0.3 33.7 122 35 17 6.6
Indicated 4.3 104 1.5 0.4 0.2 30.1 63 17 9 4.1
Cupriferous Inferred 0.4 76 1.3 0.4 0.3 30.8 6 2 1 0.4
Total 10.8 126 1.8 0.5 0.2 32.1 190 53 27 11.1
Measured - - - - - - - - - -
Stockwork Indicated - - - - - - - - - -
Cupriferous Inferred - - - - - - - - - -
Total - - - - - - - - - -
Measured 0.0 53 0.2 4.6 2.0 61.7 0 0 0 0.0
Stockwork Indicated - - - - - - - - - -
Polymetallic Inferred - - - - - - - - - -
Total 0.0 .53 0.2 4.6 2.0 61.7 0 0 0 0.0
Measured 0.4 90 1.2 0.4 0.2 14.2 4 2 1 0.2
Halo Indicated 0.4 78 1.0 0.4 0.2 12.3 4 1 1 0.1
Cupriferous Inferred 0.1 82 1.1 0.5 0.2 14.0 1 1 0 0.1
Total 0.9 84 1.1 0.4 0.2 13.4 10 4 1 0.4
Measured 0.8 67 1.0 2.6 1.1 30.9 8 22 9 0.8
Halo Indicated 0.5 64 1.0 2.3 1.0 34.7 5 12 5 0.6
Polymetallic Inferred 0.3 64 1.1 1.9 0.9 26.2 3 6 2 0.2
Total 1.6 65 1.0 2.4 1.0 31.3 17 39 17 1.6
Measured 42.9 87 1.0 3.3 1.4 42.4 436 1,415 609 58.6
Indicated 19.2 79 1.0 2.6 1.1 39.9 196 496 218 24.6
Total Inferred 11.9 70 0.8 3.2 1.4 41.4 101 382 167 15.8
Total 74.0 82 1.0 3.1 1.3 41.6 734 2,293 993 99.0
Projects
Measured - - - - - - - - - -
Indicated - - - - - - - - - -
Polymetallic Inferred 6.9 103 1.0 4.2 1.5 52.0 72 290 104 11.5
Total 6.9 103 1.0 4.2 1.5 52.0 72 290 104 11.5
Measured - - - - - - - - - -
Cupriferous Indicated - - - - - - - - - -

Mine Class Tonnes(Mt) NSR(US$/t) Cu(%) Zn(%) Pb(%) Ag(g/t) Cu(kt) Zn(kt) Pb(kt) Ag(Moz)
Inferred 9.2 87 1.4 0.4 0.1 14.2 128 32 11 4.2
Total 9.2 87 1.4 0.4 0.1 14.2 128 32 11 4.2
Measured - - - - - - - - - -
Stockwork Indicated - - - - - - - - - -
Cupriferous Inferred 3.7 70 1.0 0.1 0.0 3.8 35 5 1 0.5
Total 3.7 70 1.0 0.1 0.0 3.8 35 5 1 0.5
Measured - - - - - - - - - -
Stockwork Indicated - - - - - - - - - -
Polymetallic Inferred - - - - - - - - - -
Total - - - - - - - - - -
Measured - - - - - - - - - -
Halo Indicated - - - - - - - - - -
Cupriferous Inferred - - - - - - - - - -
Total - - - - - - - - - -
Measured - - - - - - - - - -
Halo Indicated - - - - - - - - - -
Polymetallic Inferred - - - - - - - - - -
Total - - - - - - - - - -
Measured - - - - - - - - - -
Indicated - - - - - - - - - -
Total Inferred 19.8 89 1.2 1.7 0.6 25.4 236 326 117 16.2
Total 19.8 89 1.2 1.7 0.6 25.4 236 326 117 16.2
Total
Measured 64.5 127 1.2 4.6 1.6 54.3 752 2,975 1,055 112.7
Indicated 20.3 98 1.0 3.9 1.4 48.3 207 785 287 31.5
Polymetallic Inferred 21.0 97 1.0 3.9 1.4 47.1 213 827 301 31.8
Total 105.8 116 1.1 4.3 1.6 51.7 1,172 4,587 1,643 176.0
Measured 22.7 146 2.0 0.3 0.2 26.0 457 77 39 19.0
Cupriferous Indicated 8.3 113 1.6 0.3 0.2 22.2 131 25 13 5.9
Inferred 13.2 105 1.6 0.3 0.1 14.6 212 40 17 6.2
Total 44.2 128 1.8 0.3 0.2 21.9 800 142 69 31.1
Measured 7.2 79 1.1 0.1 0.0 3.8 76 5 2 0.9
Stockwork Indicated 4.6 79 1.1 0.0 0.0 3.6 48 2 1 0.5
Cupriferous Inferred 4.0 71 1.0 0.1 0.0 4.3 38 5 2 0.5
Total 15.7 77 1.0 0.1 0.0 3.9 163 12 4 2.0
Measured 0.2 63 1.0 1.5 0.5 18.6 2 3 1 0.1
Stockwork Indicated 0.0 83 1.1 2.1 0.3 21.9 1 1 0 0.0
Polymetallic Inferred 0.0 59 1.1 1.0 0.2 22.5 0 0 0 0.0
Total 0.3 67 1.0 1.6 0.4 19.3 3 4 1 0.2
Measured 1.1 78 1.0 0.3 0.2 13.5 11 4 2 0.5
Halo Indicated 0.7 74 1.0 0.3 0.1 11.2 7 2 1 0.3
Cupriferous Inferred 0.3 69 0.9 0.3 0.1 8.9 3 1 0 0.1
Total 2.2 75 1.0 0.3 0.1 12.0 22 7 3 0.8
Measured 3.1 83 1.1 2.1 0.8 31.3 35 64 26 3.1
Halo Indicated 1.1 78 1.1 2.0 0.8 31.4 13 23 9 1.2
Polymetallic Inferred 0.4 68 1.1 2.0 0.8 27.5 5 8 3 0.4
Total 4.7 80 1.1 2.0 0.8 31.0 53 95 38 4.6
Total Measured 98.7 126 1.4 3.2 1.1 42.9 1,335 3,127 1,124 136.2

Mine Class Tonnes(Mt) NSR(US$/t) Cu(%) Zn(%) Pb(%) Ag(g/t) Cu(kt) Zn(kt) Pb(kt) Ag(Moz)
Indicated 35.0 98 1.2 2.4 0.9 35.0 407 838 311 39.4
Inferred 39.0 97 1.2 2.3 0.8 31.1 472 882 323 39.0
Total 172.8 114 1.3 2.8 1.0 38.6 2,213 4,847 1,758 214.7

When compared with the previous Mineral Resource estimate reported as at 30 June 2023, the updated 31 March 2024 Mineral Resource provides a 9% increase in contained tonnes, a 7% increase in contained copper and a 3% increase in contained zinc. This result broadly replaces mineral resource mining depletion over the intervening period.

Figure 5: MATSA Mineral Resource tonnage variance – 30 June 2023 to 31 March 2024.

Figure 7: MATSA Mineral Resource contained zinc variance – 30 June 2023 to 31 March 2024.

MATSA Ore Reserve

The reported Ore Reserves for the Aguas Teñidas, Magdalena and Sotiel operations are based on the six block models which formed the basis of the Mineral Resource estimates.

The effective date of the Mineral Resource statement is 31 March 2024, with the effective date of the previous Ore Reserve statement being 30 June 2023. Mineral Resources and Ore Reserves incorporated depletion by MATSA up to 31 March 2024. Mineral Resources are presented on an inclusive basis, meaning the Measured and Indicated Mineral Resources are inclusive of those Mineral Resources modified to produce the Ore Reserves.

Material type classification is determined by the requirements of the process plant to produce concentrates containing certain quality characteristics. Cupriferous ore is defined as Zn<2.5% and Cu/Zn>1.7 with the remainder defined as Polymetallic ore.

Estimation of the Ore Reserve adopts the same NSR methodology that is used in the estimation of the Mineral Resource with the only difference being the selected commodity prices. An NSR cut-off value approach is applied for each stope or development block, with each value calculated according to the ore type, metal grades, metallurgical recoveries, realisation costs, transport costs, forecast metal prices and the payability of each metal according to offtake agreements. For the Ore Reserve estimate various NSR cut-off values (development incremental through to full cost) were used dependent on the status of development access. Key NSR input assumptions are listed below.

  • Long term real commodity prices: Cu US$8,150/t, Zn US$2,600/t, Pb US$1,900/t, Ag US$20.0/oz.
  • Exchange rate: EUR/US$1.18.
  • Process plant recoveries are estimated from material type grade recovery curves and applied by mine, material type and concentrate product:
    • o Polymetallic: Aguas Teñidas and Magdalena Zn (67-83%), Cu (50-79%), Pb (25- 50%)
    • o Polymetallic: Sotiel Zn (45-71%), Cu (40-75%), Pb (25-36%)
    • o Copper: Aguas Teñidas, Magdalena, Sotiel Cu (50-92%)
    • o Copper stockwork: Cu (85-92%)
  • Metal payability, penalties, realisation costs, shipping costs are based on current offtake agreements for the various concentrates.
  • Mine to port logistic costs are based on current road transport contract pricing.

The primary NSR cut-off values used for the Ore Reserve estimate are shown in Table 4.

Table 4: Ore Reserve Cut-Off Values

Mine Incremental COV(US$/t ore) Opex COV(US$/t ore) Opex + Capex COV(US$/t ore)
Aguas Teñidas 55 68 77
Magdalena 53 67 74
Sotiel 49 65 73

Table 5 and Table 6 show a breakdown of ore reserves by mine and by material type with long section and plans shown in Figure 8 through to Figure 10. The long sections and plans show the updated Ore Reserve estimate stope and development designs which have been depleted for mining to the period ending 31 March 2024.

Table 5: MATSA Ore Reserve Estimate as at 31 March 2024 by Mine

Mine Class Tonnes(Mt) NSR(US$/t) Cu(%) Zn(%) Pb(%) Ag(g/t) Cu(kt) Zn(kt) Pb(kt) Ag(Moz)
Aguas Teñidas Proved 10.8 115 1.3 3.7 1.2 49.3 144 405 126 17.2
Probable 5.7 85 1.0 2.7 0.8 34.4 56 155 45 6.2
Total 16.5 105 1.2 3.4 1.0 44.2 199 560 171 23.4
Magdalena Proved 12.0 134 2.0 2.3 0.7 33.9 236 273 83 13.1
Probable 5.7 115 1.7 2.0 0.6 28.8 94 115 35 5.3
Total 17.7 128 1.9 2.2 0.7 32.2 331 388 118 18.4
Sotiel Proved 3.0 81 1.5 1.3 0.6 31.6 44 41 18 3.1
Probable 1.1 72 1.3 1.3 0.6 31.0 14 15 7 1.1
Total 4.1 78 1.4 1.3 0.6 31.4 58 55 25 4.2
MATSA Proved 25.9 120 1.6 2.8 0.9 40.1 424 718 228 33.3
Consolidated Probable 12.4 98 1.3 2.3 0.7 31.5 164 285 87 12.6
Total 38.3 113 1.5 2.6 0.8 37.3 588 1003 315 45.9

Notes:

Numbers may not add due to rounding.

Table 6: MATSA Ore Reserve Estimate as at 31 March 2024 by Material Type

Mine Class Tonnes(Mt) NSR(US$/t) Cu(%) Zn(%) Pb(%) Ag(g/t) Cu(kt) Zn(kt) Pb(kt) Ag(Moz)
Aguas Teñidas
Polymetallic Proved 9.3 120 1.3 4.3 1.3 54.3 123 401 125 16.2
Probable 3.8 87 0.8 4.0 1.2 47.2 31 153 45 5.8
Total 13.1 111 1.2 4.2 1.3 52.2 154 554 169 22.1
Cupriferous Proved 1.5 82 1.4 0.3 0.1 18.8 21 4 2 0.9
Probable 1.8 81 1.3 0.1 0.0 7.3 24 1 1 0.4
Total 3.3 82 1.4 0.2 0.1 12.5 45 5 2 1.3
Total Proved 10.8 115 1.3 3.7 1.2 49.3 144 405 126 17.2
Probable 5.7 85 1.0 2.7 0.8 34.4 56 155 45 6.2
Total 16.5 105 1.2 3.4 1.0 44.2 199 560 171 23.4
Magdalena
Polymetallic Proved 7.8 145 2.0 3.3 1.0 45.5 154 256 76 11.3
Probable 3.1 132 1.7 3.5 1.0 43.4 52 107 32 4.3
Total 10.8 141 1.9 3.4 1.0 44.9 206 363 108 15.6
Cupriferous Proved 4.3 113 1.9 0.4 0.2 12.8 82 17 7 1.8
Probable 2.6 94 1.6 0.3 0.1 11.6 42 8 3 1.0
Total 6.9 106 1.8 0.4 0.2 12.3 124 25 11 2.7
Total Proved 12.0 134 2.0 2.3 0.7 33.9 236 273 83 13.1
Probable 5.7 115 1.7 2.0 0.6 28.8 94 115 35 5.3
Total 17.7 128 1.9 2.2 0.7 32.2 331 388 118 18.4
Sotiel
Polymetallic Proved 1.9 66 1.2 1.8 0.8 33.7 23 34 15 2.0
Probable 0.5 56 0.9 2.5 1.2 38.5 4 12 6 0.6
Total 2.3 64 1.2 1.9 0.9 34.6 27 45 21 2.6
Cupriferous Proved 1.2 104 1.8 0.6 0.3 28.2 21 7 3 1.1
Probable 0.6 84 1.5 0.5 0.2 25.3 9 3 1 0.5
Total 1.8 97 1.7 0.6 0.2 27.2 30 10 4 1.6
Total Proved 3.0 81 1.5 1.3 0.6 31.6 44 41 18 3.1
Probable 1.1 72 1.3 1.3 0.6 31.0 14 15 7 1.1
Total 4.1 78 1.4 1.3 0.6 31.4 58 55 25 4.2
MATSA Consolidated
Polymetallic Proved 18.9 125 1.6 3.6 1.1 48.7 300 690 216 29.6
Probable 7.4 104 1.2 3.7 1.1 45.1 88 272 82 10.7
Total 26.3 119 1.5 3.7 1.1 47.7 387 963 298 40.3
Cupriferous Proved 7.0 105 1.8 0.4 0.2 16.7 124 28 12 3.7
Probable 5.1 88 1.5 0.3 0.1 11.7 76 13 5 1.9
Total 12.0 98 1.7 0.3 0.1 14.6 200 41 17 5.6
Total Proved 25.9 120 1.6 2.8 0.9 40.1 424 718 228 33.3
Probable 12.4 98 1.3 2.3 0.7 31.5 164 285 87 12.6
Total 38.3 113 1.5 2.6 0.8 37.3 588 1,003 315 45.9

Notes:

Numbers may not add due to rounding.

Figure 8: Long Section of Aguas Teñidas Ore Reserves 31 March 2024.

Figure 9: Long Section of Magdalena Ore Reserves 31 March 2024.

Figure 10: Long Section and Plan of Sotiel Ore Reserves 31 March 2024.

Changes to the MATSA Ore Reserve Estimate

Notable changes to the modifying factors adopted for the 31 March 2024 Ore Reserve are shown in Table 7.

Table 7: Changes to Modifying Factors

Item Ore Reserve30 June 2023 Ore Reserve31 March 2024 Comments
Commodity Prices and FX
Cu Price (US$/t) 8,100 8,150 SFR ore reserve commodity price
Zn Price (US$/t) 2,500 2,600 assumptions
Pb Price (US$/t) 1,983 1,900
Ag Price (US$/oz) 19.1 20.0
FX EUR:USD 1.19 1.18

Approximately 2.3Mt ore reserve tonnes containing 45kt of copper and 62kt of zinc were extracted from the MATSA mines during the period 30 June 2023 to 31 March 2024.

Approximately 4.6Mt ore tonnes containing 68kt of copper and 135kt of zinc were added to the ore reserves because of updates to the Mineral Resources and application of updated modifying factors.

Ore reserves have been added from two new zones that were identified via a geological reinterpretation and modelling exercise. These were subsequently drilled to a spacing that provided sufficient data that supported the estimation of mineral resources that could be assessed for conversion to ore reserves. San Pedro at Aguas Teñidas contains approximately 0.1Mt ore reserve

tonnes containing 1kt of copper and 6kt of zinc. Masa Olivo at Magdalena contains approximately 0.6Mt ore reserve tonnes containing 8kt of copper and 9kt of zinc. These two areas contain approximately 15% of the ore tonnes, 13% of the contained copper and 11% of the contained zinc of the added ore reserves.

When compared with the previous Ore Reserve estimate reported as at 30 June 2023, the updated 31 March 2024 Ore Reserve provides a 6% increase in contained tonnes, a 4% increase in contained copper and a 8% increase in contained zinc. This result both replaces ore reserve mining depletion over the intervening period and adds to the ore reserves.

Figure 11: Ore Reserve tonnage variance - 30 June 2023 to 31 March 2024.

Figure 12: MATSA Ore Reserve contained copper variance – 30 June 2023 to 31 March 2024.

Figure 13: MATSA Ore Reserve contained zinc variance - 30 June 2023 to 31 March 2024.

APPENDIX 1: JORC CODE, 2012 EDITION – TABLE 1

Mr Rojas assumes responsibility for matters related to Sections 1-3 of JORC Table 1, while Mr Silva assumes responsibility for matters related to Section 4 of JORC Table 1.

MATSA COPPER OPERATIONS

JORC Code Assessment Criteria Comment
Section 1 Sampling Techniques and Data
Sampling techniquesNature and quality of sampling (e.g., cut channels, randomchips, or specific specialised industry standard measurementtools appropriate to the minerals under investigation, such asdownhole gamma sondes, or handheld XRF instruments, etc.).These examples should not be taken as limiting the broadmeaning of sampling.Include reference to measures taken to ensure samplerepresentivity and the appropriate calibration of anymeasurement tools or systems used. •Drilling undertaken by MATSA conforms to industry best practices and the resultant sampling pattern issufficiently dense to interpret the geometry, boundaries, and different styles of the sulphidemineralisation at the three mines with a high level of confidence within well drilled areas.•All samples were taken from diamond drill cores drilled from both, surface and underground. Sampleswere cut longitudinally in half using an auto-feeding diamond core saw, or whole core, depending onthe purpose of the drill hole and the core diameter.•Sampling intervals are then marked, typically at 2m intervals, although this is reduced depending on thegeology and mineralisation in the core. The most common sample lengths in the assay database are1m and 2m.
Aspects of the determination of mineralisation that are Materialto the Public Report. In cases where 'industry standard' workhas been done this would be relatively simple (e.g., 'reversecirculation drilling was used to obtain 1 m samples from which3 kg was pulverised to produce a 30 g charge for fire assay').In other cases,more explanation may be required, such aswhere there is coarse gold that has inherent samplingproblems. Unusual commodities or mineralisation types (e.g.,submarine nodules) may warrant disclosure of detailedinformation. •Diamond drill holes were generally sampled along their entire length.

JORC Code Assessment Criteria Comment
Drilling techniquesDrill type (e.g., core, reverse circulation, open-hole hammer,rotary air blast, auger, Bangka, sonic, etc.), and details (e.g.,core diameter, triple or standard tube, depth of diamond tails,face-sampling bit or other type, whether core is oriented and ifso, by what method, etc.). •All drilling conducted has been diamond drilling ("DDH") –from both surface and underground collarlocations.•Drilling has been carried out by external third-party contractors both for surface and undergroundprograms.•A select number of holes were orientated.•The underground production drillholes are all NQ in diameter and reduction in size are not applied, asthese are typically short in length. Almost all massive sulphide mineralisation is drilled using HQ or NQdiameters.
Drill sample recoveryMethod of recording and assessing core and chip samplerecoveries and results assessed.Measures taken to maximise sample recovery and ensurerepresentative nature of the samples.Whether a relationship exists between sample recovery andgrade and whether sample bias may have occurred due topreferential loss/gain of fine/coarse material. •The drill core is transported from the drilling rigs to the Core Shed where it is sorted and stored beforebeing processed. Core intervals are measured against the drillers recorded measurements and then thecore recovery is determined by MATSA field technicians.Diamond core recovery is logged andcaptured in the database.•No sample recovery issues are believed to have negatively impacted sampled bias.

JORC Code Assessment Criteria Comment
LoggingWhether core and chip samples have been geologically andgeotechnically logged to a level of detail to support appropriateMineral Resource estimation, mining studies and metallurgicalstudies.Whether logging is qualitative or quantitative in nature. Core(or costean, channel, etc.), photography.The total length and percentage of the relevant intersectionslogged. •Geological logging is completed for all holes.The drill core is laid out on an angled logging rack withdedicated lights and water supply. The logging data recorded consists of the dominant lithology (colour,texture), alteration (style), mineralisation (mineralogy, type and texture) and fault rocks (type and style).Core is photographed and catalogued appropriately.•Logging is both qualitative and quantitative in nature.•Longitudinally cut half core samples are produced using a core saw.
Sub-sampling techniques and sample preparationIf core, whether cut or sawn and whether quarter, half or allcore taken. •For all intersections with logged presence of sulphides and adjacent waste zones, cores are marked forsampling and cut into two equal halves. The core is placed in a v-rail prior to being placed in the corecutting machine, the core is then cut. One half of the core is selected for sample preparation and assay
If non-core, whether riffled, tube sampled, rotary split, etc., andwhether sampled wet or dry. analysis, whilst the other is retained as a reference sample.•Core sample preparation at the laboratory was completed as follows:
For all sample types, the nature, quality and appropriatenessof the sample preparation technique. Weight.Oven dry, each sample is stored in a metal tray on a rack and dried at 105°C for at least two hours.The entire dried sample is first crushed using a jaw crusher.
Quality control procedures adopted for all sub-sampling stagesto maximise representivity of samples. The sample is then run through a cone crusher which reduces 90% of the particles to less than2mm in size.Each sample is then placed on a large plastic sheet and rolled (mixed) 20 times to homogenise thesample.
Measures taken to ensure that the sampling is representativeof the in situ material collected, including for instance resultsfor field duplicate/second-half sampling. After homogenisation, sample is split using an automatic riffle splitter resulting in a 500g sample,the sample must be at least 400g in weight and no more than 800g.The 500 g sample is milled using a ring mill for seven minutes resulting in the sample particles
Whether sample sizes are appropriate to the grain size of thematerial being sampled. passing through a 75 µm sieve.The pulverised sample is then placed on a large plastic sheet, and it is mixed (rolled) 20 times tohomogenise the sample. The pulp sample is then dip sampled to obtain a 150g sub-sample.Any external check samples, which require pulp material, are also taken during this process(external umpire and MATA reference samples). This 150g sample is then placed in a small plasticor paper bag with the sample number printed on it.

JORC Code Assessment Criteria Comment
•Coarse blanks and twin duplicates are inserted at the laboratory at the start of the sample preparationprocess.
•Duplicate analysis of pulp samples has been completed and identified no issues with samplingrepresentatively with assays showing a high level of correlation.
•The sample size is considered appropriate for the mineralisation style.
Quality of assay data and laboratory tests •Samples are assayed using ICP-OES, with aqua regia digest at the Internal MATSA laboratory.
The nature, quality and appropriateness of the assaying andlaboratory procedures used and whether the technique isconsidered partial or total. Samples are also fire-assayed for Au. The elements (Cu, Zn, Pb, Ag, Au, As, Sb, Bi, Cd, Ni, Se, Mnand Co, Hg, Fe and S) are analysed at the MATSA laboratory, along with the minimum detection limitsof the assaying equipment (ICP-OES).
For geophysical tools, spectrometers, handheld XRFinstruments, etc., the parameters used in determining theanalysis including instrument make and model, reading times,calibrations factors applied and their derivation, etc. •The historical Aguas Teñidas core was assayed for the current MATSA suite of elementsin most cases(when the mine was active), typically by ICP and XRF.
•No geophysical tools were used to analyse the drilling samples.
Nature of quality control procedures adopted (e.g.,standards,blanks, duplicates, external laboratory checks) and whetheracceptable levels of accuracy (i.e.,lack of bias) and precisionhave been established. •QAQC samples (blanks, certified reference material and duplicates) are inserted by MATSA staff intothe sample stream prior to these being sent to the laboratory for assay analysis. MATSA also employsALS (previously OMAC Laboratories Ltd) and ALS Chemex (Global) as its external referencelaboratories used to undertake check (umpire) assay analysis.
•Blank samples used by MATSA comprise silica material and have been included in the sample streamfor Aguas Teñidas since 2009. In reviewing the blanks analysis data, MATSA has applied a 4Xdetection limit threshold, specific for each element. Samples whichplot above this threshold aredetermined as failed samples is typically due to contamination or a mix up of samples (incorrectlabelling). The results of the blank analysis demonstrate that the sample preparation process employedat MATSA limit contamination to a reasonable level.
•Twin duplicate samples used by MATSA are quarter core field duplicate samples which have beenincluded in the sample stream at Aguas Teñidas and Magdalena since 2016, and at the other depositssince 2017. As expected, these duplicate results show a wider range of variation than the otherduplicate types inserted into the sample stream by MATSA but still show reasonably good repeatabilityas well as good correlation between the original and duplicate sample. The twin duplicates reportcorrelation coefficients typically more than 0.85 (most above 0.9).

JORC Code Assessment Criteria Comment
•Coarse duplicate samples used by MATSA are collected after the second split following crushing. Theresults for the coarse duplicates show a high degree of repeatability and a very high degree correlationbetween the original and duplicate sample, with a correlation coefficient typically more than 0.97.
•Internal pulp duplicates sample used by MATSA are collected at the final stage of sample preparation.The results for the pulp duplicates show a high degree of repeatability and a high degree of correlationbetween the original and duplicate sample, with acorrelation coefficient typically more than 0.98.
•External duplicate samples are collected at the final stage of sample preparation and sent to the umpirelaboratory (ALS Laboratories, Ireland ISO/IEC 17025). The results for the external duplicates show ahigh degree of repeatability and a high degree of correlation between the original and duplicatesamples, with a correlation coefficient typically more than 0.97.
•MATSA has used 37different CRM across all the deposits since production at the Aguas Teñidas minerecommenced in 2008. The CRM are used to monitor Cu, Zn, Pb, Ag, and Au grades. All CRM usedhave been created in -house by MATSA and were sent for round robin laboratory analysis, at ALSVancouver, ALS Loughrea, SGS Peru, SGS Canada, ALS Perth, and ALS Brisbane. Overall, the graderanges of the CRM are representative of the different mineralisation types (cupriferous and polymetallic)and grades as demonstrated in the drillhole statistics.
•GeoEstima considers that the QAQC results for each of the deposits to demonstrate acceptable levelsof accuracy and precision at the laboratories.
•GeoEstima therefore has confidence that the associated assays are of sufficient quality to be used inthe subsequent Mineral Resource estimate.
Verification of sampling and assayingThe verification of significant intersections by eitherindependent or alternative company personnel. •Documented verification of significant intervals by independent personnel has not been done, howeverthe mineralisation appears to be reasonably continuous and is not dominated by any one significantintersection.
The use of twinned holes. •The tenor of copper and zinc is visually predictable in massive or semi massive sulphide intersections.
Documentation of primary data, data entry procedures, dataverification, data storage (physical and electronic) protocols. •No drillholes have been twinned.•Logging is captured on laptops and loaded into the MATSAGeobank Database.•No adjustments have been made to data.
Discuss any adjustment to assay data.

The MATSA drillhole collars, for both underground and surface drillholes, are surveyed by the MATSAsurvey department. The surface collar locations are surveyed using GPS total station which has areported accuracy of less than 10cm in the X, Y, and Z coordinates. The underground collars aresurveyed using a total station method which has an accuracy of less than 10cm in the X, Y, and Zcoordinates.Regarding downhole survey the majority of the drillholes have a start and end of hole measurementonly. MATSA typically uses a REFLEX Flexi-It multi-shot tool for all of its downhole surveys, with themeasurements taken every 25m. The REFLEX tool is a magnetic tool, and the survey azimuth isaligned to mine grid north.Collars are marked out and picked up in the ED50 UTM Zone 29 N format.Validation of surface diamond drilling collars was carried out by independent consultants (SRK) inprevious Mineral Resource estimates in Elvira and Calañesa using a handheld GPS. This processfound no major discrepancies when these were compared against the satellite imagery. Undergrounddrillhole collars were also compared against the underground development with no major issuesidentified.A local mining grid is used at the three mines. Aguas Teñidas and Magdalena mine use the same localgrid. Conversion to this grid is undertaken from WGS84 co-ordinates and is achieved by adding1,002.968m to the elevation (Z) values (to avoid negative numbers in the underground development)and then a translation is applied to the X and Y coordinates by adding 0.006m to the X and 0.196m tothe Y coordinate respectively.mine grid is calculated by applying a translation (from the Pozo Isidro co-ordinate system) of689,597.452m to the X coordinate and 4,164,133.734m to the Y coordinate, after which a translation isapplied to all three coordinates, with 2,000m added to X, 5,000m added to the Y, and 1,000m added tothe Z coordinate. Finally, a rotation of 24.27ºis applied to align the strike of the orebodies to an eastwest direction.Concepción, Castillo-Buitrónand Poderosa Projects are in UTM coordinates, ED 50.

JORC Code Assessment Criteria Comment
Data spacing and distributionData spacing for reporting of Exploration Results.Whether the data spacing, and distribution is sufficient toestablish the degree of geological and grade continuityappropriate for the Mineral Resource and Ore Reserveestimation procedure(s) and classifications applied.Whether sample compositing has been applied. •All surface and underground drilling at the three mines is typically aimed to intersect mineralisationperpendicular to strike where access facilitates this.•From surface drilling is on 30 to 50 m sections (north-south), meanwhile underground is on 20-25mspacing.•No sample compositing is applied during the sampling process.
Orientation of data in relation to geological structureWhether the orientation of sampling achieves unbiasedsampling of possible structures and the extent to which this isknown, considering the deposit type.If the relationship between the drilling orientation and theorientation of key mineralised structures is considered to haveintroduced a sampling bias, this should be assessed andreported if material. •All drilling undertaken at the three mines is typically aimed to intersect mineralisation perpendicular tostrike where access facilitates this. A few geotechnical holes were not drilled perpendicular to the strikeof the mineralisation, although these were not specifically intended for use in geological modelling orMineral Resource estimate.•No significant sampling bias occurs in the data due to the orientation of drilling with regards tomineralisation.•Drilling undertaken by MATSA conforms to industry best practices and the resulting sampling pattern issufficiently dense to interpret the geometry, boundaries, and different styles of the sulphidemineralisation at the three mines with a high level of confidence within well drilled areas. Confidence inthe geological interpretation decreases in areas of reduced sample coverage and is reflected in theclassification of mineral resources.•It is GeoEstima's view that the drilling orientations are appropriate to model the geology andmineralisation based on the current geological interpretation.
Sample securityThe measures taken to ensure sample security. •All drill cores from the three mines are delivered to the core shed, usually via flatbed trucks, forphotography, core recovery calculations, geological and geotechnical logging, and sampling.•The core shed, sample preparation facilities and laboratory are all confined within secure boundaries,with controlled access points, where only authorised, mine personnel are allowed entry.
Audits and reviewsThe results of any audits or reviews of sampling techniquesand data. •No audits or reviews have been completed.

JORC Code Assessment Criteria Comment
Section 2 Reporting of Exploration Results
Mineral tenement and land tenure statusType, reference name/number, location and ownershipincluding agreements or material issues with third parties suchas joint ventures, partnerships, overriding royalties, native titleinterests, historical sites, wilderness or national park andenvironmental settings.The security of the tenure held at the time of reporting alongwith any known impediments to obtaining a licence to operatein the area. •MATSA currently holds 47mining permits which cover all three mines and has the rights to exploit theAguas Teñidas and Magdalena mines in the municipality of Almonaster la Real and the Sotiel mine inthe municipality of Calanas, both of which are located in the province of Huelva. The Company also hasexploitation (mining) and research (exploration) permits which cover more than 1,100 km² in the IPBand 160km² in the Spanish region of Extremadura.
•The Aguas Teñidas, Magdalena, and Sotiel mines are covered by 22, 23, and 2mining permits,respectively. The Aguas Teñidas mining permits were renewed in 2012 for a 30-year period and aredue to expire on 31 August 2042. The Magdalena mining permits were issued in 2013 and are due toexpire on 15 January 2043, except for the Magdalena Masa 2 permit which is due to expire on 07 July2046. The Sotiel mining permit was renewed in 2015 and is due to expire on 19 January 2045.
•MATSA was granted an exploration permits for the Concepción, Poderosa and Castillo-Buitrón projects.
•The "Permiso de Investigación El Patrás" (exploration permit) which includes Concepción was grantedto MATSA on the 14/11/2002. On the 17/01/2018 MATSA applied for a mining permit which is currentlybeing processed by the authorities, Exploration work continues in this area.
•The "Permiso de Investigación Buitrón" (exploration permit) which includes the Castillo-Buitrón Projectwas granted to MATSA on the 03/11/2015. A two-year extension was granted on the 15/01/2024.
•The "Permiso de Investigación Buitrera" (exploration permit)which includes the Poderosa Project wasoriginally granted to MATSA on the 28/01/2010. A three-year extension was granted on the 27/06/2023.
Exploration done by other partiesAcknowledgment and appraisal of exploration by other parties. •Mining in the IPB has occurred for over 2,500 years. Activity can be dated to Roman and Phoenicianperiods. Significant interest in IPB did not re-emerge until the 1800s following the successful extractionof Cu, resulting in over 60 mines operating by 1900. The Rio Tinto Company was formed in 1873 tooperate these mines. The discovery of the Neves Corvo deposit in 1977, renewed exploration interestin the region, which ultimately led to the discovery of the mineralisation associated with the AguasTeñidas mine and re-opening of the Sotiel Mine in 1983.
•The Calañesa deposit is the oldest known deposit in the mine area. The deposit was first mined in theRoman period; however, the oldest records referencing exploration and mining are from 1886 by theCompagnie des Mines de Cuivre d Aguas Teñidas, who operated the mine until the end of the 19thCentury. It was later mined in 1916 by Huelva Copper Company until 1934. Since this time, most of theexploration in relation to the Calañesa deposit has been surface drilling by MATSA, the majority ofwhich was completed in 2018, except for the exploration conducted by Billiton during the 1980s. Billiton

JORC Code Assessment Criteria Comment
relinquished the property in 1990. Placer Dome subsequently acquired the project and between 1991and 1994 drilled the deposit and built on Billiton's previous work. Navan then acquired the projectbetween 1995 and 2000 and, in 1995, acquired the mining rights for the Aguas Teñidas and WesternExtension deposit. In April 1997, Navan acquired Almagrera SA from the Spanish government. Thisoperation comprised the Sotiel underground mine, a mineralprocessing complex (at Sotiel mine) forCu, Zn, and Pb, and anacid plant.•The Castillejito deposit was discovered by RioMin in 1998 via gravimetric survey.•Magdalena deposit was discovered by MATSA in September 2011.•The Sotiel mine comprises the Sotiel, Sotiel East, Migollas, Elvira, and Calabazar deposits. There islimited information available on the historical exploration and mining previously conducted at the mine.
Geology •The MATSA deposits are all interpreted to be volcanogenic massive sulphide, or VMS, deposits, and
Deposit type, geological setting and style of mineralisation. sedimentary hosted massive sulphide deposits. VMS deposits are predominantly stratiformaccumulations of sulphide minerals that precipitate from upwelling hydrothermal fluids associated withmagmatism on or below the seafloor in a wide range of geological settings.SHMS deposits are similarto VMS deposits but are formed by fluid mixing in permeable sedimentary rocks and generally lack theabundance of volcanics/magmatism.•Aguas Teñidas and Magdalena mines are characterised as a bi-modal felsic VMS deposit based uponthe mineralogy, geological setting and gemoetry/size.•Sotiel is characterised as a sedimentrary hosted massive sulphide deposit (SHMS)based upon the
mineralogy, geological setting/size.
Drill hole information •No Exploration Results have been reported in this release. This criterion is not relevant to this report on
A summary of all information material to the understanding ofthe exploration results including a tabulation of the followinginformation for all Material drill holes: Mineral Resources.
•Easting and northing of the drill hole collar
•Elevation or rl(reduced level –elevation above sea levelin metres) of the drill hole collar
•Dip and azimuth of the hole
•Downhole length and interception depth

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•Hole length.If the exclusion of this information is justified on the basis thatthe information is not Material and this exclusion does notdetract from the understanding of the report, the CompetentPerson should clearly explain why this is the case.
Data aggregation methods •No Exploration Results have been reported in this release. This criterion is not relevant to this report on
In reporting Exploration Results, weighting averagingtechniques, maximum and/or minimum grade truncations (e.g.,cutting of high grades) and cut-off grades are usually Materialand should be stated. Mineral Resources.
Where aggregate intercepts incorporate short lengths of highgrade results and longer lengths of low grade results, theprocedure used for such aggregation should be stated andsome typical examples of such aggregations should be shownin detail.
The assumptions used for any reporting of metal equivalentvalues should be clearly stated.
Relationship between mineralisation widths and interceptlengths •No Exploration Results have been reported in this release. This criterion is not relevant to this report onMineral Resources.
These relationships are particularly important in the reportingof Exploration Results.
If the geometry of the mineralisation with respect to the drillhole angle is known, its nature should be reported.
If it is not known and only the downhole lengths are reported,there should be a clear statement to this effect (e.g., 'downholelength, true width not known').

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DiagramsAppropriate maps and sections (with scales) and tabulations ofintercepts should be included for any significant discoverybeing reported These should include, but not be limited to aplan view of drill hole collar locations and appropriate sectionalviews. •No Exploration Results have been reported in this release. This criterion is not relevant to this report onMineral Resources.
Balance reportingWhere comprehensive reporting of all Exploration Results isnot practicable, representative reporting of both low and highgrades and/or widths should be practiced to avoid misleadingreporting of Exploration Results. •No Exploration Results have been reported in this release. This criterion is not relevant to this report onMineral Resources.
Other substantive exploration dataOther exploration data, if meaningful and material, should bereported including (but not limited to): geological observations,geophysical survey results, geochemical survey results, bulksamples –size and method of treatment, metallurgical testresults, bulk density, groundwater, geotechnical and rockcharacteristics, potential deleterious or contaminatingsubstances. •No Exploration Results have been reported in this release. This criterion is not relevant to this report onMineral Resources.

JORC Code Assessment Criteria Comment
Further workThe nature and scale of planned further work (e.g.,tests forlateral extensions or depth extensions or large-scale step-outdrilling).Diagrams clearly highlighting the areas of possible extensions,including the main geological interpretations and future drillingareas, provided this information is not commercially sensitive.Section 3 Estimation and Reporting of Mineral Resources •MATSA is carrying out Brownfield exploration around its mines and Greenfield exploration programs inSpain and Portugal.
Database integrityMeasures taken to ensure that data has not been corrupted by,for example, transcription or keying errors, between its initialcollection and its use for Mineral Resource estimationpurposes.Data validation procedures used. •The databases were directly exported from the master Geobank (Micromine) database, as managed byMATSA geologists. The following drillhole data was included:Collars including collar co-ordinates, hole lengths, date drilled, etc.Downhole surveys.Lithology.Specific gravity samples (density).Sample assay intervals.•GeoEstima completed a phase of data validation on the digital sample data supplied by the Company,and previous owners of the mines, from their Geobank (Micromine) database which included thefollowing:Search for sample overlaps, duplicate or absent samples;Checks for anomalous assay results;Checks for incorrect or irregular survey results; andSearch for non-sampled drillhole intervals within the mineralised zones.
Site visitsComment on any site visits undertaken by the CompetentPerson and the outcome of those visits.If no site visits have been undertaken indicate why this is thecase. •A site visit has been undertaken by Competent Person between April 25 to 28, 2022. The visit includedthe following inspections:The Core shed and MATSA Internal laboratory facilities, Aguas Teñidas and Magdalena mines;The process plant; andA set of representatives drillhole cores was reviewed with the resource and exploration geologistsin order to discuss the main geological features of deposit. Ore control process was reviewed andseveral meetings with key ore control geologists, mine geologists, resources geologists, mineplanning engineers and metallurgists were held.

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Geological interpretationConfidence in (or conversely, the uncertainty of) the geologicalinterpretation of the mineral deposit.Nature of the data used and of any assumptions made.The effect, if any, of alternative interpretations on MineralResource estimation. The use of geology in guiding andcontrolling Mineral Resource estimation.The factors affecting continuity both of grade and geology. •The primary control of mineralisation is well known, but confidence in the geological interpretationvaries locally and is dependent on the spacing of drilling of which varies throughout the deposit.•The geological model of Aguas Teñidas Mine includes the Aguas Teñidas, Western Extension,Calañesa, San Pedro and Castillejito deposits. The geological model of Magdalena mine includes Masa1, Masa 2, Masa Gold, Masa Olivo and Masa Gold Norte deposits, andthe geological model of SotielMine includes Sotiel, Sotiel East, Migollas, Calabazar, and Elvira deposits in a single model.•Matsageologists develop the geological models for each mine in Leapfrog Geo software, primarilyusing the vein tool to delineate mineralisation boundaries. For each deposit the geological wireframesare grouped as massive or semi-massive sulphides (MS/SMS), mineralised stockwork (SW Grade),stockwork (SW Lith) and halo units. Each project is supported in Central software, and is versioncontrolled.•All available geological logging data from diamond core are used for the interpretations.•The geological interpretation of mineralised boundaries is considered robust and alternativeinterpretations do not have the potential to impact significantly on the Mineral Resources.•The interpreted mineralisation boundaries are used as hard boundaries during the Mineral Resourceestimation, domains are intrinsically related to the geology.•The massive sulphides and cupriferous stockwork mineralisation are controlled by tabular lens shapedbodies which are typically strata bound and or structurally controlled to varying degrees.
DimensionsThe extent and variability of the Mineral Resource expressedas length (along strike or otherwise), plan width, and depthbelow surface to the upper and lower limits of the MineralResource. •Polymetallic mineralisation in Aguas Teñidas mine is related to four tabular lens shaped bodies.Together Aguas Teñidas and Western Extension extend from approximately 270m to 890m belowsurface. Mineralisation extends for 3,000m along west-east strike, dipping 80⁰to the north. Thecumulative total true width of mineralisation ranges from 10m to 80m. Calañesa is a smaller tabular lensextending from approximately 100m below the surface. Mineralisation extends for 400m along westeast strike, dipping 60⁰tothe south. The cumulative total true width of mineralisation ranges from 1m to4m. Castillejito is composed of two tabular lenses with synclinal shape extending from approximately100m below the surface located to the North of Aguas Teñidas. Mineralisation extends for 750m alongWest-East strike, dipping 68⁰to the north. The cumulative total true width of mineralisation ranges from10m to 50m

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•Polymetallic mineralisation in Magdalena mine is related to tabular lens shaped bodies extending fromapproximately 100m to 830m below surface. Mineralisation extends for 2,000m along West-East strike,dipping 70⁰to the north. The cumulative total true width of mineralisation ranges from 3m to 70m.
•Polymetallic mineralisation in Sotiel mine is related to four tabular lenses shaped bodies extending fromapproximately 200m to 400m below surface. Mineralisation extends discontinuously; Calabazar andSotiel extend 600m along a 60°E strike, dipping 40⁰to the northwest. The cumulative total true width ofmineralisation ranges from 3m to 30m; Migollas extends 250m along 60°E strike, dipping 40⁰to thenorthwest. The cumulative total true width of mineralisation ranges from 3m to 20m; Elvira extends400m along 60°E strike, dipping 40⁰to the northwest. The cumulative total true width of mineralisationranges from 10m to 40m.
•Polymetallic mineralisation in Castillo-Buitrón is composed of two east-west oriented tabular lensoutcropping to surface, dipping 70° to the north: Poniente and Levante. The former extends for 170malong strike and 300m in depth, with thickness from 5m to20m, and the latter extends for 90m alongstrike and 200m in depth, with thickness ranging from 5m to 12m.
•Polymetallic mineralisation in Concepción is related to east-west oriented tabular lens outcropping tothe surface, dipping 67° to the north. It currently extends for 500m along strike and 700m in depth, withthickness ranging from 5m to 50m (higher thickness is reached in the upper part were two lenses runparallel).
•Polymetallic mineralisation in Poderosa is composed of two parallel East-West oriented tabular lenses,recognisable from 200m below surface. Mineralisation extends for 250m along strike, 750m in depthwith thickness ranging from 5m to 38m.

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JORC Code Assessment Criteria Comment
Estimation and modelling techniquesThe nature and appropriateness of the estimation technique(s)applied and key assumptions, including treatment of extremegrade values, domaining, interpolation parameters, and •Multivariate data analysis shows high degree of correlation between Cu and Bi; between Zn, Ag, Pb, Hgand Sb; and between F and S. There is not a clear correlation between Cu and Zn. This analysis wasconsidered as initial driver in the grade estimation process.
maximum distance of extrapolation from data points. If acomputer assisted estimation method was chosen include adescription of computer software and parameters used. •Domains for Cu and Bi estimates were defined within Cu mineralisation wireframes, in some cases,these bodies were divided into sub-zones to define domains of high and low-grade Cu.
The availability of check estimates, previous estimates and/or •Different divisions into sub-zones to define domains of high and low-grade zinc were applied. Withinthese domains Zn, Ag, Pb, Hg and Sb were estimated.
mine production records and whether the Mineral Resourceestimate takes appropriate account of such data. •The majority of samples were composited to 4m in length, in few cases to 2m in length using domainwireframes as restriction.
The assumptions made regarding recovery of by-products. •The original Cu mineralisation domains were used for Au, As, Fe, S and density estimates.
Estimation of deleterious elements or other non-gradevariables of economic significance (e.g.,sulphur for acid minedrainage characterisation). •Grade estimation technique applied for estimation within Cu, Zn and mineralisation domains wasordinary kriging (OK) for all variables Cu, Bi, Zn, Ag, Pb, Hg, Fe, S, density, and most part of domains.Only in a few domains, where data was scarce, Inverse Distance Squared (IDW2) was applied.
In the case of block model interpolation, the block size inrelation to the average sample spacing and the searchemployed. •Analysis suggests that a stationarity assumption is reasonable for the style of deposit and linearestimation of grades. Variograms are bounded and well structured. Variograms were fitted for alldomains independently. In some domains variograms model werefitted on transformed data.
Any assumptions behind modelling of selective mining units.Any assumptions about correlation between variables. •Top cuts were applied to isolated high-grade composites prior to estimation where applicable based onreview of histograms, disintegration analysis and statistical analysis of composites. Distance based topcuts were also used to limit the influence of isolated high-grade composites.
Description of how the geological interpretation was used tocontrol the resource estimates. •The search ellipsoid was settled in three nested neighbourhood and is constrained by the optimumnumber of samples to ensure data used to estimate blocks. Searching with local orientation was appliedbased on a reference surface interpreted for each mineralised solid.
Discussion of basis for using or not using grade cutting orcapping. •Mineral Resource estimation was completed with Leapfrog Edge software.
The process of validation, the checking process used, the •Silver, gold, and lead has been estimated as a by-product within the MATSA deposits.
comparison of model data to drill hole data, and use ofreconciliation data if available. •Estimates include deleterious or penalty elements As, Bi, Hg, and Sb.

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JORC Code Assessment Criteria Comment
•No selective mining units are assumed in this estimate.
•There are correlations between Cu and Bi; between Zn, Ag, Pb, Hg and Sb; and between F and S.There is not a correlation between Cu and Zn.
•The block model is assigned unique domain codes matching the corresponding domain codes definedby mineralisation wireframes. Wireframes are then used as hard boundaries during interpolation whereblocks are estimated only with composites having the corresponding domain code.
•Top cuts were applied to isolated composites prior to estimation where applicable based on review ofhistograms, probability plots, deciles, and statistical analysis.
•The process of validation includes standard model validation using visual and numerical methods:
The block model estimates are checked visually against the input composite/drillhole data.Swath plots of the estimated block grades and composite mean grades are generated by eastings,northings and elevations and reviewed to ensure acceptable correlation.Global statistical comparisons of mean estimated block grades to mean composite grades.
MoistureWhether the tonnages are estimated on a dry basis or withnatural moisture, and the method of determination of themoisture content. •Tonnages are estimated on a dry basis.

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Cut-off parametersThe basis of the adopted cut-off grade(s) or quality parametersapplied. •Polymetallic mineralisation suggests using NSR to value resources. NSRs has been calculated basedon metallurgical information obtained from cumulative process plant experience and on Sandfire's longterm metal price projections.
•NSR cut-offs were calculated considering mining and plant costs different for each mine (AguasTeñidas, Magdalena, and Sotiel).
•NSRs are defined by ore type: Polymetallic ore and Cupriferous ore.
•Mineral Resources are estimated at the following NSR cut-off:
Magdalena: US$43/tAguas Teñidas and projects: US$45/tSotiel: US$46/t
•Mineral Resources are estimated using the following long-term prices:
Cu US$9,780/tZn US$3,250/tPb US$2,090/t
  • Ag US$23.0/oz
  • Cu recovery for Polymetallic ranged between 40% and 79%, for Cupriferous ranged between 50% and 92% and for Stockwork ranged between 85% and 92%.
  • Zn recovery for Polymetallic ranged between 45% and 83%.
  • Pb recovery for Polymetallic ranged between 25% and 50%.
  • Mining factors or assumptions Mineral Resource potentially can be economically mined by underground mining methods. It is assumed any of the current mining method used by MATSA can be used (Aguas Teñidas and Magdalena are mined for transverse and longitudinal sub-level, longhole open stoping. At the Sotiel mine, a modified long hole stoping approach is employed). • The NSR value is computed for each mine using metal prices (Cu, Zn, Pb, Ag) greater than the prices used for Life of Mining planning to evaluate the proportions of the block model that could assure "reasonable prospects for eventual economic extraction." Assumptions made regarding possible mining methods, minimum mining dimensions and internal (or, if applicable, external) mining dilution. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider potential mining methods, but the assumptions made regarding mining methods and parameters when estimating Mineral Resources may not always be rigorous. Where this is

JORC Code Assessment Criteria Comment
the case, this should be reported with an explanation of thebasis of the mining assumptions made.
Metallurgical factors or assumptionsThe basis for assumptions or predictions regardingmetallurgical amenability. It is always necessary as part of theprocess of determining reasonable prospects for eventualeconomic extraction to consider potential metallurgicalmethods, but the assumptions regarding metallurgicaltreatment processes and parameters made when reportingMineral Resources may not always be rigorous. Where this isthe case, this should be reported with an explanation of thebasis of the metallurgical assumptions made. •Mineral Resources are estimated assuming that these will be processed in the Aguas Teñidasprocessing plant. This plant has two separate processing streams, a polymetallic and a copperprocessing stream, which are used to produce concentrates. The polymetallic mineralisation streamprocesses polymetallic massive sulphide material, whereas the copper mineralisation stream processesmineralisation stemming from stockwork material and cupriferous massive sulphides.
Environmental factors or assumptionsAssumptions made regarding possible waste and processresidue disposal options. It is always necessary as part of theprocess of determining reasonable prospects for eventualeconomic extraction to consider the potential environmentalimpacts of the mining and processing operation. While at thisstage the determination of potential environmental impacts,particularly for a greenfields project, may not always be welladvanced, the status of early consideration of these potentialenvironmental impacts should be reported. Where theseaspects have not been considered this should be reported withan explanation of the environmental assumptions made. •Capacity exists within current approvals to accommodate waste rock and tailings for the remainingMineral Resource in the existing facilities at MATSA.•With the reopening of the mine in 2013, MATSA has recovered old waste dumps (environmentalrehabilitation) in areas degraded by historical mining activity. These dumps may be used to fill the Sotielmine stopes in the future.

JORC Code Assessment Criteria Comment
Bulk densityWhether assumed or determined. If assumed, the basis forthe assumptions. If determined, the method used, whether wetor dry, the frequency of the measurements, the nature, sizeand representativeness of the samples.The bulk density for bulk material must have been measuredby methods that adequately account for void spaces (vugs,porosity, etc.), moisture and differences between rock andalteration zones within the deposit.Discuss assumptions for bulk density estimates used in theevaluation process of the different materials. ••••water)].•Fe.•• Density measurements have been taken for all main rock types intersected in each drillhole. This wascompleted by weighing a piece of core in air and then determining the core volume by displacement ofwater. The MATSA geologists typically select intact drill core which are between 5cm or 10cm in lengthfor density analysis.In mineralised zones three density measures are averaged for a sampling support of 2m in length.In the case of barren rocks sampling is performed every 15m to 20m for density measurement.The weight of the dry sample is initially determined using bench mounted electronic scales, beforebeing submerged in water to determine the submerged weight. The following equation has then beenapplied by MATSA to determine the dry density: Density = weight (in air) / [weight (in air) –It should be noted that MATSA does not coat drill cores with wax as pore space (vugs/fractures) are nottypically an issue according to MATSA. There is a strong correlation between specific gravity and S andNo assumptions for bulk density were made.Density is estimated using OK or IDW2 within the Cu domains. Density is also estimated in wasteblocks around the Cu domains. weight (in
ClassificationThe basis for the classification of the Mineral Resources intovarying confidence categories.Whether appropriate account has been taken of all relevantfactors, i.e.,relative confidence in tonnage/grade estimations,reliability of input data, confidence in continuity of geology andmetal values, quality, quantity and distribution of the data.Whether the result appropriately reflects the CompetentPerson(s)' view of the deposit. ••ClassMeasuredIndicated The classification criteria are based on drillhole spacing that consider the style of mineralisation and theselectivity of the mining method in three mines of MATSA.MATSA has been employing these distances to drillhole criteria for several years and find that theyreconcile appropriately (based on Resource classification) to observations and results from mining.Aguas Teñidas,WesternExtension,Calañesa<20 m<40m Castillejito<20 m<40m Magdalena<=25m<=50m Sotiel<=20 m<=40m CastilloBuitrón<40m Concepción<40m Poderosa
Inferred >40m >40m >50m >40m >40m >40m only inferred

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•The Mineral Resource estimation appropriately reflects the Competent Person's view of the deposit.
Audits or reviewsThe results of any audits or reviews of Mineral Resourceestimates. •RSC Consulting conducted an external audit on the Mineral Resource. The audit has not found anyfatal flaws with the Mineral Resource estimates and concluded that the underlying processes related tothe generation and declaration of the resource reflect good practice.
•The Mineral Resource estimates have been reviewed internally by qualified Sandfire personnel and areconsidered fit for purpose.

JORC Code Assessment Criteria Comment
Discussion of relative accuracy/confidenceWhere appropriate a statement of the relative accuracy andconfidence level in the Mineral Resource estimate using anapproach or procedure deemed appropriate by the CompetentPerson. For example, the application of statistical orgeostatistical procedures to quantify the relative accuracy ofthe resource within stated confidence limits, or, if such anapproach is not deemed appropriate, a qualitative discussionof the factors that could affect the relative accuracy andconfidence of the estimate.The statement should specify whether it relates to global orlocal estimates, and, if local, state the relevant tonnages,which should be relevant to technical and economicevaluation. Documentation should include assumptions madeand the procedures used.These statements of relative accuracy and confidence of theestimate should be compared with production data, whereavailable. •The accuracy and confidence level in the Mineral Resource estimate is commensurate with that impliedby the classification.•The classification criteria take intoaccount mining experience of MATSA in this type and style ofmineralisation.•The Mineral Resource is derived from a block model that is deemed appropriate to have sufficient localaccuracy to be useful for mine planning decisions.•Factors that affect accuracy and confidence include:The accuracy of the interpreted position of mineralised domain boundaries.Estimated block grades being smoother than true grades, due to OK having been used as theinterpolation method.
Section 4 Estimation and Reporting of Ore Reserves
Mineral Resource estimate for conversion to Ore ReserveDescription of the Mineral Resource estimate used as a basisfor the conversion to an Ore Reserve.Clear statement as to whether the Mineral Resources arereported additional to, or inclusive of, the Ore Reserves. •The reported Ore Reserves for the Aguas Teñidas (ATE), Magdalena (MGD) and Sotiel (SOT)operations are based on the six block models which formed the basis of the Mineral Resourceestimates.•The effective date of both the Mineral Resource and Ore Reserve statements is 31 March 2024.Mineral Resources and Ore Reserves incorporate depletion by MATSA up to 31 March 2024.•Measured and Indicated Mineral Resources are inclusive of those Mineral Resources modified toproduce the Ore Reserves.
Site visits •The Competent Person for this Ore Reserve statement is a full-time employee of Sandfire MATSA and
Comment on any site visits undertaken by the CompetentPerson and the outcome of those visits.If no site visits have been undertaken indicate why this is thecase. is based at the Aguas Teñidas Operations Complex in Almonaster La Real, Spain.

JORC Code Assessment Criteria Comment
Study statusThe type and level of study undertaken to enable MineralResources to be converted to Ore Reserves.The Code requires that a study to at least Pre-Feasibility Studylevel has been undertaken to convert Mineral Resources toOre Reserves. Such studies will have been carried out and willhave determined a mine plan that is technically achievable andeconomically viable, and that material Modifying Factors havebeen considered. •MATSA has been in commercial operation since 2009. Aguas Teñidas from 2009, Magdalena from2015 and Sotiel from 2014. It is noted that both Aguas Teñidas and Sotiel mines have prior historicmining activity pre MATSA.•The Modifying Factors used in the conversion of Mineral Resources to Ore Reserves are based oncurrent and historic MATSA operating experience.
Cut-off parametersThe basis of the cut-off grade(s) or quality parameters applied •An NSR cut-off value approach is applied for each stope or development block, with each valuecalculated according to the ore type, metal grades, metallurgical recoveries, realisation costs, transportcosts, forecast metal prices and the payability of each metal according to offtake agreements. NSRvalues are estimated for individual blocks into each respective mineral resource block model. Keyparameters applied are as follows:
Long term real commodity prices: Cu US$8,150/t, Zn US$2,600/t, Pb US$1,900/t, Ag US$20.0/ozExchange rate: EUR/USD 1.18Process plant recoveries are estimated from material type grade recovery curves and applied bymine, material type and concentrate product:
Polymetallic: Aguas Teñidas and Magdalena –Zn (67-83%), Cu (50-79%), Pb (25-50%).Polymetallic: Sotiel -Zn (45-71%), Cu (40-75%), Pb (25-36%).
Copper: Aguas Teñidas, Magdalena and Sotiel –Cu (50-92%).Copper stockwork: Aguas Teñidas and Magdalena –Cu (85-92%).Metal payability, penalties, realisation costs, shipping costs are based on current offtakeagreements for the various concentrates.
Mine to port logistic costs are based on current road transport contract pricing.•NSR cut-off values used, development incremental through to full cost, is dependent on the status ofdevelopment access and are derived from Life of Mine costs:Development COV (US$/t ore): ATE=20, MGD=20, SOT=19Incremental COV (US$/t ore): ATE=55, MGD=53, SOT=49Opex COV (US$/t ore):ATE=68, MGD=67, SOT=65Opex+Capex COV (US$/t ore): ATE=77, MGD=74, SOT=73

JORC Code Assessment Criteria Comment
Mining Factors or assumptionsThe method and assumptions used as reported in the PreFeasibility or Feasibility Study to convert the Mineral Resourceto an Ore Reserve (i.e. either by application of appropriate •The Ore Reserve has been estimated using accepted industry practices for underground minesincluding stope optimisation analysis (Deswik), mine design, mine scheduling and the development of acash flow model incorporating the Company's technical and economic projections for the mine for theduration of the Life of Mine Plan (LoMP).
factors by optimisation or by preliminary or detailed design).The choice, nature and appropriateness of the selected miningmethod(s) and other mining parameters including associateddesign issues such as pre-strip, access, etc. •The primary underground mining method approach at the three mines is sub-level long-hole openstoping(LHOS) with transverse and longitudinal orientation depending on orebody thickness. Stopevoids at Aguas Teñidas and Magdalena are backfilled with paste fill. Sotiel uses a combination ofunconsolidated development waste and cemented rock fill (CRF). Drift and Fill (D&F) mining is plannedin a small zone of the Aguas Teñidas orebody around and above previously mined out stopes. Themining methods selected are considered appropriate for the respective mines and orebodies.
The assumptions made regarding geotechnical parameters(e.g. pit slopes, stope sizes, etc.), grade control and preproduction drilling. •Stopes to be mined in the short term are assessed on an individual basis using all related local mining,geological and geotechnical experience to date. This includes data gathered from back-analysis ofstopes mined to date in adjacent or similar areas. Stopes to be mined in the medium to long termemploy geotechnical parameters derived from area mining experience, diamonddrilling core and
The major assumptions made and Mineral Resource modelused for pit and stope optimisation (if appropriate).The mining dilution factors used. geotechnical mapping of the excavations nearby.•The 31 March 2024 Mineral Resource models were used as the basis for stope and developmentdesign. No modifications were made to this model for mine design purposes apart from the addition ofblock NSR value estimates and the Oretype field which was renamed RESO.
The mining recovery factors used.Any minimum mining widths used. •Ore Reserves have been estimated by generating detailed mining shapes for all areas that containMeasured or Indicated Mineral Resources as well as access development. Internal stope dilution hasbeen designed into the mining shapes and interrogated. External stope dilution and mining recoveryfactors have been applied post geological block model interrogation to generate final mining diluted and
The manner in which Inferred Mineral Resources are utilised inmining studies and the sensitivity of the outcome to theirinclusion. recovered ore tonnage and grade. External dilution and mining recovery factors:External dilution:−Aguas Teñidas (%): 12, ASW and AEW 14−Magdalena (%):12, M2E 13, M2G 14−Sotiel (%):SCL and SOM 16, SEL 10, SOE and SOT 14
The infrastructure requirements of the selected miningmethods Mining Recovery:−Aguas Teñidas (%): 93, ASW and AEW 91, ADF LH 90, ATE and ADF 50−Magdalena (%):93−
Sotiel (%):93, SOE 92, SOT 90.•A minimum mining width of 4.0 m is used based on the nature of the deposits and the equipment fleetemployed.

JORC Code Assessment Criteria Comment
•Ore Reserves contain approximately 118kt of Inferred Mineral Resource which equates to 0.3% of thereported total. Economic impact is considered negligible.
•The operating mines at MATSA have all the required infrastructure in place that is required to servicethe selected mining methods.
Metallurgical factors or assumptions •MATSA has a central processing facility located at Aguas Teñidas that treats ore from all three mines
The metallurgical process proposed and the appropriatenessof that process to the style of mineralization. and has a nominal capacity of 4.7Mtpa. It comprises two processing plants which contain two crushinglines and three processing lines that produce copper, zinc and lead concentrates that are blended
Whether the metallurgical process is well-tested technology ornovel in nature. on‑site prior to transport to the port of Huelva. The processing lines have been designed to processboth Cupriferous and Polymetallic ores and can be reconfigured depending on ore availability andblend. Cupriferous is defined as Zn<2.5% and Cu/Zn>1.7 with the remainder defined as Polymetallic.The metallurgical process is well tested technology.
The nature, amount and representativeness of metallurgicaltest work undertaken, the nature of the metallurgical domainingapplied and the corresponding metallurgical recovery factors •The metallurgy is well understood at MATSA with projected process recoveries based on the OreReserve mine schedule and empirical models. Process plant recoveries are estimated from materialtype grade recovery curves and applied by mine, material type andconcentrate product:
applied. Polymetallic: Aguas Teñidas and Magdalena –Zn (67-83%), Cu (50-79%), Pb (25-50%)
Any assumptions or allowances made for deleterious Polymetallic: Sotiel –Zn (45-71%), Cu (40-75%), Pb (25-36%)
elements. Copper: Aguas Teñidas, Magdalena, Sotiel –Cu (50-92%)
Copper stockwork: Aguas Teñidas and Magdalena –Cu (85-92%)
The existence of any bulk sample or pilot scale test work andthe degree to which such samples are consideredrepresentative of the orebody as a whole. •Deleterious elements are accounted for by a combination of onsite ore blending and concentrateblending to maximise concentrate value.
For minerals that are defined by a specification, has the OreReserve estimation been based on the appropriate mineralogyto meet the specifications?
Environmental •The existing Tailings Management Facility (TMF) is expected to reach its full capacity in H1 of CY26,
The status of studies of potential environmental impacts of the with decommissioning operations to be completed by the end of CY26.
mining and processing operation. Details of waste rockcharacterisation and the consideration of potential sites, statusof design options considered and, where applicable, the statusof approvals for process residue storage and waste dumpsshould be reported. •Plans for a TMF replacement are well advanced. The project was presented to authorities 28 November2022. After approval, the 1st phase of construction will be at least one year and is scheduled to begin inH1 CY25 and be completed in H1 CY26, in time before the existing TMF reaches capacity.

JORC Code Assessment Criteria Comment
InfrastructureThe existence of appropriate infrastructure: availability of landfor plant development, power, water, transportation(particularly for bulk commodities), labour, accommodation; orthe ease with which the infrastructure can be provided oraccessed. •MATSA has been operating for several years and as such the infrastructure required to facilitate miningand processing operations are in place and fit for current purposes. Planned replacement of equipmentto sustain operations is considered and captured under the mine capital plan.•The power generation mix and supply in Spain is such that power supply is considered low risk. MATSAhas entered into long-term power contracts that provide multi-year access to fixed price, carbonemissions free energy. MATSA is also assessing medium and longer-term renewable energy initiatives.
Costs •Capital costs are generally limited to that required to sustain the operation and are based on current
The derivation of, or assumptions made, regarding projectedcapital costs in the study. contracts and quotes and forward projections.
The methodology used to estimate operating costs. •Operating costs are based on historical averages, current contracts, and forward projections.•Current offtake agreements for copper, zinc and lead concentrates provide the basis for downstreamcost estimation.
Allowances made for the content of deleterious elements. •Exchange rates are based on consensus forecasts and vary over the life of the mine.
•Land freight is based on existing contracts and forward projections.
The source of exchange rates used in the study. •No royalties are payable.
Derivation of transportation charges.
The basis for forecasting or source of treatment and refiningcharges, penalties for failure to meet specification, etc.
The allowances made for royalties payable, both Governmentand private
Revenue Factors

JORC Code Assessment Criteria Comment
The derivation of, or assumptions made regarding revenuefactors including head grade, metal or commodity price(s)exchange rates, transportation and treatment charges,penalties, net smelter returns, etc.The derivation of assumptions made of metal or commodityprice(s), for the principal metals, minerals and co-products •Commodity prices are based on consensus forecasts and vary over the life of the Ore Reserve. Thelife-of-mine average values are:Copper (US$/t): 8,344Zinc (US$/t):2,555Lead (US$/t):1,942Silver (US$/oz): 21.3•The exchange rate is based on consensus forecasts and vary over the life of the Ore Reserve. Thelife‑of‑mine average value is:EUR/USD: 1.16•Current offtake agreements for copper, zinc and lead concentrates provide the basis for revenue factorderivation.
Market assessment •MATSA has life of mine offtake agreements for the sale of copper, zinc and lead concentrates.
The demand, supply and stock situation for the particularcommodity, consumption trends and factors likely to affectsupply and demand into the future.A customer and competitor analysis along with theidentification of likely market windows for the product.Price and volume forecasts and the basis for these forecasts.For industrial minerals the customer specification, testing andacceptance requirements prior to a supply contract. •Pricing is fundamentally on value of contained metals the main metals being copper and zinc and leadand silver credits.•To set the price of metals (Copper, Zinc, and Lead), the current market behaviour and future demandforecasts have been analyzed. Multiple data from independent sources have been used, such as:Supply and Demand Analysis (WoodMac); Multi-source price surveys (Consensus Economics); andPeer Company Assumptions for Estimating Mineral Resources and Ore Reserves.
Economic •MATSA is an operating mining complex with a focus on operating cash margins. The mine plan and
The inputs to the economic analysis to produce the net presentvalue (NPV) in the study, the source and confidence of theseeconomic inputs including estimated inflation, discount rate,etc.NPV ranges and sensitivity to variations in the significantassumptions and inputs. schedule created specifically for the Ore Reserves provides positive cash margins in all years whenmodifying factors outlined are applied.•NPV (8%) sensitivity analysis shows the Ore Reserve to be most sensitive to copper price and exchangerate followed by operating costs then zinc price. The project remains NPV positive with unfavourableindividual movements up to 20% in each of the significant drivers.

JORC Code Assessment Criteria Comment
SocialThe status of agreements with key stakeholders and mattersleading to social licence to operate. •MATSA is an operating mining complex, and all agreements are in place and are current with all keystakeholders.•MATSA has a well-established framework to manage social responsibility. The frameworkencompasses MATSA employees, local communities and global society and trading partners.
OtherTo the extent relevant, the impact of the following on theproject and/or on the estimation and classification of the OreReserves:Any identified material naturally occurring risks.The status of material legal agreements and marketingarrangements.The status of governmental agreements and approvals criticalto the viability of the project, such as mineral tenement status,and government and statutory approvals. There must bereasonable grounds to expect that all necessary Governmentapprovals will be received within the timeframes anticipated inthe Pre-Feasibility or Feasibility study. Highlight and discussthe materiality of any unresolved matter that is dependent on athird party on which extraction of the reserve is contingent. •MATSA currently holds all key mining exploitation concessions and environmental permits for carryingout its business at the three operating mining sites, plant operations and supporting infrastructure forlife of the Ore Reserve except for the above-mentioned TMF replacement in which the permittingprocess is currently underway.•Diesel particle management strategies are under development to align with an EU directive thatrequires compliance by 2026.
ClassificationThe basis for the classification of the Ore Reserves intovarying confidence categories.Whether the result appropriately reflects the CompetentPerson's view of the deposit.The proportion of Probable Ore Reserves that have beenderived from Measured Mineral Resources (if any). •Ore Reserves have been derived from a mine plan that is based on extracting the 31 March 2024Measured and Indicated Mineral Resources. Ore Reserves are initially derived from development andstope designs that are evaluated against Mineral Resources. Designs do not inherently honour mineralresource classification boundaries therefore designs contain multiple mineral resource classificationmaterial types. Proved Ore Reserves have been derived from designs that contain greater than 50%Measured Mineral Resources. Probable Ore Reserves have been derived from designs thatcontaingreater than 50% Indicated Mineral Resources and less than 50% Measured Mineral Resources.•Probable Ore Reserves contain 3.3 Mt of Measured Mineral Resources.•Final classification is set after considering all relevant modifying factors.•The underground Ore Reserve classification appropriately reflects the competent person's view of thedeposit.

JORC Code Assessment Criteria Comment
Audits or reviewsThe results of any audits or reviews of Ore Reserve estimates. •Ore Reserves have been compiled by MATSA and reviewed by Sandfire Technical Services.
Discussion of relative accuracy/ confidenceWhere appropriate a statement of the relative accuracy andconfidence level in the Ore Reserve estimate using anapproach or procedure deemed appropriate by the CompetentPerson. For example, the application of statistical orgeostatistical procedures to quantify the relative accuracy ofthe reserve within stated confidence limits, or, if such anapproach is not deemed appropriate, a qualitative discussionof the factors which could affect the relative accuracy andconfidence of the estimate.The statement should specify whether it relates to global orlocal estimates, and, if local, state the relevant tonnages,which should be relevant to technical and economicevaluation. Documentation should include assumptions madeand the procedures used.Accuracy and confidence discussions should extend to specificdiscussions of any applied Modifying Factors that may have amaterial impact on Ore Reserve viability, or for which there areremaining areas of uncertainty at the current study stage.It is recognised that this may not be possible or appropriate inall circumstances. These statements of relative accuracy andconfidence of the estimate should be compared withproduction data, where available. •The Ore Reserve for MATSA has been estimated using accepted industry practices for undergroundmines, including stope optimisation analysis (Deswik), mine design, mine scheduling and thedevelopment of a cash flow model incorporating the Company's technical and economic projections forthe mine for the life of the Ore Reserve.•There has been an appropriate level of consideration given to all modifying factors, which areestablished from established operating mines, to support the declaration and classification of OreReserves.•Ore Reserves with a lower NSR unit value are more sensitive to changes in the main economicparameters therefore have a higher ore reserve risk.

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