Capricorn Metals Unveils Mount Gibson Gold Project PFS with 260,000 Ounces Annual Output and A$6.1 Billion NPV

Resource and Reserve Expansion Supports 260,000 Ounce Annual Production Goal

Capricorn Metals’ updated PFS demonstrates significant growth in mineral resources and ore reserves underpinning the Mount Gibson Gold Project. The updated Mineral Resource totals 188.9 million tonnes at 0.9 g/t gold, equating to 5.67 million ounces—a 20% increase from 2025 estimates. This growth is driven by underground drilling and delineation over the past two years, with underground resources now comprising 9.6 million tonnes at 2.9 g/t for 886,000 ounces. The company emphasized that underground drilling remains in early stages, indicating further resource expansion potential.

The Ore Reserve has grown 34% to 119.3 million tonnes at 1.0 g/t for 3.67 million ounces, including a maiden underground reserve of 5.0 million tonnes at 2.3 g/t for 365,000 ounces. Conservative gold price assumptions between A$2,200 and A$2,600 per ounce were used to optimize the reserve. Ongoing drilling at Orion South and Lexington targets is expected to further increase resources, confirming that the mineral estate is not fully delineated. These expanded reserves and resources form the foundation for the updated production profile and support the longer-term development pathway explored in the Stage 2 options study.

Incorporation of Underground Mining Drives Significant Production Growth with Moderate Capital

The integration of underground mining in the updated PFS marks a major advancement in Mount Gibson’s development strategy. The study forecasts an average annual gold production of 260,000 ounces from concurrent underground and open pit mining over four full underground production years (years three to six). This increase is enabled by successful underground drilling programs over the past two years, which defined previously unquantified underground resources. Notably, 96% of production is expected from the ORE1 ore body, reflecting its high quality and extractability.

The total mine life extends to 19.25 years, with an average production of 190,000 ounces annually beyond the initial underground mining phase. The underground component enhances early production ramp-up and supports sustained output over the long term. Importantly, underground mining does not require additional federal environmental permits since it does not expand the surface disturbance footprint. State permitting will proceed alongside open pit infrastructure development and is not expected to delay project timelines, enabling faster progression to development and mining commencement.

Robust Life-of-Mine Economics Highlight A$6.1 Billion NPV and A$12 Billion Free Cash Flow

The updated economic outlook for Mount Gibson projects life-of-mine revenue of A$19.3 billion and pre-tax free cash flow of A$12.0 billion, with a post-capex pre-tax NPV of A$6.1 billion at a 7.5% discount rate. The all-in sustaining cost is estimated at A$1,870 per ounce, positioning the project as a low-cost operation within Australia’s mid-tier gold sector. These figures are based on conservative gold price assumptions, underscoring the project’s strong financial fundamentals.

Development capital totals A$474 million, comprising A$345 million for plant and infrastructure and A$129 million for 15 months of pre-production mining. The project’s capital efficiency is demonstrated by a rapid 14-month pre-tax payback period. This lean capital requirement for a greenfield project of this scale and mine life highlights the quality of the mineral resource and operational efficiency. These financial metrics reinforce Capricorn’s view of Mount Gibson as a premier development opportunity in the Australian mid-tier gold market, supporting a compelling investment case for shareholders and potential partners.

Advanced Plant Design and Early Procurement Strategy Accelerate Construction

Capricorn has progressed Mount Gibson toward development readiness through detailed engineering and strategic procurement. The processing plant design is complete, allowing procurement of major equipment and critical contracts to begin in Q1 FY2027. Early procurement aims to shorten the construction timeline to approximately 15 months following regulatory approval and site access, reducing execution risks associated with long lead times.

Additionally, Capricorn installed an accommodation village in 2025 to de-risk construction and operations. With the federal environmental permit secured and Western Australian approvals advancing, the company targets site development commencement in Q2 FY2027, contingent on final state permits. Parallel state permitting for underground mining alongside open pit and processing infrastructure development is expected to avoid delays, optimizing the overall project schedule.

Stage 2 Options Study Explores Golden Range Processing Hub and Production Growth

Beyond Mount Gibson’s immediate development, Capricorn has initiated a Stage 2 options study focused on a second processing hub at the Golden Range Project, 65 to 100 kilometres north of Mount Gibson. This study will assess technical, permitting, and financial factors to maximize returns and optimize production, mine life, and capital investment. Processing plant scale options between 1.5 and 2.5 million tonnes per annum are under evaluation, with preliminary technical results expected in Q2 FY2027.

The Stage 2 study runs concurrently with extensive resource definition and extension drilling at Golden Range open pit and Mount Gibson underground targets. Both work streams aim to culminate in a PFS and final investment decision for Stage 2 during calendar year 2027. Capricorn’s combined production guidance of over 400,000 ounces per annum includes Stage 1 development, Stage 2 expansion, and the Kingold Gold Project expansion announced on 29 October 2024. This phased approach reflects Capricorn’s strategic growth vision within its Western Australian tenure, providing flexibility for capital deployment and production ramp-up based on market conditions.

Kingold Gold Project Expansion Complements Combined 400,000+ Ounce Annual Production Target

Capricorn’s portfolio includes the Mount Gibson and Kingold Gold Projects, both long-life mines in Western Australia. The Kingold expansion announced on 29 October 2024 complements Mount Gibson’s development, collectively targeting annual gold production exceeding 400,000 ounces. This dual-asset strategy enhances revenue diversification and operational flexibility, leveraging shared infrastructure and management.

With over 5 million ounces in combined reserves, Capricorn’s positioning as a growth leader in the Australian mid-tier gold sector is strengthened. The focus on two high-margin, long-life mines differentiates Capricorn in a competitive market and provides a stable platform for long-term shareholder value. Successful execution of Mount Gibson’s development and Kingold’s expansion is central to achieving the combined production target and establishing Capricorn as a prominent mid-tier Australian gold producer.

Underground Drilling Success and Orion South Development Propel Early Production Ramp-Up

Underground mining at Mount Gibson is supported by successful drilling and delineation over two years, focusing on the Orion South deposit. The underground mineral resource totals 9.6 million tonnes at 2.9 g/t for 886,000 ounces, with a maiden underground ore reserve of 5.0 million tonnes at 2.3 g/t for 365,000 ounces. Although drilling has been highly successful, it remains early-stage, indicating untapped underground potential beyond current estimates.

Orion South underground production is scheduled to begin in year three, contributing to the 260,000-ounce annual steady-state output during years three to six. Additional underground opportunities exist and will be evaluated through ongoing technical work. Planned drilling at Orion South and Lexington targets is expected to further enhance early production and extend mine life, providing upside to current reserves and resources. The multi-year underground exploration program embedded in the development timeline anticipates reserve and resource growth as a routine operational outcome.

Federal Environmental Permit Secured, Clearing Regulatory Path for Development

Capricorn has obtained the federal environmental permit for Mount Gibson, removing a major regulatory barrier. This typically lengthy approval process is complete, allowing progression toward state-level permits, development decisions, and mining commencement. Western Australian permitting is underway, with the company aiming to finalize approvals and start site development in Q2 FY2027. Pursuing state permits for underground mining alongside open pit and processing infrastructure development is expected to minimize delays to underground mine startup.

Notably, underground mining requires no additional federal permits since it does not increase surface disturbance beyond the original approval. This streamlines the regulatory process for underground operations and reduces risk to the early production ramp. The combination of secured federal approval and advancing state permits, alongside completed plant design and early procurement, positions Capricorn to swiftly move from development decision to construction once state approvals are granted.

Industry Context and Capricorn’s Role in the Australian Mid-Tier Gold Sector

Mount Gibson’s development aligns with growing strategic interest and investment in Australia’s mid-tier gold mining sector. Capricorn positions Mount Gibson as one of the sector’s most compelling development opportunities, combining a large, long-life resource, strong economics, and a clear path to production. The mid-tier sector typically targets annual production between 200,000 and 500,000 ounces, and Capricorn’s combined guidance exceeding 400,000 ounces annually places it near the top of this range.

The PFS’s low operating cost of A$1,870 per ounce all-in sustaining cost enhances Capricorn’s competitive position amid current gold prices. The 19-year mine life offers long-term revenue visibility and cash flow, increasingly valued in the mid-tier market. Both Mount Gibson and Kingold’s Western Australian locations provide operational advantages, including established infrastructure, skilled labor, and stable regulatory frameworks. These factors collectively support investor confidence in Capricorn’s development strategy and growth prospects.