Sky Metals Reports Significant Resource Expansion at Tallebung Tin-Tungsten-Silver Project Following Successful Shallow High-Grade Drilling

New Shallow High-Grade Zones Expand Tallebung Mineralisation Along Northeastern Margin

Sky Metals' recent drilling at the Tallebung Project uncovered multiple shallow, high-grade tin-tungsten-silver intercepts, reinforcing the mineral system's scale and continuity. Significant results from holes TBRC436 to TBRC439 revealed a new shallow mineralisation zone not included in the current Mineral Resource Estimate. Notably, hole TBRC436 reported 14 metres at 0.58% tin and 0.04% tungsten starting from just 1 metre depth, including 2 metres at 0.94% tin and 0.04% tungsten. These near-surface intercepts extend the deposit's known footprint along the northeastern margin.

The proximity of these zones to the surface is crucial for project economics, enhancing prospects for efficient open pit mining and early access to high-grade mineralisation. The discovery of mineralisation across multiple stacked vein packages within shallow dipping structures highlights the complex yet accessible nature of the Tallebung system. Mineralisation remains open both along strike and at depth, indicating significant exploration potential. Over 500 drill holes have now been completed, a substantial increase from the 115 holes underpinning the previous Mineral Resource Estimate.

Multi-Rig Drilling Campaign Yields Consistent High-Grade Intercepts Across Several Zones

The June 2026 quarter's multi-rig drilling program targeted resource extensions, focusing on high-grade tin-silver-tungsten zones at the deposit's margins. Hole TBRC395 returned 23 metres at 1.14% tin and 0.03% tungsten from 19 metres depth, including a 6-metre section grading 2.72% tin and 0.06% tungsten. Hole TBRC410 delivered 17 metres at 0.79% tin and 0.04% tungsten from 47 metres, with a 4-metre core grading 2.27% tin and 0.02% tungsten from 50 metres. These results confirm consistent tin and tungsten mineralisation across multiple sections.

Significant silver grades were also recorded. Hole TBRC415 returned 13 metres at 0.48% tin, 0.03% tungsten, and 67.1 grams per tonne silver from 55 metres, including a 5-metre high-grade interval at 1.02% tin, 0.03% tungsten, and 164 grams per tonne silver. Hole TBRC414 produced 10 metres at 0.61% tin and 27.1 grams per tonne silver from 48 metres. Deeper hole TBRC428 reported 34 metres at 0.27% tin, 0.03% tungsten, and 57.7 grams per tonne silver from 39 metres, with a 10-metre higher-grade zone at 0.46% tin, 0.07% tungsten, and 166 grams per tonne silver. These findings underline the multi-metal character of the mineralisation, supporting the tri-commodity development strategy.

Updated Mineral Resource Estimate Supports Development Plans and Large-Scale Open Pit Potential

Following the quarter, on 13 July 2026, Sky Metals completed an updated Mineral Resource Estimate announced as a "Major Resource Upgrade for Tallebung." This update incorporates data from over 500 drill holes, providing a robust technical basis for mine planning, metallurgical optimization, and economic evaluation as the company advances development studies. The updated MRE confirms Tallebung as a large-scale open pit development opportunity, demonstrating substantial scale and continuity.

The resource upgrade is a key input to the Pre-Feasibility Study, which was nearing completion at the quarterly report's finalization and is expected in late July 2026. This swift transition from exploration to advanced studies reflects confidence in the project's scale and the comprehensive dataset. The concentration of mineralisation in multiple shallow-dipping stacked vein packages supports an open pit mining approach with efficient geometries. Concurrently, bulk sample metallurgical programs are underway to optimize processing and produce marketable tin concentrates, indicating parallel progress in development studies and technical optimization.

Initiation of State Significant Development Process with SEARs Issued

During the June 2026 quarter, Sky Metals reached two pivotal regulatory milestones, formally advancing Tallebung into the NSW State Significant Development (SSD) approval pathway. The company submitted the Scoping Report to initiate the SSD process, followed by the NSW Department of Planning, Housing and Infrastructure issuing the Planning Secretary's Environmental Assessment Requirements (SEARs). The SEARs issuance marks the start of the Environmental Impact Statement phase, a critical de-risking step.

Sky Metals enhanced its approvals capacity by appointing environmental consultants and an Environmental Manager to oversee the SSD process, baseline studies, and stakeholder engagement. These efforts exceed the planned development timeline, enabling concurrent progression of environmental, technical, and permitting workstreams. Integrating extensive existing studies into a comprehensive framework advances the project toward regulatory risk reduction and potential development approval.

Strategic Sale of Iron Duke Project Generates Capital While Preserving Strong Cash Reserves

In the June 2026 quarter, Sky Metals sold the non-core Iron Duke Copper-Gold Project in New South Wales for $1.1 million. This strategic divestment aligns with the company’s focus on advancing the Tallebung tin-tungsten-silver project and the Doradilla tin project, concentrating capital and resources on priority developments. The transaction highlights disciplined capital management and value realization from non-core assets.

Post-divestment, Sky Metals held $17.6 million in cash as of 30 June 2026, ensuring ample funding for ongoing drilling, testwork, project studies, and mining approvals through the September 2026 quarter and beyond. This strong cash position supports an accelerated development timeline, enabling simultaneous exploration, metallurgical optimization, economic studies, and environmental assessments. The company is well-funded to maintain its activity pace, minimizing near-term funding risks and supporting its development schedule.

Metallurgical Testwork Advancing to Optimize Tin Concentrate Production and Offtake Engagement

Sky Metals is advancing a bulk sample metallurgical program at Tallebung aimed at optimizing the process flowsheet and producing marketable tin concentrates. This program is integral to the company’s development strategy and supports tin, tungsten, and silver offtake marketing efforts. Producing representative concentrate samples enables engagement with potential offtake partners and market interest ahead of final development decisions.

The metallurgical program marks a shift from exploration and resource estimation to engineering studies essential for development approval and financing. By delivering actual concentrate samples for testing by customers and partners, Sky Metals reduces commercialisation risks for its tri-commodity products. This approach is critical given the multi-metal nature of the mineralisation and the necessity to establish viable market pathways for all commodities to underpin project economics. The September 2026 quarter work program anticipates continued progress in this testwork stream, reflecting its strategic importance.

Doradilla Tin Project Set for Drilling Start in September Quarter

Alongside advanced development at Tallebung, Sky Metals is preparing to commence drilling at the Doradilla Tin Project during the September 2026 quarter. The planned exploration drilling will follow completion of the Tallebung Pre-Feasibility Study and initiation of the SSD approvals process. This staged approach allows resource allocation while maintaining momentum on the flagship Tallebung project.

Drilling at Doradilla expands Sky Metals’ tin project portfolio in New South Wales, diversifying its exploration and development pipeline. Although specific drilling targets or geological details were not disclosed, the decision to proceed indicates confidence in Doradilla’s exploration potential. This initiative underscores management’s commitment to generating additional resource growth while advancing Tallebung, positioning the company to capitalize on tin market opportunities and broaden its development-stage tin assets.

Favorable Tin Market Dynamics Support Accelerated Development Plans

Sky Metals’ expedited development timeline at Tallebung aligns with a global tin market characterized by structural supply shortages and increasing demand. Tin’s critical role in electronics, solder, and renewable energy applications is driven by electrification and electronic device proliferation. The company’s tri-commodity approach—tin, tungsten, and silver—diversifies revenue streams and enhances project resilience across varying commodity price environments.

Tungsten’s growing importance in high-temperature, aerospace, and defense applications, combined with robust silver demand in industrial and investment sectors, strengthens the project’s outlook. Sky Metals’ potential as a near-term Australian tin-tungsten-silver producer with shallow open pit mining prospects positions it to benefit from global tin supply recovery and commodity demand growth. Rapid advancement through development studies and approvals reflects confidence in long-term market fundamentals supporting Tallebung.

Ongoing Exploration and Resource Growth Strategy Integrated with Development Activities

A key feature of Sky Metals’ Tallebung strategy is simultaneous discovery of new mineralisation zones alongside formal development studies. Mineralisation remains open along strike and at depth, with new zones emerging at the resource margins. This ongoing success, integrated within a development-focused program, supports potential resource upgrades beyond the updated 13 July 2026 Mineral Resource Estimate.

The newly identified shallow zone in holes TBRC436 to TBRC439, extending mineralisation along the northeastern margin, exemplifies this approach. These intercepts were not included in the current resource estimate, representing additional upside beyond the base supporting the Pre-Feasibility Study. Maintaining intensive exploration drilling while advancing development studies enables stepwise resource upgrades concurrent with economic study refinement, potentially improving project economics and stakeholder returns. Sky Metals emphasizes it is "discovering new mineralisation in parallel with an advanced and rapidly progressing development strategy," positioning the company for further resource growth as it advances toward development.