Tanami Gold Raises $70.5 Million via Rights Issue to Advance Central Tanami Project Development

Capital Raise Fuels Two-Year Groundrush Decline Development Program

Tanami Gold’s fully underwritten rights issue marks a crucial funding milestone for the Central Tanami Project’s near-term development phase. The company raised approximately $70.5 million before costs, offering eligible shareholders one new share per share held as of the 13 May 2026 record date. Priced at $0.06 per share, the issue was fully underwritten by Bell Potter Securities Limited, with Bell Potter and Evolution Capital Pty Ltd acting as joint lead managers. The rights issue shortfall totaled 337,474,683 shares.

Major shareholders APAC Resources Limited and Metals X Limited fully subscribed to their entitlements, reflecting strong confidence in the project. The largest allocation of $37.2 million targets a two-year decline development program for the Groundrush Exploration Decline, facilitating underground resource definition drilling and early ore access. Additional funding includes $5.5 million for surface resource definition drilling to upgrade inferred ounces to indicated resources, $11.4 million for camp upgrades and refurbishment, $11.6 million for non-processing infrastructure improvements such as wastewater and sewage treatment, $2.0 million for working capital, and $2.8 million for offer costs. These allocations equip the company with the capital necessary to execute a comprehensive development strategy over the coming years.

Groundrush Exploration Decline Contractor and Construction Schedule

On 21 April 2026, Tanami Gold announced Macmahon Underground Pty Ltd—a subsidiary of ASX-listed Macmahon Holdings Limited—as the preferred mining contractor for the Groundrush Exploration Decline construction. This appointment is a significant operational milestone as contractual arrangements are finalized between joint venture partners and the contractor. Macmahon’s scope includes portal and ventilation establishment plus approximately 3,500 metres of exploration decline development, valued at about $38 million. Construction is scheduled to begin in the September 2026 quarter and will span 14 months.

The exploration decline is a vital component of the Central Tanami Project’s near-term development, enabling critical underground resource infill drilling. It will extend roughly 350 metres below surface, allowing drilling of the Groundrush deposit to a vertical depth near 600 metres. Underground drilling is expected to start toward the end of the construction period, aiming to convert over 400,000 ounces of inferred resources to the indicated category for mine planning. Initial site works commence in August 2026, with portal development targeted for September 2026, underscoring the project’s accelerated development pace.

Resource Definition Drilling at Jims Gold Mine Progresses

Resource definition drilling resumed at Jims Gold Mine during the June quarter, following successful campaigns in the 2025 field season. Positioned near the Central Tanami mill site, Jims Gold Mine represents a key open pit opportunity and strategic asset for the integrated mining operation. The first drilling phase includes 10,500 metres of reverse circulation (RC) drilling and 2,600 metres of diamond core (DD) drilling, followed by a second phase with 14,000 metres of RC drilling and over 1,800 metres of DD drilling. This phased approach aims to enhance confidence in the mineral resource estimate and support future mine planning.

During the June quarter, 2,184 metres across 16 RC drill holes were completed at Jims, with results pending and to be reported to the ASX once available. This strategy reflects the company’s commitment to building a solid geological understanding of the Jims deposit before advancing production planning. The combination of resource drilling at Jims and underground exploration decline development at Groundrush exemplifies a dual strategy to unlock value from multiple gold deposits within the Central Tanami Project tenure.

Site Infrastructure Enhancements and Workforce Expansion Accelerate Project

Significant site infrastructure upgrades occurred during the quarter to support increased exploration and development activities. Repairs and enhancements to accommodation facilities are underway to accommodate growing on-site personnel and activity levels. Improvements to power, water, and communications systems are also in progress to support the expanded workforce and operations. Camp refurbishment efforts align with modern mining standards and operational needs.

Recruitment of key personnel has advanced to strengthen organizational capacity for the expanded development program. These investments in human resources and infrastructure underpin the successful delivery of exploration decline construction and resource definition drilling. Preparatory activities are progressing ahead of schedule, positioning the project for a smooth transition into construction when Macmahon Underground begins portal establishment in September 2026. This timing reflects proactive planning and operational discipline as the project shifts from exploration to development phases.

Joint Venture Structure and Funding Status of Central Tanami Project

Tanami Gold holds a 50% interest in the Central Tanami Project Joint Venture (CTPJV) with MGX Resources Limited, with both partners jointly funding exploration and development. The joint venture focuses on developing and mining the Groundrush gold deposit alongside advancing other prospective deposits within the tenure, leveraging existing infrastructure and best-practice mining standards.

As of 30 June 2026, the CTPJV held $9.001 million in available cash, up from $7.912 million at 31 March 2026, indicating positive cash flow during the quarter. Combined with Tanami’s $70.5 million capital raise, the joint venture is well-capitalized to execute planned exploration and development activities. This structure enables shared capital costs and operational risks while pursuing the goal of establishing a significant gold mining operation in the Northern Territory’s Tanami region.

Tanami Gold’s Strong Cash Position and Strategic Investments

At 30 June 2026, Tanami Gold’s cash reserves totaled $75.943 million, providing substantial liquidity to meet capital contributions and support operations. This reflects the successful rights issue and disciplined working capital management, offering financial flexibility for contingencies or opportunities during the Central Tanami Project’s development phase.

Additionally, Tanami holds 500,000 shares in Northern Star Resources Limited (ASX:NST), valued at $9.475 million as of 30 June 2026. This strategic investment diversifies the company’s asset base beyond the Central Tanami Project, offering potential upside linked to Northern Star’s share price. While liquid, there is no indication that these shares will be sold to fund project requirements given the company’s current strong cash position.

Board Leadership Enhancement to Support Project Execution

Effective 1 May 2026, Mr Brett Smith transitioned from non-executive director to executive director at Tanami Gold. The board highlighted that this change aims to provide focused operational and strategic support for the Central Tanami Project’s development phase. The timing aligns with the project’s critical development stage and signals strengthened executive oversight for project delivery and strategic execution.

This governance adjustment reflects confidence in Mr Smith’s ability to manage complex project execution and underscores the company’s commitment to hands-on leadership during a pivotal period. Prioritizing dedicated leadership attention aims to ensure exploration decline construction, resource drilling, and infrastructure upgrades proceed on schedule and within budget. This shift coincides with the company’s transition from exploration to capital-intensive development activities.

Preliminary Talks on Hyperion Gold Project JV with Prodigy Gold

Tanami Gold is engaged in early-stage discussions with Prodigy Gold NL (ASX:PRX) regarding a potential joint venture on the Hyperion Gold Project. The company emphasized that talks remain preliminary and that any binding agreement would be announced if finalized. There is no certainty that a transaction will occur at this stage.

Exploring joint venture opportunities on additional gold projects could diversify Tanami’s development pipeline beyond the Central Tanami Project. However, given the early stage and absence of commitments, investors should not assign significant probability to this transaction currently. Any agreement would require regulatory approvals and customary conditions, constituting a material development warranting full market disclosure.

Strong Safety Record Maintained During Development Phase

The Central Tanami Project joint venture reported zero lost-time injuries (LTIs) during the June quarter, maintaining a zero LTI record for the financial year to date. This safety performance underscores the company’s commitment to best-practice safety standards and effective safety management systems across the project. Maintaining a robust safety culture is critical as the project advances into the exploration decline construction phase, involving significant earthmoving and underground activities with inherent risks.

This exemplary safety record lays the foundation for operational excellence during accelerated development. As workforce levels rise and underground construction commences, upholding rigorous safety standards remains essential for successful and responsible project delivery. The company’s focus on safety highlights its dedication to protecting personnel and adhering to high safety and environmental standards.