TG Metals Signs Ore Processing and Profit Share Agreement with Medallion to Monetize Van Uden Gold Stockpiles

Strategic Partnership to Unlock Value from Van Uden Stockpiles

TG Metals has entered a non-binding indicative offer with Medallion Metals to process roughly 60,000 dry metric tonnes of gold-bearing stockpiled material from the Van Uden Gold Project. These stockpiles consist of previously mined material with composite grades between 0.70g/t Au and 0.95g/t Au, based on drilling and metallurgical testing conducted in August and October 2025. This material is distinct from the current Mineral Resource Estimate and offers an opportunity to generate near-term revenue without additional mining.

Processing will utilize Medallion's Cosmic Boy Concentrator facility, situated approximately 70 kilometres south of Van Uden. The two sites are connected via existing haul roads along the public Forrestania–Marvel Loch road, providing established logistics. Medallion will handle recovery, transport, processing, and tailings management, while TG Metals remains responsible for applicable royalties and maintaining statutory approvals for stockpile removal. Ore processing will occur in discrete batches rather than continuous feed, matching the stockpile volume.

Profit Sharing and Payment Terms Under the Ore Processing and Profit Share Agreement

The agreement sets a commercial framework where Medallion first recovers agreed operating costs related to stockpile recovery, transport, and processing from each campaign’s processing revenues. The remaining pre-tax operating profit is then split equally between Medallion and TG Metals. This structure encourages cost efficiency and equitable sharing of profits from gold recovery and sales.

Payments are structured in two stages to ensure transparency and accuracy: provisional payments to TG Metals follow each processing batch completion, with a final open-book reconciliation based on actual operating costs, metallurgical results, and gold sales proceeds. This ensures TG Metals receives initial cashflow promptly, with adjustments made after final accounting. The agreement remains non-binding pending customary conditions precedent, including due diligence and approvals, with ore deliveries and processing expected to commence once these are satisfied.

Van Uden Gold Project Location and Regional Significance

The Van Uden Gold Project is located within the Forrestania Greenstone Belt in Western Australia, approximately 90 kilometres east-northeast of Hyden and 120 kilometres south of Southern Cross. It lies about 70 kilometres from Medallion Metals' Cosmic Boy processing plant and 12.5 kilometres southwest of the Mt Holland lithium mine operated by Mineral Resources Limited. This proximity to established processing infrastructure and mining operations highlights the maturity of the regional mineral exploration and development corridor.

Van Uden is part of TG Metals’ broader Western Australian portfolio, which also includes full ownership of the Lake Johnston Project. Lake Johnston hosts the Burmeister high-grade lithium deposit, Jaegermeister lithium pegmatites, and other lithium prospects, located 130 kilometres northwest of Van Uden. TG Metals holds an 80% interest in Van Uden, its primary near-term gold production asset, benefiting from Western Australia’s stable regulatory environment and established infrastructure.

Mineral Resource Estimate and Stockpile Grade Details

The Van Uden Mineral Resource Estimate reports 56% of resources classified as Indicated, enabling progression toward mining and processing studies. The estimate complies with the JORC Code 2012 Edition. The company did not disclose total tonnage or grade for the Indicated category in this release.

Surface laterite mineralisation, the focus of heap leach development, is reported at a 0.10g/t Au cut-off within an A$6,000/oz Au optimised pit shell. Other material types use a 0.30g/t Au cut-off within the same economic parameters, reflecting typical Australian open pit mining costs and geology. The gold-bearing stockpiles targeted for processing under the Medallion agreement are excluded from the current resource estimate and represent additional processing potential complementary to the defined resource base.

Multiple Development Pathways for Gold Recovery at Van Uden

TG Metals is advancing several gold treatment and recovery strategies at Van Uden. The Medallion processing agreement provides a near-term cashflow stream, while the company nears completion of a laterite heap leach study for onsite treatment of gold-bearing laterite and potentially other materials. This onsite heap leach option offers an alternative recovery route without full reliance on external processing.

Expansion drilling for laterite resources is planned for Q3 2026, building on successful auger drilling results announced on 9 July 2026. Additional reverse circulation (RC) drilling is also planned along strike and beyond the current mineral resource area, pending further approvals. The combination of offsite processing via Medallion and onsite heap leach development provides TG Metals with operational flexibility to optimize economics across ore types and stockpile characteristics.

Regulatory Approvals and Operational Preparedness for Stockpile Transport

TG Metals has existing approvals to remove stockpiles from Van Uden, enabling processing to commence promptly once the non-binding offer converts to a binding agreement and conditions precedent are met. These approvals remove significant procedural barriers, facilitating a swift transition to ore feed at the Cosmic Boy Concentrator. Additional site access for haulage is now authorized, reflecting readiness of regulatory and operational frameworks.

The non-binding offer is subject to standard conditions including due diligence and required approvals. Ore deliveries and processing are anticipated to begin after these conditions are fulfilled. Established haul roads connecting Van Uden to Cosmic Boy via the public Forrestania–Marvel Loch road negate the need for new transport infrastructure, enhancing near-term feasibility and minimizing capital expenditure.

Management Commentary on Milestone Ore Processing Agreement

TG Metals CEO David Selfe described the agreement as "a significant first ore processing outcome" for the company. He indicated that once stockpile deliveries start, TG Metals will join gold producers and intends to expand processing initiatives both onsite and offsite. Management views the Medallion deal as a foundation for a broader strategy to unlock gold production across multiple development pathways at Van Uden.

Selfe emphasized that the processing agreement complements the onsite heap leach strategy, providing strategic flexibility through multiple treatment options. He expressed eagerness to collaborate with Medallion to realize the first stockpile feed into the Cosmic Boy plant. The CEO highlighted the arrangement as "a revenue stream to the Company whilst we continue with further treatment options," underscoring its role as a near-term cashflow source alongside longer-term project development.

Company Overview and Strategic Asset Portfolio

TG Metals Limited is an ASX-listed exploration and development company focused on gold and lithium assets in Western Australia’s stable jurisdiction. The company operates two main projects: the wholly owned Lake Johnston Project and the 80% owned Van Uden Gold Project. Lake Johnston hosts the Burmeister high-grade lithium deposit, Jaegermeister lithium pegmatites, and other lithium prospects, reflecting TG Metals’ dual-commodity strategy to develop value-accretive gold and lithium assets within established mining regions.

Headquartered at Level 2, Suite 3, 28 Ord Street, West Perth, Western Australia, TG Metals trades under ASX code TG6 and holds ABN 40 644 621 830. The company’s pursuit of near-term cashflow from Van Uden gold processing complements its broader strategy to advance the Burmeister lithium asset and associated Lake Johnston prospects. The Van Uden processing agreement illustrates TG Metals’ commitment to multiple development pathways to monetize its assets, balancing short-term revenue with long-term growth objectives.

Market Outlook and Investor Considerations

The immediate impact on TG Metals’ share price remains unclear from public data. Investors will likely monitor progress toward converting the non-binding agreement into a binding contract, completion of due diligence, satisfaction of conditions precedent, and timing of initial ore deliveries to the Cosmic Boy Concentrator. Commencement of stockpile processing will mark a key operational milestone, transitioning TG Metals from exploration and development to active gold production.

Key investor metrics include provisional and final payments from processing batches, actual gold recovery rates and metallurgical performance relative to historical grades of 0.70g/t to 0.95g/t Au, and the company’s ability to expand processing volumes and explore additional options. The success of this initial arrangement may influence TG Metals’ capacity to negotiate further processing agreements and inform the economics of the onsite heap leach strategy. Progress on the laterite heap leach study and expansion drilling results will also be critical for assessing the sustainability and growth potential of gold production beyond the existing stockpiles.