De Grey Mining (DEG) Trading Update summary

Corporate and strategic developments

• Northern Star Resources' proposed acquisition of De Grey Mining is progressing, with the Scheme Meeting set for 16 April 2025 and key milestones achieved, including court and regulatory approvals.

• Cash and short-term deposits total $743 million at March 2025, expected to fully fund the Hemi Gold Project if the acquisition does not proceed.

• Project metrics have improved due to a rise in spot gold price to ~A$5,000/oz, well above the DFS assumption of A$2,700/oz.

• Senior debt facility documentation is advancing, with syndicate support and no compulsory hedging required.

• The board unanimously recommends shareholders vote in favor of the Scheme, with the Independent Expert deeming it fair and reasonable.

Project development and operational readiness

• Outstanding infill drill results at Brolga and Eagle confirm strong mineralisation and support rapid capital payback.

• Maiden Measured Mineral Resource Estimate at Brolga: 12.7Mt @ 1.4g/t for 0.6Moz; Brolga Stage 1 pit Probable Ore Reserve: 26.9Mt @ 1.64g/t for 1.42Moz.

• Contracts for long lead items totaling $206M have been awarded, slightly below DFS estimates.

• Project construction and operational readiness activities are on track, with key plant and infrastructure packages progressing and capital cost reviews ongoing.

• Mining and processing plant tenders are under review, with pricing generally in line with DFS expectations.

Exploration and resource updates

• Hemi Gold Project MRE upgraded to 11.2Moz in Nov 2024; global project MRE now 13.6Moz.

• Hemi Probable Ore Reserve increased to 121Mt @ 1.5g/t Au for 6.0Moz as of September 2023.

• Recent drilling at Eagle extends mineralisation by at least 100m down plunge, enhancing underground mining potential.

• DFS production plan targets 553,000oz Au per annum over the first 10 years at 1.7g/t, with a post-tax NPV5% of A$2.9B and IRR of 36%.

• Project construction period expected to be two years, subject to statutory approvals and final investment decision.