Tungsten Mining (TGN) Status update summary

Financial highlights and project economics

• Watershed project NPV estimated at AUD 1.3 billion with a capital investment of AUD 274 million and an IRR just under 200%.

• Payback period projected at nine months, with undiscounted cash flow of AUD 2 billion over project life.

• OpEx currently AUD 594 per MTU, with potential to reduce to AUD 500 per MTU through optimization; all-in OPEX is US$416/MTU.

• Projected annual production averages 2,090–2,500 tons of concentrate over 15 years, peaking at over 3,000 tons in 2028.

• Multiple pricing scenarios modeled, with robust returns even at lower tungsten prices and conservative financial assumptions.

Project development and timeline

• Construction to begin imminently, with mining and concentrate production scheduled for early 2027.

• Full production to nameplate capacity expected in the second half of 2027.

• All regulatory approvals, including environmental and cultural heritage, are in place; secondary approvals pending.

• Final investment decision and DFS targeted for Q3 2026.

• Drilling campaigns underway to expand resource and optimize mine plan, with near-surface mineralization extension.

Funding and offtake strategy

• Focus on non-dilutive funding, targeting 30-50% of requirements from offtake prepayments.

• Advanced negotiations with global traders and refiners for long-term offtake contracts.

• Debt funding options include private credit and bonds, with imminent appointment of a debt advisor.

• Engagement with government grants and strategic funding programs in Australia and the US.

• Equity funding considered only as a last resort.