KSK – BKM Copper Project

Asiamet’s ‘flagship’ project, the BKM Copper Project (“BKM”) sits within the eastern area of the Kalimantan Surya Kencana (‘KSK’) Contract of Work (“CoW”). The KSK CoW is wholly-owned by Asiamet and is located northwest of Palangkaraya, the regional capital of Central Kalimantan.

The KSK licence covers circa 390 km² and includes a large number of gold and gold-copper targets including the BKM copper cathode project. In May 2025, the Company released an Executive Summary of the Stage 1 (first phase of development) Optimised Feasibility Study Update on the BKM copper project. The Feasibility Study demonstrates a viable project with the following robust economics:
Note : All references to ($) dollars in the tables below are US Dollars. Tables with decimals may not add due to rounding.

Highlights – 2025 BKM Stage-1 Optimised Feasibility Study:

• Annual copper cathode production of approximately 10k tonnes with a ~13 year mine life
• Life-of-mine revenues of US$1.192 billion and EBITDA of US$612.2 million[ Excluding closure and rehabilitation costs]
• Initial capital cost of US$178.4 million, including US$11.1 million (7.6%) growth allowance and US$21.8 million (~ 13.9%) contingency
• Post-tax NPV81 of US$122.4 million, post-tax IRR1 of 17.7%, and payback period of 4.5 years
• Life-of-mine production of 124,022 tonnes of LME Grade A copper cathode
• Low strip ratio of 0.77:1, Life-of-Mine C1 costs of US$1.79/lb and AISC of US$2.37/lb

Development and Strategic Positioning

• Execution-Ready: Compact site layout and proven technology significantly reduce construction and operational risks.
• Lender Engagement Ready: Updated engineering and financials; ITE review process near completion.
• Strategic Engagement Underway: OFS unlocks structured engagement with a comprehensive list of parties interested in strategic investment and/or product offtake
• Platform for Growth: BKM Stage 1 establishes foundational infrastructure to unlock significant upside across the KSK Contract of Work, including the remaining 80kt of un-leached copper in spent heap leach ore, 245kt in-situ sulphide copper resource at BKM and the high-grade BKZ polymetallic deposit.
• Leveraged to Positive Global Copper Outlook: NPV8 of US$142 million and IRR of 18.9% using a $4.52/lb LT price (broker consensus + 5%), and NPV8 of US$202 million and IRR of 22.9% using a $5.00/lb LT price (highest broker price), highlighting the strong leverage of BKM Stage 1 to an uplift in copper price.

Note: all figures presented on a real basis; OFS Base Case: based on consensus copper price forecast of 21 broker as of 4 April 2025; Upside Case: LT broker consensus price + 5.0%; High Case: based on highest broker LT price forecast.

BKM PROJECT FEASIBILITY STUDY DETAILS

The BKM Feasibility Study Life of Mine key metrics are included in Table 1 below.  The following economic assumptions were utilised:

• Long term copper price of $4.30/lb (real)
• Discount rate 8% (after tax, real)
• Indonesian corporate income tax (‘CIT’) rate of 22%¹
• Indonesian Government Royalty of 7% (of revenue)

Note : All references to ($) dollars in the tables below are US Dollars.  Tables with decimals may not add due to rounding.

²Tax holiday (subject to successful application of regulation, PMK-130 (130/PMK.010/2020)) of a 100% Corporate Income Tax reduction for 7 years followed by a further 2 years at a 50% reduction.

The estimated initial construction capital costs are in summarised in Table 2 below.

The capital cost estimate in Table 3 relates to the project construction costs and excludes sustaining capital and mine closure costs.

The total Life of Mine (LOM) operating costs, sustaining capital and estimate mine closure cost are shown in Table 4.

A mine operations life of 12 years 9 months and heap leach operations life of 12 years 11 months leads to no major replacement or rebuilds being necessary on major equipment. Sustaining capex needs for the project are dominated by the ongoing costs of expanding and managing the Heap Leach Facility.

The mining activities related to earthmoving will be undertaken by an equipment supply contractor under the direction of the Company. Other specialist activities such as Blasthole drilling and supply and delivery of explosives to the field will be contracted to specialist service providers. The mining LOM cost is forecast to be $3.47 per tonne of material mined or $0.64 per pound of copper produced inclusive of mine geology and ancillary mining activities.

The LOM processing costs equate to $6.58 per tonne ore stacked or $0.69 per pound copper produced, with the most significant cost being electricity consumption.  Power is now proposed to be sourced from the development of a new, dedicated coal-fired power station located on site at BKM. The study cost model adopts a build, own, operate and maintain model provided by a third-party supplier with current estimates delivering a unit cost of 14c per kilowatt hour.

General and Administration costs include transport and logistics (contracted), site camp services (contracted), Supply Chain Management, Information Technology, Environmental, Sustainability and Governance and overhead administration activities. The LOM unit cost of these activities in the financial model is $4.42 per tonne ore processed or $0.46 per pound copper produced.

The charts below show the Life of Mine (LOM) production (Figure 1) and Ore delivered to the heap leach facility along with Soluble Copper grade (Figure 2). Ore mined is slightly lower in years 1-3 as higher grades of soluble copper are mined first delivering strong early-stage cash flows to the project. The LOM strip ratio is low at 0.77:1, aiding the profitability of the project.

Strong free cash flow generation is expected from the project with the LOM net operating cash flows of $557 million.  This strong cash flow generation underpinned by a long-term copper price of $4.30/lb results in a 4.5 year payback period for the Project.

1. Yr1 Figure 4 represents first year of expenditure on the project, Yr4 represents Yr1 of production as shown in the production figures.

As part of the Feasibility Study, a sensitivity analysis was conducted to determine the effect of key variables on the base case NPV₈ of $122.4 million (post tax and excluding closure costs).  The results of this analysis are shown in Figure 5.

Table 4 provides a sensitivity of +/- 2% for the Company’s 8% weighted average cost of capital (WACC).

The timeline below is indicative and subject to certain milestones being achieved.  Progressing the project financing is a critical enabler to commencing significant development works.

Several opportunities are available to help further improve project economics. These will be explored prior to, and during the detailed engineering design phase.

• Additional copper recovery from process bleed and mine drainage (~3,500 tonnes of copper identified):
  • Explore technology to recover copper within the plant Neutralisation process.
  • Potential to add revenue during operations by recycling recovered copper and ultimately help offset mine closure costs by recovering copper from wastewater streams.
• Potential to improve copper recovery from BKM Stage 1 heap leach through application of new heap leach technologies:
  • Overall copper recovery from BKM Stage 1 is approximately 60%.
  • Once in operation, bulk samples can be tested with existing and emerging technologies targeting minerals difficult to leach copper minerals chalcopyrite and bornite.
  • Improving overall copper recovery from the existing life of mine ore inventory could deliver significant economic upside over the life of mine.

³ Asiamet cautions the Project Opportunities described above are preliminary in nature and have only been subjected to high-level preliminary assessment.  It is uncertain if further evaluation and or exploration work will result in the implementation of any of the potential opportunities or whether any additional economic benefit will be realised.

The BKM Copper Project is the first step in a larger development plan across the KSK Contract of Work (CoW), aiming to establish a new mining district and supporting infrastructure. The long-term strategy adopts a phased approach, building on the foundation of the initial BKM heap leach operation.

• Phase 1A – Expansion of the BKM heap leach operation
• Phase 2 – Processing of 240kt of in-situ sulphide copper resource at BKM and 85kt of copper in spent heap leach ore
• Phase 3 – Development and integration of high grade BKZ polymetallic deposit

Overall, there remains significant future development opportunities at BKM and the broader KSK CoW.