Alien Metals (UFO) Investor update summary

Strategic Project Updates and Achievements

• Hancock project secured a 21-year mining lease, native title agreement, and a development study showing a $146 million NPV at $120/ton iron ore price, with heritage agreements executed and development study completed in February 2024.

• Joint venture with Errawarra on lithium de-risks the project, saves AUD 400,000 annually, and involves a $4m farm-in for 50% of lithium rights at Pinderi Hills, with Errawarra investing AUD 500,000 and zero cost to the company.

• Pinderi Hills received an AUD 120,000 government grant and saw increased exploration activity in 2024, with ground geophysics and soil sampling underway.

• Exploration mapping advanced on underexplored Vivash and Brockman tenements, and Hancock West/Mallina exploration is targeted for H1 2025, with tenement grant anticipated in Q1 2025.

• Market capitalization stands at AUD 12 million (January 2025: £6.4m), viewed as significantly undervaluing the asset base, with 7.51bn shares on issue and average daily volume of 29m.

Funding, Partnerships, and Corporate Strategy

• Preferred funding route is joint ventures to avoid shareholder dilution and maximize project value, with multiple unsolicited proposals for joint ventures and outright sales received across all projects in the past six months.

• A previously advanced Hancock JV was paused due to iron ore price drop; best-value funding options are being prioritized, and no immediate plans for a share placement.

• Expected JV transaction in Q1 2025 to generate cash, with Windfield (holding 10% of Hancock) not impeding JV or sale transactions.

• Market engagement for construction activities and negotiations with offtake and finance partners are progressing.

Project Portfolio, Resource Highlights, and Outlook

• Hancock iron ore resource is 8.4 million tons at 60.2% Fe JORC, targeting 1.25Mtpa production, with potential to grow to 20 million tons and significant exploration upside.

• Pinderi Hills: Consolidated 180km² tenement with multi-commodity exposure (Ag, Cu-Ni-PGM, lithium), including Munni Munni (2.2Moz PGM) and Elizabeth Hill (4.05Moz Ag resource); exploration focused on five key localities, with drilling precursors set for 2025.

• Elizabeth Hill silver project holds strong JV interest due to rising silver prices, with reinterpretation of data revealing larger mineralized envelopes and new high-grade zones for silver, nickel, copper, lead, and zinc; a deal is targeted within the current quarter.

• Lithium JV de-risks exposure amid a 90% price drop, with future recovery anticipated and prospectivity enhanced by proximity to Azure’s $3bn Andover discovery.