Caledonia Mining (CMCL) Status Update summary

Project Overview and Economic Highlights

• The Bilboes project is a 100% owned, fully permitted, large-scale, high-grade open pit gold operation in Zimbabwe, acquired for $65.7 million in shares plus a 1% net smelter royalty, covering 22,200 hectares (10.5 sq mi), with robust economics and a strong management team experienced in Zimbabwe and open pit mining.

• Planned production is 1.5 million ounces over 10 years, with a total capital cost of $403 million, peak funding of $309 million, and a payback period of 1.9 years at a gold price of $1,884/oz.

• Net present value (NPV) is $309 million at a 10% discount rate and $1,880–$1,884/oz gold price, with an internal rate of return (IRR) of 34% assuming 100% equity funding; IRR could exceed 50% with debt.

• All-in sustaining cost (AISC) is $968/oz, and the project is highly sensitive to gold price, with NPV potentially reaching $705 million at $2,600/oz and up to $1 billion at current prices.

• The single-phase development approach optimizes returns and debt capacity, with funding solutions and a new feasibility study expected in H1 2025.

Study Status and Key Changes

• The current study is at a Preliminary Economic Assessment (PEA) level due to significant changes in the tailings facility design, which is now modular and more capital efficient.

• Upgrading the tailings facility study to feasibility level will take 6–7 months, after which the entire project will reach feasibility status; the new feasibility study is expected in H1 2025.

• Capital costs have increased due to global inflation in equipment and materials, despite efforts to mitigate these effects.

• Key changes from the previous feasibility study include revised pit designs, process plant sourcing, infrastructure phasing, and recognition of a 1% NSR granted to a vendor.

• The PEA supersedes the former feasibility study, with funding solutions being advanced in parallel.

Technical and Operational Details

• The project covers four open-pit properties: Isabella North, Isabella South, McCays, and Bubi, with initial mining at Isabella and McCays for the first six years, followed by Bubi.

• NI 43-101 Measured & Indicated resource is 2.47Moz @ 2.30 g/t, Inferred resource is 560koz @ 1.99g/t, effective as of December 31, 2023.

• Extensive metallurgical testing supports BIOX processing, with pilot plant recoveries of 83.7–96%.

• The plant will process 2.88Mtpa (years 1–6), then 2.16Mtpa (years 6–10), with a comprehensive flow including comminution, flotation, BIOX, and CIL.

• The tailings storage facility, designed by SLR Consulting, will be built in phases to accommodate 23 million tons, aligned with global best practices and concurrent rehabilitation.