Caledonia Mining (CMCL) Status Update summary

Project overview and management

• The Bilboes project in Zimbabwe is a 100% owned, fully permitted, large-scale, high-grade open pit gold operation acquired for $65.7 million in shares plus a 1% NSR, with a strong management team experienced in the region.

• The project targets 1.5 million ounces of gold production over 10 years, focusing on maximizing profitability with a single-phase development approach.

• The Preliminary Economic Assessment (PEA) supersedes the previous feasibility study, with a new feasibility study expected in H1 2025.

• Funding solutions, including debt financing, are being advanced in parallel with the feasibility study.

Economic highlights and funding

• Total capital cost is $403 million, with peak funding of $309 million and a net present value (NPV) of $309 million at a 10% discount rate and $1,884/oz gold price.

• Internal rate of return (IRR) is 34%, with a payback period of 1.9 years and all-in sustaining cost (AISC) of $968/oz.

• Sensitivity analysis shows NPV could reach $705 million at $2,600/oz gold price and 10% discount rate.

• Single-phase development offers better returns and higher debt capacity than phased alternatives.

Technical and operational details

• The project covers 22,200 hectares (10.5 sq mi) with four open-pit properties: Isabela North, Isabela South, McCays, and Bubi.

• Measured & Indicated resources are 2.47Moz @ 2.30 g/t, with Inferred resources of 560koz @ 1.99g/t, compliant with NI 43-101.

• Modular construction of the $75 million tailings facility and revised pit designs reduce upfront capital.

• The plant will process 2.88Mtpa initially, reducing to 2.16Mtpa from year 6 due to harder ore.

• Metallurgical testing supports BIOX processing, with gold recoveries of 83.7–96%.