Endomines Finland (PAMPALO) Status update summary

Transaction overview

• Three Idaho gold assets (Friday, Deadwood, Buffalo Gulch) and related equipment sold for AUD 20 million in cash and shares, with the first AUD 3.5 million due at closing and payment in five installments.

• Buyer is Yellowstone Mining Pty Ltd via Elk Range Minerals, with most Idaho staff and equipment transferring to the buyer.

• Endomines retains a 9.95% equity stake in the buyer's parent company, with options for future milestone payments in cash or shares.

• Operating cost savings estimated at EUR 500,000 per year, with a one-time loss of approximately EUR 3.5 million recorded in U.S. operations.

• Retains two Idaho and two Montana assets, with Montana assets valued higher and seen as having significant potential.

Strategic rationale and future focus

• Divestment aligns with a strategic focus on gold production and exploration in Finland, especially the Karelian Gold Line and Pampalo mine.

• Proceeds (AUD 18.5–20 million) will fund Finnish growth, with long-term targets of 1.5–2 million ounces in gold resources and 70,000–100,000 ounces annual production by 2030.

• Plans include starting tungsten and molybdenum production and achieving fossil-free gold by 2035.

• Transaction increases financial stability, lowers operating costs, and frees management resources for Finnish projects.

• Sale provides a strategic foothold in the buyer's future growth.

Remaining U.S. assets and outlook

• Retains Rescue and Kimberly in Idaho and U.S. Grant and Kearsarge in Montana, with Montana assets having strong gold and silver potential and under external assessment.

• U.S. Grant: historic mine with 165,700 oz gold and 4.47 million oz silver resources, a mill, and valid permit.

• Kearsarge: over 300,000 ounces at 3g/t, high-grade drill results, and high-volume potential; both Montana deposits are 8 km apart.

• Current gold and silver market strength increases Montana assets' attractiveness, with interest from potential buyers but no immediate divestment planned.

• Montana assets valued at AUD 10–12 million, Idaho at AUD 6–8 million; remaining U.S. assets valued at approximately $18 million.