FireFly Metals (FFM) Investor update summary

Project highlights and economic assessment

• Green Bay is positioned as a leading undeveloped copper project in Canada and globally, with high grades, strong financial returns, and a Tier 1 location.

• The preliminary economic assessment (PEA) outlines a 1.8Mtpa scenario producing over 50,000 tonnes copper equivalent per year, with a mine life exceeding 30 years and rapid payback on a low initial capital of AUD 513 million.

• Upscaling to 4.6Mtpa is feasible with modest additional capital, potentially doubling annual copper output and maintaining robust free cash flow.

• The project is highly leveraged to copper prices, with financial models using conservative commodity prices 25-30% below spot, resulting in high NPVs and IRRs.

• Projected to be among the top 5 copper producers and developers in Australia and Canada, with significant expansion potential.

Financial metrics and funding strategy

• The 1.8Mtpa case delivers an NPV of AUD 2.2 billion, IRR of 41-42%, and free cash flow of AUD 5.4 billion after tax, with payback in 1.9 years; at spot prices, cash flow rises to AUD 9.1 billion.

• The 4.6Mtpa case achieves an NPV of AUD 3 billion, IRR of 40%, and free cash flow of AUD 6.5 billion, with annual post-tax cash flow of AUD 550 million for 11 years; at spot, this exceeds AUD 10.9 billion.

• Operating costs are projected at the lower end of the global copper cost curve, supported by high grades, existing infrastructure, low-cost hydropower, and proximity to port; C1 cash costs are US$2.05/lb CuEq (1.8Mtpa) and US$1.84/lb CuEq (4.6Mtpa).

• Funding is secured through a mix of debt, equity, and a new AUD 180 million capital raise, with strong interest from banks and offtake partners, and significant headroom for future expansion.

• Pro forma cash post-raise is AUD 365.6 million, with funds allocated to project development, drilling, early works, and working capital.

Technical and operational overview

• Mining will use conventional sublevel longhole open stoping with paste backfill, leveraging existing infrastructure and favorable ground conditions.

• Processing will employ a simple two-stage flotation with high recoveries: over 98% copper, 80% gold, and 85% silver.

• The ore is amenable to processing, with low abrasion and high concentrate quality, making it attractive to global smelters; no offtake agreements are yet in place, providing financing flexibility.

• Upscaling involves a new shaft and multiple mining fronts, with robust engineering and geotechnical validation.

• The resource has grown to 83.7Mt at 2.5% CuEq, with 77% in measured and indicated categories; the high-grade core zone is 25Mt at 4.3% CuEq.