QUARTERLY ACTIVITIES REPORT - DEC 2024

• Aeris Resources ended the quarter with $33.0 million in cash and receivables, with cash flow from operations increasing from $25.4 million to $33.2 million quarter-on-quarter.
• Cracow gold production was strong at 12.2koz, exceeding expectations and remaining on track for annual guidance.
• Tritton copper production was lower at 3.9kt due to operational challenges, but is still expected to meet annual guidance.
• Mt Colin copper production was significantly improved at 1.9kt with low AISC of A$2.84/lb.
• The Jaguar restart scenario was presented to the Board with attractive metrics, and studies are being advanced to the feasibility level.
• Resource definition drilling at Constellation is complete, with an updated Mineral Resource Estimate expected in the March quarter.
• An in-principle agreement for an extension of the ANZ bonding facility has been reached, pending documentation.
• The company recorded two lost time injuries at Cracow and one reportable environmental incident related to land disturbance.
• A mining improvement project has been initiated at Tritton to increase production rates and improve efficiency.
• Mining at Mt Colin was completed in November 2024, with processing of stockpiled ore expected by early February 2025.
• The Barbara project was deemed non-core, and options for divestment are being considered.

Score: 6

Explanation: The document presents a mixed picture with positive results at Cracow and Mt Colin, but operational challenges at Tritton and the divestment of non-core assets temper the overall sentiment. The company is taking steps to address the issues and has a positive outlook for the future.

• Cash and receivables at the end of the quarter were $33.0 million, with cash flow from operations increasing from $25.4 million to $33.2 million quarter-on-quarter.
• Cracow gold production reached 12.2koz, performing better than planned and on track for annual guidance.
• Mt Colin achieved significantly improved copper production of 1.9kt at a low AISC of A$2.84/lb.
• The Jaguar restart scenario is being advanced to feasibility level after presenting attractive metrics to the Board.
• Constellation resource definition drilling is complete, with an updated Mineral Resource Estimate targeted for the March quarter.
• An in-principle agreement for an extension of the ANZ bonding facility has been reached.
• Metallurgical recovery at Tritton continues to be above plan at 95.4%.
• The new paste fill pump and reticulation system at Budgerygar was commissioned in January 2025.
• Mining at Mt Colin was successfully completed in November 2024.
• Processing results for Mt Colin improved significantly with metallurgical recovery up from 62.3% to 85.1%.

• Cracow gold production is exceeding expectations and is on track to meet the upper end of its production guidance.
• Mt Colin's copper production and low AISC demonstrate strong operational performance.
• The Jaguar restart scenario has attractive potential economics and is progressing to the feasibility stage.
• The completion of resource definition drilling at Constellation and the upcoming Mineral Resource Estimate are positive steps.
• The in-principle agreement for the ANZ bonding facility extension provides financial stability.
• The mining improvement project at Tritton is expected to positively impact production rates and operational efficiency.
• Metallurgical recovery at Tritton remains strong at 95.4%.
• The new paste fill pump and reticulation system at Budgerygar is now commissioned.
• The reprocessing of seismic data at Cracow could lead to new drill targets.
• The company has a strong pipeline of organic growth projects and an aggressive exploration program.

• Tritton's copper production was impacted by operational challenges, resulting in lower production of 3.9kt.
• The Tritton mine experienced a major dewatering line failure, impacting access to planned stopes.
• The new paste fill pump and reticulation system at Budgerygar was delayed due to overseas supplier issues.
• The Barbara project was deemed non-core, and options for divestment are being considered.
• Aeris recorded two lost time injuries at Cracow and one reportable environmental incident.
• Gross mining costs at Tritton decreased due to lower tonnes mined.

• Operational challenges at Tritton, including labor shortages and equipment failures, could continue to impact production.
• Delays in the commissioning of new equipment, such as the paste fill pump at Budgerygar, can disrupt mining schedules.
• The divestment of the Barbara project and North Queensland assets could result in a loss of potential future revenue.
• The company's debt position remains at $40 million, and the refinancing process is ongoing.
• Fluctuations in commodity prices could impact the company's profitability.
• The company is exposed to safety and environmental risks, as evidenced by the lost time injuries and environmental incident.

The company expects increased production from Budgerygar and the Murrawombie open pit in the second half of the financial year. The mill is forecast to be operating at full capacity during Q4 FY25. The Jaguar restart feasibility study is targeted for release in Q4 FY25.

• The company is committed to building strong partnerships with its key community, investment and workforce stakeholders.
• The company has a strong pipeline of organic growth projects, an aggressive exploration program and continues to investigate strategic merger and acquisition opportunities.

The report reflects the challenges and opportunities faced by mining companies, including fluctuating production, operational issues, and the need for strategic capital allocation. The focus on cost management and project development aligns with industry trends.

• The reported AISC for Mt Colin at A$2.84/lb is competitive compared to other copper producers, such as those in South America, where AISC can range from $2.50 to $3.50 per pound.
• Cracow's gold production of 12.2koz is a solid result, but it is important to compare this to other Australian gold producers like Newcrest or Northern Star, which often produce significantly higher volumes.
• The operational challenges at Tritton are not uncommon in the mining industry, but the company's response and mitigation strategies will be key to its future performance. Companies like OZ Minerals have faced similar challenges and their recovery strategies can be used as a benchmark.
• The decision to divest the Barbara project and North Queensland assets is a strategic move that aligns with the industry trend of focusing on core assets and larger-scale developments. This is similar to how BHP has divested non-core assets to focus on its major projects.

• Shareholders may be concerned about the operational challenges at Tritton and the decision to divest the Barbara project, but encouraged by the strong performance at Cracow and Mt Colin.
• Employees may be affected by the operational changes and the divestment of assets, but the company's commitment to building strong partnerships with its workforce is a positive sign.
• Customers may be impacted by the fluctuations in production, but the company's focus on improving efficiency and meeting annual guidance should mitigate these concerns.
• Suppliers may be affected by the divestment of assets, but the company's ongoing operations and growth projects should provide opportunities for continued business.
• Creditors will be reassured by the company's cash position and the in-principle agreement for the bonding facility extension.

• Complete the updated Mineral Resource Estimate for Constellation in Q3 FY25.
• Advance the Jaguar restart study to feasibility level for release to the market in Q4 FY25.
• Finalize the documentation for the extension of the ANZ bonding facility.
• Continue the mining improvement project at Tritton.
• Complete the processing of final stockpiles at Mt Colin by early February 2025.
• Start open pit operations at Murrawombie in February 2025.
• Reprocess seismic data at Cracow to define new drill targets.
• Consider options for divestment of the Barbara project and North Queensland assets.

• August 2013: Initial seismic surveys were carried out at Cracow.
• April-May 2014: Additional seismic surveys were carried out at Cracow.
• November 2024: Mining at Mt Colin was successfully completed.
• January 2025: The new paste fill pump and reticulation system at Budgerygar was commissioned.
• February 2025: Processing of final stockpiles at Mt Colin is expected to be completed and open pit operations at Murrawombie are expected to start.
• March quarter: Updated Mineral Resource Estimate for Constellation is targeted.
• Q3 FY25: The updated Mineral Resource Estimate for Constellation is to be completed and the engineering design for integrating the modified flotation plant at the mine site and downstream Albion processing plant will commence.
• Q4 FY25: Feasibility study for Jaguar restart is targeted for release to the market and the mill is forecast to be operating at full capacity.