• GDM to acquire 49% stake in Challenger Mines from Adelong Gold
• Settlement includes payment of $134,288 by Adelong Gold and 1% royalty to Adelong Gold
• Termination of Challenger Mines joint venture, with tax indemnities remaining

Great Divide Mining Ltd (GDM) has entered into binding agreements with Adelong Gold Limited (ADG) to resolve an ongoing dispute relating to GDM's 51% interest in Challenger Mines Pty Ltd (CMPL) and the incorporated CMPL joint venture. Under the terms of the agreements, GDM will acquire the remaining 49% stake in CMPL from ADG in exchange for the issue of 10,000,000 GDM shares. ADG will also pay a settlement sum of $134,288 to CMPL, covering joint venture expenses and capital gains tax. ADG will retain the proceeds from the sale of a non-core residential property, but will indemnify CMPL and GDM from any associated costs and liabilities. Additionally, ADG will be entitled to a 1% royalty on net smelter returns from gold produced from the CMPL mining tenements, capped at 125,000 ounces. The joint venture will be terminated, except for certain tax indemnities provided by ADG to GDM. The transaction is subject to regulatory approvals and GDM shareholder approval for the issue of the consideration shares.

GDM does not expect any near-term capital-intensive works that will require significant capital raisings or debt facilities following the acquisition of Challenger Mines.

Following completion of the acquisition, GDM intends to restructure the development plans for the Challenger mine site, which has been in care and maintenance since August 2025. The ramp-up to production is likely to be extended, with initial production at a reduced rate until GDM and CMPL have the necessary cashflow to undertake subsequent stages of development.