ADG to Sell 49% Interest in Challenger to GDM

• Consideration of 10 million GDM shares, valued at ~$3.1 million
• Adelong retains a 1% NSR royalty over future gold production
• Transaction strengthens Adelong's balance sheet and allows focus on Lauriston and Apollo projects

Adelong Gold Limited (ASX:ADG) has entered into binding transaction documents with Great Divide Mining Limited (ASX:GDM) for the sale of ADG's 49% shareholding in Challenger Mines Pty Ltd (CMPL), the owner of the Challenger Gold Project in Adelong, New South Wales. The transaction resolves all outstanding matters between the parties and provides a clean exit from the CMPL joint venture while maintaining exposure to future production through a 1% NSR royalty. Under the terms of the agreement, ADG will receive 10 million fully paid ordinary GDM shares, valued at approximately $3.1 million based on GDM's most recent closing price. ADG will also retain a 1% net smelter return (NSR) royalty, capped at 125,000 ounces of gold produced from the defined Mining Area. The transaction strengthens Adelong's balance sheet, secures upside exposure to the Challenger Gold Project, and removes future funding obligations, allowing the company to focus on its Lauriston and Apollo projects.