• Koolan Island operations focused on processing and selling lower grade iron ore stockpiles
• Company generated $15 million in free cashflow during the quarter
• Acquisition of 50% interest in Central Tanami Gold Project on track for completion in March 2026

Following a rockfall at the Koolan Island mine in October 2025, MGX Resources Limited shifted its operational focus to processing and selling available lower grade iron ore stockpiles. The company generated $15 million in free cashflow during the December 2025 quarter and held $497 million in cash and investment reserves at the end of the period. MGX's acquisition of a 50% interest in the Central Tanami Gold Project received Foreign Investment Review Board approval in December 2025, and the company expects to complete the transaction by the end of March 2026. The Central Tanami Gold Project is one of Australia's highest grade undeveloped gold projects, with Mineral Resources of 31 million tonnes at 2.8 g/t gold for 2.8 million ounces of contained gold. MGX plans to leverage its remote site operating capabilities to make a potential development decision on the project within 12-18 months. The company also continues to expand its regional exploration activities in Western Australia, targeting precious and base metals.

MGX is targeting to process and ship a further 1.0 million wet metric tonnes of low grade (42-45% Fe) stockpiled material from Koolan Island in the June 2026 half-year period, after which the mine stocks will be depleted. The sale of this material is anticipated to substantially reduce the previously estimated $30-40 million net cost of the site's post-rockfall activities in FY26.

MGX continues to advance discussions regarding potential post-mining uses of the logistics and mining infrastructure located on Koolan Island, which could help determine how much of the existing site infrastructure may be retained and repurposed for other future uses by third parties.