• Cash balance of $12.25 million, supporting ongoing exploration and operations
• Mining at Lady Herial commenced, generating positive cash flow
• Over 38,000 tonnes @ 1.56 g/t Au delivered to Gold Fields

Lunnon Metals reported on activities undertaken during the March 2026 quarter. Key highlights include a cash balance of $12.25 million as at 31 March 2026, supporting ongoing exploration, technical and permitting activities, and Lady Herial operations. The company continued with a 100% gold focused exploration program at the Foster-Baker project, drilling a total of 5.8km during the quarter. Significant milestones were achieved at the Lady Herial project, including final regulatory approval to commence mining, an agreed mine schedule with St Ives Gold Mining, and completion of a Feasibility Study. Mining commenced in late January 2026, with over 250,000 BCM moved and 38,287 tonnes @ 1.56 g/t Au delivered to the Mine Ore Pad. The company also reported an updated Mineral Resource estimate for Lady Herial, with a total of 789,000 tonnes @ 2.1 g/t Au for 54,200 oz. Exploration attention shifted to high-ranking targets on the western side of the company's tenure, with follow-up drill programs at Paringa West and Plentiful. The company also reported an initial Mineral Resource of over 30,000 oz for the Hustler deposit. The June 2026 quarter will focus on delivering scheduled ore parcels under the Ore Purchase Agreement, commencing the second EIS sponsored drill program at Plentiful, and assessing the potential for further open pit opportunities at Lady Herial and Hustler.

The company expects to generate positive free cash flow for the remaining Life of Mine at Lady Herial, subject to the prevailing gold price. Forecasts for the remainder of the project represent an approximate 10% increase in operating costs, primarily due to the cost of diesel. Applying a $6,500/oz gold price for the remainder of the project, a free cash flow (pre-tax) of approximately $40.6 million is forecast.

The company's strategy remains unchanged, with a focus on discovering a significant gold deposit in the under-explored Foster-Baker project area, and rapidly advancing any new discoveries through resource definition and permitting. Once positive cash flows from Lady Herial are secured, the company plans to ramp up drilling at Foster-Baker to fill the development pipeline behind Lady Herial.