Adyton Increases Indicated Resources by 131% at the Gameta Project

0:04 Okay, we're now live. People are entering the room. Great to see. Hello everyone and thank you for joining us for this live Additon resources update. Today we're joined by Tim Crossley, Managing Director, and Chris Bolden, Chief Operating Officer. I've prepared a few questions for them regarding the company's latest news release, which highlights the 131% increase in indicated resources at the Ferguson Island Gamma project. If you have questions of your own, please submit them using the chat box at the bottom of your screen. And if you'd like to arrange a meeting with the Additon team, there will be an option to request 1 when we close off today. So hang tight until the end. And if you still have questions, we'll be happy to direct your interest to their team. One last thing, this event is being recorded and will be available for viewing shortly after we conclude.

0:50 With that, gentlemen, thank you for joining us so late to take this call. Tim, we'll start with your thoughts on the news. The 131% increase in indicated resources is the headline here, driven by the 2025 infill program. Can you walk us through what that jump means for how you now think about the scale and quality of the GammaDot deposit? Yeah, thanks Kyle, thanks for having us. Look, it's all about confidence, I guess, Kyle. I mean, once you're converting inferred resource to indicator, it's showing a high level of confidence. It's giving you greater confidence around the continuity of the resource. It gives you a high level of confidence on the grade. So It's a huge positive for that deposit.

1:37 I reflect on a conversation I had with a mining engineer that worked on that project back in, I think it was about 2002. I always remember his words saying, you know, this will definitely get developed 1 day, Tim. It's a great little Orby and it's got plenty more to give. And I guess we just found out some of that giving then. You know, Earlier in the year, I think, Kyle, we reported some great intercepts and new high-grade discovery, I guess, in Gamma.

2:09 It's all very positive and it just reinforces our conviction with our JV partner to accelerate the development of that project, following on from what we're doing with Waupolo.

2:23 With Chris picking up on that, the estimated move to large volume into the higher confidence indicated category of roughly 4,000m of infill drilling. From a geological standpoint, what did that drilling reveal that most changed your understanding about the ore body? Yeah, thanks Kyle. Yeah, the infill drilling tightens the drill spacing so we can better demonstrate, not just assume, that the grade and geometry carry more predictably between the drill holes. So that recent increase indicated, like Tim said, is largely a confidence story. And so for me, what changed most on my route of committor is that the mineralisation is more contiguous than the previous historic drilling had implied.

3:12 And we're seeing much more coherent volumes

3:15 with fewer internal gaps than the earlier model carried. So, you know, that's exactly what you want to see. It's what lets us move ounces into the indicated category with confidence, and it gives us a strong base to keep growing the deposit. Why don't we elaborate on that, Chris, you as well as Louis Wang described Gaviton as more contiguous than initially understood. Can you unpack what contiguous means here geologically and why continuity matters so much for potential open pit operation? Yeah, it's a good question and it's an important one. And, you know, so contiguous means the mineralized zones link up as connected volumes rather than sitting as isolated pods.

4:03 So that grade and thickness occur more predictably from hole to hole. And that matters enormously for an open pit. It lets you design a single connected pit rather than chasing scattered lenses, which means more predictable grade, less dilution,

4:22 simpler mining. It also makes the deposit easier to grow because it's connected, well understood, all body is fast, simpler to extend along strike and at depth. Continuity is essentially what turns out ounces into a mineable open pit.

4:44 And Tim, building on that continuity, you've said mineralization and GammaDat remains open at depth and along strike to the southeast. How does that shape your thinking around future drilling and how much bigger could this deposit realistically become? It's a deposit that's really constrained by lack of drill holes on the downstrike side and also the south-east extension. I wouldn't be able to wrap a number around how big it would become, But if you look at the regional sort of geology and some of the projects in and around that Mill Bay region, you've got Woodlark on the neighbouring island, I think it's just under 2Moz, about 1.9Moz.

5:28 Mismas, similar style, was about a 5Moz deposit. There's no doubt that we haven't tested the full extent downstrike or a long strike of the Gambit ore body. It's probably not something that we're going to rush in and do straight away. I think we've got enough resource and confidence about the resource to now move into the development cycle, permitting and ultimately get the project into production and then think about expansion and resource extension drilling once we've done that. Sticking on with production, you're evaluating a standalone processing facility at Gametel while also leveraging shared infrastructure with Wapolo just 30km away. How are you weighing those 2 options and what would tip the decision one way or the other?

6:25 Yeah, look, it's a good question. And look, I think we have kind of definitely made up our mind to separate and have 2 standalone mills at both Wapola and Gamata. As a crow flies, the distance isn't huge. It's about 30 kilometres. The topography is not that friendly for transportation, but we possibly could consider barge transportation from 1 deposit to the other. But at the moment, I think for the benefit of flexibility, still being able to leverage or for things that we've got at Gamma like airstrips and wharves. Most importantly, actually, is tailings deposition opportunities.

7:10 I think it's best to keep the mill separate. We expect Gamma to be a longer life, longer lasting deposit, starting with a much bigger mill than Bupolo. I think it makes sense. Is there some capital trade-off?

7:28 There probably is for sure, but I think it weighs in the favor of 2 separate mills. Great. Now, Wapalo is targeting a potential restart in Q4, 2026, which is not that far away with the phase 1 process plant module expected in late September. How are you sequencing GammaDa against that timeline and where does it sit in your development priorities?

7:55 Spot on with those comments about Wapala. I'm pleased to say we're definitely on track and very confident that the mill will be ready by towards the end of September, early October. Gammater, the release the other day was the starting point to start taking Gamma into the development cycle. So the mineral resource estimates complete. We'll now move into feasibility work and start preparing mining lease application and environment permit applications. There's some precursors to that. There's land ownership studies that have to be done, but in a sense, that work will go in parallel to Apollo's trajectory to production.

8:48 And In fact, I'm heading to PNG on Wednesday. I'm visiting both with Polo. One of the core reasons I'll be going to Gamma is to agree on the site location for wharf infrastructure and the mill infrastructure. It's happening. We're at the beginning of that cycle, but

9:14 it's now happening. Our JV partner is already starting to think about and is in China looking at selection of mill equipment. We got a lot of confidence out of that mineral resource estimate the other day and it's given us plenty of confidence to start to accelerate the development of that project. Great. Circling back to you, Chris, looking beyond Ferguson, you've talked about district scale potential and possible deeper or offset porphyry systems beyond the current cabang resource. What has the recent surface work and integrated data reviews, geochemistry, spectrum mapping and drone magnetics told you about where the next targets might sit and how will the upcoming IP survey build on that?

10:02 Yeah, you know, it's a, FENI is a great project So, you know, what's powerful here is that we're not relying on a single data set. So we've brought together the drill assays, downhole spectral data, surface geochemistry in the soils, and both historical and recent geophysics like our drone magnetics. Then we've interrogated all of it together. It all converges on the same picture. Cobain is an epithermal gold system telescoped over an older porphyry copper moly system. We can see that in the deeper drill holes where the high-grade gold sits above a copper moly, phytostatically altered porphyry system.

10:48 That's clear evidence for a porphyry target underneath Cobain. And several independent vectors, including 3D inversion of our dry mags and spectral data, all point southwest towards a more focused porphyry centre at Damago. The other side of the story is the district scale. Fenny is an alkalic, red-choset, epithermal system, much like Leahy in the same geological setting as the Lihiu Island chain. We have a string of prospects outside of Cobain. Some are historical and known like Dome, Saddle, Cold Arrow, Damago and some others that have yet to earn a name, but where we can see the beginnings of repeating prospects there. All of these share Cabang's similar structural setting, geochemical and geophysical signatures.

11:48 We see a real potential to be able to repeat Kibang across the island. So, Kibang itself is still open to the south-west and north-east, which is where our current drilling is focused. And then the next big targeting catalyst alongside our drilling obviously is our upcoming 25 square kilometre IP survey. So that will test the coincident targets we're seeing in the geochemistry drilling, drone data, test the Danmigal porphyry vector, and then help us rank follow-up drilling beyond the current resource. So you know Fenny is not just 1 deposit, it's a district.

12:35 Cobain has the potential to repeat across the island and sits over at Balfry that we can also vector towards. Exciting times. Yeah, exactly. And I'll let Tim highlight it even further here as we close off. With resource updates also planned, if any, can you give investors a sense of how the pieces fit together into a broader multi-asset Gold platform in P&G and what milestones we should be watching for over the next 12 months? I think a key point of difference about Adderton is that we're developing 3 projects in effect simultaneously. They're at slightly different stages. Wapolo is a very new production opportunity And as I mentioned in my earlier comments, we're still confident and on target to have first production in October this year.

13:29 Gamma will be probably around about 14 to 15 months behind Wapolo. It's a greenfield development, whereas Wapolo is a brownfield development. So we expect the permitting will take a little bit longer. But my experience in P&G from the initiation of permitting or the submittal of your mining lease has typically been around 12 months. So if we target to get that ML submitted in 0.25 4 this year, we'd expect that to come out of the system in 0.25 4 next year and aim for construction and first production in late 0.25 1, early 0.25 2, 2028 at Kamina. And of course, all along while we're doing that development and heading into production and in production at Wupala.

14:18 We've got the ongoing drill, geophysics, spectral mapping work that's going on at Fenny, which we're very confident will be able to take us into a PEA, sorry, an MRE update in a PEA, probably in 0.25 1, 2027 for Feeney. And one thing I'll remiss in saying is that we'd be also looking at doing something like that for Gamma as well, most likely in Q4 this year or Q1 next year. I guess the point is this is not around catalysts that are just coming from 1 asset, the development of 1 asset. There's a catalyst coming from the development of 3 assets that's progressing effectively simultaneously, albeit they're in slightly different stages of their development.

15:12 Great. Yeah, a lot of moving pieces, a lot of updates that we look forward to getting your updates on once they cross the wire. So thank you so much, Tim. Thank you so much, Chris, for taking the time out of your evening to join this call. And we look forward to the future updates. If you did join in and you came in a little late, this is being recorded and the replay will be available shortly after we conclude. But thank you, gentlemen. ♪♪