Mila Resources (LSE:MILA) — Investor Update

0:01 Good morning, and welcome to the MILA RESOURCES PLC investor presentation. Throughout this recorded presentation, investors will be in listen only mode. Questions are encouraged and could be submitted at any time by the Q and A tab situated on the right hand corner of your screen. Simply type in your questions and press send. The company may not be in a position to answer every question it receives during the meeting itself. However, the company can review all questions submitted today and publish responses where it's appropriate to do so. Before we begin, I'd like to submit the following poll, and then I'd like to hand you over to Mark Stevenson, executive chairman. Good morning, sir. Yeah. Good morning. Today, we'd like to focus on our Queensland assets, which we've been working on now for over a year. And they're very important for us as a company because they we found them, and they they fit the criteria we were looking for for an asset in a good jurisdiction, a top jurisdiction that we found.

1:05 And Well, sorry. Queensland is just a really good jurisdiction. It's got discoverable ounces for us that we can produce very easily. We've we've fully funded for this next campaign. We've been working on this now for two years, and we're in a we're we're we're just in a strong jurisdiction. MILA was set up two years ago oh, sorry, more than two years ago. But a year ago, we really came across this this asset, which we bought from EMX Capital, or we're in the process of buying it from EMX Capital.

2:06 Our first round of drilling campaign, which was very successful, has enabled us to fit the criteria to take up the option, which we haven't done yet, but we are fully funded now for the second phase of drilling, which we which Alastair is going to explain in a moment that will take us forward. The area of Queensland we're in is surrounded by substantial mining companies, and we think we can really unlock the value of these assets. They've got very, good potential. And with the expertise that we've got in our team, I think we can unlock this value, and we're really focusing on trying to keep the discoverable ounces on the cost per dollar of the discoverable ounces as low as possible.

3:09 Could you go to the next slide, please, Alastair? So actually, this is taking Alistair. We'll now explain exactly what our drilling campaign is coming into. Cool. Okay. Thank you, Mark. Just a refresh for people who've seen these assets before and anyone new. From EMX, we basically took the option for three licenses, Monal in the North, Mount Steppen to the South, near to Mount Rawdon Mine, and Yarrell project in the center. All three had historic non jaw compliant licenses on them and had a good level of exploration previously completed. Our focus was Yarrell where in the kind of mid nineties, a a couple of, you know, 30,000, 40,000 ounce shallow gold deposits from surface were defined, but where since then, very limited work had been undertaken. The initial hard work of finding mineralization had been completed, but then it just flown under the radar for a number of reasons for the last twenty five years, really.

4:14 And systematic modern exploration methods had not been applied to it. So upon reviewing these projects and Yaowl in particular, we saw a clear opportunity there for MILA to take an option on, advance them, and realize some real value where others had perhaps missed it. Now Yarrow, the reason we liked it, on the right, you can see the historic drill results and the yellow polygons are where there were historic resources defined, again, from surface down to about 80 meters. There were multiple wide and good high grade hits within these old resources. But just by nature, the exploration happened in the early nineties, and it was a different market back then. And the initial discovery was never pursued.

4:59 And since then, other operators have maybe had a bit of a scratch at it or the most recent operator actually focused on a cobalt piece of mineralization within the license and didn't really get into the gold so much as well. So when we reviewed this data, we thought it looks good, and there's a clear potential there. And there's real upside. Like I said, the resources defined were shallow, fifty, sixty meters, but there were intercepts down a 150 meters already in that historic database, which just hadn't been followed up. So it was a clear path for us to test this, validate it, and realize value. So that led us to our phase one drilling and our phase two drilling, which is about to kick off, which I'll speak about shortly. As Mark's mentioned, the reason we like these assets is they're in a good part of the world. Obviously, Australia is probably the most famous mining destination in the world anyway. It's the jurisdiction we like. But within Queensland and, you know, kind of just across the border in South Australia, there are many examples of great deposits which have made a good amount of money in the past or operating now at, you know, very decent margins with, you know, lower grade material, cut down to, you know, point nine grams per ton of in places as well, still making very decent operations, which have been profitable for a long time.

6:18 For us, obviously, we're kind of at the top, and annual production head grade is where we're trying to drive towards to, and exploration is where we're at. But just for comparison, Krakow, which is about, you know, 50 kilometers to the the west of us, is a very solid operation as well, about 25,000 ounces a year to a very decent grade. A couple of million ounces are defined in that deposit over the the period of its ninth, and they're still exploring there. Gympie Historical Mine kind of, again, just in the neighborhood. Closed back in the nine twenties, but produced a lot of gold for a long time. And, obviously, over the south over the borders, Evolution's kind of flagstone a flag to asset at the moment and is producing a lot of gold. Obviously, that's where everyone would like to get to, but it just shows to us that it's the neighborhood's right. The geology's right. Everything is kind of there's a lot of positives for us taking on these assets and advancing them.

7:09 As a direct comparison to Krakow, which is probably the closest kind of operating mine to us with similar geology, Just to show on the left here, this image is a kind of Krakow footprint for their the deposit and their mine mined area. It's about four kilometers wide, about the same long. And on the right is our kind of Yarrow Central Yarrow license with all the historic kind of intercepts and gold mining areas we have within that. Yarrell is where the historic resources are, but we have other confirmed gold mineralization intercepts at Limestone Creek and Magpie. And this is the cobalt where previous operations got a bit distracted. But the structure and just the regional kind of mineralization intercepts make us confident that while we're focusing on Yarrow Central at the moment to develop the resources there, there's plenty of upside along this structure to really add ounces.

8:04 Again, why are we confident Yarrow could be the next kind of key discovery in Queensland? Well, the proven model of mineralization as far as appealing for us as well. It's very similar to Krakow and Gympie. Our initial exploration in phase one proved that mineralization model holds up. There's nothing too scary there yet, and we were able to predict the relative confidence where we were going to hit gold mineralization. That, yeah, proved out. So growing confidence in what we're dealing with. Default itself then covers a strike length of 20 kilometers and only about four kilometers of that is actually being tested, of which the resource is sitting about two kilometers of that. So there's very clear upside there just from systematic focused exploration. Also, we have some high grade zones, which means we're not reliant on kind of a mass and huge tonnage of low grade material. We get some very good high grade material over wide intercepts.

8:59 Some of those came up, obviously, in our phase one drilling and in the historic database. There's plenty of evidence for them as well. Our initial modeling shows that it follows a kind of an established pattern of a high grade core to this deposit with wider, lower grade material around the outside. So, again, the geological model is hanging together, and we're confident on our exploration process. As mentioned, there's lots of good things in Yarrow, where the geology works, the jurisdiction works, but modern exploration hasn't really hasn't been systematically applied for it for twenty five, thirty years. There's a clear gap there where we can come in and update things like the geophysics, which we'd obviously issued updates on. Simple thing on that one is you can see the difference in resolution between 30 year old geophysics and what we're working with now, where guys back in the early nineties might have drilled and puzzled about why they've missed something. We can look at our data and understand exactly what is going on and explain what's happening with the structure in a much greater confidence.

9:56 So that's already helping us and makes us more efficient with our drill programs. And we have a clear path forward. As I said, we did our phase one drilling just to validate those historic intercepts and give us confidence, and now we have that confidence. We're pushing forward aggressively but confidently towards a maiden resource, which is why the drill rig has just rolled onto site. So our focus on the exploration rollout at Yarrow. Well, phase one for us is what we've completed, and that was us saying we believe in the potential of this deposit, but we need go and prove it to ourselves and obviously our shareholders. So we did that phase one drilling to validate historic intercepts, but also test a couple of new areas and see if we can start bolting on hopefully, ounces to these old these historic resources and really show some scale to it.

10:45 Phase two, which is where we're at now, which is where we're basically filling the gaps and expanding out beyond that historic footprint. Our aim now is to push this towards a resource. That's obviously where we start realizing value and showing we have strong assets within MILA. And phase three, obviously, the prize is to actually develop this into a really appealing mining project. We are extend extending the resources out where we're drilling at the moment, but also bringing online those as well. It's not really answers we have in the books. A quick recap of our phase one drilling. On the right, you can see our image here in the red dot to where we put some holes in to check these historic intercepts and test a few areas as well. And in the left and well, key intercepts.

11:32 Every hole we drilled hit gold mineralization with some hitting some very good grade materials such as, you know, one nine seven seventeen meters of over five grams of turn and some extremely kind of higher grade hits mixed within those as well. Obviously, it's just a selection of a couple of holes here as opposed to all of them. But, yeah, they gave us a real confidence that there's something here. We're getting a grip on the geology, and we can be more aggressive with this. And there's there was true upside. The the guys in the nineties did good work. They did the hard work for us, but they they only scratched the surface of this, which brings us to where we're at now. Following that phase one drilling, we have the confidence that there is a a resource for the taking here and not a small, you know, kind of thirty, forty thousand ounce resource. We are looking kind of in the hundreds, hopefully.

12:20 So we then have to push forward with proving that. So our phase two work now is testing the extensions of these mineralized zones, defines out this, and starting the path to systematically convert this discovery into a district scale resource. First up, what we had done in the last couple of months is just review our data, make sure we have every kind of angle covered, and what we're going to do with the drilling as efficient and as high quality as possible. We had the RSC, reasonably well known consultants in Australia, New Zealand, and globally now, have a look at the historic data, our new data, and just validate our thinking. And they came back and said, yep. We agree with your thoughts on this. There's a clear potential there, and there's nothing, again, too scary in this. The grade is reasonably kind of well behaved, and the systematic trading campaign should be able to unlock this.

13:11 Following that, we have the land access agreements with the stakeholders who we have a very good relationship with and drilling scheduled to commence shortly. I mean, the rig is on-site, so surely it's basically imminent. And phase two fully funded into next next year for us to get this done. Our plan is to have diamond drilling initially, which is the rigors on-site just to give us some more structural control, give us some more geological info, and then they'll give us the framework upon which we're gonna follow in behind with RC drilling and a significant number of meters to build up that initial resource. Again, this goes this shows our updated geophysics and this extension we had in the last couple of months to the south with new targets appearing. These high grade zones are essentially associated with intrusions, and the goal occurs alongside the contact zone of those intrusions.

14:01 So we will develop these a bit further as well, and these are just some of the hits from within our our phase one drilling. Good quote from Mark there, which is the next phase is a pivotal step forward as we build on the success of our initial program. He said phase one gave us the confidence, and phase two is where we stepped beyond, really stepped beyond the historic work and actually try and build this out into a significant resource. Taking off through our timeline. Obviously, at q one, we did our target definition at at Yarrow and did that updated max survey. Q two is when we did our phase one drilling and had some very encouraging intercepts. Q three, we basically been kind of getting our data in order, getting our access agreement sorted, and filling any other gaps we need, but also engaging with people like RC to make sure the work we're doing is high standard. We're not gonna get tripped up in the future, and we can be as efficient with this as possible in terms of time and expense, of course.

14:58 And then q four, where we're at now, is exciting stage, we have the rigs rolling into site, starting off with some diamond drilling during the next month, and then on the heels of that RC drilling to really bulk out that initial resource driving towards that updated kind of, you know, chalk standard resource at the start of next year. Meanwhile, not forgetting that we have the Mount Stebb and Mona licenses, which both have some very compelling targets within them themselves. The geological team we've just established out there will be starting to do some work on these targets as well to really bring them along and develop that pipeline of assets for us. And, obviously, I'll I'll be out at the site next week reviewing the drilling and getting stuck into the regional work as well. The appendix of this presentation, if anyone wants to access it, has a bit more info.

15:48 So it's Mount Steadman to the south of the background of that one, again, with historic mining and resource to find on that. Again, we are going to update the geophysics and do some regional work to develop the potential of this one. And then our itself, we obviously did our reconnaissance last year on this one and found some extremely encouraging ground samples around historic mining areas. So we just need to, again, bring these modern exploration methods to play on this license, and we see a lot of potential here. We have some, hopefully, high grade gold mineralization and also some strong showings of copper up there as well. So that's a there's real potential in both the other licenses, which we're not forgetting. Mostly Kathleen Valley, existing asset, which we continue to try and progress.

16:37 And, yeah, that is all for today. That concludes our part of our presentation. Mark, Alastair, thank you very much for your presentation. Ladies and gentlemen, please do continue to submit your questions just by using the q and a tab situated on the top right hand corner of your screen. Just while the company take a few moments to review those questions submitted today, I'd like to remind you that recording of this presentation, along with a copy of the slides and the published q and a, can be accessed via your investor dashboard. Mark, Alistair, as you can see, we have received a number of questions throughout today's presentation. Can I please ask you to read out the questions and give responses where appropriate to do so, and I'll pick up from you at the end? Great. Thank you. And, Mark, I'll give this first one to you if that's alright. It's a have you had any approaches to acquire or JV your assets at Kathleen Valley?

17:23 If not, will you be marketing them? Yes. I just want to assure the investors that we are working hard behind the scenes on our Kathleen Valley assets. It's not something I want to discuss at the moment, but, hopefully, over the next months, we'd be able to update you with what's going on with Kathleen Batney. Great. K. Next question. When can we expect to receive assays from your exploration in Queensland, and will you be seeking a partner to scale up exploration activity? I'm happy to take the first part of that. Yes. I mean, we're starting drilling now, so I won't give specific dates for receiving assays. You never know what the lab will do, or you can run into delays in the field. But, essentially, between now and kind of, you know, November, end of November, people should be looking out for information from the diamond drilling and, obviously, the RC following that.

18:24 We will obviously try and progress things as quickly, but as properly as possible. We're keen to get this data in as well, but we're gonna make sure we do it right. And I could probably answer the second one for you, Mark. It's a would you be seeking a partner to scale up exploration activity? We're fully funded at the moment, and we're doing what we need to do. Obviously, we're always open to conversations. I think Mark probably say the same, but at the moment, we're focusing on getting the work in the field done. K. What are the key risks that could delay or increase the cost of phase two drilling campaign? At the moment, I mean, they're kind of massive shifts in the kind of, you know, the exchange rate wouldn't be ideal, but I think we're pretty happy that we're in a good position. We've got a good contractor.

19:10 They've done efficient work for us on the first phase of drilling. The ground is reasonably straightforward, so then we've got good relations with the stakeholders and landholders as well. So there's kind of key flags or red flags or things that can delay drill programs. We don't have any of them here. Extreme weather, obviously, is something we can't control, but in terms of kind of, you know, human interference or cost, we're pretty happy that we're we're across everything. Alastair, I would add on that that we have actually moved the capital in place already into Australian dollars, so that that takes any foreign exchange risk out of the current phase. Yeah. Fairly good. So, yeah, we don't see any major risks, to be honest. I'll get this to you. And, Mark, do you see potential for JV partnerships?

20:01 Down the road, but like I think Alastair said just now, we're fully funded for this phase. We've got a very strong investor base that's backed us for years now. I don't see any point in bringing anybody else in. We are we're not really looking to advance the asset in the short term to a resource of any size. We want to fully develop it for ourselves to to extract the maximum valley value from it in the shorter term before we're opening up any information really to the wider community in that area. Cool.

20:48 Next one. Will MILA be in a position to have data to evaluate all ex Australian exploration assets prior to agreement period end? I'm assuming it's basically the Queensland assets. From our point of view, we already have a lot of data on the assets. We wouldn't have taken it this far if we didn't already like them. Was our key focus where we saw a lot of potential, but then obviously proving that data is reliable gives us confidence in Monal and Stedman as well. We have been on the ground in Monal and Steadman as well, taking our own verification checks and grab samples and mapping structures. So we have a lot of confidence in these assets already. We're going to do a bit of work. And as I said, I'm heading out there next week to do a bit more, but we already have very strong confidence in these assets. This one for you, Mark. When does MILA expect to raise further funds?

21:39 I think, as as we say, we are fully funded for this phase. We've kept our overheads. Our corporate overheads are extremely low. Our g and a is kept to absolute minimum. We really do focus on keeping our costs down to make sure that every penny that we've raised in the past goes into the ground. So we're very, very confident we're in a nice strong position for the next phase of drilling. And, hopefully, that will produce the results that enable us to decide where our future's going in the near future. Cool. Next one. There looks to be a lot of holes drilled into Yarrow. How deep are they, and how much drilling do you need in those areas to create a resource?

22:30 Yeah. This is one of the things we think drove people maybe overlooking this this prospect is that if you look at this that plan view I showed you of Yarrow, it looks like there's a lot of holes drilled into it. And in terms of colors, there are reasonable amount. When you actually start to interrogate the data, what you find is a lot of those were kind of perspective, kind of, like, early percussion holes or some large majority were drilled in the wrong direction to detect anything. And then the actual later holes in there, the RC ones, which went into the initial resource were actually kind of, you know, maybe 50% of those, if that. And those only, on average, went down to about 80 meters, but one or two kinda sunk down to kind of, you know, one fifty, and then some later holes by later operators, again, drilled in the wrong direction.

23:17 So we saw that actually when we stripped out the noise from that dataset, actually, there was essentially one or two good kind of drill programs that had been done on this, and they've had good success. But then those hadn't actually been followed up, which is why we liked it. So we thought, actually, we can see something here, which maybe has been overlooked in our phase one drilling act us up on that. And in terms of meters we need to do, maybe we can't set look. We're doing about 1,600 meters of diamond here just to give us a framework, and then we'll follow-up with a few thousand RC. In terms to fully develop the resource, you know, there's a few drill programs to go yet, but get us this initial resource. We're happy that the work we're doing between now and the end of the year will get us something decent. This one again, how soon should Daryl results be available? Like I said, the rig's rolling in now. It just comes down to us processing, but look out for the next couple of months.

24:12 Same with this next one moment. Do you next expect some results from the phase two drilling instead of ASAP for us as long as everything goes to plan the labs behaving? Okay. One for you, Mark, I think. Compared to peers, MILA looks heavily undervalued at 5,000,000 market cap. Could you let us know your thoughts on our current value? Well, I would totally agree with that that statement. Compared to our peers, we've we've actually picked up from a pretty low level earlier in the year or extremely low level with the work we've been doing in Queensland, which I don't think has really been picked up just yet by the market fully.

25:00 I think the drilling campaign that we get will start highlighting exactly what we think is in the ground there. And I think, you know, there's obviously a lot of the questions have been looking at Kathleen Valley. I think if you look at the Australian companies, the larger ones, you know, our neighbors, Bellevue Gold and Linetown, they've had very good runs on the Australian stock market based on, obviously, the gold price going up and the lithium price recovering somewhat as well. So there is there is interest in our Kathleen Valley assets just because the market is stronger, but it is something that we are working at on in the background.

25:56 And, hopefully, we can be able to update people down the road. That's probably feeds into the next one for you, Mark, which is where do you see the share price in 2026? Well, we we're clearly gonna have the results from our phase two drilling, and I think the campaign that Alastair's planned is very straightforward. We're we're really maximizing the historical workings and the drilling we've done already to to expand a long strike and at depth within an area that looks very promising from the geophysics.

26:48 So I'm very confident that the stock market or the price will be substantially higher as long as the results come out, and we're trying to reduce the risk on that as much as possible. Cool. Next question. At the moment, it all looks a bit bitty, if you know what I mean. Is this new campaign designed to fill in the gaps? Simple answer to that is yes, and I do understand what you mean. That kind of bitterness is that initial discovery, which was done in the nineties, and we validated that. Now we're moving beyond it. But, yeah, we're we're looking to scale now, and this new program is designed to prove that the potential of that exists. Next question. Is there other work being done to produce news, and is that budgeted for I guess this means kind of beyond Yarrow and the drilling. Obviously, the drilling is our headline news that we expect to come out in the sector, obviously, what the market likes to see and what we like to see because building resources is the the end game of this.

27:47 But we are obviously undertaking work in Manal and Mount Steadman as well, and those are the areas within Yarrow, the wider Yarrow license. There are a pipeline of of prospects for us to develop up to the drill ready stage, and we do plan to do some work to advance those as well. So, obviously, Yowie is the focus, but we're not losing sight of the fact there's potential elsewhere within these these licenses. Yeah. I'll I'll just add on to that that our team is looking at it. It's all within the overheads that we've got already with the junior geologist as part of our payroll now. It's so much more efficient than having a consultant just to come in and work on the projects. So we have got the team in place to start low cost work across the whole projects.

28:39 Yep. That's a good summary. Our in country team is there. It means we can just keep working constantly and not just do some kind of campaign and wage and campaign and wage. This is kind of a constant steady stream of work we want to get underway now and just keep ramping up. Mark, Alastair, thank you for answering all these questions you care from investors. And, of course, the company can review all questions submitted today. We'll publish those responses on the Investor Meet company platform. Just before redirecting investors to provide you with their feedback, which I know is particularly important to the company, Mark, could I please just ask you for a few closing comments? Okay. Yes. I would just like to reaffirm that we're fully funded for this phase. We've got our our costs under well, not under control. Exactly know exactly what we're doing to to get through this phase.

29:32 And we've got a clear plan to deliver value for shareholders. You. Mark, Alastair, thanks for updating investors today. Can I please ask investors not to close this session as you'll now be automatically redirected to provide your feedback in order that the management team can better understand your views and expectations? This will only take a few moments to complete, and I'm sure it'll be greatly valued by the company. On behalf of the management team of MILA RESOURCES PLC, we'd like to thank you for attending today's presentation, and good morning to you all.