2024, December

21 January, 2025

Quarterly Activities and Cashflow Report for the period ending 31 December 2024

Boab Metals Limited (ASX: BML) ("Boab" or "Company") is pleased to provide the following

activities and cashflow report for the quarter ending 31 December, 2024. During the quarter, the Company continued progressing its flagship Sorby Hills Lead-Silver-ZincProject ("Sorby Hills" or

"the Project"), located in the Kimberley Region of Western Australia.

HIGHLIGHTS

• Binding US$30 million Prepayment Terms Sheet and associated Offtake Agreement executed between Boab's 100% subsidiary Sorby Hills Pty Ltd and global commodities trader Trafigura.

Prepayment Terms Sheet - Key Terms

• US$30 million Prepayment Facility from Trafigura to be applied towards the construction and development of the Project.
• Interest Rate of SOFR + 5% per annum.
• 5-yearTerm from first drawdown with an 18-month interest-only period.

Offtake Agreement - Key Terms

• • 75% of lead-silver concentrate from Sorby Hills for a minimum of 531,000 tonnes.
  • If Boab obtains alternative financing to the Prepayment, the Offtake volume will revert to 50% (or greater, at Boab's discretion) for a minimum 354,000 tonnes.
  • If Financial Close is not achieved on the Prepayment, the Offtake volume will revert to 25% (or greater, at Boab's discretion) for a minimum 177,000 tonnes.
• WA Government consented to key amendments for Sorby Hills required under Part IV of Western Australia's Environmental Protection
• Boab continues to progress opportunities to further reduce capital and operating costs.
• Targeted Final Investment Decision in 2H 2025.
• The Company had a cash balance of approximately A$3.5M as at 31 December, 2024.

Boab Managing Director and CEO, Simon Noon, stated:

"The December quarter of 2024 saw significant project execution milestones achieved. The binding Prepayment and Offtake agreement with Trafigura is highly favourable for Boab and is the result of a

thorough offtake process that demonstrated the attractiveness of the Sorby Hills concentrate. The EPA amendments provide Boab with scope to implement the Sorby Hills Project in line with the Project's

FEED study, including an increase to the open pit depth and mining production rate. We look forward to building upon these milestones and the momentum that we have generated over the past six months to advance Sorby Hills to a Final Investment Decision in 2025."

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Background Information

Sorby Hills is located 50km from the regional centre of Kununurra in the East Kimberley of Western Australia and has access to existing sealed roads to transport the concentrate 150km from the site to the facilities at Wyndham Port. The Project comprises a Mineral Resource of 47.3Mt containing 1.5Mt Pb at 3.1% and 53Moz silver at 35g/t (Table 1). The current Sorby Hills mine plan comprises 18.3Mt at 3.4% Pb and 39g/t Ag of which ~83% is classified as an Ore Reserve (Table 2).

On 6 June 2024, Boab released the results of a Front-EndEngineering & Design Study ("FEED Study") on the Project showing strong pre-tax economics including C1 operating costs of

US$0.36/lb payable Pb (incl. a net silver credit of US$0.37/lb payable Pb), NPV8 of A$411M, IRR of 37%, A$778M free cash flow, and an average annualised EBITDA of A$126M. Pre-production capital costs were estimated to be A$264M.

With operating costs covered by revenue generated by a historically non-volatile lead price, the Project free cash flow is exposed to movements in the price of silver.

The Company currently owns 75% of the Project and has executed an agreement to acquire the remaining 25% of the Project upon a Final Investment Decision (ASX release 23 September 2024).

Binding Offtake and Prepayment Agreement

During the quarter, Boab (via its 100% own subsidiary Sorby Hills Pty Ltd ("SHPL") executed a binding Offtake Agreement and associated US$30 million Prepayment with global commodities trader, Trafigura (ASX release 10 December 2024).

The Prepayment terms include a 5-year term, an interest rate margin of SOFR1 + 5%, and an 18- month interest-free period after which repayments will be paid via equal monthly instalments. Financial Close and drawdown of the Prepayment are subject to, amongst other things, the execution of full-form documentation, the finalisation of outstanding due diligence, and the Project being fully-funded.

Base offtake terms are for 75% of the Sorby Hills Lead-Silver concentrate up to a minimum of 531,000 tonnes (~7 years based on the FEED Study production schedule) with market standard metal payabilities, metal pricing based on spot pricing and a lead treatment charge linked to the quoted annual benchmark. Should Boab utilise alternative financing to the Prepayment or not reach financial close on the Prepayment, Boab shall have the discretion to reduce the offtake volumes to 50% and 25% respectively. In each case, lead treatment charges will revert to an average of the prevailing annual benchmark and the spot lead treatment charge.

The agreements are the result of a highly competitive process including other global traders and smelters that demonstrated the attractiveness of the Sorby Hills concentrate product and represent a key milestone towards a final investment decision on Sorby Hills and a cornerstone of

Boab's financing solution for the Project.

• Secured Overnight Financing Rate
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EPA Amendments

During the quarter, the Western Australian Government provided consent to key amendments to the Sorby Hills Project existing approval under the Environmental Protection Act ("EPA")(ASX release 23 December 2024).

The consent was the result of a detailed information exchange with the Western Australia Environmental Protection Agency department to demonstrate that the Project in its current

expanded form is in accordance with requirements of the EPA. The amendments provide Boab with scope to implement the Sorby Hills Project in line with the Project's FEED study, including an

increase to the open pit depth and mining production rate. The amendments also provide the opportunity for Boab to further reduce capital expenditure through an optimisation of the proposed water management strategy and rationalisation of associated infrastructure.

All EPA amendments required under Part IV of the Act to commence the implementation of the Sorby Hills Project have been received and the Company will now proceed toward finalising

outstanding regulatory approvals, including the completion and updating of documentation required under the federal Environmental Protection and Biodiversity Conservation Act ("EPBC") as a result of the increase in the Project's scope since the Project was originally assessed in 2013.

EPA approval to mine the Beta Pit, which is scheduled to occur at the end of the current Project mining plan, will be sought subsequent to the commencement of operations.

Cost Reduction Initiatives

As the Company advances toward a Final Investment Decision, it continues to assess opportunities

to reduce costs. Such opportunities include ongoing due diligence of the potential acquisition of Sandfire's DeGrussa process plant as a means to reduce capital costs, and the feasibility of utilising

100% grid power sourced from the Ord hydroelectric plant as a means of reducing operating costs.

KEEP confirmed as a Target for Further Exploration

In early August 2024, Boab announced the commencement of a Phase VIII drilling program to follow up on its exploration success from the 2023 campaign at the KEEP Target. The Phase VIII drilling program comprised of 4-hole deep sonic/diamond step-out drill holes for a total of 1,352m and was completed ahead of schedule and within budget.

Assay results from the Phase VIII drilling program released during the quarter (ASX release 22 October 2024) confirmed the continuity of mineralisation and support future exploration of the KEEP Target. Boab is of the view that the KEEP Zinc-Lead Prospect area is now established as a compelling sub-surface target with scope for future discovery.

Key intercepts of base metal mineralisation from the drilling of the Keep Target include:

• SHSD_184: 9.55m @ 5.10% PbEq (2.59%Pb & 2.26% Zn) and 17.6 g/t Ag from 242.6m
• SHSD_189: 2.00m @ 7.73% PbEq (1.23% Pb & 5.86% Zn) and 36.7 g/t Ag from 303.0m

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• SHSD_189: 13.0m @ 1.23% PbEq (0.73% Pb & 0.45% Zn) and 2.76 g/t Ag from 314m
• SHSD_188: 7.6m @ 1.00% PbEq (0.83% Pb & 0.14% Zn) and 7.31 g/t Ag from 66.4m

Financial and Corporate Overview

The consolidated cash balance of the Company as at 31 December 2024 was A$3.54M. During the period, the Company paid $151k to related parties. These payments were made to Directors of Boab

Metals Limited in relation to salaries and directors' fees, on normal commercial terms.

On 26 November 2024, the Company held its Annual General Meeting and advised Shareholders that all resolutions put to the meeting were passed on a poll by an overwhelming majority.

The Board of Directors have authorised this announcement for release to the market.

FOR FURTHER INFORMATION, PLEASE CONTACT:

Simon Noon

Managing Director & CEO

Phone: +61 (0)8 6268 0449

Email:info@boabmetals.com

Table 1: Sorby Hills Mineral Resource Estimate - Pb Domains only.

Note: Tonnes and Grade are rounded. Reported at a 1.0% Pb Cut-Off. Discrepancies in calculated Contained Metal is due to rounding.

Table 2: Sorby Hills Ore Reserve Statement.

Note: Tonnes and Grade are rounded. Reported at a 1.0% Pb cut-off. The above data has been rounded to the nearest 10,000 tonnes ore, 0.1% lead grade and 1,000 lead tonnes, 1g/t silver grade and 100,000 silver ounces. Discrepancies in calculated Contained Metal is due to rounding. Ore Reserves have been calculated using metal prices of A$3,313.91/t Pb and A$37.89/oz Ag and royalties of 4.3% of gross revenue including allowable deductions.

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About Boab Metals Limited

Boab Metals Limited ("Boab", ASX: BML) is a Western Australian-based exploration and development company with interests in Australia and South America. In Australia, the Company is currently focused on developing the Sorby Hills Lead-Silver-Zinc Joint Venture Project in WA. Sorby Hills is located 50km from the regional centre of Kununurra in the East Kimberley and has access to existing sealed roads to transport concentrate from site to the facilities at Wyndham Port, a distance of 150km. Established infrastructure and existing permitting allows for fast-track development and production.

Boab owns a 75% interest in the Joint Venture with the remaining 25% interest held by Henan

Yuguang Gold & Lead Co. Ltd. Boab holds an option to acquire Yuguang's interest in the Project.

Compliance Statements

The Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the 'JORC Code') sets out minimum standards, recommendations and guidelines for Public Reporting in Australasia of Exploration Results, Mineral Resources and Ore Reserves.

Information included in this activities report relating to Exploration Results has been extracted from the announcement titled KEEP confirmed as a Target for Further Exploration dated 22

October 2024 , available to view at www.boabmetals.com.au. The Company confirms that the form and context in which the Competent Person's findings are presented have not been materially

modified from the original announcement.

Information included in this activities report relating to Mineral Resources has been extracted from the Mineral Resource Estimate dated 17 December 2021, available to view at www.boabmetals.com.au. The Company confirms that it is not aware of any new information or data that materially affects the information included in the Mineral Resource Estimate and that all material assumptions and technical parameters underpinning the estimates, continue to apply and have not materially changed. The Company confirms that the form and context in which the

Competent Person's findings are presented have not been materially modified from the Mineral

Resource Estimate.

Information included in this activities report relating to Ore Reserves, Production Targets and Financial Forecasts has been extracted from the Sorby Hills Definitive Feasibility Study dated 19 January 2023 and Sorby Hills FEED Study Results dated 6 June 2024, both available to view at www.boabmetals.com.au. The Company confirms that it is not aware of any new information or data that materially affects the information included in the Ore Reserve Statement and that all material assumptions and technical parameters underpinning the estimates, production targets

and financial forecasts continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person's findings are presented have not been

materially modified from the Ore Reserves Statement.

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Metal Equivalent Calculation Method

The contained metal equivalence formula is based on the Sorby Hills Feed Study including:

• Lead Price US$2,253.19/t;
• Lead recovery of 91.0% (weighted average of oxide and fresh Pb recoveries);
• Lead Payability rate of 95%;
• Silver Price US$27.4/oz;
• Silver recovery of 81.8% (weighted average of oxide and fresh Ag recoveries); and
• Silver Payability rate of 95%.
• Zinc Price US$2,500/t
• Zinc Recovery of 91%
• Zinc Payability of 95%

It is Boab's opinion that all elements included in the metal equivalent calculation have a

reasonable potential to be recovered and sold.

The formula used to calculate lead equivalent grade is:

MetalEq (%) = Gpri + (Gpri × [∑i Ri Si Vi Gi ]/(Rpri SpriVpriGpri))

where R is the respective metallurgical metal recovery rate, S is the respective smelter return rate, V is metal price/tonne or ounce, and G is the metal commodity grade for the suite of potentially recoverable commodities (i) relative to the primary metal (pri).

Metal equivalents are highly dependent on the metal prices used to derive the formula. Boab notes that the metal equivalence method used above is a simplified approach. The metal prices are based on the DFS values adopted and do not reflect the metal prices that a smelter would pay for concentrate nor are any smelter penalties or charges included in the calculation. Owing to limited metallurgical data, zinc grades are not included at this stage in the lead equivalent grade calculation.

FEED Study Macroeconomic Assumptions

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APPENDIX 1

INTERESTS IN TENEMENTS

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