2024 Half Yearly Report

ABN: 43 107 159 713

CONSOLIDATED INTERIM FINANCIAL REPORT

For the Half Year Ended

31 December 2024

TABLE OF CONTENTS

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BOAB METALS LIMITED | HALF YEAR REPORT FY-2025

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DIRECTORS' REPORT

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Your Board of Directors ("Board" or "Directors") present their report on the consolidated entity (referred to hereafter as the Group) consisting of Boab Metals Limited (the "Company" or "Boab") and the entities

it controlled at the end of, or during, the period ended 31 December 2024

DIRECTORS

The names of the Company's Directors and Secretary in office during the half year and until the date of this report are set out below.

REVIEW OF OPERATIONS

During the half year to 31 December 2024, Boab Metals Limited made significant progress towards a Final Investment Decision at it Sorby Hills Lead-Silver-ZincProject ('Sorby Hills' or the 'Project'), located within the Kimberley Region of Western Australia. The Project is Australia's largest

undeveloped, near-surface lead-silver-zinc deposit with granted mining leases, EPA approvals and located 50km from established infrastructure in Kununurra and 150km from Wyndham Port.

Key activities undertaken and milestones achieved during the period included:

• Option Agreement executed with Joint Venture partner to acquire their interest in the Sorby
  Hills and take Boab's interest from 75% to 100%.
• Binding US$30M Prepayment Terms Sheet and Offtake Agreement executed with global commodities trader Trafigura.
• Opportunity identified to acquire DeGrussa process plant from Sandfire Resources as a means to reduce project capex and derisk project execution timelines.
• Key amendments to the existing Sorby Hills EPA approval were agreed and consented to by the Western Australian Government.

The progress made during the half year builds upon the release of the Sorby Hills Project Front-End Engineering & Design FEED Study ("FEED Study") released on 6 June 2024 that outlined 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.

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DIRECTORS' REPORT

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Option to Acquire 100% of the Sorby Hills Project

During the half-year, Boab entered into an option agreement to acquire from joint venture partner

Henan Yuguang Gold & Lead Co. Ltd's ("Yuguang") their 25% interest in the Sorby Hills Project

(ASX release 23 September 2024). Yuguang has been a committed joint venture partner over the

past 6 years of Boab's involvement in the Sorby Hills Project. During this period, the joint venture

has effectively grown the Mineral Resource and completed high-quality Feasibility studies on the Project. The option agreement is reflective of this productive and cooperative relationship and provides a new pathway to advance Sorby Hills toward a Final Investment Decision.

Key Terms of the Option Agreement

• 12-month option for Boab to acquire Yuguang's 25% interest in Sorby Hills, increasing
  Boab's current 75% interest in the Project to 100%.
• During the option period, Boab will carry Yuguang's joint venture expenses and in turn, will have full control over joint venture budgets and work programs.
• Should the option be exercised, Boab will pay Yuguang:

• • Tranche 1: A$12.5M upon exercise of the option and the concurrent acquisition of
    Yuguang's 25% Joint Venture interest;
  • Tranche 2: A$5.5M payable no later than 12 months from the commencement of concentrate production at Sorby Hills; and
  • Tranche 3: A$5.0M payable no later than 18 months from the commencement of concentrate production at Sorby Hills.
• The ability to exercise the option is subject to Boab reaching a Final Investment Decision on the Sorby Hills Project within the next 12 months.

Importantly, the option agreement requires no immediate payment to Yuguang and allows for Tranche 1 payment to be met with funds raised at FID.

Based on the results of the FEED Study, a further 218kt of lead-silver concentrate, 137kt of payable

lead, 4.3Moz of payable silver and A$103M NPV8 will be attributable to Boab upon exercise of the option and the acquisition of Yuguang's 25% interest.

Binding Prepayment and Offtake Agreement

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

Key Terms of the Prepayment and Offtake Agreements

The Prepayment terms include a 5-year term, an interest rate margin of SOFR + 5% and an 18- month interest-free period after which repayments will be made via equal monthly instalments. Financial Close and drawdown of the Prepayment are subject to 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

BOAB METALS LIMITED | HALF YEAR REPORT FY-2025

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DIRECTORS' REPORT

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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.

Cost reduction initiatives

As part of Boab's project execution derisking initiative under taken during the half-year,the Company

commenced detailed due diligence on the potential acquisition of the DeGrussa process plant from

Sandfire Resources Limited (ASX:SFR) ("Sandfire") for use at Sorby Hills.

The DeGrussa process plant, located 900km northeast of Perth, formed part of the world-class DeGrussa Copper mine that was built and operated by Sandfire between 2011 and May 2023. Since the cessation of operations in early FY24, the DeGrussa process plant has been kept on active care and maintenance by Sandfire.

Preliminary due diligence undertaken by Boab has indicated the DeGrussa process plant, which comprises a conventional crushing, milling, flotation, dewatering and filtration circuit is ideally suited for the requirements of Sorby Hills.

Boab is working closely with preferred EPC Contractor GR Engineering Service ("GRES") (ASX release 21 November 2022) to undertake a thorough review of the DeGrussa process plant and assess the technical and economic benefit of its incorporation into the Sorby Hills Project.

EPA Amendments

During the half-year, 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.

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DIRECTORS' REPORT

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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.

Completion of the Phase VIII Drilling Program

In early August, Boab announced the commencement of a Phase VIII drilling program to follow up on its exploration success from the 2023 campaign at the Keep Seismic 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.

The new drill holes were collared as 100m step-outs from Phase VII hole SHSD_185 to enable correlation and interpretation of the original results. SHSD_185 was aimed at testing the potential for a mineralised feeder fault system, which can be seen on the seismic data and the potential for stratiform mineralisation at the base of the Knox Formation/Sorby Dolomite interface. In summary, the program delivered several important results:

• A significant mineralisation intercept demonstrating the validity of the targeting rationale;
• Intersected further intervals of massive stratiform sphalerite mineralisation; and
• Demonstrated the role of structure in the distribution and deformation of mineralisation.

Assay results (ASX release 22 October 2024) confirmed the continuity of mineralisation and support future exploration of the Keep Seismic 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.

CORPORATE ACITIVITIES

The Company held its Annual General Meeting on 26 November 2024 with all resolutions put to Shareholders approved on a poll.

SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS

No significant changes have occurred in the state of affairs of the Group during the half year.

MATTERS SUBSEQUENT TO END OF THE HALF YEAR

There have been no matters that would require disclosure subsequent to the end of the half year.

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DIRECTORS' REPORT

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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 ASX Announcements titled

"Significant Intercepts at Sorby Hills" dated 8 November 2023, "Amended Drilling Announcement" dated 4 September 2023", "Assays Confirm Further Positive Outcome for Sorby" dated 23 January 2023, "High-Grade Lead-Silver Confirmed at Beta Deposit" dated 1 February 2022, and "Sorby Hills DFS Metallurgical Testwork Results" dated 19 November 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 these announcements. The Company confirms that the form and context in which the Competent Person's findings are presented have not been materially

modified from the form in which they were first presented.

Information included in this report relating to Mineral Resources has been extracted from the Mineral Resource Estimate dated 17 December 2021, available 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 report relating to Ore Reserves, Production Targets and Financial Forecasts has been extracted from the Sorby Hills Definitive Feasibility Study and dated 19 January 2023, available 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.

AUDITOR'S INDEPENDENCE DECLARATION

A copy of the auditor's independence declaration as required under section 307C of the Corporations

Act 2001 is set out on page 8. This report is signed in accordance with a resolution of the directors.

Gary Comb

Chairman

13 March 2025

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