2025, March

30 April 2025

Quarterly Activities and Cashflow Report for the period ending 31 March 2025

Boab Metals Limited (ASX: BML) ("Boab" or "Company") is pleased to provide the following activities and cashflow report for the quarter ending 31 March 2025. During the quarter, the Company continued progressing its flagship Sorby Hills Lead-Silver-Zinc Project ("Sorby Hills" or "the Project"), located in the Kimberley Region of Western Australia.

HIGHLIGHTS

• During the period, Boab finalised due diligence on the potential acquisition of the DeGrussa Processing Plant.

• Post Quarter end, Boab executed a binding Sale and Purchase Agreement ("SPA") with Sandfire Resources Ltd ("Sandfire, ASX SFR") to acquire the DeGrussa Processing Plant.

• The acquisition will significantly enhance project execution by derisking equipment procurement and reducing upfront capital costs for Sorby Hills.

  DeGrussa Processing Plant SPA - Key Terms

  • Total acquisition price of A$10.0M comprising:

    • A$1.5M deposit of which A$0.5M is payable in cash and A$1.0M to be paid in cash or shares (at Boab's election) at a price of A$0.12/sh;

    • A$6.0M payable in cash upon Completion; and

    • A$2.5M payable in cash on or before the date that is 12 months from the sale of first concentrate from the Project.

  • Completion (and the associated payment due at Completion) is conditional upon Boab reaching a Final Investment Decision ("FID") on the Sorby Hills Project.

• Any shares issued to Sandfire will be subject to a voluntary 12-month escrow period.

• Discussions continue with potential financiers to complement the binding US$30M prepayment from Trafigura.

• Targeting FID for Sorby Hills in H2 2025.

• The Company had a cash balance of approximately A$2.67M as at 31 March 2025.

Boab Managing Director and CEO, Simon Noon, stated: "Assessing the DeGrussa opportunity and negotiating the Sale and Purchase Agreement with Sandfire was the core focus of our efforts at Sorby Hills during the quarter and we are delighted to have achieved a successful outcome. The acquisition represents a key derisking event from both a capital expenditure and equipment procurement prospective and builds upon the significant project execution momentum that we have built over the past 6 months. We look forward to completing a competitive tender over the coming quarter to formally price the relocation, reconstruction and refurbishment contract ahead of a targeted H2 2025 FID."

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 mine 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. 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.

On 6 June 2024, Boab released the results of a Front-End Engineering & 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 of which a new processing plant comprised A$136M..

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.

Over the past 6 months, the Company has achieved a number of critical project execution milestones, including:

• execution of an option to acquire the remaining 25% of the Sorby Hills Project from joint venture partner Henan Yuguang1;

• execution of a Binding Offtake Agreement and US$30M Prepayment Terms Sheet from global commodities trader Trafigura2; and

• receipt of formal confirmation from the WA Government that the Project's existing EPA Approval has been amended to allow Sorby Hills to be developed in a manner consistent with the FEED study3;

Acquisition of the DeGrussa Processing Plant

The acquisition of the DeGrussa Processing Plant (Figure 1) from Sandfire is another key milestone achieved toward reaching FID at Sorby Hills and represents a key derisking event from both an equipment procurement and capital cost perspective.

All major components for the Sorby Hills Processing Plant as proposed in the FEED Study have been secured via the DeGrussa Processing Plant acquisition (Figure 2) including an extensive equipment spares inventory. Importantly, the components are fit for purpose to achieve the targeted average ~103ktpa of concentrate production.

Key Terms of the acquisition are shown in Table 1. Over the coming quarter, Boab will complete a competitive tender to formally price the relocation, reconstruction and refurbishment contract ahead of a targeted H2 2025 FID.

1 ASX Release 23 September 2024

2 ASX Release 10 December 2024

3 ASX Release 23 December 2024

Figure 1: The DeGrussa Processing Plant.

Figure 2: 3D Model of the Sorby Hills Processing Plant produced by GRES during FEED showing fiey components of the design that have been secured via the acquisition of the DeGrussa Processing Plant.

Table 1: Key Terms of the DeGrussa Processing Plant Acquisition

Financing Update

The US$30M Prepayment facility executed with Trafigura in December 2024 represented a cornerstone tranche of Boab's financing solution for Sorby Hills. With the Trafigura prepayment and associated concentrate Offtake in place, the Company has advanced discussions with lenders to provide the balance of the senior debt to fund Sorby Hills. The acquisition of the DeGrussa Processing Plant will enhance discussions with potential lenders as key a risk mitigation for project execution and a tangible asset to support credit considerations.

Approvals

Boab has progressed the assessment of the Project under the Environment Protection and Biodiversity Conservation Act 1999, with the submission of the finalised response to queries from the regulator. The information provided by Boab was accepted by the regulator in late March; allowing for the assessment to continue to the next steps. Boab anticipates approval under the federal act being obtained early Q3 2025.

Upon the successful finalisation of amendments to the state Ministerial Statement in December of last year, Boab Metals formally submitted documentation under the Mining Act 1978 and Part V of the Environmental Protection Act 1986, being the Mining Proposal / Mine Closure Plan and the Works Approval application, respectively. These applications are currently under assessment with the relevant departments, with the expectation that these will be formally approved in Q3 2025.

In addition, Boab Metals submitted the Groundwater Operating Strategy to finalise the application for a licence to abstract water for the Project. The operating strategy is under assessment and pending approval in the coming period.

Financial and Corporate Overview

The consolidated cash balance of the Company as at 31 March 2025 was A$2.67M. During the period, the Company paid $137K to related parties. These payments were made to Directors of Boab Metals Limited in relation to salaries and directors' fees, on normal commercial terms.

In addition to the $2.67M in existing cash reserves the company has a A$4.8M At The Market (ATM) Facility available for use at the company's absolute discretion.

On 13 March 2025, the Company released its half yearly report.

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.

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 Mineral Resources has been extracted from the Mineral Resource Estimate dated 17 December 2021, available to view at https://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 https://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.

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

APPENDIX 1

INTERESTS IN TENEMENTS

Rule 5.5

Name of entity

BOAB METALS LIMITED

ABN Quarter ended ("current quarter")

43 107 159 713

(137)*

Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity report must include a description of, and an explanation for, such payments.

8.1

8.2

8.3

8.4

8.5

8.6

Net cash from / (used in) operating activities (item 1.9)

(Payments for exploration & evaluation classified as investing activities) (item 2.1(d))

Total relevant outgoings (item 8.1 + item 8.2)

Cash and cash equivalents at quarter end (item 4.6) Unused finance facilities available at quarter end (item 7.5)

Total available funding (item 8.4 + item 8.5)

(874)

-

(874)

2,670

-2,670

8.7

8.8

If item 8.7 is less than 2 quarters, please provide answers to the following questions:

8.8.1 Does the entity expect that it will continue to have the current level of net operating cash flows for the time being and, if not, why not?

8.8.2 Has the entity taken any steps, or does it propose to take any steps, to raise further cash to fund its operations and, if so, what are those steps and how likely does it believe that they will be successful?

Answer: Not Applicable.

Answer: Not Applicable.

3.05

1. This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.

2. This statement gives a true and fair view of the matters disclosed.

Authorised for release by the Board of Directors of Boab Metals Limited

Notes

1. This quarterly cash flow report and the accompanying activity report provide a basis for informing the market about the entity's activities for the past quarter, how they have been financed and the effect this has had on its cash position. An entity that wishes to disclose additional information over and above the minimum required under the Listing Rules is encouraged to do so.

2. If this quarterly cash flow report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. If this quarterly cash flow report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report.

3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.

4. If this report has been authorised for release to the market by your board of directors, you can insert here: "By the board". If it has been authorised for release to the market by a committee of your board of directors, you can insert here: "By the [name of board committee -eg Audit and Risk Committee]". If it has been authorised for release to the market by a disclosure committee, you can insert here: "By the Disclosure Committee".

5. If this report has been authorised for release to the market by your board of directors and you wish to hold yourself out as complying with recommendation 4.2 of the ASX Corporate Governance Council's Corporate Governance Principles and Recommendations, the board should have received a declaration from its CEO and CFO that, in their opinion, the financial records of the entity have been properly maintained, that this report complies with the appropriate accounting standards and gives a true and fair view of the cash flows of the entity, and that their opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively.