September, 2024

25 October, 2024

Quarterly Activities and Cashflow Report for the period ending 30 September 2024

Boab Metals Limited (ASX: BML) ("Boab" or "Company") is pleased to provide the following activities and cashflow report for the quarter ending 30 September, 2024. During the quarter, the Company continued progressing its 75% owned Sorby Hills Lead-Silver-Zinc Project ("Sorby Hills" or "the Project"), located in the Kimberley Region of Western Australia.

HIGHLIGHTS

• Option Agreement to acquire 100% of Sorby Hills Project executed with Joint Venture partner Henan Yuguang Gold & Lead Co. Ltd ("Yuguang").

• • 12 month option period during which Boab will carry Yuguang's 25% joint venture expenses and in turn, will have full control over the approval of 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 ("FID") 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.
• Phase VIII drilling program completed with assay results confirming continuity of mineralisation and supporting future exploration of the Keep Seismic Target.
• Offtake negotiations continue to progress well.
• Boab assessing opportunities to further de-risk project execution and development timelines.
• The Company had a cash balance of approximately A$4.4M as at 30 September, 2024.

Boab Managing Director and CEO, Simon Noon, stated:

"The execution of the option agreement with Yuguang during the quarter represents a pivotal development for Boab and the Sorby Hills Project. With the Project in an advanced state following completion of the FEED study in the previous quarter, the option agreement provides Boab with a clear runway to present Sorby Hills to project financiers and offtakers on the basis that it will be 100% owned by Boab Metals. We now look forward to advancing these workstreams to a conclusion and reaching a Final Investment Decision on the Project".

_________________________________________________________________________________________________________________________________________________

Background on the Sorby Hills Project

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 are estimated to be A$264M.

The Sorby Hills Resource comprises a Mineral Resource of 47.3Mt containing 1.5Mt Pb at 3.1% and 53Moz Sliver 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).

Option to Acquire 100% of the Sorby Hills Project

During the quarter, 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 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 acquisition of Yuguang's 25% interest.

_________________________________________________________________________________________________________________________________________________

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 released subsequent to the quarter end (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.

Project Execution Update

As part of Boab's project execution derisking initiative, the Company has 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-classDeGrussa 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 during the quarter 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. Over the coming quarter, Boab will work 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.

Boab Managing Director and CEO Simon Noon stated: "Throughout the quarter, the Company has been proactively assessing multiple opportunities to materially reduce the upfront capital expenditure for Sorby Hills. The identification of available second-handprocess plants has been one such initiative and the DeGrussa plant represents the most technically suitable option for Sorby Hills. We look forward to completing our due diligence on the DeGrussa opportunity over the coming quarter and quantifying its potentially significant impact on Project economics."

_________________________________________________________________________________________________________________________________________________

During the quarter, the Company continued to work with relevant government departments to progress approvals including EPA 45c amendment, works approvals and EPBC referral.

Financial and Corporate Overview

The consolidated cash balance of the Company as at 30 September 2024 was A$4.35M. 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.

On 26 September, 2024 the Company released its Annual Report and has subsequently advised the market that its Annual General Meeting will be held on 26 November, 2024.

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 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.

_________________________________________________________________________________________________________________________________________________

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%.

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

_________________________________________________________________________________________________________________________________________________