Lefroy secures crucial funding via BML Lucky Strike Profit Cash Advance Agreement

About this update from Lefroy Exploration Ltd.

Lefroy Exploration Limited ('Lefroy' or 'the Company') (ASX: LEX) is pleased to announce that it has entered into a Profit Cash Advance Facility Agreement with BML Ventures Pty Ltd ('BML') with regards to the Lucky Strike Gold Deposit ('Lucky Strike'). The Lucky Strike Gold Deposit contains an MRE of 1.27Mt @ 1.95 g/t Au for 79,600 ounces (Indicated 0.70Mt @ 1.93 g/t Au for 43,400 oz. Inferred 0.57Mt @ 1.97 g/t Au for 36,200 oz). LEFROY CEO, GRAEME GRIBBIN , COMMENTED: 'Securing a funding solution for Lefroy with our profit-sharing partner BML places the Company in a strong cash position as we advance towards operations at Lucky Strike in late 2025. BML's support is a major vote of confidence in the Company and the Lucky Strike project, ensuring that Lefroy is fully funded as both parties advance toward profit share distribution in FY 2026. Lastly, and most importantly, this funding agreement avoids dilution of both new and long-term loyal Lefroy shareholders, whilst retaining 100% ownership of our Mineral Resources and the tenements that underlie them'. BML is a privately owned mining contractor based in Kalgoorlie and has a strong track record of funding, developing, and operating open pit gold mines. With a strong technical focus, BML uses its low-cost owner/operator mining fleet and its relationships with local toll treatment operators to maximise profitability and cash generation from small to medium sized mining projects. Lefroy entered into a Profit-Sharing Agreement with BML in February 2025 in relation to the Lucky Strike Gold Project (refer ASX announcement 12 February 2025). LUCKY STRIKE - PROFIT CASH ADVANVE FACILITY AGREEMENT: The material commercial terms of the Lucky Strike - Profit Cash Advance Agreement are as follows: o BML, as the Lender agrees to provide funds to Lefroy, as the Borrower by way of cash advances up to the total available lending commitment of $2.5 million ('Commitment'). o The Commitment is to be drawn down in quarterly increments of $500,000 , following provision of a Lefroy Drawdown Notice to BML. o Lefroy will draw down the first two (2) increments of up to $500,000 each (totalling a maximum of $1 million ) by the end of the September FY26 quarter. o Three further draw down increments of up to $500,000 are to be drawn down by the end of each of the December, March and June FY26 quarters. o Fixed interest rate of 8% applied monthly, and capitalised monthly in arrears, with interest to be paid (deducted) from Lefroy's 50% entitlement under the Profit-Sharing Agreement between LEX and BML (refer ASX announcement 12 February 2025 ). o The Maturity Date for the repayment of the Principal Outstanding is 31 December 2026 . o As security, Lefroy agrees to grant BML a tenement mortgage on usual terms over the Lucky Strike tenement M25/366 (under Lefroy's wholly owned subsidiary Monger Exploration Pty Ltd ). This agreement represents a significant achievement for Lefroy, securing funding through its Profit-Sharing Agreement partner BML. The Lucky Strike Deposit is the first of three separate resources held by Lefroy, with total resources of over 1 million ounces, that the Company seeks to develop over the next few years. While ensuring the maintenance of a strong cash position for Lefroy, the Profit Cash Advance Facility Agreement will also enable the Company to embark on additional exploration programs across the broader Lefroy tenure throughout the remainder of 2025. Our immediate focus will be to expand the Company's resource base, specifically targeting shallow resource extensions at both Mt Martin and the high-grade extensions of the Burns deposit. Furthermore, and extending into 2026, we will assess a set of exciting early stage through to more advanced pre-resource exploration opportunities, across our 635km2 contiguous tenement holding in the heart of the prolific Kalgoorlie -Kambalda gold mining district. Contact: Graeme Gribbin Email: [email protected] Tel: +61 8 9321 0984 ABOUT LEFROY EXPLORATION LIMITED Lefroy Exploration Limited (ASX:LEX) is an active West Australian exploration company focused on developing its flagship Lefroy Project , a contiguous land package of 635km-2 located in the heart of the world-class Kalgoorlie and Kambalda gold and nickel mining districts and the Lake Johnston Project 120km west of Norseman. Lefroy is pursuing a low-cost gold production strategy through profit share mining agreements on its shallow, high-grade gold deposits. The company's Lucky Strike Deposit with 79,600oz is subject to the first of such agreements, with key milestones completed on the way to production targeted for early 2026. Additional deposits Mt Martin (439,000oz at 1.47g/t Au) and Burns Central (159,285oz at 1.18g/t Au) offer additional potential for similar agreements and show significant resource growth potential through ongoing exploration. With over one million ounces in resources and a zero-cost development pathway, LEX is well positioned to generate cash flow and advance its broader portfolio. COMPETENT PERSON STATEMENT The information in this announcement that relates to exploration targets and exploration results is based on information compiled by Graeme Gribbin , a competent person who is a member of the Australian Institute of Geoscientists (AIG). Mr Gribbin is employed by Lefroy Exploration Limited . Mr Gribbin has sufficient experience that is relevant to the style of mineralisation and type of deposits under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 edition of the JORC Code. Mr Gribbin consents to the inclusion in this announcement of the matters based on his work in the form and context in which it appears. FORWARD LOOKING STATEMENTS This announcement contains 'forward-looking statements'. Forward-looking statements are often, but not always, identified by the use of words such as 'seek', 'anticipate', 'believe', 'plan', 'expect', 'predict', 'forecast', 'estimate', 'target' and 'intend' and statements that an event or result 'should', 'could', 'may', 'will' or 'might' occur or be achieved and other similar expressions. Forward-looking statements are subject to business, legal and economic risks and uncertainties and other factors that could cause actual results to differ materially from those contained in forward-looking statements. Forward-looking statements including estimates or projections as to events that may occur in the future (including projections of revenue, expense, net income and performance) are provided as a general guide only and should not be relied upon as an indication or guarantee of future performance and may or may not occur. The statements involve known and unknown risks, uncertainties and other factors associated with LEX and the mining exploration industry such as resource risk, environmental and regulatory risks, metals price volatility, currency fluctuations, increased production costs and variances in ore grade or recovery rates and operational risks. Many of risks these are beyond the control of LEX. It is believed that expectations reflected in the statements are reasonable but they may be affected by market conditions and a range of other variables which could cause actual results or trends to differ materially from those stated. (C) 2025 Electronic News Publishing, source ENP Newswire

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