Westgold Divests Mt Henry-Selene Gold Project for $64.6M

About this update from Westgold Resources Ltd

Non-Core Asset Divestment Aligns with Westgold's Strategy to Focus on Larger, Core Operating Assets Highlights PERTH, Western Australia , Dec. 17, 2025 /CNW/ - Westgold Resources Limited  (ASX: WGX) (TSX: WGX) (Westgold or the Company ) is pleased to announce it has entered into a binding Asset Sale Agreement ( ASA ) with Alicanto Minerals Limited (ASX: AQI) ( Alicanto ) for the divestment of the Mt Henry-Selene Gold Project ( Mt Henry ), near Norseman in Western Australia for total consideration of $64.6M (the Transaction ). This Transaction realises value for Westgold's shareholders from an asset that is prospective but does not form part of the Company's long-term strategic plans. The Transaction is aligned with Westgold's strategy of focusing on its larger, core operating assets. Mt Henry is a non-core asset acquired as part of the merger with Karora Resources Inc, one of a number within Westgold's 3,200km 2 tenement holding. Westgold Managing Director and CEO Wayne Bramwell commented: "The divestment of Mt Henry to Alicanto follows the recently announced spin-out of the Company's non-core Murchison projects to Valiant Gold Limited. This Transaction delivers Westgold shareholders an attractive mix of cash, exposure to project upside via a large strategic shareholding and deferred consideration payable on specific project milestones. Westgold is pleased to partner with Alicanto, whose board and management team are experienced and committed explorers and have a demonstrable record of rapidly advancing gold projects. Alicanto's planned drilling investment provides a pathway for exploration success and potential future development, which can unlock additional value for all stakeholders. Westgold continues to progress discussions in relation to the potential sale of its Peak Hill and Chalice gold assets following strong inbound interest. The Company will continue to inform the market of material developments in accordance with its continuous disclosure obligations." Key Transaction Terms Under the Transaction, Alicanto (via a wholly owned subsidiary) will acquire 100% of Mt Henry, including all associated mining tenements, licences, heritage agreements, contracts and technical information for total consideration of $64.6M , comprising: Pursuant to the Transaction, Westgold will emerge as a 19.9% shareholder in Alicanto with the right to appoint a nominee to the Alicanto Board.  Westgold will also receive equity participation rights for future capital raisings undertaken by Alicanto, subject to compliance with the ASX Listing Rules. Key Conditions Precedent Completion of the Transaction is subject to the following key conditions precedent being satisfied or waived: The ASA contains other terms and conditions typical for a Transaction of this nature including standard representations and warranties. Transaction completion will occur five Business Days after all conditions have been satisfied or waived. Alicanto Shareholder Meeting Alicanto will convene a shareholder meeting on or around 30 January 2026 to seek approval for: Alicanto Directors have agreed to unanimously recommend the Transaction and vote in favour of the Resolutions. Alicanto Directors and shareholders with a combined shareholding of 15.22% have committed to vote in favour of the Resolutions at the Alicanto shareholder meeting. Indicative Timetable Advisers Argonaut acted as financial adviser and Thomson Geer as legal adviser to Westgold in relation to the Transaction. This announcement is authorised for release to the ASX by the Board. About Westgold Westgold Resources Limited (ASX | TSX: WGX) is a leading, unhedged ASX200 gold producer with a growing portfolio of established mines and processing plants across the Murchison and Southern Goldfields, two of Western Australia's most prolific gold-producing regions. Westgold's vision is to become the leading Australian gold company - sustaining safe, responsible and profitable production. We have a clear purpose to unearth enduring value – for our stakeholders, shareholders, people and the communities we operate in. About Mt Henry The Mt Henry Gold Project is located 23–30km south of Norseman in Western Australia, within the Norseman–Wiluna greenstone belt. The project comprises three main deposits—Mt Henry, Selene, and North Scotia—across 38 tenements covering 67km², all held 100% by Westgold Resources through its subsidiary Karora (Higginsville) Pty Ltd. Ownership of Mt Henry has changed several times over the past decade. The project was acquired by Metals X in 2015, then transferred to Westgold Resources following a demerger in 2016. In 2019, Karora Resources (then RNC Minerals) purchased the project and placed it on care and maintenance. In 2024, Westgold regained ownership through its merger with Karora, bringing the asset back into its portfolio. The project hosts a combined Mineral Resource of 24.5Mt at 1.2g/t Au for 915,000oz of contained gold and an Ore Reserve of 11.7Mt at 1.3g/t Au for 478,300oz. Mt Henry has a history of open pit production (129,000oz at 1.71g/t Au), while Selene and North Scotia are greenfields deposits that have not been mined to date. Gold mineralisation is primarily hosted in banded iron formation (BIF) units of the Noganyer Formation, with the deposits remaining open at depth and along strike. The project area has seen limited modern exploration beneath existing mineralisation and along the broader + 4km corridor, suggesting potential for further resource growth. Table 1 Mount Henry Project Mineral Resources as at June 30, 2025 1 . Table 2 Mount Henry Ore Reserves as at June 30, 2025 1 . Background to the Mineral Resource Estimate Geological interpretation of individual deposits is carried out using a systematic approach to ensure that the resultant Mineral Resource Estimates are both sufficiently constrained, and representative of the expected sub-surface conditions. In all aspects of Mineral Resource Estimation, the factual and interpreted geology is used to guide the development of the interpretation. Geological matrixes were established to assist with interpretation and construction of the estimation domains. A significant portion of the data used in Mineral Resource Estimations has been gathered from diamond core. Multiple sizes have been used. This core is geologically logged and subsequently halved for sampling. Grade control holes may be whole-cored to streamline the core handling process if required. Face sampling data is also utilised, where each development face / round is chip sampled. The sampling intervals are domained by geological constraints (e.g. rock type, veining and alteration / sulphidation etc.). All geology input is logged and validated by the relevant area geologists, incorporated into this is assessment of sample recovery. No defined relationship exists between sample recovery and grade. Nor has sample bias due to preferential loss or gain of fine or coarse material been noted at any deposit. Faces are nominally chipped horizontally across the face from left to right, or vertically from top to bottom, sub-set via geological features as appropriate. Diamond drilling is half-core niche sampled (or whole-cored if appropriate), sub-set via geological features as appropriate. Samples undergo fine pulverisation of the entire sample by an LM5 type mill to achieve a 75µ product prior to splitting. QA/QC is currently ensured during the sub-sampling stages process via the use of the systems of an independent NATA / ISO accredited laboratory contractor. The sample size is considered appropriate for the grain size of the material being sampled. The un-sampled half of diamond core is retained for check sampling if required. Sampling is analysed for gold by fire assay where a 40g – 50g sample undergoes fire assay lead collection followed by flame atomic adsorption spectrometry. Quality control is ensured via the use of standards, blanks and duplicates. The laboratory includes a minimum of 1 project standard with every 22 samples analysed. No significant QA/QC issues have arisen in recent drilling results. After validating the drillhole data to be used in the estimation, interpretation of the orebody is undertaken to create the intervals which form the basis of the three-dimensional orebody wireframe. Wireframing is then carried out using a combination of automated modelling algorithms and manual triangulation to create an accurate three-dimensional representation of the sub-surface mineralised body. Drillhole intersections within the mineralised body are then used to flag the appropriate sections of the drillhole database tables for compositing purposes. Drillholes are subsequently composited to allow for grade estimation. In all aspects of resource estimation, the factual and interpreted geology was used to guide the development of the interpretation. Once the sample data has been composited, a statistical analysis is undertaken to assist with determining estimation search parameters, top-cuts etc. Analysis of individual domains is undertaken to assist with determining appropriate search parameters. Which are then incorporated with observed geological and geometrical features to determine the most appropriate search parameters. An empty block model is then created for the area of interest. This model contains attributes set at background values for the various elements of interest as well as density, and various estimation parameters that are subsequently used to assist in resource categorisation. The block sizes used in the model will vary depending on orebody geometry, minimum mining units, estimation parameters and levels of informing data available. Grade estimation is then undertaken. Ordinary Kriging estimation method is considered as standard, although Categorical Indicator Kriging is used in some instances. Estimation results are validated against primary input data, previous estimates and mining output. The Mineral Resource is then depleted for mining voids and subsequently classified in line with JORC guidelines utilising a combination of various estimation derived parameters and geological / mining knowledge. Data spacing is variable dependent upon the individual lode under consideration. This approach considers all relevant factors and reflects the Competent Person's view of the deposit. The cut off grades used for the reporting of the Mineral Resources Estimates is selected based upon the style of mineralisation, depth from surface of the mineralisation and the most probable extraction technique and associated costs. Likely mining approaches have been considered at the domaining, estimation and classification steps. However, no mining dilution or ore loss has been modelled in the resource model or applied to the reported Mineral Resource Estimate. Nor has metallurgical recovery been applied to the reported Mineral Resource Estimate. These factors are applied during the Ore Reserve generation process. Background to the Ore Reserve All Ore Reserve inventories are based upon detailed three-dimensional designs to ensure practical mining conditions are met. Additionally, all Ore Reserve inventories are above the mine specific cut-off grades (COG) as well as containing only Measured and Indicated material. Dependent upon the mining method, modifying factors are used to address hydrological, geotechnical, minimum width and blasting conditions. These factors are applied during the stope design process to ensure are captured prior to scheduling and are relevant to the style of mineralisation, lithology, and ground conditions encountered. Cost modelling is completed on all deposits within the Ore Reserve. In mines which are currently operating, costs are derived from real and budgeted rates. In those which are under feasibility, the costs applied are determined from a schedule of rate relevant to the mining method and expected production rates. Ore Reserves are based on pit designs – with appropriate modifications to the original Whittle Shell outlines to ensure compliance with practical mining parameters. Geotechnical parameters aligned to the open pit Ore Reserves are either based on observed existing pit shape specifics or domain specific expectations / assumptions. Various geotechnical reports and retrospective reconciliations are considered in the design parameters. Dilution of the ore through the mining process has been accounted for within the Ore Reserve inventory. These ratios are used to represent the style of mineralisation and mining method applied during the mine planning process. These modifying factors are determined from various lithological, geotechnical, and hydrogeological data. Minimum mining widths have been accounted for in the designs, with the utilisation of 40t or 90t trucking parameters depending upon the size of the pit excavation. No specific ground support requirements are needed outside of suitable pit slope design criteria based on specific geotechnical domains. Mining sequence is included in the mine scheduling process for determining the economic evaluation and takes into account available operating time and mining equipment size and performance. No Inferred material is included within the open pit statement, though in various pit shapes Inferred material is present. In these situations this Inferred material is classified as waste. Financial analysis has been completed on stockpiles reported within the Ore Reserve to determine their viability within this announcement. This has considered the transport and processing at Westgold's Higginsville facility. Competent/Qualified Person Statements Exploration Results and Mineral Resources Estimates The information in this release that relates to Exploration results and Mineral Resource Estimates is compiled by Westgold technical employees and contractors under the supervision of Mr. Jake Russell B.Sc. (Hons), who is a member of the Australian Institute of Geoscientists and who has verified, reviewed and approved such information. Mr Russell is a full-time employee of the Company and has sufficient experience which is relevant to the styles of mineralisation and types of deposit under consideration and to the activities which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the "JORC Code") and as a Qualified Person as defined in the CIM Guidelines and National Instrument 43-101 – Standards of Disclosure for Mineral Projects ("NI 43-101"). Mr. Russell is an employee of the Company and, accordingly, is not independent for purposes of NI 43-101. Mr Russell consents to and approves the inclusion in this release of the matters based on his information in the form and context in which it appears. Mr Russell is eligible to participate in short- and long-term incentive plans of the company. The updated MRE has an effective date of 30 June 2025 and was completed by Westgold technical employees and contractors under the supervision of Mr Jake Russell. The key inputs and assumptions are provided in Appendix C to this release including Section 1 – Sampling Techniques and Data, Section 2 – Reporting of Exploration Results, Section 3 – Estimation and Reporting of Mineral Resources and Section 4 – Estimation and Reporting of Ore Reserves. Ore Reserves The information in this release that relates to Ore Reserve is based on information compiled by Mr. Leigh Devlin B.Eng. FAusIMM, who has verified, reviewed and approved such information. Mr. Devlin has sufficient experience which is relevant to the styles of mineralisation and types of deposit under consideration and to the activities which they are undertaking to qualify as a Competent Person as defined in the JORC Code and as a Qualified Person as defined in the CIM Guidelines and NI 43-101. Mr. Devlin is an employee of the Company and, accordingly, is not independent for purposes of NI 43-101. Mr. Devlin consents to and approves the inclusion in this release of the matters based on his information in the form and context in which it appears. Mr. Devlin is a full-time senior executive of the Company and is eligible to and may participate in short-term and long-term incentive plans of the Company as disclosed in its annual reports and disclosure documents. General Mineral Resources, Ore Reserve Estimates and Exploration Targets and Results are calculated in accordance with the JORC Code. The other technical and scientific information in this release has been prepared in accordance with the Canadian regulatory requirements set out in NI 43-101 and has been reviewed on behalf of the company by Qualified Persons, as set forth above. This release contains references to estimates of Mineral Resources and Ore Reserves. The estimation of Mineral Resources is inherently uncertain and involves subjective judgments about many relevant factors. Mineral Resources that are not Ore Reserves do not have demonstrated economic viability. The accuracy of any such estimates is a function of the quantity and quality of available data, and of the assumptions made and judgments used in engineering and geological interpretation, which may prove to be unreliable and depend, to a certain extent, upon the analysis of drilling results and statistical inferences that may ultimately prove to be inaccurate. Mineral Resource estimates may require re-estimation based on, among other things: (i) fluctuations in the price of gold; (ii) results of drilling; (iii) results of metallurgical testing, process and other studies; (iv) changes to proposed mine plans; (v) the evaluation of mine plans subsequent to the date of any estimates; and (vi) the possible failure to receive required permits, approvals and licenses. The NI 43-101 technical report supporting the Maiden Ore Reserve contained in this release will be filed on SEDAR+ within the next 45 days of the date of this release. Reference should be made to the full text of the technical report for the assumptions, qualifications and limitations relating thereto. Forward Looking Statements These materials prepared by Westgold Resources Limited include forward looking statements. Often, but not always, forward looking statements can generally be identified by the use of forward looking words such as "may", "will", "expect", "intend", "believe", "forecast", "predict", "plan", "estimate", "anticipate", "continue", and "guidance", or other similar words and may include, without limitation, statements regarding plans, strategies and objectives of management, anticipated production or construction commencement dates and expected costs or production outputs. Forward looking statements inherently involve known and unknown risks, uncertainties and other factors that may cause the Company's actual results, performance and achievements to differ materially from any future results, performance or achievements. Relevant factors may include, but are not limited to, changes in commodity prices, foreign exchange fluctuations and general economic conditions, increased costs and demand for production inputs, the speculative nature of exploration and project development, including the risks of obtaining necessary licenses and permits and diminishing quantities or grades of reserves, political and social risks, changes to the regulatory framework within which the Company operates or may in the future operate, environmental conditions including extreme weather conditions, recruitment and retention of personnel, industrial relations issues and litigation. Forward looking statements are based on the Company and its management's good faith assumptions relating to the financial, market, regulatory and other relevant environments that will exist and affect the Company's business and operations in the future. The Company does not give any assurance that the assumptions on which forward looking statements are based will prove to be correct, or that the Company's business or operations will not be affected in any material manner by these or other factors not foreseen or foreseeable by the Company or management or beyond the Company's control. Although the Company attempts and has attempted to identify factors that would cause actual actions, events or results to differ materially from those disclosed in forward looking statements, there may be other factors that could cause actual results, performance, achievements or events not to be as anticipated, estimated or intended, and many events are beyond the reasonable control of the Company. In addition, the Company's actual results could differ materially from those anticipated in these forward looking statements as a result of the factors outlined in the "Risk Factors" section of the Company's continuous disclosure filings available on SEDAR+ or the ASX, including, in the Company's current annual report, half year report or most recent management discussion and analysis. Accordingly, readers are cautioned not to place undue reliance on forward looking statements. Forward looking statements in these materials speak only at the date of issue. Subject to any continuing obligations under applicable law or any relevant stock exchange listing rules, in providing this information the Company does not undertake any obligation to publicly update or revise any of the forward-looking statements or to advise of any change in events, conditions or circumstances. Appendix B – JORC 2012 Table 1– Gold Division Section 1: Sampling Techniques and Data (Criteria in this section apply to all succeeding sections.) SECTION 2: REPORTING OF EXPLORATION RESULTS (Criteria listed in the preceding section also apply to this section.) SECTION 3: ESTIMATION AND REPORTING OF MINERAL RESOURCES (Criteria listed in section 1, and where relevant in section 2, also apply to this section.) SECTION 4: ESTIMATION AND REPORTING OF ORE RESERVES (Criteria listed in section 1, and where relevant in sections 2 and 3, also apply to this section.) View original content to download multimedia: http://www.newswire.ca/en/releases/archive/December2025/16/c3137.html

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