NCMGF - Newcrest Mining Limited - Cadia PC1-2 Pre-Feasibility Study Delivers Attractive Returns

Melbourne, Australia--(Newsfile Corp. - August 18, 2021) - Newcrest Mining Limited (ASX: NCM) (TSX: NCM) PNGX: NCM) is pleased to announce that the Newcrest Board has approved the Cadia PC1-2 Pre-Feasibility Study (the Study), enabling the commencement of the Feasibility Stage (the Feasibility Study) and Early Works Program.

The Study updates and defines a significant portion of Cadia's future mine plan, with the development of PC1-2 accounting for ~20% of Cadia's current Ore Reserves. The approved commencement of the Early Works Program will allow critical infrastructure to be established in parallel with the Feasibility Study, before the commencement of the Main Works program in the second half of CY22. A$120 million (~US$90 million) of funding has been approved for this Early Works Program which is expected to commence in the December 2021 quarter.

Summary of Study Findings^1,2,3,4

• The PC1-2 Pre-Feasibility Study has the following key findings:
  • Estimated total capital expenditure of ~A$1.3 billion (~US$0.9 billion)
  • Real, after-tax Internal Rate of Return (IRR) of 21.5%
  • Net Present Value (NPV) of A$2.0 billion (US$1.5 billion)^[5]
  • ~17 year mine life from first production, at an average of 15mtpa
  • Total ore production of 258mt producing 3.5moz of gold and 660kt of copper
  • Average All-In Sustaining Cost (AISC) of A$54/oz (US$41/oz)
  • Enhanced footprint design and productivity allowing:
    • Deferral of ~25% of the previously required footprint into a future PC1-3 project
    • A$150 million (US$112 million) reduction in the initial capital spend
    • Enhanced average gold and copper grades in the medium term
• Early Works Program of critical path activities for the establishment of PC1-2 is expected to commence in the December 2021 quarter
• Feasibility Study has now commenced

Newcrest Managing Director and Chief Executive Officer, Sandeep Biswas, said, "The development of the PC1-2 cave is the next step in Cadia's block caving journey. The Study underpins an optimised mine design which we expect will deliver higher gold and copper grades and enable the deferral of capital expenditure in the medium term. We have significant financial headroom to fund the construction of PC1-2, together with our other organic growth options, from our expected cash flow generation over the development period and our strong balance sheet."

"This project, together with the expansion project currently in progress, is expected to sustain Cadia's position as one of the largest, lowest cost and long life gold mines in the world. The team at Cadia is passionately committed to building on this world class asset, driving employment and other benefits for the local community and other stakeholders, and maintaining a focus on innovation, continuous improvement and sustainable development," said Mr Biswas.

Table of Key Study Findings^1,4,6

Cadia's indicative production profile^1,6,7,8

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Mine development and sequence^1,6,7

Total capital expenditure for the development of PC1-2 is estimated to be ~A$1.3 billion (~US$0.9 billion), with first production expected in CY25. The timing of PC1-2's development is expected to ensure that, in conjunction with the already approved PC2-3 project, the total Cadia mine production rate is sustained at ~35-36mtpa as production from the operational PC1 and PC2 caves begins to decline from FY24.

The PC1-2 Pre-Feasibility Study includes enhancements over previously published mine designs, which include:

• Optimised North/South footprint configuration to debottleneck extraction drives and boost production intensity by ~90% compared to previous designs
• Gold and copper production brought forward by prioritising PC1-2 higher grades
• Optimised pre-conditioning to enhance operator safety, mine schedules and reduce the underground development scope
• Crusher productivity and ventilation enhancements with the addition of a fifth tipping location and dedicated ventilation exhaust

It is planned to bring PC1-2 into production across two stages:

• Stage 1
  • Execute a 12 month Early Works Program to establish ventilation systems and other critical path development. This is expected to commence in the December 2021 Quarter and has an estimated cost of A$120 million (US$90 million)
  • Completion of the Feasibility Study will run concurrently with the Early Works Program and has an estimated cost of A$14 million (US$11 million)
• Stage 2
  • Execute the PC1-2 Main Works Program following the conclusion of the Feasibility Study in the second half of CY22. The Main Works Program is expected to cost A$1.12 billion (US$0.84 billion) and is expected to be completed by CY29

The PC1-2 cave is expected to take approximately six years to reach its maximum production capacity from the time of the blasting of the first drawbell.

PC1-2 Extraction Level Design

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Location of Planned Cadia East Caves in Schematic Section View

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Indicative ore production profile^1,6,7

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Indicative mine production profile^1,6,7

Metal Price and Exchange Rate Sensitivity Analysis^1,2,3,4

The actual IRR of the Project will vary according to the gold and copper prices realised. Base case assumptions include a gold price of US$1,500 per ounce, copper price of US$3.30 per pound, and an AUD:USD exchange rate of 0.75.

The table below outlines how the estimated Base Case Project IRR of 21.5% varies using different price assumptions:

Permitting & Tailings

Cadia presently holds a major Project Approval for the Cadia East Project until CY31 (inclusive of the permit to develop PC1-2).

Newcrest is currently engaging with the NSW Department of Planning, Industry and Environment (DPIE) with respect to Newcrest's request for a modification to the existing approval to allow for an increased production rate above 32mtpa.

Further approvals will be required to continue mining operations beyond the existing approved mine life of CY31.

Estimated project capital expenditure profile^1,4

Technology and value breakthrough strategies

Through the Feasibility Study, Newcrest will investigate the application of single pass caving, mechanical excavation and remote production during the execution of PC1-2, in line with its Next-Gen Caving strategy. These have not been assumed in the Study findings to date and represent upside opportunities.

Cadia East Mineral Resource⁹

The Cadia East Mineral Resource has been updated from that reported in the Annual Mineral Resources and Ore Reserves Statement as of 31 December 2020. The update includes mining depletion to 30 June 2021 and the incorporation of a revised resource estimate. A summary of material assumptions is outlined below and included in JORC Table 1 included in the Appendix (JORC Table 1 - Sections 1 to 3).

Mineral Resources are reported inclusive of Ore Reserves.

Summary of Mineral Resource

Geology and Geological Interpretation
The Cadia gold copper deposits are hosted by a late Ordovician to early Silurian shoshonitic volcano-intrusive complex which forms part of the larger zone of arc-related volcanic and associated intrusive rocks in the eastern Lachlan Fold Belt. Mineralisation at Cadia is hosted by the mid to late Ordovician Forest Reefs Volcanics and the underlying Weemalla Formation and by the late Ordovician early Silurian Cadia Intrusive Complex. Post-mineral cover comprises Silurian Cadia Coach Shale and a relatively thin capping of Tertiary basalts and gravels in some areas. Recognised structural controls include the regional northwest corridor - dilation zone thought to control the emplacement of the Cadia Intrusive Complex and post-mineral faulting in two dominant orientations striking northwest and north-south.

The Cadia East deposit is hosted within the Forest Reef Volcanics and porphyry intrusions. A north-east trending mass of narrow sheet like dykes of monzonitic to dioritic compositions intrude the lower parts of the FRV at Cadia East. These intrusives are largely restricted to the eastern half of the deposit although some narrow dykes and isolated bodies of monzonite have been recognised in the western end. At the upper western end of the deposit immediately underneath the Gibb Fault, isolated narrow intersections have been identified with south dipping mineralised quartz veining. These occurrences are interpreted to be the Cadia Hill Monzonite.

Mineralisation at Cadia East can be divided into two broad overlapping zones: an upper, copper rich disseminated zone and a deeper gold-rich zone associated with sheeted veins. The upper zone forms a relatively small cap to the overall mineralised envelope and has a core of disseminated chalcopyrite, capped by chalcopyrite-pyrite mineralisation. The upper zone mineralisation is stratigraphically controlled within the volcaniclastic unit. This zone is transitional to the deeper vein style mineralization. The deeper zone is localised around a core of steeply dipping sheeted quartz-calcite-bornite-chalcopyrite-molybdenite, with the highest gold grades associated with the bornite-bearing veins. Copper and molybdenite form a mineralised blanket above and to the east of the higher-grade gold envelope.

The geology model for the Cadia East deposit includes lithology, alteration, and structural faults. Modelling of the fault planes and lithological boundaries comprises data obtained from drill core and underground mapping. The major faults are used as estimation domains, with semi-soft boundaries. The factor most influencing grade continuity is that Cadia East is a porphyry copper-gold mineralisation exhibiting properties of the diffusion model.

Drilling Techniques
The Cadia East deposit has been diamond drilled with core sizes ranging from NQ3 (45.1 mm core diameter), HQ3 (61.1 mm core diameter) and PQ (85 mm core diameter). Triple tube is used to maximise core recovery. Most drill holes are collared as PQ or HQ for accurate and safe drilling. All recent drilling is orientated.

Sampling and Sub-Sampling
Data used for resource estimation is obtained from drill core, which is sampled and assayed on 2.0 metre intervals. Drill core is sampled by cutting the core in half with a diamond saw. The left hand of the cut core is placed in a calico bag, marked with the appropriate sample number and sent to the laboratory for assaying. The remaining half-core is stored in the original tray on a pallet at the core processing facility for an unspecified period and then moved to storage at the Cadia Core Farm. Sample preparation is conducted at the Newcrest Laboratory facility located in Orange and all routine drill core samples are processed on site. Pulp replicates and crushed coarse reject duplicates are routinely undertaken.

Sample Analysis Methods
Samples are routinely assayed for gold by fire assay, copper, silver, molybdenum, lead, zinc, sulphur by ICP-OES analysis with additional cyanide-soluble copper analysis. Comprehensive QA/QC procedures have been in place since drilling and sampling programs at Cadia East began. These processes are undertaken at both the laboratory and site that includes a combination of check samples (blind reference material, random blanks, duplicates, repeats, replicates, and second lab checks), meetings, visits, and external audits. Various primary laboratories located on Orange have been used including Newcrest Services Laboratory since June 2010, ALS-Chemex between May 2004 and May 2010, and AMDEL prior to May 2004.

Estimation Methodology
Ordinary Kriging of copper, gold, sulphur, silver, molybdenum and fluorine are undertaken directly into 20 m x 20 m x 20 m blocks. Estimation domains (based on structural interpretation) have been revised and simplified for the 2021 resource model for Au, Cu, Ag, Mo and S. Semi-soft boundaries were used between all estimation domains. The 0.1% copper grade shell was used to constrain estimation as a global domain. All elements are estimated independently of each other. Copper and gold grades are not capped. The resource model is validated via visual, geostatistical and production reconciliation methods. Bulk density has been estimated in the 2021 model using Inverse Distance, which is a change from the previous estimate where bulk densities were assigned by lithology.

Mineral Resource Classification
The Cadia East Mineral Resource consists of majority Indicated Mineral Resource and a portion of Inferred Mineral Resource. Classification is based on an assessment of geological confidence as a function of geological and mineralisation continuity. Grade continuity and drill hole density is assessed using Extension Variance methods, whilst the reported resources were constrained within a 'value' shell representing the limit to eventual economic extraction.

Cut-off Grade
A value algorithm is used to calculate the net smelter return (NSR) for each block using revenue and cost assumptions as of 31 December 2020. The NSR calculation takes into account Mineral Resource revenue factors, metallurgical recovery assumptions, and site operating costs. Site operating costs include mining cost, processing cost, relevant site general & administration costs. The breakeven cut off value equates to approximately A$18.00/t milled.

Mining and Metallurgical Methods and Parameters and Other Modifying Factors
No mining or environmental factors have been incorporated into the estimation. Metallurgical factors have been incorporated into the value algorithm which constrains the Mineral Resource classification.

Cadia East Ore Reserve¹⁰

The study has updated the Cadia East Ore Reserve from that reported in the Annual Mineral Resources and Ore Reserve Statement as at 31 December 2020. The update includes:

• Mining depletion to 30 June 2021
• Incorporation of a revised resource model
• Updated metallurgical recovery assumptions
• Updated metal price and break-even cost assumptions
• Removal of contained metal within unclassified material from the Ore Reserve
• Revised PC1-2 mining footprint

A summary of the material assumptions is outlined below and included in the Appendix (JORC Table 1 - Section 4).

Summary of Ore Reserve

Material Assumptions for Ore Reserves
The Cadia East Panel Cave is an operating mine in the Cadia Valley province, which incorporates learnings from operational execution to date. Work is progressing on a Mining Feasibility Study for the PC1-2 mining block and is anticipated to be completed in CY22. If required, any adjustment to the Ore Reserves statement will be made following the completion of this study.

Ore Reserve Classification
The Probable Ore Reserve is based on Indicated Mineral Resources and diluting material. No Measured Mineral Resources are stated for this deposit. The resource classification is based on an assessment of geological confidence as a function of geological and mineralisation continuity.

Mining Method
Mining studies and current underground cave mining activities at Cadia East support the appropriateness of the selected mining methods as the basis of the forward Ore Reserve estimate. Ongoing geotechnical studies and monitoring utilising experience and data from the current underground operations provide ongoing key direction for stability, design, and schedule sequence parameters.

Ore Processing
Processing of the Cadia East underground ore stream will be through the Cadia Valley Operations Ore Treatment Plant Concentrators 1 & 2. Metal recovery is through gravity and conventional flotation to a copper/gold concentrate. This circuit processes Cadia East material with similarly styled material to future ore sources. Cadia East is the sole source of feed for both Concentrator 1 and Concentrator 2. Production of up to 36mtpa¹¹ is anticipated to be produced through the concentrators. While the scale of the processing is expected to position the operation amongst the world's largest gold mines, the technology associated with the ore processing is industry standard for this style of deposit and is already custom and in practice at Cadia Valley Operations.

An update to the process plant infrastructure and metallurgical recovery assumptions were completed during the Cadia Expansion Feasibility Study (2019) and Cadia Expansion Project - Stage 2 (2020) including proposed upgrades to the circuit to boost throughput and metallurgical recovery. These assumptions have been validated to at least a Feasibility Study level through detailed analysis, laboratory testwork and the baseline confirmed as representative by reconciliation of production parameters to date of Cadia East ore through the currently installed processing plant. Metallurgical recoveries for gold are anticipated to range between approximately 75% and 85% and metallurgical recoveries of copper are expected to range between approximately 80% and 90% through the life of the project.

The molybdenum plant is currently in commissioning, with first production expected by the end of September 2021. The plant will produce a molybdenum concentrate sold as a separate saleable product with revenue from molybdenum included in the Ore Reserve estimation process. Fluorine is the key deleterious element for the gold/copper concentrate product with smelter penalties incurred on the basis of fluorine content. The PC1-2 Pre-Feasibility Study has made allowance for additional regrind capacity to remove fluorine from the final concentrate.

Cut-Off Grade
The Cadia East Ore Reserve employs a value-based cut-off by determining the NSR value equal to the relevant site operating cost. The NSR calculation takes into account Ore Reserve revenue factors, metallurgical recovery assumptions, transport costs and refining charges and royalty charges. The site operating costs include mining cost, processing cost, relevant site general and administration costs and relevant sustaining capital costs. This cost equates to a break even cut off value of approximately A$19.80/t milled.

Estimation Methodology
Estimation of the Cadia East Ore Reserve involved standard steps of mine optimisation, mine design, production scheduling and financial modelling. Factors and assumptions have been based on operating experience and performance in Cadia caving operations. The Ore Reserve has been evaluated through a financial model. All operating and capital costs as well as Ore Reserve revenue factors stated in this document were included in the financial model. A discount factor of 4.5% real was applied. This process demonstrated that the Cadia East Ore Reserve has a positive NPV. Sensitivities were conducted on the key input parameters including commodity prices, capital and operating costs, ore grade, discount rate, exchange rate and recovery which confirmed the estimate to be robust.

Material Modifying Factors
All development has mining factors for dilution and mining recovery applied to accurately represent the expected mined tonnes. PCBC™ software is used for cave production scheduling and estimation of grade for material drawn from the block caves. The resource estimate includes internal dilution and external dilution is included as part of the draw model, with no mining recovery factors applied to the Ore Reserve estimate. These assumptions are supported by the actual reconciliation between the reserve estimate and mill performance for the project to date being within acceptable uncertainty ranges for the style of mineralisation and mining method under consideration.

Other Modifying Factors
Modifications to this Project Approval under the NSW Environmental Planning and Assessment Act 1979 (EP&A Act) will be required over the life of the Ore Reserves period with the storage of tailings and efficient recovery of water a key consideration. Studies to finalise the engineering approach to the repair of the current tailings storage facilities and to determine the long-term tailings storage beyond the current facilities are ongoing and will be submitted for further approval as required over the life of the asset. Studies that look to improve water recovery from tailings, including the use of alternative technologies, are also ongoing.

Appendix 1
JORC Table 1 -Cadia East

Section 1: Sampling Techniques and Data

Section 3: Estimation and Reporting of Mineral Resources

Forward Looking Statements

This document includes forward looking statements and forward looking information within the meaning of securities laws of applicable jurisdictions. Forward looking statements can generally be identified by the use of words such as "may", "will", "expect", "intend", "plan", "estimate", "anticipate", "believe", "continue", "objectives", "targets", "outlook" and "guidance", or other similar words and may include, without limitation, statements regarding estimated reserves and resources, certain plans, strategies, aspirations and objectives of management, anticipated production, study or construction dates, expected costs, cash flow or production outputs and anticipated productive lives of projects and mines. Newcrest continues to distinguish between outlook and guidance. Guidance statements relate to the current financial year. Outlook statements relate to years subsequent to the current financial year.

These forward looking statements involve known and unknown risks, uncertainties and other factors that may cause Newcrest's actual results, performance and achievements or industry results to differ materially from any future results, performance or achievements, or industry results, expressed or implied by these forward-looking statements. 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 licences and permits and diminishing quantities or grades of reserves, political and social risks, changes to the regulatory framework within which Newcrest operates or may in the future operate, environmental conditions including extreme weather conditions, recruitment and retention of personnel, industrial relations issues and litigation. For further information as to the risks which may impact on Newcrest's results and performance, please see the risk factors included in the Annual Information Form dated 13 October 2020 lodged with ASX and SEDAR and the Operating and Financial Review included in the Appendix 4E and Financial Report for the year ended 30 June 2021 which is available to view at www.asx.com.au under the code "NCM" and on Newcrest's SEDAR profile.

Forward looking statements are based on Newcrest's good faith assumptions as to the financial, market, regulatory and other relevant environments that will exist and affect Newcrest's business and operations in the future. Newcrest does not give any assurance that the assumptions will prove to be correct. There may be other factors that could cause actual results or events not to be as anticipated, and many events are beyond the reasonable control of Newcrest. Readers are cautioned not to place undue reliance on forward looking statements, particularly in the current economic climate with the significant volatility, uncertainty and disruption caused by the COVID-19 pandemic. Forward looking statements in this document speak only at the date of issue. Except as required by applicable laws or regulations, Newcrest does not undertake any obligation to publicly update or revise any of the forward looking statements or to advise of any change in assumptions on which any such statement is based.

Non-IFRS Information

Newcrest's results are reported under International Financial Reporting Standards (IFRS). This document includes certain non-IFRS financial information within the meaning of ASIC Regulatory Guide 230: 'Disclosing non-IFRS financial information' published by ASIC and within the meaning of Canadian Securities Administrators Staff Notice 52-306 - Non-GAAP Financial Measures. Such information includes: 'Free Cash Flow' (calculated as cash flow from operating activities less cash flow related to investing activities and 'AISC' (All-In Sustaining Cost) as per the updated World Gold Council Guidance Note on Non-GAAP Metrics released November 2018. AISC will vary from period to period as a result of various factors including production performance, timing of sales and the level of sustaining capital and the relative contribution of each asset. These measures are used internally by Newcrest management to assess the performance of the business and make decisions on the allocation of resources and are included in this document to provide greater understanding of the underlying performance of Newcrest's operations. The non-IFRS information has not been subject to audit or review by Newcrest's external auditor and should be used in addition to IFRS information. Such non-IFRS financial information/non-GAAP financial measures do not have a standardised meaning prescribed by IFRS and may be calculated differently by other companies. Although Newcrest believes these non-IFRS/non-GAAP financial measures provide useful information to investors in measuring the financial performance and condition of its business, investors are cautioned not to place undue reliance on any non-IFRS financial information/non-GAAP financial measures included in this document. When reviewing business performance, this non-IFRS information should be used in addition to, and not as a replacement of, measures prepared in accordance with IFRS, available on Newcrest's website, the ASX platform and SEDAR.

Ore Reserves and Mineral Resources Reporting Requirements

As an Australian Company with securities listed on the Australian Securities Exchange (ASX), Newcrest is subject to Australian disclosure requirements and standards, including the requirements of the Corporations Act 2001 and the ASX. Investors should note that it is a requirement of the ASX listing rules that the reporting of ore reserves and mineral resources in Australia is in accordance with the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code) and that Newcrest's ore reserve and mineral resource estimates comply with the JORC Code.

Newcrest is also subject to certain Canadian disclosure requirements and standards, as a result of its secondary listing on the Toronto Stock Exchange (TSX), including the requirements of National Instrument 43-101 (NI 43-101). Investors should note that it is a requirement of Canadian securities law that the reporting of Mineral Reserves and Mineral Resources in Canada and the disclosure of scientific and technical information concerning a mineral project on a property material to Newcrest comply with
NI 43-101.

Newcrest's material properties are currently Cadia, Lihir and Wafi-Golpu. Copies of the NI43-101 Reports for Cadia, Lihir and Wafi-Golpu, which were released on 14 October 2020, are available at www.newcrest.com.au and on Newcrest's SEDAR profile.

Competent Person's Statement

The information in this document that relates to Cadia East Ore Reserves is based on and fairly represents information compiled by Mr Ian Austen. Mr Ian Austen is the Mining Study Manager and a full-time employee of Newcrest Mining Limited. He is a shareholder in Newcrest Mining Limited and is entitled to participate in Newcrest's executive equity long term incentive plan, details of which are included in Newcrest's 2021 Remuneration Report. He is a Fellow of the Australasian Institute of Mining and Metallurgy. Mr Ian Austen has sufficient experience which is relevant to the styles of mineralisation and types of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the JORC Code and as a Qualified Person under NI 43-101. Mr Ian Austen approves the disclosure of scientific and technical information contained in this document and consents to the inclusion of material of the matters based on his information in the form and context in which it appears.

The information in this document that relates to Cadia East Mineral Resources is based on and fairly represents information compiled by Mr Luke Barbetti. Mr Luke Barbetti is the Principal - Cadia Integrated Planning and a full-time employee of Newcrest Mining Limited. He is a shareholder in Newcrest Mining Limited and is entitled to participate in Newcrest's executive equity long term incentive plan, details of which are included in Newcrest's 2021 Remuneration Report. He is a Member of the Australian Institute of Geoscientists. Mr Luke Barbetti has sufficient experience which is relevant to the styles of mineralisation and types of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the JORC Code and as a Qualified Person under NI 43-101. Mr Luke Barbetti approves the disclosure of scientific and technical information contained in this document and consents to the inclusion of material of the matters based on his information in the form and context in which it appears.

Authorised by the Newcrest Disclosure Committee

For further information please contact

Investor Enquiries
Tom Dixon
+61 3 9522 5570
+61 450 541 389
Tom.Dixon@newcrest.com.au

Ben Lovick
+61 3 9522 5334
+61 407 269 478
Ben.Lovick@newcrest.com.au

North American Investor Enquiries
Ryan Skaleskog
+1 866 396 0242
+61 403 435 222
Ryan.Skaleskog@newcrest.com.au

Media Enquiries
Tom Dixon
+61 3 9522 5570
+61 450 541 389
Tom.Dixon@newcrest.com.au

This information is available on our website at www.newcrest.com.

¹ The Pre-Feasibility Study has been prepared with the objective that its findings are subject to an accuracy range of ±25%. The findings in the Study and the implementation of the PC1-2 Project are subject to all the necessary approvals, permits, internal and regulatory requirements and further works. The Study estimates are indicative only and are subject to market and operating conditions. They should not be construed as guidance.
² The production targets underpinning the Study estimates are contained in the column titled "PC1-2" in the table on Page 2 under the heading "Table of Key Study Findings".
³ The production targets are based on the utilisation of ~20% of the total Cadia East Ore Reserves as set out on Page 9, which has been prepared by a Competent Person in accordance with Appendix 5A of the ASX Listing Rules.
⁴ As Cadia's functional currency is AUD, the Study has been assessed in AUD. The outcomes in this release have been converted to USD using an exchange rate of 0.75.
⁵ Using a discount factor of 4.5% (real).
⁶ As described in the section titled "Permitting and Tailings", further approvals will be required for the throughput rate on which this is based and operations after 2030.
⁷ The production targets are based on the utilisation of 100% of the total Cadia East Ore Reserves as set out on Page 9, which has been prepared by a Competent Person in accordance with Appendix 5A of the ASX Listing Rules.
⁸ Assumptions for gold equivalent calculations include: Gold price of US$1,500/oz, copper price of US$3.30/lb, AUD:USD exchange rate of 0.75. Recovered Gold & Copper Production as provided in the charts as indicative of the forward metal sales profile. Gold-equivalent production (by-product basis) = Recovered Au oz + (Cu Price /lb) x 2204 / (Au Price US$/oz) x (Recovered copper tonnes as provided in the chart above, as indicative of the forward production profile). Gold grades are as set out in the indicative mine production profile on page 5. Based on LOM Au recovery of approximately 81% and approximately 87% for Cu. In the Company's opinion, all elements included in the metal equivalents calculation have a reasonable potential to be recovered and sold.
⁹ Data is reported to two significant figures to reflect appropriate precision in the estimate and this may cause some apparent discrepancies in totals.
¹⁰ Data is reported to two significant figures to reflect appropriate precision in the estimate and this may cause some apparent discrepancies in totals.
¹¹ Subject to permitting and regulatory approvals.
¹² Subject to permitting and regulatory approvals.

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