29Metals : June 2022 Quarter - Quarterly Report

Improved safety and production performance for the quarter:

June 2022

Quarterly Report

only29Metals Limited ('29Metals' or, the 'Company') today reported results for the June 2022 quarter.

Highlights

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use▪

1. steady reduction in recordable injuries, particularly at Capricorn Copper, delivered an improvement in total recordable injury frequency rate ('TRIFR');

1. at Golden Grove, higher quarter-on-quarter production for all metals other than zinc, reflecting continued prioritisation of production activity from nearer-to-surface ore sources over ore sources at depth;

1. at Capricorn Copper, higher production quarter-on-quarter reflected improved grades and recoveries as well as normalisation from Mar-Qtr operational impacts.

Both operations continued to effectively manage costs. 29Metals is less sensitive in the nearer term to the impacts of energy & fuel costs, reflecting the lower diesel and electricity consumption of our high-grade underground mines.

▪ Finished the quarter with an unaudited cash balance of $228 million (Mar-Qtr: $188 million), largely reflecting timing of

personal	sales and the unwinding of trade receivables balances reported in the Mar-Qtr.
		▪ Good progress made on operational de-risking and growth projects during the quarter, with key projects progressing
			generally on plan, other than a short delay in commissioning of the paste plant at Golden Grove. Completion of studies
			at Golden Grove for Cervantes and Gossan Valley optimisation remain on track for completion in the Sept-Qtr.
		▪ Notwithstanding the challenging conditions that continued in the Jun-Qtr, 29Metals' full year guidance as disclosed in
			the Mar-Qtr report is materially maintained, with a favourable change to treatment and refining charges cost ('TCRC')
			guidance, a reduction in precious metals production guidance and a $2 million increase in growth capital. Refer to page
			3 for commentary regarding full year guidance.
		Summary
				Unit		Mar-Qtr 2022	Jun-Qtr 2022	2022 YTD	2022 Guidance 6
		TRIFR 1	/mmhrs		13.3	12.1	12.1	N/a
		LTIFR 1	/mmhrs		1.0	1.0	1.0	N/a
		Copper produced	kt		9.3	11.1	20.5	39 - 46
		Zinc produced	kt		12.2	10.8	23.0	55 - 65
		Gold produced	koz		5.1	8.2	13.2	23 - 27
For	Silver produced	koz		339	351	690	1,250 - 1,500
Cu-eq production 2	kt		15.8	18.2	34.0	N/a
								4
		C1 Costs	$m		67	74	141	N/a
		C1 Costs	US$/lb Cu sold		2.26	2.51	2.38	N/a
		AISC	$m		104 5	106	210	N/a
		AISC	US$/lb Cu sold		3.53 5	3.57	3.55	N/a
		Average copper price 3	US$/lb		4.55	4.26	4.40	N/a
		Average exchange rate	AUD:USD		0.725	0.714	0.719	N/a
		Capital	$m		29	25	54	99 - 131

1. TRIFR and LTIFR (lost time injury frequency rate) are shown as the 12-month moving average at the end of each Qtr.
2. Production in copper equivalent terms ('Cu-eq') for the Jun-Qtr is calculated applying average LME metal prices (Cu US$9,541/t, Zn US$3,933/t, Au US$1,871/oz, Ag US$23/oz, Pb $2,206/t (Source: FactSet)) and actual recoveries (refer to Appendix 1). Cu-eq production for the Mar-Qtr 2022 calculation assumptions set out in the Mar-Qtr report. 2022 YTD Cu-eq is the simple aggregate of reported Mar-Qtr and Jun-QtrCu-eq.
3. Average copper price excludes final invoice, unrealised quotational period ('QP') adjustments and hedging.
4. Capital guidance range is the sum of guidance for development, sustaining, and growth capital, and Group exploration.
5. Mar-Qtrcorporate costs were reviewed post Mar-Qtr reporting, resulting in an adjustment to corporate costs for the Mar-Qtr and reported Mar-Qtr AISC.
6. Refer to page 3 for commentary regarding guidance progress and updates.

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June 2022 | Quarterly Report

Group Production (tonnes) and unit costs (US$/lb payable Cu sold)

only

								33,959	$3.53		$3.57			$3.55
			18,162			13,488
	15,797
					7,020
	6,468							20,471				$2.26		$2.51			$2.38
					11,142
	9,330
	Mar-Qtr				Jun-Qtr		2022-YTD				Mar-Qtr	Jun-Qtr	2022-YTD
	By-products		Copper produced	Cu-eq produced					AISC			C1 Costs

Jun-Qtr Group AISC build (A$ million)

use	160								32
140								(12)
120														10
							(67)					5	9
100											7
80
60				104		121										106
40		67							74
	20
	-
	Mar-QtrMar-Qtr	Jun-Qtr	Realisat'n Stockp'e By-prod's	Jun-Qtr	Royalties Corporate Sustain'g Cap. Dev. Jun-Qtr
		C1 Costs	AISC	Site	movem'ts	C1 Costs			capex		AISC
							Costs

1. Site costs are the aggregate of mining, processing, and G&A expenses. Realisation costs are the aggregate of concentrate transport costs and TCRC (refer to Appendix 2).
2. Mar-Qtrcorporate costs were reviewed post Mar-Qtr reporting, resulting in an adjustment to corporate costs for the Mar-Qtr and reported Mar-Qtr AISC.

personalCommenting on the Jun-Qtr, Managing Director & Chief Executive Officer, Peter Albert, said:

Performance in the Jun-Qtr was pleasing, with improved safety performance, improved metal production, progress on our growth and operational de-risking projects, and good cost management, in the context of what continues to be a challenging operating environment.

Particularly pleasing was the improvement in safety performance during the quarter following a concerted focus from management. We remain focused on continuously improving our safety performance.

The improvement in copper and precious metals production was also a highlight. Our focus for the balance of the year will Foremain prioritising production schedules while also seeking to accelerate development activity with available resources.

Costs management will also remain a focus across the business given inflationary pressures seen across the sector.

We also had a busy period for exploration in the Jun-Qtr, with activity across resource development and extension drilling at our operating sites as well as completing our first field campaign at Redhill. We look forward to updating the market regarding the results of our exploration activity as assay results come through in the Sep-Qtr.

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June 2022 | Quarterly Report

COVID-19 update

The direct and indirect impacts of COVID-19, alone and in combination with other external factors, continued to present challenges during the Jun-Qtr.

COVID-19 related absenteeism for the quarter equated to approximately 700 shifts at Golden Grove (Mar-Qtr: 1,200) and only140 shifts at Capricorn Copper (Mar-Qtr: 200), principally affecting the underground mining teams at each site. The absolute difference in lost shifts between Golden Grove and Capricorn Copper reflects total workforce numbers, different close contact requirements between states and the rate of community transmission in Western Australia and Queensland

(respectively).

During the quarter the isolation requirements in Western Australia were relaxed from two weeks to one week and the state implemented a change to the definition of close contacts, providing some relief to site absenteeism during the latter part of the quarter. Although COVID-19 related absenteeism levels did moderate during June, absenteeism levels associated with seasonal winter illness have increased markedly. Following high COVID-19 rates and the onset of colder month seasonal illnesses, employees and contractors have been encouraged not to attend work if they have symptoms.

The ongoing absenteeism levels during the Jun-Qtr, combined with the continuing tight labour market conditions

useThe continuing direct and indirect impacts of COVID-19, alone and in combination with other external factors, remain volatile and difficult to predict. The winter period and seasonal illnesses adds to the volatility and the risk of labour challenges. 29Metals will continue to manage COVID-19 related risks to best manage available resources, whilst monitoring the well- being of our teams at sites.

(particularly in Western Australia), required ongoing adjustments to Golden Grove's short-term operating plans to prioritise production related activities over development related activities to best manage available resources, as further described in the Operations section. Additional COVID-19 related impacts in the quarter included delays to capital projects and additional plant downtime as a result of delays securing parts, equipment and labour resources.

Guidance update 1

29Metals' full year guidance remains materially intact notwithstanding the challenging conditions that continued during the Jun-Qtr across the sector. Progress relative to full-year guidance, as reported at the Mar-Qtr, is set out below, and includes:

▪ a lowering of TCRC guidance for the full year, reflecting a reduction in the expected impact of zinc price TC escalators as a result of the fall in the zinc price; 2

▪ a lowering of precious metals guidance for the full year; and ▪ a modest increase in forecast growth capital expenditure.

		Full-year Guidance 1		Jun-Qtr-2022 progress update
	Production
	Copper (t)	39,000 - 46,000	▪ Group - Guidance maintained; lower half of range as previously guided
personal			▪ Golden Grove - Guidance maintained; expected to be in the upper half of
				guidance range
				▪ Capricorn Copper - Guidance maintained, expected to be in the lower half of
				guidance range.
	Zinc (t)	55,000 - 65,000	▪ Guidance maintained; lower half of guidance range as previously guided.
For	Gold (oz)	23,000 - 27,000	▪ Guidance lowered from lower half of guidance range (Mar-Qtr), reflecting
		(27,000 - 34,000)	continued impact of reported Golden Grove scheduling changes.
Silver (koz)	1,250 - 1,500	▪ Guidance lowered from lower half of guidance range (Mar-Qtr), reflecting
			(1,370 - 1,640)	lower than plan silver grades (and recoveries) from Esperanza South ('ESS')
				at Capricorn Copper.
	Lead (t)	2,000 - 3,000	▪ Guidance maintained; lower half of guidance range as previously guided.
	Costs
	Mining (excl. Cap.	284 - 327	▪ Guidance maintained for total site costs, and allows for labour cost increases
	Dev, $m)		and general inflationary pressures observed year-to-date
			▪ Processing and G&A costs expected to be in upper half of guidance range
	Processing ($m)	116 - 131
			▪ Mining costs expected to be in the lower half of the guidance range.
	G&A ($m)	54 - 66
	Concentrate transport	50 - 58	▪ Guidance maintained.
	($m)

1. Guidance is subject to market and operating conditions. Refer to important information regarding forward looking statements set out on page

1. of this report.

1. Refer to the Corporate section of Mar-Qtr report for details of zinc TC escalators (released to ASX announcements platform on 27 April 2022).

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June 2022 | Quarterly Report

			Full-year Guidance 1		Jun-Qtr-2022 progress update
		TCRC ($m)	66 - 86	▪ Guidance lowered (Mar-Qtr), reflecting reduced forecast impact of zinc TC
				(81 - 101)	escalators at Golden Grove as a result lower zinc prices. 2
		Corporate ($m)	23 - 26	▪ Guidance maintained.
	Capital
		Sustaining capex ($m)	44 - 55	▪ Guidance maintained
					▪ Full year sustaining capital expected to be in the upper half of the range,
					reflecting cost escalation for civil contractor rates and the bringing forward of
					ventilation infrastructure projects previously reported.
		Capitalised	35 - 44	▪ Guidance maintained
		development ($m)		▪ Full-year capitalised development expected to be in the upper half of the
only			range, reflecting scheduling changes to prioritise production activity where
		development capital per tonne is higher
					▪ Higher capitalised development offset by lower mining costs (refer above).
use2.		10 - 12	▪ $2 million increase in guidance range, reflecting additional costs for paste fill
		Growth Capital ($m)
				(8 - 10)	establishment at Golden Grove (refer to Key Projects section).
		Group Exploration	10 - 20	▪ Guidance range maintained
		($m)		▪ Includes additional $2 million drilling at ESS following positive drilling results
					(refer to Exploration section).
1.		Guidance as at date of this quarterly report. Where a reported guidance range has been updated (relative to Mar-Qtr report), previous guidance
			shown in parenthesis.
			Refer to the Corporate section of the Mar-Qtr report for details of zinc TC escalators (released to ASX announcements platform on 27 April
personalFor	2022).

Market and operating conditions remain volatile, including as a result of continuing uncertainty regarding the duration and severity of direct and indirect impacts of COVID-19 which continued into the Jun-Qtr. 29Metals notes that guidance (reported and updated above) assumes:

▪ that the combined direct and indirect impacts of COVID-19 do not escalate or continue for an extended period, and that COVID-19 related absenteeism peaked during the Jun-Qtr and there is a steady reduction in COVID-19 related absenteeism during the balance of 2022; and

▪ external factors, including labour market tightness (particularly in Western Australia) and inflationary pressures, alone or in combination with COVID-19 related factors, do not materially deteriorate in the remainder of the year.

29Metals will continue to monitor market and operating conditions, including inflationary pressures. Should market and operating conditions deteriorate further, 29Metals will update the market regarding impacts to guidance.

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programs commenced to increase awareness of mental health support and the Group's employee assistance program across the 29Metals Group.

the Perth Magistrates Court handed down a penalty for a safety incident at Golden Grove in 2018. Although no one was injured in the incident, it was a serious matter and Golden Grove pleaded guilty to a charge relating to a failure to ensure that its safety systems and processes were followed. The prosecution was an important reminder across 29Metals for assessing risks and ensuring that our safety procedures are followed; and

members of the emergency response team at Capricorn Copper teamed up with representatives from the Eloise and Ernest Henry mines to compete in the Minerals Council of Australia's Northern Australia Emergency Response Competition, securing a first and two second place awards in the simulated safety events;

June 2022 | Quarterly Report

Sustainability & ESG

29Metals launched Our Approach to Sustainability & ESG in the 2021 Annual Report released to the ASX announcements platform on 21 April 2022. 3

onlyIn this section, 29Metals reports its progress and activities in each of the core dimensions of Our Approach to Sustainability & ESG (infographic shown to right), including progress against 29Metals' stated priorities for 2022, during the Jun-Qtr.4

Safe and inclusive workplace

Safety

Safety performance improved quarter-on-quarter with useGroup TRIFR of 12.1/mmhrs (Mar-Qtr: 13.3/mmhrs).

LTIFR was flat quarter-on-quarter at 1.0/mmhrs with a single lost time injury ('LTI') recorded for the quarter during the field activities at Redhill.

The TRIFR result reflects a reduction in total recordable incidents in three consecutive quarters.

29Metals' commitment to safety was well reflected at Capricorn Copper during a planned major shutdown in

late June where site management implemented a stop- personalwork to reinforce the importance of safety.

Also during the quarter:

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ForInclusion

29Metals' workforce-led working group, InDiVisible, continued its work during the quarter, identifying opportunities to promote inclusion and diversity in our workplaces, including improvements in village lighting, various site events, external mentoring programs for women and enhancement of facilities at our operating sites.

29Metals also completed its workplace gender equality reporting for the 12 months to 31 March 2022. Reporting results are available via the Workplace Gender Equality Agency website at: www.wgea.gov.au.

Roll out of training to reinforce 29Metals' commitment to inclusion and diversity, including workplace behaviour and promoting the different mechanisms available at 29Metals for raising concerns, commenced during the quarter (refer further below under Responsible and ethical business practices / Continuous improvement).

29Metals noted publication of the second report of the Western Australia Parliamentary Inquiry regarding Sexual Harassment against Women in the FIFO mining industry late in the quarter. 29Metals is reviewing the report findings and recommendations to identify opportunities to enhance 29Metals' approach to promoting a workplace and culture that will not accept inappropriate workplace behaviour.

Responsible environmental stewardship (including action on climate change)

Environmental projects at both operating sites, focussing on waste and water management, were progressed during the quarter.

Capricorn Copper

• Reduction of excess water inventory on site continued.
• Internal taskforce established to evaluate and implement strategies to improve mine-affected water and mine-waste management on site.

Golden Grove

• Work to remove waste materials on surface commenced.
• Implementation of paste fill at Golden Grove continues, with commissioning now expected early in the Sep-Qtr (refer to Key Projects section).

1. A standalone version of 29Metals' 2021 Sustainability & ESG Report is available on 29Metals' website athttps://www.29metals.com/sustainability.
2. Progress against 29Metals' 2022 Sustainability & ESG priorities is tracked in Appendix 3 to this report.

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