NGEx Reports Q2 2025 Results; Porphyry and High-grade Gold Discoveries at Lunahuasi; Plan to Spin-out Royalties to Shareholders

Executive Summary

• NGEx reported Q2 2025 results highlighting two major discoveries at the Lunahuasi project: a new copper‑gold porphyry system and ultra‑high‑grade free‑gold quartz veins.
• The company announced a planned spin‑out of NSR royalties on its flagship Lunahuasi and Los Helados assets into a wholly‑owned subsidiary (RoyaltyCo), with shareholders to receive ¼ share of RoyaltyCo per NGEx share, while NGEx retains a 19.9% interest.
• Financials show a net loss of C$21.4 M for the quarter, cash of C$97.2 M and working capital of C$138.6 M; liquidity remains strong to fund ongoing exploration.

Key Details

• Drilling – Phase 3 (Lunahuasi)
• Total: 25,003 m in 24 holes (including 3 geotechnical holes).
• Porphyry discovery – Hole DPDH027: 1,619.4 m @ 0.87% CuEq (incl. 743 m @ 0.56% CuEq; 18 m @ 2.68% CuEq; 17.8 m @ 1.23% CuEq).
• Porphyry extension – Hole DPDH029: argillic alteration indicating further porphyry potential ~500 m south of DPDH027.

• Ultra‑high‑grade gold veins – Hole DPDH046: 2.20 m @ 142.27 g/t Au (467.10 m) and 3.60 m @ 245.39 g/t Au (520.00 m).

• Corporate – Royalty Spin‑out

• Arrangement to create RoyaltyCo, which will hold a 1% NSR on Lunahuasi (Lunahuasi Royalty) and a combined 2.0% NSR on Los Helados (Los Helados Royalty), of which RoyaltyCo receives 1.38% NSR.
• Shareholders to receive ¼ RoyaltyCo share per NGEx share; NGEx retains 19.9% of RoyaltyCo.
• Completion subject to shareholder, TSX and court approvals; special meeting scheduled for 2025‑09‑12.

• Post‑Arrangement, RoyaltyCo intends to list on the TSXV.

• Financial Highlights (Three months ended June 30, 2025)

• Exploration & project investigation expenses: C$17.4 M (up from C$7.8 M YoY).
• General & administration: C$3.3 M.
• Net loss: C$21.4 M; basic/diluted loss per share: C$0.10.
• Cash balance: C$97.2 M (down from C$153.4 M).
• Short‑term investments: C$46.0 M.

• Working capital: C$138.6 M.

• Outlook

• Phase 4 drilling at Lunahuasi planned to start ~October 2025, focusing on follow‑up of porphyry and high‑grade gold targets.
• Completion of the royalty spin‑out expected to provide shareholders additional long‑term value while NGEx continues project advancement.

Notable Quotes

• “Phase 3 drilling at Lunahuasi has been a resounding success… two new discoveries… have the potential to further augment what is already a remarkable deposit.” – Wojtek Wodzicki, President & CEO
• “The Arrangement will continue to give shareholders exposure to our keystone assets … while also providing a ground‑level opportunity to participate in a new and exciting investment opportunity in the royalty space.” – Wojtek Wodzicki