P2 Gold 2025 PEA Update Delivers Strong Economics and Increased Metal Production

Executive Summary

• P2 Gold released its 2025 Updated PEA for the Gabbs Project, showing a after‑tax NPV of US$2.253 billion (5% discount) and an IRR of 77.5%, markedly higher than the 2024 PEA.
• The updated study projects LOM production of ~1.55 Moz Au, 2.48 Moz Ag and 213 kt Cu with a pre‑production capital requirement of US$382.7 million and a payback of <1 year at spot metal prices.
• Management highlighted improved metal recoveries from the Phase Three Metallurgical Program and indicated that proceeds from a recent capital raise will fund drilling, permitting and feasibility work.

Key Details

• Economic Highlights (Spot Case Metal Prices)
• After‑tax NPV (5% discount): US$2.253 billion
• After‑tax NPV (15% discount): US$946 million
• IRR: 77.5% (both base and spot cases)
• LOM after‑tax cash flow: US$3.737 billion over a 14.2‑year mine life
• Production Forecast – Total LOM output:
• Gold: 1.547 Moz
• Silver: 2.480 Moz
• Copper: 213,035 t (≈470 M lb)
• Capital & Operating Cost Updates (to Aug 2025)
• Mining OPEX ↑ ~1%
• Mining CAPEX ↑ ~7.3%
• Processing OPEX ↑ ~14%
• Processing CAPEX ↑ ~2%
• Pre‑Production Capital: US$382.7 million (incl. 10% contingency) – payback <1 year at spot prices.
• Operating Cost Metrics (Base Case):
• Mining cost: US$1.56/t mined
• Heap leach processing: US$12.72/t
• Mill processing: US$14.59/t
• G&A: US$0.74/t
• AISC (by‑product credit) – $1,284/oz Au (base), $1,509/oz Au (spot).
• Process Recoveries (Phase Three Metallurgy):
• Heap – Gold 85%, Silver 60%, Copper 67%
• Mill – Gold 94.5%, Silver 50%, Copper 79.9%
• Mining Plan: Open‑pit mining of 534 Mt total material (399 Mt waste, 125 Mt ore) using a mixed fleet of owned/leased trucks and shovels; processing via heap leach (first 5 yr at 9 Mt/yr, thereafter 4 Mt/yr) and mill for sulphide ore.
• Next Steps:
• Expansion & infill drilling to convert inferred resources to indicated and enlarge the resource base.
• Geotechnical drilling for pit wall optimization.
• Additional metallurgical testing (sulphide gold heap leach, HPGR).
• Commence feasibility‑level studies, including contract vs. owner mining evaluation and equipment alternatives.
• Qualified Persons: Carl E. Defilippi, RM SME & Caleb Cook, P.E. (KCA); Eugene Puritch, P.Eng., FEC, CET & Andrew Bradfield, P.Eng. (P&E). Chief Exploration Officer Ken McNaughton, P.Eng. is the responsible QP for Gabbs.

Notable Quotes

• “Life‑of‑Mine production at Gabbs is now expected to be approximately 1.55 million ounces of gold and almost 470 million pounds of copper… With the PEA updated and funds from our recent capital raise, we will now focus on moving forward with drilling, permitting and project feasibility study.” – Joe Ovsenek, President & CEO

Materiality Assessment: Material – Positive (significant upward revision to project economics, large NPV/IRR uplift, and clear path toward further development financing.)