Update on Scheme of Arrangement

Cygnus Metals Limited has provided an update regarding the proposed acquisition by Central Asia Metals PLC (CAML) through a scheme of arrangement. The primary condition precedent for the deal is regulatory approval from Kazakhstan, which is currently in process with a statutory decision deadline of October 1, 2026.

This timeline creates a scheduling conflict with the planned Scheme Meeting on September 18, 2026, and the Second Court Date on September 23, 2026. To address this, Cygnus directors have outlined a contingency plan to either defer the Court Date or seek Court approval to treat the regulatory approval as a condition subsequent if the decision is not received in time.

CAML management has expressed confidence that approval will be granted in the ordinary course, citing a successful track record with similar government approvals in Kazakhstan. The Cygnus Board continues to unanimously recommend that shareholders vote in favor of the Scheme, contingent on no superior proposal emerging and the Independent Expert maintaining their "fair and reasonable" opinion.

Cygnus Metals Limited (CYG) has issued a standard procedural update regarding its previously announced merger and acquisition transaction, confirming that the deal remains on track for implementation in early October 2026. The company noted that the delay in obtaining regulatory approval in Kazakhstan is a known administrative hurdle rather than a fundamental change to the deal's economics or strategic rationale.

The transaction, originally announced in June 2026, carries an implied equity value of approximately A$232 million, representing a 60% premium to Cygnus' last closing price. All other major conditions have been satisfied or are on track, including clearance from North Macedonia, the Independent Expert opinion, CAML shareholder approval, and conditional listing approval from the TSX.

Cygnus stated that its contingency plan demonstrates prudent corporate governance and minimizes the risk of deal collapse due to minor regulatory timing issues. The update is expected by the market as part of the standard M&A timeline and provides reassurance that the acquisition continues to progress without material negative impact on the company's valuation or operational outlook.

Cygnus Metals Limited is a diversified critical minerals explorer focused on advancing the Chibougamau Copper-Gold Project in Quebec, Canada. The flagship project features a 900,000 tonnes-per-year processing facility and tailings storage facility, representing the only base-metals processing infrastructure within a 250 km radius.

Mineral Resources (JORC-compliant) include: - Measured & Indicated: 6.4 Mt at 3.0% CuEq (193 kt CuEq) - Inferred: 8.5 Mt at 3.5% CuEq (295 kt CuEq)

Key deposits include Corner Bay, Golden Eye, Cedar Bay, and the newly targeted Gwillim and Joe Mann prospects. Recent drilling has highlighted high-grade intercepts, including up to 105.5 g/t AuEq at Golden Eye and significant copper-gold intersections at Cedar Bay and Gwillim. The company is advancing environmental baseline studies and an updated Scoping Study/PEA, with a focus on refurbishing the existing processing plant to accelerate the path to feasibility.