Fredonia Mining Announces Positive PEA for EDM Highlighting 146,000 oz AuEq Annual Production, US$1.49 Billion NPV10 and 65% IRR

Fredonia Mining Inc. released a Preliminary Economic Assessment and updated Mineral Resource Estimate for its 100%-owned El Dorado Monserrat gold-silver project in Santa Cruz, Argentina. The updated MRE, effective Aug 17, 2026, reports 126.45 Mt of Measured and Indicated resources grading 0.47 g/t Au and 12.66 g/t Ag, containing 1,932.7 koz Au, 51.46 moz Ag, and 2,758.6 koz AuEq. Inferred resources are 73.89 Mt grading 0.31 g/t Au and 8.98 g/t Ag, containing 739.6 koz Au, 21.35 moz Ag, and 1,087.8 koz AuEq. The MRE uses a 0.10 g/t Au cut-off; mineral resources are not mineral reserves.

The PEA contemplates conventional open-pit truck-and-shovel mining with heap leaching, including a 20,000 tpd crush/agglomeration plant plus a run-of-mine leach pad. Base-case economics show a 17+ year mine life, average production of 146,000 oz AuEq/year, about 183,000 oz AuEq/year in the first five years, post-tax NPV10 of US$1.494B, and post-tax IRR of 65%. Under Argentina’s RIGI scenario, not included in the base case, NPV10 rises to US$1.807B and IRR to 82%. Initial capital is estimated at US$345.7M; life-of-mine capital is US$686.1M; life-of-mine cash cost is US$1,632/oz AuEq.

The PEA mine plan includes Main Veins and La Herradura only; Monserrat West and other veins are outside the current plan. Scheduled process-plant feed includes 79.67 Mt M&I plus 44.10 Mt Inferred. Inferred resources represent 35.6% of scheduled process-plant feed. The accuracy range is -35% to +50%; the technical report is to be filed on SEDAR+ within 45 days.

Fredonia Mining Inc. (FRED) released its Preliminary Economic Assessment (PEA) for the EDM project, a move that aligns with management’s prior guidance to complete the study by the end of August 2026. The company did not issue new company-wide financial results in this release. Prior-period context not disclosed in today’s filing indicates that Q2 2026 financials showed cash of US$4.11M, working capital of US$3.50M, a six-month net loss of US$1.15M, and an explicit going-concern uncertainty.

The PEA provides the company’s first detailed economic framework for EDM, with a headline net present value (NPV) that is large relative to Fredonia’s estimated roughly C$45.9M market capitalization. The updated Mineral Resource Estimate (MRE) expands Measured and Indicated (M&I) resources to 2,758.6 koz AuEq, up from the prior disclosure of approximately 2.25 moz AuEq M&I. This increase reflects a larger tonnage at relatively low grade and a 0.10 g/t Au cut-off. However, the study remains a PEA rather than a Pre-Feasibility or Feasibility Study, and no mineral reserves have been declared.

The economic results rely on preliminary metallurgical assumptions, including 85% Au and 70% Ag recoveries for crushed heap-leach feed, and 50% Au and 20% Ag for run-of-mine leach feed. These are not demonstrated recoveries. The base case uses US$3,800/oz Au and US$45/oz Ag. Sensitivity analysis shows that NPV10 falls to US$378M at US$2,650/oz Au and 65% plant gold recovery.

The stock had already rallied into the PEA, rising from about C$0.51 on Jul 31 to C$0.71 by Aug 28, suggesting that some positive outcome was already being priced in. The project still requires meaningful funding, further technical work, and the conversion of ounces into higher-confidence categories.

Fredonia Mining Inc. is a TSXV-listed gold-silver exploration and development company holding approximately 64,000 hectares in the Deseado Massif, Santa Cruz Province, Argentina. Its flagship asset is the 100%-owned El Dorado Monserrat project, comprising approximately 33,500 hectares located near AngloGold Ashanti’s Cerro Vanguardia gold-silver mine. Other projects include El Águila, approximately 9,100 hectares, and Hornia, approximately 21,500 hectares.

The El Dorado Monserrat project now has an updated MRE of 2,758.6 koz AuEq M&I and 1,087.8 koz AuEq Inferred. The PEA mine plan uses Main Veins in the Northern Corridor and La Herradura in the Southern Corridor; Monserrat West is excluded due to a higher strip ratio. No mineral reserves have been established.

Estanislao Auriemma serves as CEO and is described in the release as a significant shareholder. In July 2026, the company appointed Gustavo Gomes as strategic adviser.