Announcement PDF ASX: SKY LARGE-SCALE TIN DEPOSIT MATCHED WITH TECHNOLOGY advantage TO MEET GROWING GLOBAL DEMAND FOR TIN – A VITAL TECHNOLOGY METAL September 2024 A S X : S KY DISCLAIMER - IMPORTANT INFORMATION Disclaimer Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from those expressed or implied by such forward looking information, including risks associated with investments in private and publicly listed companies such as the Company; risks associated with general economic conditions; the risk that further funding may be required but unavailable for the ongoing development of the Company’s projects or future acquisitions; changes in government regulations, policies or legislation; unforeseen expenses; fluctuations in commodity prices; fluctuation in exchange rates; litigation risk; restrictions on the repatriation of earnings by the Company’s subsidiaries; the inherent risks and dangers of mining exploration and operations in general; risk of continued negative operating cashflow; the possibility that required permits may not be obtained; environmental risks; uncertainty in the estimation of mineral resources and mineral reserves; general risks associated with the feasibility and development of each of the Company’s projects; foreign investment risks in Australia; changes in laws or regulations; future actions by government; breach of any of the contracts through which the Company holds property rights; defects in or challenges to the Company’s property interests; uninsured hazards; disruptions to the Company’s supplies or service providers; reliance on key personnel and retention of key employees. Forward-looking information is based on the reasonable assumptions, estimates, analysis and opinions of management of the Company made in light of their experience and their perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances at the date that such statements are made, but which may prove to be incorrect. The Company believes that the assumptions and expectations reflected in such forward-looking information are reasonable. Assumptions have been made regarding, among other things: the Company’s ability to carry on its future exploration, development and production activities, the timely receipt of required approvals, the price of tin, gold, copper and base metals, the ability of the Company to operate in a safe, efficient and effective manner and the ability of the Company to obtain financing as and when required and on reasonable terms. Readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions which may have been used. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws. No Liability/Summary Information The Company has prepared the Presentation Materials based on information available to it at the time of preparation. No representation or warranty, express or implied, is made as to the fairness, accuracy or completeness of the information, opinions and conclusions contained in the Presentation Materials. To the maximum extent permitted by law, the Company, its related bodies corporate (as that term is defined in the Corporations Act 2001 (Commonwealth of Australia)) and the officers, directors, employees, advisers and agents of those entities do not accept any responsibility or liability including, without limitation, any liability arising from fault or negligence on the part of any person, for any loss arising from the use of the Presentation Materials or its contents or otherwise arising in connection with it. Post 1989, exploration results detailed in this presentation have previously been reported to the ASX or in the independent geologist report contained in the Prospectus lodged on 18 April 2019. Endowment = current resource plus production. Coordinate system on maps is MGA94 Zone55 unless otherwise stated. Competent Persons Statement The information in this report that relates to Exploration Results is based on information compiled by Mr. Oliver Davies, who is a Member of the Australasian Institute of Geoscientists. Mr. Oliver Davies is an employee of Sky Metals Ltd and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves.’ Mr. Davies consents to the inclusion in this report of the matters based on his information in the form and context in which it appears. The information in this report that relates to the Mineral Resource Estimate was prepared by Luke Burlet, who is a Member and Chartered Professional (Geology) of the Australasian Institute of Geoscientists. Luke Burlet is a Director of H & S Consultants and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves.’ Mr. Burlet consents to the inclusion in this report of the matters based on his information in the form and context in which it appears. ASX: SKY 2 EXPERIENCED AND PROVEN MANAGEMENT NORMAN SECKOLD | Chairman RICHARD HILL | Non-Executive Director 30+ years in the full-time management of natural resource companies. Past Chairman and Director of listed companies including Bolnisi Gold NL, Timberline Minerals Inc., Perseverance Corporation Ltd, Valdora Minerals NL, Palmarejo Silver, Kings Minerals NL, Mogul Mining NL, Gold Corp and Santana Minerals Ltd. Currently Chairman of both Nickel Industries Ltd and Alpha HPA Ltd. 25+ years experience in the mineral resources sector as a geologist and solicitor. Mr. Hill has a successful track record of guiding ASX listed mining companies from the exploration and discovery phase through to development in a range of commodities. These have included past roles as founding Director for Aurelia Metals Ltd and as Chairman of Genesis Minerals Ltd as well as current Chairman of New World Resources Ltd and Accelerate Resources Ltd. CAPITAL STRUCTURE Shares on issue Options & Performance Rights Share price (28 Aug 2024) Market capitalisation Cash (30 June 2024) Debt 589.6M 49.9M ~$0.032 ~$18.9M ~$3.26M Nil RIMAS KAIRAITIS | Non-Executive Director OLIVER DAVIES | CEO BOARD & MANAGEMENT 25+ years experience in minerals exploration and resource development in gold, base metals and industrial minerals. In his most recent role, Mr. Kairaitis was founding Managing Director and CEO of Aurelia Metals (ASX: AMI), which he steered from a junior exploration company to a profitable NSW based gold and base metals producer. Mr. Kairaitis is also the Managing Director of Alpha HPA Limited. Geologist with SKY since listing in 2019. Previously in exploration and operational roles with Evolution Mining and Alkane Resources in NSW and Qld. Mr. Davies has worked closely on several successful NSW discoveries including Evolution Mining’s significant expansion of the Lake Cowal gold resource and Alkane’s exploration success at Tomingley and Boda. Norm Seckold Richard Hill Rimas Kairaitis Richard Willson Oliver Davies Chairman Non-Executive Director Non-Executive Director Company Secretary Chief Executive Officer EXPERT GUIDANCE | SKY’s Consultants SHAREHOLDERS Tallebung Environmental Mining Approvals: R.W. Corkery & Co. to advise on best practice for environmental studies and mining approvals process. Tallebung Metallurgy – Gunn Metallurgy, TOMRA Ore Sorting Solutions and ALS Burnie engaged to conduct metallurgical testwork. Tallebung Resource Estimation – H&SC modelled and estimated the MRE and Exploration Target. Aurelia Metals Board and Management Top 20 holders ASX: SKY 3.2% 9% 47.2% 3 Tin is vital within EVs, Renewable Energy, AI and all electronics. Tin Price Fundamental structural demand growth – Triggering supply crunch after 30+ year under investment. Increase in tin demand TIN: VITAL TECHNOLOGY METAL Source: BNEF, Rho Motion, Macquarie Strategy – April 2024 ASX: SKY 4 TIN: THE FORGOTTEN ELECTRIFICATION METAL – GLOBAL SUPPLY DISRUPTIONS Global Tin Supply by Country (tpa) • Inelastic tin price – driven by irreplaceable demand in electronics sector, AI and global electrification. • Heavily disrupted Indonesian tin production – previously 20% of global supply. • Tin mining suspended in Myanmar – previously 4th largest source globally and over 40% of concentrate supply to China. • Limited reliable and ethical sources. • Very few tin investment options on ASX Source: ITA Source: ITA ASX: SKY 5 MAJOR HISTORIC TIN OPERATION TALLEBUNG TIN PROJECT • Tin discovered in the 1890s and mined into the mid-1980s. • Small shafts and open pits mined hardrock tin veins, culminating in large scale alluvial mining production in the 1960s-70s. • Infrastructure already in place from previous mining includes: - Powerlines to site. - Excellent road access. Tallebung Tin Mine – Aerial Image of Historic Mining and Infrastructure. • Hard-rock tin source remains intact and largely unmined. • Large scale tin deposit now defined over 1.7km and still growing. ASX: SKY 6 EVOLVING HIGH-GRADE TIN DISCOVERY • New shallow, high-grade intercepts in TBRC078 and TBRC090 show potential for higher-grade tin outside of the current MRE, results included: 11m @ 1.02% Sn, 77.9g/t Ag & 0.13% W from 64m 10m @ 0.69% Sn & 23.7g/t Ag from 23m • Latest drilling targeted extending the southern high-grade intercept in TBRC078. • Results are pending for high-grade southern extension drilling. • Intercept in TBRC090 is very shallow and indicates significant potential for high-grade resource extension to be down dip, east of the existing MRE. • Results continue to demonstrate deposit remains open in all directions. New intercepts in TBRC078 and TBRC090 demonstrate potential discover more tin at higher-grades outside of the existing MRE. ASX: SKY 7 TALLEBUNG TIN PROJECT Tallebung Tin Mine – Drone Photo looking East down the Central Lead Open Pit. • Low-Cost Mining Proposition – Shallow deposit at surface, very low strip ratio and deposit grows with every new drillhole. • Exceptional Upgrade– Ore sorting ideally suited to the deposit and increases grade >5x, removing 80% of mined mass. • Low-Cost Processing – Simple gravity circuit for a saleable tin concentrate. • High Payability on Tin Concentrate – over 90% payability on a +60% tin concentrate. ASX: SKY 8 LARGE HISTORIC OPEN PIT ALLUVIAL MINING OPERATION Tallebung Tin Mining Field – Drone Photo looking North. ASX: SKY 9 GROWING LARGE HARDROCK TIN RESOURCE • Existing MRE updated Jan 2024, totalling: 15.6 Mt @ 0.15% Tin for 23kt of contained Tin. • Exploration Target estimated concurrently: 23 – 32 Mt @ 0.14 – 0.17% Tin • Tin mineralisation highly amenable to 5x upgrade using TOMRA Ore Sorting – 0.15% = +0.70% Tin. • 0.70% Tin equivalent to +2.7g/t Au or +2.1% Cu. • Recent high-grade expansion not included in the MRE or Exploration Target estimates. • Maiden Indicated MRE: 5.00 Mt @ 0.16% Tin for 7.93kt of contained Tin. Schematic Plan View - Tallebung Tin Mine Recent TOMRA ore sorting upgrade results in Orange. ASX: SKY 10 TOMRA– HIGH TECHNOLOGY CHANGES THE GAME Cassiterite from Tallebung – Scale in mm Dense tin – cassiterite “nuggets” detected by ore sorter and accepted • Tallebung tin deposit is ideally matched to ore sorting technology. Host rock and quartz vein without tin rejected by ore sorter • TOMRA Ore Sorting increases grade +500%. • Resource grade increases from 0.15% Tin x 5 = to over 0.70% Tin with +98% tin recovery. • +80% of mined mass rejected upfront. • Reduced mass means smaller, lower plant costs to produce a saleable tin concentrate. Schematic of a TOMRA XRT Ore Sorter Rejected Accepted ASX: SKY 11 TOMRA– HIGH TECHNOLOGY CHANGES THE GAME Video Courtesy of Carlos Crowley Vazquez, BOEq and TOMRA Ore Sorting Solutions ASX: SKY 12 SHALLOW, HIGHER-GRADE START UP • Shallow, at surface high-grade tin zone identified for fast payback potential at commencement of mining. • Results within the high-grade zone include: TBD002: 60.2m @ 0.54% Tin from 12.8m. TBD003: 60.55m @ 0.36% Tin from 23m. Schematic Cross-Section of Shallow High-Grade Zone Plan View Aerial Image of the Tallebung Project ASX: SKY 13 Tallebung Tin project LOW-RISK PATHWAY SET TO ADD VALUE QUICKLY ASX: SKY 14 BUILDING AUSTRALIA’S FUTURE TIN PRODUCTION ASX: SKY S K Y M E T A L S . C OM . A U