Announcement PDF ASX: SKY ASX ANNOUNCEMENT 10 August 2026 SKY METALS LIMITED +61 2 6360 1587 2 HAWTHORN PLACE, ORANGE NSW 2800 WWW.SKYMETALS.COM.AU ABN 46 098 952 035 PFS CONFIRMS TALLEBUNG AS A LOW-COST, HIGH-MARGIN TIN-TUNGSTEN-SILVER PROJECT STRONG CASHFLOWS, RAPID CAPITAL PAYBACK AND SIGNIFICANT EXPOSURE TO TIN, TUNGSTEN AND SILVER SUPPORT ACCELERATED DEVELOPMENT OF MAJOR NEW CRITICAL METALS PROJECT • Pre-Feasibility Study (PFS) confirms Tallebung as a technically robust and economically attractive, near-term critical metals development opportunity. • PFS based on a single, low strip 3Mtpa open-cut mining project, producing an average of 2,040t of tin, 31,700mtu of tungsten trioxide and 315koz of silver per year over an initial 7.3- year mine life, with only 66% of the global Mineral Resource Estimate included. • PFS mine life constrained by current Measured and Indicated (M&I) Resources, with potential to extend mine life significantly by upgrading existing Inferred Resources to M&I category – drilling has already restarted to upgrade Resources and extend life-of-mine. • Compelling base case economics using US$45,000/t Sn, US$1,500/mtu WO3 & US$50g/t Ag1 :  Pre-tax IRR of 69%  Life-of-mine average annual EBITDA of more than A$115 million  Pre-tax NPV8% of approximately A$438 million for the initial 7.3-year mine life  Capital payback in less than 17 months  All-in sustaining cost (AISC) of US$5,653/t tin produced (net of co-products) • Spot commodity prices materially enhance project economics – using spot prices of US$56,450/t Sn, US$3,075/mtu WO3 & US$61.9/oz Ag2 delivers:  Pre-tax IRR of 130%  Life-of-mine average annual EBITDA of more than A$221 million  Pre-tax NPV8% of approximately A$1.0 billion for the initial 7.3 year mine life  Capital payback in less than 9 months  AISC of negative (-) US$18,935/t tin produced (net of co-products) • Low pre-production capital requirement of A$138.8 million, comprising A$113.44 million for the processing plant and A$26.33 million for site and mine establishment, exclusive of contingency. • Funding discussions advancing with strategic offtake, royalty, streaming and financing groups pursuing exposure to tin, tungsten and silver supply from a stable mining jurisdiction. • Approvals progressing, targeting mining approval in late 2027 and first production in mid-2028. 2 • SKY held A$17.6 million cash as at 30 June 2026, providing a strong funding position to advance Tallebung towards a Final Investment Decision (FID) next year. SKY Managing Director & CEO Oliver Davies commented: “The completion of the Tallebung PFS is a significant milestone for SKY, clearly demonstrating that Tallebung has the potential to become a simple, high-margin, low- cost Australian producer of tin, tungsten and silver. The study outlines a project with exceptional project economics, rapid capital payback, modest upfront capital requirements and strong cash generation. “Importantly, we see outstanding potential to further enhance the outcomes of the PFS, with only 66% of the current global Mineral Resource base at Tallebung currently included in the PFS mine plan. Drilling is now underway to upgrade the +11Mt of Inferred Resources not included in this study for inclusion in ongoing optimisation studies, as well as to expand the Resource beyond the existing envelope. “Tallebung is not only a compelling economic opportunity, but also a strategically significant project. With tin and tungsten continuing to face supply constraints, Tallebung has the potential to become an important new source of reliable supply from a stable mining jurisdiction. We believe this positions the Project strongly as manufacturers, refiners and governments seek to lock-in secure future supply chains for these increasingly critical commodities. "With this first PFS now complete, our focus shifts to project extension, optimisation, completing environmental approvals, and progressing financing and offtake discussions. These workstreams are designed to position Tallebung for a Final Investment Decision during 2027, targeting first production in mid-2028.” Figure 1: Conceptual overview of Tallebung infrastructure layout. 3 1 Base Case price assumptions have been calculated from the average price for tin and tungsten over the preceding year (5 August 2025 – 5 August 2026), with supply disruption and strong demand driving higher prices for both and all base case prices representing a significant discount to current spot pricing2 . 2 Spot Pricing as at 6 August 2026 – Sn US$56,450/t, WO3 US$3,075/mtu & Ag US$61.9/oz as available from LME, Fastmarkets & CMX, respectively. This announcement is authorised for release by the Board of Sky Metals Limited. Cautionary Statement The Pre-Feasibility Study (“PFS” or “Study”) referred to in this announcement has been undertaken by Sky Metals Limited (SKY or the Company) in conjunction with various independent consultants, to determine the viability of a standalone development including open pit mining and processing at the Tallebung Project in New South Wales (Project or the Tallebung Project). The total Life-of-Mine Production Target and forecast financial information derived from the Production Target referred to in this announcement is underpinned by approximately 66% Measured and Indicated Mineral Resources and 34% Inferred Mineral Resources. There is a low level of geological confidence associated with Inferred Mineral Resources and there is no certainty that further exploration work will result in the determination of Indicated Mineral Resources or that the Production Target itself (or the forecast financial information) will be realised. SKY has already commenced works on the Inferred Mineral Resources with the aim to convert these to Measured and Indicated Mineral Resources. The proportion of Inferred Mineral Resources underpinning the Life of Mine Production Target is not the determining factor in project viability. The Inferred Mineral Resources do not feature as a significant proportion early in the mine plan and the payback period for the Tallebung Project is less than 17 months in both cases presented from this study (i.e. base case and spot commodity price assumptions). The Company confirms that the Mineral Resources estimates have been prepared by Competent Persons in accordance with the requirements of the JORC Code. This announcement has been prepared in compliance with the JORC Code 2012 Edition (JORC 2012) and the ASX Listing Rules. All material assumptions on which Life of Mine Production Target and the forecast financial information is based have been provided in this announcement. While the Company considers all the material assumptions to be based on reasonable grounds, there is no certainty that they will prove to be correct or that the production target or estimated outcomes indicated by the PFS (such as the financial forecasts) will be achieved. The production target and estimated outcomes indicated by the PFS (such as the financial forecasts) are also subject to various risk factors. See the Disclaimer Statement at the end of this announcement. Given the uncertainties involved and detailed in this announcement, investors should not make any investment decision based solely on the results of the PFS. 4 Investors: Oliver Davies – Managing Director & CEO +61 (0) 430 359 547 Media: Nicholas Read – Read Corporate +61 (0) 419 929 046 JOIN SKY METALS’ INTERACTIVE INVESTOR HUB Visit skymetals.com.au to interact with Sky Metals’ announcements and updates To watch a video summary of this announcement & engage with SKY click here 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 and director 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. Previously Reported Information The information in this report that references previously reported exploration results is extracted from the Company’s ASX market announcements released on the date noted in the body of the text where that reference appears. The previous market announcements are available to view on the Company's website or on the ASX website (www.asx.com.au). The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcements. The Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcements. Disclaimer This report contains certain forward-looking statements and forecasts, including possible or assumed reserves and resources, production levels and rates, costs, prices, future performance or potential growth of Sky Metals Ltd, industry growth or other trend projections. Such statements are not a guarantee of future performance and involve unknown risks and uncertainties, as well as other factors which are beyond the control of Sky Metals Ltd. Actual results and developments may differ materially from those expressed or implied by these forward-looking statements depending on a variety of factors. Nothing in this report should be construed as either an offer to sell or a solicitation of an offer to buy or sell securities. This document has been prepared in accordance with the requirements of Australian securities laws, which may differ from the requirements of United States and other country securities laws. Unless otherwise indicated, all ore reserve and mineral resource estimates included or incorporated by reference in this document have been, and will be, prepared in accordance with the JORC classification system of the Australasian Institute of Mining, and Metallurgy and Australian Institute of Geoscientists. TALLEBUNG PROJECT Pre-Feasibility Study Executive Summary Prepared by SKY Metals Ltd August 2026 Sky Metals Tallebung PFS Page | ii Project Summary TABLE OF CONTENTS, FIGURES AND TABLES Table of Contents Table of contents, figures and tables ...........................................................................ii 1 Project Overview and Strategic Context............................................................... 1 1.1 Location, Tenure and Ownership.................................................................. 1 1.2 History and Development to Date ................................................................ 2 1.3 Study Team................................................................................................. 3 1.4 Strategic Commodity Position...................................................................... 5 2 Geology and Mineral Resources.......................................................................... 6 2.1 Geological Setting and Mineralisation .......................................................... 6 2.2 Mineral Resource Estimate.......................................................................... 7 3 Mining and Ore Reserves .................................................................................... 8 3.1 Pit Optimisation and Mine Design ................................................................ 8 3.2 Life-of-Mine Production Schedule...............................................................10 3.3 Ore Reserve Status.....................................................................................12 4 Metallurgy and Process Plant.............................................................................12 4.1 Process Flowsheet .....................................................................................12 4.2 Metallurgical Recovery Basis ......................................................................14 4.3 Process Plant Capital Cost .........................................................................15 5 Site Infrastructure, MINING, Waste Management and Tailings..............................16 5.1 Site Infrastructure ......................................................................................16 5.2 Mining Approach........................................................................................18 5.3 Waste Management and Tailings Storage.....................................................20 6 Environment, Permitting and Closure.................................................................21 6.1 Approvals Pathway and Status....................................................................21 6.2 Environmental Risk and Closure .................................................................22 7 Capital and Operating Costs..............................................................................22 7.1 Capital Cost Summary ...............................................................................22 7.2 Operating Cost Summary ...........................................................................23 8 Concentrate Marketing and Logistics .................................................................24 8.1 Product and Market Overview .....................................................................24 8.2 Commercial Terms and Logistics ................................................................24 Sky Metals Tallebung PFS Page | iii Project Summary 9 Financial Evaluation..........................................................................................25 9.1 Financial Model .........................................................................................25 9.2 pricing and Discount rate assumptions .......................................................26 10 Project Delivery Strategy ................................................................................28 10.1 Project Funding..........................................................................................29 11 Project Risk ...................................................................................................31 12 Path Toward Future production.......................................................................33 13 Conclusions and recommendations...............................................................34 Figure 1 -Tallebung Project location, central-western New South Wales ....................... 1 Figure 2: Aerial photograph of the Tallebung Historical Mining and Infrastructure.......... 2 Figure 3 Examples of Coarse tin-tungsten mineralisation at Tallebung.......................... 7 Figure 4 - Run 1 Nested Whittle pit shells, plan view.................................................... 9 Figure 5 - Run 1 - Long section looking west, showing Shell 38 and the multiple individual pit lobes along the 2.5 km mineralised strike. .............................................10 Figure 6 - Annual mill feed and total material movement ............................................10 Figure 7 - Annual payable tin, silver and tungsten output ............................................11 Figure 8 - Annual production Resource tonnes as Measured, Indicated and Inferred....11 Figure 9 - Tallebung Process Plant Block Flow Diagram...............................................13 Figure 10 - PFS controlling tin recovery equation........................................................14 Figure 11 - Processing Plant layout ............................................................................16 Figure 12 - Site layout showing key infrastructure.......................................................17 Figure 13 - isometric view of the staged pit design......................................................19 Figure 14 - Schematic showing location of Waste Rock Emplacements (WRE).............20 Figure 15 - Pre-production capital by category ...........................................................23 Figure 16 - Project sensitivities effect on base case NPV ............................................27 Figure 17 - Project sensitivities effect on base case IRR..............................................28 Figure 18 - Project risk profile by rating and type, pre and post controls.......................32 Table 1 - Tallebung PFS study team and principal deliverables ..................................... 3 Table 2 - Key PFS parameters and assumptions .......................................................... 5 Table 3 - July 2026 Mineral Resource Estimate (MRE)................................................... 7 Table 4 - Net Smelter Return (NSR) Price and Recovery Factors ................................... 8 Table 5 - Pit Optimisation summary, selected shells.................................................... 9 Table 5 - Recommended PFS product, recovery and payability basis...........................15 Table 6: PFS site infrastructure capital cost summary ................................................17 Table 7 - proposed contractor mining fleet.................................................................20 Sky Metals Tallebung PFS Page | iv Project Summary Table 8 - Indicative statutory approvals timeline.........................................................21 Table 9 - Conceptual closure cost estimate, NSW Rehabilitation Cost Estimation Tool 22 Table 10- Capital cost estimate summary..................................................................23 Table 11 - LOM operating costs .................................................................................23 Table 12 - Product, recovery and indicative marketing basis .......................................25 Table 13 - Tallebung PFS key financial outcomes........................................................25 Table 14 - Three-scenario metal price framework.......................................................26 Table 15 - Tin Price Sensitivity ...................................................................................27 Table 16 - Tungsten Price Sensitivity ..........................................................................27 Table 17 - Silver Price Sensitivity ...............................................................................28 Table 18 - Discount Rate sensitivity ...........................................................................28 Table 19 - Proposed execution works packages (GHD Delivery Execution Strategy)......29 Table 20 - High-rated project risks and management controls.....................................32 Table 21 - Priority forward work items for the DFS programme ....................................33 Sky Metals Tallebung PFS Page | 1 Project Summary 1 PROJECT OVERVIEW AND STRATEGIC CONTEXT 1.1 LOCATION, TENURE AND OWNERSHIP The Tallebung Tin, Tungsten and Silver Project is located approximately 70 km north-west of Condobolin in central-western New South Wales, within the Cobar Shire Council local government area, with site access traversing the Lachlan Shire. The Project lies entirely within Exploration Licence EL6699 (granted 10 January 2007, expiring 10 January 2027), held by Stannum Pty Ltd, a wholly owned subsidiary of Sky Metals Limited (ASX: SKY), which holds 100% ownership. Figure 1 -Tallebung Project location, central-western New South Wales Sky Metals Tallebung PFS Page | 2 Project Summary 1.2 HISTORY AND DEVELOPMENT TO DATE Tin was first discovered at Tallebung in the 1890s and worked intermittently exploiting shallow high-grade tin lodes at surface from small open pits and shallow underground working. From the 1960s, large-scale alluvial and colluvial open-cut mining was undertaken, producing an estimated combined 3,350 tonnes of tin concentrate before mining ceased in 1984. Sky Metals acquired the tenement in 2019 (via the acquisition of Big Sky Pty Ltd, having previously acquired the project from Aurelia Metals Ltd) and has since conducted systematic exploration targeting the bulk-tonnage hard rock mineralisation underlying the historic workings. Figure 2: Aerial photograph of the Tallebung Historical Mining and Infrastructure The drillhole count has grown from 82 holes underpinning a maiden Inferred resource of 10.2 Mt at 0.18% Sn in March 2023, to more than 500 holes by July 2026, the drilling density on which this PFS is based. Environmental and approvals work has progressed alongside the technical program allowing the commencement of the NSW State Significant Development process for the Project commencing with submission of the Scoping Report in April 2026, quickly followed by the Planning Secretary's Environmental Assessment Requirements (SEARs) issued on 28 May 2026 under application SSD-120153740. Sky Metals is targeting lodgement of the Environmental Impact Statement (EIS) and Development Application by May 2027. Sky Metals Tallebung PFS Page | 3 Project Summary 1.3 STUDY TEAM SKY Metals engaged multiple independent specialist consultants to complete the technical work programs required to advance the Project to PFS level. The PFS study team, their areas of responsibility, and their principal deliverables are set out in Table 2-1. All technical work has been managed by SKY Metals, with overall PFS management and coordination led by the SKY Metals executive and technical team. Table 1 - Tallebung PFS study team and principal deliverables Consultant / Organisation Discipline Principal Deliverable(s) SKY Metals Limited Project Management / Owner’s Team PFS management, coordination, financial modelling, marketing inputs, ASX reporting and JORC compliance oversight Stannum Pty Ltd Proponent / Project Owner Crown Land and tenure management, regulatory interface, approvals strategy Resolve Mining Solutions Mining and Geotechnical Engineering Open pit geotechnical gap analysis and slope design parameters; preliminary pit shell design AMDAD – Australian Mine Design and Development Mine Optimisation and Scheduling Pit optimisation (Whittle Enterprise / Milawa), LOM production schedule, Balanced and NPV mode schedules Mineral Technologies Pty Ltd Process Engineering Process flowsheet design, TOMRA XRT ore sorting integration, gravity concentration circuit design, process plant CAPEX and OPEX Okane Consultants Geochemistry / AMD Geochemical characterisation assessment (214 samples); acid mine drainage assessment and management framework; kinetic leach column test program AARC Environmental Solutions Environment and Planning SEARs Scoping Report; environmental baseline studies; Sky Metals Tallebung PFS Page | 4 Project Summary Consultant / Organisation Discipline Principal Deliverable(s) stakeholder and agency engagement; EIS preparation program AREA Environmental & Heritage Consultants Biodiversity Preliminary Biodiversity Assessment Report (2024); plant community type mapping and threatened species likelihood assessment HLA- Envirosciences Contaminated Land / Heritage Legacy mine site environmental assessment and remediation action plan (2002 baseline); non-Aboriginal heritage survey GHD Infrastructure / Civil Engineering Site layout, access road design, water supply engineering, site services Essential Power Systems Power Supply / Options Study Power supply assessment and recommendations The Ground Doctor Hydrogeology / Water Resources Groundwater model, water balance, borefield assessment, Lachlan River abstraction feasibility, water licensing pathway ICA Partners Financial Modelling / Economic Analysis LOM financial model, NPV and IRR analysis, sensitivity analysis and financial evaluation AMDAD – Australian Mine Design and Development Mining Engineering / JORC PFS mine schedule, production-target review and future Ore Reserve work programme Chris De-Vitry Manna Hill Geoconsulting Resource Geology / JORC Updated JORC 2012 Mineral Resource Estimate and Compliance Statement (July 2026) Risk & Opportunity Management Solutions Project Risk Project Risk Workshop, Project Risk Register Sky Metals Tallebung PFS Page | 5 Project Summary Consultant / Organisation Discipline Principal Deliverable(s) Optifroth Solutions Pty Ltd PFS Writer / Coordinator PFS documentation and coordination 1.4 STRATEGIC COMMODITY POSITION Tallebung targets three commodities recognised as critical or high-tech minerals by the Australian and/or NSW Governments (tin, tungsten and silver), co-hosted within a single quartz-vein stockwork system. Tin is designated a Strategic Material by the Australian Government, with irreplaceable global demand driven by tin’s use in solder for electronics holding all electronics together as well as in photovoltaic interconnection and used increasingly in new photovoltaic cells to harden the glass to make it more corrosion resistance while also crucial as the critical element in new Perovskite cells which are being added to new solar cells to increase efficiency by up to 20%. Global supply is located in a few key and some very unstable jurisdictions (such as DRC, Indonesia, Myanmar, China, Peru, Bolivia) with large global supply disruptions having occurred over the preceding years resulting in tin price spikes. Supply is structurally tight, with few new permitted tin projects being developed and surging demand for tin in evolving applications such as data centres the increase demand is pressuring tin supply and resulting in the accelerating increase of the tin price. Tungsten is designated as a Critical Mineral by both the NSW and Australian governments and it’s market position has shifted materially in 2026. China controlled approximately 82% of global primary production. In February 2025 export restrictions have driven Western APT (ammonium paratungstate) prices to over 600% increases. At the same time the United States NDAA has mandated non-Chinese sourcing for all defence procurement from 1 January 2027. Similar to tin, tungsten is facing increasing and irreplaceable demand in many applications with very few new supply sources being available and resulting in further strengthening of the tin and tungsten prices. Silver is designated one of the NSW Governments five priority Critical Mineral’s, valued for its role in solar photovoltaic cells and electronics. This strategic co-location of these elements, combined with more than a century of legacy infrastructure at Tallebung, underpins the Project's positioning as a near-term, comparatively low-capital-intensity critical minerals development. Table 2 - Key PFS parameters and assumptions Parameter Basis / Assumption Study level Pre-Feasibility Study (PFS) targeting ± 25- 30% cost accuracy Location ~70 km NW of Condobolin, Cobar Shire, central-western NSW Tenure EL6699 - 100% Sky Metals Limited (via Stannum Pty Ltd) Sky Metals Tallebung PFS Page | 6 Project Summary Parameter Basis / Assumption SSD application SSD-120153740 - Prepare EIS stage; SEARs issued 28 May 2026; EIS/DA targeted by 28 May 2027 Primary commodity Tin (Sn), open-pit hard rock mining Co-products Tungsten (WO3) and silver (Ag) Mining method Open-pit, conventional truck-and-shovel Processing route Crushing + XRT ore sorting (TOMRA) & Jigging pre-concentration + gravity concentration Mill throughput 3.0 Mtpa ROM ore Operational mine life Approximately 7.25 years LOM ore processed / material mined 21,476 Mt / 64,205 Mt at a 1.99:1 strip ratio Study currency / accuracy Australian dollars (A$); AACE Class 4 (± 25-30%) Next study stage Definitive Feasibility Study (DFS) 2 GEOLOGY AND MINERAL RESOURCES 2.1 GEOLOGICAL SETTING AND MINERALISATION The Tallebung deposit lies within the Girilambone-Wagga Anticlinorial Zone of the Lachlan Fold Belt, hosted in weakly metamorphosed Ordovician deep-marine sediments (shale, siltstone, carbonaceous mudstone and minor quartz-rich sandstone) deformed into tight, subvertical isoclinal folds striking approximately 330°. The probable fluid and metal source is the Silurian Erimeran Granite. Tin occurs as cassiterite (commonly coarse, 5-10 mm nuggets) within a quartz-sulphide stockwork zone approximately 1.6-2.5 km long, open along strike. Later northeast and east trending faults, which displace mineralisation, have been mapped within the orebody. Tungsten and Silver also present ubiquitously as ‘nuggety’ minerals allowing similarly simple processing along with the cassiterite-hosted tin at Tallebung. Tungsten is hosted in coarse scheelite and wolframite ‘slugs up to 50mm in length. Silver is hosted in coarse (up to 0.5mm wide) silver-halide crystals in the oxide zone and present as late-stage silver sulphides in the fresh rock. As all three commodities of interest are in coarse minerals processing is possible via simple gravity concentration before separating into separate saleable streams. Increasing drilling density and effective domaining combined with improved estimation methodology discussed below has shown the deposit to be well estimated despite the ‘nuggety’, structurally complex mineralisation style. Sky Metals Tallebung PFS Page | 7 Project Summary Figure 3 Examples of Coarse tin-tungsten mineralisation at Tallebung NOTE: LHS: Approx. 225m DH in drill-hole TBD005 showing coarse cassiterite tin mineralisation. Centre: Drillcore from 29.3-32.4m DH in drill-hole TBD006 - strong quartz- cassiterite veining. Centre RHS: Veining from 30.8m DH with coarse cassiterite and scheelite. Drill core is PQ - 83mm wide. RHS: Tungsten-host mineral scheelite exhibiting bright blue fluorescence under ultraviolet light within quartz + pyrrhotite + sphalerite vein breccia, Drill- hole TBD001, 512.2m 2.2 MINERAL RESOURCE ESTIMATE The Project is underpinned by the July 2026 JORC 2012 Mineral Resource Estimate prepared by Manna Hill Geoconsulting (MHGEO). The estimate comprises 32.7 Mt at 0.16% tin equivalent (0.11% Sn, 0.0