Bellevue Gold : Project Production, De-risking and Growth Update-update

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Bellevue locks in costs and increases Reserves, cementing its future as a leading Australian gold producer

Pre-production costs on track to meet previous forecasts, with more than 90% of capital expenses now committed or fixed in tenders; Reserves rise 29% to 1.34Moz, underpinning 10-year mine life

KEY POINTS

• Bellevue takes key steps on path to successful project execution, significantly de-risking the cost, production and cashflow outlook
• Probable Reserves increase 29% to 6.8Mt @ 6.1g/t gold for 1.34Moz of contained gold. This is an increase of ~300,000 ounces from the Stage Two Feasibility Study (FS2) Reserve statement (refer to ASX announcement dated 2 September 2021)
• The life-of-mine (LOM) Project LOM inventory has increased to 1.85Moz, underpinning an increase in mine life to 10 years
• The Reserve has been independently verified by leading mining consultant Entech; Reserves were calculated at a conservative gold price of A$1,750/oz
• Scope for cost escalation has significantly reduced, with more than 90% of the pre-production project capital committed and tier-1 contractors appointed:

1. Develop Global Limited (ASX: DVP) appointed mining contractor; Mining has commenced

• 1. GR Engineering Services Limited (ASX: GNG) appointed to conduct early works; Long-lead and critical path items ordered
• Production in the first five years is forecast to average 200,000oz pa at a bottom-quartileall-in sustaining cost (AISC) of A$1,000-1,100/oz

The total LOM production includes 27.6% Inferred Resources ounces, and the remaining 72.4% is underpinned by Probable Ore Reserves. 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 will be realised.

• Project set to generate average LOM free cash flow of $231 million per annum (pre-tax) for first 10 years at a gold price of A$2,500/oz; Internal rate of return of 68% (pre-tax)
• The project pre-production capital requirement remains fully funded with Bellevue's existing liquidity of $351 million (as at 31 March 2022) including the undrawn $200 million Macquarie debt facility

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• Preliminary guidance for the first 12 months of commercial production is 180,000-200,0001 ounces at an AISC of A$1,000-$1,100/oz; Commercial production is forecast for second half of 2023
• Project forecast to be the lowest carbon emitter per ounce of ASX-listed gold producers with a forecast range of 0.15 to 0.20 t CO2e per ounce
• Substantial scope for organic growth, with Bellevue processing plant being designed to accommodate future increases in throughput above the initial 1Mtpa nameplate capacity
• Resource conversion drilling has the potential to upgrade the 1.3Moz (40% of Global Resource) that currently sits outside the 1.8Moz mine plan; Deposit remains open in every direction
• Underground development continues to advance well with the underground mining contractor Develop commencing work at the project. Project is 62% through the development timeline that commenced in July 2020. The first development ore from the Armand heading is expected during the coming quarter

Bellevue Gold Limited (ASX: BGL) (Bellevue or Company) is pleased to report that development of its Bellevue Gold Project (Project) in WA is proceeding comfortably in line with all its key financial and technical forecasts, putting it firmly on track to be a leading 200,000oz1 a year gold producer by the second half of next year.

Pre-production costs are set to meet previous forecasts with more than 90% of these expenses either committed or locked in via tenders.

The Project is set to boast some of the lowest operating costs among ASX-listed gold producers, with AISC forecast to be in the range of A$1,000-A$1,100/oz over the first five years.

Bellevue's outlook has also been further strengthened by a 29% increase in Reserves to 1.34Moz at 6.1g/t gold, underpinning a 10-year mine life.

Bellevue Managing Director Steve Parsons said: "We are rapidly executing the Project in line with all the key forecasts contained in our extensive financial and technical analysis.

"This extensive work program, which has included leading independent experts, show the Bellevue Project will be a 200,000oz a year producer with low operating costs and strong cashflow generation in the tier-one location of WA.

"By locking in 90% of our pre-production costs and underpinning our 10-year mine life with 1.34Moz in Reserves, we have significantly de-risked the Project and put us on a path to realising the immense value of this exceptional asset".

De-risked Project Delivery

The Company is pleased to provide an update on progress at its Bellevue Gold Project as it continues to de-risk the Project ahead of first gold production while laying the platform for further organic growth. The Project is currently 62% through the underground development timeframe since commencement in July 2020.

More than 90% of the pre-production expenditure is now insulated from any potential cost escalation with either fully awarded contracts or the receipt of tendered pricing. All awarded contracts and tenders have been incorporated into the updated Project model and the upgraded Reserve estimate.

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The following key milestones have been reached in the delivery of the Project:

• Award of the underground mining contract to a wholly owned subsidiary of Develop Global Ltd with work under that contract recently commencing on site. A total of 4.8km of the planned 14km of pre-production development has been completed to date, with mining costs locked in for the remainder of the pre-production period. Underground mining continues to experience excellent development rates supported by robust geotechnical conditions.
• First development ore from the northern decline is expected in the September 2022 quarter, with only 70m of further development required before the first high-grade ore is encountered at the Armand lode.
• More than 53% of the camp construction is completed. The remaining camp construction is expected to be completed in the September 2022 quarter.
• Award of the early works EPC contract to GR Engineering Services Limited, allowing the capital required for the key plant components to be fixed. Long lead items including the ball mill, crushing equipment, screens, agitators and leach and tailings thickeners have been or are in the process of being ordered. The full EPC contract is well advanced and anticipated to be signed in coming weeks.
• Tenders for the power purchase agreement (PPA) and bulk civil earthworks have been received and the Company is currently working towards awarding these contracts.
• Grade control drilling has been completed over the shallow resource areas at Tribune and further drilling targeting the remaining early mine life areas will be ongoing from underground to 20m x 10m centres during the remainder of the pre-production period.
• Approvals for full project execution are well advanced with completed permits in place for camp construction and underground development. Remaining required approvals to deliver the processing facility and remaining infrastructure are on track for the September 2022 quarter.
• The Project remains fully funded to production with existing cash reserves of $151 million (as at 31 March 2022) and the undrawn $200 million Macquarie debt facility. First drawdown of the debt finance facility is expected in the first half of FY23. The Company has a number of customary conditions precedent to be satisfied before first draw down.

Figure 1: Project development timeline to gold production at the Bellevue Gold Project; pathway to production.

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Platform for Organic Growth

The Project Reserve has been optimised based on the recent Resource upgrade to 3.1Moz @ 9.9g/t gold including 1.7Moz

• 11.2g/t gold of Indicated Resources (see ASX announcement dated 4 May 2022 titled "Resource Update") and the inclusion of the awarded contracts and received tenders. Further optimisations to the mine design and Project since FS2 have also been included and summarised in the modifying factors. The optimised Project sets a platform for future growth in the production profile.

Key outcomes of the update include:

• Project Reserves have increased at a CAGR of 40% to 6.8mt @ 6.1g/t gold for 1.34Moz and the Project LOM has increased to 10 years and 9.9Mt @ 5.8g/t gold for 1.85Moz. Reserves have been estimated at a A$1,750/oz gold price. Economic outputs have been calculated using a A$2,500/oz gold price.
• Pre-productioncapital costs have not materially changed since FS2 with any escalation in costs offset by design optimisation works.
• First gold production is forecast for the first half of FY23. During the first 12 months of commercial production, the Project is forecast to produce between 180,000 to 200,000 ounces2 at an AISC of A$1,000-$1,100 per ounce.
• Production for the first five years of mine life is forecast to average 200,000 ounces2 at an AISC of A$1,000-$1,100 per ounce. The company expects pre-tax free cashflow to average $254 million annually for the first five years of production.
• Total pre-tax free cashflow of $2.1 billion is forecast over the 10 year LOM based on the 1.85Moz inventory.

Table 1: Bellevue Gold Project optimised project outputs from the design nameplate 1.0mtpa processing facility

• The mine schedule and economic outputs are based on the nameplate plant design throughput of 1.0Mtpa. As part of the recent design work the Company has upgraded the plant crushing circuit to debottleneck the plant design resulting in enhanced utilisation of the front end circuit. Internal modelling completed by Bellevue indicates that the plant, which will commence construction in second half of 2022, will be capable of processing 1.2Mtpa with no further modifications.
• The Project benefits from multiple working areas which can be accessed from the two main declines to the Northern and Southern production centres. This provides for significant flexibility in production areas and allows for the mine to be able to increase output to fill any headroom above the nameplate 1.0Mtpa design.

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• The plant has been designed to be expandable up to 1.5Mtpa throughput with additional capital requirements. This creates the opportunity for further organic growth at the Project supported by ongoing resource growth.
• Step out and infill Resource growth drilling is continuing on site targeting further high-grade mineralisation at Deacon ahead of production. Further growth will result in a further increase to the LOM inventory and support a future increase in plant throughput.

Figure 2: Long Section looking east showing the current 1.34Moz Project Reserve in yellow and showing the areas of the FS2 Reserve (1.04Moz) in light red and the Feasibility Study 1 Reserve (0.69Moz) in dark red. The outline of the updated 3.1Moz Global Resource is shown in grey highlights the potential for further Reserve growth. The 1.34Moz Reserve development design is shown over the top in blue. Already completed development is shown in red.

Figure 3: Forecast LOM production profile based on the nameplate 1.0mtpa processing facility