Big River Gold : Quarterly Activities Report

ASX RELEASE

29 April 2021

QUARTERLY ACTIVITIES REPORT - MARCH 2022

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• • Engineering Cost Estimate (ECE) updated cost results were announced.

  • o Total capital costs for the 2Mtpa Stage operation are estimated at US$174.0 million, including contingencies and estimating allowances of US$19.8 million.

  • o The Company updated its 2Mtpa Financial Model base case with the above results at a constant gold price of US$1,600/oz (versus the $1,550/oz used previously).

    • ▪ At US$1,600 per ounce the NPV8% is US$173 million with an IRR of 27.8% (post tax US$142 million and 25.0% respectively).

    • ▪ At US$1,800/oz gold price the after tax NPV is US$217 million with an IRR of 32.1%.

    • ▪ The All-In Sustaining Cost (AISC) is US$852 per ounce with payback around 2.7 years.

• • Following water management studies and initial internal modelling results, the decision was made to undertake a pre-feasibility study for a Project with a higher production rate design.

• • A diamond core resource extension drilling program continued through the quarter at Borborema Gold Project to target high grade Mineral Resource extensions outside current pit optimisations. By quarters end 5 holes had been completed.

• • Subsequent to the quarters end, the Company announced it had executed a Scheme Implementation Deed with Aura Minerals Inc. to purchase all shares in Big River for cash consideration of $0.36 per share. Big River's Independent Board Committee (IBC)

  recommended unanimously that shareholders vote in favour of the scheme.

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Big River Gold Limited (ASX:BRV) (Big River or the Company) is pleased to present the activities of the company during the March 2022 quarter.

Engineering Cost Estimate (ECE) and Expansion Studies

1. ECE update

Work on the Engineering Cost Estimate (ECE) was completed during the quarter and the results announced to the ASX on 1 April 2022.

The ECE update was conducted by internationally experienced and recognised engineering consultants, GR Engineering Services (GRES), with the purpose of updating the capital costs developed for the 2019 Definitive Feasibility Study as updated in 2020 and 2021 (DFS)1 while retaining the other fundamental assumptions including mine/plant scheduling, pit design, mining contractor equipment, process path and use of process water which was outlined in the DFS. Operating costs were updated by Big River's Owners

Team with assistance from independent consultants.

The updated DFS study reported to the ASX on 9 July 2020 was reviewed in 2021 to assess the most effective use of capital and the currency of the cost basis assumed. This was sufficiently encouraging to warrant

1 Refer (1) ASX announcement 23 December, 2019; (2) ASX announcement 9 July, 2020 and (3) ASX Announcement 30 March, 2021

completing the exercise with costs in the ECE updated for 2022 conditions. Most operational and economic assumptions remained the same as for the DFS and Option Study, with the material exceptions noted below.

The ECE update was delayed by difficulties in obtaining prices and quotes for equipment and services in the current environment which mixes the impact of a mining boom and COVID. As a result, the ECE accuracy level is lower than preferred at ±20% - 25%.

Results of the ECE update confirm a significant increase in the estimated plant and infrastructure cost from US$69.5 million to US$115.2 million (excluding owner's costs and contingency).

These cost increases are predominantly associated with supply chain issues, increases in the cost of equipment and services, upscaling project capacity and layout, and the addition of previously unpriced capital items with short payback benefits.

At the same time, owner's costs and pre-production expenses were updated by independent consultants Macromet and Mining Focus Consultants Pty Ltd (Mining Focus) with the new estimated total being US$29.9 million including a contingency of US$6.9 million, which differs from the total US$6.6 million adopted in the DFS.

GRES, Macromet and Mining Focus have consented to be named in this announcement and for the content of the ECE updates and studies to be extracted and summarised in this announcement.

Financial Summary

Total capital costs are now estimated at US$174.0 million, including contingencies and estimating allowances of US$19.8 million (refer to the ASX announcement of 1 April, 2022 for more detail).

The Company updated its 2Mtpa Financial Model base case with the above results at a constant gold price of US$1,600/oz (versus the $1,550/oz used previously).

• • At US$1,600 per ounce the NPV8% is US$173 million with an IRR of 27.8% (post tax US$142 million and 25.0% respectively).

• • At US$1,800/oz gold price the after tax NPV is US$217 million with an IRR of 32.1%.

• • The All-In Sustaining Cost (AISC) is US$852 per ounce with payback around 2.7 years.

The base case results, along with varying gold price scenarios for comparative purposes, reveal the following key metrics as summarised in Table 1.

2. Possible Expansion of Plant Size and progress to Pre-Feasibility Study

With the results of recent site water balance studies suggesting the easing of process water limitations, an investigation into higher throughput production rates was considered justified in addition to the Stage 1 update.

The results of the water studies for the 2 Mpta Project led to the Company exploring options for a Project with a larger annual throughput, which was originally the plan a number of years ago.

The Big River Board was encouraged by the initial internal modelling results and has commissioned GRES to undertake a PFS for a Project with a higher production rate design. The Company will update the market as and when the PFS has been delivered, noting that this work is scheduled for completion in the second quarter of 2022.

Figure 1. View to the

south west over the

Borborema pit

showing the exposed

ore zone and

infrastructure.

Resource extension drilling

A 13 hole (5,000m) Diamond Core drilling program continued at Borborema Gold Project aiming to confirm potential resource increases that can be included in assessing expanded mine planning options. Drilling is targeting Resource extensions outside current pit optimisations by drilling mineralisation both at depth and in high-grade plunging shoots.

By the end of the quarter 5 holes had been completed in the program for 1,572 metres. 1,276 metres were drilled in the March quarter (refer Figures 3 and 4). The first assay results for hole CRDD-0174 were received late in the quarter and are being checked before release.

CRDD-178 CRDD-177

CRDD-176

CRDD-174

CRDD-175

Figure 3 - Diamond drilling collar locations, Borborema Gold Project

Proposed Acquisition of Big River Gold by Aura Minerals

On 19 April, 2022, the Company announced a cash offer by Aura Minerals Inc (TSX:ORA) to acquire all the shares of Big River Gold for A$0.36 per share. The reader is referred to the announcement which provides full details of the offer and the Scheme Implementation Deed entered into between Big River Gold and Aura Minerals.

A summary of the proposal is provided below.

• • The Scheme Implementation Deed entered into between Big River Gold Limited (ASX: BRV) ("Big River") and Aura Minerals Inc. (TSX: ORA, B3: AURA33) ("Aura") is for a recommended all-cash offer to privatise Big River.

• • Big River shareholders are being offered A$0.36 in cash per share, representing a premium of 33.3% to today's closing price of A$0.27 per share and premiums of:

  • o 30.0% to the 30 trading day VWAP of A$0.277 per share;

  • o 42.3% to the 60 trading day VWAP of A$0.253 per share; and

  • o 44.0% to the 90 trading day VWAP of A$0.250 per share.

• • The Scheme Consideration values Big River's diluted equity at approximately A$91.7 million2.

• • The Independent Board Committee ("IBC") of Big River unanimously recommended that Big River shareholders vote in favour of the Scheme, in the absence of a superior proposal and subject to an

  Independent Expert concluding that the Scheme is in the best interests of Big River's shareholders.

  Each Big River director intends to vote all of the Big River shares they hold or otherwise control in favour of the proposed Scheme, subject to the voting qualifications above.

2 Based on Big River's capital structure at the date of this announcement, being 220,365,515 fully paid ordinary shares, 12,607,500 performance rights and assuming 21,732,335 listed options which expire on 30 June 2022 are all exercised into Big River ordinary shares prior to expiry and excludes 3,060,000 unquoted options which will be acquired by Aura outside of the Scheme.

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