Elmore Ltd. to provide an update on the development of the Peko magnetite, copper, cobalt, gold and bismuth project in the Northern Territory. Elmore has executed agreements to purchase the Peko Project in the Northern Territory, plus all of the Companies related to the project held by the existing owners. The binding purchase agreements has now been finalised, subject to Shareholder and any relevant Government Approvals and standard share transfer administration that is normal in such transactions.

Vendor Finance has been provided, ensuring that the purchase is not subject to finance and that the deal metrics can be set now, rather than change with a variable balance sheet of the operations as they ramp up. The Vendor Finance Facility allows the Company ample time to both refinance the facility utilising a longer-term debt instrument, plus reduce the facility utilising project cash-flows. In mid-2021, when ICAs retiring shareholders (Peko Gold Lending) took control of the Peko project, Elmore was asked to manage the construction and day to day operations of the project under a duly executed Management Agreement.

Elmore has since completed the construction and commissioning of the Stage 1 Magnetite Recovery Plant and is now producing magnetite product with regularly deliveries, via train, to the Port of Darwin. Peko Gold Lending's shareholders focus primarily on funding conventional property construction projects and do not have a history of funding mining, minerals processing or exploration projects. The funding provided to ICA was considered a Special Situations facility, not business as usual.

Now that the project has been constructed and production has commenced, Peko Gold Lending's shareholders have decided to take the opportunity to exit the project and return their focus to their normal business. The sale timing allows for a reasonable rate of return to Peko Gold Lending, plus significant potential returns to Elmore, thus satisfying both parties. Purchase Price and Arrangements - The key points of the new contract are: $30 million purchase price; and Elmore to guarantee the performance a pre-existing royalty agreement between the ICA group and ICAs retiring shareholders so that they will receive a total of 20,000 ounces of gold at the higher of 900 ounces per quarter, or 25% of production from commencement of production, which must occur within 3 years.

Vendor financing package: 12-month term; Initial interest rate of 2.5% pa for 3 months (Initial Rate); and Rate increased to 17.5%pa for the next 3 months (Standard Rate) and 27.5% for final 6 months (Extended Rate). The Vendor Financing Agreement has been negotiated to allow Elmore to obtain financing without the risk of the deal metrics changing during the finance period. It is not intended to be used as a means of paying off the purchase.

The acceptance of a high interest rate is reflective of Elmore confidence in the re-financing and to encourage Elmore to re-finance the purchase. Elmore is targeting refinance of the Vendor Finance Facility in fourth quarter of, 2022 (prior to the Extended Rate) and expects, based on initial discussions with potential funders and debt advisory groups, that this should be achievable with a 3-year debt facility with interest rates below the Standard Rate provided in the Vendor Finance Facility.