MGX Resources Limited

MGX Resources is pleased to announce a binding conditional agreement to divest its Koolan Island iron ore operation in the Kimberley to infrastructure and logistics group Crestlink Koolan Pty Ltd after the expected conclusion of shipments of remaining low-grade ore stockpiles in July. Crestlink, which is supported by a fund affiliated with US infrastructure investor Cerberus Capital Management LP, is seeking to utilise the existing site infrastructure to establish a combined mining, multi-user logistics, aviation and marine support facility. MGX will receive up-front and deferred payments totalling $20.2 million, plus a future revenue share component of up to a further $5 million, in the years following completion of the transaction. Crestlink will also assume remaining rehabilitation obligations at the time of completion, estimated to be approximately $30 million and primarily relating to the eventual removal of key site infrastructure. The transaction is supported by the Dambimangari Traditional Owners of Koolan Island and is a core element in MGX's strategic shift to the precious and base metals sectors, and its near term focus on development of its 50% owned Central Tanami Gold Project in the Northern Territory. For full details, go to www.mgx.com.au

MGX Resources and joint venture partner Tanami Gold took a significant step toward development of the advanced high-grade Central Tanami Gold Project (CTPJV) this week with the selection of Macmahon Underground Pty Ltd (a subsidiary of Macmahon Holdings Ltd) as Preferred Contractor to develop an underground exploration decline at the high-grade Groundrush gold deposit. The exploration decline is an important component of the CTPJV’s development activities which will facilitate resource infill drilling of the deposit from underground headings and enable early advancement of the decline workings. Macmahon’s scope of work will include portal and vent establishment and approximately 3,500 metres of exploration decline development. Activities are expected to commence in the September 2026 quarter and extend for a 14 month period, with the work valued at approximately $38 million. Underground drilling activities will commence towards the end of this period. The appointment of Macmahon remains subject to finalisation and ex*****on of a binding
agreement. For more information visit www.mgx.com.au