ETANGO ADVANCES AS URANIUM MARKET RIPENS

It is my pleasure to be writing to you following the settlement of our A$85 million equity placement last week. This raising has placed Bannerman in an even stronger position ahead of a targeted Final Investment Decision (FID) on our world-class Etango Project.

As you know, our strategy has consistently been ‘Be Prepared, Be Patient’. With the recent momentum in the global uranium market generated by SPUT’s decisive actions, we found ourselves in a position to further derisk the Etango Project by bolstering our balance sheet. By capitalising on this opportunity, we are able to maintain our schedule of construction and long lead activities while continuing to advance and optimise our offtake marketing and financing workstreams in parallel.

Early construction works continue to advance on schedule and budget

Our focus on tight contract and activities controls is a core driver of the team’s performance to date at Etango. It is particularly pleasing to observe the substantial, high-quality progress on the ground, as early development phases are progressively designed, tendered, and executed. Our gated approach to early construction works investment allows us to systematically advance the project, mitigate timing risks, and ensure that work is undertaken safely and to a high standard of delivery.

One key highlight for the team in June was the achievement of 1 million manhours with no lost time injuries. This is an excellent reflection on the focus the team has on working safely.

As per our recent project update, the key site activities currently in progress include: 

• Execution of the key 24-month bulk earthworks contract continues to advance according to schedule. The terracing for the construction laydown, as well as secondary and tertiary crushers, has been completed. The construction of the heap leach pad is advancing well, and the excavation of leach ponds has also commenced.

• The Etango site access road is nearing completion, including the widening of the intersection at the C28 intersection and final backfilling around culverts. Site access parking is also well advanced.

• The heap leach pad at Etango spans 1km x 300m and is one of the most significant pieces of work in the construction. Setting out of the heap leach pad area has been undertaken, and construction of cells commenced. The next phase will be the placement of the lining on top of the platforms and the drainage pipes which then get covered with a stone drainage layer. The longest lead item in this process is the drainage stone.  In order to align these 3 steps we have focussed on the blasting, crushing and sizing of stone for the drainage layer.  The contract has been placed to secure costs and supply of the mobile crushing equipment required and the contract for the works to begin will be placed once the equipment is on site.
   Construction of all the permanent 33kV overhead powerlines on the Etango site has been completed and connection to the local electrical distributor for construction power has been successfully commissioned. The mini sub-stations required to connect site offices to the power grid were delivered in June 2025, and all residual work on this contract is expected to be completed during July 2025.

Below you can view our latest project video showing progress at Etango.

Successful equity raising enhances capacity to execute

Our recently completed A$85M equity raising has significantly bolstered our balance sheet strength. This is a key enabler to executing our streamlined strategy of financing and constructing Etango.

By undertaking this initiative, we have extended our capacity to continue making early works commitments in line with targeted project scheduling. It has also delivered a significant reduction in the residual development financing requirement for Etango.

The next phases of early works expected to be greenlit in coming months include the contract for the heap leach pad drainage and the concrete construction contract for the primary crusher, the permanent water pipeline contract, the instruction to commence manufacture on the dry plant mechanical equipment and the extension to engineering consultants contracts to ensure continuity of design.

One of the most excited team members following the successful equity raising was Etango Project Director, Jeff Pipe: 
“This is another exciting milestone for the project. With detailed designs well advanced and the construction team approaching next phase readiness, it’s fantastic to be in a position to continue awarding key construction packages. We have a highly motivated and experienced team in place, and have identified equally capable and committed contractors. We are delighted to be able to continue getting on with the construction work and bringing the Etango Project to life.”

Acquisition of Sprott Physical Uranium Trust (SPUT) units

You may have seen that we purchased units in the Sprott Physical Uranium Trust (SPUT) in their recent $200m bought deal financing. Our strategy in purchasing these units differs from the motivation to buy physical uranium we have observed in certain peers, so is worth further explanation.

As a matter of prudent financial management, we maintain a conservative cash buffer, part of which we will hold in the form of liquid securities, ie SPUT units.  Accordingly, the purchase of these units does not displace or defer project related expenditure.

Some of our peers acquired physical uranium with the intention of providing reassurance to nuclear utilities that they would be able to meet contracted delivery obligations and, therefore, make their projects more attractive for long term contracting.  Bannerman does not believe we need to do this, owing to the technically simple nature of Etango and utilities’ confidence that we will be able to produce and deliver uranium when the time comes.

In contrast, our purchase of SPUT units gives us synthetic physical uranium exposure equivalent to approximately 100,000lbs U3O8.  This exposure will act as a synthetic hedge when we start to sell Etango’s uncontracted uranium production.  For example, if we chose to sell 100,000lbs of uncontracted production in the mid-term market (ie longer than 90 days delivery) we could sell that production before it is produced and loaded on the ship, knowing that in a worst case scenario we would need to buy the material back from the market to fulfill a delivery obligation. Owning a synthetic hedge would limit any price exposure we could suffer if the spot price increased between the dates of sale and delivery. 

For this relatively small quantity of U3O8, owning liquid SPUT units is vastly more effective than buying and storing 100,000lbs of U3O8. 

Voting at upcoming General Meeting

Bannerman is convening a General Meeting of shareholders on Thursday, 7 August 2025 at 10:00 am (AWST). Please see here the Notice of Meeting. 

This General Meeting is being held to ratify the issuance of the placement shares from our recent A$85 million raising. We are choosing to do this to maximise our flexibility in relation to undertaking a targeted FID on Etango.

To be clear, the issue of further shares may not be required for project financing to undertake an FID (depending on the final funding route that might be selected). However, the inability to issue placement shares without shareholder approval has the potential to adversely impact our flexibility and breadth of options in making the optimal FID, should favourable market conditions continue to develop. It is for this reason that we are seeking the approval at the upcoming General Meeting. 

The Company strongly encourages shareholders to lodge a directed proxy vote online or by form in accordance with the instructions on the Proxy Form prior to the meeting. Your proxy vote must be received by 10:00 am (AWST) on Tuesday, 5 August 2025. 

To lodge your proxy vote online, please visit www.investorvote.com.au and enter the Control Number, together with your unique SRN/HIN and PIN listed on your personalised Proxy Form. Intermediary Online subscribers (custodians) should visit www.intermediaryonline.com.