Announcement PDF Finding more gold, faster M a rc h 2 0 2 5 ASX:DRE Not for release to U.S. wire services or distribution in the United States ASX:DRE 1 Corporate Overview - Preplacement Corporate Information DRE Share Price – 12 months1 Shares on Issue 4,159.2M Unlisted Securities ~89.0M Market Cap (at A$0.015/sh)1 ~$62M Liquidity (90 day average) ~0.1M/day Cash @ 28 Feb 25 2 ~A$3.3M Top 20 Holders: ~30% 1 Share price as at 25 March 2025. 2 Cash as at 28 February 2025 including net proceeds from A$4.1 million placement announced 5 February 2025. Major Shareholders – Directors & Management own ~13%1 Paul Chapman 8.0% Philip Crutchfield 3.0% Black Cat Syndicate Ltd 2.4% Parkrange Nominees Pty Ltd 1.8% Non-Executive Chairman Pareto Nominees Pty Ltd 1.6% Managing Director Dean Tuck 1.0% Non-Executive Director 1 Source: IRESS Board of Directors Paul Chapman Dean Tuck Philip Crutchfield 1 As at 25 March 2025. ASX:DRE 2 Board of Directors Paul Chapman Non-Exec Chairman • Chartered accountant with 30+ years experience in the resources sector • Founding shareholder and/or director of Reliance Mining, Encounter Resources, Rex Minerals, Silver Lake Resources, and Avanco Resources • Non-Executive Chairman of Meeka Metals, Black Cat Syndicate and a NonExecutive Director of Sunshine Metals Dean Tuck Managing Director • Experienced geologist and exploration manager having worked across a wide range of commodities in Australia, Brazil and SE Asia from project generation through to resource evaluation • Previously held senior level positions ranging from private companies to BHP Billiton and ASX listed junior explorers • Instrumental in several discoveries covering Cu-Au massive sulphide, REE ironstones, REE-Nb-Phosphate carbonatites, orogenic gold, LCT pegmatites and iron ore Phillip Crutchfield Non-Exec Director • Prominent and well-respected barrister specialising in commercial law • Director of Encounter Resources and Hamelin Gold • Chair of the Bell Shakespeare Theatre Company and the Victorian Bar Foundation • Former partner of Mallesons Stephen Jaques (now King & Wood Mallesons) ASX:DRE 3 Mangaroon Gold Project ASX:DRE ASX:DRE 4 Project Location & Summary • Large tenement package covering ~5,000km2 in the Gascoyne Region of Western Australia • ~300kms from major local towns of Exmouth and Carnarvon • ~330kms by road from Paulsens Gold Operation (ASX: BC8) • ~350kms from the Port of Onslow • Serviced by the sealed Northwest Coastal Highway ~150kms away and well-developed shire roads • Underexplored belt with >200km of major geological structures identified, minimal modern exploration • Multiple walk-up drill targets now defined by strong geochemistry and rock chips ASX:DRE 5 Star of Mangaroon – initial high-grade resource History • Gold identified: 1956 • Small-scale underground mining: 1960-1983 • Production: ~7,500 ounces at ~35g/t Develop the Star of Mangaroon Outlook • Maiden Resource of 23,300oz @ 12.8g/t Au (84% Indicated) defined within ~100m of surface • High grade, open-pit opportunity with potential to grow along strike and at depth • Robust open pit Scoping Study shows: • ~A$50M in free cashflow @ A$4,600oz • 10-12 months production • max cash drawdown of ~A$10M • ASIC ~A$1,800/oz • Strategy to outsource funding, development, haulage and processing • Black Cat Syndicate has invested $2M and entered an agreement to secure the first right to negotiate gold development for processing at Paulsens • Additional gravity test work underway to assess on site processing ASX:DRE ASX.DRE 12 September 2022 Star of Mangaroon Acquisition & Consolidation ASX.DRE 27 November 2024 Shallow, High-grade, 84% Indicated Au Resource ASX.DRE 28 January 2025 Robust Scoping Study for Star of Mangaroon ASX:DRE 6 Star of Mangaroon – shallow resource contained within ~110m of surface and remains open along strike and at depth. Upside potential at Star of Mangaroon & Popeye • Limited exploration in the 1980s/1990s: • 4m at 26g/t Au from 9m (MA10) • 4m at 18.7g/t Au from 8m (SMC07) • Recent drilling highlights by DRE includes: • 2m at 59.0g/t Au from 16m (SOMRC004) • 4m at 27.4g/t Au from 80m (SOMRC030) • 7m at 23.0/t Au from 53m (SOMRC005) • 8m at 15.5g/t Au from 89m (SOMRC006) • First-pass drilling at Popeye (4 RC holes for 309m), highlights: • 3m at 22.8g/t from 13m • Potential to grow resource, mine plan and financials: • Add shallow ounces by extending Star of Mangaroon & Popeye • Test underground mining potential ASX.DRE 26 July 2024 Consolidation, Growth & Commercialisation ASX.DRE 1 November 2023 Gold Drilling Commenced at Star of Mangaroon ASX.DRE 22 January 2024 Star of Mangaroon Extended ASX:DRE 7 Star of Mangaroon - highly prospective over +1km strike and at depth Popeye ASX.DRE 27 November 2024 Shallow, High-grade, 84% Indicated Au Resource ASX.DRE 28 January 2025 Robust Scoping Study for Star of Mangaroon ASX:DRE 8 Underexplored Mangaroon vs Post-discovery Gruyere (same scale) Open file Data ~1990s-2017 Mangaroon Mangaroon Gruyere (2013) ASX:DRE 9 Underexplored Mangaroon vs Mature Brownfield (same scale) Open file Data ~1990s-2017 Mangaroon Mangaroon Kalgoorlie ASX:DRE 10 Historical workings on outcropping veins highlight mineralised structures No drilling of historical workings nor mineralised structures undercover Cullens 3m @ 6.5g/t Au from 28m Linkage Faults >90kms of mineralised structure undercover Mitchells 16.4g/t Au Rock Chips Edmund Fault Star of Mangaroon Midday Moon >80kms of mineralised structure undercover 23.3koz @ 12.8g/t Au 3.1 g/t Au Rock Chips Steve’s Reward 155g/t Au Rock Chips Fenceline Minga Bar Fault 64g/t Au Rock Chips >60kms of mineralised structure undercover Neptune 6.7g/t Au Rock Chips ASX.DRE 25 March 2025 Further Gold Ground Consolidated at Mangaroon ASX.DRE 19 March 2025 Further Gold Ground Consolidated at Mangaroon ASX.DRE 18 March 2025 High Grade Gold Lode Extended ASX:DRE 11 Stream sediment sampling highlighting prospective gold camps at Bordah and High Range with stronger gold values than the Star of Mangaroon High Range North High Range Incomplete Streams High Range South Bordah Incomplete Streams Linkage Faults >90kms of mineralised structure undercover Minga Bar Star of Mangaroon 23.3koz @ 12.8g/t Au Edmund Fault Bordah >80kms of mineralised structure undercover Minga Bar Minga Bar Fault >60kms of mineralised structure undercover ASX.DRE 30 January 2025 Further Consolidation and High-Grade Gold at Mangaroon ASX:DRE 12 Soil sampling defining walk up targets at Bordah, Minga Bar Fault and Star of Mangaroon with aircore targets over >200kms of major mineralised structures High Range Incomplete Soils Edmund Fault Bordah Aircore Target Incomplete Soils Linkage Faults >90kms of mineralised structure undercover Minga Bar Walk-up targets Star of Mangaroon Multiple walk-up targets Bordah Walk-up targets Minga Bar Fault Aircore Target ASX.DRE 30 January 2025 Further Consolidation and High-Grade Gold at Mangaroon ASX.DRE 18 March 2025 High Grade Gold Lode Extended Edmund Fault >80kms of mineralised structure undercover Linkage Faults Aircore Targets Minga Bar Fault >60kms of mineralised structure undercover ASX:DRE 13 Walk up drill targets defined by Dreadnought in an emerging gold camp Midnight Star Target 3,000m x 400m gold in soil anomaly Never drilled Midday Moon Target 2,800m x 800m gold in soil anomaly Rock chips up to 3.1g/t Au Never drilled Pritchard Gold Mine Cullens 400m x 300m gold in soil anomaly Drilled 1986: 3m @ 6.5g/t Au from 26m including 1m @ 16.2g/t Au from 28m Mitchell’s Find 1,200m x 300m gold in soil anomaly Rock chips up to 16.4g/t Au Never drilled Historical alluvial and hard rock mining Drilled 2003: 3m @ 10.0g/t Au from 65m Not yet followed up Hudson Trend 6,000m x 700m gold in soil anomaly Lead Gold Mine Historical alluvial and hard rock mining DRE 2023: 2m @ 3.8g/t Au from 25m Not yet followed up Nail 1,700m x 300m gold in soil anomaly Never drilled Steve’s Reward ~1,000m long outcropping lode Rock chips up to 155 g/t Au Soils pending, never drilled ASX.DRE 25 November 2020 Mangaroon Ni-Cu-PGE & Au Project ASX.DRE 15 March 2021 Exploration Commences at Mangaroon ASX.DRE 13 March 2024 Star of Mangaroon Camp Scale Gold Prospect Expands ASX.DRE 18 March 2025 High Grade Gold Lode Extended ASX.DRE 27 November 2024 Shallow, High-grade, 84% Indicated Au Resource Star of Mangaroon Historical hard rock mining DRE 2024: 23.3koz @ 12.8g/t Au Popeye Historical hard rock mining DRE 2024: 3m @ 22.8g/t Au from 13m, not yet followed up Tiger Trend 3,600m x 500m gold in soil anomaly ASX:DRE 14 Illaara Gold Project ASX:DRE ASX:DRE 15 Project Location & Summary • Covering ~800km2 in the Yilgarn Region of Western Australia • ~60kms to Aurenne’s Mt Ida Gold Mill • ~100kms to local town of Menzies • ~130kms to Ora Banda’s (ASX.OBM) Davyhurst Mill • ~190kms from major centers at Leonora and Kalgoorlie • Serviced by the sealed Goldfields Highway ~100kms away and well-developed shire roads • Hosts the high grade Metzke’s Find deposit at 6.8g/t Au ASX:DRE 16 Last explored for gold by Dreadnought in 2021/2022 when gold price was ~$2,200 Underexplored History 2500 1500 Eastern Group First holes into Metzke’s Find, returned 2m @ 15.8g/t Battle Mountain Gold Exploration through Perrinvale area via farm-in agreement with Anglo Australia. Surface geochem, mapping, and geophysics 500 ASX:DRE 200 Dreadnought acquire Illaara from Newmont 150 1000 0 Cliffs Natural Resources Regional iron ore exploration with geological mapping and reconnaissance, drilling, and discovery of goethite-hematite mineralisation Metzke’s Find MRE 14.9koz @ 6.8g/t Au 1990 Metzke’s Find 2m @ 39.2g/t Au 3m @ 21.0g/t Au 7m @ 7.5g/t Au Mount Burgess Mining Auger drilling, rock chipping and geophysical data collection 2000 100 Longmore’s Find 1m @ 100g/t Au 2010 Macarthur Minerals Exploration and discovery of 54.5Mt @ 47% Fe at Lake Giles ~40km from Illaara 2020 Mineral Resources Yilgarn Iron Ore Hub Iron Ore USD/ton Gold Price USD/oz 2000 CRA Exploration Airborne magnetic and radiometric surveys, grid-based auger sampling, detailed mapping programs. Intersected 4m @ 1g/t surface RAB Newmont Corporation Consolidated Illaara greenstone belt after identifying ~55km long Au-As-Sb anomaly generated by GSWA. Completed proprietary surface geochem surveys generating significant gold anomalies. Cleared 27km of tracks providing great project access 50 0 ASX:DRE 17 One of the most underexplored greenstone belts in the Yilgarn region Black Oak Longmore’s Find DRE 2020: 1m @ 100g/t Au Metzke’s Find 14.9koz @ 6.8g/t Au Open along strike and depth 6m @ 0.9g/t Au including 1m @ 3.3g/t Au Never followed up Menzies Belt Illaara Belt Iron Ore and Base Metal Drilling Mt Ida – Ullaaring Belt SW BIF Horizon Yerilgee Belt Rock chips to 42 g/t Au Lawrence’s Find 3m @ 3.6g/t Au Never followed up ASX.DRE 31 May 2021 Drilling Results – Illaara Au-Cu-Iron Ore Project ASX.DRE 27 April 2021 Illaara Update and Regional Target Generation ASX.DRE 24 June 2019 75km Long Illaara Greenstone Belt Acquired from Newmont ASX.DRE 16 July 2020 Drilling Update ASX.DRE 12 January 2021 Longmore’s Find Assay Results ASX.DRE 27 April 2023 Initial High-Grade Gold Resource at Metzke’s Find ASX:DRE 18 Multiple mineralised shear zones never tested with air core Bedrock drill intercepts never followed up, multiple walk-up targets Black Oak Longmore’s Find DRE 2020: 1m @ 100g/t Au 6m @ 0.9g/t Au 18m @ 0.3g/t Au Never followed up Metzke’s Find Black Oak – Homestead Trend 14.9koz @ 6.8g/t Au Open along strike and depth Eastern Horizon >40kms of mineralised structure undercover with major bends Never drilled Never drilled Central Illaara Fault >60kms of mineralised structure undercover Never drilled Eastern Horizon Never Drilled SW BIF Horizon Eastern Horizon >40kms of mineralised structure under variable cover Never drilled Rock chips to 42 g/t Au Lawrence’s Find 3m @ 3.6g/t Au Never followed up ASX.DRE 31 May 2021 Drilling Results – Illaara Au-Cu-Iron Ore Project ASX.DRE 27 April 2021 Illaara Update and Regional Target Generation ASX.DRE 24 June 2019 75km Long Illaara Greenstone Belt Acquired from Newmont ASX.DRE 16 July 2020 Drilling Update ASX.DRE 12 January 2021 Longmore’s Find Assay Results ASX.DRE 27 April 2023 Initial High-Grade Gold Resource at Metzke’s Find ASX:DRE 19 Metzke’s Find - 14.9k oz @ 6.8g/t Au High-grade near-surface mining opportunity • Coarse gold in hydrothermal quartz veins • High grade intercepts including • 2m @ 39.2 g/t Au • 3m @ 21.0 g/t Au • MZRC049 drilled 150m north of the current resource intersected 6m @ 1.15 g/t Au, not followed up • Metzke’s is part of 12-km long underexplored soil anomaly • Opportunity to toll treat at nearby mines MZRC019: 2m @ 39.2g/t Au ASX.DRE 27 April 2023 Initial High-Grade Gold Resource at Metzke’s Find MZRC021: 2m @ 19.2g/t Au ASX:DRE 20 Rare Earths Gifford Creek ASX:DRE 21 Gifford Creek Carbonatite Complex Significant Critical Metal Potential • The Gifford Creek Carbonatite Complex is one of the largest carbonatite complexes in the world, stretching 17km. • Wide spaced drilling over just ~25% has identified multiple zones of critical metal (rare earth, niobium, titanium, phosphate and scandium) mineralisation. Proven Rare Earth Mineralisation • 29.98Mt @ 1.04% TREO at the Yin Ironstone Complex (87% Measured and Indicated) • Commercial monazite concentrate and mixed rare earth carbonates (MREC) created • 10.84Mt @ 1.00% TREO and 0.22% Nb2O5 at C3 (100% Inferred) Proven Niobium Mineralisation • Close to existing and shared infrastructure • Multiple zones of mineralisation already identified • Mineralogical test work confirms pyrochlore mineralisation across Stinger ASX.DRE 19 August 2024 Thick High-Grade Niobium Intercepts from Gifford Creek Carbonatite ASX:DRE 22 Summary ASX:DRE ASX:DRE 23 Capital Raising Offer Structure Up to A$10 million capital raising comprising - A$8.5 million two tranche placement (Placement); - A$6.1 million under the Company’s placement capacity under ASX Listing Rules 7.1 and 7.1A (Tranche One); - A$2.4 million subject to shareholder approval at a general meeting of the Company to be held on or around 6 May 2025 (Tranche Two) - Up to A$1.5 million share purchase plan (SPP)1 Offer Price Offer price of A$0.012 represents: - 20.0% discount to the last trade price of A$0.015 on 25 March 20252; - 22.6% discount to the 15-day volume weighted average trading price (VWAP) as at 25 March 20252 Use of funds Mangaroon gold resource and regional drilling, gravity gold study and other studies, Illaara gold drilling and working capital Ranking Placement shares issued under the Placement will rank equally with existing shares on issue Broker Syndicate Petra Capital Pty Limited – Sole Lead Manager and Sole Bookrunner 1 SPP shares will be issued subject to ASX waiver. Where the ASX waiver is not granted SPP shares will be issued subject to shareholder approval at a general meeting of the Company. 2 Source: IRESS. ASX:DRE 24 Work Plan Summary and Use of Funds Star of Mangaroon Open Pit $0.5M Mangaroon Drilling $4.5M Mangaroon Exploration $2.0M Illaara Drilling $1.5M March 2025 Quarter June 2025 Quarter Scoping Study Mining, Haul, Process Agreement September 2025 Quarter December 2025 Quarter March 2026 Quarter Approvals and Commencement of Production Star of Mangaroon, Popeye, Pritchard's, Lead Gold Mine, Two Peaks Steve’s, Cullens, Midday Moon, Nail, Mitchells, New Targets and Minga Bar and Edmund Air core Bordah, High Range and Minga Bar Metzke’s, Lawrences, SW BIF Horizon, Black Oak – Homestead Aircore New Targets General $1.5M Work Plan Focus 1. 2. 3. 4. Get Star of Mangaroon into production Add mineable ounces on granted mining leases to extend production Gold discovery focused drilling programs at Mangaroon and Illaara Continue to build a pipeline of quality gold targets for discovery focused drilling ASX:DRE 25 Timetable SPP Record Date 27 March 2025 Offer Announcement 28 March 2025 Placement Tranche One Settlement Date 3 April 2025 Placement Tranche One Allotment Date 4 April 2025 SPP Opening Date 4 April 2025 SPP Closing Date 15 April 2025 SPP Shares Issued 23 April 2025 General Meeting On or around 6 May 2025 Placement Tranche Two Settlement Date 13 May 2025 Placement Tranche Two Allotment Date 14 May 2025 1 Dates are indicative only and may be subject to change at the sole discretion of the Company, in consultation with the Lead Manager, in compliance with the ASX Listing Rules and Corporations Act. In particular, where the ASX waiver in relation to the SPP is not granted SPP dates will change to allow SPP shares to be issued subject to shareholder approval. ASX:DRE 26 Gold focused explorer Develop the high-grade Star of Mangaroon and generate cashflow Add short term production ounces to boost cashflow Deliver gold discoveries from walk up targets Generate and define targets for discovery ASX:DRE 27 Appendix One - risks Set out in this section are potential risks associated with the Company, the Placement, the industry in which DRE operates and an investment in DRE shares. It is not an exhaustive list of every risk faced by the Company now or in the future. Global economic conditions Changes in global economic conditions (including changes in interest rates, inflation, currency inflation, industrial disruption, foreign exchange rates and labour costs) may impact the operational and financial conditions performance of the Company. Share price fluctuations The value of the Company's shares will be determined by the stock market and will be subject to varied and often unpredictable influences in the share market beyond the Company's control and the last trading price of the Company’s shares on ASX prior to the presentation is not a reliable indicator as to the potential trading price of the Company in the future. These factors include, but are not limited to, the demand for, and availability of the Company's shares, movements in interest rates, exchange rates, and rates of inflation, fluctuations in the Australian and international stock markets, changes in fiscal, monetary and regulatory policies, and general domestic and international and economic activity. Depending on general market conditions and the Company’s share price, the Company may not be able to attract new investors or raise capital as and when required. Global pandemic Any future pandemic, may have a material adverse impact on the operations and financial performance of the Company. Local, national and international events of this nature are not within the control of the Company including impacts of government and regulatory restrictions that have or may be implemented including as to travel, employment, operational matters, imports or good/services. Gold price The success of the Company's operations is primarily dependent on the price of gold bullion as substantially all of the Company's potential revenues are derived from the sale of gold. Gold prices are volatile and may fluctuate as a result of numerous factors, which are beyond the control of the Company. Such factors include, but are not limited to: a. speculative positions taken by investors or traders in gold; b. changes in global demand for gold (as an investment and/or for other uses); c. global and regional recessions or reduced economic activity and/or inflationary expectations; d. financial market expectations regarding the rate of inflation; e. the strength of the US dollar (the currency in which gold trades internationally); f. gold hedging and de-hedging by gold producers; g. decisions made by central banks and multilateral organisations to purchase, hold or sell portions of their gold reserves; h. changes in production costs in major gold producing regions, and i. domestic or international political or geopolitical events, unrest or hostilities. Historically, the price of gold has fluctuated widely. The possible adverse consequences of future price declines could include the following: a. The Company's operations may become uneconomic because the projected future revenues no longer justify the costs of operation or development; b. The Company’s revenues may decline to a point at which its operations are uneconomic, as a result of which the Company may cease production; c. The value of the Company's assets may decline, causing it to write down asset values and thereby incur losses; and d. The Company may be required to restate its gold reserves and resources. Exchange rate risk A portion of mine operation expenditures and future project equipment expenditures are denominated in foreign currency which exposes the Company to exchange rate risk. Key personnel The Company’s success depends on the continued services of its key personnel. Due to management’s experience and the important role they have taken in developing the Company’s mining, business and financial plans, the Company could be adversely affected if any of the key management team ceased to actively participate in the management of the Company or ceased employment with the Company entirely. As there may be a limited number of persons with the requisite experience and skills to serve in the Company’s senior management positions if existing management leave the Company, the Company may not be able to locate or employ qualified executives on acceptable terms. If the Company cannot attract, train and retain qualified managers, it could adversely affect the Company’s current exploration, development and future production operations and its future growth plans. There can also be no assurance that the Company’s operations will not be affected by labour related problems in the future, such as disputes relating to wage or requests for increased employee benefits. Availability of capital The Company may require further financing support in the future to support additional capital expenditure or to meet future objectives. There is no certainty that it will be successful in obtaining the financing required as and when needed, on favourable terms, or at all. Changing investor and lender appetite for exposure to the resource sector may also limit the future availability of equity and debt capital. There can be no assurance that the Company can obtain future financing on a timely basis and this failure may compromise the Company’s ability to achieve its strategic objectives, or could ultimately impact upon its ability to continue as a going concern. ASX:DRE 28 Appendix One – risks continued Taxation Changes to corporate income tax, import duties, property tax, excise tax, withholding tax or any other applicable taxation legislation or policies in Australia, or other jurisdictions where the Company operates or procures supply may adversely affect the Company's financial profitability, net assets and cash flow and the returns to investors. The countries in which the Company operates or procures supply may impose additional taxes on the Company. The recoupment of taxation losses accrued by the Company from any future revenues is subject to the satisfaction of tests outlined in taxation legislation or regulations in relevant jurisdictions. There is no guarantee that the Company will satisfy all these requirements at the time it seeks to recoup its tax losses which may impact on the financial performance and cash flows of the Company Conditions and renewals of licences The permits and agreements on the Company’s projects are governed by Australian legislation and are evidenced by the granting of permits and agreements and the extension of such permits and agreements. Each permit, agreement or extension is for a specific term and carries with it annual expenditure and reporting commitments, as well as other conditions requiring compliance. There is a risk that tenements, environmental consents and any other land use approvals may not be granted, obtained or renewed, may be granted, obtained or renewed on terms that are not satisfactory to the Company, or may be obtained granted or renewed but not within the timeframes anticipated by the Company. This could have a material adverse effect on the Company’s future operations and financial performance. Financial condition The Company's results and financial condition may vary with fluctuations in costs. No assurance can be given that the Company will achieve its financial estimates. The Company will endeavour to take appropriate action to mitigate financial risks inherent in its business. Land access arrangements Utilisation of land for exploration and development purposes can be adversely affected by land ownership, including private (freehold) land, pastoral lease and native title land or claims under the Native Title Act 1993 (Cth) (NTA) (or similar legislation in the jurisdiction where the Company operates). The effect of the NTA is that existing and new tenements held by the Company may be affected by native title claims and procedures. There is a potential risk that a determination could be made that native title exists in relation to land the subject of a tenement held or to be held by the Company which may affect the operation of the Company’s business and development activities Mineral Resource Estimates Mineral resource estimates are a subjective process based on drilling results, past experience with mining properties and modifying factors, knowledge, industry practice and many other factors. Estimates which are valid when made may change substantially when new information becomes available. The actual quality and characteristics of mineral deposits cannot be known until mining and processing takes place and will almost always differ from the assumptions used to develop mineral resources. Insurance The Company’s business is subject to a number of risks and hazards generally, including adverse environmental conditions, industrial accidents, labour disputes, code of conduct breaches, unusual or unexpected geological conditions, ground or slope failures and natural phenomena such as inclement weather conditions (including cyclones), floods and earthquakes. Such occurrences could result in damage to facilities, personnel injury or death, environmental damage to the Company’s properties and the properties of others, delays in development or mining, monetary losses and possible legal liability. In addition, there is a risk that an issuer defaults in the payment of a legitimate claim by the Company. Although the Company maintains insurance to protect against certain risks in such amounts as it considers it to be reasonable, its insurance will not cover all of the potential risks associated with its business. The Company may also be unable to maintain insurance to cover those risks at economically feasible premiums. Insurance coverage may not continue to be available or may not be adequate to cover any resulting liability. In addition, there is a risk that an insurer defaults on a payment of a legitimate claim by the Company. Losses from any of these events may cause the Company to incur significant costs that could have a material adverse effect on its financial performance and results of operations. Environmental regulations and risk National and local environmental laws and regulations in jurisdictions in which the Company operates affect the Company. These laws and regulations set various standards regulating certain aspects of health and environmental quality, provide for penalties and other liabilities for the violation of such standards and establish, in certain circumstances, obligations to remediate current and former facilities and locations where operations are or were conducted. The Company will minimise the potential impact of these laws and regulations by taking steps to ensure compliance with environmental regulations and, where possible, by carrying appropriate insurance. Significant liability could be imposed on the Company for damages, clean-up costs or penalties in the event of certain discharges into the environment, environmental damage caused by previous owners of properties acquired by the Company, or noncompliance with environmental laws or regulations. This could have an adverse effect on the Company’s financial and operational performance. Exploration and development risk The exploration for and development of mineral deposits is speculative and involves significant risks. Whether a mineral deposit will be commercially viable depends on a number of factors, including: the particular attributes of the deposit (such as size, grade and proximity to infrastructure), metal prices, metallurgical recovery, capital construction and operating costs, and government regulation including regulations relating to prices, taxes, royalties, land tenure, land use, exporting of minerals and environmental protection. There is no certainty that the expenditures made by the Company towards the search for and evaluation of mineral deposits, will result in discoveries of commercial quantities of ore, nor will any discoveries be profitably exploited. Regulations The Company’s operations are subject to government laws, regulations and policies governing (among other things) taxation, exploration, production, exports, labour standards, occupational health and safety and environmental protection. Any future changes in these laws, regulations or policies may adversely affect the Company's operations. As an Australian domiciled company listed on the ASX, changes in relevant taxation, interest rates, other legal, legislative and administrative regimes, and Government policies in Australia, may have an adverse effect on operations and ultimately the financial performance o