Announcement PDF 3 July 2023 Market Announcements Office Australian Securities Exchange Limited Level 40, Central Park 152 – 158 St Georges Terrace PERTH WA 6000 Off-market takeover bid by Westgold Resources Limited for Musgrave Minerals Limited – Target's Statement In accordance with item 14 of section 633(1) of the Corporations Act 2001 (Cth) (Corporations Act), we attach a copy of the Target's Statement issued by Musgrave Minerals Ltd ACN 143 890 671 (ASX: MGV) (Musgrave) in relation to the off-market takeover bid by Westgold Resources Limited ACN 009 260 306 (Westgold) under Chapter 6 of the Corporations Act for all the ordinary shares in Musgrave. The Target's Statement is being lodged today with the Australian Securities and Investments Commission and served on Westgold. This announcement has been approved and authorised for release by the Managing Director of Musgrave Minerals Limited. Yours faithfully Patricia (Trish) Farr Company Secretary Musgrave Minerals Limited 5 Ord Street, West Perth WA 6005 Telephone: (61 8) 9324 1061 Fax: (61 8) 9324 1014 Web: www.musgraveminerals.com.au Email: info@musgraveminerals.com.au ABN: 12 143 890 671 TARGET'S STATEMENT MUSGRAVE MINERALS LIMITED ACN 143 890 671 In relation to the takeover offer by Westgold Resources Limited ACN 009 260 306 to purchase all of your fully paid ordinary shares in Musgrave Minerals Limited in consideration for 1 Westgold Share for every 5.37 Musgrave Shares Your Directors unanimously recommend that you REJECT the Westgold Resources Limited Offer BY TAKING NO ACTION This is an important document and requires your immediate attention. If you are in any doubt as to how to deal with this document, you should consult your financial, legal, tax or other professional adviser immediately. Legal Adviser Financial Adviser CONTENTS LETTER FROM THE CHAIRMAN ............................................................................. 1 IMPORTANT NOTICES ............................................................................................. 3 1 REASONS TO REJECT THE WESTGOLD OFFER ....................................... 5 2 OVERVIEW ................................................................................................... 13 3 FREQUENTLY ASKED QUESTIONS ........................................................... 15 4 YOUR CHOICES AS A MUSGRAVE SHAREHOLDER ............................... 23 5 INFORMATION ABOUT MUSGRAVE .......................................................... 25 6 INFORMATION ABOUT WESTGOLD .......................................................... 33 7 RISK FACTORS ............................................................................................ 34 8 KEY FEATURES OF THE WESTGOLD OFFER .......................................... 47 9 TAXATION CONSEQUENCES ..................................................................... 52 10 ADDITIONAL INFORMATION ...................................................................... 57 11 AUTHORISATION ......................................................................................... 64 12 GLOSSARY................................................................................................... 65 CORPORATE DIRECTORY .................................................................................... 74 P a g e |i IMPORTANT DATES Announcement Date 6 June 2023 Lodgement of Bidder’s Statement 9 June 2023 Westgold Offer Opens 23 June 2023 Lodgement of Target's Statement 3 July 2023 Date for notice on the status of conditions 14 July 2023 Westgold Offer Closes (unless extended or withdrawn*) * 5:00pm (Perth time) on 24 July 2023 The Westgold Offer may be extended to the extent permitted under the Corporations Act. MUSGRAVE SHAREHOLDER INFORMATION LINE If you have any queries in relation to the Westgold Offer, please consult your professional adviser or the Musgrave Shareholder Information Line on 1300 918 438 from within Australia or +61 3 9415 4634 from overseas on Monday to Friday between 8:30am and 5:00pm (AEST). P a g e | ii LETTER FROM THE CHAIRMAN Dear Musgrave Shareholder On 6 June 2023, Westgold made an unsolicited off-market scrip-for-scrip takeover offer to acquire all of your Musgrave Shares. Westgold is offering one (1) Westgold Share for every 5.37 Musgrave Shares held (Westgold Offer). The Bidder's Statement from Westgold was announced on 9 June 2023 and outlines the terms and conditions of the Westgold Offer. THE MUSGRAVE DIRECTORS UNANIMOUSLY RECOMMEND THAT YOU REJECT THE WESTGOLD OFFER The Musgrave Directors have considered the Westgold Offer and unanimously recommend that Musgrave Shareholders REJECT the Westgold Offer. Each Musgrave Director intends to REJECT the Westgold Offer in relation to any Musgrave Shares they own or control. Each Musgrave Director unanimously recommends that Musgrave Shareholders accept the superior Ramelius Offer (in the absence of a Superior Proposal). Each Musgrave Director has already agreed to accept all Musgrave Shares they own or control into the Ramelius Offer. On 3 July 2023, Musgrave announced that it had entered into the Ramelius Bid Implementation Agreement with Ramelius pursuant to which Ramelius offered to acquire 100% of Musgrave Shares for one (1) Ramelius share for every 4.21 Musgrave Shares held and $0.04 in cash for every Musgrave Share held. The Musgrave Directors consider the Ramelius Offer to be superior to the Westgold Offer. Further information on the Ramelius Offer is set out in Section 10.1 of this Target's Statement. Further information in relation to the Ramelius Offer will also be provided in a bidder's statement issued by Ramelius and another target's statement issued by Musgrave in relation to the Ramelius Offer. KEY REASONS THE MUSGRAVE DIRECTORS UNANIMOUSLY RECOMMEND YOU REJECT THE WESTGOLD OFFER In summary, the key reasons why the Musgrave Directors recommend you REJECT the Westgold Offer are as follows:  The implied Westgold Offer Consideration price is less than that offered under the Ramelius Offer. The Ramelius Offer includes one (1) Ramelius share for every 4.21 Musgrave Shares held and $0.04 in cash for every Musgrave Share held.  The implied Westgold Offer Consideration price is below the Musgrave Share price.  The Westgold Offer is opportunistic given Musgrave’s potential.  Musgrave delivers immediate growth to Westgold.  The Westgold Offer is highly conditional and uncertain. If you accept into the Westgold Offer you will be unable to accept into the superior Ramelius Offer.  Musgrave Shareholders may face adverse tax consequences if they accept the Westgold Offer. Each of the above key reasons to REJECT the Westgold Offer are detailed in Section 1 of this Target’s Statement. WHAT SHOULD YOU DO? To REJECT the Westgold Offer, simply DO NOTHING. However, you should read this Target’s Statement and the Bidder’s Statement carefully, and in their entirety, as they will assist you in making an informed decision in respect to the Westgold Offer. If you are in any doubt as to what you should do, I encourage you to seek advice from independent and appropriately licensed financial, legal, taxation and other professional advisers before making your decision in relation to your Musgrave Shares. P a g e |1 If you have any further queries in relation to the Westgold Offer, you can contact Musgrave's Shareholder Information Line on 1300 918 438 from within Australia or +61 3 9415 4634 from overseas on Monday to Friday between 8:30am and 5:00pm (AEST). On behalf of the Board, I thank you in anticipation of your continuing support. Yours faithfully Graham Ascough Non-Executive Chairman P a g e |2 IMPORTANT NOTICES Nature of this document This Target’s Statement is dated 3 July 2023 and is given under section 633 of the Corporations Act by Musgrave Minerals Limited ACN 143 890 671 in response to the Bidder’s Statement lodged by Westgold Resources Limited ACN 009 260 306 with ASIC and served on Musgrave on 9 June 2023. Defined terms and interpretation Capitalised terms used in this Target’s Statement are either defined in brackets when first used or are defined in the Glossary in Section 12. References Sections References to Sections are to the named Sections in this Target’s Statement. ASIC and ASX disclaimer A copy of this Target’s Statement has been lodged with ASIC and ASX. Neither ASIC, ASX nor any of their respective officers take responsibility for the content of this Target’s Statement. No account of personal circumstances This Target’s Statement does not constitute financial product advice and has been prepared without reference to the individual investment objectives, financial situation, taxation position or particular needs of any Musgrave Shareholder or any other person. It is important that you read this Target’s Statement before making any decision, including a decision on whether or not to accept the Westgold Offer. If you are in doubt as to what you should do, you should consult your legal, investment, taxation or other professional adviser. Musgrave Shareholders should consult their taxation adviser as to the applicable tax consequences of the Westgold Offer. A summary of the Australian taxation considerations is detailed in Section 9. Risk factors Musgrave Shareholders should note that there are a number of risk factors attached to their investment in Musgrave and other risks which apply in the event the Westgold Offer is accepted. Section 7 of this Target’s Statement sets out further information regarding those risks. Forward looking statements Certain statements in this Target’s Statement relate to the future, including forward looking statements and information ("forward looking statements"). The forwardlooking statements in this Target’s Statement are not based on historical facts, but rather reflect the current views and expectations of Musgrave concerning future events and circumstances. These statements may generally be identified by the use of forward looking verbs such as "aim", "anticipate", "believe", "estimate", "expect", "foresee", "intend" or "plan", qualifiers such as "may", "should", "likely" or "potential", or similar words. Similarly, statements that describe the expectations, goals, objectives, plans, targets, and future costs and financial performance of Musgrave or Westgold are, or may be, forward looking statements. Forward looking statements involve known and unknown risks, uncertainties, assumptions and other important factors that could cause the actual results, performances or achievements of Musgrave or Westgold, to be materially different from future results, performances or achievements expressed or implied by such statements. Such statements and information are based on numerous assumptions regarding present and future business strategies and the environment in which Musgrave or Westgold will operate in the future, including the price of commodities, anticipated costs and ability to achieve goals. Certain important factors that could cause actual results, performances or achievements to differ materially from those in the forward looking statements include, among others, customer risks, gold and other commodity price volatility, discrepancies between actual and estimated revenues or cost, being inaccurate or changing over time, project risks, contracting risks, dependence on key personnel, increased competition, contractual disputes, operating risks, environmental incident claims and industry accidents. Refer to Section 7 for a (nonexhaustive) discussion of potential risk factors underlying, and other information relevant to, the forward looking statements and information. Forward looking statements should, therefore, be construed in light of such risk factors and undue reliance should not be placed on them. All forward looking statements should be read in light of such risks and uncertainties. You should note that the historical performance of Musgrave or Westgold is no assurance of its future financial performance. The forward-looking statements in this Target’s Statement reflect views and expectations held only at the date of this Target’s Statement. Musgrave believes that all forward-looking statements included in this Target’s Statement have been made on a reasonable basis. However, none of Musgrave, its directors nor any other person gives any representation, assurance or guarantee that any outcome, performance or results expressed or implied by any forward-looking statements in this Target’s Statement will actually occur. Musgrave Shareholders should therefore treat all forward-looking statements with caution and not place undue reliance on them. Subject to any continuing obligations under law or the Listing Rules, Musgrave and the Musgrave Directors disclaim any obligation to revise or update, after the date of this Target’s Statement, any forward looking statements to reflect any change in views, expectations or assumptions on which those statements are based. Disclaimer as to information on Westgold The information on Westgold contained in this Target’s Statement has been prepared by Musgrave using publicly available information (including information contained in the Bidder’s Statement) and has not been independently verified by Musgrave. Accordingly, subject to the Corporations Act, Musgrave does not make any representation or warranty (express or implied) as to the accuracy or completeness of such information. Westgold maintains a website at http://www.westgold.com.au. Information contained in or otherwise accessible through this website is not part of this Target’s Statement. All references to this website in this Target’s Statement are for information purposes only. Mineral Resources, Production Target's and forwardlooking information The Mineral Resource estimates for the Break of Day, Lena, White Heat-Mosaic, Big Sky, Numbers, Leviticus, Jasper Queen, Gilt Edge, Rapier South, the Hollandaire Gold Cap and Hollandaire Copper-Gold deposits in this Target's Statement were first disclosed in Musgrave’s ASX announcement released on 31 May 2022, titled “Cue Mineral Resource Increases to 927,000 ounces". P a g e |3 Musgrave confirms that it is not aware of any new information or data that materially affects the information included in the previous announcement of these Mineral Resource estimates and that all material assumptions and technical parameters underpinning the Mineral Resource estimates in the previous announcement continue to apply and have not materially changed. The production targets and forecast financial information referred to in this Target's Statement were first disclosed in Musgrave’s ASX announcement released on 17 April 2023, titled "Potential value of the Cue Gold Project demonstrated by Stage 1 Prefeasibility Study”. Musgrave confirms that all the material assumptions underpinning the production targets and the forecast financial information derived from the production targets in the announcement continue to apply and have not materially changed. Diagrams, charts, maps, graphs and tables Any diagrams, charts, maps, graphs and tables appearing in this Target’s Statement are illustrative only and may not be drawn to scale. Effect of rounding A number of figures, amounts, percentages, prices, estimates, calculations of value and fractions in this Target’s Statement are subject to the effect of rounding (unless otherwise stated). Accordingly, the actual calculation of these figures may differ from the figures detailed in this Target’s Statement, and any discrepancies in any table between totals and sums of amounts listed in that table or to previously published figures are due to rounding. Currency All references in this Target’s Statement to “$”, "A$" “AUD” Australian dollars” are to Australian currency. Notice to Foreign Shareholders The release, publication and distribution of this Target's Statement may be restricted by law or regulation in some jurisdictions outside Australia. Accordingly, persons outside Australia who come into possession of this Target's Statement should seek advice and observe such restrictions. Any failure to comply with such restrictions may constitute a violation of applicable laws or regulations. This Target's Statement has been prepared in accordance with Australian law and the information contained in this Target's Statement may not be the same as that which would have been disclosed if this Target's Statement had been prepared in accordance with law and regulations outside Australia. Privacy and personal information Musgrave has collected your information from the Musgrave Register for the purpose of providing you with this Target’s Statement. Such information may include the name, contact details and shareholdings of Musgrave Shareholders and the names of persons appointed to act as proxy, attorney or corporate representative of Musgrave Shareholders. Without this information, Musgrave would be hindered in its ability to issue this Target’s Statement. The Corporations Act requires the name and address of Musgrave Shareholders to be held in a public register. Personal information of the type described above may be disclosed to Musgrave, Westgold and their registries, print and mail and other service providers, authorised securities brokers, Related Bodies Corporate of Musgrave and Westgold, and may be required to be disclosed to regulators, such as ASIC. Musgrave Shareholders have certain rights to access personal information that has been collected. Musgrave Shareholders should contact the Share Registry in the first instance, if they wish to access their personal information. Musgrave Shareholders who appoint a named person to act as their proxy, attorney or corporate representative should ensure that they inform that person of these matters. Musgrave Shareholder Information Line If you have any questions in relation to the Westgold Offer, please contact the Musgrave Shareholder Information Line on 1300 918 438 from within Australia or +61 3 9415 4634 from overseas on Monday to Friday between 8:30am and 5:00pm (AEST). P a g e |4 1 REASONS TO REJECT THE WESTGOLD OFFER The Musgrave Directors have considered the advantages and disadvantages of the Westgold Offer and unanimously recommend that you REJECT the Westgold Offer. The reasons for this recommendation are set out below and were included in the letters sent to Musgrave Shareholders on 26 and 28 June 2023 (Shareholder Letters). On 3 July 2023, Musgrave announced that it had entered into the Ramelius Bid Implementation Agreement with Ramelius pursuant to which Ramelius offered to acquire 100% of Musgrave Shares for one (1) Ramelius share for every 4.21 Musgrave Shares held and $0.04 in cash for every Musgrave Share held. The Musgrave Directors consider the Ramelius Offer to be superior to the Westgold Offer. Each Musgrave Director unanimously recommends that Musgrave Shareholders accept the superior Ramelius Offer (in the absence of a Superior Proposal). Each Musgrave Director has agreed to accept all Musgrave Shares they own or control into the Ramelius Offer. Each Musgrave Director intends to REJECT the Westgold Offer in relation to any Musgrave Shares they own or control. The Musgrave Directors acknowledge that there may be risks associated with not accepting the Westgold Offer, as highlighted in Section 7.3 of this Target’s Statement, and that each Musgrave Shareholder’s risk profile, investment strategy, tax position and financial circumstances are different. If in any doubt as to what to do, Musgrave Shareholders should obtain financial advice from their broker or financial adviser on the Westgold Offer and taxation advice on the effect of accepting the Westgold Offer. 1.1 The implied Westgold Offer Consideration price is less than that offered under the Ramelius Offer The implied Westgold Offer Consideration price is less than that offered under the Ramelius Offer. The Ramelius Offer is one (1) Ramelius share for every 4.21 Musgrave Shares held and $0.04 in cash for every Musgrave Share held, which as at the Last Practicable Date has an implied price of $0.34 per Musgrave Share. The Ramelius Offer also provides certainty to Musgrave Shareholders due to the cash component of the consideration. As at the Last Practicable Date, the implied Westgold Offer price is $0.268 per Musgrave Shares which is substantially less than the Ramelius Offer price. The Musgrave Directors consider the Ramelius Offer to be superior to the Westgold Offer. Musgrave Shareholders should also be aware that all Musgrave Directors have entered into binding pre-bid acceptance agreements in relation to the Musgrave Shares they own or control (14,372,664 Musgrave Shares (2.43%) in total) to accept, or procure the acceptance of, the Ramelius Offer by no later than 5 days after the commencement of the Ramelius Offer period, subject to the ability to terminate the agreements if a Superior Proposal arises before 5 days after the commencement of the Ramelius Offer period. Musgrave's largest shareholder, Westminex Pty Ltd (and associated entities1) holding 57,338,325 Musgrave Shares (9.7%), has also entered into a binding pre-bid acceptance 1 Westminex Pty Ltd (17,313,364 Musgrave Shares), Sacrosanct Pty Ltd (8,750,000 Musgrave Shares), Auralandia Pty Ltd (7,060,670 Musgrave Shares), Albers Family Custodian Pty Ltd (5,500,000 Musgrave Shares), Great Australia Corporation Pty Ltd (3,322,438 Musgrave Shares), Cue Diversified Pty Ltd (2,799,118 Musgrave Shares), Great Missenden Holdings Pty Ltd (1,727,668 Musgrave Shares), National Energy Pty Ltd (1,350,000 Musgrave Shares), Natural Resources Group Pty Ltd (1,342,265 Musgrave Shares), Goldsborough Pty Ltd (1,150,000 Musgrave Shares), TransAustralia Group Pty Ltd (1,150,000 Musgrave Shares), Ultragas Pty Ltd (903,703 Musgrave Shares), Bass Strait Group Pty Ltd (700,000 Musgrave Shares), Capricorn Mining Pty Ltd (681,590 Musgrave Shares), Ultragas Resources Pty Ltd (650,000 Musgrave Shares), 500 Custodians Company Pty Ltd (605,917 Musgrave Shares), Ernest Geoffrey Albers & Pamela Joy Albers (557,898 Musgrave Shares), Albers Custodian Company Pty Ltd (495,917 Musgrave Shares), Gascorp Australia Pty Ltd (450,000 Musgrave Shares), Seaquest Petroleum Pty Ltd (358,823 Musgrave Shares), Australis Finance Pty Ltd (265,795 Musgrave Shares), and Hawkestone Resources Pty Ltd (203,159 Musgrave Shares). P a g e |5 agreement in relation to the Musgrave Shares it owns or controls to accept, or procure the acceptance of, the Ramelius Offer by no later than 5 days after the commencement of the Ramelius Offer period, subject to the ability to terminate the agreements if a Superior Proposal arises before 5 days after the commencement of the Ramelius Offer period. 1.2 The implied Westgold Offer Consideration price is below the Musgrave Share price The implied Westgold Offer price is below the Musgrave Share price.2 As at 27 June 2023, the last practicable day prior to the release of the Shareholder Letter dated 28 June 2023, the Musgrave Share price closed at $0.29 compared to the implied Westgold Offer price of $0.268. Under the Westgold Offer, Musgrave Shareholders will receive one (1) Westgold share for every 5.37 Musgrave Shares held, which implied a value of $0.298 per Musgrave Share based on Westgold's closing price on 5 June 2023, being the last day prior to the announcement of the Westgold Offer by Westgold on 6 June 2023 (Announcement Date). The following table illustrates the implied premia represented by the implied Westgold Offer price on a 'like for like' basis relative to the historical trading prices of Westgold Shares and Musgrave Shares on the ASX prior to the Announcement Date. 27 June 2023 5 June 2023 5 Day VWAP * 30 Day VWAP * 60 Day VWAP * Westgold Share Price $1.44 $1.60 $1.558 $1.569 $1.412 Westgold Offer Ratio 5.37 x 5.37 x 5.37 x 5.37 x 5.37 x Implied Westgold Offer price $0.268 $0.298 $0.290 $0.292 $0.263 Musgrave Share Price $0.290 $0.255 $0.245 $0.232 $0.221 (8%) 17% 18% 26% 19% Premia (Discount) / * Volume weighted average price (VWAP) up to and including 5 June 2023, the last trading day prior to the Announcement Date. The following chart shows that since the Announcement Date, the Musgrave Share price is trading above the implied Westgold Offer price.3 2 As at the Last Practicable Date and as at 27 June 2023. As you are being offered Westgold Shares as consideration for your Musgrave Shares, the implied value of the Westgold Offer will vary with the price at which Westgold Shares trade on the ASX. The premia and implied Westgold Offer price presented in this Target Statement are based on the Westgold Offer Consideration being 1 (one) Westgold Share for every 5.37 of your Musgrave Shares. 3 As you are being offered Westgold Shares as consideration for your Musgrave Shares, the implied value of the Westgold Offer will vary with the price at which Westgold Shares trade on the ASX. The premia and implied Westgold Offer price presented in this Target Statement are based on the Westgold Offer Consideration being 1 (one) Westgold Share for every 5.37 of your Musgrave Shares. P a g e |6 Musgrave Share Price vs Implied Westgold Offer price – Since Announcement Date $0.35 $0.315 $0.305 $0.300 $0.310 $0.310 $0.310 Musgrave Share Price - Since Announcement Date $0.305 $0.305 $0.305 $0.305 $0.295 $0.295 $0.295 $0.295 $0.30 $0.285 $0.278 $0.268 $0.277 $0.277 $0.268 $0.272 $0.264 $0.25 $0.264 $0.268 $0.268 $0.253 $0.290 $0.267 $0.268 $0.263 $0.253 $0.250 Implied Westgold Offer Price - Since Announcement Date $0.20 $0.15 6-June-23 9-June-23 14-June-23 19-June-23 22-June-23 27-June-23 The trading price of Musgrave Shares on the ASX for the past 12 months compared to the implied Westgold Offer price as at the Announcement Date and 27 June 2023, the last practicable date prior to the release of the Shareholder Letter dated 28 June 2023 is presented below. Musgrave Share Price vs Implied Westgold Offer price Metrics – Past 12 Months $0.35 Implied WestgoldOffer Price - At Announcement Date ($0.298) $0.30 Implied Westgold Offer Price - 27 June 2023 ($0.268) $0.25 $0.20 Musgrave Share Price - Past 12 months $0.15 $0.10 $0.05 $0.00 27-Jun-22 Westgold Announcement Date 27-Aug-22 27-Oct-22 27-Dec-22 27-Feb-23 27-Apr-23 Although many factors affect the price of any given security, if the Westgold Offer is not successful, the Musgrave Share price may fall below the implied Westgold Offer price and trade back at those levels seen prior to the Announcement Date. P a g e |7 27-Jun-23 For completeness, Musgrave notes that the Westgold Share price has traded in the range of $0.695 to $1.74 in the previous 12 months and the Westgold Offer was a premium to Musgrave's Share price on 2 June 2023 as outlined in the Bidder’s Statement. 1.3 The Westgold Offer is opportunistic given Musgrave's potential Musgrave holds approximately 310km2 of highly prospective tenements in the Cue area of the Murchison region of Western Australia. Over the past 7 years Musgrave has completed over 190,000m of highly successful drilling leading to the delineation of significant gold mineral resources (inferred and indicated) of 927,000 ounces (JORC Code), including 327,000 high grade ounces at 10.4g/t at Break of Day and White Heat-Mosaic. This high-grade resource forms the foundations of the Stage 1 Prefeasibility Study (PFS) which demonstrates that Musgrave’s Cue Gold Project is one of the highest margin, undeveloped gold projects in Australia. The Cue Gold Project has an internal rate of return (IRR) of 95% (pre-tax) and the potential to deliver over 65,000 ounces of gold annually over an initial 5-year period, including 80,000oz/year for the first 3 years, at an AISC of A$1,315/oz and AIC of A$1,675/oz (based on full amortisation of start-up capital). The Cue Gold Project generates cashflow of $314M (before tax) and an EBITDA of $528M (at A$2,600/oz) with a C1 cost of A$934/oz. With this cost profile (based on Q1 2023 capital and operating cost assumptions), the Cue Gold Project is expected to be in the lowest cost quartile of gold producers in Australia. Furthermore, the success of Musgrave’s existing exploration program remains on track to deliver resource growth and support an extended mine life. Murchison region, project location plan P a g e |8 Musgrave released the results of its Stage 1 PFS on its Cue Gold Project on 17 April 2023 under the announcement released on ASX titled "Potential value of the Cue Gold Project demonstrated by Stage 1 Prefeasibility Study". The key metrics of the Stage 1 PFS are described in the table below, which includes the NPV, EBITDA, C1 costs, AISC and pre-production capital expenditure costs. Please refer to Musgrave's ASX announcement titled "Potential value of the Cue Gold Project demonstrated by Stage 1 Prefeasibility Study" released on 17 April 2023 for the full details of the Stage 1 PFS. Musgrave Shareholders are encouraged to read that announcement in P a g e |9 detail, in particular the material assumptions underpinning the Stage 1 PFS disclosed throughout that announcement and the extensive risks disclosures in section 18 of that announcement (pages 105 – 111), including but not limited to risks relating to capital expenditure costs required to develop the Cue Gold Project, economic factors, inflation and supply chain risks, mineral resource risks and regulatory risks. The production target and forecast financial information referred to in the Stage 1 PFS comprise Indicated Mineral Resources (approximately 77%) and Inferred Mineral Resources (approximately 23%). The production has been scheduled such that <7% by tonnage and <1.7% by gold ounces of the Inferred material is mined and processed in the first year (during the payback period), with the remainder mined through to th