8 WESTGOLD RESOURCES LIMITED YEAR ENDED 30 JUNE 2025 CORPORATE ACTIVITY WESTGOLD AND KARORA MERGER On 1 August, 2024 following receipt of approvals by the Ontario Superior Court of Justice in Canada, Karora shareholders, the Foreign Investment Review Board and the Takeovers Panel - Westgold merged with Canadian TSX-listed Karora Resources Inc. (Karora). The merger created an exclusively Western Australian focussed midtier gold company, with Westgold taking operational control and ownership of the Karora assets – including its 100% interest in the Beta Hunt Mine, its 100% interest in the Higginsville processing and gold mining operations, and its Lakewood processing facility. (Westgold subsequently divested the Lakewood mill on 1 April 2025. The merger propelled Westgold into the ranks of the ASX200, materially enhancing our capital markets profile - with increased scale, trading liquidity and quality attractive to investors across the Australian (ASX) and Canadian (TSX) stock exchanges. Funded through a combination of cash reserves and equity, Karora shareholders received 2.524 Westgold ordinary shares, C$0.68 in cash, and 0.30 of a share in Culico Metals Inc., a wholly owned subsidiary of Karora, for each Karora common share held at the closing of the transaction. Fair value of the share consideration was $1,243 million and cash consideration paid was $126 million. The total consideration for the transaction was $1,369 million. ORE PURCHASE AGREEMENT WITH NEW MURCHISON GOLD On 12 December, 2024 Westgold executed a gold ore purchase agreement (Agreement) with New Murchison Gold (ASX: NMG) in which we agreed to purchase between 30,000 and 50,000 tonnes of gold ore per month from NMG’s planned open pit operation at Crown Prince. On 8 September 2025, subsequent to the reporting period, NMG issued its first Collection Notice for 10kt of Crown Prince ore in accordance with the Agreement, triggering the Commencement Date. The introduction of ore from Crown Prince in FY26 will increase throughput at the Bluebird mill. Westgold is a related party (16%) shareholder of NMG. SYNDICATED FACILITY INCREASED TO $300M On 28 October, 2024 Westgold executed a commitment letter with ING Bank (Australia) Limited and Societe Generale to increase an existing $100M Syndicated Facility Agreement to $300M through the addition of a new $200M facility. The new $200M facility strengthened Westgold’s balance sheet, providing access to $300M of undrawn facilities for general corporate activities. Importantly, Westgold was not required to enter into mandatory gold hedging as part of the new facility. During Q2 we drew down $50 million from the corporate facilities to balance the working capital requirements for operations and growth of our expanded business. This left a balance of $250 million in undrawn capacity. Combined with cash, bullion and liquid investments of $364 million, Westgold ended the financial year with $614 million in available liquidity. SALE OF LAKEWOOD MILL On 1 April, 2025 we divested the Lakewood mill acquired in the merger with Karora Resources, to Black Cat Syndicate Limited (ASX: BC8) for a total consideration of $85M. The consideration comprised $70M in cash and $15M in BC8 scrip issued at $0.76 per share ($1.195 per share as at 16 September 2025). We received $25M in cash on 31 March 2025 and $20M on 30 June 2025, with the final cash payment of $25M due on 30 November 2025. Importantly, Westgold retains priority access to process up to 200ktpa of ore at Lakewood via a toll-treating agreement (for a period of two years). The divestment of Lakewood is consistent with our corporate strategy to focus on our larger, lower-cost mines and mills. Prioritising higher grade Beta Hunt ore through the larger, lower-cost 1.6 Mtpa Higginsville mill will serve to lower the operating costs of our Southern Goldfields Operations.
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