Macro Metals, an Australian iron ore company, secured the mining service contract for the Extension Iron Ore Project.

Summary of the Mining Services Contract for the Extension Iron Ore Project Awarded to ASX-Listed Small Iron Ore Company Macro Metals

1. Project Overview

• Location and Scale

 ◦ The project is located in the East Pilbara region of Western Australia, just 2 km from BHP's Yandi Iron Ore operations and 20 km from Rio Tinto's Yandicoogina mine.

 ◦ It comprises three mining leases with a total area of 27.6 square kilometers, located 270 km from the Port Hedland port, accessible by truck to the Utah Point bulk terminal.

• Resource Estimate

 ◦ The resource estimate completed in 2019 shows that the project has 16.1 million mt of indicated resources with an iron grade of 54.2% (roasted iron 60.49%), SiO₂ 5.7%, Al₂O₃ 5.6%, phosphorus 0.046%, and loss on ignition (LOI) 10.4% (using a 53% iron grade cutoff).

 ◦ After removing <1mm particles through dry screening, the resource was upgraded to 11.29 million mt, with the iron grade increasing to 57.16% (roasted iron 63.84%), SiO₂ reduced to 3.6%, Al₂O₃ 4.63%, and phosphorus 0.05%.

2. Core Contract Terms

• Scope of Services and Partners

 ◦ Exclusive technical services: MMS is responsible for exploration, permit applications, and technical verification, using a cost-plus 15% billing model.

 ◦ Joint mining operations: MMS and strategic partner RE:GROUP jointly undertake mine construction, drilling and blasting, mining, loading, and transportation services (cost-plus 15%).

 ◦ Exclusive processing services: MMS provides crushing and screening services under a "Build-Own-Operate" (BOO) model, charged at market terms.

• Economic Terms

 ◦ The total contract value will be announced after MMS completes the project development plan and technical verification.

 ◦ Equity option: Macro Metals is granted an option to acquire 27.3% equity in the project (subject to shareholder approval), exercisable before project commissioning, with the consideration being the issuance of 175 million company shares.

3. Technical Verification and Advantages

• Metallurgical Test Verification

 ◦ Verification of historical test results: The iron grade increased to 57.16% after screening, with low phosphorus content (0.05%), suitable for blending with high-phosphorus iron ore for export.

 ◦ Logistics advantage: Utilizing a logistics center 28 km from the port (including accommodation and raw material storage), providing stockyard and blending opportunities, reducing transportation costs.

• Resource Expansion Potential

 ◦ Plans to explore unexplored mineralized outcrops to extend mine life.

 ◦ Aims to apply for an annual export quota of 1.5-2 million mt, subject to negotiation with the Pilbara Ports Authority (PPA).

4. Management Team and Strategic Significance

• Management Statements

 ◦ Chairman Tolga Kumova: Emphasized that the contract reflects MMS's professional capabilities, with technical services generating immediate cash flow, and the project's location and low-phosphorus characteristics provide advantages for blended products.

 ◦ Managing Director Simon Rushton: The partnership with RE:GROUP is solid, and future collaborations will focus on developing more bulk commodity projects; MMS has participated in bids across multiple mining areas in Western Australia with positive feedback.

• Business Expansion

 ◦ MMS recently completed its first revenue-generating project (repairing a client's crushing plant), demonstrating its technical capabilities.

 ◦ The company is positioned as a diversified mining services provider, covering the entire chain from mining, processing, transportation to shipping.

5. Project Execution Plan

• Short-Term Actions

 ◦ Assess existing permit status, accelerate final approvals, and push for commercial production.

 ◦ Apply for bulk sample transportation permits for trial exports.

 ◦ Optimize the Port Hedland transport corridor and jointly develop a transportation plan with RE:GROUP.

 ◦ Develop a mine development plan, mining timetable, and execution plan.

6. Equity Structure and Compliance

• Project Ownership

 ◦ The project is held by private company Project Rusty Pty Ltd, with Macro's two directors (Simon Rushton and Rob Jewson) each holding 27.3% equity.

 ◦ Subject to shareholder approval under ASX Listing Rules 10.1 (related party transactions) and 10.11 (option exercise).

7. Resource Estimate Technical Details (JORC Standard)

• Data Basis

 ◦ Drilling data: Includes 333 reverse circulation drill holes (3,992 meters) and 56 diamond drill holes (501 meters), with sampling intervals of 0.25-2 meters.

 ◦ Analytical methods: X-ray fluorescence (XRF) for major elements and thermogravimetric analysis (TGA) for LOI.

• Modeling and Classification

 ◦ Inverse distance cubed (ID3) interpolation was used, with block sizes of 1.25m×1.25m and search radii of 125-250 meters.

 ◦ Resources classified as indicated, based on geological continuity, data quality (100×100 meter infill drilling), and consistency in modeling methods.

8. Market Positioning and Competitive Analysis

• Product Benchmarking

 ◦ The screened iron ore quality benchmarks against Rio Tinto's Robe River Fines, FMG's blended fines, and other Platts 58% index benchmark products.

 ◦ Similar to the operational models of nearby small trucking projects such as Mineral Resources' Wonmunna and Iron Valley.

9. Risks and Compliance Statements

• Compliance Statements

 ◦ The resource estimate was completed by Widenbar and Associates, compliant with the JORC 2012 standard, with data verification including duplicate samples and standard sample analysis.

 ◦ Independent geologists Lynn Widenbar and Robert Jewson (company director) signed the report as Competent Persons.

10. Company Background

• Macro Metals Limited

 ◦ ASX-listed under code M4M, with business covering mineral exploration, development, and mining services.

 ◦ Subsidiary MMS provides end-to-end services (mining, crushing, transportation, shipping) and holds a portfolio of iron ore and manganese assets.

Summary

The contract secures long-term revenue for Macro Metals through a dual profit model of technical services and mining operations (cost-plus + market rates), combined with the advantages of low-phosphorus ore blending and port logistics, giving it strong market competitiveness. The project has clear resource potential and a well-defined execution plan, and if approved and expanded successfully, it is expected to become a core growth driver for the company.