Metals Exploration Advances La India Process Plant to 50% Completion as US$27 Million Equipment Loan Is Drawn Down

• First gold production at La India remains on track for December 2026.
• Process plant installation (SMPEI) is approximately 50% complete, with the ball mill installed in its final location and the SAG mill ready to be lifted into position.
• Metals Exploration secured a US$27 million equipment loan from Banco de America Central S.A, a Nicaraguan bank, with US$20.2 million drawn down to date.
• The project has reached approximately 2 million cumulative hours worked without a lost-time injury, as at 15 August 2026.
• Shipping delays linked to the conflict in Iran are affecting some imported equipment, with the Company evaluating alternative logistics solutions.

Metals Exploration plc (AIM: MTL) is a United Kingdom-based gold company with assets in the Philippines and Nicaragua. The Company operates the Runruno gold mine in the Philippines, where 2026 production guidance of 40,000 to 48,000 ounces is trending toward the upper end following access to higher-grade ore. In Nicaragua, the Company is constructing its second mine, La India, which is expected to begin gold production in December 2026. Metals Exploration is listed on the AIM market of the London Stock Exchange.

La India Process Plant Installation Advances to 50% Completion With Ball Mill Installed and SAG Mill Ready for Lifting

Installation of the process plant at La India, covering the structural, mechanical, piping and electrical work needed to assemble the plant's buildings and equipment, is approximately 50% complete. The work is carried out by local contractor Duroblock S.A, with Degbed Company Limited as specialist mill installation contractor.

In the grinding section, the building structure is complete and the ball mill has been fully installed, including its shells, discharge end, feed end and cyclone cluster. The ball mill and SAG mill are the equipment used to break down ore before gold extraction; the SAG mill's support cradles and bearings are now in place, and the mill is ready to be lifted into its final position. Tank fit-out for the carbon-in-leach (CIL) circuit, used to recover gold from processed ore, has reached 88% completion.

Metals Exploration CEO Darren Bowden said:

"Construction at La India continues to make strong progress, with installation of the process plant advancing across multiple fronts. The ball mill is in its final position, the SAG mill is ready to follow, and the CIL tank fit-out is nearing completion."

US$27 Million Equipment Loan Secured From Local Nicaraguan Bank With US$20.2 Million Drawn Down Supporting Mining Fleet Financing

Metals Exploration, through its subsidiary La India Gold, S.A, has secured a US$27 million equipment loan from Banco de America Central S.A to finance the mining fleet at La India. An initial US$20.2 million has been drawn down, with the remaining US$6.8 million to follow as further equipment arrives in the country. The loan has a five-year term maturing in August 2031, with a 12-month grace period on principal before 48 equal monthly instalments begin.

Metals Exploration has already spent US$30.5 million acquiring its Caterpillar mining fleet from its own resources, with a final US$0.7 million payment due next month. The loan carries a variable interest rate linked to a benchmark lending rate plus a fixed margin, with an initial rate of 7.00% and a floor of 6.85% for the life of the loan, and is secured against the mining fleet together with a corporate guarantee from Metals Exploration.

Metals Exploration CEO Darren Bowden said:

"Alongside this physical progress, we have also successfully completed a US$27 million debt facility with Banco de America Central S.A, a local Nicaraguan bank and received an initial drawdown of over US$20 million, reimbursing the majority of the equipment capital committed from our own resources to date and significantly strengthening the Company's cash position."

Logistics Delays From Iran Conflict Disrupting International Shipping Being Managed Through Alternative Solutions Ahead of December 2026 First Gold

Metals Exploration has reported delivery delays to some imported equipment and materials, caused by disruption to international shipping linked to the conflict in Iran, which has affected shipping schedules, port congestion and freight availability across the region.

The Company's owner-operator mining fleet currently includes 10 CAT 777 haul trucks and two CAT 6020 excavators on site and operational, along with a bulldozer, motor grader and compactor. A further five haul trucks, a third excavator, two wheel loaders, a telehandler and a second bulldozer remain in transit or in manufacture. Management has stated that the impact to date has been managed within the overall construction programme.

Metals Exploration CEO Darren Bowden said:

"Whilst we are managing some logistics disruption affecting certain imported items, linked to the wider impact of the conflict in Iran on international shipping, we continue to work closely with our suppliers to keep deliveries on track."

The Company is evaluating alternative logistics solutions to mitigate the risk of further disruption to the remaining equipment deliveries.

Milestones and Next Steps

Beyond the process plant and financing, other construction work at La India continues. Bulk earthworks are 93% complete and civil foundations are 92% complete, while pre-stripping of the open pit has reached 71%. The tailings storage facility is approximately 60% complete, and site infrastructure, including the mine office, water treatment plant and camp facilities, is largely in place, with the camp's kitchen building expected on site in September 2026. A 2 megawatt grid connection to Nicaragua's national electricity provider has been completed and energised, with the main substation targeted for completion in December 2026. Approximately 244,000 tonnes of ore is stockpiled ahead of commissioning, and engineering for the project is now complete.

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