Metals Exploration Posts US$47.1 Million Quarterly Revenue as La India Construction Passes Halfway Mark

• Runruno generated Q2 2026 gold revenue of US$47.1 million and pre-tax free cash flow of US$25.2 million, with gold recovery improving to 84.4% from 77.1% in the prior quarter.
• La India construction in Nicaragua reached 56% completion, with first gold pour still targeted for December 2026.
• Project spending at La India stands at US$123.9 million of a revised US$177 million budget, funded by cash flow from Runruno.
• The company secured rights to the Batong Buhay copper-gold porphyry project in the Philippines, with pre-drilling work underway ahead of a planned H2 2026 drilling campaign.
• The company worked 1.7 million hours at La India during the quarter without a lost time injury.

Metals Exploration plc (AIM: MTL) is an United Kingdom-based gold producer with operating and development assets in the Philippines and Nicaragua. Its Runruno gold mine in the Philippines is the company's current operating asset, while its Nicaraguan subsidiary is building the La India gold project toward first production. The company also holds an exploration portfolio across both countries, including the newly acquired Batong Buhay copper-gold project in the Philippines. Shares of Metals Exploration trade on London's AIM market.

Runruno Financial Performance With US$47.1 Million Revenue and Improved Gold Recovery of 84.4%

Runruno remained the company's source of cash flow during the second quarter of 2026. Gold sales totalled 10,552 ounces at an average price of US$4,463 per ounce, generating revenue of US$47.1 million and pre-tax free cash flow of US$25.2 million. The average realised gold price and ounces sold were both lower than in the first quarter.

Gold recovery, the proportion of gold successfully extracted from processed ore, rose to 84.4% from 77.1% in the first quarter. A higher recovery rate means more gold is captured from the same amount of ore processed. All-in-sustaining costs, a broad measure of the cost to produce and sell each ounce of gold, eased to US$2,019 per ounce from US$2,067 per ounce in the prior quarter.

Cash on hand stood at US$9.0 million at the end of June, down from US$36.5 million in March, as funds were directed toward La India's construction. The company remains debt-free and holds an undrawn US$30 million gold pre-pay facility. It is also finalising a US$27 million equipment loan with a Nicaraguan bank, with the first drawdown expected in August 2026.

La India Construction Advancing to 56% Complete With First Gold Pour on Track for December 2026

Construction at La India reached 56% overall completion during the quarter. Civil foundation work was 90% complete, covering the tailings area, gold room and reagents facilities, while bulk earthworks reached 93% completion. The project's total budget was revised to US$177 million, an increase of 4%, reflecting higher logistics costs and new import duties, with US$123.9 million spent to date. First gold pour remains targeted for December 2026.

Process plant construction continued, with mechanical, piping and electrical installation underway across the site. Fit-out of the carbon-in-leach tanks, structures used to extract gold from processed ore, reached just over half complete across the ten tanks, with three units fully finished. The thickener and first detox tank arrived on site during the quarter, alongside the first three mine fleet haul trucks. Approximately 211,000 tonnes of ore had been delivered to the stockpile pad, against a 500,000 tonne target ahead of plant commissioning.

The company worked 1.7 million hours at La India during the quarter without a lost time injury. Exploration drilling continued across the district. At La India South, drilling is testing whether the deposit extends further along strike, with results to date showing wide zones of mineralisation. At the Cacao prospect, drilling has identified a zone where grades increase with depth.

Batong Buhay Copper-Gold Porphyry Project Secured in Philippines With Pre-Drilling Activities Underway

During the quarter, Metals Exploration signed agreements to develop the Batong Buhay copper-gold porphyry project in Northern Luzon, approximately 200 kilometres from Runruno. The project was drilled in the late 1970s and hosts a historical, non-JORC compliant resource of 86.9 million tonnes at 0.83% copper equivalent at its main Dickson target. A porphyry deposit forms when metal-rich fluids cool within large volumes of rock, typically producing lower grades spread across a larger tonnage than the vein-style deposits at Runruno and La India.

Pre-drilling activities are underway to determine the design of a drilling campaign, expected to begin in the second half of 2026. Historical intercepts disclosed in the release at the Dickson and Maalinao North targets show copper grades generally between 0.3% and 1.2%, along with gold credits.

Darren Bowden, CEO of Metals Exploration, said:

"Alongside this, we were delighted to secure the rights to develop the Batong Buhay Project in the Philippines, adding a significant copper-gold porphyry project to our growth pipeline. Pre-drilling activities are underway, which will be used to determine the design of a drilling campaign expected to commence in H2 2026."

Milestones and Next Steps

Runruno generated cash flow during the quarter that continues to fund La India's construction, which is past the halfway mark with first gold still targeted for December 2026. Upcoming work includes completing the carbon-in-leach tank installation, continuing mechanical erection of the process plant, and finalising the Nicaraguan equipment loan to support the mine fleet ramp-up. Drilling at La India South and Cacao is ongoing, and pre-drilling work at Batong Buhay is progressing toward a planned drilling campaign in the second half of the year.

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