Metals Exploration Reports 24% Completion at La India Gold Project, On Track for Q4 2026 Production

• Development at 24% completion at end of November, compared to 20% forecast, targeting Q4 2026 first gold production
• Processing plant capacity increased to 1.8 million tonnes per annum from 1.4 million tonnes, raising total capital expenditure to US$165 million from US$160 million
• Land rights agreement reached with artisanal mining cooperative, with all artisanal miners departed from the open pit area
• Run-of-mine pad completed with 2,045 tonnes of ore at 1.14 grammes per tonne gold stockpiled, approximately 500,000 tonnes forecast before commissioning
• No lost time injuries recorded since construction commencement

Metals Exploration (AIM: MTL) is a gold production, development and exploration company with assets in the Philippines and Nicaragua. The company operates the Runruno gold mine in the Philippines and acquired the La India gold project in Nicaragua in early 2025. La India development is funded by Runruno cash flow, with FY2025 capital expenditure at approximately US$70 million and remaining costs expected to be funded from FY2026 Runruno operations.

Development Schedule and Construction Status

Development at La India reached 24% completion at the end of November, compared to a forecasted 20%. The company has allocated approximately US$70 million in capital expenditure for FY2025, with remaining development costs to be funded through Runruno mine cash flow during FY2026. First gold production is scheduled for Q4 2026.

Plant foundations are 30% complete, with work progressing in the crushing, grinding and carbon-in-leach tank areas. The carbon-in-leach tanks are expected on site in Q1 2026. Power connection to the site from the main grid has been agreed with Nicaraguan authorities. The main transformer, the remaining long-lead item, has been ordered for Q3 2026 delivery. Plant energisation is scheduled for H2 2026, with commissioning to begin in October 2026.

Bulk earthworks for the processing plant and technical services area are complete. Access to the tailings storage facility is 90% complete. Pre-stripping in the northern phase of the La India open pit is 17% complete. The company reported that mapping and channel sampling during pre-stripping work have identified an extension to the initial pit design.

Processing Plant Capacity and Infrastructure

Processing plant throughput capacity has been increased from 1.4 million tonnes per annum to 1.8 million tonnes per annum. The capacity increase is in anticipation of future growth opportunities and required acquisition of a new elution circuit and gold room rather than equipment from the Rock Creek plant package. Total capital expenditure increased to US$165 million from US$160 million.

The Rock Creek plant equipment arrived on site in August 2025 following its March 2025 acquisition. Equipment includes crushers, conveyors, a ball mill, gravity circuit, smelting equipment and laboratory facilities. Major components have been unpacked and are being prepared for installation. New motors and gear drives have been acquired for the grinding circuit. The carbon-in-leach tanks are scheduled to arrive in Q1 2026.

CEO Darren Bowden stated:

"We are extremely pleased with the continued momentum at La India, where development and construction activities are progressing on or ahead of schedule. Major earthworks have been completed, key infrastructure is taking shape, and concrete foundations are well advanced in the crushing, grinding and CIL tank areas. We have already begun stockpiling early ore feed on the ROM pad."

Several camp accommodation buildings have been completed and are operational. The on-site laboratory building is nearing completion with operations scheduled for February 2026. Intertek has been selected to manage the facility. The laboratory will reduce assay turnaround times from the current eight weeks required for Canadian laboratory processing.

Community Relations and Site Preparation

The company reached an agreement to acquire land rights from the local artisanal mining cooperative. All artisanal miners have departed from the La India open pit area. Negotiations continue regarding other tenement areas that remain occupied.

The company operates social programmes including a fresh drinking water initiative, funding for a new fire station, alliances with the Municipal Ministry of Health and White Cross, the Happy Childhood Programme, and healthcare provision for older adults in the community. These programmes are intended to benefit communities associated with the operations.

Run-of-mine pad construction is complete and initial ore stockpiling has commenced. Approximately 2,045 tonnes of ore averaging 1.14 grammes per tonne gold are currently stockpiled. This ore came from a vein discovered during road access construction. The construction schedule forecasts approximately 500,000 tonnes of ore will be delivered to the run-of-mine pad before commissioning activities. No lost time injuries have been recorded since construction commencement.

Next Steps

Plant foundations and carbon-in-leach tank installation continue, with tanks expected in Q1 2026. Tailings storage facility design is 80% complete with tenders issued for stage 1 dam construction. The company expects final government permits for the tailings storage facility design imminently. A new access road to the tailings storage facility is 90% complete. The company will issue an exploration update in February 2026, coinciding with on-site laboratory operations commencement. Plant energisation is scheduled for H2 2026 with commissioning activities beginning in October 2026, targeting first gold production in Q4 2026.

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