Metals Exploration Signs Agreements to Explore Batong Buhay Copper-Gold Project in the Philippines

• Metals Exploration plc has secured exclusive rights to explore, develop and operate the Batong Buhay Porphyry Copper-Gold Project, a 440-hectare licence area in Kalinga Province, Northern Luzon, Philippines
• Approvals from the Balatoc (Kalinga) Tribe and support from the Philippine Mining Development Corporation (PMDC) have been received, enabling exploration work to begin immediately
• Historical drilling at the Dickson and Maalinao North targets returned mineralisation from surface across 21 diamond drillholes completed in 1969
• A new joint venture gives Metals Exploration an 80% interest in the project company, with the Balatoc (Kalinga) Tribe holding a 20% free carried interest
• A drill programme is anticipated to commence in the second half of 2026, following initial mapping, sampling and survey work

Metals Exploration plc (AIM: MTL) is a United Kingdom-based precious and base metals company involved in the production, development and exploration of mineral projects, with assets in the Philippines and Nicaragua.

Securing Exclusive Rights to Explore Batong Buhay Porphyry Copper-Gold Project Philippines

Metals Exploration has entered into a series of agreements granting exclusive rights to explore, develop and operate the Batong Buhay Porphyry Copper-Gold Project, located in Barangay Balatoc, Municipality of Pasil, Kalinga Province, Northern Luzon. The project covers a 440-hectare licence area. It was originally discovered in 1934 and mined as an underground gold operation before World War II, with copper-gold porphyry potential later recognised in 1969, when the historical drilling referenced in this announcement took place. Mining at the Dickson deposit itself occurred between 1979 and 1984.

Two approvals were required to proceed. The first is an Indigenous Peoples' Order from the Balatoc (Kalinga) Tribe, the recognised indigenous community whose ancestral domain covers the project area. The second is support from PMDC, the government owned corporation that holds the exploration permit. With both received, initial exploration work has begun, and a drill programme is targeted for the second half of 2026, subject to the Philippine Mines and Geosciences Bureau finalising the exploration permit.

Chief Executive Officer Darren Bowden commented:

"Following extensive due diligence, it is the Company's view that the Batong Buhay Project is one of the best, undeveloped advanced porphyry copper-gold targets in the Philippines, having returned significant mineralised widths and grades from historical drill testing and production."

Historical Drilling and Geological Highlights Confirming Dickson and Maalinao North Porphyry Targets

Batong Buhay hosts at least two porphyry copper-gold deposits, Dickson and Maalinao North. Of the 21 historical diamond drillholes completed across both targets, standout results include 160.93 metres grading 0.92% copper and 0.60 grammes per tonne gold at Dickson, and 198.12 metres grading 1.15% copper and 0.10 grammes per tonne gold at Maalinao North. These are also expressed as copper equivalent, a single combined percentage used for comparing deposits containing more than one metal, which reached 1.48% and 1.24% respectively for these two intervals. The company notes that historical drilling showed mineralisation continuing from surface, with all holes ending while still within mineralised rock.

Dickson contains a high-grade core roughly 220 metres across, averaging 1.43% copper and 1.33 grammes per tonne gold, surrounded by a lower-grade outer zone averaging 0.5% copper. A historical estimate places the wider Dickson deposit at 86.9 million tonnes grading 0.60% copper and 0.25 grammes per tonne gold. This estimate, along with the high-grade core figures, is described as non-JORC compliant, meaning it has not been verified against the current industry reporting standard used in Australia and several other markets, and should be treated as historical data pending further work. Maalinao North is described as tabular in shape, measuring approximately 800 by 250 metres, and remains open at depth.

The zone of ground between Dickson and Maalinao North has not previously been drill tested. Metals Exploration states it will assess whether this area connects the two deposits into a single mineralised system, with the potential to increase the overall resource size. A separate gold-bearing vein system, referred to as Level 5, has also been identified near Dickson.

Corporate Structure and Financial Terms Including Indigenous Community Partnership and PMDC Royalty Obligations

The project will be operated through Faratuk Exploration and Mining Corporation (FEMC), a company jointly formed by Metals Exploration's subsidiary FCF Minerals Corporation and the Balatoc (Kalinga) Tribe, Inc. (BKTI). Metals Exploration holds an 80% interest in FEMC, while BKTI holds a 20% free carried interest that requires no financial contribution from the tribe. Metals Exploration also retains the right to establish its own wholly owned processing company, which would hold first rights to process all ore from the project, allowing the company to capture processing margin in addition to its share of FEMC.

Financial obligations under the agreements are structured around production. FEMC will pay PMDC a royalty of 2% of net smelter returns for the first 10 years of production, rising to 3% thereafter, alongside a signing fee of approximately US$800,000 and an annual fee of approximately US$160,000 credited against future royalties. BKTI will receive a 1% gross output royalty and, once commercial production begins, an annual community development contribution equal to 2.5% of yearly operating costs, above the 1.5% minimum required under Philippine law. During exploration, 6% of the annual exploration budget will go toward local community programmes, alongside approximately US$1.6 million allocated to road access improvements over the first two years.

Committed minimum exploration expenditure totals approximately US$500,000 in year one and US$1 million in year two, building to a five-year programme total of approximately US$16 million.

CEO Darren Bowden added:

"The Company welcomes the support of both the Balatoc (Kalinga) Tribe and the PMDC in reaching these agreements; which will enable modern exploration to commence, and hopefully development, of this excellent Project in the near future."

Outlook

Pre-drilling work is underway, including LIDAR and drone-based surveys, geological mapping, rock chip sampling and regional soil sampling, with results to be incorporated into a geological model ahead of drill target design. The drill programme is anticipated to commence in the second half of 2026, pending finalisation of the exploration permit (EXPA-079) by the Philippine Mines and Geosciences Bureau.

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