Brisbane, Australia, July 22, 2026 - (ABN Newswire) - The Independent Board Committee of Far East Gold Ltd (ASX:FEG) (OTCMKTS:FEGDF) has lodged a Second Supplementary Target's Statement, responding to the Third Supplementary Bidder's Statement (dated 17 July 2026) and the Fourth Supplementary Bidder's Statement (dated 21 July 2026) released by Xingye Gold (Hong Kong) Mining Company Limited (Xingye).
The Independent Expert, Lonergan Edwards & Associates Limited (LEA), reconfirms its opinion that the Offer is neither fair nor reasonable. The Independent Board Committee unanimously recommends that shareholders REJECT the Offer and TAKE NO ACTION in relation to the Offer.
The Offer currently remains at A$0.13 per share (Offer Price). Any increase in the Offer Price to A$0.15 per share (Conditional Offer Price) is subject to Xingye obtaining relevant interests in more than 50% of FEG Shares (on a fully diluted basis) by 29 July 2026 (the Acceptance Threshold). There is considerable UNCERTAINTY as to whether Xingye will obtain the acceptances required to achieve the Acceptance Threshold. Both the Offer Price and the Conditional Offer Price remain well below LEA's assessed value range of A$0.324 to A$0.444 per share (mid-point A$0.385).
The view of the Independent Board Committee remains that the Offer is opportunistic and materially undervalues FEG.
HIGHLIGHTS
- FEG has received a non-binding, incomplete and conditional indicative proposal in relation to a potential project-level transaction for the Trenggalek Project, which has been valued by that proposal at US$40 million.
- The Independent Expert, LEA, reconfirms its opinion that the Xingye Offer is neither fair nor reasonable.
- The Offer and the Conditional Offer Price materially undervalue FEG and remain below the Independent Expert's valuation of A$0.324 to A$0.444 per share (mid-point A$0.385).
- Any increase in the Offer Price to A$0.15 per FEG Share is subject to the Acceptance Threshold being met. There is considerable UNCERTAINTY as to whether Xingye will obtain sufficient acceptances required to achieve the Acceptance Threshold.
- The Independent Board Committee has concerns with the Third Supplementary Bidder's Statement and the Fourth Supplementary Bidder's Statement and has addressed these concerns in the Second Supplementary Target's Statement.
- The Independent Board Committee continues to recommend that you REJECT the Offer and TAKE NO ACTION in relation to the Offer.
NON-BINDING INDICATIVE PROPOSAL RECEIVED FOR THE TRENGGALEK PROJECT
FEG confirms that it has received a non-binding, incomplete and conditional indicative proposal in relation to a potential project-level transaction for the Trenggalek copper-gold project (Trenggalek Project) in East Java, Indonesia.
Contrary to Xingye's repeated assertions that there are no credible alternative opportunities available to FEG, the Independent Board Committee notes that the proposal received is in relation to a potential project-level transaction for the Trenggalek Project, which has been valued by that proposal at US$40M (approximately A$57M). This valuation is subject to further due diligence by the third-party acquirer, who is an Indonesian party experienced in mining.
While that proposal remains incomplete, confidential and subject to further negotiation and due diligence, the Independent Board Committee considers it further demonstrates continuing third-party interest in FEG's assets and reinforces its view that Xingye'sOffer materially undervalues FEG. The existence of project level interest also demonstrates that value may be realised through strategic transactions other than a corporate takeover, notwithstanding Xingye's assertions to the contrary.
In the Independent Expert's Report, LEA (adopting the independent technical specialist valuation of SRK Consulting) valued the Trenggalek Project at A$4.9 million to A$8.1 million (preferred value A$6.5 million). The Independent Board Committee notes there isno guarantee that the potential project level transaction for the Trenggalek Project will complete.
INDEPENDENT EXPERT RECONFIRMS THE OFFER IS NEITHER FAIR NOR REASONABLE
Having considered the matters raised by Xingye in its Third Supplementary Bidder's Statement and Fourth Supplementary Bidder's Statement, LEA does not consider it necessary to alter the opinion set out in its Independent Expert's Report dated 25 June 2026, as supplemented by its Supplementary Independent Expert's Report dated 14 July 2026. LEA's assessed value of FEG is unchanged at A$0.324 to A$0.444 per share (mid-point A$0.385).
Neither the Offer Price of A$0.13 per share nor the Conditional Offer Price of A$0.15 per share falls within, or near, LEA's assessed value range, and LEA's opinion that the Offer is "not fair" and, on balance, "not reasonable" is unchanged. A comparison of the current Offer and the Conditional Offer Price against LEA's assessed value is set out in Table 1*.
The Offer has been made immediately prior to a number of important 2026 value catalysts, including the progression of the Company's flagship Idenburg Gold Project (JORC MRE of approximately 780,000 oz gold) toward an Indonesian Feasibility Study, which upon completion would see FEG increase its ownership of Idenburg to 80%. In the Independent Board Committee's view, the Offer remains opportunistically timed and priced.
CONSIDERABLE UNCERTAINTY AS TO ANY INCREASE IN THE OFFER PRICE
The Conditional OfferPrice of A$0.15 per share is payable only if Xingye obtains relevant interests in more than 50% (by number) of all FEG Shares on a fully diluted basis by 29 July 2026 and declares the Offer unconditional. There is considerable UNCERTAINTY as to whether Xingye will obtain the acceptances required to achieve the Acceptance Threshold.
Shareholders who accept the Offer therefore risk receiving only A$0.13 per share, while forgoing continued exposure to FEG's portfolio. Concerns with the Third and Fourth Supplementary Bidder's Statements (section 1.3)
The Independent Board Committee has concerns with a number of statements made in the Third Supplementary Bidder's Statement and the Fourth Supplementary Bidder's Statement. Those concerns,and the Independent Board Committee's responses, are set out in section 1.3 of the Second Supplementary Target's Statement, which shareholders should read in full.
WHAT SHAREHOLDERS SHOULD DO
The Independent Board Committee unanimously recommends that shareholders REJECT the Offer. To reject the Offer, shareholders should TAKE NO ACTION. Accepting the Offer risks receiving only A$0.13 per share and forgoing the upside as Idenburg advances toward development.
Shareholders should readthe Target's Statement dated 25 June 2026, the Supplementary Target's Statement dated 14 July 2026 and the Second Supplementary Target's Statement dated 21 July 2026, together with the Independent Expert's Report and Supplementary Independent Expert's Report, in full. The Offer closes at 7.00pm (Sydney time) on 29 July 2026, unless extended or withdrawn.
The Independent Board Committee acknowledges that there are risks associated with continued ownership of shares in the Company. You shouldconsult with your investment, financial, taxation or other independent professional advisor, if in doubt about what to do.
On behalf of the Independent Board Committee, thank you for your continued support.
*To view tables and figures, please visit:
https://abnnewswire.net/lnk/2624JX64
About Far East Gold Ltd:
Far East Gold Ltd (ASX:FEG) (OTCMKTS:FEGDF) is an Australian junior exploration company led by some of the biggest names in Australian mining. The company has secured the commercial rights for the acquisition, exploration and development of six advanced gold and copper projects in Indonesia and Australia. The Company is underpinned by combined JORC resources of 1.54Moz gold and 190Mlb copper, with ongoing drill programs aiming to significantly increase these resources.
Contact:
Justin Werner
Chairman
e:justin.werner@fareast.gold
Shane Menere
Chief Executive Officer
e:shane.menere@fareast.gold
m: + 61 406 189 672
+ 62 811 860 8378
Tim Young
Investor Relations and Capital Markets
e:tim.young@fareast.gold
m: + 61 484 247 771
Source:
Far East Gold Ltd
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