Mr. Martin Horgan reports

CENTAMIN PLC ANNOUNCES SUKARI NEW LIFE OF MINE PLAN

Centamin PLC has released a new life-of-mine plan for its Sukari gold mine in Egypt.

Martin Horgan, chief executive officer, commented: "Today's new life-of-mine plan firmly re-establishes Sukari as a global Tier 1 gold asset, with long-term production above 500,000 ounces per annum at all-in sustaining costs below $1,000 (U.S.) per ounce, underscoring our dedication to maximizing free cash flow generation. This plan is not only a substantial improvement on what was previously published but, importantly, it incorporates significantly lower operational risk and delivers improved carbon abatement. This revised plan underpins our strategy to maximize the value of Sukari as the foundation for growth and diversification balanced with stakeholder returns."

Highlights

Sukari gold mine -- Tier 1 asset:

• The new life-of-mine plan (LOM plan) delivers long-term increased gold production, lower operational costs, reduced operational risk and significantly reduced carbon emissions through a combination of:
• • An improved open-pit schedule, including a 40-per-cent improvement to LOM strip ratio (6.5 times) compared with full-year 2022 (FY 2022) (10.8 times);
  • An increased underground schedule, including a 75-per-cent increase in average LOM ore mining rates (1.4 million tonnes per annum (Mtpa)) compared with FY 2022 (800,000 tonnes);
  • Connection to the Egyptian national grid, delivering an estimated $41-million (U.S.) of annual cost savings based on current diesel prices;
  • Integration of a gold gravity circuit to the processing plant, driving a 2-per-cent increase in LOM gold recoveries (89.8 per cent) compared with FY 2022 (88.2 per cent).
• Average gold production of 506,000 ounces per annum for next nine years (2024 to 2032); and 475,000 ounces per annum for life of mine (2024 to 2034), reflecting a 5-per-cent increase in LOM gold production compared with FY 2022 (441,000 oz).
• Average LOM AISC of $922 (U.S.) per ounce of gold sold, placing Sukari in the bottom half of the global cost curve and reflecting a 34-per-cent reduction in AISC compared with FY 2022 ($1,399 (U.S.)/oz).
• Average annual LOM greenhouse gas (GHG) intensity of 0.69 tonnes carbon dioxide equivalent (CO2-e) per ounce, reflecting a 39-per-cent reduction compared with FY 2022 (1.14 tonnes CO2-e per ounce).
• Multiple opportunities identified to extend the current 11-year LOM (2024 to 2034) within the Sukari underground, surface satellite deposits and EDX Nugrus exploration licences adjacent to the mine to further increase resource and reserves.
• Additional upside opportunities not included in the new LOM plan have been identified to further reduce costs and carbon emissions and to improve operational productivities and efficiencies.

2023 outlook

Full-year guidance maintained:

• In September, as part of the routine mill relines, a potential issue was identified on SAG mill 1 (SAG1) and the decision was taken to undertake pre-emptive repairs. The work was successfully completed and SAG1 has been fully operational since Oct. 1, 2023.
• As a result, production for the three months ended Sept. 30 (Q3) was 101,370 ounces. Despite being lower than the internal forecast, the buildup of high-grade material on the ROM pad and increased operational flexibility in the mine plan means that 2023 annual production guidance remains on track.
• The company will publish detailed Q3 results at 7 a.m. BST (United Kingdom time) next Thursday, Oct. 19, 2023, followed by a webcast and question-and-answer.
• Two thousand twenty-three gold production guidance is maintained with a range of 450,000 to 480,000 oz, targeting the lower end of the range.
• Two thousand twenty-three cash cost guidance is maintained with a range of $840 (U.S.) to $990 (U.S.)/oz produced and AISC guidance range of $1,250 (U.S.) to $1,400 (U.S.)/oz sold, targeting the midpoint of the ranges.
• Two thousand twenty-three adjusted capital expenditure guidance is maintained at $225-million (U.S.), which excludes $48-million (U.S.) of sustaining deferred stripping costs.

Webcast

Investor and analyst presentation

Centamin is hosting a virtual investor presentation today, Thursday, Oct. 12, 2023, for investors and analysts. The event will be hosted by Mr. Horgan, CEO, and Ross Jerrard, chief financial officer.

The event will start at 2:30 p.m. BST (U.K. time) and, including a Q&A session, is expected to end no later than 4 p.m. BST.

• Event access: To join the webcast, visit the London Stock Exchange website. Please allow a few minutes to register.
• A recording of the event and presentation material will be available on the company's website shortly after the webcast has concluded.
• Questions: During the live event, there is a tab where investors can submit questions. Should any questions arise after the event or while watching the replay, please e-mail investor@centaminplc.com.
• Presentation: If you wish to view the presentation after the event, it can be found on Centamin's website.

Sukari life-of-mine overview

Objective

The new Sukari LOM plan has been developed by Centamin's in-house technical team, supported by expert consultants, with a focus on sustaining a 500,000-ounce-per-year production rate at an optimized cost base, to maximize free cash flow generation over the LOM.

Basis of preparation

Restructuring the approach to geology at Sukari with the implementation of a dedicated mineral resource management (MRM) team has significantly improved the geological understanding of the orebody over the last three years. This improved understanding has moved Sukari from a sustained period of mineral reserve depletion to growth and as of June 30, 2022, the measured and indicated mineral resources estimate was 320 million tonnes grading 1.08 grams of gold per tonne containing 11.11 million ounces of gold, inclusive of six million ounces of mineral reserves.

The LOM plan (reserve plus resource conversion case) is based on the 2022 mineral resource and reserve statement and includes the following assumptions:

• $1,450 (U.S.)/oz reserve gold price which is consistent with the assumption used in the 2021 interim life-of-mine plan published in December, 2021;
• Mineral reserve cut-off grades are unchanged across the open pit (0.4 gram per tonne) and underground reserves (2.2 g/t);
• A long-term diesel price forecast of 75 U.S. cents/litre, based on current pricing levels and oil price forecasts;
• 25-per-cent conversion of underground resources (measured and indicated) to mineral reserves that are not already included in the underground reserve case plan. This plan includes limited material from unclassified resource targets where drill spacing between holes is greater than that required for inferred resource classification. Underground mineral resource cut-off grades is one g/t.

The National Instrument 43-101 technical report will be filed on the new LOM reserve case.

Work programs

The LOM plan amalgamated four major workstreams: optimization of the open pit; expansion of the underground mine; optimization of the processing facility; and fully replacing the use of diesel for stationary power generation.

Result

The new robust long-term plan for Sukari reduces the operating risk and carbon emissions whilst delivering increased consistent gold production of 506,000 ounces per annum average over the next nine years at a lower AISC of $956 (U.S.) per gold ounce sold, placing Sukari in the bottom half of the global cost curve, driving margins and free cash flow generation.

The total life of mine is 11 years (2024 to 2034), producing an estimated 5.2 Moz in addition to the 5.5 Moz produced since 2009, as of June 30, 2023.

KEY OUTPUTS

The new LOM Plan incorporates the following key areas of optimisation driving growth:

Optimized open pit:

• Redesign: Improved geological and geotechnical understanding of the orebody, alongside improved ground conditions following the incorporation of paste fill has resulted in a reoptimized open-pit design.
• Reduced strip ratio as a component of the redesign: Optimization of the open-pit wall angles alongside an increase in ore tonnes has resulted in a reduced strip ratio of 6.5 times.
• Deferred processing of stockpiles: The updated approach to mine design and pit sequencing has improved earlier access to ore. As a result, there is a reduced reliance on low-grade stockpiles to supplement mill feed from 2025 to 2028 when compared with the 2021 LOM plan.
• Optimized fleet strategy: An additional five trucks will be purchased in 2024 to support the LOM plan, at an approximate cost of $13-million (U.S.) taking the Sukari fleet capacity from approximately 90 million tonnes to 110 Mt per annum. This coincides with the completion of the 120 Mt contractor waste-stripping program mid-2024.

Underground expansion:

• Increased mining rates: The underground expansion study completed in Q4 2022 outlined an optimal 1.5 Mt per annum ore mining rate for a capital requirement of $25-million (U.S.) to $35-million (U.S.).
• Reduced risk: Following full engineering of the expansion, opportunities arose to simplify the mine plan by removing the requirement to expand production by developing underground portals in the open pit, and therefore further reducing the delivery risk.
• Lower capital costs: The LOM plan has scheduled increased ore mining rates of 1.4 Mt per annum by 2026 (up from current peak mining rates of one Mt per annum) at a reduced capital cost of $16-million (U.S.) primarily for equipment.

50-megawatt national grid connection:

• Significant carbon abatement: The Egyptian government has made significant investments into power infrastructure including extending a high-voltage power line within 25 kilometres of Sukari. Establishing a 50 MW connection to the grid, in combination with the existing 30 MW Sukari solar power plant, will enable full displacement of diesel used for stationary power generation at Sukari.
• Reduced maintenance: Following completion of the tender process and further project design work the decision has been made to proceed with a buried cable connection rather than overhead. This reduces continuing maintenance and associated costs and environmental impact. The project capital cost is estimated at $46-million (U.S.) and grid connection is expected from the end of 2024.
• Quick payback: Removing diesel from the Sukari power supply is expected to deliver an annual saving of approximately $41-million (U.S.) (at current diesel prices and expected tariffs). The operation will also benefit from reduced operating cost volatility because of lower exposure to the diesel price.

Gold gravity circuit:

• Following completion of the conceptual design work and site selection a decision has been made to add a gold gravity circuit to the processing facility to improve the recovery of the coarse gold found in the higher-grade ore from both the underground and open pit.
• Improve gold recovery: Study work indicates this will improve gold metallurgical recoveries to 89.8 per cent, compared with the 2022 full-year average of 88.2 per cent.
• Construction is expected to be completed in H1 2025 for an estimated capital cost of up to $20-million (U.S.).

Continuing upside opportunities

There remains a number of opportunities for further optimization of the LOM plan. The following initiatives not included in the new LOM plan are expected to be assessed as part of continuing optimization of the asset:

Mineral resource and reserve growth:

• The Sukari orebody remains open at depth and along strike. The MRM team continue to implement a rolling strategy to support near-term production by upgrading existing resources and support growth by testing known limits of mineralization through discovery.
• Small surface satellite deposits across the Sukari concession area are not included in the new LOM plan, therefore discovery and development present an upside opportunity.
• The company's EDX Nugrus block is adjacent to the Sukari mining concession and is within trucking distance to the Sukari processing facility. The first drill program on the Nugrus block is currently under way.

Dump leach expansion:

• The LOM plan schedules that up to two Mt per annum of low-grade stockpiles (0.3 to 0.4 g/t) will be processed on the dump leach for the next four years, producing an average of 10,000 to 12,000 oz per annum.
• There is an opportunity to expand the dump leach operation to process additional transitional (oxide/sulphide) material and rehandle current marginal grade stockpiles.
• Study works to commence in 2024, defining the potential scale and design of an expanded dump leach.

Open-pit optimization:

• Continuing slope angle optimization with a potential to further reduce waste-stripping.
• Haulage and waste dump optimization, assessing the potential relocation of low-grade stockpiles and infrastructure as well as dumping waste at the southern end of the open pit in the latter years of the mine life, to shorten haulage distances. These two initiatives could deliver further cost savings and reduce emissions.

Plant optimization:

• Continuing test work on new reagents. Subject to the results, there is a potential to deliver further cost savings, improved metallurgical recoveries and therefore gold production, and could improve detoxification of the tailings and return water.
• Continued focus on more efficient use of reagents and consumables further reducing costs.

Solar expansion:

• As part of the company's decarbonization roadmap the intention is to expand the existing 30 MW solar plant to 45 to 50 MW, delivering further reductions to carbon emissions and cost savings relative to grid.
• A feasibility study is currently under way to identify the optimal location of the facility on the mining lease and define the optimal integration strategy with the current solar facility and future grid connection.
• Associated capital expenditure for the project is not included in current forecasts, pending completion of the feasibility study.

About Centamin PLC

Centamin is an established gold producer, with a premium listing on the London Stock Exchange and a secondary listing on the Toronto Stock Exchange. The company's flagship asset is the Sukari gold mine, Egypt's largest and first modern gold mine, as well as one of the world's largest producing mines. Since production began in 2009 Sukari has produced over five million ounces of gold, and today has six Moz in gold mineral reserves. Through its large portfolio of exploration assets in Egypt and Ivory Coast, Centamin is advancing an active pipeline of future growth prospects, including the Doropo project in Ivory Coast, and has over 3,000 square kilometres of highly prospective exploration ground in Egypt's Nubian Shield.

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