METALS EXPLORATION PLC

INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2025

Metals Exploration plc (AIM: MTL) ("Metals Exploration", the "Company" or, together with its subsidiaries, the "Group"), a gold production, exploration and development company with assets in the Philippines and Nicaragua, announces its unaudited interim results for the six months ended 30 June 2025 ("H1 2025"). The results will be made available on the Company's website at www.metalsexploration.com.

Highlights

·      H1 2025 record positive free cash flow of US$70.7 million (H1 2024: US$46.4 million);

·      H1 2025 earnings before tax, interest, depreciation, amortisation, impairment and share-based charges of US$72.3 million (H1 2024: US$47.2 million);

·      H1 2025 gold production of 40,985 ounces ("oz") (H1 2024: 42,535 oz);

·      H1 2025 gold recoveries of 91.4% (H1 2024: 89.6%);

·      Acquisition of Condor Gold plc completed on 15 January 2025; and

·      Commencement of construction and development of the La India gold project in Nicaragua.

Production Summary

Darren Bowden, CEO of Metals Exploration, commented:

"The first half of 2025 was a hugely successful period in which we achieved record free cashflow and strong revenues from our operations at Runruno and continued to execute our strategy of becoming a multi-project company following the completion of the acquisition of Condor Gold targeting first production at the La India gold project by Q4 2026." 

"At Runruno, we produced 40,985 ounces of gold during the period, resulting in revenue of $118.9 million and record free cash flow of $70.7 million. As always, I am grateful to our in-country team for their diligence and dedication to ensuring the project's success. Our excellent financial performance was also supported by the current favourable gold price environment."

"Since acquiring Condor, we have carried out an aggressive development programme at La India. This includes awarding the majority of the contracts required to complete construction of the project, and agreements to relocate artisanal miners. We purchased the Rock Creek gold ore processing and concentrating plant, which I am pleased to report has now arrived in Nicaragua and will be transported to the project area during September. Purchasing the plant allows us to fast track project development, saving considerable development time."

"La India was previously outlined as having a 2.2 million oz gold resource by Condor. The Board believes there is significant upside potential through a combination of an expansion of existing Mineral Resources and potential new discoveries. The Company has committed to a minimum 40,000 metre drill programme within the next five years to further explore the potential of the La India district and unlock further value here."

"Following receipt of the Dupax exploration licence, 20km from Runruno, we have now commenced an IP survey in parallel with a 2,500 metre drill programme. We are excited about the potential that Dupax offers, and look forward to updating shareholders with the results of the exploration campaign. The discovery of an economic resource at Dupax could result in the extension of ore processing operations at Runruno. In addition, drill programmes for three key initial target areas of the Abra project have been designed, and are expected to commence in Q1 2026."

"In both the Philippines and Nicaragua, our aim is to create a net-positive impact for stakeholders and local communities, with strong community engagement at the forefront of our operations. We are pleased to have continued with the initiatives in Nicaragua previously implemented by Condor. Our goal is to build on this and further strengthen these relationships as we move towards production at La India."

"I look forward to providing further updates on the status of development at La India, mining operations at Runruno, and the exploration campaign at Dupax."

Corporate

Condor Gold plc Acquisition

On 15 January 2025, the Company completed the acquisition of 100% of Condor Gold plc ("Condor") via a court sanctioned Scheme of Arrangement. Condor is the 100% owner of an extensive highly prospective tenement package in Nicaragua, including the La India gold resource.

Being the Company's first acquisition outside of the Philippines, this acquisition is a major step in transforming the Group into a multi-project company. After taking control of Condor, the Company embarked on an aggressive development programme with the aim of having the La India gold project producing gold before the end of Q4 2026, which will coincide with the finalisation of mining activities at the Runruno mining licence area.

For further information on the acquisition of Condor, please refer to Note 12 of this report and to various previous announcements in relation to the Condor acquisition, which can be found on the Company's website.

Nicaragua

La India Development

The La India project is approximately a two hour drive from the Nicaraguan capital city, Managua. Drilling of these areas by Condor had previously outlined a 2.2 million ounce ("Moz") gold resource in and around the La India project area. The initial La India project was construction ready when the Company acquired Condor. Key Spanish speaking executives were recruited to bolster the Nicaraguan in-country management team and development planning commenced upon the completion of the Condor takeover.

A 'ground-breaking' ceremony held at La India on 7 May 2025 attracted significant media interest in Nicaragua, which has assisted in building credibility with both government and community leaders in Nicaragua.

Significant activities undertaken during H1 2025 included:

·      Recruitment of key executives/managers;

·      Agreement on the process and compensation to relocate all local artisanal miners from the La India proposed open-cut profile area;

·      Purchase of the Rock Creek gold ore processing and concentrating plant (including crushers, conveyors, grinding ball mill, gravity circuit, elution, smelting equipment and laboratory), including all components and construction drawings. At the date of this report, this plant has arrived in Nicaragua, via ocean transport, and is proceeding through the necessary custom's clearances;

·      Commencement of geo-technical and in-fill drilling at La India on 23 April 2025;

·      Commencement of bulk earthworks which were 30% complete by the period end;

·      Commencement of construction of the camp and various support building structures;

·      Awarding the majority of the material contracts required to complete the construction of the La India project;

·      Maintained the strong local community engagement initiatives previously implemented by Condor; and

·      Introduction of a strong commitment to health and safety with no lost time incidents having occurred at La India since the Company took control of Condor.

La India Exploration

Under the terms of the Condor takeover, the Condor Contingent Value Right ("CVR") holders will potentially receive further consideration should drilling on the Condor exploration tenements increase the gold resource base above 3.158 Moz within the five year period after the first drill was mobilised to the La India project site. Further, Metals Exploration committed to a minimum 40,000 metre drill programme on the Condor exploration tenements in this period. The first drill rig mobilised to the La India project on 23 April 2025, and in the period to 30 June 2025, 2,274 metres of drilling had been completed.

Philippines

Review of Runruno Gold Mine Operations

Health and Safety

Runruno's exceptional safety record of over 26 million hours worked without a lost time injury ("LTI") ended on 30 March 2025 when a fuel line to an oxygen tank ruptured and caught fire. An employee suffered burns however, he has made a full recovery and has returned to full-time work. This was the Company's first lost time incident since December 2016. No other LTI's were recorded in the half-year. Notwithstanding the above-noted incident, the Company remains incredibly proud of its exceptional safety record, and all employees and contractors are to be congratulated on this ongoing achievement.

Finance

Gold sales were 41,240 oz for revenues of US$118.9 million (H1 2024 41,589 oz for revenues of US$91.1 million) at an average price of US$2,884 per oz (H1 2024 US$2,190 per oz), resulting in a record positive free cash flow of US$70.7 million (H1 2024: US$46.4 million).

During H1 2025, the Group repaid the principal and interest in respect of the £5.5 million short-term loan provided by its significant shareholder, Drachs Investments No 3 Limited, via a transfer from Treasury of 94,127.854 Ordinary Shares at an issue price of 6p per share. Accordingly, the Group remains debt free.

Mining

Mining production of ore and waste was higher than forecast at 5.9 million tonnes ("Mt") for H1 2025 (H1 2024: 6.0Mt) due to short haulage distances. Total ore mined was slightly lower at 1.0Mt (H1 2024: 1.2Mt), at a higher grade of 1.54 grammes per tonne ("g/t") (H1 2024: 1.37g/t). Updated forecasts have confirmed that mining operations at Runruno will cease in Q4 2026.

Process plant

Stable operations were delivered during H1 2025, leading to gold production of 40,985 oz (H1 2024: 42,535 oz). Throughput for H1 2025 was on budget at 1.04Mt (H1 2024: 1.10Mt) at a head grade of 1.34g/t (H1 2024: 1.34g/t).

While a higher average overall gold recovery rate of 91.4% was achieved in H1 2025 (H1 2024: 89.6%), it is expected that the average recovery rate for H2 2025 will drop due to the processing of oxide ore from Stages 5 and 6 of the mine.

Unplanned process plant downtime during H1 2025 did not materially interrupt production and consisted mainly of power interruptions, MCC interconnection power line replacement, repairs to the return discharge line and final tails line, conveyor belts, rollers and trommel panel screens.

Post-period end, the Company paused processing of ore for approximately six weeks to allow new process monitoring and production procedures to be implemented following outside cyanide contamination impacting the BIOX circuit.

The Company discovered that the sources of cyanide contamination has been attributed to recent activities of illegal miners both within Stages 5-6 of the Runruno mine and upstream from Runruno. Refer to the Company's announcement dated 28 August 2025.

Despite this set back, as at the date of this report, no amendment to the Company's FY2025 production forecast is required, albeit the expectation is that the final outcome will be towards the lower end of the forecast range of 70,000 - 75,000 ounces.

Residual Storage Impoundment ("RSI")

The RSI is operating to design with an excellent environmental performance record, with the dam water freeboard well above design limits.

Construction of the RSI final in-rock spillway continues and is expected to be completed in Q2 2026. The day-to-day performance of the RSI, including the construction of the final in-rock spillway, is continuously monitored by an independent international consulting group.

Community & Government Relations

Productive relations with both the community and the Philippine government continue.

Sustainability

On 4 April 2025, the Company released its 2024 Sustainability Report, which covers its sustainability performance in the Philippines for the year ended 31 December 2024. The report, in its fifth edition, has been updated from biennial to annual to further enhance transparency and accountability, can be found upon the Company website.

Philippine Exploration

Dupax Project

In August 2025, the Dupax exploration licence EPA-000168, covering approximately 3,100 hectares approximately 20 kilometres southwest of the Company's existing Runruno ore processing facility in Runruno, was issued.

Post period-end, an Induced Polarisation ("IP") ground geophysics survey and a c. 2,500 metre drill programme commenced. For further information, please refer to the Company's announcement dated 6 August 2025.

Abra Project

Three main copper and copper-gold exploration targets in the Abra project area have been identified from geochemistry and geophysical surveys. Drill programmes for the initial three key target areas of the Abra project area have been designed, however, the Company does not expect these programmes to start until Q1 2026 to allow the National Commission for Indigenous Peoples ("NCIP") to further advance, and finalise, their consultation activities with the impacted local indigenous communities.

For further information please visit or contact www.metalsexploration.com

Forward Looking Statements

Certain statements relating to the estimated or expected future production, operating results, cash flows and costs and financial condition of Metals Explorations, planned work at the Company's projects and the expected results of such work contained herein are forward-looking statementswhich are based on current expectations, estimates and projections about the potential returns of the Group, industry and markets in which the Group operates in, the Directors' beliefs and assumptions made by the Directors. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by words such as the following: "expects", "plans", "anticipates", "forecasts", "believes", "intends", "estimates", "projects", "assumes", "potential" or variations of such words and similar expressions. Forward-looking statements also include reference to events or conditions that will, would, may, could or should occur. Information concerning exploration results and mineral reserve and resource estimates may also be deemed to be forward-looking statements, as it constitutes a prediction of what might be found to be present when and if a project is actually developed.

These statements are not guarantees of future performance or the ability to identify and consummate investments and involve certain risks, uncertainties and assumptions that are difficult to predict, qualify or quantify. Among the factors that could cause actual results or projections to differ materially include, without limitation: uncertainties related to raising sufficient financing to fund the planned work in a timely manner and on acceptable terms; changes in planned work resulting from logistical, technical or other factors; the possibility that results of work will not fulfil projections/expectations and realize the perceived potential of the Company's projects; uncertainties involved in the interpretation of drilling results and other tests and the estimation of gold reserves and resources; risk of accidents, equipment breakdowns and labour disputes or other unanticipated difficulties or interruptions; the possibility of environmental issues at the Company's projects; the possibility of cost overruns or unanticipated expenses in work programs; the need to obtain permits and comply with environmental laws and regulations and other government requirements; fluctuations in the price of gold and other risks and uncertainties.

The Company expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward looking statements contained herein to reflect any change in the Group's expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based unless required to do so by applicable law or the, AIM Rules.