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NEWS RELEASE | 30 May 2023

Havieron Debt Funding Update

Letter of Support received from existing relationship banks toenhance and extend financial flexibility

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS STIPULATED UNDER THE UK MARKET ABUSE REGULATIONS. ON PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS INFORMATION IS CONSIDERED TO BE IN THE PUBLIC DOMAIN

Background

On 12 September 2022, Greatland Gold plc (AIM:GGP; Greatland or Company) announced that it had signed a commitment letter, including a terms sheet, for A$220 million seven-year debt and associated hedging facilities with a syndicate of leading banks: Australia and New Zealand Banking Group Limited (ANZ), HSBC Bank (HSBC) and ING Bank (Australia) (ING) (together, the Banking Syndicate) (Debt Commitment Letter). Further to this announcement, the Company is pleased to advise that it has received a Letter of Support, from the Banking Syndicate in respect of the proposed debt and associated hedging facilities (Letter of Support) which supersedes the Debt Commitment Letter.

Highlights

§  Letter of Support confirms the Banking Syndicate remains fully supportive and enhances Greatland's financial flexibility

§  The update saves the Company from incurring the commitment and other fees associated with the proposed A$220 million debt facilities until the Havieron Feasibility Study is finalised

§  The Letter of Support in respect of the proposed A$220 million debt confirms the Banking Syndicate remains fully supportive while the Havieron Feasibility Study progresses with several value enhancing options underway to maximise value and de-risk the project

§  Havieron early works including the decline development is continuing to advance, with total development now exceeding 2,025m (as at 19 April 2023)

Operational overview

In October 2022, Newcrest Mining Limited (Newcrest), as manager of the Havieron Joint Venture, determined that further time was required to optimise Havieron and therefore delayed the delivery of the Havieron Feasibility Study (see RNS Announcement titled "Havieron Exploration and Development Update" dated 27 October 2022). Various workstreams to support the Havieron Feasibility Study are continuing to be progressed with several value enhancing options underway to maximise value and de-risk the project.

The development of the Havieron decline continues to advance. Finalisation of the Havieron Feasibility Study and a positive Decision to Mine is required before the commencement of commercial mining operations.

Financial flexibility

Given the relative proximity of reaching the top of the Havieron orebody, it remains Greatland's preference not to utilise the proposed A$220 million seven-year debt and associated hedging facilities until the Havieron Feasibility Study is finalised.

The Banking Syndicate remains fully supportive of Greatland and has provided the Company with a Letter of Support in respect of the originally proposed A$220 million seven-year debt and associated hedging facilities, on proposed commercial terms which are substantially similar to those outlined in the Company's previous announcement on 12 September 2022. The terms set out in the Amended Terms Sheet in connection with the Letter of Support are subject to normal lender requirements for transactions of this nature including the receipt of credit, risk and other internal approvals, environmental approvals as well as the completion of due diligence satisfactory to the Banking Syndicate, the finalisation and execution of finance documentation satisfactory to the Banking Syndicate and satisfaction of all applicable conditions precedent.

This cancellation of the Debt Commitment Letter saves the Company from incurring the commitment and other fees associated with the proposed A$220 million debt and associated hedging facilities until the Havieron Feasibility Study is finalised. Importantly, it provides Greatland with improved visibility with respect to ongoing requirements of the proposed debt facilities. The Letter of Support confirms the Banking Syndicate remains fully supportive and further enhances Greatland's financial flexibility.

Greatland Managing Director, Shaun Day commented:

"The Letter of Support demonstrates the strength of our relationships with ANZ, HSBC and ING and further enhances Greatland's financial flexibility for funding of the Havieron copper-gold project.

The Letter of Support and continued backing of high-quality institutions consolidates Greatland's position prior to finalisation of the Havieron Feasibility Study as the decline ramp approaches the top of the Havieron gold-copper orebody."

Contact

For further information, please contact:

Greatland Gold plc

Shaun Day, Managing Director | info@greatlandgold.com

Nominated Adviser

SPARK Advisory Partners

Andrew Emmott / James Keeshan / Neil Baldwin +44 203 368 3550

Corporate Brokers

Berenberg | Matthew Armitt / Jennifer Lee | +44 203 368 3550

Canaccord Genuity | James Asensio / Patrick Dolaghan | +44 207 523 8000

SI Capital Limited | Nick Emerson / Sam Lomanto | +44 148 341 3500

Media Relations

UK - Gracechurch Group | Harry Chathli / Alexis Gore / Henry Gamble | +44 204 582 3500

Australia - Fivemark Partners | Michael Vaughan | +61 422 602 720

About Greatland

Greatland is a mining development and exploration company focused primarily on precious and base metals. 

The Company's flagship asset is the world-class Havieron gold-copper project in the Paterson Province of Western Australia, discovered by Greatland and presently under development in joint venture with ASX gold major, Newcrest Mining Limited (which is the subject of a takeover by Newmont Corporation by way of a scheme of arrangement).

Havieron is located approximately 45km east of Newcrest's existing Telfer gold mine. The box cut and decline to the Havieron orebody commenced in February 2021. Significant progress continues with total development now exceeding 2,025m including over 1,600m of advance in the main access decline (as at 19 April 2023). Subject to a positive feasibility study and Decision to Mine, Havieron is intended to leverage the existing Telfer infrastructure and processing plant. Access to Telfer will de-risk the development, reduce capital expenditure and lower the project's carbon footprint.

Greatland has a proven track record of discovery and exploration success and is pursuing the next generation of tier-one mineral deposits by applying advanced exploration techniques in under-explored regions. Greatland has a number of exploration projects across Western Australia and in parallel to the development of Havieron is focused on becoming a multi-commodity miner of significant scale.