Aeon Metals Limited provided an update on the progress of the Pre-Feasibility Study (PFS) and the 2022 exploration program at its 100%-owned Walford Creek Copper-Cobalt Project (Walford Creek or Project) in north-west Queensland, Australia. The Walford Creek Scoping Study was completed in June 2021 and outlined the projected economics of development under the preferred bulk flotation and pressure oxidation flowsheet. Key PFS workstreams were commenced shortly thereafter.

In late February, Aeon advised that the PFS was on track, and, while still incomplete, the advanced status of many of the workstreams broadly suggested that the key physical outcomes and cost projections from the Scoping Study would be broadly confirmed in the PFS. In the period since then geopolitical events have seen a dramatic heightening of already elevated global input cost and supply chain volatility (as well as, positively, further upward metal price pressures). This rapidly emerging, general inflationary environment has meant that the resolution of what constitutes a reasonable basis for applying project economic assumptions is rendered unclear.

Under the circumstances, and, with the benefit of time to evaluate the full implications of the successful 2021 exploration results, the Board has resolved to exercise caution. There is no pressing need to finalise a PFS, especially when the 2022 exploration program is about to commence, and when realisation of significant near term exploration success has the strong likelihood of demanding a re-evaluation of potential project mine life and/or scale, and therefore economic value. To put the upcoming 2022 exploration opportunity into context, the existing 38.6 Mt of Vardy and Marley mineral resources constitute a 3.7 km long, intensively drilled zone along the Fish River Fault.

There is a further 6 km of strike along the Fish River Fault to the west (Amy and Le Mans zones) that currently hosts 5 Mt of mineral resources and which is largely limited by the paucity of drilling. The recent 2021 geophysical surveys highlighted a further 16 km of potential strike length to test across multiple targets exhibiting similar geophysical signatures to known mineralisation. The Walford dolomites lying below existing Vardy and Marley Py3 horizon are also considered to be promising new targets for mineralisation.

As previously announced, Aeon has secured the services of two multi-purpose drill rigs to commence a 19,000 m drilling programme in early May 2022. Aeon is also set to undertake an airborne electro-magnetic survey to complement the existing gravity and magnetic surveys completed in 2021. With a well-tested regional geological model complementing an unprecedented geological data set, the Aeon management and Board believe there is strong potential upside from aggressive exploration of the Company's prospects over the coming months and beyond.

The uncertainty in the external environment and the opportunity in the internal environment provide the underlying rationale for extending the PFS timetable. Realising the maximum strategic value of Walford Creek potential remains the primary consideration of the Board.