Freehill Mining Limited to provide this update to shareholders on the intended start-up of the first phase of mining operations at the 100%-owned Yerbas Buenas magnetite project in Chile. The Company is making solid progress advancing towards a low CAPEX and OPEX first phase operation with an initial approval to produce 5,000 tonnes per month of finished product. As reported last month, Freehill engaged highly respected mining consultant Dean David FAusIMM, CP (Met) of DD Consulting to provide an in-depth analysis of all of the test work to date, including the assessment of three types of process options for the operation; 68%+ Fe grade pellet feed, 63% Fe grade HG fines and 53% Fe grade LG fines. This report has now been completed and the key findings and conclusions are: Freehill can crush the Yerbas Buenas magnetite ore to -3 mm and produce a relatively high grade concentrate (52% to 62% Fe) with low technical risk given the simplicity of the proposed plant which will include a primary and secondary crusher, and three tertiary crushers; The product would be suitable for sale as feed to a pellet feed production facility and may be suitable for sinter feed; The YB ore has the potential to provide very high-grade magnetite concentrate, probably a premium product suited for feeding direct reduced (DR) ironmaking; Magnetite concentrates are the highest-grade natural iron ore products generated and may attract a premium price. The benchmark price referenced daily is set by the most common traded iron ore product, hematite fines and at a grade of 62% Fe The report recommends that Freehill should commence production of 5,000 tonnes of finished product per month to generate first cash flow. The report also advises that the Company reviews the historical Davis Tube Test procedure and modify it so that it provides more realistic results at all sample head grades. This includes repeating critical Davis Tube work, especially for Yerbas Buenas core samples. Freehill also confirms that it is assessing proposals from local experienced contract miners to commence phase 1 mining and processing operations at an existing pit and stockpile at Yerbas Buenas. This approach will result in limited upfront CAPEX by Freehill. Concurrently, the feasibility work is continuing on modelling a larger-scale processing operation.