Magnetite Mines Limited announced a Mineral Resource Estimate update for the Iron Peak Deposit, and the Razorback Iron Ore Project (Project), which is inclusive of Iron Peak. This update includes new drilling data that has substantially increased the size and quality of the Iron Peak Deposit and complements the superior metallurgical performance, relative to the wider Project, previously confirmed for Iron Peak1,2,3. Iron Peak is now of suitable size and quality to investigate processing the deposit in the first years of operations. The implications of this are potentially material improvements to the Project risk profile, cost base and overall economics.

Processing higher-grade (i.e. higher mass recovery) mineralisation translates to lower mining and processing volumes for a given concentrate output. It also increases the likelihood of achieving target concentrate grades, including premium-grade products suitable for feed into Direct Reduced Iron (DRI) facilities. Demand for premium-grade DR products, with associated price premiums, is forecast to continuing growing over the coming 5 to 15 years as the global iron and steel industry transitions to fully decarbonised production by 2050.

Targeting high-grade mineralisation for the commencement of new mine operations is a well-proven strategy that improves project economics by maximising early-year cash flows, increasing net present value (NPV) on a discounted cash flow basis, and shortening the capital payback period. The Iron Peak Deposit now stands at 503 million tonnes (up 20%) with a mass recovery of 19.4% (up 15%) making it the highest-grade deposit available to the Project to date3. The drilling campaign that has led to this Mineral Resource Estimate update specifically targeted the previously observed high-grade potential of the deposit.

Drilling comprised shallow infill and metallurgical sample collection, and subsequent analyses included a significant increase in the number of DTR tests (Davis Tube mass recovery measurements), substantially increasing the confidence level in the quality of the Resource. The deposit remains open along strike and at depth, and there remains strong potential to increase the volume of high-quality mineralisation with further drilling at Iron Peak. The total Razorback Project Mineral Resource Estimate, inclusive of Iron Peak, now stands at 3.3 billion tonnes at 16% mass recovery, incorporating 1.7 billion tonnes at Indicated classification and 1.6 billion tonnes at Inferred classification.

The Mineral Resource Estimate update was completed by Widenbar Associates Pty Ltd, to JORC 2012 standards and guidelines and includes resource estimation methodology updates applied to the Razorback Deposit. This update increases the Company's total iron Mineral Resource Estimate to 6.0 billion tonnes, combined Inferred and Indicated classifications, and includes the Ironback Hill Deposit4 and the recent addition of the Muster Dam Project5 to MGT's growing portfolio within South Australia's vast and undeveloped Braemar Iron Formation. South Australia is a proven mining-friendly jurisdiction and continues to improve its attractiveness with respect to the development of decarbonised heavy industry, including magnetite mining, processing and export.

In less than 20 years, South Australia has increased its renewable energy generation from 1% to 70%, and is on track to achieve 100% by 2030. The SA government has also recently committed $0.6 billion to initiate a green hydrogen industry. Accordingly, the state is rapidly becoming an ideal location to establish value-adding industries such as iron ore pelletising (for downstream iron and steel making) and future "green steel" production, which requires carbon-free energy and hydrogen production.

An update to the Iron Peak Mineral Resource Estimate has been completed to incorporate new drilling data and has resulted in an increase to both the tonnage and mineralisation quality, which now stands at 503 Mt at 19.4% mass recovery3. Mass recovery (or weight recovery) is the most important measure of mineralisation quality in the evaluation of magnetite deposits and is the%age of the head (feed) mineralisation by weight that is recoverable by concentration processes. The updated mass recovery for Iron Peak represents a substantial 15% increase over previous Mineral Resource Estimates3, making Iron Peak a standout deposit not only in terms of the Magnetite Mines portfolio, but also when compared with all currently announced Braemar Iron Formation Resource Estimates.

The importance of this updated Iron Peak Minerals Resource Estimate becomes evident when considered in light of recent metallurgical testwork results2. As shown in Table 2 below, Iron Peak has produced the higher grade concentrate products to date for the Project: >69% Fe with less that 3% major impurities. This is considered premium-grade feed for Direct Reduction (DR) pellet facilities, extremely scarce in the current market, and increasingly in demand as DRI facilities replace carbon- intensive blast furnace operations globally.