Announcement PDF Page 1 of 30 Baseline Economic Model (BEM) confirms attractive economics supporting the advancement of the Jervois Project KGL Resources Limited (ASX:KGL) (KGL or the Company) is pleased to announce the results of its Baseline Economic Model (BEM) for its Jervois Copper-Silver-Gold Project in the Northern Territory (Jervois or Jervois Project), that confirms the attractive economics and provides the financial and technical basis for project financing and commencing development. The Jervois Project is a high-grade copper resource in Australia with regulatory and social approvals granted for development and operations. Enhanced Financial Outcome • Net Present Value NPV8, real of A$1,226 million (pre-tax) and A$839 million (post-tax), • Internal Rate of Return (IRR) of 37% (pre-tax) 30% (post-tax) • C1 cost US$1.65/lb (net of by-product) • Simple payback 3.1 years (post plant ramp up) • Average steady state operating cashflow A$260 million per annum. Baseline Economic Model The BEM incorporates updated market inputs1 and cost escalation. Independent industry specialists have contributed significantly to the other BEM inputs: • Xenith Consulting – Open pit mine planning and scheduling incorporating extensions to Reward and Bellbird, improving process plant utilisation in the latter half of the Life of Mine (LOM) • Sedgman Pty Ltd – Process plant and metallurgy update including capital budget and metallurgical recovery algorithms. • Axiom Project Services –have been integrated into the Project Owner team assessing construction contract scopes, package interfaces and execution plans, schedule, cost estimates and project contingency to support the delivery of first ore. • Costs for the open cut and underground mining were sourced from independent contractors. Production • Commissioning and ramp-up during H1 2028 with steady state throughput capacity from H2 2028 delivering a mine life of 10 years. • Over the Life of Mine (LOM), 276kt Cu contained, 10.5Moz Ag contained, 87koz Au contained (Cu Equivalent of 352kt) will be produced as a concentrate. Capital • Construction Capital Cost estimate A$439 million • Additional mining and sustaining capital estimate A$290 million (funded from cashflow during operations) Social Contribution • Peak employment of up to 350 people during construction and up to 550 people during operations. • Increased royalties by 51% to A$379m. Orebody Knowledge and Growth • Integrated 3D modelling is focusing exploration on high-grade areas to efficiently expand the Jervois Mineral Resource and in support of extending the mine life. This announcement should be read together with the following Cautionary Statement and the FSU25 released on 10th February 2025. 1 Inputs Copper US$/lb 6.06 Silver US$/oz 80.75 Gold US$/oz 4,834 Currency Exchange Rate USD:AUD 0.717 24 April 2026 Page 2 of 30 Baseline Economic Model (BEM) confirms attractive economics supporting the advancement of the Jervois Project Information Relating to the Production Target and Forecast Financial Information The production target and the subsequent forecast financial information set out in this release are based on the material assumptions outlined in pages 9 to 27 of this BEM announcement. While KGL considers all the material assumptions to be based on reasonable grounds, there is no certainty that they will prove to be correct or that the range of outcomes indicated by the studies will be achieved. To achieve the range of outcomes indicated in this update, additional funding will be required. Investors should note that there is no certainty that the Company will be able to raise the amount of funding when needed. It is also possible that such funding may only be available on terms that may be dilutive to or otherwise affect the value of the Company's existing shares. Please refer to the Company's commentary on page 29 below for further discussion on its expectation of being in a position raise the funding necessary to meet the Jervois Project's capital intensity. The BEM (dated 24 April 2026) being a supplement to the Jervois Copper Project Feasibility Study Update 2025 Report (10 February 2025) is a study of the potential viability of the production of copper, silver and gold from the Jervois Project. It has been undertaken to update the inputs and key metrics for the Jervois Project prior to the FID being made and commencement of construction. The Ore Reserve and Mineral Resource estimates underpinning the production targets were prepared by Competent Persons in accordance with the JORC Code 2012. The BEM is anchored by the 25 November 2024 Open Pit MRE (cf. the project outcomes presented in the FSU25, which relied on the Revised May 2024 Open Pit MRE). The Underground Mineral Resource tonnage relied upon in the BEM remain unchanged from the FSU25 (the Revised May 2024 Underground MRE). The Ore Reserve tonnage underpinning the BEM announcement remain unchanged from the FSU25 announcement in February 2025. Cautionary Statement as to the use of Inferred Resources The relevant proportions of Measured Resource, Indicated Resource and Inferred Resources that underpin this updated Production Target are2 There is a low level of geological confidence associated with Inferred Mineral Resources and there is no certainty that further exploration work will result in the determination of Indicated Mineral Resources or that the BEM Production Targets will be realised. 2 Ore Production Target includes losses and mining dilution Ore (Mt) Cu (kt) Au (koz) Ag (koz) Proved Reserves 4.19 74.9 38.9 4,178 Probable Reserves 10.18 179.3 70.6 8,616 Measured Resources Indicated Resources 1.77 9.9 22.1 344 Inferred Resources 2.37 40.3 16.3 1,674 Total 18.5 304.4 147.9 14,812 % Inferred 12.8% Page 3 of 30 Baseline Economic Model (BEM) confirms attractive economics supporting the advancement of the Jervois Project The Ore Reserves underpinning the BEM Production Targets remain unchanged from what was used in FSU25. Internal work has been undertaken on the open cut mine schedule that included: o Revision to the mining block model for the Reward open pit; o Modification to the cut-off equation, now uses FSU 25 metal prices and updated processing recoveries from Sedgman; o Changes to open pit designs. Reward (OP) is unchanged. Haul road widths and positioning updated at Bellbird + additional 2nd stage along strike to the north. Additional pit at Reward NE, on ore lens to replace the previous boxcut in waste (Portal RL is now lower than previous, but no reduction made to decline metres.); o No change to the base RL of the open-pits that impact previously recovered underground material; and o Modifying factors remain unchanged. There are no changes to the underground mine schedule from the FSU25 Analysis indicates that the BEM is technically and economically feasible. The Project’s Reserve only case (contained 14.4Mt) results in a positive NPV relying on the balance of input assumptions while excluding all Mineral Resources (4.1Mt) assumed under the broader BEM Production Target to be converted to Ore Reserves prior to extraction. But given the uncertainties involved, investors should not make any investment decisions based solely on the results of these studies. Forward Looking Statement This announcement includes certain forward-looking statements. The words “forecast”, “estimate”, “like”, “anticipate”, “project”, “opinion”, “should”, “could”, “may”, “target” and other similar expressions are intended to identify forward looking statements. All statements, other than statements of historical fact, included herein, including without limitation, statements regarding forecast cash flows and potential mineralisation, resources and reserves, exploration results and future expansion plans and development objectives of KGL are forward-looking statements that involve various risks and uncertainties. Although every effort has been made to verify such forward-looking statements, there can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. You should therefore not place undue reliance on such forward-looking statements. Statements regarding plans with respect to the Company’s mineral properties may contain forward looking statements. Statements in relation to future matters can only be made where the Company has a reasonable basis for making those statements Current commodity market instability due to recent and ongoing events beyond the control of KGL may materially impact the basis for the project schedule, cost estimates and other assumption underpinning proposed project financing and overall indicated return on capital. Page 4 of 30 Baseline Economic Model (BEM) confirms attractive economics supporting the advancement of the Jervois Project Financial Overview and Investment Case Strong Financial Returns The BEM assumes prevailing market prices on 17th April 2026 to forecast strong project margins supported by competitive operating costs, and significant precious metal by-product credits leading to low capital efficiency c.US$10,200/tonne of annual copper production capacity. The life-of-mine operating cashflow (pre-tax) is estimated at approximately A$3.2 billion with free cashflow (after tax) approximately A$1.8 billion. C1 costs are expected to be circa US$1.65 per pound (net of byproducts), positioning the Jervois Project toward the lower end of the global copper cost curve. The project is forecast to deliver a pre-tax Net Present Value (NPV) at 8% of approximately A$1.2 billion (after tax A$839 million). The following table compares the key assumptions and economic outcomes previously announced theFSU25) with the BEM. Comparison FSU25 BEM Change (before financing) Feb-25 Apr-26 Copper US$/lb 4.58 6.06 32% Silver US$/oz 32.62 80.75 148% Gold US$/oz 2,667 4,834 81% Currency Exchange Rate USD:AUD 0.64 0.717 12% Contained Metal in Concentrate kt Cu Eq 301 352 17% Sales Revenue (payable)3 A$m (real) 4,437 6,457 46% Direct Operating Costs A$m (real) 2,330 2,852 22% Royalty A$m (real) 251 379 51% EBITDA (A$m) A$m (real) 1,859 3,226 74% NPV (8% real, before tax) A$m (real) 601 1,226 104% NPV (8% real, after tax) A$m (real) 405 839 107% IRR (pre-tax) % 30% 37% 23% IRR (post tax) % 24% 31% 29% C1 Costs (net of byproducts) US$/lb 2.19 1.65 (0.54) Construction Capital4 A$m (real) 362 439 21% Peak Funding (A$m) A$m (real) 497 584 18% Simple Payback Years 3.4 3.1 (9%) Table 1 Summary of Baseline Economic Model Inputs and Outcomes in comparison to FSU25 3 Net of TC/RC and freight credit 4 Excludes Life of Mine capital including underground capital Page 5 of 30 Baseline Economic Model (BEM) confirms attractive economics supporting the advancement of the Jervois Project Financial Reconciliation The following graph maps the changes in NPV (8% real after tax) in A$M, from FSU 25 to the BEM. Figure 1 Waterfall Chart comparing NPV and IRR of BEM to FSU25 Baseline Economic Model Inputs The BEM incorporates updated inputs from the market (spot metal prices and exchange rate) and cost escalation. Independent industry specialists have contributed significantly to the other BEM inputs; • Xenith Consulting – Open pit mine planning and scheduling o Mine plan improvements, open pit extensions at Reward and Bellbird that have increased the proportion of low-cost open pit ore from 6.9Mt to 8.8Mt, increasing total ore mined (open pit and underground) to 18.5Mt (11.6% increase compared to FSU25). o The additional ore from the Open pit enables improved plant utilisation / throughput to increase the incremental copper / silver / gold in mill feed during the latter half of the Life of Mine (LOM). • Sedgman – Process plant and metallurgy o Provided the updated capital budget for the plant construction. o Updated the metallurgical recovery algorithms that has increased concentrator metal recovery (copper +0.5%, silver +5.8% and gold +4.1%). • Axiom Project Services – Appointed in 2025 and integrated into the Project Owner team o The integrated team has critically assessed and confirmed construction contract scopes, package interfaces and execution plans, timetable, cost estimates and project contingency to support the delivery of first ore. IRR 24% IRR 31% - 200 400 600 800 1,000 1,200 1,400 1,600 405 505 481 (171) (63) (49) (16) (62) (190) 839 FSU 25 Copper Revenue By-Prod. Credits Opex - Volume Opex - Rates Capex Working Capital Royalty Tax BEM A$m Real Jervois : Incremental NPV and IRR (after Tax) Page 6 of 30 Baseline Economic Model (BEM) confirms attractive economics supporting the advancement of the Jervois Project • KGL has upgraded the governance controls of the Jervois Project. o KGL established a Project Steering Committee with independent industry expertise to provide project delivery oversight. o The KGL Board has strengthened the independence and skills diversity of the board with the appointment of an additional non-executive director (NED) in late 2025. o Management have prepared a self-assessment of its Environmental, Social and Governance (ESG) system against the Consolidated Mining Standard Initiative (CMSI) to ensure systems and processes remain consistent with local and international trends and expectations. CMSI is a global effort to combine multiple existing mining standards into one clear consistent framework for responsible ESG. Its aim is to simplify requirements for companies while improving ESG performance and transparency across industry. Orebody Knowledge and Growth In 2025, KGL partnered with Viridien and Australian consultants to develop, for the KGL’s tenements, the first Integrated 3D Inversion model, combining geological expertise with geophysics, drilling, and analysis data in a comprehensive platform. The Inversion model has provided the basis to plan a comprehensive exploration program to gather additional geophysical data gathering across the 100% owned Jervois and Unca Creek tenements. Drilling and core analysis will concentrate on priority targets identified by the 3D Inversion models. These targets are in addition to the orebodies planned within the KGL’s tenements targeted for the mine's operational lifespan extension. The current orebody covers 37 km² and does not include the adjacent Unca Creek tenement, which spans 78 km². The mineral resource areas associated with the current mine plan remain open at depth and laterally. These orebodies are also targeted for extension by further drilling and core analyses, as the Jervois Project is delivered. Further information showing the outcomes of the 3D modelling, the priority exploration targets and depth and lateral extensions was presented at the recent AGES conference in Alice Springs (April 2026). This presentation can be found on the KGL Website (www.kglresources.com.au). Global Copper and Currency Market Outlook Industry analysis continues to highlight a widening gap (bull market scenario) between projected copper demand and the pipeline of new mine supply. Copper price escalation over the past 14 months has been over 30%, since the announcing the FSU25 Current global copper mine production is approximately 22–23 million tonnes per year, while research indicates mined copper demand alone could reach approximately 37 million tonnes per year by 2050. Market analysts are highlighting structural challenges facing the copper industry, including declining ore grades, increasing capital intensity for new mine development, extended permitting timelines and geopolitical competition for secure supply chains. Independent market analysis indicates that without substantial new project development, global copper markets could face a supply shortfall. Against this backdrop, BHP has forecast a potential Page 7 of 30 Baseline Economic Model (BEM) confirms attractive economics supporting the advancement of the Jervois Project copper supply deficit of up to 10 million tonnes per year by 2035, reflecting strong demand growth from electrification, energy transition infrastructure and digital technologies. KGL takes the prevailing market inputs at the time of preparing its economic forecast whilst forming our own view based on forward supply / demand information supplied by market analysts. KGL’s approach uses historical price trends, and forward-looking information sourced from Bloomberg, independent market supply / demand commentary and forward contracts pricing from the CME Group and Nymex. KGL’s conclusion for the Baseline Economic Model has confirmed, with the information available that is it reasonable to assume prevailing market prices for copper, silver, gold and USD/AUD FX rate. It is KGL’s opinion, that market forces are supportive of development of the high grade, low capital intensity Jervois Project now. Sam Strohmayr, CEO said. “The Baseline Economic Model represents a significant improvement on the previous FSU25 and further strengthens confidence in the technical and economic fundamentals of the Jervois Project. Since joining the Company, I have observed consistent progress in enhancing project delivery capabilities and integrating experienced industry specialists such as Xenith Consulting, Sedgman, and Axiom Project Services. The combined expertise of this team, supported by specialist contractors, provides us with confidence to deliver the project on schedule and within budget. The recently announced Wheaton streaming agreement reinforces the robustness and technical integrity of the Jervois Project. The A$45m Early Works drawdown feature allows KGL to advance the critical path and early works activities on the site in the immediate future – ensuring that our schedule to production is maintained. With all key approvals in place and strong interest from potential funding partners and off-take counterparties, the Company is focused on progressing project financing and advancing toward a Final Investment Decision. The current mine plan represents only part of the broader mineralised system, providing potential to extend the current 10-year mine life and further enhance the long-term value of the Jervois Project. Against this backdrop, KGL is well positioned to benefit from strengthening long-term fundamentals for copper, silver and gold as demand growth continues to outpace new supply development.” You can engage with the management team about this announcement here: https://kglresources.com.au/link/yV0dnr Page 8 of 30 Baseline Economic Model (BEM) confirms attractive economics supporting the advancement of the Jervois Project Table of Contents 1. MARKET INPUTS.............................................................................................................9 1.1. Supply Outlook .......................................................................................................................9 1.2. Incentive Pricing and Capital Intensity ..................................................................................10 2. SENSITIVITY TO KEY VALUE DRIVERS.......................................................................10 2.1. Stand-alone Fuel Price Assumption......................................................................................11 3. PROJECT OPTIMISATION.............................................................................................12 3.1. Mineral Resources Estimate (MRE) reconciliation. ...............................................................13 3.2. Regulatory and Approvals ....................................................................................................14 3.3. Production Target Increase...................................................................................................14 3.4. Process Plant .......................................................................................................................18 3.5. Increased Metallurgical Recoveries ......................................................................................19 3.6. Metal in Concentrate.............................................................................................................20 3.7. Concentrate Production has increased.................................................................................21 3.8. Site Operating Costs.............................................................................................................22 3.9. Project Delivery ....................................................................................................................24 3.10. Project Capital Costs ............................................................................................................25 3.11. Power supply strategy update...............................................................................................26 3.12. Peak Funding .......................................................................................................................27 4. ONGOING INVESTMENT ENGAGEMENT.....................................................................27 Competent Person Statement...........................................................................................................29 Page 9 of 30 Baseline Economic Model (BEM) confirms attractive economics supporting the advancement of the Jervois Project 1. MARKET INPUTS The BEM financial model adopts a copper price of US$6.06/lb, reflecting prevailing copper market conditions (17th April 2026). Gold and silver prices adopted in the BEM are similarly based on contemporaneous market pricing. Comparison FSU BEM Change (before financing) Feb-25 1 Apr-26 2 Copper US$/lb 4.58 6.06 32% Silver US$/oz 32.62 80.75 148% Gold US$/oz 2,668 4,834 81% Currency Exchange Rate USD:AUD 0.64 0.717 12% Table 2 Commodity and exchange rate comparisons between FSU25 and BEM Note: 1 Metal Price and Foreign Exchange assumptions for FSU25 are prevailing market prices as at December 2024. Note. 2Metal Price and Foreign Exchange assumptions for BEM are prevailing market prices as at 17 April 2026. A significant driver of the value increase for the Jervois project, is associated with metal price movement over the past year, partially offset by an increase in USD:AUD exchange rate. The price assumptions are consistent with the range of recent copper market pricing and reflects strengthening market fundamentals consistent with global electrification, expansion of digital infrastructure, increasing emphasis on secure and resilient critical mineral supply chains, ongoing industrial development and defence. The Company believes the prevailing market price assumptions selected may be representative of the forecasted price environment applying over the life of Jervois Project considered in the BEM. Copper’s exceptional electrical conductivity, durability and recyclability make substitution difficult in many applications, reinforcing its central role in electrification and digital infrastructure. Global copper demand is forecast to increase significantly over the coming decades. S&P Global estimates that copper consumption could rise from approximately 28 million tonnes in 2025 to around 42 million tonnes by 2040, representing an increase of approximately 50%. The growing strategic importance of copper is reflected in its increasing recognition as a critical mineral in multiple jurisdictions, driven by its essential role in electrification, digital infrastructure, energy systems and advanced technologies. In this context, long-term copper market fundamentals are widely expected to remain supportive of continued investment in new copper supply. 1.1. Supply Outlook Despite strong demand growth, the ability of the mining industry to respond remains constrained by declining ore grades, increasing geological and technical complexity, long development timelines, permitting processes and prolonged underinvestment in new discoveries. Page 10 of 30 Baseline Economic Model (BEM) confirms attractive economics supporting the advancement of the Jervois Project Industry analysis indicates that structural copper supply deficits could begin to emerge later this decade. For example, Bernstein projects global copper supply deficits emerging from around 2027 and widening thereafter, potentially exceeding 10 Mt per year by 2040. Similarly, Glencore has estimated that a near-term copper deficit of approximately 300,000 tonnes could expand into a cumulative supply shortfall of approximately 27 Mt by 2050 if sufficient new supply is not developed, reflecting the scale of additional supply required to meet projected long-term demand growth. These supply constraints highlight the importance of continued investment in new copper development projects and the role of sustained price incentives in supporting the development of new supply. 1.2. Incentive Pricing and Capital Intensity Academic research led by Adam C. Simon of the University of Michigan, published in Energy Research & Social Science, highlights the significant capital intensity and long development timelines associated with developing new copper mines. The study reports that capital intensity for global copper projects currently under development ranges from approximately US$9,800 to US$55,000 per tonne of annual production capacity, with an average of approximately US$22,000 per tonne. The authors note that for significant new mines to be economic and worth developing, copper prices would need to rise substantially, observing that the capital intensity of many projects implies future copper prices may need to “greatly exceed US$20,000 per tonne” to incentivise development of sufficient new supply. These industry forecasts, supply constraints and capital intensity considerations provide context for the commodity price assumptions adopted in the BEM financial model, which currently sit well below the anticipated range of 'incentive pricing' required for copper supply to keep up with demand. 2. SENSITIVITY TO KEY VALUE DRIVERS The project value (in A$) is highly leveraged to the USD copper price and the USD:AUD currency exchange rate. The following are the major sensitivities of the BEM NPV tabulated in A$m change from the BEM NPV. Page 11 of 30 Baseline Economic Model (BEM) confirms attractive economics supporting the advancement of the Jervois Project Figure 2 BEM sensitivity to changes in inputs 2.1. Stand-alone Fuel Price Assumption The fuel cost assumption in the BEM has been increased to levels recently seen (March / April 2026) during the conflict in the Middle East. BEM fuel costs assume A$3.30 per litre (including GST and before fuel rebate) for the project development period. Post the 2 year construction period the long term fuel price reverts to pre-conflict levels of A$2.20 per litre (including GST and before fuel rebate) which is an increase of c.15% compared to the FSU25. The negative impact of these changes in post- tax NPV8 terms of A$24m are embedded in the BEM (life of mine) financial summary. Page 12 of 30 Baseline Economic Model (BEM) confirms attractive economics supporting the advancement of the Jervois Project 3. PROJECT OPTIMISATION The Company has updated the financial model with escalated cost (to 2026) and included the results of the technical improvements / optimisation and project definition work that has been completed since announcing FSU25 in February 2025. Details of the study areas and changes are detailed below. The BEM does not address any study areas where there has been no material change from the FSU25. Study Area FSU 25 February 2025 BEM April 2026 Reference Section Tenements Jervois: EL 25429 ML: 30180, 30182, 30189, 32277 No change Mineralisation IOCG / SEDEX / VMS No change Mineral Resources May 2024 MRE restated: 29Mt ore, containing 510kt Cu, 23.1 Moz Ag, 213koz Au November 2024 MRE: 27.45Mt ore, containing 513kt Cu, 22.3 Moz Ag, 215koz Au 3.1 Ore Reserves 14.4Mt No change Mining: Contractor managed conventional open-pit and underground No change Regulatory and approvals All regulatory approvals and licenses in place. No Change 3.2 Ore Production Target / Mill Feed 16.6Mt 18.5 Mt 3.3 Life of Mine 10 years No change Process Plant Capacity -2Mtpa ore Ore Processing Flowsheet crushing, grinding, rougher & cleaner flotation, filtering and TSF No change to capacity and flowsheet. Preferred construction contractor appointed 3.4 Metal recovery (all ore) 90.3% Cu 65.2% Ag 54.6% Au 90.8% Cu 71.0 % Ag 58.7% Au 3.5 Metal in Concentrate (steady state) Cu ~30kt pa Au ~8.4 koz pa Ag ~1.0 Moz pa Cu: ~30 ktpa Au: ~9.7 koz p.a. Ag: ~1.1 Moz pa 3.6 Concentrate Production LOM 983 Kdmt 1,070 Kdmt 3.7 C1 Operating Costs US$2.19/lb Cu US$1.65/lb Cu 3.8 Project Delivery 19 months 22 months 3.9 Project Capital A$362m A$439m 3.10 Power Supply Hybrid Power Station Diesel generation transitioning to Hybrid Power Station 3.11 Water Supply Borefield supply No change FIFO Airstrip and on site accommodation No change Peak Funding A$498m A$584m 3.12 Table 3 Study areas updated from FSU25 The following sections address each of the referenced changes from the above table. Page 13 of 30 Baseline Economic Model (BEM) confirms attractive economics supporting the advancement of the Jervois Project 3.1. Mineral Resources Estimate (MRE) reconciliation. The FSU 25 was based on the Revised May 2024 MRE. An update to the MRE was announced (November 2024) which was not materially different in terms of metal contained in ore. The result was slightly less ore at marginally higher metal grade (Cu / Ag / Au). Tonnages and grades have reduced for those mineral resources targeted for mining by open cut methods offset by increased ore and grades designated from underground. The open pit Mineral Resources scheduled for open pit mining are as follows; Table 4 Jervois Mineral Resource Estimates. The BEM includes the mine plan and schedule optimisation for the open pit, based on the November 2024 Open Pit MRE. Page 14 of 30 Baseline Economic Model