Develop Global : Quarterly Activities/Appendix 5B Cash Flow Report

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ASX Announcement

24/01/2022

DECEMBER 2021 QUARTERLY REPORT

DEVELOP advances multi-pronged strategy to capitalise on decarbonisation opportunities

• Develop received ~25% of the assays from the recently completed 20,000m, $10m drilling program at Sulphur Springs
• The outstanding infill drilling results point to a significant increase in the Indicated Resource and identify a new zone of zinc-rich mineralisation in the hanging wall of the main deposits
• The Resource upgrade will be done in parallel with the strategic review of the mine plan, with the results of both expected to be released in the middle of this calendar year
• During the quarter, Develop implemented another key plank of its growth strategy by establishing the Company's Underground Services division
• Develop Underground Services will specialise in providing a range of underground mining services to cater for both Develop's own requirements such as at Sulphur Springs and to service other Australian projects on a contractual basis.
• In line with this strategy, Develop was invited to tender for the mining contract at Bellevue Gold's (ASX: BGL) Bellevue project in Western Australia.
• Highly experienced resources financier Michelle Woolhouse appointed as a Non- executive Director
• Completion of Share Consolidation on a 5 for 1 basis

Develop (ASX: DVP) is pleased to report on a quarter which saw it make strong progress towards its goal of capitalising on the immense opportunities emerging across the exploration, development and operational spectrum.

This strategy centres on establishing Develop's own operations and assisting other companies to develop and operate theirs, leveraging a team of world-class underground mining specialists in the process.

Develop Managing Director Bill Beament said: "It was a highly productive quarter as we ramped up the execution of our multi-pronged strategy to capitalise on the huge opportunities awaiting us.

"The first results from our drilling program at Sulphur Springs were outstanding and highlight what I have always said is the enormous potential of this project.

"As the rest of the assays come in, we will work towards a resource update and complete our strategic review of the mine plan, giving us a strong foundation on which to progress the project.

"We are also delighted to have established our underground services division. We believe there will be huge demand for the specialist skills and experience we will offer as the industry increasingly switches to underground mining."

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Develop Underground Services Division

During the quarter, Develop announced that it had implemented another key plank of its growth strategy by establishing the Company's Underground Services division and accepting an invitation to tender on its first underground mining contract with Bellevue Gold. Develop Underground Services will specialise in providing a range of underground mining services to cater for both Develop's own requirements such as at Sulphur Springs and to service other Australian projects on a contractual basis.

Key Management appointments during the quarter included;

Paul Nilsson, Manager Mining Underground: Mr Nilsson has been directly involved in the mining industry for 37 years in Australia and overseas. For the past 10 years, he held senior management roles at Northern Star Resources and was the Project Manager who orchestrated the world record of 1033.4 metres of jumbo development in a single month (March 2020) in Kalgoorlie. Prior to this, he spent seven years as an Operations Manager at Barminco Contractors.

Aaron Armstrong, Maintenance Manager Underground: Mr Armstrong has been involved in the underground services industry for the past 22 years and has held numerous senior positions ranging from Underground Maintenance Foreman and Superintendent to Maintenance Manager. For the past seven years he has been the Maintenance Manager-Underground, overseeing all maintenance services for Northern Star Resources Underground Operations in Australia and overseas.

Bellevue Gold's mining contract tender was submitted in late December 2021. Mining contracts of this nature normally take three months from tender submission to contract award (if successful).

Sulphur Springs Copper Zinc Project

Develop's flagship Sulphur Springs Project is located 112km south-east of Port Hedland in Western Australia and hosts a total Mineral Resource comprising 17.4 million tonnes grading 2.5%CuEq2,3 (1.3% copper, 4.2% zinc and 17g/t silver).

The Definitive Feasibility Study (see ASX release 10 October 2018) delivered a Pre-Tax NPV8% of A$472 million based on a copper price of US$6300/tonne and zinc price of US$2650/tonne. Current prices are ~50% and ~30% higher respectively.

Environment

Baseline environmental monitoring continued during the quarter. Several supporting studies for approval applications were completed and draft reports received. Preparation of approval documentation progressed and remains on track for submission in the March quarter.

Exploration

During the quarter, the Company completed a resource infill and exploration drilling program at the Sulphur Springs Project. The programme is additional to the previously reported 'Open Pit' infill drilling programme.

A total of 68 drill holes were completed as part of the Company's de-risking and growth strategy. The drilling was designed to infill the Sulphur Springs Resource to a nominal 30m x 30m spacing across two broad target areas, with additional exploration drilling also completed, the programme included:

• 12,500m (35 holes) Diamond and RC infill drilling of the Underground Resource
• 3,500m (22 holes) Diamond and RC infill drilling of the Open Pit Resource
• 4,500m (11 holes) Diamond and RC Exploration drilling

Partial assay results from 38 of the Resource/Exploration drillholes were received during the quarter, representing approximately 25% of the programmes total samples (See ASX release 8 December 2021).

Samples for all holes have been dispatched to the lab for assay analysis, however due to high demand and delayed turnaround times, final results are not expected until March 2022. However, if the Company

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receives a substantial batch of assays in the coming 2 to 3 weeks it will contemplate an earlier market update, than the end of the quarter.

Resource Infill Drilling - Underground

Infill resource drilling into the down-plunge portion of the Eastern Lens intersected consistent zones of exceptionally thick (+30m) high-grade mineralisation (Figure 1). Significant intersections include:

• 29.0m @ 3.4% CuEq1 (0.3% Cu, 0.5% Pb, 9.7% Zn, 50.4g/t Ag & 0.3g/t Au) from 328m (SSD147; Eastern Lens)
• 30.0m @ 2.2% CuEq1 (0.1% Cu, 0.6% Pb, 6.6% Zn, 33.3g/t Ag & 0.2g/t Au) from 341m (SSD143; Eastern Lens)

• 1. And 3.0m @ 2.0% CuEq1 (2.1% Cu, 0.1% Pb, 0.4% Zn & 13.5g/t Ag) from 382m
• 20.0m @ 1.6% CuEq1 (0.1% Cu, 0.2% Pb, 4.7% Zn, 11.4 g/t Ag & 0.1g/t Au) from 382m (SSD142; Eastern Lens)
• 1. And 2.0m @ 1.8% CuEq1 (0.2% Cu, 5.2% Zn, 11.7 g/t Ag & 0.1 g/t Au) from 364m

Infill resource drilling into the down-plunge portion of the Western Lens intersected consistent zones of mineralisation, with widths as expected. The only assays to be received from this part of the campaign are from two RC pre-collars;

• 2.0m @ 12.1% CuEq1 (0.2% Cu, 1.0% Pb, 37.8% Zn, 42.4g/t Ag & 0.3g/t Au) from 244m (SSD137 pre-collar; West Lens)
• 3.0m @ 2.5% CuEq1 (0.2% Cu, 0.7% Pb, 7.3% Zn, 31.7g/t Ag & 0.2g/t Au) from 284m (SSD139 pre- collar; West Lens)

Resource Infill Drilling - Open Pit

Results from the RC pre-collars targeting inferred resources within the proposed open pit returned several zones of high-grade Copper/Zinc/Silver mineralisation within the upper portion of the Sulphur Springs deposit (Figure 1). Significant intersections within the pre-collarsinclude:

• 10.0m @ 6.5% CuEq1 (0.1% Cu, 0.1% Pb, 20.3% Zn, 75g/t Ag & 0.5g/t Au) from 92m (SSD131 pre- collar; West Lens)
• 28.0m @ 1.7% CuEq1 (0.4% Cu, 0.1% Pb, 4.1% Zn, 9.6g/t Ag & 0.1g/t Au) from 32m (SSD107 pre- collar; West Lens)
• 4.0m @ 4.3% CuEq1 (3.0% Cu, 0.3% Pb, 5.2% Zn, 38.1g/t Ag & 0.2g/t Au) from 68m (SSD117 pre- collar; West Lens)
• 8.0m @ 3.9% Cu, 0.1% Pb, & 3.2g/t Ag from 20m (SSD108 pre-collar; West Lens)
• 6.0m @ 2.4% Cu, 0.1% Pb, 0.1% Zn, & 12.3g/t Ag from 48m (SSD109 pre-collar; West Lens)

Exploration Drilling

Results from exploration drilling completed (Figure 1) have identified significant extensions to the current

13.8 million tonne Resource, including a thick zone of high-grade Zinc/Silver mineralisation, and a new style of high-grade Copper/Gold mineralisation. A new zone of high-grade hanging wall hosted Zinc/Silver mineralisation was also intersected in the exploration drilling. Significant exploration intersections include:

• 49.0m @ 2.6% CuEq1 (0.8% Cu, 0.2% Pb, 6.0% Zn, 16.1g/t Ag & 0.4g/t Au) from 232m (SSD132; West Lens Exp)

1. Including 17.0m @ 2.7% CuEq1 (1.9% Cu, 0.1% Pb, 3.3% Zn, 12.8g/t Ag & 0.6g/t Au) from 232m.

1. Including 9.0m @ 6.1% CuEq1 (0.7% Cu,0.1% Pb, 17.7% Zn, 10.3g/t Ag & 0.2g/t Au) from 247m

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• 8.0m @ 1.9% CuEq1 (0.3% Cu, 0.2% Pb, 5.3% Zn, 27.6g/t Ag & 0.1g/t Au) from 300m (SSD144; West Lens Exp)
• 4.0m @ 2.3% CuEq1 (0.6% Cu,0.1% Pb, 5.8% Zn, 28.7g/t Ag & 0.1g/t Au) from 244m (SSD134; West Lens Exp)

Including High-gradeZinc-rich Hanging wall mineralisation:

• 20.0m @ 7.5% Zn, 0.4% Cu, 0.6% Pb, 36.5g/t Ag & 0.2g/t Au (2.8% CuEq1) from 208m (SSD134; H/W Zinc)
• 20.0m @ 7.2% Zn, 0.3% Cu, 0.4% Pb, 26.4g/t Ag & 0.2g/t Au (2.6% CuEq1) from 236m (SSD144; H/W Zinc)
• 8.0m @ 5.5% Zn, 0.1% Cu, 0.5% Pb, 30.1g/t Ag & 0.3g/t Au (1.8% CuEq1) from 236m (SSD133; H/W Zinc)

The wide zones of high-grade mineralisation intersected within the exploration drilling are located between 40m -130m outside (down plunge) of the current resource margins.

Figure 1. Sulphur Springs 2021 drilling long-section.

1. Copper Equivalent (%) = Cu grade% * Cu recovery + ((Pb grade % * Pb recovery % * (Pb price $/t/Cu price$/t)) + (Zn grade % * Zn recovery % * (Zn price $/t/Cu price $/t)) + (Ag grade g/t /31.103 * Ag recovery % * (Ag price $/oz/Cu price $/t))

Whim Creek Join Venture (20% free carried)

Develop has a 20% free carried interest in the Whim Creek Base Metal project. During the quarter project partner Anax Metal Limited (ASX: ANX) released a scoping study (refer ASX Release 30 August 2021) on the redevelopment of the project utilising ore sorting technology to upgrade ROM ores (refer ASX announcements "Scoping Study Results Demonstrate Outstanding Value at Whim Creek" 30 August 20201). The scoping study envisaged construction of a 320ktpa concentrator on site at Whim Creek processing upgraded sulphide ores with lower grade material treated in the existing heap leach operation. The project is envisaged to have a mine life of 5-7 years, with the concentrator producing 33,200 tonnes Copper, 62,400 tonnes Zinc, 17,800 tonnes Lead 1.6Moz Silver and 9,900oz Au. ANX are progressing with the feasibility study, and the company will continue to update shareholders as further results are released.

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Subsequent to the end of quarter an updated scoping study has been released (refer ASX 17 January

2022). The updated study incorporates:

• An increased production target;
• A switch to gas-fired power from diesel generated power, delivering both cost and environmental benefits;
• Results from bacterial sulphide leaching test work;
• Updated base case Zinc Price assumption.

The updated Study indicates the concentrator would produce 39,000 Tonnes Copper; 70,000 Tonnes Zinc; 18,000 Tonnes Lead; 1.8Moz Silver; 14,300 Oz Gold. Preproduction capital cost is estimated at $55 million with an internal rate of return* of 83% and NPV (6%) of $227M.

Evelyn Project [E47/1209]

No new work completed during the quarter.

Corporate

The Company held its Annual General Meeting of Shareholders on Friday, 26 November 2021, where Shareholders approved a Share Consolidation on a 5 for 1 basis.

On 26 November 2021, the Company also announced the appointment of highly experienced resources financier Michelle Woolhouse as a Non-executive Director, effective December 1, 2021.

Ms Woolhouse has significant experience in project and corporate finance in the mining and metals sector, including evaluation, debt structuring, technical considerations and sustainability.

Securities Information

The Company's issued capital at the date of this announcement is:

Security Class	Issued Capital
DVP Fully Paid Ordinary Shares	140,698,014
Unlisted Performance Rights	387,000
Unlisted Options (various expiry dates and exercise prices	48,490,062

Financial Information

The Company's net cash position on 31 December 2021 was $16.5 million. The Pro-forma Appendix 5B

- Statement of Consolidated Cash Flows is provided in a separate report.

Information as disclosed in the Cash Flow Report:

• Exploration and Evaluation during the quarter was $5.6 million
• There were no mining production and development activities during the quarter.

This announcement is authorised for release by Bill Beament, Managing Director.

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