Magnetite Mines Limited provided a progress update on the optimisation studies commenced in September 2022 and scheduled for completion by the end of first quarter 2023. As announced on 13 September 20221, the Company refocused its Razorback Iron Ore Project (Project) development strategy in line with evolving market conditions and downstream industry feedback. A suite of optimisation studies were commenced aimed at defining the go-forward scope for a refocused DFS (Definitive Feasibility Study).

The key objectives of the optimisation studies are to: Increase and optimise Stage 1 production, with a minimum 5Mtpa capacity, to enhance project economics via economies of scale, while taking advantage of the 5.7 billion tonne Project resource base; Increase Project attractiveness to potential iron and steel industry partners and customers, institutional investors, and project financiers; Access potential to re-estimate Ore Reserves as a direct result of expanded production scale; and Improve ESG credentials through enhanced concentrate specifications that support downstream iron and steelmaking decarbonisation, and potential electrification of major equipment supported by larger-scale development. The Company reported that all studies are progressing to plan, with initial AACE Class 5 engineering estimates received on time from the Company's engineering partners. A staged development philosophy has been maintained throughout, commencing with a manageable but robustly economic start-up capacity, expanding thereafter to meet market demand.

Key Study outcomes achieved so far which are subject to further testing include: Plant Optimisation: Magnetite processing specialists Hatch are leading the plant optimisation studies with respect to assessing larger scale production scenarios. A key focus of these studies has been the assessment of alternative front-end crushing options and the investigation of opportunities for early-stage rejection of waste and low-grade material via dry magnetic separation. Hatch are also completing parallel studies with respect to tailings storage facility configurations, with both conventional and thickened tailings options currently being investigated.