Pearl Gull Iron Limited reported a maiden Inferred Mineral Resource for Magazine Deposit and an Exploration Target for Switch Pit on Cockatoo Island, along with the results of the transhipment study. CSA Global Pty Ltd. (CSA Global), an ERM Group company, has reported a maiden Inferred Mineral Resource estimate (MRE) on the Magazine deposit, located on Cockatoo Island. The Magazine deposit is located wholly within Mining Lease M04/235-I, held by Pearl Gull Limited.

The MRE has been reported in accordance with the guidelines of the JORC Code (2012). The Mineral Resource incorporates all historical and recent drilling data completed from 2008 through 2021. A total of 31 drillholes, including 27 reverse circulaon percussion (RCP) holes and four diamond core holes for a total of 3,483.3m was used to inform the MRE.

Based on 2021 Pearl Gull diamond drilling core and field mapping observations, mining consultant CSA Global has estimated an iron Exploration Target2 for Switch Pit, comprising the Seawall haematite and the High-Wall haematite lens. The potential quantity and grade of the Switch Pit iron mineralisation is conceptual in nature. There has been insufficient exploration to estimate a Mineral Resource and it is uncertain if future exploration will result in an estimation of a Mineral Resource.

The ability of Pearl Gull to access international markets rapidly and cost effectively was a key work plan throughout 2022, running in parallel with the ongoing resource development activities. Transhipment Services Australia ("TSA") has finalised its engineering design and capital estimate of AUD 13.5 million, confirming low-cost barge loading and transhipment as a viable, capital effective approach. The proposed Barge Loading Facility ("BLF") is located within the existing port security limits of Cockatoo Island.

The BLF location has been selected due to its proximity to the Ocean Going Vessel (OGV) anchorage location, the projects existing resource deposits, haul road access and favourable depth near shore for construction of a marine facility. The scope of work undertaken by TSA was extensive and included loading and cycle time analysis, loading and transhipping method statements along with metocean analysis, aids to navigation, mooring and marine transhipment fleet selection. The transhipment scope of works provides the basis for design layout and costing for Pearl Gull.

TSA has prepared indicative estimates from various 3rd party contractors and suppliers for the various major components of the construction. The Capital cost estimate (+/- 30%) is AUD 13.5 million.