2022 In Review

Generation Mining Advances Marathon Palladium-Copper Project Towards Construction - Seite 2

Throughout the year, we added several experienced senior executives to the team, with Christopher Stackhouse added as Vice-President, Finance. Mauro Bassotti joined as Vice President, Geology, Ann Wilkinson was appointed Vice President, Investor Relations, and Ruben Wallin was appointed Vice President, Sustainability. Adam Segal joined as General Counsel and Corporate Secretary and Rod Thomas stepped down as Vice President, Exploration while remaining on the board of directors. Kerry Knoll migrated from his role as Executive Chairman to the role of Chairman.

In May the Public hearings conducted by the Joint Review Panel (“Panel”) for the Environmental Assessment of the Company’s Marathon Project were concluded. The Panel process is the highest standard of environmental assessment review in Canada. The Project’s Environmental Impact Statement and other evidence were subject to a rigorous review by the Panel and more than 50 participants. The Panel hearings, together with the Panel’s subsequent report and recommendations, represented the culmination of the Panel’s environmental review process that had been put on hold by the Marathon Project’s previous proponent, Stillwater, in January 2014, and restarted by the Company in July 2020.

In June we updated the markets on Phase II of our financing activities (Phase I being the Wheaton PMPA) detailing our request for proposal process (“RFP”) for the balance of the project financing. The RFP process resulted in strong initial non-binding expressions of interest from more than a dozen lenders including commercial bank lenders, export credit financiers, private equity companies, potential offtake partners and equipment lessors. The interest was significant, with total non-binding financing offers in excess of $1 billion. The Company analyzed the proposals with a select group of lenders with a focus on maximizing capital from non-equity sources while minimizing the cost of capital and maximizing equity returns. Endeavour estimates that the project can carry approximately US$400 million in senior debt based on the Company’s Feasibility Study dated March 3, 2021.

In July 2022 Gen Mining announced an agreement with Valard Equipment LP (“Valard”) for the lease of a construction camp (the “Camp”) located in Marathon, Ontario until June 30, 2023 (the “Lease Term”) and an option, exercisable at Gen PGM’s discretion, to purchase the Camp on or before the end of the Lease Term. In connection with this agreement, Gen PGM has also leased the existing serviced camp site from the Town of Marathon. The Camp will be used to accommodate up to 286 workers for the initial site preparation phase through the construction phase. Additional accommodation capacity will be secured for the Marathon Project as construction ramps up to the maximum peak of approximately 1000 workers. The Camp has all the required infrastructure services, including a commercial kitchen, a recreation facility, a maintenance facility, and management offices. BN will operate and service the Camp as part of Gen PGM’s commitments to BN under the CBA.