ExGen

Results Of Metallurgical Testing At Empire Mine, Idaho & Drilling Update At Navarre Creek - Seite 2

Process flowsheet option	Cu Recovery	Au Recovery	Ag Recovery	Gross Revenue (USD/metric Ton)
Flotation Only	37.3%	48.8%	44.6%	35.54
Flotation plus ATS Leach of Flot Tails	66.5%	92.7%	73.0%	64.42
Flotation plus Acid Leach of Flot Tails	87.8%	48.8%	44.6%	57.80

Table 1: Metal recovery flowsheet options

Note: Revenue based on $1,875/oz gold, $4/lb copper, and $18.75/oz silver

Phoenix noted:

1. The results of the metallurgical test work completed thus far on the Empire open pit oxide deposit have further solidified the Company’s confidence in the project.
2. When Phoenix became involved with Empire in 2017, the Empire Mine was considered a copper project only. As a result of further drilling and test work conducted since that time, the Empire Mine has evolved into a robust polymetallic deposit consisting of copper, gold, and silver. These recent metallurgical results show that a number of processes exist, allowing for the recovery of all three metals.
3. The flotation process is an industry standard for the metal extraction of sulphide copper deposits. By taking the time to test this process on Empire’s oxide material, Phoenix believes it has set itself up for success both in the short and medium term. Phoenix is continuing down this path with the expectation that a flotation-based process will further improve the economics and Environmental, Social and Governance credentials of the Empire open pit, while potentially streamlining the later development of the Company’s deeper underground sulphide mineralization.
4. Additional optimization and costing of the flotation plus leaching scenarios will define the best process design for the Empire open pit. Continued test work and mine plan development will also determine whether it will be possible for Phoenix to minimize the Project’s footprint by constructing the agitated leach tanks on private property adjacent to the pit, which may offer significant environmental and economic benefits. The results of the continuing optimization work are anticipated in Q4 2023.

Navarre Creek