Adyton Reports First Drill Intercepts of up to 36 Grams per Tonne Gold from Its Wapolu Drill Campaign - Seite 2

Figure 3: Fergusson Island Projects

To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/7416/250807_01e5af81941d89ba_003 ...

The Wapolu project is a proposed restart of the Wapolu mine which operated in the mid 1990's producing about 9,000oz of gold before shutting down due to low gold prices. The restart of Wapolu will be substantially easier than a green field project, being enabled by significant existing infrastructure such as airstrips, workshop and warehouse structures, and tailings impoundments.

The neighboring Gameta project is an advanced exploration asset being prepared to be taken into permitting and development, and lies approximately 30 km from Wapolu and has the benefit of being able to leverage some of the Wapolu infrastructure, such as the airstrip.

As previously reported, the Fergusson projects are under a Joint Venture Agreement with EVIH, granting EVIH the right to acquire up to 50% ownership interest in the project. This interest is contingent on the achievement of certain development milestones and a total investment of up to US$9.5 million, allocated as follows:

• US$8.5 million to fund project expenditures; and

• US$1.0 million as a direct payment to the Company, with US$500,000 already paid upon executing the agreement in May 2024.

• Once the projects are permitted and a financial investment decision made by the JV, the agreement provides for EVIH to provide a shareholder loan (8% interest charge) to the JV to fund the project development capital.

While this agreement at its end point results in Adyton diluting its interest at Fergusson Island to 50%, the agreement does provide for a complete "carried" funding solution to production for Adyton at its Fergusson projects.

For additional details, please refer to the official announcement dated May 13, 2024.

The Company notes that it has laid a strong foundation for its work programs at the two Fergusson projects (see Figures 4 & 5). The near-term focus will be infill drilling at Gameta to enhance resource confidence. The Company will also be receiving and interpreting further assay results across from the projects as they are received from the Intertek laboratory.

Figures 4 and 5: Camp construction progressing at Gameta

To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/7416/250807_adytonfig45.jpg

Resource Estimate

The existing Gameta and Wapolu Mineral Resource Estimate is noted in Table 1 below, with resources open at depth and along strike. The current drill programs at both Wapolu and Gameta are in part designed to test depth and strike extensions but also importantly to increase resource confidence to enable progression to Reserve Estimates and mining license (ML) application.