Acquisition Of Mining Rights Over Advanced WA Iron Ore Project

September 17, 2020

Highlights:

FEL to acquire a 51% interest in Gold Valley Iron Ore (“GV”) Mining Rights Agreement over Wiluna West JWD deposit wholly owned by GWR Group Limited (GWR Group)
Total JWD mineral resource of 10.7 Mt @ 63.7% Fe, 2.8% SiO2, 1.5% AI2O3 (JORC 2004 – refer GWR Group ASX announcement 11 April 2013)
60% classified as Measured resource
Significant development work completed including resource optimisation, pit design and mine plan
Majority of approvals granted including the Project Management Plan (PMP), which was approved in January 2020
Mining Rights Agreement requires a minimum of 300,000 tonnes mined and trucked from tenement within 21 months of the PMP approval date so FEL will target early commencement of operations to meet this date and take advantage of current high iron ore prices
Initial consideration of $500,000 cash to reimburse GV’s past cost and 12.5 million shares payable at settlement, with a further $250,000 (in cash or shares at FEL’s election) payable upon FEL making a decision to mine
Acquisition funded from existing cash reserves

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