Adyton Resources: Honing In On Two Exceptional Prizes

0:04 Good morning or good evening, depending on where you're tuning in from. Today we are here with Aditin Resources' inaugural event on 6. It's a new story for us and we want to take the time to learn what we can from Tim Crossley, managing director. Tim, welcome and thank you for staying up late with us to accommodate the Western audience this morning. We will first be going over the corporate presentation and following that we will open the room up to questions. So please feel free to submit your questions using the chat box which can be found the bottom right corner of your screen.

0:34 As always, this event is being recorded and our team will be having it available for view and shortly after we conclude. With that said, Tim, welcome. The floor is yours. Yeah, thanks, Kyle. Thanks for having me. As you said, I'm actually in Brisbane, so it's quite late here. And, yeah, I think a great opportunity for me to sort of refresh the story for some people that probably may not have heard it for a while or even some of the new listeners in tonight. So, yeah, bear with me. We'll go through the slide deck. I'm just doing a shorter form slide deck today And then happy to take questions after or, yeah, after the end. So, thank you. Well, I guess, you know, just to kick things off, I mean, slide 1 here, yeah, gives a summary of what Adderton is really about. We're a P&G-focused exploration company.

1:38 We've got some new term cash flow opportunities, which I'll talk to a little bit more. And we've got an amazing growth story through Fenny Island, which sits in arguably one of the greatest Gold discovery belts or trends globally and is a very exciting opportunity for the company. Probably what we're not that known for, given the mineral resources that estimates that have been put out, they're Gold only, and we are seeing quite a lot of Copper coming into the system, particularly at Fenny. The other 2 projects on Ferguson Island are pretty much pure play Gold projects, although we do get quite a few Silver credits at our Gamma resource.

2:32 Stepping forward, why Adderton? For those listeners here that are not familiar with the story or haven't heard the story for a while, you know, why should you be considering Adderton as an investment opportunity? And I think there's 2 kind of really key points of difference that I think Adderton has and maybe not well understood in the market. For 1, we've got an existing resource base of 2.4Moz across our project. Particularly at Ferguson Island, there's really no discovery risk. These assets are very advanced exploration assets.

3:18 One of them was a previous historical mine in the 90s. And they are ready to take back into production and that's exactly what we're doing, starting with Wapalo and then we'll follow that up with Gamma. So prize 1 for us is getting into cash flow. And as everyone knows, as a junior explorer developer, once you're in cash flow, your world changes. It provides you optionality. And That's the position we want to be in. The second prize that we've been working on now for some time, we've been drilling at Fenny Island since late February, March 2025. We've got a foundation resource of 1.46Moz. You'll see on this slide here, Feni sits on the Lahir discovery trend between Lahir and Panguna in Bougainville, and then north-west of Lahir you've got Simbiri.

4:21 So when you work down that discovery trend, you've got Simbiri, which is around about an 8Moz resource, Lahir at around about 87Moz and Pangurna at 25Moz and 6Mt of copper. So, when I refer to that discovery trend as being one of the number 1 discovery trends globally, I think those numbers speak for themselves and Fenny is right in the middle of it. The opportunity at Fenny for us is really built around the regional geology and the fact that that regional geology supports tier 1 assets. In fact, every one of those discoveries in that trend has gone right through to production and has been producing assets. Obviously, many people in the audience tonight would be familiar with Pangurna, which got shut down in the mid-eighties due to, I guess, Rio Tinto not having full support of the local landowners.

5:30 But it's a wonderful resource. It's a huge resource and I'm sure it will get restarted at some stage in the future. The other thing about our position, particularly at Fenny, it's a whole of an island land position. So we don't have any other explorers on Fenny. It's a district scale. And when I show some upcoming slides, the opportunity at Fenny is not just about the existing Kabang resource. There's multiple other opportunities and also porphyry opportunities at Fenny over and above the existing epithermal deposit. I think another key point of difference for Adderton is our financing and funding position.

6:22 Cash position is still strong. I should just clarify that on this slide here it's showing a cash position of $17 million. This slide wasn't updated, but we're sitting on a cash position of around about $14.5M, $15M. And we're fully funded at Ferguson Island through our JV earning with no impact on Adderton's balance sheet whatsoever. So, that's a very enviable position to be in, to have effectively the full Treasury being able to allocate it to the ongoing exploration efforts at Fenny, whilst the JV is funding the development and right through to, including CAPEX, right through to production at Ferguson Island.

7:11 I think finally, just on this slide here, is just to talk a little bit about Adderton's experience in PNG. Myself personally, I've been working in Papua New Guinea now since about 2015 through an ASX company called Pacific Lime and Cement, formerly Mayo Resources. In that time, we permitted 2 projects from discovery to full permitting. In fact, we'd be the only company that's done that. So, we've got a good understanding of what needs to be done in PNG. We've got a good relationship with the Mineral Resources Authority. We've got an excellent relationship with our local stakeholders, which is critical, and the various provincial governments in Milne Bay and in New Island Province.

8:00 So, I think our ability to deliver in Papua New Guinea is probably second to none. And I think, you know, I don't think Adderton

8:15 in the last 3 years has really missed any development milestones that we put, that we made commitments to our shareholders. We've systematically been able to absolutely deliver what we said we would do and we will continue to do that. I think that's another key point of difference. Just on the corporate structure, because I think it's important to understand the corporate structure and where the JV sits with respect to the listed company. On this slide here, you'll see the Adderton resources, which is the LISCO on the TSX-V. It owns 2 companies, Ferguson Mining Pty Ltd is a Singaporean company which owns the 2 Ferguson Island tenements.

9:05 It's actually at the Singaporean company level that the joint venture with EVIH sits. So, it doesn't sit at the headco level. It doesn't contaminate or affect our share structure in any way. And then on the other side, on the left-hand side of the screen, you've got Adderton owning a company called Adderton Resources Australia, proprietary limited, which owns the Adderton Exploration Limited P&G Company, which owns Fenny Island. So very clear, discreet value pillars, right-hand side being your new term production value pillar and the left-hand side being the exploration upside value pillar. Just a quick overview on Fenny and the positioning of Fenny, which I've touched on, but I'll just repeat on some of the points here again. I mean, the first point is really the region and the trend that FENI sits in and the similarities that sit with FENI and, for example, Lahir, the adjacent project.

10:12 Similar age rocks, similar style mineralisation and both hosted in geothermally active extinct volcanoes. You know, you might ask then, well, why hasn't Fenny been discovered like Lahir? And I think the last point is really the key point of difference here is that post the mineralisation event at Fenny, there was a subsequent volcano, volcanic eruption, which buried the ore body, the Cobang ore body. Typically that depth of cover or post-mineral cover ranges from 0. So there is expression at surface in a few locations with a maximum depth of about 80, 90m and an average depth based on all our drilling of probably around about 30 to 50 metres. So it's not like we've got an ore body that's hundreds of metres below the post mineral cover.

11:13 And most of our drillings, as I just mentioned, demonstrates that the post mineral cover is probably averaging around 30 to 50 metres above the sharp contact zone where you get back straight into the mineralised rock. As I mentioned right up front, Fenny is a whole of island land position. You can see in the middle of the island there the Cobang existing mineral resource estimate, epithermal style mineralisation.

11:49 We've now been drilling on the limits of Cobain and starting to really better understand the structural controls and where the ore body is now looking like it's trending. And I think if you can stay tuned with our press releases, we're just waiting on assays to come in for some of our northern extension holes, which visually are looking very, very exciting for us. And if the assays confirm strong mineralisation, I think it will demonstrate that this ore body extends north in the direction of Dome and Saddle and is completely open in that direction and potentially is extending south in the direction of Lacey with a potential extension and connection to what looks like a porphyry signal underneath Dan Margill there.

12:47 The next phase of work at Fenny, other than the continuation of drilling, is we're about to embark on a very significant ground-based geophysics IP project That will commence towards the end of June, early July, be about a 4 month program. And the purpose of that will be to identify new drill targets and in particular, try and identify some of the porphyry targets and additional epithermal targets that sit within, or potentially not just within those red polygons, there could be some new areas that sit outside

13:32 the MAG anomalies and the demagnetised zones that we've got highlighted on this slide here. So I think we'll continue to drill. We've got 2 drill rigs going 24 by 7. There'll be an overlay of activity on Fenny starting towards the end of July. And sorry, at the beginning of July, which will be the IP survey. By the time we complete that survey, interpret the results, we should be in around about September coming up with some new and significant opportunities from that IP survey, which I think provides a huge exploration upside opportunity for the company.

14:27 In terms of the drilling that we've done to date, one of the things that I think Fenny has demonstrated consistently is its batting average of plus 100gm holes. Both reconfirmed the mineralisation in the Kabang ore body, but now we're starting to step out and we're starting to see excellent long intercepts. I think drill hole 17 was the last drill hole we released, showing multi-hundred metres of continuous Gold mineralisation and in that particular hole, some good Copper as well.

15:01 So we know we're dealing with a very big mineral system here. What we're trying to hone in now on is understand the extensions of the Kibang system, both north and south, but also to identify

15:19 the higher grade feeder systems and also the ultimate limits and extensions of these feeder systems. And that's the current focus of the drill campaign right now. Back in 2021, we did a small campaign at Fenny. It was only a 4-hole program. And one of the really exciting holes in that program was ADK4, which is shown on this screen here, where there was 6.5m of 5.1% Copper in about an 80m 0.5% Copper, all coming with about a gram Gold intercept. Clearly an outstanding Copper intercept.

16:05 And that gave us a lot of excitement around the Copper opportunity, which I think is still not well understood for Fenny.

16:13 I'm not necessarily suggesting that copper is going to be the dominant payable mineral in the mineral basket. We're not seeing that yet. It looks like it's definitely still a gold dominant payable mineral basket, but copper could become a very significant component. And I think the other exciting thing that we're seeing in the northern perspective area that you can see on the arrows here, to a lesser extent on the south at this stage anyway, is porphyritic-style mineralisation. We're starting to see a lot of Silver, we're starting to see Molybdenum and we're seeing again increasing Copper. So it's a very exciting time for Fenny.

16:59 And if we can, through the next 6-months and along with the IP program, identify some new targets. I think we've got very, very high conviction that Fernie will ultimately prove to be a Tier 1 resource opportunity. It's just simply been constrained by lack of drilling and lack of exploration over the years.

17:24 Just some photos of our operation. The core shed on the left-hand side, We use a drilling company called Xenex, which is actually a 50-50 JV between Lahir landowners and an Australian company. All our drilling's done to a geothermal standard, so we use blowout protection. And one of the reasons we selected Xenex to do the drilling at Fenny was because of their experience of drilling at Lahir, which is also geothermally active. We've got a very competent crew and, you know, in spite of, you know, the challenges of wet weather and so forth that can be thrown at you in drilling in a tropical environment, I think it would be fair to say that we've really lost no drilling time in the last 18, 15 months of drilling at Fenny. It's been an exceptional performance on the ground by the team.

18:22 Just moving to Ferguson Island, which is our near-term production opportunity, 2 tenements about 30-35km apart on Ferguson Island. Waupolo, which is the

18:37 tenement on the left-hand side, EL2549 and Gameta on the right-hand side, the blue boxes. Waupolo was produced, there's a bit of conjecture here, but somewhere between 9,000oz and 12,000oz in the mid-90s. It was shut down through a combination of low Gold prices, but in reality, one of the big issues that the company had was they built an ore processing plant for an oxide ore body. And based on all the work we've done and subsequent work that that company has done that we've learnt from is that actually the ore body is basically a sulphide ore body.

19:27 There is some oxidised ore close to the surface, but it's predominantly a sulphide ore body. And that company was plagued with low recoveries just simply because they built the wrong flow sheet.

19:42 We've now done about 4,300 metres of drilling with our JV partner. We've completed 3 lots of metallurgical tests. We're very comfortable that we'll get good recoveries in the low to mid 80s. And potentially if we, as a second phase

20:04 expansion, if you want to call it. If we put a scavenge leach circuit on our tailings, the test work we've done has shown that we can get up to about 92% recovery. We'll only be producing a concentrate, So we're looking at very simplistic flow sheets here. Mine crush, grind, float and sell precious metals or Gold-rich concentrate into the Asia concentrate market. What's changed apart from some of the points that I've just made then on the sulphide-hosted ore bodies and selling sulphide concentrates, apart from the obvious increase in the Gold price, is the payability of these concentrates. And the key reason for that change in payability, basically there's 2 drivers. 1, a huge amount of refining capacity is being built in China and that refining capacity is looking for feed.

21:06 So, that's they're all short of feed and that's driven the payabilities up significantly. The second key driver which has had a very material impact on the viability of these projects and the profitability of these projects is that there's now a global shortage of sulfuric acid. There has been for quite some time, and it's been exacerbated by the recent Middle East conflict where quite a lot of the sulphur capacity in the Middle East has been taken out. The combination of those 2 factors means that we're now looking at payabilities of at least 90% and potentially higher than 90% for our style of concentrates.

21:55 And if you think back what that payability was, when I first started to look at these projects 4 or 5 years ago, it was in the mid seventies. When you add those factors together with a plus 4,000 gold price, it's completely changed the viability and the profitability of these projects. In fact, these projects will generate considerable amounts of cash. It enables us to have very simple flow sheets. We're not trying to make dore. We're not trying to run any complex autoclave systems in remote environments. And I think we'll see this situation of a shortage in sulfuric acid for quite some time into the future.

22:52 And my view is that that's been driven not only because of the huge demand that's coming out of the high pressure acid leach Nickel industry in Indonesia, but you're also seeing Uranium processes need huge amounts of sulfuric acid. And of course, as we see more and more rare earths projects, there are also big users of sulfuric acid. So, you know, I think we've probably got a structural change globally which bodes very well for our assets and our sulphide rich concentrates. Look, the other thing that's worth noting on this slide here is just we're following the 4,300 metre program at Wapolo.

23:42 We've more than doubled the inferred resource there, And we've also started to see conversion from inferred to indicated. And we've also completed 4,000 odd metres at GammaDa and we'll be doing a mineral resource estimate, a new MRE for GammaDa. In fact, it's in draft as we speak. So, there's going to be good news flow, good press coming out of both those projects leading into the back half of this year. Wapolo's press will be dominated by development milestones, bulk sample permits, environment permits, mining lease, commencement of construction, commencement of operations.

24:29 Gamma will be more dominated by initially an updated MRE and then starting to get into feasibility and permitting applications, environment permit, mining lease and landowner studies. So there's a lot of good catalysts ahead of us with both those projects. And I think with that, I would expect a material re-rate in the share price once the market understands that and digests it. And let's not forget, Wapaloa is fully financed. I've got no financing risk there. So it's effectively a project that's de-risked geologically and it's de-risked from a financing perspective.

25:17 And I would argue and contend that it's largely de-risked from a permitting perspective and that's well in train. Just some photos of Wapolo here. Now with, you know, this is our camp. The bottom photo is the first drill hole with EVIH, our joint venture partner. EVIH have been a wonderful partner. They're very active on the ground. Most of the processing plant equipment for the recommencement of Wapolo has already been delivered to Park in New Guinea and most of it's already delivered on site. And, you know, I would say to my audience tonight, please stay tuned on the press releases that come out in short order with respect to Wapalo, which will give comfort that everything's still on track for delivery of an operation by quarter 4 this year.

26:22 A little bit of sort of geology here, I guess, some significant intercepts. Wapolo certainly ranks third out of our 3 ore bodies in Adderton. But why we like Wapolo and why we focused on Wapolo is simply it provides us with a short timeline to cash flow. It's not our best ore body by any stretch. It certainly ranks third, but there's still some great gold intercepts here at Wapolo. It's very shallow ore body, mineralisation from surface, low strip ratio, and it comes with a significant amount of existing and usable infrastructure from its previous operation, including air strips, infrastructure, tailings, impoundments, tailings, impoundments, even old workshop and warehouses.

27:23 So, we're not looking at necessarily, we don't go out there to promote Wapolo as being the next Lahir or anything like that. But I think Wupolo will be an excellent small cash generating low cost project, which will enable the company to become cash generating and then being able to use that cash to develop its other projects at Gammada and ultimately at Fenny. Switching to Gammada, currently with a resource of just over 500,000oz, 175,000oz indicated and the balance inferred. A much larger or potentially expandable ore body than Wapolo.

28:14 Again, very shallow mineralisation. And As a mining guy myself, what we love to see on projects like this is the first excavator bucket is going to be impaled. It's mineralised from surface. Interestingly, some of our more recent press that we put out on GammaDar, we've also intercepted a new ultra-high grade ore body within the existing envelope that we didn't know about. The most significant intercept in that was 12.5m at 28g, 3m at 106g and with a peak 1m intercept of 228g.

29:02 Gamma is a very exciting opportunity. Timeline to getting Gamma into cash flows is probably H1 2028. So It's certainly quite a good 12 months behind Wapolo. It is a greenfield development. We won't be sharing infrastructure with Wapolo. We will be looking at building a standalone processing facility and plant, tailings, impoundments, et cetera. But we really like the opportunity that Gammater presents to us. And as I said earlier, stay tuned on our press releases and certainly the upgraded MRE when it comes out, which should be in fairly short order. We've also done Mint test work at Gammater, as we've done at Wapolo, showing we get very, very good flotation recoveries around about 87% Gold, 85% Silver recovery, based on some test work we did after the 2021 program.

30:03 Those results were all done in Brisbane, Australia. Again, like Wipola, some very, very strong intercepts here. I would say Gamma, generally speaking, is a high-grade ore body. What we haven't shown on this slide here is the most recent drill results that we put out about 6-weeks ago. But this is a very, very advanced ore body ready to take into production. And the JV and Adderton will be working on that through the back end of this year, doing internal feasibility studies and then starting on environment permit application, mining lease application, and importantly, all the landowner studies and consents that are required as part of that process.

31:03 East Vision is a Singaporean Chinese group. How I met this company was they were completing the construction of a 55 megawatt run of river hydro project in Papua New Guinea. That project has now been completed. It's world class. I've been there. And it's now connected to the Port Moresby grid, which is the national capital, through a transmission line that was actually funded through an Australian aid project. They have subsequently signed a power purchase agreement with PNG Power Authority and is now generating substantial amounts of revenue through that project. Following the completion of the Etivu Hydro project, they indicated that their desire is to get involved in mineral projects and that's how they got involved in Adderton.

32:00 And I think their work on the ground, their work ethic, their ability to simplify and get things done is actually extremely refreshing to work with a group like this. And, you know, I think Adderton is actually very privileged to have a JV partner that's so committed to Papua New Guinea, but also has demonstrated such strong execution capacity in Papua New Guinea as well. Our board, I guess the most notable person on the board, which a lot of Canadians would be familiar with, would be Michael Gray. Now, Michael joined the board in around about August last year. And It was following a visit to site to Fenny Island and he saw the opportunity at Fenny. He saw the way we'd set up that drill program.

32:59 And I think Michael was, you know, very impressed at how our geologist, Chris Bowden, had set that up and on the back of that agreed to join the board. Sinton Spence, our chairman, is a Papua New Guinea resident and citizen, has been working and operating a very successful accounting business in PNG and certainly is very well connected with senior bureaucrats and politicians and is a great help to me in terms of navigating my way around the political environment in Papua New Guinea. David Irvine really represents one of the major shareholders, added, sorry, Mayor Resources, which has now changed its name to Pacific Lime and Cement.

33:53 Again, has got quite strong experience in doing business in PNG as well, but main purpose on the board is representing that strategic Pacific climate cement. Capital structure actually shares on issue about 315. This slide is slightly out of date. Options are correct here. Fully diluted is 365 as we speak right now, 365 million shares on a fully diluted basis, cash at the bank sitting as we speak today, just under 15 million.

34:41 Share price, I think we closed at 32 cents last night. And the register is, I guess, still very much dominated by retail and high net worths. We did see our register starting to be institutionalised and I think we'll see that progress as we move forward and advance projects, getting class from class to cash flow and continue to deliver great results from Fenny.

35:29 You know, from my own perspective and the board's perspective, I, you know, we're very aligned with shareholders. I think Insiders are sitting at around about 10% shareholding. Sington's a significant shareholder. I'm a significant shareholder. And we're very aligned with how we run the company and think about the companies through the lens of shareholders. And, you know, I think as shareholders who might be listening to this, I think you can take comfort that, yeah, we're, our interests and the way we think about the development and managing dilution and progressing and advancing the company, we're extremely well aligned with all shareholders.

36:17 Just to summarise, I guess the investment thesis for Adderton, the key point of difference, I think, is our new term cash flow, while still having an opportunity to develop a global giant at Fenny. I think that puts us in quite rare space in this sector. You know, all our resources, not only at Fenny, but also at Tagamata and Waipolo, they are open and expandable. We haven't captured any of the copper upside yet at Finney. And I think for those of you that might have doubts about Papua New Guinea as a jurisdiction, I would say that permitting and the development timeline in PNG would be amongst the fastest anywhere in the world.

37:09 Its royalty regime is extremely attractive, 2.5% royalty. I don't think there's too many jurisdictions that can compete with that. Papua New Guinea is a former British colony. It has Westminster system of government. It's had free and fair elections since independence in 1975 with, I think, about 7 Prime Ministers in that timeline. There's never been any nationalisation of mining projects or threats of nationalisation. I think PNG operates in a very responsible way. And, you know, from our perspective, I think when we get Apollo into production, people will probably wake up and realise, you know, how quickly we've been able to permit and get that project restarted, which, you know, I think, you know, trying to do a project in Australia or even Canada, those sorts of timelines would just be a pipe dream.

38:15 And the last point, being on an island is a huge advantage in developing projects in P&G as well. We don't have to helicopter support any of our rigs. We literally mobilize on large landing craft barges, walk our equipment off to the drill sites and get to work. The other point about being on an island location is that when you look to take your concentrate to market, it's also very attractive because you don't have to do expensive wharf developments. You can just do barge to ship transfers of your concentrate. But also importantly, from a social licence, the ocean is not actually held under any customary title. So you don't have to seek any consents, approvals to travel on the ocean like you do on the land. So that also minimizes your consenting process as well.

39:13 Kyle, I'll probably pause there and ask, I think that's the end, and ask the audience if they'd like to ask any questions. Sounds good. Thanks for the thorough presentation, Tim. Interesting story. I'm glad I'm sitting in learning more about it. There have been a few questions in the chat. Now you did touch on the East Vision Partnership, but Tim, how does the updated East Vision Agreement help move Wapolo closer to production and create value for shareholders? Yeah, so it was a simplification of an agreement that was drafted and not a drafted, sorry, but signed in May 2024. That agreement had in a way some complicated triggers for earning for EVIH. It had numerous triggers.

40:04 And what we agreed in this most recent update was to say, let's just have 1 trigger. That trigger is East Vision. You fund everything, all the drilling, all the permitting, all the capex to get Waipolo into construction and commission to name plate capacity, that is your earning to get to 50%. From then on, we are 50-50 JV and together we will develop GammaDa. But importantly, any cash shortfall that the joint venture has in the development of the Gamma project. East Vision's parent company has agreed to provide a soft joint venture or shareholder's loan, if you want to call it, at an 8% interest rate to finance, like a bridging loan you might call it, to finance any gap there.

41:07 So, what that means is we're fully funded to get Wapolo into production. There's no drag on Addison's balance sheet whatsoever. The JV then earn-in happens. We convert their Class B shares to Class A shares. We're now a 50-50 JV at that Singaporean company. The joint venture then develops Gammada And any shortfall in financing or funding that the JV might have to develop GammaData will be supported through a shareholder loan at an 8% interest rate from their parent company. What that means for shareholders is effectively those assets and the development of those assets right through to production as a financing solution through our joint, either through the JV partner or through the JV partner's major shareholder in China.

42:04 Great. Excellent. The May 26 release announced the successful completion of the Wardens' hearing at Wapolo. Can you walk us through what comes next in the mining lease approval process and what's a realistic timeline to first production given the deck still targets Q4, 2026? Yeah, so the warden's hearing is an important step because that's your final kind of social, local social licence to operate. So in simplistic terms, the warden goes to site and he asks the local stakeholders a very simple question. Do you support the development of this project to become a mine? Yes or no? That was unanimously supported in favour.

42:53 The warden will then write up his warden's hearing report that goes to the Mining Advisory Council and it's from, it's then the Mining Advisory Council will then make the determination on the issuing of the mining lease. So, the steps from the warden's hearing, in our case, is we have also sought a variation to our exploration licence to enable the bulk sample permit to occur. And the reason we've done that is that allows us to develop, prior to the mining lease being granted, It allows us to develop a production module to start, I guess, doing metallurgical testing samples with customers, but also to refine the processing flow sheet with various flotation reagents prior to the ML.

43:49 So, what I would say to the audience is stay tuned on the bulk sample permit variation application, because that's also a critical step in our desire to get into production by quarter 4. What will come after that? We would be expecting to get the environment permit granted And then after the environment permit would be the mining lease. I'm very confident the environment permit is extremely close. I would expect the mining lease is still a couple of months away. But even if the mining lease comes in around September or early October, which is when we expect it, will already be on the ground with a first production module being constructed on the back of our variation to our E-haul to enable the bulk sample permit. If that gets approved, that will enable us to do that. So we'll have boots on the ground before the ML.

44:52 So I think, you know, I sit here feeling extremely confident about still meeting our quarter 4 timeline for first production at Wapala. Thank you. You briefly touched on local support and this individual upon registration and within the chat has asked 2 similar questions. If you could just further elaborate, what support do you have from the Fenny Island landowners? What form does that take? Profit share, infrastructure development, environmental protection? We'll talk about Fenny Island. Yes. So, look, it's no different at Fenny to Apollo or Gamma. The processes that we go through are exactly the same. In Papua New Guinea, the social licence or local licence to explore is a simple landowner agreement with the principal landowners where we're drilling.

45:51 So, we have an MOU in place to compensate for disturbance. The more complicated elements around development occur at the mining lease stage. So, we don't have to go through those at the environment, at the EL stage while we're drilling. There will be a second phase of, I guess, permitting and local stakeholder consultation at the time we would seek to go to a mining lease application, which then involves a mining lease warden's hearing, similar to what we just saw at Popolo. We'd have to do detailed land ownership mapping using an anthropologist and a specialist in that area. I clearly identify the landowner boundaries.

46:42 And then we would need to sign a compensation agreement with the principal landowners who are affected by our operation. So that doesn't happen at the EL stage while we're drilling, while we're exploring. It happens once you start getting into the permitting stage. Now, the other thing to bear in mind here is that the P&G government has a, you know, under legislation can take up to a 30% equity position in any mining project. It's not a free carry. They have to buy their way in. And they will typically want to take a portion of that equity position for the landowners.

47:33 So, they might say, okay, we're going to take a 10% equity position and that 10% equity position is going to be held in trust for the landowners. In to that, the landowners will get a dominant share of the 2% royalty. So, A levy, that 0.5% levy is actually goes straight to the Mineral Resources Authority to fund that department. But out of the 2%, It varies on every project and it comes down to the negotiation at the time. But on the projects that I've been involved with, you typically see between 60 or up to 80% of that 2% will be allocated back to the local stakeholders, with the remaining 20 per cent staying at central government level.

48:39 You'd mentioned that the reason Fenley has not been discovered, or rather to the extent of Lear, its geological sibling given its size, what do you think Aditin, why do you think rather Aditin is the company to get it done finally? Well, look, I think we've got an excellent all-finder in Dr Chris Bowden. So, for one thing, I think I've got an excellent geologist with the right level of thinking. 2, we are well-funded. You know, I think one of the struggles of some of the junior explorers at Fenya is, you know, historically, they just have been poorly funded and haven't really been able to explore in a systematic manner, which is what we're doing.

49:29 So being well-funded to be able to undertake deeper exploration drilling, more systematic drilling as well as being able to fund a very significant IP program, I think gives us, you know, puts us in an extremely strong position to be able to ultimately, you know, identify and discover what are the feeder systems or the extensions to the Kabang ore body or completely new porphyry systems that are yet to be discovered. So let's not forget that this is not just about expanding the Kabang ore body.

50:19 It's certainly right now, the drilling is definitely focused on that, but it's more than that. It's also drill testing those 5 or 6 other red polygons that were on that slide, as well as some of the deep porphyry targets that we believe will identify through the IP survey. 2 quick more questions here before we let you go to bed there, Tim. The deck notes that Copper at Fenny could push Gold equivalent grades up to 56% higher once included in an MRE. What's the trigger for commissioning that update and how are you thinking about communicating that value to the market in the meantime? Look, I did make some sort of observations in my end of year, you know, letter to shareholders in December last year that we'd probably look at doing a mineral resource and MRE update at Finney towards the back end of this year. I don't think much has changed there.

51:21 We obviously got a very big time lag between drilling and assays at the moment here in Papua New Guinea, which is definitely a frustration. I think it's a frustration for us. It's a frustration for our shareholders. So, that, you know, as those assays come in, that will obviously shape and guide us as to the timing for that. The IP survey will also be an important data that will inform when we might move on that. But I'm still of the view that the right time to probably do an MRE update would be probably quarter 4 this year or worst case, early next year. Sticking on an updated MRE topic, the May 5th release reported an intercept at Gameta of 28.5g per tonne Gold over 12m, including 226g per tonne Gold over 1m.

52:18 How does that change your thinking on the sequencing between Wapolo and GammaDa and should we expect an updated MRE to capture it? The answer to the last part of that question is yes, 100%. It's work in progress right now. So it's a very, you know, it's a very informed question I should say. Does it change, you know, sequencing? No. I mean, the dye is cast on Waipolo, 100% cast. Equipment is purchased. A lot of it is already on site. You know, stay tuned on some of the things I've already spoken about tonight. But what it does do, it certainly gives us huge confidence that Gamma has got more to offer than what we probably thought in terms of an ore body. I think we'll see the average grade of Gamma materially improve.

53:16 And I think that intercept and not just that intercept, the overall quality of the intercepts that we saw from that program, drill program, you know, certainly has put a spring in our step around what Polo can be. And, you know, if anything, it came at great timing just after we'd signed the updated JV agreement. I think our JV partners are super excited about what they see at Gammater as well. And, yeah, it just gives us more conviction to push harder and faster to get that project into production as soon as we can after Wapolo. Great. Tim, thank you so much. Before everyone hits the X button and closes this tab, I just want to say, if you're interested in the Abiton story, this piqued your interest and you want to meet with management, there is a request meeting button in the bottom of your screen. Just hover over that. Also, when I close off the event, I'll also ask if you want to request a meeting with management. I'll share those details with the Aditon crew and we'll make sure they get back to you. But Tim, I'll let you go to bed here. Thank you so much.

54:26 It's been a pleasure. Thank you everyone for asking questions. If you did come in a little late, the replay will be available shortly, so keep your eye out on our YouTube channel for that. But thank you for your time. Interesting story.