AGC Doubles South Cobar – Growth Moves Ahead

Key Concepts:

• AGC's acquisition of EMS shareholders' stake
• South Koba basin and Coba project
• Brown's Reef and Achilles prospects
• Resource growth and estimation
• Dilution and capital structure

Acquisition and Strategic Position

AGC has significantly expanded its holdings in the South Koba basin by acquiring the entire belt, making it the largest holder in the Coba project. This strategic move welcomed EMS shareholders onto AGC's register. The transaction resulted in approximately 3% dilution to AGC's capital structure, which is considered a favorable outcome given the "fantastic price" at which the deal was transacted, highlighting it as a "really strong growth asset."

Doubling Footprint and Resource Potential

The acquisition has effectively doubled AGC's footprint in the region. More importantly, the potential resource base acquired with Brown's Reef is described as "absolutely huge."

Resource Development and Future Drilling

• Achilles Prospect: AGC will soon release a maiden resource estimate for the Achilles prospect.
• Brown's Reef Prospect: Following the return to drilling in February of the following year, AGC will aggressively focus on Brown's Reef. The objective is to "double our resource" at this prospect.

Resource Growth Projections

AGC anticipates achieving a resource estimate of "15 to 20 million tons" within their South Koba project by the end of the next year. This represents "rapid resource growth" from discovery to the end of the following year, a development that the company is "really excited to be able to deliver."

Synthesis/Conclusion

AGC's recent acquisition has solidified its dominant position in the South Koba basin, doubling its operational footprint and significantly enhancing its resource potential, particularly with the Brown's Reef prospect. The company is poised for rapid resource growth, with a maiden resource at Achilles imminent and an aggressive drilling campaign planned for Brown's Reef, aiming for a substantial increase in the overall resource tonnage by the end of the next year. This strategic expansion, achieved with minimal dilution, positions AGC for significant future development.