Playa Verde advances towards FID

HALO MINERALS PLC

("Halo Minerals", the "Company" and, together with its subsidiaries, the “Group”)

Playa Verde advances towards FID

Class 3 Engineering Update Confirms Development Case

Halo Minerals plc (AIM: HALO), the copper development company focused on the recovery of critical minerals from legacy mining waste, is pleased to announce completion of the BIOS Mining & Infrastructure ("BIOS MI") Class 3 engineering and cost update for the Playa Verde copper and gold tailings reprocessing project in Chile ("Playa Verde" or the "Project").

The BIOS MI update establishes a current technical and cost basis for Playa Verde using 2026 market conditions and represents a significant milestone in the Company's pathway towards Final Investment Decision ("FID"), project financing and construction. The capital and operating cost estimates are classified as AACE Class 3, with an estimated accuracy range of -10%/+15%, consistent with a basic engineering and bankable-feasibility level of definition.

The update confirms a defined development case based on processing of approximately 5 million tonnes of material per annum, producing approximately 8,640 tonnes of recovered copper and 1,400 ounces of gold annually through a combination of LME-grade copper cathode and copper-gold concentrate production, and advances the Project through the remaining FID workstreams required for construction readiness.

Investment Highlights

• Class 3 capital cost estimate of approximately US$92.8 million, excluding VAT, based on a third-party dredging service model. Comprising:
  • US$70.2 million costs for the engineering, procurement and construction contract;
  • US$22.6 million for general and administrative, project administration and contingency costs.
• Estimated operating cost of approximately US$2.20/lb recovered copper under the base case scenario.
• Production profile based on approximately 5.0 Mtpa (million tonnes per annum) throughput over an initial seven-year operating life.
• Target steady-state production of approximately 8,640 tonnes of recovered copper plus 1,400 ounces of gold per annum.
• Indicative implementation schedule of approximately 18 months, with study planning assumptions supporting a potential October 2028 operational start-up.
• Potential value-engineering opportunity identified which, if validated during detailed engineering, could reduce CAPEX by approximately US$6 million to US$10 million.
• Completion of the BIOS MI update enables the Company to transition focus from engineering validation towards financing execution, commercial contracting and FID readiness.

Andrew Dennan, Chief Executive Officer of Halo Minerals, commented:

"Completion of the BIOS MI Class 3 engineering and cost update represents an important step in converting Playa Verde from an advanced technical project into a financing and construction proposition.

“The update establishes a current capital and operating cost basis, confirms the defined process route and provides the platform from which we can complete the remaining work required for Final Investment Decision. Our focus is now on value engineering, the updated CPR, permitting, commercial contracting and assembly of an appropriate project financing package.

“Playa Verde offers investors a de-risked differentiated exposure to copper through the recovery of historical tailings in Chile, with a defined production plan and a development capital requirement that we believe is capable of supporting a range of financing solutions. With our lender-grade virtual data room populated and engagement with prospective financing and commercial counterparties progressing, the Playa Verde project has robust economics and is rapidly progressing into the next phase of project delivery.

“We will continue to apply a disciplined and transparent approach as we advance the Project towards FID."

Advanced Copper Development Opportunity

Playa Verde represents an advanced copper development project based on historical surface-deposited copper-bearing tailings located in Chile's Atacama Region. Unlike a conventional greenfield mining project, Playa Verde benefits from a defined JORC compliant resource base, a previously established processing route, extensive historical engineering work and a clear pathway towards permitting, securing financing and construction.

The BIOS MI update confirms that the Project remains based on the processing route previously defined in its definitive feasibility study (“DFS”) and incorporates screening, agitated acid leaching, solvent extraction and electrowinning, neutralisation and water treatment, and flotation concentration. The engineering update provides an updated capital and operating cost basis while maintaining the core technical design established through previous technical work.

Capital-Efficient Scale and Financing Potential

Management believes Playa Verde is positioned within a development scale that is potentially suitable for a diversified financing strategy incorporating institutional and/or private credit project finance, strategic investment and commodity-linked funding solutions including prepayment and/or royalty/stream financing. The BIOS MI Class 3 Study CAPEX estimate of US$92.8 million serves as the expected upper limit of costs needed to complete the construction phase of the project and represents only an approximate 3.5% increase over the 2016 DFS study case despite a decade of inflationary cost pressure. This is also subject to a number of ongoing optimisations targeting CAPEX reduction which include the opportunity to adapt the process flow sheet to reduce the number of belt filters from eight to two and include four pressure filters in the dewatering sections before and after leaching as well as optimising the budgetary quotations received over the summer through the upcoming competitive tendering process for construction. It is estimated that CAPEX could be reduced by a further US$ 6 million to US$10 million as the process continues.

The Company's current focus is to complete the remaining technical, commercial and financing workstreams required to conclude construction financing and take a FID. The ongoing financing process is supported by a substantially populated institutional virtual data room, updated technical documentation, commercial engagement with prospective offtake counterparties and completion of the remaining FID readiness activities.

FID Catalysts and Value Drivers

The principal programmes currently being advanced include:

• Completion of the updated Competent Person's Report and updated project resource evaluation - commissioned in early September 2026.
• Completion of value engineering and optimisation programmes, with a view to realising meaningful CAPEX reductions.
• Progression of permitting and environmental workstreams - already in process and positioned to accelerate following receipt of mining use of beach easement which is expected by 31 December 2026.
• Advancement of the human health and stakeholder engagement programmes - initiated in April 2026.
• Finalisation of long-term power and sulphuric acid procurement strategies, to optimise operational costs and secure supplier price stability.
• Completion of EPC and major equipment tender preparation.
• Progression of commercial discussions with potential offtake, financing and strategic partners.
• Establishment of a preferred project financing structure capable of supporting construction and commissioning.

Financing Strategy

Halo is evaluating a range of funding solutions that may include senior project debt, strategic investment, royalty and streaming finance, equipment finance and offtake-linked prepayment funding structures, discussions with financing and commercial counterparties are ongoing.

The Company's objective is to develop an appropriately balanced capital structure which aligns repayment obligations with the Project's anticipated operating cash generation profile while maintaining funding flexibility throughout construction and ramp-up.

Strategic Importance of Playa Verde

Management believes Playa Verde offers investors a differentiated exposure to copper through the recovery and reprocessing of historical tailings in Chile, one of the world's leading copper-producing jurisdictions.

The Project is designed to recover copper and gold from historical tailings deposited at Chañaral whilst supporting the long-term management of a legacy mining-impacted coastal environment. The Company believes this combination of copper production, resource recovery and environmental stewardship provides a distinctive development proposition within the global critical minerals sector.

The advancement of Playa Verde is occurring against a backdrop of growing global demand for copper linked to electricity networks, energy infrastructure, electrification, digitalisation, artificial intelligence infrastructure and data centres. Industry analysis continues to highlight copper as one of the key strategic metals required to support energy transition and digital infrastructure development over the coming decades.

Implementation Programme and Outlook

The BIOS MI study assumes an indicative implementation period of approximately 18 months comprising engineering, procurement, construction, commissioning and start-up activities running in parallel. The study planning case assumes project start-up in October 2028.

This timeline remains subject to completion of financing, permitting, detailed engineering, procurement, construction and commissioning activities and should not be viewed as formal production guidance.

The Company will continue to update shareholders as significant technical, permitting, commercial and financing milestones are achieved.

Qualified Person

The technical information contained in this disclosure has been read and approved by Mr Orlando Rojas Vercelotti, a Civil Mine Engineer for EMI Ingenieros y Consultores S.A. and a Competent Person as defined in the JORC Code (2012) and acts as a Qualified Person under the AIM Rules - Note for Mining and Oil & Gas Companies. This announcement contains inside information for the purposes of article 7 of the UK Market Abuse Regulation. The Directors of the Company are responsible for the release of this announcement.

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Forward Looking Statements

This announcement contains forward-looking statements relating to expected or anticipated future events and anticipated results that are forward-looking in nature and, as a result, are subject to certain risks and uncertainties, such as general economic, market and business conditions, competition for qualified staff, the regulatory process and actions, technical issues, new legislation, uncertainties resulting from potential delays or changes in plans, uncertainties resulting from working in a new political jurisdiction, uncertainties regarding the results of exploration, uncertainties regarding the timing and granting of prospecting rights, uncertainties regarding the Company's ability to execute and implement future plans, and the occurrence of unexpected events.   Actual results achieved may vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors.