PYX Resources Limited / EPIC: PYX / Market: Standard / Sector: Mining

2 September 2025

Pyx Resources Limited

("PYX" or "the Company")

Operational Disruption Due to Indonesian Regulatory Shift

PYX Resources (NSX: PYX | LSE: PYX), today announces a significant disruption to its operations in Central Kalimantan, Indonesia, following recent regulatory changes introduced by the Indonesian government.

The disruption stems from a recent decision by Indonesia's Ministry of Energy and Mineral Resources not to reinstate the annual RKAB (Work Plan and Budget) system until 2026. According to government statements, the move is driven by the need to address oversupply, improve market stability, and enhance regulatory oversight across multiple mining sectors-including coal, bauxite, nickel, and mineral sands.^[1]

The Company confirms that its IUP license for the Mandiri deposit expired on 31 August 2025. Due to the current regulatory uncertainty, PYX is forced to postpone the renewal of its license, resulting in a temporary suspension of operations at Mandiri. This development has had a direct and material impact on the Company's production and commercial activities.

While PYX supports the government's broader objectives to strengthen governance and transparency, the abrupt nature of the policy shift has created significant uncertainty for mining operators. The lack of a clear transitional framework has left companies like PYX unable to proceed with license renewals, despite a long-standing commitment to responsible mining.

According to FerroAlloyNet, the new RKAB framework has "aroused suspicion in the industry," with experts warning that the shift to annual approvals could destabilize production planning and overwhelm regulatory systems. Singgih Widagdo, Chairman of the Indonesian Mining & Energy Forum (IMEF), emphasized that Indonesia's 4,100+ active mining permits would be difficult to manage under a yearly approval cycle. He argued that the previous three-year RKAB system allowed for more realistic production targets and long-term planning, citing coal output projections of 922.16 million tons for 2024 as an example.^[2]

PYX remains committed to its long-term strategy of consolidating mineral sands resources.

The Company will continue to monitor developments and provide further updates as appropriate

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For more information:

This announcement is authorised for release by Oliver B. Hasler, Chairman and Chief Executive Officer.

About PYX Resources

PYX Resources Limited (NSX: PYX | LSE: PYX) is a producer of premium zircon dual listed on the National Stock Exchange of Australia and on the Main Market of the London Stock Exchange. PYX's key deposits, Mandiri and Tisma, are large-scale, near-surface open pit deposits both located in the alluvium-rich region of Central Kalimantan, Indonesia. PYX, whose Mandiri deposit has been in production since 2015, is the 3^rd largest publicly traded producing mineral sands company by zircon resources globally. Determined to mine responsibly and invest in the wider communities where we operate, PYX is committed to fully developing its Mandiri and Tisma deposits, with the vision to consolidate the mineral sands resources in Kalimantan and explore and acquire mineral sands assets in Asia and beyond.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION

This Announcement contains forward-looking statements and forward-looking information within the meaning of applicable Australian and UK securities laws, which are based on expectations, estimates and projections as of the date of this Announcement.

This forward-looking information includes, or may be based upon, without limitation, estimates, forecasts and statements as to management's expectations with respect to, among other things, the timing and amount of funding required to execute the Company's exploration, development and business plans, capital and exploration expenditures, the effect on the Company of any changes to existing legislation or policy, government regulation of mining operations, the length of time required to obtain permits, certifications and approvals, the success of exploration, development and mining activities, the geology of the Company's properties, environmental risks, the availability of labour, the focus of the Company in the future, demand and market outlook for precious metals and the prices thereof, progress in development of mineral properties, the Company's ability to raise funding privately or on a public market in the future, the Company's future growth, results of operations, performance, and business prospects and opportunities. Wherever possible, words such as "anticipate", "believe", "expect", "intend", "may" and similar expressions have been used to identify such forward-looking information.

Forward-looking information is based on the opinions and estimates of management at the date the information is given, and on information available to management at such time. Forward looking information involves significant risks, uncertainties, assumptions, and other factors that could cause actual results, performance, or achievements to differ materially from the results discussed or implied in the forward-looking information. These factors, including, but not limited to, fluctuations in currency markets, fluctuations in commodity prices, the ability of the Company to access sufficient capital on favourable terms or at all, changes in national and local government legislation, taxation, controls, regulations, political or economic developments in Indonesia and Australia or other countries in which the Company does business or may carry on business in the future, operational or technical difficulties in connection with exploration or development activities, employee relations, the speculative nature of mineral exploration and development, obtaining necessary licenses and permits, diminishing quantities and grades of mineral reserves, contests over title to properties, especially title to undeveloped properties, the inherent risks involved in the exploration and development of mineral properties, the uncertainties involved in interpreting drill results and other geological data, environmental hazards, industrial accidents, unusual or unexpected formations, pressures, cave-ins and flooding, limitations of insurance coverage and the possibility of project cost overruns or unanticipated costs and expenses, and should be considered carefully. Many of these uncertainties and contingencies can affect the Company's actual results and could cause actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, the Company. Prospective investors should not place undue reliance on any forward-looking information.

Although the forward-looking information contained in this Announcement is based upon what management believes, or believed at the time, to be reasonable assumptions, the Company cannot assure prospective purchasers that actual results will be consistent with such forward-looking information, as there may be other factors that cause results not to be as anticipated, estimated or intended, and neither the Company nor any other person assumes responsibility for the accuracy and completeness of any such forward-looking information. The Company does not undertake, and assumes no obligation, to update or revise any such forward-looking statements or forward-looking information contained herein to reflect new events or circumstances, except as may be required by law.

No stock exchange, regulation services provider, securities commission or other regulatory authority has approved or disapproved the information contained in this Announcement.