Welcome to the California Mining Q1 2026 results presentation. I would like to now hand over to Mark Learmonth who's the CEO to begin the results presentation. Mark over to you.

Thank you and welcome to this results presentation for the first quarter of 2026. Can we just move through to the presenting team? I actually can't see the slides there. Yeah, just move through to the presenting team. So as you've heard, I'm Mark Leamond, Caledonia's CEO. I'm joined by Ross Gerard, the CFO, Victor Gopari, Executive Director. We're not altogether certain if Craig Harvey will be able to join us. We're having some some connectivity issues to Johannesburg which is where he is so Craig may or may not join us and then there's Morris Mason vice president corporate development and investor relations so that's the team should we move on okay just by summary as we've previously announced gold production in the first quarter was somewhat challenged there's about 14,700 ounces of production from blanket mine and that was entirely due to as you'll see in a moment the lower lower grades mine during the quarter notwithstanding the lower production financial performance was still robust supported by the higher gold price environment so revenue was up 18% to just over 66 million profit was also higher profit after tax was up nearly 70% to nearly 19 million and also very strong cash generation, in particular free cash flow more or less tripled from $4 million to $12 billion in the quarter. As you might expect with lower ounces produced and particularly the effect of the lower grade that affected the cost per ounce. So cost per ounce, the oil-interstating cost increased to $2,700. Having said that it's worth noting that our cost per tonne was very much in line with our expectations so if we're going to get the if we can get the grade back and as I show you I think we can the these these unit costs cost brown should should normalize. It's fair to say that as again as you see in the moment it's fair to say that after the end of the quarter April and so far into May production of Blanket has very much improved and Blanket is now running as expected. So that's Blanket. Bilbo's Gold project is proceeding very well. As you know we published a feasibility study in late November last year. In January this year we had a very successful convertible bond raise in New York raised 150 million dollars and we're now continuing to implement the rest of the funding strategy and we're also making good progress with DRA in terms of finalising the designs and actually moving this project forwards. But Victor will talk to us about that later on. As you know we've had some very encouraging deep level exploration results at Blanket Mine. Hopefully Craig will be able to join us and give a bit more detail on that. But that continues to support the long-term sustainability of Blanket Mine and recognises the confidence that we have in the resource. As usual, Blanket, Caledonia sorry, declared the usual dividend of 14 cents per quarter. That will be paid shortly and as another sort of housekeeping point, Julan Lovu, who's a very experienced mining executive, joined the board in November 2035 at the AGM last week. He was appointed as chairman. Okay so let's move on to just consider the operating results. Let's start with safety. Not much to say in terms of safety, it was a very very good quarter with improving ratios. That really reflects our continued focus on proactive risk prevention in particular. I'm very pleased to see there's been a substantial increase in the incidence of near-miss reporting which is one of the key ways that we use to raise safety awareness and to act proactively to address safety issues before they become a problem. So safety is very good but clearly it continues to be an area of significant focus. It's never finished. But should we move on to the next slide? This is the usual two graphs. The top one shows grade and tonnes. The bottom one shows recovery and ounces. You'll see from the top graph the tonnes have been stable at approximately 200,000 tonnes milled per quarter. But you can see the grade. The grade fell progressively from the second quarter of last year through into quarter three and quarter four and then further into quarter one and that reflects an issue that we've disclosed previously which is the effect of two falls of ground which together meant that we were excluded from relatively high ton, high grade areas which we relied upon to maintain the mix of our production. So you can see the damage that the grade did is reflected in the falling production profile in the second graph where production fell quarter two last year into quarter three quarter four and again into quarter one but again just the reduction in recovery that also reflects the falling grade because the tail grade that we deposit onto the tannies facility is pretty much the lowest we're going to get is about 0.2 grams a ton and so if the feed grade is lower that means that recovery tends to go down but having said that if we move on to the next page you can see in a bit more granularity the progression of grade in December and into the quarter and you can see the grade has recovered December 2025 it was 2.55 grams a ton increasing to 2.6 in January 2.7 in February and 3 in March currently it's running about 2.9 grams a ton which is actually pretty much what we expected it to be in the in the second quarter so as I've already outlined to you a blanket is now returned to the production level that we had anticipated so those we have already started with three remediation initiatives the first is that we have appointed them a contractor started work to accelerate access to higher grade areas they will continue to work for the remainder of the year and that gets us back into a position where we we should be ahead in terms of development which gives us much more operating flexibility and resilience in future so the contract has started the second thing that's happening is that we are implementing a revised shift system which will move the operations of mine from six days a week to seven days a week but new shift structure is primarily intended to reduce worker fatigue which we understood was a significant problem but it will also result in increased run of mine production on an annualised basis an extra 100,000 tonnes a year which in due course will flow through into increased ounces produced. In the short term the incremental production will be stockpiled but once we've at a reasonable stockpile, thereafter additional production will be processed. And also in June and July we expect to commission an additional ball mill, BM3, which will increase our overall milling capacity by about 200 tonnes a day. So those are the three initiatives that are taking place to increase and address the issues that we've faced at Blanket and as you can see, well as you can't see but you will see it in the second quarter, there has been a turnaround in the performance at Blanket 9 which is an area of considerable focus for us. So that's a few brief words on operations.

Can I ask Ross please to take us through the financial results? thank you mark and good afternoon everyone um as always delighted to talk you through the the results as mark has already uh discussed um there's really a concept of the higher gold price or setting um a lower production period you'll see um at the top top of the table that the outcome in terms of gold sold versus gold produced there is a a portion of the higher portion of ounces that cyclophane bullion on the hand which does affect that in terms of timing but largely that average gold price that you see on the table the $4,816 an ounce is really all set by those lower ounces in terms of gold produced and sold but pleasing for the period was the absolute cost so you'll see the online cost in terms of dollar quantum and all in sustaining dollars spent as a quantum of 23 or just under $24 million for online costs and $38 million for oil and sustaining costs. Those were largely on track with our budget and expenditures, up 3% online costs and 9% oil and sustaining costs. So we were pleased with the spend rates there, but our unit costs were negatively impacted by the lower denominator in terms of ounces. So overall activity was really good and we were pleased with the delivery by the teams, but obviously the ALS profile hit our unit costs. As we exited the quarter, our EBITDA was up 50% at just shy of $34 million. And with cash flow coming in really strongly off the capital expenditure, which is, again, in line, there are some timing differences in terms of capital expenditure profile, but we're really pleased with our free cash flow of $12 million, which is up some 153% on the comparative quarter. So a very pleasing result financially, albeit that answers are down. And overall, our earnings per share were 78% up on the comparative quarter. So if we do a little bit more of a dive into our profit and loss, and so if I could turn to the next slide, please, you'll see the outcome of our revenue and that higher gold price that we achieved resulting in revenue of $66 million for the period. Our royalties are obviously based on that top line, so they equally increased to $5.6 million for the period. Production costs were in line with the expectation and largely on track together with depreciation. So you see our gross profit is sitting at a shade over $32 million, which was a really pleasing result and almost 20% up. The key movements for the quarter are really driven around our financial instruments, and I'm going to do a little bit of a deep dive on the accounting treatments of that. So that net fair value gain on the financial instruments is represented in one line item, but there are a few different elements to that, which I'll discuss in due course. And further down on the chart, our net finance cost is up some 200%, But that is due to the convertible senior loan notes and the treatment of those financial instruments. But all other line items were largely in line, and we exited the period with the profit for the period of just shy of $19 million, which we're really pleased about. If we turn the slides, please, and we'll just talk a little bit more about the cash flows. Our net cash from operating activities were up some 41% for the period. We did deploy against capital expenditure as planned. There are some timing differences there, but there's nothing to report or there are outliers that need to be highlighted. And then there's the combination of the various investing and financing, which really was around our cap call options our convertible and really the deployment of our financing program so we had some maturity of our fixed term deposits which we deployed against our put option instruments and there were timing of various payments there and our the rating of the 150 million convertible and some of those funds were used to acquire a cap call option and you'll see the deployment of 14 million dollars going out of our cash flow further down you'll see the proceeds from the convertible notes coming in at 145 million and overall really at the bottom of the page we re-exited the period in a fantastic position of 161 million dollars worth of closing cash and cash equivalents which shows that the whole financing strategy is is really coming together and you'll see that if we turn to the next slide, which talks to our liquidity. So together with our cash on hand of $170 million and those drawn down bank facilities of $8.8 million, that gives us the $161 million that I've just discussed. But together with bullion on hand, which represents about 3,600 ounces and some gold sales receivables, really pulls together a very robust financial liquidity position in Treasury that enables us to move forward with our various capital allocation decisions, deployment of funds, and most exciting allure is obviously our continued development or moving forward with our development of the Bilbo's project. If we move to the next slide, without doing a deep dive into financial treatment of financial or instruments, this is the first period that we will have disclosed the treatment of the convertible notes and the various accounting that goes with it, and the fact that we don't do full set of financial statements that you would otherwise see, and that will come through in due course of the half year, we just thought it was important to articulate the various accounting around the convertible and also the cap call options then in terms of best illustrating that we raised 150 million dollars which you can see on the left hand side of the side which is the compound financial instrument of the senior loan notes under the accounting standards we have to split that into two elements there's the host debt and there's a derivative liability and those Those two are accounted for and treated separately. One is under an amortized cost accounting treatment, and the derivative liability, there's fair value through profit and loss, so it has slightly different accounting connotations. And then equally, the second answer, some of the deployment of that $150 million went towards a cap call option and that has a separate accounting treatment and also fair value through the profit and loss so there's two arms and elements in terms of the accounting and the valuation of that and you'll see below the chart in terms of the various line items that are represented in the primary statements that are attached to this quarterly announcement but you'll see that we hold a derivative asset, a non-current asset of $14 million. That asset really comprises both our cap call options and the treatment of that, but also our hedging programs. So it's a combination of a number of derivative financial instruments. And then our liabilities, there's obviously the host debt that sits there, but also there's a derivative financial statement liability, so the $97 million and the $38 million compose that $135 million compound financial instrument for the bond. And equally on the financial statements, in terms of our income statement, you'll see a net $4 million or $3.9 million, and that's a combination of a number of these fair value adjustments that go through in terms of both our put options, the movements and the financial abilities and the financial assets. So I know that's complicated and hopefully this gives a little bit more colour in terms of the accounting for it, the full financials and I guess a lot of the movement, the colour will come through at the heart here with the June results. So I might pull it there because it was a really good quarter financially, notwithstanding the lower answers, but we well placed in terms of our strategy, both with, I guess, internal cash generation and our overall funding position, which I'll talk to a bit more detail as we go through Bilbo's. With that, I'll hand it across and we'll talk through the Bilbo's project. So maybe Victor, if you can talk to Bilbo's.

Thank you, Ross. Can we move to the next slide? Okay. This particular slide and the next one really is information we have already published on the project. I won't go over it today because it's already been published and it's already in our previous presentations. What I will do is actually to give an update on where we are today. We appointed, as Mark has said already, we appointed DRA as our EPCM contractor for this particular project. At the moment, we have DRA and ourselves, we've frozen the project scope. which allows DRA to complete the detailed designs for the projects, commonly known as the front-end engineering designs. We expect to conclude these designs maybe by the end of the third quarter into the fourth quarter of this year, which will allow us to place orders for the long lead items towards the end of the year, really in the fourth quarter of this year. The construction for this project will take place over 2027 and 2028 and our expectation is that we should have the first going to towards the end of 2028. So basically that's where we are. We are busy with DRA, we are working with the various structures.

Okay, thank you. I think Craig has joined us. Craig, have you joined us? I hope so.

I actually have managed to join us on mobile.

Okay, good. If you could just take us through the – oh, no, hold on. Before we get on to Craig, I think, Ross, are you going to just say a few words about the funding strategy for Bilbo's?

Thanks, Mark. If we could turn to the next slide, it is really in wonder.

Yeah, next one. Slide.

Billy, next slide.

Thank you.

Thank you.

Thanks, Mark and Victor. Just to provide a quick update in terms of the funding strategy for Bilbo's, and as previously disclosed and discussed on previous calls, we have a four funding pillar strategy. The first two pillars have been completed, so we previously disclosed to you the hedging program that's in place, and also the $150 million convertible note raise. So those are all completed and funds are received in Treasury and ready for deployment. Importantly, Steps 3 and 4 are in progress and well on track. Step 3 is the interim funding facility, and that is where we're working with a consortium of Zimbabwe and South African banks to pull together a $150 million facility. We're working with our co-leader range at Stanbeck and CDZ in Zimbabwe, and the data room is fully functional. We're working through all the various due diligence, and we're expecting to have that facility in place by mid-2026, or July 2026 latest. And that facility is really going to be secured around the blanket mine cash flows. The wider project finance facility is also well in progress, and we're working with a number of financial institutions on that we do acknowledge that the timeline to reach financial closure is a little bit longer term so we expect that will to be completed over the next year or so but across those various work streams we've well progressed and we're quite excited in terms of status and positioning for our builders funding and if we turn to the next slide we'll see an update in terms of the construct that i've previously spoken to this is best read in terms of looking at the chart from right to left so you'll see in terms of the 590 million and the make up of that 590 million in terms of our capital costs and including working capital and capitalised interest coming up to that quantum of spend that we expect to be able the need to deploy for builders but then looking at the two columns on the left hand side at our $3,500 gold price per ounce and the compilation of how we expect to fill that funding requirement. We now have cash on hand, as I previously articulated, of $161 million. At the top end, we have our forecast net cash flow that will come out of our operations of $125 million. And between senior debt and other facilities in terms of what we're targeting, the gap is now $304 million. If we move that pricing deck closer to $5,000 per ounce, which is represented in the middle column, you'll see that that senior debt and other facility requirement basically halves and goes down to $154 million. So we're quite excited about where we sit in terms of our financing strategy, in terms of how that's all coming together, and actually we think that we're well placed in terms of our ability to start deploying funds and moving this all those project on time and to schedule. So that hopefully gives you a good overview in terms of where we sit with our funding position and I might turn it across to Craig Harvey now to talk about exploration.

Thanks, thanks, thanks Ross. I'll take you through our activities of what we've been doing at Blanket in the past couple of months. So this opening slide is from our RNS that we published on the 7th of April. So for those of you that haven't seen it, it basically represents from 34 levels down, a depth of approximately 250 meters below 34 level. So that kind of gives you an indication of the scale that we're looking at there. And this is only really in what we call the BQR and the blanket all bodies area. But some of the key takeaways, as I've said, is we are intersecting the continuation of the all bodies, about 250 meters below our workings currently and what those colored blocks represent if you can make it out it's the various different ore bodies it's quite difficult to read because they stack behind one behind one another but that is the limit of the inferred mineral resources as we currently have with which was dated 31 December so anybody looking at it can see at the bottom there we've got some nice warm colors which is greater than two three five grams per ton that is sitting below our inferred resource base that we have in the public domain at the moment so so encouraging takeaways we drilling and the all bodies continue at depth if we can move on to the next slide this thing gives a tabulation of some of those results that you have seen and one of the key takeaways there so you'll see that the top four there is annotated as blanket seven under the all and the all body name. It was June 2025 when we published our previous drilling update for Blanket. We indicated that we had intersected a new ore body. This ore body is now being turned Blanket 7 and as we draw more, define more, this area is going to grow. And the key takeaways there is, I mean, you know, blanket seven, we're looking at in the drill holes, 40 meters wide. You know, so I mean, any mining company that can find a 40 meter wide ore body running at between three and four grams per tonne is going to be extremely happy about it. Inside that 40 meters, we have the option of being selective in what we do so we can narrow it down and just by looking at the drilling assays we can mine those at anywhere between five and six meters wide at anywhere between kind of 12 to 50 grams per ton. Now it's not going to be all over but that's the kind of results that we actually get out of blanket so it's you know so it's very very key the building programs going along very well we drilled just over 10 300 meters between the june 2025 and the eight and april 7 press press releases that we've done and so clearly we have a need to update our mineral resource estimate so that will be done during 2026 and reported and declared before the end of 2026 but I think the the upshot is that at depth there's no change if anything that's getting slight slightly better I mean you know 40 meters wide 4 grams a ton I think it's happy days if you can move on to the next slide and we'll talk a little bit about METAPA, the surface exploration project that's located directly adjacent to Bulbos that we've just been speaking about. So I'm pleased to say that finally the labs in Zimbabwe have been very, very busy. So finally we have gotten all of our repeat assays back and all of the assets from the lab that we need. So we have now closed out our 2025 drilling program, exploration program. By doing that, we are targeting early Q3, 2026, a maiden mineral resource estimate from the Tarpon North Sulfide mineralization. That's going to represent the kind of $5 million of work that we've done during 2023 and 2024. That's what we've expended to date. Going forward into 2026, we will kind of be doing a rinse and repeat on the Natalka South. it's also got historic open pit oxides that have been mined and clearly below those pits is the sulfides we have done some reconnaissance drilling there so we will now formalize and we are busy drilling there at the moment to do very much what we've done at the top and north in addition there's the Mapuzzi oxides that we are still looking at and they're very in and they're very Interestingly, during 2025, some surface trenching to the east of Matapa South has exposed mineralized horizons in the trenches. So it's looking like we've got another near, well, at-surface oxide potential target if you want to have a look at. So I think Matapa, yes, business as usual, it's going on very well. we'll close out QT 2026 with a maiden mineral resource estimate. With that, I'll hand it back to Mark to take us further.

Thank you. Thank you, Craig. So just to finish off, I mean there's a lot of words on this slide, but basically we've got two immediate focuses. The first is to return blanket mine to good health based on what we've seen in April and May to date we appear to be making good progress on that but just building on what Craig has been telling us that we are convinced that blanket has a good long life ahead of it and so one of the things we're doing now is looking at ways to improve blankets resilience so that it can actually live that longer life and continue to generate cash for so blanket is a pressing and immediate focus and clearly the other one is to get Bilbo's into production as quickly as possible and for in this gold price environment for an asset of that quality every month lost is is money money not not made and so we are very very incentivized to get Bilbo's done as quickly as possible with a view to continuing work on the tarpa which will then underpin our long-term growth potential. So those are the three main issues, blanket, bilboes and the tarpa. So with that, a little bit longer than we expected, I'll open for questions. I would just apologise again for some of the connectivity issues that we've had on this call, I'm sorry about that. So open for questions.

Mark and team, thank you very much for the presentation today. I would just like to ask people to raise their hands if they would like to ask a question. The raise hand button that is in the bottom of your panel that's there. So we'll just wait a moment before we go to questions, just for people to have a time to raise their hands. So just give us one moment. Okay, so we've got our first question from Nick at Dinham. Nick, please unmute yourself and ask the team your question. You're unmuted. I can see you've unmuted yourself, so please go ahead and ask. I can't hear anything. Unfortunately, we're not hearing you at the moment. I'd just like to ask people, if you'd like to ask a question, please do raise your hand. Nick, we'll wait to see whether maybe it's your microphone settings, which is the bottom left-hand side of your speaker, of your screen. Unfortunately, we can't hear you at the moment, Nick.

If we get any other further questions from people, please do raise their hands.

Well, Mark, at the moment we don't have any further questions. Unfortunately, we're not able to hear Nick at the moment. Do you want to give a few more minutes or a few more seconds, shall we say, to see if anyone else has a question?

Normally people are pretty quick off out of the blocks if they've got a question.

I would agree. I'll let you hand back to you for closing remarks, Mark.

Yeah, okay. Okay, look, thank you all for your participation. As I say, the first quarter was a disappointment in terms of production the gold price saved us but as you've heard I'm personally very optimistic about the trajectory both for Blanket and for Bilbo so let's put the first quarter behind us and move on so thank you all for your attendance today thank you