| |
United Kingdom
|
| |
1000
|
| |
N/A
|
|
| |
(State or other jurisdiction of
incorporation or organization) |
| |
(Primary Standard Industrial
Classification Code Number) |
| |
(I.R.S. Employer
Identification Number) |
|
| | | | |
c/o Orana Corporate LLP
25 Eccleston Place London SW1W 9NF United Kingdom +(44) 20 7078 8496 |
| | | |
| |
(Address, Including Zip Code and Telephone Number, Including Area Code of Registrant’s Principal Executive Offices)
|
| ||||||
| |
Michael Kaplan
Connie Milonakis Davis Polk & Wardwell LLP 450 Lexington Avenue New York, NY 10017 United States of America +1 (212) 450-4000 |
| |
Ryan J. Dzierniejko
Skadden, Arps, Slate, Meagher & Flom LLP One Manhattan West New York, NY 10001 United States of America + 1 (212) 735-3000 |
|
| | | |
Page
|
| |||
| | | | | iii | | | |
| | | | | iii | | | |
| | | | | iii | | | |
| | | | | iii | | | |
| | | | | iv | | | |
| | | | | 1 | | | |
| | | | | 11 | | | |
| | | | | 13 | | | |
| | | | | 16 | | | |
| | | | | 53 | | | |
| | | | | 55 | | | |
| | | | | 56 | | | |
| | | | | 57 | | | |
| | | | | 59 | | | |
| | | | | 61 | | | |
| | | | | 71 | | | |
| | | | | 73 | | | |
| | | | | 82 | | | |
| | | | | 95 | | | |
| | | | | 108 | | | |
| | | | | 110 | | | |
| | | | | 111 | | | |
| | | | | 131 | | | |
| | | | | 149 | | | |
| | | | | 151 | | | |
| | | | | 159 | | | |
| | | | | 168 | | | |
| | | | | 169 | | | |
| | | | | 170 | | | |
| | | | | 171 | | | |
| | | | | 173 | | | |
| | | | | F-1 | | | |
| | | |
For the six months ended
December 31, |
| |
For the year ended
June 30, |
| ||||||||||||||||||
| | | |
2025
|
| |
2024
|
| |
2025
|
| |
2024
|
| ||||||||||||
| | | |
(Unaudited)
|
| |
(Audited)
|
| ||||||||||||||||||
| | | |
($ thousands)
|
| |||||||||||||||||||||
| Continuing operations | | | | | | | | | | | | | | | | ||||||||||
|
Revenue
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
|
Gross profit
|
| | | | — | | | | | | 2 | | | | |
|
—
|
| | | |
|
—
|
| |
|
Other income
|
| | | | — | | | | | | 2 | | | | | | 2 | | | | |
|
—
|
| |
|
Administrative expenses
|
| | | | (4,792) | | | | | | (988) | | | | | | (2,719) | | | | | | (1,376) | | |
|
Loss from operating activities
|
| | | | (4,792) | | | | | | (986) | | | | | | (2,717) | | | | | | (1,376) | | |
|
Finance income
|
| | | | 21 | | | | | | — | | | | | | 6 | | | | |
|
—
|
| |
|
Loss before taxation
|
| | | | (4,771) | | | | | | (986) | | | | | | (2,711) | | | | | | (1,376) | | |
|
Taxation
|
| | |
|
—
|
| | | |
|
—
|
| | | |
|
—
|
| | | |
|
—
|
| |
|
Loss for the year from continuing operations
|
| | | | (4,771) | | | | | | (986) | | | | | | (2,711) | | | | | | (1,376) | | |
| Other comprehensive (loss)/income | | | | | | | | | | | | | | | | ||||||||||
| Items that will or may be reclassified to profit or loss: | | | | | | | | | | | | | | | | ||||||||||
|
Exchange translation
|
| | | | (427) | | | | | | (101) | | | | | | 908 | | | | | | (13) | | |
|
Total other comprehensive (loss)/income
|
| | | | (427) | | | | | | (101) | | | | | | 908 | | | | | | (13) | | |
|
Total comprehensive (loss) for the year attributable to owners of the Company
|
| | | | (5,198) | | | | | | (1,087) | | | | | | (1,803) | | | | | | (1,389) | | |
|
Earnings per share from continuing operations attributable to the ordinary equity holder of the parent:
|
| | | | | | | | | | | | | | | ||||||||||
|
Basic and diluted loss per share ($)
|
| | | | (0.03) | | | | | | (0.01) | | | | | | (0.02) | | | | | | (0.02) | | |
| | | |
For the six months ended
December 31, |
| |
For the year ended
June 30, |
| ||||||||||||||||||
| | | |
2025
|
| |
2024
|
| |
2025
|
| |
2024
|
| ||||||||||||
| | | |
(Unaudited)
|
| |
(Audited)
|
| ||||||||||||||||||
| | | |
($ thousands)
|
| | | |||||||||||||||||||
| Cash flows used in operating activities | | | | | | | | | | | | | | | | ||||||||||
|
Loss for the year from continuing activities
|
| | | | (4,772) | | | | | | (986) | | | | | | (2,711) | | | | | | (1,376) | | |
| Adjustments for: | | | | | | | | | | | | | | | | ||||||||||
|
Share-based payment expense
|
| | | | 1,315 | | | | | | 6 | | | | | | 162 | | | | | | 111 | | |
|
Expenses settled in shares
|
| | | | — | | | | | | 26 | | | | | | 63 | | | | | | 142 | | |
|
Foreign exchange differences
|
| | | | (298) | | | | | | 1 | | | | | | 444 | | | | | | (3) | | |
| | | | | | (3,755) | | | | | | (953) | | | | | | (2,042) | | | | | | (1,126) | | |
| Changes in working capital: | | | | | | | | | | | | | | | | ||||||||||
|
Decrease in trade and other receivables
|
| | | | 31 | | | | | | 60 | | | | | | 40 | | | | | | 53 | | |
|
Increase in trade and other payables
|
| | | | 1,107 | | | | | | (467) | | | | | | 880 | | | | | | 415 | | |
|
Net cash outflows in operating activities
|
| | | | (2,617) | | | | | | (1,360) | | | | | | (1,122) | | | | | | (658) | | |
| Cash flows from investing activities | | | | | | | | | | | | | | | | ||||||||||
|
Purchase of intangibles
|
| | | | (9,082) | | | | | | (3,131) | | | | | | (8,038) | | | | | | (1,496) | | |
|
Investment in financial assets
|
| | | | (25) | | | | | | — | | | | | | — | | | | | | — | | |
|
Net cash outflows from investing activities
|
| | | | (9,107) | | | | | | (3,131) | | | | | | (8,038) | | | | | | (1,496) | | |
| Cash flows from financing activities | | | | | | | | | | | | | | | | ||||||||||
|
Proceeds from issue of share capital
|
| | | | 21,715 | | | | | | 3,979 | | | | | | 8,091 | | | | | | 3,876 | | |
|
Share issue costs
|
| | | | (1,267) | | | | | | — | | | | | | (123) | | | | | | (57) | | |
|
Net cash inflows from financing activities
|
| | | | 20,448 | | | | | | 3,979 | | | | | | 7,968 | | | | | | 3,819 | | |
|
(Decrease)/increase in cash and cash equivalents
|
| | | | 8,724 | | | | | | (512) | | | | | | (1,192) | | | | | | 1,665 | | |
|
Cash and cash equivalents at beginning of year
|
| | | | 1,873 | | | | | | 3,033 | | | | | | 3,033 | | | | | | 1,371 | | |
|
Effect of foreign currency exchange rates
|
| | | | (35) | | | | | | (32) | | | | | | 32 | | | | | | (3) | | |
|
Cash and cash equivalents at June 30
|
| | | | 10,562 | | | | | | 2,489 | | | | | | 1,873 | | | | | | 3,033 | | |
| | | |
As Adjusted
|
| |
Actual
|
| |||
| | | |
As of December 31, 2025
|
| ||||||
| | | |
(Unaudited)
|
| ||||||
| | | |
($ thousands)
|
| ||||||
| Assets | | | | | | | | | | |
| Non-current assets | | | | | | | | | | |
|
Intangible assets
|
| |
|
| | | | 26,807 | | |
|
Other non-current assets
|
| | | | | | | 25 | | |
|
Total non-current assets
|
| | | | | | | 26,832 | | |
| Current assets | | | | | | | | | | |
|
Trade and other receivables
|
| | | | | | | 245 | | |
|
Cash and cash equivalents
|
| | | | | | | 10,562 | | |
|
Total current assets
|
| | | | | | | 10,807 | | |
|
Total assets
|
| | | | | | | 37,639 | | |
| | | |
As Adjusted
|
| |
Actual
|
| ||||||
| | | |
As of December 31,
2025 |
| |||||||||
| | | |
(Unaudited)
|
| |||||||||
| | | |
($ thousands)
|
| |||||||||
| Liabilities | | | | | | | | | | | | | |
| Current liabilities | | | | | | | | | | | | | |
|
Trade and other payables
|
| | | | | | | | | 2,896 | | | |
|
Total current liabilities
|
| | | | | | | | | | 2,896 | | |
|
Total liabilities
|
| | | | | | | | | | 2,896 | | |
|
Net assets
|
| | | | | | | | | | 34,743 | | |
| Equity | | | | | | | | | | | | | |
|
Share capital
|
| | | | | | | | | | 2,131 | | |
|
Share premium
|
| | | | | | | | | | 37,613 | | |
|
Shares to be issued
|
| | | | | | | | | | — | | |
|
Capital contribution reserve
|
| | | | | | | | | | 5,897 | | |
|
Share-based payment reserve
|
| | | | | | | | | | 1,639 | | |
|
Exchange reserve
|
| | | | | | | | | | 675 | | |
|
Accumulated losses
|
| | | | | | | | | | (13,212) | | |
|
Total equity
|
| | | | | | | | | | 34,743 | | |
| | |||||||||||||
| | | |
As of December 31, 2025
|
| |||||||||
| | | |
Actual
|
| |
As Adjusted(4)
|
| ||||||
| | | |
($ thousands; unaudited)
|
| |||||||||
|
Cash and cash equivalents(1)
|
| | |
|
10,562
|
| | | | | | | |
| Liabilities | | | | | | | | | | | | | |
| Current liabilities | | | | | | | | | | | | | |
|
Trade and other payables(2)
|
| | | | 2,896 | | | | | | | | |
|
Total current liabilities
|
| | | | 2,896 | | | | | | | | |
|
Total liabilities
|
| | | | 2,896 | | | | | | | | |
| Equity | | | | | | | | | | | | | |
|
Share capital
|
| | | | 2,131 | | | | | | | | |
|
Share premium
|
| | | | 37,613 | | | | | | | | |
|
Shares to be issued
|
| | |
|
—
|
| | | | | | | |
|
Capital contribution reserve
|
| | | | 5,897 | | | | | | | | |
|
Share based payment reserve
|
| | | | 1,639 | | | | | | | | |
|
Exchange reserve
|
| | | | 675 | | | | | | | | |
|
Accumulated losses
|
| | | | (13,212) | | | | | | | | |
|
Total equity
|
| | | | 34,743 | | | | | | | | |
|
Total capitalization(3)
|
| | |
|
37,639
|
| | | | | | | |
| |
Assumed initial public offering price
|
| | | | | | | | | $ | | | |
| |
Historical net tangible book value per ADS as of December 31, 2025
|
| | | $ | | | |
|
| ||||
| |
Increase in net tangible book value per ADS attributable to this offering
|
| | | | | | | | | $ | | | |
| |
As adjusted net tangible book value per ADS after this offering
|
| | | | | | | | | $ | | | |
| |
Dilution per ADS to new investors in this offering
|
| | | | | | | | | $ | | | |
| | | |
Ordinary Shares Purchased
(including those represented by ADSs) |
| |
Total Consideration
|
| |
Average Price
Per Share (including those represented by ADS) |
| ||||||||||||||||||
| | | |
Numbers
|
| |
Percent
|
| |
Amount
|
| |
Percent
|
| |||||||||||||||
| | | |
(millions)
|
| ||||||||||||||||||||||||
|
Existing shareholders
|
| |
|
| | | | % | | | | | $ | | | | | | % | | | | | $ | | | ||
|
New investors
|
| | | | | | | % | | | | | $ | | | | | | % | | | | | $ | | | | |
|
Total
|
| | | | | | | % | | | | | $ | | | | | | % | | | | | $ | | | | |
| | | |
Six months ended December 31,
|
| |||||||||
| | | |
2025
|
| |
2024
|
| ||||||
| | | |
($ thousands; unaudited)
|
| |||||||||
| Continuing operations | | | | | | | | | | | | | |
|
Revenue
|
| | | | — | | | | | | — | | |
|
Gross profit
|
| | | | — | | | | | | 2 | | |
|
Other income
|
| | | | — | | | | | | 2 | | |
|
Administrative expenses
|
| | | | (4,792) | | | | | | (988) | | |
|
Loss from operating activities
|
| | | | (4,792) | | | | | | (986) | | |
|
Finance income
|
| | | | 21 | | | | | | — | | |
|
Loss before taxation
|
| | | | (4,771) | | | | | | (986) | | |
|
Taxation
|
| | | | — | | | | | | — | | |
|
Loss for the year from continuing operations
|
| | | | (4,771) | | | | | | (986) | | |
| Other comprehensive (loss)/income | | | | | | | | | | | | | |
| Items that will or may be reclassified to profit or loss: | | | | | | | | | | | | | |
|
Exchange translation
|
| | | | (427) | | | | | | (101) | | |
|
Total other comprehensive (loss)/income
|
| | | | (427) | | | | | | (101) | | |
|
Total comprehensive (loss) for the year attributable to owners of the Company
|
| | | | (5,198) | | | | | | (1,087) | | |
| | | |
Fiscal year ended June 30,
|
| |||||||||
| | | |
2025
|
| |
2024
|
| ||||||
| | | |
($ thousands; audited)
|
| |||||||||
| Continuing operations | | | | | | | | | | | | | |
|
Revenue
|
| | | | — | | | | | | — | | |
|
Gross profit
|
| | | | — | | | | | | — | | |
|
Other income
|
| | | | 2 | | | | |
|
—
|
| |
|
Administrative expenses
|
| | | | (2,719) | | | | | | (1,376) | | |
|
Loss from operating activities
|
| | | | (2,717) | | | | | | (1,376) | | |
|
Finance income
|
| | | | 6 | | | | |
|
—
|
| |
|
Loss before taxation
|
| | | | (2,711) | | | | | | (1,376) | | |
|
Taxation
|
| | |
|
—
|
| | | |
|
—
|
| |
|
Loss for the year from continuing operations
|
| | | | (2,711) | | | | | | (1,376) | | |
| Other comprehensive (loss)/income | | | | | | | | | | | | | |
| Items that will or may be reclassified to profit or loss: | | | | | | | | | | | | | |
|
Exchange translation
|
| | | | 908 | | | | | | (13) | | |
| | | |
Fiscal year ended June 30,
|
| |||||||||
| | | |
2025
|
| |
2024
|
| ||||||
| | | |
($ thousands; audited)
|
| |||||||||
|
Total other comprehensive (loss)/income
|
| | | | 908 | | | | | | (13) | | |
|
Total comprehensive (loss) for the year attributable to owners of the Company
|
| | | | (1,803) | | | | | | (1,389) | | |
| | |||||||||||||
| | | |
For the six months ended
December 31, |
| |
For the year ended
June 30, |
| ||||||||||||||||||
| | | |
2025
|
| |
2024
|
| |
2025
|
| |
2024
|
| ||||||||||||
| | | |
Unaudited
|
| |
Audited
|
| ||||||||||||||||||
| | | |
($ thousands)
|
| |||||||||||||||||||||
| Cash flows used in operating activities | | | | | | | | | | | | | | | | ||||||||||
|
Loss for the year from continuing activities
|
| | | | (4,772) | | | | | | (986) | | | | | | (2,711) | | | | | | (1,376) | | |
| Adjustments for: | | | | | | | | | | | | | | | | ||||||||||
|
Share-based payment expense
|
| | | | 1,315 | | | | | | 6 | | | | | | 162 | | | | | | 111 | | |
|
Expenses settled in shares
|
| | | | — | | | | | | 26 | | | | | | 63 | | | | | | 142 | | |
|
Foreign exchange differences
|
| | | | (298) | | | | | | 1 | | | | | | 444 | | | | | | (3) | | |
| | | | | | (3,755) | | | | | | (953) | | | | | | (2,042) | | | | | | (1,126) | | |
| Changes in working capital: | | | | | | | | | | | | | | | | ||||||||||
|
Decrease in trade and other receivables
|
| | | | 31 | | | | | | 60 | | | | | | 40 | | | | | | 53 | | |
|
Increase in trade and other payables
|
| | | | 1,107 | | | | | | (467) | | | | | | 880 | | | | | | 415 | | |
|
Net cash outflows in operating activities
|
| | | | (2,617) | | | | | | (1,360) | | | | | | (1,122) | | | | | | (658) | | |
| Cash flows from investing activities | | | | | | | | | | | | | | | | ||||||||||
|
Purchase of intangibles
|
| | | | (9,082) | | | | | | (3,131) | | | | | | (8,038) | | | | | | (1,496) | | |
|
Investment in financial assets
|
| | | | (25) | | | | | | — | | | | | | — | | | | | | — | | |
|
Net cash outflows from investing activities
|
| | | | (9,107) | | | | | | (3,131) | | | | | | (8,038) | | | | | | (1,496) | | |
| Cash flows from financing activities | | | | | | | | | | | | | | | | ||||||||||
|
Proceeds from issue of share capital
|
| | | | 21,715 | | | | | | 3,979 | | | | | | 8,091 | | | | | | 3,876 | | |
|
Share issue costs
|
| | | | (1,267) | | | | | | — | | | | | | (123) | | | | | | (57) | | |
|
Net cash inflows from financing activities
|
| | | | 20,448 | | | | | | 3,979 | | | | | | 7,968 | | | | | | 3,819 | | |
|
(Decrease)/increase in cash and cash equivalents
|
| | | | 8,724 | | | | | | (512) | | | | | | (1,192) | | | | | | 1,665 | | |
|
Cash and cash equivalents at beginning of year
|
| | | | 1,873 | | | | | | 3,033 | | | | | | 3,033 | | | | | | 1,371 | | |
| | | |
For the six months ended
December 31, |
| |
For the year ended
June 30, |
| ||||||||||||||||||
| | | |
2025
|
| |
2024
|
| |
2025
|
| |
2024
|
| ||||||||||||
| | | |
Unaudited
|
| |
Audited
|
| ||||||||||||||||||
| | | |
($ thousands)
|
| |||||||||||||||||||||
|
Effect of foreign currency exchange rates
|
| | | | (35) | | | | | | (32) | | | | | | 32 | | | | | | (3) | | |
|
Cash and cash equivalents at June 30
|
| | | | 10,562 | | | | | | 2,489 | | | | | | 1,873 | | | | | | 3,033 | | |
| | |||||||||||||||||||||||||
| | | |
Country
|
| |
Ownership
Interest |
| |||
| Entity Name | | | | | | | | | | |
|
BFM Resources Inc.
|
| |
United States
|
| | | | 100% | | |
|
GMET Tungsten Holding Co.
|
| |
United States
|
| | | | 100% | | |
|
Golden Metal Resources LLC
|
| |
United States
|
| | | | 100% | | |
|
Guardian Gold Ltd.
|
| |
England and Wales
|
| | | | 100% | | |
|
Pilot Metals Inc.
|
| |
United States
|
| | | | 100% | | |
|
Desert Scheelite Mineral Resources
|
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | | |
Cut-off
|
| |
Average Grade
|
| |
Contained Metal
|
| |||||||||||||||||||||||||||||||||||||||||||||||||||
|
Classification
|
| |
% WO3
|
| |
Tonnes
|
| |
% WO3
|
| |
g Ag/t
|
| |
% Cu
|
| |
% Zn
|
| |
t WO3
|
| |
oz Ag
|
| |
t Cu
|
| |
t Zn
|
| ||||||||||||||||||||||||||||||
|
Indicated
|
| | | | 0.06 | | | | | | 8,694,000 | | | | | | 0.206 | | | | | | 12.43 | | | | | | 0.085 | | | | | | 0.315 | | | | | | 17,900 | | | | | | 3,475,000 | | | | | | 7,400 | | | | | | 27,400 | | |
|
Inferred
|
| | | | 0.06 | | | | | | 1,784,000 | | | | | | 0.169 | | | | | | 12.00 | | | | | | 0.063 | | | | | | 0.225 | | | | | | 3,000 | | | | | | 689,000 | | | | | | 1,100 | | | | | | 4,000 | | |
|
Target
|
| |
Type of Drilling
|
| |
Total Holes
|
| |
Total (m)
|
| |||||||||
|
Desert Scheelite
|
| | | | Core | | | | | | 68 | | | | | | 8,471 | | |
|
Garnet
|
| | | | Core | | | | | | 20 | | | | | | 1,466 | | |
|
Porphyry South
|
| | | | Core | | | | | | 1 | | | | | | 407 | | |
| Total | | | | | | | | | | | 89 | | | | | | 10,344 | | |
| | | |
Cut-off
|
| |
Average Grade
|
| |
Contained Metal
|
| |||||||||||||||||||||||||||||||||||||||||||||||||||
|
Classification
|
| |
% WO3
|
| |
Tonnes
|
| |
% WO3
|
| |
g Ag/t
|
| |
% Cu
|
| |
% Zn
|
| |
t WO3
|
| |
oz Ag
|
| |
t Cu
|
| |
t Zn
|
| ||||||||||||||||||||||||||||||
|
Indicated
|
| | | | 0.06 | | | | | | 8,694,000 | | | | | | 0.206 | | | | | | 12.43 | | | | | | 0.085 | | | | | | 0.315 | | | | | | 17,900 | | | | | | 3,475,000 | | | | | | 7,400 | | | | | | 27,400 | | |
|
Inferred
|
| | | | 0.06 | | | | | | 1,784,000 | | | | | | 0.169 | | | | | | 12.00 | | | | | | 0.063 | | | | | | 0.225 | | | | | | 3,000 | | | | | | 689,000 | | | | | | 1,100 | | | | | | 4,000 | | |
|
Name
|
| |
Age
|
| |
Position
|
|
| Executive Officers | | | | | | | |
|
Oliver Friesen
|
| |
35
|
| | Chief Executive Officer and Director | |
|
Benjamin James Hodges(1)
|
| |
51
|
| | Finance Director | |
|
Jason Thomas Starzecki
|
| |
51
|
| | Executive Chairman and Director | |
| Non-Executive Board Members | | | | | | | |
|
Mark Burnett(2)(3)
|
| |
38
|
| | Non-Executive Director | |
|
Michael X. Schlumpberger(2)(3)
|
| |
62
|
| | Non-Executive Director | |
| | | |
Salary
|
| |
Bonus(1)
|
| |
Total
|
| |||||||||
| | | |
(in $)
|
| |||||||||||||||
| Executive officers | | | | | | | | | | | | | | | | | | | |
|
Oliver Friesen
|
| | | | 238,000 | | | | | | 11,000 | | | | | | 249,000 | | |
|
Benjamin James Hodges
|
| | | | 22,000 | | | | | | — | | | | | | 22,000 | | |
|
Jason Thomas Starzecki
|
| | | | 51,000 | | | | | | — | | | | | | 51,000 | | |
|
Name
|
| |
Fees
Delivered in Cash |
| |
Fees
Delivered in Shares |
| |
Total Fees
|
| |||||||||
| | | | | | | | | |
(in $)
|
| | | | | | | |||
| Non-executive board members | | | | | | | | | | | | | | | | | | | |
|
Mark Burnett
|
| | | | 31,000 | | | | | | — | | | | | | 31,000 | | |
|
Michael X. Schlumpberger(1)
|
| | | | — | | | | | | — | | | | | | — | | |
| | | |
Number of
ordinary shares beneficially owned before the offering |
| |
Percentage of ordinary shares
beneficially owned (%) |
| |||||||||
|
Name of Beneficial Owner
|
| |
Before
offering |
| |
After
offering |
| |||||||||
| 3% or greater shareholders | | | | | | | | | | | | | | | | |
|
UCAM Limited(1)
|
| | | | 47,411,352 | | | | | | 28.10 | | | | | |
|
Juggernaut Fund, L.P.(2)
|
| | | | 24,699,825 | | | | | | 14.64 | | | | | |
|
Purebond Ltd(3)
|
| | | | 9,750,000 | | | | | | 5.78 | | | | | |
|
Lars Ernest Bader
|
| | | | 6,751,823 | | | | | | 4.00 | | | | | |
|
Chang Turkmani
|
| | | | 6,688,234 | | | | | | 3.96 | | | | | |
| Executive officers and board members | | | | | | | | | | | | | | | | |
|
Oliver Friesen(4)
|
| | | | 4,310,516 | | | | | | 2.55 | | | | | |
|
Benjamin James Hodges(5)
|
| | | | 555,158 | | | | | | * | | | | | |
|
Jason Thomas Starzecki(6)
|
| | | | 1,145,156 | | | | | | * | | | | | |
|
Mark Burnett(7)
|
| | | | 1,298,892 | | | | | | * | | | | | |
|
Michael X. Schlumpberger(8)
|
| | | | 300,000 | | | | | | * | | | | | |
|
All executive officers and board members as a group (five persons)
|
| | | | 7,609,722 | | | | | | 4.51 | | | | | |
| | | |
England & Wales
|
| |
Delaware
|
|
|
Number of Directors
|
| | Under the Companies Act 2006, a public limited company must have at least two directors and the number of directors may be fixed by or in the manner provided in a company’s articles of association, provided that such number does not fall below two directors. | | | Under Delaware law, a corporation must have at least one director and the number of directors shall be fixed by or in the manner provided in the bylaws. | |
|
Removal of Directors
|
| | Under the Companies Act 2006, shareholders may remove a director without cause by an ordinary resolution (which is passed by a simple majority of those voting in person or by proxy at a general meeting) notwithstanding any provisions of any service contract the director has with the company, provided 28 clear days’ notice of the resolution has been given to the company, and the company must, where practicable, give its shareholders the same time frame. If providing 28 clear days’ notice to shareholders is not practicable, the company must give its shareholders at least 14 clear days’ notice. On receipt of notice of an intended resolution to remove a director, the company must forthwith send a copy of the notice to the director concerned. Certain other procedural requirements under the | | | Under Delaware law, any director or the entire board of directors may be removed, with or without cause, by the holders of a majority of the shares then entitled to vote at an election of directors, except (i) unless the certificate of incorporation provides otherwise, in the case of a corporation whose board of directors is classified, shareholders may effect such removal only for cause, or (ii) in the case of a corporation having cumulative voting, if less than the entire board of directors is to be removed, no director may be removed without cause if the votes cast against his removal would be sufficient to elect him if then cumulatively voted at an election of the entire board of directors, or, if there are classes of directors, at an election of the class of directors of which he is a part. | |
| | | |
England & Wales
|
| |
Delaware
|
|
| | | | Companies Act 2006 must also be followed, such as allowing the director to make representations against his or her removal either at the meeting or in writing. | | | | |
|
Vacancies on the Board of Directors
|
| | Under English law, the procedure by which directors, other than a company’s initial directors, are appointed is generally set out in a company’s articles of association, provided that where two or more persons are appointed as directors of a public limited company by resolution of the shareholders, resolutions appointing each director must be voted on individually unless a resolution that a single resolution for the appointment of two or more persons as directors has first been agreed to by the meeting without any vote being given against it. | | | Under Delaware law, vacancies and newly created directorships may be filled by a majority of the directors then in office (even though less than a quorum) or by a sole remaining director unless (i) otherwise provided in the certificate of incorporation or bylaws of the corporation or (ii) the certificate of incorporation directs that a particular class of stock is to elect such director, in which case a majority of the other directors elected by such class, or a sole remaining director elected by such class, will fill such vacancy. | |
|
Annual General Meeting
|
| | Under the Companies Act 2006, a public limited company must hold an annual general meeting in each six-month period following the company’s annual accounting reference date. | | | Under Delaware law, the annual meeting of stockholders shall be held at such place, on such date and at such time as may be designated from time to time by the board of directors or as provided in the certificate of incorporation or by the bylaws. | |
|
General Meeting
|
| |
Under the Companies Act 2006, a general meeting of the shareholders of a public limited company may be called by the directors.
Shareholders holding at least 5% of the paid-up capital of the company carrying voting rights at general meetings (excluding any paid up capital held as treasury shares) can require the directors to call a general meeting, and, if the directors fail to do so within a certain period, may themselves convene a general meeting.
|
| | Under Delaware law, special meetings of the stockholders may be called by the board of directors or by such person or persons as may be authorized by the certificate of incorporation or by the bylaws. | |
|
Notice of General Meetings
|
| | Under the Companies Act 2006, subject to a company’s articles of association providing for a longer period, 21 clear days’ notice must be given for an annual general meeting and any resolutions to be | | | Under Delaware law, unless otherwise provided in the certificate of incorporation or bylaws, written notice of any meeting of the stockholders must be given to each stockholder | |
| | | |
England & Wales
|
| |
Delaware
|
|
| | | | proposed at the meeting. Subject to a company’s articles of association providing for a longer period, at least 14 clear days’ notice is required for any other general meeting. In addition, certain matters, such as the removal of directors or auditors, require special notice, which is 28 clear days’ notice. The shareholders of a company may in all cases consent to a shorter notice period, the proportion of shareholders’ consent required being 100% of those entitled to attend and vote in the case of an annual general meeting and, in the case of any other general meeting, a majority in number of the members having a right to attend and vote at the meeting, being a majority who together hold not less than 95% in nominal value of the shares giving a right to attend and vote at the meeting. | | | entitled to vote at the meeting not less than 10 nor more than 60 days before the date of the meeting and shall specify the place, date, hour and purpose or purposes of the meeting. | |
|
Proxy
|
| | Under the Companies Act 2006, at any meeting of shareholders, a shareholder may designate another person to attend, speak and vote at the meeting on their behalf by proxy. | | | Under Delaware law, at any meeting of stockholders, a stockholder may designate another person to act for such stockholder by proxy, but no such proxy shall be voted or acted upon after three years from its date, unless the proxy provides for a longer period. A director of a Delaware corporation may not issue a proxy representing the director’s voting rights as a director. | |
|
Preemptive Rights
|
| | Under the Companies Act 2006, “equity securities,” being (i) shares in the company other than shares that, with respect to dividends and capital, carry a right to participate only up to a specified amount in a distribution (“ordinary shares”) or (ii) rights to subscribe for, or to convert securities into, ordinary shares, proposed to be allotted for cash must be offered first to the existing equity shareholders in the company in proportion to the | | | Under Delaware law, shareholders have no preemptive rights to subscribe to additional issues of stock or to any security convertible into such stock unless and except to the extent that, such rights are expressly provided for in the certificate of incorporation. | |
| | | |
England & Wales
|
| |
Delaware
|
|
| | | | respective nominal value of their holdings, unless an exception applies or a special resolution to the contrary has been passed by shareholders in a general meeting or the articles of association provide otherwise, in each case in accordance with the provisions of the Companies Act 2006. | | | | |
|
Authority to Allot
|
| | Under the Companies Act 2006, the directors of a company must not allot shares or grant of rights to subscribe for or to convert any security into shares unless an ordinary resolution to the contrary has been passed by shareholders in a general meeting or the articles of association provide otherwise, in each case in accordance with the provisions of the Companies Act 2006. | | | Under Delaware law, if the corporation’s charter or certificate of incorporation so provides, the board of directors has the power to authorize the issuance of stock. It may authorize capital stock to be issued for consideration consisting of cash, any tangible or intangible property or any benefit to the corporation or any combination thereof. It may determine the amount of such consideration by approving a formula. In the absence of actual fraud in the transaction, the judgment of the directors as to the value of such consideration is conclusive. | |
|
Liability of Directors and Officers
|
| |
Under the Companies Act 2006, any provision, whether contained in a company’s articles of association or any contract or otherwise, that purports to exempt a director of a company, to any extent, from any liability that would otherwise attach to him in connection with any negligence, default, breach of duty or breach of trust in relation to the company is void.
Any provision by which a company directly or indirectly provides an indemnity, to any extent, for a director of the company or of an associated company against any liability attaching to him in connection with any negligence, default, breach of duty or breach of trust in relation to the company of which he is a director is also void except as permitted by the
|
| |
Under Delaware law, a corporation’s certificate of incorporation may include a provision eliminating or limiting the personal liability of a director to the corporation and its stockholders for damages arising from a breach of fiduciary duty as a director. However, no provision can limit the liability of a director for:
•
any breach of the director’s duty of loyalty to the corporation or its stockholders;
•
acts or omissions not in good faith or that involve intentional misconduct or a knowing violation of law;
•
intentional or negligent payment of unlawful dividends or stock purchases or redemptions; or
|
|
| | | |
England & Wales
|
| |
Delaware
|
|
| | | | Companies Act 2006, which provides exceptions for the company to (i) purchase and maintain insurance against such liability; (ii) provide a “qualifying third-party indemnity” (being an indemnity against liability incurred by the director to a person other than the company or an associated company and must not provide any indemnity against, amongst others, any liability in defending criminal proceedings in which he is convicted); and (iii) provide a “qualifying pension scheme indemnity” (being an indemnity against liability incurred in connection with the company’s activities as trustee of an occupational pension plan). | | |
•
any transaction from which the director derives an improper personal benefit.
|
|
|
Voting Rights
|
| | Under English law, unless a poll is demanded by the shareholders of a company or is required by the chairman of the meeting or the company’s articles of association, shareholders shall vote on all resolutions on a show of hands. Under the Companies Act 2006, a poll may be demanded by (i) not fewer than five shareholders having the right to vote on the resolution; (ii) any shareholder(s) representing not less than 10% of the total voting rights of all the shareholders having the right to vote on the resolution (excluding any voting rights attaching to treasury shares); or (iii) any shareholder(s) holding shares in the company conferring a right to vote on the resolution (excluding any voting rights attaching to treasury shares) being shares on which an aggregate sum has been paid up equal to not less than 10% of the total sum paid up on all the shares conferring that right. A company’s articles of association may provide more extensive rights for shareholders to call a poll. | | | Delaware law provides that, unless otherwise provided in the certificate of incorporation, each stockholder is entitled to one vote for each share of capital stock held by such stockholder. | |
| | | |
England & Wales
|
| |
Delaware
|
|
| | | |
Under English law, an ordinary resolution is passed on a show of hands if it is approved by a simple majority (more than 50%) of the votes cast by shareholders present (in person or by proxy) and entitled to vote. If a poll is demanded, an ordinary resolution is passed if it is approved by holders representing a simple majority of the total voting rights of shareholders present, in person or by proxy or in advance, who, being entitled to vote, vote on the resolution.
Special resolutions require the affirmative vote of not less than 75% of the votes cast on a show of hands by shareholders present, in person or by proxy, at the meeting and entitled to vote. If a poll is demanded, a special resolution is passed if it is approved by shareholders representing not less than 75% of the total voting rights of shareholders who, being entitled to vote, vote in person, by proxy or in advance.
|
| | | |
|
Shareholder Vote on Certain Transactions
|
| |
The Companies Act 2006 provides for schemes of arrangement, which are arrangements or compromises between a company and any class of shareholders or creditors and used in certain types of reconstructions, amalgamations, capital reorganizations or takeovers. These arrangements require:
•
the approval at a shareholders’ or creditors’ meeting convened by order of the court, of a majority in number of shareholders or creditors representing 75% in value of the capital held by, or debt owed to, the class of shareholders or creditors, or class thereof present and voting, either in person or by proxy; and
•
the approval of the court.
|
| |
Generally, under Delaware law, unless the certificate of incorporation provides for the vote of a larger portion of the stock, completion of a merger, consolidation, sale, lease or exchange of all or substantially all of a corporation’s assets or dissolution requires:
•
the approval of the board of directors; and
•
approval by the vote of the holders of a majority of the outstanding stock or, if the certificate of incorporation provides for more or less than one vote per share, a majority of the votes of the outstanding stock of a corporation entitled to vote on the matter.
|
|
| | | |
England & Wales
|
| |
Delaware
|
|
|
Standard of Conduct for Directors
|
| |
Under English law, a director owes various statutory and fiduciary duties to the company, including:
•
to act in the way he considers, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole;
•
to avoid a situation in which he has, or can have, a direct or indirect interest that conflicts, or possibly conflicts, with the interests of the company;
•
to act in accordance with the company’s constitution and only exercise his powers for the purposes for which they are conferred;
•
to exercise independent judgment;
•
to exercise reasonable care, skill and diligence;
•
not to accept benefits from a third party conferred by reason of his being a director or doing, or not doing, anything as a director; and
•
a duty to declare any interest that he has, whether directly or indirectly, in a proposed or existing transaction or arrangement with the company.
|
| |
Delaware law does not contain specific provisions setting forth the standard of conduct of a director. The scope of the fiduciary duties of directors is generally determined by the courts of the State of Delaware. In general, directors have a duty to act without self-interest, on a well-informed basis and in a manner they reasonably believe to be in the best interest of the stockholders.
Directors of a Delaware corporation owe fiduciary duties of care and loyalty to the corporation and to its stockholders. The duty of care generally requires that a director act in good faith, with the care that an ordinarily prudent person would exercise under similar circumstances. Under this duty, a director must inform himself of all material information reasonably available regarding a significant transaction. The duty of loyalty requires that a director act in a manner he reasonably believes to be in the best interests of the corporation. He must not use his corporate position for personal gain or advantage. In general, but subject to certain exceptions, actions of a director are presumed to have been made on an informed basis, in good faith and in the honest belief that the action taken was in the best interests of the corporation. However, this presumption may be rebutted by evidence of a breach of one of the fiduciary duties. Delaware courts have also imposed a heightened standard of conduct upon directors of a Delaware corporation who take any action designed to defeat a threatened change in control of the corporation.
|
|
| | | |
England & Wales
|
| |
Delaware
|
|
| | | | | | | In addition, under Delaware law, when the board of directors of a Delaware corporation approves the sale or break-up of a corporation, the board of directors may, in certain circumstances, have a duty to obtain the highest value reasonably available to the stockholders. | |
|
Stockholder Suits
|
| | Under English law, generally, the company, rather than its shareholders, is the proper claimant in an action in respect of a wrong done to the company or where there is an irregularity in the company’s internal management. Notwithstanding this general position, the Companies Act 2006 provides that (i) a court may allow a shareholder to bring a derivative claim (that is, an action in respect of and on behalf of the company) in respect of a cause of action arising from a director’s negligence, default, breach of duty or breach of trust and (ii) a shareholder may bring a claim for a court order where the company’s affairs have been or are being conducted in a manner that is unfairly prejudicial to its shareholders generally or of some of its shareholders, or that an actual or proposed act or omission of the company is or would be so prejudicial. | | |
Under Delaware law, a stockholder may initiate a derivative action to enforce a right of a corporation if the corporation fails to enforce the right itself. The complaint must:
•
state that the plaintiff was a stockholder at the time of the transaction of which the plaintiff complains or that the plaintiff’s shares thereafter devolved on the plaintiff by operation of law; and
•
allege with particularity the efforts made by the plaintiff to obtain the action the plaintiff desires from the directors and the reasons for the plaintiff’s failure to obtain the action; or
•
state the reasons for not making the effort.
Additionally, the plaintiff must remain a stockholder through the duration of the derivative suit. The action will not be dismissed or compromised without the approval of the Delaware Court of Chancery.
|
|
|
Underwriters
|
| |
Number of ADSs
|
| |||
|
BMO Capital Markets Corp.
|
| | | | | | |
|
Total
|
| | | | | | |
| | | |
No Exercise
|
| |
Full Exercise
|
| ||||||
|
Per ADS
|
| | | $ | | | | | $ | | | ||
|
Total
|
| | | $ | | | | | $ | | | | |
| | | |
Amount
|
| |||
|
SEC registration fee
|
| | | $ | 6,905.00 | | |
|
FINRA filing fee
|
| | | | 7,350.00 | | |
|
Stock Exchange listing fee
|
| | | | * | | |
|
NYSE American listing fee
|
| | | | * | | |
|
Printing and engraving expenses
|
| | | | * | | |
|
Legal fees and expenses
|
| | | | * | | |
|
Accounting fees and expenses
|
| | | | * | | |
|
Miscellaneous costs
|
| | | | * | | |
|
Total
|
| | | | * | | |
| | | |
Page
|
| |||
|
Unaudited Consolidated Interim Financial Statements as of and for the Six Months Ended December 31, 2025 and December 31, 2024
|
| | | | | | |
| | | | | F-2 | | | |
| | | | | F-3 | | | |
| | | | | F-4 | | | |
| | | | | F-5 | | | |
| | | | | F-6 | | | |
|
Audited Consolidated Financial Statements as of and for the Years Ended June 30, 2025 and June 30, 2024
|
| | | | | | |
| | | | | F-12 | | | |
| | | | | F-13 | | | |
| | | | | F-14 | | | |
| | | | | F-15 | | | |
| | | | | F-16 | | | |
| | | | | F-17 | | | |
| | | |
Note
|
| |
6 months
ended 31-Dec-25 (unaudited) |
| |
6 months
ended 31-Dec-24 (unaudited) |
| |
Year
ended 30-Jun-25 (audited) |
| ||||||||||||
| | | | | | | | | |
US$’000
|
| |
US$’000
|
| |
US$’000
|
| |||||||||
| Continuing operations | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Other income
|
| | | | | | | | | | — | | | | | | 2 | | | | | | 2 | | |
|
Gross profit
|
| | | | | | | | | | — | | | | | | 2 | | | | | | 2 | | |
|
Administrative expenses
|
| | |
|
6
|
| | | | | (4,792) | | | | | | (988) | | | | | | (2,719) | | |
|
Loss from operating activities
|
| | | | | | | | | | (4,792) | | | | | | (986) | | | | | | (2,717) | | |
|
Finance income
|
| | | | | | | | | | 21 | | | | | | — | | | | | | 6 | | |
|
Loss before taxation
|
| | | | | | | | | | (4,771) | | | | | | (986) | | | | | | (2,711) | | |
|
Taxation
|
| | | | | | | | | | — | | | | | | — | | | | | | — | | |
|
Loss for the period from continuing operations
|
| | | | | | | | | | (4,771) | | | | | | (986) | | | | | | (2,711) | | |
| Items that will or may be reclassified to profit or loss | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Exchange translation
|
| | | | | | | | | | (427) | | | | | | (101) | | | | | | 908 | | |
|
Total other comprehensive (loss)/income
|
| | | | | | | | | | (427) | | | | | | (101) | | | | | | 908 | | |
|
Total comprehensive loss for the period attributable to owners of the
company |
| | | | | | | | | | (5,198) | | | | | | (1,087) | | | | | | (1,803) | | |
|
Earnings per share from continuing operations attributable to the ordinary equity holder of the parent:
|
| | | | | | | | | | | | | | | | | | | | | | | | |
|
Basic and diluted loss per share $
|
| | |
|
7
|
| | | | | (0.03) | | | | | | (0.01) | | | | | | (0.02) | | |
| | | |
Note
|
| |
31-Dec-25
(unaudited) |
| |
31-Dec-24
(unaudited) |
| |
30-Jun-25
(audited) |
| ||||||||||||
| | | | | | | | | |
US$’000
|
| |
US$’000
|
| |
US$’000
|
| |||||||||
| Assets | | | | | | | | | | | | | | | | | | | | | | | | | |
| Non-current assets | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Intangible assets
|
| | |
|
9
|
| | | | | 26,807 | | | | | | 12,347 | | | | | | 17,906 | | |
|
Other non-current assets
|
| | | | | | | | | | 25 | | | | | | — | | | | | | — | | |
|
Total non-current assets
|
| | | | | | | | | | 26,832 | | | | | | 12,347 | | | | | | 17,906 | | |
| Current assets | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Trade and other receivables
|
| | |
|
11
|
| | | | | 245 | | | | | | 179 | | | | | | 175 | | |
|
Cash and cash equivalents
|
| | | | | | | | | | 10,562 | | | | | | 2,489 | | | | | | 1,873 | | |
|
Total current assets
|
| | | | | | | | | | 10,807 | | | | | | 2,668 | | | | | | 2,048 | | |
|
Total assets
|
| | | | | | | | | | 37,639 | | | | | | 15,015 | | | | | | 19,954 | | |
| Liabilities | | | | | | | | | | | | | | | | | | | | | | | | | |
| Current liabilities | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Trade and other payables
|
| | |
|
12
|
| | | | | 2,896 | | | | | | 368 | | | | | | 1,776 | | |
|
Total current liabilities
|
| | | | | | | | | | 2,896 | | | | | | 368 | | | | | | 1,776 | | |
|
Total liabilities
|
| | | | | | | | | | 2,896 | | | | | | 368 | | | | | | 1,776 | | |
|
Net assets
|
| | | | | | | | | | 34,743 | | | | | | 14,647 | | | | | | 18,178 | | |
| Equity | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Share capital
|
| | |
|
8
|
| | | | | 2,131 | | | | | | 1,517 | | | | | | 1,739 | | |
|
Share premium
|
| | |
|
8
|
| | | | | 37,613 | | | | | | 13,667 | | | | | | 17,557 | | |
|
Shares to be issued
|
| | | | | | | | | | — | | | | | | 21 | | | | | | — | | |
|
Capital contribution reserve
|
| | | | | | | | | | 5,897 | | | | | | 5,897 | | | | | | 5,897 | | |
|
Share based payments reserve
|
| | | | | | | | | | 1,639 | | | | | | 168 | | | | | | 324 | | |
|
Exchange reserve
|
| | | | | | | | | | 675 | | | | | | 93 | | | | | | 1,102 | | |
|
Accumulated losses
|
| | | | | | | | | | (13,212) | | | | | | (6,716) | | | | | | (8,441) | | |
|
Total equity
|
| | | | | | | | | | 34,743 | | | | | | 14,647 | | | | | | 18,178 | | |
| | | |
Share
capital |
| |
Share
premium |
| |
Shares to
be issued |
| |
Capital
contribution reserve |
| |
Share
based payment reserve |
| |
Exchange
reserve |
| |
Accumulated
losses |
| |
Total
equity |
| ||||||||||||||||||||||||
| | | |
US$’000
|
| |
US$’000
|
| |
US$’000
|
| |
US$’000
|
| |
US$’000
|
| |
US$’000
|
| |
US$’000
|
| |
US$’000
|
| ||||||||||||||||||||||||
|
Balance at 1 July 2024 (audited)
|
| | | | 1,346 | | | | | | 9,680 | | | | | | 174 | | | | | | 5,897 | | | | | | 162 | | | | | | 194 | | | | | | (5,730) | | | | | | 11,723 | | |
|
Loss for the period
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (986) | | | | | | (986) | | |
|
Currency translation
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (101) | | | | | | — | | | | | | (101) | | |
|
Total comprehensive loss for the period
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (101) | | | | | | (986) | | | | | | (1,087) | | |
|
Issue of ordinary shares
|
| | | | 171 | | | | | | 3,987 | | | | | | (153) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 4,005 | | |
|
Share-based payments
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 6 | | | | | | — | | | | | | — | | | | | | 6 | | |
|
Total transactions with owners
|
| | | | 171 | | | | | | 3,987 | | | | | | (153) | | | | | | — | | | | | | 6 | | | | | | — | | | | | | — | | | | | | 4,011 | | |
|
Balance at 31 December 2024 (unaudited)
|
| | | | 1,517 | | | | | | 13,667 | | | | | | 21 | | | | | | 5,897 | | | | | | 168 | | | | | | 93 | | | | | | (6,716) | | | | | | 14,647 | | |
|
Loss for the period
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (1,725) | | | | | | (1,725) | | |
|
Currency translation
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,009 | | | | | | — | | | | | | 1,009 | | |
|
Total comprehensive income/(loss) for the period
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,009 | | | | | | (1,725) | | | | | | (716) | | |
|
Issue of ordinary shares
|
| | | | 222 | | | | | | 4,019 | | | | | | (21) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 4,220 | | |
|
Share issue costs
|
| | | | — | | | | | | (129) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (129) | | |
|
Share-based payments
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 156 | | | | | | — | | | | | | — | | | | | | 156 | | |
|
Total transactions with owners
|
| | | | 222 | | | | | | 3,890 | | | | | | (21) | | | | | | — | | | | | | 156 | | | | | | — | | | | | | — | | | | | | 4,247 | | |
|
Balance at 30 June 2025
(audited) |
| | | | 1,739 | | | | | | 17,557 | | | | | | — | | | | | | 5,897 | | | | | | 324 | | | | | | 1,102 | | | | | | (8,441) | | | | | | 18,178 | | |
|
Loss for the period
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (4,771) | | | | | | (4,771) | | |
|
Currency translation
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (427) | | | | | | — | | | | | | (427) | | |
|
Total comprehensive loss for the period
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (427) | | | | | | (4,771) | | | | | | (5,198) | | |
|
Issue of ordinary shares
|
| | | | 392 | | | | | | 21,323 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 21,715 | | |
|
Share issue costs
|
| | | | — | | | | | | (1,267) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (1,267) | | |
|
Share-based payments
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,315 | | | | | | — | | | | | | — | | | | | | 1,315 | | |
|
Total transactions with owners
|
| | | | 392 | | | | | | 20,056 | | | | | | — | | | | | | — | | | | | | 1,315 | | | | | | — | | | | | | — | | | | | | 21,763 | | |
|
Balance at 31 December 2025 (unaudited)
|
| | | | 2,131 | | | | | | 37,613 | | | | | | — | | | | | | 5,897 | | | | | | 1,639 | | | | | | 675 | | | | | | (13,212) | | | | | | 34,743 | | |
| | | |
Note
|
| |
6 months
ended 31-Dec-25 (unaudited) |
| |
6 months
ended 31-Dec-24 (unaudited) |
| |
Year
ended 30-Jun-25 (audited) |
| ||||||||||||
| | | | | | | | | |
US$’000
|
| |
US$’000
|
| |
US$’000
|
| |||||||||
| Cash flows from operating activities | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Loss for the period
|
| | | | | | | | | | (4,772) | | | | | | (986) | | | | | | (2,711) | | |
| Adjustments for: | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Share-based payment expense
|
| | | | | | | | | | 1,315 | | | | | | 6 | | | | | | 162 | | |
|
Expenses settled in shares
|
| | | | | | | | | | — | | | | | | 26 | | | | | | 63 | | |
|
Foreign exchange differences
|
| | | | | | | | | | (298) | | | | | | 1 | | | | | | 444 | | |
| | | | | | | | | | | | (3,755) | | | | | | (953) | | | | | | (2,042) | | |
| Changes in working capital: | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Decrease in trade and other receivables
|
| | | | | | | | | | 31 | | | | | | 60 | | | | | | 40 | | |
|
Increase/(decrease) in trade and other payables
|
| | | | | | | | | | 1,107 | | | | | | (467) | | | | | | 880 | | |
|
Net cash used in operating activities
|
| | | | | | | | | | (2,617) | | | | | | (1,360) | | | | | | (1,122) | | |
| Cash flows from investing activities | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Purchase of intangibles
|
| | |
|
9
|
| | | | | (9,082) | | | | | | (3,131) | | | | | | (8,038) | | |
|
Investment in financial assets
|
| | | | | | | | | | (25) | | | | | | — | | | | | | — | | |
|
Net cash used in investing activities
|
| | | | | | | | | | (9,107) | | | | | | (3,131) | | | | | | (8,038) | | |
| Cash flows from financing activities | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Proceeds from issue of share capital
|
| | |
|
8
|
| | | | | 21,715 | | | | | | 3,979 | | | | | | 8,091 | | |
|
Share issue costs
|
| | |
|
8
|
| | | | | (1,267) | | | | | | — | | | | | | (123) | | |
|
Net cash generated from financing activities
|
| | | | | | | | | | 20,448 | | | | | | 3,979 | | | | | | 7,968 | | |
|
Net increase/(decrease) in cash and cash equivalents
|
| | | | | | | | | | 8,724 | | | | | | (512) | | | | | | (1,192) | | |
|
Cash and cash equivalents at beginning of period
|
| | | | | | | | | | 1,873 | | | | | | 3,033 | | | | | | 3,033 | | |
|
Effect of foreign currency exchange rates
|
| | | | | | | | | | (35) | | | | | | (32) | | | | | | 32 | | |
|
Cash and cash equivalents at end of period
|
| | | | | | | | | | 10,562 | | | | | | 2,489 | | | | | | 1,873 | | |
|
Standard or Interpretation
|
| |
Description
|
| |
Effective date for annual accounting
period beginning on or after |
|
| IFRS 18 | | | Presentation and Disclosure in Financial Statements | | | 1 January 2026 | |
| | | |
Period ended
31 December 2025 |
| |
Period ended
31 December 2024 |
| |
Year ended
30 June 2025 |
| |||||||||
|
Weighted average number of ordinary shares (No.)
|
| | | | 167,408,387 | | | | | | 117,357,621 | | | | | | 123,960,520 | | |
|
Loss attributable to ordinary shareholders (US$’000)
|
| | | | 4,771 | | | | | | 986 | | | | | | 2,711 | | |
|
Basic loss per share ($)
|
| | | | 0.03 | | | | | | 0.01 | | | | | | 0.02 | | |
| | | |
Number of
ordinary shares |
| |
Share
capital |
| |
Share
premium |
| |||||||||
| | | |
No.
|
| |
US$’000
|
| |
US$’000
|
| |||||||||
|
Balance at 31 December 2024 (Unaudited)
|
| | | | 122,406,991 | | | | | | 1,517 | | | | | | 13,667 | | |
|
Expenses settled in shares
|
| | | | 100,000 | | | | | | 2 | | | | | | 35 | | |
|
Shares issued in relation to acquisition
|
| | | | 150,000 | | | | | | 2 | | | | | | 63 | | |
|
Issued for cash
|
| | | | 16,781,980 | | | | | | 218 | | | | | | 3,921 | | |
|
Expenses relating to share issues
|
| | | | — | | | | | | — | | | | | | (129) | | |
|
Balance as at 30 June 2025 (Audited)
|
| | | | 139,438,971 | | | | | | 1,739 | | | | | | 17,557 | | |
|
Expenses relating to share issues
|
| | | | — | | | | | | — | | | | | | (1,267) | | |
|
Issued for cash
|
| | | | 29,059,996 | | | | | | 392 | | | | | | 21,323 | | |
|
Balance at 31 December 2025 (Unaudited)
|
| | | | 168,498,967 | | | | | | 2,131 | | | | | | 37,613 | | |
| | | |
Pilot
Mountain Project |
| |
Tempiute
Project |
| |
Other
Projects |
| |
Total
Prospecting and exploration rights |
| ||||||||||||
| | | |
US$’000
|
| |
US$’000
|
| |
US$’000
|
| |
US$’000
|
| ||||||||||||
|
Balance at 01 July 2024
|
| | | | 8,662 | | | | | | 268 | | | | | | 350 | | | | | | 9,280 | | |
|
Additions
|
| | | | 7,632 | | | | | | 292 | | | | | | 179 | | | | | | 8,103 | | |
|
Effect of foreign exchange
|
| | | | 470 | | | | | | — | | | | | | 53 | | | | | | 523 | | |
|
Balance at 30 June 2025
|
| | | | 16,764 | | | | | | 560 | | | | | | 582 | | | | | | 17,906 | | |
|
Additions
|
| | | | 5,510 | | | | | | 3,261 | | | | | | 311 | | | | | | 9,082 | | |
|
Effect of foreign exchange
|
| | | | (163) | | | | | | (3) | | | | | | (15) | | | | | | (181) | | |
|
Balance at 31 December 2025
|
| | | | 22,111 | | | | | | 3,818 | | | | | | 878 | | | | | | 26,807 | | |
| | | |
Period ended
31 December 2025 |
| |
Period ended
31 December 2024 |
| |
Year ended
30 June 2025 |
| |||||||||
| | | |
US$’000
|
| |
US$’000
|
| |
US$’000
|
| |||||||||
|
VAT receivable
|
| | | | 74 | | | | | | 62 | | | | | | 50 | | |
|
Other receivables
|
| | | | 171 | | | | | | 117 | | | | | | 125 | | |
|
Trade and other receivables
|
| | | | 245 | | | | | | 179 | | | | | | 175 | | |
| | | |
Period ended
31 December 2025 |
| |
Period ended
31 December 2024 |
| |
Year ended
30 June 2025 |
| |||||||||
| | | |
US$’000
|
| |
US$’000
|
| |
US$’000
|
| |||||||||
|
Trade payables
|
| | | | 1,290 | | | | | | 260 | | | | | | 1,140 | | |
|
Other payables
|
| | | | 707 | | | | | | 18 | | | | | | 65 | | |
|
Accrued expenses
|
| | | | 899 | | | | | | 90 | | | | | | 571 | | |
|
Trade and other payables
|
| | | | 2,896 | | | | | | 368 | | | | | | 1,776 | | |
| | | |
Note
|
| |
Year ended
30 June 2025 |
| |
Year ended
30 June 2024 |
| |||||||||
| | | | | | | | | |
US$’000
|
| |
US$’000
|
| ||||||
| Continuing operations | | | | | | | | | | | | | | | | | | | |
|
Revenue
|
| | | | | | | | | | — | | | | | | | | |
|
Gross profit
|
| | | | | | | | | | — | | | | | | — | | |
|
Other income
|
| | | | | | | | | | 2 | | | | | | — | | |
|
Administrative expenses
|
| | |
|
5
|
| | | | | (2,719) | | | | | | (1,376) | | |
|
Loss from operating activities
|
| | | | | | | | | | (2,717) | | | | | | (1,376) | | |
|
Finance income
|
| | | | | | | | | | 6 | | | | | | — | | |
|
Loss before taxation
|
| | | | | | | | | | (2,711) | | | | | | (1,376) | | |
|
Taxation
|
| | |
|
7
|
| | | | | — | | | | | | — | | |
|
Loss for the year from continuing operations
|
| | | | | | | | | | (2,711) | | | | | | (1,376) | | |
| Other comprehensive (loss)/ income | | | | | | | | | | | | | | | | | | | |
| Items that will or may be reclassified to profit or loss: | | | | | | | | | | | | | | | | | | | |
|
Exchange translation
|
| | | | | | | | | | 908 | | | | | | (13) | | |
|
Total other comprehensive (loss)/income
|
| | | | | | | | | | 908 | | | | | | (13) | | |
|
Total comprehensive (loss) for the year attributable to owners of the Company
|
| | | | | | | | | | (1,803) | | | | | | (1,389) | | |
|
Earnings per share from continuing operations attributable to the ordinary
equity holder of the parent: |
| | | | | | | | | | | | | | | | | | |
|
Basic and diluted loss per share (pence)
|
| | |
|
14
|
| | | | | (0.02) | | | | | | (0.02) | | |
| | | |
Note
|
| |
30 June 2025
|
| |
30 June 2024
|
| |||||||||
| | | | | | | | | |
US$’000
|
| |
US$’000
|
| ||||||
| Assets | | | | | | | | | | | | | | | | | | | |
| Non-current assets | | | | | | | | | | | | | | | | | | | |
|
Intangible assets
|
| | |
|
8
|
| | | | | 17,906 | | | | | | 9,280 | | |
|
Total non-current assets
|
| | | | | | | | | | 17,906 | | | | | | 9,280 | | |
| Current assets | | | | | | | | | | | | | | | | | | | |
|
Trade and other receivables
|
| | |
|
10
|
| | | | | 175 | | | | | | 236 | | |
|
Cash and cash equivalents
|
| | |
|
11
|
| | | | | 1,873 | | | | | | 3,033 | | |
|
Total current assets
|
| | | | | | | | | | 2,048 | | | | | | 3,269 | | |
|
Total assets
|
| | | | | | | | | | 19,954 | | | | | | 12,549 | | |
| Liabilities | | | | | | | | | | | | | | | | | | | |
| Current liabilities | | | | | | | | | | | | | | | | | | | |
|
Trade and other payables
|
| | |
|
16
|
| | | | | 1,776 | | | | | | 826 | | |
|
Total current liabilities
|
| | | | | | | | | | 1,776 | | | | | | 826 | | |
|
Total liabilities
|
| | | | | | | | | | 1,776 | | | | | | 826 | | |
|
Net assets
|
| | | | | | | | | | 18,178 | | | | | | 11,723 | | |
| Equity | | | | | | | | | | | | | | | | | | | |
|
Share capital
|
| | |
|
12
|
| | | | | 1,739 | | | | | | 1,346 | | |
|
Share premium
|
| | |
|
12
|
| | | | | 17,557 | | | | | | 9,680 | | |
|
Shares to be issued
|
| | |
|
12
|
| | | | | — | | | | | | 174 | | |
|
Capital contribution reserve
|
| | |
|
13
|
| | | | | 5,897 | | | | | | 5,897 | | |
|
Share based payment reserve
|
| | |
|
13
|
| | | | | 324 | | | | | | 162 | | |
|
Exchange reserve
|
| | |
|
13
|
| | | | | 1,102 | | | | | | 194 | | |
|
Accumulated losses
|
| | | | | | | | | | (8,441) | | | | | | (5,730) | | |
|
Total equity
|
| | | | | | | | | | 18,178 | | | | | | 11,723 | | |
| | | |
Share
capital |
| |
Share
premium |
| |
Shares to
be issued |
| |
Capital
contribution reserve |
| |
Share based
payment reserve |
| |
Exchange
reserve |
| |
Accumulated
losses |
| |
Total
equity |
| ||||||||||||||||||||||||
| | | |
US$’000
|
| |
US$’000
|
| |
US$’000
|
| |
US$’000
|
| |
US$’000
|
| |
US$’000
|
| |
US$’000
|
| |
US$’000
|
| ||||||||||||||||||||||||
|
Balance at 01 July 2023
|
| | | | 1,043 | | | | | | 6,195 | | | | | | — | | | | | | 5,897 | | | | | | 51 | | | | | | 207 | | | | | | (4,354) | | | | | | 9,039 | | |
|
Loss for the year
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (1,376) | | | | | | (1,376) | | |
|
Currency translation
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (13) | | | | | | — | | | | | | (13) | | |
|
Total comprehensive income / (expense) for the year
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (13) | | | | | | (1,376) | | | | | | (1,389) | | |
|
Issue of ordinary shares
|
| | | | 303 | | | | | | 3,542 | | | | | | 174 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 4,019 | | |
|
Share issue costs
|
| | | | — | | | | | | (71) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (71) | | |
|
Share-based payments
|
| | | | — | | | | | | 14 | | | | | | — | | | | | | — | | | | | | 111 | | | | | | — | | | | | | — | | | | | | 125 | | |
|
Total transactions with owners
|
| | | | 303 | | | | | | 3,485 | | | | | | 174 | | | | | | — | | | | | | 111 | | | | | | — | | | | | | — | | | | | | 4,073 | | |
|
Balance at 30 June 2024
|
| | | | 1,346 | | | | | | 9,680 | | | | | | 174 | | | | | | 5,897 | | | | | | 162 | | | | | | 194 | | | | | | (5,730) | | | | | | 11,723 | | |
|
Balance at 01 July 2024
|
| | | | 1,346 | | | | | | 9,680 | | | | | | 174 | | | | | | 5,897 | | | | | | 162 | | | | | | 194 | | | | | | (5,730) | | | | | | 11,723 | | |
|
Loss for the year
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (2,711) | | | | | | (2,711) | | |
|
Currency translation
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 908 | | | | | | — | | | | | | 908 | | |
|
Total comprehensive (expense) for the year
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 908 | | | | | | (2,711) | | | | | | (1,803) | | |
|
Issue of ordinary shares
|
| | | | 393 | | | | | | 8,006 | | | | | | (174) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 8,225 | | |
|
Share issue costs
|
| | | | — | | | | | | (129) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (129) | | |
|
Share-based payments
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 162 | | | | | | — | | | | | | — | | | | | | 162 | | |
|
Total transactions with owners
|
| | | | 393 | | | | | | 7,877 | | | | | | (174) | | | | | | — | | | | | | 162 | | | | | | — | | | | | | — | | | | | | 8,258 | | |
|
Balance at 30 June 2025
|
| | | | 1,739 | | | | | | 17,557 | | | | |
|
—
|
| | | | | 5,897 | | | | | | 324 | | | | | | 1,102 | | | | | | (8,441) | | | | | | 18,178 | | |
| | | |
Year ended 30 June
2025 |
| |
Year ended 30 June
2024 |
| ||||||
| | | |
US$’000
|
| |
US$’000
|
| ||||||
| Cash flows used in operating activities | | | | | | | | | | | | | |
|
Loss for the year from continuing activities
|
| | | | (2,711) | | | | | | (1,376) | | |
| Adjustments for: | | | | | | | | | | | | | |
|
Share-based payment expense
|
| | | | 162 | | | | | | 111 | | |
|
Expenses settled in shares
|
| | | | 63 | | | | | | 142 | | |
|
Foreign exchange differences
|
| | | | 444 | | | | | | (3) | | |
| | | | | | (2,042) | | | | | | (1,126) | | |
| Changes in working capital: | | | | | | | | | | | | | |
|
Decrease in trade and other receivables
|
| | | | 40 | | | | | | 53 | | |
|
Increase in trade and other payables
|
| | | | 880 | | | | | | 415 | | |
|
Net cash outflows in operating activities
|
| | | | (1,122) | | | | | | (658) | | |
| Cash flows from investing activities | | | | | | | | | | | | | |
|
Purchase of intangibles
|
| | | | (8,038) | | | | | | (1,496) | | |
|
Net cash outflows from investing activities
|
| | | | (8,038) | | | | | | (1,496) | | |
| Cash flows from financing activities | | | | | | | | | | | | | |
|
Proceeds from issue of share capital
|
| | | | 8,091 | | | | | | 3,876 | | |
|
Share issue costs
|
| | | | (123) | | | | | | (57) | | |
|
Net cash inflows from financing activities
|
| | | | 7,968 | | | | | | 3,819 | | |
|
(Decrease)/ increase in cash and cash equivalents
|
| | | | (1,192) | | | | | | 1,665 | | |
|
Cash and cash equivalents at beginning of year
|
| | | | 3,033 | | | | | | 1,371 | | |
|
Effect of foreign currency exchange rates
|
| | | | 32 | | | | | | (3) | | |
|
Cash and cash equivalents at 30 June
|
| | | | 1,873 | | | | | | 3,033 | | |
| | | |
Year ended
30 June 2025 |
| |
Year ended
30 June 2024 |
| ||||||
| | | |
US$’000
|
| |
US$’000
|
| ||||||
| Operating expenses include: | | | | | | | | | | | | | |
|
Staff costs
|
| | | | 506 | | | | | | 354 | | |
|
Share based payment expense
|
| | | | 162 | | | | | | 124 | | |
|
Auditor’s remuneration – audit services
|
| | | | 95 | | | | | | 37 | | |
|
Other administrative expenses
|
| | | | 1,956 | | | | | | 861 | | |
| | | | | | 2,719 | | | | | | 1,376 | | |
| | | |
Year ended
30 June 2025 |
| |
Year ended
30 June 2024 |
| ||||||
| | | |
US$’000
|
| |
US$’000
|
| ||||||
| Group and Company | | | | | | | | | | | | | |
|
Social security contributions
|
| | | | 43 | | | | | | 32 | | |
|
Directors’ salary and fees
|
| | | | 463 | | | | | | 322 | | |
|
Share based payments
|
| | | | 162 | | | | | | 124 | | |
| Total | | | | | 668 | | | | | | 478 | | |
| | | |
Year ended
30 June 2025 |
| |
Year ended
30 June 2024 |
| ||||||
| Group and Company | | | | | | | | | | | | | |
|
Directors
|
| | | | 5 | | | | | | 5 | | |
| Total | | | | | 5 | | | | | | 5 | | |
| | | |
Year ended
30 June 2025 |
| |
Year ended
30 June 2024 |
| ||||||
| | | |
US$’000
|
| |
US$’000
|
| ||||||
|
Emoluments for qualifying services
|
| | | | 270 | | | | | | 213 | | |
| Total | | | | | 270 | | | | | | 213 | | |
| | | |
Year ended
30 June 2025 |
| |
Year ended
30 June 2024 |
| ||||||
| | | |
US$’000
|
| |
US$’000
|
| ||||||
| Reconciliation of tax (credit)/expense | | | | | | | | | | | | | |
|
Losses from operations
|
| | | | 2,711 | | | | | | 1,376 | | |
|
Tax using the Company’s effective domestic tax rate of 19% (2024: 19%)
|
| | | | (515) | | | | | | (261) | | |
| Effects of: | | | | | | | | | | | | | |
|
Disallowable expenditure
|
| | | | 162 | | | | | | 126 | | |
|
Current losses with no recognisable deferred tax asset
|
| | | | 353 | | | | | | 135 | | |
| | | | | | — | | | | | | — | | |
| | | |
Group
Prospecting and exploration rights |
| |||
| | | |
US$’000
|
| |||
|
As at 01 July 2023
|
| | | | 7,796 | | |
|
Additions
|
| | | | 1,496 | | |
|
Effect of foreign exchange
|
| | | | (12) | | |
|
Balance at 30 June 2024
|
| | | | 9,280 | | |
|
Additions
|
| | | | 8,103 | | |
|
Effect of foreign exchange
|
| | | | 523 | | |
|
Balance at 30 June 2025
|
| | | | 17,906 | | |
| | | |
Pilot
Mountain Project |
| |
Tempiute
Project |
| |
Other
Projects |
| |
Total
Prospecting and exploration rights |
| ||||||||||||
| | | |
US$’000
|
| |
US$’000
|
| |
US$’000
|
| |
US$’000
|
| ||||||||||||
|
As at 01 July 2023
|
| | | | 7,445 | | | | | | — | | | | | | 351 | | | | | | 7,796 | | |
| Additions | | | | | 1,228 | | | | | | 268 | | | | | | | | | | | | 1,496 | | |
|
Effect of foreign exchange
|
| | | | (11) | | | | | | — | | | | | | (1) | | | | | | (12) | | |
|
Balance at 30 June 2024
|
| | | | 8,662 | | | | | | 268 | | | | | | 350 | | | | | | 9,280 | | |
| Additions | | | | | 7,632 | | | | | | 292 | | | | | | 179 | | | | | | 8,103 | | |
|
Effect of foreign exchange
|
| | | | 470 | | | | | | — | | | | | | 53 | | | | | | 523 | | |
|
Balance at 30 June 2025
|
| | | | 16,764 | | | | | | 560 | | | | | | 582 | | | | | | 17,906 | | |
| | | |
Year ended
30 June 2025 |
| |
Year ended
30 June 2024 |
| ||||||
| | | |
US$’000
|
| |
US$’000
|
| ||||||
| Non-current investments | | | | | | | | | | | | | |
|
Investment in Golden Metal Resources LLC
|
| | | | — | | | | | | — | | |
|
Investment in Pilot Metals Inc.
|
| | | | 5,880 | | | | | | 5,880 | | |
|
Investment in BFM Resources Inc.
|
| | | | 17 | | | | | | 17 | | |
| Total | | | | | 5,897 | | | | | | 5,897 | | |
|
Subsidiaries
|
| |
Activity
|
| |
Country of
incorporation |
| |
Ownership interest
|
| |
Registered office
|
|
|
Golden Metal Resources LLC
|
| | Mining and exploration | | | USA | | | 100% of ordinary shares held directly | | |
3800 Howard Hughes Parkway
STE 1000, Las Vegas, NV 89169, USA |
|
|
Pilot Metals Inc.
|
| | Mining and exploration | | | USA | | | 100% of ordinary shares held directly | | |
241 Ridge Street
STE 210. Reno, NV 89501, USA |
|
|
BFM Resources Inc.
|
| | Mining and exploration | | | USA | | | 100% of ordinary shares held directly | | |
241 Ridge Street
STE 210. Reno, NV 89501, USA |
|
| | | |
Group
|
| |||||||||
| | | |
As at 30 June
2025 |
| |
As at 30 June
2024 |
| ||||||
| | | |
US$’000
|
| |
US$’000
|
| ||||||
|
VAT receivable
|
| | | | 50 | | | | | | 47 | | |
|
Other receivables
|
| | | | 125 | | | | | | 189 | | |
|
Trade and other receivables
|
| | | | 175 | | | | | | 236 | | |
| | | |
Group
|
| |||||||||
| | | |
As at 30 June
2025 |
| |
As at 30 June
2024 |
| ||||||
| | | |
US$’000
|
| |
US$’000
|
| ||||||
|
Bank balances
|
| | | | 1,873 | | | | | | 3,033 | | |
|
Cash and cash equivalents
|
| | | | 1,873 | | | | | | 3,033 | | |
| | | |
Number of ordinary shares
|
| |||||||||
| | | |
Year ended
30 June 2025 |
| |
Year ended
30 June 2024 |
| ||||||
|
Balance at beginning of year
|
| | | | 109,832,217 | | | | | | 85,000,255 | | |
|
Expenses settled in shares
|
| | | | 170,000 | | | | | | 617,647 | | |
|
Shares issued in relation to acquisition
|
| | | | 150,000 | | | | | | — | | |
|
Issued for cash
|
| | | | 29,286,754 | | | | | | 24,214,315 | | |
|
In issue at 30 June – fully paid (par value 0.1p)
|
| | | | 139,438,971 | | | | | | 109,832,217 | | |
| | | |
Ordinary share capital
|
| |||||||||
| | | |
Year ended
30 June 2025 |
| |
Year ended
30 June 2024 |
| ||||||
| | | |
US$’000
|
| |
US$’000
|
| ||||||
|
Balance at beginning of year
|
| | | | 1,346 | | | | | | 1,043 | | |
|
Expenses settled in shares
|
| | | | 2 | | | | | | — | | |
|
Shares issued in relation to acquisition
|
| | | | 2 | | | | | | — | | |
|
Share issues
|
| | | | 389 | | | | | | 303 | | |
|
Balance at end of year
|
| | | | 1,739 | | | | | | 1,346 | | |
| | | |
Share premium
|
| |||||||||
| | | |
Year ended
30 June 2025 |
| |
Year ended
30 June 2024 |
| ||||||
| | | |
US$’000
|
| |
US$’000
|
| ||||||
|
Balance at beginning of year
|
| | | | 9,680 | | | | | | 6,195 | | |
|
Expenses settled in shares
|
| | | | 61 | | | | | | — | | |
|
Shares issued in relation to acquisition
|
| | | | 63 | | | | | | | | |
|
Share issues
|
| | | | 7,882 | | | | | | 3,542 | | |
|
Expenses relating to share issues
|
| | | | (129) | | | | | | (57) | | |
|
Balance at 30 June
|
| | | | 17,557 | | | | | | 9,680 | | |
|
2025
|
| |
Number of
options |
| |
Weighted
average exercise price (£’s) |
| ||||||
|
Outstanding at 1 July 2024
|
| | | | 6,004,860 | | | | | | 0.13 | | |
|
Granted during the year
|
| | | | 1,400,000 | | | | | | 0.09 | | |
|
Outstanding at 30 June 2025
|
| | | | 7,404,860 | | | | | | 0.18 | | |
|
Exercisable at 30 June 2025
|
| | | | 6,704,860 | | | | | | 0.18 | | |
|
2024
|
| |
Number of
options |
| |
Weighted
average exercise price (£’s) |
| ||||||
|
Outstanding at 1 July 2023
|
| | | | 2,104,860 | | | | | | 0.11 | | |
|
Granted during the year
|
| | | | 3,900,000 | | | | | | 0.14 | | |
|
Outstanding at 30 June 2024
|
| | | | 6,004,860 | | | | | | 0.25 | | |
|
Exercisable at 30 June 2024
|
| | | | 5,303,240 | | | | | | 0.13 | | |
|
Date granted
|
| |
September 2024
|
| |
January 2025
|
|
|
Risk free interest rate
|
| |
3.638%
|
| |
4.107%
|
|
|
Expected volatility
|
| |
68.297%
|
| |
64.824%
|
|
|
Expected dividend yield
|
| |
0%
|
| |
0%
|
|
|
Life of the option
|
| |
1.5 years
|
| |
1.5 years
|
|
|
Share price at measurement date
|
| |
£0.305
|
| |
£0.328
|
|
|
Fair value
|
| |
£69,877
|
| |
£31,878
|
|
| | | |
Number of
warrants |
| |
Weighted
average exercise price (£’s) |
| ||||||
|
Outstanding at 1 July 2024
|
| | | | 21,106,446 | | | | | | 0.14 | | |
|
Granted during the year
|
| | | | 4,209,027 | | | | | | 0.40 | | |
|
Exercised
|
| | | | (18,908,700) | | | | | | 0.18 | | |
|
Lapsed
|
| | | | (102,750) | | | | | | 0.17 | | |
|
Outstanding at 30 June 2025
|
| | | | 6,304,023 | | | | | | 0.31 | | |
|
Exercisable at 30 June 2025
|
| | | | 6,304,023 | | | | | | 0.31 | | |
|
2024
|
| |
Number of
warrants |
| |
Weighted
average exercise price (£’s) |
| ||||||
|
Outstanding at 1 July 2023
|
| | | | 36,840,444 | | | | | | 0.14 | | |
|
Granted during the year
|
| | | | 2,500,000 | | | | | | 0.25 | | |
|
Exercised
|
| | | | (16,964,315) | | | | | | (0.11) | | |
|
Lapsed
|
| | | | (1,269,683) | | | | | | (0.11) | | |
|
Outstanding at 30 June 2024
|
| | | | 21,106,446 | | | | | | 0.18 | | |
|
Exercisable at 30 June 2024
|
| | | | 21,106,446 | | | | | | 0.18 | | |
|
Date granted
|
| |
January 2025
|
| |
January 2025
|
|
|
Warrants granted
|
| |
120,000
|
| |
100,000
|
|
|
Risk free interest rate
|
| |
4.240%
|
| |
4.140%
|
|
|
Expected volatility
|
| |
70%
|
| |
69%
|
|
|
Expected dividend yield
|
| |
0%
|
| |
0%
|
|
|
Life of the option
|
| |
1 year
|
| |
1 year
|
|
|
Share price at measurement date
|
| |
£0.300
|
| |
£0.350
|
|
|
Fair value
|
| |
£7,605
|
| |
£8,296
|
|
| | | |
Group
|
| |||||||||
| | | |
As at
30 June 2025 |
| |
As at
30 June 2024 |
| ||||||
| | | |
($ in thousands)
|
| |||||||||
|
Trade payables
|
| | | | 1,140 | | | | | | 251 | | |
|
Other payables
|
| | | | 65 | | | | | | 54 | | |
|
Accrued expenses
|
| | | | 571 | | | | | | 521 | | |
|
Trade and other payables
|
| | | | 1,776 | | | | | | 826 | | |
| | | |
Group
|
| |||||||||
| | | |
As at
30 June 2025 |
| |
As at
30 June 2024 |
| ||||||
| | | |
($ in thousands)
|
| |||||||||
|
Cash and cash equivalents
|
| | | | 1,873 | | | | | | 3,033 | | |
| | | | | | 1,873 | | | | | | 3,033 | | |
| | | |
Group
|
| |||||||||
| | | |
As at
30 June 2025 |
| |
As at
30 June 2024 |
| ||||||
| | | |
($ in thousands)
|
| |||||||||
|
Trade and other receivables
|
| | | | 125 | | | | | | 189 | | |
|
Cash and cash equivalents
|
| | | | 1,873 | | | | | | 3,033 | | |
| | | | | | 1,998 | | | | | | 3,222 | | |
|
30 June 2025
|
| |
Carrying
amount |
| |
2 months
or less |
| |
3 – 12 months
|
| |
More than
1 year |
| ||||||||||||
| | | |
($ in thousands)
|
| |||||||||||||||||||||
|
Trade and other payables
|
| | | | 1,205 | | | | | | 1,205 | | | | | | — | | | | | | — | | |
| | | | |
|
1,205
|
| | | |
|
1,205
|
| | | | | — | | | | | | — | | |
|
30 June 2024
|
| |
Carrying
amount |
| |
2 months
or less |
| |
3 – 12 months
|
| |
More than
1 year |
| ||||||||||||
| | | |
($ in thousands)
|
| |||||||||||||||||||||
|
Trade and other payables
|
| | | | 305 | | | | | | 305 | | | | | | — | | | | | | — | | |
| | | | | | 305 | | | | | | 305 | | | | | | — | | | | | | — | | |
| | | |
Group
|
| |||||||||
| | | |
30 June
2025 |
| |
30 June
2024 |
| ||||||
| | | |
($ in thousands)
|
| |||||||||
| Net foreign currency financial assets/(liabilities) | | | | | | | | | | | | | |
|
GBP
|
| | | | 1,258 | | | | | | 2,988 | | |
|
CAD
|
| | | | — | | | | | | (84) | | |
|
AUD
|
| | | | (8) | | | | | | — | | |
|
Total net exposure
|
| | | | 1,250 | | | | | | 2,904 | | |
| | | |
Profit and Loss
|
| |
Equity
|
| ||||||||||||||||||
| | | |
30 June
2025 |
| |
30 June
2024 |
| |
30 June
2025 |
| |
30 June
2024 |
| ||||||||||||
| | | |
($ in thousands)
|
| |||||||||||||||||||||
| Group and Company | | | | | | | | | | | | | | | | | | | | | | | | | |
|
GBP
|
| | | | (126) | | | | | | (299) | | | | | | (126) | | | | | | (299) | | |
|
CAD
|
| | | | — | | | | | | 8 | | | | | | — | | | | | | 8 | | |
|
AUD
|
| | | | 1 | | | | | | — | | | | | | 1 | | | | | | — | | |
|
Total net exposure
|
| | | | (125) | | | | | | (291) | | | | | | (125) | | | | | | (291) | | |
| |
Exhibit No.
|
| |
Description
|
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| | 1.1* | | | Form of Underwriting Agreement | |
| | 3.1 | | | | |
| | 4.1 | | | | |
| | 4.2 | | | | |
| | 5.1 | | | | |
| | 10.1 | | | | |
| | 10.2 | | | | |
| | 10.3 | | | | |
| | 10.4 | | | | |
| | 14.1 | | | | |
| | 21.1 | | | | |
| | 23.1 | | | | |
| | 23.2 | | | | |
| | 23.3 | | | | |
| | 23.4 | | | | |
| | 24.1 | | | | |
| | 96.1 | | | | |
| | 107 | | | |
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Name
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Title
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|
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/s/ Oliver Friesen
Oliver Friesen
|
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Chief Executive Officer and Director
(Principal Executive Officer) |
|
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/s/ Benjamin James Hodges
Benjamin James Hodges
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Finance Director
(Principal Financial Officer and Principal Accounting Officer) |
|
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/s/ Jason Thomas Starzecki
Jason Thomas Starzecki
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Executive Chairman and Director
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|
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/s/ Mark Burnett
Mark Burnett
|
| |
Director
|
|
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/s/ Michael X. Schlumpberger
Michael X. Schlumpberger
|
| |
Director
|
|
Exhibit 3.1
THE COMPANIES ACT 2006
(AS AMENDED)
PUBLIC COMPANY LIMITED BY SHARES
ARTICLES OF ASSOCIATION
OF
GOLDEN METAL RESOURCES PLC
(Amended by Special Resolution dated 23 February 2022)
PRELIMINARY
| 1. | In these Articles the following words and expressions shall have the following meanings unless the context otherwise requires: |
| “AIM” | means the market of that name operated by the Stock Exchange; | |
| “the Act” | the Companies Act 2006 including any statutory modification or re-enactment thereof for the time being in force; | |
| “these Articles” | these articles of association or such other articles of association of the Company as are from time to time in force; | |
| “the Auditors” | the auditors for the time being of the Company; | |
| “the Board” | the board of Directors; | |
| “certificated share” | a share in the capital of the Company that is not an uncertificated share and references in these Articles to a share being held in certificated form shall be construed accordingly; | |
| “Companies Acts” | has the meaning given by section 2 of the Act and includes any enactment passed after the Act which may, by virtue of that or any other enactment, be cited together with the Act as “the Companies Acts”; |
| “the Directors” | the directors for the time being of the Company or, as the case may be, the directors present at a duly convened meeting of the board of directors or any duly authorised committee thereof at which a quorum is present; | |
| “electronic communication” | any document or information sent or supplied in electronic form within the meaning of section 1168 of the Act; | |
| “electronic form” and “electronic means” | have the same meaning as in section 1168 of the Act; | |
| “member” | a person who has agreed to become a member of the Company and whose name is entered in the Company’s register of members; | |
| “month” | calendar month; | |
| “the Office” | the registered office for the time being of the Company; | |
| “Operator” | has the meaning given in the Regulations; | |
| “paid up” | includes credited as paid up; | |
| “the Register” | either or both of the register of members and the Operator register of members of the Company; | |
| “the Regulations” | the Uncertificated Securities Regulations 2001 (SI 2001 No. 3755) including any statutory modification or re-enactment thereof and any rules made thereunder and for the time being in force; | |
| “relevant system” | the computer-based system, and procedures, which enable title to units of a security to be evidenced and transferred without written instrument, and which facilitate supplementary and incidental matters in accordance with the Regulations; | |
| “Secretary” | the secretary or joint secretary for the time being of the Company and any assistant or deputy secretary, and any person appointed by the Directors to perform the duties of the secretary of the Company; | |
| “signed” and “signature” | includes, subject to any laws applicable at the time that a document is signed or a signature affixed, an electronic signature or other form of verification that is acceptable to the Board; |
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| “the Stock Exchange” | the London Stock Exchange plc; | |
| “the Statutes” | means the Act, the Regulations and every other statute for the time being in force including every statutory modification or re-enactment thereof concerning companies and affecting the Company; | |
| “uncertificated share” | (subject to Regulation 42(11)(a) of the Regulations) a share in the capital of the Company title to which is recorded on the Operator register of members of the Company and which may, by virtue of the Regulations, be transferred by means of a relevant system and references in these Articles to a share being held in uncertificated form shall be construed accordingly; | |
| “in writing” and “written” | includes writing and any other way of representing or copying words legibly so that they are permanent, or subject to any laws applicable at the time the writing is created, in electronic form. |
Where the context so admits words and expressions used in the Regulations shall bear the same meaning in these Articles.
Where, in relation to a share, these Articles refer to a relevant system, the reference is to the relevant system in which that share is a participating security at the relevant time.
Words importing the singular number only include the plural number and vice versa.
Words importing one gender only include the other genders. Words importing persons include corporations.
Words and expressions defined in the Statutes shall, unless the context otherwise requires, have the same meanings in these Articles.
The headings in these Articles are inserted for convenience only and shall not affect the construction hereof
| 2. | No regulations or articles set out in any statute, or in any statutory instrument or other subordinate legislation made under any statute, concerning companies shall apply as the regulations or articles of the Company. |
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LIMITED LIABILITY
| 3. | The liability of the members of the Company is limited to the amount, if any, unpaid on the shares in the Company held by them. |
CHANGE OF NAME
| 4. | The Company may change its name by resolution of the Board. |
SHARES
| 5. | Without prejudice to any special rights previously conferred on the holders of any existing shares or class of shares, any share in the capital of the Company may be issued with such rights (including preferred, deferred or other special rights) or such restrictions, whether in regard to dividend, voting, return of capital or otherwise as the Company may by ordinary resolution determine. |
| 6. | Subject to any rights attached to any existing shares or class of shares, shares may be issued which are to be redeemed or are liable to be redeemed at the option of the Company or the shareholder on such terms and conditions and in such manner as shall be provided by the Board prior to the date on which such shares were allotted. |
| 7. | The Company shall not give any financial assistance for the acquisition of shares in the Company except and in so far as permitted by the Statutes. |
| 8. | The shares of the Company shall not be allotted at a discount and save as permitted by the Statutes shall not be allotted except as paid up at least as to one-quarter of their nominal value and the whole of any premium thereon. |
| 9. | The Company may exercise the powers of paying commissions conferred by the Statutes to the fullest extent thereby permitted. Such commission may be satisfied by the payment of cash or the allotment of fully or partly paid shares or partly in one way and partly in the other. The Company may also on any issue of shares pay such brokerage as may be lawful. |
| 10. | Save as otherwise provided in the Statutes or in these Articles, all unissued shares (whether forming part of the original or any increased capital) shall be at the disposal of the Directors who may (subject to the provisions of the Statutes) allot (with or without conferring a right of renunciation), grant options over, offer or otherwise deal with or dispose of them to such persons at such times and generally on such terms and conditions as they may determine. The Directors may at any time after the allotment of any share but before any person has been entered in the Register as the holder thereof recognise a renunciation thereof by the allottee in favour of some other person and may accord to any allottee of a share a right to effect such renunciation upon and subject to such terms and conditions as the Directors may think fit to impose. |
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| 11. | Save as otherwise provided in these Articles or as otherwise required by the Act the Company shall be entitled to treat the person whose name appears on the Register in respect of any share as the absolute owner thereof, and accordingly shall not, except as ordered by a court of competent jurisdiction or as required by the Statutes, be bound to recognise any trust or equity or any equitable, contingent, future, partial or other claim to or interest in any share on the part of any other person whether or not it shall have express or other notice thereof. |
SHARE CERTIFICATES
| 12. | Subject to the Statutes, the Board may by resolution determine, either generally or in any particular case or cases, that share certificates need not be issued under a seal. The Board may by resolution decide, either generally or in any particular case or cases, that any signatures on any share certificate need not be autographic but may be applied to the certificates by mechanical means or may be printed on them or that the certificates need not be signed by any person. |
| 13. | Any person (except where the holding of shares is in uncertificated form or via a recognised person in respect of whom the Company is not required by law to complete and have ready for delivery a certificate) upon becoming the registered holder of any shares in the Company shall be entitled, without payment, to one certificate for all the certificated shares registered in his name, or in the case of shares of more than one class being registered in his name, to a separate certificate for each class of shares so registered and on transferring part of the shares of any class registered in his name he shall be entitled without payment to one certificate for the balance of shares retained by him and registered in his name. |
| 14. | Upon delivery to the Directors of any certificate which is worn out or defaced they may order the same to be cancelled and may issue a new certificate in its place, and if any certificate is lost, stolen or destroyed, then, subject to compliance with such conditions as to evidence and indemnity (with or without security) as the Directors shall deem fit, a new certificate shall be given to the party entitled, in place of the lost, stolen or destroyed certificate. |
| 15. | Every certificate issued under the last preceding Article shall be issued without payment, but there shall be paid to the Company a sum equal to any exceptional out of pocket expenses incurred by the Company in respect of any such issue. |
| 16. | The Company shall not be bound to issue more than one certificate in respect of shares registered in the joint names of two or more persons and such certificate shall be delivered to the person first named on the Register in respect of such shares. The Company shall not be bound to register more than four persons as joint holders (except in the case of executors or trustees of a deceased member). |
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UNCERTIFICATED SHARES
| 17. | Subject to the provisions of the Regulations, the Board may permit the holding of shares in any class of shares in uncertificated form and the transfer of title to shares in that class by means of a relevant system and may determine that any class of shares shall cease to be a participating security. |
| 18. | Shares in the capital of the Company that fall within a certain class shall not form a separate class of shares from other shares in that class because any share in that class: |
| (a) | is held in uncertificated form; or |
| (b) | is permitted in accordance with the Regulations to become a participating security. |
| 19. | Where any class of shares is a participating security and the Company is entitled under any provision of the Act, the Regulations or these Articles to sell, transfer or otherwise dispose of, forfeit, re-allot, accept the surrender of or otherwise enforce a lien over a share held in uncertificated form, the Company shall be entitled, subject to the provisions of the Act, the Regulations, these Articles and the facilities and requirements of the relevant system: |
| (a) | to require the holder of that uncertificated share by notice to change that share into certificated form within the period specified in the notice and to hold that share in certificated form so long as required by the Company; |
| (b) | to require the holder of that uncertificated share by notice to give any instructions necessary to transfer title to that share by means of the relevant system within the period specified in the notice; |
| (c) | to require the holder of that uncertificated share by notice to appoint any person to take any step, including without limitation the giving of any instructions by means of the relevant system, necessary to transfer that share within the period specified in the notice; |
| (d) | to require the Operator to convert that uncertificated share into certificated form in accordance with Regulation 32(2)(c) of the Regulations; and |
| (e) | to take any action that the Board considers appropriate to achieve the sale, transfer, disposal, forfeiture, re-allotment or surrender of that share or otherwise to enforce a lien in respect of that share. |
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VARIATION OF RIGHTS
| 20. | If at any time the capital is divided into different classes of shares all or any of the rights or privileges attached to any class may, subject to the provisions of the Act, be varied or abrogated either (a) in such manner (if any) as may be provided by such rights, or (b) in the absence of any such provision either with the consent in writing of the holders of at least three-fourths of the nominal amount of the issued shares of that class or with the sanction of a special resolution passed at a separate meeting of the holders of the issued shares of that class, but not otherwise. The creation or issue of shares ranking pari passu with or subsequent to the shares of any class shall not (unless otherwise expressly provided by these Articles or the rights attached to such last mentioned shares as a class) be deemed to be a variation of the rights of such shares. |
| 21. | To every such separate general meeting all of the provisions of these Articles relating to general meetings shall mutatis mutandis and so far as applicable, apply provided that: |
| 21.1. | the necessary quorum at such meeting shall be two persons holding or representing by proxy at least one-third in nominal value of the issued shares of the class in question and at an adjourned meeting one person holding shares of the class in question or his proxy; and |
| 21.2. | any holder of shares of the class in question present in person or by proxy and entitled to vote at the meeting may demand a poll. |
CALLS ON SHARES
| 22. | The Directors may (subject to the terms of allotment thereof) from time to time make such calls as they think fit upon the members in respect of all monies unpaid on the shares held by them whether on account of the nominal amount of the shares or by way of premium provided that at least 14 days’ notice be given of each call. Each member shall pay the amount of each call made on him to the person and at the time and place specified by the Directors in the said notice. |
| 23. | A call may be made payable by instalments and may, at any time before receipt by the Company of a sum due thereunder, either be revoked or postponed in whole or in part. |
| 24. | A call shall be deemed to have been made at the time when the resolution of the Directors authorising such call was passed. The Directors may make arrangements on the issue of shares for a difference between the holders of such shares in the amount of calls to be paid and the time of payment of such calls. |
| 25. | The joint holders of a share shall be jointly and severally liable to pay all costs in respect of it. |
| 26. | If the sum payable in respect of any call or instalment is not paid on or before the day appointed for payment, the holder for the time being of the share in respect of which the sum is due, shall pay interest on the sum at such rate as may be fixed by the terms of allotment of the share or, if no rate is fixed, at the appropriate rate (as defined by the Act) from the time appointed for payment until the actual payment, and all expenses that may have been incurred by the Company by reason of such non-payment but the Directors may if they think fit waive the payment of such interest and expenses or any part thereof. |
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| 27. | The Directors may, if they think fit, receive from any member willing to advance the same all or any part of the money unpaid upon the shares held by him beyond the sums actually called up; and upon the money being paid in advance, or so much thereof as from time to time exceeds the amount of the calls then made upon the shares in respect of which such advance shall have been made, the Company may pay interest at such rate (not exceeding, without the sanction of the Company given by ordinary resolution, the appropriate rate aforesaid) as the member paying such sum in advance and the Directors agree upon, but no part of such monies shall be included or taken into account in ascertaining the amount of the dividend payable upon the shares in respect of which such advance has been made. |
| 28. | If by the terms of issue of any shares, or otherwise, any amount is made payable at any fixed date or by instalments and whether on account of the nominal value of the shares or by way of premium thereon, every such amount shall be payable as if it were a call duly made by the Directors of which due notice had been given and all the provisions of these Articles as to the payment of calls and interest and expenses in connection therewith and as to the forfeiture of shares for non-payment of calls shall apply to every such amount and the shares in respect of which it is payable. |
FORFEITURE AND LIEN
| 29. | If any member fails to pay any call or instalment of a call on or before the day appointed for payment, the Directors may at any time thereafter during such time as the call or instalment or any part thereof remains unpaid, serve a notice on such member requiring him to pay the same, together with any interest that may have accrued thereon and all expenses incurred by the Company by reason of such non-payment. |
| 30. | The notice shall name a further day (not being less than 14 days from the date of the notice) on or before which and a place where such call or instalment and all such interest and expenses are to be paid. The notice shall also state that in the event of non-payment at or before the time and at the place appointed, the shares in respect of which such call was made or instalment is payable will be liable to be forfeited. |
| 31. | If the requirements of any such notice as aforesaid are not complied with, any shares in respect of which such notice shall have been given may, at any time thereafter but before payment of all calls or instalments, interest and expenses due in respect thereof, be forfeited by a resolution of the Directors to that effect. Forfeiture shall be deemed to occur at the time of the passing of the said resolution and shall extend to all dividends declared in respect of the forfeited shares but not actually paid before the forfeiture. The Directors may accept the surrender of any share liable to be forfeited hereunder on such terms as they think fit. |
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| 32. | When any share has been forfeited or surrendered, notice of forfeiture or surrender shall be served upon the person who was, before forfeiture or surrender, the holder of the share or the person entitled thereto by transmission and an entry of the forfeiture or surrender made in the Register; but no forfeiture shall be invalidated by any omission or neglect to give such notice or make such entry as aforesaid. Subject to the provisions of the Act any share so forfeited or surrendered shall be deemed to be the property of the Company and the Directors may, within 3 years of such forfeiture or surrender sell, re-allot, or otherwise dispose of the same in such manner as they think fit, either to the person who was the holder of the shares before the forfeiture or surrender, or to any other person and either with or without any past or accruing dividends and in the case of re-allotment, with or without any money paid thereon by the former holder being credited as paid up thereon. Any share not disposed of within a period of 3 years from the date of its forfeiture or surrender shall be cancelled in accordance with the provisions of the Act. |
| 33. | The Directors may at any time before any share so forfeited or surrendered is cancelled, sold, re-allotted or otherwise disposed of, annul the forfeiture or surrender upon such terms as they think fit. |
| 34. | Any member whose shares have been forfeited or surrendered shall immediately cease to be a member in respect of those shares and shall surrender to the Company for cancellation the certificate for the forfeited or surrendered shares but shall notwithstanding remain liable for and shall forthwith pay to the Company all monies which at the date of forfeiture or surrender were then payable by him in respect of the shares, together with interest thereon, from the time of forfeiture until payment, at such rate as may be fixed by the terms of allotment of the shares or, if no rate is so fixed, at the appropriate rate aforesaid but the Directors may waive payment wholly or in part or enforce payment without any allowance for the value of the shares at the time of forfeiture or surrender or for any consideration received upon their disposal. |
| 35. | The Company shall have a first and paramount lien upon every share, (not being a fully paid share) registered in the name of each member (whether solely or jointly with others) for any amount (whether presently payable or not) called or payable in respect of such share, and such lien shall apply to all dividends from time to time declared or other monies payable in respect of such share. The registration of a transfer of a share shall, unless otherwise agreed, operate as a waiver of the Company’s lien, if any, on such share. The Directors may waive any lien which has arisen and may resolve that any share is wholly or partly exempt from the provisions of this Article. |
| 36. | The Company may sell in such manner as the Directors think fit, any share on which the Company has a lien but no sale shall be made unless a sum in respect of which the lien exists is presently payable nor until the expiration of fourteen days after a written notice stating and demanding payment of the sum payable and giving notice of the intention to sell in default of such payment being made has been given to the registered holder for the time being of the share or the person entitled thereto by reason of his death or bankruptcy or otherwise by operation of law. |
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| 37. | The net proceeds of such sale after payment of the costs thereof, shall be applied in or towards payment or satisfaction of such part of the amount in respect of which the lien exists as is presently payable. The balance, if any, shall (subject to a like lien for sums not presently payable as existed upon the shares before the sale) be paid to the person entitled to the shares at the date of sale. For giving effect to any such sale the Directors may authorise some person to transfer the shares sold to or in accordance with the directions of the purchaser. |
| 38. | Upon any sale or re-allotment after forfeiture or surrender or upon any sale for enforcing any lien in purported exercise of the powers hereinbefore given, the Directors may in the case of a sale nominate some person to execute a transfer of the shares sold in the name and on behalf of the registered holder (or other persons entitled thereto by reason of his death or bankruptcy) and may in any such case cause the name of the purchaser or allottee to be entered in the Register in respect of the shares sold or re-allotted, and the purchaser or allottee shall not be bound to see to the regularity of the proceedings or to the application of the purchase or subscription money, and after his name has been entered in the Register in respect of such shares, the validity of the sale or forfeiture shall not be impeached by any person and the remedy of any person aggrieved by the sale or forfeiture shall be in damages only and against the Company exclusively. |
| 39. | A statutory declaration in writing that the declarant is a Director or the Secretary of the Company and that a share has been duly forfeited or surrendered or sold to satisfy a lien of the Company on a date stated in the declaration shall be conclusive evidence of the facts therein stated as against all persons claiming to be entitled to such share. |
TRANSFER OF SHARES
| 40. | Title to any securities of the Company may be evidenced and title to and interests in securities may be transferred without a written instrument in accordance with statutory regulations from time to time made under the Statutes, and the Board shall have power to implement any arrangements it may think fit for such evidencing and transfer which accord with those regulations. |
| 41. | Subject to the preceding Article, all transfers of certificated shares may be effected by transfer in writing in any usual or common form or in such other form as shall be approved by the Directors. The instrument of transfer shall be signed by or on behalf of the transferor (and in the case of a transfer of a partly paid share, by the transferee) and the transferor shall be deemed to remain the holder of the share until the name of the transferee is entered in the Register in respect of it. When registered the instrument of transfer shall be retained by the Company. |
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| 42. | The Directors may in their absolute discretion and without giving any reason refuse to register any instrument of transfer: |
| 42.1. | unless it is in respect of a fully paid share; |
| 42.2. | unless it is in respect of a share on which the Company does not have a lien; |
| 42.3. | unless it is in respect of only one class of shares; |
| 42.4. | if it is in favour of more than four joint holders as transferees; |
| 42.5. | to an entity which is not a natural or legal person; |
| 42.6. | to a minor, to a person in respect of whom a receiving order or adjudication order in bankruptcy has been made which remains undischarged or to a person who is then suffering from mental disorder; and |
| 42.7. | unless the conditions referred to in Article 43 have been satisfied; |
provided always that the Directors shall at all times when considering an instrument of transfer in respect of partly paid shares have regard to the requirements of AIM and the Stock Exchange so as to ensure that the Company does not prevent dealings in its shares on an open and proper basis. If the Board refuses to register a transfer of any shares it shall send to the transferee notice of the refusal, as required by section 771 of the 2006 Act, within 2 months after the date on which, in respect of certificated shares, the transfer was lodged with the Company, or, in respect of uncertificated shares, the date on which the appropriate instruction was received by or on behalf of the Company, in each case in accordance with the facilities and requirements of the relevant system concerned.
| 43. | Every instrument of transfer must be left at the Office (duly stamped if necessary), or at such other place as the Directors may from time to time determine, accompanied by the certificate for the shares to which it relates and such evidence as the Directors may reasonably require to prove the title of the transferor and the due execution by him of the transfer. |
| 44. | In the case of a transfer by a recognised clearing house or a nominee of a recognised clearing house or of a recognised investment exchange the lodgement of share certificates with the instrument of transfer will only be necessary if and to the extent that certificates have been issued in respect of the shares in question. The expressions “recognised clearing house” and “recognised investment exchange” shall have the meanings given to them in the Financial Services and Markets Act 2000. |
| 45. | No fee shall be payable for registering any transfer, probate, letters of administration, certificate of marriage or death, power of attorney, stop notice, court order or other document relating to or affecting the title to any shares or the right to transfer the same. |
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| 46. | All instruments of transfer which are registered shall be retained by the Company, but any instrument of transfer which the Directors may refuse to register shall (except in the case of fraud) be returned to the person depositing the same. |
TRANSMISSION OF SHARES
| 47. | In the case of the death of a member, the survivor or survivors, where the deceased was a joint holder, and the legal personal representative of the deceased, where he was a sole holder or only surviving holder, shall be the only persons recognised by the Company as having any title to his interest in any share(s); but nothing in these Articles shall release the estate of a deceased member from any liability in respect of any share which has been held by him solely or jointly with any other person. |
| 48. | Any person becoming entitled to a share in consequence of the death or bankruptcy of a member or otherwise by operation of law may, upon such evidence being produced as may from time to time properly be required by the Directors and subject as hereinafter provided, elect either to be registered himself as holder of the share or to have some person nominated by him registered as the transferee thereof, but the Directors shall, in either ease, have the same right to decline registration as they would have had in the case of a transfer of the share by the member registered as the holder of any such share before his death or bankruptcy or other event, as the case may be. |
| 49. | If the person so becoming entitled shall elect to be registered himself, he shall deliver or send to the Company a notice in writing signed by him stating that he so elects. If he shall elect to have another person registered he shall testify his election by executing to that person a transfer of the share. All the limitations, restrictions and provisions of these Articles relating to the right to transfer and the registration of transfers of shares shall be applicable to any such notice or transfer as aforesaid as if the death or bankruptcy of the member or other event had not occurred and the notice of transfer were a transfer signed by the member registered as the holder of any such share. |
| 50. | A person becoming entitled to a share by reason of the death or bankruptcy of the holder or otherwise by operation of law shall, upon supplying to the Company such evidence as the Directors may reasonably require to show his title to the share, be entitled to the same dividends and other advantages to which he would be entitled if he were the registered holder of the share, except that he shall not, before being registered as a member in respect of the share, be entitled in respect of it to exercise any right conferred by membership in relation to meetings of the Company (including meetings of the holders of any class of shares in the Company) provided always that the Directors may at any time give notice requiring any such person to elect either to be registered or to transfer the share, and if the notice is not complied with within sixty days the Directors may thereafter withhold payment of all dividends, bonuses or other monies payable in respect of the share until the requirements of the notice have been complied with. |
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UNTRACEABLE SHAREHOLDERS
| 51. | The Company shall be entitled to sell at the best price reasonably obtainable at the time of sale any share of a member or any share to which a person is entitled by transmission if and provided that: |
| 51.1. | for a period of twelve years no cheque, warrant or order sent by the Company through the post in a prepaid letter addressed to the member or to the person entitled by transmission to the share at his address on the Register or other the last known address given by the member or the person entitled by transmission to which cheques, warrants and orders are to be sent has been cashed and no communication has been received by the Company from the member or the person entitled by transmission provided that in such period of twelve years at least three dividends whether interim or final on or in respect of the share in question have become payable and no such dividend during that period has been claimed; and |
| 51.2. | at the expiration of the said period of twelve years the Company has given notice of its intention to sell such share by advertisement in a national daily newspaper and a newspaper circulating in the area in which the last known address of the member or the address at which service of notices may be effected in the manner authorised by these Articles is located (but so that such advertisements need not refer to the names of the holder(s) of the share or identify the share in question); and |
| 51.3. | the Company has not during the further period of three months after the publication of the advertisements and prior to the exercise of the power of sale received any communication from the member or person entitled by transmission; and |
| 51.4. | if the shares are listed or dealt in on AIM or the Stock Exchange, the Company has given notice in writing to AIM or the Stock Exchange of its intention to sell such shares. |
| 52. | If during any twelve year period or three month period referred to in Article 51.1 and 51.3 of the preceding Article further shares have been issued in respect of those held at the beginning of such twelve year period or of any previously issued during such periods and all the other requirements of such Article have been satisfied in respect of the further shares, the Company may also sell the further shares. |
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| 53. | To give effect to any sale pursuant to the previous Articles the Directors may authorise any person to execute as transferor an instrument of transfer of the said share and such instrument of transfer shall be as effective as if it had been executed by the registered holder of or person entitled by transmission to such share. The transferee shall not be bound to see to the application of the purchase monies and the title of the transferee shall not be affected by any irregularity or invalidity in the proceedings relating thereto. The net proceeds of sale shall belong to the Company which shall be obliged to account to the former member or other person previously entitled as aforesaid for an amount equal to such proceeds and shall enter the name of such former member or other person in the books of the Company as a creditor for such amount. No trust shall be created in respect of the debt, no interest shall be payable in respect of the same and the Company shall not be required to account for any money earned on the net proceeds, which may be employed in the business of the Company or invested in such investments (other than shares of the Company or its holding company (if any)) as the Directors may from time to time think fit. |
| 54. | If on two consecutive occasions cheques, warrants or orders in payment of dividends or other monies payable in respect of any share have been sent through the post or otherwise in accordance with the provisions of these Articles but have been returned undelivered or left uncashed during the periods for which the same are valid or any transfer by bank or other funds transfer system has not been satisfied, the Company need not thereafter despatch further cheques, warrants or orders and need not thereafter transfer any sum (as the case may be) in payment of dividends or other monies payable in respect of the share in question until the member or other person entitled thereto shall have communicated with the Company and supplied in writing to the Office an address for the purpose. |
ALTERATION OF SHARE CAPITAL
| 55. | Subject to any direction given to the Directors by the Company in general meeting, whenever as the result of any consolidation or sub-division of shares members of the Company are entitled to any issued shares of the Company in fractions, the Directors may deal with such fractions as they shall determine and in particular may sell the shares to which members are so entitled in fractions to any person (including, subject to the provisions of the Statutes, the Company) and pay and distribute to and amongst the members entitled to such shares in due proportions the net proceeds of the sale or where the net proceeds in respect of any holding do not exceed £3.00 such proceeds may be paid to the Company. For the purpose of giving effect to any such sale the Directors may nominate some person to execute a transfer in respect of the shares sold in favour of the purchaser and may cause the name of the purchaser to be entered in the Register as the holder of the shares comprised in any such transfer and the purchaser shall not be bound to see to the application of the purchase money nor shall his title to the shares be affected by any irregularity or invalidity in the proceedings in reference to the sale. |
| 56. | Subject to the provisions of the Statutes the Company may from time to time by special resolution reduce its share capital, any capital redemption reserve fund and any share premium account in any manner authorised by law. |
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WARRANTS OR OPTIONS TO SUBSCRIBE FOR SHARES
| 57. | The Company may, subject to the provisions of the Act and of these Articles, issue warrants or grant options to subscribe for shares in the Company. Such warrants or options shall be issued on such terms and subject to such conditions as may be resolved upon by the Board including, without prejudice to the generality of the foregoing, terms and conditions which provide that, on a winding up of the Company, a holder of warrants or grantee of options may be entitled to receive, out of the assets of the Company available in the liquidation pari passu with the holders of shares of the same class as the shares in respect of which the subscription rights conferred by the warrants or the options can be exercised, such sum as he would have received had he exercised the subscription rights conferred by his warrants or options prior to the winding up but after deduction of the price (if any) payable on exercise of such subscription rights. |
GENERAL MEETINGS
| 58. | The Directors and the Company shall hold general meetings as annual general meetings in accordance with the requirements of the Statutes, at such time and place as may be determined by the Directors, including partly (but not wholly) by means of electronic facility or facilities, as may be determined by the Board. |
| 59. | The Directors may: |
| 59.1. | Convene a general meeting of the Company whenever they think fit and general meetings shall also be convened on such requisition, or in default may be convened by such requisitionists, as provided by the Act. |
| 59.2. | Any meeting convened under this Article by requisitionists shall be convened in the same manner as nearly as possible as that in which meetings are to be convened by the Directors. |
| 59.3. | The Board may make whatever arrangements it considers fit to allow those entitled to do so to attend and participate in any general meeting. |
| 59.4. | The Board shall determine in relation to each general meeting the means of attendance at and participation in the meeting, including whether the persons entitled to attend and participate in the meeting shall be enabled to do so (but not wholly): |
| 59.4.1. | by means of electronic facility or facilities (and for the avoidance of doubt the Board shall be under no obligation to offer or provide such facility or facilities, whatever the circumstances); and/or |
| 59.4.2. | by simultaneous attendance and participation by means of electronic facility or facilities at a satellite meeting place; |
| 59.4.3. | to participate in the business for which the meeting has been convened; |
| 59.4.4. | to hear all persons who speak (whether by the use of microphones, loudspeakers, audio-visual communications equipment or otherwise) in the principal meeting place and any satellite meeting place; and |
| 59.4.5. | to be heard by all other persons so present in the same way, and the meeting shall be deemed to take place at the place where the chairman of the meeting presides (the principal meeting place, with any other location where that meeting takes place being referred in these Articles as a satellite meeting). The chair shall be present at, and the meeting shall be deemed to take place at, the principal meeting place and the powers of the chair shall apply equally to each satellite meeting place, including their power to adjourn the meeting as referred to in Article 72. |
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NOTICE OF GENERAL MEETINGS
| 60. | Subject to the requirements set out in the Act, any notice of general meeting may be given by the Company: |
| 60.1. | in hard copy form; |
| 60.2. | in electronic form; or |
| 60.3. | by means of a website, |
or partly by one of these means and partly by another of these means. Notices of general meeting shall be given in accordance with these articles.
| 61. | An annual general meeting shall be called by not less than 21 days’ notice in writing; all other general meetings shall be called by not less than 14 days’ notice in writing. The notice shall be exclusive of the day on which it is served or deemed to be served and of the day for which it is given and shall specify the place, the day and hour of meeting and, in case of special business, the general nature of such business. The notice shall be given to all the members, other than those members who, under the provisions of these Articles or the terms of issue of the shares they hold, are not entitled to receive notice of the meeting, and to the Directors and to the Auditors. A notice calling an annual general meeting shall specify the meeting as such and the notice convening a meeting to pass a special resolution shall specify the intention to propose the resolution as such. |
| 62. | A general meeting shall, notwithstanding that it is called by shorter notice than that specified in the last preceding Article, be deemed to have been duly called if consent to short notice is given in accordance with the Statutes. |
| 63. | In every notice calling a meeting of the Company or any class of the members of the Company there shall appear with reasonable prominence a statement that a member entitled to attend and vote is entitled to appoint one or more proxies to attend and, on a poll, to vote instead of him, and that a proxy need not also be a member. |
| 64. | The accidental omission to send notice of or any other document relating to a meeting to, or the non-receipt of any such notice or other document by, any person entitled to receive the same shall not invalidate the proceedings at any general meeting. |
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PROCEEDINGS AT GENERAL MEETINGS
| 65. | If, at any general meeting at which members are entitled to participate by means of electronic facility or facilities determined by the Board pursuant to Article 59, any document is required to be on display or to be available for inspection at the meeting (whether prior to or for the duration of the meeting or both), the Company shall ensure that it is available in electronic form to persons entitled to inspect it for at least the required period of time, and this will be deemed to satisfy any such requirement. |
| 66. | All business shall be deemed special that is transacted at a general meeting other than an annual general meeting and also all business transacted at an annual general meeting with the exception of receiving and considering the annual accounts and the reports of the Directors and of the Auditors thereon, the appointment of Directors in the place of those retiring, the declaration of a dividend and the appointment of the Auditors (when special notice of the resolution for such appointment is not required by the Act) and fix, or determine the manner of the fixing of, their remuneration. |
| 67. | Where by any provision contained in the Act special notice is required of a resolution, that resolution shall not be effective unless notice of the intention to move it has been given to the Company not less than 28 days (or such shorter period as the Act permits) before the meeting at which it is moved, and the Company shall give to its members, subject as provided in these Articles, notice of any such resolution as provided by the Act. |
| 68. | Save as otherwise provided in these Articles the quorum for a general meeting shall be two members present in person or by proxy and entitled to vote on the business to be transacted. |
| 69. | No business shall be transacted at any general meeting unless the requisite quorum shall be present when the meeting proceeds to business and throughout the duration of the meeting. The appointment of a chairman in accordance with the provisions of these Articles shall not be treated as part of the business of the meeting. |
| 70. | If within ten minutes (or such longer period as the chairman may decide) from the time appointed for the meeting a quorum is not present, then the meeting, if convened by or upon the requisition of members, shall be dissolved. In any other case it shall stand adjourned to such time (being not less than 14 days nor more than 28 days from then) and place or places, with such means of attendance and participation (including partly but not wholly by means of electronic facility or facilities), as the chairman (or, in default, the Board) shall appoint. At any such adjourned meeting the member or members present in person or by proxy and entitled ta vote shall constitute a quorum and have power to decide upon all matters which could properly have been disposed of at the meeting from which the adjournment took place. The Company shall give not less than 7 clear days’ notice of any meeting adjourned for the want of a quorum and the notice shall state that the member or members present as aforesaid shall form a quorum. |
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| 71. | The chairman (if any) of the Board shall preside as chairman at every general meeting of the Company. If there is no chairman of the Board, or if he is not present at any meeting within 15 minutes after the time appointed for holding the meeting, or if he is unwilling to act, the Directors present shall select one of their number to be chairman. If no board member is expected to attend the meeting the Board may appoint the Secretary in advance of the general meeting or the annual general meeting to be the chairman and, failing that, the members present and entitled to vote shall choose one of their number to be chairman. |
| 72. | The chairman may, with the consent of any meeting at which a quorum is present (and shall, if so directed by the meeting), adjourn the meeting from time to time and from place to place. No business shall be transacted at any adjourned meeting other than the business left unfinished at the meeting from which the adjournment took place. |
| 73. | Whenever a meeting is adjourned for 28 days or more, at least 7 clear days’ notice in writing specifying the place, the day and hour of the adjourned meeting shall be given to the members, the Directors and the Auditors but it shall not be necessary to specify in such notice the nature of the business to be transacted at the adjourned meeting. Save as aforesaid it shall not be necessary to give any notice of an adjournment. |
| 74. | If an amendment shall be proposed to any resolution under consideration but shall in good faith be ruled out of order by the chairman of the meeting the proceedings on the substantive resolution shall not be invalidated by any error in such ruling. In the case of a resolution duly proposed as a special resolution no amendment thereto (other than an amendment to correct a patent error) may in any event be considered or voted upon. |
| 75. | At any general meeting a resolution put to the vote of the meeting shall be decided by a show of hands unless (before, or upon the declaration of the result of, the show of hands) a poll is demanded: |
| 75.1. | by the chairman; or |
| 75.2. | by not less than two members present in person or by proxy and entitled to vote; or |
| 75.3. | by a member or members present in person or by proxy representing not less than one-tenth of the total voting rights of all the members having the right to vote at the meeting; or |
| 75.4. | by a member or members present in person or by proxy holding shares conferring a right to vote at the meeting, being shares on which an aggregate sum has been paid up equal to not less than one-tenth of the total sum paid up on all the shares conferring that right. Unless a poll is demanded, a declaration by the chairman that the resolution has been carried or carried by a particular majority or lost or not carried by a particular majority and an entry to that effect in the book containing the minutes of proceedings of the Company, shall be conclusive evidence of the fact without proof of the number or proportion of the votes recorded in favour of or against such resolution. |
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| 76. | A valid instrument appointing a proxy shall be deemed to confer authority to demand or join in demanding a poll and for the purposes of the immediately preceding Article a demand by a proxy or a member or other person entitled to vote shall be deemed to be a demand by that member or other person. |
| 77. | If a poll is demanded as aforesaid it shall be taken in such manner and at such time and place as the chairman of the meeting directs, and either at once, or after an interval or adjournment (but not more than 30 days after the date of the meeting or adjourned meeting at which the poll was demanded), and the result of the poll shall be deemed to be the resolution of the meeting at which the poll was demanded. The demand for a poll may be withdrawn. No notice need be given of a poll not taken immediately if the time and place at which it is to be taken are announced at the meeting at which it is demanded. In any other case at least 7 clear days’ notice shall be given specifying the time and place at which the poll is to be taken. |
| 78. | Any poll duly demanded with regard to the election of a chairman of a meeting at which such poll is demanded or on any question of adjournment shall be taken at the meeting and without adjournment. |
| 79. | A demand for a poll shall not prevent the continuation of a meeting for the transaction of any business other than the question on which a poll has been demanded. |
VOTING
| 80. | Subject to the provisions of the Act and to any special rights or restrictions as to voting attached to any shares or class of shares or otherwise provided by these articles, upon a show of hands every member who (being an individual) is present in person or (being a corporation) is present by a duly authorised representative and in each case is entitled to vote shall have one vote and every proxy present who has been duly appointed by a member shall have one vote and upon a poll every member present in person or by proxy and entitled to vote shall have one vote for every share held by him. Any resolution put to a vote at a general meeting which is held partly by electronic facilities, shall be decided by a poll. A member who is a patient within the meaning of the Mental Health Act 1983 may vote, whether on a show of hands or on a poll, by his receiver, curator bonis or other person authorised in that behalf appointed by the Court and such receiver, curator bonis or other person may, on a poll, vote by proxy. |
| 81. | If two or more persons are jointly entitled to shares for the time being conferring a right to vote, any one of such persons may vote at any meeting, either personally or by proxy, in respect thereof as if he were solely entitled thereto, and if more than one of such joint holders be present at any meeting, either personally or by proxy, the member whose name stands first on the Register as one of the holders of such shares, and no other, shall be entitled to vote in respect of the same. |
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| 82. | No member shall, unless the Directors otherwise determine, be entitled to be present or to vote on any question, either in person or by proxy, at any general meeting of the Company or upon any poll, or to be reckoned in any quorum or to exercise any other right or privilege conferred by membership in relation to general meetings of the Company or of the holder of any class of shares in the Company in respect of any shares held by him if any calls or other moneys due and payable by him to the Company in respect of those shares remain unpaid. |
| 83. | Votes may be given either personally or by proxy. A proxy need not be a member of the Company and a member may appoint one or more than one person to act as his proxy provided that each proxy is appointed to exercise the rights attached to a different share or shares held by the member. The appointment of a proxy shall not preclude a member from attending and voting in person on a show of hands or on a poll on any matter in respect of which the proxy or proxies is or are appointed. If and to the extent that a member personally votes his shares, his proxy or proxies shall not be entitled to vote and any vote cast by a proxy in such circumstances shall be ignored. If a member appoints more than one person to act as his proxy the appointment of each such proxy shall specify the shares held by the member in respect of which each such proxy is to vote and no member may appoint more than one proxy (save in the alternate) to vote in respect of any one share held by that member. The appointment of a proxy shall, subject to the provisions of the Statutes, be deemed to confer authority to demand or join in demanding a poll and to speak at any meeting and to vote (whether on a show of hands or on a poll) on any resolution or amendment of a resolution put to the meeting for which it is given. |
| 84. | The appointment of a proxy and the power of attorney or other authority, if any, under which it is signed, or a notarially certified copy thereof, shall be deposited or delivered at such place as may be specified for that purpose for the purpose of receiving electronic communications in the notice convening the meeting or in the appointment of proxy or if no place is so specified at the Office at least 48 hours (excluding any part of a day which is not a working day) before the time appointed for holding the meeting or adjourned meeting at which the person named in such appointment proposes to vote or, in the case of a poll taken more than 48 hours (excluding any part of a day which is not a working day) after it is demanded, be deposited or delivered as aforesaid after the poll has been demanded and not less than 24 hours (excluding any part of a day which is not a working day) before the time appointed for the taking of the poll or in the case of a poll not taken forthwith but taken not more than 48 hours (excluding any part of a day which is not a working day) after it was demanded, be delivered at the meeting at which the poll was demanded to the Chairman of the meeting or to any Director; otherwise the person so named shall not be entitled to vote in respect thereof. The appointment of a proxy shall, unless the contrary is stated thereon, be valid as well for any adjournment of the meeting as for the meeting to which it relates and for any poll arising from any such meeting or adjourned meeting. The valid appointment of a proxy or proxies relating to more than one meeting (including any adjournment thereof), having once been delivered to the Company for the purposes of any meeting shall not have to be re-lodged or otherwise re-registered with the Company for the purposes of any subsequent meeting to which it relates. The appointment of a proxy shall, subject to the provisions of the Statutes, be in writing and if it is: |
| (a) | not in an electronic form, it must be executed by the appointor, or on his behalf by his attorney duly authorised in writing, or if such appointor is a corporation under its common seal or executed on its behalf by an officer or attorney duly authorised in that behalf (and the Directors may, but shall not be bound to, require evidence of authority of such officer or attorney); |
| (b) | in electronic form, it must be submitted by or on behalf of the appointer and authenticated. |
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| 85. | |
| 85.1. | The Board may allow a proxy for a holder of any shares in uncertificated form to be appointed by electronic means or by means of a website in the form of an uncertificated proxy instruction. The Board may also allow any supplement to the uncertificated proxy instruction or any amendment or revocation of any uncertificated proxy instruction to be made by a further uncertificated proxy instruction. |
| 85.2. | The Board may decide what method should be used to determine at what time the instruction or notification is treated as being received by the Company. The Board may treat any notification purporting or expressed to be sent on behalf of a holder of a share in uncertificated form as sufficient evidence of the authority of the person sending the instruction to send it on behalf of that holder. |
| 85.3. | For the purposes of this Article 85, an uncertificated proxy instruction is a properly authenticated dematerialised instruction and/or other instruction or notification, sent through a relevant system to a participant in that system chosen by the Board to act for the Company. The uncertificated proxy instruction may be in any form and subject to any terms and conditions that the Board deems appropriate, but always subject to the facilities and requirements of the relevant system. |
| 86. | A vote given in accordance with the terms of an instrument of proxy shall be valid notwithstanding the previous death or incapacity of the principal or revocation of the instrument of proxy or the authority under which it was executed or transfer of the share in respect of which the vote is given, provided no intimation in writing of the death, or incapacity, revocation or transfer shall have been received at the Office or such other place as is specified for depositing the instrument of proxy before the time for holding the meeting or adjourned meeting or the holding of a poll subsequently thereto at which such vote is given. |
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| 87. | Subject to the provisions of the Statutes, a resolution in writing signed by all the members for the time being entitled to receive notice of and to attend and vote at general meetings (or being corporations by their duly authorised representatives) shall be as valid and effective as if the same had been passed at a general meeting of the Company duly convened and held, and may consist of two or more documents in like form each signed by one or more of the members. |
CORPORATIONS ACTING BY REPRESENTATIVES AT MEETINGS
| 88. | Any corporation which is a member of the Company may by a resolution of its directors or other governing body authorise such person as it thinks fit to act as its representative at any meeting of the Company or of any class of members of the Company, and the person so authorised shall be entitled to exercise the same powers on behalf of the corporation which he represents as that corporation could exercise if it were an individual member of the Company and such corporation shall for the purposes of these Articles be deemed to be present in person at any such meeting if a person so authorised is present thereat. |
DISCLOSURE OF INTERESTS IN SHARES
| 89. | The following provisions of this Article shall apply in relation to the disclosure of interests in shares: |
| 89.1. | For the purposes of these articles, unless the context otherwise requires: |
| (a) | “Disclosure Notice” means a notice issued by or on behalf of the Company requiring information about interests in its shares pursuant to section 793 of the 2006 Act; |
| (b) | “Specified Shares” means all or, as the case may be, some of the shares specified in a Disclosure Notice; |
| (c) | “Restrictions” means one or more, as determined by the Directors, of the following: |
| (i) | that the member holding the Specified Shares shall not be entitled, in respect of those shares, to attend or be counted in the quorum or vote either personally or by proxy at any general meeting or at any separate meeting of the holders of any class of shares or upon any poll or to exercise any other right or privilege in relation to any general meeting or any meeting of the holders of any class of shares; |
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| (ii) | that, unless effected pursuant to article 89.3(c), no transfer of the Specified Shares in certificated form shall be effective or shall be registered by the Company; |
| (iii) | that no dividend or other money payable shall be paid in respect of the Specified Shares and that, in circumstances where an offer of the right to elect to receive shares instead of cash in respect of any dividend is or has been made, any election made under that offer in respect of such Specified Shares shall not be effective, |
provided that only the restriction referred to in sub-paragraph (i) may be determined by the Directors to apply if the Specified Shares represent less than 0.25% of the relevant class at the time of issue of the Disclosure Notice;
| (d) | “Restriction Notice” means a notice issued by or on behalf of the Company stating, or substantially to the effect, that the Specified Shares referred to in that notice shall be subject to one or more of the Restrictions stated in that notice; |
| (e) | a person other than the member holding a share shall be treated as appearing to be interested (as that word is construed for the purposes of Part 22 of the Act) in that share if: |
| (i) | the member has informed the Company, whether under any statutory or regulatory provision relating to disclosure of interests or otherwise, that the person is, or may be, or has been at any time during the three years immediately preceding the date upon which the Disclosure Notice is issued, so interested; |
| (ii) | the Directors (after taking account of any information obtained from the member or, pursuant to a Disclosure Notice, from any other person) know or have reasonable cause to believe that the person is, or may be, or has been at any time during the three years immediately preceding the date upon which the Disclosure Notice is issued, so interested; or |
| (iii) | in response to a Disclosure Notice, the member or any other person appearing to be so interested has failed to establish the identities of all those who are so interested and (after taking into account the response and any other relevant information) the Company has reasonable cause to believe that such person is or may be so interested; and |
| (f) | the Company shall not be treated as having received the information required by a Disclosure Notice in accordance with the terms of such Disclosure Notice in circumstances where the Directors know or have reasonable cause to believe that the information provided is false or materially incorrect. |
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| 89.2. | Notwithstanding anything in these articles to the contrary, if: |
| (a) | a Disclosure notice has been sent or supplied to a member or any other person appearing to be interested in Specified Shares; and |
| (b) | the Company has not received (in accordance with the terms of such Disclosure Notice) the information required in the notice in respect of any of the Specified Shares within fourteen days after such Disclosure Notice was sent or supplied, |
then the Directors may determine that the member holding the Specified Shares shall, upon the issue of a Restriction Notice referring to those Specified Shares in respect of which information has not been received, be subject to the Restrictions referred to in such Restriction Notice, and upon the issue of such Restriction Notice such member shall be so subject. As soon as practicable after the issue of a Restriction Notice the Company shall serve a copy of the notice on the member holding the Specified Shares but the accidental omission to do so, or the non-receipt by the member of the copy, shall not invalidate or otherwise affect the application of this article.
| 89.3. | The Restrictions on shares shall cease to apply: |
| (a) | either in whole or in part at any time the Directors may determine; |
| (b) | upon the Company receiving in accordance with the terms of the relevant Disclosure Notice the information required in that Disclosure Notice in respect of those shares; or |
| (c) | if the Company receives an executed instrument of transfer (or a transfer of uncertificated shares is effected under the relevant system) in respect of those shares, which would otherwise be given effect to, pursuant to a party not connected (within the meaning given in section 839 of the Income and Corporation Taxes Act 1988) with the member holding such shares or with any other person appearing to be interested in such shares where such sale is: |
| (i) | on a recognised investment exchange (within the meaning given in section 285 of the Financial Services and Markets Act 2000); |
| (ii) | on any stock exchange outside the United Kingdom on which the Company’s shares are normally dealt; or |
| (iii) | on acceptance of an offer made to all holders (or all the holders other than the person making the offer or his nominees) of the shares of the class of which the shares subject to the Restrictions form part to acquire those shares or a specified portion of them. |
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| 89.4. | Subject to the requirements of AIM and the London Stock Exchange, notwithstanding sub-paragraph (c) of article 89.3 the Restrictions on shares shall continue to apply if within ten days of receipt of the instrument of transfer the Directors decide that they have reasonable cause to believe that the change in the registered holder of those shares would not be as a result of an arm’s length sale resulting in a material change in the beneficial interests in those shares. Where the Directors make a decision pursuant to this article 88.4, the Company shall notify the purported transferee of the decision as soon as practicable and any person may make representations in writing to the Directors concerning the decision. The Company shall not be liable to any person as a result of having imposed Restrictions or deciding that such Restrictions shall continue to apply if the Directors acted in good faith. |
| 89.5. | Where dividends or other moneys are not paid as a result of Restrictions having been imposed on shares, such dividends or other moneys shall accrue and, upon the relevant restriction ceasing to apply, shall be payable (without interest) to the person who would have been entitled had the restriction not been imposed. |
| 89.6. | Shares which the Company offers or procures to be offered pro rata (or pro rata ignoring fractional entitlements and ignoring shares not offered to certain members by reason of legal or practical problems associated with offering shares outside the United Kingdom) to holders of shares which are subject to Restrictions shall on issue become subject to the same Restrictions. |
| 89.7. | The Directors shall at all times have the right, at their discretion, to suspend, in whole or in part, any Restriction Notice either permanently or for any given period and to pay to a trustee any dividend payable in respect of any shares subject to Restrictions or in respect of any shares issued in right of shares subject to Restrictions. Notice of any suspension, specifying the sanctions suspended and the period of suspension, shall be given to the relevant holder in writing within seven days after any decision to implement such a suspension. |
| 89.8. | The limitations on the powers of the Directors to impose and retain Restrictions are without prejudice to the Company’s power to apply to the court pursuant to the Statutes to apply the Restrictions or any other restrictions on any conditions. |
DIRECTORS
| 90. | Unless and until otherwise determined by the Company in general meeting the number of Directors shall be not less than two and until so fixed there shall be no maximum number of Directors. |
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| 91. | The Directors shall be paid out of the funds of the Company by way of fees for their services as Directors such sums (if any) as the Directors may from time to time determine. The Directors (other than Alternate Directors) shall be entitled to receive by way of fees for their services as Directors such sum as the Board may from time to time determine (not exceeding £500,000 per annum in aggregate or such other sum as the Company in general meeting shall from time to time determine). Such sum (unless otherwise directed by the resolution of the Company) shall be divided amongst the directors in such proportion and in such manner that the Board may determine or in default of such termination, equally. Any such fees payable pursuant to this article exclude any payment for salary, remuneration, bonuses or other amounts payable in relation to other services provided to the Company and payable to a director pursuant to any other provisions of these Articles shall accrue from day to day. |
| 92. | The Directors shall also be entitled to be repaid all reasonable travelling, hotel and other expenses incurred by them respectively in or about the performance of their duties as Directors including any expenses incurred in attending meetings of the Board or of committees of the Board or general meetings and if in the opinion of the Directors it is desirable that any of their number should make any special journeys or perform any special services on behalf of the Company or its business, such Director or Directors may be paid such reasonable additional remuneration and expenses therefor as the Directors may from time to time determine. |
| 93. | A Director shall not require a share qualification. A Director who is not a member of the Company shall be entitled to receive notice of and attend and speak at all general meetings of the Company and at all separate general meetings of the holders of any class of shares in the capital of the Company. |
ALTERNATE DIRECTORS
| 94. | Any Director may by written notice to the Board appoint any other Director, or any other person who is approved by the Board as hereinafter provided, to be his alternate and every such alternate shall (subject to his giving to the Company an address within the United Kingdom at which notices may be served on him) be entitled to receive notices of all meetings of the Board and of any committee of the Board of which his appointor is a member and, in the absence of his appointor from meetings of the Board or any such committee to attend and vote at such meetings and to exercise all the powers, rights, duties and authorities of his appointor provided always that no appointment of a person other than a Director shall be operative unless and until such appointment shall have been approved by a majority of the Directors. |
| 95. | A Director may at any time revoke the appointment of an alternate appointed by him and, subject to such approval as may be required, appoint another person in his place. If a Director shall die or cease to hold the office of Director, otherwise than by retiring and being re-elected at the same meeting at which he retires, the appointment of his alternate shall thereupon cease and determine. An alternate Director need not hold a share qualification and shall not be counted in reckoning the maximum or minimum number of Directors allowed by these Articles for the time being. A Director or any other person may act as alternate Director to represent more than one Director. A Director acting as alternate shall, in addition to his own vote (if any), have an additional vote at meetings of the Board or any committee thereof for each Director for whom he acts as alternate but he shall count as only one for the purpose of determining whether a quorum is present. |
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| 96. | Every person acting as an alternate Director shall, whilst so acting, be an officer of the Company and shall alone be responsible to the Company for his own acts and defaults and he shall not be deemed to be the agent of or for the Director appointing him. The remuneration (if any) of any such alternate Director shall be payable by the Director appointing him and shall be agreed between the alternate Director and his appointer. |
EXECUTIVE DIRECTORS
| 97. | Subject to the provisions of the Act the Directors may from time to time appoint one or more of their body to be a managing director or joint managing directors of the Company or as an executive director, to hold such other executive office in relation to the management of the business of the Company as they may decide and upon such terms and for such period as they may determine and, without prejudice to the terms of any service agreement entered into in any particular case, may at any time revoke any such appointment and appoint another or others in his or their place or places. |
| 98. | The salary or remuneration of any managing director or executive director of the Company shall, subject as provided in any service agreement, be such as the Directors may from time to time determine and may either be a fixed sum of money, or may be determined in whole or in part by reference to the business done or profits made, or may include the making of provisions for the payment to him, his widow or other dependants, of a pension on retirement from the office or employment to which he is appointed and for the participation in pension and life assurance benefits, or may be upon such other terms as the Directors determine. |
| 99. | The Directors may from time to time entrust to and confer upon a managing director or executive director for the time being such of the powers exercisable under these Articles by the Directors (other than power to make calls or forfeit shares) as they may think fit and may confer such powers for such time, and to be exercised for such objects and purposes, and upon such terms and conditions, and with such restrictions as they may think expedient; and they may confer such powers either collaterally with or to the exclusion of and in substitution for all or any of the powers of the Directors in that connection and may from time to time revoke, withdraw, alter or vary all or any of such powers. |
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POWERS AND DUTIES OF DIRECTORS
| 100. | The business of the Company shall be managed by the Directors who in addition to the powers and authorities expressly conferred upon them, by these Articles or otherwise, may exercise all such powers and do all such acts and things as may be exercised or done by the Company, and as are not by the Statutes or by these Articles required to be exercised or done by the Company in general meeting, subject nevertheless to such directions as may be given by the Company in general meeting provided that no direction given by the Company in general meeting shall invalidate any prior act of the Directors which would have been valid if such direction had not been given, and the provisions contained in these Articles as to any specific power of the Directors shall not be deemed to abridge or restrict the general powers hereby given. |
| 101. | The Directors may exercise all the powers of the Company to give or award pensions, annuities, gratuities and superannuation or other allowances or benefits to any persons who are or have at any time been Directors of or employed by or in the service of the Company or of any company which is a subsidiary company of or allied or associated with the Company or any such subsidiary and to the wives, widows, children and other relatives and dependants of any such persons and may establish, maintain, support, subscribe to and contribute to all kinds of schemes, trusts and funds for the benefit of such persons or any of them or any class of them, and so that any Director shall be entitled to receive and retain for his own benefit any such pension, annuity, gratuity, allowance or other benefit (whether under any such fund or scheme or otherwise) and may vote as a Director in respect of the exercise of any of the powers by this Article conferred upon the Directors, notwithstanding that he is or may be or become interested therein. |
| 102. | The Directors may establish, maintain and give effect to any scheme approved by an ordinary resolution for the allotment of or the grant of options to subscribe for shares of the Company to persons (including Directors) in the employment of the Company or any subsidiary of the Company and may exercise all the powers conferred on them by the scheme (including any power to alter or add to its provisions). These Articles shall be deemed to be modified so far as may be necessary to give effect to the scheme in respect of any shares in issue or under option. The Directors may procure that any of the matters referred to in this Article are done by the Company either alone or in conjunction with any other company. |
| 103. | The Directors may from time to time and at any time by power of attorney appoint any company, firm or person or body of persons, whether nominated directly or indirectly by the Directors, to be the attorney or attorneys of the Company for such purposes and with such powers, authorities, and discretions (not exceeding those vested in or exercisable by the Directors under these Articles) and for such period and subject to such conditions as they may think fit and any such powers of attorney may contain such provisions for the protection and convenience of persons dealing with any such attorney as the Directors may think fit and may also authorise any such attorney to sub-delegate all or any of the powers, authorities and discretions vested in him. |
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| 104. | The Company may exercise the powers conferred upon the Company by the Act with regard to the keeping of an overseas branch register and the Directors may (subject to the provisions of the Act) make and vary such regulations as they may think fit respecting the keeping of any such register and shall give to the Registrar of Companies notice in the prescribed form of the situation of the office where any overseas branch register is kept. |
| 105. | Without prejudice to the provisions of these Articles, the Directors shall have the power to purchase and maintain insurance for or for the benefit of any persons who are or were at any time directors, officers or employees of the Company, or of any other company which is its holding company or subsidiary or in which the Company or any such holding company or subsidiary or any of the predecessors of the Company or of any such holding company or subsidiary has any interest, whether direct or indirect, or of any other body (whether or not incorporated) in which the Company or any such other company has an interest, or who are or were at any time trustees of any pension fund in which employees of the Company or any such other company or body are interested, including (without prejudice to the generality of the foregoing) insurance against any liability incurred by such persons in respect of any act or omission in the actual or purported execution and/or discharge of their duties and/or the exercise or purported exercise of their powers and/or otherwise in relation to or in connection with their duties, powers or offices in relation to the Company or any such other company, body or pension fund. |
| 106. |
| 106.1. | Subject to the provisions of the Statutes a Director may hold any office or place of profit under the Company in conjunction with the office of Director for such period, and on such terms as to remuneration and otherwise, as the Directors may determine, and a Director or any firm in which he is interested may act in a professional capacity for the Company and he or such firm shall be entitled to remuneration for professional services as if he were not a Director provided that a Director or any such firm shall not act as auditor to the Company. |
| 106.2. | Subject to the provisions of the Statutes no Director shall be disqualified by his office from contracting with the Company (whether with regard to any such office or place of profit or acting in a professional capacity or as vendor, purchaser or otherwise howsoever) and may be interested in dealings of any nature whatsoever with the Company. No contract, arrangement, or dealing shall be liable to be avoided, nor shall any Director so contracting, dealing or being so interested be liable to account to the Company for any profit arising out of any such contract, arrangement, or dealing to which he is a party or in which he is interested by reason of his being a Director. |
| 106.3. | A Director may hold office as a director or other officer of or be otherwise interested in any other company of which the Company is a member or in which the Company is otherwise interested and unless otherwise agreed shall not be liable to account to the Company for any remuneration or other benefits receivable by him as a director or officer of, or by virtue of his interest in, such other company. |
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| 106.4. | Without prejudice to the requirements of the Statutes, a Director, including an alternate Director, who is in any way whether directly or indirectly, interested in a contract or proposed contract with the Company shall declare the nature of his interest at a meeting of the Board. In the case of a proposed contract the declaration shall be made at the meeting of the Board at which the question of entering into the contract is first taken into consideration or, if the Director was not at the date of that meeting interested in the proposed contract, at the next meeting of the Board held after he became so interested. In a case where the Director becomes interested in a contract after it is made the declaration shall be made at the first meeting of the Board held after the Director becomes so interested. In a case where the Director is interested in a contract which has been made before he was appointed a Director the declaration shall be made at the first meeting of the Board held after he is so appointed. For the purposes of this Article a general notice given to the Board by a Director to the effect that he is a member of any specified company or firm and is to be regarded as interested in any contract which may, after the date of the notice be made with that company or firm, or he is to be regarded as interested in any contract which may after the date of the notice be made with a specified person who is connected with him (within the meaning of Section 252 of the Act) shall (if such Director shall give the same at a meeting of the Board or shall take reasonable steps to secure that it is brought up and read at the next meeting of the Board after it is given) be deemed a sufficient declaration of interest in relation to any contract so made. In this Article the expression “contract” shall be construed as including any transaction or arrangement, whether or not constituting a contract. |
| 107. |
| 107.1. | The Board of Directors may, subject to the quorum and voting requirements set out in this Article, authorise any matter which would otherwise involve a Director breaching his duty under the Act to avoid conflicts of interest (“Conflict”). |
| 107.2. | A Director seeking authorisation in respect of a Conflict shall declare to the Board of Directors the nature and extent of his interest in a Conflict as soon as is reasonably practicable. The Director shall provide the Board of Directors with such details of the relevant matter as are necessary for the Board of Directors to decide how to address the Conflict together with such additional information as may be requested by the Board of Directors. |
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| 107.3. | Any Director (including the relevant Director) may propose that the relevant Director be authorised in relation to any matter the subject of a Conflict. Such proposal and any authority given by the Board of Directors shall be effected in the same way that any other matter may be proposed to and resolved upon by the Board of Directors under the provisions of these Articles save that |
| (a) | the relevant Director and any other Director with a similar interest shall not count towards the quorum nor vote on any resolution giving such authority, and |
| (b) | the relevant Director and any other Director with a similar interest may, if the Directors so decide, be excluded from any Board meeting while the Conflict is under consideration. |
| 107.4. | Where the Board of Directors gives authority in relation to a Conflict |
| (a) | the Board of Directors may (whether at the time of giving the authority or subsequently) (a) require that the relevant Director is excluded from the receipt of information, the participation in discussion and/or the making of decisions (whether at meetings of the Board of Directors or otherwise) relating to the Conflict, and (b) impose upon the relevant Director such other terms for the purpose of dealing with the Conflict as it may determine, |
| (b) | the relevant Director will be obliged to conduct himself in accordance with any terms imposed by the Board of Directors in relation to the Conflict, |
| (c) | the Board of Directors may provide that where the relevant Director obtains (otherwise than through his position as a Director of the Company) information that is confidential to a third party, the Director will not be obliged to disclose that information to the Company, or to use or apply the information in relation to the Company’s affairs, where to do so would amount to a breach of that confidence, |
| (d) | the terms of the authority shall be recorded in writing (but the authority shall be effective whether or not the terms are so recorded), and |
| (e) | the Board of Directors may revoke or vary such authority at any time but this will not affect anything done by the relevant Director prior to such revocation in accordance with the terms of such authority. |
| 108. | A Director shall (in the absence of some other material interest than is indicated below) be entitled to be counted in the quorum and to vote in respect of any resolution concerning any of the following matters namely: |
| 108.1. | the giving of any guarantee, security or indemnity to him in respect of money lent by or obligations incurred by him or by any other person at the request of or for the benefit of the Company or any of its subsidiary undertakings insofar as the Act permits; or |
| 108.2. | the giving of any guarantee, security or indemnity to a third party in respect of a debt or obligation of the Company or any of its subsidiary undertakings for which he himself has assumed responsibility in whole or in part under a guarantee or indemnity or by the giving of security; or |
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| 108.3. | any proposal concerning an offer of shares or debentures or other securities (including options and warrants) of or by the Company or any of its subsidiary undertakings for subscription or purchase in which offer he is or may be entitled to participate as a holder of securities or in the underwriting or sub-underwriting thereof, or |
| 108.4. | any contract, arrangement, transaction or other proposal concerning any other body corporate in which he is interested, directly or indirectly and whether as an officer or shareholder or otherwise howsoever provided that he is not the holder of or beneficially interested in one per cent or more of any class of the equity share capital of such body corporate (or of any third body corporate through which his interest is derived) or of the voting rights available to members of the relevant body corporate (any such interest being deemed for the purpose of this Article to be a material interest in all circumstances); or |
| 108.5. | any contract, arrangement, transaction or other proposal concerning the adoption, modification or operation of a superannuation fund or retirement, death or disability benefits scheme under which he may benefit and which has been approved by or is subject to and conditional upon approval by the Board of the Inland Revenue for taxation purposes or which does not accord to any Director as such any privilege or advantage not accorded to the employees to which such scheme or fund relates; or |
| 108.6. | any contract, arrangement, transaction or proposal concerning the adoption, modification or operation of any scheme for enabling employees including full time executive directors of the Company and/or any subsidiary to acquire shares of the Company or any arrangement for the benefit of employees of the Company or any of its subsidiaries under which the Director benefits in a similar manner to employees and which does not accord to any Director as such, any privilege or advantage not generally accorded to the employees to whom such scheme relates; or |
| 108.7. | any proposal concerning any insurance which the Company proposes to purchase and/or maintain for or for the benefit of any Director or for the benefit of persons who include Directors. |
| 109. | Save as herein provided, a Director shall not vote in respect of any contract or arrangement or any other proposal whatsoever in which he has any interest which (together with any interest of any person connected with him) is to his knowledge a material interest otherwise than by virtue of his interests in shares or debentures or other securities of or otherwise through the Company or in respect of which he has any duty which conflicts with his duty to the Company. A Director shall not be counted in the quorum at a meeting in relation to any resolution in respect of which he is debarred from voting. |
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| 110. | Where proposals are under consideration concerning the appointment (including fixing or varying the terms of appointment) of two or more Directors to offices or employments with the Company or any company in which the Company is interested, such proposals may be divided and considered in relation to each Director separately and in such cases each of the Directors concerned (if not debarred from voting under Article 108.4) shall be entitled to vote (and be counted in the quorum) in respect of each resolution except that concerning his own appointment. |
| 111. | If any question shall arise at any meeting as to the materiality of a Director’s interest or as to the entitlement of any Director to vote and such question is not resolved by his voluntarily agreeing to abstain from voting, such question shall be referred to the chairman of the meeting whose ruling in relation to any other Director shall be final and conclusive except in a case where the nature or extent of the interests of the Director concerned have not been fairly disclosed. |
| 112. | Subject to the provisions of the Act the Company may by ordinary resolution suspend or relax the provisions of these Articles 108 to 111 to any extent or ratify any transaction not duly authorised by reason of a contravention of Articles 108 to 111. |
| 113. | A general notice given to the Directors by a Director (if it is given at a meeting of Directors, or if such Director takes reasonable steps to secure that it is read at the next meeting of Directors after it is given) to the effect that he is a member of a specified company or firm and is to be regarded as interested in any contract which may, after the date of the notice, be made with that company or firm, shall for the purpose of the Act be deemed to be a sufficient declaration of interest in relation to any contract so made. |
| 114. | A Director may be or continue to be or may become a Director or other officer or servant of, or otherwise interested in any other company in which the Company is in any way interested and shall not (in the absence of agreement to the contrary) be liable to account to the Company for any emoluments or other benefits received or receivable by him as Director, officer or servant of, or from his interest in, such other company. |
| 115. | The Directors may exercise or procure the exercise of the voting rights attached to shares in any other body corporate in which the Company is or becomes in any way interested and may exercise any voting rights, to which they are entitled as Directors of any such other body corporate, in such manner as they shall in their absolute discretion think fit, including the exercise thereof in favour of any resolution appointing themselves or any of them as directors, officers or servants of such other body corporate, and fixing their remuneration as such, and may vote as Directors of the Company in connection with any of the matters aforesaid. |
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| 116. | The Directors may make such arrangements as the Directors think fit for the management and transaction of the Company’s affairs in the United Kingdom or elsewhere and may for that purpose appoint local boards, managers and agents and delegate to them any of the powers of the Directors (other than the power to borrow and make calls) with power to sub-delegate and may at any time remove any person so appointed and may annul or vary any such delegation. |
| 117. | The Directors may from time to time appoint any person to an office or employment having a designation or title including the word “director” or attach to any existing office or employment with the Company such a designation or title. The inclusion of the word “director” in the designation or title of any office or employment with the Company (other than the office of managing or joint managing or deputy or assistant Managing Director) shall not imply that the holder thereof is a Director of the Company nor shall such holder thereby be empowered in any respect to act as a Director of the Company or be deemed to be a Director for any of the purposes of these Articles. |
| 118. | The Directors may at any time require any corporate member to furnish any information, supported (if the Directors so require) by a statutory declaration, which they may consider necessary for the purpose of determining whether or not such member is a close company within the meaning of Section 414 of the Income and Corporation Taxes Act 1988 (or any statutory modification or re-enactment thereof for the time being in force). |
BORROWING POWERS
| 119. | The Directors may exercise all the powers of the Company to borrow money, indemnify and guarantee and subject (in the case of any security convertible into shares) to Section 551 of the Act to mortgage or charge its undertaking, property and uncalled capital, or any part thereof, and to issue debentures and other securities whether outright or as collateral security for any debt liability or obligation of the Company or of any third party. |
| 120. | The Directors may exercise all the powers of the Company to borrow or raise money upon or by the issue or sale of any bonds, debentures, or securities, and upon such terms as to time of repayment, rate of interest, price of issue, or sale, payment of premium or bonus upon redemption or repayment or otherwise as they may think proper, including a right for the holders of bonds, debentures, or securities, to exchange the same for shares in the Company of any class authorised to be issued. |
| 121. | The Directors may confer upon any mortgagees or persons in whom any debenture or security is vested, such rights and powers as they think necessary or expedient; and they may vest any property of the Company in trustees for the purpose of securing any monies so borrowed or raised, and confer upon the trustees or any receiver to be appointed by them or by any debenture-holder such rights and powers as the Directors may think necessary or expedient in relation to the undertaking or property of the Company, or the management or the realisation thereof or the making, receiving, or enforcing of calls upon the members in respect of unpaid capital, and otherwise, and may make and issue debentures to trustees for the purpose of further security, and any such trustees may be remunerated. |
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| 122. | The Directors may give security for the payment of any monies payable by the Company in like manner as for the payment of monies borrowed or raised, but in such case the amount shall for the purposes of the above limitation be reckoned as part of the money borrowed. |
| 123. | The fee to be paid by any person other than a creditor or member of the Company for each inspection of the register of charges to be kept under the Act shall be the appropriate charge as defined by the Act. |
DISQUALIFICATION OF DIRECTORS
| 124. | The office of a Director shall be vacated in any of the following events, namely: |
| 124.1. | if he resigns his office by a signed notice in writing given to the Company or offers in writing to resign and the Directors resolve to accept such offer; or |
| 124.2. | if he becomes prohibited by law from acting as a Director; or |
| 124.3. | if a bankruptcy order is made against him or if he compounds with his creditors generally; or |
| 124.4. | if an order is made by any court of competent jurisdiction on the ground (however formulated) of mental disorder for his detention or for the appointment of a guardian or receiver or other person to exercise powers with respect to his property and affairs; or |
| 124.5. | A registered medical practitioner who is treating him gives a written opinion to the Company stating that that person has become physically or mentally incapable of acting as a director and may remain so for more than three months; or |
| 124.6. | if, not having leave of absence from the Directors he or his alternate (if any) fails to attend meetings of the Directors for 6 successive months unless prevented by illness, unavoidable accident or other cause which may seem to the Directors to be sufficient, and the Directors resolve that his office be vacated. |
RETIREMENT, ELECTION AND APPOINTMENT OF DIRECTORS
| 125. | At each annual general meeting, one-third of the Directors shall retire from office provided that: |
| 125.1. | if their number is more than three, but not a multiple thereof then the number nearest to but not exceeding one-third shall retire; |
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| 125.2. | if their number is two, one of such Directors shall retire; and |
| 125.3. | if their number is one that Director shall retire; |
and a Director retiring at a meeting shall if he is not reappointed at such meeting retain office until the meeting appoints someone in his place or if it does not do so, the dissolution of such meeting.
| 126. | The Directors to retire by rotation in each year shall be those who have been longest in office since their last appointment or reappointment but as between persons who became or were last reappointed on the same day those to retire shall (unless the Directors otherwise agree among themselves) be determined by lot. |
| 127. | A retiring Director shall be eligible for reappointment. The Directors to retire on each occasion (both as to number and identity) shall be determined by the composition of the Directors at the start of business on the date of the notice convening the annual general meeting and no Director shall be required to retire or be relieved from retiring by reason of any change in the number or identity of the Directors after that time on the date of the notice but before the close of the meeting. |
| 128. | The Company at the meeting at which a Director retires under any provision of these Articles may by ordinary resolution fill the office being vacated by electing to that office the retiring Director or some other person eligible for election. In default the retiring Director shall be deemed to have been re-elected except in any of the following cases: |
| 128.1. | where at such meeting it is expressly resolved not to fill such office or a resolution for the re-election of such Director is put to the meeting and lost; |
| 128.2. | where such Director has given notice in writing to the Company that he is unwilling to be re-elected; |
| 128.3. | where such Director has attained any retiring age applicable to him as Director; or |
| 128.4. | where the default is due to the moving of a resolution in contravention of the next following article. |
| 129. | A resolution for the appointment of two or more persons as Directors by a single resolution shall be void unless a resolution that it shall be so proposed has first been agreed to by the meeting without any vote being given against it. |
| 130. | No person except a retiring Director shall, (unless recommended by the Directors for election) be eligible for appointment to the office of Director unless not more than 28 days and not less than 7 days before the day of the meeting at which the appointment is to take place, there shall have been left at the Office written notice signed by a member duly qualified to attend and vote at such meeting stating his intention to propose such person for election, together with a written notice signed by such person of his willingness to be elected. |
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| 131. | The Company may from time to time by ordinary resolution, increase or reduce the number of Directors then in office and may also determine in what order of rotation such increased or reduced number is to go out of office. The Comp1my may by ordinary resolution appoint any person who is willing to act to be a Director, either to fill a casual vacancy or as an additional Director. |
| 132. | Without prejudice to the power of the Company to appoint Directors pursuant to these Articles the Directors shall have power at any time to appoint any person either to fill a casual vacancy or as an addition to the Board but so that the total number of Directors shall not exceed any maximum number fixed in accordance with these Articles. Subject to the provisions of the Act and of these Articles, any Director so appointed shall retire from office at the annual general meeting of the Company next following such appointment and will then be eligible for election during such meeting and he shall not retire by rotation at such meeting or be taken into account in determining the rotation of retirement of Directors at such meeting. |
| 133. | The Company may by ordinary resolution, of which special notice has been given in accordance with the provisions of the Statutes, remove any Director before the expiration of his period of office notwithstanding anything in these Articles or in any agreement between the Company and such Director. Such removal shall be without prejudice to any claim such Director may have for damages for breach of any contract of service between him and the Company. |
| 134. | The Company may by ordinary resolution appoint another person in place of a Director removed from office under the immediately preceding Article, and without prejudice to the powers of the Directors under Article 132 the Company in general meeting may appoint any person to be a Director either to fill a casual vacancy or as an additional Director. A person appointed in place of a Director so removed shall be treated (for the purpose of determining the time at which he or any other Director is to retire by rotation) as if he had become a Director on the day on which the Director in whose place he is appointed was last appointed or reappointed. |
| 135. | No person shall be or become incapable of being appointed a Director by reason of his having reached the age of 70 or any other age, nor shall special notice be required in connection with the appointment or the approval of the appointment of such person. |
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PROCEEDINGS OF DIRECTORS AND COMMITTEES
| 136. | The Directors may meet together for the dispatch of business, adjourn and otherwise regulate their meetings as they think fit and determine the quorum necessary for the transaction of business. Until otherwise determined two Directors shall constitute a quorum. Questions arising at any meeting shall be decided by a majority of votes. In case of an equality of votes the chairman shall have a second or casting vote. One Director may, and the Secretary shall at the request of a Director, at any time summon a meeting of the Directors. It shall not be necessary to give notice of a meeting of the Directors to a Director who is not within the United Kingdom. Any Director may waive notice of any meeting and any such waiver may be retrospective. |
| 137. | Notice of Board meetings shall be deemed to be duly given to a Director if it is given to him personally or by word of mouth or sent in writing to him at his last known address or any other address given by him to the Company for this purpose. A Director absent or intending to be absent from the United Kingdom may request the Board that notices of Board meetings shall during his absence be sent in writing to him at his last known address or any other address given by him to the Company for this purpose, whether or not out of the United Kingdom. |
| 138. | The Directors may elect a chairman or joint chairmen and one or more deputy chairmen of their meetings (which may also be an executive office in relation to the management of the business of the Company) and may at any time remove any of them from such office; but if no such chairman or deputy chairman is elected, or if at any meeting neither the chairman nor a deputy chairman is present at the time appointed for holding the same, the Directors present shall choose one of their number to be chairman of such meeting. |
| 139. | A duly convened meeting of the Directors for the time being at which a quorum is present shall be competent to exercise all or any of the authorities, powers, and discretions by or under these Articles for the time being vested in or exercisable by the Directors generally. |
| 140. | The continuing Directors may act notwithstanding any vacancy in their body, but if and so long as the number of Directors or Director is reduced below the number fixed by or pursuant to these Articles as the necessary quorum of Directors the continuing Directors or Director may act only for the purpose of increasing the number of Directors to that number or of summoning a general meeting of the Company, but for no other purpose. If there be no Director or Directors able or willing to act then any two members may summon a general meeting for the purpose of appointing Directors. |
| 141. | A resolution in writing signed by all the Directors for the time being entitled to receive notice of a meeting of the Directors shall be as valid and effective for all purposes as a resolution of those Directors passed at a meeting duly convened and held, and may consist of several documents in any medium each accurately stating the terms of the resolution and each signed by one or more of the Directors. Such a resolution need not be signed by an alternate Director if it is signed by the Director who appointed him. No signature is necessary if electronic communications are used, subject to any terms and conditions the Board may decide. |
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| 142. | Any one or more (including without limitation, all) of the members of the Board or any committee of the Directors may participate in a meeting of the Directors or of such committee, (a) by means of a conference telephone or videoconference or similar communications equipment allowing all persons participating in the meeting to hear each other at the same time, or (b) by a telephone call from the chairman of the meeting (whether before or at the same time or after any other call made by the chairman of the meeting for the purposes of that meeting) following disclosure of all material points raised at the meeting (including during any such call). A person participating in a meeting by such means shall be deemed present in person at the meeting and shall be entitled to vote and be counted in the quorum accordingly. Such a meeting shall be deemed to have occurred then, in the case of (a), at the place where most of the participants are present, or, if there is no such place, where the chairman of the meeting is then present and in the case of (b), where the chairman of the meeting is then present. The word “meeting” in these Articles shall be construed accordingly. |
| 143. | The Directors may delegate any of their powers or discretions (including without prejudice to the generality of the foregoing all powers and discretions whose exercise involves or may involve any payment to or the conferring of any other benefit on all or any of the Directors) to committees consisting of one or more members of their body and (if thought fit) one or more other persons co-opted as hereinafter provided. |
| 143.1. | Insofar as any such power or discretion is delegated to a committee any reference in these Articles to the exercise by the Directors of such power or discretion shall be read and construed as if it were a reference to the exercise of such power or discretion by such committee. Any committee so formed shall in the exercise of the powers and discretions so delegated conform to any regulations that may from time to time be imposed by the Directors in default of which the meetings and proceedings of a committee consisting of more than one member shall be governed mutatis mutandis by the provisions of these Articles regulating the proceedings and meetings of the Directors. Any such regulations may provide for or authorise the co-opted members to have voting rights as members of the committee but so that (a) the number of co-opted members shall be less than one-half of the total number of members of the committee and (b) no resolution of the committee shall be effective unless a majority of the members of the committee present throughout the meeting of the committee are Directors. |
| 144. | The Directors shall cause minutes to be made of the following matters, namely: |
| 144.1. | of all appointments of officers, and committees made by the Directors, and of their salary or remuneration; |
| 144.2. | of the names of Directors present at every meeting of the Board or of committees of Directors, and all business transacted at such meetings; and |
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| 144.3. | of all orders, resolutions and proceedings of all meetings of the Company, of the holders of any class of shares in the Company and of the Directors and committees of Directors. |
| 144.4. | Any such minute, if purporting to be signed by the chairman of the meeting at which the proceedings were held, or by the chairman of the next succeeding meeting, shall be receivable as prima facie evidence of the matters stated in such minutes without any further proof. |
| 145. | All acts done by a meeting of the Directors, or of a committee, or by any person acting as a Director, shall, notwithstanding that it is afterwards discovered that there was some defect in the appointment of any person or persons acting as aforesaid, or that they or any of them were or was disqualified from holding office or not entitled to vote, or had in any way vacated their or his office, be as valid as if every such person had been duly appointed, and were duly qualified and had continued to be a Director. |
SECRETARY
| 146. | Subject to the provisions of the Act the Directors shall appoint a secretary or joint secretaries and shall fix his or their remuneration and terms and conditions of employment and shall have power to appoint one or more persons to be an assistant or deputy secretary. The Directors may from time to time remove any persons so appointed and appoint another or others in his place. |
| 147. | Any person so appointed under Article 146 shall conform to such regulations as the Directors may from time to time resolve. Nevertheless persons having dealings with the Company shall be entitled to assume that each joint secretary is entitled by himself to do anything required or authorised to be done by the Secretary. |
AUTHENTICATION OF DOCUMENTS
| 148. | Any Director or the Secretary or any person appointed by the Board for the purpose shall have power to authenticate any documents affecting the constitution of the Company and any resolution passed by the Company or the Board or any committee, and any book, record, document or account relating to the business of the Company and to certify copies or extracts of such resolution, book, record, document or account as true copies or extracts, and if any resolution, book, record, document or account is elsewhere than at the Office the local manager or other officer of the Company having the custody of them shall be deemed to be a person appointed by the Board. A document purporting to be a copy of a resolution, or an extract from the minutes of a meeting, of the Company or of the Board or any committee, which is certified shall be conclusive evidence in favour of all persons dealing with the Company upon the faith of such certified copy that such resolution has been duly passed or, as the case may be, that any minute so extracted is a true and accurate record of proceedings at a duly constituted meeting. |
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RESERVES
| 149. | Subject to the provisions of the Act the Directors may before recommending any dividends whether preferential or otherwise carry to reserve out of the profits of the Company such sums as they think proper. All sums standing to reserve may be applied from time to time in the discretion of the Directors for meeting depreciation or contingencies or for special dividends or bonuses or for equalising dividends or for repairing, improving or maintaining any of the property of the Company or for such other purposes as the Directors may think conducive to the objects of the Company or any of them and pending such application may either be employed in the business of the Company or be invested in such investments as the Directors think fit. The Directors may divide the reserve into such special funds as they think fit, and may consolidate into one fund any special funds or any parts of any special funds into which the reserve may have been divided as they think fit. Any sum which the Directors may carry to reserve out of the unrealised profits of the Company shall not be mixed with any reserve to which profits available for distribution have been carried. The Directors may also without placing the same to reserve carry forward any profits which they may think it not prudent to divide. |
DIVIDENDS AND OTHER PAYMENTS
| 150. | The Company may by ordinary resolution declare a dividend to be paid to the members according to their respective rights and interests, but no such dividend shall exceed the amount recommended by the Directors. |
| 151. | No dividend or other monies payable by the Company shall bear interest as against the Company. |
| 152. | Subject to the rights of the holders of any shares entitled to any priority preference or special privilege (if any), all dividends shall be declared and paid to the members in proportion to the amounts paid up on the shares in respect whereof the dividend is paid, but no amount paid up on a share in advance of calls shall be treated for the purpose of this Article as paid up on the share. Subject as aforesaid all dividends shall be apportioned and paid proportionately to the amounts paid up on the shares during any portion or portions of the period in respect of which the dividend is paid; but if any share is issued on terms that it shall rank for dividend as if paid up in full or in part from a particular date whether past or future, it shall rank accordingly. |
| 153. | If several persons are registered as joint holders of any share any one of such persons may give valid receipts for all dividends and payments on account of dividends in respect of such share. |
| 154. | The Directors may from time to time declare and pay an interim dividend to the members and may also pay the fixed dividends payable on any shares of the Company half yearly or otherwise on fixed dates. |
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| 155. | No dividend or interim dividend shall be payable except in accordance with the provisions of the Statutes. |
| 156. | All dividends, interest or other sums payable and unclaimed for six months after having been declared may be invested or otherwise made use of by the Directors for the benefit of the Company until claimed. All dividends unclaimed for a period of 12 years after the date the dividend became due for payment shall be forfeited and shall revert to the Company. The payment of any unclaimed dividend, interest or other sum payable by the Company on or in respect of any share into a separate account shall not constitute the Company a trustee thereof. |
| 157. | Every dividend shall belong and be paid (subject to the Company’s lien) to those members who shall be on the Register at the date fixed by the Directors for the purpose of determining the persons entitled to such and (whether the date of payment or some other date) notwithstanding any subsequent transfer or transmission of shares. |
| 158. | The Directors may deduct from any dividend or other monies payable to any member on or in respect of a share all such sums as may be due from him to the Company on account of calls or otherwise in relation to shares of the Company. |
| 159. | The Company may pay any dividend, interest or other sum payable in cash or by direct debit, bank transfer, cheque, dividend warrant, or money order and may remit the same by post to the members or persons entitled thereto, and in case of joint holders, to the member whose name stands first in the Register, or to such person and address as the holder or joint holders may direct, and the Company shall not be responsible for any loss of any such cheque, warrant, or order, every such cheque, warrant, or order, shall be made payable to the order of the person to whom it is sent, or to such person as the holder or joint holders may in writing direct, and the payment of the cheque, warrant or order shall be a good discharge to the Company. |
| 160. | Any general meeting declaring a dividend may direct payment of such dividend wholly or in part by the distribution of specific assets and in particular of paid up shares or debentures of any other company, and the Directors shall give effect to any such direction, provided that no such distribution shall be made unless recommended by the Directors. Where any difficulty arises in regard to the distribution, the Directors may settle the same as they think expedient, and in particular may issue fractional certificates, and may fix the value for distribution of such specific assets or any part thereof, and may determine that cash payments may be made to any members upon the footing of the value so fixed, in order to adjust the rights of all parties, and may vest any such assets in trustees upon trust for the persons entitled to the dividend as may seem expedient to the Directors. |
| 161. | Subject to and without prejudice to the provisions of these Articles the Directors may offer the holders of ordinary shares the right to elect to receive ordinary shares, credited as fully paid, instead of cash in respect of all or part of such dividend or dividends as may be declared by the Company pursuant to Article 150 or, as the case may be, by the Directors pursuant to Article 154, subject to such exclusions or restrictions as the Directors may in their absolute discretion deem necessary or desirable in relation to compliance with legal or practical problems under the laws of or the requirements of any recognised regulatory body or any stock exchange in any territory in so far as they may relate to the Company. |
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The following provisions shall apply:
| 161.1. | the Directors shall not exercise their powers under this Article in respect of a particular dividend unless the Company in general meeting has authorised the exercise of those powers in respect of that dividend or in respect of dividends (including that dividend) to be declared or paid during or in respect of a specified period; |
| 161.2. | the basis of allotment shall be determined by the Directors so that as nearly as may be considered convenient without involving any rounding up of fractions, the value (calculated by reference to the average quotation) of the new ordinary shares (including any fractional entitlement) to be allotted instead of any amount of dividend shall equal such amount. For such purpose the “average quotation” of an ordinary share shall be the average of the middle market quotations for a fully paid ordinary share of the Company as derived from the Daily Official List of the Stock Exchange on the business day on which the ordinary shares are first quoted “ex” the relevant dividend and the four subsequent business days; |
| 161.3. | no shareholder may receive a fraction of a share; |
| 161.4. | the Directors may make such arrangements as they consider necessary or expedient in relation to any offer to be made pursuant to this Article including but not limited to the giving of notice to ordinary shareholders of the right of election offered to them, the provision of forms of election (whether in respect of a particular dividend or dividends generally) and determination of the procedure for making and revoking such elections and the place at which, and the latest time by which, forms of election and any other relevant documents must be lodged in order to be effective; |
| 161.5. | the dividend (or that part of the dividend in respect of which a right of election has been offered) shall not be declared or payable on ordinary shares in respect of which the said election has been duly made (“the elected shares”) and instead thereof additional ordinary shares shall be allotted to the holders of the elected shares on the basis of allotment determined as aforesaid. For such purpose, the Directors shall capitalise out of such of the sums standing to the credit of reserves (including any share premium account or capital redemption reserve) or any of the profits which could otherwise have been applied in paying dividends in cash as the Directors may determine, a sum equal to the aggregate nominal amount of the additional ordinary shares to be allotted on such basis and apply the same in paying up in full the appropriate number of unissued ordinary shares for allotment and distribution to and amongst the holders of the elected shares on such basis. A resolution of the Directors capitalising any part of such reserves or profits shall have the same effect as if such capitalisation had been declared with the authority of an ordinary resolution of the Company in accordance with Article 162 and in relation to any such capitalisation the Directors may exercise all the powers conferred on them by that Article without need of such ordinary resolution; |
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| 161.6. | the additional ordinary shares so allotted shall be allotted as of the record date for determining the entitlements of holders of elected shares to make elections as described in this Article, or on such other date, as the Directors may in their absolute discretion determine and shall rank equally in all respects with the fully paid ordinary shares then in issue except that the ordinary shares so allotted will not rank for any dividend or other distribution or other entitlement which has been declared, made, paid or payable by reference to such record date. |
CAPITALISATION OF PROFITS
| 162. | The Directors may with the authority of an ordinary resolution of the Company: |
| 162.1. | subject as hereinafter provided, resolve to capitalise any undistributed profits of the Company not required for paying any preferential dividend (whether or not they are available for distribution) or any sum standing to the credit of the Company’s share premium account or capital redemption reserve; |
| 162.2. | appropriate the sum resolved to be capitalised to the members who would have been entitled to it if it were distributed by way of dividend and in the same proportions and apply such sum on their behalf either in or towards paying up the amounts, if any, for the time being unpaid on any shares held by them respectively, or in paying up in full unissued shares or debentures of the Company of a nominal amount equal to that sum and allot the shares or debentures credited as fully paid to those members, or as they may direct, in those proportions or partly in one way and partly in the other but the share premium account, the capital redemption reserve and any profits which are not available for distribution may, for the purposes of this regulation, only be applied in paying up unissued shares to be allotted to members credited as fully paid; |
| 162.3. | make such provision by the issue of fractional certificates or by payment in cash or otherwise as they determine in the case of shares or debentures becoming distributable under this Article in fractions (including provisions whereby fractional entitlements are disregarded or the benefit thereof accrues to the Company rather than to the members concerned); and |
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| 162.4. | authorise any person to enter on behalf of all the members concerned into an agreement with the Company providing for the allotment to them respectively, credited as fully paid, of any shares or debentures to which they are entitled upon such capitalisation, any agreement made under such authority being binding on all such members. |
RECORD DATES
| 163. | Notwithstanding any other provision of these Articles the Company or the Board may fix any date as the record date for any dividend, distribution, allotment or issue and such record date may be on or at any time before any date on which such dividend, distribution, allotment or issue is paid or made and on or at any time before or after any date on which such dividend, distribution, allotment or issue is declared. |
ACCOUNTS
| 164. | The Directors shall cause accounting records to be kept in accordance with the provisions of the Statutes. |
| 165. | The accounting records shall be kept at the Office or, subject to the provisions of the Statutes, such other place or places as the Directors think fit, and shall always be open to the inspection of the Directors. |
| 166. | The Directors shall from time to time determine whether and to what extent and at what time and places, and under what conditions or regulations the accounting records of the Company, or any of them, shall be open to the inspection of the members, and no member (not being a Director) shall have any right of inspecting any accounting record or other document of the Company except as conferred by statute or authorised by the Directors or by the Company in general meeting. |
| 167. | A copy of the Company’s annual accounts, including all documents required by law to be annexed to the balance sheet which is to be laid before the Company in general meeting, together with copies of the Directors’ and of the Auditors’ reports or, if the Directors so determine, summary financial statements in accordance with the Act shall (in accordance with and subject as provided by the Act) not less than 21 clear days before the date of the meeting be sent to every member (whether or not he is entitled to receive notices of general meetings of the Company) and every holder of debentures of the Company (whether or not he is so entitled) and the Auditors and all other persons entitled to receive notice of general meetings of the Company. |
SEALS AND EXECUTION OF DOCUMENTS
| 168. | The Directors may provide a common seal and/or an official seal for the Company and shall have power from time to time to destroy the same and to substitute a new seal in its place. |
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| 169. | The Directors shall provide for the safe custody of every seal of the Company. Documents may only be executed under seal or as a deed on behalf of the Company if such execution is authorised by a resolution of the Directors or of a committee of the Directors which authority may be of a general nature and need not apply only to specific documents or transactions. Every document so authorised to be executed on behalf of the Company shall be signed by one Director and the Secretary or by two Directors or by one Director in the presence of a witness who attests the signature or by such person or persons as the Board may approve (whether or not the Directors have also resolved that the common seal or the official seal shall also be affixed to such document) save that as regards any certificates or other securities of the Company the Directors may by resolution determine that such signatures or either of them shall be dispensed with or affixed by some mechanical or electronic means. |
CHEQUES, BILLS AND NOTES
| 170. | The Directors may draw, make, accept, or endorse, or authorise any other person or persons to draw, make, accept, or endorse any cheques, bills of exchange, promissory notes or other negotiable instruments, provided that every cheque, bill of exchange, promissory note or other negotiable instrument drawn, made or accepted shall be signed by such persons or person as the Directors may appoint for the purpose. |
NOTICES
| 171. | Subject to any laws applicable at the time of despatch as to the method of delivery, a notice or other document (including a share certificate) may be served by the Company upon any member: |
| 171.1. | by delivering it by hand to the registered address of that member; |
| 171.2. | by sending it by post or other delivery service in an envelope (with postage or delivery paid) to the registered address of that member; |
| 171.3. | by fax (except for share certificates) to a fax number notified to the Company by that member in writing; |
| 171.4. | in electronic form (except for share certificates) to an address notified to the Company by that member; |
| 171.5. | (by the Company) by means of a website (other than notices calling a meeting of directors), or partly by one of these means and partly by another of these means. |
| 172. | Members whose registered address shall not be in the United Kingdom, and who shall not have given to the Company an address for service of notices in the United Kingdom, shall not be entitled to receive any notices whatsoever, but the Directors may, if they think proper, serve any notice upon such member in the above manner. |
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| 173. | A notice or other document addressed to a member at his registered address or address for service in the United Kingdom shall: |
| 173.1. | if delivered by hand, be treated as being delivered at the time that it is handed to or left for that member; |
| 173.2. | if sent by post or other delivery service not referred to below, be treated as being delivered: |
| (a) | if delivered, at the time of delivery; and |
| (b) | if posted, on receipt or 24 hours after the time it was posted if sent by first class post or 48 hours after the time it was posted if sent by second class post, whichever occurs first; |
and it shall be proved conclusively that a notice or document was delivered by post or other delivery service by showing that the envelope containing the notice or document was properly addressed and put into the post system or given to delivery agents with postage or delivery paid;
| 173.3. | subject to the provisions of the Act, if in electronic form any notice or other document given or supplied under these articles may: |
| (a) | if sent by fax or email (provided that a fax number or an address for email has been notified to or by the Company for that purpose), be sent by the relevant form of electronic communication to that address; |
| (b) | if delivered or sent by first class post (airmail if overseas) in an electronic form (such as sending a disk by post), be so delivered or sent as if in hard copy form under article 173.2; or |
| (c) | be sent by such electronic means (as defined in section 1168 of the Act) as the Company may specify: |
| (i) | on its website from time to time; or |
| (ii) | by notice (in hard copy or electronic form) to all members of the Company from time to time. |
| 173.4. | if in electronic form any notice or document given or supplied under these articles shall be deemed to have been served and be effective: |
| (a) | if sent by facsimile or email (where a fax number or an address for email has been notified to or by the Company for that purpose), on receipt or 48 hours after the time it was sent, whichever occurs first; |
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| (b) | if posted in an electronic form, on receipt or 48 hours after the time it was posted, whichever occurs first; |
| (c) | if delivered in an electronic form, at the time of delivery; and |
| (d) | if sent by any other electronic means as referred to in article 173.3(c) above, at the time such delivery is deemed to occur under the Act, |
and where the Company is able to show that any notice or other document given or sent under these articles by electronic means was properly addressed with the electronic address supplied by the intended recipient, the giving or sending of that notice or other document shall be effective notwithstanding any receipt by the Company at any time of notice either that such method of communication has failed or of the intended recipient’s non-receipt.
| 174. | If at any time by reason of the suspension or any curtailment of or disruption to the postal or telecommunications services in the United Kingdom the Company is unable effectively to convene a general meeting by notices sent through the post, by fax or electronic communication and the Board has resolved that it is necessary to do so in the interests of the Company, a general meeting may be convened: |
| 174.1. | by a notice advertised on the same date in at least one United Kingdom national daily newspaper and such notice shall be deemed to have been duly served on all members entitled thereto at noon on the day when the advertisement appears. In any such case the Company shall send confirmatory copies of the notice by post if at least 5 days prior to the meeting the posting of notices again becomes practicable; or |
| 174.2. | by a notice delivered by hand to the registered address of all the members entitled thereto and such notice shall be deemed to have been duly served on all members entitled thereto on the day when the notice has been delivered to the registered address of the last such member. In proving such service, it shall be sufficient to prove that the notice was properly delivered and no proof of receipt by any such members is required. |
| 175. | All notices directed to be given to the members shall with respect to any share to which persons are jointly entitled, be given to whichever of such persons is named first in the Register, and notice so given shall be sufficient notice to all the holders of such share. If the person first named in the Register has a registered address outside the United Kingdom and has not given the Company an address for service within the United Kingdom the joint holders shall not be entitled to any notice. |
| 176. | A person entitled to a share in consequence of the death or bankruptcy of a member shall be entitled upon supplying to the Company such evidence as the Directors may reasonably require to show his title to the share and upon supplying an address within the United Kingdom for the service of notices, to have served upon or delivered to him at such address any notice or document to which the member, but for his death or bankruptcy, would be entitled and such service or delivery shall for all purposes be deemed a sufficient service or delivery of such notice or document on all persons interested (whether jointly with or as claiming through or under him) in the share. Save as aforesaid any notice or document delivered or sent by post to or left at the address of any member in pursuance of these Articles shall, notwithstanding that such member is then dead or bankrupt and whether or not the Company has notice of his death or bankruptcy, be deemed to have been duly served or delivered in respect of any share registered in the name of such member as sole or first-named joint holder. |
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| 177. | Subject to such restrictions affecting the right to receive notice as are for the time being applicable to the holders of any class of shares, notice of every general meeting shall be given in any manner authorised by these Articles to: |
| 177.1. | every member except those members who (having no registered address within the United Kingdom) have not supplied to the Company an address within the United Kingdom for the giving of notices to them; and |
| 177.2. | the Auditors; and |
| 177.3. | the Directors and (if any) alternate Directors; |
and no other person shall be entitled to receive notices of general meetings other than as expressly provided in any agreement by which the Company is bound.
DESTRUCTION OF DOCUMENTS
| 178. | The Company may destroy: |
| 178.1. | any share certificate which has been cancelled at any time after the expiry of one year from the date of such cancellation; |
| 178.2. | any variation or cancellation of any dividend mandate at any time after the expiry of two years from the date such variation or cancellation was recorded by the Company; |
| 178.3. | any notification of change of name or address at any time after the expiry of two years from the date such notification was recorded by the Company; |
| 178.4. | any instrument of transfer of shares which has been registered at any time after the expiry of six years from the date of registration; and |
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| 178.5. | any other document on the basis of which any entry in the Register is made at any time after the expiry of six years from the date an entry in the Register was first made in respect of it; and it shall conclusively be presumed in favour of the Company that every share certificate so destroyed was a valid certificate duly and properly cancelled and that every instrument of transfer so destroyed was a valid and effective instrument duly and properly registered and that every other document destroyed under this Article was a valid and effective document in accordance with the recorded particulars of that document in the books or records of the Company Provided always that: |
| (a) | the foregoing provisions of this Article shall apply only to the destruction of a document in good faith and without express notice to the Company that the preservation of such document was relevant to a claim; |
| (b) | nothing contained in this Article shall be construed as imposing upon the Company any liability in respect of the destruction of any document earlier than as stated in this Article or in any case where the conditions of Article 178.5(a) are not fulfilled; and |
| (c) | references in this Article to the destruction of any document include references to its disposal in any manner. |
INDEMNITY
| 179. |
| 179.1. | Subject to the provisions of and so far as may be permitted by the Statutes, every Director or other officer of the Company (excluding the Company’s auditors) shall be entitled to be indemnified by the Company (and the Company shall also be able to indemnify directors of any associated company (as defined in section 256 of the Act)) out of the assets of the Company against all losses or liabilities which he may sustain or incur in or about the actual or purported execution or discharge of the duties of his office or the exercise or purported exercise of his powers or otherwise in relation thereto provided that no director of the Company or any associated company is indemnified by the Company against: |
| (a) | any liability incurred by the director to the Company or any associated company; |
| (b) | any liability incurred by the director to pay a fine imposed in criminal proceedings or a sum payable to a regulatory authority by way of a penalty in respect of non-compliance with any requirements of a regulatory nature; or |
| (c) | any liability incurred by the director: |
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| (i) | in defending any criminal proceedings in which he is convicted; |
| (ii) | in defending civil proceedings brought by the Company or any associated company in which final judgment (within the meaning set out in section 234 of the Act) is given against him; or |
| (iii) | in connection with any application under sections 661(3) or 661(4) or 1157 of the Act (as the case may be) for which the court refuses to grant him relief. |
| 179.2. | Subject to the provisions of and so far as may be permitted by the Statutes, and without prejudice to article 179.1, the Board shall have the power to purchase and maintain insurance at the expense of the Company for or for the benefit of any persons who are or were at any time directors, officers or employees of any Relevant Company (as defined in the following article) or who were or were at any time trustees of any pension fund or employees’ share scheme in which employees of any Relevant Company are interested, including (without prejudice to the generality of the foregoing) insurance against any liability incurred by such persons in respect of any negligence, default, breach of duty or breach of trust of which they may be guilty in relation to a Relevant Company arising out of any act or omission in the actual or purported execution or discharge of their duties or in the exercise or purported exercise of their powers or otherwise in relation to their duties, powers or offices in relation to any Relevant Company, or any such pension fund or employees’ share scheme. |
| 179.3. | For the purposes of article 179.2, “Relevant Company” shall mean the Company, any holding company of the Company or any other body, whether or not incorporated, in which the Company or such holding company or any of the predecessors of the Company or such holding company has or had any interest whether direct or indirect or which is in any way allied to or associated with the Company, or any subsidiary undertaking of the Company or of such other body. |
WINDING UP
| 180. | The liquidator on any winding-up of the Company (whether voluntary or compulsory) may with the authority of a special resolution, divide among the members in kind the whole or any part of the assets of the Company and whether or not the assets shall consist of property of one kind, or shall consist of properties of different kinds, and for such purpose may set such value as he deems fair upon any one or more class or classes of property, and may determine how such division shall be carried out as between members or classes of members but so that if any such division shall be otherwise than in accordance with the existing rights of the members, every member shall have the same right of dissent and other ancillary rights as if such resolution were a special resolution passed in accordance with Section 110 of the Insolvency Act 1986. |
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PROVISION FOR EMPLOYEES ON CESSATION OR TRANSFER OF BUSINESS
| 181. | The Company may exercise the power conferred upon it by Section 187 of the Insolvency Act 1986 and Section 247 of the Act with the prior sanction of a resolution of the Board. |
TAKEOVERS
| 182. | If: |
| (i) | at any time when the Company is not subject to the UK City Code on Takeovers and Merges (the “Code”) or any successor or other regime (whether statutory or non-statutory) governing the conduct of takeovers and mergers in the UK (any of such being the “Takeover Regime”); |
| (ii) | any person (together with any persons held to be acting with him) acquires any interest in shares in the Company and as a result he (whether or not with any other persons) would (in the opinion of the Board) have been obliged under the Takeover Regime to extend an offer (a “Mandatory Offer”) to the holders of any other securities in the Company had the Takeover Regime applied to the Company (such person or persons who would from time to time have been required to have made such an offer being the “Mandatory Offeror(s)”); and |
| (iii) | the Mandatory Offeror(s) fail(s) to make such an offer on terms no less favourable (in the opinion of the Board) to the other holders of securities than he/they would have been obliged to offer under the provisions of the Takeover Regime had it applied (a “Compliant Offer”) within 21 days following the date on which the obligation would have arisen, |
the Board shall be entitled, but not obliged, to suspend with immediate effect, with notification thereof being given to the Mandatory Offeror(s) or (if different) the registered holders of the shares in the Company in which they have an interest, all voting rights attributable to the shares in the Company in which the Board considers the Mandatory Offeror(s) from time to time to have an interest. Any such suspension may, at the discretion of the Board extend for any period during which the obligation to make a Mandatory Offer would have continued to exist under the Takeover Regime unless and until a Compliant Offer is made.
In applying the foregoing provisions the Board shall be entitled but not obliged to take into account any notes included in, or prepared in connection with, the Takeover Regime and any views of the supervisory body under the Takeover Regime.
The Board shall have no liability to any shareholder of the Company, any person who has any interest in the shares in the Company, or any other person for the manner in which they exercise or refrain from exercising any suspension powers under this Article or for any determination which the Board makes as to the application of the provisions of this Article to any particular circumstances.
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Exhibit 4.1

D E P O S I T A G R E E M E N T A M O N G G U A R D I A N M E T A L R E S O U R C E S P L C , J P M O R G A N C H A S E B A N K , N . A . , A S D E P O S I T A R Y , A N D H O L D E R S A N D B E N E F I C I A L O W N E R S O F A M E R I C A N D E P O S I T A R Y R E C E I P T S


TABLE OF CONTENTS
| Page | |||
| PARTIES | 1 | ||
| RECITALS | 1 | ||
| Section 1. | Certain Definitions | ||
| (a) | ADR Register | 1 | |
| (b) | ADRs; Direct Registration ADRs | 1 | |
| (c) | ADS | 1 | |
| (d) | Beneficial Owner | 1 | |
| (e) | Commission | 2 | |
| (f) | Custodian | 2 | |
| (g) | Deliver, execute, issue et al. | 2 | |
| (h) | Delivery Order | 2 | |
| (i) | Deposited Securities | 2 | |
| (j) | Direct Registration System | 2 | |
| (k) | Holder | 2 | |
| (l) | Removal Notice Date | 3 | |
| (m) | Resignation Notice Date | 3 | |
| (n) | Securities Act of 1933 | 3 | |
| (o) | Securities Exchange Act of 1934 | 3 | |
| (p) | Shares | 3 | |
| (q) | Termination Date | 3 | |
| (r) | Transfer Office | 3 | |
| (s) | Withdrawal Order | 3 | |
| Section 2. | Form of ADRs | 3 | |
| Section 3. | Deposit of Shares | 4 | |
| Section 4. | Issue of ADRs | 5 | |
| Section 5. | Distributions on Deposited Securities | 5 | |
| Section 6. | Withdrawal, Delivery and Transfer of Deposited Securities | 6 | |
| Section 7. | Substitution of ADRs | 6 | |
| Section 8. | Cancellation and Destruction of ADRs; Maintenance of Records | 7 | |
| Section 9. | The Custodian | 7 | |
| Section 10. | Lists of Holders | 8 | |
| Section 11. | Depositary's Agents | 8 | |
| Section 12. | Resignation and Removal of the Depositary; Appointment of Successor Depositary | 8 | |
| Section 13. | Reports | 9 | |
| Section 14. | Additional Shares | 9 | |
| Section 15. | Indemnification | 10 | |
| Section 16. | Notices | 12 | |
| Section 17. | Counterparts | 13 | |
| Section 18. | No Third-Party Beneficiaries; Holders and Beneficial Owners as Parties; Binding Effect; Disclaimer of Beneficial Ownership | 13 | |
| Section 19. | Severability | 13 | |
| Section 20. | Governing Law; Consent to Jurisdiction | 13 | |
| Section 21. | Agent for Service | 15 | |
| Section 22. | Waiver of Immunities | 16 | |
| Section 23. | Waiver of Jury Trial | 16 | |
| TESTIMONIUM | |||
| SIGNATURES | 17 | ||
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| EXHIBIT A | ||
| Page | ||
| FORM OF FACE OF ADR | A-1 | |
| Introductory Paragraph | A-1 | |
| (1) | Issuance of ADSs | A-2 |
| (2) | Withdrawal of Deposited Securities | A-3 |
| (3) | Transfers, Split-Ups and Combinations of ADRs | A-4 |
| (4) | Certain Limitations to Registration, Transfer etc. | A-4 |
| (5) | Liability of Holder or Beneficial Owner for Taxes, Duties and Other Charges | A-5 |
| (6) | Disclosure of Interests | A-7 |
| (7) | Charges of Depositary | A-7 |
| (8) | Available Information | A-11 |
| (9) | Execution | A-11 |
| Signature of Depositary | A-11 | |
| Address of Depositary's Office | A-11 | |
| FORM OF REVERSE OF ADR | A-12 | |
| (10) | Distributions on Deposited Securities; Sales | A-12 |
| (11) | Record Dates | A-15 |
| (12) | Voting of Deposited Securities | A-15 |
| (13) | Changes Affecting Deposited Securities | A-17 |
| (14) | Exoneration | A-17 |
| (15) | Resignation and Removal of Depositary; the Custodian | A-21 |
| (16) | Amendment | A-22 |
| (17) | Termination | A-23 |
| (18) | Appointment; Acknowledgements and Agreements | A-26 |
| (19) | Waiver | A-27 |
| (20) | Jurisdiction | A-27 |
| (21) | Elective Distributions in Cash or Shares | A-28 |
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DEPOSIT AGREEMENT, dated as of _____________ __, 2026 (the "Deposit Agreement"), among GUARDIAN METAL RESOURCES PLC, a public limited company incorporated under the laws of England and Wales, and its successors (the "Company"), JPMORGAN CHASE BANK, N.A., a national banking association organized under the laws of the United States of America, as depositary hereunder (in such capacity, the "Depositary"), and all Holders (as defined below) and Beneficial Owners (as defined below) from time to time of American depositary receipts issued hereunder evidencing American depositary shares ("ADSs") representing deposited Shares (as defined below). The Company hereby appoints the Depositary as depositary for the Deposited Securities (as defined below) and hereby authorizes and directs the Depositary to act in accordance with the terms set forth in this Deposit Agreement. All capitalized terms used herein have the meanings ascribed to them in Section 1 or elsewhere in this Deposit Agreement. The parties hereto agree as follows:
1. Certain Definitions.
(a) "ADR Register" is defined in paragraph (3) of the form of ADR (Transfers, Split-Ups and Combinations of ADRs).
(b) "ADRs" mean the American Depositary Receipts executed and delivered hereunder. ADRs may be either in physical certificated form or Direct Registration ADRs (as hereinafter defined). ADRs in physical certificated form, and the terms and conditions governing the Direct Registration ADRs, shall be substantially in the form of Exhibit A annexed hereto (the "form of ADR"). The term "Direct Registration ADR" means an ADR, the ownership of which is recorded on the Direct Registration System. References to "ADRs" shall include certificated ADRs and Direct Registration ADRs, unless the context otherwise requires. The form of ADR is hereby incorporated herein and made a part hereof; the provisions of the form of ADR shall be binding upon the parties hereto.
(c) Subject to paragraph (13) of the form of ADR (Changes Affecting Deposited Securities), each "ADS" evidenced by an ADR represents the right to receive, and to exercise the beneficial ownership interests in, the number of Shares specified in the form of ADR attached hereto as Exhibit A (as may be amended from time to time) that are on deposit with the Depositary and/or the Custodian and a pro rata share in any other Deposited Securities, subject, in each case, to the terms of this Deposit Agreement and the ADSs. The ADS(s)-to-Share(s) ratio is subject to amendment as provided in the form of ADR (which may give rise to fees contemplated in paragraph (7) thereof (Charges of Depositary)).
(d) "Beneficial Owner" means as to any ADS, any person or entity having a beneficial ownership interest in such ADS. A Beneficial Owner need not be the Holder of the ADR evidencing such ADS. If a Beneficial Owner of ADSs is not a Holder, it must rely on the Holder of the ADR(s) evidencing such ADSs in order to assert any rights or receive any benefits under this Deposit Agreement. The arrangements between a Beneficial Owner of ADSs and the Holder of the corresponding ADRs may affect the Beneficial Owner's ability to exercise any rights it may have.
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(e) "Commission" means the United States Securities and Exchange Commission.
(f) "Custodian" means the agent or agents of the Depositary (singly or collectively, as the context requires) and any additional or substitute Custodian appointed pursuant to Section 9.
(g) The terms "deliver," "execute," "issue," "register," "surrender," "transfer" or "cancel," when used with respect to (i) Shares shall refer, where the context requires, to an entry or entries or an electronic transfer or transfers in an account or accounts maintained by institutions authorized under applicable law to effect transfers of securities (which may include CREST) and not to the physical transfer of certificates representing the Shares and (ii) Direct Registration ADRs, shall refer to an entry or entries or an electronic transfer or transfers in the Direct Registration System, and, when used with respect to ADRs in physical certificated form, shall refer to the physical delivery, execution, issuance, registration, surrender, transfer or cancellation of certificates representing the ADRs.
(h) "Delivery Order" is defined in Section 3.
(i) "Deposited Securities" as of any time means all Shares at such time deposited under this Deposit Agreement and any and all other Shares, securities, property and cash at such time held by the Depositary or the Custodian in respect or in lieu of such deposited Shares and other Shares, securities, property and cash. Deposited Securities are not intended to, and shall not, constitute proprietary assets of the Depositary, the Custodian or their nominees. Beneficial ownership in Deposited Securities is intended to be, and shall at all times during the term of the Deposit Agreement continue to be, vested in the Beneficial Owners of the ADSs representing such Deposited Securities.
(j) "Direct Registration System" means the system for the uncertificated registration of ownership of securities established by The Depository Trust Company ("DTC") and utilized by the Depositary pursuant to which the Depositary may record the ownership of ADRs without the issuance of a certificate, which ownership shall be evidenced by periodic statements issued by the Depositary to the Holders entitled thereto. For purposes hereof, the Direct Registration System shall include access to the Profile Modification System maintained by DTC, which provides for automated transfer of ownership between DTC and the Depositary.
(k) "Holder" means the person or persons in whose name an ADR is registered on the ADR Register. For all purposes under the Deposit Agreement and the ADRs, a Holder shall be deemed to have all requisite authority to act on behalf of any and all Beneficial Owners of the ADSs evidenced by the ADR(s) registered in such Holder's name.
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(l) "Removal Notice Date" means the earliest date on which the Company provided notice of removal to the Depositary pursuant to Section 12(b) of this Deposit Agreement.
(m) "Resignation Notice Date" means the date on which the Depositary provided notice of its resignation to the Company pursuant to Section 12(a) of this Deposit Agreement.
(n) "Securities Act of 1933" means the United States Securities Act of 1933, as amended.
(o) "Securities Exchange Act of 1934" means the United States Securities Exchange Act of 1934, as amended.
(p) "Shares" mean the ordinary shares of the Company, and shall include the rights to receive Shares specified in paragraph (1) of the form of ADR (Issuance of ADSs).
(q) "Termination Date" means the date this Deposit Agreement is terminated in accordance with paragraph (17) of the form of ADR (Termination), which, for the avoidance of doubt, shall be either (i) the date fixed for termination in a notice of termination as contemplated therein or (ii) a date determined by the Depositary in the case of a termination not requiring prior notice of termination as contemplated in subparagraph (a)(iii) therein.
(r) "Transfer Office" is defined in paragraph (3) of the form of ADR (Transfers, Split-Ups and Combinations of ADRs).
(s) "Withdrawal Order" is defined in Section 6.
2. Form of ADRs.
(a) Direct Registration ADRs. Notwithstanding anything in this Deposit Agreement or in the form of ADR to the contrary, ADSs shall be evidenced by Direct Registration ADRs, unless certificated ADRs are specifically requested by the Holder.
(b) Certificated ADRs. ADRs in certificated form shall be printed or otherwise reproduced at the discretion of the Depositary in accordance with its customary practices in its American depositary receipt business, or at the request of the Company typewritten and photocopied on plain or safety paper, and shall be substantially in the form set forth in the form of ADR, with such changes as may be required by the Depositary or the Company to comply with their obligations hereunder, any applicable law, regulation or usage or to indicate any special limitations or restrictions to which any particular ADRs are subject. ADRs may be issued in denominations of any number of ADSs. ADRs in certificated form shall be executed by the Depositary by the manual or facsimile signature of a duly authorized officer of the Depositary. ADRs in certificated form bearing the manual or facsimile signature of anyone who was at the time of execution a duly authorized officer of the Depositary shall bind the Depositary, notwithstanding that such officer has ceased to hold such office prior to the delivery of such ADRs.
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(c) Binding Effect. Holders of ADRs, and the Beneficial Owners of the ADSs evidenced by such ADRs, shall each be bound by the terms and conditions of this Deposit Agreement and of the form of ADR, regardless of whether such ADRs are Direct Registration ADRs or certificated ADRs.
3. Deposit of Shares.
(a) Requirements. In connection with the deposit of Shares hereunder, the Depositary or the Custodian may require the following in a form satisfactory to it:
(i) a written order ("Delivery Order") directing the Depositary to issue to, or upon the written order of, the person or persons designated in such order a Direct Registration ADR or ADRs evidencing the number of ADSs representing such deposited Shares;
(ii) proper endorsements or duly executed instruments of transfer in respect of such deposited Shares;
(iii) instruments assigning to the Depositary, the Custodian or a nominee of either any distribution on or in respect of such deposited Shares or indemnity therefor; and
(iv) proxies entitling the Custodian to vote such deposited Shares.
(b) Registration of Deposited Securities. As soon as practicable after the Custodian receives Deposited Securities pursuant to any such deposit or pursuant to paragraph (10) (Distributions on Deposited Securities) or (13) (Changes Affecting Deposited Securities) of the form of ADR, the Custodian shall present such Deposited Securities for registration of transfer into the name of the Depositary, the Custodian or a nominee of either, in each case for the benefit of Holders, to the extent such registration is practicable, at the cost and expense of the person making such deposit (or for whose benefit such deposit is made) and shall obtain evidence satisfactory to it of such registration. Deposited Securities shall be held by the Custodian for the account and to the order of the Depositary for the benefit of Holders of ADRs (to the extent not prohibited by law) at such place or places and in such manner as the Depositary shall determine. Notwithstanding anything else contained herein, in the form of ADR and/or in any outstanding ADSs, the Depositary, the Custodian and their respective nominees are intended to be, and shall at all times during the term of this Deposit Agreement be, the record holder(s) only of the Deposited Securities represented by the ADSs for the benefit of the Holders. The Depositary, on its own behalf and on behalf of the Custodian and their respective nominees, disclaims any beneficial ownership interest in the Deposited Securities held on behalf of the Holders.
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(c) Delivery of Deposited Securities. Deposited Securities may be delivered by the Custodian to any person only under the circumstances expressly contemplated in this Deposit Agreement. To the extent that the provisions of or governing the Shares make delivery of certificates therefor impracticable, Shares may be deposited hereunder by such delivery thereof as the Depositary or the Custodian may reasonably accept, including, without limitation, by causing them to be credited to an account maintained by the Custodian for such purpose with the Company or an accredited intermediary, such as a bank, acting as a registrar for the Shares, together with delivery of the documents, payments and Delivery Order referred to herein to the Custodian or the Depositary.
4. Issue of ADRs. At the request, risk and expense of the person depositing Shares or rights to receive Shares, the Depositary may accept such Shares and/or deposits for forwarding to the Custodian and may deliver ADRs at a place other than its office. After any such deposit of Shares, the Custodian shall notify the Depositary of such deposit and of the information contained in any related Delivery Order by letter, first class airmail postage prepaid, or by SWIFT, facsimile transmission or any other method of communication as may be agreed by the Custodian and the Depositary. After receiving such notice from the Custodian, the Depositary, subject to this Deposit Agreement, shall properly issue at the Transfer Office, to or upon the order of any person named in such notice, an ADR or ADRs registered as requested and evidencing the aggregate ADSs to which such person is entitled.
5. Distributions on Deposited Securities. To the extent that the Depositary determines in its discretion that any distribution pursuant to paragraph (10) of the form of ADR (Distributions on Deposited Securities) would not be permissible by applicable law, rule or regulation, or is not otherwise practicable with respect to any or all Holders, the Depositary may in its discretion make such distribution as it so deems practicable, including the distribution of some or all of any Cash (as defined in paragraph (10) of the form of ADR), foreign currency, securities or other property (or appropriate documents evidencing the right to receive some or all of any such Cash, foreign currency, securities or other property) and/or the Depositary may retain and hold some or all of such Cash, foreign currency, securities or other property as Deposited Securities with respect to the applicable Holders' ADRs (without liability for interest thereon or the investment thereof).
To the extent the Depositary determines in its discretion that it would not be permitted by applicable law, rule or regulation, or it would not otherwise be practicable, to convert foreign currency into U.S. dollars and/or distribute U.S. dollars to some or all of the Holders entitled thereto, the Depositary may in its discretion distribute some or all of the foreign currency received by the Depositary as it deems permissible and practicable to, or retain and hold such foreign currency uninvested and without liability for interest thereon for the respective accounts of, the Holders entitled to receive the same.
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To the extent the Depositary retains and holds any Cash, foreign currency, securities or other property as permitted under this Section 5 or paragraph (10) (Distributions on Deposited Securities) of the form of ADR, any and all fees, charges and expenses related to, or arising from, the holding thereof (including, but not limited to those provided in paragraph (7) of the form of ADR (Charges of Depositary)) shall be paid from such Cash, foreign currency, securities or other property, or the net proceeds from the sale thereof, thereby reducing the amount so held hereunder.
6. Withdrawal, Delivery and Transfer of Deposited Securities. In connection with any surrender of ADRs for withdrawal of the Deposited Securities represented by the ADSs evidenced thereby, in addition to the requirements of paragraph (7) of the Form of ADR, the Depositary may require proper endorsement in blank of any certificated ADRs evidencing such ADSs and/or duly executed instruments of transfer of such ADSs in blank, together with the Holder's written order directing the Depositary to cause the Deposited Securities represented by such ADSs to be withdrawn and delivered to, or upon the written order of, any person designated in such order (a "Withdrawal Order").
At the request, risk and expense of the Holder hereof, the Depositary may deliver such Deposited Securities (including any certificates therefor) at a place other than its office. Directions from the Depositary to the Custodian to deliver Deposited Securities shall be given by letter, first class airmail postage prepaid, or by SWIFT, facsimile transmission or any other method of communication as may be agreed by the Custodian and the Depositary. Delivery of Deposited Securities may be made by the delivery of certificates (which, if required by law shall be properly endorsed or accompanied by properly executed instruments of transfer or, if such certificates may be registered, registered in the name of such Holder or as ordered by such Holder in any Withdrawal Order) or by such other means as the Depositary may deem practicable, including, without limitation, by transfer of record ownership thereof to an account designated in the Withdrawal Order maintained either by the Company or an accredited intermediary, such as a bank, acting as a registrar for the Deposited Securities.
The Company agrees to cooperate with the Depositary and to take all actions, and to instruct any registrar and/or transfer agent of the Deposited Securities to take all such actions, as may be requested by the Depositary in writing, or are otherwise necessary or required, to effectuate the withdrawal, delivery and/or transfer of the Deposited Securities. The obligations of the Company set forth in this Section 6 shall survive the termination of this Deposit Agreement until all ADSs issued by the Depositary have been cancelled.
7. Substitution of ADRs. The Depositary shall execute and deliver a new Direct Registration ADR in exchange and substitution for any mutilated certificated ADR upon cancellation thereof or in lieu of and in substitution for such destroyed, lost or stolen certificated ADR, unless the Depositary has notice that such ADR has been acquired by a bona fide purchaser, upon the Holder thereof filing with the Depositary a request for such execution and delivery and a sufficient indemnity bond and satisfying any other reasonable requirements imposed by the Depositary.
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8. Cancellation and Destruction of ADRs; Maintenance of Records. All ADRs surrendered to the Depositary shall be cancelled by the Depositary. The Depositary is authorized to destroy ADRs in certificated form so cancelled in accordance with its customary practices. The Depositary agrees to maintain or cause its agents to maintain records of all ADRs surrendered and Deposited Securities withdrawn under Section 6 hereof and paragraph (2) of the form of ADR (Withdrawal of Deposited Securities), substitute ADRs delivered under Section 7 hereof, and canceled or destroyed ADRs under this Section 8, in keeping with the procedures ordinarily followed by stock transfer agents located in the United States or as required by the laws or regulations governing the Depositary.
9. The Custodian.
(a) Rights of the Depositary. Any Custodian in acting hereunder shall be subject to the directions of the Depositary and shall be responsible solely to it. The Depositary reserves the right to add, replace or remove a Custodian. The Depositary will give prompt notice of any such action, which will be advance notice if practicable. The Depositary may discharge any Custodian at any time upon notice to the Custodian being discharged.
(b) Rights of the Custodian. Any Custodian may resign from its duties hereunder in the manner permitted by any custodial agreement then in effect between the Depositary and the Custodian. After receiving written notice of the Custodian's resignation, the Depositary shall endeavor to appoint a substitute custodian or custodians, if and to the extent the Depositary determines, in its sole discretion, that a new and/or substitute custodian is required. Any such new and/or substitute custodian shall be a Custodian for all purposes hereunder. Any Custodian ceasing to act hereunder as Custodian shall deliver, upon the instruction of the Depositary, all Deposited Securities held by it to a Custodian continuing to act.
Notwithstanding anything to the contrary contained in this Deposit Agreement (including the ADRs) and, subject to the further limitations set forth in paragraph (14) of the form of ADR (Exoneration), the Depositary shall not be responsible for, and shall incur no liability in connection with or arising from, any act or omission to act on the part of the Custodian except to the extent that any Holder has incurred liability directly as a result of the Custodian having (i) committed fraud or willful misconduct in the provision of custodial services to the Depositary or (ii) failed to use reasonable care in the provision of custodial services to the Depositary as determined in accordance with the standards prevailing in the jurisdiction in which the Custodian is located.
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10. Lists of Holders. The Company shall have the right to inspect transfer records of the Depositary and its agents and the ADR Register, take copies thereof and require the Depositary and its agents to supply copies of such portions of such records as the Company may request. The Depositary or its agents shall furnish to the Company promptly upon the written request of the Company, a list of the names, addresses and holdings of ADSs by all Holders as of a date within seven (7) days of the Depositary's receipt of such request.
11. Depositary's Agents. The Depositary may perform its obligations under this Deposit Agreement through any agent appointed by it, provided that the Depositary shall notify the Company of such appointment and shall remain responsible for the performance of such obligations as if no agent were appointed, subject to paragraph (14) of the form of ADR (Exoneration).
12. Resignation and Removal of the Depositary; Appointment of Successor Depositary.
(a) Resignation of the Depositary. The Depositary may at any time resign as Depositary by providing written notice of its election to do so delivered to the Company. Subject to subparagraph (c) below, the Depositary's resignation shall take effect upon the Company's appointment of a successor depositary and such successor depositary's acceptance of its appointment as provided in Section 12(d) below.
(b) Removal of the Depositary. The Depositary may at any time be removed by the Company by providing no less than sixty (60) days' prior written notice of such removal to the Depositary. Subject to subparagraph (c) below, such removal shall take effect on the later of (i) the sixtieth (60th) day after the Removal Notice Date and (ii) the Company's appointment of a successor depositary and such successor depositary's acceptance of its appointment as provided in Section 12(d) below.
(c) If either the Depositary provides notice of its resignation (pursuant to Section 12(a)) or the Company provides notice of the Depositary's removal (pursuant to Section 12(b)), and a successor depositary is not appointed by the sixtieth (60th) day after the Resignation Notice Date or the Removal Notice Date, respectively, the Depositary may terminate this Deposit Agreement and the ADR in the manner set out in paragraph (17) of the form of ADR (Termination) and the provisions of said paragraph (17) shall thereafter govern the Depositary's obligations hereunder.
(d) Appointment of Successor Depositary. If the Depositary provides notice of its resignation pursuant to Section 12(a) above or the Company provides notice of the Depositary's removal pursuant to Section 12(b) above, the Company shall use its best efforts to appoint a successor depositary, which shall be a bank or trust company having an office in the Borough of Manhattan, The City of New York. Every successor depositary shall execute and deliver to its predecessor and to the Company an instrument in writing accepting its appointment hereunder, and thereupon such successor depositary, without any further act or deed, shall become fully vested with all the rights, powers, duties and obligations of its predecessor. The predecessor depositary, only upon payment of all sums due to it and on the written request of the Company, shall (i) execute and deliver an instrument transferring to such successor all rights and powers of such predecessor hereunder (other than its rights to indemnification and fees owing, each of which shall survive any such removal and/or resignation), (ii) duly assign, transfer and deliver all right, title and interest to the Deposited Securities to such successor, and (iii) deliver to such successor a list of the Holders of all outstanding ADRs. Any such successor depositary shall promptly mail notice of its appointment to such Holders. Any bank or trust company into or with which the Depositary may be merged or consolidated, or to which the Depositary shall transfer substantially all its American depositary receipt business, shall be the successor of the Depositary without the execution or filing of any document or any further act.
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13. Reports. On or before the first date on which the Company makes any communication available to holders of Deposited Securities or any securities regulatory authority or stock exchange, by publication or otherwise, that could require, or result in, the Depositary taking, or planning to take, any action under or pursuant to the Deposit Agreement (including, without limitation, any notice of any meeting of owners or holders of Shares or Deposited Securities, or any adjourned meeting of such owners or holders, or solicitation of proxies or consents from such owners or holders, or of the taking of any action in respect of any cash or other distribution or the offering of any rights to such owners or holders, or makes any communication that could reasonably be deemed to require the Depositary to take, or plan to take, action under or pursuant to this Deposit Agreement, by publication or otherwise), the Company shall transmit to the Depositary a copy thereof in English or with an English translation or summary. The Company has delivered to the Depositary, the Custodian and any Transfer Office, a copy of all provisions of or governing the Shares and any other Deposited Securities issued by the Company or any affiliate of the Company and, promptly upon any change thereto, the Company shall deliver to the Depositary, the Custodian and any Transfer Office, a copy (in English or with an English translation) of such provisions as so changed. The Depositary and its agents may rely upon the Company's delivery of all such communications, information and provisions for all purposes of this Deposit Agreement and the Depositary shall have no liability for the accuracy or completeness of any thereof.
14. Additional Shares. The Company agrees with the Depositary that neither the Company nor any company controlling, controlled by or under common control with the Company shall (a) issue (i) additional Shares, (ii) rights to subscribe for Shares, (iii) securities convertible into or exchangeable for Shares or (iv) rights to subscribe for any such securities or (b) deposit any Shares under this Deposit Agreement, except, in each case, under circumstances complying in all respects with the Securities Act of 1933. At the reasonable request of the Depositary where it deems necessary, the Company will furnish the Depositary with legal opinions, in forms and from counsels reasonably acceptable to the Depositary, dealing with such issues requested by the Depositary. The Depositary will not knowingly accept for deposit hereunder any Shares required to be registered under the Securities Act of 1933 unless a registration statement is in effect and will use reasonable efforts to comply with written instructions of the Company not to accept for deposit hereunder any Shares identified in such instructions at such times and under such circumstances as may reasonably be specified in such instructions in order to facilitate the Company's compliance with the securities laws, rules and regulations of the United States, including, but not limited to, the Securities Act of 1933 and the rules and regulations promulgated thereunder.
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15. Indemnification.
(a) Indemnification by the Company. Subject to the limitations set forth in Section 15(c) below, the Company shall indemnify, defend and save harmless each of the Depositary, the Custodian and their respective directors, officers, employees, agents and affiliates against any loss, liability or expense (including reasonable fees and expenses of counsel) that may arise out of acts performed or omitted, in connection with the provisions of this Deposit Agreement and of the ADRs, as the same may be amended, modified or supplemented from time to time in accordance herewith (i) by either the Depositary or a Custodian or their respective directors, officers, employees, agents and affiliates, except for any liability or expense directly arising out of the negligence or willful misconduct of the Depositary or its directors, officers or affiliates acting in their capacities as such hereunder, or (ii) by the Company or any of its directors, officers, employees, agents and affiliates.
The indemnities set forth in the preceding paragraph shall also apply to any liability or expense that may arise out of any misstatement or alleged misstatement or omission or alleged omission in any registration statement, proxy statement, prospectus (or placement memorandum), preliminary prospectus (or preliminary placement memorandum) or other document or report relating to, or arising from the offer, issuance, withdrawal, sale, resale or transfer of ADSs or the deposit, withdrawal, offer, sale, resale or transfer of Shares or any other report filed or furnished by the Company with the Commission, except to the extent any such liability or expense arises out of (i) information relating to the Depositary or its agents (other than the Company), as applicable, furnished in writing by the Depositary expressly for use in any of the foregoing documents and not changed or altered by the Company or any other person (other than the Depositary) or (ii) if such information is provided, the failure by the Depositary to state a material fact therein necessary to make the information provided, in light of the circumstances under which made or provided, not misleading.
(b) Indemnification by the Depositary. Subject to the limitations provided for in Sections 9 above and 15(c) below, the Depositary shall indemnify, defend and save harmless the Company against any direct loss, liability or expense (including reasonable fees and expenses of counsel) incurred by the Company in respect of this Deposit Agreement to the extent such loss, liability or expense is due to the negligence or willful misconduct of the Depositary.
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(c) Special or Consequential Damages and Lost Profits. Notwithstanding any other provision of this Deposit Agreement or the ADRs to the contrary, neither the Depositary nor the Company, nor any of their respective agents shall be liable to the other for any indirect, special, punitive or consequential damages (excluding reasonable fees and expenses of counsel) or lost profits, in each case of any form (collectively, "Special Damages") incurred by any of them, or liable to any other person or entity (including, without limitation, Holders and Beneficial Owners) for any Special Damages, or any fees or expenses of counsel in connection therewith, whether or not foreseeable and regardless of the type of action in which such a claim may be brought; provided, however, that (i) notwithstanding the foregoing and, for the avoidance of doubt, the Depositary and its agents shall be entitled to reasonable legal fees and expenses in defending against any claim for Special Damages and (ii) to the extent Special Damages arise from or out of a claim brought by a third party (including, without limitation, Holders and Beneficial Owners) against the Depositary or any of its agents, the Depositary and its agents shall be entitled to full indemnification from the Company for all such Special Damages, and reasonable fees and expenses of counsel in connection therewith, unless such Special Damages are found to have been a direct result of the gross negligence or willful misconduct of the Depositary.
(d) Notification. Any person seeking indemnification hereunder (an "indemnified person") shall notify the person from whom it is seeking indemnification (the "indemnifying person") of the commencement of any indemnifiable action or claim as promptly as reasonably practical after such indemnified person becomes aware of such commencement (provided that the failure to make such notification shall not affect such indemnified person's rights to indemnification under this Section 15 except and only to the limited extent the indemnifying person is materially prejudiced by such failure through the forfeiture of substantive rights or defenses as a result of such failure; and provided, further, that the failure to notify the indemnifying party shall not relieve the indemnifying party from any liability that it may have to an indemnified party otherwise than under this Section 15). No indemnifying person shall be liable for any settlement of any proceeding effected without its written consent (which consent shall not be unreasonably withheld, conditioned or delayed), but if settled with such indemnifying person's written consent or if there is a final and non-appealable judgment by a court of competent jurisdiction in any such proceeding, the indemnifying person agrees to indemnify and hold harmless each indemnified person from and against any and all losses, claims, damages, liabilities and reasonable legal and other out-of-pocket expenses by reason of such settlement or judgment. No indemnifying person shall, without the prior written consent of any indemnified person, effect any settlement of any pending or threatened proceedings in respect of which indemnity could have been sought hereunder by such indemnified person unless such settlement (i) includes an unconditional release of such indemnified person in form and substance reasonably satisfactory to such indemnified person from all liability or claims that are the subject matter of such proceedings and (ii) does not include any statement as to or any admission of fault, culpability, wrong doing or a failure to act by or on behalf of any indemnified person.
(e) Survival. The obligations set forth in this Section 15 shall survive the termination of this Deposit Agreement and the succession or substitution of any indemnified person.
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16. Notices.
(a) Notice to Holders. Notice to any Holder shall be deemed given when first mailed, first class postage prepaid, to the address of such Holder on the ADR Register or received by such Holder. Failure to notify a Holder or any defect in the notification to a Holder shall not affect the sufficiency of notification to other Holders or to the Beneficial Owners of the ADSs evidenced by the ADRs held by such other Holders. The Depositary's only notification obligations under this Deposit Agreement and the ADRs, other than to the Company as provided herein, shall be to Holders. Notice to a Holder shall be deemed, for all purposes of this Deposit Agreement and the ADRs, to constitute notice to any and all Beneficial Owners of the ADSs evidenced by such Holder's ADRs.
(b) Notice to the Depositary or the Company. Notice to the Depositary or the Company shall be deemed given when first received by it at the address or by electronic transmission to the e-mail address set forth in (i) or (ii), respectively, or at such other address or email address provided by the Depositary or the Company to the other, respectively, in the same manner as notices are required to be provided in this Section 16:
| (i) | JPMorgan Chase Bank, N.A. | ||
| 270 Park Avenue, Floor 8 | |||
| New York, New York 10017 | |||
| Attention: Depositary Receipts Group | |||
| E-mail Address: DR_Global_CSM@jpmorgan.com |
| (ii) | Guardian Metal Resources PLC | ||
| C/O Orana Corporate Llp | |||
| 25 Eccleston Place | |||
| London, United Kingdom | |||
| SW1W 9NF | |||
| Attention: Oliver Friesen, Chief Executive Officer | |||
| E-mail Address: oliver.friesen@guardianmetalresources.com |
Delivery of a notice by means of electronic messaging shall be deemed to be effective at the time of the initiation of the transmission by the sender (as shown on the sender's records) to the email address set forth above, notwithstanding that the intended recipient retrieves the message at a later date, fails to retrieve such message, or fails to receive such notice on account of its failure to maintain the designated e-mail address, its failure to designate a substitute e-mail address or for any other reason.
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17. Counterparts. This Deposit Agreement may be executed in any number of counterparts, each of which shall be deemed an original and all of which shall constitute one instrument. Delivery of an executed signature page of this Deposit Agreement by facsimile or other electronic transmission (including ".pdf", ".tif" or similar format) shall be effective as delivery of a manually executed counterpart hereof.
18. No Third-Party Beneficiaries; Holders and Beneficial Owners as Parties; Binding Effect; Disclaimer of Beneficial Ownership.
(a) This Deposit Agreement is for the exclusive benefit of the Company, the Depositary and the Holders and their respective successors hereunder, and, except to the extent specifically set forth in Section 15 of this Deposit Agreement, shall not give any legal or equitable right, remedy or claim whatsoever to any other person. The Holders and Beneficial Owners from time to time shall be parties to this Deposit Agreement and shall be bound by all of the provisions hereof. A Beneficial Owner shall only be able to exercise any right or receive any benefit hereunder solely through the Holder of the ADR(s) evidencing the ADSs owned by such Beneficial Owner.
(b) The Depositary, on its own behalf and on behalf of the Custodian and their respective nominees, disclaims any beneficial ownership interest in the Deposited Securities held on behalf of the Holders. The ADRs evidencing ADSs representing Deposited Securities do not represent interests in the equity or profits of the Depositary. Instead, the ADSs solely represent interests in the underlying Deposited Securities represented by such ADSs that are passed on to the Holders of such ADSs through the Depositary, as the depositary bank, as provided in this Deposit Agreement.
19. Severability. If any provision contained in this Deposit Agreement or in the ADRs is, or becomes, invalid, illegal or unenforceable in any respect, the remaining provisions contained herein and therein shall in no way be affected thereby.
20. Governing Law; Consent to Jurisdiction.
(a) Governing Law. The Deposit Agreement, the ADSs and the ADRs shall be governed by and construed in accordance with the laws of the State of New York without giving effect to the application of the conflict of law principles thereof.
(b) Claims between the Company and the Depositary. The Company irrevocably agrees that any legal suit, action or proceeding against or involving the Company brought by the Depositary arising out of or based upon this Deposit Agreement, the ADSs, the ADRs or the transactions contemplated herein, therein, hereby or thereby, may be instituted in any state or federal court in New York, New York, and irrevocably waives any objection that it may now or hereafter have to the laying of venue of any such proceeding, and irrevocably submits to the non-exclusive jurisdiction of such courts in any such suit, action or proceeding. The Company also irrevocably agrees that any legal suit, action or proceeding against or involving the Depositary brought by the Company, arising out of or based upon this Deposit Agreement, the ADSs, the ADRs or the transactions contemplated herein, therein, hereby or thereby, may be instituted only in a state or federal court in New York, New York, provided that if the Depositary initiates any suit, action or proceeding in any other jurisdiction in accordance with section 20(d) of this Deposit Agreement, the Company may bring any counter suit, action, proceedings or claims with respect thereto, arising out of, based on, or related to this Deposit Agreement or any agreement entered into connection therewith in such jurisdiction.
13

(c) Claims involving Holders and Beneficial Owners. By holding or owning an ADR or ADS or an interest therein, Holders and Beneficial Owners each irrevocably agree that any legal suit, action or proceeding against or involving Holders or Beneficial Owners brought by the Company or the Depositary, arising out of or based upon this Deposit Agreement, the ADSs, the ADRs or the transactions contemplated herein, therein, hereby or thereby, may be instituted in a state or federal court in New York, New York, and by holding or owning an ADR or ADS or an interest therein each irrevocably waives any objection that it may now or hereafter have to the laying of venue of any such proceeding, and irrevocably submits to the non-exclusive jurisdiction of such courts in any such suit, action or proceeding.
By holding or owning an ADR or ADS or an interest therein, Holders and Beneficial Owners each also irrevocably agree that any legal suit, action or proceeding against or involving the Depositary and/or the Company brought by Holders or Beneficial Owners, arising out of or based upon this Deposit Agreement, the ADSs, the ADRs or the transactions contemplated herein, therein, hereby or thereby, including, without limitation, claims under the Securities Act of 1933, may be instituted only in the United States District Court for the Southern District of New York (or in the state courts of New York County in New York if either (i) the United States District Court for the Southern District of New York lacks subject matter jurisdiction over a particular dispute or (ii) the designation of the United States District Court for the Southern District of New York as the exclusive forum for any particular dispute is, or becomes, invalid, illegal or unenforceable).
(d) Notwithstanding the foregoing or anything in this Deposit Agreement to the contrary, any suit, action or proceeding against the Company based on this Deposit Agreement, the ADSs, the ADRs or the transactions contemplated herein, therein, hereby or thereby, may be instituted by the Depositary in any competent court in England and Wales, the United States and/or any other court of competent jurisdiction.
14

21. Agent for Service.
(a) Appointment. The Company has appointed Golden Metal Resources LLC, 3800 Howard Hughes Parkway STE 1000, Las Vegas, Nevada 89169, United States of America, as its authorized agent (the "Authorized Agent") upon which process may be served in any such suit, action or proceeding arising out of or based on this Deposit Agreement, the ADSs, the ADRs or the transactions contemplated herein, therein, hereby or thereby which may be instituted in any state or federal court in New York, New York by the Depositary or any Holder, and waives any other requirements of or objections to personal jurisdiction with respect thereto. Subject to the Company's rights to replace the Authorized Agent with another entity in the manner required were the Authorized Agent to have resigned, such appointment shall be irrevocable.
(b) Agent for Service of Process. The Company represents and warrants that the Authorized Agent has agreed to act as said agent for service of process, and the Company agrees to take any and all action, including the filing of any and all documents and instruments, that may be necessary to continue such appointment in full force and effect as aforesaid. The Company further hereby irrevocably consents and agrees to the service of any and all legal process, summons, notices and documents in any suit, action or proceeding against the Company, by service by mail of a copy thereof upon the Authorized Agent (whether or not the appointment of such Authorized Agent shall for any reason prove to be ineffective or such Authorized Agent shall fail to accept or acknowledge such service), with a copy mailed to the Company by registered or certified air mail, postage prepaid, to its address provided in Section 16(b) hereof. The Company agrees that the failure of the Authorized Agent to give any notice of such service to it shall not impair or affect in any way the validity of such service or any judgment or award rendered in any suit, action or proceeding based thereon. If, for any reason, the Authorized Agent named above or its successor shall no longer serve as agent of the Company to receive service of process, summons, notices, papers and documents in New York, the Company shall promptly appoint a successor that is a legal entity with offices in New York, New York, so as to serve and will promptly advise the Depositary thereof.
(c) Waiver of Personal Service of Process. In the event the Company fails to continue such designation and appointment in full force and effect, the Company hereby waives personal service of process upon it and consents that any such service of process may be made by certified or registered mail, return receipt requested, directed to the Company at its address last specified for notices hereunder, and service so made shall be deemed completed five (5) days after the same shall have been so mailed.
15

22. Waiver of Immunities. To the extent that the Company or any of its properties, assets or revenues may have or may hereafter be entitled to, or have attributed to it, any right of immunity, on the grounds of sovereignty or otherwise, from any legal action, suit or proceeding from the giving of any relief in any respect thereof, from setoff or counterclaim, from the jurisdiction of any court, from service of process, from attachment upon or prior to judgment, from attachment in aid of execution or judgment, or from execution of judgment, or other legal process or proceeding for the giving of any relief or for the enforcement of any judgment, in any jurisdiction in which proceedings may at any time be commenced, with respect to its obligations, liabilities or other matters under or arising out of or in connection with the Shares or Deposited Securities, the ADSs, the ADRs or this Deposit Agreement, the Company, to the fullest extent permitted by law, hereby irrevocably and unconditionally waives, and agrees not to plead or claim, any such immunity and consents to such relief and enforcement.
23. Waiver of Jury Trial. EACH PARTY TO THIS DEPOSIT AGREEMENT (INCLUDING, FOR AVOIDANCE OF DOUBT, EACH HOLDER AND BENEFICIAL OWNER OF, AND/OR HOLDER OF INTERESTS IN, ADSS OR ADRS) HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY SUIT, ACTION OR PROCEEDING AGAINST THE DEPOSITARY AND/OR THE COMPANY DIRECTLY OR INDIRECTLY ARISING OUT OF, BASED ON OR RELATING IN ANY WAY TO THE SHARES OR OTHER DEPOSITED SECURITIES, THE ADSs OR THE ADRs, THE DEPOSIT AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREIN OR THEREIN, OR THE BREACH HEREOF OR THEREOF (WHETHER BASED ON CONTRACT, TORT, COMMON LAW OR ANY OTHER THEORY), INCLUDING, WITHOUT LIMITATION, ANY SUIT, ACTION, CLAIM OR PROCEEDING UNDER THE UNITED STATES FEDERAL SECURITIES LAWS. No provision of this Deposit Agreement or any ADR is intended to constitute a waiver or limitation of any rights that a Holder or any Beneficial Owner may have under the Securities Act of 1933 or the Securities Exchange Act of 1934, to the extent applicable.
[ Signature page follows ]
16

IN WITNESS WHEREOF, GUARDIAN METAL RESOURCES PLC and JPMORGAN CHASE BANK, N.A. have duly executed this Deposit Agreement as of the day and year first above set forth and all Holders and Beneficial Owners shall become parties hereto upon acceptance by them of ADSs issued in accordance with the terms hereof, or upon acquisition of any beneficial interest therein.
| GUARDIAN METAL RESOURCES PLC | ||
| By: | ||
| Name: | ||
| Title: | ||
| JPMORGAN CHASE BANK, N.A. | ||
| By: | ||
| Name: | ||
| Title: | ||
[Signature Page to Deposit Agreement]

EXHIBIT A
ANNEXED TO AND INCORPORATED IN
DEPOSIT AGREEMENT
[FORM OF FACE OF ADR]
| No. of ADSs: | ||
| ______ | ||
| Number | ||
| Each ADS represents | ||
| [number (x)] Share[s] | ||
| CUSIP: | ||
AMERICAN DEPOSITARY RECEIPT
evidencing
AMERICAN DEPOSITARY SHARES
representing
ORDINARY SHARES
of
GUARDIAN METAL RESOURCES PLC
(Incorporated under the laws of England and Wales)
JPMORGAN CHASE BANK, N.A., a national banking association organized under the laws of the United States of America, as depositary hereunder (in such capacity, the "Depositary"), hereby certifies that _______________________is the registered owner (a "Holder") of _____________ American depositary shares ("ADSs"), each (subject to paragraph (13) (Changes Affecting Deposited Securities)) representing [RATIO] ordinary share[s] (including the rights to receive Shares described in paragraph (1) (Issuance of ADSs), "Shares" and, together with any other securities, cash or property from time to time held by the Depositary in respect or in lieu of deposited Shares, the "Deposited Securities"), of GUARDIAN METAL RESOURCES PLC, a public limited company incorporated under the laws of England and Wales (the "Company"), deposited under the Deposit Agreement, dated as of ______________ __, 2026 (as amended from time to time, the "Deposit Agreement"), among the Company, the Depositary and all Holders and Beneficial Owners from time to time of American Depositary Receipts issued thereunder ("ADRs"), each of whom by accepting an ADR becomes a party thereto. The Deposit Agreement and this ADR (which includes the provisions set forth on the reverse hereof) shall be governed by and construed in accordance with the internal laws of the State of New York without giving effect to the application of the conflict of law principles thereof. All capitalized terms used herein, and not defined herein, shall have the meanings ascribed to such terms in the Deposit Agreement.
A-1

(1) Issuance of ADSs.
(a) Issuance. This ADR is one of the ADRs issued under the Deposit Agreement. Subject to the other provisions hereof, the Depositary may so issue ADRs for delivery at the Transfer Office only against deposit of: (i) Shares in a form satisfactory to the Custodian; or (ii) rights to receive Shares from the Company or any registrar, transfer agent, clearing agent or other entity recording Share ownership or transactions. At the request, risk and expense of the person depositing Shares or rights to receive Shares, the Depositary may accept such Shares and/or deposits for forwarding to the Custodian and may deliver ADRs at a place other than its office. Shares or evidence of rights to receive Shares may be deposited through (x) electronic transfer of such Shares to the account maintained by the Custodian for such purpose at CREST, (y) evidence satisfactory to the Custodian of irrevocable instructions to cause such Shares to be transferred to such account or (z) delivery of the certificates representing such Shares. If use of the CREST book-entry system in connection with the Shares is discontinued at any time for any reason, the Company shall make other book-entry arrangements (if any) that it determines, after consultation with the Depositary, are reasonable.
(b) Lending. In its capacity as Depositary, the Depositary shall not lend Shares or ADSs.
(c) Representations and Warranties of Depositors. Every person depositing Shares under the Deposit Agreement represents and warrants that:
| (i) | such Shares and the certificates therefor are duly authorized, validly issued and outstanding, fully paid, nonassessable and legally obtained by such person, |
| (ii) | all pre-emptive and comparable rights, if any, with respect to such Shares have been validly waived or exercised, |
| (iii) | the person making such deposit is duly authorized so to do, |
| (iv) | the Shares presented for deposit are free and clear of any lien, encumbrance, security interest, charge, mortgage or adverse claim and |
A-2

| (v) | such Shares (A) are not "restricted securities" as such term is defined in Rule 144 under the Securities Act of 1933 ("Restricted Securities") unless at the time of deposit the requirements of paragraphs (c), (e), (f) and (h) of Rule 144 shall not apply and such Shares may be freely transferred and may otherwise be offered and sold freely in the United States or (B) have been registered under the Securities Act of 1933. To the extent the person depositing Shares is an "affiliate" of the Company as such term is defined in Rule 144, the person also represents and warrants that upon the sale of the ADSs, all of the provisions of Rule 144 that enable the Shares to be freely sold (in the form of ADSs) will be fully complied with and, as a result thereof, all of the ADSs issued in respect of such Shares will not be on the sale thereof, Restricted Securities. |
Such representations and warranties shall survive the deposit and withdrawal of Shares and the issuance and cancellation of ADSs in respect thereof and the transfer of such ADSs. If any of the representations or warranties are incorrect in any way, the Company and the Depositary may, at the cost of the breaching Holder (including, without limitation, any Holder acting on behalf of a third party) and/or Beneficial Owner, take any and all actions necessary to correct the consequences of such misrepresentation.
(d) The Depositary may refuse to accept for such deposit any Shares identified by the Company in order to facilitate compliance with the requirements of the securities laws, rules and regulations of the United States, including, without limitation, the Securities Act of 1933 and the rules and regulations made thereunder.
(2) Withdrawal of Deposited Securities. Subject to paragraphs (4) (Certain Limitations to Registration, Transfer etc.), (5) (Liability of Holder or Beneficial Owner for Taxes, Duties and Other Charges) and (7) (Charges of Depositary) and to the provisions of or governing the Deposited Securities (including, without limitation, the Company's governing documents and all applicable laws, rules and regulations), upon surrender of (a) a certificated ADR in a form satisfactory to the Depositary at the Transfer Office or (b) proper instructions and documentation in the case of a Direct Registration ADR, the Holder hereof is entitled to delivery at the Custodian's office (or from the Custodian to the extent dematerialized) of the Deposited Securities at the time represented by the ADSs evidenced by this ADR. If, at any time each ADS represents a fraction of one Share, unless otherwise agreed by the Depositary, ADSs may only be cancelled in multiples of such number of Shares as will permit whole Shares to be delivered. At the request, risk and expense of the Holder hereof, the Depositary may deliver such Deposited Securities (including any certificates therefor) at such other place as may have been requested by the Holder. Notwithstanding any other provision of the Deposit Agreement or this ADR, the withdrawal of Deposited Securities may be restricted only for the reasons set forth in General Instruction I.A.(1) of Form F-6 (as such instructions may be amended from time to time) under the Securities Act of 1933.
A-3

(3) Transfers, Split-Ups and Combinations of ADRs. The Depositary or its agent will keep, at a designated transfer office (the "Transfer Office"), (a) a register (the "ADR Register") for the registration, registration of transfer, combination and split-up of ADRs, and, in the case of Direct Registration ADRs, shall include the Direct Registration System, which at all reasonable times will be open for inspection by Holders and the Company for the purpose of communicating with Holders in the interest of the business of the Company or a matter relating to the Deposit Agreement and (b) facilities for the delivery and receipt of ADRs. The term ADR Register includes the Direct Registration System. Title to this ADR (and to the Deposited Securities represented by the ADSs evidenced hereby), when properly endorsed (in the case of ADRs in certificated form) and/or upon delivery to the Depositary of proper instruments of transfer, is transferable by delivery with the same effect as in the case of negotiable instruments under the laws of the State of New York; provided that the Depositary, notwithstanding any notice to the contrary, may treat the person in whose name this ADR is registered on the ADR Register as the absolute owner hereof for all purposes and neither the Depositary nor the Company will have any obligation or be subject to any liability under the Deposit Agreement or any ADR to any Beneficial Owner, unless such Beneficial Owner is the Holder hereof. Subject to paragraphs (4) (Certain Limitations to Registration, Transfer, etc.) and (5) (Liability of Holder or Beneficial Owner for Taxes, Duties and Other Charges), this ADR is transferable on the ADR Register and may be split into other ADRs or combined with other ADRs into one ADR, evidencing the aggregate number of ADSs surrendered for split-up or combination, by the Holder hereof or by duly authorized attorney upon surrender of this ADR at the Transfer Office properly endorsed (in the case of ADRs in certificated form) or upon delivery to the Depositary of proper instruments of transfer and duly stamped as may be required by applicable law; provided that the Depositary may close the ADR Register (and/or any portion thereof) at any time or from time to time when deemed expedient by it. At the request of a Holder, the Depositary shall, for the purpose of substituting a certificated ADR with a Direct Registration ADR, or vice versa, execute and deliver a certificated ADR or a Direct Registration ADR, as the case may be, for any authorized number of ADSs requested, evidencing the same aggregate number of ADSs as those evidenced by the certificated ADR or Direct Registration ADR, as the case may be, substituted.
(4) Certain Limitations to Registration, Transfer, etc. Prior to the issue, registration, registration of transfer, split-up or combination of any ADR, the delivery of any distribution in respect thereof, or, subject to the last sentence of paragraph (2) (Withdrawal of Deposited Securities), the withdrawal of any Deposited Securities, and from time to time in the case of clause (b)(ii) of this paragraph (4), the Company, the Depositary or the Custodian may require:
(a) payment with respect thereto of (i) any stock transfer or other tax or other governmental charge, (ii) any stock transfer or registration fees in effect for the registration of transfers of Shares or other Deposited Securities upon any applicable register and (iii) any applicable charges as provided in paragraph (7) (Charges of Depositary) of this ADR;
A-4

(b) the production of proof satisfactory to it of (i) the identity of any signatory and genuineness of any signature and (ii) such other information, including without limitation, information as to citizenship, residence, exchange control approval, beneficial or other ownership of, or interest in, any securities, compliance with applicable law, regulations, provisions of or governing Deposited Securities and terms of the Deposit Agreement and this ADR, as it may deem necessary or proper; and
(c) compliance with such regulations as the Depositary may establish consistent with the Deposit Agreement or as the Depositary believes are required, necessary or advisable in order to comply with applicable laws, rules and regulations.
The issuance of ADRs, the acceptance of deposits of Shares, the registration, registration of transfer, split-up or combination of ADRs or, subject to the last sentence of paragraph (2) (Withdrawal of Deposited Securities), the withdrawal and delivery of Deposited Securities may be suspended, generally or in particular instances, when the ADR Register or any register for Deposited Securities is closed or when any such action is deemed required, necessary or advisable by the Depositary for any reason.
(5) Liability of Holder or Beneficial Owner for Taxes, Duties and Other Charges.
(a) Liability for Taxes. If any tax or other governmental charges (including any penalties and/or interest) shall become payable by or on behalf of the Custodian or the Depositary with respect to this ADR, any Deposited Securities represented by the ADSs evidenced hereby or any distribution thereon, such tax or other governmental charge shall be paid by the Holder hereof to the Depositary and by holding or owning, or having held or owned, this ADR or any ADSs evidenced hereby, the Holder and all Beneficial Owners hereof and thereof, and all prior Holders and Beneficial Owners hereof and thereof, jointly and severally, agree to indemnify, defend and save harmless each of the Depositary and its agents in respect of such tax or other governmental charge.
Neither the Depositary, nor any of its agents, shall be liable to Holders or Beneficial Owners of the ADSs and ADRs for failure of any of such Holders or Beneficial Owners to comply with applicable tax laws, rules and/or regulations.
Notwithstanding the Depositary's right to seek payment from current and former Holders and Beneficial Owners, the Holder(s) and Beneficial Owner(s) hereof (and all prior Holder(s) and Beneficial Owner(s) hereof) acknowledge and agree that the Depositary has no obligation to seek payment of amounts owing under this paragraph (5) from any current or former Beneficial Owner.
The Depositary may refuse to effect any registration, registration of transfer, split-up or combination hereof or, subject to the last sentence of paragraph (2) (Withdrawal of Deposited Securities), any withdrawal of such Deposited Securities until such payment is made.
A-5

The Depositary may also deduct from any distributions on or in respect of Deposited Securities, or may sell by public or private sale for the account of the Holder hereof any part or all of such Deposited Securities and may apply such deduction or the proceeds of any such sale in payment of such tax or other governmental charge, the Holder hereof remaining liable for any deficiency, and shall reduce the number of ADSs evidenced hereby to reflect any such sales of Shares. In connection with any distribution to Holders, the Company will remit to the appropriate governmental authority or agency all amounts (if any) required to be withheld and owing to such authority or agency by the Company; and the Depositary and the Custodian will remit to the appropriate governmental authority or agency all amounts (if any) required to be withheld and owing to such authority or agency by the Depositary or the Custodian.
To the extent not prohibited by law, rule, regulation, fiduciary duty, contractual or confidential obligation or otherwise, the Depositary will forward to the Company such information actually in the Depositary's possession from the transfer records maintained by the Depositary in accordance with the Depositary's policies and procedures as the Company may reasonably request in writing to enable the Company to file any reports required to be filed by the Company with governmental authorities or agencies to comply with applicable law; provided, however, for the avoidance of doubt, the Depositary shall have no liability for the accuracy of any such information and shall not be required to incur or become subject to any risk, liability, cost or expense and shall be indemnified by the Company in connection with the foregoing.
If the Depositary determines that any distribution in property other than cash (including Shares or rights) on Deposited Securities is subject to any tax that the Depositary or the Custodian is obligated to withhold, the Depositary may dispose of all or a portion of such property in such amounts and in such manner as the Depositary deems necessary and practicable to pay such taxes, by public or private sale, and the Depositary shall distribute the net proceeds of any such sale or the balance of any such property after deduction of such taxes to the Holders entitled thereto.
(b) Indemnification Related to Taxes. Each Holder and Beneficial Owner agrees to indemnify the Depositary, the Company, the Custodian and any of their respective officers, directors, employees, agents and affiliates against, and hold each of them harmless from, any claims by any governmental authority with respect to taxes, additions to tax, penalties or interest arising out of any refund of taxes, reduced rate of withholding at source or other tax benefit obtained which obligations shall survive any transfer or surrender of ADSs or the termination of the Deposit Agreement.
A-6

(6) Disclosure of Interests.
(a) General. To the extent that the provisions of or governing any Deposited Securities may require disclosure of or impose limits on beneficial or other ownership of, or interest in, Deposited Securities, other Shares and other securities and may provide for blocking transfer, voting or other rights to enforce such disclosure or limits, Holders and Beneficial Owners agree to comply with all such disclosure requirements and ownership limitations and to comply with any reasonable Company instructions in respect thereof. The Company reserves the right to instruct Holders (and through any such Holder, the Beneficial Owners of ADSs evidenced by the ADRs registered in such Holder's name) to deliver their ADSs for cancellation and withdrawal of the Deposited Securities so as to permit the Company to deal directly with the Holder and/or Beneficial Owner thereof as a holder of Shares and Holders and Beneficial Owners agree to comply with such instructions. If reasonably requested by the Company, the Depositary agrees to cooperate and consult with, and provide reasonable assistance to, in each case without risk, liability or expense on the part of the Depositary, the Company in its efforts to inform Holders of the Company's exercise of its rights under this paragraph and on the manner(s) in which the Company may implement such requirements with respect to any Holder; provided, however, for the avoidance of doubt, the Depositary shall be indemnified by the Company in connection with the foregoing.
(b) Jurisdiction Specific. Any summary of the laws, rules and regulations of England and Wales and of the terms of the Company's constituent documents has been provided by the Company solely for the convenience of Holders, Beneficial Owners and the Depositary. While such summaries are believed by the Company to be accurate as of the date of the Deposit Agreement, they are (i) summaries and as such may not include all aspects of the materials summarized as applicable to a Holder or Beneficial Owner, and (ii) provided by the Company as of the date of the Deposit Agreement. The Holder or Beneficial Owner acknowledges that these laws and regulations and the Company's constituent documents may change after the date of the Deposit Agreement. Neither the Depositary nor the Company has any obligation to update any such summaries.
(7) Charges of Depositary.
(a) Rights of the Depositary. The Depositary may charge, and collect from, (i) each person to whom ADSs are issued, including, without limitation, issuances against deposits of Shares, issuances in respect of Share Distributions, Rights and Other Distributions (as such terms are defined in paragraph (10) (Distributions on Deposited Securities)), issuances pursuant to a stock dividend or stock split declared by the Company, or issuances pursuant to a merger, exchange of securities or any other transaction or event affecting the ADSs or the Deposited Securities, and (ii) each person surrendering ADSs for withdrawal of Deposited Securities or whose ADSs are cancelled or reduced for any other reason, a fee of up to U.S.$5.00 for each 100 ADSs (or portion thereof) issued, delivered, reduced, cancelled or surrendered, or upon which a Share Distribution or elective distribution is made or offered (as the case may be). The Depositary may sell (by public or private sale) sufficient securities and property received in respect of Share Distributions, Rights and Other Distributions prior to such deposit to pay such charge.
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(b) Additional Fees, Charges and Expenses by the Depositary. The following additional fees, charges and expenses shall also be incurred by the Holders, the Beneficial Owners, by any party depositing or withdrawing Shares or by any party surrendering ADSs and/or to whom ADSs are issued (including, without limitation, issuances pursuant to a stock dividend or stock split declared by the Company or an exchange of stock regarding the ADSs or the Deposited Securities or a distribution of ADSs pursuant to paragraph (10) (Distributions on Deposited Securities)), whichever is applicable:
| (i) | a fee of up to U.S.$0.05 per ADS held for any Cash distribution made, or for any elective cash/stock dividend offered, pursuant to the Deposit Agreement, |
| (ii) | a fee of up to U.S.$0.05 per ADS held for the direct or indirect distribution of securities (other than ADSs or rights to purchase additional ADSs pursuant to paragraph (10) hereof) or the net cash proceeds from the public or private sale of any such securities, regardless of whether any such distribution and/or sale is made by, for, or received from, or (in each case) on behalf of, the Depositary, the Company and/or any third party (which fee may be assessed against Holders as of a record date set by the Depositary), |
| (iii) | an aggregate fee of up to U.S.$0.05 per ADS per calendar year (or portion thereof) for services performed by the Depositary in administering the ADRs (which fee may be charged on a periodic basis during each calendar year and shall be assessed against Holders as of the record date or record dates set by the Depositary during each calendar year and shall be payable at the sole discretion of the Depositary by billing such Holders or by deducting such charge from one or more cash dividends or other cash distributions), and |
| (iv) | an amount for the reimbursement of such charges and expenses as are incurred by the Depositary and/or any of its agents (including, without limitation, the Custodian, as well as charges and expenses incurred on behalf of Holders in connection with compliance with foreign exchange control regulations or any law or regulation relating to foreign investment) in connection with the servicing of the Shares or other Deposited Securities, the sale of securities (including, without limitation, Deposited Securities), the delivery of Deposited Securities or otherwise in connection with the Depositary's or its Custodian's compliance with applicable law, rule or regulation (which charges and expenses may be assessed on a proportionate basis against Holders as of the record date or dates set by the Depositary and shall be payable at the sole discretion of the Depositary by billing such Holders or by deducting such charge or expense from one or more cash dividends or other cash distributions). |
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(c) Other Obligations, Fees, Charges and Expenses. The Company will pay all other fees, charges and expenses of the Depositary and any agent of the Depositary (except the Custodian) pursuant to agreements from time to time between the Company and the Depositary, except:
| (i) | stock transfer or other taxes and other governmental charges (which are payable by Holders or persons depositing Shares); |
| (ii) | a transaction fee per cancellation request (including any cancellation request made through SWIFT, facsimile transmission or any other method of communication) as disclosed on the "Disclosures" page (or successor page) of www.adr.com (as updated by the Depositary from time to time, "ADR.com") and any applicable delivery expenses (which are payable by such persons or Holders); and |
| (iii) | transfer or registration expenses for the registration or transfer of Deposited Securities on any applicable register in connection with the deposit or withdrawal of Deposited Securities (which are payable by persons depositing Shares or Holders withdrawing Deposited Securities). |
(d) Foreign Exchange Related Matters. To facilitate the administration of various depositary receipt transactions, including disbursement of dividends or other cash distributions and other corporate actions, the Depositary may engage the foreign exchange desk within JPMorgan Chase Bank, N.A. (the "Bank") and/or its affiliates in order to enter into spot foreign exchange transactions to convert foreign currency into U.S. dollars ("FX Transactions"). For certain currencies, FX Transactions are entered into with the Bank or an affiliate, as the case may be, acting in a principal capacity. For other currencies, FX Transactions are routed directly to and managed by an unaffiliated local custodian (or other third-party local liquidity provider), and neither the Bank nor any of its affiliates is a party to such FX Transactions.
The foreign exchange rate applied to an FX Transaction will be either (i) a published benchmark rate, or (ii) a rate determined by a third-party local liquidity provider, in each case plus or minus a spread, as applicable. The Depositary will disclose which foreign exchange rate and spread, if any, apply to such currency on the "Disclosures" page (or successor page) of ADR.com. Such applicable foreign exchange rate and spread may (and neither the Depositary, the Bank nor any of their affiliates is under any obligation to ensure that such rate does not) differ from rates and spreads at which comparable transactions are entered into with other customers or the range of foreign exchange rates and spreads at which the Bank or any of its affiliates enters into foreign exchange transactions in the relevant currency pair on the date of the FX Transaction. Additionally, the timing of execution of an FX Transaction varies according to local market dynamics, which may include regulatory requirements, market hours and liquidity in the foreign exchange market or other factors. Furthermore, the Bank and its affiliates may manage the associated risks of their position in the market in a manner they deem appropriate without regard to the impact of such activities on the Company, the Depositary, Holders or Beneficial Owners. The spread applied does not reflect any gains or losses that may be earned or incurred by the Bank and its affiliates as a result of risk management or other hedging related activity.
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Notwithstanding the foregoing, to the extent the Company provides U.S. dollars to the Depositary, neither the Bank nor any of its affiliates will execute an FX Transaction as set forth herein. In such case, the Depositary will distribute the U.S. dollars received from the Company.
Further details relating to the applicable foreign exchange rate, the applicable spread and the execution of FX Transactions will be provided by the Depositary on ADR.com. The Company, Holders and Beneficial Owners each acknowledge and agree that the terms applicable to FX Transactions disclosed from time to time on ADR.com will apply to any FX Transaction executed pursuant to the Deposit Agreement.
(e) The right of the Depositary to charge and receive payment of fees, charges and expenses as provided above shall survive the termination of the Deposit Agreement. Upon the resignation or removal of the Depositary, such right shall extend for those fees, charges and expenses incurred prior to the effectiveness of such resignation or removal.
(f) Disclosure of Potential Depositary Payments. The Depositary anticipates reimbursing the Company for certain expenses incurred by the Company that are related to the establishment and maintenance of the ADR program upon such terms and conditions as the Company and the Depositary may agree from time to time. The Depositary may make available to the Company a set amount or a portion of the Depositary fees charged in respect of the ADR program or otherwise upon such terms and conditions as the Company and the Depositary may agree from time to time.
(g) Under certain limited circumstances, the Depositary may reduce or waive certain fees, charges and expenses provided herein and in the Deposit Agreement, including, without limitation, those described in this paragraph (7) that would normally be charged on ADSs issued to or at the direction of, or otherwise held by, the Company and/ or certain Holders and Beneficial Owners and holders and beneficial owners of Shares of the Company.
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(8) Available Information. The Deposit Agreement, the provisions of or governing Deposited Securities and any written communications from the Company, which are both received by the Custodian or its nominee as a holder of Deposited Securities and made generally available to the holders of Deposited Securities, are available for inspection by Holders at the offices of the Depositary in the United States, on the Commission's Internet Website or upon request to the Depositary (which request may be refused by the Depositary at its discretion). The Depositary will distribute copies of such communications (or English translations or summaries thereof) to Holders when furnished by the Company.
The Company is subject to the periodic reporting requirements of the Securities Exchange Act of 1934 and accordingly files certain reports with the Commission. These reports can be inspected and retrieved by Holders and Beneficial Owners through the EDGAR system on the Commission's Internet Website located as of the date of the Deposit Agreement at www.sec.gov and can be inspected and copied at the public reference facilities maintained by the Commission, located (as of the date of the Deposit Agreement) at 100 F Street, N.E., Washington, D.C. 20549. Each Holder and Beneficial Owner of an ADR and/or interest therein by so holding or owning an ADR and/or an interest therein, acknowledges and agrees that the Depositary (i) is relying, and may so rely, solely on the Company's representations, warranties, statements, covenants and agreements in this paragraph (8) of the form of ADR (Available Information), and (ii) does not assume any duty or responsibility to determine if the Company is complying with the registration, reporting and other requirements of the Securities Exchange Act of 1934 or to take any action if the Company is not in compliance thereof.
(9) Execution. This ADR shall not be valid for any purpose unless executed by the Depositary by the manual or facsimile signature of a duly authorized officer of the Depositary.
Dated:
| JPMORGAN CHASE BANK, N.A., as Depositary | ||
| By | ||
| Authorized Officer | ||
The Depositary's office is located at 270 Park Avenue, Floor 8, New York, New York 10017.
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[FORM OF REVERSE OF ADR]
(10) Distributions on Deposited Securities; Sales. Subject to paragraphs (4) (Certain Limitations to Registration, Transfer etc.) and (5) (Liability of Holder or Beneficial Owner for Taxes, Duties and other Charges), to the extent practicable, the Depositary will distribute to each Holder entitled thereto on the record date set by the Depositary therefor at such Holder's address shown on the ADR Register, in proportion to the number of Deposited Securities (on which the following distributions on Deposited Securities are received by the Custodian) represented by ADSs evidenced by such Holder's ADRs:
(a) Cash. Any U.S. dollars available to the Depositary resulting from a cash dividend or other cash distribution or the net proceeds of sales of any other distribution or portion thereof authorized in this paragraph (10) ("Cash"), on an averaged or other practicable basis, subject to (i) appropriate adjustments for taxes withheld, (ii) such distribution being permissible or practicable with respect to certain Holders, and (iii) deduction of the Depositary's and/or its agents' fees and expenses in (1) converting any foreign currency to U.S. dollars by sale or in such other manner as the Depositary may determine to the extent that it determines that such conversion may be made on a reasonable basis, (2) transferring foreign currency or U.S. dollars to the United States by such means as the Depositary may determine to the extent that it determines that such transfer may be made on a reasonable basis, (3) obtaining any approval or license of any governmental authority required for such conversion or transfer, which is obtainable at a reasonable cost and within a reasonable time and (4) making any sale by public or private means in any commercially reasonable manner.
To the extent that any of the Deposited Securities is not or shall not be entitled, by reason of its date of issuance, or otherwise, to receive the full amount of such cash dividend, distribution, or net proceeds of sales, the Depositary shall make appropriate adjustments in the amounts distributed to the Holders issued in respect of such Deposited Securities. To the extent the Company or the Depositary shall be required to withhold and does withhold from any cash dividend, distribution or net proceeds from sales in respect of any Deposited Securities an amount on account of taxes, the amount distributed on the ADSs issued in respect of such Deposited Securities shall be reduced accordingly.
To the extent the Depositary determines in its discretion that it would not be permitted by applicable law, rule or regulation, or it would not otherwise be practicable, to convert foreign currency into U.S. dollars and/or distribute such U.S. dollars to any or all of the Holders entitled thereto, the Depositary may in its discretion distribute some or all of the foreign currency received by the Depositary as it deems permissible and practicable to, or retain and hold such foreign currency uninvested and without liability for interest thereon for the respective accounts of, the Holders entitled to receive the same.
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(b) Shares. (i) Additional ADRs evidencing whole ADSs representing any Shares available to the Depositary resulting from a dividend or free distribution on Deposited Securities consisting of Shares (a "Share Distribution") and (ii) U.S. dollars available to it resulting from the net proceeds of public or private sales of Shares received in a Share Distribution, which Shares would give rise to fractional ADSs if additional ADRs were issued therefor, as in the case of Cash.
(c) Rights. (i) Warrants or other instruments in the discretion of the Depositary representing rights to acquire additional ADRs in respect of any rights to subscribe for additional Shares or rights of any nature available to the Depositary as a result of a distribution on Deposited Securities ("Rights"), to the extent that the Company timely furnishes to the Depositary evidence satisfactory to the Depositary that the Depositary may lawfully distribute the same (the Company has no obligation to so furnish such evidence), or (ii) to the extent the Company does not so furnish such evidence and sales of Rights are practicable, any U.S. dollars available to the Depositary from the net proceeds of the public or private sales of Rights as in the case of Cash, or (iii) to the extent the Company does not so furnish such evidence and/or such sales cannot practicably be accomplished by reason of the non-transferability of the Rights, limited markets therefor, their short duration or otherwise, nothing (and any Rights may lapse).
(d) Other Distributions. (i) Securities or property available to the Depositary resulting from any distribution on Deposited Securities other than Cash, Share Distributions and Rights ("Other Distributions"), by any means that the Depositary may deem equitable and practicable, or (ii) to the extent the Depositary deems distribution of such securities or property not to be equitable and practicable, any U.S. dollars available to the Depositary from the net proceeds of public or private sales of Other Distributions as in the case of Cash.
(e) To the extent that the Depositary determines in its discretion that any distribution pursuant to this paragraph (10) (Distributions on Deposited Securities) would not be permissible by applicable law, rule or regulation, or is not otherwise practicable with respect to any or all Holders, the Depositary may in its discretion make such distribution as it so deems permissible and practicable, including the distribution of some or all of any Cash, foreign currency, securities or other property (or appropriate documents evidencing the right to receive some or all of any such Cash, foreign currency, securities or other property), and/or the Depositary may retain and hold some or all of such Cash, foreign currency, securities or other property as Deposited Securities with respect to the applicable Holders' ADRs (without liability for interest thereon or the investment thereof).
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(f) To the extent the Depositary retains and holds any Cash, foreign currency, securities or other property as permitted under this paragraph (10) (Distributions on Deposited Securities), any and all fees, charges and expenses related to, or arising from, the holding thereof (including, but not limited to those provided in paragraph (7) of this form of ADR (Charges of Depositary)) shall be paid from such Cash, foreign currency, securities or other property, or the net proceeds from the sale thereof, thereby reducing the amount so held hereunder.
(g) Sales. In all instances where the Deposit Agreement or the form of ADR refers to a "sale" (or words of similar import) of securities or property, the Depositary may, but shall not be obligated, to effect any such sale unless the securities to be sold are listed and publicly traded on a securities exchange or there is a public market for the property to be sold. To the extent the securities are not so listed and publicly traded or there is no public market for the property so distributed by the Company:
(i) the Depositary shall, in the event the Deposit Agreement is terminated and the Depositary holds Deposited Securities that are not listed and publicly traded or property for which there is no public market after the Termination Date, act in accordance with paragraph (17)(b) of the form of ADR in respect of such securities and property; and
(ii) in the event the Depositary or its Custodian receives (A) an Other Distribution under paragraph (10) consisting of securities or property that are not distributed by the Depositary pursuant to this paragraph (10) or (B) a distribution of Rights that falls under subparagraph (10)(c)(iii) above, the Depositary will not terminate the Deposit Agreement under paragraph (17)(a)(ii)(D) of the form of ADR but, in lieu of termination, the Depositary will, in the case of an Other Distribution, be deemed to have sold the aggregate number of securities and/or property so received for nominal value and shall have no obligation to distribute such securities or any proceeds from the deemed sale thereof to the Holders and, in the case of Rights that fall under subparagraph (10)(c)(iii) above, allow such Rights to lapse.
Furthermore, in the event the Depositary endeavors to make a sale of Shares, other securities or property, such securities and/or property may be sold in a block sale or single lot transaction.
The Depositary reserves the right to utilize a division, branch or affiliate of JPMorgan Chase Bank, N.A. to direct, manage and/or execute any public and/or private sale of securities and/or property hereunder. Such division, branch and/or affiliate may charge the Depositary a fee in connection with such sales, which fee is considered an expense of the Depositary contemplated above and/or under paragraph (7) (Charges of Depositary). All purchases and sales of securities will be handled by the Depositary in accordance with its then current policies, which are currently set forth on the "Disclosures" page (or successor page) of ADR.com, the location and contents of which the Depositary shall be solely responsible for.
(h) Any U.S. dollars available will be paid via wire transfer and/or distributed by checks drawn on a bank in the United States for whole dollars and cents. Fractional cents will be withheld without liability and dealt with by the Depositary in accordance with its then current practices.
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(11) Record Dates. The Depositary may, after consultation with the Company if practicable, fix a record date (which, to the extent applicable, shall be as near as practicable to any corresponding record date set by the Company) for the determination of the Holders who shall be responsible for the fee assessed by the Depositary for administration of the ADR program and for any expenses provided for in paragraph (7) hereof as well as for the determination of the Holders who shall be entitled to receive any distribution on or in respect of Deposited Securities, to give instructions for the exercise of any voting rights, to receive any notice or to act in respect of other matters and only such Holders shall be so entitled or obligated.
(12) Voting of Deposited Securities.
(a) Notice of Any Meeting or Solicitation. As soon as practicable after receipt of notice of any meeting at which the holders of Shares are entitled to vote, or of solicitation of consents or proxies from holders of Shares or other Deposited Securities, the Depositary shall fix the ADS record date in accordance with paragraph (11) above provided that if the Depositary receives a written request from the Company in a timely manner and at least thirty (30) days prior to the date of such vote or meeting, the Depositary shall, at the Company's expense, distribute to Holders a notice (the "Voting Notice") stating (i) final information particular to such vote and meeting and any solicitation materials, (ii) that each Holder on the record date set by the Depositary will, subject to any applicable provisions of the laws of England and Wales, be entitled to instruct the Depositary as to the exercise of the voting rights, if any, pertaining to the Deposited Securities represented by the ADSs evidenced by such Holder's ADRs and (iii) the manner in which such instructions may be given, including instructions to give a discretionary proxy to a person designated by the Company. Each Holder shall be solely responsible for the forwarding of Voting Notices to the Beneficial Owners of ADSs registered in such Holder's name. There is no guarantee that Holders and Beneficial Owners generally or any Holder or Beneficial Owner in particular will receive the notice described above with sufficient time to enable such Holder or Beneficial Owner to return any voting instructions to the Depositary in a timely manner.
(b) Voting of Deposited Securities. Following actual receipt by the ADR department responsible for proxies and voting of Holders' instructions (including, without limitation, instructions of any entity or entities acting on behalf of the nominee for DTC), the Depositary shall, in the manner and on or before the time established by the Depositary for such purpose, endeavor to vote or cause to be voted the Deposited Securities represented by the ADSs evidenced by such Holders' ADRs in accordance with such instructions insofar as practicable and permitted under the provisions of or governing Deposited Securities. The Depositary will not itself exercise any voting discretion in respect of any Deposited Securities.
(c) Alternative Methods of Distributing Materials. Notwithstanding anything contained in the Deposit Agreement or any ADR, the Depositary may, to the extent not prohibited by any law, rule or regulation or by the rules, regulations or requirements of the stock exchange on which the ADSs are listed, in lieu of distribution of the materials provided to the Depositary in connection with any meeting of or solicitation of consents or proxies from holders of Deposited Securities, distribute to the Holders a notice that provides Holders with or otherwise publicizes to Holders instructions on how to retrieve such materials or receive such materials upon request (i.e., by reference to a website containing the materials for retrieval or a contact for requesting copies of the materials). Holders are strongly encouraged to forward their voting instructions as soon as possible. Voting instructions will not be deemed received until such time as the ADR department responsible for proxies and voting has received such instructions, notwithstanding that such instructions may have been physically received by JPMorgan Chase Bank, N.A., as Depositary, prior to such time.
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(d) Manner of Voting. The Depositary has been advised by the Company that under the laws of England and Wales and the Articles of Association of the Company, each as in effect as of the date of the Deposit Agreement:
(i) voting on all resolutions at any meeting of shareholders of the Company is to be conducted on a show of hands, unless a poll is demanded by the shareholders of the Company or is demanded by the chairman of the meeting or is required by the Articles of Association of the Company. A poll may be demanded by (i) the chairman, (ii) not fewer than two shareholders present or in person or by proxy at the meeting and entitled to vote on the resolution, (iii) any shareholder(s) present in person or by proxy at the meeting representing in the aggregate not less than 10% of the total voting rights of all the shareholders having the right to attend and vote on the resolution (excluding any voting rights attaching to treasury shares) or (iv) any shareholders present in person or by proxy at the meeting holding shares in the company conferring a right to vote on the resolution (excluding any voting rights attaching to the treasury shares) being shares on which an aggregate sum has been paid up equal to not less than 10% of the total sum paid up on all the shares conferring that right;
(ii) an ordinary resolution is passed on a show of hands if it is approved by a simple majority (more than 50%) of the votes cast by shareholders present (in person or by proxy) and entitled to vote. If a poll is demanded, an ordinary resolution is passed if it is approved by holders representing a simple majority of the total voting rights of shareholders present, in person or by proxy or in advance, who, being entitled to vote, vote on the resolution; and
(iii) a special resolution requires the affirmative vote of not less than 75% of the votes cast on a show of hands by shareholders present, in person or by proxy, at the meeting and entitled to vote. If a poll is demanded, a special resolution is passed if it is approved by shareholders representing not less than 75% of the total voting rights of shareholders who, being entitled to vote, vote in person, by proxy or in advance.
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(13) Changes Affecting Deposited Securities.
(a) Subject to paragraphs (4) (Certain Limitations to Registration, Transfer etc.) and (5) (Liability of Holder or Beneficial Owner for Taxes, Duties and Other Charges), the Depositary may, in its discretion, and shall if reasonably requested by the Company, amend this ADR or distribute additional or amended ADRs (with or without calling this ADR for exchange) or cash, securities or property on the record date set by the Depositary therefor to reflect any change in par value, split-up, consolidation, cancellation or other reclassification of Deposited Securities, any Share Distribution or Other Distribution not distributed to Holders or any cash, securities or property available to the Depositary in respect of Deposited Securities from (and the Depositary is hereby authorized to surrender any Deposited Securities to any person and, irrespective of whether such Deposited Securities are surrendered or otherwise cancelled by operation of law, rule, regulation or otherwise, to sell by public or private sale any property received in connection with) any recapitalization, reorganization, merger, consolidation, liquidation, receivership, bankruptcy or sale of all or substantially all the assets of the Company.
(b) To the extent the Depositary does not so amend this ADR or make a distribution to Holders to reflect any of the foregoing, or the net proceeds thereof, whatever cash, securities or property results from any of the foregoing shall constitute Deposited Securities and each ADS evidenced by this ADR shall automatically represent its pro rata interest in the Deposited Securities as then constituted.
(c) Promptly upon the occurrence of any of the aforementioned changes affecting Deposited Securities, the Company shall notify the Depositary in writing of such occurrence and as soon as practicable after receipt of such notice from the Company, may instruct the Depositary to give notice thereof, at the Company's expense, to Holders in accordance with the provisions hereof. Upon receipt of such instruction, the Depositary shall give notice to the Holders in accordance with the terms thereof, as soon as reasonably practicable.
(14) Exoneration.
(a) Force Majeure, Limitations on Liability and Obligations. The Depositary, the Company, and each of their respective directors, officers, employees, agents and affiliates and each of them shall:
| (i) | incur or assume no liability (including, without limitation, to Holders or Beneficial Owners) (A) if any present or future law, rule, regulation, fiat, order or decree of England and Wales, the United States or any other country or jurisdiction, or of any governmental or regulatory authority or any securities exchange or market or automated quotation system, the provisions of or governing any Deposited Securities, any present or future provision of the Company's Articles of Association, any act of God, war, terrorism, epidemic, pandemic, nationalization, expropriation, currency restrictions, extraordinary market conditions, work stoppage, strike, civil unrest, revolutions, rebellions, explosions, cyber, ransomware or malware attack, computer failure or circumstance beyond its direct and immediate control shall prevent or delay, or shall cause any of them to be subject to any civil or criminal penalty in connection with, any act which the Deposit Agreement or this ADR provides shall be done or performed by it or them (including, without limitation, voting pursuant to paragraph (12) hereof), or (B) by reason of any non-performance or delay, caused as aforesaid, in the performance of any act or things which by the terms of the Deposit Agreement it is provided shall or may be done or performed or any exercise or failure to exercise any discretion given it in the Deposit Agreement or this ADR (including, without limitation, any failure to determine that any distribution or action may be lawful or reasonably practicable); |
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| (ii) | incur or assume no liability (including, without limitation, to Holders or Beneficial Owners) except to perform its obligations to the extent they are specifically set forth in this ADR and the Deposit Agreement without gross negligence or willful misconduct and the Depositary shall not be a fiduciary or have any fiduciary duty to Holders or Beneficial Owners; |
| (iii) | in the case of the Depositary and its agents, be under no obligation to appear in, prosecute or defend any action, suit or other proceeding in respect of any Deposited Securities, the ADSs or this ADR; |
| (iv) | in the case of the Company and its agents hereunder be under no obligation to appear in, prosecute or defend any action, suit or other proceeding in respect of any Deposited Securities, the ADSs or this ADR, which in its opinion may involve it in expense or liability, unless indemnity satisfactory to it against all expense (including fees and disbursements of counsel) and liability be furnished as often as may be required; and |
| (v) | not be liable (including, without limitation, to Holders or Beneficial Owners) for any action or inaction by it in reliance upon the advice of or information from any legal counsel, any accountant, any person presenting Shares for deposit, any Holder, or any other person believed by it to be competent to give such advice or information and/or, in the case of the Depositary, the Company. |
(b) Insolvency, Liability, etc., of Custodian, Securities Depository, Clearing Agency or Settlement System. The Depositary shall not be responsible for, and shall incur no liability in connection with or arising from, the insolvency of any Custodian that is not a branch or affiliate of JPMorgan Chase Bank, N.A. Notwithstanding anything to the contrary contained in the Deposit Agreement (including the ADRs) and, subject to the further limitations set forth in this paragraph (14), the Depositary shall not be responsible for, and shall incur no liability in connection with or arising from, any act or omission to act on the part of the Custodian except to the extent that any Holder has incurred liability directly as a result of the Custodian having (i) committed fraud or willful misconduct in the provision of custodial services to the Depositary or (ii) failed to use reasonable care in the provision of custodial services to the Depositary as determined in accordance with the standards prevailing in the jurisdiction in which the Custodian is located.
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The Depositary shall not be liable for the acts or omissions made by, or the insolvency of, any securities depository, clearing agency or settlement system.
(c) The Depositary, its agents and the Company may rely and shall be protected in acting upon any written notice, request, direction, instruction or document believed by them to be genuine and to have been signed, presented or given by the proper party or parties.
(d) The Depositary shall be under no obligation to inform Holders or Beneficial Owners about the requirements of the laws, rules or regulations or any changes therein or thereto of England and Wales, the United States or any other country or jurisdiction or of any governmental or regulatory authority or any securities exchange or market or automated quotation system.
(e) The Depositary and its agents will not be responsible for any failure to carry out any instructions to vote any of the Deposited Securities, for the manner in which any voting instructions are given, including instructions to give a discretionary proxy to a person designated by the Company, for the manner in which any vote is cast, including, without limitation, any vote cast by a person to whom the Depositary is instructed to grant a discretionary proxy pursuant to paragraph (12) hereof, or for the effect of any such vote.
(f) The Depositary shall endeavor to effect any sale of securities or other property and any conversion of currency, securities or other property, in each case as is referred to or contemplated in the Deposit Agreement or the form of ADR, in accordance with the Depositary's normal practices and procedures under the circumstances applicable to such sale or conversion, but shall have no liability (in the absence of its own willful default or gross negligence or that of its agents, officers, directors or employees) with respect to the terms of any such sale or conversion, including the price at which such sale or conversion is effected, or if such sale or conversion shall not be practicable, or shall not be believed, deemed or determined to be practicable by the Depositary. Specifically, the Depositary shall not have any liability for the price received in connection with any public or private sale of securities (including, without limitation, for any sale made at a nominal price), the timing thereof or any delay in action or omission to act nor shall it be responsible for any error or delay in action, omission to act, default or negligence on the part of the party so retained in connection with any such sale or proposed sale.
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(g) The Depositary shall not incur any liability in connection with or arising from any failure, inability or refusal by the Company or any other party, including any share registrar, transfer agent or other agent appointed by the Company, the Depositary or any other party, to process any transfer, delivery or distribution of cash, Shares, other securities or other property, including without limitation upon the termination of the Deposit Agreement, or otherwise to comply with any provisions of the Deposit Agreement that are applicable to it.
(h) The Depositary may rely upon instructions from the Company or its counsel in respect of any approval or license required for any currency conversion, transfer or distribution.
(i) The Depositary and its agents may own and deal in any class of securities of the Company and its affiliates and in ADRs.
(j) Notwithstanding anything to the contrary set forth in the Deposit Agreement or an ADR, the Depositary and its agents may fully respond to any and all demands or requests for information maintained by or on its behalf in connection with the Deposit Agreement, any Holder or Holders, any ADR or ADRs or otherwise related hereto or thereto to the extent such information is requested or required by or pursuant to any lawful authority, including without limitation laws, rules, regulations, administrative or judicial process, banking, securities or other regulators.
(k) None of the Depositary, the Custodian or the Company, or any of their respective directors, officers, employees, agents or affiliates shall be liable for the failure by any Holder or Beneficial Owner to obtain the benefits of credits or refunds of non-U.S. tax paid against such Holder's or Beneficial Owner's income tax liability.
(l) The Depositary is under no obligation to provide the Holders and Beneficial Owners, or any of them, with any information about the tax status of the Company. None of the Depositary, the Custodian or the Company, or any of their respective directors, officers, employees, agents and affiliates, shall incur any liability for any tax or tax consequences that may be incurred by Holders or Beneficial Owners on account of their ownership or disposition of the ADRs or ADSs.
(m) The Depositary shall not incur any liability for the content of any information submitted to it by or on behalf of the Company for distribution to the Holders or for any inaccuracy of any translation thereof, for any investment risk associated with acquiring an interest in the Deposited Securities, for the validity or worth of the Deposited Securities, for the credit-worthiness of any third party, for allowing any rights to lapse upon the terms of the Deposit Agreement or for the failure or timeliness of any notice from the Company.
(n) Notwithstanding anything herein or in the Deposit Agreement to the contrary, the Depositary and the Custodian(s) may use third-party delivery services and providers of information regarding matters such as, but not limited to, pricing, proxy voting, corporate actions, class action litigation and other services in connection herewith and the Deposit Agreement, and use local agents to provide services such as, but not limited to, attendance at any meetings of security holders of issuers. Although the Depositary and the Custodian will use reasonable care (and cause their agents to use reasonable care) in the selection and retention of such third-party providers and local agents, they will not be responsible for any errors or omissions made by them in providing the relevant information or services.
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(o) The Depositary shall not be liable for any acts or omissions made by a successor depositary whether in connection with a previous act or omission of the Depositary or in connection with any matter arising wholly after the removal or resignation of the Depositary.
(p) The Company has agreed to indemnify the Depositary and its agents under certain circumstances and the Depositary has agreed to indemnify the Company under certain circumstances.
(q) Notwithstanding any other provision of the Deposit Agreement or this ADR to the contrary, neither the Depositary nor the Company, nor any of their respective agents shall be liable to the other for any indirect Special Damages in any form incurred by any of them, or liable to any other person or entity (including, without limitation, Holders and Beneficial Owners) for any Special Damages, or any fees or expenses of counsel in connection therewith, whether or not foreseeable and regardless of the type of action in which such a claim may be brought; provided, however, that (i) notwithstanding the foregoing and, for the avoidance of doubt, the Depositary and its agents shall be entitled to reasonable legal fees and expenses in defending against any claim for Special Damages and (ii) to the extent Special Damages arise from or out of a claim brought by a third party (including, without limitation, Holders and Beneficial Owners) against the Depositary or any of its agents, the Depositary and its agents shall be entitled to full indemnification from the Company for all such Special Damages, and reasonable fees and expenses of counsel in connection therewith, unless such Special Damages are found to have been a direct result of the gross negligence or willful misconduct of the Depositary.
(r) No provision of the Deposit Agreement or this ADR is intended to constitute a waiver or limitation of any rights which Holders or Beneficial Owners may have under the Securities Act of 1933 or the Securities Exchange Act of 1934, to the extent applicable.
(15) Resignation and Removal of Depositary; the Custodian.
(a) Resignation. The Depositary may at any time resign as Depositary by providing written notice of its election to do so delivered to the Company. Subject to subparagraph (c) below, the Depositary's resignation shall take effect upon the Company's appointment of a successor depositary and such successor depositary's acceptance of its appointment as provided in the Deposit Agreement.
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(b) Removal. The Depositary may at any time be removed by the Company by providing no less than sixty (60) days' prior written notice of such removal to the Depositary. Subject to subparagraph (c) below, such removal shall take effect on the later of (i) the sixtieth (60th) day after the Removal Notice Date and (ii) the Company's appointment of a successor depositary and such successor depositary's acceptance of its appointment as provided in the Deposit Agreement.
(c) If either the Depositary provides notice of its resignation (pursuant to subparagraph (a) above) or the Company provides notice of the Depositary's removal (pursuant to subparagraph (b) above), and a successor depositary is not appointed by the sixtieth (60th) day after the Resignation Notice Date or the Removal Notice Date, respectively, the Depositary may terminate the Deposit Agreement and the ADR in the manner set out in paragraph (17) (Termination) of this ADR and the provisions of said paragraph (17) shall thereafter govern the Depositary's obligations under the Deposit Agreement and the form of ADR.
(d) The Custodian. The Depositary may appoint substitute or additional Custodians in accordance with the terms and conditions of the Deposit Agreement and the term "Custodian" refers to each Custodian or all Custodians as the context requires.
(16) Amendment. Subject to the last sentence of paragraph (2) (Withdrawal of Deposited Securities), the ADRs and the Deposit Agreement may be amended by the Company and the Depositary, provided that any amendment that imposes or increases any fees on a per ADS basis, charges or expenses (other than stock transfer or other taxes and other governmental charges, transfer or registration fees, the transaction fee per cancellation request (including any cancellation request made through SWIFT, facsimile transmission or any other method of communication) described in paragraph (7)(c)(ii) (Charges of Depositary) of the form of ADR, applicable delivery expenses or other such fees, charges or expenses), or that shall otherwise prejudice any substantial existing right of Holders or Beneficial Owners, shall become effective thirty (30) days after notice of such amendment shall have been given to the Holders. Every Holder and Beneficial Owner at the time any amendment to the Deposit Agreement so becomes effective shall be deemed, by continuing to hold such ADR, to consent and agree to such amendment and to be bound by the Deposit Agreement as amended thereby. In no event shall any amendment impair the right of the Holder of any ADR to surrender such ADR and receive the Deposited Securities represented thereby, except in order to comply with mandatory provisions of applicable law.
Any amendments or supplements that (i) are reasonably necessary (as agreed by the Company and the Depositary) in order for (a) the ADSs to be registered on Form F-6 under the Securities Act of 1933 or (b) the ADSs or Shares to be traded solely in electronic book-entry form and (ii) do not in either such case impose or increase any fees or charges to be borne by Holders, shall be deemed not to prejudice any substantial rights of Holders or Beneficial Owners.
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Notwithstanding the foregoing, if any governmental body or regulatory body should adopt new laws, rules or regulations which would require amendment or supplement of the Deposit Agreement or the form of ADR to ensure compliance therewith, the Company and the Depositary may amend or supplement the Deposit Agreement and the ADR at any time in accordance with such changed laws, rules or regulations. Such amendment or supplement to the Deposit Agreement in such circumstances may become effective before a notice of such amendment or supplement is given to Holders or within any other period of time as required for compliance.
Notice of any amendment to the Deposit Agreement or the form of ADRs shall not need to describe in detail the specific amendments effectuated thereby, and failure to describe the specific amendments in any such notice shall not render such notice invalid, provided, however, that, in each such case, the notice given to the Holders identifies a means for Holders and Beneficial Owners to retrieve or receive the text of such amendment (i.e., upon retrieval from the Commission's, the Depositary's or the Company's website or upon request from the Depositary).
(17) Termination.
(a) Termination by the Depositary and the Company.
(i) The Depositary shall, at any time at the written direction of the Company, terminate the Deposit Agreement by mailing notice of such termination to the Holders at least thirty (30) days prior to the Termination Date or by providing such notice by any other means permitted under the Deposit Agreement (including electronic transmission), in each case at least thirty (30) days prior to the Termination Date.
(ii) The Depositary may also terminate the Deposit Agreement by mailing notice of such termination to the Holders at least thirty (30) days prior to the Termination Date if (A) sixty (60) days shall have expired after the Resignation Notice Date and a successor Depositary shall not be operating under the Deposit Agreement, (B) sixty (60) days shall have expired after the Removal Notice Date and a successor Depositary shall not be operating under the Deposit Agreement, (C) the Company is bankrupt, in liquidation proceedings or insolvent, (D) the ADRs are delisted from a "national securities exchange" (that has registered with the Commission under Section 6 of the Securities Exchange Act of 1934) and/or the Shares cease to be listed on an internationally recognized securities exchange, (E) the Company effects (or will effect) a redemption of all or substantially all of the Deposited Securities, or a cash or share distribution representing a return of all or substantially all of the value of the Deposited Securities, (F) there are no Deposited Securities with respect to ADSs remaining, including if the Deposited Securities are cancelled, or the Deposited Securities have been deemed to have no value, or (G) there occurs a merger, consolidation, sale of assets or other transaction as a result of which securities or other property are delivered in exchange for or in lieu of Deposited Securities.
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(iii) Additionally, the Depositary may immediately terminate the Deposit Agreement, without prior notice to the Company, any Holder or Beneficial Owner or any other person if (A) required by any law, rule or regulation relating to sanctions by any governmental authority or body, (B) the Depositary would be subject to liability under or pursuant to any law, rule or regulation, or (C) required by any governmental authority or body, in each case as determined by the Depositary in its reasonable discretion.
(b) Depositary's Obligations.
(i) After the Termination Date, the Depositary and its agents will perform no further acts under the Deposit Agreement and this ADR, except to receive and hold (or sell) distributions on Deposited Securities, deliver Deposited Securities being withdrawn and to take such actions as provided in the next two paragraphs, in each case subject to payment to the Depositary of the applicable fees and expenses provided in paragraph (7) of this Form of ADR (Charges of Depositary).
(ii) After the Termination Date, if the Deposited Securities are listed and publicly traded on a securities exchange and the Depositary believes that it is able, permissible and practicable to sell the Deposited Securities without undue effort, then, the Depositary may endeavor to publicly or privately sell (as long as it may lawfully do so) the Deposited Securities, which sale may be effected in a block sale/single lot transaction and, after the settlement of such sale(s), to the extent legally permissible and practicable, distribute or hold in an account (which may be a segregated or unsegregated account) the net proceeds of such sale(s), less any amounts owing to the Depositary (including, without limitation, cancellation fees), together with any other cash then held by it under the Deposit Agreement, in trust, without liability for interest, for the pro rata benefit of the Holders entitled thereto. If the Depositary sells the Deposited Securities, the Depositary shall be discharged from all, and cease to have any, obligations under the Deposit Agreement and the ADRs after making such sale, except to account for such net proceeds and other cash.
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(iii) However, if the Deposited Securities are not listed and publicly traded on a securities exchange after the Termination Date, or if, for any reason, the Depositary does not sell the Deposited Securities, the Depositary shall use its reasonable efforts to ensure that the ADSs cease to be DTC eligible and that neither DTC nor any of its nominees shall thereafter be a Holder. At such time as the ADSs cease to be DTC eligible and/or neither DTC nor any of its nominees is a Holder, to the extent the Company is not, to the Depositary's knowledge, insolvent or in bankruptcy or liquidation, the Depositary shall:
| (A) | cancel this ADR and all other outstanding ADRs, |
| (B) | request DTC to provide the Depositary with information on those holding ADSs through DTC and, upon receipt thereof, revise the ADR Register to reflect the information provided by DTC, |
| (C) | instruct its Custodian to deliver all Deposited Securities to the Company, a subsidiary or affiliate or registered office provider of the Company (the subsidiary or affiliate or registered office provider being the "Company Representative") or an independent trust company engaged by the Company (the "Trustee") to hold those Deposited Securities in trust for the beneficial owners of the ADRs if the Company is not permitted to hold any of the Deposited Securities under applicable law and/or the Company has directed the Depositary to deliver such Deposited Securities to a Company Representative or Trustee along with a stock transfer form and/or such other instruments of transfer covering such Deposited Securities as are needed under applicable law, in either case referring to the names set forth on the ADR Register, and |
| (D) | provide the Company with a copy of the ADR Register (which copy may be sent by email or by any means permitted under the notice provisions of the Deposit Agreement). |
Upon receipt of any instrument of transfer covering such Deposited Securities and the ADR Register, the Company shall deliver to each person reflected on such ADR Register appropriate documentation to effect the transfer to such persons of the Deposited Securities previously represented by the ADSs evidenced by their ADRs.
To the extent the Depositary reasonably believes that the Company is insolvent, as determined by applicable law, or if the Company is in receivership, has filed for bankruptcy and/or is otherwise in restructuring, administration or liquidation, and in any such case the Deposited Securities are not listed and publicly traded on a securities exchange after the Termination Date, or if, for any reason, the Depositary believes it is not able to or cannot practicably sell the Deposited Securities promptly and without undue effort, the Depositary shall notify the Holders of such and thereafter the Deposited Securities shall be deemed to have no value (and such Holders shall be deemed to have instructed the Depositary that the Deposited Securities have no value). The Depositary may, but shall not be obligated to, and the Holders irrevocably consent and agree that the Depositary may, instruct its Custodian to deliver all Deposited Securities to the Company (acting, as applicable by its administrator, receiver, administrative receiver, liquidator, provisional liquidator, restructuring officer, interim restructuring officer, trustee, controller or other entity overseeing the bankruptcy, insolvency, administration, restructuring or liquidation process) and notify the Company that the Deposited Securities are surrendered for no consideration. The Company shall, subject to applicable law, promptly accept the surrender of the Deposited Securities for no consideration and deliver to the Depositary a written notice confirming (A) the acceptance of the surrender of the Deposited Securities for no consideration and (B) the cancellation of such Deposited Securities. Promptly after notifying the Company that the Deposited Securities are surrendered for no consideration and irrespective of whether the Company has complied with the immediately preceding sentence, the Depositary shall notify Holders that their ADSs have been cancelled with no consideration being payable to Holders.
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Upon the Depositary's compliance with the provisions of this subparagraph (17)(b)(iii), the Depositary and its agents shall be discharged from all, and cease to have any, obligations under the Deposit Agreement and the ADRs.
(c) Company's Obligations. After the Termination Date, the Company shall be discharged from all obligations under the Deposit Agreement except for its obligations under this paragraph (17) and its obligations to the Depositary and its agents.
(18) Appointment; Acknowledgements and Agreements. Each Holder and each Beneficial Owner, upon acceptance of any ADSs or ADRs (or any interest in any of them) issued in accordance with the terms and conditions of the Deposit Agreement shall be deemed for all purposes to (a) be a party to and bound by the terms of the Deposit Agreement and the applicable ADR(s), (b) appoint the Depositary its attorney-in-fact, with full power to delegate, to act on its behalf and to take any and all actions contemplated in the Deposit Agreement and the applicable ADR(s), to adopt any and all procedures necessary to comply with applicable law and to take such action as the Depositary in its sole discretion may deem necessary or appropriate to carry out the purposes of the Deposit Agreement and the applicable ADR(s), the taking of such actions to be the conclusive determinant of the necessity and appropriateness thereof, and (c) acknowledge and agree that (i) nothing in the Deposit Agreement or any ADR shall give rise to a partnership or joint venture among the parties thereto, nor establish a fiduciary or similar relationship among such parties, (ii) the Depositary, its divisions, branches and affiliates, and their respective agents, may from time to time be in the possession of non-public information about the Company, Holders, Beneficial Owners and/or their respective affiliates, (iii) the Depositary and its divisions, branches and affiliates may at any time have multiple banking relationships with the Company, Holders, Beneficial Owners and/or the affiliates of any of them, (iv) the Depositary and its divisions, branches and affiliates may, from time to time, be engaged in transactions in which parties adverse to the Company or the Holders or Beneficial Owners and/or their respective affiliates may have interests, (v) nothing contained in the Deposit Agreement or any ADR(s) shall (A) preclude the Depositary or any of its divisions, branches or affiliates from engaging in any such transactions or establishing or maintaining any such relationships, or (B) obligate the Depositary or any of its divisions, branches or affiliates to disclose any such transactions or relationships or to account for any profit made or payment received in any such transactions or relationships, (vi) the Depositary shall not be deemed to have knowledge of any information held by any branch, division or affiliate of the Depositary and (vii) notice to a Holder shall be deemed, for all purposes of the Deposit Agreement and this ADR, to constitute notice to any and all Beneficial Owners of the ADSs evidenced by such Holder's ADRs. For all purposes under the Deposit Agreement and this ADR, the Holder hereof shall be deemed to have all requisite authority to act on behalf of any and all Beneficial Owners of the ADSs evidenced by this ADR.
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(19) Waiver. EACH PARTY TO THE DEPOSIT AGREEMENT (INCLUDING, FOR AVOIDANCE OF DOUBT, EACH HOLDER AND BENEFICIAL OWNER OF, AND/OR HOLDER OF INTERESTS IN, ADSS OR ADRS) HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY SUIT, ACTION OR PROCEEDING AGAINST THE DEPOSITARY AND/OR THE COMPANY DIRECTLY OR INDIRECTLY ARISING OUT OF, BASED ON OR RELATING IN ANY WAY TO THE SHARES OR OTHER DEPOSITED SECURITIES, THE ADSs OR THE ADRs, THE DEPOSIT AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREIN OR THEREIN, OR THE BREACH HEREOF OR THEREOF (WHETHER BASED ON CONTRACT, TORT, COMMON LAW OR ANY OTHER THEORY), INCLUDING, WITHOUT LIMITATION, ANY SUIT, ACTION, CLAIM OR PROCEEDING UNDER THE UNITED STATES FEDERAL SECURITIES LAWS. No provision of the Deposit Agreement or this ADR is intended to constitute a waiver or limitation of any rights that a Holder or any Beneficial Owner may have under the Securities Act of 1933 or the Securities Exchange Act of 1934, to the extent applicable.
(20) Jurisdiction. By holding or owning an ADR or ADS or an interest therein, Holders and Beneficial Owners each irrevocably agree that any legal suit, action or proceeding against or involving Holders or Beneficial Owners brought by the Company or the Depositary, arising out of or based upon the Deposit Agreement, the ADSs, the ADRs or the transactions contemplated therein, herein, thereby or hereby, may be instituted in a state or federal court in New York, New York, and by holding or owning an ADR or ADS or an interest therein each irrevocably waives any objection that it may now or hereafter have to the laying of venue of any such proceeding, and irrevocably submits to the non-exclusive jurisdiction of such courts in any such suit, action or proceeding.
By holding or owning an ADR or ADS or an interest therein, Holders and Beneficial Owners each also irrevocably agree that any legal suit, action or proceeding against or involving the Depositary and/or the Company brought by Holders or Beneficial Owners, arising out of or based upon the Deposit Agreement, the ADSs, the ADRs or the transactions contemplated therein, herein, thereby or hereby, including, without limitation, claims under the Securities Act of 1933, may be instituted only in the United States District Court for the Southern District of New York (or in the state courts of New York County in New York if either (i) the United States District Court for the Southern District of New York lacks subject matter jurisdiction over a particular dispute or (ii) the designation of the United States District Court for the Southern District of New York as the exclusive forum for any particular dispute is, or becomes, invalid, illegal or unenforceable).
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(21) Elective Distributions in Cash or Shares. Whenever the Company intends to distribute a dividend payable at the election of the holders of Shares in cash or in additional Shares, the Company shall give notice thereof to the Depositary at least thirty (30) days prior to the proposed distribution stating whether or not it wishes such elective distribution to be made available to Holders. Upon receipt of notice indicating that the Company wishes such elective distribution to be made available to Holders, the Depositary shall consult with the Company to determine, and the Company shall assist the Depositary in its determination, whether it is lawful and reasonably practicable to make such elective distribution available to the Holders. The Depositary shall make such elective distribution available to Holders only if (i) the Company shall have timely requested that the elective distribution is available to Holders, (ii) the Depositary shall have determined that such distribution is reasonably practicable and (iii) the Depositary shall have received satisfactory documentation within the terms of Section 14 of the Deposit Agreement including, without limitation, any legal opinions of counsel in any applicable jurisdiction that the Depositary in its reasonable discretion may request, at the expense of the Company. If the above conditions are not satisfied, the Depositary shall, to the extent permitted by law, distribute to the Holders, on the basis of the same determination as is made in the local market in respect of the Shares for which no election is made, either (x) cash or (y) additional ADSs representing such additional Shares. If the above conditions are satisfied, the Depositary shall establish a record date and establish procedures to enable Holders to elect the receipt of the proposed dividend in cash or in additional ADSs. The Company shall assist the Depositary in establishing such procedures to the extent necessary. Nothing herein shall obligate the Depositary to make available to Holders a method to receive the elective dividend in Shares (rather than ADSs). There can be no assurance that Holders or Beneficial Owners generally, or any Holder and/or Beneficial Owner in particular, will be given the opportunity to receive elective distributions on the same terms and conditions as the holders of Shares.
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Exhibit 5.1
26 February 2026
Guardian Metal Resources PLC
c/o Orana Corporate Llp
25 Eccleston Place,
London SW1W 9NF
United Kingdom
| Re: | Guardian Metal Resources PLC |
| Registration Statement on Form F-1 |
Ladies and Gentlemen:
We have acted as English legal adviser to Guardian Metal Resources PLC, a public limited company organised under the laws of England and Wales (the “Company”) , in connection with the preparation of the Company’s registration statement on Form F-1, under the Securities Act of 1933, as amended (the “Securities Act”), initially confidentially submitted by the Company to the Securities and Exchange Commission (the “Commission”) on 17 December 2025, as thereafter confidentially amended on 6 February 2026 and filed publicly with the Commission on the day hereof (collectively, the “Registration Statement”). The Registration Statement relates to the offering and sale of American Depositary Shares (“ADSs”), representing new ordinary shares of the Company, each having a nominal value of £0.01 per share (the “Ordinary Shares”) (the “Offering” and the Ordinary Shares allotted and issued in connection therewith to Guaranty Nominees Ltd (the “Custodian’s Nominee”) of JPMorgan Chase Bank, N.A. (the “Depositary” and “Custodian”), and represented by the ADSs, together with any Ordinary Shares allotted and issued in connection with additional ADSs proposed to be sold pursuant to an over-allotment option (the “Over-Allotment Option”) granted by the Company to the several underwriters (the “Underwriters”) named in Schedule I to the Underwriting Agreement (the “Underwriting Agreement”) to be entered into by and among the Company and the Underwriters (being the “Shares”).
In rendering the opinion set forth herein, we have examined (i) a copy of the Company’s Certificate of Incorporation of a Private Limited Company dated 22 April 2021; (ii) a copy of the Company’s Certificate of Incorporation on Re-Registration of a Private Company as a Public Company dated 8 March 2022; (iii) a copy of the Company’s Certificate of Incorporation on Change of Name, dated 4 July 2024 (iv) a copy of the Articles of Association of the Company filed at Companies House on 8 March 2022; (v) a copy of executed minutes of the Board of Directors of the Company related to the filing of the Registration Statement, the approval and issuance of the Shares and related matters (the “Allotment Minutes”); (vi) the Registration Statement and all exhibits thereto; (vii) the form of Underwriting Agreement; (viii) a certificate executed by an officer of the Company, dated as of the date hereof; (ix) the results of an online search in respect of the Company on the Companies House company information service, including a dissolved company search, made at 6:00 p.m. (London time) on 25 February 2026 (the “Company Search”); and (x) such other records, documents and instruments as we deemed relevant and necessary for purposes of the opinion stated herein.
We have relied upon such certificates of officers of the Company and of public officials and statements and information furnished by officers of the Company with respect to the accuracy of material factual matters contained therein which were not independently established by us. In such examination we have assumed the genuineness of all signatures, the authenticity of all documents submitted to us as originals, the conformity to original documents of all documents submitted to us.
We have not considered, and express no opinion herein as to, the laws of any jurisdiction other than the laws of England and Wales, as currently in effect.
In rendering the opinion set forth herein, we have assumed that, at the time of the issuance of the Shares, (i) the Registration Statement and any amendments thereto (including post-effective amendments) will have become effective and will remain effective; (ii) no stop order of the Commission preventing or suspending the use of the prospectus contained in the Registration Statement will have been issued; (iii) the prospectus contained in the Registration Statement and any required prospectus supplement will have been delivered to the purchaser of the ADSs as required in accordance with applicable law; (iv) the Board of Directors will, at the time of allotment and issue of the Shares, be duly authorised pursuant to sections 551 and 570 or 571 of the Companies Act 2006 (as applicable) to allot and issue the Shares in the number so issued; (v) the Allotment Minutes will not have been modified or rescinded; and (vi) the Underwriting Agreement will have been duly authorised and approved, as applicable, and validly executed and delivered by the parties thereto (other than the Company) and will be enforceable obligations of the parties thereto.
Based upon the foregoing, and subject to the qualifications, assumptions and limitations stated herein, we are of the opinion that upon payment and delivery in accordance with the Underwriting Agreement approved by the Pricing Committee of the Board of Directors of the Company, the Shares underlying the ADSs registered in the name of the Custodian’s Nominee in the register of members of the Company and delivered as described in the Registration Statement have been duly approved and will be validly issued, fully paid, or credited as fully paid, will not be subject to any call for payment of further capital and will be non-assessable.
For the purposes of this opinion, the term “non-assessable” in relation to the Shares, which has no recognised meaning in English law, means that, under the Companies Act 2006, the Articles of Association of the Company and any resolution taken under the Articles of Association of the Company approving the issue of the Shares, no holder of such Shares is liable, by reason solely of being a holder of such Shares, for additional payments or calls for further funds by the Company or any other person.
We hereby consent to the filing of this opinion with the Commission as an exhibit to the Registration Statement. We further consent to the reference to our firm under the caption “Legal Matters” in the prospectus constituting a part of the Registration Statement. In giving this consent, we are not admitting that we are within the category of persons whose consent is required under Section 7 of the Securities Act or the rules or regulations of the Commission.
Very truly yours,
/s/ Haynes and Boone CDG LLP
Exhibit 10.1
Exploration Lease and Option To Purchase Agreement
Tempiute Project
This Exploration Lease and Option to Purchase Agreement Tempiute Project (“Agreement”) is made and entered among Hinkinite Resources LLC, a Utah limited liability company (“Owner”), and Guardian Metal Resources PLC, a United Kingdom corporation (“GMPLC”), and Golden Metal Resources, LLC, a Nevada limited liability company which is the wholly-owned subsidiary of GMPLC (“GMRUS”).
Recitals
A. Owner owns the twelve (12) unpatented lode and placer mining claims and mill sites (collectively the “Claims”) and the ten (10) patented mining claims (collectively the “Patents”) situated in Lincoln County, Nevada, described in Exhibit A attached to and by this reference incorporated in this Agreement (collectively the “Property”).
B. Owner desires to lease and to grant to GMRUS the option to purchase the Property on the terms and conditions of this Agreement.
C. Owner and GMPLC are signatories of a Confidentiality Agreement dated June 23, 2024 and a binding letter of intent dated October 30, 2024 (the “Letter of Intent”) which described the general terms for Owner’s lease and grant to GMPLC of the option to purchase the Property. GMPLC assigned its rights and interests in and under the Letter of Intent to GMRUS and Owner acknowledged and consented to GMRUS’s assignment. The Confidentiality Agreement and the Letter of Intent are superseded by this Agreement.
Now, therefore, in consideration of their mutual promises, the parties agree as follows:
1. Definitions. The following defined terms, wherever used in this Agreement, shall have the meanings described below:
1.1 “Area of Interest” means the lands within the exterior boundaries of the patented mining claims and the unpatented mining claims and mill sites described in Exhibit A and the lands within two (2) miles outside the exterior boundaries of the patented mining claims and the unpatented mining claims and mill sites described in Exhibit A.
1.2 “Business Day” means a day other than a Saturday, Sunday or any other day on which the principal chartered banks located in Reno, Nevada are not open for business.
1.3 "Closing" means the delivery of documents to be executed and delivered by the parties and delivery of the Purchase Price and the consummation of the transactions contemplated under this Agreement as described in Section 5.
1.4 "Closing Date" means the date on which the Closing occurs as provided in Section 5.
1.5 “Deed” means the conveyance to be executed and delivered by Owner to GMRUS on GMRUS’s exercise of the Option and Closing in accordance with Section 5.4.
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1.6 “Effective Date” means the date on which this Agreement is executed by the parties.
1.7 " GMPLC” means Guardian Metal Resources PLC, a United Kingdom corporation, and its successors and assigns.
1.8 “GMRUS” means Golden Metal Resources, LLC, a Nevada limited liability company, and its successors and assigns.
1.9 “Governmental Regulations” means all directives, laws, orders, ordinances, regulations and statutes of any federal, state or local agency, court or office.
1.10 “Industrial Minerals” means sand, gravel, limestone, marble, dolomite (magnesium), silica (quartz), shale, clay, kaolin, alumina, bentonite, barite, talc, gypsum, diatomite, salt, phosphates, potash, pumice, volcanic ash, pozzolana, fluorspar, building stone, landscape products, and gemstones.
1.11 “Lease Year” means each one (1) year period following the Effective Date and each anniversary of the Effective Date.
1.12 “Maiden Resource” means the determination of a mineral resource on the Property of tungsten trioxide (WO3) with a minimum cutoff grade of 0.4% in accordance with either the CIM Definition Standards on Mineral Resources and Mineral Reserves adopted by CIM Council, as amended, or the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves.
1.13 “Minerals” means all minerals and mineral materials except Industrial Minerals, including, without limitation, gold, silver, platinum and platinum group metals, base metals (including, for example, antimony, chromium, cobalt, copper, lead, manganese, mercury, nickel, molybdenum, titanium, tungsten, zinc), lithium, uranium, vanadium, and other metals and mineral materials which are on, in or under the Property.
1.14 “Minimum Payments” means the minimum payments payable by GMRUS in accordance with Section 4.2.
1.15 “Net Smelter Returns” shall have the meaning and be calculated and paid in accordance with Exhibit 1 attached to the Deed which is Exhibit B attached to and by this reference incorporated in this Agreement.
1.16 “Option” means the option and right granted by Owner to GMRUS to purchase the Property in accordance with Section 5.
1.17 “Owner” means Hinkinite Resources LLC, a Nevada limited liability company, and its successors and assigns.
1.18 “Property” means the patented mining claims and the unpatented mining claims and mill sites described in Exhibit A and any unpatented mining claims and mill sites which the parties locate or acquire and any other property rights and interests which the parties acquire in the Area of Interest which become subject to this Agreement pursuant to Section 8.
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1.19 “Royalty” means the production royalty payable by GMRUS to Owner in accordance with Section 4.4.
1.20 “Shares” means ordinary shares in the capital of GMPLC.
2. Lease and Grant of Rights. Owner leases the Property exclusively to GMRUS and grants to GMRUS the rights and privileges described in this Section.
2.1 Lease. Owner grants to GMRUS the exclusive right to enter on and use the Property to explore for and develop Minerals on the Property. GMRUS must exercise the Option to acquire title to the Property before GMRUS commences construction or development of a mine or mine-related facilities or commences mining on the Property.
2.2 Owner Mining License. During the term of this Agreement and after GMRUS’s exercise and closing of the Option, Owner shall have a limited license to explore for and mine Industrial Minerals on the Property at its own cost and risk, subject to GMRUS’s prior and superior right to explore for, develop and mine other Minerals on the Property. Owner shall conduct its exploration and mining in a manner which does not unreasonably interfere with GMRUS’s activities or operations on the Property. Owner shall apply for, obtain and maintain such approvals, consents, licenses and permits as are required for Owner’s exploration and mining and Owner shall comply with Governmental Regulations applicable to Owner’s activities. Owner shall pay all costs, including costs of reclamation and providing financial assurances for reclamation, arising from or relating to Owner’s exploration and mining activities. Owner shall indemnify and insure GMRUS in the manner prescribed in Section 11. If Owner intends to construct any facilities or improvements on the Property for purposes of its exploration or mining activities, before construction begins, GMRUS shall have the right to conduct condemnation drilling on the sites of such facilities. If GMRUS intends to conduct exploration such as drilling at or near the site of Owner’s Industrial Minerals mining operation and determines that Owner’s exploration for and mining of Industrial Minerals may delay, hinder, or interfere with GMRUS’s activities or create any health or safety risk to Owner’s or GMRUS’s personnel or contractors, GMRUS will inform Owner and request that Owner temporarily suspend Owner’s activities for the period of GMRUS’s activities.
2.3 Water Rights. Subject to applicable Governmental Regulations concerning the appropriation and taking of water, GMRUS shall have the right to appropriate and use water, to drill wells for the water on the Property and to lay and maintain all necessary water lines as may be required by GMRUS in its operations on the Property. Owner acknowledges and agrees that any water rights applied for, appropriated, or otherwise acquired by GMRUS for the exploration for, development, or mining of Minerals on the Property or on the other unpatented mining claims leased and owned by GMRUS shall be, and shall remain, the exclusive property of GMRUS.
3. Term. The term of this Agreement shall commence on the Effective Date and shall continue for three (3) years, subject to GMRUS’s right to purchase the Property in accordance with Section 5 and subject to GMRUS’s right to terminate this Agreement in accordance with Section 19 and Owner’s right to terminate this Agreement in accordance with Section 18.
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| 4. | Payments. GMRUS shall make the following payments to Owner: |
4.1 Initial Payment. Within ten (10) Business Days after the Effective Date, GMRUS shall pay Owner Fifty Thousand Dollars ($50,000.00). Owner acknowledges that GMRPLC paid to Owner the sum of Five Thousand Hundred Dollars ($5,000.00) as consideration for the Letter of Intent. These payments shall not be credited against the Purchase Price if GMRUS elects to exercise the Option and shall not be credited against the Royalty Payments payable in accordance with the Deed.
| 4.2 | Minimum Payments. |
4.2.1 During the term of this Agreement, on the date that is six (6) months after the Effective Date and on the like day of each succeeding sixth month until the date that GMRUS delivers notice of its exercise of the Option or this Agreement is otherwise terminated, GMRUS shall pay to Owner a Minimum Payment of Twenty-five Thousand Dollars ($25,000.00). The foregoing Minimum Payments provided in this Section shall be credited against the Purchase Price if GMRUS elects to exercise the Option. GMRUS shall not be obligated to pay the foregoing Minimum Payments after GMRUS’s exercise of the Option and Closing.
4.2.2 Beginning on the fifth anniversary of the effective date of the Deed and on each succeeding anniversary of the effective date of the Deed until GMRUS commences commercial production of Minerals, but not Industrial Minerals, from the Property, GMRUS shall pay Owner a Minimum Payment in the amount of Twenty-five Thousand Dollars ($25,000.00). Each Minimum Payment payable under the Deed shall be an advance payment of the Royalty. The Minimum Payments payable under the Deed shall be credited cumulatively against GMRUS’s Royalty payment obligations under the Deed.
4.3 Initial Share Payment. Within fifteen (15) days after the Effective Date, GMPLC shall issue to Owner 150,000 Shares at a deemed price of $0.431 per Share (the “Initial Share Payment”) determined by using the Bank of England daily exchange rate on the Effective Date. GMPLC and GMRUS will cooperate with Owner to facilitate Owner’s sale the shares issued to Owner in accordance with this Agreement.
Owner shall execute and deliver to GMRUS and GMPLC such accredited investor certificates and other instruments required under applicable United Kingdom and United States securities laws and regulations in respect of GMPLC’s issuance and delivery of the Shares.
By signing this Agreement, Owner acknowledges and agrees and represents to GMPLC and GMRUS that the Shares issued by GMPLC to Owner pursuant to this agreement will be subject to such resale restrictions as may be imposed by applicable securities laws.
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Owner acknowledges that the Shares will be “restricted securities,” as defined in Rule 144 under the United States Securities Act of 1933, as amended (the “1933 Act”), and may only be transferred pursuant to an effective registration statement under the 1933 Act, pursuant to a transaction outside of the United States in accordance with Rule 904 of Regulation S other than 1933 Act or pursuant to a transaction that is exempt from the registration requirements of the 1933 Act. Owner acknowledges that, in addition to any legend required under United Kingdom securities laws, the Shares may bear legends to the foregoing effect as follows:
THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “U.S. SECURITIES ACT”). THESE SECURITIES MAY BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY (A) TO THE COMPANY, (B) OUTSIDE THE UNITED STATES IN COMPLIANCE WITH RULE 904 OF REGULATION S UNDER THE U.S. SECURITIES ACT, (C) IN COMPLIANCE WITH THE EXEMPTION FROM THE REGISTRATION REQUIREMENTS UNDER THE U.S. SECURITIES ACT PROVIDED BY RULE 144 THEREUNDER, IF AVAILABLE, AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS, OR (D) IN A TRANSACTION THAT DOES NOT REQUIRE REGISTRATION UNDER THE U.S. SECURITIES ACT OR ANY APPLICABLE STATE LAWS, AND THE HOLDER HAS, PRIOR TO SGMRUS SALE, FURNISHED TO THE COMPANY AN OPINION OF COUNSEL OR OTHER EVIDENCE OF EXEMPTION, IN EITHER CASE REASONABLY SATISFACTORY TO THE COMPANY. DELIVERY OF THIS CERTIFICATE MAY NOT CONSTITUTE “GOOD DELIVERY” IN SETTLEMENT OF TRANSACTIONS ON STOCK EXCHANGES IN THE UNITED KINGDOM.
Owner understands and acknowledges that GMPLC is not obligated to file and has no present intention of filing with the United States Securities and Exchange Commission or any state securities administrator any registration statement in respect of resales of the Shares in the United States. Owner is solely responsible for compliance with such resale restrictions.
4.4 Production Royalty. GMRUS shall pay to Owner a production royalty (the “Royalty”) based on the Net Smelter Returns from the production and sale of Minerals from the Property. The Royalty percentage rate shall be one and one-half percent (1.5%). The Royalty shall be calculated and paid in accordance with Exhibit 1 attached to the Deed which is Exhibit B attached to this Agreement. The Royalty shall not apply to any fee lands, patented mining claims, unpatented mining claims, mineral rights or other property interests which GMRUS acquires or leases from a third party. The Minimum Payments paid by GMRUS to Owner shall be applied against the Royalty payments.
Owner grants to GMRUS the option and right (the “Royalty Option”) to purchase one-half of the Royalty. The purchase price payable on exercise of the Royalty Option shall be $1,000,000.00. At GMRUS’s option, exercisable in GMRUS’s sole discretion, GMRUS may elect to pay one-half of the Royalty purchase price in Shares at a deemed price per share equal to the 10-day volume weighted average trading price of the Shares on the London Stock Exchange (the “VWAP”) converted from pounds sterling to United States dollars using the Bank of England daily spot exchange rate calculated as of the date that GMRUS provides notice to Optionor of its election to exercise the Royalty Option.
The Royalty Option may be exercised at any time.
GMRUS shall pay the Royalty Option purchase price by wire transfer to an account which Owner designates or, if applicable, by delivery of the Royalty Option purchase price Shares. The closing of GMRUS’s exercise of the Royalty Option shall be completed within thirty (30) days after GMRUS’s delivery of notice of its election to exercise the Royalty Option.
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On GMRUS’s exercise of the first increment of the Royalty Option, the Royalty percentage rate shall be reduced to three-fourths of one percent (0.75%).
The terms of the Royalty Option shall be incorporated in the Deed.
4.5 Bonus Payment. Within five (5) Business Days of GMRUS’s announcement of completion of the Maiden Resource, GMRUS shall pay to Owner as a bonus payment (the “Bonus Payment) the amount equal to $100,000.00 for each 3,100 tons of tungsten trioxide (WO3) in such Maiden Resource, for example, a bonus equal to $1,000,000.00 for a 31,000 ton tungsten trioxide (WO3) Maiden Resource, but in any event not to exceed a maximum Bonus Payment of $2,000,000.00. GMRUS may, in its sole discretion, elect to pay up to fifty percent (50.0%) of the Bonus Payment by delivering to Owner Shares at a deemed price per share equal to the ten-day VWAP price of the Shares the last ten (10) trading days calculated as of the date of the announcement of the Maiden Resource, converted from pounds sterling to United States dollars using the Bank of England daily spot exchange rate as of the date of the announcement. GMRUS must complete the Maiden Resource within three (3) years after the Effective Date and as a condition precedent to GMRUS’s exercise of the Option.
4.6 Method of Payment. GMRUS shall pay all cash payments under this Agreement by wire transfers to an account which Owner designates. GMRUS shall deliver all certificates or other evidence of ownership of any Shares issued pursuant to this Agreement to an address which Owner designates.
5. Option to Purchase. Owner grants to GMRUS the exclusive option and right to acquire ownership of the Property (the “Option”), subject to the Royalty. The purchase price of the Property shall include and be the sum of (a) the initial cash payment pursuant to Section 4.1; (b) the Initial Share Payment; (c) the Minimum Payments which accrue before GMRUS’s delivery of notice of its exercise of the Option; and (d) the Bonus Payment (collectively the “Purchase Price”).
GMRUS may exercise the Option at any time after GMRUS completes the Maiden Resource.
5.1 Notice of Election. If GMRUS elects to exercise the Option, GMRUS shall deliver written notice to Owner. On Owner’s receipt of GMRUS’s notice of exercise of the Option, the parties shall make diligent efforts to close the conveyance of the Property and shall do so within thirty (30) days after GMRUS’s delivery of the notice.
5.2 Transfer Fees and Taxes. If GMRUS exercises the Option, GMRUS shall pay the Bureau of Land Management mining claim transfer fees, the real property transfer taxes, if any, and all recording costs incurred in closing of the Option.
5.3 Payment on Closing. On Closing of the Option, GMRUS shall pay each component of the Purchase Price outstanding on the Closing Date and, if applicable, shall deliver the Shares payable as part of the Bonus Payment.
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5.4 Owner’s Deliveries on Closing. If GMRUS exercises and closes the Option, Owner shall execute and deliver to GMRUS (a) a conveyance of the Property which reserves the Royalty to Owner in the form of the Deed which is Exhibit B attached to this Agreement; (b) a bill of sale of the data, information and permits relating to the Property in the form of Exhibit C attached to this Agreement; (c) a declaration of value or such other statement as is required to be submitted on recording of the Deed; and (d) an affidavit of non-foreign taxpayer status in accordance with Internal Revenue Code Section 1445. GMRUS shall record the Deed and file a conformed copy of the recorded Deed in the Nevada State Office of the Bureau of Land Management. GMRUS shall deliver conformed copies of the recorded Deed and the filed Deed to Owner.
5.5 Effect of Closing. On closing of the Option, GMRUS shall own the Property, subject to (a) the Royalty reserved by Owner; (b) GMRUS’s obligations under the Deed; and (c) the Royalty Option.
6. Compliance With the Law. GMRUS shall, at GMRUS’s sole cost, comply with all Governmental Regulations relating to the condition, use or occupancy of the Property by GMRUS, including but not limited to all exploration and development work performed by GMRUS during the term of this Agreement. GMRUS shall, at its sole cost, promptly comply with all applicable Governmental Regulations regarding reclamation of the Property. Owner agrees to cooperate with GMRUS in GMRUS’s application for governmental licenses, permits and approvals, the costs of which shall be borne by GMRUS.
| 7. | GMRUS’s Work Practices and Reporting. |
| 7.1 | Work Practices. GMRUS shall work the Property in a miner-like fashion. |
7.2 Inspection of Data. During the term of this Agreement, Owner and Owner’s representatives shall have the right to examine and make copies of the technical data regarding the Property in GMRUS’s possession during reasonable business hours and upon prior notice, provided, however, that the rights of Owner to examine such data shall be exercised no more than twice per calendar year and in a manner that does not interfere with the operations of GMRUS.
7.3 Reports. On or before April 1 of each calendar year, GMRUS shall deliver to Owner digital copies of the factual data generated during the preceding calendar year from GMRUS’s activities conducted on the Property, including information about GMRUS’s geological, geochemical and geophysical mapping and surveying of the Property, exploration drilling results, assaying of mineral samples taken from the Property, resource and reserve calculations, and mine modeling.
8. Scope of Agreement. This Agreement shall extend to and include the patented mining claims and the unpatented mining claims and mill sites described Exhibit A of this Agreement (and any amendments or relocations of the unpatented mining claims and mill sites) and the portions of any unpatented mining claims located by the parties which are in the Area of Interest, including any unpatented mining claims amended or located by the parties to fill any fractions or gaps among the unpatented mining claims which constitute the Property and any fractions or gaps among the unpatented mining claims and any fee lands adjacent to or near the unpatented mining claims which constitute the Property. Each party agrees and covenants that this Section shall be binding on such party and its affiliates and any assignee of this Agreement and the affiliates of any such assignee.
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Each party’s obligations under this Section shall apply to any mineral rights, patented mining claims, unpatented mining claims, and other real property interests which such party leases from or purchases from a third party in an arm’s length transaction.
If a party locates any unpatented mining claims or mill sites or acquires any other property interest in the Area of Interest which becomes part of the Property, the parties shall execute and record an amendment of this Agreement which includes such unpatented mining claims and mill sites, and property interests in this Agreement.
9. Liens. GMRUS agrees to pay all indebtedness and liabilities incurred by or for GMRUS arising from or relating to GMRUS’s activities on the Property, except that GMRUS need not discharge or release any such lien, charge or encumbrance so long as GMRUS is contesting the same in good faith, provided that if a judgment is entered which affirms or authorizes foreclosure on the lien, GMRUS promptly, and before foreclosure of the lien, shall pay, post a bond to secure payment of the lien, or otherwise cause the discharge and release of the lien. GMRUS may grant an encumbrance, lien or security interest in GMRUS’s interest under this Agreement for the purpose of securing financing, including financing for the development and operation of a mine on the Property, which financing may be a loan, a Minerals production offtake agreement, a metal streaming agreement or an overriding mineral production royalty.
| 10. | Taxes. |
10.1 Real Property Taxes. Owner shall pay promptly before delinquency all taxes and assessments, general, special, ordinary and extraordinary, that may be levied or assessed during the term of this Agreement upon the Property.
10.2 Personal Property Taxes. Each party shall promptly when due pay all taxes assessed against such party’s personal property, improvements or structures placed or used on the Property.
10.3 Income Taxes. No party shall be liable for any taxes levied on or measured by the other party’s income, net proceeds or payments under this Agreement or received from the production of minerals from the Property.
10.4 Delivery of Tax Notices. If a party receives tax bills or claims which are the other party’s responsibility, such party shall promptly forward them to the other party for payment.
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11. Insurance and Indemnity. GMRUS shall provide, maintain and keep in force comprehensive all risk, public liability insurance against claims for personal injury, including, without limitation, bodily injury, death or property damage occurring on, in or about the Property, such insurance to afford immediate minimum protection to a limit of not less than Two Million Dollars ($2,000,000.00) with respect to personal injury or death to any one or more persons or damage to property. On Owner’s request GMRUS shall furnish to Owner a certificate of all policies of required insurance which shall identify Owner as a named or additional insured. Each policy shall contain a provision that the policy will not be cancelled or materially amended, which terms shall include any reduction in the scope or limits of coverage, without at least fifteen (15) days’ prior written notice to Owner. If GMRUS fails to provide, maintain, keep in force or deliver and furnish to Owner the policies of insurance required under this Section, Owner may, but is not obligated to, procure such insurance or single-interest insurance for such risks covering Owner’s interest and GMRUS shall promptly reimburse Owner for all costs incurred by Owner to obtain the insurance. Owner shall not be liable to GMRUS and GMRUS waives all claims against Owner for injury to or death of any person or damage to or destruction of any personal property or equipment or theft of property occurring on or about the Property or arising from or relating to GMRUS’s business conducted on the Property. GMRUS shall defend, indemnify and hold harmless Owner and its members, officers, directors, agents and employees from and against any and all claims, judgments, damage, demands, losses, expenses, costs or liability arising in connection with injury to person or property from any activity, work, or things done, permitted or suffered by GMRUS or GMRUS’s agents, partners, servants, employees, invitees or contractors on or about the Property, or from any breach or default by GMRUS in the performance of any obligation on the part of GMRUS to be performed under the terms of this Agreement, excluding, however, the negligence of Owner.
| 12. | Property Maintenance. |
12.1 Annual Assessment Work. To the extent required by law, beginning with the annual assessment work period of September 1, 2025, to September 1, 2026, and for each subsequent following annual assessment work year commencing during the term of this Agreement, GMRUS shall perform for the benefit of the Property work of a type customarily deemed applicable as assessment work and of sufficient value to satisfy the annual assessment work requirements of all Governmental Regulations, if any, and shall prepare evidence of the same in form proper for recordation and filing, and shall timely record and file such evidence in the appropriate federal, state and local office as required by applicable federal, state and local laws, regulations and ordinances, provided that if GMRUS elects to terminate this Agreement more than two (2) months before the deadline for performance of annual assessment work for the following annual assessment year, GMRUS shall have no obligation to perform annual assessment work nor to prepare, record or file evidence of the same for the following annual assessment year. GMRUS shall deliver to Owner proof of GMRUS's performance of its obligations under this Section not less than thirty (30) days before the applicable regulatory or statutory deadlines for the required filings and recordings. If GMRUS does not perform its obligations under this Section and Owner incurs costs, including filing and recording fees, to complete the required assessment work, filings and recordings, GMRUS shall reimburse Owner for such costs within ten (10) days after GMRUS's receipt of Owner's invoice for such costs.
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12.2 Federal Mining Claim Maintenance Fees. If under applicable Governmental Regulations federal annual mining claim maintenance fees are required to be paid for the unpatented mining claims which constitute all or part of the Property, beginning with the annual assessment work period of September 1, 2025, to September 1, 2026, GMRUS shall pay the federal annual mining claim maintenance fees and shall execute and record or file, as applicable, proof of payment of the federal annual mining claim maintenance fees and of Owner’s intention to hold the unpatented mining claims which constitute the Property no later than one month before the applicable statutory and regulatory deadline. If GMRUS elects to terminate this Agreement more than two (2) months before the deadline for payment of the federal annual mining claim maintenance fees for the following annual assessment year, GMRUS shall have no obligation to pay the federal annual mining claim maintenance fees for the Property for the following assessment year. If GMRUS does not terminate this Agreement more than two (2) months before the deadline for payment of the federal annual mining claim maintenance fees for the following annual assessment year, GMRUS shall pay the annual maintenance fees for the Property for the following assessment year. GMRUS shall deliver to Owner proof of GMRUS's performance of its obligations under this Section not less than thirty (30) days before the applicable regulatory or statutory deadlines for the required payments, filings and recordings. If GMRUS does not perform its obligations under this Section and Owner incurs costs, including filing and recording fees, to complete the required payments, filings and recordings, GMRUS shall reimburse Owner for such costs within ten (10) days after GMRUS's receipt of Owner's invoice for such costs.
13. Amendment of Mining Laws. The parties acknowledge that legislation for the amendment or repeal of the mining laws of the United States applicable to the unpatented mining claims and mill sites which comprise all or part of the Property has been, and in the future may be, considered by the United States Congress. The parties desire to assure that any and all interests of the parties in the lands subject to the unpatented mining claims and mill sites which comprise all or part of the Property, including any rights or interests acquired in such lands under the mining laws as amended, repealed or superseded, shall be part of the Property and shall be subject to this Agreement. If the mining laws applicable to the unpatented mining claims and mill sites subject to this Agreement are amended, repealed or superseded, the conversion or termination of Owner’s interest in the Property pursuant to such amendment, repeal or supersession of the mining laws shall not be considered a deficiency or defect in Owner’s title in the Property, and GMRUS shall have no right or claim against Owner resulting from the conversion, diminution, or loss of Owner’s interest in and to the Property, except as expressly provided in this Agreement. If pursuant to any amendment or supersession of the mining laws Owner is granted the right to convert its interest in the unpatented mining claims and mill sites comprising the Property to a permit, license, lease, or other right or interest, all converted interests or rights shall be deemed to be part of the Property subject to this Agreement. Upon the grant or issuance of such converted interests or rights, the parties shall execute and deliver an addendum to this Agreement, in recordable form, by which such converted interests or rights are made subject to this Agreement.
| 14. | Relationship of the Parties. |
14.1 No Partnership. This Agreement shall not be deemed to constitute any party, in its capacity as such, the partner, agent or legal representative of any other party, or to create any joint venture, partnership, mining partnership or other partnership relationship between the parties.
14.2 Competition. Except as expressly provided in this Agreement, each party shall have the free and unrestricted right independently to engage in and receive the full benefits of any and all business endeavors of any sort outside the Property or outside the scope of this Agreement, whether or not competitive with the endeavors contemplated under this Agreement, without consultation with or participation of the other party. In particular, without limiting the foregoing, neither party to this Agreement shall have any obligation to the other as to any opportunity to acquire any interest, property or right offered to it outside the scope of this Agreement.
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14.3 Limitation. GMRUS’s performance of its duties and obligations under this Agreement shall not obligate GMRUS to perform any additional services to Owner, nor, except as expressly provided in this Agreement, to conduct or to invest any funds of any nature whatsoever in the exploration of, development or production of minerals on or under the Property. GMRUS may explore, conduct geological, geochemical and geophysical investigations, drill, sample or otherwise explore for or develop Minerals in the manner and to the extent that GMRUS, in its sole discretion, deems advisable. Only the express duties and obligations described in this Agreement are binding on GMRUS and GMRUS shall have no duties or obligations, implied or otherwise, to explore for or develop minerals. Owner acknowledges that GMRUS’s express undertakings under this Agreement and the Minimum Payments are in lieu of any implied duties or obligations.
15. Inspection. Owner or Owner’s duly authorized representatives shall be permitted to enter on the Property and GMRUS’s workings at reasonable times and on five (5) days’ notice to GMRUS for the purpose of inspection, but they shall enter on the Property at their own risk and in such a manner which does not unreasonably hinder, delay or interfere with GMRUS’s operations. If GMRUS is conducting exploration, development or mining during Owner’s inspection, Owner agrees that Owner will comply with all of GMRUS’s safety rules and regulations, including the requirement that Owner and Owner’s representatives be accompanied by GMRUS’s representatives during the inspection.
| 16. | Owner Representations. |
16.1 Owner represents and warrants that: (a) the unpatented mining claims and mill sites described in Exhibit A were properly located in accordance with applicable federal and state laws and regulations; (b) the unpatented mining claims and mill sites are in good standing; (c) record title to the patented mining claims and the unpatented mining claims and mill sites is vested in Owner and Owner has good and marketable title to the Property; and (d) the patented mining claims and the unpatented mining claims and mill sites are free and clear of adverse claims, liens, encumbrances, or royalties created or granted by Owner or any other party. Owner disclaims any representation or warranty concerning the existence or proof of a discovery of locatable minerals on the Property.
16.2 If Owner owns an interest in any part of the Property which is less than the entire and undivided estate in such part of the Property, the Minimum Payments, the Bonus Payment and the Royalty payments payable under the Deed shall be reduced proportionately in accordance with the nature and extent of Owner's interest so that the Minimum Payments and the Royalty payments shall be paid to Owner only in the proportion that Owner's interest bears to the entire and undivided estate in the Property.
16.3 Owner represents and warrants that: (a) Owner has not received notice from any governmental agency or office that any such conditions exist on the property; and (b) to Owner’s knowledge, there have been no releases on the Property of hazardous materials in violation of applicable Governmental Regulations. Owner shall defend, indemnify and hold harmless GMRUS and its officers, directors, agents and employees from and against any and all claims, judgments, damage, demands, losses, expenses, costs or liability arising from or relating to the physical condition of the Property and Owner’s activities and operations on the Property. I have not covered the entire property or had any environmental survey done on it so I am not sure if there are any violations and I do not want to represent that.
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17. Covenants, Warranties and Representations. Each party covenants, warrants and represents for itself as follows:
17.1 Compliance with Laws. That it has complied with all applicable Governmental Regulations of any governmental body, federal, state or local, regarding the terms of and performance of its obligations under this Agreement. Each party shall maintain its standing as a business entity in accordance with the laws of the jurisdiction of its organization.
17.2 No Pending Proceedings. That there are no lawsuits or proceedings pending or threatened which affect its ability to perform the terms of this Agreement.
17.3 Costs. That except as otherwise provided in this Agreement, it shall pay all costs and expenses incurred or to be incurred by it in negotiating and preparing this Agreement and in closing and carrying out the transactions contemplated by this Agreement.
17.4 Brokers. That, except the finder’s fee obligation of GMRPLC to T3 Ventures LLC, it has had no dealings with any agent, broker or finder in connection with this Agreement. Each party shall indemnify, defend and hold each other party harmless from and against any claims that may be asserted through such party that an agent’s, broker’s or finder’s fee is due in connection with this Agreement.
17.5 Financial Practices. “Anti-Money Laundering Laws” means those laws, rules, regulations, orders and sanctions, state and federal, criminal and civil, that (1) limit the use of or seek the forfeiture of proceeds from illegal transactions; (2) limit commercial transactions with designated countries or individuals believed to be terrorists, narcotic dealers or otherwise engaged in activities contrary to the interests of the United States; (3) require identification and documentation of the parties with whom a financial institution conducts business; or (4) are designed to disrupt the flow of funds to terrorist organizations. Anti-Money Laundering Laws specifically include, without limitation, the USA Patriot Act of 2001.
Each party each represents and warrants that such party, the persons or entities that own any interest in such party, and the officers, directors, managers and members of such party are not persons or entities with whom U.S. persons or entities are restricted from doing business under regulations of the Office of Foreign Asset Control (“OFAC”) of the Department of the Treasury (including those named on OFAC’s Specially Designated Nationals and Blocked Persons List) or under any statute, executive order (including Executive Order 13224 (the “Executive Order”) signed on September 24, 2001 and entitled “Blocking Property and Prohibiting Transactions with Person Who Commit, Threaten to Commit, or Support Terrorism”), or other governmental action.
Each party represents and warrants that such party has taken, and shall continue to take at all time following the execution of this Agreement, commercially reasonable actions to ensure that the funds used in connection this Agreement are derived (1) from transactions that do not violate U.S. law or, to the extent such funds originate outside the United States, do not violate the laws of the jurisdiction in which they originated; and (2) from permissible sources under U.S. law or to the extent such funds originate outside the United States, under the laws of the jurisdiction in which they originated.
Each party represents and warrants that such party (1) is not under investigation for, has not been charged with, or has not been convicted of, money laundering, drug trafficking, terrorist-related activities, any crimes which in the United States would be predicate crimes to money laundering, or any violation of any Anti-Money Laundering Laws; (2) has not been assessed civil or criminal penalties under any Anti-Money Laundering Laws; or (3) has not had any of its funds seized or forfeited in any action under any Anti-Money Laundering Laws.
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Notwithstanding anything to the contrary in this Agreement, the parties immediately shall comply with any request or demand for information by any federal law enforcement agency with respect to any violation or suspected violation of the USA Patriot Act of 2001.
18. Termination by Owner. Any failure by GMRUS to perform in any material respect any of its covenants, liabilities, obligations or responsibilities under this Agreement shall be a default. Owner may give GMRUS written notice of a such material default. If a payment default is not remedied by payment in full within fifteen (15) Business Days after GMRUS’s receipt of the notice or any other material default is not remedied within thirty (30) days after GMRUS’s receipt of the notice (which notice shall describe such default in sufficient detail to provide GMRUS the particulars to be cured), provided the default can reasonably be cured within that time, or, if not, if GMRUS has not within that time commenced action to cure the same or does not after such commencement diligently prosecute such action to completion, Owner may terminate this Agreement by delivering further notice (which notice shall describe the default that has not been cured) to GMRUS of Owner’s termination of this Agreement. GMRUS’s failure to complete the Maiden Resource in accordance with Section 4.5 shall be grounds for termination of this Agreement. On termination of this Agreement based on GMRUS’s default, within ten (10) days of the termination date GMRUS shall execute and deliver to Owner a release and termination of this Agreement in form acceptable for recording.
19. Termination by GMRUS. GMRUS may at any time terminate this Agreement by giving advance written notice to Owner. The effective date of termination shall be the effective date of delivery of such notice in accordance with Section 27. If GMRUS terminates this Agreement, GMRUS shall perform all obligations and pay all payments which accrue or become due before the termination date. On expiration of this Agreement or on GMRUS’s termination of this Agreement, within ten (10) days GMRUS shall execute and deliver to Owner a full release and termination of this Agreement in form acceptable for recording.
20. Force Majeure. GMRUS’s obligations under this Agreement, including GMRUS’s obligation to complete the Maiden Resource, but not including GMRUS’s obligations to pay the Minimum Payments and GMRUS’s obligations under Sections 6, 7.3, 9, 10, 11, 12.2, 22, 23, 24 and 25, shall be suspended during the time and to the extent that GMRUS is prevented from compliance, in whole or in part, by war or war conditions (actual or potential), earthquake, fire, flood, pandemic, strike, labor stoppage, accident, riot, unavoidable casualty, act or restraint, present or future, or any lawful authority, statute, act of God, act of public enemy, inability to obtain or delays in obtaining governmental approvals, consents, licenses or permits (including any of the foregoing relating to the change of the use or points of diversion and use of water resources), labor or transportation, or other delays or cause of the same or other character beyond the reasonable control of GMRUS. If GMRUS invokes force majeure, it shall notify Owner in writing within ten (10) days of the force majeure event and shall diligently attempt to cure, end or remediate the force majeure event. GMRUS shall notify Owner in writing within ten (10) days of termination of the force majeure event.
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21. Condemnation of or Withdrawal of Property. If the Property is condemned or taken by a governmental agency or if the federal public lands on which the unpatented mining claims are located are withdrawn from mineral exploration and development, any compensation awards, damages, claims, rights of action, settlement and proceeds of, or on account of, any damage or taking through condemnation or arising from a conveyance in lieu of condemnation or withdrawal shall be paid first to GMRUS as reimbursement for GMRUS’s expenses incurred to explore for and develop Minerals on the Property. GMRUS is authorized, at its option, to commence, appear in and prosecute in its own or Owner’s name any action or proceeding relating to any condemnation and to settle or compromise any claim asserted in any such action or proceeding.
22. Surrender of Property. On expiration or termination of this Agreement, GMRUS shall surrender the Property promptly to Owner and at GMRUS’s sole cost shall remove from the Property all of GMRUS’s buildings, equipment and structures. GMRUS shall reclaim the Property in accordance with all applicable Governmental Regulations. If after expiration or termination of this Agreement GMRUS enters the Property to perform reclamation, GMRUS shall comply with Sections 6, 9, 10 and 11.
23. Data. Promptly following the parties’ execution of this Agreement, Owner shall deliver to GMRUS copies of all of the technical and title data Owner possesses regarding the Property and the Area of Interest. If during the term of this Agreement Owner acquires additional data about the Property, Owner shall promptly deliver copies of such data to GMRUS. Within thirty (30) days following termination of this Agreement, GMRUS shall deliver to Owner copies of the technical data regarding the Property in GMRUS’s possession at the time of termination which before termination GMRUS has not furnished to Owner. On termination of this Agreement, except on GMRUS’s exercise and closing of the Option, title to the data shall vest in Owner and GMRUS shall maintain the confidentiality of the data as provided in Section 24. At Owner’s election, GMRUS shall allow Owner to take possession of GMRUS’s core, cuttings, sample splits, and sample pulps from the Property.
24. Confidentiality. The data and information, including the terms of this Agreement, coming into the parties’ possession by virtue of this Agreement shall be deemed confidential and shall not be disclosed to outside third parties, except as may be required to publicly record or protect title to the Property, to publicly announce and disclose information under Governmental Regulations or under the rules and regulations of any stock exchange on which the stock of a party, or the parent or affiliates of a party, is listed, or to request and obtain the advice of professional advisors. If a party negotiates for a transfer of all or any portion of such party’s interest in the Property or under this Agreement or negotiates to procure financing or loans relating to the Property, in order to facilitate any such negotiations such party shall have the right to furnish information to third parties, provided that each third party to whom the information is disclosed agrees to maintain its confidentiality in the manner provided in this Section.
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| 25. | Assignment. |
25.1 GMRUS’s Assignment. GMRUS shall not assign, convey or sublease (each a “Transfer”) all or any part of its interest in this Agreement or the Property, without, in each case, Owner’s prior written consent, which shall not be delayed or withheld unreasonably, provided that GMRUS may without Owner’s consent make a Transfer to an affiliate or subsidiary or to a joint venture, limited liability company or partnership of which GMRUS is a co-venturer or member. Owner shall have the right to consider the proposed transferee’s financial, legal, operating and technical expertise and history when determining the suitability of the transferee as the lessee under this Agreement. Owner shall respond to GMRUS’s request for consent within twenty (20) days following Owner’s receipt of GMRUS’s request, and if Owner does not timely inform GMRUS that Owner does not consent to the proposed Transfer, Owner shall be deemed to have approved the Transfer. If Owner timely notifies GMRUS that Owner does not consent to the proposed assignment, Owner shall state in detail in Owner’s notice the reasons for denial of consent, and Owner shall provide to GMRUS documentary evidence and information which support the stated reasons. Each transferee of any interest in this Agreement shall execute and deliver an instrument by which the transferee agrees to assume and perform the obligations of the assignor under this Agreement.
25.2 Owner’s Assignment. Owner shall have the right to assign or otherwise transfer all or any part of its interest in this Agreement or the Property. No change in ownership of Owner’s interest in the Property shall affect GMRUS’s obligations under this Agreement unless and until Owner delivers and GMRUS receives copies of the documents which demonstrate the change in ownership of Owner’s interest. Until GMRUS receives Owner’s notice and the documents required to be delivered under this Section, GMRUS may continue to make all payments under this Agreement as if the transfer of Owner’s ownership interest had not occurred. No division or transfer of Owner’s ownership as to all or any part of the Property or the Royalty shall enlarge GMRUS’s obligations or diminish GMRUS’s rights under this Agreement, including the Option and the Royalty Option.
26. Memorandum Agreement and Estoppel Certificate. The parties shall execute and deliver a memorandum of this Agreement. The execution of the memorandum shall not limit, increase or in any manner affect any of the terms of this Agreement or any rights, interests or obligations of the parties. On GMRUS's written request, Owner will execute and deliver to GMRUS an estoppel certificate, in form acceptable to GMRUS, by which Owner confirms that this Agreement is in full force and effect and that there are no defaults by Owner or GMRUS under this Agreement.
27. Notices. Any notices required or authorized to be given by this Agreement shall be in writing and shall be sent either by commercial courier, facsimile, or by certified U.S. mail, postage prepaid and return receipt requested, addressed to the proper party at the address stated below or such address as the party shall have designated to the other parties in accordance with this Section. Such notice shall be effective on the date of receipt by the addressee party, except that any facsimiles received after 5:00 p.m. of the addressee’s local time shall be deemed delivered the next day.
If to Owner: Hinkinite Resources LLC
3438 W 5300 S
Lake Shore, Utah 84660
If to GMPLC and GMRUS:
Golden Metal Resources PLC
Salisbury House, London Wall
London, EC2M 5PS
United Kingdom
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28. Binding Effect of Obligations. This Agreement shall be binding upon and inure to the benefit of the respective parties and their successors or assigns.
29. Entire Agreement. The parties agree that the entire agreement between them is written in this Agreement and in a memorandum of agreement of even date. There are no terms or conditions, express or implied, other than expressly stated in this Agreement. This Agreement supersedes the Letter of Intent. This Agreement may be amended or modified only by a written instrument signed by the parties with the same formality as this Agreement.
30. Governing Law and Forum Selection. This Agreement shall be construed and enforced in accordance with the laws of the State of Nevada. The forum for any action regarding the construction or enforcement of this Agreement shall be the Second Judicial District Court, Washoe County, Reno, Nevada. The prevailing party in any such action shall be entitled to an award of its costs and attorney’s fees incurred in such action.
31. Costs and Expenses. Each party shall pay the costs and expenses incurred by it in connection with this Agreement, including the fees and expenses of its advisors and representatives. If a party brings an action to construe or enforce this Agreement, the prevailing party in the action shall be entitled to recover its reasonable attorneys' fees and costs from the other party.
32. Multiple Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original, but all of which shall constitute the same Agreement.
33. Severability. If any part, term or provision of this Agreement is held by a court of competent jurisdiction to be illegal or in conflict with any Governmental Regulations, the validity of the remaining portions or provisions shall not be affected, and the rights and obligations of the parties shall be construed and enforced as if the Agreement did not contain the particular part, term or provision held to be invalid. The parties have executed this Agreement effective as of the Effective Date.
34. Execution by Guardian Metal Resources PLC GMPLC has executed this Agreement solely in respect of the obligation of GMRUS and GMPLC to deliver or cause the delivery to Owner of the Shares in accordance with Section 4. GMPLC does not assume and shall not be obligated to perform any other obligations of GMRUS under this Agreement.
| Hinkinite Resources LLC | ||
| By | /s/ Bryson Hinkins | |
| Bryson Hinkins, Manager | ||
| Golden Metal Resources, LLC | ||
| By | /s/ Oliver Friesen | |
| Oliver Friesen, Manager | ||
| 16 |
| Guardian Metal Resources PLC | ||
| By | /s/ Oliver Friesen | |
| Oliver Friesen, Chief Executive Officer | ||
| 17 |
| STATE OF UTAH | ) |
| ) ss. | |
| COUNTY OF UTAH | ) |
This Exploration Lease and Option to Purchase Agreement Tempiute Project was acknowledged before me on January 30, 2025, by Bryson Hinkins as Manager of Hinkinite Resources LLC.
| /s/ Alma Yonases Parraga | SEAL |
| Notary Public |
| ) | |
| ) ss. | |
| ) |
This Exploration Lease and Option to Purchase Agreement Tempiute Project was acknowledged before me on January 28, 2025, by Oliver Friesen, Manager of Golden Metal Resources, LLC and Chief Executive Officer of Guardian Metal Resources PLC
| /s/ Charles Drostan Guthrie | SEAL |
| Notary Public | |
| My commission does not expire. |
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Exhibit A
Description of Unpatented Mining Claims and Mill Sites
Twelve (12) unpatented lode mining claims, unpatented placer mining claims, and unpatented mill sites situated in Section 25, 26, and 36, T. 3 S., R. 56 E., Section 31, T. 3 S., R. 57 E., Section 1, T. 4 S., R. 56 E., and Section 6, T. 4 S., R. 57 E., MDM, in Lincoln County, Nevada:
| County | BLM | |||
| Location | ||||
| Claim Name | Date | Claim Type | Document No. | Serial No. |
| EAST TAIL | 7/14/2021 | Placer (20 acres) | 2021-160826 | NV105256171 |
| WEST TAIL | 7/14/2021 | Placer (20 acres) | 2021-160825 | NV105256172 |
| KOYEN | 10/18/2023 | Lode | 2023-166201 | NV106348588 |
| EVA | 10/18/2023 | Lode | 2023-166203 | NV106348589 |
| MOODY | 10/18/2023 | Lode | 2023-166202 | NV106348590 |
| BLACK DOG | 10/18/2023 | Lode | 2023-166200 | NV106348591 |
| TUNG MILL 2 | 10/18/2023 | Mill Site | 2023-166193 | NV106348592 |
| TUNG MILL 4 | 10/18/2023 | Mill Site | 2023-166194 | NV106348593 |
| TUNG MILL 6 | 10/18/2023 | Mill Site | 2023-166195 | NV106348594 |
| TUNG MILL 1 | 10/18/2023 | Mill Site | 2023-166196 | NV106348595 |
| TUNG MILL 3 | 10/18/2023 | Mill Site | 2023-166197 | NV106348596 |
| TUNG MILL 5 | 10/18/2023 | Mill Site | 2023-166198 | NV106348597 |
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Description of Patented Mining Claims
Ten (10) patented lode mining claims situated in Section 25, 26, and 36, T. 3 S., R. 56 E., Section 31, T. 3 S., R. 57 E., Section 1, T. 4 S., R. 56 E., and Section 6, T. 4 S., R. 57 E., MDM, in Lincoln County, Nevada:
| Mineral Survey | |||
| # | Claim Name | No. | Patent No. |
| 1 | Dome | 4760 | 1118478 |
| 2 | Townsite | 4760 | 1118478 |
| 3 | Townsite No. 1 | 4760 | 1118478 |
| 4 | Townsite No. 2 | 4760 | 1118478 |
| 5 | Townsite No. 5 | 4760 | 1118478 |
| 6 | Grubstake No. 2 | 4760 | 1118478 |
| 7 | Scheelite | 4760 | 1118478 |
| 8 | Scheelite No. 1 | 4760 | 1118478 |
| 9 | Scheelite No. 2 | 4760 | 1118478 |
| 10 | Lime Cap | 4760 | 1118478 |
The patented lode mining claims are identified by the Lincoln County Assessor’s Office as Assessor’s Parcel No. 009-012-47.
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Exhibit B
Deed With Reservation of Royalty
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Assessor’s Parcel Nos. – see Exhibit A
Recorded at the request of
and when recorded and return and
send tax statements to:
Golden Metal Resources, LLC
[insert address on execution date]
The undersigned affirms that this document does not
contain the personal
information of any person.
Deed With Reservation of Royalty
Tempiute Project
This Deed With Reservation of Royalty Tempiute Project (“Deed”) is made by Hinkinite Resources LLC, a Utah limited liability company (“Grantor”), in favor of and to Golden Metal Resources, LLC, a Nevada Corporation (“GMRUS”).
Recitals
A. Grantor and GMRUS are parties to the Exploration Lease and Option to Purchase Agreement Tempiute Project dated January _____, 2025 (the “Lease Agreement”), concerning the patented mining claim and unpatented mining claims and mill sites situated in Lincoln County, Nevada, more particularly described in Exhibit A attached to and by this reference incorporated in this Deed (collectively the “Property”).
B. Grantor and GMRUS have closed the purchase and sale of the Property in accordance with the Agreement.
In consideration of the parties’ rights and obligations under the Agreement, the parties agree as follows:
1. Deed and Reservation. Grantor conveys, grants, sells and transfers to GMRUS, and its assigns and successors forever, the Property and all of Grantor’s right, title and interest in the Property and all improvements on the Property, including after acquired title, except and subject to Grantor’s reserved mining license, Grantor’s reserved Royalty and the parties’ rights and obligations under this Deed.
Grantor reserves and shall have a limited license to explore for and mine Industrial Minerals on the Property at Grantor’s cost and risk, subject to GMRUS’s prior and superior right to explore for, develop and mine other Minerals on the Property. Grantor shall conduct its exploration and mining in a manner which does not unreasonably interfere with GMRUS’s activities or operations on the Property. Grantor shall apply for, obtain and maintain such approvals, consents, licenses and permits as are required for Grantor’s exploration and mining and Grantor shall comply with Governmental Regulations applicable to Grantor’s activities. Grantor shall pay all costs, including costs of reclamation and providing financial assurances for reclamation, arising from or relating to Grantor’s exploration and mining activities. Grantor shall indemnify and insure GMRUS in the manner prescribed in Section 3. If Grantor intends to construct any facilities or improvements on the Property for purposes of its exploration or mining activities, before construction begins, GMRUS shall have the right to conduct condemnation drilling on the sites of such facilities. If GMRUS intends to conduct exploration such as drilling at or near the site of Grantor’s Industrial Minerals mining operation and determines that Grantor’s exploration for and mining of Industrial Minerals may delay, hinder, or interfere with GMRUS’s activities or create any health or safety risk to Grantor’s or GMRUS’s personnel or contractors, GMRUS will inform Grantor and request that Grantor temporarily suspend Grantor’s activities for the period of GMRUS’s activities.
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2. Royalty and Minimum Payments. Grantor grants, reserves and retains to itself, and Grantor’s assigns and successors forever, and GMRUS agrees and covenants to pay and grants to Grantor, and Grantor’s assigns and successors, a nonadministrative, nonexecutive, and nonworking mineral production royalty based on the Net Smelter Returns, as calculated and defined in Exhibit 1, from the production or sale of Minerals from the Property, including any additions to the Property resulting from the parties’ location of unpatented mining claims within the boundaries of the Property.
The Royalty shall not apply to Industrial Minerals which Grantor mines from the Property.
The Royalty percentage rate applicable to the Property shall be one and one-half percent (1.5%). [modify if Royalty Option fully or partially exercised and closed before Deed executed]
Owner grants to GMRUS the option and right (the “Royalty Option”) to purchase one-half (1/2) of the Royalty representing three-fourths of one percent (.75%) of the Net Smelter Returns. The purchase price for the purchased portion of the Royalty shall be $1,000,000.00. At GMRUS’s option, exercisable in GMRUS’s sole discretion, GMRUS may elect to pay the Royalty Option purchase price in ordinary shares of Guardian Metal Resources PLC (“Shares”) at a deemed price per Share equal to the to the 10-day volume weighted average trading price of the Shares on the London Stock Exchange converted from pounds sterling to United States dollars using the Bank of England daily spot exchange rate calculated as of the date that Guardian provides notice to Optionor of its election to exercise the Royalty Option. GMRUS’s delivery of the Shares shall be subject to the terms and conditions prescribed in Section 4.4 of the Lease Agreement.
The Royalty Option may be exercised in whole or in part at any time.
The Royalty Option purchase price shall be paid by wire transfer to an account which Grantor designates or, if applicable, by delivery of the Royalty Option purchase price Shares. The closing of GMRUS’s exercise of the Royalty Option shall be completed within thirty (30) days after GMRUS’s delivery of notice of its election to exercise the Royalty Option.
On GMRUS’s exercise and closing of the Royalty Option, the Royalty percentage rate shall be reduced to three fourths of one percent (.75%).
Beginning on the fifth anniversary of the Effective Date and on each succeeding anniversary of the Effective Date until GMRUS commences commercial production of Minerals, but not Industrial Minerals, from the Property, GMRUS shall pay Grantor a Minimum Payment in the amount of $25,000.00. Each Minimum Payment shall be an advance payment of the Royalty. The Minimum Payments shall be credited cumulatively against GMRUS’s Royalty payment obligations.
2.1 Burden on Property. GMRUS’s agreement and covenant to pay the Royalty are covenants coupled with an interest in the Property and shall burden and run with the Property, including any additions to the Property and all amendments, conversions to a lease or other form of tenure, relocations or patent of all or any of the unpatented mining claims and mill sites which comprise all or part of the Property and any lands within an unpatented mining claim or mill site which GMRUS locates to the extent such lands are in the Area of Interest. GMRUS’s obligations under this Section shall apply to any mineral rights, patented mining claims, unpatented mining claims, and other real property interests which GMRUS leases from or purchases from a third party. On GMRUS’s acquisition of a third-party interest or GMRU’s relocation of any of the unpatented mining claims and mill sites which are part of the Property or on the amendment, conversion to a lease or other form of tenure, or patenting of any of the unpatented mining claims and mill sites which comprise all or part of the Property, the parties agree and covenant to execute, deliver and record in the Office of the Lincoln County Recorder an instrument by which GMRUS grants to Grantor the Royalty and subjects the acquired interest or newly located unpatented mining claim or mill site and any amended, converted or relocated unpatented mining claims and any newly patented claims, as applicable, to the burdens, conditions, obligations and terms of this Deed.
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2.2 Payment of Royalty. GMRUS's obligation to pay the Royalty shall accrue and become due and payable upon the sale or shipment from the Property of Minerals, unrefined metals, doré metal, concentrates, ores or Minerals Products or, if refined metals are produced, upon the outturn of refined metals meeting the requirements of the specified published price to GMRUS's account. GMRUS shall calculate, pay and report the Royalty in accordance with the provisions of Exhibit 1. The Royalty shall be calculated and paid quarterly. GMRUS shall pay Grantor each quarterly Royalty payment on or before thirty (30) days following the quarter during which the Royalty payment obligation accrues. The Minimum Payments paid by GMRUS to Grantor in accordance with the Lease Agreement and in accordance with this Deed shall be credited cumulatively against GMRUS’s Royalty payment obligations.
2.3 Production Records. GMRUS shall keep true and accurate accounts, books and records of all its activities, operations and production of Minerals on the Property. All books and records used by GMRUS to calculate the Royalty payments shall be kept in accordance with generally accepted accounting principles applicable to the mining industry. When GMRUS pays the Royalty, GMRUS shall deliver to Grantor a statement which shows in detail the quantities and grades of Minerals and Mineral Products sold or deemed sold by GMRUS in the preceding quarter; costs and other deductions, and other pertinent information in detail to explain the calculation of the payment with respect to such quarter.
2.4 Delivery of Payments. GMRUS shall deliver the Minimum Payments and the Royalty payments to Grantor by wire transfer to an account or to accounts which Grantor designates. Grantor shall provide to GMRUS Grantor’s federal tax identification number.
All Minimum Payments and Royalty payments, including Interest, if any, shall be made subject to withholding or deduction for, or on account of, any present or future taxes, duties, assessments or governmental charges of whatever nature imposed or levied on such payment by or on behalf of any governmental authority having power and jurisdiction to tax and for which GMRUS is obligated in law to withhold or deduct and remit to such governmental authority and no gross-up or make-whole payment shall be made in respect of such withholding. GMRUS shall describe in the statement referred to in Section 2.3 any amount so withheld or deducted.
2.5 Audit and Objections. Once annually and on reasonable notice and at a reasonable time, Grantor shall have the right to audit and examine GMRUS’s accounts and records relating to the calculation of the Royalty payments. If such audit determines that there has been a deficiency or an excess in the payment made to Grantor, such deficiency or excess shall be resolved by adjusting the next quarterly Royalty payment due Grantor. Grantor shall pay all costs of such audit unless a deficiency of five percent (5%) or more of the Royalty payment due for the calendar quarter in question is determined to exist. Grantor may object in writing to any statement of Royalty payment amount within ninety (90) days of the receipt by Grantor of the relevant statement in respect of such Royalty payment or completion of the audit for any such statement, as applicable.
2.6 Lesser Interest. If Owner owns an interest in the Property which is less than the entire and undivided estate in the Property, the Minimum Payments and the Royalty payments shall be reduced proportionately in accordance with the nature and extent of Owner's interest so that the Minimum Payments and the Royalty payments shall be paid to Owner only in the proportion that Owner's interest bears to the entire and undivided estate in the Property.
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2.7 Commingling. GMRUS shall have the right to commingle Minerals from the Property with mineral ores mined from other properties. Not less than sixty (60) days before commencement of commingling, GMRUS shall notify Grantor and shall deliver to Grantor GMRUS’s proposed commingling plan for Grantor’s review. Before any Minerals from the Property are commingled with mineral ores from other properties, the Minerals from the Property and the mineral ores from other properties shall be measured and sampled in accordance with sound mining and metallurgical practices for metal, commercial Minerals and other appropriate contents. GMRUS shall prepare and maintain accurate records which show the measurements, assays of metal, commercial Minerals, and other appropriate contents and penalty substances, and gross metal content of the Minerals from the Property and the mineral ores from other properties. From this information, GMRUS shall determine the amount of the Royalty due and payable to Grantor for Minerals produced from the Property commingled with mineral ores from other properties.
| 3. | Compliance with Laws, Reclamation, Environmental Obligations, and Indemnities. |
3.1 Compliance with Laws. GMRUS shall comply with all Governmental Regulations relating to GMRUS’s activities and operations on or relating to the Property.
3.2 Reclamation, Environmental Obligations, and Indemnities. GMRUS shall perform all reclamation required under Governmental Regulations relating to GMRUS’s activities or operations on or relating to the Property. GMRUS shall defend, indemnify and hold harmless Grantor from and against all actions, claims, costs, damages, expenses (including attorney’s fees and legal costs), liabilities and responsibilities arising from or relating to GMRUS’s activities or operations on or relating to the Property, including those under Governmental Regulations intended to protect or preserve the environment or to reclaim the Property. GMRUS’s obligations under this Section shall survive the abandonment, surrender or transfer of the Property.
4. Tailings and Residues. All tailings, residues, waste rock, spoiled leach materials and other materials resulting from GMRUS's operations and activities on the Property shall be GMRUS’s sole property, but shall remain subject to the Royalty if they are processed or reprocessed and GMRUS receives revenues from such processing or reprocessing.
| 5. | Title Maintenance. |
5.1 Title Maintenance and Taxes. GMRUS shall maintain title to the Property, including without limitation, paying when due all taxes on or with respect to the Property and doing all things and making all payments necessary or appropriate to maintain the right, title and interest of GMRUS and Grantor, respectively, in the Property and under this Deed.
5.2 Property Maintenance. GMRUS shall perform all required assessment work on, pay all federal annual mining claim maintenance fees and make such filings and recordings as are necessary to maintain title to the Property in accordance with applicable Governmental Regulations.
5.3 Abandonment. Except as provided in this Section, if GMRUS intends to permanently abandon or surrender any of the patented mining claims or unpatented mining claims and mill sites which are part of the Property (the "Abandonment Property"), GMRUS shall first deliver notice to Grantor of such intention at least thirty (30) days in advance of the proposed date of abandonment or surrender. GMRUS’s notice shall state the proposed date of abandonment or surrender. At any time before the date of GMRUS’s proposed abandonment or surrender of the Property, Grantor may deliver notice to GMRUS that Grantor desires GMRUS to convey the Abandonment Property to Grantor. In such case, within ten (10) Business Days after GMRUS’s receipt of Grantor’s notice, GMRUS shall convey the Abandonment Property to Grantor, and Grantor shall accept and assume all liabilities and obligations in respect of the conveyed Abandonment Property. If Grantor does not timely request reconveyance of the Abandonment Property, Grantor’s right to do so shall be irrevocably terminated and GMRUS may abandon or surrender the Abandonment Property in GMRUS’s sole and exclusive discretion. On GMRUS’s abandonment or surrender of the Abandonment Property, GMRUS’s obligation to pay the Minimum Payments and Royalty shall terminate in respect of the Abandonment Property. Notwithstanding the foregoing provisions of this Section, GMRUS may amend or abandon and relocate any of the unpatented mining claims and mill sites without first notifying Grantor if GMRUS determines that it is advisable to do so to maintain and preserve the effectiveness or good standing of the unpatented mining claims and mill sites. Following amendment or relocation of any of the unpatented mining claims and mill sites, GMRUS shall execute, record and deliver a copy to Grantor of a supplement to this Deed which includes the amended and relocated unpatented claims and mill sites in the description of the Property subject to this Deed.
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| 6. | General Provisions. |
6.1 Conflict. If a conflict arises between the provisions of this Deed and the provisions of the Agreement, the provisions of this Deed shall prevail.
| 6.2 | Entire Agreement. This Deed and the Agreement constitute the entire agreement between the parties. |
6.3 Additional Documents. The parties shall from time to time execute all such further instruments and documents and do all such further actions as may be necessary to effectuate the purposes of this Deed.
6.4 Binding Effect. All the covenants, conditions, and terms of this Deed shall bind and inure to the benefit of the parties and their successors and assigns.
6.5 No Partnership. Nothing in this Deed shall be construed to create, expressly or by implication, a fiduciary, joint venture, mining partnership or other partnership relationship between the parties. Grantor acknowledges and agrees that all decisions concerning methods, the extent, times, procedures and techniques of any (a) exploration, development and mining related to the Property; (b) leaching, milling, processing or extraction; (c) materials to be introduced on or to the Property or produced therefrom; and (d) decisions concerning the sale or other disposition of Minerals and Minerals Products from the Property, shall be made by GMRUS in its sole and absolute discretion. Grantor agrees that GMRUS shall not be responsible to Grantor for or obliged to make any Royalty payments for Minerals or Minerals Products value lost in any mining or processing of the Minerals or Minerals Products, unless such losses result from GMRUS’s negligence or willful misconduct.
6.6 No Implied Covenants. The Parties agree that there are no implied covenants or duties relating to or affecting any of their respective rights or obligations under this Deed, and that the only covenants or duties which affect such rights and obligations shall be those expressly stated in this Deed.
6.7 Governing Law and Forum. This Deed is to be governed by and construed under the laws of the State of Nevada. Any action or proceeding for the enforcement or construction of this Deed shall be commenced and adjudicated in the District Court of the State of Nevada, in and for the County of Washoe, Reno, Nevada.
6.8 Notices. Any notices required or authorized to be given by this Deed shall be in writing and shall be sent either by commercial courier, facsimile, or by certified U.S. mail, postage prepaid and return receipt requested, addressed to the proper party at the address stated below or such address as the party shall have designated to the other parties in accordance with this Section. Such notice shall be effective on the date of receipt by the addressee party, except that any facsimiles received after 5:00 p.m. of the addressee’s local time shall be deemed delivered the next day.
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If to Grantor: Hinkinite Resources LLC
[insert address when
executed]
If to GMRUS: Golden Metal Resources, LLC.
[insert address
when executed]
6.9 Attorney’s Fees. If either party named in this Deed brings an action to construe or enforce its terms, covenants or conditions, the prevailing party in any such action shall be entitled to recover its reasonable attorneys' fees and costs from the losing party.
6.10 Rule Against Perpetuities. To the extent this Deed or the Royalty applies to any amendments or relocations of the unpatented mining claims which comprise the Property made in accordance with the Mining Law of 1872, as from time-to-time amended, repealed, replaced or superseded, or any other federal law or regulation, including the conversion of any present interest in the unpatented mining claims included the Property to a lease, license, permit or other form of tenure or to any other rights or interests (including mineral rights) or to any other mineral or Property rights acquired by a party within the boundaries of the Property which becomes part of the Property subject to this Deed or the Royalty (each an “Acquired Interest”), the interest in such Acquired Interest shall vest on the date of acquisition. It is the express intention of the parties that each Acquired Interest shall vest within a period of time that complies with the Rule Against Perpetuities (Uniform Act), as it may be amended from time-to-time, to the extent the Rule Against Perpetuities applies, and, only if required by applicable law to vest during a period which is less than twenty-one (21) years from the effective date of this Deed, the term of the this Deed or the Royalty applicable to the an Acquired interest shall end one (1) day before twenty-one (21) years from the effective date of this Deed, provided that the parties agree and covenant that if a court of competent jurisdiction finds that this Deed or the Royalty is invalid in any respect or that the Acquired Interest does not vest within a period compliant with the Rule Against Perpetuities, the court may reform this Deed or the Royalty and instrument by which the Acquired Interest was created or acquired in a manner that implements the parties’ intentions such that the Acquired Interest is an effective and valid interest. In all events, the Royalty shall apply to any Acquired Interest acquired within a period which ends one (1) day before twenty-one (21) years from the date of execution of this Deed or the instrument by which the Royalty is granted or reserved, as applicable. The parties irrevocably release and waive the applicability of the Rule Against Perpetuities to any Acquired Interest or to any provision of this Deed or the Royalty. Each party agrees and covenants, for itself and its successors and assigns, that it will not commence any action or arbitration proceeding to declare the Acquired Interest or this Deed or the Royalty ineffective, invalid or void based on the Rule Against Perpetuities, and that it will not in any action or arbitration proceeding commenced by any party, including the other party to this Deed or its successors and assigns, assert as a claim for relief or as an affirmative defense against any claim for relief for enforcement of this Deed or the Royalty or any instrument executed in accordance with this Deed that this Deed or the Royalty or the instrument is invalid or void based on the Rule Against Perpetuities. A party’s default of its obligations under the Section shall constitute a material default and breach of this Deed or the instrument, as applicable.
6.11 Assignment by Grantor. Grantor may assign its rights under this Deed in whole or in part, and any rights and obligations under this Deed, without the written consent of GMRUS, provided that (a) each assignee enters a written agreement with GMRUS in form and substance satisfactory to GMRUS, acting reasonably, to be bound by the provisions of this Deed in all respects and to the same extent that Grantor is bound; and (b) notwithstanding the foregoing, Grantor shall remain liable for the obligations of Grantor under this Deed which arise before such assignment.
6.12 Assignment by GMRUS. GMRUS shall be entitled to assign, sell, transfer, lease, mortgage, charge or otherwise encumber any of the Property and its rights and obligations under this Deed, and GMRUS shall be released from all obligations under this Deed which arise after GMRUS’s transfer of title to the Property. Each assignee shall enter a written agreement with Grantor in form and substance satisfactory to Grantor, acting reasonably, to be bound by the provisions of this Deed in all respects and to the same extent that GMRUS is bound; and (b) notwithstanding the foregoing, GMRUS shall remain liable for the obligations of GMRUS under this Deed which arise before such assignment.
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6.13 Definitions. As used in this Deed, the following terms shall have the meanings assigned to them as follows.
“Area of Interest” means the lands within the exterior boundaries of the patented mining claims and unpatented mining claims and mill sites described in Exhibit A of the Lease Agreement which are also identified in Exhibit A attached to this Deed and the lands within two (2) miles outside the exterior boundaries.
“Business Day” means a day other than a Saturday, Sunday or any other day on which the principal chartered banks located in Reno, Nevada are not open for business.
“Governmental Regulations” means all directives, laws, orders, ordinances, regulations and statutes of any federal, state or local agency, court or office.
“Loss” means an insured loss of or damage to Minerals and Minerals Products, whether occurring on or off the Property and whether the Minerals and Minerals Products are in the possession of GMRUS or its Affiliates or otherwise.
“Industrial Minerals” means sand, gravel, limestone, marble, dolomite (magnesium), silica (quartz), shale, clay, kaolin, alumina, bentonite, barite, talc, gypsum, diatomite, salt, phosphates, potash, pumice, volcanic ash, pozzolana, fluorspar, building stone, landscape products, and gemstones.
“Minerals” means all Minerals and mineral materials except Industrial Minerals, including lithium, gold, silver, platinum group metals, and rare earth metals, base metals (including antimony, chromium, cobalt, copper, lead, manganese, mercury, nickel, molybdenum, titanium, tungsten, zinc), boron, lithium, and other metals and mineral materials which are on, in or under the Property or which after the Effective Date are discovered on, in or under the Property.
“Minerals Products” means all Minerals mined from the Property and all concentrates, doré, metal and other products derived from ore mined from the Property.
“Minimum Payment” means each annual advance Royalty payment paid in accordance with Section 2.
“Party” means a signatory to this Deed and “Parties” means all signatories.
“GMRUS” means Golden Metal Resources LLC, a Nevada limited liability company, and its successors and assigns.
6.14 Counterparts. This Deed may be executed in several counterparts, each of which shall be deemed to be an original, and all of which shall together constitute one and the same instrument, and delivery of an executed copy of this Deed by email transmission or by other means of electronic communication capable of producing a printed copy shall be deemed to be execution and delivery of this Deed as of the date first above written.
This Deed is effective ___________, ___202___ (the “Effective Date”).
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| Hinkinite Resources LLC | ||
| By | To be signed on closing of Option. | |
| Name | ||
| Title | ||
| Golden Metal Resources, LLC | ||
| By | To be signed on closing of Option. | |
| Name | ||
| Title | ||
| ) | |
| ) ss. | |
| ) |
This Deed With Reservation of Royalty Hinkinite Unpatented Mining Claims was acknowledged before me on __, 202___, by ____________ as ____________ of Hinkinite Resources LLC.
| Notary Public |
| ) | |
| ) ss. | |
| ) |
This Deed With Reservation of Royalty Hinkinite Unpatented Mining Claims was acknowledged before me on __, 202__, by ________________ as _____________ of Golden Metal Resources, LLC
| Notary Public |
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Exhibit A
Description of Property
Lincoln County, Nevada
Unpatented Mining Claims
[insert description on execution]
30
Exhibit 1
Net Smelter Returns
Obligor: Golden Metal Resources, LLC (“GMRUS”)
Payee: Hinkinite Resources LLC (“Grantor”)
1. Definitions. The terms defined in the instrument to which this Exhibit is attached and made part of shall have the same meanings in this Exhibit. The following definitions shall apply to this Exhibit.
1.1 "Gold Production" means the quantity of refined gold outturned to GMRUS's account by an independent third party refinery for gold produced from the Property during the quarter on either a provisional or final settlement basis.
1.2 "Gross Value" shall be determined on a quarter basis and have the following meanings with respect to the following Minerals:
| 1.2.1 | Gold |
(a) If GMRUS sells gold concentrates, doré or ore, then Gross Value shall be the value of the gold contained in the gold concentrates, doré and ore determined by utilizing: (1) the mine weights and assays for such gold concentrates, doré and ore; (2) a reasonable recovery rate for the refined gold recoverable from such gold concentrates, doré and ore (which shall be adjusted annually to reflect the actual recovery rate of refined metal from such gold concentrates, doré and ore); and (3) the Quarterly Average Gold Price for the quarter in which the gold concentrates, doré and ore were sold.
(b) If GMRUS produces refined gold (meeting the specifications of the London Bullion Market Association, and if the London Bullion Market Association no longer prescribes specifications, the specifications of such other association generally accepted and recognized in the mining industry) from Minerals, and if Section 1.2.1(a) above is not applicable, then for purposes of determining Gross Value, the refined gold shall be deemed to have been sold at the Quarterly Average Gold Price for the quarter in which it was refined. The Gross Value shall be determined by multiplying Gold Production during the quarter by the Quarterly Average Gold Price.
| 1.2.2 | Silver. |
(a) If GMRUS sells silver concentrates, doré or ore, then Gross Value shall be the value of the silver contained in the silver concentrates, doré and ore determined by utilizing: (1) the mine weights and assays for such silver concentrates, doré and ore; (2) a reasonable recovery rate for the refined silver recoverable from such silver concentrates, doré and ore (which shall be adjusted annually to reflect the actual recovery rate of refined metal from such silver concentrates, doré and ore); and (3) the Quarterly Average Silver Price for the quarter in which the silver concentrates, doré and ore were sold.
(b) If GMRUS produces refined silver (meeting the specifications of the London Bullion Market Association, and if the London Bullion Market Association no longer prescribes specifications, the specifications of such other association generally accepted and recognized in the mining industry) from Minerals, and if Section 1.2.2(a) above is not applicable, the refined silver shall be deemed to have been sold at the Quarterly Average Silver Price for the quarter in which it was refined. The Gross Value shall be determined by multiplying Silver Production during the quarter by the Quarterly Average Silver Price.
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| 1.2.3 | All Other Minerals. |
(a) If GMRUS sells any concentrates, doré or ore of Minerals other than gold or silver, then Gross Value shall be the value of such Minerals determined by utilizing: (1) the mine weights and assays for such Minerals; (2) a reasonable recovery rate for the Minerals (which shall be adjusted annually to reflect the actual recovery rate of recovered or refined metal or product from such Minerals); and (3) the quarterly average price for the Minerals or product of the Minerals for the quarter in which the concentrates, doré or ore was sold. The quarterly average price shall be determined by reference to the market for such Minerals or product which is recognized in the mining industry as authoritative and reflective of the market for such Minerals or product.
(b) If GMRUS produces refined or processed metals from Minerals other than refined gold or refined silver, and if Section 1.2.3(a) above is not applicable, then Gross Value shall be equal to the amount of the proceeds received by GMRUS during the quarter from the sale of such refined or processed metals. GMRUS shall have the right to sell such refined or processed metals to an affiliated party, provided that such sales shall be considered, solely for purposes of determining Gross Value, to have been sold at prices and on terms no less favorable than those that would be obtained from an unaffiliated third party in similar quantities and under similar circumstances.
(c) If GMRUS produces tungsten trioxide (WO3), then Gross Value shall be equal to the amount of the gross proceeds received by GMRUS during the quarter from the sale of such tungsten trioxide (WO3). GMRUS shall have the right to sell such tungsten trioxide (WO3) to an affiliated party, provided that such sales shall be considered, solely for purposes of determining Gross Value, to have been sold at prices and on terms no less favorable than those that would be obtained from an unaffiliated third party in an arm’s length, open marker sale transaction.
1.3 "Quarterly Average Gold Price" means the average London Bullion Market Association Afternoon Gold Fix, calculated by dividing the sum of all such prices reported for the quarter by the number of days for which such prices were reported during that quarter. If the London Bullion Market Association Afternoon Gold Fix ceases to be published, all such references shall be replaced with references to prices of gold for immediate sale in another established market selected by GMRUS which is generally accepted and recognized in the mining industry.
1.4 "Quarterly Average Silver Price" means the average London Bullion Market Association Silver Fix, calculated by dividing the sum of all such prices reported for the quarter by the number of days for which such prices were reported during that quarter. If the London Bullion Market Association Silver Fix ceases to be published, all such references shall be replaced with references to prices of silver for immediate sale in another established market selected by GMRUS which is generally accepted and recognized in the mining industry.
1.5 "Net Smelter Returns" means the Gross Value realized during the applicable quarter from a mint, refinery, smelter or other purchaser on the sale of all metals, bullion, concentrates, Minerals or products of Mineral or ores removed from the Property less the costs of smelting and refining and less actual freight or haulage charges from the mine to the refinery or smelter. The term “smelter” shall mean conventional smelters as well as any other type of production plant used in lieu of a conventional smelter to reduce ores or concentrates.
1.6 "Property" means the unpatented mining claims described in the instrument to which these Net Smelter Returns provisions are attached and made a part.
1.7 "Silver Production" means the quantity of refined silver outturned to GMRUS's account by an independent third-party refinery for silver produced from the Property during the quarter on either a provisional or final settlement basis.
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2. Payment Procedures.
2.1 Accrual of Obligation. GMRUS's obligation to pay the royalty shall accrue and become due and payable upon the sale or shipment from the Property of unrefined metals, doré metal, concentrates, ores or other Minerals or Minerals Products or, if refined metals are produced, upon the outturn of refined metals meeting the requirements of the specified published price to GMRUS's account.
2.2 Futures or Forward Sales, Etc. Except as provided in Sections 1.2.1(a), 1.2.2(a) and 1.2.3(a) (regarding sales of unprocessed gold and silver and sales of Minerals other than gold and silver), Gross Value shall be determined irrespective of any actual arrangements for the sale or other disposition of Minerals by GMRUS, specifically including but not limited to forward sales, futures trading or commodities options trading, and any other price hedging, price protection, and speculative arrangements that may involve the possible delivery of gold, silver or other metals produced from Minerals. Grantor shall have no right or interest in any profits nor any liability or obligations for any losses realized by GMRUS from such transactions.
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Exhibit C
Bill of Sale
Bill of Sale
Tempiute Project
This Bill of Sale is made and executed by Hinkinite Resources LLC, a Utah limited liability company (“Seller”), in favor of and to Golden Metal Resources, LLC, a Nevada limited liability company (“Buyer”). This Bill of Sale is executed and delivered in accordance with the Exploration and Option to Purchase Agreement dated January ___, 2025, between Seller and Buyer, regarding the patented mining claims and unpatented mining claims and mill sites in Lincoln County, Nevada, commonly known as the Tempiute Project (collectively the “Property”).
In consideration of the sum of Ten Dollars ($10.00) and other good and valuable consideration, the receipt and sufficiency of which are acknowledged, Seller assigns, conveys, sells and transfers to Buyer all of Seller’s right, title and interest in and to (a) all geological, geochemical and geophysical maps, reports, surveys and tests; all drill hole maps, drill logs, drill core, drill cuttings, chip trays, and other samples taken from the Property, including duplicates and pulps; all engineering and metallurgical reports, studies and tests; all sample and assay logs, maps, reports and tests; all mineral resource and ore reserve calculations, estimates, reports, studies and tests; all anthropological, biological, cultural, environmental, meteorological, and other like reports, studies, surveys and tests; and all other data relating to the Property, including any such data in digital, electronic, magnetic, optical and written format; and (b) all approvals, consents, licenses, notices of intent to operate, plans of operation and permits for or relating to the Property and accounts, bonds, deposits, financial assurances, guarantees and securities for reclamation of the Property.
This Bill of Sale shall be governed by the laws of the State of Nevada.
Delivery of a signature page to this Bill of Sale by facsimile or other electronic means shall be effective as delivery of a manually executed counterpart to this Bill of Sale.
Dated ___________ ___, 202__.
| Hinkinite Resources LLC | ||
| By | ||
| Bryson Hinkins, Manager | ||
34
Exhibit 10.2

| DATED | 16 December 2025 |
UCAM LIMITED
GUARDIAN METAL RESOURCES PLC
RIGHT OF FIRST REFUSAL AGREEMENT
HAYNES AND BOONE CDG LLP
Alder Castle
10 Noble Street
London EC2V 7JX
REF: 0067434.00004
BETWEEN
| 1) | UCAM LIMITED, a company duly incorporated in accordance with the laws of England and Wales and registered as such with the Register of Companies for England and Wales “UCAM”); and |
| 2) | GUARDIAN METAL RESOURCES PLC, registration number 13351178, a public company duly incorporated in accordance with the company laws of England and Wales and registered as such with the Registrar of Companies for England and Wales; (the “Company”). |
WHEREAS
| (A) | The Company and UCAM acknowledge that the Company is contemplating an initial public offering of the Company, which would involve an offering of American Depositary Shares (each an “ADS”), each of which would represent a certain number of to be issued Ordinary Shares (the “US IPO”). Pursuant to the US IPO, the ADSs are contemplated to be listed on the New York Stock Exchange. |
| (B) | The parties have agreed, conditional on the passage of resolutions 9 and 10 (the “Resolutions”) at the Company’s annual general meeting to be held on 17 December 2025 (or such subsequent date on which the Company’s 2025 annual general meeting is held (the “2025 AGM”), to enter into this Deed to ensure that, notwithstanding the disapplication of pre-emption rights pursuant to the Resolutions at the 2025 AGM, UCAM has the right to maintain its pro rata shareholding by way of a pro rata right of first refusal in respect of any new issue of Ordinary Shares or ADSs or other fundraise or action by the Company (a “Right of First Refusal Event”). |
OPERATIVE PROVISIONS
| 1. | Definitions and Interpretations | |
| 1.1 | The following definitions apply: | |
| AIM | the alternative investment market, a sub-market of the LSE; | |
| Applicable Laws | the Companies Act, FSMA, the rules of any Relevant Exchange on which the Ordinary Shares are admitted to trading, MAR, the Disclosure Guidance and Transparency Rules, the Takeover Code and any other applicable legislation or regulation; |
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| Companies Act | the UK Companies Act 2006 (as amended from time to time); | |
| FSMA | the Financial Services and Markets Act 2000 (as amended from time to time); | |
| LSE | London Stock Exchange plc; | |
| MAR | the Market Abuse Regulation (596/2014/EU) as it forms part of the law of England and Wales by virtue of the European Union (Withdrawal) Act 2018, as amended by UK legislation from time to time; | |
| Ordinary Shares | the ordinary shares of £0.01 each in the capital of the Company in issue from time to time; | |
| Parties | the parties to this Deed, and “party” shall mean any one of them; | |
| Relevant Exchange | the LSE, AIM or such other exchange in the UK as the Ordinary Shares are admitted to at the time of the issuance of any Ordinary Shares; | |
| Takeover Code | The City Code on Takeovers and Mergers; |
| 1.2 | Clause headings shall not affect the interpretation of this Deed. |
| 1.3 | Unless otherwise stated, a reference to a recital, Clause or sub-Clause is a reference to a recital, Clause or sub-Clause of this Deed and any reference to this Deed includes its recitals. |
| 1.4 | A person includes a natural person, corporate or unincorporated body (whether or not having separate legal personality) and that person's personal representatives and successors. |
| 1.5 | Any words following the terms including, include, in particular, for example or any similar expression shall be construed as illustrative and shall not limit the sense of the words, description, definition, phrase or term preceding those terms. |
| 1.6 | A reference to a legislative or regulatory provision, rule or code shall include all subordinate legislation, regulations, rules and codes made from time to time under that provision, rule or code. |
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| 1.7 | Any obligation on a party not to do something includes an obligation not to allow that thing to be done. |
| 2. | Commencement |
| 2.1 | This Deed is conditional on, and shall come into force upon, the successful passage of the Resolutions at the 2025 AGM. |
| 2.2 | This Deed will automatically terminate with immediate effect upon the earlier of: |
| (a) | a binding written agreement being entered into between the parties to terminate this Deed; and |
| (b) | the date of the Company's next annual general meeting, anticipated to be held on or around 17 December 2026. |
| 2.3 | Termination of this Deed shall not affect any rights, remedies, obligations or liabilities of the parties that have accrued up to the date of termination, including the right to claim damages in respect of any breach of the Deed which existed at or before the date of termination. |
| 2.4 | On termination of this Deed, Clause 1 and Clauses 4 to 14 (inclusive) shall continue in force. |
| 3. | Company Undertakings |
| 3.1 | The Company hereby undertakes: |
| (a) | to offer UCAM a pro rata right of first refusal in respect of any proposed new issue of Ordinary Shares or ADSs in connection with a Right of First Refusal Event (a “Right of First Refusal Offer”) in the form of a direct subscription for Ordinary Shares as part of an offering to be conducted concurrently with, or as part of, the Right of First Refusal Event (and with the price per share to be the same as the effective price per share to the public in the Right of First Refusal Event), notwithstanding the disapplication of shareholder pre-emption rights at the 2025 AGM, with the exception of issuances of Ordinary Shares the Company may issue (i) to directors and employees under option plans or other incentivisation plans; or (2) as consideration in connection with any acquisition by the Company; |
| (b) | such Right of First Refusal Offer by the Company to UCAM shall be in writing, shall set forth the anticipated size of the Right of First Refusal Event and the anticipated date on which pricing of the Right of First Refusal Event is expected to occur (which date shall not be less than ten days, nor more than fourteen days after the date of the delivery of the Right of First Refusal Offering); and |
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| (c) | within seven days after the delivery of said Right of First Refusal Offer, UCAM shall deliver to the Company a written notice either accepting or rejecting the offer, in its sole and absolute discretion. Failure to deliver said notice within seven days conclusively shall be deemed a rejection of the offer. |
| 3.2 | UCAM, shall have an exclusive right, but not an obligation, to participate in the Right of First Refusal Offer, in part or in full. |
| 4. | Nature of Deed |
| 4.1 | Nothing in this Deed shall create, or be deemed to create, a partnership or joint venture between the parties. |
| 4.2 | A person who is not a party to this Deed shall have no rights under the Contracts (Rights of Third Parties) Act 1999 to enforce any of its terms. |
| 4.3 | The obligations of each of the parties under this Deed shall be subject to all applicable legal and regulatory requirements including, without limitation, the Applicable Laws and no party shall be required to breach any such law, regulation, rule or code. |
| 4.4 | In the event of any conflict between the provisions of this Deed and the Company’s articles of association, the provisions of this Deed shall prevail as between the parties. |
| 4.5 | The parties shall exercise all voting and other rights and powers available to them so as to give effect to the provisions of this Deed. |
| 5. | Further Assurance | |
| 5.1 | The Company shall (at its own expense) promptly execute and deliver such documents and perform such acts as the Company and UCAM may each reasonably require from time to time for the purpose of giving full effect to this Deed. | |
| 6. | Variation and Waiver |
| 6.1 | No variation of this Deed shall be effective unless it is made by Deed and signed and delivered by the parties (or their authorised representatives). |
| 6.2 | The rights of any party in respect of a breach of this Deed shall not be affected by any party failing to exercise, or delaying in exercising, a right or remedy or by anything else except a specific authorised written waiver or release. A single or partial exercise of a right provided by this Deed or by law does not prevent its further exercise or the exercise of another right. |
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| 6.3 | Waiver of a breach of a term of this Deed or of a default under it does not constitute a waiver of another breach or default or affect the other terms of this Deed. |
| 6.4 | The rights provided in this Deed are cumulative and not exclusive of any other rights. |
| 7. | Confidentiality |
Each of the parties hereto hereby severally agrees and undertakes with and represents and warrants to each other as separate agreements undertakings representations and warranties that, except in so far as disclosure is required by the rules and regulations of AIM or any other regulatory authority or by any applicable law, including the securities laws of the United States and/or Securities and Exchange Commission in the context of the US IPO, they will not at any time hereafter divulge or communicate to or cause or enable any person to become aware of the contents of this Deed except with the prior written consent of each other party, such consent not to be unreasonably withheld or delayed. Notwithstanding the foregoing, each of the parties acknowledges and agrees that disclosure of the concurrent offering will be included in the registration statement filed with the Securities and Exchange Commission in connection with the US IPO.
| 8. | Communications |
Communications between the parties in relation to this Deed should be in writing and should be sufficiently delivered if sent in a letter by registered mail or by hand to the party at its/his address set out in this Deed (or an alternative address notified in writing by that party in accordance with this Clause 8) or via e-mail as set out below and notice should be treated as affected when the sending party sends an e-mail to oliver.friesen@guardianmetalresources.com for the Company and john.demaine@sandfia.com for UCAM.
| 9. | Entire Deed |
This Deed constitutes the entire agreement between the parties and supersede and extinguish all previous agreements, promises, assurances, warranties, representations and understandings between them, whether written or oral, relating to their subject matter.
| 10. | Severance |
| 10.1 | If any provision or part-provision of this Deed is or becomes invalid, illegal or unenforceable, it shall be deemed deleted, but that shall not affect the validity and enforceability of the rest of this Deed. |
| 10.2 | If any provision or part-provision of this Deed is deemed deleted under Clause 10.1, the parties shall negotiate in good faith to agree a replacement provision that, to the greatest extent possible, achieves the intended commercial result of the original provision. Any such amendment will be made in accordance with Clause 6. |
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| 11. | Counterparts |
| 11.1 | This Deed may be executed in a number of counterparts and by the parties on different counterparts but shall not be effective until each party has executed at least one counterpart. |
| 11.2 | Each counterpart, when executed, shall be an original but all the counterparts together constitute the same document. |
| 12. | Assignment |
None of the rights or obligations of any party under this Deed may be assigned or transferred.
| 13. | Indemnity |
| 13.1 | The Company shall fully indemnify and hold harmless UCAM, its affiliates, members, managers, officers, employees and advisers (each an Indemnified Person) from and against any and all losses, liabilities, damages, costs, claims, demands, actions, proceedings, fines, penalties and expenses (including legal and professional fees on a full indemnity basis) suffered or incurred by any Indemnified Person arising out of or in connection with: |
| (a) | any claim, challenge, action or proceeding by any shareholder of the Company (or any group of shareholders), or by any other person, in connection with the grant, existence or exercise of the participation rights in favour of UCAM under this Deed; or |
| (b) | any regulatory inquiry, investigation or enforcement action relating to the grant or disclosure of the participation rights to UCAM. |
UCAM shall promptly notify the Company of any claim in respect of which it seeks indemnification under this clause 13 and permit the Company, at its own cost and expense, to conduct and control the defence or settlement of such claim, provided that the Company shall not settle any claim in a manner that imposes any admission of liability or ongoing obligation on UCAM without UCAM’s prior written consent.
| 14. | Governing Law and Jurisdiction |
| 14.1 | This Deed and any dispute or claim (including non-contractual disputes or claims) arising out of or in connection with it or its subject matter or formation shall be governed by and construed in accordance with the law of England and Wales. |
| 14.2 | Each party irrevocably agrees that the courts of England and Wales shall have exclusive jurisdiction to settle any dispute or claim (including non-contractual disputes or claims) arising out of or in connection with this deed or its subject matter or formation. |
IN WITNESS whereof this document has been duly executed as a deed which has been delivered by the Company and UCAM the day and year first above written.
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| EXECUTED and DELIVERED as a Deed by | ) |
| UCAM in the presence of: | ) |
| Witness signature: | /s/ Emily Marshall | |
| Witness Name: | Emily Marshall | |
| Witness Address: | 14 Dynham Road, London, NW6 2NR | |
| Witness Occupation: | Personal Assistant |
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| EXECUTED and DELIVERED a Deed by | ) | /s/ Oliver Friesen | |
| Guardian Metal Resources PLC | ) | ||
| acting by a director in the presence of: | ) | Oliver Friesen - CEO |
| Witness signature: | /s/ Ben Hodges | |
| Witness Name: | Ben Hodges | |
| Witness Address: | 66 Halstead Road, London, E11 2AZ | |
| Witness Occupation: | Accountant |
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Exhibit 10.3

| DATED | 16 December 2025 |
DUQUESNE FAMILY OFFICE LLC
GUARDIAN METAL RESOURCES PLC
RIGHT OF FIRST REFUSAL AGREEMENT
HAYNES AND BOONE CDG LLP
Alder Castle
10 Noble Street
London EC2V 7JX
REF: 0067434.00004
BETWEEN
| 1) | DUQUESNE FAMILY OFFICE LLC, a foreign limited liability company duly incorporated in accordance with the company laws of Delaware, United States ("DUQUESNE"); and |
| 2) | GUARDIAN METAL RESOURCES PLC, registration number 13351178, a public company duly incorporated in accordance with the company laws of England and Wales and registered as such with the Registrar of Companies for England and Wales; (the "Company"). |
WHEREAS
| (A) | The Company and DUQUESNE acknowledge that the Company is contemplating an initial public offering of the Company, which would involve an offering of American Depositary Shares (each an "ADS"), each of which would represent a certain number of to be issued Ordinary Shares (the "US IPO"). Pursuant to the US IPO, the ADSs are contemplated to be listed on the New York Stock Exchange. |
| (B) | The parties have agreed, conditional on the passage of resolutions 9 and 10 (the "Resolutions") at the Company's annual general meeting to be held on 17 December 2025 (or such subsequent date on which the Company's 2025 annual general meeting is held (the "2025 AGM"), to enter into this Deed to ensure that, notwithstanding the disapplication of pre-emption rights pursuant to the Resolutions at the 2025 AGM, DUQUESNE has the right to maintain its pro rata shareholding by way of a pro rata right of first refusal in respect of any new issue of Ordinary Shares or ADSs or other fundraise or action by the Company (a "Right of First Refusal Event"). |
OPERATIVE PROVISIONS
| 1. | Definitions and Interpretations |
| 1.1 | The following definitions apply: |
| AIM | the alternative investment market, a sub-market of the LSE; |
| Applicable Laws | the Companies Act, FSMA, the rules of any Relevant Exchange on which the Ordinary Shares are admitted to trading, MAR, the Disclosure Guidance and Transparency Rules, the Takeover Code and any other applicable legislation or regulation; |
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| Companies Act | the UK Companies Act 2006 (as amended from time to time); | |
| FSMA | the Financial Services and Markets Act 2000 (as amended from time to time); | |
| LSE | London Stock Exchange plc; | |
| MAR | the Market Abuse Regulation (596/2014/EU) as it forms part of the law of England and Wales by virtue of the European Union (Withdrawal) Act 2018, as amended by UK legislation from time to time; | |
| Ordinary Shares | the ordinary shares of £0.01 each in the capital of the Company in issue from time to time; |
| Parties | the parties to this Deed, and "party" shall mean any one of them; |
Relevant Exchange |
the LSE, AIM or such other exchange in the UK as the Ordinary Shares are admitted to at the time of the issuance of any Ordinary Shares; | |
| Takeover Code | The City Code on Takeovers and Mergers; |
| 1.2 | Clause headings shall not affect the interpretation of this Deed. |
| 1.3 | Unless otherwise stated, a reference to a recital, Clause or sub-Clause is a reference to a recital, Clause or sub-Clause of this Deed and any reference to this Deed includes its recitals. |
| 1.4 | A person includes a natural person, corporate or unincorporated body (whether or not having separate legal personality) and that person's personal representatives and successors. |
| 1.5 | Any words following the terms including, include, in particular, for example or any similar expression shall be construed as illustrative and shall not limit the sense of the words, description, definition, phrase or term preceding those terms. |
| 1.6 | A reference to a legislative or regulatory provision, rule or code shall include all subordinate legislation, regulations, rules and codes made from time to time under that provision, rule or code. |
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| 1.7 | Any obligation on a party not to do something includes an obligation not to allow that thing to be done. |
| 2. | Commencement |
| 2.1 | This Deed is conditional on, and shall come into force upon, the successful passage of the Resolutions at the 2025 AGM. |
| 2.2 | This Deed will automatically terminate with immediate effect upon the earlier of: |
| (a) | a binding written agreement being entered into between the parties to terminate this Deed; and |
| (b) | the date of the Company's next annual general meeting, anticipated to be held on or around 17 December 2026. |
| 2.3 | Termination of this Deed shall not affect any rights, remedies, obligations or liabilities of the parties that have accrued up to the date of termination, including the right to claim damages in respect of any breach of the Deed which existed at or before the date of termination. |
| 2.4 | On termination of this Deed, Clause 1 and Clauses 4 to 14 (inclusive) shall continue in force. |
| 3. | Company Undertakings |
| 3.1 | The Company hereby undertakes: |
| (a) | to offer DUQUESNE a pro rata right of first refusal in respect of any proposed new issue of Ordinary Shares or ADSs in connection with a Right of First Refusal Event (a "Right of First Refusal Offer") in the form of a direct subscription for Ordinary Shares as part of an offering to be conducted concurrently with, or as part of, the Right of First Refusal Event (and with the price per share to be the same as the effective price per share to the public in the Right of First Refusal Event), notwithstanding the disapplication of shareholder pre-emption rights at the 2025 AGM, with the exception of issuances of Ordinary Shares the Company may issue (i) to directors and employees under option plans or other incentivisation plans; or (2) as consideration in connection with any acquisition by the Company; |
| (b) | such Right of First Refusal Offer by the Company to DUQUESNE shall be in writing, shall set forth the anticipated size of the Right of First Refusal Event and the anticipated date on which pricing of the Right of First Refusal Event is expected to occur (which date shall not be less than ten days, nor more than fourteen days after the date of the delivery of the Right of First Refusal Offering); and |
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| (c) | within seven days after the delivery of said Right of First Refusal Offer, DUQUESNE shall deliver to the Company a written notice either accepting or rejecting the offer, in its sole and absolute discretion. Failure to deliver said notice within seven days conclusively shall be deemed a rejection of the offer. |
| 3.2 | DUQUESNE, shall have an exclusive right, but not an obligation, to participate in the Right of First Refusal Offer, in part or in full. |
| 4. | Nature of Deed |
| 4.1 | Nothing in this Deed shall create, or be deemed to create, a partnership or joint venture between the parties. |
| 4.2 | A person who is not a party to this Deed shall have no rights under the Contracts (Rights of Third Parties) Act 1999 to enforce any of its terms. |
| 4.3 | The obligations of each of the parties under this Deed shall be subject to all applicable legal and regulatory requirements including, without limitation, the Applicable Laws and no party shall be required to breach any such law, regulation, rule or code. |
| 4.4 | In the event of any conflict between the provisions of this Deed and the Company's articles of association, the provisions of this Deed shall prevail as between the parties. |
| 4.5 | The parties shall exercise all voting and other rights and powers available to them so as to give effect to the provisions of this Deed. |
| 5. | Further Assurance |
| 5.1 | The Company shall (at its own expense) promptly execute and deliver such documents and perform such acts as the Company and DUQUESNE may each reasonably require from time to time for the purpose of giving full effect to this Deed. |
| 6. | Variation and Waiver |
| 6.1 | No variation of this Deed shall be effective unless it is made by Deed and signed and delivered by the parties (or their authorised representatives). |
| 6.2 | The rights of any party in respect of a breach of this Deed shall not be affected by any party failing to exercise, or delaying in exercising, a right or remedy or by anything else except a specific authorised written waiver or release. A single or partial exercise of a right provided by this Deed or by law does not prevent its further exercise or the exercise of another right. |
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| 6.3 | Waiver of a breach of a term of this Deed or of a default under it does not constitute a waiver of another breach or default or affect the other terms of this Deed. |
| 6.4 | The rights provided in this Deed are cumulative and not exclusive of any other rights. |
| 7. | Confidentiality |
Each of the parties hereto hereby severally agrees and undertakes with and represents and warrants to each other as separate agreements undertakings representations and warranties that, except in so far as disclosure is required by the rules and regulations of AIM or any other regulatory authority or by any applicable law, including the securities laws of the United States and/or Securities and Exchange Commission in the context of the US IPO, they will not at any time hereafter divulge or communicate to or cause or enable any person to become aware of the contents of this Deed except with the prior written consent of each other party, such consent not to be unreasonably withheld or delayed. Notwithstanding the foregoing, each of the parties acknowledges and agrees that disclosure of the concurrent offering will be included in the registration statement filed with the Securities and Exchange Commission in connection with the US IPO.
| 8. | Communications |
Communications between the parties in relation to this Deed should be in writing and should be sufficiently delivered if sent in a letter by registered mail or by hand to the party at its/his address set out in this Deed (or an alternative address notified in writing by that party in accordance with this Clause 8) or via e-mail as set out below and notice should be treated as affected when the sending party sends an e-mail to oliver.friesen@guardianmetalresources.com for the Company and meng@duquesne.com for DUQUESNE.
| 9. | Entire Deed |
This Deed constitutes the entire agreement between the parties and supersede and extinguish all previous agreements, promises, assurances, warranties, representations and understandings between them, whether written or oral, relating to their subject matter.
| 10. | Severance |
| 10.1 | If any provision or part-provision of this Deed is or becomes invalid, illegal or unenforceable, it shall be deemed deleted, but that shall not affect the validity and enforceability of the rest of this Deed. |
| 10.2 | If any provision or part-provision of this Deed is deemed deleted under Clause 10.1, the parties shall negotiate in good faith to agree a replacement provision that, to the greatest extent possible, achieves the intended commercial result of the original provision. Any such amendment will be made in accordance with Clause 6. |
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| 11. | Counterparts |
| 11.1 | This Deed may be executed in a number of counterparts and by the parties on different counterparts but shall not be effective until each party has executed at least one counterpart. |
| 11.2 | Each counterpart, when executed, shall be an original but all the counterparts together constitute the same document. |
| 12. | Assignment |
None of the rights or obligations of any party under this Deed may be assigned or transferred.
| 13. | Indemnity |
| 13.1 | The Company shall fully indemnify and hold harmless DUQUESNE, its affiliates, members, managers, officers, employees and advisers (each an Indemnified Person) from and against any and all losses, liabilities, damages, costs, claims, demands, actions, proceedings, fines, penalties and expenses (including legal and professional fees on a full indemnity basis) suffered or incurred by any Indemnified Person arising out of or in connection with: |
| (a) | any claim, challenge, action or proceeding by any shareholder of the Company (or any group of shareholders), or by any other person, in connection with the grant, existence or exercise of the participation rights in favour of DUQUESNE under this Deed; or |
| (b) | any regulatory inquiry, investigation or enforcement action relating to the grant or disclosure of the participation rights to DUQUESNE. |
DUQUESNE shall promptly notify the Company of any claim in respect of which it seeks indemnification under this clause 13 and permit the Company, at its own cost and expense, to conduct and control the defence or settlement of such claim, provided that the Company shall not settle any claim in a manner that imposes any admission of liability or ongoing obligation on DUQUESNE without DUQUESNE's prior written consent.
| 14. | Governing Law and Jurisdiction |
| 14.1 | This Deed and any dispute or claim (including non-contractual disputes or claims) arising out of or in connection with it or its subject matter or formation shall be governed by and construed in accordance with the law of England and Wales. |
| 14.2 | Each party irrevocably agrees that the courts of England and Wales shall have exclusive jurisdiction to settle any dispute or claim (including non-contractual disputes or claims) arising out of or in connection with this deed or its subject matter or formation. |
IN WITNESS whereof this document has been duly executed as a deed which has been delivered by the Company and DUQUESNE the day and year first above written.
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| EXECUTED and DELIVERED as a Deed by | ) |
| DUQUESNE in the presence of: | ) |
| Witness signature: | /s/ Sue Meng | |
| Witness Name: | Sue Meng | |
| Witness Address: | 40 West 57th St. 25th Fl. NY, NY 10019, USA | |
| Witness Occupation: | General Counsel |
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| EXECUTED and DELIVERED a Deed by | ) | /s/ Oliver Friesen | |
| Guardian Metal Resources PLC | ) | ||
| acting by a director in the presence of: | ) | Oliver Friesen - CEO |
| Witness signature: | /s/ Ben Hodges | |
| Witness Name: | Ben Hodges | |
| Witness Address: | 66 Halstead Road, London, E11 2AZ | |
| Witness Occupation: | Accountant |
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Exhibit 10.4
DATED
------------
DEED OF INDEMNITY
between
(1) GUARDIAN METAL RESOURCES PLC
and
(2) [NAME OF DIRECTOR]
This deed is dated ____ February 2026
Parties
| (1) | Guardian Metal Resources plc incorporated and registered in England and Wales with company number 13351178 whose registered office is at C/O Orana Corporate LLP, 25 Eccleston Place, London, United Kingdom, SW1W 9NF (“Company”) |
| (2) | [NAME OF DIRECTOR] of C/O Orana Corporate LLP, 25 Eccleston Place, London, United Kingdom, SW1W 9NF (“Director”) |
BACKGROUND
| (A) | The Director is a director of the Company. |
| (B) | The Company's articles of association (“Articles”) contemplate that the Company will indemnify the Company's directors in relation to certain specific liabilities incurred by them in the performance of their duties as directors of the Company. |
| (C) | Accordingly, by resolution of the Board on 19 February 2026, the Company has agreed to enter into this deed of indemnity with the Director. |
Agreed terms
| 1. | Interpretation |
The following definitions and rules of interpretation apply in this deed.
| 1.1 | Definitions: |
“Application for Relief”: an application for relief made by the Director to the court under sections 661(3) or 661(4) or section 1157 of the CA 2006.
“Associated Company”: a company associated with the Company within the meaning of section 256(b) of the CA 2006.
“Board”: the board of directors of the Company, acting as such.
“Business Day”: a day, other than a Saturday, Sunday or public holiday in England, when banks in London are open for business.
“Claim”: has the meaning given in clause 2.1.
“CA 2006”: the Companies Act 2006.
“Favourable Conclusion”: has the meaning given in clause 6.6.
“Final”: in relation to any conviction, judgment or refusal of relief, has the meaning given in section 234(5) of the CA 2006.
“Liabilities”: all liabilities, costs, charges, expenses, judgments, settlements, compensation and other awards, damages and losses (including any direct, indirect or consequential losses and all interest, penalties, fines, taxes and legal costs (calculated on a full indemnity basis) and all other reasonable professional costs and expenses).
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“Loan Amounts”: has the meaning given in clause 6.2.
“Misconduct”: has the meaning given in clause 3.1(g).
“Proceeding”: any civil, criminal, administrative, investigative or other proceeding.
“Restricted Proceedings”: the proceedings referred to in clause 3.1(d) to the extent that they are in connection with any negligence, default, breach of duty or breach of trust (including alleged negligence, default, breach of duty or breach of trust) by the Director in relation to the Company or any of its Subsidiaries or otherwise arise by virtue of the Director having acted or purported to act as a director of the Company or of any of its Subsidiaries.
“Subsidiary”: has the meaning given in section 1159 of the CA 2006.
| 1.2 | Clause headings shall not affect the interpretation of this deed. |
| 1.3 | Unless the context otherwise requires, references to clauses are to the clauses of this deed. |
| 1.4 | Unless the context otherwise requires, words in the singular shall include the plural and in the plural shall include the singular. |
| 1.5 | Unless the context otherwise requires, a reference to one gender shall include a reference to the other genders. |
| 1.6 | A reference to legislation or a legislative provision is a reference to it as amended, extended or re-enacted from time to time. |
| 1.7 | A reference to legislation or a legislative provision shall include all subordinate legislation made from time to time under that statute or statutory provision. |
| 1.8 | A reference to writing or written includes email (unless otherwise expressly provided in this deed). |
| 1.9 | Any words following the terms including, include, in particular, for example or any similar expression shall be construed as illustrative and shall not limit the sense of the words, description, definition, phrase or term preceding those terms. |
| 1.10 | Other and otherwise are illustrative and shall not limit the sense of the words, description, definition, phrase or term preceding them. |
| 1.11 | Any reference to an English legal term for any action, remedy, method of judicial proceeding, legal document, legal status, court, official or any legal concept or thing shall, in respect of any jurisdiction other than England, be deemed to include a reference to that which most nearly approximates to the English legal term in that jurisdiction. |
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| 2. | Indemnity |
| 2.1 | Subject to the terms of this deed, the Company shall indemnify the Director in respect of all Liabilities arising out of or in connection with any Proceeding brought or threatened against the Director in any jurisdiction for negligence, default, breach of duty, breach of trust or otherwise, or relating to any Application for Relief, in connection with the Director's acts or omissions while in the course of acting or purporting to act as a director of the Company or of any of its Subsidiaries or which otherwise arises by virtue of the Director holding or having held such a position (“Claim”). |
| 2.2 | References in clause 2.1 to acts or omissions are to acts or omissions made or omitted to be made before, on or after the date of this deed, however: |
| (a) | if a company ceases to be a Subsidiary of the Company after the date of this deed, the Company shall only be liable to indemnify the Director in respect of Liabilities in relation to that company which were incurred before the date on which that company ceased to be a Subsidiary of the Company; and |
| (b) | the Director, as director of any company which becomes a Subsidiary of the Company after the date of this deed, shall be indemnified only in respect of Liabilities incurred after the date on which that company became a Subsidiary of the Company. |
| 2.3 | The Director shall continue to be indemnified under clause 2.1, notwithstanding that the Director may have ceased to be a director of the Company or any of its Subsidiaries. |
| 2.4 | Any obligation on the part of the Company to make a payment to the Director pursuant to clause 2.1 is conditional upon the Director having made an application in writing to the Company supported by the production of documentation which, in the reasonable opinion of the Board, is satisfactory evidence that: |
| (a) | the relevant Liability has been suffered or incurred by the Director and of the date(s) on which it was suffered or incurred and that it falls within the scope of the indemnity set out in clause 2.1; and |
| (b) | any costs and expenses which are to be reimbursed pursuant to clause 2.1 were properly incurred and are reasonable in amount. |
| 2.5 | If the Board is satisfied that the conditions set out in clause 2.4 have been fulfilled, it shall make payment to the Director within 28 days of the receipt of the evidence referred to in that clause. |
| 3. | Exclusions and limitations |
| 3.1 | The indemnity in clause 2.1 shall not apply to: |
| (a) | the extent prohibited by the CA 2006 or otherwise prohibited by law; |
| (b) | any Liability incurred by the Director to the Company or any Associated Company; |
| (c) | any Liability of the Director to pay a fine imposed in criminal proceedings, or a sum payable to a regulatory authority by way of a penalty in respect of non-compliance with any requirement of a regulatory nature (however arising); |
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| (d) | other than as provided in clause 6.6, any Liability incurred by the Director: |
| (i) | in defending criminal proceedings; |
| (ii) | in defending civil proceedings brought by the Company or any Associated Company; or |
| (iii) | in connection with any Application for Relief; |
| (e) | any Liability relating to any taxation or national insurance payable by the Director in connection with remuneration or other payments or benefits received from the Company or any of its Subsidiaries; |
| (f) | the extent that the Director is entitled to recover from any other person (including under any policy of insurance) any amount in relation to a Claim; or |
| (g) | any Liability incurred by, or any Claim made against, the Director which the Board reasonably determines arises out of the Director's fraud, wilful default, wilful misconduct, reckless conduct, dishonesty, deliberate criminal conduct or act of bad faith (“Misconduct”), save that if a court, tribunal or regulatory authority thereafter finally determines that the relevant Liability or Claim did not arise from the Director's Misconduct, the Director may, by notice to the Company, request payment of such amount from the Company as the Company would have been liable to pay under this deed had the Board not made such a determination and the Company shall, subject to the provisions of clause 2.4, pay such amount to the Director (without interest) within 28 days of the receipt of the evidence referred to in that clause. |
| 3.2 | Without prejudice to any other claims of the Company to repayment (whether in unjust enrichment or otherwise), in the event that the Company makes payment to the Director under this deed in respect of any Liability or Claim and it is subsequently determined by a court, tribunal or regulatory authority that that Liability or Claim was for, arose out of or was attributable to the Director’s Misconduct, the Director will immediately repay such payment to the Company. |
| 4. | Notification and conduct of claims |
| 4.1 | If the Director receives any demand relating to any Claim or becomes aware of any circumstances which might or may reasonably be expected to give rise to the Company being required to indemnify the Director under clause 2.1 and before incurring any costs, charges or expenses in respect of any Claim (including, but not limited to, securing legal representation), the Director shall: |
| (a) | as soon as reasonably practicable, give written notice of the circumstances to the Company, as well as any other information which the Company may reasonably request from time to time; |
| (b) | take all reasonable action to mitigate any Liability suffered by the Director in respect of the circumstances giving rise to the Claim; |
| (c) | take all such action as the Company may reasonably request to avoid, dispute, resist, appeal or defend any claim and shall not make any admission of liability, agreement, settlement or compromise with any person in relation to any Claim without the prior written consent of the Company, such consent not to be unreasonably withheld; |
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| (d) | forward all documents received by the Director in respect of the Claim to the Company as soon as reasonably practicable following receipt; |
| (e) | assist the Company as it may reasonably require in resisting, defending or settling the Claim; and |
| (f) | provide to the Company such information about the nature and amount of costs incurred by the Director in respect of a Claim as the Company may reasonably request from time to time. |
| 4.2 | Notwithstanding the provisions of clause 4.1, the Director shall not be required to provide any documents or information to the Company where doing so would result in a loss of privilege in such documents or information or where the Director is legally or contractually prevented from providing such documents or information. |
| 4.3 | The Company or a Subsidiary (as the case may be) will be entitled at any time to take over, negotiate and conduct in the Director's name the defence or settlement of any Claim or to prosecute in the Director's name for its own benefit any proceedings relating to a Claim. |
| 4.4 | If the Company or a Subsidiary exercises its rights under clause 4.3, the Company shall: |
| (a) | consult with the Director in relation to the conduct of the Claim or proceedings on aspects of the Claim or proceedings materially relevant to the Director and keep the Director reasonably informed of material developments in the Claim or proceedings, provided that the Company or Subsidiary shall be under no obligation to provide any information the provision of which is reasonably likely to adversely affect the Company's or Subsidiary's ability to claim in respect of the relevant loss under any applicable policy of insurance; |
| (b) | take into account the Director's reasonable requests related to the Claim or proceedings (including any settlement) on issues which may be reasonably likely to result in material damage to the Director's reputation; and |
| (c) | have full discretion in the conduct or settlement of any Claim or proceedings relating to such Claim provided the Director is not required to make any contribution to the settlement and the settlement contains no admission of liability by the Director. |
| 5. | Payments |
| 5.1 | The Company shall, in the event that a payment is made to the Director under this deed in respect of a particular Liability, be entitled to recover from the Director an amount equal to any payment received by the Director under any policy of insurance or from any other third party source to the extent that such payment relates to the Liability, or if the payment received by the Director is greater than the payment made under this deed, a sum equal to the payment made under this deed. The Director shall pay over such sum promptly on the Company's request. |
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| 5.2 | Where Clause 2.1 applies, the Company shall pay such amount to the Director as shall after the payment of any tax thereon leave the Director with sufficient funds to meet any Liability to which this deed applies. For the avoidance of doubt, when calculating the amount of any such tax the amount of any tax deductions, credits or reliefs which are or may be available to the Director in respect of the relevant payment under this deed received by the Director or any payment made by the Director to a third party in respect of (or in or towards the discharge of) the relevant Liability, but no other deductions, credits, reliefs or payments, is to be taken into account. In the event that any amount is paid to the Director under this deed but a tax deduction, credit or relief is (or becomes) available to the Director in respect of the relevant payment under this deed, or in respect of any payment made by the Director to a third party in respect of (or in or towards the discharge of) the relevant Liability, which was not taken into account in calculating the amount payable in respect of the relevant payment under this deed, the Director shall promptly make a payment to the Company of such an amount as is equal to the benefit of such deduction, credit or relief which was not taken into account. |
| 6. | Funding of legal costs |
| 6.1 | Subject to the terms of this deed, the Company shall loan to the Director such amounts as are required to meet such reasonable legal and other costs of Restricted Proceedings as are incurred (or are to be incurred) by the Director, subject to and in accordance with any terms and conditions imposed, by law, under the Articles, , the AIM Rules for Companies and UK Market Abuse Regulations (Regulation (EU) 596/2014), from time to time or such other body as may be applicable without obtaining shareholder approval. |
| 6.2 | The Company shall lend such amounts as provided for under clause 6.1 (“Loan Amounts”) to the Director within 14 days of receiving notice in writing from the Director of the amount required together with such evidence of the costs having been or to be properly incurred as the Company may reasonably require. |
| 6.3 | No interest shall accrue on the Loan Amounts. |
| 6.4 | All Loan Amounts outstanding to a Director in respect of particular Restricted Proceedings shall be repaid by the Director if, in respect of those proceedings (as applicable): |
| (a) | the Director is convicted; |
| (b) | judgement is given against the Director; or |
| (c) | the court refuses to grant the Director relief on the application, |
and such outstanding Loan Amounts shall be repaid no later than the date when the conviction, judgment or the refusal of relief (as applicable) becomes Final.
| 6.5 | The Company shall not be required to lend any amount under this clause 6, and any amounts lent shall become immediately repayable upon demand from the Company, to the extent that the Board reasonably determines that the Restricted Proceedings arose out of the Director's Misconduct. |
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| 6.6 | In the event that Restricted Proceedings are either (i) abandoned, withdrawn or discontinued, (ii) settled, (iii) a permanent stay is granted, or (iv) a final determination of the court is made (or proceedings otherwise finally conclude) without any of the events referred to in clause 6.4(a) to clause 6.4(c) (as applicable) occurring (each such conclusion of proceedings being a “Favourable Conclusion”) then the indemnity provided under clause 2.1 shall thereafter apply with respect to all reasonable legal and other costs of those Restricted Proceedings as were incurred by the Director. Any liability of the Company to so indemnify the Director shall be set-off against any liability of the Director to repay to the Company any Loan Amounts outstanding in respect of those Restricted Proceedings; and shall be subject to the exclusions and limitations contained in clause 3, and clause 4 shall be applied with such changes as are appropriate. |
| 6.7 | In the event that a Favourable Conclusion is reached in relation to particular Restricted Proceedings but any Loan Amount lent to the Director in relation to those proceedings remains outstanding in circumstances where the Company is (for any reason) not liable or is no longer liable to indemnify or further indemnify the Director in relation to those Restricted Proceedings, then all such Loan Amounts which remain outstanding shall be immediately repayable on demand from the Company. |
| 7. | Subrogation |
In the event that the Company makes any payment under this deed, the Company shall be subrogated to the extent of such payment to all of the Director's rights of recovery against third parties (including any claim under any applicable directors' and officers' insurance policy) in respect of the payment and the Director shall do everything that may be necessary to secure any such rights including:
| (a) | the execution of any documents necessary to enable the Company effectively to bring an action in the name of the Director; and |
| (b) | the provision of assistance as a witness. |
| 8. | Assignment and other dealings |
| 8.1 | The Company may at any time assign (or deal in any other manner with) any or all of its rights and obligations under this deed, provided that it gives prior written notice of such dealing to the Director. In the event of any such assignment by the Company, all references in this deed to the Company shall be deemed to include its assigns. |
| 8.2 | The Director shall not assign, transfer, mortgage, charge, subcontract, delegate, declare a trust over or deal in any other manner with any of the Director's rights and obligations under this deed. |
| 9. | Entire agreement |
This deed constitutes the entire agreement between the parties and supersedes and extinguishes all previous agreements, promises, assurances, warranties, representations and understandings between them, whether written or oral, relating to its subject matter.
| 10. | Severance |
| 10.1 | If any provision or part-provision of this deed is or becomes invalid, illegal or unenforceable, it shall be deemed modified to the minimum extent necessary to make it valid, legal and enforceable. If such modification is not possible, the relevant provision or part-provision shall be deemed deleted. Any modification to or deletion of a provision or part-provision under this clause 10 shall not affect the validity and enforceability of the rest of this deed. |
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| 10.2 | If one party gives notice to the other of the possibility that any provision or part-provision of this deed is invalid, illegal or unenforceable, the parties shall negotiate in good faith to amend such provision so that, as amended, it is legal, valid and enforceable, and, to the greatest extent possible, achieves the intended commercial result of the original provision. |
| 11. | Notices and demands |
| 11.1 | Any notice or demand given to a party under or in connection with this deed shall be in writing and shall be delivered by hand or by pre-paid first-class post or other next working day delivery service at its registered office (if a company) or the address given in this deed (in any other case) or as otherwise notified in writing to the other party. |
| 11.2 | Any notice or demand shall be deemed to have been received: |
| (a) | if delivered by hand, on signature of a delivery receipt; or |
| (b) | if sent by pre-paid first-class post or other next working day delivery service, at 9.00 am on the second Business Day after posting. |
| 11.3 | This clause does not apply to the service of any proceedings or other documents in any legal action or, where applicable, any arbitration or other method of dispute resolution. |
| 12. | Variation and waiver |
| 12.1 | No variation of this deed shall be effective unless it is in writing and signed by the parties (or their authorised representatives). |
| 12.2 | No failure or delay by a party to exercise any right or remedy provided under this deed or by law shall constitute a waiver of that or any other right or remedy, nor shall it prevent or restrict the further exercise of that or any other right or remedy. No single or partial exercise of such right or remedy shall prevent or restrict the further exercise of that or any other right or remedy. |
| 13. | Counterparts |
| 13.1 | This deed may be executed in any number of counterparts, each of which when executed and delivered shall constitute a duplicate original, but all the counterparts shall together constitute the one deed. |
| 13.2 | Transmission of an executed counterpart of this deed (but for the avoidance of doubt not just a signature page) by email (in PDF, JPEG or other agreed format) shall take effect as delivery of an executed "wet-ink" counterpart of this deed. If either method of transmission is adopted, without prejudice to the validity of the deed thus made, each party shall provide the others with the "wet-ink" hard copy original of their counterpart as soon as reasonably possible thereafter. |
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| 14. | Third party rights |
This deed does not give rise to any rights under the Contracts (Rights of Third Parties) Act 1999 to enforce any term of this deed.
| 15. | Governing law and jurisdiction |
| 15.1 | This deed and any dispute or claim (including non-contractual disputes or claims) arising out of or in connection with it or its subject matter or formation shall be governed by and construed in accordance with the law of England and Wales. |
| 15.2 | Each party irrevocably agrees that the courts of England and Wales shall have exclusive jurisdiction to settle any dispute or claim (including non-contractual disputes or claims) arising out of or in connection with this deed or its subject matter or formation. |
This document has been executed as a deed and is delivered and takes effect on the date stated at the beginning of it.
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| SIGNED | ) | ||||
| ) | |||||
| GUARDIAN METAL RESOURCES PLC, acting by _________________, a director | ) | ||||
| ) | |||||
| (Print name): | ) | (Sign name): | |||
| ) | |||||
| a director | ) | ||||
| in the presence of: | ) | ||||
| ) | |||||
| Witness Name: | |||||
| Witness Signature: | |||||
| Witness Address: | |||||
| SIGNED | ) | ||||
| ) | |||||
| [•] | ) | ||||
| ) | |||||
| (Print name): | ) | (Sign name): | |||
| ) | |||||
| ) | |||||
| in the presence of: | ) | ||||
| ) | |||||
| Witness Name: | |||||
| Witness Signature: | |||||
| Witness Address: | |||||
11
Exhibit 14.1
GUARDIAN METAL RESOURCES PLC
(the “Company”)
Code of Business Conduct and Ethics
Adopted [●], 2026
Introduction
This Code of Business Conduct and Ethics (the “Code”) has been adopted by our Board of Directors (the “Board”) and summarises the standards that must guide our actions. Although they cover a wide range of business practices and procedures, these standards cannot and do not cover every issue that may arise, or every situation in which ethical decisions must be made, but rather set forth key guiding principles that represent Company policies and establish conditions for employment at the Company.
We must strive to foster a culture of honesty and accountability. Our commitment to the highest level of ethical conduct should be reflected in all of the Company’s business activities, including, but not limited to, relationships with employees, customers, suppliers, competitors, the government, the public and our shareholders. All of our employees, officers and directors must conduct themselves according to the language and spirit of this Code and seek to avoid even the appearance of improper behavior. Even well-intentioned actions that violate the law or this Code may result in negative consequences for the Company and for the individuals involved.
One of our Company’s most valuable assets is our reputation for integrity, professionalism and fairness. We should all recognise that our actions are the foundation of our reputation and adhering to this Code and applicable laws is imperative.
The Code does not supersede the Company’s existing policies from time to time, including but not limited to our Anti-Corruption and Bribery Policy, Inside Information, Insider Lists and Delayed Disclosure Policy, Securities Dealing Code, Whistleblowing Policy and Social Media Policy, each of which must be strictly complied with by all employees, officer and directors.
Conflicts of Interest
Our employees, officers and directors have an obligation to conduct themselves in an honest and ethical manner and to act in the best interest of the Company. All employees, officers and directors should endeavor to avoid situations that present a potential or actual conflict between their interest and the interest of the Company.
A “conflict of interest” occurs when a person’s private interest interferes in any way, or even appears to interfere, with the interests of the Company as a whole, including those of its subsidiaries and affiliates. A conflict of interest may arise when an employee, officer or director takes an action or has an interest that may make it difficult for him or her to perform his or her work objectively and effectively. A conflict of interest may also arise when an employee, officer or director (or a member of his or her family) receives improper personal benefits as a result of the employee’s, officer’s or director’s position in the Company.
Although it would not be possible to describe every situation in which a conflict of interest may arise, the following are examples of situations that may constitute a conflict of interest:
| ─ | Working, in any capacity, for a competitor, customer or supplier while employed by the Company. |
| ─ | Accepting gifts of more than modest value or receiving personal discounts (if such discounts are not generally offered to the public) or other benefits as a result of your position in the Company from a competitor, customer or supplier. |
| ─ | Competing with the Company for the purchase or sale of property, products, services or other interests. |
| ─ | Having an interest in a transaction involving the Company, a competitor, customer or supplier (other than as an employee, officer or director of the Company and not including routine investments in publicly traded companies). |
| ─ | Receiving a loan or guarantee of an obligation as a result of your position with the Company. |
| ─ | Directing business to a supplier owned or managed by, or which employs, a relative or friend. |
Situations involving a conflict of interest may not always be obvious or easy to resolve. You should report actions that may involve a conflict of interest to the Audit Committee of the Board.
In order to avoid conflicts of interests, senior executive officers and directors must disclose to the Audit Committee of the Board any material transaction or relationship that reasonably could be expected to give rise to such a conflict. Conflicts of interests involving the Audit Committee of the Board shall be disclosed to the Board.
In the event that an actual or apparent conflict of interest arises between the personal and professional relationship or activities of an employee, officer or director, the employee, officer or director involved is required to handle such conflict of interest in an ethical manner in accordance with the provisions of this Code.
Quality of Public Disclosures
The Company has a responsibility to provide full and accurate information in our public disclosures, in all material respects, about the Company’s financial condition and results of operations. Our reports and documents filed with or submitted to the United States Securities and Exchange Commission and our other public communications about our financial and business condition shall include full, fair, accurate, timely and understandable disclosure.
Compliance with Laws, Rules and Regulations
We are strongly committed to conducting our business affairs with honesty and integrity and in full compliance with all applicable laws, rules and regulations. No employee, officer or director of the Company shall commit an illegal or unethical act, or instruct others to do so, for any reason.
Compliance with this Code and Reporting of Any Illegal or Unethical Behavior
All employees, directors and officers are expected to comply with all of the provisions of this Code. The Code will be strictly enforced and violations will be dealt with immediately, including by subjecting persons who violate its provisions to corrective and/or disciplinary action such as dismissal or removal from office. Violations of the Code that involve illegal behavior will be reported to the appropriate authorities.
Situations which may involve a violation of ethics, laws, rules, regulations or this Code may not always be clear and may require the exercise of judgment or the making of difficult decisions. Employees, officers and directors should promptly report any concerns about a violation of ethics, laws, rules, regulations or this Code to their supervisors or the person or body designated by the Company from time to time to administer and enforce this Code (the “Relevant Department”) or, in the case of accounting, internal accounting controls or auditing matters, the Audit Committee of the Board. Interested parties may also communicate directly with the Company’s non-management directors through contact information located in the Company’s annual report on Form 20-F.
Any concerns about a violation of ethics, laws, rules, regulations or this Code by any senior executive officer, director or employee should be reported promptly to the Audit Committee of the Board. Any such concerns involving the Audit Committee should be reported to the Board. Reporting of such violations may also be done anonymously through email to the Company at a designated email address for compliance reporting in accordance with the Company’s Whistleblower Policy. An anonymous report should provide enough information about the incident or situation to allow the Company to investigate properly. If concerns or complaints require confidentiality, including keeping an identity anonymous, the Company will endeavour to protect this confidentiality, subject to the consent of the whistleblower, applicable laws, regulations or legal proceedings.
The Company encourages all employees, officers and directors to report any suspected violations promptly and intends to thoroughly investigate any good faith reports of violations. The Company will not tolerate any kind of retaliation for reports or complaints regarding misconduct that were made in good faith. Open communication of issues and concerns by all employees, officers and directors without fear of retribution or retaliation is vital to the successful implementation of this Code. All employees, officers and directors are required to cooperate in any internal investigations of misconduct and unethical behavior.
The Company recognises the need for this Code to be applied equally to everyone it covers. The Relevant Department of the Company will have primary authority and responsibility for the enforcement of this Code, subject to the supervision of the Audit Committee of the Board, and the Company will devote the necessary resources to enable the Relevant Department to establish such procedures as may be reasonably necessary to create a culture of accountability and facilitate compliance with this Code. Questions concerning this Code should be directed to the Relevant Department.
The provisions of this section are qualified in their entirety by reference to the following section.
Reporting Violations to a Governmental Agency
Employees have the right under applicable laws to certain protections for cooperating with or reporting legal violations to governmental agencies or entities and self-regulatory organisations. As such, nothing in this Code is intended to prohibit any employee from disclosing or reporting violations to, or from cooperating with, a governmental agency or entity or self-regulatory organisation, and employees may do so without notifying the Company. The Company may not retaliate against an employee for any of these activities, and nothing in this Code or otherwise requires an employee to waive any monetary award or other payment that he or she might become entitled to from a governmental agency or entity, or self-regulatory organisation.
Waivers and Amendments
Any waiver (including any implicit waiver) of the provisions in this Code for executive officers or directors may only be granted by the Board or a committee thereof and will be promptly disclosed to the Company’s shareholders. Any such waiver will also be disclosed in the Company’s annual report on Form 20-F. Amendments to this Code must be approved by the Board and will also be disclosed in the Company’s annual report on Form 20-F.
Trading on Inside Information
Using non-public Company information to trade in securities, or providing a family member, friend or any other person with non-public Company information, is illegal. All non-public, Company information should be considered inside information and should never be used for personal gain. You are required to familiarise yourself and comply with the Company’s Inside Information, Insider Lists and Delayed Disclosure Policy and Securities Dealing Code, copies of which are distributed to all employees, officers and directors and are available from the Relevant Department. You should contact the Relevant Department with any questions about your ability to buy or sell securities.
Protection of Confidential Proprietary Information
Confidential proprietary information generated by and gathered in our business is a valuable Company asset. Protecting this information plays a vital role in our continued growth and ability to compete, and all proprietary information should be maintained in strict confidence, except when disclosure is authorised by the Company or required by applicable laws, regulations or legal proceedings.
Proprietary information includes all non-public information that might be useful to competitors or that could be harmful to the Company, its customers or its suppliers if disclosed. Intellectual property such as trade secrets, patents, trademarks and copyrights, as well as business, research and new product plans, objectives and strategies, records, databases, salary and benefits data, employee medical information, customer, employee and suppliers lists and any unpublished financial or pricing information must also be protected.
Unauthorised use or distribution of proprietary information violates Company policy and could be illegal. Such use or distribution could result in negative consequences for both the Company and the individuals involved, including potential legal and disciplinary actions. We respect the property rights of other companies and their proprietary information and require our employees, officers and directors to observe such rights.
Your obligation to protect the Company’s proprietary and confidential information continues even after you leave the Company, and you must return all proprietary information in your possession upon leaving the Company.
The provisions of this section are qualified in their entirety by the section entitled “Reporting Violations to Governmental Agencies” above.
Protection and Proper Use of Company Assets
Protecting Company assets against loss, theft or other misuse is the responsibility of every employee, officer and director. Loss, theft and misuse of Company assets directly impact our profitability. Any suspected loss, misuse or theft should be reported to a supervisor or the Relevant Department.
The sole purpose of the Company’s equipment, vehicles, supplies and electronic resources (including hardware, software and the data thereon) is the conduct of our business. They may only be used for Company business consistent with Company guidelines.
Corporate Opportunities
Employees, officers and directors are prohibited from taking for themselves business opportunities that are discovered through the use of corporate property, information or position. No employee, officer or director may use corporate property, information or position for personal gain, and no employee, officer or director may compete with the Company. Competing with the Company may involve engaging in the same line of business as the Company or any situation in which the employee, officer or director takes away from the Company opportunities for sales or purchases of property, products, services or interests. Officers and directors owe a duty to the Company to advance its legitimate interests when the opportunity to do so arises. Employees are expected to act with honesty and in the best interests of the Company.
Fair Dealing
Each employee, officer and director of the Company should endeavor to deal fairly with customers, suppliers, competitors, the public and one another at all times and in accordance with ethical business practices. No one should take unfair advantage of anyone through manipulation, concealment, abuse of privileged information, misrepresentation of material facts or any other unfair dealing practice. Each employee, officer and director must act in accordance with the Company’s Anti-Corruption and Bribery policy and no bribes, kickbacks or other similar payments in any form shall be made directly or indirectly to or for anyone for the purpose of obtaining or retaining business or obtaining any other favorable action. In the event of a violation of these provisions, the Company and any employee, officer or director involved may be subject to disciplinary action as well as potential civil or criminal liability for violation of this policy.
Occasional business gifts to, or entertainment of, non-government employees in connection with establishing or maintaining good business relationships, improving or maintaining the Company’s image or reputation or marketing or presenting the Company’s products and/or services effectively are generally deemed appropriate in the conduct of Company business. However, these gifts should be given infrequently and their value should be modest. Gifts or entertainment in any form that would likely result in a feeling or expectation of personal obligation should not be extended or accepted.
Practices that are acceptable in a commercial business environment may be against the law or the policies governing national or local government employees. Therefore, no gifts or business entertainment of any kind may be given to any government employee, politician or representative of a political party without the prior approval of a supervisor or the Relevant Department.
Employees, officers and directors must at all times uphold applicable laws relevant to countering bribery and corruption, including but not limited to the Bribery Act 2010. Except in certain limited circumstances, the United States Foreign Corrupt Practices Act (the “FCPA”) prohibits giving anything of value directly or indirectly to any “non-U.S. official” for the purpose of obtaining or retaining business. When in doubt as to whether a contemplated payment or gift may violate the FCPA, contact a supervisor or the Audit Committee of the Board before taking any action.
Compliance with U.S. Antitrust and UK Competition Laws
U.S. antitrust and UK competition laws prohibit agreements among competitors on such matters as prices, terms of sale to customers and the allocation of markets or customers. These laws can be complex, and violations may subject the Company and its employees to criminal sanctions, including fines, jail time and civil liability. If you have any questions about our antitrust and competition compliance policies, consult the Relevant Department.
Political Contributions and Activities
The Company does not make contributions to political parties and only makes charitable donations that are legal and ethical under local laws and practices. This policy applies solely to the use of Company assets and is not intended to discourage or prevent individual employees, officers or directors from making political contributions or engaging in political activities on their own behalf. No one may be reimbursed directly or indirectly by the Company for personal political contributions.
Environment, Health and Safety
We are committed to conducting our business in compliance with all applicable environmental and workplace health and safety laws and regulations. We strive to provide a safe and healthy work environment for our employees and to avoid adverse impact and injury to the environment and the communities in which we conduct our business. Achieving this goal is the responsibility of all officers, directors and employees.
Dealings with the Community
We are committed to being a responsible member of, and recognise the mutual benefits of engaging and building relationships with, the communities in which we operate. Wherever the Company operates, we strive to make a positive and meaningful contribution to the surrounding community and to ensure the distribution of a fair share of benefits to all stakeholders impacted by its activities, including the surrounding community. We strongly encourage our employees to play a positive role in the community.
Doing Business with Others
We strive to promote the application of the standards of this Code by those with whom we do business. Our policies, therefore, prohibit the engaging of a third party to perform any act prohibited by law or by this Code, and we shall avoid doing business with others who intentionally and continually violate the law or the standards of this Code.
Accuracy of Company Financial Records
We maintain the highest standards in all matters relating to accounting, financial controls, internal reporting and taxation. All financial books, records and accounts must accurately reflect transactions and events and conform both to required accounting principles and to the Company’s system of internal controls. Records shall not be distorted in any way to hide, disguise or alter the Company’s true financial position.
Retention of Records
All Company business records and communications shall be clear, truthful and accurate. Employees, officers and directors of the Company shall avoid exaggeration, guesswork, legal conclusions and derogatory remarks or characterisations of people and companies. This applies to communications of all kinds, including email and “informal” notes or memos. Records should always be handled according to the Company’s record retention policies. If an employee, officer or director is unsure whether a document should be retained, consult a supervisor or the Relevant Department before proceeding.
Anti-Money Laundering
We are committed to preserving our reputation in the financial community by assisting in efforts to combat money laundering and terrorist financing. Money laundering is the practice of disguising the ownership or source of illegally obtained funds through a series of transactions to “clean” the funds so they appear to be proceeds from legal activities.
We have adopted measures to reduce the extent to which the Company’s facilities, products and services can be used for a purpose connected with market abuse or financial crimes. Additionally, where necessary, we screen customers, potential customers and suppliers to ensure that our products and services cannot be used to facilitate money laundering or terrorist activity. If you have any questions about our internal anti-money laundering process and procedure, consult the Relevant Department.
Social Media
Unless you are authorised by the Company, you are discouraged from discussing the Company as part of your personal use of social media. While business should only be conducted through approved channels, we understand that social media is used as a source of information and as a form of communicating with friends, family and workplace contacts. Your behaviour on any social networking site should be consistent with your behaviour generally. Inappropriate or disparaging comments about the Company, employees or customers / suppliers of the Company may be treated as misconduct, as will harassing, bullying or discriminating towards others.
When you are using social media and identify yourself as a Company employee, officer or director or mention the Company incidentally, for instance on a Facebook page or professional networking site, please remember the following:
| ─ | Never disclose confidential information about the Company or its business, customers or suppliers. |
| ─ | Make clear that any views expressed are your own and not those of the Company. |
| ─ | Be respectful of your colleagues and all persons associated with the Company, including customers and suppliers. |
| ─ | Promptly report to the corporate communications department any social media content which inaccurately or inappropriately discusses the Company. |
| ─ | Never respond to any information, including information that may be inaccurate about the Company. |
| ─ | Never engage in online discussions regarding the Company or its affairs or its securities through internet chat rooms, message boards or investor sites. |
| ─ | Never post documents, parts of documents, images or video or audio recordings that have been made with Company property or of Company products, services or people or at Company functions or events. |
Professional Networking
Online networking on professional or industry sites, such as LinkedIn, has become an important and effective way for colleagues to stay in touch and exchange information. Employees, officers and directors should use good judgment when posting information about themselves or the Company on any of these services.
What you post about the Company or yourself will reflect on all of us. When using professional networking sites, you should observe the same standards of professionalism and integrity described in our code and follow the social media guidelines outlined above.
Drug-Free, Violence-Free Workplace
The use of alcohol and drugs can impair your ability to work effectively and productively. Except at approved Company functions, or with appropriate authorisation, you may not drink alcohol on Company premises.
You are prohibited from working while your performance is impaired by alcohol or any other drug whether legal or illegal. Additionally, you may not possess any non-pharmaceutical drugs on Company premises or at work-related functions.
We strictly prohibit acts of hostility, intimidation or violence towards others in the workplace and in places where our business is being conducted. You may not bring firearms, explosives or any other weapons onto Company premises, or to any work-related setting, regardless of whether you are licensed to carry such weapons.
Government Inquiries
The Company cooperates with government agencies and authorities. Forward all requests for information, other than routine requests, to the Relevant Department immediately to ensure that we respond appropriately.
All information provided must be truthful and accurate. Never mislead any investigator. Do not ever alter or destroy documents or records subject to an investigation.
Review
This Code may be reviewed by the Board and supplemented by relevant policies as the Company deems appropriate from time to time.
Exhibit 21.1
| Country | Ownership Interest | ||||
| Entity Name | |||||
| BFM Resources Inc. | United States | 100 | % | ||
| GMET Tungsten Holding Co. | United States | 100 | % | ||
| Golden Metal Resources LLC | United States | 100 | % | ||
| Guardian Gold Ltd. | England and Wales | 100 | % | ||
| Pilot Metals Inc. | United States | 100 | % |
Exhibit 23.1
CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
We hereby consent to the use in this Registration Statement on Form F-1 of Guardian Metal Resources PLC of our report dated December 16, 2025 relating to the financial statements of Guardian Metal Resources PLC, which appears in this Registration Statement. We also consent to the reference to us under the heading “Experts” in such Registration Statement.
| /s/ PKF Littlejohn LLP | ||
| PKF Littlejohn LLP | ||
| London, United Kingdom | ||
| February 26, 2026 |
Exhibit 23.2

RESPEC Company, LLC
3824 Jet Drive
Rapid City, SD 57703
Consent of RESPEC Company, LLC
In connection with the Guardian Metal Resources PLC’s Registration Statement on Form F-1 (the “Registration Statement”), the undersigned consents to:
| i. | The filing of the technical report summary titled “S-K 1300 Technical Report Summary Pilot Mountain Tungsten Project, Mineral County, Nevada, USA” (the “Pilot Mountain TRS”), with an effective date of December 15, 2025, as an exhibit to and referenced in the Form F-1; |
| ii. | the incorporation by reference of the Pilot Mountain TRS in the Registration Statement, any other periodic reports filed by the company, including amendments or supplements thereto; |
| iii. | the use of and references to our name in connection with the Pilot Mountain TRS and the Registration Statement, any other periodic reports filed by the company, including amendments or supplements thereto; and |
| iv. | the information derived, summarized, quoted or referenced from the Pilot Mountain TRS, or portions thereof, that was prepared by us, that we supervised the preparation of, and/or that was reviewed and approved by us, that is included or incorporated by reference in the Registration Statement. |
RESPEC Company, LLC, is responsible for authoring, and this consent pertains to, the following sections of the Pilot Mountain TRS: All sections of the report excluding Section 1.4, Section 10.0, and Section 17.0.
Report Effective Date: December 15, 2025
Consent Date: February 26, 2026
| /s/ Michael S. Lindholm | |
| Michael S. Lindholm | |
| RESPEC Company, LLC |

Exhibit 23.3
Argus Media Group
February 26, 2026
Guardian Metal Resources PLC
Re: Consent of Argus Media Group
Dear Sirs,
We refer to the registration statement on Form F-1 (the “Registration Statement”) to be filed by Guardian Metal Resources PLC (the “Company”) with the United States Securities and Exchange Commission (the “SEC”) under the Securities Act of 1933, as amended, in connection with its proposed initial public offering (the “Proposed IPO”).
We hereby consent to the use of our name and the inclusion of information, data and statements from our industry report commissioned by the Company, entitled “Tungsten Market Outlook” dated November 17, 2025 (the “Report”), and any amendments or updates thereto, in the following: (i) the Registration Statement and any amendments, including under “Prospectus Summary,” “Industry,” and “Business”; (ii) written correspondence with the SEC; (iii) future SEC filings by the Company, including Forms 20-F, 6-K and other filings (collectively, the “SEC Filings”); (iv) the Company’s and its affiliates’ websites and publicity materials; (v) institutional and retail roadshows and related activities for the Proposed IPO; and (vi) other marketing materials in connection with the Proposed IPO.
We further consent to the filing of this letter as an exhibit to the Registration Statement, any amendments thereto, and any other SEC Filings for the purposes stated above.
For and on behalf of
Argus Media Group
| /s/ Chris Hairel |
Name: Chris Hairel
Title: Vice President, Consulting
| respec.com S-K1300 TECHNICAL REPORT SUMMARY PILOT MOUNTAIN TUNGSTEN PROJECT MINERALCOUNTY, NEVADA, USA REPORT RSI-3732 PREPARED BY RESPEC 210 South Rock Boulevard Reno, Nevada 89502 United States PREPARED FOR Guardian Metal Resources PLC Salisbury House, London Wall London EC2M 5PS United Kingdom DECEMBER 15,2025 Project Number M0488.25002 |
| RSI-3732 i 2 RESPEC Company, LLC 3824 Jet Drive Rapid City, SD 57703 Consent of RESPEC Company,LLC In connection with the Guardian Metal Resources PLC’s Registration Statement on Form F-1 (the “Registration Statement”), the undersigned consents to: i. The filing of the technical report summary titled “S-K 1300 Technical Report Summary Pilot Mountain Tungsten Project, Mineral County, Nevada, USA” (the “Pilot Mountain TRS”), with an effective date of December 15, 2025, as an exhibit to and referenced in the Form F-1; ii. the incorporation by reference of the Pilot Mountain TRS in the Registration Statement, any other periodic reports filed by the company, including amendments or supplements thereto; iii. the use of and references to our name in connection with the Pilot Mountain TRS and the Registration Statement, any other periodic reports filed by the company, including amendments or supplements thereto; and iv. the information derived, summarized, quoted or referenced from the Pilot Mountain TRS, or portions thereof, that was prepared by us, that we supervised the preparation of, and/or that was reviewed and approved by us, that is included or incorporated by reference in the Registration Statement. RESPEC Company, LLC, is responsible for authoring, and this consent pertains to, the following sections of the Pilot Mountain TRS: All sections of the report excluding Section 1.4, Section 10.0, and Section 17.0. Report Effective Date: December 15, 2025 Consent Date: February 26, 2026 _______________________ Michael S. Lindholm RESPEC Company, LLC /s/ Michael S. Lindholm |
| RSI-3732 ii 2 TABLE OF CONTENTS 1.0 EXECUTIVE SUMMARY .................................................................................................................................................... 1 1.1 PROPERTY DESCRIPTION AND OWNERSHIP ................................................................................................................................. 1 1.2 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE, AND PHYSIOGRAPHY ............................................ 2 1.3 MINING AND EXPLORATION HISTORY............................................................................................................................................. 2 1.4 GEOLOGICAL SETTING AND MINERALIZATION............................................................................................................................. 3 1.5 EXPLORATION ........................................................................................................................................................................................ 4 1.5.1 Rock Chip Sampling............................................................................................................................................................... 4 1.5.2 Geophysical Surveys.............................................................................................................................................................. 4 1.5.3 Drilling ....................................................................................................................................................................................... 4 1.6 DRILLING.................................................................................................................................................................................................. 4 1.7 METALLURGICAL TESTING AND MINERAL PROCESSING .......................................................................................................... 5 1.8 MINERAL RESOURCE ESTIMATE ....................................................................................................................................................... 5 1.9 INTERPRETATIONS AND CONCLUSIONS........................................................................................................................................ 6 1.9.1 Adequacy of the Data used in Estimating Mineral Resources.................................................................................... 6 1.9.2 Geology and Mineral Resources......................................................................................................................................... 7 1.10 RECOMMENDATIONS........................................................................................................................................................................... 8 1.10.1 Phase 1...................................................................................................................................................................................... 8 1.10.2 Phase 2...................................................................................................................................................................................... 9 2.0 INTRODUCTION ............................................................................................................................................................... 10 2.1 PROJECT SCOPE AND TERMS OF REFERENCE............................................................................................................................. 10 2.2 RELIANCE ON OTHER EXPERTS......................................................................................................................................................... 11 2.3 FREQUENTLY USED ACRONYMS, ABBREVIATIONS, DEFINITIONS, AND UNITS OF MEASURE ........................................ 11 3.0 PROPERTY DESCRIPTION ............................................................................................................................................... 14 3.1 LOCATION................................................................................................................................................................................................ 14 3.2 LAND TENURE ........................................................................................................................................................................................ 16 3.3 MINERAL RIGHTS................................................................................................................................................................................... 18 3.4 ANNUAL HOLDING COSTS.................................................................................................................................................................. 18 3.5 ROYALTIES............................................................................................................................................................................................... 19 3.5.1 Pilot Mountain Project Royalties......................................................................................................................................... 19 3.6 ENCUMBRANCES................................................................................................................................................................................... 19 3.7 OTHER SIGNIFICANT FACTORS AND RISKS ................................................................................................................................... 19 3.7.1 Rights-of-Way.......................................................................................................................................................................... 20 4.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY ...................................... 21 4.1 PROPERTY ACCESS............................................................................................................................................................................... 21 4.2 CLIMATE................................................................................................................................................................................................... 21 4.3 LOCAL RESOURCES.............................................................................................................................................................................. 21 4.4 INFRASTRUCTURE................................................................................................................................................................................. 21 |
| RSI-3732 iii 2 TABLE OF CONTENTS(CONTINUED) 4.5 PHYSIOGRAPHY ..................................................................................................................................................................................... 21 5.0 HISTORY........................................................................................................................................................................... 23 5.1 EXPLORATION HISTORY ...................................................................................................................................................................... 23 5.1.1 Exploration - 1900-1978..................................................................................................................................................... 23 5.1.2 Exploration - 2011-2021..................................................................................................................................................... 24 5.2 HISTORICAL MINERAL RESOURCE ESTIMATES............................................................................................................................ 25 6.0 GEOLOGICAL SETTING, MINERALISATION, AND DEPOSIT........................................................................................... 26 6.1 GEOLOGICAL SETTING......................................................................................................................................................................... 26 6.1.1 Regional Geology.................................................................................................................................................................... 26 6.1.2 Property Geology.................................................................................................................................................................... 27 6.2 DEPOSIT TYPE ........................................................................................................................................................................................ 31 6.3 MINERALIZATION................................................................................................................................................................................... 32 6.3.1 Desert Scheelite...................................................................................................................................................................... 32 6.3.2 Garnet........................................................................................................................................................................................ 32 6.3.3 Gunmetal .................................................................................................................................................................................. 32 7.0 EXPLORATION.................................................................................................................................................................. 34 7.1 ROCK CHIP SAMPLING......................................................................................................................................................................... 34 7.2 GEOPHYSICAL SURVEYS ..................................................................................................................................................................... 35 7.3 DRILLING.................................................................................................................................................................................................. 35 8.0 SAMPLE PREPARATION, ANALYSIS, AND SECURITY .................................................................................................... 37 8.1 SAMPLE METHODS AND QA/QC ....................................................................................................................................................... 37 8.1.1 Guardian Metals Sampling Methods................................................................................................................................. 37 8.1.2 Historical Sampling Methods.............................................................................................................................................. 38 8.2 SAMPLE PREPARATION....................................................................................................................................................................... 38 8.2.1 Guardian Metals Sample Preparation and Analytical Methods.................................................................................. 38 8.2.2 Historical Sample Preparation and Analytical Methods............................................................................................... 39 8.3 QUALITY ASSURANCE/QUALITY CONTROL.................................................................................................................................... 40 8.3.1 Guardian Metals QA/QC results.......................................................................................................................................... 40 8.4 QP OPINION............................................................................................................................................................................................. 47 9.0 DATA VERIFICATION ....................................................................................................................................................... 49 9.1 SITE VISITS AND PERSONAL INSPECTIONS ................................................................................................................................... 49 |
| RSI-3732 iv 2 TABLE OF CONTENTS(CONTINUED) 9.2 DRILL-HOLE DATA VERIFICATION .................................................................................................................................................... 49 9.2.1 Drill-Hole Collar Locations................................................................................................................................................... 49 9.2.2 Down-Hole Surveys................................................................................................................................................................ 53 9.2.3 Assays........................................................................................................................................................................................ 53 9.3 LIMITATIONS........................................................................................................................................................................................... 57 9.4 ADEQUACY OF DATA ............................................................................................................................................................................ 57 10.0 MINERAL PROCESSING AND METALLURGICAL TESTING............................................................................................. 58 10.1 ANALYTICAL PROCEDURES................................................................................................................................................................ 58 10.2 MINERALIZATION................................................................................................................................................................................... 58 10.3 LABORATORIES...................................................................................................................................................................................... 58 10.3.1 Amdel Laboratories................................................................................................................................................................ 58 10.3.2 Guangdong Institute of Resources Comprehensive Utilization.................................................................................. 59 10.3.3 Guangzhou Research Institute of Non-ferrous Metals................................................................................................. 59 10.4 TESTING RESULTS AND RECOVERY ESTIMATES.......................................................................................................................... 59 10.5 CONCLUSIONS ON DATA ADEQUACY ............................................................................................................................................. 60 11.0 MINERAL RESOURCE ESTIMATES .................................................................................................................................. 61 11.1 DATABASE ............................................................................................................................................................................................... 63 11.2 GEOLOGIC MODEL................................................................................................................................................................................ 64 11.3 MINERAL DOMAINS .............................................................................................................................................................................. 64 11.4 SPECIFIC GRAVITY................................................................................................................................................................................. 67 11.5 ASSAY CODING, CAPPING, AND COMPOSITING ........................................................................................................................... 67 11.6 VARIOGRAPHY........................................................................................................................................................................................ 69 11.7 BLOCK MODEL CODING ...................................................................................................................................................................... 70 11.8 GRADE INTERPOLATION...................................................................................................................................................................... 71 11.9 CLASSIFICATION.................................................................................................................................................................................... 73 11.10MINERAL RESOURCES ......................................................................................................................................................................... 74 11.11MODEL VALIDATION............................................................................................................................................................................. 77 11.12 DISCUSSION OF RESOURCES............................................................................................................................................................ 77 12.0 MINERAL RESERVE ESTIMATES ..................................................................................................................................... 80 13.0 MINING METHODS........................................................................................................................................................... 81 14.0 PROCESSING AND RECOVERY METHODS ..................................................................................................................... 82 15.0 INFRASTRUCTURE........................................................................................................................................................... 83 |
| RSI-3732 v 2 TABLE OF CONTENTS(CONTINUED) 16.0 MARKET STUDIES............................................................................................................................................................ 84 17.0 ENVIRONMENTAL STUDIES, PERMITTING, AND PLANS, NEGOTIATIONS, OR AGREEMENTS WITH LOCAL INDIVIDUALS OR GROUPS .............................................................................................................................................. 85 17.1 EXPLORATION PERMITTING REQUIREMENTS............................................................................................................................... 85 17.2 PERMITTING STATUS............................................................................................................................................................................ 85 17.3 BIOLOGICAL RESOURCES AND HABITAT SURVEYS..................................................................................................................... 85 17.4 CONCLUSIONS....................................................................................................................................................................................... 86 18.0 CAPITAL AND OPERATING COSTS.................................................................................................................................. 87 19.0 ECONOMIC ANALYSIS..................................................................................................................................................... 88 20.0 ADJACENT PROPERTIES................................................................................................................................................. 89 21.0 OTHER RELEVANT DATA AND INFORMATION............................................................................................................... 90 22.0 INTERPRETATION AND CONCLUSIONS ......................................................................................................................... 91 22.1 ADEQUACY OF THE DATA USED IN ESTIMATING THE PROJECT MINERAL RESOURCES.................................................. 91 22.2 EXPLORATION ........................................................................................................................................................................................ 92 22.3 GEOLOGY AND MINERALIZATION..................................................................................................................................................... 92 22.4 MINERAL RESOURCES ......................................................................................................................................................................... 92 23.0 RECOMMENDATIONS...................................................................................................................................................... 94 23.1 PHASE 1 RECOMMENDED ACTIVITIES AND BUDGET.................................................................................................................. 94 23.2 PHASE 2 RECOMMENDED ACTIVITIES AND BUDGET.................................................................................................................. 96 24.0 REFERENCES.................................................................................................................................................................... 98 25.0 RELIANCE ON INFORMATION PROVIDED BY THE REGISTRANT................................................................................... 100 APPENDIX A. LIST OF UNPATENTED LODE MINING CLAIMS OF THE PILOT MOUNTAIN TUNGSTEN PROJECT ................ A-1 |
| RSI-3732 vi 2 LIST OF TABLES Table Page 1-1 Summary of Pilot Mountain Tungsten Project Drilling .......................................................................................................................... 5 1-2 Desert Scheelite Mineral Resources .......................................................................................................................................................... 6 1-3 Guardian Cost Estimate for Pilot Mountain Tungsten Project Recommended Work—Phase 1................................................. 8 1-4 Guardian Cost Estimate for Pilot Mountain Tungsten Project Recommended Work—Phase 2................................................. 9 3-1 Annual Holding Costs of the Pilot Mountain Project.............................................................................................................................. 18 5-1 Summary of Historical Drilling by Operator.............................................................................................................................................. 23 7-1 Guardian Drilling in 2024-2025.................................................................................................................................................................. 35 8-1 CRMs Used by Guardian Metals.................................................................................................................................................................. 41 8-2 Summary of Analyses for Guardian Certified Reference Materials 2024-2025............................................................................. 42 8-3 CRM Failures by Metal.................................................................................................................................................................................... 42 8-4 Summary of Results for Field Duplicates in 2024-2025....................................................................................................................... 43 8-5 Summary of Results for Preparation Duplicates in 2024–2025......................................................................................................... 46 8-6 Summary of Results for Pulp Duplicates in 2024-2025 ....................................................................................................................... 47 9-1 Positional Offset Statistics —WGS84 Versus NAD83 Coordinate Comparison.............................................................................. 50 9-2 Verification GPS Checks of Drill Collars at the Pilot Mountain Project.............................................................................................. 51 9-3: WO3 Population Statistics by Company......................................................................................................................................................... 54 9-4 Assay Results from Independent Confirmation Testing of Field Grab Samples.............................................................................. 56 11-1 Desert Scheelite Resource Database Descriptive Statistics—For All Accepted Sample Data Only.......................................... 64 11-2 Grade Ranges of Tungsten, Silver, Copper, and Zinc Domains Determined from CPPs............................................................... 64 11-3 Density Statistics and Values Applied to the Different Lithologies in the Block Model ................................................................ 67 11-4 Capping Levels for Tungsten, Silver, Copper, and Zinc by Domain ................................................................................................... 67 11-5 Tungsten Composite Descriptive Statistics ............................................................................................................................................. 68 11-6 Silver Composite Descriptive Statistics..................................................................................................................................................... 68 11-7 Copper Composite Descriptive Statistics................................................................................................................................................. 69 11-8 Zinc Composite Descriptive Statistics....................................................................................................................................................... 69 11-9 Variography by Metal Domain...................................................................................................................................................................... 70 11-10Search Ellipse Orientations .......................................................................................................................................................................... 71 11-11Desert Scheelite Estimation Parameters................................................................................................................................................... 72 11-12Pit Optimization Parameters......................................................................................................................................................................... 74 11-13Desert Scheelite Mineral Resources .......................................................................................................................................................... 75 23-1 Guardian Cost Estimate for Pilot Mountain Tungsten Project Recommended Work—Phase 1................................................. 95 23-2 Guardian Cost Estimate for Pilot Mountain Tungsten Project Recommended Work—Phase 2................................................. 97 |
| RSI-3732 vii 2 LIST OF FIGURES FIGURE Page 3-1 Pilot Mountain Tungsten Project Location ............................................................................................................................................... 15 3-2 Pilot Mountain Tungsten Project Site Access Route.............................................................................................................................. 16 3-3 Pilot Mountain Map Showing Exterior Boundaries of the Land Package, Location of Deposits, and Boundary of the Platoro Royalty Area ................................................................................................................................................................................ 17 4-1 Desert Scheelite Test Pit in July 2025, Looking West, Showing Steeply Dipping Garnet Skarn (Brown) in Contact With Quartz Monzonite (White) .................................................................................................................................................................... 22 6-1 Property Geology of the Pilot Mountain Tungsten Project................................................................................................................... 28 6-2 North-South Cross-Section 424305E Showing Tungsten Mineral Domain and Geology........................................................... 29 6-3 Generalized Stratigraphic Column for the Pilot Mountain Tungsten Project .................................................................................. 30 7-1 Map of Drill Holes at the Pilot Mountain Project...................................................................................................................................... 36 8-1 Tungsten Field Duplicate vs. Original, Desert Scheelite 2024-2025................................................................................................ 44 8-2 Copper Field Duplicate vs. Original, Desert Scheelite 2024-2025.................................................................................................... 45 8-3 Zinc Field Duplicate vs. Original, Desert Scheelite 2024-2025.......................................................................................................... 45 8-4 Silver Field Duplicate vs. Original, Desert Scheelite 2024-2025 ....................................................................................................... 46 9-1 Box Plots of WO3 Data Sorted by Company.............................................................................................................................................. 54 9-2 Cumulative Probability Plots of WO3 Assays by Company—Guardian in Blue, Duval in Green, and UCC in Red ................... 55 11-1 North-South Cross-Section 424305E Showing Tungsten Mineral Domains and Geology......................................................... 66 11-2 North-South Cross-Section 424305E Showing WO3 Grades in the Block Model.......................................................................... 76 11-3 WO3 Bench Composite Grades versus Coincident Block Grades Interpolated by OK, ID2 , and NN........................................... 77 |
| RSI-3732 1 2 1.0 EXECUTIVE SUMMARY RESPEC has prepared this technical report on the Pilot Mountain Tungsten Project at the request of Guardian Metal Resources PLC. This technical report and the resource estimates have been prepared in accordance with the disclosure and reporting requirements outlined in the United States Securities and Exchange Commission’s (SEC) Modernized Property Disclosure Requirements for Mining Registrants as described in Subpart 229.1300 of Regulation S-K, Disclosure by Registrants Engaged in Mining Operations (S-K 1300) and Item 601 (b)(96) Technical Report Summary. RESPEC visited the Property on July 8-9, 2025. The costs are based on first quarter 2025 U.S. dollars. 1.1 PROPERTY DESCRIPTION AND OWNERSHIP The Pilot Mountain property is comprised of four skarn/tactite deposits—the Gunmetal, Garnet, Good Hope, and Desert Scheelite deposits—all located on the east side of Pilot Peak, about 39 kilometers (“km”) east of the small town of Mina, in Mineral County, Nevada. The property is centered at 38° 23’ 9” north latitude, 117° 52’ 26” west longitude and lies wholly within the historical Mina mining district. The Pilot Mountain Tungsten Project is comprised of 208 unpatented claims: 159 unpatented mining claims located by BFM Resources Inc., a wholly owned subsidiary of Guardian Metal Resources; four unpatented mill site claims also located by BFM Resources Inc.; and 45 unpatented mining claims owned by Pilot Metals Inc. that are known as the “NT claims.” Pilot Metals Inc. is also a wholly owned subsidiary of Guardian Metal Resources. The property comprises ~1,715 hectares (“ha”), all located on land administered by United States Bureau of Land Management (“BLM”). Ownership of unpatented mining claims is in the name of the holder (locator), subject to the paramount title of the United States of America, under the administration of the BLM. The holder has the right to explore, develop, and mine minerals on unpatented mining claims without payments of production royalties to the United States Government, subject to the surface management regulation of the BLM and all other applicable state and federal environmental regulations. Currently, annual federal claim maintenance fees and county recording fees totaling $44,108 are the only payments required to maintain unpatented mining claims. Those fees have been paid in full through September 1, 2026. Apex Royalties controls a royalty of 2% of the gross revenues from the production and sale of minerals from the 45 NT Claims, an area that totals ~611ha and encompasses the Gunmetal, Garnet, Good Hope, and Desert Scheelite deposits. The BLM requires permits for all significant surface disturbances. Geologic mapping, soil and rock sampling, and other low impact activities can be conducted without specific permits. Any road or trail construction used for mechanized equipment, drilling, or trenching requires filings with the BLM or county, as applicable. Up to five acres (~2ha) of disturbance are allowed on a notice-level filing. |
| RSI-3732 2 2 As is standard in Nevada, surface disturbances of more than five acres (~2has) require a plan of operation (“PoO”) approved by the BLM and Nevada Division of Environmental Protection, which in turn requires an Environmental Assessment (“EA”) or an Environmental Impact Statement done in accordance with the National Environmental Policy Act process. Guardian currently holds two Notices of Intent (“NOI”) for exploration activities: one for the Desert Scheelite area (NVNV 106362997) and one for Garnet (NVNV 106714287), which includes the northern portion of Gunmetal. These notices provide sufficient permit coverage to complete the recommended work outlines in Section 23.0. Guardian is also in the process of having an exploration PoO and EA reviewed by regulators. The authors are not aware of any factors that would limit Guardian’s ability to secure the necessary permits to complete the proposed work. Guardian does not yet hold a mining permit. The authors anticipate that most, if not all, of the exploration work proposed in Section 23.0 is permitted under the 2 notice-level filings with the respective agencies. Any expansion of the program to include large condemnation and resource expansion will likely require the approval of the EA and PoO for additional exploration activities at the site. If the exploration drilling will exceed the two five-acre (~2has) disturbance limit, Guardian will need the formal PoO to be accepted and approved by the regulating authorities. The authors are not aware of any factors that could limit Guardian’s ability to acquire the necessary permits to complete the proposed work. 1.2 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE, AND PHYSIOGRAPHY The Pilot Mountain Tungsten Project is located in a sparsely populated area of gently rolling topography on the lower eastern slopes of the Pilot Mountains, northeast of Pilot Peak, in Mineral County, Nevada, approximately 260 road kilometers southeast of Reno, 146km southeast of Yerington, and 113km northwest of Tonopah via road. Elevations on the property ranges from ~1,830 meters (“m”) to ~2,290m above mean sea level in the central Basin and Range physiographic province of western Nevada. In general, the summers are hot and dry, and the winters are cold. Most precipitation falls during the winter and spring months. Neither exploration, mine construction, nor mine operations are likely to be significantly impacted by weather at seasonal extremes. Vegetation on the property is typical of the eastern Nevada high elevation desert, which largely consists of sagebrush, rabbit brush, small cacti, and bunch grass communities, consistent with a high-desert climate. Pinyon pine and juniper trees are present in some areas at higher elevations. Yerington, with a population of approximately 4,000, and Tonopah, with a population of approximately 1,900, serve as regional support hubs with an airport, well-developed infrastructure, and services that support the surrounding gold and silver mining and processing industry. The nearby towns of Yerington and Tonopah, along with Reno, can supply sufficient skilled labor for the project. 1.3 MINING AND EXPLORATION HISTORY The Pilot Mountain Tungsten Project area has been explored since scheelite was discovered on the east flank of the Pilot Mountains in 1916, resulting in a substantial body of geological, geophysical, and drilling data. Despite this history of exploration, only limited production has been recorded. |
| RSI-3732 3 2 Internal Union Carbide Corporation reports record production of 130 short tons from the Garnet Mine through 1943 and 15,378 short tons from the Gunmetal Mine in 1952-1956. Hecla Mining (“Hecla”) began drilling the Pilot Mountain property in 1968. In addition to Hecla, the historical operators Duval Corporation (“Duval"), W. R. Grace (“Grace"), and Union Carbide Corporation (“UCC”) have explored the property with drilling, geophysical surveys, and surface and underground sampling campaigns. UCC completed mining feasibility studies on the property and conducted trial mining on the Desert Scheelite deposit through a 70,000-tonne bulk sampling exercise. Low tungsten prices halted their activities. More recently, Black Fire Minerals Ltd. (“Black Fire”) optioned on the property in September 2011 and completed a 15-hole drilling program that supported the preparation of an initial mineral resource estimate for the Desert Scheelite deposit in 2012. Thor Mining PLC (“Thor”) acquired the property in 2014 and initiated a comprehensive exploration program targeting copper-silver mineralization within the Desert Scheelite and Garnet deposits. In total, the historical operators drilled 296 holes for a total of ~42,000m of drilling. Black Fire completed the first modern mineral resource estimate for the Desert Scheelite deposit, in 2012. Following additional drilling and project advancement, Thor Mining updated the resource estimate in 2018. Thor’s revised estimate reported 10.7 million tonnes at 0.26% WO₃, 19.4 g/t Ag, 0.15% Cu, and 0.38% Zn above a 0.15% WO₃ cut‑off, with the majority classified as indicated resources. The reader is cautioned not to treat this historical mineral resource estimate—or any part of it—as current mineral resources or mineral reserves. 1.4 GEOLOGICAL SETTING AND MINERALIZATION The Pilot Mountain property lies within the Walker Lane structural belt of western Nevada. The project area is underlain by a thick succession of Permian to Jurassic sedimentary and volcanic rocks locally intruded by Cretaceous granitic stocks, dykes, and sills and overlain around the margins by Tertiary volcanic units. The oldest unit exposed is the Permian Mina Formation, a thick accumulation of marine turbidites, chert, and volcanogenic tuffaceous strata, which is overlain by the Triassic Luning Formation, the principal host of mineralization on the property. The Luning is at least 2,300m thick in its type locality and is subdivided into lower, middle, and upper members. The lower Luning hosts mineralization at Desert Scheelite, and the upper Luning hosts mineralization in the Gunmetal–Garnet areas. Intrusion of a Jurassic biotite quartz monzonite stock produced contact metamorphism, converting adjacent carbonate rocks to marble and pelitic clastics to hornfels. During the latter phases of emplacement, metasomatic processes locally formed skarns and calc‑silicate alteration within marble and calcareous metaclastic units. Evidence of metamorphism extends up to 300m laterally from the northern contact of the stock, although the most extensive and economically interesting mineralization in the modeled resource area is largely confined to within ~90m of the contact. Tungsten mineralization is present within skarn (tactite) developed along limestone beds proximal to quartz monzonite intrusions. The Good Hope and Desert Scheelite deposits are subvertical and strike approximately east-west, while the Garnet and Gunmetal deposits are essentially flat lying. In addition to tungsten, the deposits contain variable amounts of copper, zinc and silver. The estimate of mineral resources presented in this report is for the Desert Scheelite deposit. |
| RSI-3732 4 2 1.5 EXPLORATION Since acquiring the Pilot Mountain Project in 2021, Guardian has advanced exploration through data review, updated geological modeling, geophysical surveys, rock‑chip sampling, and targeted drilling. Work has focused on validating the historical resource base, assessing extensions of known mineralization, and collecting samples to support metallurgical and geotechnical evaluations. These activities form the basis for ongoing technical studies and a planned pre‑feasibility assessment. Initial hydrological or geotechnical investigations have commenced and are ongoing. 1.5.1 ROCK CHIP SAMPLING Guardian collected 12 quartz monzonite samples and nine altered wall‑rock samples in 2024, confirming geochemical ratios (Sr/Y>80; La/Yb>20; Yb<1.5; Eu anomalies>0.9) consistent with porphyry Cu‑Mo systems. Copper assays south of Porphyry South returned up to 799ppm Cu and 201ppm Mo. In 2025, 189 additional samples were collected; results confirmed elevated Cu and Mo across Porphyry South, including 15 samples >1,000ppm Cu along a ~1km ridge, with a maximum of 2.05% Cu. Petrography identified cuprite, malachite, and tenorite. Trace element geochemistry was consistent with QSP alteration and indicative of the phyllic zone, which commonly surrounds porphyry system cores. 1.5.2 GEOPHYSICAL SURVEYS A high‑resolution IP survey in 2023 delineated three chargeability anomalies interpreted as disseminated sulfide mineralization. In 2025, Guardian extended coverage with a 3DIP survey, confirming anomalies south of the initial grid. These results provide early evidence of porphyry‑style systems and support refinement of drill targets. 1.5.3 DRILLING Guardian has completed 89 diamond core holes: 68 at Desert Scheelite, 20 at Garnet, and one at Porphyry South. Drilling was conducted by Diamondback Drilling using Boart Longyear LF Super 90 rigs, with core recovery improving as programs advanced. All collar locations were surveyed in UTM coordinates (WGS84 datum) by ASPS, and down‑hole surveys were collected at 10m intervals using Gyromaster instrumentation. 1.6 DRILLING The Pilot Mountain database contains 385 drill holes totaling 52,417 meters of drilling. Several drilling campaigns and operators span the contents of the database. Based on the author’s current knowledge, historical operators of the campaigns include Union Carbide which drilled 185 drill-holes totaling 23,234 meters. Guardian Metal Resources drilled 89 drill-holes totaling 10,344 meters. Drilling is concentrated in and around the Desert Scheelite area. |
| RSI-3732 5 2 Table 1-1 is a breakdown of the drilling and operators in the Pilot Mountain Tungsten Project area. Table 1-1. Summary of Pilot Mountain Tungsten Project Drilling Drilling Program Drilling Dates No. DHs Length (m) Length (ft) Historic Operators 1968–2017 296 42,073 138,035 Guardian Metal Resources 2024–2025 89 10,344 33,937 Total 385 52,417 171,972 Drilling sampling procedures provided representative samples of sufficient quality for use in the resource estimation discussed in Section 14.0. The QP is unaware of any sampling and recovery factors that will materially impact the mineral resources discussed in Section 14.0. 1.7 METALLURGICAL TESTING AND MINERAL PROCESSING RESPEC summarizes metallurgical test work completed on the Desert Scheelite deposit for informational purposes only and offers no independent conclusions. Amdel Laboratories confirmed scheelite as the sole tungsten‑bearing mineral and conducted liberation studies that established a target grind size of 106µm. Gravity separation using Wilfley tabling followed by Mozley cleaning achieved an upgrade ratio of approximately 27:1, recovering 72.5% of contained tungsten to 1.7% of the feed mass. Subsequent rougher flotation tests performed at grind sizes of P80 106µm and P80 45µm, including a conceptual circuit that recycled gravity middlings and tails, achieved recoveries of up to 90.7% WO₃, although concentrate grades were limited by calcium gangue carryover. The Guangdong Institute conducted rougher flotation at approximately 70% passing 75µm, producing rougher concentrates grading 3.92% WO₃ at 76.1% recovery. Multi‑stage heated cleaning yielded final scheelite concentrates grading between 66.9% and 68.2% WO₃ at recoveries of 71–74%, with impurity levels meeting commercial specifications. Guangzhou Research Institute of Non-ferrous Metals reviewed and corroborated the gravity plus flotation process concept and recommended reagent optimization, cleaner circuit configuration, and potential recovery of additional tungsten from magnetic products by spirals or tabling. Samuel Engineering [Samuel, 2025] concluded that the metallurgical test work completed to date provides a reasonable preliminary understanding of the mineralogy and process response of the Desert Scheelite deposit. Samuel recommended additional variability testing, reagent optimization, and confirmatory work on domain‑specific composites to validate recovery factors and establish robust process parameters for future resource and reserve estimation stages. 1.8 MINERAL RESOURCE ESTIMATE At Desert Scheelite, Guardian’s geologic model is well defined with distinctive rock units and forms the principal control for the metal domain modelling and resource estimation. RESPEC interpreted a tungsten mineral domain for Desert Scheelite to estimate tungsten trioxide, silver, copper, and zinc. Separate interpolations were run with ordinary kriging, inverse distance, and nearest neighbor for each metal. The kriged interpolation is reported in Table 1-2. The Desert Scheelite mineral resources have |
| RSI-3732 6 2 been estimated to reflect potential open-pit extraction and processing by standard flotation and milling techniques. Resources were reported at a 0.06% WO3 cut-off. Silver, copper, and zinc are reported within the mineral resources using the WO3 cut-off grade. No independent cut-off grades were applied to silver, copper, or zinc. Those metals are considered by-products contingent upon economic extraction of WO3. RESPEC has classified Desert Scheelite mineral resources in accordance with the definitions for mineral resources in S-K 1300. Table 1-2. Desert Scheelite Mineral Resources Cut-off Average Grade Contained Metal Classification % WO3 Tonnes % WO3 g Ag/t % Cu % Zn t WO3 oz Ag t Cu t Zn Indicated 0.06 8,694,000 0.206 12.43 0.085 0.315 17,900 3,475,000 7,400 27,400 Inferred 0.06 1,784,000 0.169 12.00 0.063 0.225 3,000 689,000 1,100 4,000 Notes: 1. The effective date of Desert Scheelite mineral resources is December 1, 2025. 2. The estimate of mineral resources was done by RESPEC in metric tonnes. 3. The point of reference is in situ mineralization prior to extraction by open pit mining methods. 4. The average grades of the tabulations are comprised of the weighted average of block-diluted grades within an optimized pit. 5. The Desert Scheelite mineral resource cut‑off grade of 0.06% WO₃ was selected by the authors. Operating assumptions were applied to establish a theoretical pit limit, including a WO₃ price of $65,500/t, an average recovery of 80% WO₃, a processing rate of 4,000 tonnes/day, $2.75/t mining cost for open pit, $15.64/t processing cost, $3.00/t processed for G&A, and an 83% payability. Blocks outside the pit limit are considered not economic at this time. 6. The accessory metals Ag, Cu, and Zn shown in Table 11-13 are the quantities contained within the mineral resources using the cut-off grade established for the primary commodity (WO3). No independent cut-off grade has been applied to these accessory metals. Reported quantities of accessory metals are therefore considered by-products of the primary metal resource and their value is contingent upon the ability to economically extract the by-products along with the primary commodity. 7. The estimate of mineral resources may be materially affected by geology, environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues. 8. Rounding as required by reporting guidelines may result in apparent discrepancies between tonnes, grade, and contained metal content. 9. Mineral resources are not mineral reserves and do not have demonstrated economic viability. An inferred mineral resource has a lower level of confidence than an indicated mineral resource and must not be converted to a mineral reserve. RESPEC reasonably expects that continued exploration and delineation will upgrade the majority of inferred mineral resources to indicated mineral resources. 1.9 INTERPRETATIONS AND CONCLUSIONS RESPEC offers the following conclusions and observations by area: 1.9.1 ADEQUACY OF THE DATA USED IN ESTIMATING MINERAL RESOURCES RESPEC’s audit confirmed that the Desert Scheelite database is adequate for mineral resource estimation and disclosure under S‑K 1300. Guardian’s 2024–2025 drilling program was conducted to current industry standards and provides a reliable foundation for the resource model. Historical datasets were integrated with appropriate caution, and while some risk persists in the estimated volume of higher‑grade material, the database is considered suitable for technical reporting, resource estimation, and regulatory compliance. |
| RSI-3732 7 2 RESPEC determined that Guardian’s sampling, core handling, and chain‑of‑custody procedures are adequate to support the resource estimate. ALS performed sample preparation and analysis using appropriate multi‑element and ore‑grade methods, including re‑assay of overlimit values. Guardian’s QA/QC program incorporated certified reference materials, blanks, and duplicates at acceptable frequencies, and statistical evaluation confirmed precision and minimal bias for tungsten, copper, and zinc. Silver assays showed slightly elevated variability at low concentrations but no systematic errors. Overall QA/QC results are adequate, though documentation of follow‑up on isolated failures is incomplete. Confidence in historical drilling remains lower due to absent QA/QC records and limited documentation of sampling protocols. Comparative analysis demonstrated broadly consistent grade distributions across datasets, with interpolation tests indicating historical WO₃ grades approximately 17% higher than Guardian’s, attributed to sampling population effects and drilling geometry. Guardian’s angled drilling reduced geometric bias, and corroborating evidence supports selective inclusion of historical colorimetric assays. The modern dataset provides confidence in the overall resource model, with estimation risk primarily linked to legacy data. 1.9.2 GEOLOGY AND MINERAL RESOURCES The Pilot Mountain Tungsten Project lies within the Walker Lane structural belt of western Nevada, where strike‑slip faulting, extensional basins, and magmatism have strongly influenced mineralization. Mineralization is hosted by the Triassic Luning Formation, subdivided into lower, middle, and upper members, and intruded by Jurassic to Cretaceous granitic stocks. The Desert Scheelite deposit is a tungsten skarn formed along the contact of quartz monzonite intrusions with lower Luning carbonates and biotite hornfels. Scheelite is the dominant ore mineral, accompanied by pyrite, chalcopyrite, and sphalerite, with local base‑metal sulfide contents exceeding 20% in unoxidized samples. The Desert Scheelite mineral resources extend approximately 600m along strike and at least 300m down dip. Mineralization is sub‑vertical and includes three higher‑grade tungsten zones that reflect structural and lithological controls. Guardian’s drilling and geologic modeling improved understanding of mineralization continuity and provided the basis for tungsten domain modeling and resource estimation. RESPEC estimated resources assuming potential open‑pit extraction with standard milling and flotation techniques, optimizing pits at variable WO₃ prices using Nevada‑based cost assumptions. Resources are reported at a 0.06% WO₃ cut‑off grade, with silver, copper, and zinc included as by‑products contingent on WO₃ extraction. A majority of resources (83%) are classified as indicated, supported by Guardian’s drilling density, QA/QC data, and improved geologic understanding. Uncertainties remain due to limitations in historical datasets, including incomplete survey records, inconsistent assay documentation, selective sampling, and the predominance of vertical holes in steeply dipping zones, which may have exaggerated higher‑grade thicknesses. Guardian’s angled drilling reduced geometric bias, but some risk persists in the estimated volume of higher‑grade material. |
| RSI-3732 8 2 1.10 RECOMMENDATIONS 1.10.1 PHASE 1 RESPEC recommends that Guardian focus on reducing estimation risk, validating historical data, and advancing Desert Scheelite toward feasibility evaluation. / Drilling & Assay Programs: 1,500m of core drilling at Desert Scheelite to increase drill density and confidence, with twin holes to validate historical assays. Additional 1,800m each at Garnet and Gunmetal, plus 2,000m of exploration drilling across Pilot Mountain. QA/QC protocols (CRMs, blanks, duplicates) and follow‑ups with ALS are advised. / Petrological & Metallurgical Studies: Detailed mineralogical and ore characterization integrated with metallurgical test work to refine WO₃ recovery, flotation efficiency, and by‑product performance. / Geologic Modeling & Reporting: Updates to lithologic, alteration, and structural models to improve block model reliability; material changes to be reported under S‑K 1300. / Hydrology, Permitting & Bonding: Continuation of hydrogeological baseline studies, initiation of pit dewatering assessments, and parallel permitting/bonding activities. / Support Infrastructure: Securing labor, equipment, and materials to sustain drilling, analytical, and study programs. Table 1-3. Guardian Cost Estimate for Pilot Mountain Tungsten Project Recommended Work—Phase 1 Task Qty Unit US$ per unit US$ Desert Scheelite Core Drilling 1,500 meter $520 $780,000 Garnet Core Drilling 1,800 meter $520 $936,000 Gunmetal Core Drilling 1,800 meter $520 $936,000 Exploration Core Drilling 2,000 meter $520 $1,040,000 Assays 4,700 samples $55 $260,000 Metallurgical Test Work $450,000 Geological Modelling $25,000 Hydrology Study $675,000 Ore Characterization Study $525,000 Permitting and Bonding $645,000 Pre-Feasibility Study $1,620,000 Reporting $220,000 Labor / Support Staff $2,370,000 Equipment and Materials $70,000 Total $10,552,000 |
| RSI-3732 9 2 1.10.2 PHASE 2 Following phase 1, RESPEC recommends advancing feasibility evaluation and reducing remaining technical and regulatory risks. / Core Drilling: Additional drilling at Desert Scheelite, Garnet, Gunmetal, and Phase 1 exploration targets to expand resources and improve confidence in geometry, supporting updated block models and conversion of inferred material. / Metallurgical Test Work: Follow‑up variability studies across deposits to refine recovery assumptions for tungsten and by‑products, feeding into process design. / Permitting & Bonding: Expanded environmental data collection, bonding requirements, and regulatory submissions. / Feasibility Study: Completion of a full feasibility study incorporating revised resource models, metallurgical data, mine design, infrastructure planning, and permitting outcomes. / Labor & Infrastructure: Continued allocation of staff and investment in infrastructure, including road upgrades, core handling facilities, and temporary utilities to support sustained operations. Table 1-4. Guardian Cost Estimate for Pilot Mountain Tungsten Project Recommended Work—Phase 2 Task Qty Unit US$ per unit US$ Core Drilling 6,500 meter $520 $3,380,000 Metallurgical Test Work $200,000 Permitting and Bonding $900,000 Feasibility Study $1,000,000 Labor / Support Staff $2,000,000 Infrastructure $1,000,000 Total $8,480,000 |
| RSI-3732 10 2 2.0 INTRODUCTION RESPEC Company LLC (“RESPEC”) has prepared this independent technical report summary on the Pilot Mountain Tungsten Project, located in Mineral County, Nevada, at the request of Guardian Metal Resources PLC. (“Guardian”), a United Kingdom company based in London that is listed on the London Stock Exchange (LON:GMET) and trading over-the-counter (OTCQX: GMTLF). Guardian holds and operates the Pilot Mountain property through a series of ownership transitions, culminating in its acquisition by Guardian in 2021. This report has been prepared in accordance with the disclosure and reporting requirements outlined in the United States Securities and Exchange Commission’s (“SEC”) Modernized Property Disclosure Requirements for Mining Registrants as described in Subpart 229.1300 of Regulation S-K, Disclosure by Registrants Engaged in Mining Operations (“S-K 1300”) and Item 601 (b)(96) Technical Report Summary. 2.1 PROJECT SCOPE AND TERMS OF REFERENCE The purpose of this document is to provide a technical report summary of the Pilot Mountain Tungsten Project, including an updated, current estimate of the tungsten mineral resources, in support of securities regulatory reporting requirements. The Pilot Mountain property lies within the historical Mina mining district of west-central Nevada. Exploration work, data, results, and all other matters, including land tenure, legal obligations, and environmental permitting from 2021 through the effective date of this report are attributed to Guardian. In the last 45 years, several technical resource reports have been prepared for Pilot Mountain resources areas, although none of them were S-K 1300 compliant. In May 1981, Kaiser Engineers prepared the report Feasibility Study for Mining and Concentrating of Pilot Mountain Tungsten Ore, Mineral County, Nevada on behalf of Union Carbide Corporation Metals Division. In August 2012, Golder Associates Pty Ltd, prepared Desert Scheelite Resource with Final Report Number 127641013-002-R-Rev0. In August 2018, Andrew Vidale Consulting Services prepared Pilot Mountain Mining Scoping Study on behalf of Thor Mining PLC (“Thor”). In November 2018, Resource Evaluation Services (“RES”) updated the mineral resource estimate for the Desert Scheelite area on behalf of Thor. Guardian acquired the property in 2021 and carried out various exploration activities and further drilling of 10,344 meters. This report updates and replaces Resource Evaluation Services’ mineral resource estimate (2018) prepared on behalf of Thor. RESPEC conducted the estimation and classification of the current mineral resources presented in Section 11.0. As the Qualified Person (“QP”) under S-K 1300, RESPEC confirms that the estimated mineral resources presented herein were calculated in accordance with the standards and requirements of the regulation. RESPEC has no affiliations with Guardian other than its role as an independent consultant. The scope of this study included a review of pertinent technical reports and data that Guardian provided to RESPEC about the Pilot Mountain Tungsten Project’s general setting, geology, project history, exploration activities and results, methodology, quality assurance, interpretations, drilling programs, and metallurgy. This report is based on data and information derived from work done by |
| RSI-3732 11 2 historical operators and Guardian. RESPEC has reviewed much of the available data, visited the project site, and has made judgments about the general reliability of the underlying data. Where data was deemed inadequate or unreliable, they either excluded it from consideration or adjusted and considered it appropriately. RESPEC has made such independent investigations as deemed necessary in their professional judgment to allow them to reasonably present the conclusions, interpretations, and recommendations of this report. RESPEC visited the Pilot Mountain Tungsten Project from July 8 through July 9, 2025. During their site visit, they inspected sampling procedures at an active core drill site and reviewed Guardian’s logging and QA/QC insertion procedures, geological cross sections, mineralized drill core, and examined outcrops that represented the local geology. The effective date of this technical report summary is December 15, 2025. 2.2 RELIANCE ON OTHER EXPERTS RESPEC is not an expert in legal matters, such as the assessment of the validity of mining claims, mineral rights, royalties, and property agreements in the United States or elsewhere. Furthermore, RESPEC did not conduct any investigations of the environmental, social, or political issues associated with the Pilot Mountain Tungsten Project, nor are they experts in these matters. Therefore, RESPEC has therefore relied entirely upon information and opinions provided by Guardian with regard to the following: / Guardian’s land tenure as presented in Section 3.2. The authors have relied entirely on a mineral title opinion and additional documentation provided by Guardian to confirm the legal ownership status of patented and unpatented claims within the Property. The opinion, Mineral Title Opinion, is explained in Section 3.2. / The legal agreements, royalties, and encumbrances that pertain to Guardian’s land package that are presented in sections 3.6 and 3.4. / The environmental liabilities presented in Section 3.5. / Metallurgical results relied upon in this report are outlined in Section 10.0. / The environmental baseline studies presented in Section 17.0. 2.3 FREQUENTLY USED ACRONYMS, ABBREVIATIONS, DEFINITIONS, AND UNITS OF MEASURE In this report, measurements are generally reported in metric units. Where information was originally reported in Imperial units, the author has made the conversions as shown below. Currency, units of measure, and conversion factors used in this report include: Linear Measure 1 centimeter = 0.3937 inch 1 meter = 3.2808 feet = 1.0936 yard 1 kilometer = 0.6214 mile |
| RSI-3732 12 2 Area Measure 1 hectare = 2.471 acres = 0.0039 square mile Capacity Measure (liquid) 1 liter = 0.2642 US gallons Weight 1 tonne = 1.1023 short tons = 2,205 pounds 1 kilogram = 2.205 pounds Currency: All references to dollars ($) in this report refer to the currency of the United States. Frequently used acronyms and abbreviations 3DIP three-dimensional induced polarization % percent AA atomic absorption spectrometry AES atomic emission spectroscopy Ag silver Amdel Amdel Laboratories of Perth, Australia ASPS Advanced Surveying & Professional Services ASL above sea level Au gold AuEq gold equivalent Black Fire Black Fire Minerals Ltd. BLM US Department of the Interior, Bureau of Land Management BMRR Bureau of Mining Regulation and Reclamation CDN CDN Resource Laboratories Ltd. cm centimeters CNAS China National Accreditation Service CoG cutoff grade core diamond-core drilling method CPP cumulative probability plot oC degrees Centigrade °F degrees Fahrenheit Duval Duval Corporation EA environmental assessment EIS environmental impact statement FA fire assay ft foot or feet Geostats Geostats Pty Ltd. Grace W. R. Grace g/t grams per tonne g Ag/t grams silver per tonne g Au/t grams gold per tonne GMR Guardian Metals Resources PLC Guangdong Institute Guangdong Institute of Resources Comprehensive Utilization Guardian Guardian Metals Resources PLC GZRINM Guangzhou Research Institute of Non-ferrous Metals ha hectare |
| RSI-3732 13 2 Hecla Hecla Mining Company ICP inductively coupled plasma analytical method ID2 inverse distance squared estimation in. inch or inches IP induced polarization keV kilo-electron volt kg kilograms km kilometers kW kilowatt l liter lbs pounds µm micron or microns, micrometer, or micrometers m meters Ma million years old max. maximum mGal milligal mi mile or miles min. minimum mm millimeters MW megawatt NDEP Nevada Department of Environmental Protection NN nearest neighbor estimation NSR net smelter return OK ordinary kriging opt ounce per ton oz ounce PoO Plan of Operation ppm parts per million ppb parts per billion QA/QC quality assurance and quality control QP qualified person RC reverse circulation drilling method RESPEC the RESPEC Company LLC RQD rock quality designation Samuel Samuel Engineering SEC United States Securities and Exchange Commission SG specific gravity t metric tonne or tonnes Thor Thor Mining PLC Thor Mining Thor Mining PLC ton Imperial short ton tpd tonnes per day UCC Union Carbide Corporation UTM Universal Transverse Mercator US United States USFS United States Forest Service USGS United States Geological Survey |
| RSI-3732 14 2 3.0 PROPERTY DESCRIPTION RESPEC is not an expert with regards to land, legal, environmental, social, and permitting matters. For the information presented in this section, they relied entirely on data provided by Guardian Metal Resources and on a report provided by the legal firm of Erwin Thompson Faillers dated July 22, 2025, that describes the record title and status of the unpatented mining claims which are controlled by Guardian Metal Resources and BFM Resources, Inc., a Nevada corporation that is a wholly-owned subsidiary of Guardian Metal Resources. RESPEC has reviewed the information provided by Guardian and Erwin Thompson Faillers and considers the third-party data suitable for use in this Technical Report Summary. The list of claims referenced in Erwin Thompson Faillers’ record title and status report is presented in Appendix A. RESPEC is not aware of any significant factors and/or risks beyond those described in this report that affect access, title, or the right or ability to perform work on the property. 3.1 LOCATION As shown in Figure 3-1, the Pilot Mountain Tungsten Project’s property is located on the east side of the Pilot Mountains in west-central Nevada, centered at 38°23’9”N, 117°52’26”W. The closest town is Mina, Nevada, located about 19 air kilometers due west of the property, or about 39km via a well-graded gravel road (Figure 3-2). The closest larger town—Hawthorne, Nevada—is located about 68 air kilometers west-northwest of the property. |
| RSI-3732 15 2 Figure 3-1. Pilot Mountain Tungsten Project Location. |
| RSI-3732 16 2 Figure 3-2. Pilot Mountain Tungsten Project Site Access Route. As shown in Figure 3-3, the project is located within 1,714.9ha of unpatented mining claims on public land administered by the BLM in Sections 7 through 9 and 15 through 18, Township 6 North, Range 37 East (T6N, R37E), Mount Diablo Base and Meridian in Mineral County, Nevada. The four mill claims at the former Dunham mill site secure access to a groundwater supply sufficient for the proposed project. 3.2 LAND TENURE The Pilot Mountain Tungsten project comprises four existing sub-projects all within approximately three kilometers of each other—the Garnet, Good Hope, Gunmetal, and Desert Scheelite—and four Dunham Mill claims that are not contiguous with the rest of the claim block (Figure 3-3). |
| RSI-3732 17 2 Figure 3-3. Pilot Mountain Map Showing Exterior Boundaries of the Land Package, Location of Deposits, and Boundary of the Platoro Royalty Area. The Pilot Mountain Project is comprised of 208 unpatented claims: 159 unpatented mining claims located by BFM Resources Inc., a wholly owned subsidiary of Guardian Metal Resources, known as the “BFM claims;” four unpatented mill site claims also located by BFM Resources Inc. on the site of the former Dunham Mill claims; and 45 unpatented mining claims owned by Pilot Metals Inc. that are known as the “NT claims.” The BFM Claims The 159 BFM claims are 159 unpatented mining claims located and owned by BFM Resources US Inc., a wholly owned subsidiary of Guardian Metal Resources. The BFM claims are enumerated in Exhibit A.3 of Erwin Thompson Faillers’ record title and status. BFM Resources US Inc. located the 159 unpatented mining claims and recorded them on May 20 and August 12, 2024. They are situated in sections 4, 5, 6, 7, 8, 9, 10, and 15, Township 6 North, Range 37 East in the Mount Diablo Meridian in Mineral County, Nevada. Four Unpatented Mill Site Claims BFM Resources Inc. located four unpatented mill site claims on the site of the former Dunham Mill claims situated in Section 24, Township 6 North, Range 37 East, Mount Diablo Meridian, in Esmeralda County, Nevada and recorded them with the Esmeralda County Recorder on July 1, 2022. BFM Resources Inc. is a wholly owned subsidiary of Guardian Metal Resources. The unpatented mill site claims are enumerated in Exhibit A.3 of Erwin Thompson Faillers’ record title and status report. |
| RSI-3732 18 2 NT Claims The NT claims comprise 45 unpatented mining claims owned by Pilot Metals Inc. situated in sections 8, 9, and 16 in Township 6 North, Range 37 East in the Mount Diablo Meridian in Mineral County, Nevada. The details of the NT claims are enumerated in Exhibit A.4 in Appendix A, Erwin Thompson Faillers’ record title and status report. Guardian Metal Resources controls the NT claims through its wholly owned subsidiary, Pilot Metals Inc. Two Overlapping Claims Two unpatented mining claims located on November 1, 1989, in the southwest quarter of Section 16 and the southeast quarter of Section 17, Township 6 North, Range 37 East—Turquoise Bonanza 4 and Turquoise Bonanza Ex—overlap certain of the NT claims. These two claims are senior to the NT Claims. Generally, when two unpatented mining claims conflict (overlap), the senior unpatented mining claim (the first to be located) has the superior title. Guardian has determined that the lands within the Turquoise Bonanza 4 and Turquoise Bonanza Ex are not material to the Pilot Mountain Project. 3.3 MINERAL RIGHTS Ownership of unpatented mining claims is in the name of the holder (locator), subject to the paramount title of the United States of America, under the administration of the BLM. Under the Mining Law of 1872, which governs the location of unpatented mining claims on federal lands, the holder has the right to explore, develop, and mine minerals on unpatented mining claims without payments of production royalties to the United States Government, subject to the surface management regulation of the BLM and all other applicable state and federal environmental regulations. 3.4 ANNUAL HOLDING COSTS Currently, annual federal claim maintenance fees and county recording fees are the only payments required to maintain unpatented mining claims. The federal claim maintenance fees are $200 per claim, per year and they are due on September 1 of each year. The county recording fees are $12 per claim plus a $12 filing fee, per year and they are due on September 1. As summarized in Table 3-1, the annual fees for the Pilot Mountain Project are $44,108. These fees have been paid in full through September 1, 2026. Table 3-1. Annual Holding Costs of the Pilot Mountain Project Claims Federal Claim Maintenance Fees County Recording Fees 159 BFM Claims $31,800 $1,908 45 NT Claims $9,000 $540 4 Unpatented Mill Site Claims $800 $48 Total $41,600 $2,508 |
| RSI-3732 19 2 3.5 ROYALTIES 3.5.1 PILOT MOUNTAIN PROJECT ROYALTIES BFM Claims and Mill Site Claims There are no royalties associated with the 159 BFM claims and the four unpatented mill site claims. NT Claims Apex Royalties controls a royalty of 2% of the gross revenues from the production and sale of minerals from the 45 NT Claims. 3.6 ENCUMBRANCES The Pilot Mountain Project is located on federal lands administered by the BLM, and the BLM requires permits for all significant surface disturbances. Geologic mapping, soil and rock sampling, and other low impact activities can be conducted without specific permits on a casual use basis. Any road or trail construction used for mechanized equipment, drilling, or trenching requires filings with the BLM or county, as applicable. Up to five acres (~2ha) of disturbance are allowed on a notice-level filing. The notice-level filing may come with restrictions to protect biological, historical, or archeological resources. For lands administered by the BLM, a performance bond is required to ensure completion of the required reclamation work. Disturbances of more than five acres (~2has) requires a Plan of Operation (“PoO”) approved by the BLM and Nevada Division of Environmental Protection (“NDEP”), which in turn requires an Environmental Assessment (“EA”) or an Environmental Impact Statement (“EIS”) through the National Environmental Policy Act (“NEPA”) process. This process is standard practice in Nevada. Regulators and applicants follow a standard set of rules. A PoO may require significant environmental and archeological assessment work before the permit can be issued. Lead times for a PoO can take up to a year or two depending on the environmental conditions and extent of proposed operations. Guardian currently holds two Notices of Intent (NOIs) for exploration activities: one for the Desert Scheelite area (NVNV‑106362997) and one for Garnet (NVNV‑106714287), which includes the northern portion of Gunmetal. These notices provide sufficient permit coverage to complete the recommended work outlines in Section 23.0. Guardian is also in the process of having an exploration PoO and EA reviewed by regulators. The authors are not aware of any factors that would limit Guardian’s ability to secure the necessary permits to complete the proposed work. Guardian does not yet hold a mining permit. 3.7 OTHER SIGNIFICANT FACTORS AND RISKS / Guardian is not aware of any significant environmental, social, or permitting issues that would prevent continued exploitation of the Pilot Mountain Tungsten deposits. / Guardian is not aware of any other significant factors and risks that may affect access, title, or the right or ability to perform the proposed work program on the Property. / Information provided by Guardian and Erwin Thompson Faillers’ record title and status report supports that the mining tenure held by Guardian is valid and is sufficient to support the declaration of mineral resources. |
| RSI-3732 20 2 / Guardian holds sufficient surface rights in the project area to support the mining operations, including access. Power supply for site operations will require generators, with connection to grid power under investigation as part of ongoing engineering studies. Establishing grid access will require a power line easement to secure rights‑of‑way for transmission infrastructure. 3.7.1 RIGHTS-OF-WAY Guardian is not aware of any rights‑of‑way that would encumber exploration activities or the potential development of a mining project. |
| RSI-3732 21 2 4.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY The Pilot Mountain Tungsten Project is located in a sparsely populated area characterized by gently rolling topography with ranching and mining activities, approximately 260 road kilometers southeast of Reno, 146km southeast of Yerington, and 113km northwest of Tonopah via road. 4.1 PROPERTY ACCESS Hawthorne, the nearest large town, is approximately 89 road kilometers to the west of the project area on U.S. Highway 95 (Figure 3-1. and Figure 3-2.). The closest railhead is in the much smaller town of Mina about 39 road kilometers west of the project area via a well-maintained gravel road. 4.2 CLIMATE The climate at the Pilot Mountain Tungsten Project is arid, with average summer maximums around 35°C and winter minimums around -7°C (data for Hawthorne). The average annual precipitation is approximately 25cm and tends to peak in May [Western Regional Climate Center, 2013]. Neither exploration, nor mine construction, nor mine operations are likely to be significantly impacted by weather at seasonal extremes. 4.3 LOCAL RESOURCES The project is located in a sparsely populated area characterized by gently rolling topography with ranching and mining activities, approximately 260 road kilometers southeast of Reno, 145km southeast of Yerington, and 110km northwest of Tonopah by road. Yerington, with a population of approximately 4,000, and Tonopah, with a population of approximately 1,900, serve as a regional support hub with a major airport and well-developed infrastructure and services that support the surrounding mining industry. Yerington, Tonopah, and Reno can supply sufficient skilled labor for the project. 4.4 INFRASTRUCTURE Local groundwater is sufficient to support current exploration activities; however, the project may require accessing additional water from a nearby basin via pipeline A 120kV powerline is located 13km south, and grid connection options are under review; if not feasible, site generators will be considered. The access road meets current requirements but may need upgrading for full production. Nevada offers strong mining infrastructure and access to skilled personnel and suppliers. 4.5 PHYSIOGRAPHY The site lies on the lower eastern slope of the Pilot Mountains, northeast of Pilot Peak, in Mineral County, Nevada. Site elevations range from ~1,830 to ~2,290m above sea level. Steeper topography on the west side of the property provides good exposure of geology, while to the east and northeast, alluvial cover surrounds isolated hills of black basalt. |
| RSI-3732 22 2 The site is sparsely vegetated, mostly by sagebrush, rabbitbrush and associated vegetation (Figure 4-1). At higher elevations on the west side of the property, pinyon and juniper trees are present. Despite steeper slopes in some areas, roads constructed for drill rig access have been established across much of the site. Figure 4-1. Desert Scheelite Test Pit in July 2025, Looking West, Showing Steeply Dipping Garnet Skarn (Brown) in Contact With Quartz Monzonite (White). |
| RSI-3732 23 2 5.0 HISTORY The Pilot Mountain Tungsten Project has been subject to exploration activities since the early twentieth century, resulting in a substantial body of geological, geophysical, and drilling data. Despite this history of exploration, only limited production has been recorded. The sub-sections below provide a summary of past work and production history recorded at the Pilot Mountain Tungsten Project. Table 5-1 summarizes the drilling that historical operators completed at the Pilot Mountain Project from 1968-2017. Table 5-1. Summary of Historical Drilling by Operator Company Years Total Holes Type Total (m) Hecla Mining 1968 16 Percussion 1,652 Duval 1970-1977 66 Core, Percussion, Unknown 12,587 Grace 1975 5 Unknown 600 Union Carbide 1978-1980 185 Core, Rotary, Unknown 23,234 Black Fire 2011-2012 15 Core 3,047 Thor Mining 2017 9 RC 953 Total 296 42,073 5.1 EXPLORATION HISTORY 5.1.1 EXPLORATION -1900-1978 Scheelite was first discovered on the east flank of the Pilot Mountains in 1916 [Ross, 1961]. The discovery, as well as the discoveries of other similar skarn deposits in Nevada and California, directly resulted from a prospecting wave stimulated by high tungsten prices and the opening of several tungsten mills in the Bishop district in California [Hess and Larson, 1921]. Reportedly, several properties were developed at this time in the Pilot Mountains. However, none of them recorded any production. In 1921, Hess and Larson of the United States Geological Survey (“USGS”) inspected the district. They recognized the association of scheelite with the Gunmetal stock, mapped the location of tactites relative to the general outline of the stock, and identified three types of mineralization on the property: tactite, quartz-calcite-scheelite veins, and clots of quartz, calcite, silver-bearing galena, and scheelite. Hess and Larson considered the tactite mineralization to be the only type with significant tonnage potential. They examined the Gunmetal Adit on the northeast contact of the monzonite stock and reported a crushed zone along the stock contact with a "rather regular, nearly vertical vein which has slickensided walls and is from a few inches to three feet across, made up mostly of quartz, calcium-iron carbonate, and carrying some apatite, which is in part, at least, high grade scheelite ore" [Hess and Larson, 1921]. The adit followed this zone for about 185 feet. Hess and Larson observed grades up to 1% WO3 along this contact. |
| RSI-3732 24 2 Kerr [1946] reported that additional underground development work at the Gunmetal location had been disappointing. A long, crosscut tunnel that was driven through granite porphyry to intersect a projected tactite zone on the other side encountered only barren marble. Kerr also noted an association of quartz with higher-grade scheelite and the presence of quartz concentrations in the form of irregular, vertical, chimney-like masses, both within the granite porphyry and around its margins. Union Carbide Corporation (“UCC”) internal reports for the Garnet mine recorded a small production of 130 short tons through 1943 but presented no figures for Gunmetal. In 1952, Kenneth W. Dunham reopened the old Gunmetal Mine. UCC internal reports report approximately 15,378 short tons produced from Gunmetal between 1952-1956. Hecla Mining (“Hecla”) began exploring the Pilot Mountain property in 1968. To test porphyry Cu-Mo targets, Hecla drilled approximately 1,652m in 16 percussion holes between the Good Hope and Desert Scheelite zones and drilled several holes into tactite at Desert Scheelite. Hecla dropped the property after the drilling campaign. Duval Corporation (“Duval") leased the Desert Scheelite and Gunmetal properties in 1969. They completed ground magnetic and IP surveys. In 1970, Duval drilled four core holes totaling ~1,420m into an anomalous IP target south of Good Hope hoping to hit porphyry Cu-Mo mineralization. The holes only intersected weakly mineralized Cu-Mo quartz veins. Duval continued drilling in 1971 and encountered Cu-W mineralization in sulfide-rich tactite northeast of Desert Scheelite. In 1972 and 1973, they drilled seven additional core and percussion holes at Desert Scheelite. In 1975, W. R. Grace (“Grace") obtained a lease-option agreement on the property and drilled five angled drill holes, totaling about 728m, directed at the down-dip extension of the Desert Scheelite deposit. The program confirmed the width of the steeply dipping mineralization at Desert Scheelite, which had previously only been intersected in vertical drill holes. Grace did not exercise its option on the property. Duval continued exploration until 1977, when UCC optioned the property. UCC sampling programs in the underground exposures of the Gunmetal Mine averaged between 0.40 and 0.50% WO3. UCC evaluated the Duval geophysical and drilling data and initiated a ground magnetic survey and a drilling program to evaluate the property further. After their drilling intersected scheelite mineralization in both an extension of the Desert Scheelite and in the Middle Gunmetal/South Contact areas, UCC exercised their option to purchase Duval's interest in December 1978. UCC completed mining feasibility studies on the property and conducted trial mining on the Desert Scheelite deposit through a 70,000-tonne bulk sampling exercise. Low tungsten prices halted their activities. 5.1.2 EXPLORATION -2011-2021 Black Fire Minerals Ltd. (“Black Fire”) acquired an option on the property in September 2011 and completed a 15-hole drilling program designed to verify historical assay data. This program’s results |
| RSI-3732 25 2 supported the preparation of an initial mineral resource estimate for the Desert Scheelite deposit in 2012. Thor Mining PLC (“Thor”) acquired an interest in the property in 2014 and initiated a comprehensive exploration program that included a detailed review of archival data generated by UCC. In 2017, Thor completed nine holes targeting copper-silver mineralization within the Desert Scheelite and Garnet deposits. 5.2 HISTORICAL MINERAL RESOURCE ESTIMATES In 2012, Black Fire commissioned the first modern mineral resource estimate for the Desert Scheelite deposit. That estimate, prepared in accordance with the JORC (2004) Code, outlined tungsten resources with copper and silver credits. Following additional drilling and project advancement, Thor Mining updated the resource estimate in 2018. The revised estimate reported 10.7 million tonnes at 0.26% WO₃, 19.4 g/t Ag, 0.15% Cu, and 0.38% Zn above a 0.15% WO₃ cut‑off, with the majority classified as indicated resources. The 2018 update incorporated zinc into the resource inventory for the first time, which added a potential by‑product stream to the project [RES, 2018]. The reader is cautioned not to treat the mineral resources estimate discussed above, or any part of them, as current mineral resources or mineral reserves. A qualified person has not done sufficient work to classify these historical estimates as current mineral resources or mineral reserves. Neither RESPEC nor Guardian is treating these historical estimates as current estimates. The historical mineral resource estimate discussed above is relevant only for historical completeness. RESPEC did not rely on any of the previous resource estimates in preparing the current work. The mineral resources reported in Section 11.0 of this technical report summary supersede Thor’s 2018 estimate and are the Desert Scheelite deposit’s only current mineral resources. |
| RSI-3732 26 2 6.0 GEOLOGICAL SETTING, MINERALISATION, AND DEPOSIT 6.1 GEOLOGICAL SETTING The geology and geologic setting of the Pilot Mountain property were originally described in Union Carbide’s Pilot Mountain Project Geologic Setting and Field Trip Guide prepared by D. E. Grabher [1984], which is the primary source for much of the following information. RESPEC has reviewed it and other sources and considers the information they present to be a materially accurate summary of the geology and mineralization of the Pilot Mountain property as presently understood. 6.1.1 REGIONAL GEOLOGY The Pilot Mountain property lies within the Walker Lane structural belt of western Nevada, a northwest‑trending zone of strike‑slip faulting, extensional basins, and associated magmatism that accommodates a significant portion of the displacement between the Pacific and North American tectonic plates. The Walker Lane is interpreted as an incipient transform boundary, with deformation expressed through complex fault networks, localized subsidence, and magmatic intrusions that have influenced mineralization patterns across the belt [Faulds and Henry, 2008]. The oldest rocks in the Pilot Mountain area occur within the Luning allochthon, a thrust‑stack containing up to thirteen nappes, each generally composed of a single lithologic unit. These rocks range in age from Permian to Jurassic and are dominantly calcareous in the Pilot Mountains [Grabher, 1984; Oldow, 1978]. The allochthon was emplaced along the Luning thrust, a regionally extensive structure formed during the Nevadan–Laramide orogeny, which juxtaposed units of contrasting depositional and deformational histories. Geologists interpret the age of thrusting as lying between post‑late Early Jurassic (~175Ma) and Late Cretaceous (~68.7Ma) [Grabher, 1984; Speed, 1977]. During the Early to Middle Jurassic, orogenic movements resulted in quartzose sandstones and other clastic rocks being deposited unconformably over older sediments. Volcanic material becomes progressively more abundant within the Jurassic successions, indicating that magmatism intensified in response to ongoing orogenic activity. Igneous intrusions emplaced between the Jurassic and Tertiary periods cut the layered rocks of the region. Smaller stock‑like bodies of Cretaceous granodiorite– quartz monzonite and a Tertiary rhyodacite dome also occur in the Pilot Mountains [Grabher, 1984; Nielsen, 1963]. Skarn mineralization is associated with some of the intrusions. In the Middle to Upper Tertiary, widespread felsic to intermediate volcanic rocks were emplaced across the region. These volcanic units outcrop extensively and locally host precious‑metal mineralization outside the Pilot Mountain project area. Later tectonic activity in the region is expressed as northwest‑trending, right‑lateral faulting associated with the Walker Lane belt. This deformation overprints earlier structures, but basin and range faulting, which is prominent to the northeast in central Nevada, is not well developed within the Walker Lane corridor. |
| RSI-3732 27 2 6.1.2 PROPERTY GEOLOGY The Pilot Mountain project area is underlain by a thick succession of Permian to Jurassic sedimentary and volcanic rocks locally intruded by Cretaceous granitic stocks, dykes, and sills and overlain around the margins by Tertiary volcanic units. These rocks have been complexly deformed by thrust faulting and have a combined stratigraphic thickness that exceeds 6,000m. The oldest unit exposed is the Permian Mina Formation, a thick accumulation of marine turbidites, chert, and volcanogenic tuffaceous strata. South of the Desert Scheelite resource area, the Permian Mina Formation is prominently exposed in high cliffs across a major fault scarp. The Mina is overlain by the Triassic Luning Formation, the principal host of mineralization on the property. Although no continuous stratigraphic section is preserved locally, the Luning is at least 2,300m thick in its type locality and is subdivided into lower, middle, and upper members. / The lower Luning member, which hosts mineralization at Desert Scheelite, is ~800m thick and composed of ~60% clastic rocks and ~40% carbonates. Lithologies include fine‑grained crystalline limestone and bioclastic carbonate (calcarenite) beds ranging from centimeters to 30m thick. Fossils, particularly shallow‑water ammonites, are locally abundant. / The middle Luning member crops out in thicknesses of 100–450m. It forms gradational contact with the lower member and consists of interbedded conglomerate, arenite, wacke, and sandy mudstone. / The upper Luning member, which hosts mineralization in the Gunmetal–Garnet areas, is composed of ~80% limestone and ~20% fine‑grained clastic rocks. Massive calcarenite beds up to 5m alternate with thin‑bedded limestone, limey mudstone, and sandy mudstone up to 10m thick. The Lower Jurassic Dunlap Formation overlies the Luning with disconformable contact and is locally exposed along the southwestern edge of the property. It is ~1,500m thick in the central Pilot Mountains and records both subaerial and submarine depositional environments. Lithologies include sandstone, siltstone, shale, conglomerate, and minor bioclastic limestone and tuff. Intrusion of a Jurassic biotite quartz monzonite stock produced contact metamorphism, converting adjacent carbonate rocks to marble and pelitic clastics to hornfels. Skarn and calc‑silicate alteration formed locally by metasomatic processes within marble and calcareous metaclastic units during the latter phases of emplacement. Evidence of metamorphism extends up to 300m laterally from the northern contact of the stock, although significant mineralization in the modeled resource area is largely confined to within ~90m of the contact. The southern contact of the stock is concealed beneath Quaternary alluvium and sheetwash deposits [Golder, 2012]. |
| RSI-3732 28 2 Figure 6-1. Property Geology of the Pilot Mountain Tungsten Project. |
| RSI-3732 29 2 Figure 6-2. North-South Cross-Section 424305E Showing Tungsten Mineral Domain and Geology. COORDINATE SYSTEM: UTM WGS84 Zone 11N DATE: 17 November, 2025 RESPEC Reno Office 210 South Rock Blvd. 775.856.5700 %WO3 : <0.005 0.005 - 0.02 0.02 - 0.1 0.1 - 0.2 >0.2 Drill-Hole Assays Color: Mineralized Domain Clastic Sedimentary Hornfels Quartz Monzonite Marble Calcarious Sedimentary Overburden Domains Pilot Mountain Tungsten Project Mineral County, Nevada Tungsten Domains Section 424305 4248200 4248400 1600 1800 Meters 0 15 30 $65,500 Pit $65,500 Pit |
| RSI-3732 30 2 Figure 6-3. Generalized Stratigraphic Column for the Pilot Mountain Tungsten Project. |
| RSI-3732 31 2 Near the intruding quartz monzonite stocks, large areas of the Luning Formation’s carbonate section have undergone recrystallization accompanied by bleaching. These effects have obscured original sedimentary structures and fossil remains. The degree of recrystallization varies from bed to bed, with some units becoming very coarsely crystalline. Calc‑silication of marbles and conversion of mixed calcareous–argillaceous and marly sediments to calc‑silicate hornfels is widespread. The character of the altered rock depends largely on the original composition, though metasomatic processes may also have contributed. Thin diopside–feldspar– tremolite–clinozoisite beds of marly origin, as well as dense, light‑colored diopside–tremolite– K‑feldspar marbles, occur near mineralized centers but predate tungsten mineralization [Grabher, 1984]. Toward mineralized centers, the distinction between purely metamorphic and metasomatic effects becomes less clear. Hornfels typically darken to green, and pale grossularitic garnet and idocrase appear as lenses, veinlets, or knots within the marbles. Veinlets containing garnet, thulite, idocrase, tremolite, clinozoisite, and K‑feldspar crosscut the hornfels or follow bedding planes. Lenticular masses of grossularite garnet + idocrase ± sericite also occur in proximity to skarn [Grabher, 1984]. 6.2 DEPOSIT TYPE The Desert Scheelite deposit is a tungsten skarn deposit. Tungsten skarn deposits in the Great Basin formed along the North American Cordilleran magmatic arc, where granitic to granodioritic plutons intruded carbonate-rich basement rocks. Great Basin skarns are concentrated along the margins and roof zones of the Sierra Nevada batholith in California and in dispersed plutons across Nevada. The host rocks include Paleozoic continental shelf and slope facies dominated by limestone, dolomite, and mixed siliciclastic assemblages, as well as Triassic to Jurassic back-arc basin carbonates interlayered with volcaniclastic and siliciclastic units. Skarn ages range from Jurassic to Cenozoic, with most deposits forming during the Cretaceous, coincident with pulsed Cordilleran arc magmatism and crustal thickening [Lederer et al, 2021]. Plutons associated with tungsten skarns are typically coarse-grained granitoids crystallized at depths greater than 3km. Extensive fractional crystallization enriched incompatible elements, such as tungsten, in residual felsic melts. Tungsten partitioned into chlorine-rich magmatic fluids, driving metasomatic alteration of carbonate host rocks. Both reduced and oxidized plutons can generate tungsten skarns, though the highest grades are commonly linked to reduced granitic intrusions [Lederer et al, 2021]. Metasomatism produced zoned calc-silicate assemblages through prograde and retrograde crystallization. Prograde skarn minerals include garnet, pyroxene, and wollastonite, while retrograde assemblages are dominated by epidote, amphibole, and chlorite. Skarn geometry can vary with depth of formation. Deep systems (>5–10km) can form as narrow, vertically extensive bodies along plutonic contacts, whereas shallow systems (<5km) can be more broadly developed and display intense retrograde alteration due to meteoric water influx. Economic tungsten mineralization is typically restricted to exoskarns, where scheelite occurs as the dominant ore mineral [Lederer et al, 2021]. |
| RSI-3732 32 2 6.3 MINERALIZATION The mineralization‑hosting skarn at Pilot Mountain is classified into two principal compositional types: pyroxene‑rich skarn and garnet‑rich skarn. The garnet‑rich variety occurs in two subtypes, one enriched in base metals and one relatively base‑metal poor. Skarn composition is largely controlled by the character of the host carbonate rocks, while the degree of base‑metal enrichment appears to reflect the geochemical variability of the individual quartz monzonite stocks that intruded the sequence. 6.3.1 DESERT SCHEELITE The Desert Scheelite deposit is a base‑metal enriched tungsten skarn developed within lower Luning Formation carbonates and interbedded biotite hornfels. The skarn zone extends for approximately 600m along the contact of the Desert Scheelite quartz monzonite stock and persists for at least 300m down‑dip. The skarn dips steeply north, containing two mineralized zones on both the footwall and hanging wall sides. Garnet compositions, based on limited petrographic and X‑ray diffraction studies, are dominantly grossular‑andradite solid solution, with Fe‑rich andradite rims on garnet porphyroblasts [Grabher, 1984]. Mineralization is characterized by abundant scheelite, along with pyrite and base‑metal sulfides, principally chalcopyrite and sphalerite, which locally exceed 20% in unoxidized samples. Tungsten grades within this skarn are notably consistent compared to other deposits on the property. Desert Scheelite contains relatively abundant ankerite and siderite, in addition to pyroxene and quartz. Both iron carbonates and quartz are observed replacing garnet [Grabher, 1984]. 6.3.2 GARNET Both garnet skarns and pyroxene skarns are present at the Garnet deposit. Garnet skarns are commonly interbedded with marble and early‑stage pyroxene skarns. Mineralization occurs as high‑grade scheelite horizons within pyroxene–quartz–garnet skarn and as disseminations in the outer rims of zoned, porphyroblastic garnets set in a calcareous matrix. At depth, pyroxene skarns are expressed in two distinct subtypes: (1) a dark green pyroxene skarn with brown garnet veinlets developed from an inferred dolomitic limestone host, which outside the altered zone contains chlorite and serpentine bands; this subtype is consistently very low‑grade to barren in scheelite, though molybdenite may occur; and (2) a scheelite‑rich skarn, possibly formed by replacement of pre‑existing diopside–tremolite hornfels layers, characterized by quartz and fibrous amphibole replacing coarse tremolite and diopside, occurring as beds up to 60cm thick and as a green matrix enclosing dark brown isotropic garnet porphyroblasts, which themselves are barren [Grabher, 1984]. 6.3.3 GUNMETAL Exposures at the Gunmetal deposit are characterized by low‑sulfide garnet skarn. The skarn exhibits both contact‑related vertical replacement and flat‑lying stratiform replacement of upper Luning carbonates. Petrographic and X‑ray diffraction studies indicate garnet compositions within the grossular‑andradite solid solution, with Fe‑rich rims on garnet porphyroblasts [Grabher, 1984]. |
| RSI-3732 33 2 Pyroxene and quartz are the principal accessory minerals. Scheelite grades vary both between beds and with distance from the intrusive contact, with higher grades adjacent to marble and lower grades near quartz monzonite. The deposit also contains a narrow contact skarn and multiple stratiform skarns extending outward from the Gunmetal stock. These skarns are generally thinner, but locally include a zone of thin, higher‑grade skarn interbedded with thicker barren hornfels. |
| RSI-3732 34 2 7.0 EXPLORATION Since acquiring the Pilot Mountain project in 2021, Guardian has advanced exploration through a combination of data review, updated geological modeling, and targeted drilling programs. Work has focused on validating the historical resource base, assessing extensions of known mineralization, and collecting samples to support metallurgical and geotechnical evaluations. These activities provide the foundation for ongoing technical studies and a planned pre‑feasibility assessment, with detailed results and methodologies discussed in the subsections that follow. Given the early stage of the project, only preliminary hydrological or geotechnical investigations have been conducted at the Pilot Mountain deposits. 7.1 ROCK CHIP SAMPLING In June 2024, Guardian conducted closely spaced rock-chip sampling and whole‑rock geochemical analysis of the quartz monzonite intrusions on the property to determine whether their geochemical signatures are consistent with porphyry Cu‑Mo systems. Guardian also collected hydrothermally altered wall rocks south of the Porphyry South magnetic anomaly. Guardian submitted 12 quartz monzonite samples to ALS for whole‑rock geochemical analysis. The results returned element ratios (Sr/Y > 80; La/Yb > 20; Yb < 1.5) and Eu anomalies > 0.9, values that align with adakitic geochemical signatures commonly associated with Cu‑Mo porphyry intrusions. These findings indicate that the Pilot Mountain quartz monzonite exhibits geochemical characteristics consistent with globally recognized porphyry systems. Guardian also collected nine representative rock‑chip samples south of Desert Scheelite and Porphyry South. Eight samples contained >150ppm Cu, three exceeded 550ppm Cu, and two returned values of 691ppm Cu with 201ppm Mo and 799ppm Cu. These anomalous copper concentrations occurred in quartz-sericite-pyrite (“QSP”) altered metasedimentary rocks located 500–700m to the south of the Porphyry South anomaly. Copper showings included chrysocolla, malachite, and chalcocite associated with oxidized sulfide‑bearing quartz veins. Guardian’s geochemical results suggest that copper mineralization is present over a broad area adjacent to the quartz monzonite intrusions. In 2025, Guardian continued exploration at Porphyry South. Guardian’s work included detailed mapping of intrusions, porphyry dykes, copper occurrences, sulfides, and quartz vein density. Guardian collected 189 outcrop rock chip samples, analyzed by four‑acid digestion with ICP‑MS/ICP‑AES. Results confirmed elevated copper and molybdenum across Porphyry South. Along a ~1km east-west ridge of gossanous breccia, 15 rock-chip samples returned copper values above 1,000ppm, including a maximum of 2.05% Cu. Petrographic analysis confirmed cuprite, malachite, and tenorite within the breccia. Two smaller clusters of mineralized outcrops south of the quartz monzonite intrusion also yielded copper concentrations >500ppm. Trace element geochemistry showed elevated arsenic (>50ppm), selenium (>2ppm), and tellurium (>0.1ppm), consistent with QSP alteration and indicative of the phyllic alteration zone, which commonly surrounds porphyry system cores. |
| RSI-3732 35 2 7.2 GEOPHYSICAL SURVEYS In June 2023, while operating under the name Golden Metal Resources PLC, Guardian completed a high‑resolution induced polarization (“IP”) geophysical survey across the Pilot Mountain Project. The program encompassed the Desert Scheelite deposit and adjacent quartz monzonite stock, and it delineated three significant chargeability anomalies interpreted as disseminated sulfide mineralization. These anomalies provided early evidence of possible porphyry‑style systems and defined priority targets for follow‑up exploration. In 2025, Guardian completed a three‑dimensional induced polarization (“3DIP”) survey targeting porphyry-style alteration and mineralization that extended coverage southward from the 2023 IP survey area. The 3DIP results, integrated with the 2023 IP, confirmed the presence of chargeability anomalies. Although geophysical work remains at an early-stage relative to drilling and metallurgical studies, the results may provide support for refinement of exploration targets and potential resource expansion. 7.3 DRILLING Table 7-1 summarizes the meters drilled in each target area at the Pilot Mountain Project. Guardian has drilled a total of 89 core drill holes, which includes 68 holes at the Desert Scheelite deposit, 20 holes at the Garnet deposit, and one hole targeting Porphyry South. All drilling was conducted using diamond core methods, and drill-hole locations were surveyed by contracted professional land surveyors. Table 7-1. Guardian Drilling in 2024-2025 Target Type of Drilling Total Holes Total (m) Desert Scheelite Core 68 8,471 Garnet Core 20 1,466 Porphyry South Core 1 407 Total 89 10,344 Guardian contracted Diamondback Drilling, who operated Boart Longyear LF Super 90 rigs for core drilling. The crew applied barium‑based grease with organic compounds during coring. At shallow depths, they advanced short runs of one to two feet to manage broken core. The crew relied on mechanical methods to remove core from the barrel, including hammering the outside with a rubber mallet or claw hammer, ramming a metal stake into the back end, and shaking the barrel when necessary. The crew labeled cardboard core boxes with Guardian information, including hole ID, box number, and from and to depths. They marked each run with wood blocks noting footage, interval length, and recovered length in feet. The crew washed tubes and core with a plastic brush and water before placing samples in boxes, ensuring clean presentation and accurate labeling. As drilling progressed, core recovery improved, with later runs producing more intact samples. |
| RSI-3732 36 2 Figure 7-1. Map of Drill Holes at the Pilot Mountain Project. Advanced Surveying & Professional Services (“ASPS”) surveyed all the drill collar locations for the 2024–2025 program, along with 30 historical collars that remained physically identifiable on the project site. All collar positions were reported in Universal Transverse Mercator (“UTM”) coordinates using the WGS84 geodetic datum. Guardian collected down-hole survey readings for the 2024–2025 drilling program at 10m intervals using the Gyromaster instrument manufactured by Stockholm Precision Tools. |
| RSI-3732 37 2 8.0 SAMPLE PREPARATION, ANALYSIS, AND SECURITY 8.1 SAMPLE METHODS AND QA/QC 8.1.1 GUARDIAN METALS SAMPLING METHODS Every day of active drilling, Guardian geologists transported drill core from the drill site to the core facility in Hawthorne, Nevada. Once there, they placed the core on racks, pieced together and washed the core, and converted footages to meters labeled on the boxes and wood blocks. The geologists logged recovery, RQD, the primary and secondary lithologies, color, the presence and intensity of carbonate and quartz veining, faulting and structural intensity, alteration type and intensity, mineralization with visual estimates of modal mineral percentages, and the oxidation minerals present. They also documented jointing and other structural features and the redox state. Guardian geologists selected sample intervals based on geology (e.g., skarn, oxidation zones). Intervals ranged from a minimum of 0.1m to a maximum of 1.5m. The geologists stapled pre‑numbered sample tags into the core box at the beginning of each run, with two tags inserted when duplicates were required. They marked sample intervals directly on the core with red lumber crayon and used blue crayon to mark UV-fluorescent scheelite, and yellow crayon to indicate powellite. The geologists initiated sampling once mineralized zones were encountered in the core and continued sampling through the entire mineralized interval. To ensure representative coverage, 5m of buffer samples were collected on both sides of each mineralized zone. Guardian geologists photographed wet and dry core samples. Recently, they began photographing core boxes under UV light to highlight scheelite, powellite, and calcite fluorescence. After logging, the geologists placed core boxes next to the core saw. Sampling technicians cut the core from the top of the hole downward using a bench‑mounted saw. Cutters consistently sampled the right side of the core and returned the left side to the box in its original sequence. They sampled broken or rubbly intervals by volume. To make field duplicates, the cutters split the right half again, producing two quarter‑core samples. Technicians placed samples in large cloth bags with bar‑coded tags attached to the label, also inserted bar‑coded tags inside the bag, and transferred the bagged samples to supersacks labeled with the ALS client code and batch number. For quality assurance/quality control (“QA/QC”), Guardian geologists inserted certified reference materials (“CRMs” or “standards”), blanks, and field, coarse, and pulp duplicates at defined frequencies into the sample register. The QA/QC samples were placed in gallon Ziplock bags with sample tags and hole numbers on the bag. The crew palletized the supersacks, which were stored inside a locked Quonset hut. Guardian personnel delivered the supersacks directly to the ALS laboratory in Reno, Elko, or Carson City. Guardian personnel obtained chain-of-custody documentation at the lab and scanned the documentation into the project database. Guardian geologists also collected density samples every 10m. They wax‑coated the density samples and measured their densities using the water immersion method without oven drying for dry weight. They chose density samples to represent the range of lithologies, alteration types, and mineralization styles present. However, only intact samples were measured, so lithologies that tended to be broken or fractured might not be accurately represented. |
| RSI-3732 38 2 Guardian stores historical core outside under tarps in shipping containers that are not within the locked facility. 8.1.2 HISTORICALSAMPLING METHODS RESPEC reviewed drilling and sample collection methods conducted by Black Fire and Thor, relying primarily on prior reports prepared under JORC standards to compile available details [Golder 2012, RES 2018]. In 2012, Black Fire contracted Timberline Drilling Inc. (“Timberline”) to conduct core drilling using a track-mounted Boart Longyear LF90 drill rig. The drillers pre-collared the first 30m with a tri-cone roller bit due to poor ground conditions. RESPEC is not aware of any documentation identifying the specific procedures employed during drilling and core recovery. Black Fire geologists logged recovery, RQD, and the quality of the mark for core orientation. They also recorded UV fluorescence, lithology, alteration, mineralization, veining, and structures on geologic logs. Black Fire personnel photographed wet and dry core and marked samples on geological intervals using pre-numbered sample registers. Black Fire technicians cut the core, sent half for analysis, and retained the remaining half for reference. Black Fire personnel submitted QA/QC samples, including CRMs and blanks, with the core samples. RESPEC is not aware of any additional documentation identifying the specific procedures used for sampling and QA/QC insertion beyond what is available in the Golder [2012] and RES [2018] reports. Black Fire stored samples in a locked shed at Black Fire’s facility in Hawthorne, Nevada. After the completion of each hole, a Black Fire technician delivered the samples to ALS in Reno, Nevada. RESPEC does not have documentation indicating which drilling contractor or rig Thor used for the RC drilling they conducted. The drill crew collected 2kg subsamples at 0.76m (2.5ft) intervals using a rotary splitter. Thor personnel collected, logged, and photographed chip tray samples. Thor geologists logged UV fluorescence, lithology, alteration, and mineralization. RESPEC is not aware of any additional documentation identifying the specific procedures Thor used to manage sampling and QA/QC insertion beyond what they reported. Thor stored samples in a locked shed at their facility in Hawthorne, Nevada. A Thor technician delivered the samples to ALS in Reno, Nevada. RESPEC has not identified or reviewed any documentation detailing the sample handling, preparation, security procedures, or chain of custody protocols employed during the 1970s drilling at the Pilot Mountain project. 8.2 SAMPLE PREPARATION 8.2.1 GUARDIAN METALS SAMPLE PREPARATION AND ANALYTICAL METHODS ALS Laboratories in Reno, Nevada prepared and analyzed the samples Guardian submitted using established geochemical methods suitable for multi-element and ore-grade analysis. To conduct the initial assays for tungsten, silver, copper, and zinc, ALS used method ME-ICP61, a four-acid digestion |
| RSI-3732 39 2 followed by inductively coupled plasma–atomic emission spectroscopy (“ICP-AES”). This methodology provides reliable detection across a broad range of metal concentrations. To ensure accurate quantification of initial assays that exceeded upper detection limits (overlimits), ALS re-analyzed overlimit samples using ore-grade methods. ALS re-assayed overlimit silver samples using aqua regia (“OG46”) and four-acid (“OG62”) methodologies. ALS used OG62 to re-assay overlimit copper and zinc samples. These methods incorporate enhanced digestion and detection protocols designed for high-concentration samples. Any tungsten samples that reported greater than 1,300ppm W were re-analyzed using x-ray fluorescence (“ME-XRF15c”), a pressed pellet technique appropriate for quantifying tungsten trioxide (“WO3”) in high-grade material. ALS Laboratories is accredited to ISO/IEC 17025 for laboratory competence and ISO 9001 for quality management systems. These certifications confirm that ALS maintains rigorous analytical protocols and traceable procedures. RESPEC knows of no relationship between ALS and Guardian other than that of an independent commercial laboratory providing analytical services to a client. 8.2.2 HISTORICALSAMPLE PREPARATION AND ANALYTICAL METHODS Analytical protocols for the Black Fire and Thor drilling campaigns at Desert Scheelite involved standardized sample preparation and multi-element analysis conducted by ALS. Upon receipt, ALS registered, weighed, dried, and crushed the samples to achieve greater than 70% passing a 2mm screen. The lab then obtained a 1,000g split and pulverized it to greater than 85% passing a 75-micron screen. ALS subjected a portion of the prepared samples to a multi-acid digestion method suitable for near-total decomposition of silicate-rich material, then performed the elemental analysis using ICP-AES. To confirm analytical consistency, American Assay Laboratories (“AAL”) processed check samples using the same methodology. AAL is accredited under ISO/IEC 17025:2017, covering both sample preparation and analytical procedures. RESPEC knows of no relationship between ALS or AAL and Black Fire or Thor other than that of an independent commercial laboratory providing analytical services. Guardian recovered a partial set of original assay certificates from the 1970s drilling programs conducted by UCC and Duval. These records provide limited insight into the analytical work performed for some of the assays obtained during that period. The laboratories identified in the available documentation include Rocky Mountain Geochemical, Skyline Labs, and Southwestern Assayers and Chemists. Sample preparation techniques used by these laboratories were not recorded in the available documentation and remain unknown to RESPEC. The analytical methods employed included atomic absorption spectroscopy for multi-element analysis and colorimetric techniques for tungsten determination. Certification status for these laboratories during the 1970s is not fully documented. However, Skyline Labs is known to have held ISO 9001:2015 and ISO 17025:2017 certifications in later years, while no |
| RSI-3732 40 2 publicly available records confirm accreditation for Rocky Mountain Geochemical or Southwestern Assayers and Chemists. 8.3 QUALITY ASSURANCE/QUALITY CONTROL RESPEC compiled and evaluated QA/QC results from Guardian’s 2024–2025 drilling programs and reviewed published QA/QC data for Black Fire and Thor. Results from CRMs, blanks, and field duplicates are summarized and discussed in this section. Certified Reference Materials CRMs are powdered materials containing known concentrations of target metals and are used to assess analytical accuracy. Commercial suppliers provide certified values and associated standard deviations derived from multiple laboratory analyses. Analytical results are typically considered acceptable when they fall within the certified value ± three standard deviations. Blanks Blanks contain metal concentrations below detection limits and are used to monitor laboratory contamination. Two types are commonly used: coarse blanks and analytical (pulp) blanks. Coarse blanks are crushed and pulverized through the full preparation process and are most effective for detecting contamination introduced during sample preparation. Analytical blanks, consisting of barren pulp material, monitor contamination at the analytical stage but are less diagnostic. Blanks returning values greater than five times the detection limit are considered failures. Duplicates Field duplicates are secondary splits of drill core or reverse circulation (“RC”) samples collected at the drill site or during core sampling. They are used to evaluate the natural heterogeneity of metal distribution in the deposit but also provide a measure of sampling precision and can identify potential issues with sample splitting. Preparation duplicates are coarse reject splits usually prepared by the laboratory at the request of project staff. Pulp duplicates are also produced by the lab for their internal QA/QC programs. 8.3.1 GUARDIAN METALS QA/QC RESULTS CERTIFIED REFERENCE MATERIAL 2024-2025 During their 2024-2025 drill programs, Guardian used a combination of commercially produced and internally prepared CRMs. They obtained a commercial CRM from Geostats Pty Ltd. (“Geostats”) and another from CDN Resource Laboratories Ltd. (“CDN”). Both CRMs were certified for tungsten, but the CRM from CDN was also certified for copper (Table 8-1). Internally prepared standards were derived from Desert Scheelite drill material collected by Guardian and certified for tungsten, silver, copper, lead, and zinc through round-robin testing managed by Moment Exploration Geochemistry Labs (“MEG”). The insertion rate for CRMs in Guardian’s drilling program was approximately 6% for tungsten assays. |
| RSI-3732 41 2 Table 8-1. CRMs Used by Guardian Metals CRM ID Source Drill Years Insertion Count Certified W ppm W Std Dev ppm Certified Ag ppm Ag Std Dev ppm Certified Cu ppm Cu Std Dev ppm Certified Zn ppm Zn Std Dev ppm CDN-W-4 CDN 2024- 2025 25 3,660 240 1,390 80 GW-02 Geostats 2024- 2025 6 1,231 20 W311001X Guardian 2024- 2025 36 1,930.8 224.1 52.06 1.74 42,370.3 1,378.1 7,236.2 293.3 W311002X Guardian 2024- 2025 24 1,401.7 77.2 10.73 1 2,859.36 80.54 4,037.2 255.6 W311003X Guardian 2024 4 3,550.2 318.3 20.93 1.17 357.03 17.72 10,221.7 486.4 Table 8-2 summarizes the evaluation of tungsten, silver, copper, and zinc analyses in all CRMs used by Guardian. Analytical performance was generally within acceptable limits, and no consistent analytical bias evident across elements. Tungsten shows a modest negative bias (-3% to -10%) relative to the expected values, while copper and zinc results are close to the certified values, with biases typically less than ±6%. Silver results display greater variability, including a few isolated high values, but these do not indicate a systematic analytical issue. Overall CRM failure rates across all elements were low (Table 8-3), with 14 failures out of 312 insertions (4.5%). Tungsten returned 5 failures from 95 CRMs (5.3%), including four low and one high outlier. Silver exhibited the highest failure rate, with 6 failures from 64 CRMs (9.4%), all on the high side. Copper showed 2 failures from 89 CRMs (2.2%), both high outliers, while zinc returned 1 failure from 64 CRMs (1.6%). These results indicate generally strong QA/QC performance, with silver showing comparatively higher variability. The apparent copper and zinc failures for CRM W311002X may be attributed to potential mislabeling, as the copper and zinc results are consistent with the typical values reported for W311001X and W311003X. However, this possibility cannot be confirmed. The five silver failures in W311001X are interpreted as genuine analytical inaccuracies, likely reflecting greater-than-expected variability in ALS’s silver analyses, as indicated by the higher standard deviation observed for this CRM. The cause of the high failure rate of GW-02 is unknown. No clear analytical or procedural cause was identified, although due to the limited number of insertions, it is difficult to evaluate the issue further. RESPEC is not aware of the specific steps Guardian undertook with ALS to address CRM assay failures. |
| RSI-3732 42 2 Table 8-2. Summary of Analyses for Guardian Certified Reference Materials 2024-2025 CRM ID Period Laboratory Element Insertions Expected Value ppm Grades in ppm Failure Counts Bias as % Low Mean High Low High CDN-W-4 2024- 2025 ALS W 25 3,660 3,380 3,499 3,610 0 0 -4.4 CDN-W-4 2024- 2025 ALS Cu 25 1,390 1,340 1,396 1,460 0 0 0.4 GW-02 2024- 2025 ALS W 6 1,231 1,130 1,158 1,220 4 0 -5.9 W311001X 2024- 2025 ALS W 36 1,931 1,590 1,730 1,820 0 0 -10.4 W311001X 2024- 2025 ALS Ag 36 52.1 51.4 54.1 56.6 0 5 4.0 W311001X 2024- 2025 ALS Cu 36 42,370.3 40,400 42,330 44,200 0 0 -0.1 W311001X 2024- 2025 ALS Zn 36 7,236.2 6,990 7,386.9 7,730 0 0 2.1 W311002X 2024- 2025 ALS W 24 1,402 1,270 1,357.9 1,700 0 1 -3.2 W311002X 2024- 2025 ALS Ag 24 10.7 10.4 13.0 55.0 0 1 20.9 W311002X 2024- 2025 ALS Cu 24 2,859 2,690 3,186.7 10,000 0 2 11.5 W311002X 2024- 2025 ALS Zn 24 4,037 3,870 4267.1 7400 0 1 5.7 W311003X 2024- 2025 ALS W 4 3550.2 2960 3237.5 3410 0 0 -8.8 W311003X 2024- 2025 ALS Ag 4 20.9 20.2 21.5 23.1 0 0 2.8 W311003X 2024- 2025 ALS Cu 4 357 340 351.3 368 0 0 -1.6 W311003X 2024- 2025 ALS Zn 4 10221.7 10550 10620 10700 0 0 3.9 Table 8-3. CRM Failures by Metal Metal Total CRMs Low High Failures Total Rate W 95 4 1 5 5.3% Ag 64 0 6 6 9.4% Cu 89 0 2 2 2.2% Zn 64 0 1 1 1.6% Total 312 4 10 14 4.5% |
| RSI-3732 43 2 BLANKS 2024-2025 The blanks used during 2024–2025 were procured from MEG Labs and are certified. They consist of rhyolite cobbles sourced from western Nevada. The insertion rate was approximately 6%. For tungsten, 51 of the 92 analyses reported results below the detection limit of 10ppm W. Thirty-nine analyses returned between 10 and 60ppm W, below the warning limit of 100ppm W. Two analyses, at 130ppm W and 2,350ppm W, followed the processing of higher-grade samples and indicates limited contamination occurred during sample processing. For silver, 91 of the 92 analyses returned results below the detection limit of 0.5ppm Ag, with one blank assay at 7.7ppm Ag considered a failure. For copper, 9 of the 92 analyses reported results below the detection limit of 1ppm Cu. Sixty-seven analyses reported between 1 and 9ppm Cu, below the warning limit of 10ppm Cu. Sixteen analyses exceeded 10ppm Cu and indicate minor contamination during sample preparation after higher-grade samples were processed. One failure at 4,050ppm Cu corresponded to the same blank that returned 2,350ppm W. The coarse blank returned repeated failures for zinc. However, the blank material had not been evaluated or certified for zinc and may therefore be unsuitable for monitoring potential contamination of this element. Consequently, the zinc blank results are not considered reliable indicators of laboratory or sample preparation contamination. Although RESPEC does not know what follow-up actions, if any, Guardian undertook regarding the errant blank assays, the isolated failures for tungsten, silver, and copper do not indicate a systematic contamination issue during sample preparation at the laboratory. FIELD DUPLICATES 2024-2025 Guardian collected 34 field duplicates, consisting of quarter-core splits. RESPEC evaluated the results for these statistically, on scatterplots, and relative percent difference (“RPD”) analyses. The results are summarized in Table 8-4. Table 8-4. Summary of Results for Field Duplicates in 2024-2025 Type Start Date End Date Metal Counts RMA Regression Rel Pct Diff Corr Coeff All Used Outliers (y = dup, x = orig) ¼ core field duplicate Sep-24 May-25 W 34 34 0 y = 1.036x - 24.022 3.5 0.958 Ag 34 29 2 y = 0.897x + 0.228 –10.9 0.962 Cu 34 34 0 y = 0.987x + 39.662 –1.3 0.998 Zn 34 34 0 y = 1.009x + 2.377 0.9 0.992 The RPDs for the elements in Table 8-3 indicate minimal bias between analyses of original and field duplicate samples for tungsten (Figure 8-1), copper (Figure 8-2), and zinc (Figure 8-3). Tungsten duplicates returned an average RPD of 3.5% with a correlation coefficient of 0.958, reflecting low |
| RSI-3732 44 2 variability and strong reproducibility. Copper duplicates showed an average RPD of -1.3% and a correlation coefficient of 0.998, indicating excellent agreement. Zinc duplicates reported an average RPD of 0.9% with a correlation coefficient of 0.992, also demonstrating strong reproducibility. A slight negative bias was observed in the silver assay duplicates, with duplicate values consistently reporting lower concentrations than the original assays (Figure 8-4). After removal of two outlier pairs, the average RPD remained at approximately -10%, though correlation remained strong at 0.962. The variability in field duplicates generally reflects natural heterogeneity in the deposit rather than systemic analytical errors. Sampling inconsistencies can also cause variability or bias in the RPD data. Figure 8-1. Tungsten Field Duplicate vs. Original, Desert Scheelite 2024-2025. |
| RSI-3732 45 2 Figure 8-2. Copper Field Duplicate vs. Original, Desert Scheelite 2024-2025. Figure 8-3. Zinc Field Duplicate vs. Original, Desert Scheelite 2024-2025. |
| RSI-3732 46 2 Figure 8-4. Silver Field Duplicate vs. Original, Desert Scheelite 2024-2025. PREPARATION DUPLICATES 2024-2025 Guardian marked 26 coarse duplicate samples in the original sample stream and instructed ALS to prepare duplicates from the coarse rejects of the original sample. RESPEC evaluated these duplicate pairs in the same manner as for field duplicates. A summary of the results is presented inTable 8-5. Table 8-5. Summary of Results for Preparation Duplicates in 2024–2025 Type Start Date End Date Metal Counts RMA Regression Rel Pct Diff Corr Coeff All Used Outliers (y = dup, x = orig) coarse prep dup. Sep-24 May-25 W 26 26 0 y = 0.995x - 3.072 –0.5 0.989 Ag 26 26 0 y = 1.029x + 0.484 2.8 0.988 Cu 26 26 0 y = 0.999x + 20.583 –0.1 1.000 Zn 26 26 0 y = 0.973x + 33.281 –2.7 0.998 The analysis used all samples. No outliers were removed. RMA regression results indicate strong linear relationships between original and duplicate assays, with correlation coefficients ranging from 0.988 to 1.000. RPDs were minimal, ranging from -2.7% to +2.8%, which suggests good analytical precision and negligible bias across all metals. Regression slopes were near unity, further supporting the reproducibility of the preparation duplicate assays. Variability and bias in RPD data tends to decrease at each stage of crushing, such that variability is highest in field duplicates, lower in preparation duplicates, and lowest in pulp duplicates. |
| RSI-3732 47 2 PULP DUPLICATES 2024-2025 Guardian also marked 23 pulp duplicate samples in the original sample stream and instructed ALS to prepare pulp duplicates by splitting the original pulp material. A summary of the results is presented in Table 8-6. Table 8-6. Summary of Results for Pulp Duplicates in 2024-2025 Type Start Date End Date Metal Counts RMA Regression Rel Pct Diff Corr Coeff All Used Outliers (y = dup, x = orig) pulp dup. Sep-24 May-25 W 23 23 0 y = 1.031x + 40.811 3.0 0.979 Ag 23 18 1 y = 0.930x - 0.216 –7.2 0.988 Cu 23 23 0 y = 0.985x - 46.092 –1.5 0.984 Zn 23 23 0 y = 1.033x - 13.139 –0.5 0.995 RESPEC used all samples in the evaluation except for silver. For silver, RESPEC used 18 samples and excluded one outlier. RMA regression results show strong correlations between original and duplicate assays, with correlation coefficients ranging from 0.979 to 0.995. RPDs were low across all metals, ranging from –7.2% to +3.0%. The silver assays exhibited a slight negative bias (RPD = –7.2%), consistent with earlier observations of lower duplicate values at low grades. Overall, the pulp duplicate results demonstrate good analytical precision and minimal bias. SUMMARY OF HISTORICAL QA/QC RESULTS No QA/QC data are available for the original 1970s drilling or for the 2017 program completed by Thor. During the preparation of this resource estimate, no independent assessment of Black Fire’s 2011– 2012 QA/QC program was possible, as the supporting data were not available for review. Although earlier technical reports—Golder [2012] and RES [2018]—describe Black Fire’s QA/QC procedures and results from their campaigns, the absence of underlying data precluded RESPEC from evaluating or verifying the conclusions. As a result, all conclusions by RESPEC regarding data quality for the Thor and Blackfire QA/QC are based solely on the current dataset and accompanying documentation. 8.4 QP OPINION Based on the documentation reviewed, the authors believe that the sample preparation, analytical procedures, and QA/QC protocols implemented by Guardian during the 2024–2025 drilling programs are adequate to support the resource estimate presented in Section 11.0. Guardian’s core handling and sampling followed reasonable standard operating procedures, with consistent application of sample interval selection, protocols, and chain-of-custody measures. ALS conducted sample preparation and analysis using appropriate multi-element and ore-grade methods and performed re-assays using methods with higher detection limits when overlimit assays occurred. Guardian’s QA/QC measures included insertion of certified reference materials, blanks, and field, coarse, and pulp duplicates at statistically meaningful frequencies. The authors evaluated analytical performance using statistics, RPD, and regression analysis. Results for tungsten, copper, and zinc demonstrated acceptable precision and minimal bias across all duplicate types. Silver assays showed slightly elevated variability, particularly at low concentrations, but did not exhibit systematic errors. |
| RSI-3732 48 2 Blank performance was generally acceptable, with isolated failures attributed to sample carryover rather than persistent contamination. CRM results were within expected ranges, with no consistent analytical bias observed. The authors judge that QA/QC results are adequate to support the use of assay data in resource estimation, even though the CRM failure rate was somewhat high for some metals and Guardian’s follow up on CRM and blank failures is not known. The duplicate data sets indicate generally low overall variability, with relative percent differences (RPDs) averaging less than 5% for tungsten, copper, and zinc. These results suggest minimal bias and strong reproducibility between original and duplicate assays. Silver duplicates exhibited a slight negative bias, with duplicate values consistently lower than the originals and an average RPD of approximately ‑10%. The duplicate analyses demonstrate that assay reproducibility is acceptable across the dataset, with only minor bias observed in silver. Black Fire and Thor collected samples using rotary-split RC and core methods. ALS and AAL, both ISO/IEC 17025 accredited, conducted sample prep and analysis. QA/QC protocols included insertion of CRMs and blanks, and check assays confirmed consistency. Although raw QA/QC data from the 2011– 2012 validation program is unavailable, documented procedures provide some confidence in data quality. Due to the absence of QA/QC data, the authors place lower confidence in the Black File and Thor datasets. However, comparative analysis with validated datasets supports the inclusion of select historical data in the mineral resource estimate presented in Section 11.0. Historical drilling data from the 1970s lacks documented sampling protocols and QA/QC records. However, legacy labs such as Skyline Labs held ISO accreditation in later years. The authors place lower confidence in the historical assay data due to the lack of QA/QC data and results. However, as discussed in Section 9.0, data validation through comparative analysis supports the inclusion of select historical data in the estimate of mineral resources presented in Section 11.0. |
| RSI-3732 49 2 9.0 DATA VERIFICATION RESPEC performed a variety of tasks to verify the Desert Scheelite project data. The authors compared the current drilling database to original digital records, which included assay results, collar coordinates, and down-hole orientation surveys. The limited available documentation of the historical drilling data consisted primarily of scanned assay certificates, so RESPEC manually audited a representative portion of the historical data. As detailed in Section 8.3, the authors evaluated the available QA/QC data associated with assays. In addition to the data review, RESPEC conducted a site visit that included direct inspection of the deposit area and Guardian’s operational facility in Hawthorne, Nevada. 9.1 SITE VISITS AND PERSONAL INSPECTIONS Accompanied by Guardian geological personnel, RESPEC geologists visited the Pilot Mountain project on July 8 and 9, 2025, and conducted field examinations of altered and mineralized rocks of the Desert Scheelite, Garnet and Gun Metal deposits. They reviewed core from Desert Scheelite deposit holes PM24-12 and PM24-04 at Guardian’s sample processing facility in Hawthorne, Nevada. The RESPEC geologists also reviewed core sample handling, processing, and storage protocols at the sample-processing and storage facilities, directly observed core handling at a rig drilling into the Garnet deposit, discussed QA/QC, logging procedures, and specific gravity (“SG”) measurements with Guardian personnel, performed GPS collar checks at locations of select holes at drill sites, and collected confirmation samples for assay. 9.2 DRILL-HOLE DATA VERIFICATION Guardian compiles and manages Desert Scheelite deposit drill-hole data in a digital database. The database incorporates information sourced from original field records and laboratory-issued data files. Guardian provided RESPEC with the complete dataset, including original down-hole survey records and collar location documentation. RESPEC obtained the assay certificates for the 2024–2025 drilling program by directly downloading the data from ALS’s secure reporting system. RESPEC’s verification of the Desert Scheelite project data included audits of the assay, down-hole survey, and collar location tables. For each dataset, RESPEC constructed independent comparison tables using original source files and evaluated them against Guardian’s database. Software tools used for this process included Microsoft Excel and the Hexagon MS Torque program. RESPEC and Guardian collaboratively reviewed and resolved any identified discrepancies. The final data tables used for resource estimation incorporated all necessary corrections. 9.2.1 DRILL-HOLECOLLAR LOCATIONS COORDINATE COMPARISONS Guardian’s datum usage has been clearly documented. During the collar audit, RESPEC identified historical records that had previously been transformed to UTM coordinates using the NAD83 datum. To assess the positional implications of this discrepancy, RESPEC performed coordinate comparisons |
| RSI-3732 50 2 between WGS84 and NAD83 datums across all collar locations with ASPS survey records. RESPEC calculated the positional offsets using Euclidean distance between Easting/Northing pairs. As summarized in Table 9-1, the mean offset was 0.1093m with a standard deviation of 0.0006m. These results confirm sub-decimeter consistency across the dataset. Table 9-1. Positional Offset Statistics —WGS84 Versus NAD83 Coordinate Comparison Offset Statistic Value (m) Minimum Offset 0.1087 Maximum Offset 0.1099 Mean Offset 0.1093 Median Offset 0.1097 Standard Deviation 0.0006 Number of Collar Points 70 Given the minimal positional difference and the consistent use of WGS84 in modern data acquisition, all coordinates in this report are retained in UTM WGS84. This approach ensures internal consistency and avoids unnecessary transformation artifacts. Based on the results of the comparison, the positional tolerance is well within acceptable limits. GPS COLLAR CHECKS During the July 2025 Pilot Mountain project site visit, RESPEC geologists took GPS measurements on eight drill pads, or suspected drill pads, to spot-check coordinates in Guardian’s collar tables (Table 9-2). Field measurements and collar coordinates in the database were taken in NAD83 meters for comparison in Table 9-2. RESPEC found direct evidence of drill holes—concrete plugs, drill pipe, or open holes—at six sites. Four sites had drill-hole identifications marked in some way, of which two were Guardian holes. Two sites were suspected or determined to be pads using less direct evidence, such as the presence of cuttings, or level spots likely constructed for no other reason than drilling. Where no drill-hole identification was found at the site, the closest drill collar in the database was used for comparison. Table 9-2 gives the best-case comparisons (although unconfirmed). The RESPEC geologists used a Garmin eTrex - Legend non-differential GPS to measure coordinates at the drill sites and pads. The Garmin website indicates that the eTrex - Legend device is accurate to within “3-5m (10-16ft), 95% typical with DGPS corrections, <15m (49ft) RMS, 95% typical.” The overall results were good for all holes and suspected pads, drill sites, and inferred collar locations. All measured coordinates were within an expected range of the non-differential GPS accuracy when compared to the database coordinates. The largest discrepancy was 3.6m for northings and eastings. Differences up to 6.4m was noted for elevations, although GPS readings in the vertical sense tend to be less accurate. |
| RSI-3732 51 2 Table 9-2. Verification GPS Checks of Drill Collars at the Pilot Mountain Project (Page 1 of 2) Location Drill-Hole ID Description RESPEC GPS Collar Coordinates Guardian Database Collar Coordinates Difference - RESPEC vs Database Easting (m) Northing (m) Elevation (m) Easting (m) Northing (m) Elevation (m) Easting (m) Northing (m) Elevation (m) Desert Scheelite - Test pit DSDD-02? Old wood stake in ground with no apparent markings or concrete plug 424,040 4,248,272 1,955 424,040 4,248,273.41 1,956.2 0 1.41 1.2 Desert Scheelite - Test pit DSDD-03 2ft diameter concrete plug with hole ID carved into surface 424,083 4,248,286 1,954 424,083 4,248,288.78 1,956.7 0 2.78 2.7 Desert Scheelite - Test pit 87 Rebar with orange plastic cap possibly embedded in concrete; Adjacent orange pin flag marked with '87' 424,124 4,248,289 1,955 424,125 4,248,287.26 1,957.923 1 –1.74 2.923 Desert Scheelite - Near trench west of test pit PM24- 33 1½in x 1½in wood stake marked with hole ID, proposed hole ID and dip of hole; Painted red and embedded in concrete plug 423,906 4,248,252 1,989 423,908 4,248,248.73 1,990.148 2 –3.27 1.148 Desert Scheelite - South of test pit PM24- 17 Same 1½in x 1½in wood stake embedded in concrete plug as PM24-17; Also has aluminum tag at base of stake marked with hole ID 424,305 4,248,331 1,945 424,307 4,248,328.79 1,948.363 2 –2.21 3.363 Good Hope DH-81 5½in-diameter casing extending 8in to 10in above ground surface on old drill pad. 423,916 4,249,462 1,953 423,917 4,249,458.4 1,957.8 1 –3.60 4.8 |
| RSI-3732 52 2 Table 9-2. Verification GPS Checks of Drill Collars at the Pilot Mountain Project (Page 2 of 2) Location Drill-Hole ID Description RESPEC GPS Collar Coordinates Guardian Database Collar Coordinates Difference - RESPEC vs Database Easting (m) Northing (m) Elevation (m) Easting (m) Northing (m) Elevation (m) Easting (m) Northing (m) Elevation (m) Garnet - At site of Guardian drill hole PMGR25- 119 in progress GR-070? Metal casing with metal cap likely created on-site with cutting torch; Hole not marked, but GR-070 is the only drill hole with coordinates that are reasonable 422,230 4,249,455 2,176 422,233 4,249,452 2,175.7 3 –3.00 –0.3 Gun Metal GM-31 Metal cap with handle over open hole; Aluminum tag marked with hole ID attached to handle of cap with wire tie or bailing wire; Buried over time with 3in to 4in of loose sediment 422,447 4,248,861 2,143 422,448 4,248,858.6 2,149.4 1 –2.40 6.4 Note: Coordinates measured in UTM NAD 83 Zone 11 meters projection |
| RSI-3732 53 2 9.2.2 DOWN-HOLE SURVEYS Guardian provided RESPEC with digital copies of the raw survey data in Excel format for each drill hole. RESPEC used these files to verify the down-hole orientation data stored in Guardian’s database. RESPEC did not identify any discrepancies. No down-hole orientation data were available for the historical drill holes. As a result, survey verification was limited to the 2024–2025 dataset. No assessment of deviation parameters or survey accuracy was possible for earlier drilling campaigns. 9.2.3 ASSAYS AUDIT OF ASSAYS Using digital data files downloaded directly from ALS, RESPEC audited tungsten, silver, copper, and zinc assay values from Guardian’s drilling programs in Guardian’s database. RESPEC used scanned original certificates from Rocky Mountain Geochemical, Skyline Labs, and Southwestern Assayers and Chemists provided by Guardian to verify historical drill-hole assays in the historical drill database. RESPEC identified minor discrepancies, primarily in historical silver, copper, or zinc assays where sample intervals were recorded as nil values in the database but reported as below detection limit on the original certificates. In addition, RESPEC discovered that the conversion factor from elemental tungsten to tungsten trioxide (WO₃) was inconsistently applied across the assay records. RESPEC resolved all discrepancies in consultation with Guardian personnel. During the audit of the historical tungsten assay dataset, RESPEC noted that the analytical method employed by UCC and Duval was colorimetry, as indicated on original certificates from laboratories active during the 1970s, including Skyline. Colorimetric analysis was a routine and widely accepted technique for tungsten determination during that period. Although no QA/QC data from the original campaigns are available, RESPEC chose to use select historical colorimetric data in the current resource model based on the corroborating evidence from comparative analyses (described below). ASSESSMENT OF HISTORICAL ASSAYS To assess the compatibility of the assay datasets generated by different operators, RESPEC constructed box plots and cumulative probability plots (“CPP”) for WO₃ values grouped by company. This method enabled visual comparison of distribution characteristics, including grade ranges, detection limits, and population continuity (Figure ). |
| RSI-3732 54 2 Figure 9-1. Box Plots of WO3 Data Sorted by Company. RESPEC evaluated the Guardian, Duval, and UCC WO₃ datasets to assess their compatibility and impact on resource estimation. As summarized in Table 9-3, Guardian and Duval report broadly similar grade distributions, with mean values near 0.12% WO₃ and medians around 0.02% WO3. Both datasets show high variability, strong skewness, and numerous outliers. This variability results from the broader sampling coverage that Guardian and Duval conducted to capture the full range of WO₃ grades across the deposit. In contrast, the UCC dataset reflects a higher-grade population with a mean of 0.31% WO3, a median of 0.27% WO3, and shows tighter clustering with fewer outliers. The UCC distribution appears less skewed and more stable, but the smaller sample size and higher detection limit reduce its direct comparability to Guardian and Duval. At the upper end of the distribution, Guardian reports slightly higher WO₃ values, which RESPEC attributes to the use of XRF analysis for overlimit assays during the 2024–2025 drilling program. Overall, Guardian and Duval provide a statistically compatible foundation for resource estimation, while UCC contributes valuable higher-grade context within its restricted population. Table 9-3: WO3 Population Statistics by Company Company Number of Samples Min Max Mean Median Co. of Variation Skewness Kurtosis Min Non-Outlier Max Non-Outlier Guardian 2,174 0.00063 3.04 0.121 0.021 2.05 5.18 40.86 0.0006 0.34 Duval 1,964 0.0003 2.84 0.115 0.021 1.89 4.05 27.93 0.0003 0.34 UCC 516 0.02 1.93 0.312 0.270 0.78 1.77 6.05 0.020 0.82 The population distributions for Duval, Guardian, and UCC show broadly similar grade profiles (Figure 9-2). Although the UCC dataset represents a smaller and more restricted population, its cumulative curve breaks at approximately 0.2% WO3 with a slope angle that closely matches those observed in the |
| RSI-3732 55 2 Duval and Guardian datasets. Between approximately 10% and 90% of the data, the slope and spacing of the curves remain consistent across all three operators, indicating comparable grade populations despite differences in dataset size and detection limits. At the upper end of the distribution, Guardian’s dataset extends to slightly higher WO₃ values, which RESPEC attributes to the use of XRF analyses for overlimit assays during the 2024-2025 drilling program. Figure 9-2. Cumulative Probability Plots of WO3 Assays by Company—Guardian in Blue, Duval in Green, and UCC in Red. To further assess the compatibility of the historical and modern assay datasets, RESPEC performed a comparison interpolation on a spatially constrained subset of the data. The analysis indicated that the historical-only dataset returned WO₃ grades approximately 17% higher than the Guardian-only dataset. The overall grade populations appear broadly similar, but the limited number of lower grade samples, particularly in the UCC dataset, combined with selective sampling of mineralized intervals and higher detection limits, likely placed greater emphasis on higher grades in the interpolation. Another contributing factor is the drilling orientation of the historical holes. The vertical historical holes intersected the subvertical deposit at low angle oblique intercepts, which likely exaggerated the apparent thickness of higher-grade zones. In contrast, Guardian designed its drilling program with angled holes to approximate true thickness and reduce geometric bias. RESPEC considers the observed difference to reflect sampling population effects and drilling geometry rather than a systematic analytical bias, although RESPEC cannot entirely rule out alternative explanations. CONFIRMATION SAMPLES RESPEC geologists collected field grab samples from outcropping mineralized zones within the Desert Scheelite and Gunmetal deposits. They obtained these samples to provide independent confirmation of mineralization style and tenor, recorded the sample locations using a handheld GPS, and made basic lithologic descriptions of the samples at the time of collection. The samples were submitted to ALS for multi-element analysis (Table 9-4). |
| RSI-3732 56 2 Table 9-4. Assay Results from Independent Confirmation Testing of Field Grab Samples Sample ID Location Description RESPEC GPS Sample Location W Ag Pb Zn Cu Mo Easting Northing Elevation (ppm) (ppm) (ppm) (ppm) (ppm) (ppm) DS-01 Desert Scheelite - Test pit Oxidized garnet skarn with abundant black, dark brown and orange FeOx; Cu stain up dip in possible E-W, 70° north-dipping structure 424,033 4,248,259 1,960 1,360 25.6 15.0 13,150 7,600.0 213.0 DS-02 Desert Scheelite - Test pit Oxidized garnet skarn - Mixed garnet-rich, weakly to moderately oxided skarn and strongly oxidized rock with dark brown to black FeOx; To south of DS-01 across quartz monzonite 'dike' 424,037 4,248,261 1,959 3,510 3.24 42.3 11,300 5,440.0 382.0 DS-03 Desert Scheelite - Trench Sample across 1m- to 2m-wide [possible] fault-breccia zone with abundant silicification, quartz and calcite veins and black FeOx stain; Within moderately to strongly oxidized skarn with high garnet content 423,920 4,248,246 1,986 760 1.8 47.8 654 57.5 36.6 DS-04 Gun Metal - In open cuts at east end of series of cuts and underground workings Grab sample from skarn cobbles and boulders in cut; Contains 80% to 90% garnet No GPS coordinates of location 2,780 3.33 4.6 1,170 26.0 27.1 DS-05 Gun Metal - In open cut in central portion of series of cuts and underground workings Skarn containing 80% to 90% garnet and abundant quartz veins 422,241 4,249,031 2,206 1,430 0.33 6.1 189 17.9 64.5 Note: Coordinates measured in UTM NAD 83 Zone 11 meters projection |
| RSI-3732 57 2 Independent analysis of the grab samples confirmed the existence of the tungsten and base metal mineralization that occurs at the Pilot Mountain project. Assay results were consistent with the observed lithologic associations, providing qualitative support for the geological interpretations and mineralization model. 9.3 LIMITATIONS The verification of the historical data was subject to several limitations. The lack of down-hole survey records for historical drill holes, prevented RESPEC from validating their orientation parameters or deviation profiles. In addition, incomplete or missing assay certificates from early campaigns, limited RESPEC’s ability to confirm original analytical results for some intervals. Where original documentation was unavailable, RESPEC necessarily relied on database entries. RESPEC documented these limitations and considered them in the assessment of the reliability of the historical data and in decisions regarding the use of that historical data in the estimate of mineral resources presented in Section 11.0. 9.4 ADEQUACY OF DATA In the authors’ opinions, the data reviewed and verified during the audit are adequate for use in mineral resource estimation and disclosure under S-K 1300. Limitations in the historical dataset, which include incomplete down-hole survey records and inconsistent assay documentation, were identified and addressed through comparative analysis. Confidence is lower in areas influenced predominantly by pre‑Guardian drilling, particularly where vertical holes intersect steeply dipping mineralized zones. These configurations may have introduced local bias toward wider zones of estimated higher grades. However, comparative analysis supports the overall inclusion of this historical data in the resource estimate, with the limitations noted. Guardian’s dataset generated during the 2024-2025 drilling program meets current industry standards and supports the reliability of the resource model. Guardian and RESPEC integrated the historical data with appropriate caution. While acknowledging that there is some risk associated with the estimated volume of higher-grade material, the resulting database is suitable for technical reporting, resource estimation, and regulatory compliance. Assays determined by colorimetric methods during the 1970s drilling campaigns are considered acceptable for inclusion in the mineral resource estimate. Although these methods are less precise than modern instrumental techniques, colorimetry was a recognized and widely used procedure for tungsten analysis at the time. Partial assay certificates recovered by Guardian provide traceability, and one of the original laboratories, Skyline Labs, was later accredited to ISO 9001 and ISO/IEC 17025 standards. Although no QA/QC data from the original campaigns are available, the corroborating evidence from comparative analyses justifies the use of select historical colorimetric data in the current resource model. |
| RSI-3732 58 2 10.0 MINERAL PROCESSING AND METALLURGICAL TESTING The following summary of metallurgical test work and recovery methods is based on a memorandum prepared by Samuel Engineering (“Samuel”) [Samuel, 2025], an external consultant retained by Guardian. RESPEC has reviewed the memorandum for relevance and consistency with the mineralization style observed at the Desert Scheelite deposit. RESPEC has summarized the information provided in Samuel’s report and, although the underlying test procedures and results were not independently verified, RESPEC has reviewed and accepted the material presented in this section of the Technical Report Summary. 10.1 ANALYTICAL PROCEDURES To characterize mineralogy, evaluate process response, and develop preliminary beneficiation flowsheets on material from the Desert Scheelite, Garnet, and Gunmetal deposits, metallurgical test work has been conducted in multiple laboratory campaigns. Amdel Laboratories (“Amdel”) in Perth, Australia completed testing under the supervision of Coffey Mining, the Guangdong Institute of Resources Comprehensive Utilization in Guangzhou, China (“the Guangdong Institute”), and the Guangzhou Research Institute of Non-ferrous Metals (“GZRINM”), Guangzhou, China. Collectively, the programs included mineralogical characterization, gravity separation, magnetic separation, and flotation testing. Amdel established a preliminary grind size for scheelite and performed gravity separation and rougher flotation testing. The Guangdong Institute performed quantitative mineralogy and developed two flotation flowsheets, one incorporating a sulfide pre-float and one without. Ancillary test work included magnetic separation for impurity control, head assays, tailings settling, and water quality evaluation for process design inputs. 10.2 MINERALIZATION Amdel prepared the composite samples used for metallurgical testing from material identified as representative of the Desert Scheelite, Garnet, and Gunmetal deposits. They assembled the composites to reflect the principal mineralization styles, with scheelite confirmed as the dominant tungsten mineral accompanied by minor sulfides. While the test work indicates metallurgical behavior consistent with the observed mineral assemblages in the Desert Scheelite deposit, detailed documentation of the composite selection, including spatial distribution, lithologic proportions, and grade variability, was not available for RESPEC to review. As such, RESPEC cannot fully confirm the representativeness of the metallurgical samples relative to the full range of mineralization within the Desert Scheelite deposit. RESPEC recommends that Guardian conduct additional metallurgical sampling across distinct mineralized domains to verify response variability and ensure that future test work captures the full range of process characteristics present in the deposit. 10.3 LABORATORIES 10.3.1 AMDEL LABORATORIES Amdel is part of Bureau Veritas Minerals, an internationally recognized analytical group operating under an ISO 9001 quality management system and accredited by the National Association of Testing Authorities (NATA) to ISO/IEC 17025 for selected analytical and assay methods. These certifications |
| RSI-3732 59 2 verify technical competence, quality control procedures, and the traceability of analytical results. Amdel acted as an independent commercial laboratory and reported directly to Coffey Mining. No relationship or affiliation existed between Amdel and Guardian Metals other than the provision of contracted laboratory services. 10.3.2 GUANGDONG INSTITUTE OF RESOURCES COMPREHENSIVE UTILIZATION The Guangdong Institute operates as a state-affiliated research and testing organization. Although formal accreditation records were not publicly verified, comparable institutes in China typically maintain China National Accreditation Service (“CNAS”) accreditation consistent with ISO/IEC 17025 requirements for mineral assay and materials testing. The Guangdong Institute performed flotation, gravity, and magnetic separation testing and provided head assay and concentrate analyses. RESPEC understands that the Guangdong Institute acted as an independent service provider to Thor, with no reported ownership or financial interest in the Pilot Mountain Tungsten Project. 10.3.3 GUANGZHOU RESEARCH INSTITUTE OF NON-FERROUS METALS GZRINM reviewed prior metallurgical test work and performed confirmatory assessments of gravity and flotation performance. GZRINM serves as a national-level research institute within China’s non-ferrous metals industry, offering analytical, metallurgical, and pilot-scale testing services. While specific accreditation details were not confirmed, institutes of this type generally operate under CNAS or equivalent quality management systems aligned with ISO/IEC 17025. GZRINM acted as an independent technical consultant and laboratory. The authors know of no conflicts of interest or related-party relationships between GZRINM and Guardian. 10.4 TESTING RESULTS AND RECOVERY ESTIMATES Amdel confirmed scheelite as the sole tungsten-bearing mineral and conducted liberation studies that established a target grind size of 106µm. Gravity separation using Wilfley tabling followed by Mozley cleaning achieved an upgrade ratio of approximately 27:1, recovering about 72.5% of contained tungsten to 1.7% of the feed mass. Subsequent rougher flotation tests, performed at grind sizes of P80 106µm and P80 45µm, including a conceptual circuit that recycled gravity middlings and tails, achieved up to 90.7% WO₃ recovery. However, concentrate grades were low due to calcium gangue carryover. The Guangdong Institute conducted rougher flotation at approximately 70% passing 75µm produced rougher concentrates grading 3.92% WO₃ at 76.1% recovery. Multi-stage heated cleaning yielded final scheelite concentrates grading 66.9 to 68.2% WO₃ at recoveries of 71 to 74%, with impurity levels meeting commercial specifications. GZRINM reviewed and corroborated the gravity plus flotation process concept and recommended reagent optimization, cleaner circuit configuration, and potential recovery of additional tungsten from magnetic products by spirals or tabling. |
| RSI-3732 60 2 10.5 CONCLUSIONS ON DATA ADEQUACY RESPEC offers no conclusions regarding the content in this section and presents the summary of work completed for informational purposes only. The conclusions below are paraphrased from Samuel [2025]. Samuel concluded that the metallurgical test work completed to date provides a reasonable preliminary understanding of the mineralogy and process response of the Desert Scheelite deposit. Scheelite was confirmed as the dominant tungsten mineral, and bench scale gravity and flotation tests supported by quantitative mineralogy demonstrated recoveries exceeding 70% WO₃ at commercially saleable concentrate grades. The mineralization is amenable to conventional gravity and flotation processes commonly applied to scheelite deposits and establish a preliminary basis for assuming reasonable metallurgical recoverability in the context of an initial estimate of mineral resources. Samuel also observed that the current metallurgical dataset remains limited in spatial coverage and does not fully document sample representativeness or variability across the mineralized domains of the deposit. Accordingly, the results were considered adequate only for use in preliminary metallurgical assumptions supporting an initial estimate of mineral resources, but insufficient for detailed process design or economic analysis. Samuel recommended additional variability testing, reagent optimization, and confirmatory work on domain specific composites to validate recovery factors and establish robust process parameters for future resource and reserve estimation stages. |
| RSI-3732 61 2 11.0 MINERAL RESOURCE ESTIMATES This estimate of mineral resources for the Pilot Mountain Tungsten Project was completed for disclosure in accordance and reporting requirements outlined in the United States Securities and Exchange Commission’s (“SEC”) Modernized Property Disclosure Requirements for Mining Registrants as described in Subpart 229.1300 of Regulation S-K, Disclosure by Registrants Engaged in Mining Operations (S-K 1300) and Item 601 (b)(96) Technical Report Summary. RESPEC completed the modeling and estimation of the mineral resources for the Desert Scheelite deposit on October 29, 2025. The effective date of the resource estimate is December 01, 2025, when pit optimizations were applied for resource reporting. RESPEC is independent of Guardian and its Pilot Mountain Tungsten Project by the definitions and criteria outlined in S-K 1300. There is no affiliation between RESPEC and Guardian or its Pilot Mountain Tungsten Project except that of independent consultant/client relationships. As of the date of this report, RESPEC is not aware of any unusual environmental, permitting, legal, title, taxation, socio-economic, marketing, or political factors that may materially affect the estimate of Desert Scheelite mineral resources. SEC definitions and requirements relevant to the disclosure of mineral resources are given below, with the SEC’s exact text in italics: Disclosure of mineral resources… must be based on and accurately reflect information and supporting documentation prepared by a qualified person. A mineral resource is a concentration or occurrence of material of economic interest in or on the Earth's crust in such form, grade or quality, and quantity that there are reasonable prospects for economic extraction. A mineral resource is a reasonable estimate of mineralization, taking into account relevant factors such as cut-off grade, likely mining dimensions, location or continuity, that, with the assumed and justifiable technical and economic conditions, is likely to, in whole or in part, become economically extractable. It is not merely an inventory of all mineralization drilled or sampled. When determining the existence of a mineral resource, a qualified person must: » Be able to estimate or interpret the location, quantity, grade or quality continuity, and other geological characteristics of the mineral resource from specific geological evidence and knowledge, including sampling; and » Conclude that there are reasonable prospects for economic extraction of the mineral resource based on his or her initial assessment. At a minimum, the initial assessment must include the qualified person's qualitative evaluation of relevant technical and economic factors likely to influence the prospect of economic extraction to establish the economic potential of the mining property or project. |
| RSI-3732 62 2 In addition: » The technical report summary submitted by the qualified person to support a determination of mineral resources must describe the procedures, findings and conclusions reached. » When determining mineral resources, a qualified person must subdivide mineral resources, in order of increasing geological confidence, into inferred, indicated, and measured mineral resources. An inferred mineral resource is that part of a mineral resource for which quantity and grade or quality are estimated on the basis of limited geological evidence and sampling. The level of geological uncertainty associated with an inferred mineral resource is too high to apply relevant technical and economic factors likely to influence the prospects of economic extraction in a manner useful for evaluation of economic viability. Because an inferred mineral resource has the lowest level of geological confidence of all mineral resources, which prevents the application of the modifying factors in a manner useful for evaluation of economic viability, an inferred mineral resource may not be considered when assessing the economic viability of a mining project, and may not be converted to a mineral reserve. For inferred mineral resources, a qualified person: (1) Must have a reasonable expectation that the majority of inferred mineral resources could be upgraded to indicated or measured mineral resources with continued exploration; and (2) Should be able to defend the basis of this expectation before his or her peers. An Indicated Mineral Resource is that part of a mineral resource for which quantity and grade or quality are estimated on the basis of adequate geological evidence and sampling. The level of geological certainty associated with an indicated mineral resource is sufficient to allow a qualified person to apply modifying factors in sufficient detail to support mine planning and evaluation of the economic viability of the deposit. Because an indicated mineral resource has a lower level of confidence than the level of confidence of a measured mineral resource, an indicated mineral resource may only be converted to a probable mineral reserve. A Measured Mineral Resource is that part of a mineral resource for which quantity and grade or quality are estimated on the basis of conclusive geological evidence and sampling. The level of geological certainty associated with a measured mineral resource is sufficient to allow a qualified person to apply modifying factors, as defined in this section, in sufficient detail to support detailed mine planning and final evaluation of the economic viability of the deposit. Because a measured mineral resource has a higher level of confidence than the level of confidence of either an indicated mineral resource or an inferred mineral resource, a measured mineral resource may be converted to a proven mineral reserve or to a probable mineral reserve. Modifying Factors are the factors that a qualified person must apply to indicated and measured mineral resources and then evaluate in order to establish the economic viability of mineral reserves. A qualified person must apply and evaluate modifying factors to convert measured and indicated mineral resources to proven and probable mineral reserves. These factors include, but are not restricted to: Mining; processing; metallurgical; infrastructure; economic; marketing; legal; environmental compliance; plans, negotiations, or agreements |
| RSI-3732 63 2 with local individuals or groups; and governmental factors. The number, type and specific characteristics of the modifying factors applied will necessarily be a function of and depend upon the mineral, mine, property, or project. RESPEC conducted work that included assessment of the recoverability of valuable minerals, evaluation of potential markets for recovered mineral forms, estimation of mining costs, development of a preliminary pit configuration, and analysis of milling and processing costs. These initial evaluations were completed to a level that demonstrates a “prospect of economic extraction.” While the work does not establish reserves or reach feasibility standards, it is sufficient to support the declaration of mineral resources. 11.1 DATABASE RESPEC staff audited the Pilot Mountain drilling database in 2025 and finalized the database used for mineral resource estimation on October 20, 2025. A plan map showing drill-hole collar locations and resource outline for the Desert Scheelite deposit is presented in Figure 7-1 in Section 7.3. The database has 7,730 assay records accepted as usable for estimation. RESPEC excluded a total of 292 assay records, all originating from nine drill holes, due to long composited samples and selectively sampled intervals that did not align with Guardian’s drill assays. RESPEC removed these records from the resource database to ensure that only reliable data contributed to the resource estimation. Of the accepted records, 3,814 have elemental tungsten assays, 5,921 have WO3 assays, 5,342 (69% of intervals with W and/or WO3 assays) have silver assays, 6,814 (88%) have copper assays, and 5,098 (65%) have zinc assays. Table 11-1 presents descriptive statistics of all data in the audited database that was imported into MS Torque for modeling and resource estimation in MinePlan. The database also contains logged lithology, alteration, and oxidation. RESPEC used all acceptable drilling data in the estimate, but RESPEC only audited the collar locations, down-hole surveys, and the tungsten, silver, copper, and zinc analyses. |
| RSI-3732 64 2 Table 11-1. Desert Scheelite Resource Database Descriptive Statistics—For All Accepted Sample Data Only Field Valid Minimum Maximum Mean Median Std. Devn. Co. of Variation Unit From 7,730 0 371.90 m To 7,730 0.5 374.90 m Length 7,730 0.04 187.6 2.952 1.8 m W 3,814 0 2.3 0.09 0.021 0.148 1.656 % WO3 5,921 0 3.04 0.132 0.029 0.229 1.731 % Ag 5,342 0.034 1,749.65 8.742 1.028 41.241 4.718 ppm Cu 6,814 0 5.02 0.058 0.012 0.209 3.613 % Zn 5,098 0 25.25 0.209 0.027 0.805 3.855 % 11.2 GEOLOGIC MODEL Guardian provided RESPEC with a comprehensive geologic model built from Guardian’s and historical geological logging data. The model includes geologic solids constructed in Leapfrog Geo that were applied to code the block model. In the same manner, an oxidation model was developed from Guardian’s and historical logging data, with oxidation surfaces generated in Leapfrog Geo and used to code the block model. The geologic basis for the model is described in Section 6.0, and representative schematic cross-sections are presented in Figure 11-1. 11.3 MINERAL DOMAINS Using the geologic model as a control, RESPEC interpreted domains of tungsten, silver, copper, and zinc based on sample assays. RESPEC defined the domains according to population breaks on CPPs of each metal separately. The summary of high- and low-grade domain grade ranges determined for each metal is provided in Table 11-2. Table 11-2. Grade Ranges of Tungsten, Silver, Copper, and Zinc Domains Determined from CPPs Domain % WO3 ppm Ag % Cu % Zn Low-grade 0.02 - 0.2 2.0 - 15.0 0.02 - 0.6 0.01 - 1.8 High-grade > 0.2 > 15.0 > 0.6 > 1.8 Higher grade tungsten mineralization within the Desert Scheelite deposit is concentrated in three principal zones. The hanging wall zone occurs within skarn adjacent to the hornfels contact. A mid‑deposit zone is hosted within skarn and marble. The footwall zone is hosted within skarn and marble near the quartz monzonite intrusion. These elevated grades show a strong correlation with skarn alteration developed in marble host rocks, while hornfelsed clastic sedimentary units display weaker associations with tungsten mineralization. The quartz monzonite intrusive does not exhibit endoskarn development and is not mineralized. |
| RSI-3732 65 2 RESPEC constructed the grade domains in Leapfrog Geo using interval selection, which enabled the low‑grade and high‑grade domains to snap to the appropriate drill intercepts. To capture stratigraphic controls on mineralization and to model the domains consistently, RESPEC performed the interval selection along 25m‑spaced, north–south‑oriented cross‑sections. Tungsten mineralization was modeled first. The resulting single set of grade domains provided the basis for defining the corresponding low‑grade silver, copper, and zinc domains. Using the same interval‑selection methodology described above, RESPEC constructed high‑grade domains for tungsten, silver, copper, and zinc. Although RESPEC identified and modeled distinct grade populations, RESPEC applied no separate high‑grade domains in the final resource estimation. To ensure appropriate control of grade estimation within the resource model, RESPEC managed grade continuity according to variogram analyses and the influence of the high‑grade sample population by the application of appropriate estimation parameters, including strong high-grade search restrictions. An example of the geology and the tungsten mineral domain within the Desert Scheelite deposit is illustrated in Figure 11-1. |
| RSI-3732 66 2 Figure 11-1. North-South Cross-Section 424305E Showing Tungsten Mineral Domains and Geology. |
| RSI-3732 67 2 11.4 SPECIFIC GRAVITY Black Fire and Guardian collected a total of 892 specific gravity measurements on drill-core samples using the water‑immersion method. RESPEC does not know whether Black Fire’s samples were wax coated during testing. Guardian’s samples were coated with wax. RESPEC evaluated the density dataset both collectively and by logged rock type. Review of measured densities by oxidation type established that oxidation effects on density were minimal. To reduce the influence of outliers and better represent the central tendency of the dataset, RESPEC assigned the median values to the lithologic units in the block model rather than assigning the arithmetic means. The density statistics associated with the different lithologies and their assigned density values are summarized in Table 11-3. Table 11-3. Density Statistics and Values Applied to the Different Lithologies in the Block Model Lithology Valid Mean Median Std. Dev. CV Minimum Maximum Density Assigned in Model Units Marble 169 2.556 2.680 0.576 0.225 0.000 3.350 2.68 g/cm3 Skarn 318 2.864 2.940 0.345 0.121 1.717 3.717 2.94 g/cm3 Hornfels 163 2.635 2.660 0.531 0.198 0.000 3.569 2.66 g/cm3 Quartz Monzonite 134 2.579 2.596 0.108 0.042 2.070 2.714 2.59 g/cm3 Clastic Sedimentary/Tertiary Volcanics 108 2.198 2.166 0.183 0.083 1.889 2.736 2.16 g/cm3 Alluvium 0 1.8 g/cm3 11.5 ASSAY CODING, CAPPING, AND COMPOSITING After defining and modeling the mineral domains, RESPEC used the resulting solids to code assay samples and evaluated assay caps for each metal by inspection of CPPs and quantile plots of the coded assays to identify potential high‑grade outliers. RESPEC determined capping thresholds for tungsten, silver, copper, and zinc, and for assays located outside the modeled mineral domains. Subsequently, RESPEC visually examined outlier grades in 3D to evaluate their materiality, local grade context, proximity to neighboring samples, and spatial position within the deposit. The final capping levels are summarized in Table 11-4. Table 11-4. Capping Levels for Tungsten, Silver, Copper, and Zinc by Domain Domain % WO3 ppm Ag % Cu % Zn Inside – 355 0.95 5.0 Outside 0.17 5.5 0.15 0.15 With capping completed, RESPEC composited the drill holes to 3m intervals that honored the domain boundaries. RESPEC chose three meters because the majority of samples are 1.5m long. The descriptive statistics of the composite database for tungsten, silver, copper, and zinc are summarized in Table 11-5 through Table 11-8. |
| RSI-3732 68 2 Table 11-5. Tungsten Composite Descriptive Statistics Inside Mineralized Domain Field Valid Minimum Maximum Mean Median Std. Devn. Co. of Variation Unit Length 2,052 0.4 4.45 3.004 3.00 0.249 0.083 m WO3 2,021 0.001 2.64 0.207 0.145 0.227 1.097 % WO3_Cap 2,021 0.001 2.64 0.207 0.145 0.227 1.097 % LITHC 2,044 2 7 Outside Mineralized Domain Field Valid Minimum Maximum Mean Median Std. Devn. Co. of Variation Unit Length 5,566 0.6 4.41 2.993 3.00 0.206 0.069 m WO3 2,155 0 0.694 0.014 0.003 0.047 3.36 % WO3_Cap 2,155 0 0.17 0.011 0.003 0.024 2.141 % LITHC 5,555 1 7 Table 11-6. Silver Composite Descriptive Statistics Inside Mineralized Domain Field Valid Minimum Maximum Mean Median Std. Devn. Co. of Variation Unit Length 2,074 0.4 4.45 2.972 3.00 0.424 0.143 m Ag 1,831 0.25 763.473 14.286 3.567 41.262 2.888 ppm Ag_Cap 1,831 0.25 355 13.483 3.567 33.863 2.512 ppm LITHC 2,065 2 7 Outside Mineralized Domain Field Valid Minimum Maximum Mean Median Std. Devn. Co. of Variation Unit Length 5,566 0.6 4.41 2.993 3.00 0.206 0.069 m Ag 2,065 0.034 100.155 1.443 0.5 4.918 3.408 ppm Ag_Cap 2,065 0.034 5.5 0.986 0.5 1.092 1.107 ppm LITHC 5,555 1 7 |
| RSI-3732 69 2 Table 11-7. Copper Composite Descriptive Statistics Inside Mineralized Domain Field Valid Minimum Maximum Mean Median Std. Devn. Co. of Variation Unit Length 2,052 0.4 4.45 3.004 3.00 0.249 0.083 m Cu 1,883 0 2.867 0.101 0.026 0.238 2.364 % Cu_Cap 1,883 0 0.95 0.087 0.026 0.164 1.877 % LITHC 2,044 2 7 Outside Mineralized Domain Field Valid Minimum Maximum Mean Median Std. Devn. Co. of Variation Unit Length 5,566 0.6 4.41 2.993 3.00 0.206 0.069 m % Cu 3,127 0 1.383 0.017 0.009 0.044 2.671 % Cu_Cap 3,127 0 0.15 0.015 0.009 0.019 1.314 % LITHC 5,555 1 7 Table 11-8. Zinc Composite Descriptive Statistics Inside Mineralized Domain Field Valid Minimum Maximum Mean Median Std. Devn. Co. of Variation Unit Length 2,052 0.4 4.45 3.004 3.00 0.249 0.083 m Zn 1,666 0.001 17.9 0.369 0.09 0.949 2.573 % Zn_Cap 1,666 0.001 5.0 0.34 0.09 0.679 1.999 % LITHC 2,052 2 7 Outside Mineralized Domain Field Valid Minimum Maximum Mean Median Std. Devn. Co. of Variation Unit Length 5,566 0.6 4.41 2.993 3.00 0.206 0.069 m Zn 2,052 0 4.9 0.022 0.007 0.125 5.619 % Zn_Cap 2,052 0 0.2 0.016 0.007 0.024 1.477 % LITHC 5,555 1 7 11.6 VARIOGRAPHY RESPEC conducted a variography study to evaluate grade continuity within the Desert Scheelite deposit. To assess spatial correlation and directional continuity of grades across the modeled domains, RESPEC generated traditional and pair‑wise variograms for tungsten, silver, copper, and zinc. The results informed the selection of estimation parameters for search ranges and anisotropy, ensuring that the resource model appropriately reflects the grade continuity and geological controls on mineralization. Table 11-9 summarizes the variography study by metal domain. |
| RSI-3732 70 2 Table 11-9. Variography by Metal Domain Domain Direction Nugget First Sill Range (m) Second Sill Range (m) WO3 major 0.3 0.52 38 0.18 100 semimajor 17 40 minor 18 25 Ag major 0.25 0.5 10 0.25 40 semimajor 6.5 20 minor 7.5 14 Cu major 0.3 0.35 21 0.35 45 semimajor 14.5 35 minor 7.5 17 Zn major 0.2 0.65 24.5 0.15 70 semimajor 11 40 minor 12 34 11.7 BLOCK MODEL CODING RESPEC created a three-dimensional block model comprised of 5m x 2.5m x 5m blocks (model x, y, z). The block model is not rotated with a bearing of 0°. RESPEC chose the block size in consideration of the open pit mining scenario that would be the likely mining method for the Desert Scheelite deposit and used mineral domain solids to code partial volume percentages of the low-grade tungsten domains into blocks in the respective tungsten, silver, copper, and zinc models. The block models were also coded using the digital topographic surface and geology and oxidiation solids. RESPEC assigned the bulk density values to each block in the model based on lithology codes given in Table 11-3. (The bulk density values are discussed in Section 11.4.) The Desert Scheelite deposit is controlled sub‑vertically by lithologic contacts. The orientation of mineralization conforms to the irregular contact of the quartz monzonite intrusion. To properly represent this changing orientation, RESPEC applied MinePlan’s Dynamic Unfolding tool, which transforms sample coordinates into an unfolded reference frame aligned with the local geological controls. Once variograms and estimation parameters are established in the unfolded space, the results are transformed back into the original geometry to ensure that the resource model appropriately reflects the sub‑vertical controls and the curvilinear orientation of mineralization around the intrusion. As a result, a single search ellipse orientation was applied to each metal in the estimation, with local anisotropy accounted for through the unfolding process. The search ellipse orientations are summarized in Table 11-10. |
| RSI-3732 71 2 Table 11-10. Search Ellipse Orientations Domain Azimuth Dip Plunge WO3 256 -70 10 Ag 256 -77 10 Cu 256 -70 10 Zn 256 -80 10 11.8 GRADE INTERPOLATION RESPEC completed three estimation methods—ordinary kriging (“OK”), inverse distance squared (“ID2 ”), and nearest neighbor (“NN”)—and selected the kriged estimate as the reported mineral resource estimate. RESPEC used the ID2 and NN estimates as a check on the kriged interpolation. RESPEC performed estimation runs for each metal independently, using only the composites coded to a given low-grade domain or outside modeled domains to estimate grades into respective blocks. For each metal, RESPEC ran two successive passes: an initial long pass projecting 260m along the primary axes to populate all blocks, followed by a shorter pass. To limit excessive projection of unmodeled higher-grade mineralization, as determined on CPPs for each domain, RESPEC applied strong search range restrictions to the higher‑grade samples. These range restrictions were applied in the long pass for WO₃ and in all passes for silver, copper, and zinc. Strong anisotropic weighting was also applied to confine the estimation of various grade populations within the low-grade domains to narrow zones. The estimation parameters applied to tungsten, silver, copper, and zinc are summarized in Table 11-11. |
| RSI-3732 72 2 Table 11-11. Desert Scheelite Estimation Parameters (Page 1 of 2) Desert Scheelite Description Parameter Long Pass Short Pass WO3 Domain Samples: minimum | maximum | maximum per hole 1 | 9 | 3 1 | 9 | 3 Search anisotropies (m): major | semimajor | minor (vertical) 1 | 0.3 | 0.1 1 | 0.4 | 0.2 Maximum search distance (m) 260 100 High-grade restrictions (grade in % WO3, distance in m) 0.5 | 100 - Outside WO3 Domain Samples: minimum | maximum | maximum per hole 1 | 9 | 3 - Search anisotropies (m): major | semimajor | minor (vertical) 1 | 1 | 0.4 - Maximum search distance (m) 65 - High-grade restrictions (grade in % WO3, distance in m) 0.02 | 10 - Ag Domain Samples: minimum | maximum | maximum per hole 1 | 9 | 3 1 | 9 | 3 Search anisotropies (m): major | semimajor | minor (vertical) 1 | 0.3 | 0.07 1 | 0.5 | 0.5 Maximum search distance (m) 260 40 High-grade restrictions (grade in ppm Ag, distance in m) 15 | 40 15 | 40 Outside Ag Domain Samples: minimum | maximum | maximum per hole 1 | 9 | 3 - Search anisotropies (m): major | semimajor | minor (vertical) 1 | 1 | 0.4 - Maximum search distance (m) 65 - High-grade restrictions (grade in ppm Ag, distance in m) 5.5 | 10 - Cu Domain Samples: minimum/maximum/maximum per hole 1 | 9 | 3 1 | 9 | 3 Search anisotropies (m): major/semimajor/minor (vertical) 1 | 0.3 | 0.07 1 | 0.8 | 0.4 Maximum search distance (m) 260 45 High-grade restrictions (grade in % Cu, distance in m) 0.15 | 45 0.15 | 45 Outside Cu Domain Samples: minimum/maximum/maximum per hole 1 | 9 | 3 - Search anisotropies (m): major/semimajor/minor (vertical) 1 | 1 | 0.4 - Maximum search distance (m) 65 - High-grade restrictions (grade in % Cu, distance in m) 0.1 | 10 - |
| RSI-3732 73 2 Table 11-11. Desert Scheelite Estimation Parameters (Page 2 of 2) Desert Scheelite Description Parameter Long Pass Short Pass Zn Domain Samples: minimum/maximum/maximum per hole 1 | 9 | 3 1 | 9 | 3 Search anisotropies (m): major/semimajor/minor (vertical) 1 | 0.3 | 0.14 1 | 0.5 | 0.4 Maximum search distance (m) 260 80 High-grade restrictions (grade in % Zn, distance in m) 0.5 | 80 0.5 | 80 Outside Zn Domain Samples: minimum/maximum/maximum per hole 1 | 9 | 3 - Search anisotropies (m): major/semimajor/minor (vertical) 1 | 1 | 0.4 - Maximum search distance (m) 65 - High-grade restrictions (grade in % Zn, distance in m) 0.1 | 10 - 11.9 CLASSIFICATION RESPEC has classified the Desert Scheelite mineral resources as indicated and inferred based primarily on drilling density and proximity to Guardian’s drilling. Other factors, such as the verification status of the drill-hole database and geologic understanding of the deposit and mineralization were considered. To incorporate these parameters, RESPEC constructed a solid around areas of denser drilling in which the majority of Guardian’s drilling is located. Regions with lower drill density, and those more reliant on historical data, were classified as inferred. This approach ensures that the reported resource reflects the greater confidence in the Guardian drill-hole dataset and the lesser confidence in areas predominantly defined by historical sampling. Uncertainties in the resource estimate primarily relate to the quality and reliability of historical data. These include the analytical methodologies employed by historical operators, which may not meet current industry standards, and the selective sampling evident in certain historical drill holes, which introduces potential bias in grade representation. The adequacy of drill-hole spacing, particularly along the down‑dip extent of the deposit where data density is lower, is considered in resource classification. While the modern drilling completed by Guardian provides a verified dataset that supports indicated classification in areas of higher density drilling, regions more reliant on historical information have been classified as inferred to reflect reduced confidence. Although the historical data cannot be fully verified, RESPEC made efforts to assess its reliability and alignment with Guardian’s drilling. RESPEC reviewed grade population statistics and completed a comparative test interpolation using historical‑only data versus Guardian‑only data. As discussed in Section 9.2.3.2, the analysis indicated that the historical-only dataset returned WO₃ grades approximately 17% higher than the Guardian-only dataset, possibly due to excessive estimated volume of higher grades resulting from the predominance of vertical drilling of steeply-dipping mineralization. |
| RSI-3732 74 2 Although the difference is relatively high, the comparison demonstrated that the historical dataset is broadly consistent with Guardian’s results, supporting use of the historical data. To reflect the reduced confidence associated with historical analytical methodologies, selective sampling, and the possible excessive volume of higher estimated grades, RESPEC has classified resources informed primarily by historical holes (i.e. outside the indicated solid that delineates the bulk of Guardian drilling) as inferred. RESPEC acknowledges there is some risk associated with potential overstated volume of estimated higher-grade material proximal to historical drill holes within the indicated classification solid. 11.10 MINERAL RESOURCES RESPEC estimated the Desert Scheelite mineral resources to reflect potential open-pit extraction and processing by standard milling techniques. To meet the requirement of the resources having reasonable prospects for eventual economic extraction, a series of pits were optimized assuming open pit mining and processing costs typical for mining in Nevada (Table 11-12). RESPEC and Guardian relied on the five-year average ammonium para-tungstate price forecast published by Argus. In selecting the price assumption used for pit optimization, Guardian applied a discount to that independent forecast. Guardian determined that the five-year forward forecast was more representative of current and expected market conditions than historical pricing and applied the discount to reflect market volatility and the uncertainty inherent in forward-looking price projections. The resulting price assumption represents approximately 50% of the February 2026 spot price and was selected by Guardian to provide a conservative basis for the analysis. RESPEC reviewed and accepted the pricing forecast and payability for concentrate, which is based on the payability assessment included in the Argus forecast, for reliance. Table 11-12. Pit Optimization Parameters Item Value Unit Mining cost 2.75 $/tonne Mill processing cost 15.64 $/tonne processed Process rate 4,000 Tonnes-per-day processed General and Administrative cost 3.00 $/tonne processed WO3 price $65,500 $/tonne Ag price $1.22 $/gram Zn price $2,700 $/tonne WO3 recovery 80 Percent Ag recovery 60 Percent Cu recovery 70 Percent Zn recovery 60 Percent WO3 payability 83 Percent Ag payability 75 Percent Cu payability 0 Percent Zn payability 0 Percent |
| RSI-3732 75 2 Table 11-13 presents the estimates of indicated and inferred mineral resources for the Desert Scheelite deposit. Of the total resources, 86% by contained tonnes WO₃ and 83% by total tonnes mined and processed are classified as indicated. Inferred resources may be upgraded to the indicated category with improved geological understanding and confirmation of the low-grade WO₃ domain model supported by additional drilling and assaying, and refinement of domains for all metals. These mineral resources are not mineral reserves and do not have demonstrated economic viability. The estimates are reported on diluted blocks measuring 5m by 2.5m by 5m. A representative cross section of the tungsten block model is shown in Figure 11-2. Table 11-13. Desert Scheelite Mineral Resources Cut-off Average Grade Contained Metal Classification % WO3 Tonnes % WO3 g Ag/t % Cu % Zn t WO3 oz Ag t Cu t Zn Indicated 0.06 8,694,000 0.206 12.43 0.085 0.315 17,900 3,475,000 7,400 27,400 Inferred 0.06 1,784,000 0.169 12.00 0.063 0.225 3,000 689,000 1,100 4,000 Notes: 1. The effective date of Desert Scheelite mineral resources is December 1, 2025. 2. The estimate of mineral resources was done by RESPEC in metric tonnes. 3. The point of reference is in situ mineralization prior to extraction by open pit mining methods. 4. The average grades of the tabulations are comprised of the weighted average of block-diluted grades within an optimized pit. 5. The Desert Scheelite mineral resource cut‑off grade of 0.06% WO₃ was selected by the authors. Operating assumptions were applied to establish a theoretical pit limit, including a WO₃ price of $65,500/t, an average recovery of 80% WO₃, a processing rate of 4,000 tonnes/day, $2.75/t mining cost for open pit, $15.64/t processing cost, $3.00/t processed for G&A, and an 83% payability. Blocks outside the pit limit are considered not economic at this time. 6. The accessory metals Ag, Cu, and Zn shown in Table 11-13 are the quantities contained within the mineral resources usinsg the cut-off grade established for the primary commodity(WO3). No independent cut-off grade has been applied to these accessory metals. Reported quantities of accessory metals are therefore considered by-products of the primary metal resource and their value is contingent upon the ability to economically extract the by-products along with the primary commodity. 7. The estimate of mineral resources may be materially affected by geology, environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues. 8. Rounding as required by reporting guidelines may result in apparent discrepancies between tonnes, grade, and contained metal content. 9. Mineral resources are not mineral reserves and do not have demonstrated economic viability. An inferred mineral resource has a lower level of confidence than an indicated mineral resource and must not be converted to a mineral reserve. RESPEC reasonably expectsthat continued exploration and delineation will upgrade the majority of inferred mineral resources to indicated mineral resources. |
| RSI-3732 76 2 Figure 11-2. North-South Cross-Section 424305E Showing WO3 Grades in the Block Model. |
| RSI-3732 77 2 11.11 MODEL VALIDATION RESPEC systematically compared bench composite grades for WO₃, silver, copper, and zinc against coincident block estimated grades across the Desert Scheelite deposit. The results of this comparison are presented in Figure 11-3 for WO₃ only. The evaluation confirmed that block grades reproduce the distributional characteristics of the composited assay data at bench scale, with no evidence of material bias and revealed minor smoothing effects consistent with the applied interpolation methodologies. The smoothing of estimated block grades is within acceptable limits. The block model was also reviewed visually by comparing estimated block grades against the interpreted geology and the corresponding drill-hole assays, which confirmed that the block grades honor the geological framework and assay data at the deposit scale. This validation demonstrates that the models for all reported metals are reasonable and reliable, thereby meeting the requirements for disclosure under S‑K 1300 standards. . Figure 11-3. WO3 Bench Composite Grades versus Coincident Block Grades Interpolated by OK, ID2 , and NN. 11.12 DISCUSSION OF RESOURCES The Desert Scheelite mineral resources are associated with a base‑metal enriched tungsten skarn developed within lower Luning Formation carbonates and interbedded biotite hornfels. The skarn zone extends for approximately 600m along the contact of the Desert Scheelite quartz monzonite stock and persists for at least 300m down‑dip. Mineralization is characterized by abundant scheelite accompanied by pyrite and base-metal sulfides, principally chalcopyrite and sphalerite. Mineralization is |
| RSI-3732 78 2 oriented sub-vertically and includes three higher-grade tungsten zones within skarn or marble hosts, which may reflect favorable structural and lithological controls. A significant outcome of Guardian’s work has been an improved understanding of the orientation and continuity of mineralization, leading to the development of a new geologic model. RESPEC’s tungsten domain modeling and resource estimation were based on this geologic model, which also provides a framework to guide future drilling at the Desert Scheelite deposit. The Desert Scheelite mineral resources have been estimated assuming potential open-pit extraction and processing by standard milling and flotation techniques. RESPEC optimized a series of pits at variable WO₃ prices using fixed mining and processing costs reflective of Nevada operations to evaluate near-surface mineralization that, under assumed and justifiable technical and economic conditions, is likely to be, in whole or in part, economically extractable. The mineral resources are reported at a cut-off grade of 0.06% WO3 within the optimized pit. Silver, copper, and zinc quantities within the mineral resources established using the WO3 cut-off grade are also reported, but their value is dependent on the ability to economically extract the by-products. No independent cut-off grades were applied to silver, copper, or zinc, and these metals were not incorporated into a tungsten-equivalent grade. Those metals are considered by-products contingent upon economic extraction of WO3. A majority (83%) of the Desert Scheelite mineral resources have been classified as indicated, reflecting the drilling density achieved by Guardian, the supporting QA/QC data, and the improved geological understanding of the deposit. More than 97% of the indicated blocks incorporate the maximum number of composites used in grade estimation. Offsetting these positive attributes, uncertainties in the resource estimate relate primarily to the quality and reliability of historical data. These include analytical methodologies employed by historical operators that may not align with current industry standards and selective sampling in certain historical drill holes that could introduce bias in grade representation. Drill‑hole spacing, particularly along the down‑dip extent of the deposit where data density is lower, results in those areas remaining classified as inferred. Other limitations in the historical dataset include incomplete down‑hole survey records and inconsistent assay documentation. RESPEC audits confirmed that the Guardian, Duval, and UCC datasets exhibit broadly consistent and comparable grade distributions, supporting comparability of grade populations despite differences in dataset size, detection limits, and selective sampling. Interpolation tests indicated that historical datasets returned WO₃ grades approximately 17% higher than Guardian’s, a difference attributed to sampling population effects and drilling geometry rather than systematic analytical bias. Confidence in pre‑Guardian data is therefore lower, and the apparent thickness of higher‑grade intervals may be exaggerated in areas influenced predominantly by historical data. Guardian’s angled drilling in 2024- 2025 reduced this geometric bias and provides a reliable foundation for the resource model. RESPEC acknowledges that some risk remains, which may be mitigated through additional infill drilling, twin‑hole grade comparisons, and petrological studies to better define the spatial association of high‑grade zones. |
| RSI-3732 79 2 Multiple grade populations were observed on the CPP of each metal. Although second, higher-grade populations were apparent on the charts and in drill assays during modeling, the geological characteristics of the higher grades were not understood and were therefore not used in the model. The higher-grade assay population was controlled by applying strong search restrictions to the estimate, however, there is a risk that some of the grade is smeared within the low-grade domain. The model is considered to provide a reasonable representation of the overall quantity of contained metal. Local variations in grade distribution, however, may be less reliably captured and remain subject to uncertainty. |
| RSI-3732 80 2 12.0 MINERAL RESERVE ESTIMATES No Mineral Reserves are reported in this technical report. |
| RSI-3732 81 2 13.0 MINING METHODS For the purposes of determining a reasonable probability of economic extraction for the resources and open pit mining method was assumed and preliminary pits were assessed. |
| RSI-3732 82 2 14.0PROCESSING AND RECOVERY METHODS For the purposes of determining a reasonable probability of economic extraction for the resources a grinding and mineral floatation recovery method was assumed. |
| RSI-3732 83 2 15.0INFRASTRUCTURE The property connects to grid power, but the timing of electrical delivery from NV Energy remains uncertain. The project may need to evaluate and cost on‑site power generation to support the initial years of operations. Guardian must secure water rights for volumes to be defined in the pre‑feasibility study. Guardian has sourced sufficient water for drilling and engineering test work from an existing historical borehole on site. Road access requires improvements to support potential construction activities. |
| RSI-3732 84 2 16.0 MARKET STUDIES No market studies and contracts are reported in this technical report. |
| RSI-3732 85 2 17.0ENVIRONMENTAL STUDIES, PERMITTING, AND PLANS, NEGOTIATIONS, OR AGREEMENTS WITH LOCAL INDIVIDUALS OR GROUPS This summary is based on information provided by Guardian, including their compilation of baseline studies completed by WestLand Engineering & Environmental Services (“WestLand”) and Guardian’s own work. RESPEC has prepared this summary for reporting purposes but has not independently verified the underlying data or conclusions. The WestLand surveys referenced herein are listed in Section 24.0. 17.1 EXPLORATION PERMITTING REQUIREMENTS Exploration activities on public and private lands in Nevada fall under the jurisdiction of the NDEP Bureau of Mining Regulation and Reclamation (“BMRR”), and either the BLM or the U.S. Forest Service (“USFS”) for public lands. For exploration projects disturbing less than five acres on public land, the BLM or USFS requires a NOI and a reclamation bond. Projects proposing more than five acres of disturbance must submit a PoO and EA to the land management agency, along with a reclamation permit application to NDEP–BMRR. Nevada Revised Statutes (NRS 519A.010–519A.290) and Nevada Administrative Code (NAC 519A.120– 519A.345) establish the regulatory authority for reclamation permitting. Additional provisions governing surety, fluid management trust funds, and enforcement appear in NRS 519A.350–519A.392. 17.2 PERMITTING STATUS Guardian submitted a revised PoO on June 3, 2025, addressing comments from both the BLM and NDEP. Guardian also submitted a revised Reclamation Plan to NDEP–BMRR. Guardian has completed the following permitting steps: / Guardian completed baseline environmental studies, and the BLM accepted them. / Guardian submitted the Exploration PoO and the NDEP Reclamation Permit Application to both agencies, and they accepted the submission as complete. The permit will be issued following NEPA approval of the PoO. / Guardian submitted a draft EA to the BLM on November 19, 2025. The draft included completed forms requesting authorization for exploration drilling under the expedited procedures outlined in the Department of Interior’s Alternative Arrangements for Compliance with the National Environmental Policy Act Amid the National Energy Emergency (April 23, 2025) for critical minerals. 17.3 BIOLOGICAL RESOURCES AND HABITAT SURVEYS WestLand conducted biological baseline studies in 2024 and 2025 across the project area and required buffer zones. In the 2024 Baseline Biological Survey Report, WestLand documented vegetation and |
| RSI-3732 86 2 wildlife habitat mapping, noxious weed and invasive species surveys, BLM Special Status Species surveys, greater sage-grouse and burrowing owl presence/absence surveys, migratory bird and raptor surveys, acoustic bat surveys, and golden eagle habitat analysis and surveys. WestLand completed 16 field surveys during the 2024–2025 baseline period. The surveys did not identify leks or golden eagle nests within the project boundary, although they observed four golden eagle nests within the two‑mile buffer zone. Guardian commissioned WestLand to produce two addendums to the 2024 biological report: the 2025 Cold Season Internal Bat Survey Addendum and the 2025 Burrowing Owl Survey Addendum. Guardian also commissioned WestLand to complete the 2025 Golden Eagle Occupancy and Reproduction Assessment to supplement baseline data. 17.4 CONCLUSIONS RESPEC offers no conclusions regarding the content in this section and presents the summary of work completed for informational purposes only. The conclusions below are paraphrased from Guardian. The USFS reviewed the survey area using Endangered Species Act (“ESA”) mapping tools and identified no critical habitats or migratory birds of concern within the intersecting USGS 7.5‑minute quadrangles. On‑site biological surveys conducted by WestLand confirmed the absence of federally listed threatened or endangered species within the project area. |
| RSI-3732 87 2 18.0CAPITAL AND OPERATING COSTS No capital or operating costs are reported in this technical report. |
| RSI-3732 88 2 19.0ECONOMIC ANALYSIS No economic analysis is reported in this technical report. |
| RSI-3732 89 2 20.0 ADJACENT PROPERTIES There are no operating mines or near-production properties within 20 miles of the Pilot Mountain Project. There are active exploration properties near Tonopah and Hawthorne. |
| RSI-3732 90 2 21.0OTHER RELEVANT DATA AND INFORMATION There are no other relevant disclosures. |
| RSI-3732 91 2 22.0INTERPRETATION AND CONCLUSIONS 22.1 ADEQUACY OF THE DATA USED IN ESTIMATING THE PROJECT MINERAL RESOURCES RESPEC’s audit confirmed that overall, the available data are adequate for mineral resource estimation and disclosure under S-K 1300. Historical records have inconsistencies in assay documentation or missing down-hole survey documentation, which were addressed through comparative analysis. Confidence in pre-Guardian drilling remains lower, but Guardian’s 2024–2025 drilling program provides a reliable foundation for the resource model. RESPEC integrated the historical information with appropriate caution, and while some risk persists in the estimated volume of higher-grade material, the database is considered suitable for technical reporting, resource estimation, and regulatory compliance. Guardian conducted their 2024–2025 drilling programs to current industry standards. RESPEC judged Guardian’s core handling, sampling, and chain‑of‑custody procedures adequate to produce reliable samples for assay. ALS performed sample preparation and analysis using appropriate multi‑element and ore‑grade methods, and re‑assayed overlimit values. Guardian’s QA/QC program incorporated certified reference materials, blanks, and duplicates at appropriate frequencies. Statistical evaluation confirmed acceptable precision and minimal bias for tungsten, copper, and zinc. Evaluation of the silver assays showed slightly elevated variability at low concentrations but revealed no systematic errors. Overall, Guardian’s QA/QC results are adequate for resource estimation, although their follow‑up on isolated CRM and blank failures is not documented. Data collected by Black Fire and Thor between 2011 and 2017 were prepared and analyzed by ISO‑accredited laboratories, with documented procedures providing some confidence in quality. Drilling completed in the 1970s lacks documented sampling protocols and QA/QC records, which reduces confidence in those datasets. Even so, select historical assay results were incorporated into the resource estimate where comparative analysis against modern data supported their reliability. Assay population reviews show broadly consistent grade distributions across Guardian, Duval, and UCC datasets, which supports their comparability despite differences in dataset size and detection limits. Interpolation tests indicated that historical datasets returned WO₃ grades about 17% higher than Guardian’s, a difference attributed to sampling population effects and drilling geometry rather than systematic analytical bias. These findings reinforce the conjecture that estimation risk is primarily linked to the historical dataset, particularly in areas where vertical drilling and selective sampling may have biased grade representation. Guardian’s angled drilling reduced geometric bias, and the modern dataset provides confidence in the overall resource model. Assays generated by colorimetric methods during the 1970s campaigns are accepted for inclusion in the resource model. Although less precise than modern instrumental techniques, colorimetry was a recognized practice for tungsten analysis at the time. Partial assay certificates recovered by Guardian provides traceability. Despite the absence of QA/QC data from the original campaigns, corroborating evidence from comparative analyses supports the selective use of historical colorimetric results in the current estimate. |
| RSI-3732 92 2 22.2 EXPLORATION Drilling at the Pilot Mountain Tungsten Project has been conducted intermittently since 1968, with successive operators contributing to the understanding of mineralization at Desert Scheelite, Good Hope, Gunmetal, and Garnet. Early programs by Hecla and Duval tested porphyry copper‑molybdenum targets and tactite zones, with Duval later identifying copper‑tungsten mineralization northeast of Desert Scheelite. Grace’s angled drilling in 1975 confirmed the width of steeply dipping mineralization, which improved understanding of deposit geometry. UCC’s work in the late 1970s extended scheelite mineralization into the Middle Gunmetal/South Contact areas and supported their acquisition of the property. Black Fire’s 2011 campaign focused on verifying historical assays and Thor’s 2017 exploration tested for copper‑silver mineralization, providing continuity of exploration and supporting initial resource estimates. Guardian’s 2024–2025 program represents the most comprehensive modern dataset, with 89 diamond core holes (68 at Desert Scheelite, 20 at Garnet, and one in the quartz monzonite stock). Guardian’s drill-hole locations were professionally surveyed. Overall, the drilling record demonstrates progressive refinement of the understanding of deposit geometry and grade distribution. Historical campaigns established the presence of scheelite mineralization but were limited by vertical drilling and selective sampling. Guardian’s modern program reduced geometric bias, provided reliable assay data, and forms the backbone of the resource model. 22.3 GEOLOGY AND MINERALIZATION The Pilot Mountain Tungsten Project lies within the Walker Lane structural belt of western Nevada, a zone of strike-slip faulting, extensional basins, and magmatism that has strongly influenced mineralization patterns. The Triassic Luning Formation hosts the mineralization at Pilot Mountain and represents the primary stratigraphic unit of interest in the project area. The formation is subdivided into lower, middle, and upper members, and is intruded by Jurassic to Cretaceous granitic stocks and overlain by Tertiary volcanic units. Intrusion of Jurassic quartz monzonite stocks produced contact metamorphism and skarn alteration within adjacent carbonate rocks. The Desert Scheelite deposit is a tungsten skarn formed along the contact of the quartz monzonite stock within lower Luning carbonates and biotite hornfels. Scheelite is the dominant ore mineral, accompanied by pyrite, chalcopyrite, and sphalerite, with local base‑metal sulfide contents exceeding 20% in unoxidized samples. Skarn assemblages include pyroxene‑rich and garnet‑rich varieties, with the latter showing variable base‑metal enrichment linked to the geochemical character of individual intrusions. 22.4 MINERAL RESOURCES The Desert Scheelite mineral resources are defined within a base-metal enriched tungsten skarn and extend approximately 600m along strike and at least 300m down-dip. Mineralization is sub-vertical and includes three higher-grade tungsten zones which reflect structural and lithological controls. Guardian’s drilling and geologic modeling improved understanding of mineralization continuity and provided the basis for tungsten domain modeling and resource estimation. |
| RSI-3732 93 2 RESPEC estimated resources assuming potential open-pit extraction with standard milling and flotation techniques. RESPEC optimized pits at variable WO₃ prices using Nevada-based cost assumptions to evaluate near-surface mineralization that is likely to be, in whole or in part, economically extractable. Resources are reported at a 0.06% WO₃ cut-off grade. Silver, copper, and zinc are also reported, but their value is dependent on the ability to economically extract the by-products. A majority of resources (83%) are classified as indicated, supported by Guardian’s drilling density, QA/QC data, and improved geologic understanding. Uncertainties remain due to limitations in historical datasets, including incomplete survey records, inconsistent assay documentation, selective sampling, and the predominance of vertical holes in steeply dipping zones, which may have exaggerated estimated higher‑grade thicknesses. Guardian’s angled drilling reduced geometric bias, but some risk remains in the estimated volume of higher‑grade material. |
| RSI-3732 94 2 23.0 RECOMMENDATIONS RESPEC considers the Pilot Mountain Tungsten Project to be a project of merit and recommends the proposed program and level of expenditures outlined herein. 23.1 PHASE 1 RECOMMENDED ACTIVITIES AND BUDGET RESPEC recommends that the next phase of work at Desert Scheelite focus on reducing estimation risk, validating historical data, and advancing the deposit toward feasibility-level evaluation. Guardian has initiated a pre-feasibility study, for which early-stage work is underway. To support and de-risk the Desert Scheelite model and mineral resources through this process, RESPEC proposes an approximately $10.55 million phase 1 budget summarized in Table 23-1 to complete the following activities: Drilling and Assay Programs RESPEC recommends that Guardian complete 1,500m of core drilling at Desert Scheelite. The program should increase drill density, improve confidence in grade continuity, and support conversion of inferred blocks to indicated. In particular, RESPEC recommends infill drilling in both indicated and inferred areas within the optimized pit to test the quality of the current tungsten low-grade domain model and resource estimate. RESPEC further recommends incorporation of select twin holes to validate historical assays, particularly in areas where vertical drilling may have exaggerated grade thicknesses. RESPEC advises Guardian to maintain current insertion rates of CRMs, blanks, and duplicates, and to document follow-ups with the assay laboratories on QA/QC failures to increase the defensibility of the dataset. In addition to Desert Scheelite, RESPEC recommends advancing drilling at the Garnet and Gunmetal deposits, with approximately 1,800m of core drilling planned at each. These programs will test extensions of known mineralization, improve confidence in resource geometry, and provide data to support initial resource classification. Exploration drilling totaling 2,000m is also proposed to evaluate additional targets across the Pilot Mountain property, which may contribute to future resource expansion. Petrological, Ore Characterization, and Metallurgical Studies RESPEC recommends that Guardian undertake detailed mineralogical and ore characterization studies to refine understanding of scheelite and its alteration patterns, variability in high-grade zones, and base-metal associations. RESPEC further recommends integrating these studies with metallurgical test work to build on initial evaluations of WO₃ recovery, processing performance, flotation efficiency, and by-product recoveries. Studies linking geologic variability with processing outcomes are critical to the pre-feasibility study. Geologic and Metal Domain Modeling RESPEC recommends that Guardian update geologic modeling to refine lithologic and alteration contacts and incorporate structural features that may control higher-grade mineralization. RESPEC advises continued refinement of domain boundaries and improvement of block-model reliability. Any |
| RSI-3732 95 2 updates that materially change Desert Scheelite mineral resources should be documented and reported to maintain compliance with S-K 1300 requirements. In particular, RESPEC recommends that Guardian characterize the multiple grade populations observed on the CPPs of each metal. Although second, higher-grade populations were apparent on the charts and in drill assays during modeling, the geological characteristics of the higher grades were not understood, and were therefore not used in the model. As a result, the overall quantity of metal is likely well-represented by the model, but the local distribution of grade may not be. Understanding and modeling the higher-grade domains would reduce the local risks associated with mixing of different assay populations within the low-grade domain. Hydrology, Permitting, and Bonding RESPEC recommends that Guardian continue the hydrology study to establish baseline hydrogeological data, inform pit design, and evaluate dewatering requirements. RESPEC further recommends advancing permitting and bonding activities in parallel to ensure regulatory compliance and reduce risk in mine-planning assumptions. Support Infrastructure RESPEC recommends that Guardian secure labor, support staff, equipment, and materials at appropriate levels to sustain operational continuity and technical execution across drilling, analytical, and study programs. Adequate resourcing will enable successful delivery of work programs and maintain project progress. Table 23-1. Guardian Cost Estimate for Pilot Mountain Tungsten Project Recommended Work—Phase 1 Task Qty Unit US$ per unit US$ Desert Scheelite Core Drilling 1,500 meter $520 $780,000 Garnet Core Drilling 1,800 meter $520 $936,000 Gunmetal Core Drilling 1,800 meter $520 $936,000 Exploration Core Drilling 2,000 meter $520 $1,040,000 Assays 4,700 samples $55 $260,000 Metallurgical Test Work $450,000 Geological Modelling $25,000 Hydrology Study $675,000 Ore Characterization Study $525,000 Permitting and Bonding $645,000 Pre-Feasibility Study $1,620,000 Reporting $220,000 Labor / Support Staff $2,370,000 Equipment and Materials $70,000 Total $10,552,000 |
| RSI-3732 96 2 23.2 PHASE 2 RECOMMENDED ACTIVITIES AND BUDGET Following completion of phase 1 activities, RESPEC recommends advancing a second phase of work to support feasibility evaluation and reduce remaining technical and regulatory risks. Phase 2 is designed to expand the resource base, refine engineering inputs, and strengthen environmental and permitting foundations. The proposed phase 2 activities and budget of ~$8.48 million are summarized below and in Table 23-2. Core Drilling RESPEC recommends that Guardian complete additional core drilling across the Desert Scheelite, Garnet, and Gunmetal deposits and on exploration targets identified in phase 1 exploration. This program will test extensions of known mineralization, evaluate new zones identified during Phase 1, and improve confidence in resource geometry. RESPEC expects these results to support updated block models and contribute to the conversion of inferred material to indicated or measured categories. Metallurgical Test Work RESPEC recommends that Guardian conduct follow-up metallurgical studies. These tests will include variability assessments across multiple deposits and will refine recovery assumptions for tungsten and associated by-products. RESPEC advises that the results feed directly into process design and feasibility-level engineering. Permitting and Bonding RESPEC recommends that Guardian expand permitting and bonding activities. This work will address environmental data collection, bonding requirements, and regulatory submissions necessary to advance the project. Feasibility Study RESPEC recommends that Guardian complete a full feasibility study. This study will evaluate economic viability using updated technical and cost assumptions. RESPEC expects the feasibility study to incorporate revised resource models, metallurgical data, mine design, infrastructure planning, and permitting outcomes. Labor and Support Staff RESPEC recommends that Guardian continue to allocate resources to labor and support staff to manage drilling, data integration, engineering, and permitting workflows. Infrastructure RESPEC recommends that Guardian invest in infrastructure to support field operations, data collection, and logistics. This investment will include upgrades to access roads, core handling facilities, and temporary utilities required for sustained exploration and study activities. |
| RSI-3732 97 2 Table 23-2. Guardian Cost Estimate for Pilot Mountain Tungsten Project Recommended Work—Phase 2 Task Qty Unit US$ per unit US$ Core Drilling 6,500 meter $520 $3,380,000 Metallurgical Test Work $200,000 Permitting and Bonding $900,000 Feasibility Study $1,000,000 Labor / Support Staff $2,000,000 Infrastructure $1,000,000 Total $8,480,000 |
| RSI-3732 98 2 24.0 REFERENCES Several technical resource reports have been prepared for Pilot Mountain resources areas, none that were S-K 1300 compliant. They are as follows: Golder Associates, 2012. Desert Scheelite Resource, with Final Report Number 127641013-002-R-Rev0, prepared by Golder Associates Pty Ltd. Kaiser Engineers, 1981. Feasibility Study for Mining and Concentrating of Pilot Mountain Tungsten Ore, Mineral County, Nevada, prepared by Kaiser Engineers for Union Carbide Corporation Metals Division. RES, 2018. Update of Golder Associates Desert Scheelite Resource, prepared by Resource Evaluation Services (RES) for Thor Mining PLC. Vidale, Andrew, 2018. Pilot Mountain Mining Scoping Study, prepared by Andrew Vidale Consulting Services on behalf of for Thor Mining PLC. Other sources: American Eagle Research Institute, 2025. “Pilot Mountain Exploration Project: 2025 Golden Eagle Occupancy and Reproduction Assessment,” prepared for WestLand Engineering & Environmental Services. Faulds, J. E. and C. D. Henry, 2008. “Tectonic Influences on The Spatial And Temporal Evolution of The Walker Lane: An Incipient Transform Fault Along The Evolving Pacific – North American Plate Boundary,” in Spencer, J. E. and S. R. Titley, editors, Ores and Orogenesis: Circum-Pacific Tectonics, Geologic Evolution, and Ore Deposits, Arizona Geological Society Digest, Vol. 22, pp. 437-470. Grabher, D. E., 1984. “Union Carbide's Pilot Mountain Project Geologic Setting and Field Trip Guide,” in Exploration for Ore in the American Cordillera, J. L. Johnson, ed., Association of Exploration Geochemists, pp. 5-24. Lederer, G. W., F. Solano, J. A. Coyan, K. M. Denton, K. E. Watts, C. N. Mercer, D. P. Bickerstaff, and M. Granitto, 2021. “Tungsten Skarn Mineral Resource Assessment of the Great Basin Region of Western Nevada and Eastern California,” Journal of Geochemical Exploration , Vol. 223, pp. 1-24. Nielsen, R. L., 1963. Geology of the Pilot Mountains and Vicinity, Mineral County, Nevada, PH.D. thesis, University of California, Berkeley. Oldow, J. S., 1978. “Triassic Pamlico Formation: An Allochthonous Sequence of Volcanogenic-Carbonate Rocks in West Central Nevada,” in Mesozoic Paleogeography of the Western United |
| RSI-3732 99 2 States, edited by Howell, D. G., and K. A. McDougall, SEPM, Pacific Section, Pacific Coast Paleogeography Symposium 2, pp. 223-235. Samuel Engineering. 2025. “Metallurgical Test Work: Pilot Mountain PFS,” [Project memorandum]. Samuel Engineering, Greenwood Village, CO. Speed, R. C. 1977. “Island arc and other paleogeographic terranes of Late Paleozoic age in the western Great Basin,” in Paleozoic Paleogeography of the Western United States, edited by Stewart, J.S., Stevens, C.H., and Fritsche, A. E., SEPM, Pacific Coast Section, Pacific Coast Paleogeography Symposium 1, pp. 349-362. Western Regional Climate Center, 2013. Cooperative Climatological Data Summaries. Retrieved from http://wrcc.dri.edu/climatedata/climsum/ WestLand Engineering & Environmental Services, 2024. “Pilot Mountain Exploration Project: 2024 Pre-Field Habitat Assessment.” WestLand Engineering & Environmental Services, 2025a. “Pilot Mountain Exploration Project: 2024 Baseline Biological Survey Report.” WestLand Engineering & Environmental Services, 2025b. “2025 Cold Season Internal Bat Survey,” addendum to “Pilot Mountain Exploration Project: 2024 Baseline Biological Survey Report.” WestLand Engineering & Environmental Services, 2025c. “2025 Burrowing Owl Survey,” addendum to “Pilot Mountain Exploration Project: 2024 Baseline Biological Survey Report.” |
| RSI-3732 100 2 25.0 RELIANCE ON INFORMATION PROVIDED BY THE REGISTRANT The following categories of information have been provided to RESPEC by Guardian: / Electronic copies of documents, reports, maps, tables, and 3D topographic shapefiles that Guardian acquired from historical operators of the Pilot Mountain property concerning boundaries, property history, geology, and historical drilling and sampling. / Electronic copies of documents, reports, maps, tables, and 3D geologic shapefiles provided by Guardian with the results of drilling and sampling carried out by Guardian through the effective date of this report. / Electronic copies of maps, photographs, drilling data tables, laboratory assay reports and certificates from Guardian’s drilling programs. RESPEC has taken all appropriate steps, in its professional judgment, to ensure that the work, information, or advice derived from the above‑noted information and companies is sound. RESPEC has disclosed the uncertainties and lack of independent verification of the data in Section 5.0, Section 7.0, and Section 8.0. RESPEC has fully relied on Guardian to provide complete information concerning the pertinent legal status of Guardian and its affiliates, as well as current legal title, material terms of all agreements, material environmental and permitting information, and metallurgical test work that pertains to the Pilot Mountain Tungsten Project. RESPEC has therefore relied fully upon information and opinions provided by Guardian with regard to the land tenure, metallurgy, and environmental studies summarized in Section 3.0, Section 10.0, Section 17.0, and Appendix A. RESPEC has no reason to believe that any material facts have been withheld or misstated, and considers it reasonable to rely upon the registrant for the information summarized in Section 3.0, Section 10.0, and Section 17.0 of this report. |
| RSI-3732 A-1 2 APPENDIX A LIST OF UNPATENTED LODE MINING CLAIMS OF THE PILOT MOUNTAIN TUNGSTEN PROJECT |
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