CuFe Ltd. provided an update on operating and hedging activities at its JWD iron ore project. JWD Iron Ore Mine: The Company holds a 60% interest in the JWD Project via its subsidiary Wiluna Fe Pty Ltd. as operator of the joint venture (JWD JV). The Company has entered into an agreement to acquire the remaining 40%, subject to CuFe shareholder approval.

Further to the Company's announcement of 20 January 2023 regarding the recommencement of full operations at JWD it its pleased to advise that ramp up has been completed and the project is now operating at its intended capacity. The current focus of operations at JWD is on a smaller, low strip ratio (~1.2:1) pit which can feed planned sales for the 2023 calendar year at a lower cost, with a focus on maximizing near term cash flow. As the year progresses company has the option to cut back the pit to access further high grade ore if the iron ore pricing environment is supportive of doing so.

Project economics have been further improved by changes to the processing circuit which have increased the saleable portion of fines product that is being generated. To assist in managing financial performance and protect against price volatility the Company is continuing to hedge forward production, with 170,000DMT now hedged with a variety of maturities over the period to September 2023. This represents approximately 35% of intended sales over that period and the Company will look to grow its hedge coverage further as it sees attractive pricing levels, with an aim of covering approximately 70% of its six-month production profile.

The hedges consist of 30,000DMT of swaps at an average price of USD 127 basis 62% Fe and 140,000 zero cost collars, with weighted average floor and ceiling prices of USD 116 and USD 135 respectively basis 62% Fe. Approximately 85% of the intended sales are of lump product that achieves an additional premium which at this stage remains unhedged. The Company is preparing for the shareholder meeting to approve the acquisition of the remaining 40% of JWD, with a notice of meeting being drafted and an Independent Expert appointed to report to shareholders on the fairness and reasonableness of the proposed transaction.

Based on the expert's timelines to prepare their report it is expected that the shareholder meeting will be held in May.