As previously announced, Dacian Gold Limited (ASX: DCN) (The Company) has halted mining at its Mt Morgans Gold Operation and exhausted run of mine stocks and low-grade stockpiles. The Company is currently processing historical dump leach material and is appropriately funded to complete the transition announced in June 2022 from miner to explorer/developer.

Processing of historical dump leach material will be suspended at the end of March 2023 and the ~2.9Mtpa Mt Morgans mill will be placed on care and maintenance. This decision has been taken by the Board in light of a number of factors, including: uncertainty regarding the stockpile grade, lead times to improve longer term water security, ongoing industry input costs and supply chain challenges and risks, the prospect that the Ulysses ore will now be processed at Gwalia, and retention of suitable low-grade stockpiles for a future restart of operations

The operational hiatus will enable Dacian to pursue a number of optimisation initiatives (refer 'futureproofing' section) in the absence of production and cost pressures. The targeted outcome is a robust, low risk, sustainable mine plan that will underpin the resumption of operations.

Dacian Non-Executive and Independent Chair Craig McGown said: 'The decision to place Mt Morgans on care and maintenance was not taken lightly, especially given the impact on our loyal employees and contractors, and the community in which we operate. 'However, a period of care and maintenance will ultimately benefit all stakeholders by providing time to develop a robust, low risk, sustainable plan, necessary to underpin the future resumption of operations. 'On behalf of the Dacian Board and senior management, I would like to thank our people for their effort and dedication, and I look forward to the day when Mt Morgans is brought back on-line. 'While there will unfortunately be redundancies, where possible Dacian will re-deploy employees under the shared management services agreement with Genesis'.

Dacian will work with its major shareholder Genesis, towards maximising group synergies to further reduce Dacian corporate outflows for the benefit of all shareholders and will keep the market updated on the progress of the portfolio optimisation initiatives. Importantly, the Mt Morgans mill can be readily brought back on-line when a robust, low risk, sustainable mine plan for the resumption of operations is in place.

Contact:

Dale Richards

Chief Executive Officer

Dacian Gold Limited

T: +61 8 6323 9000

E: info@daciangold.com.au

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