Musgrave Minerals Ltd. announced the results of a Stage 1 Prefeasibility Study (PFS) on its 100% owned Cue Gold Project, situated in the heart of Western Australia's Murchison gold region. The outcomes of the study show a technically and financially robust project. Key Highlights: Confirms a financially attractive standalone project with an initial 5-year LOM demonstrating low cost, high margin gold production.

LOM undiscounted, pre-tax, free cash flow of $314 million over `Stage 1' 5-year term (AUD 2,600/oz sale price), increases to $427 million at current spot of AUD 2,950/oz. Payback period of 9 months from commencement of production, accounting for a standalone 500,000 tpa processing plant and three months pre-production activities totaling $121 million in startup capital. Stage 1 PFS gold production of 337,000 oz (345,000 oz mined) with the initial 3 years averaging 80,000 oz/year.

The total LOM production includes approximately 77% Indicated and 23% of Inferred Mineral Resource. The Project displays robust financial metrics: EBITDA of $528 million, with a C1 cost of AUD 934/oz. Average LOM AISC of AUD 1,315/oz, including sustaining capital of $93 million over the LOM.

Pre-tax NPV8 of $235 million, with an IRR of 95% ($215 million and 91% post-tax). Stage 1 PFS cost profiles are based on the current inflationary environment, with 86% of the total costs having a direct first quarter of calendar year 2023 quoted price from service provider or contractor. Musgrave will rapidly advance to Stage 2 PFS with the aim of extending mine life through ongoing infill drilling to convert Inferred material as well as continued exploration and drilling of mineralised prospects to underpin an updated Mineral Resource Estimate in late 2023.

The Stage 1 PFS Life of Mine (LOM) plan focuses predominantly on the current 417,000 ounce Indicated component of the 868,000 oz Southern Area Mineral Resource to generate gold production of 345,000 oz with compelling physical and economic metrics. Musgrave to rapidly advance to Stage 2 PFS which is expected to extend the LOM as ongoing drilling tests new prospects and extends and upgrades existing Inferred Mineral Resources into the mine plan, within Musgrave's 100% owned tenure. Musgrave is continuing to fast-track drilling, to make new discoveries and grow and de-risk the resource base with a focus on adding mine life through the Stage 2 PFS.

Any future resource additions in the S2 PFS will add mine life and continue to drive value for the project. The Company is also advancing technical studies and permitting to accelerate the project towards development.