Newcrest Mining : Havieron PFS Stage 1 delivers solid returns and base for future growth

Market Release

12 October 2021

Havieron PFS Stage 1 delivers solid returns and base for future growth

• Havieron PFS Stage 1 estimated IRR of 16% with a 4 year payback period1,2,3,4
• Estimated average gold production of 160kozpa @ AISC of US$743/oz over initial 9 year mine life from a ~2Mtpa operation1,2,3
• Capital efficient, low intensity development utilising existing Telfer processing infrastructure
• PFS based on Ore Reserves of 14Mt and does not consider 37Mt of Inferred Mineral Resource
• The Study identified that including additional Mineral Resources could allow for a ~3Mtpa operation
• The Feasibility Study underway will also assess production rates of 3Mtpa and beyond
• Significant exploration upside, with recent drilling showing the deposit open laterally and at depth
• Completion of PFS triggers Newcrest's entitlement to an additional 10% interest in Havieron
• Feasibility Study expected to be completed in the December 2022 Quarter5

Newcrest Mining Limited (ASX, TSX, PNGX: NCM) is pleased to announce that the Havieron Pre-Feasibility Study Stage 1 (the Study) has been completed and the Newcrest Board has approved the progression of the Study to the Feasibility Stage.

The Havieron Project (the Project) is located 45km east of Newcrest's existing Telfer operation and is a high grade, low capital intensity project with significant expansion potential. Newcrest has adopted a staged approach to the evaluation and development of Havieron aiming to deliver early production and cash flows from the project while work continues to define potential resource additions and assess growth targets. The benefit of existing processing capacity at Telfer and ongoing definitional drilling highlights the clear potential for a larger scale operation that will be further assessed during the Feasibility Stage.

Newcrest Managing Director and Chief Executive Officer, Sandeep Biswas, said "It is an incredible achievement that, within two years of starting the Havieron drilling program, we have been able to deliver this significant project milestone and demonstrate financial returns that comfortably exceed our hurdle rate, even in this first stage. The Pre-FeasibilityStudy underpins an initial Ore Reserve estimate for the upper section of the South East Crescent Zone which increases our confidence in achieving first production in FY24 and triggers our entitlement to a cumulative 70% Joint Venture interest."

"We believe that this is just the first stage of a bright and profitable future for Havieron. Our extensive drilling program continues to assess the extent of the South East Crescent Zone and further test the Northern and Eastern Breccia for mineralisation which may be suitable for bulk mining methods. We have recently delivered several new and

1 The Pre-Feasibility Study is subject to an accuracy range of ±25%. The findings in the Study and the implementation of the Havieron Project are subject to all the necessary approvals, permits, internal and regulatory requirements and further works. The estimates are indicative only and are subject to market and operating conditions. They should not be construed as guidance.

2 The production targets underpinning the Study estimates are LOM average annual gold and copper production of 160koz Au and 6.9kt Cu. The production targets are based on the utilisation of 100% of the total Havieron Ore Reserves, being 1.6Moz Au and 73Kt Cu Probable Ore Reserves, as set out on Page 12, which have been prepared by a Competent Person in accordance with Appendix 5A of the ASX Listing Rules.

3 As Havieron's functional currency is AUD, the Study has been assessed in AUD. AUD values have been converted to USD using an exchange rate of 0.75.

4 Payback is the earliest date that net accumulated free cash flow is equal to zero. This is calculated from first commercial production which is defined as the expected commencement date of saleable gold production.

5 Subject to market and operating conditions, all necessary approvals, regulatory requirements and no unforeseen delays (including any delays due to COVID-19).

Newcrest Mining Limited - Level 8, 600 St Kilda Road, Melbourne - www.newcrest.com

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exciting high grade intercepts which extend the high grade mineralisation beneath the initial Mineral Resource estimate and highlights the potential for further resource growth".

"Notably, the Study assumes that Havieron is the sole ore feed for the Telfer plant and does not assume any potential upside from the extension of Telfer's mine life beyond FY24. We continue to assess the potential for further open pit and underground opportunities at Telfer to extend its life and supplement production from Havieron in FY24 and beyond" said Mr Biswas.

Summary of Study Findings (in 100% terms)1,2,3

• Initial Ore Reserve estimate:

• 1. 14Mt @ 3.7 g/t Au and 0.54% Cu for 1.6Moz Au and 73kt Cu6
• Low-costproduction in a Tier 1 jurisdiction, with further upside
• 1. Life of Mine (LOM) average annual gold production of 160koz and copper production of 6.9kt
  1. PFS based on Ore Reserves of 14Mt and does not consider 37Mt of Inferred Mineral Resource
  1. LOM average All-In Sustaining Cost (AISC) of A$990/oz (US$743/oz)
• Attractive investment opportunity
• 1. Estimated total capital expenditure of A$529 million (US$397 million)7,8

• 1. Internal Rate of Return (IRR) of 16% (real, after tax)
  1. Payback of 4 years from first commercial production4
  1. Net Present Value (NPV) of A$304 million (US$228 million)9
• Uses Newcrest's existing milling and support infrastructure at Telfer to process and treat Havieron ore
• 1. Demonstrates the value that this strategic infrastructure can provide to the Project

1. The Study assumes that Havieron is the sole ore feed for the Telfer plant and does not assume any potential upside from the extension of Telfer's mine life beyond FY24

• 1. Newcrest is assessing the potential for further open pit and underground opportunities at Telfer to extend its life and supplement production from Havieron in FY24 and beyond
• Growth optionality
• 1. Potential to expand the Project and increase the mining rate to 3Mtpa or more through the inclusion of areas of the Inferred Mineral Resource that are currently subject to an infill drilling program

1. Potential to lower mining costs by considering alternative, higher production rate, mining methods o Ongoing growth drilling continues to show potential for resource additions outside of the existing
   Inferred Mineral Resource boundaries

The Havieron Project is located on the traditional lands of the Martu people who hold exclusive possession native title rights to 130,000km2 of country in the Western Desert. The Indigenous Land Use Agreement with Western Desert Land Aboriginal Corporation, centred on the Telfer mine, extends to the Havieron project.

The Project is operated by Newcrest under a Joint Venture Agreement with Greatland Gold plc (Greatland Gold). Completion of this Pre-Feasibility Study triggers Newcrest's entitlement to an additional 10% interest in the Joint Venture for a cumulative 70% Joint Venture interest. Newcrest has an option to acquire an additional 5% Joint Venture interest for fair market value, exercisable during the 12 months from 12 December 2021.

The Havieron Feasibility Study is expected to be completed in the December 2022 Quarter5.

6 Represents 100% of the Ore Reserve for Havieron. Newcrest's joint venture interest in the Ore Reserve is currently 40%. Newcrest has now met the Stage 3 farm- in requirement and has earnt an additional 20% joint venture interest, resulting in a joint venture interest of 60%. Upon delivery of the PFS, Newcrest is entitled to earn an additional 10% joint venture interest, resulting in an overall joint venture interest of 70% (Greatland Gold 30%).

7 Inclusive of previously approved Early Works funding totalling A$146 million (US$112 million). See Newcrest release titled "Havieron Project receives regulatory and funding approval" dated 13 January 2021 which is available to view at www.asx.com.au under the code of "NCM" and on Newcrest's SEDAR profile.

8 Upon finalisation of the Study, Greatland Gold is obliged to fund 30% of all project expenditure going forward and Newcrest is obliged to fund 70%. This funding split will adjust to 25% Greatland Gold and 75% Newcrest if Newcrest exercises its option to acquire the additional 5% interest in the 12 months from 12 December 2021.

9 Using a discount factor of 4.5% (real).

Newcrest Mining Limited - Level 8, 600 St Kilda Road, Melbourne - www.newcrest.com

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Table of Key Study Findings (100% terms)1,2,3,10

Area

Measure

Unit

Study Outcomes

Production

Ore milled / milling rate (max)

Mtpa

2.1

LOM

Years

9

Ore mined (LOM)

Mt

14

Average gold grade (LOM)

g/t

3.72

Average copper grade (LOM)

%

0.54

Gold produced (LOM)

koz

1,432

Copper produced (LOM)

kt

62

Average annual gold production (LOM)

koz

160

Average annual copper production (LOM)

kt

6.9

Capital

Project capital7,8

A$m (real)

529

Operating

Total operating cost (LOM)11

A$/t (real)

112

AISC (LOM)

A$/oz sold

990

Economic assumptions

Gold price

US$/oz

1,500

Copper price

US$/lb

3.30

AUD:USD exchange rate

0.75

Financials

NPV9

A$m (real)

304

IRR

% (real)

16

Payback period4

Years

4

Free cash flow generation (LOM) (post tax)

A$m (real)

531

Key milestones5

Milestone Activity	Estimated Date
Gate Feasibility Study to Execution	Q2 FY23
First Ore	1H FY24
First Production of Gold/Copper	2H FY24

10 Newcrest has now met the Stage 3 farm-in requirement and has earnt an additional 20% joint venture interest, resulting in a joint venture interest of 60%. Upon delivery of the PFS, Newcrest is entitled to earn an additional 10% joint venture interest resulting in an overall joint venture interest of 70% (Greatland Gold 30%).

11 Total operating costs includes mining costs, processing costs, infrastructure costs and general and administrative costs.

Newcrest Mining Limited - Level 8, 600 St Kilda Road, Melbourne - www.newcrest.com

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Potential Exploration Upside

The Study considers only the Indicated Mineral Resource, which is a small portion of the existing resource inventory and excludes Inferred Mineral Resources. The Havieron Project has significant additional growth potential, including:

• Mineralisation open at depth and along strike:

• 1. Extension of the SE Crescent Zone below the current Mineral Resource, where increasing grade and thickness of mineralisation has been observed in recent drilling
• Expansion of multiple higher-grade targets within the main Havieron NW corridor, including the Northern Breccia and NW Pod
• Potential for additional NW trending corridors including the Eastern Breccia; and
• Potential to discover additional mineralisation centres (at Havieron North, Zipa and Meco).

In addition to the active testing of the above higher-grade targets, drilling continues in the northern and eastern breccia corridors to assess the bulk mining potential.

Havieron Feasibility Study5

The Havieron Feasibility Study is expected to be completed in the December 2022 Quarter and the study scope is expected to include:

• Completion of a further infill drilling program by end of CY21 to increase the Indicated Mineral Resource base for potential Ore Reserve expansion
• Completion of the growth drill program immediately below the Crescent Zone for potential Mineral Resource expansion
• Further investigation and optimisation of the Sub-Level Open Stoping (SLOS) design and sequence to include additional Inferred Mineral Resources that are currently being drilled with the aim of increasing resource confidence that Indicated Mineral Resources can support production rates of 3Mtpa or higher
• Initial assessment of future development options with further resource growth in the Northern and Eastern Breccia including evaluation of alternative, lower cost, mining methods.

Project Details

The Havieron Project is centred on a deep magnetic anomaly 45km east of Telfer in the Paterson Province on the traditional lands of the Martu people. The target is overlain by approximately 420m of post mineralisation Permian cover. Newcrest commenced drilling during mid-2019 and has progressively increased its drilling activities with up to eight drill rigs now in operation.

The Martu people and the Western Desert Land Aboriginal Corporation (WDLAC) are key project stakeholders. The Martu hold exclusive possession native title rights and interests over more than 130,000 km2 of land, including to all points around the Telfer mine and Havieron Project. The Indigenous Land Use Agreement (ILUA) with WDLAC, centred on the Telfer mine, extends to the Havieron project.

The Project has received the necessary regulatory approvals for the construction of a box cut, exploration decline and associated surface infrastructure, with these works formally commencing in January 2021. The Study has assessed the next stage of the Project which comprises the underground and surface development to establish the initial mining area at Havieron and ore processing modifications at Telfer.

Newcrest Mining Limited - Level 8, 600 St Kilda Road, Melbourne - www.newcrest.com

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Figure 1. Location of the Havieron Project, approximately 45km east of Telfer, Western Australia.

Mineralisation of gold and copper in the current Resource Model are within the South East (SE) Crescent and the Breccia zones. High grade gold mineralisation is associated with a massive sulphide zone termed the Crescent Zone which occurs on the margin of the Breccia zones. The Crescent Zone is characterised by a series of massive to semi-massive sulphide replacement units that have a subvertical dip and are best developed on the SE of the system forming as arcuate, crescent like geometry. The Breccias are still being defined through exploration drilling and early-stage evaluations will be completed to test the potential to develop additional mining fronts and utilise bulk mining methods.

The SE Crescent Zone is 5-40m wide, extending 550m in length in unfolded section from the basement contact and defined over 900m vertically, tapering to ~300m in length and open at that depth. The SE Crescent Zone has been the focus of drilling and has been infilled to a nominal drill spacing of 50-100m laterally (with at least part being infilled to a 50m x 50m spacing to satisfy the requirements for an Indicated Mineral Resource), and 100m vertically.

The Study assessed mining production methods including SLOS with mining rates of 2Mtpa to 3Mtpa and caving options up to 6Mtpa. Surface infrastructure studies were focused on the transportation of ore back to the Telfer processing plant with a range of options considered in early-stage evaluations including conveyor, rail, pipeline and truck haulage, with the latter adopted for the Ore Reserve case. Processing studies evaluated a modified Telfer process plant to accommodate the Havieron ore.

The initial Ore Reserve case is based on a ~2Mtpa production rate from SLOS mining method limited to the Indicated Mineral Resources within the SE Crescent Zone. The Study demonstrates the potential to expand the Project and increase the mining rate to 3Mtpa or more based on the conversion of the current Inferred Mineral Resources and additional potential Mineral Resource growth from immediately below the Crescent Zone (Figure 2) as seen in recent drill results (refer to Section titled "Potential Exploration Growth" on Page 14 for a summary of drill results).

Newcrest Mining Limited - Level 8, 600 St Kilda Road, Melbourne - www.newcrest.com

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