Newcrest Mining : advances its global organic growth portfolio

Market Release

12 October 2021

Newcrest advances its global organic growth portfolio

• Consistent strategic focus on maximising cashflow from long life, low cost, high margin assets
• All four organic growth options have PFS's estimated to deliver an IRR of 16% or higher1
• Projected 50% reduction in Group All-In Sustaining Cost per ounce over the next decade2,4
• Material growth (+37%) in copper production, sourced exclusively from Tier 1 jurisdictions2,4
• Lihir projected to become a 1Mozpa+ gold producer for at least 10 years from FY242,3
• Projected multi-decade asset lives at Cadia, Lihir and Red Chris
• Newcrest intends to fund all four projects through operating cash flow and existing liquidity

Newcrest Mining Limited (ASX, TSX, PNGX: NCM) is pleased to announce that the Newcrest Board has approved the progression of all the Pre-Feasibility Studies (PFS) referred to in the releases listed below to the Feasibility Stage:

• "Red Chris Block Cave Pre-Feasibility Study confirms Tier 1 potential", release of 12 October 2021
• "Havieron PFS Stage 1 delivers solid returns and base case for future growth", release of 12 October 2021
• "Lihir PFS supports gold production growth to 1Mozpa+ from FY24", release of 12 October 2021

In addition, on 19 August 2021 the Company released "Cadia PC1-2Pre-Feasibility Study delivers attractive returns"

Newcrest Managing Director and Chief Executive Officer, Sandeep Biswas, said, "Newcrest is in an enviable position with four exciting PFS-stageorganic growth projects. The projections generated by the PFS studies for these projects indicate compelling rates of return and a material improvement in operating margin and cash flow. These projects target a 37% increase in copper output and a reduction in our already low All-InSustaining Cost per ounce by more than 50% over the next decade, with the majority of new investment in Tier 1 jurisdictions."

"The progression of these studies is consistent with our long term strategy of pursuing profitable growth in a safe and sustainable manner from a portfolio of long-life,high-quality assets optimised through innovation and creativity. Our ability to identify and maximise value from these organic growth options is supported by our best-in-class technical expertise, especially in deep underground mining where we have a strong track record."

"The projected growth profile of our copper production is particularly exciting and would allow us not just to advance our own sustainability objectives, but to participate in the potential opportunities presented by a global shift to decarbonisation. While Newcrest is primarily a gold company, we will continue to have a substantial and increasing exposure to copper, a commodity we believe has a compelling growth outlook."

"Beyond the base case projections generated by the PFS studies released today, we continue to evaluate and progress opportunities to extract the full potential of these growth projects. An example of this is East Ridge at Red Chris, which is not included in the current Red Chris PFS but could be incorporated into later studies. At Havieron, the PFS is based on Ore Reserves of 14Mt and does not consider 37Mt of Inferred Mineral Resource, so there is considerable upside potential for a larger scale operation of more than 3 million tonnes per annum from further exploration success, and the ongoing assessment of higher throughput rate options. We will also progress other organic projects in the portfolio, such as the potential for further open pit and underground opportunities at Telfer to extend its life and supplement production from Havieron in FY24 and beyond, the development of Wafi-Golpu and potentially Namosi. All of these options, and further exploration success elsewhere, represent upside potential to the base case outlook presented today."

"We intend to fund and deliver each project through internal cash flow and prudent use of our strong balance sheet, and our dividend policy remains unchanged, said Mr Biswas."

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

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Newcrest's pathway to 2030 - significant improvement in unit costs, sustained gold output and growing copper production in Tier 1 jurisdictions

The findings of the Red Chris, Havieron, Lihir Phase 14A and Cadia PC1-2 studies, combined with the base case projected performance of Newcrest's existing operations, create a pathway for future production from Newcrest's four operating assets. The key findings of the four PFS-stage studies in the context of Newcrest's existing operations are as follows:

• Significant reduction in Newcrest's AISC per ounce

• 1. AISC anticipated to decline by more than 50%, reaching less than $500/oz in FY302,4,5,8 o Low cost Cadia ounces joined by low cost ounces from Red Chris, Havieron and Lihir o AISC profile assisted by the expected material increase in copper by-product credits
• Strong gold production of approximately 2Moz per annum until at least FY302,4,8
• Outstanding copper production growth

1. Projected to reach >175ktpa in FY30 (which is an increase of 37% on FY21)2,4,8

1. 100% of copper growth to be generated from Tier 1 jurisdictions (Australia and Canada)

• 1. Further upside potential from future development of Golpu and Namosi (not included above)
• Initial Ore Reserve estimates for:

1. Havieron: 14Mt @ 3.7 g/t Au and 0.54% Cu for 1.6Moz Au and 73kt Cu6

• 1. Red Chris: 480Mt @ 0.52g/t Au and 0.45% Cu for 8.1Moz Au and 2.2Mt Cu7
• Attractive economics and value accretion projected across all projects, with total estimated Net Present Value (NPV) of $3.2bn2,8,9, assuming a gold price of US$1,500/oz, copper price of US$3.30/lb, an AUD:USD exchange rate of 0.75 and a CAD:USD exchange rate of 0.80, as follows2,8:

Red Chris

Cadia

Lihir

Total

Measure (NCM Share)

Unit

BC10,11

Havieron12,13

PC1-214,15,16

Ph14A17,18

NPV9,19

$m

1,278

160

1,486

284

3,208

Internal Rate of Return (IRR)

% (real)

17

16

22

37

• These financial outcomes improve when viewed at prevailing metal prices and exchange rates, with the table below showing the outcomes assuming a gold price of US$1,750/oz, copper price of US$4.15/lb, an AUD:USD exchange rate of 0.73 and a CAD:USD exchange rate of 0.80, as follows2,8:

Red Chris

Cadia

Lihir

Total

Measure (NCM Share)

Unit

BC10,11

Havieron12,13

PC1-214,15,16

Ph14A17,18

NPV9,19

$m

2,013

349

2,339

365

5,058

IRR

% (real)

22

26

28

47

These PFS findings are the result of significant technical assessments to date. Each study will be progressed to the Feasibility Stage, where a number of opportunities to further enhance the financial and operational aspects of the projects will be assessed.

Newcrest is also pursuing a number of additional growth options over and above the growth options included in the above-describedPFS-stage studies, including:

• potential upside at Red Chris with early mining of high-grade pods and the East Ridge discovery along strike;
• the Havieron deposit is still open in multiple directions with strong potential to increase the scale and life of the project as well as presenting the opportunity to adopt alternative, lower cost, mining methods; and
• a number of Open Pit and Underground extensions at Telfer are now being assessed with a view to add gold production in FY24 and FY25

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

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Indicative AISC/oz profile sees Newcrest moving even further down the cost

curve2,4,5,8,9,20

Indicative base case gold production profile to 20302,4,8,9

The indicative base case gold production is generated from the PFS-stage outcomes released today (and the Cadia PC1-2 outcomes released on 19 August 2021) and does not include the potential upside from further optimisation and extensions through other organic growth options (as summarised on page 2 and page 5), in particular the potential Telfer Open Pit and Underground extensions which have the potential to increase production in FY24 and beyond.

The indicative base case gold and copper production provided in this market release does not constitute guidance. The indicative production profiles are based on the outcomes of PFS level studies and projections in relation to existing operations. The actual production will be subject to market and operating conditions and all necessary permits and approvals; and medium term mine plans are reviewed, optimised and updated on at least an annual basis. Newcrest will continue to provide annual guidance for the financial year ahead and update it during the financial year as necessary.

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

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Indicative base case copper production from exclusively Tier 1 jurisdictions2,4,8,9

Estimated project capex profile of the four PFS projects and Cadia Expansion Project

(CXP) ($m)2,8,9,11,13,15,18,21,22

	$m		FY22		FY23		FY24		FY25		FY26		FY27		FY28		FY29		FY30		Total
	Cadia CXP	356		83		33		37		19		-		-		-		-		528
	Cadia PC1-2			69			123			161			261			151			139			38			2			-			944
	Red Chris Block Cave23	86		225		234		289		189		85		22		-		-		1,130
	Havieron			65			155			57			-			-			-			-			-			-			277
	Lihir Ph14A	101		78		-		-		-		-		-		-		-		179
	Total			677			664			485			587			359			224			60			2			-			3,058
Newcrest Mining Limited - Level 8, 600 St Kilda Road, Melbourne - www.newcrest.com													4

Guidance Update

The total of the Early Works and Feasibility Study expenditures approved by the Board and announced today in respect of the three PFSs results in a change in Lihir and Group Guidance for FY22 as follows26:

							Lihir										Group
				Original		Phase 14A		Updated		Original		Phase 14A		Updated
	AISC - Includes production stripping (sustaining) and sustaining capital
	AISC - $m			950 - 1,040			120			1,070	- 1,160			1,720	- 1,920			120			1,840	- 2,040
	Capital Expenditure ($m)
	- Production stripping			105 - 115			35			140	- 150			130	- 140			35			165	- 175
	(sustaining)
	- Production stripping											50	- 70				50	- 70
	(non-sustaining)
	- Sustaining capital			100 - 120			50			150	- 170			390	- 440			50			440	- 490
	- Major projects		105 - 135				105	- 135	890	- 990				890	- 990
	(non-sustaining)
	Total Capital			310 - 370			85			395	- 455			1,460	- 1,640			85			1,545	- 1,725
	Expenditure

Ongoing projects with potential for further upside24

Each of these exciting growth projects exceeds Newcrest's required investment return hurdle rates. Importantly, they are based only on Ore Reserves representing a discrete component of the potential total Mineral Resource endowment at each respective project.

As these studies progress to the Feasibility Stage, Newcrest has identified a number of optimisation opportunities within the project areas and across the broader business that will continue to be progressed to unlock further value.

A summary of these opportunities at Red Chris, Havieron and Telfer is as follows:

Red Chris:

• The PFS is considered by Newcrest to represent a "Stage 1" case for Red Chris' long term future, being based solely on the initial Mineral Resource as currently defined
• Upside exists from further exploration success and definition of the deposit, including East Ridge, with the mineralisation open in both directions as shown below25:

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

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