Queensland Pacific Metals Ltd. announced the results of its Advanced Feasibility Study ("Feasibility Study") for Stage 1 of the TECH Project and a Scoping Study for Stage 2 expansion of the TECH Project. As part of QPM's ongoing discussions with these debt financiers, the Feasibility Study is sufficiently advanced to commence formal due diligence with an Independent Technical Expert ("ITE"). This body of work will begin imminently in parallel with QPM continuing to undertake engineering work on certain aspects of the plant to improve accuracy.

These aspects primarily concern the KBR engineering package, which includes iron hydrolysis, aluminium removal and nitric acid recovery and recycle. QPM, Hatch and KBR are working as an integrated team to optimise the design and minimise technical risk in these areas. In addition, value engineering (cost reduction) initiatives will also be undertaken across the Project.

Contingency in the capital estimate has currently been assumed at 10%. Following the KBR engineering package work and value engineering, a detailed contingency estimate will be undertaken using the standard Quantitative Risk Assessment methodology. In preparing the capital estimate, QPM believes it has been undertaken at the peak of global manufacturing pricing.

This is based on discussions with key equipment vendors who are seeing significant reductions in international producer price indices . Before reaching financial close for the debt package, QPM will update the capital estimate to ensure it represents current market information and will sign lump sum EP contracts with the key technology vendors. Easing global inflation, particularly continued reductions in equipment manufacturing costs in the near term, will likely reduce the capital cost of constructing the TECH Project.

QPM has previously highlighted the strong potential for expanding the TECH Project following successful Stage 1 commercialisation. This is based on availability of limonite ore, gas supply, supporting infrastructure in Lansdown, and other factors. In addition, the execution of the offtake agreement with General Motors for 100% of nickel and cobalt production for the life of project from a Stage 2 expansion further reinforces this potential.

In addition, QPM and Hatch have undertaken a Scoping Study on the Stage 2 expansion of the TECH Project using the following key assumptions: For simplicity, Stage 2 is at the same scale as Stage 1, with the same grade of ore being processed; HPA production levels are not increased as part of the expansion, but this is possible if there is strong market demand; No utilisation of existing rail infrastructure for logistics - work will be undertaken in the future to assess this opex-saving opportunity; and Co-location of Stage 2 expansion next to Stage 1, within the Lansdown precinct. Additional opportunities identified but not quantified and considered in the financial analysis of the Stage 2 expansion include: Utilisation of rail for logistics of ore and products; Gas supply chain savings; On-site production of ammonia for TECH Stage 1 and 2 use; Potential to export any excess power generated to the grid; and Further plant optimisation by increasing the scale of Stage 2 after the operational experience gained from Stage 1. The Scoping Study capital estimate has an accuracy of ±35% and an operating cost accuracy of ±25%.