Sihayo Gold Limited provided an update on the Company's metallurgical test work program exploring the use of high pH pre-leaching to improve recoveries in refractory mineralization for the Sihayo Starter Project (the "Project"). High pH Metallurgical Test Work Program: Test work has been conducted over the past 18 months to determine the effect of a high pH pre-leach on the gold recovery of Fresh and Transition material from the Sihayo deposits. The test work conditions mimicked a 12 hour pre-leach at high pH, with 40 kg/t of caustic, followed by a conventional 24 hour cyanide leach (CIL).

Sihayo has reported the results from the high pH test work conducted by ALS Metallurgy in Perth on four composites and 27 individual samples. These results showed an uplift in recoveries from an average 52.3% to 74.5% for Transition ore and an increase from 35% to 80% for Fresh ore. It has been determined that high pH pre-leaching has minimal impact on recoveries of Oxide Ore.

Following the initial test work at ALS, the Company initiated additional test work programs at PT Geoservices in Jakarta as well as at ALS. The aim of these further programs was toprovide additional data to revise the geometallurgical model used by the Company for generating Ore Reserves and production schedules for its feasibility studies, as well as develop operating parameters for implementing the caustic pre-leaching into the processing flow sheet, including optimizing leach times and caustic consumption rates. In total, the dataset comprises 55 individual Transition and 17 Fresh samples.

For Transition mineralization, the uplift in recoveries when applying caustic pre-leaching ranged from 8% to 61%, with an average uplift of 32% (in absolute percentage points). For Fresh mineralization, recovery uplifts ranged from 21% to 74% with the average of 45%. Caustic Usage: Optimization test work performed at a range of caustic addition rates found that a caustic addition of 40 kg/t was required to achieve the optimum gold recovery, taking into account the cost of the reagents.

Only 10 kg/t of the caustic is consumed during the leach, allowing the remainder to be recycled. Along with the increased gold recovery, another positive impact of the high pH leach conditions is a reduction in cyanide consumption of 0.3 kg/t. The net additional processing cost of high pH leaching is estimated to be USD 4.50/t of Transition and Fresh mineralization treated. Future Work: The Company has commenced further geometallurgical studies to investigate the application of multivariate analysis of the recovery and geological data.

The objective of these studies is to better understand and confirm the drivers for the metallurgical recovery increase identified for high pH pre-leaching. The results of this are expected by the end of August and would set the foundation for a revision of the Project's Mineral Resources and Ore Reserves estimates.