ASX Announcement and Media Release

29 April 2022

Quarterly Activity Report

Reporting Period 1 January - 31 March 2022

HIGHLIGHTS

Witwatersrand Basin Project ("WBP")

  • The WBP has successfully produced its first ore and is enroute to becoming a large gold mine in South Africa1

  • All critical infrastructure has been completed at the WBP's Phase 1 Qala Shallows

  • Scoping Study2 results demonstrate the WBP's potential to be WWI's cornerstone project as the Company aims to become a mid-tier gold producer

    • o 65,000oz pa - 25 Years - Average ROM Gold Production

    • o 76,500oz pa - Years 5 - 16 - Average ROM Gold Production

    • o 92,000oz - achieved in Year 6 - Maximum Annual ROM Gold Production

  • Financial Modelling Results2 at US$ 1,750 Gold Price highlighted by:

    • o Free Cashflow of US$ 511m (A$ 712m)

    • o NPV7.5 - Pre-tax of US$ 227m (A$ 316m) and Post-tax of US$ 160m (A$ 223m)

    • o IRR - Pre-tax of 33% & Post-tax of 29%

  • Sensitivity analysis confirms profitability2: at a low gold price of US$ 1,500/oz, the project remains viable; at a gold price of US$ 2,250/oz, the NPV more than doubles

  • WWI has commenced a new initiative, Project 200, which aims to increase production at WBP to 200,000oz per annum

West Wits Mining (ASX: WWI, 'West Wits' or 'the Company') is pleased to present its latest quarterly report for the period ending 31 March 2022.

SOUTH AFRICA

Witwatersrand Basin Project ("WBP"); Central Rand (WWI: 66.6%), Gauteng Province

The WBP is set to deliver a 27-year Life-of-Mine ("LOM") with an estimated 16.1M tonnes at a Run of Mine ("ROM") grade of 3.11g/t Au for 1.61Moz of Gold from mining Stages 1-42.

First ore produced at Qala Shallows - Phase 1 of WBP

Qala Shallows is stage one of four stages at the WBP, located on the Kimberly Reef package in the Witwatersrand Basin, South Africa. In February 2022, West Wits delivered its first ore at Qala Shallows as part of its Early Mining Initiative1. (Image 1)

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29 April 2022

IMAGE 1: FIRST ORE AT WITWATERSRAND BASIN PROJECTThe Early Mining Initiative was determined by WWI as an opportunity to establish a small-scale mining operation, with the objective to proof the designed mining method to mine areas already exposed at WBP. The ore tonnes from the Early Mining Initiative will supplement the tonnes from the larger mining operation as outlined in the Qala Shallows Definitive Feasibility Study ("DFS"). The DFS reported a 17-year LOM project for the Stage 1 Qala Shallows alone and 7.3MT at 2.81g/t recovered grade for 663,000oz Recovered Gold for WBP's initial stage3.

The delivery of the first ore signals a major milestone for WWI as the Company progresses development of the newest gold mine to come online in South Africa, at a time when gold is trading at historic high prices.

Stage 1 Qala Shallows Project Progress By the end of this reporting period:

  • All critical infrastructure was completed

  • The decline and box cut rehabilitation was completed

  • The on reef underground access is progressing

  • The Early Mining Initiative delivered first ore

Figure 1 outlines project progress and Image 2 showcases the infrastructure on site.

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ASX Announcement and Media Release

29 April 2022

FIGURE 1: QALA SHALLOWS PROJECT PROGRESS Qala Shallows Boxcut

LOM Decline System

Existing Decline Slyping and Rehabilitation

Early Stoping Panels EstablishmentTwo-level Ore Drive

IMAGE 2: WITWATERSRAND BASIN PROJECT INFRASTRUCTURE

  • 1. Change Houses and Lamp Room

  • 2. Office Complex

  • 3. Temporary Workshop

  • 4. Recently Rehabilitated Box Cut

  • 5. Run of Mine Stockpile

  • 6. Generators and Utilities Infrastructure

7.

Ventilation Shaft

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29 April 2022

Along with the completion of the rehabilitation of the box cut and the decline, WWI's teams established three decline faces positioned to produce further ore. The Company has decided to review its contract with the mining contractor, as the project is moving towards increased production suited to a production rates-based contract as opposed to a cost plus. The current rental mining fleet is at present underperforming, part of the review process will be to procure a new fleet of underground mining equipment to support the ramp up of development and ore tonnes as outlined below (refer to Figure 2).

West Wits' Project & Engineering team reviewed the 2-year mine schedule for geological and structural information obtained during the early works program. The review resulted in a more linear ramp up of production into the DFS development and production schedule compared to the original early works mining initiative which dipped as the decline was developed. In addition to a more linear increase in production, the updated mine plan provides an incremental 70,000t of ore over the initial 2-year period (refer to Figure 3) as production ramps up to 50,000t/month in year 43. In both of the below tables the orange line indicates the previous schedule, and the blue line shows the build up after the refurbishment period. As such, the advancement of development achieved during the initial phase now allows for a faster ramp up of production by accessing more of the formal mine plan stopes earlier than was planned.

FIGURE 2: UPDATED PRODUCTION SCHEDULE VERSUS EARLY MINING SCHEDULE

FIGURE 3: UPDATED CUMULATIVE PRODUCTION SCHEDULE VERSUS EARLY MINING SCHEDULE

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29 April 2022

Robust results from WBP Scoping Study Technical and Economic Assessment

In March 2022, the Company released the results of its Scoping Study for the WBP. It confirmed West Wits' clear strategy to advance the WBP into a significant gold production operation. Results from

Bara Consulting Pty Ltd's financial modelling on the WBP's Scoping Study ("the Report") confirmed

Scenario 4 (chosen from four phased scenarios) as the optimal development model to transform West Wits into a long-term gold producer, with average steady state annual ROM production of 65,000oz for 25-years, over a 27-year LOM for 1.6Moz of gold2. Table 1 outlines the key production metrics.

TABLE 1: WBP'S KEY PRODUCTION METRICS2

WBP - SCOPING STUDY - PRODUCTION DATA

SCENARIO 4

LOM (Construction to Relinquishment)

27 Years

Total Years of Production1

25 Years

Total Production (Ore Tonnes)

16,150,000

Max Production Rate (Ore Tonnes)

890,000tpa

Run-of-Mine ("ROM") Grade Au (Average)

3.11g/t Au

LOM Gold Produced ("ROM")

1,615,000oz

Metallurgical Recovery Au (Overall)

92%

Average Annual Gold Production1

65,000oz

Max Gold Production (Year 6)

92,500oz

WBP's financial analysis framed the financial feasibility of investment for each of the target areas in the WBP as follows:

  • Qala Shallows (Stage 1) - DFS completed and Early Works Program commenced

    Qala Shallows DFS projected steady state ROM production at a rate of 56,000oz Au per annum for approximately 11 years3.

  • Main Reef Package (Stage 2)2

    Estimated to provide 593,000t at a ROM grade of 3.36g/t Au for 64,000oz of additional production over years 4 to 7 combined.

  • Bird Reef East (Stage 3)2

    Estimated to provide 897,000t at a ROM grade of 3.34g/t Au for 96,000oz of additional production over years 6 to 12 combined.

  • Qala Deeps (Stage 4)2

    Estimated to provide 7.3Mt at a ROM grade of 3.11g/t Au for 732,000oz of additional production over years 13 to 27 combined.

  • Bird Reef Central (Stage 5) is excluded from the analysis due to its lower recovered grade profile and standalone infrastructure costs. The Bird Reef has a declared JORC gold Mineral Resource of 1.38Mt Ore at 2.66g/t for 118,000oz4 Au. The restatement of the Uranium Exploration Target under JORC (2012) code5 sits within the Bird Reef Central area and will be subject to further exploration and evaluation.

Image 3 provides a graphical representation of the WBP's production profile and incremental contributions of each development stage identified by the Report.

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West Wits Mining Limited published this content on 29 April 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 April 2022 02:51:05 UTC.