West Wits Mining : Wits Basin Scoping Study

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ASX Announcement and Media Release

9 March 2022

ASX Announcement and Media Release

Wednesday, 9 March 2022

Sustainable Profitability for WBP Development Confirmed Through

Financial Analysis

Cautionary Statement

The Scoping Study referred to in this announcement is a preliminary technical and economic study of the potential viability of developing the Witwatersrand Basin Project ("WBP") as a mine and was carried out to enable the Company to make a decision on proceeding to more definitive studies of the WBP. The Scoping Study referred to in this announcement is based on lower-level technical and preliminary economic assessments and is insufficient to support estimation of Ore Reserves or to provide assurance of an economic development case at this stage, or certainty that the conclusions of the Scoping Study will be realised by West Wits Mining Ltd.

A Definitive Feasibility Study ("DFS") was completed on the first stage of WBP's development, Qala Shallows area and released in a Public Report (ASX Announcement) on 2nd September 2021 with the declaration of an Ore Reserve of 3MT at 2.88g/t for 278,000oz1. This report incorporates the Qala Shallows DFS as Stage 1 of the WBP Scoping Study.

The Company has concluded it has reasonable grounds for disclosing a Production Target, given that the Scoping Study assumes that the Inferred material processed during the first ten years of life-of-mine (LOM) accounts for approximately 27% of total production, increasing to approximately 47% over the 27-year LOM.

There is a low level of geological confidence associated with Inferred Mineral Resources and there is no certainty that further exploration work will result in the determination of further Measured or Indicated Mineral Resources or that the Production Target or preliminary economic assessment will be realised.

The Scoping Study is based on the material assumptions outlined elsewhere in this announcement. These include assumptions about the availability of funding. While the Company considers all the material assumptions to be based on reasonable grounds, there is no certainty that they will prove to be correct or that the range of outcomes indicated by the Scoping Study will be achieved.

To achieve the potential mine development outcomes indicated in the Scoping Study, funding in the order of US$ 77 million will likely be required over the Life-of Mine. Investors should note that there is no certainty that the Company will be able to raise funding when needed, however the Company has concluded it has a reasonable basis for providing the forward-looking statements included in this announcement and believes that it has a "reasonable basis" to expect it will be able to fund the development of the WBP.

It is also possible that such funding may only be available on terms that may be dilutive to, or otherwise affect the value of the Company's existing shares. It is also possible that the Company could pursue other strategies to provide alternative funding options including project finance.

Given the uncertainties involved, investors should not make any investment decisions based solely on the results of the Scoping Study.

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ASX Announcement and Media Release

9 March 2022

HIGHLIGHTS

• Four phased scenarios ("Scenarios 1-4") identified through financial analysis for investment feasibility based on five development stages ("Stages 1-4")of the Witwatersrand Basin Project (WBP)
• Scenario 4 has been recognised as the optimal development model, delivering 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 1-4

1. All In Sustaining Cost ("AISC") of US$ 1,138/oz for production above 800m (72% of total production), increasing to US$ 1,198/oz including Stage 4 Qala Deeps (>800m)

• 1. Financial Modelling Results at US$ 1,750 Gold Price highlighted by:
  2. • Free Cashflow of US$ 511m (A$ 712m)5
     • NPV7.5 - Pre-taxof US$ 227m (A$ 316m)5 and Post-tax of US$ 160m (A$ 223m)5
     • IRR - Pre-tax of 33% & Post-tax of 29%
• Sensitivity analysis confirms profitability: 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
• Scoping Study results demonstrate the WBP's potential to be WWI's cornerstone project as the Company aims to become a mid-tier gold producer
• 1. 65,000oz pa - 25 Years - Average ROM Gold Production

1. 76,500oz pa - Years 5 - 16 - Average ROM Gold Production

• 1. 92,000oz - achieved in Year 6 - Maximum Annual ROM Gold Production
• Further upside potential, production schedule excludes:

1. Bird Reef Central (Stage 5) which is subject to the recently updated Uranium Exploration Target2, providing the potential opportunity to become a standalone gold and uranium project.

• 1. Main Reef and Bird Reef East areas constrained to <200m below surface, areas >200m below surface are to be introduced on completion of engineering studies to determine access below the water table
• Definitive Feasibility Study ("DFS") completed for Stage 1 and development commenced on the WBP's Early Mining Initiative at Qala Shallows, with first ore produced in Feb-22

West Wits Mining Limited (ASX:WWI, "West Wits", "WWI" or "the Company") Managing Director Mr Jac van Heerden said: "I'm very pleased to bring this report to shareholders. These excellent and robust results from the Scoping Study confirm our clear strategy to advance the WBP into a significant gold production operation targeting 65,000oz per annum over a long life of 27 years at highly attractive economics. The team has also commenced a new initiative, Project 200, which aims to increase production at WBP to 200,000oz per annum by increasing the Qala Adits throughput capacity. Stage 1 is well-advancedwith the completion of the Qala Shallows DFS and commencement of the Early Mining Initiative which aims to achieve early cashflow from estimated production of 5,000 - 8,500t ore per month from April 2022. This will provide an excellent production springboard as we ramp up Qala Shallows production and advance Stage 2 and 3 feasibilities. The recent Uranium Exploration Target highlights the potential for Uranium as a by-productto Gold at the WBP which could add significant value to our operation, benefiting the Company's growth and shareholder value."

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ASX Announcement and Media Release

9 March 2022

WBP's financial analysis was undertaken with a phased scenario approach, to frame the financial feasibility of investment for each of the target areas in the WBP as follows:

• Qala Shallows (Stage 1) - DFS complete and Early Mining Initiative commenced
• Main Reef Package (Stage 2)
• Bird Reef East (Stage 3)
• Qala Deeps (Stage 4)
• Bird Reef Central (Stage 5) is excluded from the analysis due to its lower recovered grade profile and standalone infrastructure costs. The recent restatement of the Uranium Exploration Target under JORC (2012) code3 sits within theBird Reef Central area and will be subject to further exploration and evaluation.

Of the four scenarios identified, Scenario 4 currently presents the most beneficial all-inclusive financial outcome which involves mining Stages 1-4,excluding the Bird Reef Central (Stage 5). However, the Company will continue to monitor the potential for reintroducing Brid Reef Central having particular regard to its sensitivity to a positive move in the gold price and the potential for remodelling that stage as a combined gold and uranium project.

A gold price of US$ 1,750 per oz was used with an exchange rate of ZAR 15 to US$.

Table 1 details the key baseline financial metrics for Scenario 4.

TABLE 1: WBP'S KEY FINANCIAL METRICS AT DIFFERENT GOLD PRICES

	METRIC			UNIT			US$			US$			US$			US$
					1,500/oz			1,750/oz			2,000/oz			2,250/oz
	Revenue		US$'m	2,226		2,597		2,968		3,339
	Free Cashflow		US$'m	276		511		743		977
	Pre-Tax Project NPV7.5		US$'m	93		227		361		495
	Post-Tax Project NPV7.5		US$'m	65		160		253		346
	Pre-Tax Project IRR	%		19%		33%		46%		58%
	Post-Tax Project IRR	%		17%		29%		40%		50%
	Operating Margin	%		38%		47%		54%		59%
	Profitability Index		ul	1.4		2.1		2.7		3.4
	Peak Funding Requirement		US$'m	93		77		61		54
	Payback Period		years	7		5		5		4

FINANCIAL MODELLING OVERVIEW

Results from Bara Consulting Pty Ltd's ("Bara") financial modelling on the WBP's Scoping Study ("the Report") confirm Scenario 4 as currently the optimal development model for the WBP 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 gold.

The Scoping Study provides an AISC of US$ 1,138/oz for stages 1 - 3 combined (production above 800m) which increases to US$ 1,198/oz with the inclusion Stage 4 (Qala Deeps), which is below 800m depth and ramps up from Year 14 as ore from the Qala Shallows is depleted.

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ASX Announcement and Media Release

9 March 2022

The WBP has the potential to build up to a peak production rate of over 92,000 oz per annum and the Report's production target averages 79,500oz from Years 5 to 16 as production reaches steady state from Stages 1, 2 and 3.

The Report provides free-cashflow of US$ 511m, a pre-tax NPV of US$ 227m and post-tax NPV of US$ 160m at a 7.5% discount rate, utilising the same gold price (US$ 1,750/oz) and rate of exchange (ZAR 15/US$) assumptions as the Stage 1 DFS1.

The Report's estimated free-cashflow of US$ 511m for the WBP represents an increase of 113% on the Stage 1 DFS of US$ 240m1 and a 51% increase from the post-tax NPV7.5 of US$ 106M1 to US$ 160m.

Key production metrics are detailed in Table 2 below.

TABLE 2: WBP'S KEY PRODUCTION METRICS

	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

Image 1 provides a graphical representation of the WBP's production profile and incremental contributions of each development stage identified by the Report.

Image 1: The WBP Scoping Study's ROM production schedule in annual ounces of gold by stage over

the WBP's 27-year LOM

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ASX Announcement and Media Release

9 March 2022

The Scoping Study identified four distinct reef packages to develop mining operations. The Qala Shallows and Qala Deeps areas, underpinned by the Kimberley Reef Package, still have extensive life left and form the backbone of the WBP. The other areas of operation will supplement additional tonnes through the Qala operations LOM.

DEFINING STAGES 1-5

Stage 1 - Qala Shallows ("Shallows")

A key factor in the Report's prioritisation of the Shallows for initial development is the Kimberley Reef's ore profile, where modelling demonstrates it is best suited to provide the optimal steady rate of production over WBP's mine life. In turn, production from Stage 1 would support the development of other distinct target areas during subsequent development phases. In addition, mine design undertaken details that the Qala Adit provides a feasible access point for early mining development and future mechanised mining operations, as well as access to the Stage 3 and Stage 4 Mineral Resource bodies.

A DFS has been completed over the Qala Shallows, whereas the remaining four stages are currently at Scoping Study level and will be subjected to individual DFS as WWI progresses.

The DFS forecast a pre-tax NPV7.5 of US$ 150 million1 (AU$ 209m)6 at a gold price of US$ 1,750 for Qala Shallows as a standalone project, which confirms the Scoping Study's finding that Qala Shallows forms the backbone of the WBP's development model.

At the Qala Shallows, the Kimberly Reef has the potential to ramp-up to a ROM peak annual production rate of approx. 60,000oz Au1. First ore is expected to be extracted 12-months from the commencement of development, building up to a production rate of 25,000 oz Au per annum after 30 months and reaching a full steady state production rate of 53,000 oz Au per annum after year four.

This will see Qala Shallows alone contributing projected steady state ROM production to WBP at a rate of 56,000oz Au per annum for approximately 11 years1.

An Early Mining Initiative, additional to the tonnes outlined in the DFS, has been launched at Qala Shallows over a six-month period from October 2021 to March 2022. First ore was produced in February 2022 and initial production aims to deliver 5,000t to 8,500t ore per month from April 2022.

As depicted in Image 1, Qala Shallows production will be augmented progressively with ore sourced from Main Reef (Stage 2) and Bird Reef East (Stage 3) to increase overall production rates. Once the Qala Shallows is depleted, production in that area will continue by starting Stage 4, Qala Deeps, utilising most of the existing infrastructure established and already funded from Stage 1.

Stage 2 - Main Reef Package ("MRP")

The MRP, which comprises the Main Reef and Main Reef Leader reef bands, is identified for the second stage of development and a priority target due to the higher ROM gold grade of 3.36g/t.

Access development to the MR and MRL starts in Year 2 of the project. The MR/MRL is a low tonnage, high grade resource and is planned to be mined at a moderate production rate of 150,000 tpa and used to blend with the lower grade Kimberley and Bird Reef ore to maintain ROM grade for the project.

The Report estimates the MRP section will provide 593,000t at a ROM grade of 3.36g/t Au for 64,000oz of additional production over years 4 to 7 combined.

Access to the MRP is planned from the existing No.6 shaft site. The next stage of feasibility for the MRP will also assess the potential of continuing development from the Bird Reef East (Stage 3) area, only a further 1,000m to the north, as an alternative access point to MRP for further optimisation.

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