Polymetal and MAC Forge Alliance for Cobar Mine Development

Polymetals Resources Ltd (ASX: POL) (Polymetals or the Company) announces the formation of a non-exclusive strategic alliance with Metals Acquisition Limited (ASX: MAC) to advance synergies and extract greater value from the Endeavor and CSA Copper Mines, both located in the Cobar Basin, NSW Australia.

MAC possesses and manages the high-grade CSA Copper Mine, situated 5 km north of Cobar in New South Wales. Polymetals' high-grade Endeavor Silver Zinc mine is located 30 km north of CSA.

The partnership between MAC and POL will enable both entities to leverage synergies between their adjacent mines. The collaboration is focused on achieving improved operational and financial results by boosting mine production at both sites.

Metals Acquisition - Investment Terms

Tranche 1 - MAC will make an initial investment of A$2.5 million at a price of A$0.35 per share, acquiring an initial 4.31% interest in POL. The Company will issue 7,142,857 fully paid ordinary shares to MAC or its nominee, utilizing the available Listing Rule 7.1 placement capacity.

Tranche 2 - MAC intends to inject an extra A$2.5 million at the matching share price, pending fulfillment of specific conditions precedent, which include:

• Execution of a tolling agreement between POL and MAC for the treatment of zinc ore delivered by MAC to POL, with a treatment charge set at costs plus 35%;

• POL securing adequate funding to restart the Endeavor mine and processing plant;

• Conclusion of a Water Offtake agreement between POL and MAC, permitting MAC to draw up to 150ML of water annually from the Endeavor mine pipeline for a period of 4.5 years. MAC will have the option to extend this agreement beyond the initial term, subject to negotiation between the parties;

• Obtaining necessary third-party consents, including from MAC's secured lenders and Glencore Plc, for the contemplated transactions.

Once MAC holds 7% of the issued shares in POL, it will have the right to appoint one director to the POL board.

Polymetals Resources Ltd (ASX: POL) is an Australian mining and exploration firm boasting a project portfolio ripe with potential for uncovering and developing both precious and base metal resources. Anchored by its cornerstone asset, the Endeavor Silver Zinc Lead Mine, situated among the trio of significant mines in Cobar, NSW, Australia, Polymetals aims to establish itself as a sustainable, enduring, and lucrative producer of base and precious metals. With a robust exploration portfolio geared towards organic expansion, the company is driven by development initiatives and consistently evaluates strategic acquisition prospects.