25 Nov

CEO Address to AGM

25 November 2021 Freehill Mining Limited – 2021 AGM CEO Address I’d like to join the Chairman in welcoming and thanking all shareholders , directors, staff and guests for their attendance today as well as all those joining us online . I would like to take this opportunity to reflect and touch on the key operational highlights for Freehill during the 2021 financial year. As a mining and exploration company , it’s important t hat as a collective we continue to plan for the future whilst als o remaining flexible in the face of changing circumstances . Following a dvice b ased on the best geophysics and drill results from earlier programs , the decision was made to drill the southern area of our El Dorado leases. As the results of the program were no t as we had hoped, the prudent decision was made to suspend drilling in order minimize cost and to re - focus resources and efforts into scaling up operations at Yerbas Buenas. While the majority of our focus is now on Yerbas Buenas, we expect work at El Dor ado to continue intermittently with the aim to better understand the leases and their future potential. With our focus now on development of the Yerbas Buenas magnetite project, we have made excellent progress to the point where we have now commenced phase one mining operations . Before phase one had begun , a prefeasibility st udy was undertaken to determine the potential to establish a purpose - bui lt plant for commercial scale production of the Yerbas Buenas ore. As a further step , our respected mining consultant Dean David of DD Consulting was commissioned to pro vide further validation o n the quality of our ore and offer a number of scenarios to deliver sustainable production . The approval of phase one mining resulted in the Company undertaking an extensive tender process with multiple potential production partners being assessed. At the end of a thorough review process, experienced local contractor MTN Gold SpA was chosen to pr ovide their turnkey mining, crushing and ore processing services at Yerbas Buenas . Providing all the necessary mining, crushing and processing equipment , MTN is in the process of finalising site preparation with the removal of waste rock from the proposed mine pit and set up of plant and equipment for mining and processing operations. We are very excited by the possibilities provided by the recommencement of production and are exploring multiple ways forward once the phase one ~5,000 tonne per month processing operation is fully up and running which is anticipated at the beginning of 2022 . Confidence is high that Yerbas Buenas will continue to develop into a low cost , long life and dependable mining and processing operation at which time we will then advance to larger - scale, phase two mining and processing operations . Additional opportunities are constantly being assessed by our geological team as and when they are presented. T hese opportunities are aim ed at creating further value for our shareholder s. As a mining and exploration company exploring these new prospects represents a fundamental par t of our risk management through the development of a portfolio of projects. With a newly established leadership team now in place we now have the expertise and bench strength to be able to execute on exploration and project development strategies. Our coordinated and structured approach to strengthening key positions across our leadership team resulted in the additions of key technical compet ence with solid experience in the mining sector. We have significantly strengthened the corporate and financial capability, mining and engineering skills and geological expertise of our leadership team with the appointment of senior geo logists in both Australia and Chile along . As a mining engineer with a wealth of experience , Jim Moore ’s appointment to the boa rd has added considerable value and wise counsel on our operational strategy . The continued support from our shareholders is always encouraging , and the board would like to make special thank s to our shareholders and specifically to Mr Gavin Ross for the support in exercising all options associated with the Company’s 2019 share placement. We are now well funded for the development of Yerbas Buenas and execut ion of phase one production plans and to progress development and future exploitation of the much larger Yer bas Buenas ore body. In closing , after another challenging 12 months with the ongoing COVID - 19 pandemic , 2022 is shaping up to be a better and indeed a transformative year. It has been a pleasure to serve as your CEO after takin g over in February and I’m excited about our prospects and look forward to continuing to make an impact as we move forward with YB’s development . Thank you. Paul Davies Chief Executive Officer
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