FireFly Metals Ltd press release

Economic study demonstrates scale, grade, long life, growth potential and robust financial returns

2026-08-25

TSX - Toronto Stock Exchange · Copper · Gold · Silver · Cobalt · Vanadium · Titanium · Australia · Technical Studies

Preliminary Economic Assessment completed for the Green Bay Ming Mine Copper-Gold Project demonstrates positive economics across 1.8Mtpa base case and 4.6Mtpa alternative

Green Bay Copper-Gold Project, Canada Preliminary Economic Assessment and Mineral Resource Update

KEY POINTS

Preliminary Economic Assessment (PEA)1into the restart of production at the Green Bay Ming Mine Copper-Gold Project demonstrates a robust large-scale, multi-decade operation FireFly’s study establishes Green Bay’s potential as one of the best undeveloped copper projects in the world based on its high-grade Resource, production profile, growth outlook and superior financial returns FireFly is in a strong financial position comprising existing cash and liquid investments of A$183m2, anticipated equity raise proceeds of up to A$190m, and abundant scope to support a conventional debt component The PEA considered two production scenarios:a 1.8Mtpa (4,800tpd) base case and a larger 4.6Mtpa (12,500tpd) alternative, with key results as follows: 1.8Mtpa (4,800tpd) base case After tax Net Present Value (NPV7%) of ~A$2.2Band Internal Rate of Return (IRR) of 41%over an initial ~32 year mine life Annual projected averageproduction of 50kt copper equivalent (CuEq) metal over a 14-year period at steady state after ramp up to peak at 60kt of CuEq metal per annum ~A$290M post-tax annual free cash flow over a 15-year period (LOM ~A$5.4B post-tax) C1 Cash Costs3of US$2.05/lb CuEqin the lower quartile (US$1.17/lb Cu net of by-product credits) Rapid paybackof just 1.9 years Released from further Environment Assessment; All environmental permits received to commence select early works Low Initial capital is estimated at A$513M4(net of refundable Canadian tax credits of ~A$58M)

4.6Mtpa (12,500tpd) alternative After tax NPV7%of ~A$3.0B andIRR of 39% over an initial ~22 year mine life Annual projected average production of ~90kt CuEq metal over an 11-year periodat steady state after ramp up including 6 years whereannual production averages ~100kt CuEq. Production is expected to peak at ~106kt of CuEq metal per annum ~A$550M post-tax annual free cash flow over the same 11-year period (LOM - ~A$6.5B post-tax) C1 Cash Costs of US$1.84/lb CuEq in the lower quartile (US$1.02/lb CuEqnet of by-product credits) Rapid payback of ~3.7 years Expansion capital is estimated at A$476M5(net of refundable Canadian tax credits of A$53M), expected to be mostly funded from cash flow from the 1.8Mtpa base case

Based on the strong economics defined in the PEA, work has now commenced to rapidly progress the Feasibility Study, which is expected to be delivered in Q1 2027 and is targeted to support a Final Investment Decision (FID) and construction in H1 2027 Regulatory approvals have been received to commence early works prior to FID. This will fast-track construction timelines on the 1.8Mtpa case with potential for first concentrate production in mid-2029 The Green Bay Copper-Gold Project is now underpinned by a revised independent Mineral Resource Estimate (MRE) that stands at 60.2Mt @ 2.4% CuEq in the Measured and Indicated (M&I) Resource categories and a further 23.5Mt @ 2.5% CuEq of Inferred Mineral Resources The high-grade core zone (Core Zone) now stands at 18.1Mt @ 4.3% CuEq in M&I plus a further 7.0Mt @ 4.4% CuEq in Inferred Mineral Resource, and remains open Importantly, 77% of the Ming Mine Mineral Resource is in the higher-confidence M&I category Growth remains central to the FireFly strategy. Continued expansion of the upper mine level high-grade Volcanogenic Massive Sulphide (VMS) and Core Zone has the potential to significantly extend high-grade production beyond peak years and further enhance project economics earlier in the mine life. Six drill rigs continue underground focused on immediate high-grade extensions for further Resource growth The mineralisation at Ming remains open at depth with a large conductive geophysical anomaly beyond the deepest drillhole that returned 49m @ 6.1% CuEq (See ASX announcement dated 16 October 2025) On a district scale, drilling has commenced on several high-priority historical VMS copper and gold mine targets that sit within only 5km of the Ming Mine. It is anticipated that a maiden Resource will be established at the first target in the coming quarter. Furthermore, surface exploration continues regionally with three rigs on numerous surface VMS targets

Equity Raising

FireFly is undertaking a A$180 million (before costs) equity raising at an issue price of A$1.78 (C$1.76) per share via a single-tranche ASX institutional placement and Canadian bought deal financing (See ASX Announcement dated 25 August 2026 titled ‘FireFly Bolsters Funding for Project Development and Growth’) FireFly also intends to undertake a non-underwritten Share Purchase Plan to raise up to an additional A$10m (before costs)_(See ASX Announcement dated 25 August 2026 titled ‘FireFly Bolsters Funding for Project Development and Growth’)_ The raising, combined with ~A$183 million6of existing cash reserves and liquid investments and initial advice that the debt carrying capacity of the 1.8Mtpa base case scenario could support commercial debt in excess of US$350 million (A$500 million), puts FireFly in a strong financial position, particularly when viewed against the estimated initial project capital cost of A$513 million7

FireFly Managing Director Steve Parsons said: “The findings of the economic study prove that Green Bay is one of the best undeveloped copper projects in the world based on a range of key metrics, ranging from scale and production profile through to financial returns and growth.

“The base case of 50,000t a year generates strong returns and we have a clear pathway to double that. And that is before allowing for the growth we aim to unlock through our ongoing drilling programs in the high-grade areas of the mine and the highly prospective regional exploration program now cranking up.

“The project simply ticks every box and is clearly poised to generate outstanding returns for all our stakeholders. The highly enviable nature of Green Bay is reflected in the fact that we have just launched a A$180m share placement across the ASX and TSX exchanges.

“Once in production, Green Bay has the potential to be one of the biggest copper mines in the world outside those owned by the multi-nationals and diversified mining giants. This means FireFly offers investors virtually pure copper exposure via an asset with genuine world-scale in a tier-one location.

“Our scale, our concentrated copper exposure and our outstanding growth outlook is a very rare combination in global markets. It is unique on the ASX. FireFly offers concentrated exposure to high-grade copper production in a tier-one location with ongoing growth potential”.

PERTH, Australia and TORONTO, Canada, Aug. 24, 2026 (GLOBE NEWSWIRE) -- FireFly Metals Ltd (ASX, TSX: FFM)is pleased to announce the results of the Green Bay Ming Mine Preliminary Economic Assessment / Scoping Study (PEA) and an updated Mineral Resource Estimate (MRE) for the Green Bay Ming Mine Copper-Gold Project (Project).

The results of the PEA demonstrate that the Project is a large-scale, long-life copper-gold project that combines high-grade mineralisation, robust economics, and a substantial Resource endowment to deliver sustained and substantial production over multiple decades.

Two compelling development considerations are presented in the PEA, one contemplating a base case processing 1.8 million tonnes per annum (Mtpa) and a larger scale 4.6Mtpa operation case. Both scenarios returned positive and robust economic results.

The study has only taken into account the Ming Deposit Mineral Resource Estimate and does not include anything outside of the immediate Ming area such as Little Deer or any of the other regional targets and historical copper-gold VMS mines that still remain to be drill tested by FireFly such as Rambler, East mine, Main mine, Tilt Cove or Nugget Pond. These areas will be targeted for additional growth throughout 2026/27.

The PEA is based on a high quality and robust Mineral Resource Estimate with the 1.8Mtpa case supported by 79% in the higher confidence Measured and Indicated (M&I) Mineral Resource categories over the 32-year life of mine, including 89% over the first 10 years. The 4.6Mtpa case is underpinned by 80% M&I over the life of mine plan.

Given the overwhelmingly positive results from the PEA study, the Company will now work towards completing Feasibility level analysis targeted to be completed in Q1 2027 and followed by a Final Investment Decision (FID) shortly thereafter.

Discount rate and commodity prices

The Project economics were estimated using conservative commodity price assumptions that are materially below prevailing spot market prices as at 18 August 2026 (Spot Price)8. The study utilised:

copper price of US$5.00/lb, 24% below current Spot Price of US$6.60/lb; gold price of US$3,500/oz, 19% below the Spot Price of US$4,335/oz; and silver price of US$44/oz, 30% below the Spot Price of US$63/oz.

A discount rate of 7% was applied in the NPV analysis, which has a material impact on the valuation of a long-life, multi-decade project.

Globally recognised technical services consultants generated the capital and operating costs based on known similar industry benchmarking costs.

Appropriate contingencies have been applied to all capital cost estimates.

Green Bay Mining & Processing Operations

The PEA was prepared with contributions by sector leading independent consultants including Ausenco, Stantec, Knight Piésold, Entech Mining, WSP, T Engineering, Egis Canada and Gemtec.

Detailed review of numerous mining methods was completed as part of the PEA. Industry-standard Long Hole Open Stoping (LHOS) with paste backfill was selected as the preferred mining method for both the 1.8Mtpa (4,800tpd) base case and the alternate 4.6Mtpa (12,500tpd) option. Utilising a combination of transverse LHOS and longitudinal LHOS provided the best economic outcomes by balancing productivity levels and minimising dilution.

Haulage options for the operations differed between the two scenarios presented in the PEA. The 1.8Mtpa (4,800tpd) base case utilised truck haulage over the life of mine. A bypass decline around the narrower sections of the historic decline has been factored into the cost estimates. This allows larger 63t trucks to be used. Simulation of truck haulage conducted by external contractors on the design demonstrated that it is feasible for the mine to produce 1.8Mtpa via trucking.

The 4.6Mtpa (12,500tpd) case requires a haulage shaft to achieve the upscaled productivity. A 7.6m diameter shaft is envisioned that can hoist 12,500tpd. A geotechnical hole completed by the Company in the proposed shaft position shows exceptional ground conditions. Costing estimates included in the PEA for the 4.6Mtpa case have been provided by world-leading Canadian shaft specialists Redpath Mining.

Detailed analysis of mine ventilation has been conducted by specialist consultants BBE Group. Two exhaust raise bores have been factored into the mine design. Vent simulations show these provide sufficient volumes of air for the entire Life of Mine (LOM) in both scenarios.

Development of the mine is significantly fast-tracked with lower upfront capital expenditure, leveraging more than A$250M of existing site infrastructure, including over 20km of accessible underground development.

Extensive metallurgical testwork completed at SGS Lakefield in Canada shows the ore-grade material has favourable physical properties (strength, grindability, abrasiveness etc.) and is amenable to high recoveries of copper and precious metals via industry standard processes as demonstrated by the previous operation.

The proposed processing plant utilises a standard simple flow sheet to extract copper and precious metals into a concentrate. Comminution is achieved through a standard jaw crusher followed by a Semi Autogenous Grinding (SAG) mill and a Ball Mill. Two stage flotation (rougher and cleaner) provide exceptional recoveries and production of a high-grade concentrate for shipping (21-28% Cu, 6-12g/t Au). Precious metal recovery is further enhanced by the collection of a pyrite tail from the cleaner flotation which is leached and a doré produced on site. Based on a combination of test work and historical performance, recoveries are anticipated to be >98% for copper and >80% on precious metals (gold and silver). There are no deleterious elements in the concentrate. The concentrate will be shipped from a port located ~6km from the mine.

The mill has been designed by Ausenco in a modular fashion allowing for future growth and expansion. To expand from 1.8Mtpa to 4.6Mtpa requires a simple twinning of the circuit and installation of additional crushing capacity at the front-end of the process.

Approximately 55% of the tailings will be used in the paste backfill and stored underground whilst providing geotechnical stability to allow for total extraction of the mineralisation. The remainder of the tailings will report to a new Tailings Management Facility (TMF) that has been designed to international standards by Knight Piésold. The TMF capacity is sufficient for LOM production for both scenarios. Further TMF expansion options are available should the LOM continue to grow with future mine extensions.

Copper Marketing & Concentrate

Ocean Partners UK Ltd. (OP) were engaged to provide specialist marketing advice regarding maximising value generated by the Green Bay concentrate.

For the 1.8Mtpa (4,800tpd) base case the Project is expected to produce 3,723kt of copper concentrate (dry) that equates to ~132kt per annum over the LOM. Based on concentrate test work, the projected average concentrate grades are 24.5% Copper, 6g/t gold and 54g/t silver.

A portion of the gold is captured in the cleaner flotation pyrite tail and leached on-site. Gold grades are locally higher early in the mine plan and correlate with VMS mill feed.

The concentrate is regarded as a clean, medium-grade copper-gold concentrate.

OP forecast a strong market for the high-quality concentrate produced by Green Bay. With smelting capacity currently exceeding mine supply, OP see negative treatment and refining charges (TCRC) continuing to at least 2030 and costs remaining below US$30/dmt until 2036.

OP note that the proximity of Newfoundland and Labrador to European shipping routes and Canadian smelters make these facilities the logical options for maximising concentrate value. However, the Company will continue to engage with Asian trading groups who remain keen to secure the concentrate.

The Company has not committed to any offtake agreements and is considering potential pre-payments as a non-dilutive funding opportunity.

Resource Growth

The Ming Deposit August 2026 MRE (Table 1) was prepared in accordance with the JORC Code (2012 Edition) and NI 43-101 by independent consultants, WSP Canada Inc.

The combined MRE (Table 3) for the Green Bay project has grown to 60.2Mt @ 2.4% CuEq in M&Iand 23.5Mt @ 2.5% CuEq in Inferred. All additions come from the Ming Deposit with no change to the Little Deer MRE (Table 2).

The Ming Deposit Mineral Resource has grown to 57.3Mt @ 2.4% CuEq in M&Iand 17.3Mt @ 2.8% CuEq in Inferred. Infill drilling completed at Ming resulted in the M&I increasing by 21% since the previous updates. Copper equivalent grade also increased by 22% driven primarily by infill drilling of the high-grade core and high-grade VMS zones.

The high-grade core and VMS now totals 18.1Mt @ 4.3% CuEq in M&Iplus 7.0Mt @ 4.4% CuEq in Inferred. This zone drives the high production years in the mine schedule and remains open with the deepest hole into the deposit intersecting 49.0m @ 6.1% CuEq.

Ming Deposit Mineral Resource Estimate

| MING DEPOSIT | TONNES | COPPER | GOLD | SILVER | CuEq | | | | | (Mt) | Grade | Metal | Grade | Metal | Grade | Metal | Grade | | | | (%) | (‘000 t) | (g/t) | (‘000 oz) | (g/t) | (‘000 oz) | (%) | | | Measured | 3.5 | 1.5 | 52 | 0.2 | 20 | 1.3 | 147 | 1.67 | | Indicated | 53.8 | 1.9 | 1,041 | 0.5 | 878 | 4.5 | 7,707 | 2.49 | | TOTAL M&I | 57.3 | 1.9 | 1,093 | 0.5 | 899 | 4.3 | 7,853 | 2.44 | | Inferred | 17.3 | 2.0 | 344 | 0.7 | 404 | 6.3 | 3,522 | 2.77 |

Table 1: August 2026 Mineral Resource Estimate for the Ming Deposit.

Little Deer Mineral Resource Estimate

| LITTLE DEER | TONNES | COPPER | GOLD | SILVER | CuEq | | | | | (Mt) | Grade | Metal | Grade | Metal | Grade | Metal | Grade | | | | (%) | (‘000 t) | (g/t) | (‘000 oz) | (g/t) | (‘000 oz) | (%) | | | Measured | - | - | - | - | - | - | - | - | | Indicated | 2.9 | 2.1 | 62 | 0.1 | 9 | 3.4 | 320 | 2.3 | | TOTAL M&I | 2.9 | 2.1 | 62 | 0.1 | 9 | 3.4 | 320 | 2.3 | | Inferred | 6.2 | 1.8 | 110 | 0.1 | 10 | 2.2 | 430 | 1.8 |

Table 2: Little Deer Mineral Resource Estimate as at November 2025.Note that this MRE remains unchanged from the previous MRE.

GREEN BAY TOTAL MINERAL RESOURCE ESTIMATE

| GREEN BAY | TONNES | COPPER | GOLD | SILVER | CuEq | | | | | TOTAL MRE | (Mt) | Grade | Metal | Grade | Metal | Grade | Metal | Grade | | | | (%) | (‘000 t) | (g/t) | (‘000 oz) | (g/t) | (‘000 oz) | (%) | | Measured | 3.5 | 1.5 | 52 | 0.2 | 20 | 1.3 | 147 | 1.67 | | Indicated | 56.7 | 1.9 | 1,103 | 0.5 | 887 | 4.4 | 8,027 | 2.48 | | TOTAL M&I | 60.2 | 1.9 | 1,155 | 0.5 | 908 | 4.2 | 8,173 | 2.43 | | Inferred | 23.5 | 1.9 | 454 | 0.6 | 414 | 5.2 | 3,952 | 2.51 |

Table 3: Green Bay total Mineral Resource Estimate.

1. FireFly Metals Ltd Mineral Resource Estimates for the Green Bay Copper-Gold Project, incorporating the Ming Deposit and Little Deer Complex, are prepared and reported in accordance with the JORC Code 2012 and NI 43-101. 2. Mineral Resources have been reported at a 1.0% copper cut-off grade. 3. Metal equivalents for the Mineral Resource Estimates have been calculated at a copper price of US$10,626/t, gold price of US$3,587/oz and silver price of US$50.22/oz. Metallurgical recoveries have been set at 95% for copper and 85% for both gold and silver. These assumptions are made of the basis of historical production at the Ming Mine and additional metallurgical test work. Copper equivalent was calculated based on the formula: CuEq(%) = Cu(%) + (Au(g/t) x 0.97106) + (Ag(g/t) x 0.01360). 4. Totals may vary due to rounding.

Ongoing Resource Growth and Regional Discovery Exploration

Growth and exploration remain a pivotal component of the FireFly strategy at Green Bay. Extensions and discoveries of additional high-grade VMS mineralisation have the potential to have a material positive impact on the mine plans outlined in the PEA (Figure 1). Six underground drill rigs will remain underground focusing on step out high-grade VMS growth, infill for high grade M&I resource conversion as well as down plunge extensions and potential shallow up dip extensions.

The Company anticipates releasing its maiden Ore Reserve estimate with its next Mineral Resource Estimate update which, along with the DFS, the Company plans to complete in Q1 2027.

In addition, the Company is currently drill testing several high-priority shallow historical VMS copper and gold mines that sit within 5km of the Ming Mine. It is anticipated that a maiden Resource will be established on the first target prior to the Q1 DFS.

Furthermore, surface exploration will continue with three rigs on surface exploring the numerous geochemical and geophysical targets generated since acquisition across the Ming district, Rambler regional, Tilt Cove regional and Little Deer regional areas.

Environmental, Community and Early Works

As previously announced, the Company has satisfied the initial conditions of Environmental Assessment (EA) for the 1.8Mtpa base case which is a significant regulatory milestone in the Canadian permitting framework and should accommodate a faster route to first production. Regulatory approval has been received to commence select early works prior to FID. This includes seasonal works, camp construction and other critical surface infrastructure upgrades. All permits required for full construction are expected before the end of Q2 2027.