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ASX Release 23 February 2023 <br /> metals prices and government production restrictions related to the War Powers Act. Mining operations continued after <br /> the cessation of WWII and in its final year of operation, 1988, the London Mine JV controlled by Cobb Resources, Boulder <br /> Gold NIL and Ben Wright produced 12,000 ounces at an average grade of 15 grams per tonne. <br /> Aa- <br /> J, <br /> ' lS <br /> Figure 2:London mine-surface stockpiies outlined in red <br /> Transaction Details <br /> The proposed transaction initially involves a toll milling agreement with MW,whereby US$440,000 cash is provided(by MW <br /> and a private Australian investor) and MW agrees to pay an additional$700,000 to FCM upon completion of debt financing <br /> arrangements by MW. MW will operate as a standalone arm's length entity until debt financing requirements are met to <br /> the satisfaction of the lender. <br /> Under the toll treatment arrangement, MW will pay FCM a treatment fee of$825,000 per month.This fee is expected to <br /> be sufficient to fund the operating costs of the FCM milling operation,service existing debt and generate a modest surplus <br /> of US$150-200k per month. <br /> Upon approval of the funding,the subsequent transaction involves an acquisition by FCM,of the stockpile assets from MW. <br /> MW will then vend the London and Hock Hocking stockpiles into FCM in return for equity totalling 40% post completion. <br /> MW will secure US$5 million in new debt financing to be used for this venture'. <br /> Post completion,Dateline will hold 50%of the shares in FCM,with 40%held by MW and 10%by a private Australian investor. <br /> The transaction is subject to additional due diligence and is expected to be completed within 45 days. If the transaction is <br /> successfully concluded as planned,first ore is expected to be transported to Lucky Strike by June 2023. <br /> Proposed Production Plan <br /> The new financing will be used to acquire an ore sorter,three 40t haulage trucks and complete outstanding capital works <br /> on the processing plant. <br /> The stockpiles will be run through an ore sorter at the London mine site.The test work by Steinert ore sorting,and Kappes <br /> Cassiday and Associates indicate that the stockpile is amenable to ore sorting with over 80% of the material reporting to <br /> waste and there being a corresponding improvement in the grade.This sorted product will be transported to Lucky Strike <br /> and be processed at a rate of 220tpd for six days per week. <br /> The new management team will assess the potential to displace the London sorted product with high-grade ore from the <br /> Gold Links,thus allowing the operation to continue for longer and at a more stable output level. <br /> 1 This amount is in addition to the US$Sm being pursued by FCM and disclosed to the ASX on February 3,2023 <br />