Advance Metals Secures Full Ownership of Myrtleford and Beaufort Gold Projects

Advance Metals Moves to Lock In 100% of Victorian Gold Projects as Drilling and Metallurgy Deliver

Advance Metals Limited (ASX: AVM) has announced a pivotal strategic move, agreeing to acquire the remaining 20% interest in its high-grade Myrtleford and Beaufort gold projects in Victoria — a decision driven directly by a series of exceptional exploration and metallurgical results at the Happy Valley deposit. Advance Metals full ownership of Myrtleford and Beaufort gold projects represents a significant milestone for the company as it looks to consolidate its position in one of Australia's most historically productive goldfields.

The amended agreement brings the total acquisition cost to C$4.0 million for 100% ownership, structured in tranches over three years and payable in either AVM shares or cash at the company's discretion. The deal adds an additional C$1.0 million consideration on top of the original C$3.0 million agreement executed in early 2025.

Perhaps equally significant is what prompted the move: gold recoveries of up to 96% from initial gravity testwork, ultra-high-grade drill hits including 7.5 metres at 55.0 g/t Au and grades peaking at 305.8 g/t Au, and a growing understanding of what appears to be a district-scale gold system across a 15-kilometre regional trend.

"Moving towards 100% ownership of Myrtleford and Beaufort is a logical and value accretive step for Advance following the exploration success we have delivered at Happy Valley."

— Dr. Adam McKinnon, Managing Director and CEO, Advance Metals

The Deal Structure: Flexibility Built In

The amended agreement replaces the original December 2024 arrangement and gives Advance full ownership of E79 Resources Pty Ltd, the legal holder of the Myrtleford and Beaufort tenements. A first tranche of C$400,000 was already paid on 27 March 2025 (the "Original Payment Date"). The remaining C$3.6 million follows a staged schedule:

Key structural features that protect AVM's financial flexibility include:

• Payment choice: Advance may elect to satisfy any tranche in cash (Canadian dollars) rather than shares, entirely at its sole discretion
• Acceleration option: Advance may accelerate any tranche payment ahead of schedule
• Shareholder approval: Any share-based tranche (beyond the immediate issuance) will require shareholder approval at the relevant time
• Royalty: A 1% Net Smelter Return (NSR) royalty on future gold production from the project will be granted to the vendor, consistent with the original agreement

This structure is notably shareholder-friendly — by spreading payments over three years and retaining the option to pay in cash or shares, Advance preserves balance sheet flexibility while securing a material increase in project exposure.

What Is Gravity Recoverable Gold — and Why Does It Matter Here?

Gravity Recoverable Gold (GRG) is a metallurgical testing method that measures how much gold in a sample can be extracted using gravity-based separation techniques — essentially using the physical weight difference between gold and surrounding rock to concentrate the metal.

Gravity processing is typically one of the simplest, lowest-cost methods of gold recovery. Unlike more complex hydrometallurgical processes (e.g., cyanide leaching or pressure oxidation), gravity circuits are mechanically straightforward, have lower capital requirements, and generate fewer environmental concerns.

Why it matters for Happy Valley: If a significant proportion of the gold can be recovered via gravity alone, this dramatically improves the economics of any potential future processing scenario, particularly for a high-grade, narrow-vein system like Happy Valley.

Glossary of Key Terms

Metallurgy Confirms the Economic Case: 96% Gold Recovery

Advance recently completed the first modern metallurgical testwork ever conducted on Happy Valley gold mineralisation, undertaken by ALS Metallurgy at their Burnie, Tasmania facility using a KC-MD3 Knelson concentrator.

Three composite samples were drawn from drillholes AMD001, AMD003, and AMD009 — covering the main reef positions within the deposit. The results were outstanding across all three samples:

Key takeaways from the GRG assessment include:

• Coarse fraction (Stage 1) recoveries ranging from 69% to 85% — meaning the majority of gold can be captured at a relatively coarse grind size, reducing energy costs
• Total gold recoveries of 91.7% to 96.1% across all three samples after three stages of grinding
• Gold concentrate grades achieved between 1,483 and 2,058 g/t Au — indicating clean, high-grade concentrates
• The company describes these as consistent with "potential low-cost gravity processing options" for future development

This first metallurgical data point is significant. Furthermore, it confirms that Happy Valley gold is not locked in refractory or complex mineralogy, and that a potentially straightforward processing route may exist.

Drilling Confirms Grade at Depth and Width Near Surface

Beyond the metallurgical work, Advance has continued to build the geological picture at Happy Valley with an active drilling campaign. The most recent programme comprised five shallow holes (AMD024–AMD028) targeting areas identified as minimally mined historically, plus deeper holes testing extensions at depth.

Shallow Programme Highlights

• AMD026: 0.6m at 9.4 g/t Au from 76.9m, and 1.0m at 22.3 g/t Au from 95.7m, including 0.2m at 108.5 g/t Au — the shallowest high-grade intersection recorded at Happy Valley, remaining open up-dip
• AMD024: 2.2m at 1.5 g/t Au from 125m
• AMD025: 3.2m at 0.54 g/t Au and 1.0m at 0.63 g/t Au

Depth Extension Highlights

• AMD023: 6.6m at 1.8 g/t Au from 496.8m, including 0.6m at 12.6 g/t Au — demonstrating that high-grade gold mineralisation at Happy Valley extends to at least 500 metres below surface

Importantly, AMD027 and AMD028, which targeted unmined material to the northwest, intersected historical voids — confirming prior mining activity in those areas and helping the team refine targeting for future drill campaigns.

The full significance of earlier high-grade intercepts from the programme — which returned results such as 8.2m at 28.8 g/t Au (including 3.4m at 68.2 g/t Au), 7.5m at 55.0 g/t Au (including 1.3m at 305.8 g/t Au), and 9.4m at 18.6 g/t Au — continues to underpin the investment thesis.

Regional Scale: Happy Valley Is Just the Beginning

One of the more compelling aspects of the Myrtleford story is the broader district potential. Happy Valley sits within a much larger geological setting, and the company's exploration work is beginning to map what could be a multi-deposit system.

Step-Out Drilling at Regional Prospects

• Queen of the Hills (4.5km southeast of Happy Valley): Encouraging early results including 4.0m at 2.4 g/t Au and 3.2m at 1.4 g/t Au (including 0.6m at 7.7 g/t Au)
• Sheards Prospect (1.5km northwest of Happy Valley): Drill hole AMD020 intersected multiple mineralised quartz zones with anomalous gold including 3.0m at 0.3 g/t Au from 316.7m — quartz reef structures bearing pyrite and arsenopyrite consistent with Happy Valley mineralogy

The Magpie-Barwidgee Trend

Stretching across approximately 16 kilometres, this regional trend hosts multiple historical gold workings including Sunday, Magpie, Tubal Cain, and Barwidgee Prospects. Critically, no modern drilling has been completed along this entire trend — representing a genuinely untested opportunity.

Recent re-processing of LiDAR data combined with historical production records has generated multiple priority targets along this trend. Mapping and rock chip sampling are now underway at selected historical workings across both the Myrtleford and Beaufort projects.

"The combination of ultra-high grade drilling results, excellent gravity gold recoveries and multiple untested historical trends give Advance full exposure to what we believe is a compelling district scale gold opportunity in the Victorian Goldfields."

— Dr. Adam McKinnon, Managing Director and CEO

What Comes Next: A Clear Pipeline of Catalysts

Advance has outlined a well-defined set of near-term activities that should generate a steady flow of news for investors:

Two additional diamond holes (AMD029A and AMD030) from the latest programme are awaiting assay results — these results, when received, represent the next immediate news catalyst for investors watching the company's progress.

The Investment Case: Why AVM Deserves Attention

The decision to move to 100% ownership crystallises several threads of the AVM investment thesis into a single, coherent picture. Advance Metals full ownership of Myrtleford and Beaufort gold projects strengthens each of the following pillars considerably.

1. High-grade gold in a proven Victorian goldfields address
The Victorian Goldfields have historical context as one of Australia's most prolific gold-producing regions. Myrtleford's geology — structurally controlled quartz reef gold hosted in Ordovician turbidites — shares characteristics with the broader Lachlan Orogen gold systems.

2. Metallurgy de-risks future development
With total gravity gold recoveries of up to 96%, the Happy Valley deposit has now passed its first meaningful test of processing viability. This is, consequently, a meaningful step toward any future scoping or development study.

3. Grade profile is genuinely exceptional
Few ASX-listed explorers are reporting intercepts of 55.0 g/t Au over 7.5 metres, or visible gold at 305.8 g/t. The grade profile at Happy Valley consistently places it at the high end of what Australian gold explorers are reporting.

4. District-scale upside is undrilled
The Magpie-Barwidgee trend stretches 16 kilometres with no modern drilling. This represents significant blue-sky exploration potential beyond the already-advanced Happy Valley deposit.

5. Deal structure preserves flexibility
By staging the acquisition cost over three years with the choice of shares or cash, Advance has secured full exposure to a high-grade project without compromising near-term financial flexibility.

6. Depth extent strengthens the case
High-grade gold confirmed at nearly 500 metres depth suggests the Happy Valley system has meaningful vertical extent — an important consideration when assessing potential resource scale.

Key Takeaway

Advance Metals (ASX: AVM) has secured full ownership of a high-grade Victorian gold project just as exploration results are validating the district-scale opportunity. Advance Metals full ownership of Myrtleford and Beaufort gold projects, combined with gravity recoveries reaching 96%, exceptional drill grades, and a 16-kilometre regional trend yet to see a single modern drill hole, presents a compelling combination of near-term news flow and longer-term upside.

Pending assay results, a 3D deposit model, and the first-ever drilling of the Magpie-Barwidgee trend make this a company worth following closely in the months ahead.

Ready to Take a Closer Look at Advance Metals' Victorian Gold Projects?

With 100% ownership of the Myrtleford and Beaufort gold projects now within reach, gravity recoveries of up to 96%, and drill results that place Happy Valley among the highest-grade discoveries on the ASX, Advance Metals (ASX: AVM) is building a compelling case for investors seeking exposure to a genuine district-scale gold opportunity. Pending assay results and an undrilled 16-kilometre regional trend mean the news flow is only just beginning. Head to the Advance Metals investor page to explore the full story and stay across developments as they unfold.