Sky Metals Delivers High-Grade Tin Drilling and Resource Update at Tallebung

Sky Metals Fires on All Fronts: Approvals Launched, High-Grade Drilling Delivers, and Major Resource Update Imminent

Sky Metals Limited (ASX: SKY) has announced a significant dual-front advance at its 100%-owned Tallebung Tin Project in central New South Wales, combining a landmark step in the formal approvals process with continued high-grade drilling success. The Sky Metals Tallebung Tin Project high grade drilling and resource update marks one of the most consequential updates in the company's recent history.

A Scoping Report has been submitted to initiate the NSW State Significant Development (SSD) process, and an updated Mineral Resource Estimate (MRE) and Pre-Feasibility Study (PFS) are expected this quarter.

With more than 500 drill holes now completed at Tallebung — compared to just 115 holes underpinning the existing MRE — the scale of the geological dataset being assembled is substantial. Fresh drilling results continue to deliver shallow, high-grade tin-tungsten-silver intersections, reinforcing the project's open-pit credentials and setting the stage for what the company describes as a "step-change" in resource scale and confidence.

"This marks a significant step forward for SKY, with Tallebung advancing on both the approvals and technical fronts. The initiation of the NSW State Significant Development process is a key milestone as we position the project for near-term development."
— Oliver Davies, Managing Director & CEO, Sky Metals Limited

A Formal Approvals Pathway Takes Shape

The submission of the Scoping Report to formally initiate the NSW State Significant Development (SSD) approval process is a pivotal milestone for Tallebung. The SSD process is the formal gateway for major development projects in NSW, enabling key environmental, technical, and permitting workstreams to progress simultaneously — a structure that supports efficient advancement toward project approval.

The next step in the approvals sequence is the receipt of the Secretary's Environmental Assessment Requirements (SEARs), anticipated this month. Once received, Sky Metals can proceed with the preparation of the Environmental Impact Statement (EIS), which forms the core of the formal development approval submission.

Supporting this process, Sky Metals has appointed dedicated environmental consultants and an in-house Environmental Manager. These appointments are described as driving the SSD process, baseline environmental studies, and ongoing stakeholder engagement — activities the company states are tracking ahead of its planned development schedule.

Drilling Delivers: High-Grade Tin-Tungsten-Silver Results Continue

Drilling at Tallebung is producing consistently impressive results, with the latest batch of assays reinforcing the shallow, high-grade character of the mineralised system. The Sky Metals Tallebung Tin Project high grade drilling and resource update continues to demonstrate the project's exceptional mineral endowment across multiple commodity types.

The standout result from TBRC377 — 1 metre grading 9.09% tin, 1.32% tungsten, and 60.4 g/t silver — represents an exceptionally high-grade intersection within a broader 8-metre mineralised zone. Furthermore, it underlines the potential for concentrated, high-value ore shoots within the broader Tallebung system.

Importantly, the company notes that a significant volume of additional assay results is expected imminently ahead of the updated MRE, meaning the full picture from the latest drilling programme has not yet been disclosed.

Understanding the Scale Jump: From 115 to 500+ Drill Holes

What Is a Mineral Resource Estimate?

An MRE is a formal, independently verified estimate of the quantity and grade of mineralisation within a defined area. It is calculated using geological modelling and statistical analysis of drill hole data, and classified under the JORC Code into Inferred, Indicated, and Measured categories — each reflecting increasing confidence in the estimate.

The MRE forms the foundation for all downstream economic studies, including the Pre-Feasibility Study and ultimately the Feasibility Study that underpins any investment decision to build a mine. A larger, higher-confidence MRE typically supports better mine planning, stronger project economics, and improved ability to attract financing or strategic partners.

At Tallebung, the existing MRE was built on 115 drill holes. However, the updated MRE will incorporate data from more than 500 drill holes — representing a more than 4-fold increase in the geological dataset. This scale of additional drilling is expected to both expand the resource footprint and upgrade confidence classifications, which the company describes as a "step-change" outcome.

Key Technical Terms

• MRE (Mineral Resource Estimate): A formal estimate of in-ground mineralisation classified under the JORC Code
• PFS (Pre-Feasibility Study): An intermediate study assessing technical and economic viability, sitting between a scoping study and a definitive feasibility study
• SSD (State Significant Development): A NSW planning pathway for projects deemed significant to the state, involving a structured environmental and approvals process
• SEARs (Secretary's Environmental Assessment Requirements): Formal directions specifying what an Environmental Impact Statement must address
• EIS (Environmental Impact Statement): The detailed environmental assessment document submitted as part of the development approval process
• Open-pit development: Surface mining methodology suited to shallow, broad mineralisation — generally lower cost than underground mining
• JORC Code: The Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves — the industry standard for resource reporting in Australia

What the Updated MRE and PFS Mean for Near-Term Development

The updated MRE and PFS, both targeted for release in the current quarter (H1 2026), represent the next major value inflection points for the Tallebung project. The Sky Metals Tallebung Tin Project high grade drilling and resource update is positioning the company for a significant re-evaluation of the project's economic potential.

Updated MRE Expectations

• Incorporates the full ~500-hole drilling database versus 115 holes in the current estimate
• Expected to reflect material growth in resource tonnage and confidence
• Will underpin mine planning, metallurgical optimisation, and economic modelling
• Provides the geological foundation for the forthcoming PFS

Pre-Feasibility Study Implications

• Assesses the technical and economic viability of a Tallebung open-pit operation
• Expected to incorporate tungsten more fully into mine scheduling — a meaningful upside driver given tungsten's value profile alongside tin
• Transitions the project formally from exploration into development studies
• Sets the framework for subsequent definitive feasibility work

Together, these two documents are expected to materially reframe the investment narrative around Tallebung, shifting the project from a resource-building story to a development-stage opportunity with defined economics.

Understanding Tin and Tungsten: Critical Metals for Modern Technology

Why Does Tin Matter?

Tin is a critical metal in global manufacturing, with approximately 50% of global demand coming from soldering applications in electronics. The metal's properties make it irreplaceable in semiconductor manufacturing, where it forms the primary component of solder alloys that connect electronic components.

Key applications include:

• Electronics and semiconductors: Essential for circuit board assembly and electronic device manufacturing
• Solar photovoltaic systems: Critical component in solar panel production
• Packaging industry: Tin plating provides corrosion resistance for food containers
• Chemical applications: Catalyst in polymer production and glass manufacturing

What Makes Tungsten Strategically Valuable?

Tungsten possesses the highest melting point of any metal (3,422°C), making it indispensable in high-temperature applications. Global tungsten supply is highly concentrated, with China controlling approximately 80% of world production.

Applications include:

• Industrial cutting tools: Tungsten carbide for drilling, mining, and machining
• Aerospace and defence: High-temperature alloys for jet engines and military applications
• Electronics: Tungsten contacts in electrical switches and high-performance semiconductors
• Medical technology: Radiation shielding and X-ray tube components

Both metals face supply concentration challenges. Tin production is dominated by a handful of countries, while tungsten supply remains heavily dependent on Chinese sources. In addition, this concentration creates strategic opportunities for new, reliable sources of supply from stable jurisdictions like Australia.

Near-Term Catalysts: A Packed News Flow

The coming weeks and months represent one of the most news-rich periods in Sky Metals' recent history. The Sky Metals Tallebung Tin Project high grade drilling and resource update forms part of a broader sequence of expected announcements, providing multiple potential re-rating events for investors monitoring the stock.

The Tallebung Investment Thesis: Technical Advantages and Market Position

Tallebung is positioned as an open-pit, near-term tin development project at a time when tin demand fundamentals are driven by its critical role in semiconductors, electronics, and solar photovoltaic technologies. Tungsten, present throughout the Tallebung system, adds a secondary commodity dimension with its own supply concentration dynamics globally.

The project's technical attributes align well with a low-cost production profile.

Shallow Mineralisation

Hosted in stacked vein packages extending to surface, the deposit is amenable to open-pit extraction. This surface accessibility significantly reduces the capital cost and complexity compared to underground mining operations.

Simple Ore Mineralogy

Tin occurs predominantly as large, discrete grains of cassiterite (tin oxide), which responds exceptionally well to beneficiation. This characteristic simplifies processing and reduces operational complexity considerably.

Demonstrated Metallurgical Performance

X-ray ore sorting has demonstrated the ability to upgrade tin up to 44 times prior to low-cost gravity separation to produce a saleable tin concentrate. This pre-concentration capability significantly reduces processing costs and improves project economics.

Historical Precedent and Scale

The Tallebung field has a tin mining history dating to the 1890s, with large-scale open-cut alluvial mining conducted as recently as 1963–1972. Furthermore, with more than 500 holes drilled across at least 1.6 kilometres of strike, the geological database is becoming increasingly robust, supporting higher confidence in resource estimation and mine planning.

Why Investors Should Keep a Close Watch on Sky Metals

Sky Metals is approaching an inflection point that is rare for a company at its stage. Within a single quarter, investors could see an updated Mineral Resource Estimate reflecting more than four times the drilling of the existing resource, a Pre-Feasibility Study establishing project economics for the first time on the expanded dataset, and meaningful progress through the NSW approvals framework.

Each of these events on its own would represent a material development. However, the prospect of all three occurring in close succession underscores why this period warrants close attention from investors monitoring the critical minerals sector.

The company states it is well-funded and focused on accelerating Tallebung toward development — a posture supported by the parallel advancement of both technical studies and regulatory approvals, the appointment of specialist environmental staff, and a drilling campaign that has now exceeded 500 holes.

For investors seeking exposure to a domestic critical minerals development story with near-term, tangible catalysts and a technically credible open-pit development pathway, Tallebung is a project that deserves close monitoring in the weeks ahead.

Sky Metals has positioned Tallebung as a credible near-term tin and tungsten development opportunity, backed by over 500 drill holes, consistently high-grade assay results, and a formal NSW approvals process now underway. With an updated MRE, a Pre-Feasibility Study, and advancing regulatory milestones all expected imminently, investors have a concentrated window of potential catalysts to watch closely.

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