Generation Mining Limited | Feasibility Study

Click here to access the 2024 Amended Feasibility Study Update

KEY RESULTS AND ASSUMPTIONS;

Key results and assumptions for the updated Feasibility Study are summarized below.

	Units	2024 FS	2021 FS
Production Data
Mine Life (operating)	years	12.5	12.8
Average Process Plant Throughput	tpd	27,700	25,200
Average Process Plant Throughput	Mt/year	10.1	9.2
Average Mining Rate	tpd	115,000	110,000
Average Mining Rate	Mt/year	42	40
Total Ore Mined	Mt	127	118
Strip Ratio	waste:ore	2.63	2.80
Palladium (payable)	k oz	2,122	1,905
Copper (payable)	M lbs	517	467
Platinum (payable)	k oz	485	537
Gold (payable)	k oz	158	151
Silver (payable)	k oz	3,156	2,823
LOM Palladium Equivalent Payable	PdEq. koz	3,613	3,195
Average Annual Palladium – Payable Metal	k oz	166	149
Average Annual Copper – Payable Metal	M lbs	41	36
Average Annual Platinum – Payable Metal	k oz	38	41
Average Annual Gold – Payable Metal	k oz	12	12
Average Annual Silver – Payable Metal	k oz	248	220
Operating Costs (Average LOM)
Mining (a)	$/t mined	3.25	2.53
Mining	$/t milled	11.45	9.23
Processing	$/t milled	8.70	9.08
G&Ab	$/t milled	2.67	2.48
Transport & Refining Charges	$/t milled	4.13	2.80
Royalty	$/t milled	0.09	0.04
Total Operating Cost	$/t milled	27.04	23.63
LOM Average Operating Costs	US$/oz PdEq	709	687
LOM Average AISCc	US$/oz PdEq	813	809
Capital Costs
Initial Capital	$M	1,112	888
Less:
Pre-commercial production revenue	$M	($156)	($171)
Leased equipment, net of lease payments during construction	$M	($58)	($53)
Initial Capital (Adjusted)	$M	898	665
LOM Sustaining Capital	$M	424	423
Closure Costs	$M	72	66
Financial Evaluation
Pre-Tax Cash Flow (undiscounted)	$M	3,387	3,004
Pre-Tax NPV6%	$M	1,798	1,636
Pre-Tax IRR	%	31.9	38.6
Payback	years	2.0	1.9
Net Cash Flow (undiscounted)	$M	2,285	2,060
After-Tax NPV6%	$M	1,164	1,068
After-Tax IRR	%	25.8	29.7
Payback	years	2.3	2.3
Key Assumptions (d)
Palladium Price	US$/oz	$1,800	$1,725
Copper Price	US$/lb	$3.70	$3.20
Platinum Price	US$/oz	$1,000	$1,000
Gold Price	US$/oz	$1,800	$1,400
Silver Price	US$/oz	$22.50	$20.00
Foreign Exchange (“FX”)	C$:US$	1.35	1.28
Diesel Price	$/litre	1.17	0.77
Electricity	$/kWhr	0.07	0.08
Notes: Including capitalized maintenance parts. Includes estimated costs associated with certain commitments to and agreements with Indigenous communities. AISC is calculated without the impact of the Precious Metal Purchase Agreement with Wheaton Precious Metals Corp. (“WPM PMPA”). Metal Price Assumptions are based on the lesser of the three-year trailing average and the spot price on December 31, 2022, rounded to nearest interval.

PROJECT CASH FLOW (After Tax)

PRODUCTION

Palladium (Payable metal)

Copper (Payable Metal)

RESOURCES & RESERVES

The Mineral Resource Estimate below is for the combined Marathon, Geordie and Sally deposits. The Mineral Resource Estimates for Geordie and Sally were prepared by P&E Mining Consultants Inc. (“P&E”). The Mineral Resource Estimate for Marathon was prepared by Gen Mining and reviewed by P&E.

Pit Constrained Combined Mineral Resource Estimate^a-j for the Marathon, Geordie and Sally Deposits
(Effective date December 31, 2022)

Mineral Resource Classification	Tonnes	Pd		Cu		Pt		Au		Ag
Mineral Resource Classification	k	g/t	koz	%	M lbs	g/t	koz	g/t	koz	g/t	koz
Marathon Deposit
Measured	158,682	0.60	3,077	0.20	712	0.19	995	0.07	359	1.75	8,939
Indicated	29,905	0.43	412	0.19	124	0.14	136	0.06	59	1.64	1,575
Meas. + Ind.	188,587	0.58	3,489	0.20	836	0.19	1131	0.07	418	1.73	10,514
Inferred	1,662	0.37	20	0.16	6	0.14	7	0.07	4	1.25	67
Geordie Deposit
Indicated	17,268	0.56	312	0.35	133	0.04	20	0.05	25	2.4	1,351
Inferred	12,899	0.51	212	0.28	80	0.03	12	0.03	14	2.4	982
Sally Deposit
Indicated	24,801	0.35	278	0.17	93	0.2	160	0.07	56	0.7	567
Inferred	14,019	0.28	124	0.19	57	0.15	70	0.05	24	0.6	280
Total Project
Measured	158,682	0.60	3,077	0.20	712	0.19	995	0.07	359	1.75	8,939
Indicated	71,974	0.43	1,002	0.22	350	0.14	316	0.06	140	1.5	3,493
Meas. + Ind.	230,656	0.55	4,079	0.21	1,062	0.18	1,311	0.07	499	1.67	12,432
Inferred	28,580	0.39	356	0.23	143	0.1	89	0.04	42	1.45	1,329
Notes: Mineral Resources were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions (2014) and Best Practices Guidelines (2019) prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, marketing, or other relevant issues. The Inferred Mineral Resource in this estimate has a lower level of confidence than that applied to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that the majority of the Inferred Mineral Resource could be upgraded to an Indicated Mineral Resource with continued exploration. The Marathon Mineral Resource is reported within a constrained pit shell at a NSR cut-off value of $15/t. Marathon NSR (C$t) = (Cu % x 88.72) + (Ag g/t x 0.47) + (Au g/t x 44.69) + (Pd g/t x 58.63) + (Pt g/t x 28.54) - 3.37. The Marathon Mineral Resource estimate was based on metal prices of US$1,800/oz Pd, US$3.50/lb Cu, US$1,000/oz Pt, US$1,600/oz Au and US$20/oz Ag and an exchange rate of 1.30C$ to 1 US$. The Sally and Geordie Mineral Resources are reported within a constraining pit shell at a NSR cut-off value of $13/t. Sally and Geordie NSR (C$/t) = (Ag g/t x 0.48) + (Au g/t x 42.14) + (Cu % x 73.27) + (Pd g/t x 50.50) + (Pt g/t x 25.07) – 2.62. The Sally and Geordie Mineral Resource estimates were based on metal prices of. US$1,600/oz Pd, US$3.00/lb Cu, US$900/oz Pt, US$1,500/oz Au and US$18/oz Ag. Contained metal totals may differ due to rounding.

The Mineral Reserve estimate for the Project includes only the Marathon Deposit. The Mineral Reserve Estimate was prepared by G Mining Services Inc.

Marathon Project Open Pit Mineral Reserve Estimates^a-i
(Effective Date of December 31, 2022)

Mineral Reserves	Tonnes	Pd		Cu		Pt		Au		Ag
Mineral Reserves	kt	g/t	koz	%	M lb	g/t	koz	g/t	koz	g/t	koz
Proven	114,798	0.65	2,382	0.21	530	0.20	744	0.07	259	1.68	6,191
Probable	12,863	0.47	193	0.20	55	0.15	61	0.06	26	1.53	635
P & P	127,662	0.63	2,575	0.21	586	0.20	806	0.07	285	1.66	6,825

Note:

Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Definition Standards for Mineral Resources and Mineral Reserves (CIM (2014) definitions) were used for Mineral Reserve classification.
Mineral Reserve Estimate completed by Alexandre Dorval, P.Eng., of GMS, an independent QP, as defined by NI 43-101.
Mineral Reserves were estimated at a cut-off value $16.90 NSR/t of ore.
Mineral Reserves were estimated using the following long-term metal prices: Pd = US$1,500/oz, Pt = US$1,000/oz, Cu = US$3.50/lb, Au = US$1,600/oz and Ag = US$20/oz, and an exchange rate of 1.30C$ to 1 US$. The pit designs are based on a pit shell selected at a revenue factor of 0.74.
A minimum mining width of 5 m was used.
Bulk density of ore is variable and averages 3.1 t/m3.
The average strip ratio is 2.6:1.
The average mining dilution factor is 9%.
Numbers may not add due to rounding.