🇨🇦 BMC receives positive decision document for the KZK Project to advance to permitting

April 14, 2026

BMC Minerals Ltd. (ASX:BMC) (BMC or the Company) is pleased to announce a major de-risking milestone with receipt of a positive Decision Document for development of the ABM Mine at the Company’s100%- owned Kudz Ze Kayah Project (KZK Project) in the Yukon, Canada.

The positive Decision Document was issued by the Government of Yukon, Natural Resources Canada and the Department of Fisheries and Oceans Canada (Decision Bodies) after the Yukon Environmental and Socio-economic Assessment Board (YESAB) had recommended approval of the project in 2020.

The positive Decision Document builds on previous Decision Documents, issued in 2022 and 2024, and comes after additional consultation, ordered by the Yukon Court of Appeal in December 2024, between the Decision Bodies and Kaska First Nations, on the issue of economic viability of the project. The Decision Document includes a total of 52 terms and conditions and two monitoring requirements, including ten new terms and conditions that reflect the additional consultation.

The ten new terms cover five areas – financial oversight, operational performance, the existing Socioeconomic Participation Agreement (SEPA) with Ross River Dena Council and Liard First Nation, heritage resources, and road access – none of which are expected to have a significant impact on project economics. BMC will have some additional reporting requirements under the first two terms, will engage on the existing SEPA, and allow road access to persons exercising Indigenous or treaty rights. The final Decision Document reflects a robust governance framework that strengthens and de-risks the KZK Project.

BMC has previously submitted formal permit applications to the Yukon Water Board for a Type A Water License under the Waters Act (Yukon), an application for a Quartz Mining License under the Quartz Mining Act (Yukon) and applications for other authorisations required to develop and operate the proposed ABM Mine. With the Decision Document issued, these applications can now be progressed by the regulators. BMC will now progress mining permit and license applications with the Company aiming to be able to make a Final Investment Decision in late 2027, subject to receipt of permits.

Commenting on the positive Decision Document, BMC’s Managing Director and Chief Executive Officer Michael McClelland said:

“BMC is very pleased to see the re-issuance of the positive Decision Document after the completion of additional consultation between the Kaska First Nations and the Decision Bodies. The additional terms and conditions in the Decision Document reflect the consultation efforts of all parties and are reasonable, workable and fully supported by BMC.

“The issuance of the positive Decision Document is an important milestone for the KZK Project. This allows us to progress through the remaining regulatory approval process with the same constructive approach that has defined our engagement to date, which itself will involve additional consultation, to move the ABM Mine development towards a Final Investment Decision.”

BMC Chairman Steven Michael reinforced the significance of the outcome as a clear pathway to allow BMC to deliver value to Kaska First Nations, shareholders, and stakeholders.

“This is a significant step in the evolution of the KZK Project and allows us to continue the critical work necessary to advance through permitting.

“We will continue to work towards our ultimate goal of building and delivering a successful, long-life project that delivers real and sustainable benefits to Kaska First Nations, while also delivering significant, long-term value to our shareholders and all Yukoners.”

Kudz Ze Kayah (KZK) Project 1 BMC wholly owns the KZK Project, an advanced polymetallic development project comprised of 372km2 of under-explored, highly prospective tenure located in Canada’s Yukon territory, approximately 260km east of Whitehorse, the largest city in Northern Canada. The KZK Project hosts the ABM deposit and the copper-rich Kona deposit. Since acquiring the project in 2015, BMC has delineated significant Mineral Resources at both deposits.

A range of technical studies has been completed by BMC at ABM based on the development of a nominal 2 million tonnes per annum mine, which contemplates that ~89% of Mineral (Ore) Reserves will be mined via open pit and an underground mine that will be developed to access the deeper portions of the Krakatoa Zone.

The Company’s 2023 Economic update to the Feasibility Study has outlined a pre-tax NPV7% of US$835 million for the ABM Mine at silver, gold and copper prices which are lower than the current long-term consensus and spot prices, with a capital payback period of ~2 years.

Annual production over the initial nine-year project life (based on Mineral (Ore) Reserves only) is expected to average 32.2Moz AgEq1,3 with All-In Sustaining Costs (AISC) of less than US$12/oz (AgEq).2

The mine will produce three concentrates – high precious metals (HPM), copper and zinc.

BMC has secured binding offtake agreements with high quality partners for 95% of the first five years of production, across all three concentrate products (Copper, HPM, Zinc). Initial construction capital expenditure was estimated at US$492 million in the 2023 Economic Update to the Feasibility Study.

1 This release contains the following non-IFRS terms: “NPV”, “payback period”, “All-In-Sustaining Costs” and “initial construction capital expenditure”. Refer to page 5 for further details of non-IFRS terms. Dollar amounts in this document labelled “$” or US$” refer to United States Dollars. A$ refers to Australian Dollars. C$ refers to Canadian dollars.

2 Average annual production at steady state (excluding first (commissioning) and last (closure) years).

3 Refer to page 6 for further details of the Metal Equivalent Calculation

Originally published on April 14, 2026 by BMC Minerals.