Wheaton Precious Metals™ Corp. is pleased to announce that its wholly-owned subsidiary, Wheaton Precious Metals International Ltd. has entered into a definitive Precious Metals Purchase Agreement with a wholly-owned subsidiary of KGL Resources Limited for a portion of the gold and silver produced at the Jervois Project located in Australia.

“The Jervois project represents an important milestone for Wheaton as our first streaming transaction in Australia, one of the world’s leading mining jurisdictions,” said Haytham Hodaly, President and Chief Executive Officer of Wheaton. “This is a fully permitted copper project, with significant exploration potential, that is positioned to commence construction imminently. As global efforts to transition to a low‑carbon economy accelerate, responsibly produced critical metals such as copper, sourced from politically stable jurisdictions, have never been more important, and we look forward to supporting the KGL team with a precious metals stream which will provide construction funding as they advance the Jervois Project into production.”

“We are delighted to secure this significant capital commitment from a leading global precious metals streaming company as a major cornerstone partner in our financing strategy for the Jervois Project.” said Jeff Gerard, Executive Chairman of KGL. “The immediate availability of the early deposit payments ensures we can maintain our schedule, and, under the stewardship of our new CEO Mr. Sam Strohmayr, we are now on the cusp of breaking ground on Australia’s next major copper mine.”

Transaction Key Terms
(All values in US$ unless otherwise noted)

• Gold and Silver Stream Upfront Consideration: WPMI will pay KGL total upfront cash consideration of US$275 million subject to certain customary conditions.
  • Two installments of US$16 million each will be made as early deposit payments, once certain conditions are satisfied, and are expected to be paid in the second and third calendar quarters of 2026.
  • The remaining balance of US$243 million will be paid in four equal installments over the construction period as various conditions are satisfied.
• Streamed Metal:
  • Gold Stream: WPMI will purchase 75% of the payable gold until a total of 45 thousand ounces (“Koz”) has been delivered (the “First Gold Dropdown Threshold”), at which point Wheaton will purchase 37.5% of the payable gold until an additional 15 Koz has been delivered (the “Second Gold Dropdown Threshold”), at which point WPMI will purchase 25% of the payable gold for the life of mine.  Payable gold is calculated using a fixed payability factor of 90%.
  • Silver Stream: WPMI will purchase 75% of the payable silver until a total of approximately 4.3 million ounces (“Moz”) has been delivered (the “First Silver Dropdown Threshold”), at which point Wheaton will purchase 37.5% of the payable silver until an additional 1.7 Moz has been delivered (the “Second Silver Dropdown Threshold”), at which point WPMI will purchase 25% of the payable silver for the life of mine. Payable silver is calculated using a fixed payability factor of 90%.
  • Each of the First Gold Dropdown Threshold and First Silver Dropdown Threshold will be subject to adjustment if there are delays in deliveries relative to an agreed schedule.
• Production Profile¹: Attributable Gold and Silver Stream production is forecast to average approximately 5.8 Koz of gold and 0.77 Moz of silver per annum for the first five full years of production, and approximately 5.3 Koz of gold and 0.59 Moz of silver per annum for the life of mine. The Jervois Project is forecast to have a 10-year mine life based on reserves and resources¹, with meaningful exploration potential that may extend the mine life. First production is expected in the second half of 2027.
• Production Payments: WPMI will make ongoing payments for the gold and silver ounces delivered equal to 20% of the spot price of gold and silver.
• Incremental Reserves and Resources¹: The Jervois Project will increase Wheaton’s total estimated Proven and Probable gold and silver reserves by 92 Koz and 9.2 Moz, Measured and Indicated gold and silver resources by 15 Koz and 1.3 Moz and Inferred gold and silver resources by 21 Koz and 2.1 Moz.

Other Considerations

• WPMI will provide a cost overrun stream (the “COF Stream”) of up to $25 million, accessible before the fifth anniversary of the effective date and subject to satisfaction of further conditions. If the COF Stream is exercised, the initial silver stream percentage will increase from 75% to 90%, with corresponding adjustments to the First Silver Dropdown Threshold and other related terms.
• The Gold and Silver Stream will include a customary completion test based on expected production and mining rates.
• In the event of a change of control of KGL prior to December 31, 2029, KGL will have the option to buy back one third of the stream, for an amount that includes a pre-determined rate of return.
• Wheaton has committed to participate in a future equity financing by KGL in connection with funding the Jervois mine, for the lesser of up to (i) AU$35 million and (ii) that number of new shares representing 20% of the shares offered under the equity financing, where such equity financing is completed by the first anniversary of the date of the PMPA, at KGL’s election and on commercial terms to be agreed (provided Wheaton’s interest in KGL shall not exceed 9.9%).
• WPMI will obtain a right of first refusal on any future precious metal streams, royalties, prepays or similar transactions with respect to the Jervois Project.
• KGL will provide WPMI with corporate guarantees, as well as first-priority security interests on the Project and KGL corporate assets, subject to permitted prior-ranking encumbrances and an agreed intercreditor framework where project debt financing is incurred.

Financing the Transaction

The Company expects to fund the majority of the upfront payment from operating cash flows as construction advances throughout 2027. Supported by strong projected cash flows over the next five years, along with anticipated production growth of approximately 50% by 2030, the Company believes it is well positioned to meet its existing commitments while continuing to pursue new growth opportunities.

Attributable Mineral Reserves and Mineral Resources – Jervois Project

Notes on Mineral Reserves & Mineral Resources:

About KGL and the Jervois Project

KGL Resources Limited is an ASX-listed Australia mineral exploration and development company, focused on developing and constructing the Jervois Copper Project in the Northern Territory, Australia. The Project lies North-East of the town of Alice Springs and is located in the Plenty River Basin, a sparsely populated area in Central Australia’s Northern Territory. Access to the Project site is via the Plenty Highway and Lucy Creek Road. The Project is fully-permitted with a recent Feasibility Study Update demonstrating attractive economics, low capital intensity and strong operating margins.