Nova Minerals Redchip Investor Update - October 2026 - NOVA MINERALS CORP

Explicit Guidance:

• Antimony Production: Targeting first production of military-grade antimony trisulfide and antimony metal by September 2027.
• Phase 1 Capacity: Refinery designed with a capacity to produce 700 tons of antimony metal (Standard 2 regulus, >99.65% purity), including a subset for 100 tons of antimony trisulfide production via induction furnace.
• Funding Receipts: Anticipating receipt of approximately $12 million of the remaining $21 million Department of Defense (DoD) award before the end of the current year, contingent on milestone completion.
• PFS Completion: Targeting completion of the Gold Pre-Feasibility Study (PFS) by 2028.
• Permitting Timeline: Expecting 12 to 18 months of permitting time following the 2028 PFS delivery, targeting a Financial Investment Decision (FID) by 2028–2029.

Business-Segment Outlook:

• Antimony (Phase 1): Commencing construction immediately; commissioning and plant startup targeted for mid-year to early fall Alaska time next year (approx. mid-2026).
• Antimony (Phase 2): Scaling up operations in 2028 and beyond to produce additional refined antimony products, including antimony trioxide and expanded metal production, leveraging the existing modular front-end capacity.
• Gold (RPM): Focus on infill and step-out drilling to convert inferred resources to measured and indicated to enable economic PFS under SK-1300 standards; aiming to prove up a 2–3 million ounce deposit potential (currently defined ~1.1M oz).
• Gold (Corbell): Targeting bulk tonnage mining of a 0.3 g/t sheeted vein system utilizing ore sorting to upgrade material from 0.4–0.5 g/t to 4–5 g/t; stripping ratio noted as <1:1.
• New Discovery Zones: Ongoing exploration at the Train area and Upper East Side (north of RPM) to define additional resources within the economic pit shell.

Market and Competitive Outlook:

• Critical Minerals Race: Positioning Alaska as the epicenter for U.S. domestic critical minerals production; leveraging executive orders ("Unleashing Alaska's Extraordinary Mineral Resource Potential") for expedited permitting.
• Competitive Landscape: Noting increased interest in the West Susitna Mining District, evidenced by BHP Group staking claims around Nova Minerals for porphyry copper targets.
• Product Demand: Urgent U.S. military demand for domestic antimony trisulfide for munitions, bypassing typical resource definition timelines to ensure supply security.

Macro / Industry Outlook:

• Geopolitical Support: Project alignment with U.S. national security goals and DoD strategic interests in securing domestic antimony supply chains amidst global conflicts.
• Infrastructure Synergy: Regional economic corridor development driven by the West Susitna Access Road; Phase 1 (20 miles) is in the DOT plan/budget, with the next 80 miles receiving $25 million in permitting funding.
• Regulatory Environment: Favorable Alaska jurisdiction (top 3–5 globally for business climate) and streamlined permitting on state lands; federal permits accepted for road access.

Strategic Initiatives:

• Port McKenzie Refinery: Engineering and design complete; 500+ tons of processing equipment (crushers, mills, flotation) procured and landed at site. Plant design is modular and scalable.
• Acquisition of Pilot Plant: Secured a fully functional pilot plant from Agnico Eagle (former Hope Bay mine, 2017–2020) to minimize integration risk and accelerate construction.
• Infrastructure Construction:
  • Stibium Access Road: First 3 miles fully constructed; further work ongoing.
  • Whiskey Bravo Airstrip: Expansion underway to upgrade from DC-3 (7,000 lb payload) to C-130 Hercules (42,000 lb payload) capacity, enhancing logistics.
  • Corbell & RPM Roads: Permits sought for RPM road and next 6 miles of Corbell road, targeting permits by next year.
• Technology: Implementation of ore sorting for both gold and antimony (3–5x upgrade for antimony; 10x for gold) and coarse particle flotation (350 micron) for cost/energy savings.
• Critical Minerals Diversification: Collaborating with the U.S. government and University of Alaska Fairbanks to establish extraction flowsheets for up to 15 additional critical elements (e.g., bismuth, tungsten, tellurium) from tailings.

Risks and Headwinds to Outlook:

• Resource Conversion: Gold PFS timeline delayed until inferred resources are proven via drilling to meet SK-1300 economics requirements.
• Infrastructure Dependency: Long-term gold project feasibility is contingent on the completion of the West Susitna Access Road (best-case open 2028); without it, project development is constrained.
• Permitting Timelines: While state permits are streamlined, federal permitting for the road and future mining permits remain subject to external scheduling and regulatory review (12–18 month estimate).
• Execution Risk: Construction and commissioning timelines depend on successful integration of the transferred pilot plant and equipment logistics in Alaska.

Management Tone on the Future:

• High Confidence: Management emphasizes being "on track, on schedule, and on budget" for the antimony phase; describes the project as a "life and death" priority for national security.
• Operational Focus: Highlighting "trench-level" commitment with the CEO and General Manager based in Alaska, ensuring continuous oversight.
• Strategic Patience: Explicitly stating that the PFS timeline does not concern management due to the non-dilutive funding capability of the upcoming antimony revenue stream to finance the gold project.

Miscellaneous:

• Financial Position: Company maintains zero debt; cash on hand is $27 million (approx. $14.5M DoD funds, $12.5M+ operational).
• Ore Stockpiling: 200+ tons of high-grade stibnite ore (from Styx and Stibium prospects) currently stockpiled on-site, ready for processing.
• Exploration Activity: Completed ~9,000 meters of drilling this year focused on RPM and step-out targets; conducted ZTEM geophysical survey across the entire 200+ sq mile property.
• Funding Status: Received ~$22 million of the $43.4 million DoD award so far via cost reimbursables and milestone payments.