Private Placement Offer utilising the company’s existing capacity under Listing Rule 7.1 and Listing Rule 7.1A to raise up to $1.50m with the ability to take up oversubscriptions at $0.06. The placement offer comes with 1 for 2 free attaching unlisted options with an exercise price of $0.12, expiring approximately 2 years from the date of issuance. The issuance of the Options requires shareholder approval at a General Meeting to be convened.

Flagship Minerals Ltd (ASX: FLG) is advancing the Pantanillo Gold Project, an extensive, large-scale oxide gold asset located in the prolific Maricunga Gold Belt (MGB) of northern Chile. The project comprises a ~110km² package of Exploitation Concessions and hosts a qualifying foreign estimate (QFE) of 47.4Mt @ 0.69 g/t Au for 1.05Moz Au, supported by over 20,500 metres of drilling, equally split between diamond (DDH) and reverse circulation (RC) methods. Best intersections: 161m @ 1.23g/t Au from 60m (SR97PN-12); 440m @ 0.49g/t Au from 260m to EOH (ARDDHPN-02). The MRE is compliant with NI 43-101 standards and is reported as a QFE under the JORC Code (2012), consistent with reporting practices of major gold producers such as Barrick, Newmont, Agnico Eagle, and Kinross. Although the MRE is considered reliable under Canadian NI 43-101 standards, it has not yet been verified under the JORC Code (2012). Flagship intends to progress this conversion in alignment with the upcoming JORC (2025) standards.

The Maricunga Gold Belt is one of South America's most significant gold-producing regions, with more than 65 million ounces of total historical and current gold endowment. Within a 40 km radius of Pantanillo, there are an estimated 60 Moz Au in defined resources, including approximately 25 Moz Au within a 25 km radius. Gold production in the belt is primarily derived from open-pit mining and heap leach processing operations, making the region ideally suited for Pantanillo’s development.

Notable nearby developments include RIO2’s Fenix Project (~40 km north), which contains 4.0 Moz (M&I) @ 0.38 g/t Au and 1.8 Moz (P&P) @ 0.48 g/t Au. The project is permitted, under construction, and funded through a US$120 million royalty stream from Wheaton Precious Metals. Fenix’s projected AISC is US$1,237/oz Au, with forecast production of approximately 91 koz Au p.a. over its first 12 years. Also proximal is Hochschild’s Volcan Project (~12 km northwest), which hosts >11 Moz @ 0.64 g/t Au and is currently undergoing feasibility. Volcan’s study is supported by a US$15 million royalty stream from Franco Nevada and anticipates production of ~330 koz Au p.a. at an AISC of US$1,002/oz Au over the first 10 years. Pantanillo shares a similar geological setting, topography, and permitting conditions with both projects, and may benefit from infrastructure synergies, particularly in energy and water access. Best ASX analogue is Saturn Metals’ Apollo Hill with 2Moz @ 0.53g/t Au.

Importantly, 77% of Pantanillo’s current MRE is classified as Measured and 22% as Indicated, placing it among a select group of ASX-listed >1 Moz gold projects with a dominant proportion of high-confidence resource classification, and therefore high confidence that the MRE can be converted to JORC (2012) – and ultimately JORC (2025) – compliance without the need for additional drilling, leveraging the robustness of the existing dataset.

Pantanillo's mineralisation remains open both along strike and down dip, offering significant potential for resource expansion. The current MRE is constrained within a pit shell based on a 0.3 g/t Au cut-off grade and a US$1,035/oz gold price. For the JORC conversion, Flagship intends to apply an updated 0.15–0.20 g/t cut-off, consistent with industry peers and reflective of current gold pricing. Notably, while the defined pit shell reaches a maximum depth of 300 metres, the deepest drillhole extends beyond 600 metres vertical depth, finishing in mineralisation – highlighting the potential to materially increase the resource base through additional exploration.

Beyond the immediate pit shell, the project area hosts at least seven highly prospective alteration targets, including 2–3 km of untested strike length both to the south and northwest of the existing MRE. These zones represent attractive, walk-up targets for near-mine exploration aimed at further resource growth.

Rosario is a high-grade oxide copper-silver project in Chile’s Central Copper Belt, just 10km from Codelco’s El Salvador mine. Covering 86km², it is well-located near key infrastructure including processing facilities, a smelter, and port. The project hosts three mineralised trends over ~15km, with zones up to 200m wide. Rock chip and channel samples returned grades up to 8.9% Cu and 50ppm Ag, with strong average grades of 2.16% Cu (0.1% cutoff) across the dataset. Recent stream sediment sampling has also identified six new copper target areas, expanding the project's exploration potential.

The funds raised will be used for:

• Pantanillo: Conversion of foreign estimate to JORC Mineral Resource, including core logging, re-assaying, metallurgical test work, environmental studies, and drill preparation.
• Rosario: Trenching, fieldwork, and bulk metallurgical testing ahead of drilling.
• General working capital