Announcement PDF 5 March 2025 PLACEMENT AND SPP ANNOUNCEMENT - REVISED Hillgrove Resources Limited (ASX: HGO) (Hillgrove or Company) encloses a revised version of the announcement ‘$16m Placement and SPP to Increase Copper Production’ dated 5 March 2025. Hillgrove advises that Figure 1 and a footnote has been included referencing the Company’s announcement ‘Maiden Kanmantoo UG Reserve and 96% Increase in Resource’ dated 18 October 2024. This announcement is authorised for release to the ASX by the Board of Hillgrove Resources Limited. For more information contact: Mr Bob Fulker CEO & Managing Director Tel: +61 (0)8 7070 1698 Mr Joe Sutanto CFO & Company Secretary Tel: +61 (0)8 7070 1698 Hillgrove Resources Limited ACN 004 297 116 Ground Floor, 5-7 King William Road, Unley SA 5061, Australia | T + 61 8 7070 1698 | E info@hillgroveresources.com.au Wednesday, 5th March 2025 $16 MILLION PLACEMENT AND SHARE PURCHASE PLAN TO INCREASE COPPER PRODUCTION THROUGH ACCELERATION OF NUGENT DEVELOPMENT Hillgrove Resources Limited (‘Hillgrove’, ‘the Company’) (ASX:HGO) is pleased to announce a combined equity raising of up to $16 million, comprising: • • a $13.0 million placement to institutional and sophisticated investors; and a Share Purchase Plan (“SPP”) to raise up to $3.0 million, in which existing eligible shareholders will be offered the opportunity to participate. Key points Recent positive drilling results at the Nugent deposit (part of Hillgrove’s operating Kanmantoo copper mine in South Australia), which are significantly higher than the Resource grade, include1: • • 18.55m @ 5.69% Cu + 1.02g/t Au (uncut) from 187m downhole in 24KVUG0476 16.00m @ 2.96% Cu + 0.42g/t Au (uncut) from 197m downhole in 24KVUG0503 On the back of these results, the Company identified an opportunity to accelerate the Nugent development to access potentially higher grade zones and increase the overall copper production with a view to achieving a material reduction in Kanmantoo’s unit costs. The capital raising has been undertaken to expand the mining and processing rate by approximately 25% from 1.4Mtpa to up to 1.8Mtpa and for general working capital purposes. The Placement was strongly supported by the Company’s major shareholders along with new institutions, resulting in demand being well in excess of the targeted amount. Commenting on the Placement and SPP, Hillgrove CEO and Managing Director, Bob Fulker said: “Following the success of the recent excellent Nugent drilling results, our technical team have identified a path to accelerate the Nugent production profile. This acceleration will allow the Kanmantoo underground mine to increase production up to 1.8Mtpa, with increased production of copper units and a material consequential decrease in our unit costs. Nugent ore is expected to be delivered to our processing plant in the first half of calendar 2026 when Kanmantoo will be drawing from three production areas (the currently operating Kavanagh and Spitfire deposits as well as from the opening up of Nugent). Having three active mining areas will increase the efficiency and flexibility of underground mining operations at Kanmantoo as well as providing a more diversified base of feed to our plant. It was only in the September quarter of last year that we declared commercial production at Kanmantoo. With the opening up of the Nugent deposit, we believe Hillgrove is particularly well placed to take advantage of our amenable underground mining conditions (with consistent ore and large stope sizes) as well as the significant value of our installed processing capacity. South Australia continues to be a world class jurisdiction in which to mine base metals, and we look 1 Refer ASX announcement of 21 January 2025. Hillgrove Resources Limited ACN 004 297 116 Ground Floor, 5-7 King William Road, Unley SA 5061, Australia | T + 61 8 7070 1698 | E info@hillgroveresources.com.au forward to updating the market on our production and exploration activities as one of the very few ASX-listed emerging copper producers. The Company is grateful for the support of our existing shareholders in the Placement, and we are pleased to welcome many new investors onto the Hillgrove share register.” Figure 1: Scheduled Nugent face position as of Dec 31st 2025 2 Capital Raising Terms Hillgrove will undertake the Placement in two tranches as follows (“Placement”): Tranche 1 Placement The Tranche 1 Placement will involve the issue of 297,288,505 new fully ordinary shares in Hillgrove (“New Shares”) at an issue price of $0.035 per share, raising $10.4 million (before costs). The issue is pursuant to the Company’s available placement capacity under ASX Listing Rule 7.1. Tranche 2 Placement The Tranche 2 Placement will involve the issue of 74,140,067 New Shares at an issue price of $0.035 per share, raising $2.6 million (before costs). The Company’s largest shareholder, Freepoint Metals and Concentrates LLC 2 Conceptual design based on Mineral Resource Estimate and Ore Reserve as released in the ASX announcement of 18 October 2024 titled ‘Maiden Kanmantoo underground Ore Reserve and 96% increase in copper Mineral Resource endowment’ Hillgrove Resources Limited ACN 004 297 116 Ground Floor, 5-7 King William Road, Unley SA 5061, Australia | T + 61 8 7070 1698 | E info@hillgroveresources.com.au which has a shareholding of approximately 20% in the Company, requires the approval of the Australian Foreign Investment Review Board (“FIRB)” to participate in this raising. Freepoint will therefore settle in the second tranche of the equity issuance. To allow time to seek and obtain FIRB approval, the issue of shares to Freepoint as part of the Tranche 2 Placement will be subject to the approval of shareholders at the Company’s Annual General Meeting, which is to be held in early May. Share Purchase Plan In addition to the Placement, Hillgrove proposes to offer eligible shareholders with registered addresses in Australia and New Zealand up to A$30,000 worth of shares under a non-underwritten SPP. The Record Date for the SPP is 7:00pm AEDT on Tuesday, 4 March 2025. The issue price under the SPP will be at the same price as the Placement. The offer price of $0.035 per share represents a discount of 12.5% to Hillgrove’s last closing price of $0.040 per share on 28 February 2025 and a 15.8% discount to the 5-day VWAP. Participation in the SPP is entirely optional and is open to all shareholders, other than shareholders who have registered addresses in countries outside Australia and New Zealand where regulatory requirements make participation by the shareholder unlawful or impracticable. Full details of the SPP will be sent to eligible shareholders on the SPP Offer opening date of Monday, 10 March 2025. New Shares issued under the Placement and SPP will rank equally with existing Hillgrove ordinary shares on issue with effect from their date of issue. Blue Ocean Equities Pty Ltd (ACN 53 151 186 935) and Canaccord Genuity (Australia) Limited (ACN 075 071 466) are acting as the Joint Lead Managers for the Placement. Investor Presentation Further details of the capital raising are outlined in the investor presentation released on the ASX platform today. NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES This announcement has been prepared for publication in Australia and may not be released to US wire services or distributed in the United States. This announcement does not constitute an offer to sell, or a solicitation of an offer to buy, securities in the United States or any other jurisdiction. Any securities described in this announcement have not been, and will not be registered, under the US Securities Act of 1993, as amended (the “Securities Act”) and may not be offered or sold in the United States except in transactions exempt from, or not subject to, registration under the Securities Act and applicable US state securities laws. Hillgrove Resources Limited ACN 004 297 116 Ground Floor, 5-7 King William Road, Unley SA 5061, Australia | T + 61 8 7070 1698 | E info@hillgroveresources.com.au Indicative Timetable INDICATIVE TIMETABLE INFORMATION PLACEMENT Settlement of Tranche 1 Placement Shares Wednesday, 12 March 2025 Allotment of new shares under Tranche 1 Placement Thursday, 13 March 2025 Settlement of Tranche 2 Placement Shares As soon as possible after the AGM Allotment of new shares under Tranche 2 Placement The next business day following the Settlement of Tranche 2 Placement Shares SHARE PURCHASE PLAN Record Date for SPP Offer 7:00pm (Sydney time), Tuesday, 4 March 2025 Announcement of SPP Offer Wednesday, 5 March 2025 SPP Offer opens and despatch of SPP Offer booklet Monday, 10 March 2025 SPP Offer closing date Friday, 28 March 2025 Announcement of results of the SPP Offer Friday, 4 April 2025 Allotment of new shares under the SPP Offer Friday, 4 April 2025 Quotation of new shares under the SPP Offer Monday, 7 April 2025 This announcement is authorised for release to the ASX by the Board of Hillgrove Resources Limited. For more information contact: Mr Bob Fulker CEO & Managing Director Tel: +61 (0)8 7070 1698 Mr Joe Sutanto CFO & Company Secretary Tel: +61 (0)8 7070 1698 Hillgrove Resources Limited ACN 004 297 116 Ground Floor, 5-7 King William Road, Unley SA 5061, Australia | T + 61 8 7070 1698 | E info@hillgroveresources.com.au Competent Person Statement The information in this report that relates to previously reported drilling results were extracted from the ASX releases titled ‘Quarterly Report and Appendix 5B for 31 December 2024’ released on 21 January 2025, this is available to view at www.hillgroveresources.com.au. The company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcements and that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement. Hillgrove Resources Limited ACN 004 297 116 Ground Floor, 5-7 King William Road, Unley SA 5061, Australia | T + 61 8 7070 1698 | E info@hillgroveresources.com.au