Announcement PDF Annual & Sustainability Report for the year ended 31 December 2024 www.hillgroveresources.com.au Contents About this report ANNUAL REPORT This Annual Report is a summary of Hillgrove and its subsidiaries operations, activities and financial position as at 31 December 2024. Currency is expressed in Australian dollars unless otherwise stated. 2024 in Review 2 About Hillgrove Resources 3 Chair and CEO and Managing Director’s Statement 4 Board of Directors and Officers 6 Operational Performance 7 Exploration Highlights 8 Mineral Resources and Ore Reserves 11 SUSTAINABILITY REPORT We have combined our disclosures into a single Annual and Sustainability Report to demonstrate the interconnectivity of Sustainability with Company performance. See the Sustainability Report within this document for information on our Sustainability performance, boundary and scope. Current and previous reports are available on the Company’s website at www.hillgroveresources.com.au Our 2024 Corporate Governance Statement is available to view at www.hillgroveresources.com.au/corporate-governance This Report has been approved for release by the Board of Hillgrove Resources Limited (ASX: HGO) (‘Hillgrove’, ‘we’ or ‘the Company’). About this Report 16 Sustainability Overview 2024 17 A Foreword from our Chair 18 Our Approach to Sustainability 19 Materiality Assessment 20 Proposed Material Sustainability Topics 21 Non-IFRS financial information Mapping of Material Sustainability Topics 23 Our Performance, Commitments and Long-term Goals 24 Governance 25 Environment 28 Social 34 Investors should be aware that financial data in this report includes ‘non-IFRS financial information’ under ASIC Regulatory Guide 230 Disclosing non-IFRS financial information published by ASIC and also ‘non-GAAP financial measures’ within the meaning of Regulation G under the U.S. Securities Exchange Act of 1934. Non-IFRS/non-GAAP measures in this presentation include gearing, sustaining capital, major project capital, major mine development, production cost information such as All-in Sustaining Cost and All-in Cost. Hillgrove Resources Limited (Hillgrove) believes this non-IFRS/ non-GAAP financial information provides useful information to users in measuring the financial performance and conditions of Hillgrove. The non-IFRS financial information does not have a standardised meaning prescribed by the Australian Accounting Standards (‘AAS’) and, therefore, may not be comparable to similarly titled measures presented by other entities, nor should it be construed as an alternative to other financial measures determined in accordance with AAS. Investors are cautioned, therefore, not to place undue reliance on any non-IFRS/non-GAAP financial information and ratios included in this Report. Non-IFRS financial information in this presentation has not been subject to audit or review by the Company’s external auditor. FINANCIAL REPORT Directors’ Report 43 Auditor’s Independence Declaration 58 Financial Statements 59 Consolidated Entity Disclosure Statement 85 Directors’ Declaration 86 Independent Auditor’s Report to the Members 87 Shareholder Information 92 Corporate Information 94 Acknowledgement of Country Hillgrove acknowledges the Peramangk and Kaurna people, the Traditional Owners and Custodians of the lands on which we live and operate. We pay our respects to Elders past and present and acknowledge their continuing connection to waters, skies, seas and country. Forward looking statement This Report contains or may contain certain forward-looking statements and comments about future events, that are based on Hillgrove’s beliefs, assumptions and expectations and on information currently available to management as at the date of this presentation. Often, but not always, forward-looking statements can generally be identified by the use of forward-looking words such as “may”, “will”, “expect”, “plan”, “believes”, “estimate”, “anticipate”, “outlook”, and “guidance”, or similar expressions, and may include, without limitation, statements regarding plans, strategies and objectives of management, anticipated production and production potential, financial forecasts, product quality estimates of future Mineral Resources and Ore Reserves. Such statements are only expectations or beliefs and are subject to inherent risks and uncertainties which could cause actual values, results or performance achievements to differ materially from those expressed or implied in this announcement. Where Hillgrove expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and on a reasonable basis. No representation or warranty, express or implied, is made by Hillgrove that the matters stated in this presentation will in fact be achieved or prove to be correct. Except as required by law, Hillgrove undertakes no obligation to provide any additional or updated information or update any forward-looking statements whether on a result of new information, future events, results or otherwise. Readers are cautioned against placing undue reliance on forward-looking statements. These forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties, assumptions and other important factors, many of which are beyond the control of Hillgrove, the directors, and management of Hillgrove. These factors include, but are not limited to difficulties in forecasting expected production quantities, the potential that any of Hillgrove’s projects may experience technical, geological, metallurgical and mechanical problems, changes in market prices and other risks not anticipated by Hillgrove, changes in exchange rate assumptions, changes in product pricing assumptions, major changes in mine plans and/or resources, changes in equipment life or capability, emergence of previously underestimated technical challenges, increased costs, and demand for production inputs. In 2024 we successfully transitioned into a copper producer, with our first underground copper production at Kanmantoo achieved in February. This milestone marks a significant step forward in Hillgrove’s evolution. We also achieved strong organic growth through substantial resource expansion and prepared to test the next suite of high potential targets. We are on track to achieving our ultimate vision: becoming a mid-tier, multi-asset Australian copper producer, unlocking value for a sustainable future. HILLGROVE RESOURCES LIMITED 2024 ANNUAL REPORT 1 ANNUAL REPORT SUSTAINABILITY REPORT FINANCIAL REPORT 2024 in Review Operational and Financial COMMERCIAL COPPER PRODUCTION COPPER PRODUCTION GOLD PRODUCTION 8,971 1,813 TONNES OUNCES OPERATING CASH FLOW EBITDA $21.0 $22.5 FINANCIAL FLEXIBILITY (STANDBY DEBT FACILITY) MILLION MILLION Commenced $10 MILLION Sustainability TRIF CLIMATE CHANGE 14% DECREASE POSITION STATEMENT RELEASED LOCAL WORKFORCE 1 REHABILITATION (Dec. 24:13.1 | Dec 23: 15.3) 95% Progressed the Kanmantoo Grassy Woodland Revegetation – an award winning community collaboration FEMALE PARTICIPATION 18.3% MATERIALITY ASSESSMENT COMPLETED Organic Growth – Mineral Resources and Ore Reserve MINERAL RESOURCE 2,3 MINERAL RESOURCE 2,3 96% INCREASE 138% INCREASE Contained Copper Contained Gold 1. Local is defined as within a 125km radius from Kanmantoo 2. Compared to 2022 Mineral Resources Estimate 7.0Mt at 1.08% containing 75,900t Cu, see ASX announcement ‘Updated Nugent underground Mineral Resource Estimate released on 26 July 2022 3. See the Mineral Resources and Ore Reserves section in this Report for further information 2 2024 ANNUAL REPORT HILLGROVE RESOURCES LIMITED MAIDEN ORE RESERVE 3 2.8Mt 26kt Contained Copper 14koz Contained Gold ANNUAL REPORT SUSTAINABILITY REPORT FINANCIAL REPORT About Hillgrove Resources Hillgrove Resources Limited (‘Hillgrove’, ‘we’ or ‘the Company’) is a growing, Australian copper producer listed on the Australian Stock Exchange (ASX: HGO). Our vision To be a mid-tier, multi-asset Australian copper producer unlocking value for a sustainable future. Our culture and values Are pivotal to who we are and how we do business. SAFETY INTEGRITY DELIVERY We operate safely, protect each other and the environment and leave a positive legacy for future generations We are respectful, ethical and trustworthy, we do what is ‘right’ not just what we have to do We hold ourselves accountable for the delivery of sector leading results, what we are known for Our strategy To create long-term shareholder value through: BALANCED PROFILE GROWTH ASSET QUALITY FINANCIAL STRENGTH REPUTATION Multi-asset, Australian copper producer Demonstrate growth – organic and inorganic Improving asset quality through each transaction Achieve portfolio and growth objectives while retaining financial strength Deliver on promises; operating capability; stakeholder, investor and ESG responsibilities Tier 1 asset location The Kanmantoo Copper Mine is situated in the Adelaide Hills region of South Australia, just 55 kilometres from Adelaide and only three kilometres from the main dual carriageway to Port Adelaide. This strategic location offers significant advantages in both operating and capital costs, making it easier to attract and retain a skilled workforce that primarily resides in the area. The mine operated as a series of open pits from 2010 to 2020, producing around 137,000 tonnes of copper and over 55,000 ounces of gold. Operations restarted in May 2023 with underground mining commencing and first copper production achieved in February 2024. The operation is fully permitted and has significant infrastructure including a 3.6 million tonne per annum processing plant. ADELAIDE EL 6526 Kanmantoo Regional EL 6526 Kanmantoo Mine EL 6294 Wynarka EL 6174 Coomandook EL 6175 Coonalpyn EL 6207 Tintinara EL 6397 Laffer A U S T R A L I A SOUTH AUSTRALIA Figure 1: HGO Tenements as at 31 December 2024. HILLGROVE RESOURCES LIMITED 2024 ANNUAL REPORT 3 ANNUAL REPORT SUSTAINABILITY REPORT FINANCIAL REPORT Chair and Chief Executive Officer & Managing Director’s Statement Dear Shareholders, We are pleased to present the Annual and Sustainability Report for the year ended 31 December 2024. This year has been a pivotal one for Hillgrove, marked by significant milestones and achievements that position us for continued growth and success. We successfully transitioned to a copper producer, with our first copper production achieved in February 2024 and commercial copper production reached in July 2024. This marks a major step forward in Hillgrove’s evolution, supported by our strategic focus on organic growth and resource expansion. In addition, we were excited to announce the appointment of Bob Fulker as CEO and Managing Director who commenced on 1 July 2024. Bob brings extensive experience in operational excellence and growth, and we are confident that his leadership will be instrumental in driving Hillgrove’s future success. As we continue to create long-term value for our shareholders, we are proud to highlight our key achievements in 2024: Operational and organic growth XX Robust Operational Performance: Successfully produced 8,971 tonnes of copper and 1,813 ounces of gold in 11 months of operation Derek Carter Chair We successfully transitioned to a copper producer, with our first copper production achieved in February 2024 ... Derek Carter Chair XX Significant Resource Growth: A 96% increase in contained copper and a 138% increase in contained gold within the 2024 Mineral Resource estimate at Kanmantoo, alongside the release of a maiden Ore Reserve estimate Bob Fulker CEO and Managing Director XX Sustainability Initiatives: XX Exploration Advancement: Our exploration programs in ZZ Ended all onsite diesel generation and accelerated the 2024 resulted in significant resource expansion. Our next suite of exploration targets will be drill tested in 2025 by a 19,000-metre underground drilling program, targeting new exploration opportunities, including down-dip extensions to known mineralisation reduction of Scope 2 emissions through the connection to the South Australian grid XX Operational Excellence: Continued focus on operational predictability and cash flow generation, ensuring we are in a strong position to support future growth Financial performance XX Cash Flow: Achieved $21.0 million in net cash flow from ZZ Made significant progress on the Kanmantoo Grassy Woodland Revegetation Program, creating a multikilometre greenbelt that links our mining rehabilitation efforts with broader regional vegetation initiatives ZZ Actively contributed to the Kanmantoo Callington Community Consultative Committee (K4C), which continues to be an award-winning model of stakeholder engagement ZZ Maintained a predominantly residential workforce and operating activities XX EBITDA: Reported EBITDA of $22.5 million following the recommissioning of the Kanmantoo plant XX Financial Flexibility: Secured a $10 million Standby Debt Facility to provide financial stability and flexibility Sustainability XX Safety Improvements: Achieved a 14% reduction in Total Recordable Injury Frequency (TRIF), though we acknowledge the continued need to prioritise workforce safety. welcomed 98 new employees, reinforcing our commitment to local hiring ZZ Maintained female employee representation of 18.3% – we are committed to improving gender diversity and have outlined specific actions to support this goal ZZ Published our Climate Change Position Statement, reaffirming our commitment to sustainability and climate action ZZ Completed a materiality assessment, identifying key sustainability topics relevant to our business and stakeholders 4 2024 ANNUAL REPORT HILLGROVE RESOURCES LIMITED ANNUAL REPORT SUSTAINABILITY REPORT FINANCIAL REPORT Chair and Chief Executive Officer & Managing Director’s Statement cont. Looking Forward The successful mining ramp up and plant commissioning at the Kanmantoo Copper Mine established a solid platform for delivery in the calendar 2025 year. Group copper production is expected to increase significantly in 2025 to 12,000 to 14,000 tonnes of copper due to a combination of increased quarterly production rates and a full 12 months of production and All-in Costs are planned to improve to 3.40 - 3.90 (US$/lb) as the year progresses as further efficiencies are realised and mining rates continue to ramp up. 1 Looking ahead, we are well positioned to capitalise on a robust copper market, driven by increasing demand as a critical mineral in the global energy transition. Our focus on a disciplined approach to operational excellence and growth will ensure we achieve our vision of becoming a mid-tier, multiasset Australian copper producer, unlocking value for a sustainable future. 1. CY2025 production and All-in Cost guidance is extracted from ASX release titled “Hillgrove Resources Limited (ASX: HGO) report for the quarter ended 31 December 2024“ dated 21 January 2024 and available to view at www.hillgroveresources.com.au On behalf of the Board, we would like to express our sincere gratitude for your continued support and confidence. We also extend our thanks to our employees, contractors, local and state governments, and the communities that support us. Their dedication and collaboration are vital to our ongoing success. Sincerely, Derek Carter Chair Bob Fulker Chief Executive Officer & Managing Director HILLGROVE RESOURCES LIMITED 2024 ANNUAL REPORT 5 ANNUAL REPORT SUSTAINABILITY REPORT FINANCIAL REPORT Board of Directors and Officers The Directors and Officers of the Company during the whole of the financial year and up to the date of this report are: Mr Derek Carter Mr Murray Boyte Mr Roger Higgins Mr Robert Fulker Mr Joe Sutanto Independent NonExecutive Chair / Chair Nomination Committee Independent NonExecutive Director / Chair Audit and Risk and Treasury Committees Independent NonExecutive Director / Chair Remuneration Committee Chief Executive Officer and Managing Director Chief Financial Officer and Company Secretary BCom, MBA, CPA BSc, MSc, FAusIMM BCA, CA, MAICD Derek has over 50 years’ experience in exploration and mining geology and management. He held senior positions in Burmine Ltd and the Shell Group of Companies where he was responsible for discovering the Los Santos tungsten deposit in Spain, before founding Minotaur Gold NL in 1993. He resigned as Chair of Minotaur Exploration Ltd in November 2016. Derek was awarded AMEC’s Prospector of the Year Award (jointly) in 2003 for the discovery of the Prominent Hill coppergold deposit, the AusIMM President’s Award and is a Centenary Medallist. Derek is currently the Chair of Petratherm Limited (ASX: PTR). Murray has over 40 years’ experience in merchant banking and finance, undertaking company reconstructions, mergers and acquisitions in Australia, New Zealand, North America and Hong Kong. Murray holds a Bachelor of Commerce and Administration from the Victoria University in Wellington and is a member of the Australian Institute of Company Directors, and Chartered Accountants Australia & New Zealand. In addition, Murray has held executive positions and directorships in the transport, horticulture, financial services, investment, health services and property industries. Murray is currently Chair of National Tyre & Wheel Limited (ASX: NTD). He retired as the Chair of Eureka Group Holdings Limited (ASX: EGH) on 25 February 2025, and as a Non Executive Director of Eumundi Group (ASX: EBG) on 14 February 2025. BE (Hons), MSc, PhD, FAusIMM, FIEAust BEng (Mining), MSc (Mineral & Energy Economics), FAusIMM, Derek is a member of the Audit and Risk and the Remuneration Committee. Appointed 24 April 2020. Roger has over 50 years of experience in the resources industries, including being a former Managing Director of Ok Tedi Mining Limited in Papua New Guinea and Senior Vice President Copper at Canadian metals and mining company Teck Resources Limited. He was also Vice President and Chief Operating Officer with BHP Base Metals (Australia) and held senior operations and project positions with BHP in Chile. He is an Adjunct Professor with the Sustainable Minerals Institute, University of Queensland. Roger is currently a Non Executive Director of Worley Limited and Arafura Rare Earths. He was also recently the Chair of both Minotaur and Demetallica Limited and a Non Executive Director of Newcrest Mining Limited. Joe joined Hillgrove in 2011 and has held a Bob is a highly number of roles within experienced Mining the finance team, which Engineer with 39 years of spanned commercial experience in the minerals and planning to financial industry. He has held control before becoming Senior Executive positions the Company Secretary at Evolution Mining and OZ and Chief Financial Minerals, where he was Officer in 2023. Prior responsible for leading the to Hillgrove, Joe held a safe and efficient delivery number of roles which of significant operations. included as a corporate Bob’s extensive experience finance executive at spans Australia, Africa, PwC Corporate Finance, and Canada, where he commodities trader at has consistently achieved Glencore, and as an outstanding results in auditor at KPMG. A CPA various mineral sectors. qualified accountant, His strategic leadership Joe completed his MBA in corporate roles and at HKUST and London operational excellence Business School. through innovative Appointed 16 June 2023. solutions have significantly enhanced safety, operations, and profitability. Throughout his career, Bob has worked with industry leaders such as Rio Tinto, Normandy Mining, BHP, OZ Minerals, and Evolution Mining. Appointed 1 July 2024. Roger is a member of the Nomination, Audit and Risk, and Treasury Committees. Murray is a member Appointed 6 June 2023. of the Nomination and Remuneration Committees. Appointed 10 May 2019. 6 2024 ANNUAL REPORT HILLGROVE RESOURCES LIMITED ANNUAL REPORT SUSTAINABILITY REPORT FINANCIAL REPORT 2024 Operational Performance XX 8,971 tonnes of copper and 1,813 ounces of gold produced in 2024 XX The underground mine reached commercial production in July 2024 Table 1: Kanmantoo production for 2024 Units Dec 2024 Quarter Sep 2024 Quarter Jun 2024 Quarter Mar 2024 Quarter CY2024 Total Total Development m 1,621 1,401 1,238 1,405 5,665 Inventory Mined kt 311 280 211 122 924 Grade Mined % 0.85 1.20 1.24 0.82 1.03 Tonnes Processed kt 329 266 256 104 955 Grade Processed % 0.86 1.18 1.10 0.93 1.02 Recoveries % 93.5 93.3 91.4 82.7 90.2 Copper Produced t 2,637 2,923 2,584 827 8,971 Gold Produced oz 490 626 535 162 1,813 Silver Produced oz 21,854 26,372 23,377 5,810 77,413 Kanmantoo Production Mining Physicals Processing Physicals Production CY2025 Guidance CY2025 production and All-in Cost guidance presented below is extracted from ASX release titled “Hillgrove Resources Limited (ASX: HGO) report for the quarter ended 31 December 2024“ dated 21 January 2024 and available to view at www.hillgroveresources.com.au The successful mining ramp up and plant commissioning at the Kanmantoo Copper Mine has established a solid platform for delivery in the calendar 2025 year. Group copper production is expected to increase significantly from 2024 due to a combination of increased quarterly production rates and a full 12 months of production. Costs are expected to stabilise during the first quarter of 2025. All-in Costs per pound are planned to improve as the year progresses as further efficiencies are realised and mining rates continue to ramp up with the guidance calculated using an AUD:USD exchange rate assumption of 0.64. All-in Costs include C1 costs plus all site sustaining and major capital plus an allocation of Group Office costs. Table 2: CY2025 Guidance production and costs Metric 2025 Guidance Range Copper Production (tonnes) 12,000 – 14,000 All-in Cost (US$/lb) 3.40 – 3.90 HILLGROVE RESOURCES LIMITED 2024 ANNUAL REPORT 7 ANNUAL REPORT SUSTAINABILITY REPORT FINANCIAL REPORT Exploration Highlights We explore for copper-gold deposits and currently hold 100% of a series of Exploration Licenses covering 4,187 square kilometres in south-east South Australia in the Cambrian-Ordovician Kanmantoo Province. Over 95% Of the Kanmantoo Province is covered by the Tertiary Murray Basin which has limited past exploration. South-West Kavanagh Our total expenditure in 2024 was A$7.0M with 40 kilometres of drilling completed across the Kanmantoo Operation and Near Mine targets achieving resource expansion. In 2025 our exploration focus will continue on resource growth and identifying new discovery targets. XX 20.1m grading1.38% copper (uncut) from 87m Kanmantoo Mine Lease Exploration We have continued to explore within the Kanmantoo Mine Lease for copper-gold endowment. In 2024, in addition to grade control drilling on the Main Kavanagh mineralised zone, three zones of special interest have been drilled (Spitfire, South West Kavanagh and Nugent). Spitfire Exploration drilling to explore the down dip of the Spitfire Cu-Au zone intersected by the underground diamond drilling, returned 1: XX 40.0m grading 1.38% copper (uncut) from 74m downhole (23KVUG0238) XX 36.0m grading 1.78% copper 0.15g/t gold (uncut) from 175m downhole (23KVUG0101) The Spitfire drilling continues to demonstrate that there are wide zones of highergrade copper-gold breccia. These results have been included in the Mineral Resource Estimate Update released in October 2024 2. Exploration drilling to explore the South West extents of the Kavanagh copper-gold zone intersected by the underground diamond drilling returned 3 : downhole (24KVUG0315) XX 16.0m grading 1.05% copper (uncut) from 90m downhole (24KVUG0319) The South West Kavanagh drilling demonstrated the predictability of the mineralisation down dip and identified areas of previously unidentified higher-grade copper breccias. These results have been included in the Mineral Resource Estimate Update released in October 2024 4. 1 23 May 2024 – Underground drilling extends Kanmantoo mineralisation 2 18 October 2024 – Maiden Kanmantoo underground Ore Reserve and 96% increase in Copper Mineral Resource endowment 3 23 May 2024 – Underground drilling extends Kanmantoo mineralisation 4 18 October 2024 – Maiden Kanmantoo underground Ore Reserve and 96% increase in Copper Mineral Resource endowment Figure 2: Cross section showing all UG drill holes through SW Kavanagh and Spitfire with all surface DDH Giant Open Pit completed 2019 900mRL Underground development 24KVUG0315 20.1m @ 1.38% Cu SW Kavanagh 23KVUG0238 40m @ 1.38% Cu 800mRL 23KVUG0101 36m @ 1.78% Cu, 0.15g/t Au Drillhole Grades (%Cu) > 1.0 0.8 - 1.0 0.6 - 0.8 0.4 - 0.6 0.15 - 0.4 < 0.15 700mRL 23KVUG0102 30m @ 0.92% Cu 100 metres 23KVUG0101 15m @ 0.81% Cu 318,100mE 8 318,200mE 2024 ANNUAL REPORT 318,300mE HILLGROVE RESOURCES LIMITED 318,400mE ANNUAL REPORT SUSTAINABILITY REPORT FINANCIAL REPORT Exploration Highlights continued 318,300mE 318,500mE 318,700mE 24KVUG0451 9.4m @ 1.07% Cu, 0.07g/t Au & 1.53g/t Ag @ 940RL 6,114,700mN Nugent Pit 920 NUG inc SP 24KVUG0503 16m @ 2.96% Cu, 0.42g/t Au & 6.59g/t Ag @ 930RL 24KVUG0476 18.55m @ 5.69% Cu, 1.02g/t Au & 10.76g/t Ag @ 960RL Planned 920 Level Development 24KVUG0449 15m @ 0.85% Cu, 0.36g/t Au & 2.61g/t Ag @ 935RL 6,114,500mN October 2024 MRE Blocks >0.4% Cu 100 metres Legend (%Cu) > 5.0 1.0 - 5.0 0.8 - 1.0 0.6 - 0.8 0.4 - 0.6 0.2 - 0.4 < 0.2 Sliced at 960+/o 50m Figure 3: Plan view of Underground Nugent Drilling Completed to the end of Dec 2024. Nugent Regional Exploration Resource confirmation (grade control) and expansion drilling commenced during the year to explore the Nugent extents. Significant Nugent drill intersections include 5 : Kanmantoo Geophysical Anomaly XX 18.55m grading 5.69% copper and 1.02g/t gold (uncut) from 187m downhole in 24KVUG0476 XX 16.00m grading 2.96% copper and 0.42g/t gold (uncut) from 197m downhole in 24KVUG0503 XX 9.40m grading 1.07% copper and 0.07g/t gold (uncut) from 204m downhole in 24KVUG0451 XX 15.00m grading 0.85% copper and 0.36g/t gold (uncut) from 196m downhole in 24KVUG0449 The Nugent drilling has continued to provide information on the continuity of the Nugent mineral system and the geometry of the mineralised pods. These results have not been included in the Mineral Resource Estimate Update released in October 2024 6 and will be incorporated into updates following further drilling. During the year, drilling was completed on the geophysical anomaly approximately 400 metres north and 600 metres beneath the northern extents of the Kanmantoo open pit. The mineralisation observed within drilling is consistent with the down plunge extents of North Kavanagh however within the footprint of the interpreted geophysical structure there is an absence of mineralised veining. The alteration observed was consistent with the Magnetotelluric (MT) survey response. Assay results from drilling of the MT Geophysical anomaly include 7: XX 2m grading 0.83% copper and 0.06g/t gold downhole from 332m in KTDD246 XX 1m grading 1.05% copper and 0.21g/t gold downhole from 343.5m in KTDD246 XX 11.7m grading 0.77% copper and 0.08g/t gold downhole from 250.8m in KTDD247 XX 2.5m grading 0.84% copper and 0.44g/t gold downhole from 434m in KTDD247 Near Mine Exploration The Company continues to hold the copper-gold prospects within 10 kilometres of the Kanmantoo processing plant as high value targets for future drilling and evaluation for processing options. These include the previously announced 8 South Kanmantoo, Stella, Mullewa and North West Kanmantoo geochemical and geophysical targets. These prospects all have similar geochemical and geophysical signatures to the Kanmantoo mineral system. 5 21 January 2025 – Hillgrove Resources Limited (ASX: HGO) report for the quarter ended 31 December 2024 6 18 October 2024 – Maiden Kanmantoo underground Ore Reserve and 96% increase in Copper Mineral Resource endowment 7 23 October 2024 – Hillgrove Resources Limited (ASX:HGO) report for the quarter ended 30 September 2024 8 29 April 2019 – Cu-Au and Cu-Mo zones uncovered by exploration HILLGROVE RESOURCES LIMITED 2024 ANNUAL REPORT 9 ANNUAL REPORT SUSTAINABILITY REPORT FINANCIAL REPORT Exploration Highlights continued 6,114,000mN 900mRL Kanmantoo Long Section KTDD245 & KTDD247 Looking West North Kavanagh Coopers Giant Open Pit completed 2019 KTDD247 1,000mRL 2.5m @ 0.84% Cu, 0.44g/t Au @ 0.83% Cu, 0.06g/t Au Emily Star KTDD247 Nugent 11.7m @ 0.77% Cu, 0.08g/t Au Plan view of drill collars North Kavanagh Kavanagh KTDD246 & KTDD247 Collars Cu % Kavanagh > 1.0 0.8 - 1.0 0.4 - 0.8 0.2 - 0.4 Au g/t Emily Star > 1.0 0.5 - 1.0 Nugent 300 metres 400 metres Figure 4: Longitudinal section viewed to the West of exploration drilling targeting a geophysical anomaly. Inset: collar locations relative to existing drilling information. Regional Exploration continued Southeast Kanmantoo Province The regional area comprises 4,187 km2 of exploration licences within the Kanmantoo Province in the south-east of South Australia. During the year, 25 percent (1,465km2) of the south-east tenements were relinquished in areas identified as low value targets. The work plan for the coming year will focus on target areas to provide key geological knowledge to assist in identifying high value potential economic areas of interest. Continued interpretation of new mineral system models operating within the Kanmantoo Province along with a review of existing data has been a focus for our regional exploration activities, following on from work completed by the Geological Survey