Cyprium Metals Limited has established a strategic commercial alliance with global commodities giant Glencore International AG. This partnership is instrumental in accelerating the restart of copper production at the Company's Nifty copper complex, situated in Western Australia's resource-rich Port Hedland region. By combining Cyprium's asset with Glencore's industry-leading expertise and market reach, the collaboration aims to unlock the full potential of the Nifty copper complex and position the companies as key players in the global copper market.

The strategic partnership is centered on four key areas critical to resuming copper production from Nifty: cathode offtake, sulphuric acid supply, concentrate sales, and technical support. Under this agreement, Glencore will purchase copper products from Nifty’s two processing plants, including off-spec materials that are commonly generated during the startup phase. This arrangement ensures a comprehensive approach to managing production and supply chain challenges while providing the necessary support and resources to facilitate a smooth and efficient resumption of operations.

Cyprium’s sale contract for copper concentrate is set to commence in 2026, which aligns with the earliest anticipated production date for concentrate from the Nifty mine. The contract terms are based on market prices and include flexibility regarding delivery points throughout its duration, allowing for adjustments as needed over the life of the agreement. This structure ensures that both parties can adapt to market conditions and logistical considerations, optimizing the contract's effectiveness and alignment with production timelines.

The commercial partnership encompasses several key elements: Cyprium has the option to purchase sulphuric acid to ensure a stable supply, technical support will be provided by Glencore Technology, and a working capital facility is included. This facility will enable Cyprium to shift the effective purchase point for cathodes from Port Hedland to the Nifty mine site, streamlining operations and potentially reducing logistical complexities. These components collectively aim to enhance operational efficiency, secure necessary resources, and support the overall success of the partnership.

The cathode offtake contract encompasses the sale and purchase of 100% of the cathodes produced and delivered to Port Hedland. It includes an initial fixed term, with the option for mutual extension thereafter. The contract terms and conditions are based on current market rates, taking into account the favorable dynamics of the copper market today. This arrangement ensures that Cyprium benefits from prevailing market conditions while securing a consistent outlet for its cathode products. The agreement is designed to bolster the stability of restarting cathode production by accommodating off-spec cathode materials at Glencore’s refinery located in Townsville, Queensland. Additionally, Cyprium will establish a supply agreement with Glencore for sulphuric acid under commercial terms.

A $20 million prepayment/working capital facility for copper production is waiting for final agreements. Additionally, a term sheet has been executed with Glencore International AG for the sale of 100% of copper concentrate production from the new surface mine at Nifty. This agreement, which starts immediately after commercial production, is set for a fixed term with an option for mutual extension. Glencore will also endeavor to deliver the Nifty concentrates to its Mt Isa Smelter, highlighting their commitment to facilitate the logistics of concentrate processing.

Glencore Technology will offer technical support to Cyprium under an agreement that includes a period of limited exclusivity. During this time, Cyprium and Glencore will work towards finalizing their contracts.