SILVER LAKE RESOURCES LIMITED – SUMMARY OF HALF-YEAR 2022 FINANCIAL RESULTS

Silver Lake Resources Limited (“Silver Lake” or the “Company”) is pleased to report its financial results for the first half of fiscal 2022

Gold sales of 126,718 gold equivalent ounces1 at a realized gold price of AU$2,418/oz (S1 FY21: 130,354 ounces at AU$2,400/oz)

EBITDA1 of $157.6 million (S1 EF21: $160.1 million) with a constant EBITDA margin of 51% (H1 FY21: 51%)

NPAT of $44.5 million (S1 EF21: $65.8 million), with year-over-year movement driven by higher amortization expense (non-cash) reflecting the increased scale of the deflector operation

The NPAT result includes a non-cash tax charge of $19.5 million with an equivalent decrease in the deferred tax asset on the balance sheet; Silver Lake has $270.2 million tax losses available at the end of the period

Cash flow from operations $120.1 million (S1 EF21: $160.5 million), reflecting the significant build-up of inventories during the period with a corresponding increase in inventories on the balance sheet

Cash and bullion $277.9 million at the end of the period (excluding $17.5 million of gold in circuit and concentrate on hand valued at net realizable value) reflects an underlying2 $40.1 million cash generation for the period with $101.9 million disbursements related to the acquisition of Harte Gold

cover book to December 31, 2021 was 75,500 ounces at AU$2,378/oz for delivery within the next 12 months

$10.8 million investment in exploration targeting both the upgrading of inferred resources to higher confidence categories and the discovery of new mineralization within proven mineralized corridors and near established infrastructure

The acquisition of Harte Gold Corp. finished on February 18, 2022

Announcement of the repurchase of shares on the market up to 10% of the shares issued on February 7, 2022

Well positioned to deliver FY22 Group gold sales guidance of 235,000 to 255,000 ounces of gold with copper sales of 600 to 1,000 tonnes within an AISC range of AU$1,550 for AU$1,650 per oncef year ended December 31, 2021.

Summary of the financial results for the first half of 2022

The results for the first half of 2022 reflect a period of solid operating performance for the Group, despite the difficult operating environment in Western Australia. The performance is reflected in key financial metrics with a consistent EBITDA result and strong free cash flow generation despite investment in underground development in the baffle area and ore stockpile generation at Mount Monger. The period also delivered the next phase of Silver Lake’s growth strategy with the execution of several transactions to acquire Harte Gold Corp. with the acquisition made after the end of the period on February 18, 2022. Half of the Company’s statutory profit after tax $44.5 million includes a tax charge of $19.5 million. The tax expense is non-cash and resulted in an equivalent reduction in the deferred tax asset balance on the balance sheet. AT December 31, 2021 the Company has $270.2 million tax losses available for offset against future taxable profits. The turnover for the semester amounts to $307.6 million the sale of 126,718 ounces of gold equivalent at an average realized price of AU$2,418/oz, down 3% from H1 FY21 ($316.3 million from the sale of 130,354 ounces of gold equivalent to AU$2,400/oz). The decrease in revenue reflects a 3% decline in gold ounces sold, partially offset by higher commodity prices realized during the period. EBITDA of $157.6 million was in line with pcp with a constant EBITDA margin of 51%. The EBITDA contribution was weighted towards Deflector which reported an EBITDA of $97.1 million with a margin of 62% (H1 FY21: $102.4 million and 67% respectively). Mount Monger’s EBITDA was $68.4 million to an EBITDA margin of 45% (H1 FY21: $67.0 million and 41% respectively). Non-recurring items for the period include business combination expenses related to the Harte Gold the acquisition of $0.8 million. The All-Inclusive Sustaining Cost (AISC) for the semester was AU$1,597/oz (S1 FY21: AU$1,502/oz), the increase reflecting a combination of broader industry cost and productivity pressures and the impact of movements in underlying physical values

Following the completion of growth projects in the Deflector area during FY21 and lower strip ratios to Mount Monger open pit this period, capital expenditure for H1 FY22 was reduced to $60.6 million (S1 EF21: $88.2 million). Semester investments included $44.3 million the development of mining capital, $5.5 million expenditure on property, plant and equipment and exploration expenditure for $10.8 million. Silver Lake continued to maintain its strong track record of cash generation.

Cash generated over the period (excluding Harte Gold transaction), totaled $40.1 millionresulting in a cash and bullion position at December 31, 2021 of $277.9 million and no bank debt. Additionally, Silver Lake has $9.8 million of gold in circuit and concentrate on hand valued at cost ($17.5 million at net realizable value) and listed investments of $11.6 million. At February 7, 2022, Silver Lake announced a market buyback of up to 10% of the common stock over the next 12 months. The buyback has been determined to be the most effective mechanism for deploying excess capital and allows Silver Lake to take advantage of stock price volatility through opportunistic stock purchases during periods when the stock price of the stock does not reflect the strong cash flow generation and solid market outlook. business

Contact:

Luc Tonkin

Tel: 8 6313 3800

Email: contact@slrltd.com.au