Far East Gold advances exploration programs and secures strategic investment in March quarter

Far East Gold Ltd progressed multiple exploration initiatives across its Indonesian and Australian portfolios during the quarter ending March 31 2025, while securing the final tranche of a strategic investment from Xingye Gold Hong Kong Mining Company (Xingye). The company ended the quarter with A$12.6 million in cash and cash equivalents, up from A$10.4 million at the end of the December 2024 quarter. Its cash balance provides an estimated 4.9 quarters of funding based on current expenditure levels, positioning FEG well to deliver its upcoming exploration programs in Indonesia and Australia.

 Map showing location of FEG projects in Indonesia and Australia.

“During the quarter we were delighted with the response and overwhelming support from community and government at FEG’s projects. Significant advancements to ready the ground and community for drilling have been made at Idenburg with the objective being to provide the Company with a near-term development project that can be advanced together with our strategic
partners. The company plans to execute its drilling campaign during the second and third quarters, with the specific intention of increasing the already impressive JORC Resource estimate of 540,000 ounces of gold at a grade of 4.1 g/t, being derived from only 3 of the known 15 prospect areas which represent approx. 30% of the Idenburg project,” FEG CEO Shane Menere said.

“The company has also made significant advances with its social license at its Trenggalek project and has fully defined its Phase 1 drilling program to test 3 x porphyry systems and one epithermal gold system. The company plans to commence this advanced exploration during the second and third quarters of 2025.”

Indonesian exploration programs

Idenburg Gold Project – West Papua Province

The Idenburg Project is a 95,280-hectare, sixth-generation Contract of Work (CoW) located in the same province as several world-class, multi-million-ounce gold and copper deposits, including Grasberg (over 70 million ounces of gold), Porgera (over 7 million ounces of gold), Frieda River (20 million ounces of gold) and Ok Tedi (20 million ounces of gold).

The project is at an advanced stage, supported by historical exploration expenditure of more than US$25 million, including over 5,531 metres of diamond drilling. To date, fifteen prospect areas have been identified, although drilling has only been conducted at five prospects, with the majority of the 5,042 metres of drilling concentrated across three main areas.

Mineralised zones intersected at each of these three prospects remain open along strike and at depth, indicating strong potential for further resource growth. Importantly, detailed exploration has been completed over only 30% of the Contract of Work area, offering substantial upside for future exploration programs.

Mineral Resource table as estimated by SMGC based on historical exploration data using a cut-off grade of 0.1 g/t Au with no grade capping applied to the IMI historical assays.

FEG mobilised a drill rig to its flagship Idenburg Gold Project, with drilling planned to start around the end of May 2025. During the quarter, the company finalised plans for a 3,670-metre, 32-hole diamond drill program aimed at expanding the reported JORC-compliant inferred mineral resource of 540,000 ounces at 4.1 grams per tonne (g/t) gold.

Surface mapping and rock chip sampling led to the discovery of the ‘East Bermol’ zone, further highlighting the project’s potential. In addition, Murphy Geological Services initiated a detailed structural evaluation to refine targeting for future drilling campaigns.

Map showing prospect and resource areas within the Idenburg COW tenement. The planned holes will attempt to expand current defined gold resources within the Sua and Bermol prospect areas and complete initial drilling at the Kwaplu prospect area southwest of Sua.

The company has scheduled a 20-hole, 2,670-metre drill program focused on expanding the Sua and Bermol resource areas, complemented by 12 scout holes totalling 1,000 metres at the Kwaplu prospect, which has not been previously drill tested.

Woyla Project – Aceh Province

Preparations continued at the Woyla Copper-Gold Project, where Far East Gold holds a 51% interest, increasing to 80% upon completion of a feasibility study. A five-hole, 500-metre initial scout drill program was planned at the Kareung Reuboeh prospect. Mapping identified three veins up to nine metres wide with high-grade gold, to be tested along a 250-metre strike.

Map showing the location of exposed vein systems within the interpreted 6km long structural corridor that extends from Aloe Rek north to Rek Rinti. The high-grade Kareung Reuboeh veins are located approximately 500m north of the Aloe Rek veins previously drilled. Surface rock sampling has confirmed the occurrence of high-grade gold mineralisation within the Kareung Reuboeh veins. The Kareung Reuboeh veins have not been drill tested.

Trenggalek Copper-Gold Project – Central Java

Significant progress was made towards Phase 1 drilling at the Trenggalek Copper-Gold Project. Eighteen diamond drill holes totalling 5,740 metres are planned across three copper porphyry targets (Sumber Bening, Singgahan, and Buluroto) and one epithermal gold vein target at Buluroto. Community engagement is ongoing, with drilling anticipated in the second and third quarters of 2025.

Wonogiri Copper-Gold Project – Central Java

Far East Gold engaged with the Indonesian mining department to extend the Wonogiri IUP Exploration permit and continued development of a Scoping Study to demonstrate the project’s economic potential.

Strategic investment completed

During the quarter, FEG received A$4,783,449.60 from Xingye, completing the final tranche of a strategic placement initiated in 2024. In total, Xingye invested A$14,673,757.60 for a 19.99% stake in the company. The placement was priced at A$0.20 per share, a 47% premium to earlier capital raisings. Far East Gold views this strategic partnership as critical to advancing its exploration programs and future development plans.

Australian projects

Hill212, Blue Hill Creek and Mount Clark West

Following the satisfaction of earn-in expenditure obligations, FEG retained a 90% interest in its three Australian projects. Although no substantive exploration occurred at Hill212 or Blue Hill Creek during the quarter, preparations for ground proofing and mapping continued at Mount Clark West. An application for grant funding under the Queensland Government’s Collaborative Exploration Initiative (CEI) Round 9 has been submitted.

Corporate developments

In line with the terms of the Xingye placement, FEG appointed Monique Tang as a non-executive Director in March 2025, strengthening the Board’s experience and international engagement capability.