Greenwing Faces Execution Risks as It Plans to Separate Critical Minerals and Polymetallic Assets

Strategic Asset Separation to Unlock Value

Greenwing Resources Ltd (ASX, GW1) has outlined a clear strategy to maximise shareholder value by separating its Critical Minerals assets; comprising the San Jorge Lithium Project in Argentina and the Graphmada Graphite Mine in Madagascar; from its Que River polymetallic asset in Tasmania. This move, announced at the company’s November 2025 Annual General Meeting, reflects the distinct market dynamics and development pathways of these assets.

The Que River Project, rich in zinc, copper, gold, silver, and lead, has seen substantial progress over the past two years. An initial scoping study published during the quarter presents a low-capital pathway to early cash flow, leveraging existing open pits and nearby third-party processing infrastructure. The study projects the mining and processing of approximately 665,000 tonnes of ore, potentially generating undiscounted cash flows of around A$63 million within 12 months, underscoring the project’s commercial viability.

San Jorge Lithium Project, Expanding Resource Amid Rising Prices

In Argentina, the San Jorge Lithium Project continues to build momentum. The company holds a 100% interest in a substantial tenement package within the Lithium Triangle, including the San Francisco Salar. A maiden resource estimate from May 2024 reported 1.07 million tonnes of lithium carbonate equivalent (LCE), with ongoing geophysical surveys extending the known brine body significantly to the west and north. Market conditions remain favourable, with lithium carbonate prices exceeding US$20,000 per tonne during the quarter, bolstering the project’s long-term outlook.

Greenwing is advancing plans for a second drilling program and further metallurgical test work, aiming to refine processing pathways, including Direct Lithium Extraction technology, which could enhance recovery and operational efficiency.

Graphmada Graphite Mine, Strategic Positioning Amid Global Supply Shifts

In Madagascar, the Graphmada Graphite Mining Complex remains on care and maintenance but is poised for a potential restart and expansion. The company has initiated a Stage 2 scoping study to explore leveraging its existing mining lease and infrastructure. With a significant increase in its graphite resource to 61.9 million tonnes at 4.5% fixed carbon, Graphmada is well positioned to benefit from global efforts to diversify graphite supply chains away from China, which currently dominates the market.

Greenwing has engaged a US-based advisory firm to attract strategic investment and is in discussions with government agencies and potential partners, reflecting the asset’s growing strategic importance amid evolving international trade policies.

Financial Discipline and Corporate Developments

During the December 2025 quarter, Greenwing maintained a disciplined approach to expenditure, reporting net cash outflows of $220,000 on exploration and evaluation activities. The company ended the quarter with $925,000 in cash and access to an undrawn $8 million at-the-market equity facility, providing a solid financial runway for ongoing development activities.

Corporate governance was bolstered by the appointment of Peter Wright as Managing Director, a leader with deep experience in the company, and the successful passing of all resolutions at the recent AGM. These developments provide stability as Greenwing navigates its strategic asset separation and project advancement plans.

Overall, Greenwing Resources is advancing on multiple fronts, balancing near-term cash flow opportunities at Que River with longer-term growth potential in lithium and graphite markets. The company’s strategic moves and operational progress position it well to capitalise on the evolving critical minerals landscape.