Lefroy Secures $3.6M Placement at 12.5c to Fund Gold Deposit Studies

Placement Boosts Funding for Mt Martin and Burns

Lefroy Exploration (ASX:LEX) has secured firm commitments to raise $3.6 million through a share placement priced at 12.5 cents each, representing a 12% discount to its 15-day VWAP. The raise will fund accelerated evaluation and development activities at the company’s flagship Mt Martin gold deposit and the high-grade core of the Burns deposit. Directors have committed $317,570 to the placement, pending shareholder approval, underscoring management’s confidence in the projects.

The placement involves issuing 28.8 million new shares, with the majority issued under existing placement capacity and the director component subject to approval at the next general meeting. Bridge Street Capital Partners acted as sole lead manager for the placement.

Mt Martin Resource Upgrade Sets Stage for Scoping Study

The fresh capital injection follows a recent resource upgrade at Mt Martin, which now boasts a 460,000-ounce gold resource at 1.6 g/t, marking a 5% increase driven by deeper inferred ounces and economic reclassification. Lefroy plans to use the funds to expedite a scoping study aimed at identifying a clear development pathway for Mt Martin, including targeted shallow resource definition and extensional drilling.

This project sits on Location 45, acquired in May 2023 from Franco-Nevada, reinforcing Lefroy’s control over a significant portion of the resource. The company’s focus on Mt Martin aligns with its broader strategy to build on its +1 million ounce gold base across its portfolio.

Burns Deposit Drilling to Upgrade High-Grade Core

Alongside Mt Martin, Lefroy will direct part of the proceeds to resource extension drilling and estimation work at the Burns deposit. The Burns project contains a 160,000-ounce high-grade core, which the company aims to upgrade through targeted drilling programs scheduled throughout 2026. This complements Lefroy’s ongoing efforts to unlock value from its advanced gold assets.

The company is positioning itself to sustain momentum while awaiting cash flow from the Lucky Strike Profit Share, which has recently seen mining and first gold production commence, marking Lefroy’s transition to producer status.

Maintaining Momentum Amid Production and Exploration

Lefroy’s Lucky Strike deposit, containing 79,600 ounces of gold, is being developed under a profit share agreement with mining operations underway since early 2026. The company anticipates significant value realisation over the next 12 months driven by scoping studies at Mt Martin and Burns, as well as cash flow from Lucky Strike.

With over one million ounces in resources across its portfolio and a zero-cost development pathway, Lefroy is well positioned to generate cash flow and advance exploration, supported by disciplined capital management and ongoing shareholder backing.

This placement builds on Lefroy’s recent resource upgrades and operational milestones, including the 460,000-ounce Mt Martin resource upgrade and first gold production at Lucky Strike, which together frame the company’s near-term growth trajectory.