Ok Tedi Mining Limited (Ok Tedi) provides the following clarification in response to recent questions raised in Parliament to Prime Minister Hon. James Marape and commentary in the media regarding its acquisition of the Misima gold project from Kingston Resources Limited.

Acquisition Structure and Licence Validity
Ok Tedi confirms that it acquired the shares of the entity that holds Exploration Licence 1747 (EL1747) on Misima Island. While the initial term of the licence reached its renewal date in March 2025, a valid extension application was submitted in accordance with the Mining Act and remains under consideration by the Mining Minister.

Under PNG law, an exploration licence continues to be valid while a properly lodged renewal application is being assessed. Ok Tedi understands that the appropriate process has been followed, including the conduct of a warden’s hearing and the submission of a recommendation to the Minister. Ok Tedi respects this process and remains confident that the renewal will be granted, given the national interest in progressing development of a well-defined, large-scale gold-silver resource.

Valuation and Strategic Fit
Ok Tedi confirms it paid A$50 million upon completion of the transaction, with further milestone payments of A$10 million after 12 months and another A$10 million upon Final Investment Decision (FID). A royalty of 0.5% applies only on production above 500,000 ounces of gold, with a buyback option for Ok Tedi at A$25 million.

This acquisition was commercially negotiated through a competitive bidding process, with Kingston Resources Limited (KSN), an ASX listed public company which is subject to additional strict governance, disclosure and regulatory requirements around commercial transactions of this nature.  In relation to the valuation of the Misima project, KSN disclosed that the Misima project has a post-tax net present value (NPV) at 7% real of A$1.86 billion at a gold price of US$2,700/oz (ASX release, 6 May 2025). The purchase includes all geological data, exploration results, historical operating records, and studies critical to progressing the project toward development.

Ok Tedi engaged expert advisers to ensure the transaction was commercially sound and comparable to industry benchmarks. Assertions that the transaction was uncommercial or fraudulent are inaccurate and disregard the value of the resource and the strategic importance of national ownership.

Benefit to Papua New Guinea
This acquisition is aligned with Ok Tedi’s “Growth 2050” vision to diversify the company’s portfolio beyond the Star Mountains. The project represents a significant opportunity to return a historic mine to production under 100% PNG ownership.

All shareholders of Ok Tedi, including Kumul Minerals Holdings, and by extension the people of Papua New Guinea, stand to benefit through future dividends, tax and royalty revenue, and broader economic activity. Ok Tedi also anticipates that Misima landowners will have the opportunity to acquire an interest in the project, alongside targeted investments in local infrastructure, employment, and social services.

Importantly, this acquisition ensures that ownership and value creation from the Misima project remain within PNG, reversing decades of foreign ownership and retaining long-term economic benefits for both the Misima and Star Mountains communities.

Governance and Transparency
The acquisition was subject to all required corporate governance approvals, including the full support of the Ok Tedi Board and its major shareholder, Kumul Minerals Holdings. Ok Tedi categorically rejects any suggestion of political interference or improper conduct. It is regrettable that such unfounded accusations have been published without basis, given their potential to undermine investor confidence in Papua New Guinea.

Conclusion
Ok Tedi remains committed to transparent, responsible, and nationally beneficial resource development. The Misima acquisition reflects a long-term strategic investment in PNG’s future, aimed at unlocking value for all stakeholders – landowners, the State, and the people of Papua New Guinea.