Flinders Mines Limited provided the following activities report which summarise progress achieved during the quarter ended 30 June 2023 (June Quarter). Pilbara Iron Ore Project. Flinders has commenced a Scoping Study at the 100%-owned Pilbara Iron Ore Project (PIOP) in the Pilbara region of Western Australia.

The Scoping Study is intended to 'right size' the development of the PIOP, with a focus on speed to market and lowering upfront capital. The Scoping Study will provide a 'base case' scenario, based on a sustainable production rate of up to 3 million tonnes per annum of +60% Fe direct shipping ore (DSO) utilising public access and third-party transport and export infrastructure where possible. Flinders has engaged several reputable technical and financial consultants to deliver the Scoping Study, including CSA Global, Orelogy Mine Consulting, Ausenco and FTI Consulting.

During the June Quarter, an extensive amount of work was undertaken on progressing the Scoping Study, including geological reinterpretation of the Delta and Paragon deposits, with a focus on defining DSO grade mineralisation. The results of the Scoping Study are expected to be released in third quarter 2023. As announced post the June Quarter, the Company, Todd Corporation and BBIG Group Pty Ltd. (BBIG) mutually agreed to terminate the agreement for the Company to acquire 100% of Forge Resources Swan Pty Ltd. (Proposed Transaction), which included the assets of BBIG's Balla Balla Infrastructure Project.

The termination of the Proposed Transaction was due to the Conditions Precedent being unable to be fulfilled within the specified timeline required under the agreement. The Company will now retain the $3.3 million purchase consideration and will no longer be obliged to meet ongoing capital expenditure commitments of approximately $2 million per annum for tenement expenditure and maintenance. The Company has directed these savings towards the completion of the Scoping Study, including heritage and environmental programs, and to continue the DSO resource evaluation.

Canegrass Project. The Canegrass Project is subject to a Farm-in Agreement (Canegrass FIA) with Viking Mines Limited (Viking), whereby Viking can earn up to a 99% interest in the Canegrass tenements by spending $4 million on exploration and making payments to Flinders of $1.25 million over 54 months (from 30 November 2022).