Far East Gold Ltd (FEG.AX) Quarterly Activities and Cash Flow Report

Brisbane, July 31, 2026 AEST (ABN Newswire) - Far East Gold Ltd (ASX:FEG) (FEGDF:OTCMKTS) has announced results from a productive quarter of exploration activity. Work focused on the Idenburg Gold Project located in the Papua & Papua Pegunungan Provinces, Indonesia where the Company released an updated JORC 2012 inferred resource estimate for the project and formally increased its ownership interest in the Idenburg Gold Project to 51%. The Company also received assays from two drill holes completed at the Mount Clark West tenement in Queensland indicating broad anomalous copper.

During the June 2026 Quarter, the Company received an unsolicited off-market takeover bid from Xingye Gold (Hong Kong) Mining Company Limited to acquire all outstanding Company shares. FEG established an Independent Board Committee (IBC) in relation to the unsolicited takeover bid and the IBC received independent expert advice which indicates that the offer undervalues the Company and the Company's assets.

INDONESIAN PROJECT HIGHLIGHTS:

- Gained 51% ownership interest in the Idenburg Gold Project - Stage One acquisition completed under the Conditional Share Purchase Agreement (CSPA), with A$6.5 million of consideration shares issued to the Vendor's nominee at A$0.13 per share. Refer to ASX announcements dated 9 October 2024 and 22 June 2026.

o Pathway triggered to increase FEG's ownership interest to 80%, upon completion and delivery to the Vendors of an Indonesian Feasibility Study by 31 December 2027.

- Governor's Recommendation Received - In addition to the UKL-UPL environmental approval secured for the Idenburg Gold Project, the Company received the Governor's Recommendation for the project - a key permitting milestone on the pathway to development. Refer to ASX announcements dated 17 March 2026 and 19 June 2026.

- Indonesian Feasibility Study commenced - the key component of the pathway to increase FEG's ownership interest to 80%. Refer to ASX announcement dated 19 June 2026.

o Workstreams underway include, LiDAR survey, geotechnical and hydrological investigations, environmental and permitting, civil and infrastructure engineering, metallurgical and mine design optimisation.

- Idenburg Scoping Study well advanced - being completed by Mining One Consultants to assess mine development options and underpin the Indonesian Feasibility Study workstreams. Refer to ASX announcement dated 15 May 2026.

o Development focused drilling completed at the Sua prospect to support resource growth and mine planning.

- Expanded JORC 2012 Inferred Resource - updated independent Mineral Resource Estimate (MRE) of 7.8 million tonnes at 3.1 g/t gold for 780,000 ounces at Idenburg - an increase of 240,000 ounces (~44%) on the initial MRE. Refer to ASX announcement dated 5 May 2026.

- Strike extension potential confirmed at the Sua vein system, that lies within the 5km Sua-Afley shear zone, by mapping at the Kwaplu and Sikrima prospects. Refer to ASX announcement dated 19 June 2026.

o Sikrima Prospect: surface grab samples of 16.07 g/t, 11.65 g/t and 7.39 g/t Au, consistent with historical surface assays; considered to have low potential for supergene enrichment.

o Kwaplu Prospect: surface grab samples including 45.63 g/t Au (52 g/t Ag), 23.6 g/t Au (10.8 g/t Ag) and 21.45 g/t Au (2.5 g/t Ag); intense alteration suggests possible supergene enrichment.

- High gold recoveries confirmed at Sua - preliminary metallurgical test work on Sua drill core composites achieved total gold recoveries of approximately 95% using conventional gravity and carbon-in-leach (CIL) processing. Refer to ASX announcement dated 21 April 2026.

o Three composites tested - with 94-96% of gold readily amenable to cyanidation and gravity recoverable gold exceeding 50%.

AUSTRALIAN PROJECT HIGHLIGHTS:

- Mount Clark West drilling - first assays received - drilling commenced in late 2025; assays for holes MCDD06 and MCDD07 (Appendix 1*) are consistent with intersecting the upper and peripheral zones of a potentially copper mineralised porphyry system. Refer to ASX announcements dated 7 Nov 2025 and 10 February 2026. Observed features include:

o Widespread alteration including propylitic and phyllic alteration.
o Quartz veining and brecciation.
o Disseminated sulphides (pyrite, chalcopyrite).
o Results under evaluation to determine the focus of any future work.

TAKEOVER OFFER -XINGYE

On 27 May 2026, the Company received an unsolicited, off-market takeover offer from Xingye Gold (Hong Kong) Mining Company Limited ("Xingye"), a wholly owned subsidiary of Inner Mongolia Xingye Silver & Tin Mining Co., Ltd, to acquire all of the fully paid ordinary shares in FEG that Xingye does not already own, at A$0.13 cash per share (the "Offer").

On 25 June 2026, the Company lodged its Target's Statement with ASIC and the ASX and dispatched it to shareholders. The IBC unanimously recommended that shareholders REJECT the Offer, which the IBC considers opportunistic and one that significantly undervalues the Company and its assets, including the development upside at the Idenburg Gold Project.

The Independent Expert, Lonergan Edwards & Associates Limited, engaged by the Company in connection with preparation of the Target's Statement, assessed the value of 100% of the ordinary shares in FEG on a 100% controlling interest basis at A$0.324 to A$0.444 per share (mid-point A$0.385) and concluded the Offer is neither fair nor reasonable.

FEG's Managing Director & CEO Shane Menere said:

"I am pleased to report a transformational quarter for Far East Gold, marked by significant operational and corporate milestones that have materially enhanced the Company's value proposition. Most notably, the completion of Stage One of the Idenburg acquisition has established Far East Gold as the 51% majority owner and operator of what we believe is one of Indonesia's most exciting emerging high-grade gold projects.

With an Inferred Mineral Resource of approximately 780,000 ounces at 3.1 g/t gold, extensive district-scale exploration upside and initial activities for the Indonesian Feasibility Study now underway as the pathway to increasing our interest to 80%, Idenburg is rapidly evolving into a cornerstone development asset for the Company.

The progress achieved during the quarter also reinforces the Independent Board Committee's view that the current unsolicited takeover offer from Xingye Gold materially undervalues Far East Gold and its portfolio of assets. The Independent Expert has concluded that the Offer from Xingye is neither fair nor reasonable, and the IBC remains committed to carefully managing this process with a clear focus on protecting shareholder interests and ensuring that any change of control or strategic transaction appropriately reflects the underlying value of the Company.

Our responsibility is to maximise value for all shareholders, and we will continue to pursue that objective while advancing our projects and maintaining disciplined stewardship of the business."

*To view the full Quarterly Report, please visit:
https://abnnewswire.net/lnk/YHZ89E9K

About Far East Gold Ltd

Far East Gold Ltd (ASX:FEG) (OTCMKTS:FEGDF) is an Australian junior exploration company led by some of the biggest names in Australian mining. The company has secured the commercial rights for the acquisition, exploration and development of six advanced gold and copper projects in Indonesia and Australia. The Company is underpinned by combined JORC resources of 1.54Moz gold and 190Mlb copper, with ongoing drill programs aiming to significantly increase these resources.

  

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