Material Information

CS04-08 (PSX/LSE/SECP)

March 25, 2025

Subject: Completion of the Feasibility Study of the Reko Diq Project and Associated Approvals

Dear Sir,

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Oil and Gas Development Company Limited ("Company") share of the project represents 8.33% as part of collective 25% held by the three Pakistani State-Owned Enterprises (SOEs) including Pakistan Petroleum Limited and Government Holdings (Private) Limited. The interest of the SOEs is held through Pakistan Minerals (Private) Limited. Of the remaining share, 25% is held by the Government of Balochistan (15% on a fully funded basis through Balochistan Mineral Resources Limited and 10% on a free carried basis) and 50% is held by Barrick Gold Corporation, which is the operator of the project.

The updated feasibility study outlines a 37-year mine life, to be divided into two phases, with Phase 1 having an estimated total capital outlay of USD 5.6 billion exclusive of the financing costs and inflation. Phase 1 is planned to be funded through a limited-recourse project financing facility of up to USD 3 billion with the remaining funded through shareholder contributions. The project will leverage five of the currently identified fifteen porphyry surface expressions within the current mining lease, highlighting substantial future growth potential.  Negotiations for the proposed project financing are ongoing. Phase 2 is planned to be funded through a mix of revenue generation from the project, additional project financing and shareholder contributions (if required).

Under the updated feasibility study, Phase 1 is planned to process 45 million tonnes of mill feed annually (Mtpa) from 2028. By 2034, Phase 2 is planned to double the processing capacity to 90Mtpa. Based on existing reserves, the Reko Diq project is expected to yield production of 13.1 million tonnes of copper and 17.9 million ounces of gold over the life of mine (100% basis).

Based on the above, the board of directors of the Company has approved an increase in the Company's funding commitment with respect to the project, reflecting its pro rata share of total capital investment, inclusive of project financing costs, to USD 627 million (to be adjusted for actual project financing costs and inflation). As per the estimates, the increase in copper and gold prices has more than offset the impact of higher project costs. The board of directors has also given an in-principle approval to obtain project financing. The shareholder equity contributions by the Company after taking into account project financing are expected to be USD 349 million (to be adjusted for actual project financing costs and inflation). The aforementioned approvals remain subject to shareholders' and regulatory approvals.

The above information is submitted in compliance of Section 96 of the Securities Act, 2015 and Clause 5.6.1(a) of PSX Regulations, for dissemination amongst your members please.

Yours Sincerely,

(Wasim Ahmad)

Company Secretary

Copy:

Executive Director Offsite-II Department, Supervision Division, SECP, 63, NIC Building, Jinnah Avenue, Blue Area, Islamabad.