Endomines Finland Oyj: Endomines Half-Year Business Review 1.1.2025-30.6.2025: Strategic changes accelerated revenue growth to 64 %

Endomines Finland Plc - Stock Exchange Release, Half-Year Interim Report - 14/8/2025, at 10.00 EEST

Endomines Half-Year Business Review 1.1.2025-30.6.2025: Strategic changes accelerated revenue growth to 64 %

This release is a summary of Endomines Finland Plc's Half-Year Report for the period January-June 2025. The full report is attached to the release and available on our website at https://endomines.com/en/for-investors/reports-and-presentations/.

January-June 2025 in brief

• The group's revenue increased by 64 % and was MEUR 21.5 (MEUR 13.1)
• The group's EBITDA was MEUR 7.7 (MEUR 1.9), or 36 % of the revenue (15 %)
• The Pampalo production segment's EBITDA was MEUR 10.0 (MEUR 4.0), or 47 % of the revenue (31 %)
• The group's operating result was MEUR 5.4 (MEUR 0.1)
• The group's net result was MEUR 2.3 (MEUR -1.0)
• Operational cash flow before investments was MEUR 5.1 (MEUR -0.1 million)
• Gold production in January-June increased by 25.8 % and was 274.7 kg (218.3 kg), or 8,832 ounces (7,019 ounces)

• In January 2025, Endomines announced beginning the preparations for a financing package of around 10 million euros to speed up the development of the Karelian Gold Line. At the same time, it was announced that preparations for the strategy update are underway. The focus of operations will be on implementing new projects to raise the production level and growing the company to a larger size category.
• In January 2025, Endomines agreed with the company's largest owners on a 2.3 million euros convertible loan as part of the 10 million euros financing package.
• In April 2025, Endomines announced that it has agreed on a new long-term financing arrangement valued at up to 12 million euros. In accordance with the plan announced in January, Endomines signed an agreement with LocalTapiola, a Finnish Pension Insurance Company and Pohjois-Karjalan Osuuspankki for a financing arrangement which includes a secured loan of up to 8 million euros, an account limit of 3 million euros, and bank guarantee and financing limits totalling a maximum of 1 million euro.
  
  
• In February 2025, Endomines announced the discovery of a new gold potential zone on the Karelian Gold Line. Outcrop samples in Ukkolanvaara contained significant amounts of gold. Based on the results, the findings represent a new, previously undiscovered gold mineralization.
• In May 2025, Endomines reported a high-grade drilling result that confirms that Ukkolanvaara area contains significant amounts of gold. The results are significant, as the same drill hole intersected three significant gold zones.
• In June 2025, Endomines reported that the high-grade gold zone reported in May 2025 extends to a depth of at least 150 metres. Additionally, the results show that the iron formation is consistently mineralized, and the Ukko deposit carries gold mineralization over a strike of at least 400 metres.
  
  
• In March 2025, Endomines reported its annual total resource estimate, which includes all deposits owned by Endomines. The resource estimate for the Karelian Gold Line is nearly 0.5 million ounces, and the gold resources increased by 59 % compared to 2024.
  
  
• In May 2025, Endomines published its updated strategy for the years 2025-2029. Endomines is entering a new phase in its operations, focusing on bringing new projects into production and thereby significantly expanding the company. The goal is to open a new production facility or expand the current Pampalo facility after the strategy period, approximately in 2030. With this expansion, the company aims for a 500-700 percent increase in gold production compared to the 2024 production level.

Group's key figures

Key figures	Unit	1.1.-30.6.2025	1.1.-30.6.2024	1.1.-31.12.2024
Revenue	MEUR	21.5	13.1	28.7
Pampalo production revenue	MEUR	21.5	13.1	28.7
% of revenue	%	100 %	100 %	100 %
Operating expenses	MEUR	-13.9	-11.2	-22.9
EBITDA	MEUR	7.7	1.9	5.8
Pampalo production EBITDA	MEUR	10.0	4.0	10.3
% of revenue	%	47 %	31 %	36 %
Depreciation and impairment losses	MEUR	-2.2	-1.8	-3.2
Operating result	MEUR	5.4	0.1	2.6
Net result	MEUR	2.3	-1.0	0.3
Net gearing ratio	%	29 %	56 %	32 %
Equity ratio	%	54 %	50 %	54 %
Earnings per share	EUR	0.2	-0.1	0.0
Cash Cost in Pampalo, excl. investments	EUR/oz	1,325	1,306	1,281

The group's revenue increased by 64 % and was MEUR 21.5 (MEUR 13.1). 100 % of the group's revenue consists of the revenue of Pampalo production segment. The increase in revenue is a result of the increase in production volumes and the high market price of gold. The group's EBITDA was MEUR 7.7 (MEUR 1.9), and the EBITDA of the Pampalo production segment was MEUR 10.0 (MEUR 4.0), or 47 % of the revenue (31 %).

In the first half of the year, Endomines' result is burdened by non-recurring costs related to advisory and legal fees, as well as transaction costs for the financing arrangement, totaling approximately MEUR 0.3. In addition, non-recurring costs arose from legal fees related to Power Mining Oy's business acquisition. Non-recurring advisory and legal fees and other costs related to USA operations amounting to approximately MEUR 0.2 has incurred. Additionally, the result was impacted by changes in the EUR/USD exchange rate, leading to foreign exchange losses of 1.8 MEUR (0.3 MEUR) due to the translation of Endomines Idaho LLC's balance sheet items.

Significant events after the end of the reporting period

• On July 7, 2025, Endomines announced investing in domestic gold production and acquiring Power Mining Oy's Pampalo mining operations. The transaction is valued at approximately EUR 2.55 million and will be financed with Endomines Oy's cash reserves. With the transfer of operations, the majority of the employees of Power Mining Oy working at the Pampalo mine will transition to Endomines' employment on the transaction's completion date, September 1, 2025. The transaction includes the machinery and equipment necessary for underground mining, valued at EUR 1.95 million, as well as an inventory valued at approximately EUR 0.6 million. The acquisition supports Endomines' strategy and enables developing the mine's operations, safety, and sustainability in a new way. The acquisition will result in significant cost savings. The costs of gold production are estimated to reduce by approximately EUR 90-120 per ounce from 2026 onwards.
• On August 12, Endomines announced the results of the drilling program carried out during January-June at the Pampalo gold mine. The objective of the program was to complement the high-grade drilling results obtained in 2024 and to confirm the continuity of the gold ore between the next planned production levels, between mine levels 915 and 975. The results indicated that the planned production area contains a wide, high-grade gold zone, reinforcing the area's potential for the continuation and development of gold production at Pampalo. The area is scheduled to be mined during 2026-2027.

CEO's Review

During a transformation phase, results always materialize with a delay - months after the actions have been implemented. In early 2025, we finally saw the full impact of the strategic changes made in 2022. The focus on operations in Finland and the Karjalan Gold Line, combined with a strong gold market, were reflected in our January-June results. Our revenue grew by an impressive 64%, and the Pampalo production segment's EBITDA reached a record level of EUR 10.0 million (EUR 4.0 million), representing 47% (31%) of revenue.

I am extremely pleased with the strong results and the significant transformation across all areas of our business. We have successfully transformed the company into a rapidly growing enterprise.

The revenue growth was driven by a 25.8% increase in production volumes compared to the reference period, as well as the positive development of the gold price. The production in early 2025 was the highest half-year output at Pampalo since operations restarted in December 2021. The unit cost per ounce, excluding investments, was EUR 1,325/oz (EUR 1,306/oz). The Group's EBITDA was EUR 7.7 million (EUR 1.9 million), corresponding to 36% (15%) of revenue. Operating profit was EUR 5.4 million (EUR 0.1 million), or 25.3% of revenue (0.9%). Net profit amounted to EUR 2.3 million (-EUR 1.0 million), or 10.6% of revenue (-7.4%).

It is worth noting that the Group's result was impacted by EUR 1.8 million in foreign exchange losses related to balance sheet items in the USA operations segment, as well as EUR 0.3 million in one-off costs related to the financing package. Cash flow from operations before investments was EUR 5.1 million (EUR -0.1 million). The average gold price in January-June 2025 reached record levels at USD 3,072/oz, compared to USD 2,205/oz in the reference period.

During the first half of the year, we entered a new phase in our operations, focusing on bringing new projects into production and significantly expanding the company. We updated our strategy in May, incorporating critical minerals into Endomines' strategic focus. The Southern Gold Line area contains tungsten, a critical mineral listed by the EU, as well as molybdenum, which is essential for various industrial sectors.

As a pioneer in sustainable mining, we continue to uphold responsibility as the backbone of our operations. We aim to do things right and be proud of what we do and how we do it. In our updated strategy, we also emphasized financial stability. We want to differentiate ourselves from junior mining companies that rely on continuous small funding rounds. To support financial stability, we secured a EUR 12 million financing package at the end of April. The purpose of this financing is to enable the implementation of our strategy in the coming years and to provide financial security for the longer term. Our new financing partners represent the most responsible and sharpest edge of Finnish business.

In our strategy, Pampalo remains the center of our production and the engine of our growth. In early July, we acquired our subcontractor Power Mining Oy's Pampalo mining operations to support our growth. This acquisition allows us to develop the mine's operations, safety, and responsibility in new ways while achieving significant cost savings. The transformation phase will continue until the end of 2025, and we expect the savings to materialize in 2026.

In May, we also published our new long-term goals and roadmaps to achieve them. Our long-term goals are:

• 1.5-2.0 million oz gold resources will be defined on the Karelian Gold Line by the end of 2030.
• Annual gold production level of 70,000-100,000 ounces around 2030.
• Initiation of production of tungsten, a critical mineral listed by the EU, and molybdenum, an important industrial mineral, around 2030.
• Fossil-free gold production by 2035.

An ambitious strategy requires additional resources to be realized. In May, we expanded our management team with a Chief Sustainability Officer and a Chief Communications Officer. The expanded management team brings dynamism, diversity, and strengthens the company's overall capabilities.

We will continue to make significant investments in exploration, and the key event of the first half of the year was undoubtedly the discovery of the Ukko deposit in Ukkolanvaara. Ukko is a BIF (banded iron formation) type deposit, where gold occurs in association with iron formations. These types of deposits are rare in Finland. The iron deposit in Ukkolanvaara is visible in magnetic and electromagnetic maps, and based on the maps, the iron deposit appears to be very large. Our goal now is to study how and where gold occurs in the area. Since the initial results from the Ukko deposit have been excellent, the Ukkolanvaara area has become our top exploration priority. We have also included the area in the environmental impact assessments of the Southern Gold Line.

Our USA operations are not part of our strategic focus areas. A simpler corporate structure would also bring us approximately EUR 0.7 million in annual cost savings. We continue active negotiations in the USA and aim to find a solution as quickly as possible.

We enter the second half of the year with a positive outlook and believe in the benefits of increased production volumes. The outlook for the gold market remains positive, and recent forecasts have approached new price levels. The gold price is particularly influenced by U.S. policy, general geopolitical uncertainty, and large gold purchases by central banks. Through these purchases, gold has become the world's second-largest reserve asset, surpassing the euro.

Our golden journey is still in its early stages, but much has happened in just six months. I want to thank our employees for their excellent work, as well as our shareholders, partners, and all stakeholders for the incredible journey that has enabled the company's transformation into a growth company. We will continue to take actions toward our new strategic goals.

Guidance for fiscal year 2025

We estimate gold production to be between 16,000 and 22,000 oz (497.7 kg - 684.3 kg). In 2024, Endomines produced 14,304 ounces (444.9 kg) of gold.

Production growth is estimated to be greater during H2-2025.

Webcast

A live webcast for analysts, investors, and the media will take place on August 14th, 2025, at 14.00. The event will be held in English. Participation in the event at: https://endomines.events.inderes.com/q2-2025. A recording of the webcast will be available later on the company's website at https://endomines.com/en/for-investors/reports-and-presentations/

Further information

Kari Vyhtinen
CEO, Endomines Finland Oyj
[e-mail]
[phone]

Minni Lempinen
CFO
Endomines Finland Oyj
[e-mail]
[phone]

Endomines Finland Plc is a Finnish forerunner in sustainable mining. Our operations are focused on gold production and exploration in the Karelian Gold Line in Eastern Finland. We also own the rights to seven gold deposits in the US. We produce gold for the jewelry and electronics industries and create value by turning natural resources into wealth, and we also create value by transforming natural resources into wealth, an investment that can withstand the volatility of global politics. Our vision is to develop the Karelian gold line into one of the most important and sustainable gold-producing regions in the world. Endomines is listed on the OMX Helsinki main list (PAMPALO). www.endomines.com.