Endomines Finland Oyj: Inside Information: Endomines Finland Plc Sells three Gold Deposits in Idaho, USA, to Elk Range Minerals LLC for 20 Million Australian Dollars

Endomines Finland Plc - Inside information - 19/11/2025, at 9:30 EET

Inside Information: Endomines Finland Plc Sells three Gold Deposits in Idaho, USA, to Elk Range Minerals LLC for 20 Million Australian Dollars

Endomines Finland Plc, through its wholly owned subsidiary of Endomines Idaho, LLC (collectively "Endomines"), has today signed an agreement to sell three gold deposits located in the state of Idaho, USA, to Australian company Yellowstone Mining Pty Ltd, through its wholly owned subsidiary of Elk Range Minerals LLC ("Elk"). The total debt-free purchase price is 20 million Australian dollars (AUD).

The deposits being sold are named Friday, Buffalo Gulch, and Deadwood (the "Deposits"). The transaction also includes machinery and equipment in connection with the Deposits. Most of Endomines' personnel currently working in Idaho will transfer to Elk upon completion of the transaction.

The divestment of the gold deposits has been a part of Endomines' strategic direction. According to the updated strategy published in Spring 2025, the company will focus on gold production at the Pampalo mine and exploration along the Karelian Gold Line.

The transaction will result in significant cost savings and a clearer business model for Endomines. The operational costs of the U.S. operations have been approximately EUR 0.7 million annually, of which the share related to the Deposits has been around EUR 0.5 million.

"We are very pleased that the gold deposits have found a new owner with a strong and experienced team and excellent capabilities to develop and grow the area's potential. We believe this is a clear win-win agreement for both parties and wish Elk Range Minerals every success in further developing the region. The transaction will streamline our business model, deliver significant cost savings, and enable us to focus even more effectively on realizing the potential of the Karelian Gold Line in line with our strategy. In addition, Endomines will have the opportunity to hold a 9.95% stake in Elk Range Minerals' parent company, providing a strategic foothold and the ability to benefit from the company's future growth," says Kari Vyhtinen, CEO of Endomines Finland Plc.

Elks team has many years of experience in similar gold projects

Elk is a special-purpose vehicle formed to acquire the Deposits and will be focused on exploration and development of these Deposits. The company is led by a highly experienced team of well-credentialed Australian mining executives with decades of experience in all aspects of the gold project exploration, development, and construction.

"We see significant exploration and development potential in the Idaho deposits and are excited to be investing in the region. Our team has decades of experience in discovering, developing, and operating gold projects around the world, and are able to focus our time on the progression of these Deposits. We look forward to working closely with the community in Elk City and building on the strong local mining heritage to unlock the full potential of these assets," says Campbell Baird, Chairman of Elk.

Purchase price to be paid in five installments

The Deposits will be sold for a total purchase price of AUD 20 million, to be paid in five installments:

• First installment: AUD 3.5 million on the completion date of the transaction, which is anticipated to be within 90 days of signing the agreement (the "Completion Date"), during which time Elk will finalize its financing arrangements.
• Second installment: The greater of: i) 9.95% of the shares of Elk's parent company listed on a public securities exchange or of another entity's shares listed on a public securities exchange that directly or indirectly controls the Deposits ("Elk ListCo") upon listing of Elk ListCo, or ii) Elk ListCo's shares valued at AUD 1.5 million at the time of listing of Elk ListCo. If the listing of Elk ListCo does not occur within 12 months from the Completion Date, Elk will pay AUD 1.5 million in cash on the one year anniversary of the Completion Date.
• Third installment: AUD 6 million upon the JORC compliant gold resources at the Deposits reaching a level of 0.5 million ounces, or no later than two years after signing the agreement.
• Fourth installment: AUD 5 million upon the JORC compliant gold resources at the Deposits reaching a level of 1.0 million ounces, or no later than four years after signing the agreement.
• Fifth installment: AUD 4 million one year after the start of commercial production at the Deposits, or no later than five years from the signing of the agreement. If the initial production level is below 15,000 ounces per annum, Endomines will be paid USD 500 per ounce as compensation for gold sold after the first 3,000 ounces. This compensation will reduce the agreed installment amount and may be up to the amount of the fifth installment.

For the third and fourth installments, Endomines has the option to choose payment in the form of shares in Elk ListCo instead of cash. The assets sold in the transaction will serve as collateral for Endomines until all installments have been paid.

Based on Endomines' balance sheet on 30 June 2025 and exchange rates, Endomines Finland Plc would record a one-time loss of approximately EUR 3.5 million from the transaction. The final amount of the loss will be determined based on the balance sheet and exchange rates on the Completion Date. The loss will be recorded in the result of the United States operations segment upon completion. Completion of the transaction is subject to customary conditions and the finalisation of Elk's financing arrangements.

Montana deposits remain under Endomines' control

In addition to the Deposits that are subject to the current sale, Endomines Finland Plc, through its wholly owned subsidiary of Endomines Idaho, LLC, holds rights to the Rescue and Kimberly deposits in Idaho and to the US Grant gold deposit in Montana, USA. Furthermore, the company holds a purchase option for the Kearsarge deposit in Montana. These deposits are not included in the current transaction and will remain under the company's control.

"During the negotiations, we identified significant potential in the Montana deposits. We have initiated an external assessment to evaluate the potential and development opportunities. We are looking forward to the outcomes of this assessment and will determine the best strategy for their ongoing progression or monetization afterwards," says Kari Vyhtinen.

More information in the webcast on November 19, 2025 at 1:00 PM EET

Endomines will provide more details about the signed agreement in a webcast on Wednesday, November 19, 2025 at 1:00 PM. The event will be held in English. You can join the webcast at: https://endomines.events.inderes.com/2025-11-19-pressconference. The recording and presentation materials will be available after the event on the company's website at: https://endomines.com/en/for-investors/reports-and-presentations/.

Further information:
Kari Vyhtinen
CEO
Endomines Finland Plc
[e-mail]
[phone]

Minni Lempinen
CFO
Endomines Finland Plc
[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 produce gold for the jewellery and electronics industries and create value by turning 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 Finland Plc is listed on the OMX Helsinki main list (PAMPALO). www.endomines.com