b'CENTAURUS METALS ANNUAL REPORT 20233.3.2Jaguar Nickel Sulphide Project The Jaguar Nickel Sulphide Project was acquired from global mining giant, Vale S.A. (Vale) in August 2019. The Project hosts multiple nickel sulphide deposits and exploration targets within a 30km2 land package in the western portion of the world-class Carajs Mineral Province. Jaguar is located close to existing infrastructure, just 35km north of the regional centres of Tucum and Ourilandia do Norte (population +70,000) with access to power from the 230kV national grid only 20km southeast of the project near Vales Onca Puma Ferronickel operations. 3.4Feasibility Study Activities Significant activity was progressed in respect to the Jaguar Feasibility Study, particularly in relation to the development of capital and operating costs, project development initiatives and future infrastructure access during the reporting period.During the year, the Feasibility Study was focused on the economics of a fully integrated concentrator and refinery circuit to produce a nickel sulphate product from the project.The rationale for this approach was strong at the time of commencing the study but recent changes in the nickel market now means that the sound rationale used by the Company to support the commencement of the downstream refinery study no longer holds and that an alternate development pathway needed to be adopted. Consequently, subsequent to year end, the Company decided to to reshape the Jaguar Feasibility Studydeferring the parts of the Feasibility Study relating to a fully integrated downstream nickel sulphate project and focusing instead on completing the Feasibility Study based on an initial nickel concentrate-only project. The development of a potential downstream refinery will be considered in future when market conditions improve. The ongoing Feasibility Study work suggests that this approach will have a significantly lower capital cost compared to an integrated project and will ensure that the Jaguar Project remains robust and should deliver strong financial returns throughout the commodity price cycle given the Jaguar Projects anticipated low operating costs, stemming in large part from the clean, low-cost power (~US$0.03/kWh) that is available to the Project from the 230kV national grid in Brazil. The detail outlined below highlights the work completed on the Project during the year, based on producing a nickel sulphate product.The Concentrate Feasibility Study will draw upon a significant amount of this work to deliver the economic and technical assessment of the Project.Mining During the reporting period, strategic mine scheduling was concluded and aligned to the expected project construction and ramp-up schedule. In the pre-operations phase, mine development will be constrained to the required production of waste for Integrated Waste Landform (IWL) and other infrastructure requirements where bulk fill is required. Due to the low strip ratio to access first ore and the shallow weathering profile providing rapid access to transitional and fresh material, it is not necessary to undertake a substantial waste pre-stripping phase to enable a stable ore production profile to be achieved. Metallurgy & Pilot Plant Testwork Mineralogy Centaurus completed comprehensive testing and analysis of the mineralogy of the Jaguar Nickel Project as part of which 3km of core, drilled by Centaurus, was selected for mineralogical testing.The core was selected from geologically important areas across the entirety of the resource base of the Project, including Jaguar South, Jaguar Central, Jaguar West, Jaguar Central North, Jaguar North, Jaguar North-East, Ona Preta and Ona Rosa. Flotation Testwork Extensive flotation testwork was completed on the Jaguar nickel sulphide ore during the reporting period, with over 800kg of high-quality concentrate produced for feed to the Jaguar Pilot Plant. Variability composites were also prepared and tested. The flotation work provided an extensive geo-metallurgical understanding for optimisation of the mining schedule. From the flotation testwork, Centaurus estimates that it will be able to recover approximately 94% of the sulphide nickel processed to a concentrate (which is approximately 75% of the total nickel at the average head grade in the MRE). Pilot Plant Centaurus piloting program for the Jaguar Project was developed to provide detailed chemistry and process engineering data for the Feasibility Study and future front-end engineering design (FEED) requirements, as well as to ensure a high-quality nickel product could be achieved for marketing and off-take discussions.Approximately 30kg of nickel sulphate, 0.9kg of cobalt hydroxide and 5.8kg of zinc hydroxide was produced from the pilot program and is available for marketing to potential off-take partners. 32 ANNUAL REPORT CENTAURUS METALS LIMITED CENTAURUS METALS LIMITED ANNUAL REPORT 33Page 6 of 54'