b'CENTAURUS METALS ANNUAL REPORT 2023Engineering Following the receipt of all information from the pilot program, the refinery process flowsheet was completed for all processing unit operations. During the reporting period, refinery design, the process plant layoutincluding all surface water control structures and final road layouts were finalised.Capital Cost Estimation By year-end, equipment sizing and selection for the Concentrator and Refinery was finalised with the selections allowing equipment and construction pricing to progress. With the Company now phasing the development of the Project, focused initially on a Concentrate only Project, the main components of capital cost for this initial phase are set out below.Mining The main capital cost in respect of mining is the pre-strip of waste for the construction of the Integrated Waste Facility (IWL) and ROM laydown area. Prices for Drill and Blast and Load & Haul have been received from a number of mining contractors with these prices being used to determine overall mining costs for the Project.ProcessingConcentrator The concentrator for the Jaguar flotation circuit has been designed for an annual throughput of 3.5Mtpa.All major equipment items for the concentrator have been priced with the key components of the circuit being: Jaw Crusher Sag Mill Flotation Circuits Thickeners for concentrate and tailings Construction packages for the costs associated with the installation of the concentrator circuit were still being received at the end of the reporting period. Non-Process Infrastructure (NPI) The key components of the non-process infrastructure include: Earthworks & Site Roads Preparation of IWL site Non-Process Site Buildings (restaurant, offices, gatehouse, control room, laboratory, workshop, warehouse, emergency services, etc.) 60km of offsite road upgrades and the upgrade of three local bridges Power Supply, including 38km of new 230kV power line and main sub-station with 230kV to 13.8kV transformer Operating Cost Estimation Mining The Feasibility Study for the Jaguar Project is being prepared solely on the basis of an open pit mining operation. It is expected that future underground operations will occur given significant mineralisation has been intersected up to 800 metres below the base of Feasibility Study open pit designs.The main operating cost for the Jaguar Project is the mining of ore and waste from the open pits. Prices for Drill and Blast and Load & Haul have been received from a number of mining contractors with these prices being used to determine overall mining costs for the Project. Centaurus will purchase all diesel for the project and free issue it to mining contractors. This approach will save on indirect taxes on the supply of diesel.All pit optimisation work has been completed and a detailed pit design and mining schedule has been prepared, which has been the basis for the estimation of mining costs.ProcessingConcentrator The concentrator circuit has been specified as a 3.5Mtpa circuit and takes the form of a traditional nickel flotation circuit. The main operating costs associated with the concentrator circuit are power, labour, grinding media and reagents. The Company will connect to the 230kV national grid in Brazil with the network being 80% renewable energy. As a result, carbon emission levels associated with use of power from the grid will be very low. Centaurus expects that by the time it has finalised a contract for the supply of power with one of the many generators in country, the power supply for the project will be 100% renewably sourced.34 ANNUAL REPORT CENTAURUS METALS LIMITED Page 7 of 54CENTAURUS METALS LIMITED ANNUAL REPORT 35'