b'CENTAURUS METALS ANNUAL REPORT 2023Based on Feasibility Study work, the cost of power (including transmission and taxes) will be approximately US$0.03 per kWh. Approval to access the 230kV network has been granted by the Ministry of Mines and Energy with stage 2 of the approval process to commence shortly, which is the approval of the Electricity Market Regulator (ONS). 3.5Approvals Technical Approval of Mining Lease Application (PAE) Late in the reporting period, the Company received the technical approval of its Mining Lease ApplicationPAE by the ANM (the Brazilian National Mining Agency).The technical approval of the PAE indicates that all technical requirements have been met in relation to the grant of the Mining Lease as well as recognition of the Companys capacity to implement the Project. The issue of the LI by SEMAS is now the final step needed before the Mining Lease is formally granted.Environmental Approvals In respect to the main environmental approval processes with the State Environmental Agency (SEMAS), Public Hearings required in the local municipalities to support the grant of the Preliminary Licence (LP)the key environmental approval for the development of the Jaguar Nickel Projectwere held on 10 and 11 October 2023. The Jaguar Public Hearings went very well and the positive support seen in the Public Hearings was important in securing, subsequent to the end of the reporting period, the Par State Environmental Committee (COEMA) approval for the Companys Environmental Impact Assessment (EIA) and Preliminary Licence (LP). Issue of LP Following the COEMA approval of the EIA and completion of the various internal process of the State Environmental Agency (SEMAS), the Company was formally granted the LP in February 2024. The issue of the LP was a key milestone for the Company and the Jaguar Nickel Sulphide Project as it attests to the fact the overall definition of the project is both environmentally and socially sound. Historically, this is the most challenging stage of the environmental approval process in Brazil.Environmental Agency Approval of the Jaguar Powerline Route Concurrently with the grant of the LP for the main Jaguar Project, the Company has also received the grant of the combined Preliminary Licence (LP) and Installation Licence (LI) for the high-voltage powerline that will supply power to the Jaguar Nickel Sulphide Project, following approval of the environmental study for the powerline route. 3.6Acquisition of Off-Take Rights During the reporting period, Centaurus entered into an important agreement with Vale Base Metals, via its subsidiary Salobo Metais S.A (Vale), whereby Vale extinguished its right to 100% of the nickel off-take from the Jaguar Nickel Sulphide Project in exchange for an increase in their existing royalty from the Project. The off-take rights stemmed from the original Jaguar Sale & Purchase Agreement (SPA) of 30 August 2019, when Centaurus acquired 100% of the Jaguar Project from Vale. Vale agreed to extinguish the off-take rights in exchange for an additional royalty on the same terms as the royalty arrangements included as part of the original Jaguar SPA, which increased Vales total Net Operating Revenue royalty over Jaguar to 1.75% for nickel sulphate and 2.00% for nickel concentrate and other products produced from the Jaguar Project. The completion of the transaction allowed Centaurus to take back full control and optionality over the sale and marketing of Jaguars strategic, long-life, low-greenhouse gas emission nickel and with this Centaurus has been able to commence a strategic partnering process in conjunction with Standard Chartered Bank. The partnering process continued over the reporting period with the finalization of Jaguar Feasibility Study being an important step in formalising any partnering/funding outcome for the project.3.7Drilling & Exploration Programs Drilling at the Jaguar Nickel Sulphide Project during the reporting period continued to grow and de-risk the project, with step-out and deeper drilling at key deposits confirming the potential for further significant Resource growth. Over 50,000 metres of drilling was completed in 2023 and this is expected to lead to an increase in the MRE when it is delivered post Feasibility Study completion in Q2 2024. 34 ANNUAL REPORT CENTAURUS METALS LIMITED CENTAURUS METALS LIMITED ANNUAL REPORT 35Page 8 of 54'