b'Chairs ReportI am pleased to introduce Centaurus 2023 Annual Report and to reflect on what has been, withoutquestion, one of the more challengingbut at the same time strategically importantperiodsin the Companys history. Despite the backdrop of an uncertain macro-economic environment Licence (LP) by the Par State Environmental Agency, Semas.combined with largely unforeseen turbulence and upheaval impactingThe approvals process for Jaguar continues to progress in lineNickelour team has worked tirelessly to advance our flagship asset,with our targeted timeline.the Jaguar Nickel Project located in the world-class Carajs miningFurther afield, we secured a new exploration opportunity during district of north-eastern Brazil, towards financing and development. the year, with the granting of the Boi Novo Copper-Gold Project The challenging market conditions have necessitated a strategictenements in the Carajs Mineral Province. Boi Novo forms part rethink of the best path forward for the Jaguar Project withof our Horizon II Business Development and Growth Strategy in our ongoing Feasibility Study now focused on an initial nickelnorthern Brazil and lies less than 20km from BHPs Antas Norte concentrate-only project, with the potential to follow with acopper flotation plant. Initial exploration results from field work downstream nickel sulphate refinery operation as Phase 2 onceprograms at Boi Novo have been highly encouraging, with a maiden market conditions allow. This approach is expected to deliver adrill program expected to commence in Q2 2024. significantly lower capital cost for the Jaguar Project developmentAt our Jambreiro Iron Ore Project, located in the southeastern and deliver a simple, fundable project with reduced overall projectBrazilian State of Minas Gerais, Centaurus has recently commenced execution risk.a new study on the potential to deliver a Direct Reduction (DR) The Board is confident this phased development approach will enablequality pellet feed concentrate from Jambreiro ore. This study has Centaurus to maximise the value of the Jaguar Project, while alsobeen initiated in response to growing interest from potential off-take minimising risk to the Companys shareholders through excessivepartners in the steel industry, who are interested in accessing lower equity dilution. carbon emission iron ore. One of the best ways to achieve this is In parallel with the completion of the Concentrate Feasibility Study,through the production of a DR quality product for supply to electric Centaurus is also continuing to progress a strategic partneringarc furnaces. Our study work will now assess the best way to achieve process to evaluate partnering and funding options. This process,DR quality specifications, whilst also ensuring we can deliver robust supported by Standard Chartered Bank, has already generatedeconomics throughout the commodity price cycle.strong interest from potential partners. Looking to the coming year, the Companys planned work programs Our commitment to developing the Jaguar Project remains premisedin 2024primarily focused on our flagship Jaguar Project, but also on the longer-term outlook for nickel as an essential strategicincluding key work streams at the Boi Novo and Jambreiro projectsingredient in lithium-ion batteries and the EV and broader electricprovide an outstanding platform for long-term growth. revolution. We remain steadfast in this viewand in the importantThese programs will be undertaken with attention to ongoing role that reliable, low-cost sources of green Class-1 nickel will playexpenditure to ensure we protect our strong cash positionwhich in facilitating the global energy transition.totalled $34.7 million at the end of the reporting periodand deliver Throughout the year, the Company progressed a dual-trackmaximum value for money for our shareholders. We are conscious exploration strategy at Jaguar, targeting continued Resourceof the need to continue navigating this volatile macro-economic growth while also seeking to de-risk the project through in-fill andenvironment with great care.development drilling. Key highlights included the completion ofWe will also continue to maintain our unwavering focus on the Jaguar Deeps drilling program, which was designed to test forsustainability, with full details of these programs to be published in extensions to key deposits at depth.our Sustainability Report in May.This drilling confirmed that the Ona Preta Deposit (the highest-gradeIn closing, I would like to sincerely acknowledge the outstanding deposit at Jaguar) extends more than 300m below the bottom of theefforts of the Centaurus team. As always, I would also like to thank current Mineral Resource envelope and remains open at depth. Theseall our shareholders for your continued support.are tremendous results which support the potential for significant Resource growth at Jaguar, with our next Resource update scheduled to be reported after the delivery of the Feasibility Study.On the approvals front, we were very pleased to receive technical approval for our Plan of Economic Assessment (PAE) by the BrazilianDidier MurciaNational Mining Agency in January this year, as well as approval ofCHAIRthe Environmental Impact Assessment and of the PreliminaryCENTAURUS METALS LIMITED ANNUAL REPORT 5'