Emas Realizes the Use of IPO Funds According to the Plan, Supports the Acceleration of Operations at the Pani Gold Mine

JAKARTA - PT Merdeka Gold Resources Tbk (EMAS) said that the realization of the use of funds from the Initial Public Offering or Initial Public Offering (IPO) has been in accordance with the planned use of funds set by the Company, in line with the acceleration of the development of the Pani Gold Mine in Gorontalo.

The realization of the funds is part of the execution of the Pani Gold Mine which has now entered the initial production phase and operational ramp-up. The Company assesses that the disciplined and appropriate use of IPO funds further strengthens the readiness of the Pani Gold Mine to increase production scale in the second half of 2026.

President Director of EMAS Boyke P. Abidin said that the realization of the use of IPO funds is in line with the Company's main agenda to accelerate the operational readiness of the Pani Gold Mine.

"The realization of IPO funds is proceeding according to plan to support the development of the Pani Gold Mine as the Company's main asset. Our focus is to ensure that every stage of development is carried out in a disciplined and measurable manner to support sustainable production growth," he said in a written statement, Wednesday, June 3.

In the first quarter of 2026, Emas recorded initial gold production of 1,818 ounces with an initial sales volume of 516 ounces. This achievement marks an important milestone for the Pani Gold Mine in transforming from the construction phase to commercial operations.

In line with the ramp-up production process, the Company continues to develop additional heap leach pad areas gradually to support the increase in ore accumulation and gold production throughout the first half of 2026.

In addition to strengthening the heap leach capacity, EMAS is also developing a Carbonin-Leach (CIL) facility as a pillar for long-term processing capacity improvement at the Pani Gold Mine. Initial work on the CIL facility has begun since the end of 2025, covering the construction of the CIL pad, the construction of contractor support facilities, and the preparation of the tailing storage facility.

The Company is also finalizing the update of the Definitive Feasibility Study (DFS), with the target of making the Final Investment Decision (FID) by the end of the second quarter of 2026. With the combination of heap leach and CIL, EMAS strengthens the operational foundation of the Pani Gold Mine to support increased production scale.

The addition of heap leach capacity is expected to drive a significant increase in ore accumulation rate and gold production, with most of the production volume in 2026 projected to be realized in the second half. For 2026, EMAS targets gold production of 100,000 to 115,000 ounces.

On the operational side of the mine, ore production reached 2.5 million tons, supported by the development of transport roads and the optimization of large-capacity fleets to increase cost efficiency per unit. The company has also completed an initial drilling program at the Kolokoa prospect with 54 drill holes totaling 11,701.6 meters.

From this program, the Company has set an Exploration Target at Kolokoa in the range of 20 million to 40 million tons with gold grades of 0.3 g/t to 0.5 g/t, while the initial estimate of mineral resources is targeted to be announced in the second quarter of 2026.

Through the realization of the use of IPO funds which is running according to plan, Emas confirms its commitment in maintaining project execution discipline. The Company will continue to focus resources on increasing production capacity, strengthening cost efficiency, and developing the Pani Gold Mine as a pillar of long-term growth.