To the Stakeholders and Shareholders of Adyton Resources
Message from Tim Crossley, Managing Director
As we approach Christmas and the New Year, I would like to take the opportunity to reflect on the year that has been and look forward to 2026.
2025 was a transformational year for Adyton during which we laid the foundations for the Company's next phase of growth. Key strategic pillars were implemented, and the Company successfully advanced on the ground exploration activities across both our 100% owned Feni Island Project and the Fergusson Island Projects, located in Papua New Guinea ("PNG").
Drilling at the Fergusson projects commenced in late 2024 and continued through 2025 while drilling at Feni began in March 2025, marking an important milestone for the Company. Across all projects, Adyton completed a total of approximately 16,000 metres of drilling during the year, significantly advancing our understanding of these highly prospective gold, and, in the case of Feni, gold and copper systems.
Strategy Reflection
In April 2024 the Adyton Board set a strategy to advance all of the Company's projects concurrently, an ambitious objective for a junior explorer with limited funding at the time. We were, however well-positioned with several advanced exploration assets at Fergusson Island ready to enter the permitting phase, alongside Feni Island, one of the most compelling Tier 1 exploration opportunities in PNG.
The Board also reaffirmed its focus on Island based projects with excellent access and logistics and identified an opportunity at Fergusson Island with the clear objective of bringing these assets into cash flow. Achieving this would enable the ongoing advancement of Feni through internally generated funds while minimising shareholder dilution.
I am pleased to report that the execution of this strategy has delivered the outcomes we set out to achieve. Our Joint Venture partner EVIH, has made strong progress on advancing the Fergusson assets, providing the confidence to establish a target date for the restart of the Wapolu Project in late 2026. This progress, combined with the Company's approximately 20-month cash runway, places Adyton in a very strong position to fully deliver on the intent and outcomes of the Board's 2024 strategy.
Feni Island Project
Adyton's return to on the ground exploration at Feni marked a major inflection point for the Company in H2 2024, beginning with an extensive field reconnaissance program and a first-ever whole of Island drone magnetic survey.
This modern geophysical dataset has materially enhanced the Company's understanding of the mineralized architecture across Feni and continues to directly inform drill targeting.
Building on this momentum, Adyton mobilized PNG based drilling contractor Zenex to site in late February 2025 with drilling commencing in March. The initial program focused on confirmation and infill drilling at the existing Kabang Resource, providing a strong technical foundation for resource growth. With this work largely complete, drilling has advanced into step out and expansion mode, targeting the margins of Kabang and testing newly identified geophysical anomalies that mirror the signatures of known high-grade zones beyond the current resource boundary.
Results to date within the Kabang system have exceeded expectations and provide strong confidence that the ongoing drill program could materially expand the Kabang Resource. Of particular excitement are recent step-out holes southwest of Kabang, where core observations and strong near surface visual mineralisation indicate the potential discovery of a previously unrecognized ore zone. This emerging zone highlights the broader scale potential beyond the limits of the existing Kabang system and reinforces the opportunity for multiple centres of mineralisation within the Feni project area.
The Company's recent engagement of Global Ore Discovery and renowned epithermal and Lihir specialist Dr. Erin Johns has further strengthened the technical team and sharpened the exploration thesis. Their work has reaffirmed that Feni hosts multiple Kabang-style epithermal targets alongside high-impact concealed porphyry targets, positioning the project as a district-scale exploration opportunity with significant upside beyond the current resource.
In parallel with exploration success, Adyton continues to demonstrate leadership in local engagement and sustainable development. More than 95% of our Feni workforce are PNG nationals, with the majority recruited directly from Feni Island. The Company also maintains a 100% PNG based logistics and supply chain, ensuring the benefits of exploration activity are felt locally.
Adyton's commitment to community partnership extends beyond employment. During the year, the Company supported the Books4PNG Kids charity by providing logistics assistance to deliver educational materials to children across Feni Island. Reflecting its confidence in the long-term future of the project, Adyton has also committed to supporting the recommissioning of the Babase Island airstrip and is funding a clean water supply project for the nearby Pikan village, both tangible investments that leave a lasting positive legacy alongside exploration success.
Fergusson Island
In May 2024, Adyton entered into a Joint Venture agreement with East Vision Investment Holdings (EVIH), providing EVIH with the right (subject to the achievement of defined milestones) to earn a 50% stake in the Fergusson Island projects. Importantly, the agreement establishes a clear pathway for EVIH's parent company to provide all required project financing, significantly de-risking development and funding execution.
Throughout the year, substantial progress was made at Fergusson Island. 8,000 metres of drilling were completed across the Wapolu and Gameta projects, alongside comprehensive landowner engagement, and the completion of social and environmental base line studies. Metallurgical test work has advanced to a stage that supports confirmation of the proposed process flow sheet, and the Company recently executed its first non-binding Letter Of Intent for the purchase of Wapolu concentrate, an important milestone.
Near term activities are focused on completing feasibility studies, submitting environmental permits and advancing the Mining Lease application. In parallel, Adyton is finalising agreements with EVIH to accelerate development at the Gameta project, positioning Fergusson Island for a clear and well-defined path toward production.
Our key deliverables for 2026
Feni Island – 2026 Priorities
- Continue drilling and resource expansion at Feni Island including testing targets beyond the Kabang resource footprint. The primary objective is to demonstrate that the scale and continuity and the structural controls of the Feni system support expansion of the resource target greater than 5 Moz with an increasing proposition of Indicated resources that underpin feasible and economic mining scenarios;
- Target the release of an updated Mineral Resource Estimate (MRE) in H2 2026;
- Advance a preliminary assessment of the geothermal energy potential on the Island, evaluating its suitability as a future low-carbon or carbon-neutral power source for a potential mining operation; and
- Apply modern exploration vectoring and targeting tools to refine geological models and build confidence in new, large-scale exploration targets across the broader Feni system.
Fergusson Island – 2026 Priorities
- Complete feasibility workstreams and submit Environmental Permit and Mining Lease applications to support the restart of the Wapolu operation;
- Secure granting of the ML and Environmental approvals, together with completion of all required landowner agreements;
- Commence operations at Wapolu, marking a key transition from development to cash flow generation;
- Continuous infill drilling at Gameta to expand Indicated Resource, complemented by selective step-out drilling to test near-mine resource growth potential; and
- Advance permission at Gameta including submission of the Mining Lease and ML and Environmental Permit applications and completion of all baseline studies and landowner agreements.
None of this progress would have been possible without the dedication of our talented team, the guidance of the Board and the continued support of our shareholders. I would particularly like to acknowledge the strong support of our local landowners, especially the family of principal landowner, Vincent Terer, whose partnership is fundamental to our ability to operate on Feni Island.
I also want to recognize the unwavering commitment of our employees, and particularly Dr. Chris Bowden, our senior geologists and site leadership team Fred Iwei and Eugene Atase, along with all staff and local stakeholders who contribute every day to our success.
Finally, I would also like to acknowledge the support of the Mineral Resources Authority along with Provincial and Local Government support, whose leadership and assistance were instrumental in enabling Adyton to successfully return to operations on Feni Island.
Tim Crossley
Managing Director
For further information please contact:
Tim Crossley, Chief Executive Officer
E-mail: ir@adytonresources.com
Phone: +61 7 3854 2389
Phone: +1 778 549 6768
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.