Tala Hamza Zinc Project, Algeria – Terramin Australia Limited

Overview

Tala Hamza Zinc Project (49% Terramin)

A large Mineral Resource of 53.0 million tonnes @ 5.3% zinc and 1.3% lead which supports a 20+ year mining project. A Definitive Feasibility Study was completed in 2018 and a revised 2.0Mtpa Mining study was completed in early 2026¹.
The project is fully permitted with all environmental approvals in place and, with the land acquisition being recently completed early work has commenced.
The Tala Hamza Zinc Project is owned by the Bejaia Zinc & Lead Spa (BZL), a joint venture vehicle in which Terramin holds a 49% shareholding with the remaining 51% held by two Algerian government-owned companies: Enterprise Nationale des Produits Miniers Non-Ferreux et des Substances Utiles Spa (ENOF) (48.5%) and Office National de Recherche Géologique et Minière (ORGM) (2.5%). Terramin holds management right over the project
Extensive established infrastructure in place with attractive low power and fuel costs.
The project has the potential to be in the top ten largest zinc mines in the world.

¹ ASX announcement 29 August 2018 – Tala Hamza Resources and Reserves Statement and ASX announcement 30 March 2026 – Tala Hamza Zinc Project Algeria Revised 2.0Mtpa Mining Study

Location

The Project is located in Algeria on the Mediterranean Sea, 15km from the regional city of Béjaia.
The city of Béjaia provides extensive infrastructure including an international airport and deep water port.
Location benefits include local workforce, grid power, abundant water and proximity to European zinc smelters.

Mining Studies

A Definitive Feasibility Study (ASX announcement 29 August 2018 – Tala Hamza Feasibility Study) in respect of Tala Hamza was completed in mid-2018 and an updated Mining study was completed in early 2026 – ASX announcement 30 March 2026 – Tala Hamza Zinc Project Algeria Revised 2.0Mtpa Mining Study. The 2026 Mining study indicated the following key statistics:

It will produce an average of 178,000 tpa of zinc concentrate and 33,000 tpa of lead concentrate over a 21-year mine life, peaking at 229,000 tpa zinc and 40,000 tpa lead concentrate from the mining and processing of an average of 2.0 mtpa of ore;
Total ore (Material Mined at a project evaluation cut-off grade of 3.5% Zn.eq) is 37 Mt at 5.3% Zn and 1.3% Pb:
Based on metal prices averaging US$1.27/lb zinc and US$0.91/lb lead, the project generates a strong financial return, with a pre-tax nominal NPV (8%) of A$1,130m;
Total pre-production capital for the project is expected to be US$415m;
Operating costs are expected to be competitive by world standards. The C1 cash cost, including all operating costs and excluding royalties, rehabilitation and capital expenditure, is estimated to be US$0.56/lb payable Zn with an All-in Sustaining Cost (AISC) of US$0.61/lb.

¹ ASX announcement 30 March 2026 – Tala Hamza Zinc Project Algeria Revised 2.0Mtpa Mining Study

The deposit remains open to the east and southeast, allowing the potential to expand production without reducing mine life.

BZL as project developer is entitled to significant financial assistance from the Algerian Government including:

7-year exemption from company tax
Exemptions from VAT and customs duties
Long term low-interest rate loans from Algerian Government banks
The arrangement of a significant debt funding package from a major Algerian government bank is nearing completion.

Recent Developments

In 2020, Terramin completed an optimisation study in respect of the Tala Hamza Zinc Project that considered an increase in the mining and processing to an average of 2.0 mtpa of ore (up from 1.32 mtpa). This study indicated that project returns can be further enhanced.

In March 2022, the joint venture partners endorsed the optimisation study and agreed to advance the Tala Hamza Zinc Project towards development (‘Decision to Mine’) and in May 2023 the Algerian mining regulator issued the Mining Permit for Tala Hamza.

The issue of the Mining Permit means that Tala Hamza has satisfied all Algerian regulatory, financial and environmental requirements and that it can now proceed towards development. In collaboration with our Algerian partners, this Mining Permit will allow for the mining and processing of 2.0 mtpa of ore. The Mining Permit encompasses all the area of land required for operation of the mine including mining, processing, haul roads, ore stockpiles, tailings dams, concentrate handling and maintenance and administration.

In October 2024, the Algerian Government completed the acquisition of 234 hectares of land which covers the footprint of the Mining Permit at a total cost of approximately US$30m. This land is now accessible for BZL to commence construction.

In March 2026, Terramin completed an updated Mining study to reflect the current status of the project. Financing discussion with a major Algerian Government owned bank are well advanced.

BZL continues work closely with the Algerian Government in respect of the provision of key infrastructure to the Project (at the Algerian Government cost) including:

Berth at the Port of Bejaia (construction underway)
Provision of HV power to Mining Permit (construction underway)
Truck access ramps onto highway (construction underway)
Bridge for mine traffic over local road (construction underway)