Freehill Mining Partners Austral Gold to Advance Chile Copper-Gold Projects

What the Freehill Mining partnership with Austral Gold means for Chile copper-gold projects

Freehill Mining Ltd (ASX: FHS) has formalised a Memorandum of Understanding (MOU) with Austral Gold Limited (ASX: AGD) to cooperate on copper and copper-gold project generation and development in Chile. The Freehill Mining partnership with Austral Gold for Chile copper-gold projects, announced on 9 July 2026, is intended to bring recognised technical, operational and regulatory capability into Freehill Mining Ltd's Chilean portfolio while its aggregates business continues to grow as a separate revenue stream.

The MOU is currently non-binding, with the parties intending to move to project-specific binding agreements following successful due diligence and negotiations.

What the MOU actually means

In the announcement, the MOU is described as an agreement in principle between Freehill Mining Ltd and Austral Gold to work together across the full project lifecycle in Chile. This includes:

• Identification and evaluation of mining projects, with a focus on copper and copper-gold systems
• Acquisition, exploration and development of selected opportunities
• A commercial framework based on a cost-plus services model
• The potential for Freehill Mining Ltd shares to be issued to Austral Gold as consideration for services
• Participation rights for Austral Gold in projects where it has provided services

Under the cost-plus model, Austral Gold is expected to provide technical and operational services at cost plus an agreed margin. This type of structure can help keep upfront cash outflows controlled while still giving Freehill Mining Ltd access to experienced teams.

The MOU is reported to be non-binding except for confidentiality, termination and related provisions. Both parties have stated an intention to:

• Negotiate a formal co-operation agreement covering the broader relationship
• Enter into project-specific binding agreements on assets where due diligence and commercial terms can be agreed

Importantly, the announcement confirms that the MOU excludes and does not affect Freehill Mining Ltd's existing aggregates processing operations, which continue as a distinct business.

"This MOU is a positive step in delivering on Freehill's strategy to expand into copper with an established South American mining and exploration company with deep expertise, and where we have a strong connection. Austral's technical capability complements our project generation and funding capabilities, as well as our own network which has excellent in-country connections."

— Paul Davies, Managing Director and CEO, Freehill Mining Ltd

The projects on the table

The MOU builds on two copper-gold assets that Freehill Mining Ltd has already optioned in Chile. These projects form the initial focus for cooperation, with scope to assess additional targets.

These figures are referenced from previous Freehill Mining Ltd announcements dated 27 February 2026 (Joshua) and 13 May 2026 (Blanco y Negro).

The Joshua Copper-Gold Porphyry Project is described as a large early-stage target, with:

• A land package of approximately 5,100 hectares
• Multiple porphyry phases over a 6 km by 3 km corridor
• Historical drilling that reportedly intersected 400 metres at 0.33% copper equivalent (CuEq) from surface

Blanco y Negro differs in that it is covered by granted mining leases and already has an MRE reported. According to Freehill Mining Ltd, the MRE stands at:

• 1.5 million tonnes grading approximately 1.4% copper and 0.5 g/t gold
• Contained metal of 20,000 tonnes of copper and 24,000 ounces of gold

For investors, this combination of a large porphyry-style exploration target and a smaller but more advanced copper-gold project presents exposure to both scale potential and nearer-term development optionality, subject to ongoing technical and economic assessments.

Educational section: understanding copper porphyry systems

To interpret the Joshua project and similar targets in Chile, it is useful to understand what a copper porphyry system is and why it is relevant to Freehill Mining Ltd and its investors.

What is a copper porphyry?

A copper porphyry is a very large mineral system that typically contains copper along with other metals such as gold and molybdenum. It is associated with intrusive igneous rocks called porphyries, where metal-bearing fluids have moved through fractures and cracks in the rock over long geological time.

Key characteristics include:

• Large size: These deposits can extend hundreds of metres vertically and over kilometres horizontally.
• Low to moderate grades: Typical copper grades are often below 1%, but the size of the system can support large-scale mining.
• Multiple metals: Copper is usually the primary metal, but gold and sometimes silver or molybdenum can add to the project value.

Chile hosts many of the world's most important porphyry copper deposits, which is one reason it is a focal country for copper-focused explorers and producers.

Why does scale matter in porphyry deposits?

Porphyry deposits are usually mined using large open pits. This means:

• Ore can be extracted and processed in high volumes
• Lower grades can still be economically considered if mining and processing costs remain competitive
• A long potential mine life can sometimes be supported if sufficient tonnages are present

When Freehill Mining Ltd refers to 400 metres at 0.33% CuEq from surface at Joshua, several points are relevant:

• From surface suggests mineralisation starts at or near ground level, which can reduce the need for pre-stripping.
• 400 metres is a long continuous interval, which can indicate a large mineralised envelope if further drilling confirms continuity.
• CuEq (copper equivalent) combines copper and gold into a single grade figure based on assumed metal prices, providing a simple indication of the total metal value in each tonne of rock.

Why do porphyry systems matter to investors?

For investors assessing Freehill Mining Ltd:

• Porphyry copper systems can, if eventually proven economic, support long-life, large-scale operations, which can attract industry interest.
• Chile is already a leading copper-producing jurisdiction, with existing infrastructure and mining services.
• Furthermore, with demand for copper linked to electrification, renewable energy build-out and electric vehicles, companies with prospective porphyry targets can receive sustained market attention, depending on results.

Key terms explained

Glossary – core technical terms

CuEq (Copper Equivalent): A way to express grades of multiple metals, such as copper and gold, as a single copper-equivalent percentage based on relative metal prices.

Mineral Resource Estimate (MRE): An estimate of the quantity and grade of mineralisation that has a reasonable prospect of economic extraction, typically reported in compliance with codes such as JORC.

Porphyry: A type of igneous rock that often hosts large copper deposits. In mining, "porphyry" also describes the associated deposit style.

Granted mining leases: Legal permissions that allow a company to undertake mining operations on a defined area of land, subject to conditions and regulatory compliance.

By clarifying these terms, investors can better interpret how the Joshua and Blanco y Negro projects may evolve within Freehill Mining Ltd's portfolio, subject to ongoing work.

Who Austral Gold is and why the cooperation is relevant

Austral Gold Limited is described in the ASX announcement as a South American-focused gold and silver mining and exploration company with:

• Producing operations in northern Chile at the Guanaco–Amancaya operation
• Producing operations in Argentina at the Casposo – Manantiales Mine Complex
• An extensive portfolio of advanced and exploration assets across Chile, Argentina and North America

Further information is available on Austral Gold's website, as referenced in the announcement.

For Freehill Mining Ltd, the involvement of a partner with active mines in northern Chile and Argentina brings:

• Technical capability across exploration, geology and mine planning
• Operational experience in running producing mines in similar geological settings
• Regulatory familiarity in the same jurisdictions where Freehill Mining Ltd is assembling its copper portfolio

"As we have previously stated, our objective is to grow our portfolio of copper projects in Chile with a focus on low capex, fast start up opportunities that add to our growing revenue base. Adding Austral Gold's exploration and mining capabilities to our team gives greater momentum to this strategy which is now evolving. I have worked with the Austral Gold team for a number of years and have every confidence in their expertise."

— Ben Jarvis, Non-Executive Chairman, Freehill Mining Ltd

The announcement also notes that Ben Jarvis, Non-Executive Chairman of Freehill Mining Ltd, is a Non-Executive Director of Austral Gold, highlighting an existing governance link between the two companies.

For investors, the presence of an established operating partner can be viewed in the context of:

• Potential for quicker technical assessment of projects
• A more experienced approach to permitting and community engagement
• Increased capacity to evaluate whether assets like Joshua and Blanco y Negro can progress toward development decisions over time

Freehill Mining Ltd's dual-engine approach: copper growth and aggregates revenue

According to the ASX release, Freehill Mining Ltd is pursuing a dual-focus model:

1. Copper-gold growth in Chile

   • Targeted expansion into copper and copper-gold projects.
   • Initial emphasis on the Joshua and Blanco y Negro projects under the new MOU.
   • Cooperation with Austral Gold aimed at accelerating evaluation and potential development pathways.

2. Aggregates processing operations

   • The aggregates business is reported to be performing well, with steady growth and an increasing revenue stream.
   • Management indicates there are many opportunities for consolidation in the aggregates sector.
   • The MOU and any future collaboration with Austral Gold do not affect these operations.

For investors, this structure suggests that Freehill Mining Ltd is seeking to balance:

• Exploration and development upside from copper-gold projects, which typically involves higher risk and higher potential reward.
• Operating cash flow from the aggregates business, which may help provide some financial stability relative to pure-play early-stage explorers.

Any assessment of the investment case will consequently need to consider how these two elements contribute to Freehill Mining Ltd's overall revenue profile and capital allocation priorities over time.

Next steps: from MOU to binding agreements

The ASX announcement sets out the cooperation framework but makes clear that detailed terms for individual projects are still to be finalised. The expected sequence includes:

The announcement indicates that:

• The MOU sets commercial principles, but detailed binding terms will depend on further work.
• Any future agreements will be subject to successful due diligence and negotiations.
• Shareholder attention is likely to centre on how quickly the parties can move from MOU to binding project-level cooperation, particularly on Joshua and Blanco y Negro.

Investment context: why this matters to investors

From an investor perspective, several elements of the ASX announcement are relevant when considering Freehill Mining Ltd:

1. Access to experienced technical and operational support

   • Austral Gold's ongoing mining operations in Chile and Argentina suggest established capability in similar environments.
   • This may, in turn, support more efficient evaluation of Freehill Mining Ltd's copper assets, if the cooperation progresses as intended.

2. Potential for managed cash outflow

   • The cost-plus services model, combined with potential payment in Freehill Mining Ltd shares, can help control immediate cash use while still securing services.
   • Equity-based consideration links Austral Gold's upside to the performance of Freehill Mining Ltd's projects and share price.

3. Copper-focused growth in a globally important jurisdiction

   • Chile is a key copper-producing country with extensive mining infrastructure.
   • Copper is furthermore central to energy transition themes, and companies that can assemble prospective copper portfolios may attract ongoing attention, subject to results and market conditions.

4. Existing resources and early-stage discovery potential

   • Blanco y Negro already has a reported Mineral Resource Estimate on granted mining leases, which may provide a pathway toward development assessments.
   • Joshua offers exposure to a large porphyry-style system at an earlier exploration stage, with historical drilling and a broad target footprint.

5. Balanced business profile

   • The aggregates business continues separately and is reported to be growing, providing a revenue base alongside copper exploration.
   • For investors, this combination may appeal to those seeking both resource growth exposure and some existing operational activity.

Why investors may continue to monitor Freehill Mining Ltd

According to the ASX release, Freehill Mining Ltd has signalled a clear intent to expand its copper portfolio in Chile while maintaining and potentially consolidating its aggregates operations. Key elements now in place include:

• A non-binding MOU with Austral Gold to support identification, evaluation and development of copper and copper-gold projects in Chile.
• Two Chilean copper-gold projects already optioned:
  • The large Joshua Copper-Gold Porphyry Project (~5,100 hectares, historical 400 m @ 0.33% CuEq from surface).
  • The Blanco y Negro project (1.5 Mt @ ~1.4% Cu and 0.5 g/t Au; 20,000 t Cu and 24,000 oz Au) on granted mining leases.

• A commercial structure including cost-plus services, possible share-based payments and participation rights for Austral Gold.
• An operating aggregates business that is reported to be delivering steady growth, and which is explicitly excluded from the MOU.

The next potential catalysts are expected to include:

• Updates on formal co-operation agreements between Freehill Mining Ltd and Austral Gold.
• Progress on project-specific binding agreements for Joshua, Blanco y Negro and any newly identified copper projects.
• Further information on how the aggregates business contributes to overall revenue and supports the copper-focused growth strategy.

For investors monitoring the Freehill Mining partnership with Austral Gold for Chile copper-gold projects, these developments provide a framework to track how the company's Chilean copper-gold aspirations evolve alongside its existing operational base.

Want to Learn More About Freehill Mining's Chilean Copper-Gold Strategy?

With an MOU now in place with Austral Gold, two copper-gold projects already optioned in Chile, and a growing aggregates business providing a separate revenue base, Freehill Mining Ltd (ASX: FHS) is positioning itself as a dual-focused resource company worth watching. To explore the company's projects, strategy and latest updates in more detail, visit the official Freehill Mining website.