Nex Metals Exploration posts encouraging exploration results from North Henai Gold Project, Eastern Desert, Egypt

Nex Metals Explorations Ltd. [ASX: NME] is a gold project explorer and developer, provided an update on its entry into Egypt’s Eastern Desert. Egypt’s Eastern Desert is recognized as one of the world’s most under-explored prospective gold mining districts. In September 2025, the company announced a binding heads of agreement1 for a profit-sharing arrangement with the owners of the North Henai Concession, including local partners Golden Eagle and the Shalateen Mineral Resources Company (SMRC). Gold production at North Henai is ongoing at an artisanal level which illustrate the gold bearing nature of the observed structures.

Highlights: Geological reconnaissance confirms extensive quartz veining and alteration within sheared mafic host rocks over 5 km of strike and up to 50 metres width at the Range Prospect.

Historical and current artisanal gold workings observed across multiple zones along strike, including the Cave prospect (50 metres across strike) and the eastern shear zone (25–30 metres across strike).

Northern prospect area identified with veining over approximately 300 metres of strike — potential for modern mining techniques identified due to wide zones of alteration and veining. First systematic sampling and assay program planned for the next 90 days — sample preparation laboratory being sourced to prepare assay pulps for shipment to Australia. Approvals being sought from Egyptian authorities to permit shallow diamond drilling (expected <50 metres depth).

Commenting on recent developments, NME Managing Director, Ken Allen, said: “Our geological reconnaissance has confirmed extensive quartz veining and alteration over 5 km of strike, with gold-bearing structures up to 50 metres wide. Current artisanal operations are producing gold with hand-held tools, yet no systematic sampling or assay work has ever been completed on this project area.”

“North Henai represents an attractive opportunity to apply modern exploration, mining and processing techniques to a large-scale gold system in one of the world’s most under-explored districts. The company remains committed to advancing the project in a disciplined, commercial and technically responsible manner, in close cooperation with our local partners Golden Eagle and SMRC.”

Geology of the project area consists of a series of east-west trending greenstones with minor sediments including shales and at least one example of a conglomerate of the Neoproterozoic Eastern Desert in southeast Egypt. These greenstones are intruded by earlier gabbro’s, which is observed to be often sheared and a later sequence pink microgranites and porphyries which strike sub parallel with the greenstone strike. The terrain is steep, treeless mountain ranges with a broad plain to the north and deeply incised ‘wadis’ (dry riverbeds) through the ranges. The ‘wadis’ may also present an opportunity for bulk volume, alluvial gold processing, subject to further evaluation. The ranges rise over 400 metres above the plain.

Quartz veining in the Range Prospect, currently subject to artisanal gold workings, was observed over 5 km of strike and up to 50 metres wide of sheared and altered mafic host rocks. The greatest widths are present at both the eastern and western ends of the observed shear. Over 3.5 km of shearing was directly observed with a portion not traversed due to steep terrain and access constraints.

At the western end of the Range Prospect an area of historical and current artisanal workings was observed over 50 metres across strike with in a sheared and altered gabbro. Both quartz veins and altered gabbro are exploited for artisanal production of gold. This area is termed the “Cave” prospect.

Alteration of the gabbro consists of silica, pyrite, chlorite and carbonate which is most pervasive adjacent to the quartz veining, although present over the full 50 metres across strike.

At the eastern end of the shear the alteration and shearing were observed to be between 25 and 30 metres across strike, a parallel foot wall vein has previously been exploited and is subject to current artisanal exploitation. The shearing is focused between the foot wall vein and a porphyry “micro granite” in the hanging wall.

Between these two wide zones of alteration and workings, current and historical workings are present interspersed along the strike.

A further two km to the north, an area of steeply dipping veins with minor flatter dipping veins has been recently mined over approximately 300 metres of strike and appears to have potential for modern mining techniques due to wide zones of alteration and veining. Artisanal mining using handheld electric jack hammers and rock breakers on excavators has stopped on the oxide fresh rock transition due to an increase in the hardness of the rock. While trace sulphides are present, testwork will need to be completed on fresh samples to demonstrate the likely free-milling nature of the mineralization.

In conjunction with systematic sampling to commence in the next 90 days a small-scale sample preparation laboratory is being sourced for preparing assay pulps for shipment back to Australia for gold analysis. Sample preparation will be undertaken under the direction of the company’s consulting geologists. This will be the first systematic sampling and assay program completed in the project area.

In a follow-up visit, planned within the next 90 days, NME’s team intend to develop a systematic sampling and assay program. Approvals are being sought from Egyptian authorities to permit drilling at North Henai.

A track-mounted or man-portable diamond drill rig is being considered as a likely practical drilling method, given the terrain and the expected shallow drilling unlikely to exceed 50 metres.

Results from this drilling will provide the company with further information on the potential scale of future production at North Henai when modern exploration, mining, and processing techniques are applied.

NME is also sourcing sample preparation equipment to be sent to North Henai to support geological workings with the intention that sample preparation activities may continue under NME’s supervision in the intervening period.