Key highlights

• Pinnacle Minerals has outlined plans to explore historical tungsten districts in Utah as it progresses a proposed Acquisition of APT Tungsten.

• APT holds an exclusive option over five early-stage projects covering 199 claims and about 4,000 acres.

• This update covers the Hero first targets, Lone Pine samples, the deal terms and timing.

Pinnacle Minerals (ASX:PIM) has outlined plans to explore historical tungsten districts in Utah as it progresses a proposed acquisition of APT Tungsten. APT holds an exclusive option over five early-stage projects covering 199 claims and about 4,000 acres.

The answer to the headline question is: Hero, Lone Pine, Trout Creek, Desert Flower and Super W. None holds a JORC mineral resource or exploration target, which places them at the earliest stage of exploration.

Hero first

Pinnacle has chosen Hero, also known as House Range, as its initial priority after a September site visit identified extensive outcropping skarn, historical workings and Mining equipment. The project covers 52 claims in Utah's historical Notch Peak tungsten district, where scheelite occurs in skarn along contacts between an intrusive complex and carbonate rocks.

Skarns form where hot fluids from an intrusion react with limestone or dolomite, and they host many of the world's tungsten deposits. Pinnacle says modern exploration has not tested the down-dip extension of the eastern contact beneath thin sedimentary cover, which is the kind of concealed target that can be overlooked.

Lone Pine samples

At Lone Pine, selective rock-chip and grab samples collected in May 2026 by Burgex for APT returned between 0.69% and 12.25% tungsten, equivalent to 0.87% to 15.45% tungsten trioxide. Pinnacle plans its own validation sampling after the acquisition completes. Selective samples are not representative of average grade.

Deal terms

Pinnacle proposes to acquire 100% of APT in an all-scrip deal of 33,333,333 shares at a deemed 4.5 cents each, plus the same number of performance shares. The performance shares convert if Pinnacle's 20-day volume-weighted average price reaches nine cents, and otherwise lapse three years after completion.

Pinnacle must also repay APT's US$254,094 Loan plus interest. Retaining all five projects involves up to US$2.912 million in anniversary payments over three years, a US$1 million minimum exploration commitment and a 2% net smelter return royalty, with possible further milestone payments tied to resource definition.

Pinnacle may choose to drop projects that do not perform, which would reduce payments.

A link with AT4

American Tungsten & Antimony (ASX:AT4) has agreed to subscribe for about $412,066 of Pinnacle's conditional placement. Placement investors will receive one attaching option for every two shares, exercisable at eight cents until 22 August 2028. Pinnacle and AT4 also have links through the Nexus arrangements reported on 30 October.

Timing

Fieldwork is scheduled for January, subject to completion of the acquisition, permits and access. Managing director Bill Witham said the immediate priorities are to progress approvals, prepare for exploration in Utah and evaluate pathways for the company's projects in Australia and Canada.

Verification note

What to watch

Key items are Shareholder approvals, completion, January fieldwork and validation sampling at Lone Pine.

Why Utah tungsten is attracting interest

Utah hosts several historical tungsten districts that were active during periods of high Demand in the twentieth century. Many were abandoned when prices fell and Chinese Supply expanded. Renewed US interest in domestic supply has encouraged explorers to revisit these old areas. Historical workings often reflect small, high-grade pockets rather than large deposits. Modern exploration will need to show whether the skarns at Hero and the other projects have the scale to support a viable operation. Early fieldwork should help Pinnacle decide which of the five projects merit retaining and which should be dropped before larger anniversary payments fall due.