ATO confirms capital return for FireFly Bellavista share deal

Ruling confirms capital return treatment – no dividend or assessable income – for shareholders who held FireFly shares on capital account PERTH, Australia, June 03, 2026 (GLOBE NEWSWIRE) — FireFly Metals Ltd (ASX: FFM, TSX: FFM) (FireFly or the Company) is pleased to announce that the Australian Taxation Office (ATO) has published Class Ruling CR 2026/30 (ATO Class Ruling) confirming the Australian income tax treatment of the reduction of FireFly’s share capital effected by way of the in-specie distribution of shares in Bellavista Resources Ltd

(ASX:BVR) (Bellavista) to eligible FireFly shareholders (In-specie Distribution). The In-specie Distribution completed on 11 May 2026 (Payment Date) and involved the transfer to eligible FireFly shareholders of 60 million1 ordinary shares in Bellavista that were received by FireFly on 29 April 2026 at completion of the transaction announced on 2 February 2026 for the sale to Bellavista of the Pickle Crow and Sioux Lookout Projects in Ontario. The ATO Class Ruling applies to certain classes of FireFly shareholders, including those who, on the record date

of 4 May 2026 (Record Date), held their FireFly shares on capital account and were not ‘temporary residents’ of Australia on the Payment Date (Class Ruling Shareholders). Shareholders should review the ATO Class Ruling and seek independent advice where appropriate to confirm whether they are included as a Class Ruling Shareholder. The ATO Class Ruling confirms the information in section 4.13 of the Explanatory Memorandum in the Notice of General Meeting announced by the Company on 23 March 2026 (Explanatory Memorandum), regarding the likely Australian

income tax implications of the In-specie Distribution. In particular, the ATO Class Ruling confirms that the In-specie Distribution constituted a return of FireFly’s share capital of 4.5 cents per FireFly share (Capital Return). The Capital Return is not a dividend,2 and no part of the Capital Return is included in the assessable income of a Class Ruling Shareholder under subsection 44(1) of the Income Tax Assessment Act 1936 (Cth) (Act). The ATO has also confirmed that the anti-avoidance provisions in sections 45, 45A and 45B

of the Act will not be applied to treat any part of the Capital Return as an unfranked dividend. The table below summarises the key Australian income tax outcomes for Class Ruling Shareholders confirmed by the ATO Class Ruling. Foreign-resident Class Ruling Shareholders can generally disregard any capital gain made on the Capital Return, unless their FireFly shares (or their right to receive the Capital Return) are taxable Australian property. Class Ruling Shareholders should refer to the full text of the ATO Class Ruling, which

can be accessed from the ATO website at the following link: www.ato.gov.au/law. The information in this announcement is a summary in nature. Tax consequences of the In-specie Distribution may vary depending upon the individual circumstances of FireFly shareholders. The Company recommends that FireFly shareholders obtain independent tax advice specific to their circumstances regarding the tax consequences of the In-specie Distribution. Distribution of Bellavista Shares and Cash Proceeds On 11 May 2026, eligible FireFly shareholders3 were transferred 1 Bellavista share for approximately every 12.8 FireFly shares

held on the Record Date, subject to rounding adjustments. Holding statements for such Bellavista shares were despatched on 11 May 2026. Following the sale of the relevant Bellavista shares, ineligible FireFly shareholders received cash proceeds, less costs and expenses in connection with the sale, of $0.546975 for each Bellavista share they would have been entitled to be distributed had they been eligible FireFly shareholders. Payment to ineligible FireFly shareholders was despatched on 27 May 2026. This announcement has been authorised by the FireFly Board of

Directors. Contact information: 1 Minus 2,883 Rounding Shares as set out in the Explanatory Memorandum.2 As ‘dividend’ is defined in subsection 6(1) of the Income Tax Assessment Act 1936 (Cth).3 Eligible FireFly shareholders are those who had a registered address on the Record Date in one of the eligible jurisdictions set out in section 2.4 of the Explanatory Memorandum and who were entitled to receive a distribution of Bellavista shares which constituted a marketable parcel (being a parcel of Bellavista shares with a market value

of at least A$500) as of the Record Date.

FireFly Metals, ATO Class Ruling CR 2026/30, Bellavista Resources, in-specie distribution, capital return, assessable income, anti-avoidance, Pickle Crow and Sioux Lookout