Rights offering (paid-in capital increase) decision (subsidiary)

A later amendment corrects this filing, so the terms on this page may be out of date. See the latest version (2026-09-22) →

What happened

Korea Zinc / Decision on Rights Offering (Material Management Matter of Subsidiary) / (2026.07.21) Decision on Rights Offering (Material Management Matter of Subsidiary) Decision on Rights Offering: Material Management Matter Report of Subsidiary Richmond Valley Energy Reserve Holdings Pty Ltd

1. Type and number of new shares: Common shares (shares): -; Class shares (shares): 193,392,978 2. Par value per share (KRW): - 3. Total issued shares before the capital increase: Common shares (shares): 100; Class shares (shares): - 4. Purpose of fundraising: Facility funds (KRW): 400,555,536,034; Business acquisition funds (KRW): -; Working capital (KRW): -; Debt repayment funds (KRW): -; Funds to acquire securities of other companies (KRW): -; Other funds (KRW): - 5. Method of capital increase: Third-party allotment [In the case of a third-party allotment] 6. New share issue price: Common shares (KRW): -; Class shares (KRW): 2,071.20 7. Discount or premium rate to the reference share price (%): - 8. Basis in the articles of incorporation for the third-party allotment: 5. Variation of share rights 9. Payment date: 2026-09-30 10. Dividend record date for new shares: - 11. Expected date of delivery of new share certificates: - 12. Matters concerning in-kind contribution - Whether there is an in-kind contribution: No - Whether the in-kind contribution property includes shares of an unlisted company: Not applicable - In-kind contribution value of shares to be paid in: In-kind contribution value (KRW): -; Ratio to the Company's total assets for the most recent fiscal year (%): -; Number of shares to be paid in: - 13. Board resolution date (decision date): 2026-07-20 - Attendance of outside directors: Present -; Absent - - Attendance of the auditor (audit committee member who is not an outside director): - 14. Whether subject to filing of a securities registration statement: No 15. If exempted from filing, the reason: - 16. Whether subject to reporting to the Fair Trade Commission: No 17. Other matters for reference in investment decisions 1) The above "2. Par value per share (KRW)" is not separately indicated because the shares are no-par-value shares under Australian local law. 2) Richmond Valley Energy Reserve Holdings Pty Ltd is an overseas (Australian) subsidiary of Sun Metals Holdings Pty Ltd, which is 100%-owned by Korea Zinc Co., Ltd. 3) Sun Metals Holdings Pty Ltd holds a 95.96% equity interest in Ark Energy Corporation Pty Ltd, which develops, constructs, and operates renewable energy power plants in Australia; Richmond Valley Energy Reserve Holdings Pty Ltd is a wholly owned subsidiary of Ark Energy Corporation Pty Ltd and serves as the holding company for the Richmond Valley Solar Farm & BESS power plant project in Australia, which is scheduled to begin construction this October and commence commercial generation in January 2029. 4) The "class shares" in "1. Type and number of new shares" above refer to non-voting convertible preferred shares (convertible into common shares at a 1:1 ratio). 5) The above "6. New share issue price" is the Korean-won equivalent of AUD 2, converted at the Seoul Money Brokerage Services exchange rate (KRW 1,035.60/AUD) as of July 20, 2026. The actual Korean-won equivalent amounts may change depending on the exchange rate at the time of actual capital contribution. 6) The "facility funds" in "4. Purpose of fundraising" above is the Korean-won equivalent of the rights offering amount of AUD 387 million, converted at the Seoul Money Brokerage Services exchange rate (KRW 1,035.60/AUD) as of July 20, 2026, and this amount is planned to be used for construction funds for the Richmond Valley Solar Farm & BESS power plant. The Korean-won equivalent amount may change depending on the exchange rate at the time of actual capital contribution. 7) The "5. Method of capital increase" above is a third-party allotment rights offering of preferred shares, all of which are planned to be allotted to New South Wales Solar No. 1 Co., Ltd., a special purpose company established by Meritz Securities Co., Ltd. 8) The "9. Payment date" above is set as September 30 this year to align with the power plant construction commencement schedule (beginning this October), with payment to be made in full by that date. 9) The above schedule and content may change depending on future progress. 10) Korea Zinc plans to enter into a swap (PRS, Price Return Swap, 3-year maturity) agreement based on the new shares to be issued by Richmond Valley Energy Reserve Holdings Pty Ltd, with one subscribing institution for the new shares as counterparty. 11) Regarding matters concerning the subsidiary, the "subsidiary's total assets (KRW)" is the amount obtained by converting the paid-in capital at establishment, AUD 100 (date of establishment: April 14, 2026), into Korean won at the Seoul Money Brokerage Services exchange rate (KRW 1,035.60/AUD) as of July 20, 2026, in consideration of the fact that Richmond Valley Energy Reserve Holdings Pty Ltd is a newly established company for which separate financial statements have not yet been prepared. Related disclosures: -

[Basis, Purpose, etc. of Third-Party Allotment] Articles of incorporation provision serving as the basis for the third-party allotment: 5. Variation of share rights Purpose of the third-party allotment: Rights offering for the purpose of using funds for construction of the Richmond Valley Solar Farm & BESS power plant

[Selection Process, Transaction History, Allotment Details, etc. by Third-Party Allottee] Allottee / Relationship with the Company or largest shareholder / Selection process / Transactions and plans within 6 months before and after the capital increase decision / Number of shares allotted / Remarks: New South Wales Solar No. 1 Co., Ltd. / - / New South Wales Solar No. 1 Co., Ltd. is a special purpose company established by Meritz Securities Co., Ltd., selected after comprehensively reviewing payment capacity, payment timing, and the feasibility of fundraising in order to achieve the Company's management objectives / - / 193,392,978 / -

[Specific Purpose of Use of Funds Raised Through the Third-Party Allotment - For Facility Funds] (Unit: KRW) Details / Investment period / Investment amount: Richmond Valley Solar Farm & BESS power plant construction funds / October 2026 - December 2028 / 400,555,536,034

[Matters Concerning the Subsidiary] Subsidiary name: Richmond Valley Energy Reserve Holdings Pty Ltd English name: Richmond Valley Energy Reserve Holdings Pty Ltd Representative: Juwon Michael Choi Main business: Development, construction, and operation of the Richmond Valley Solar Farm & BESS power plant in NSW Whether a major subsidiary: Not applicable Subsidiary's total assets (KRW): 103,560 Parent company's consolidated total assets (KRW): 20,395,719,724,719 Subsidiary's assets as a proportion of parent company's consolidated total assets (%): 0.0000000051