Funding Strategy to Advance Bilboes Project

ST HELIER, Jersey, January 21, 2026 - Caledonia Mining Corporation Plc ("Caledonia" or the "Company") today provides an update on the structured, multistage funding strategy to support the development of the Bilboes gold project in Zimbabwe.

This announcement follows the successful closing of Caledonia's US$150 million, 7-year convertible senior notes offering (the "Convertible Notes Offering"), which received exceptionally strong support from institutional investors in the United States. Investor demand exceeded US$600 million after three days of marketing which led to an upsizing of the offering from US$100 million to US$125 million, and resulted in a total of US$150 million following the exercise by the initial purchasers of their option to buy a further US$25 million of notes.

Summary of the Funding Strategy

Following publication of the Bilboes Feasibility Study in November 2025[1] Caledonia has moved quickly to start to implement a four-part funding plan designed to ensure the project can be advanced at pace while maintaining prudent capital discipline. The plan comprises the following:

Gold Price Hedging Programme

In December 2025, Caledonia purchased put options to lock in a minimum gold price of US$3,500 per ounce over 3,000 ounces per month from January 2026 to December 2028. The hedging arrangements are designed to underpin cash receipts by Caledonia from Blanket Mine over the next three years from January 1, 2026 to December 31, 2028, which broadly coincides with the peak capital investment period for the Bilboes gold project.

The minimum price is also expected to enhance project lenders' willingness to provide credit.

Convertible Notes Offering

Caledonia has raised gross proceeds of US$150 million from the Convertible Notes Offering.

The Notes carry a 5.875% coupon and holders can convert on or after October 15, 2032 subject to standard early conversion and redemption provisions.

The purchase of capped call options by Caledonia in conjunction with the Convertible Notes Offering significantly reduces the potential economic dilution to the Company's shareholders by increasing the effective conversion price of Notes from a strike price of approximately US$40.51 per share (a premium of 25% to the closing share price on January 14, 2026) to an effective conversion price of approximately US$56.72 per share (a premium of 75% to the closing share price on January 14, 2026).

The total cost of the capped call options structure was approximately 10% of the gross proceeds of the Convertible Notes.

The capped call transactions are expected generally to compensate (through the payment of cash to Caledonia or, if certain conditions are met, delivery of shares to Caledonia) for potential economic dilution upon any conversion of the Notes and/or offset any cash payments Caledonia is required to make in excess of the principal amount of converted Notes, as the case may be, with such compensation and/or offset subject to a cap.

After underwriting fees and related issuance expenses and the cost of the capped call derivative structure, Caledonia received net proceeds of approximately US$130 million.

Interim Funding Facility

In November 2025, Caledonia launched a process to arrange an interim funding facility of up to US$150 million with a consortium of Zimbabwean and South African commercial banks (the "Interim Funding Facility").

Following encouraging engagement with the banks, the Company expects that this Facility can be in place by mid-2026, subject to the usual lender processes. Further announcements will be made in due course.

Robust price protection from the hedging programme should support the size and structure of this Facility, which will be secured against Caledonia's cash flow from Blanket Mine.

Project Finance

Caledonia has had ongoing preliminary discussions with regional and global financial institutions to explore the scope and structure of project finance to support the construction of the Bilboes gold project.

Caledonia will commence a formal process in the first quarter of 2026. This process is expected to take a year or more as project financiers undertake independent assessments of the mineral resources at Bilboes and the Bilboes Feasibility Study.

The four-part funding strategy, combined with ongoing cash generation from Blanket Mine, has been designed to maintain adequate liquidity throughout the initial phase of the Bilboes gold project and should enable the business to begin procuring long lead equipment early in the third quarter of 2026. Based on this approach, the Company believes the project will be developed within the timetable set forth in the Bilboes Feasibility Study.

Mark Learmonth, Chief Executive Officer, commented:

"The successful Convertible Notes Offering - with the upsizing of the offering to US$150 million due to exceptionally strong support - marks a major milestone for Caledonia. Receiving more than US$600 million of demand from high quality North American investors is a tremendous endorsement of our strategy, the quality of our assets, our operational track record, and the long-term prospects of the Company.

"Since publishing the Bilboes Feasibility Study in November, we have acted quickly to begin to implement a robust and carefully sequenced funding plan. The combination of our hedging programme, the proceeds from the Convertible Notes Offering and our expectation with respect to putting in place the Interim Funding Facility by mid-year will ensure we have the financial strength to begin ordering long lead equipment for Bilboes in the third quarter of this year. In parallel, we will begin a formal project finance process to support full development. This structured approach allows us to manage risk, minimise dilution and position Bilboes as the next large scale, long life, gold production hub in Zimbabwe."