TG1: Microcap drilling two giant colourful mega-blobs (copper targets) in a few weeks. We just put into the TG1 cap raise. Copper running.

Disclosure: S3 Consortium Pty Ltd (the Company) and Associated Entities own 21,653,500 TG1 Shares and 10,743,844 TG1 Options at the time of publishing this article. The Company has been engaged by TG1 to share our commentary on the progress of our Investment in TG1 over time. This information is general in nature about a speculative investment and does not constitute personal advice. It does not consider your objectives, financial situation, or needs. Any forward-looking statements are uncertain and not a guaranteed outcome.

This is a simple one.

For now, all you need to remember about TechGen Metals (ASX:TG1) is this:

1. Two giant, colourful blobs:

(source)

(These are geophysical targets showing there might be two massive copper-gold-silver deposits underground.)

2. TG1 is going to drill these blobs in a few weeks.

Massive colourful blobs. Drilling in a few weeks...

Massive colourful blobs...

Drilling in a few weeks.

The blob in the left image is 2.75km across - one of the biggest we have ever seen.

(and we see a LOT of blobs in ASX explorer pitch decks every week)

The copper price is running at all time highs.

Copper is critical for moving electricity in the global AI, datacentres and robotics buildout.

And after ~2 long years of pain-staking prep work, TG1 is finally drilling these two copper target mega-blobs in the next few weeks.

TG1 is capped at ~$8.7M following a capital raise of $2.7M it announced today.

Blobs? What on earth are we on about?

Exploration companies try to reward investors by drilling to make big metals discoveries.

When planning the first EVER drillhole, company geologists try to figure out where there is the highest chance of hitting metals by firing electromagnetic and magnetic signals into the ground.

Conductive host rocks (for things like copper, gold, silver) will send back a different response to plain old worthless rocks.

These signals are visualised on the images as colourful blobs, like what we showed above.

Our non-technical term for these EM-conductor plates and IP anomalies is... colourful blobs.

(that's what they look like on a map or image)

Companies put pictures of these colourful blobs in pitchdecks to raise money with which to drill said blobs...

The more colourful and bigger, the more enticing.

And investors like us see the blobs and think “imagine if that was copper”.

(we just went into the TG1 cap raise to see their blobs get drilled in a few weeks)

And hopefully TG1 makes a massive new greenfield copper discovery.

At TG1’s current ~$9M market cap, a successful discovery could deliver a significant re-rate in the company’s share price.

At the same time, drilling may result in no discovery, and TG1’s share price could go down.

(in which case TG1 has four other live exploration projects they are working on)

We look at many exploration pitchdecks each year - and TG1’s are some pretty big and interesting biggest blobs.

Here they are:

The first one - TG1 calls it “Blue Devil” - a 2.75km long target with rock chips from surface grading 50.5% copper and 18.5g/t gold.

To generate this colourful blob, geologists would have flown a plane over Blue Devil firing electromagnetic and magnetic signals into the ground, and the rocks "pinged" back:

• The yellow/red shows where rock conducts electricity (possible copper sulphides)
• The pink/purple shows a big magnetic intrusion underneath (the potential heat engine that made the metals).

This target is legitimately huge.

The big risk is the rocks are worthless graphite or some other false signal - which can also show up as big colourful blobs in these geophysical surveys.

We call this one the blob-ness monster featuring Grimace (alternatively, blobzilla)

(source)

So blob-ness monster featuring Grimace:

The second one - TG1 calls it “Red Devil” a ~300m long target, 200m below surface with rock chips grading up to 52.3% copper and 5.35g/t gold.

This is where geologists ran current through the ground and watched how the rock "held" the charge.

The red core is where it held it strongest, the classic signature of metal sulphides scattered through the rock.

The only way to really know is by drilling, and here’s also a chance metal is not found in drilling.

We call this one Dwayne “the blob” Johnson (alternatively Blobprah Winfrey)

(source)

In the next few weeks TG1 is drilling these two mega blobs to try and make a brand new major copper discovery.

Success here could see a big valuation jump from TG1’s current $9M market cap.

Of course, no guarantees - these are greenfield targets and there is also a decent chance that TG1 finds nothing economically viable.

We increased our Position in TG1's current raise - post raise we should be holding ~4% of TG1.

TG1 is capped at only ~$8.7M (at the 1.6c cap raise price).

Today’s investor presentation said TG1 would have ~$3.7M cash - meaning its enterprise value is just ~$5M. (source)

We increased our position in this raise because we think the current market cap is a good entry point pre-drilling these big copper-gold targets (and we don't mind TG1’s other assets too).

We are also conscious of the risks - the big geophysical anomalies could be uneconomic graphite or nothing at all - greenfields exploration is very risky.

IF the drilling doesn't come in, TG1 has other copper & gold projects across WA and NSW.

IF the drilling DOES come in, we get a brand new copper (and maybe gold/silver) discovery and we think the current entry point leaves plenty of room for TG1 to re-rate into.

Especially with what copper is doing right now.

Copper is actually one of the best-performing commodities for 2026 and just last week it hit a new all time high...

And it looks like it wants to really break out of those highs and go on a run:

(source)

The past performance is not and should not be taken as an indication of future performance. Caution should be exercised in assessing past performance. This product, like all other financial products, is subject to market forces and unpredictable events that may adversely affect future performance.

We think fundamentally, the setup for copper is as good as it gets - both in the short/medium and long term.

Some might remember the “copper is the new oil” stuff from back in 2021 when copper was the backbone of the electrification/energy transition.

Since then, AI data centres and robots entered the chat - in a big way - and the copper demand story is seriously strong now on a 5, 10 and 20 year outlook.

It turns out hyperscale data centres use a massive amount of copper (sometimes ~50,000 tonnes of copper in a single data centre).

(source)

One of the most well known tech investors - billionaire venture capitalist, Chamath Palihapitiya - called copper his best trade idea for 2026. (source)

And here is his elevator pitch:

"I will pick copper. We are still completely underestimating how short we are in terms of the global demand-supply dynamics of a handful of critical elements that we need. Again, in the Trump doctrine view of the world, that is no longer as multilateral as it was, and we need to have unilateral national security. If you look through that lens, the asset that is set up to go absolutely parabolic is copper.

The reason is that it is, at least as it stands today, the most useful, cheap, amenable, conductive material that we have. That material manifests in everything from our data centers to our chips to our weapon systems. It's just everywhere. And right now, we are on a path by 2040 where we will be short about 70% of global supply at current course and speed. And I will pick copper." (source)

IF even half of the AI/robotics/energy transition build out happens that is a big increase in demand in a very mature market - where supply can't just be brought online overnight.

(source)

Copper is one of those commodities - because of how mature the market is - the easy pickings have been discovered and developed.

Nowadays the average copper mine takes ~17 years to bring online - most of that time spent scratching around for a new discovery.

Which means there is a pretty big window of opportunity for the junior explorers to take a crack at making new copper discoveries and be rewarded for it (IF successful).

Why does the macro matter so much for a pre-discovery explorer?

Because macro sentiment usually has the biggest influence on how much a good drill results is re-rated.

We think that one of the biggest factors into whether or not a market rewards drilling success is whether or not that particular commodity is in favour or not - Large capital inflows (this is the best).

🎓 We have written about this in the past here: Why do Small Cap Share Prices go up?

Some might remember when lithium rock chips were enough to get a company’s market cap to $50-100M during the 2021 bull run.

Good drilling results then were enough to re-rate lithium explorers to $500M+...

For any drilling event - even a successful one - to get a big on-market reaction, the macro setup has to be in its favour.

We think TG1 has been pretty lucky on that front.

Copper is up from ~US$4.30/lb to ~US$6.43/lb since it first started talking about these mega targets:

(source)

The past performance is not and should not be taken as an indication of future performance. Caution should be exercised in assessing past performance. This product, like all other financial products, is subject to market forces and unpredictable events that may adversely affect future performance.

We think that the copper macro is so strong, that even just leading into the drilling and drill results TG1’s share price could run from where it is today.

Especially after today’s capital raise and the “this company needs to raise cash” sentiment is out of the market’s mindset.

We think the ~18-month lead just so happened to put TG1 in a position where it’s drilling into as strong of a copper macro backdrop as we would have hoped for.

Now we just need the drilling to come in...

More on TG1’s two giant - never before drilled copper-gold targets

Here's why we topped up our position in TG1 ahead of drilling on them:

1. Blue Devil - the big one

No one, before TG1 came along, had ever done any modern geophysics on this target.

Now, TG1’s defined three electromagnetic (EM) conductors that line up over ~2.75km of strike length.

Sitting underneath them is a “magnetic intrusive body” - a type of geophysical anomaly that could be the source for those EM conductors above.

AND soil samples taken from surface above the target’s have returned 50.5% copper, 18.5g/t gold.

So we have a congruence of:

• Electromagnetics ✅
• Magnetics ✅
• Soil sampling ✅
• Rock chip sampling ✅

(source)

2. Red Devil - the high-grade one

This target sits ~3km away from the Blue Devil target.

The target extends ~300m vertically and is ~175-225m below surface.

This target is based on IP surveys (a type of geophysics that's delivered plenty of discoveries across Australia).

AND TG1’s got rock chips grading up to 52.3% copper, 5.35g/t gold.

Those rock chips sit directly above a big induced polarisation (IP) chargeability anomaly.

This one has also never been drilled...

On this target we have a congruence of:

• IP (geophysics) ✅
• Soil sampling ✅
• Rock chip sampling ✅

(Source)

TechGen Metals

Keep reading to see our refreshed TG1 Investment Memo which lays out:

• What TG1 does
• The macro theme for TG1
• Our TG1 Big Bet
• Why we are Invested in TG1
• What we want to see TG1 achieve
• The key risks to our Investment Thesis,
• Our Investment Plan

Before we get to those, here is a quick overview of the 8 reasons why we Invested in TG1:

8 reasons we Increased our Position in TG1

1. Some of the biggest targets we have seen and never been drilled

TG1 has two copper-gold targets - both have never been drilled and both are massive:

• A ~2.75km long target at Blue Devil with copper rock chips grading 50.5% copper and also a sample at 18g.5/t gold.
  
• A ~300m-long, ~250m deep IP anomaly at Red Devil with copper rock chips grading 52.3% copper with 5.35g/t gold.

2. TG1 is leveraged to a re-rate - capped at ~$8.7M.

As of 18 June 2026, TG1 has ~544 million shares on issue with a market cap of just $8.7M (at 1.6c per share).

This means TG1 is highly leveraged to a large exploration discovery from a drilling campaign.

3. Drilling is now just weeks away.

We’ve been waiting for this drill program for ~18 months.

TG1 expects to drill Blue Devil and Red Devil in July.

4. The copper macro is as strong as we've ever seen it.

Record-high copper prices, structural AI data-centre and robotics demand, and a supply deficit.

For a drill result to get a big market reaction, the macro has to be onside - right now, it is.

5. Very few copper stocks on the ASX

There aren’t many copper exposures in the small cap ASX listed space.

Especially ones going for greenfields discoveries.

We expect TG1 to get a fair bit of attention leading up to drilling and then into the drill results.

IF a discovery is made we think it quickly becomes a JV/takeover target.

6. Most NEW copper discoveries are made by junior explorers

Early stage exploration is high risk high reward - especially when drilling for big new discoveries on completely virgin ground.

Contrary to what most would think, it is the smallest companies (junior explorers... and their shareholders) who are the ones attempting these discoveries... in spite of the risk.

That essentially leaves the tiny explorers with the responsibility of finding the next big discovery.

Fun fact: 70% of all discoveries in Australia have been made by tiny companies (like TG1) since 2000.

(See more on this here: Why we invest in junior explorers, Critical Minerals and more...)

7. Directors have been buying on market lately

TG1's Managing Director Ashley Hood and TG1’s management has been buying stock on market of late.

Ash took $100K in the top-up placement back in Nov-2025 and has been buying on-market repeatedly through the back end of 2025 and into 2026 (e.g. ~1.74M shares on 29-Dec, 575K on 07-Jan, 1M on 12-Jan).

We also noticed TG1’s management team took $70k of the most recent placement (at 1.6c).

We like that Ash is buying stock leading up to a big drilling program like Blue and Red Devil.

8. TG1 has an existing gold discovery and other projects in WA

TG1 has already made a gold discovery at its NSW gold project and has scope to grow the discovery with drilling to its north/south and at depth.

We think that discovery can grow with funding from TG1’s JV partner.

TG1 also holds copper-gold ground in WA - gold next door to $6.3BN Ramelius Resources and copper at its Mount Boggolla asset.

We hope these 8 reasons contribute to our TG1 Big Bet, which is as follows:

Our TG1 Big Bet

"TG1 re-rates by 10x after discovering and defining a significant enough deposit to move into development studies for one of its projects."

NOTE: our “Big Bet” is what we HOPE the ultimate success scenario looks like for this particular Investment over the long term (3+ years). There is no guarantee that our Big Bet will ever come true. There is a lot of work to be done, many risks involved, including technology risk, scale up risk, regulatory risk and development risk - just some of which we list in our TG1 Investment Memo.

Success will require a significant amount of luck. Past performance is not an indicator of future performance.

Our TG1 Investment Memo

Memo Opened: 18-06-2026

Shares Held: 21,653,500

Options Held: 10,743,844

What does TG1 do?

TechGen Metals (ASX:TG1) is drilling for copper-gold discoveries in WA.

The two near term targets are Blue and Red Devil in WA - going for two independent copper discoveries.

TG1 also has a second copper-gold-antimony project in WA, an earlier stage gold project in WA and an existing gold discovery in NSW.

The macro theme for TG1

TG1 is leveraged primarily to copper and gold.

We like copper because of its exposure to the battery metals theme, AI data centres and robotics.

Copper is currently trading at all time highs, we think because of the future demand being priced in from the AI and robotics build out.

A single large AI data centre can require up to ~50,000 tonnes of copper, total data-centre demand is tipped at ~475,000 tonnes a year - that’s before we consider any demand from the robotics build out.

Our TG1 Big Bet

"TG1 re-rates by 10x after discovering and defining a significant enough deposit to move into development studies for one of its projects."

NOTE: our “Big Bet” is what we HOPE the ultimate success scenario looks like for this particular Investment over the long term (3+ years). There is no guarantee that our Big Bet will ever come true. There is a lot of work to be done, many risks involved, including technology risk, scale up risk, regulatory risk and development risk - just some of which we list in our TG1 Investment Memo.

Success will require a significant amount of luck. Past performance is not an indicator of future performance.

Why we are Invested in TG1

1. Some of the biggest targets we have seen and never been drilled
   
2. TG1 is leveraged to a re-rate - capped at ~$8.7M.
   
3. Drilling is now just weeks away.
   
4. The copper macro is as strong as we've ever seen it.
   
5. Very few copper stocks on the ASX
   
6. Most NEW copper discoveries are made by junior explorers
   
7. Directors have been buying on market lately
   
8. TG1 has an existing gold discovery and other projects in WA

What we want to see TG1 achieve

Objective 1: Drill WA copper-gold targets (Blue and Red Devil)

We want to see TG1 drill its two biggest copper-gold targets - Blue and Red Devil.

Here are the milestones we are tracking:

• 🔄 Drilling permits approved
• 🔲 Drilling starts at Blue Devil
• 🔲 Drilling starts at Red Devil
• 🔲 Assay results from maiden drilling
• 🔲 Follow-up drilling if a discovery is made

Objective 2: Drill WA copper-gold-antimony targets (Mount Bogolla)

We want to see TG1 go back and drill its Mount Bogolla project again. Especially in and around the recent hole that hit 20m @1.14% copper and the holes Newcrest drilled but narrowly missed targets from in the 1990s.

Here are the milestones we are tracking:

• 🔲 Drill the Mt Boggola copper-gold-antimony IP targets.

Objective 3: Advance the gold assets

We also want to see TG1 drill out its two gold projects - first drilling the project ~8km away from $6.3BN Ramelius Resources and second the existing discovery in NSW through its JV partner.

Here are the milestones we are tracking:

• 🔲 Dalgaranga (WA) - licence applications still pending grant; soil sampling underway.
• 🔲 John Bull (NSW, 30% interest) - drilling via farm-in partner (planned for H2-2026)

Objective 4: Generate new projects and big drilling targets.

🔲 This is an ongoing objective - TG1 is a junior explorer, we want to see TG1 continue to generate new drilling targets similar to Blue and Red Devil.

What could go wrong?

Exploration risk

This is the big one. Most drill programs on never-tested targets fail to deliver an economic discovery. Strong rock chips and geophysical anomalies do not guarantee a discovery at depth. Drilling could return little to no meaningful mineralisation.

Funding risk

As a junior exploration company, TG1 will need to seek additional capital to advance the company’s projects. Access to capital could be impacted by a combination of the above risks.

TG1 also has a lot of tenements that each carry ongoing licensing costs. In order to fund exploration of these tenements, TG1 will need to raise capital.

Permitting / delay risk

Drilling depends on permits, heritage agreements and grant conditions.

Any delay pushes the catalyst out and can sap market interest.

Commodity price risk

TG1 being a junior explorer also trades in line with the changes in the copper and gold price (the commodities it is drilling for).

A sharp pullback in either would reduce the market's appetite for - and reaction to - a discovery.

Market risk

Micro-cap explorers are volatile and can sell off heavily on broad market weakness, regardless of company progress.

Broader market conditions could change for the worse and TG1 could suffer from a “risk off” market move.

Our Investment Plan

We have been Invested in TG1 since its IPO in April 2021.

We took up our full entitlements in TG1's recent raise and Increased our Position again in the current raise, ahead of the drilling.

We plan to hold the majority of our Position into the Blue Devil and Red Devil drill results.

In line with our Disclosure Policy, we may sell up to 20% of our holding if the share price re-rates materially on a positive result, and we hold the balance for the longer-term Big Bet.