Earnings release
Page 1
ANNOUNCEMENT 31 J uly 2026 AC TIVITIES REPORT FOR THE QUARTER ENDED 30 JUNE 2026 (FY2026 Q4) FOR MC MINING LIMITED (MC Mining or the Company) AND ITS SUBSIDIARY COMPANIES HI GHLIGHTS Operations • Health and safety performance improvement across the group remains a top priority, with the Company having operated with zero lost time injury (“LTI”) for th is quarter, This is huge improvement on our safety performance. The Makhado steelmaking hard coking coal Project (“Makhado Project” or “Makhado”) had no LTIs for the quarter with plant commisoning and new employees onboarding that commenced with no any incidents at Makhado Colliery whilst Uitkomst Colliery (“Uitkomst Colliery” or “Uitkomst”) had no LTIs for the quarter; • Key milestones achieved on the development of the Makhado Project: o C3 commissioning of the coal handling and preparation plant (“CHPP” or “Coal Plant”) reached on the 22 nd of May 2026; o C4 commissioning completion of the Coal Plant is planned for August; o The 14km overhead power transmission line has been commissioned during the quarter; o Bulk water systems (eastern wellfields) were installed and commissioned for provision of process water to the CHPP and the remainder of the system (western wellfields) are planned for commissioning during the next quarter; o Product logistics infrastructure , including two 80 tonnes certified we ighbridges were commissioned during the quarter and Makhado is ready for product delivery to port; o Logistics contractors were shortlisted and are preparing for trialrun to port during August.
Page 2
• The board of directors approved the temporary suspension of mining and processing operations at Uitkomst Colliery during Q3 FY2026. During this period, the Company is evaluating strategic options aimed at unlocking value and preserving future optionality. These evaluations may include engagement with interested third parties regarding potential partnerships, joint operations or other strategic arrangements in respect of Uitkomst. Although a binding offer has been received, no decisions have been taken, and any transaction would be subject to customary approvals. In addition, the Company continues to review its asset base with a view to disposing of redundant or non-core items where appropriate. • Comprehensive evaluations of geological and mine planning information relating to the Company’s Vele Aluwani semi- soft coking coal (“ SSCC”) and thermal coal (“ TC”) Colliery (“ Vele Colliery” or “Vele”) are still ongoing; and • TC prices increased during Q4 FY2026, averaging US$113/t for the quarter, compared to US$99/t in Q3 FY2026 and US$9 0/t in Q4 FY2025. Premium steelmaking HCC prices also increased, averaging US$238/t in the quarter compared to US$184/t in FY2025 Q4. Corporate • Available cash and facilities was US$2.9 million at the period end (FY2026 Q3: US$5.4 million); • Kinetic Development Group Limited (KDG) made payments amounting to US$6.029 million for the purchase of MC Mining shares, as part of the share subscription agreement, during the quarter. The US$6.029 million payment relates to the final Second Closing as per the Share Subscription Agreement. KDG has a 51% shareholding of MC Mining after the US$6.029 million that was paid in April 2026; • MC Mining has entered into binding agreements with each of Kinetic Development Group Limited (KDG), the Company's controlling shareholder, and Eagle Canyon International Group Holding (Hong Kong) Limited (Eagle Canyon), a significant minority shareholder of the Company, pursuant to which KDG and Eagle Canyon have agreed to subscribe for one or more unsec ured convertible
Page 3
promissory notes to be issued by the Company for principal amounts of US$6,136,000 and US$3,800,000 respectively, representing a principal amount of US$9,936,000 in aggregate; • During the quarter, MC Mining drew down US$ 1.9 million under the unsecured convertible promissory note facility provided by Eagle Canyon; • During the quarter , MC Mining drew down US$3.89 million under the unsecured convertible promissory note facility provided by KDG; • Appointment of Mei Zhang as Non-Executive Director; • Appointment of Guo Xin as Non-Executive Director; • Resignation of Blagojce (Bill) Pavlovski as Non-Executive Director; • Appointment of Jianheng (Albert) Deng as a Chairman of MC Mining; and • Mathews Senosi stepped down as Interim Chairman but will continue to serve on the Board as a Non-Executive Director. Events subsequent to the end of the quarter • During July 2026, MC Mining drew down US$2.246 million under the unsecured convertible promissory note facility provided by KDG. • Resignation of Yi (Christine) He as Managing Director and Chief Executive Officer in July 2026; and • Appointment of Jianheng (Albert) Deng as interim Managing Director and Chief Executive Officer in July 2026.
Page 4
DETAILED QUARTERLY OPERATIONS REPORTS Makhado HCC Project – Soutpansberg Coalfield, Limpopo Province, South Africa (67% owned) Project Overview. Construction of the Makhado steelmaking hard coking coal Project (“ Makhado Project” or “Makhado”) progressed well, with C3 commissioning of the CHPP reached in May 2026. During the quarter, more project development milestones were successfully achieved, whilst maintaining regulatory compliance performance that have become a recognizable feature of the venture to date. The colliery will be South Africa’s largest hard coking coal (HCC) producer, designed to produce 800,000 tonnes a year of HCC 64 Mid Vol, once steady-state operation for the foundation phase is reached. The life -of-mine ( LOM) for the Makhado Colliery is planned to be 28 years. Contiguous to the Makhado Project are the satellite Greater Soutpansberg Projects (GSP), that are all at granted Mining Right status, also endowed with steelmaking HCC potential, and scheduled to be the focus of mine planning, once the Makhado Project is commissioned. Health, Safety and Regulatory Compliance and Environmental Performance. The Makhado Project had no LTIs for the quarter. Employee health initiatives focused on raising awareness on mental health and risk management; high leadership visibility on site . The workforce onsite at 737 people during the quarter with the host community well-represented in the labour complement and support services with more employees being onboarded into our processing plant. The mine continued to be built with zero reportable occupational health, safety and environmental incidents and keen emphasis being placed on environmental protection and management. The Department of Mineral and Petroleum Resources ( DMPR) inspectorate undertook a comprehensive and multi-discipline onsite inspections onsite for this quarter and all visits ha ve been positive during the change from commissioning into operation phase in Makhado colliery with positive feedback from the DMPR inspectors that visited the site. The Company continues to promote collaborative and constructive relationships with regulatory authorities and host community stakeholders with also the establishment of Makhado Colliery Women in Mining (WIM) structure.
Page 5
Project Development Milestones Achieved. Following the extended rainfall during the previous quarter, the Makhado Project has rebounded, with construction activities regaining momentum. Critical work required for operational readiness were completed and commissioned during the quarter with the Processing Plant (“CHPP”) C3 commissioning completed on 22 May 2026 and C4 commissioning making good progress. Noteworthy features of the project include: - Open pit Mining: – Mining of pre-strip overburden material from the open cast pit is now completed and coal exposed in the pit with different seams mined and fed to the plant during commissioning. JCI Mining (Pty) Ltd (“JCI”) , the principal mining contractor, now has 249 people on site, with a mining fleet consisting of 8 backhoe configured excavators, supported by a team of 33 articulated dump trucks. Coal mining is progressing very well with already 101 000 tonnes mined from the pit for commissioning of the plant. - Construction of the Coal Plant: – The CHPP construction works were completed and C3 commissioning completed on 22 May 2026. C4 Hot commissioning and plant start -up is underway and performance testing is scheduled for early August 2026. The CHPP will process ROM coal to produce a primary product of HCC 64 Mid Vol and a secondary product of 5,500kcal thermal coal (“TC”). Work is continuing on the planning of the expansion strategy once the foundation phase is commissioned. Environmental and Process Technologies (Enprotec), the lead contractors for building the Coal Plant, peaked at a staff compliment of 450 persons on site, across 16 different sub-contractors, with 140 of these employees having been recruited from the host communities. - Bulk power supply: –The main power supply line construction has been completed during the quarter. This power line, the Paradise Overhead Line (OHL), is a new a 14km long, 22kV bulk power transmission line, to deliver 7.5MVA of power to the site from the national grid, via the nearby Paradise Power Station. - Bulk water supply: - Bulk water systems (eastern wellfields) were installed and commissioned for provision of process water to the CHPP and the remainder of the system (western wellfields) are planned for commissioning during the next quarter.
Page 6
- Product logistics: - Product logistics infrastructure, including two weighbridges (80 tonnes certified) were commissioned during the quarter and Makhado is ready for product delivery to port. - Logistics contractors: - Logistics contractors were shortlisted and are preparing for trial runs to port during August. Outlook. Hot commissioning activities and start -up of the Coal Plant has progressed well and the performance testing is expected to be completed early August, whereafter the plant’s production will ramp up to full capacity before the end of the quarter. Uitkomst Colliery – Utrecht Coalfields, KwaZulu Natal Province, South Africa (84% owned) The board of directors approved the temporary suspension of mining and processing operations at Uitkomst Colliery, with an effective date of 1 March 2026. The decision follows continued operational underperformance and cash losses experienced at the operation. The suspension does not represent a permanent closure of the mine, a relinquishment of the mining right, nor a decision to place the operation into liquidation or business rescue. During this period, the Company is evaluating strategic options aimed at unlocking value and preserving future optionality. These evaluations may include engagement with interested third parties regarding potential partnerships, joint operations or other strategic arrangements in respect of Uitkomst. A binding offer has been received but no decision has been taken, and any transaction would be subject to customary approvals. In addition, the Company continues to review its asset base with a view to disposing of redundant or non-core items where appropriate with R 9.9m being raised from the disposal of redundant equipment; and entered into a short-term arrangement for the processing of slurry.
Page 7
Health, Safety and Environmental Performance. Uitkomst Colliery had a quarter free of reportable occupational Health and safety and environmental incidents and no LTI (FY2026 Q3: nil LTI). Vele Aluwani SSCC and TC Colliery – Limpopo (Tuli) Coalfield (100% owned) Operations at Vele remain suspended, pending the conclusion of a re-engineered business plan. Work continues on investigating a commercially viable logistics solution for the coal products to come from the colliery. Vele recorded no LTIs (FY2026 Q3: nil) during the quarter. Vele had a positive inspections from the Department of Water and Sanitation. Greater Soutpansberg Projects (GSP) – Soutpansberg Coalfield (74% owned) The GSP recorded no LTIs (FY2026 Q 3: nil) during the quarter. The GSP are a group of mineral tenements, held as Mining Rights and satellite to the Makhado Project. Appendix 5B – Quarterly Cash Flow Report The Company’s available cash balance and facilities as at 3 0 June 2026 was US$ 2.9 million. The aggregate amount of payments to related parties and their associates, disclosed as item 6.1 of the June 2026 quarter Appendix 5B, was US$ 36k, comprising executive and non -executive director remuneration. Albert Deng Interim Managing Director and Chief Executive Officer This announcement has been approved by the Company’s Disclosure Committee. All figures are in South African rand or United States dollars unless otherwise stated. For more information contact:
Page 8
Bill Pavlovski Company Secretary Vision Corporate (Pty) Ltd bill.pavlovski@mcmining.co.za Company advisers: BSM Sponsors Proprietary Limited is the nominated JSE Sponsor About MC Mining Limited: MC Mining is an ASX/JSE -listed coal exploration, development and mining company operating in South Africa. MC Mining’s key projects include the Uitkomst Colliery (metallurgical and thermal coal), Makhado Project (hard coking coal), Vele Colliery (semi-soft coking and thermal coal), and the Greater Soutpansberg Projects (coking and thermal coal). All figures are denominated in United States dollars unless otherwise stated. Safety metrics are compared to the preceding quarter while financial and operational metrics are measured against the comparable period in the previous financial year. A copy of this report is available on the Company's website, www.mcmining.co.za. Forward-looking statements This Announcement, including information included or incorporated by reference in this Announcement, may contain "forward-looking statements" concerning MC Mining that are subject to risks and uncertainties. Generally, the words "will", "may", "should", "c ontinue", "believes", "expects", "intends", "anticipates" or similar expressions identify forward-looking statements. These forward -looking statements involve risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. Many of these risks and uncertainties relate to factors that are beyond MC Mining’s ability to control or estimate precisely, such as future market conditions, changes in regulatory environment and the behaviour of other market participants. MC Mining cannot give any assurance that such forward- looking statements will prove to have been correct. The reader is cautioned not to place undue reliance on these forward- looking statements. MC Mining assumes no obligation and does not undertake any obligation to update or revise publicly any of the forward-looking statements set out herein, whether as a result of new information, future events or otherwise, except to the extent legally required. Statements of intention Statements of intention are statements of current intentions only, which may change as new information becomes available or circumstances change.
Page 9
Tenements held by MC Mining and its Controlled Entities Project Name Tenement Number Location Interest Change during quarter Chapudi Project* Albert 686 MS Limpopo~ 74% Bergwater 712 MS 74% Remaining Extent and Portion 2 of Bergwater 697 MS 74% Blackstone Edge 705 MS 74% Remaining Extent & Portion 1 of Bluebell 480 MS 74% Remaining Extent & Portion 1 of Bushy Rise 702 MS 74% Castle Koppies 652 MS 74% Chapudi 752 MS 74% Remaining Extent, Portions 1, 3 & 4 of Coniston 699 MS 74% Driehoek 631 MS 74% Remaining Extent of Dorps-rivier 696 MS 74% Enfield 512 MS (consolidation of Remaining Extent of Enfield 474 MS, Brosdoorn 682 MS & Remaining Extent of Grootvlei 684 MS) 74% Remaining Extent and Portion 1 of 74% Grootboomen 476 MS 74% Grootvlei 684 MS 74% Kalkbult 709 MS 74%
Page 10
Project Name Tenement Number Location Interest Change during quarter Remaining Extent, Remaining Extent of Portion 2, Remaining Extent of Portion 3, Portions 1, 4, 5, 6, 7 & 8 of Kliprivier 692 MS 74% Remaining Extent of Koodoobult 664 MS 74% Koschade 657 MS (Was Mapani Kop 656 MS) 74% Malapchani 659 MS 74% Mapani Ridge 660 MS 74% Melrose 469 MS 74% Middelfontein 683 MS 74% Mountain View 706 MS 74% M'tamba Vlei 654 MS 74% Remaining Extent & Portion 1 of Pienaar 635 MS 74% Remaining Extent & Portion 1 of Prince's Hill 704 MS 74% Qualipan 655 MS 74% Queensdale 707 MS 74% Remaining Extent & Portion 1 of Ridge End 662 MS 74% Remaining Extent & Portion 1 of Rochdale 700 MS 74% Sandilands 708 MS 74% Portions 1 & 2 of Sandpan 687 MS 74%
Page 11
Project Name Tenement Number Location Interest Change during quarter Sandstone Edge 658 MS 74% Remaining Extent of Portions 2 & 3 of Sterkstroom 689 MS 74% Sutherland 693 MS 74% Remaining Extent & Portion 1 of Varkfontein 671 MS 74% Remaining Extent, Portion 2, Remaining Extent of Portion 1 of Vastval 477 MS 74% Vleifontein 691 MS 74% Ptn 3, 4, 5 & 6 of Waterpoort 695 MS 74% Wildebeesthoek 661 MS 74% Woodlands 701 MS 74% Kanowna West & Kalbara M27/41 Coolgardie^ Royalty<> M27/47 Royalty<> M27/59 Royalty<> M27/72,27/73 Royalty<> M27/114 Royalty<> M27/196 Royalty<> M27/181 5.99% M27/414,27/415 Royalty<> P27/1826-1829 Royalty<> P27/1830-1842 Royalty<> P27/1887 Royalty<>
Page 12
Project Name Tenement Number Location Interest Change during quarter Abbotshall Royalty ML63/409,410 Norseman^ Royalty Kookynie Royalty ML40/061 Leonora^ Royalty ML40/135,136 Royalty Makhado Project Fripp 645 MS Limpopo~ 67%# Lukin 643 MS 67%# Mutamba 668 MS 67%# Salaita 188 MT 67%# Tanga 849 MS 67%# Daru 889 MS 67%# Windhoek 900 MS 67%# Generaal Project* Beck 568 MS Limpopo~ 74% Bekaf 650 MS 74% Remaining Extent & Portion 1 of Boas 642 MS- 74% Chase 576 MS 74% Coen Britz 646 MS 74% Fanie 578 MS 74% Portions 1, 2 and Remaining Extent of Generaal 587 MS 74% Joffre 584 MS 74% Juliana 647 MS 74% Kleinenberg 636 MS 74% Remaining Extent of Maseri Pan 520 MS 74%
Page 13
Project Name Tenement Number Location Interest Change during quarter Remaining Extent and Portion 2 of Mount Stuart 153 MT 100% Nakab 184 MT 100% Phantom 640 MS 74% Riet 182 MT 100% Rissik 637 MS 100% Schuitdrift 179 MT 100% Septimus 156 MT 100% Solitude 111 MT 74% Stayt 183 MT 100% Remaining Extent & Portion 1 of Terblanche 155 MT 100% Van Deventer 641 MS 74% Wildgoose 577 MS 74% Mopane Project* Ancaster 501 MS Limpopo~ 100% Banff 502 MS 74% Bierman 599 MS 74% Cavan 508 MS 100% Cohen 591 MS 100% Remaining Extent, Portions 1 & 2 of Delft 499 MS 74% Dreyer 526 MS 74% Remaining Extent of Du Toit 563 MS 74% Faure 562 MS 74%
Page 14
Project Name Tenement Number Location Interest Change during quarter Remaining Extent and Portion 1 of Goosen 530 MS 74% Hermanus 533 MS 74% Jutland 536 MS 100% Krige 495 MS 74% Mons 557 MS 100% Remaining Extent of Otto 560 MS (Now Honeymoon) 74% Remaining Extent & Portion 1 of Pretorius 531 MS 74% Schalk 542 MS 74% Stubbs 558 MS 100% Ursa Minor 551 MS 74% Van Heerden 519 MS 74% Portions 1, 3, 4, 5, 6, 7, 8, 9, Remaining Extent of Portion 10, Portions 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 26, 27, 29, 30, 35, 36, 37, 38, 39, 40, 41, 44, 45, 46, 48, 49, 50, 51, 52 & 54 of Vera 815 MS 74% Remaining Extent of Verdun 535 MS 74% Voorburg 503 MS 100% Scheveningen 500 MS 74% Uitkomst Colliery Portion 3 (of 2) of Kweekspruit No. 22 KwaZulu- Natal~ 84%
Page 15
Project Name Tenement Number Location Interest Change during quarter and prospects Portion 8 (of 1) of Kweekspruit No. 22 84% Remainder of Portion 1 of Uitkomst No. 95 84% Portion 5 (of 2) of Uitkomst No. 95 84% Remainder Portion1 of Vaalbank No. 103 84% Portion 4 (of 1) of Vaalbank No. 103 84% Portion 5 (of 1) of Vaalbank No. 103 84% Remainder of Portion 1 of Rustverwacht No. 151 84% Remainder of Portion 2 of Rustverwacht No. 151 84% Remainder of Portion 3 (of 1) of Rustverwacht No. 151 84% Portion 4 (of 1) Rustverwacht No.151 84% Portion 5 (of 1) Rustverwacht No. 151 84% Remainder of Portion 6 (of 1) of Rustverwacht No. 151 84% Portion 7 (of 1) of Rustverwacht No. 151 84% Portion 8 (of 2) of Rustverwacht No. 151 84%
Page 16
Project Name Tenement Number Location Interest Change during quarter Remainder of Portion 9 (of 2) of Rustverwacht No. 151 84% Portion 11 (of 6) of Rustverwacht No. 151 84% Portion 12 (of 9) of Rustverwacht No. 151 84% Portion 13 (of 2) of Rustverwacht No. 151 84% Portion 14 (of 2) of Rustverwacht No. 151 84% Portion 15 (of 3) of Rustverwacht No. 151 84% Portion 16 (of 3) of Rustverwacht No. 151 84% Portion 17 (of 2) of Rustverwacht No. 151 84% Portion 18 (of 3) of Waterval No. 157 84% Remainder of Portion 1 of Klipspruit No. 178 84% Remainder of Portion 4 of Klipspruit No. 178 84% Remainder of Portion 5 of Klipspruit No. 178 84% Portion 6 of Klipspruit No. 178 84%
Page 17
Project Name Tenement Number Location Interest Change during quarter Portion 7 (of 1) of Klipspruit No. 178 84% Portion 8 (of 1 )of Klipspruit No. 178 84% Portion 9 of Klipspruit No. 178 84% Remainder of Portion 10 (of 5) of Klipspruit No. 178 84% Portion 11 (of 5) of Klipspruit No. 178 84% Portion 13 (of 4) of Klipspruit No. 178 84% Remainder of Portion 14 of Klipspruit No. 178 84% Portion 16 (of 14) of Klipspruit No. 178 84% Portion 18 of Klipspruit No. 178 84% Portion 23 of Klipspruit No. 178 84% Remainder of Portion 1 of Jackalsdraai No. 299 84% Remainder of Jericho B No. 400 84% Portion 1 of Jericho B No. 400 84% Portion 2 of Jericho B No. 400 84% Portion 3 of Jericho B No. 400 84% Remainder of Jericho C No. 413 84%
Page 18
Project Name Tenement Number Location Interest Change during quarter Portion 1 of Jericho C No. 413 84% Remainder of Portion 1 of Jericho A No. 414 84% Remainder of Portion 2 (of 1) of Jericho A No. 414 84% Portion 3 (of 1) of Jericho A No. 414 84% Portion 4 (of 1) of Jericho A No. 414 84% Portion 5 (of 2) of Jericho A No. 414 84% Portion 6 (of 1) of Jericho A No. 414 84% Margin No. 420 84% Vele Colliery and prospects Portions of Overvlakte 125 MS (Remaining Extent, 3, 4, 5, 6, 13, 14) Limpopo~ 100% Bergen Op Zoom 124 MS 100% Semple 155 MS 100% Voorspoed 836 MS 100% Alyth 837 MS 100% * Form part of the Greater Soutpansberg Projects ~ Tenement located in the Republic of South Africa ^ Tenement located in Australia # MC Mining’s interest will reduce to 67% on completion of the 26% Broad Based Black Economic Empowerment (BBBEE) transaction <> net smelter royalty of 0.5%
Page 19
Rule 5.5 ASX Listing Rules Appendix 5B (17/07/20) Page 1 + See chapter 19 of the ASX Listing Rules for defined terms. Appendix 5B Mining exploration entity or oil and gas exploration entity quarterly cash flow report Name of entity MC Mining Limited ABN Quarter ended (“current quarter”) 98 008 905 388 30 June 2026 Consolidated statement of cash flows Current quarter $USD’000 Year to date (Twelve months) $USD’000 1. Cash flows from operating activities - 8,901 1.1 Receipts from customers 1.2 Payments for - - (a) exploration & evaluation (b) development (c) production 1,093 (14,870) (d) staff costs (569) (2,713) (e) administration and corporate costs (66) (1,927) 1.3 Dividends received (see note 3) 1.4 Interest received 40 359 1.5 Interest and other costs of finance paid (104) (272) 1.6 Income taxes paid - - 1.7 Government grants and tax incentives 1.8 Other (provide details if material) - - 1.9 Net cash from / (used in) operating activities 394 (10,522) 2. Cash flows from investing activities 2.1 Payments to acquire or for: (a) entities (b) tenements (c) property, plant and equipment (15,100) (44 245) (d) exploration & evaluation - - (e) investments - - (f) other non-current assets
Page 20
Appendix 5B Mining exploration entity or oil and gas exploration entity quarterly cash flow report ASX Listing Rules Appendix 5B (17/07/20) Page 2 + See chapter 19 of the ASX Listing Rules for defined terms. Consolidated statement of cash flows Current quarter $USD’000 Year to date (Twelve months) $USD’000 2.2 Proceeds from the disposal of: (a) entities (b) tenements (c) property, plant and equipment 557 557 (d) investments 1,045 1,142 (e) other non-current assets 2.3 Cash flows from loans to other entities 2.4 Dividends received (see note 3) 2.5 Other (provide details if material) - - 2.6 Net cash from / (used in) investing activities (13,498) (42,546) 3. Cash flows from financing activities 6,029 47,029 3.1 Proceeds from issues of equity securities (excluding convertible debt securities) 3.2 Proceeds from issue of convertible debt securities 3.3 Proceeds from exercise of options 3.4 Transaction costs related to issues of equity securities or convertible debt securities - (588) 3.5 Proceeds from borrowings 5,813 5,985 3.6 Repayment of borrowings (278) (2,742) 3.7 Transaction costs related to loans and borrowings 3.8 Dividends paid - - 3.9 Other (provide details if material) (66) (434) 3.10 Net cash from / (used in) financing activities 11,498 49,250 4. Net increase / (decrease) in cash and cash equivalents for the period 4.1 Cash and cash equivalents at beginning of period 5,363 7,376 4.2 Net cash from / (used in) operating activities (item 1.9 above) 394 (10,522) 4.3 Net cash from / (used in) investing activities (item 2.6 above) (13,498) (42,546) 4.4 Net cash from / (used in) financing activities (item 3.10 above) 11,498 49,250
Page 21
Appendix 5B Mining exploration entity or oil and gas exploration entity quarterly cash flow report ASX Listing Rules Appendix 5B (17/07/20) Page 3 + See chapter 19 of the ASX Listing Rules for defined terms. Consolidated statement of cash flows Current quarter $USD’000 Year to date (Twelve months) $USD’000 4.5 Effect of movement in exchange rates on cash held (851) (652) 4.6 Cash and cash equivalents at end of period 2,906 2,906 5. Reconciliation of cash and cash equivalents at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts Current quarter $USD’000 Previous quarter $USD’000 5.1 Bank balances 3,703 6,438 5.2 Call deposits 25 25 5.3 Bank overdrafts (822) (1,100) 5.4 Other (provide details) 5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above) 2,906 5,363 6. Payments to related parties of the entity and their associates Current quarter $USD'000 6.1 Aggregate amount of payments to related parties and their associates included in item 1 36 6.2 Aggregate amount of payments to related parties and their associates included in item 2 Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity report must include a description of, and an explanation for, such payments.
Page 22
Appendix 5B Mining exploration entity or oil and gas exploration entity quarterly cash flow report ASX Listing Rules Appendix 5B (17/07/20) Page 4 + See chapter 19 of the ASX Listing Rules for defined terms. 7. Financing facilities Note: the term “facility’ includes all forms of financing arrangements available to the entity. Add notes as necessary for an understanding of the sources of finance available to the entity. Total facility amount at quarter end $USD’000 Amount drawn at quarter end $USD’000 7.1 Loan facilities 9,936 5,790 7.2 Credit standby arrangements 7.3 Other (please specify) 811 811 7.4 Total financing facilities 811 811 7.5 Unused financing facilities available at quarter end 4,146 7.6 Include in the box below a description of each facility above, including the lender, interest rate, maturity date and whether it is secured or unsecured. If any additional financing facilities have been entered into or are proposed to be entered into after quarter end, include a note providing details of those facilities as well.
Page 23
Appendix 5B Mining exploration entity or oil and gas exploration entity quarterly cash flow report ASX Listing Rules Appendix 5B (17/07/20) Page 5 + See chapter 19 of the ASX Listing Rules for defined terms. All facilities are ZAR denominated and are repayable in South African Rand (ZAR) 7.1 Loan facilities – Kinetic and Eagle Canyon US$9.936 million: Lenders: Kinetic Development Group Limited and Eagle Canyon International Group Holding (Hong Kong) Limited. Kinetic has committed US$6.136 million and Eagle Canyon has committed US$3.800 million under unsecured convertible promissory note funding arrangements, giving a combined aggregate principal amount of US$9.936 million. The notes may be drawn down by the Company in one or more tranches from signing until 30 September 2026, subject to extension by the relevant investor in writing and approval of the specific use of funds by the relevant investor. Maturity Date Each note matures twelve months from the date funds were first received by the Company from the relevant investor, to the extent not converted in accordance with its terms. Interest Rate: Interest accrues on the outstanding principal amount at the Reserve Bank of Australia’s publicly quoted outstanding business loan rate for medium business plus a margin of 3.00% per annum, compounded monthly in arrears on a 365-day year basis. Security The notes are unsecured and rank pari passu with all other unsecured indebtedness of the Company from time to time. Conversion Each investor may elect to convert all or part of the outstanding principal amount, together with accrued interest, into new fully paid ordinary shares at US$0.2089 per share, subject to customary adjustments and receipt of all necessary shareholder and regulatory approvals. 7.3 Other $USD 0.8 million: Lender: ABSA Group Limited a) $USD 0.8 million overdraft facility Maturity Date a) Reviewed annually Interest Rate: a) Floating rate: South African Prime plus 3% Security a) Receivables, bond over Uitkomst assets
Page 24
Appendix 5B Mining exploration entity or oil and gas exploration entity quarterly cash flow report ASX Listing Rules Appendix 5B (17/07/20) Page 6 + See chapter 19 of the ASX Listing Rules for defined terms. 8. Estimated cash available for future operating activities $USD’000 8.1 Net cash from / (used in) operating activities (item 1.9) 394 8.2 (Payments for exploration & evaluation classified as investing activities) (item 2.1(d)) - 8.3 Total relevant outgoings (item 8.1 + item 8.2) 394 8.4 Cash and cash equivalents at quarter end (item 4.6) 2,906 8.5 Unused finance facilities available at quarter end (item 7.5) 4,146 8.6 Total available funding (item 8.4 + item 8.5) 7,052 8.7 Estimated quarters of funding available (item 8.6 divided by item 8.3) N/A Note: if the entity has reported positive relevant outgoings (ie a net cash inflow) in item 8.3, answer item 8.7 as “N/A”. Otherwise, a figure for the estimated quarters of funding available must be included in item 8.7. 8.8 If item 8.7 is less than 2 quarters, please provide answers to the following questions: 8.8.1 Does the entity expect that it will continue to have the current level of net operating cash flows for the time being and, if not, why not? Answer: 8.8.2 Has the entity taken any steps, or does it propose to take any steps, to raise further cash to fund its operations and, if so, what are those steps and how likely does it believe that they will be successful? Answer: 8.8.3 Does the entity expect to be able to continue its operations and to meet its business objectives and, if so, on what basis? Answer: Note: where item 8.7 is less than 2 quarters, all of questions 8.8.1, 8.8.2 and 8.8.3 above must be answered. Compliance statement 1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A. 2 This statement gives a true and fair view of the matters disclosed. Date: ......31 July 2026............................................................................. Authorised by: .......... Disclosure Committee......................................................................... (Name of body or officer authorising release – see note 4) Notes 1. This quarterly cash flow report and the accompanying activity report provide a basis for informing the market about the entity’s activities for the past quarter , how they have been financed and the effect this has had on its cash position. An entity that wishes to disclose additional information over and above the minimum required under the Listing Rules is encouraged to do so. 2. If this quarterly cash flow report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash
Page 25
Appendix 5B Mining exploration entity or oil and gas exploration entity quarterly cash flow report ASX Listing Rules Appendix 5B (17/07/20) Page 7 + See chapter 19 of the ASX Listing Rules for defined terms. Flows apply to this report. If this quarterly cash flow report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report. 3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity. 4. If this report has been authorised for release to the market by your board of directors, you can insert here: “By the board”. If it has been authorised for release to the market by a committee of your board of directors, you can insert here: “By the [name of board committee – eg Audit and Risk Committee] ”. If it has been authorised for release to the market by a disclosure committee, you can insert here: “By the Disclosure Committee”. 5. If this report has been authorised for release to the market by your board of directors and you wish to hold yourself out as complying with recommendation 4.2 of the ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations, the board should have received a declaration from its CEO and CFO that, in their opinion, the financial records of the entity have been properly maintained, that this report complies with the appropriate accounting standards and gives a true and fair view of the cash flows of the entity and that their opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively.