Page 1

For personal use only NAMOI CONON Growing Together ASX RELEASE QUARTERLY ACTIVITY REPORT AND APPENDIX 4C - NAMOI COTTON LIMITED ( ASX : NAM ) 30 June 2021 Namoi Cotton Limited ( ' Namoi ' or the ' Company ' ) is pleased to provide its Appendix 4C cash flow statement for the quarter ended 31 May 2021 ( ' Q1-22 ' ) , along with the following update . Business activities in the First Quarter ( Q1-22 ) There was no material change in the activities of the Company during Q1-22 . As noted in our investor presentation to the market on 3 May 2021 , our forecast ginning volume for this season is ~ 450,000 bales compared to 124,000 bales last season . Cashflow has increased accordingly however , seasonality remains comparable to prior seasons with payments for product manufacturing and operating costs being weighted to our first two quarters ( i.e. the 6 months ending 31 August ) , whilst receipts from customers are weighted to our third and fourth quarters . The Company's Q1-22 cashflow covers the commencement of the 2021 ginning season including the sale and distribution of ginning by - products and services . Payments to related parties represent payments made to Grower Directors for the supply of by- products and services less the cost of ginning cotton . These payments are included within product manufacturing and operating costs and were made in the ordinary course of business . Receipts from customers totalled $ 43.8 million during Q1-22 ( Q1-21 : $ 5.3 million ) and compare to product manufacturing and operating costs of $ 42.0 million for the same period ( Q1-21 : $ 3.9 million ) . Staff plus other administration and corporate costs totalled $ 4.2m in Q1-22 ( Q1-21 : $ 3.2 million ) compared to $ 2.7m in Q4-21 , reflecting the commencement of ginning and the increased volumes this year versus last . Net cash outflow from operating activities in Q1-22 totalled - $ 2.6 million ( Q1-21 : - $ 1.7 million ) . The Q1-22 cashflow from financing activities includes $ 7.2m proceeds from the successful placement of new shares as reported in our market announcement on 3 May 2021. The Company has fully repaid its drawn working capital debt leaving it with $ 12.5 million worth of cash and cash equivalents and undrawn financing facilities heading into Q2-22 . Material Developments The Company announced : • the successful placement of $ 7.2 million worth of new shares on 3 May 2021 ; and the appointment of John Stevenson as Chief Executive Officer on 1 June 2021 ; and the successful completion of its Share Purchase Plan from which it raised $ 3.5 million on 4 June 2021 .