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Rule 4.7B NAMOI COTON Growing Together ASX RELEASE 20 December 2021 QUARTERLY ACTIVITY REPORT AND APPENDIX 4C - NAMOI COTTON LIMITED ( ASX : NAM ) Namoi Cotton Limited ( ' Namoi ' or the ' Company ' ) is pleased to provide its Appendix 4C cash flow statement for the quarter ended 30 November 2021 ( ' Q3-22 ' ) , along with the following update . Business activities in the Third Quarter ( Q3-22 ) There was no material change in the activities of the Company during Q3-22 . The ginning season is now complete with our ginning volumes reaching 492,989 bales . This is in line with our investor presentation to the market on 29 October 2021 and compares with 124,000 bales last season . For personal use only The Company's Q3-22 cashflow covers the beginning of maintenance in preparation for the coming season together with receipts from customers for by - products . Net cash outflow from operating activities in Q3-22 totalled $ 9.0 million ( Q3-21 : net cash inflows $ 1.9 million ) . Receipts from customers totalled $ 59.3 million during Q3-22 ( Q3-21 : $ 14.4 million ) and compare to product manufacturing and operating costs of $ 64.6 million for the same period ( Q3-21 : $ 9.8 million ) , reflecting increased ginning volumes versus the same period last year . Staff plus other administration and corporate costs totalled $ 3.2m in Q3-22 ( Q3-21 : $ 3.0 million ) . Payments to related parties represent payments made to Grower Directors for the supply of cotton lint , 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 . Material Developments The Company released its Half Year Report and Accounts , together with an Investor Presentation on 29 October 2021 in which it announced : the outlook for Australian cotton production to be 4.6m bales¹ for the 2022 season ; renewal and expansion of the Company's debt facilities to 31 October 2024 ; and • • a continuation in the Company's 4PP Strategy and gin - ready program . Cotton growing areas in NSW and QLD have experienced flooding in November and December which may result in a loss of crops in areas that do not have the protection of levees and may result in a revision in early 2022 to the forecast Australian cotton production for the 2022 season . 1 ABARES forecast ( September 2021 ) ASX Listing Rules Appendix 4C ( 17/07/20 ) + See chapter 19 of the ASX Listing Rules for defined terms . Page 1