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For personal use only TerraCom Limited Blair Athol Mine Access Road Clermont , Queensland , 4721 +61 7 4983 2038 ABN 35 143 533 537 ASX ANNOUNCEMENT TERRACOM 3 May 2021 QUARTERLY REPORT - JANUARY TO MARCH 2021 TerraCom Limited ( TerraCom or Company ) ( ASX : TER ) presents its quarterly activities report for the 3 months ending 31 March 2021 ( March Quarter ) . Q3 HIGHLIGHTS The first ever full shipment of thermal coal from the South African North Block Colliery ( NBC ) sailed during March 2021. The Company now looks forward to continuing to increase its export sales mix from South Africa ( SA ) to deliver on its new export strategy . Operational control has been re - established over the Company's South African operations . The Group is on track to deliver operational improvements and bolster financial performance . The demand levels for Eskom have stabilised and the Company is forecasting that all South African operations should deliver according to contracted quantities for the remainder of the 2021 financial year . The Blair Athol ( BA ) EBITDA margin realised throughout March 2021 quarter was A $ 15.5 per tonne . Based on current coal pricing , the margin is forecasted to increase to be between A $ 25 and A $ 30 per tonne for the June 2021 quarter . The stronger domestic power generation demand in SA , combined with the increased export volumes is set to deliver a total sales volume of 9.4 million tonnes for the current financial year , consistent with FY2020 . Q3 FINANCIAL AND OPERATIONAL HIGHLIGHTS The Operating EBITDA¹ from the Australia and South Africa Business Units ( including other equity holders ) for the March 2021 quarter was as follows : Australia EBITDA ( AUD $ 000's ) $ 8,241 EBITDA ( AUD $ / Sold Tonne ) $ 15.5 South Africa $ 6,442 $ 3.8 1 Non IFRS measure . Based on management accounts . The data presented represents 100 % of the result from the South Africa Business Unit and therefore includes other equity holders , noting TerraCom's equity interest in the mines ranges from 48.9 % to 70.5 % . The data presented does not include the TerraCom corporate costs . terracomresources.com/info@terracomresources.com Page 1