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For personal use TerraCom Limited Blair Athol Mine Access Road Clermont , Queensland , 4721 +61 7 4983 2038 ABN 35 143 533 537 ASX ANNOUNCEMENT 26 October 2021 TERRACOM QUARTERLY REPORT - JULY TO SEPTEMBER 2021 TerraCom Limited ( TerraCom or Company ) ( ASX : TER ) presents its quarterly activities report for the 3 months ending 30 September 2021 ( September Quarter ) . Commenting on the result , Craig Ransley , TerraCom Executive Chairman , said , " The operating EBITDA¹ result achieved for the September Quarter of A $ 58.3 million was excellent . The export coal market remains strong and together with the South African domestic coal demand returning to pre - Covid 19 levels , the Company looks forward to continuing to capitalise on market conditions and reduce debt to improve the Company's balance sheet ” . Q1 HIGHLIGHTS Record operating EBITDA¹ of A $ 58.3 million for the September Quarter . • Increasing coal prices resulted in an operating cash margin of A $ 101 per tonne being achieved for Blair Athol ( BA ) in the month of September 2021 . All three operating mines in South Africa ( SA ) - NBC , NCC and Ubuntu - delivered positive EBITDA for the September Quarter resulting in an EBITDA margin of A $ 11.4 per sold tonne . Coal sales for the September Quarter totalled 2.47 million tonnes³ , representing annualised managed coal sales of 9.89 million tonnes . BA coal sales forecast for the December 2021 Quarter to be 575,000 tonnes with forecast revenue of A $ 224 per tonne² at a forecast operating cash margin of A $ 134 per tonne4 . Blair Athol Operating EBITDA for December 2021 quarter forecast to be A $ 77 million . BA coal is fully sold until end January 2022 . ✓ The new refinance program with current bondholders has now been formally enacted . With a new maturity date of 31 December 2022 , the Company will focus on debt extinguishment over the next 15 months . 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 operating mines ranges is 49 % . The data presented does not include the TerraCom corporate costs . 2 Based on forecast market indexes as at 22 October 2021 at an FX of 0.75 . 3 The data represents total tonnes and assumes 100 % ownership of the South African operations . 4 Blair Athol operating cost increase as a result of the increased revenue linked costs ( predominantly royalties ) and increase in other commodity price driven input costs ( predominantly diesel ) . terracomresources.com/info@terracomresources.com Page 1