BCI MINERALS LIMITED — Capital/Financing Update 2021

Nov 23, 2021

24 November 2021

ASX Release

==> picture [202 x 34] intentionally omitted <==

WESTPAC AND ICBC MANDATED FOR $310M MARDIE SYNDICATED LOAN FACILITIES

• Westpac and ICBC to provide $310M of loan facilities as part of the project debt funding package[1 ] support development of the Mardie Project

• The facilities include a $140M construction facility with 7.5-year tenor, a $120M cost overrun facility and a $50M bank guarantee facility

• Westpac and ICBC will arrange and manage primary syndication of the debt facilities

• Westpac will also act as the sole sustainability structurer for the facilities which will align with the Asia Pacific Loan Markets Associations’ and Loan Market Association’s Green Loan Principles, the international market standard for Green Loans

BCI Minerals Limited (ASX:BCI) (‘BCI’ or the ‘Company’) is pleased to announce the appointment of Westpac Banking Corporation (‘Westpac’) and Industrial and Commercial Bank of China Limited (‘ICBC’) as the mandated lead arrangers for the previously announced[1] commercial debt facilities totalling A$310M including a $140M construction loan facility plus $170M facilities for cost overruns and guarantee requirements (together the ‘Facilities’). Funds will be used for the development of the Mardie Salt & Potash Project alongside the previously announced project finance commitments from the Northern Australia Infrastructure Facility ($490M) and Export Finance Australia ($110M), and the $360M capital raising announced on 18 November 2021.

The mandate documentation includes the terms and conditions on which Westpac and ICBC have agreed to commit, arrange and manage the primary syndication of the Facilities. Westpac will underwrite the Facilities and has also been appointed as the sole sustainability structurer for the Facilities.

The signing of the mandate letter follows Westpac and ICBC’s credit approval processes and enables the lenders to commence the primary syndication. The Facilities remain subject to completing detailed facility documentation and typical funding conditions including regulatory approvals.

Commenting on the Facilities, BCI’s Managing Director, Alwyn Vorster said: “The signing of the mandate letter represents another key milestone in finalising the commercial loan component of the Mardie project debt funding package. We are very pleased to have the support of two quality lenders in Westpac, one of Australia’s major banks, and ICBC, the world’s largest lending bank by asset value. Support from Westpac and ICBC represents a further endorsement of the Mardie Project’s robust financial metrics. ”

BCI has been advised by KPMG and Magma Capital in the debt discussions, and thanks them for their support during the process.

-END-

1 Refer to ASX announcement dated 15 October 2021

T +61 8 6311 3400 E info@bciminerals.com.au

Level 1, 1 Altona Street West Perth WA 6005

GPO Box 2811 West Perth WA 6872

==> picture [129 x 22] intentionally omitted <==

This ASX announcement has been authorised for release by the Board of BCI Minerals Limited.

For further information:

Investors:

Rebecca Thompson BCI Minerals – Investor Relations Executive Tel: +61 416 079 329 E: rebecca.thompson@bciminerals.com.au

Media:

Kristy McGrath BCI Minerals – Communications Manager Tel: +61 417 451 724 E: kristy.mcgrath@bciminerals.com.au

2 ASX RELEASE 24 NOVEMBER 2021

==> picture [129 x 22] intentionally omitted <==

ABOUT BCI MINERALS

BCI Minerals Limited (ASX:BCI) is an Australian-based company that is developing a salt and potash business supported by iron ore royalty earnings. BCI is rapidly advancing its 100% owned Mardie Salt & Potash Project, a potential Tier 1 project located on the West Pilbara coast in the centre of Australia's key salt production region.

Mardie aims to produce 5.35Mtpa of high-purity salt (>99.5% NaCl) and 140ktpa of sulphate of potash (SOP) (>52% K2O) via solar evaporation of seawater[2] . Using an inexhaustible seawater resource and a production process driven mainly by natural solar and wind energy, Mardie is a sustainable opportunity to supply the salt and potash growth markets in Asia over many decades. There is potential to optimise and expand the project beyond currently planned production levels.

A Final Investment Decision has been made and BCI is finalising funding, approvals and tenure required to commence Main Construction in early 2022, which will allow first salt sales to be achieved by Q4 2024 and first SOP sales by Q1 2026. On 18 November 2021, BCI announced a $360m capital raising to provide a key project funding component, subject to shareholder approval.

BCI receives quarterly royalty earnings from Iron Valley, an iron ore mine located in the Central Pilbara region of Western Australia which is operated by Mineral Resources Limited (ASX:MIN). EBITDA to BCI from Iron Valley was A$69.5M in FY21, and $17.1M in the first quarter of FY22. BCI’s other assets include potential royalties and/or deferred payments from Koodaideri South, Bungaroo South and Kumina.

KEY STATISTICS

KEY STATISTICS	KEY STATISTICS
Shares on issueCash in bankBoardMajor shareholders		599.96 million$106.2 millionas at 16 November 2021Brian O’DonnellNon-Executive ChairmanAlwyn VorsterManaging DirectorMichael BlakistonNon-Executive DirectorJenny BloomNon-Executive DirectorGarret DixonNon-Executive DirectorRichard CourtNon-Executive DirectorChris SalisburyNon-Executive DirectorWroxby Pty Ltd39.5%
		Sa	ndon Capital Pty Lt	d6.0%
Website:		w	ww.bciminerals.co	m.au

2 Refer to ASX announcement dated 21 April 2021. BCI confirms that all material assumptions underpinning the production forecast and financial information derived from the production forecast have not materially changed and continue to apply.

3 ASX RELEASE 24 NOVEMBER 2021