BCI MINERALS LIMITED — Capital/Financing Update 2021

Oct 14, 2021

ASX Release

15 October 2021

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$740M MARDIE PROJECT DEBT FUNDING SECURED

• Northern Australia Infrastructure Facility (NAIF) approves $490M loan facility with a 15-year tenor, subject to conditions

• Export Finance Australia (EFA) approves $110M loan facility with a 10-year tenor, subject to conditions

• Credit approvals from two leading Commercial Banks to provide a $140M construction loan with a 7.5-year tenor, plus $170M facilities for cost overrun and guarantee requirements

• Green commercial loan facilities reflect Mardie’s strong ESG credentials

• All debt approvals are subject to completing detailed facility documentation and typical funding conditions

• $740M debt package underpins Mardie’s $1.2Bn funding requirement

BCI Minerals Limited (ASX:BCI) (‘BCI’ or the ‘Company’) is pleased to announce it has received approvals, subject to conditions, for $740M of project finance debt for the Mardie Project. Total funding of approximately $1.2Bn is required to develop the Project to a capacity of 5.35Mtpa of salt and 140ktpa of Sulphate of Potash (‘SOP’). This includes all construction, contingency, funding, interest, and ramp-up costs and will be funded by the $740M debt package and approximately $460M in equity from a combination of existing BCI cash, ongoing Iron Valley royalty earnings, potential corporate debt and new equity as outlined in Figure 1.

Figure 1: Proposed Funding Structure

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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

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The project finance package includes:

• $490M, 15-year facility from the Northern Australia Infrastructure Facility (NAIF). The NAIF Board approved a $40M increase to the $450M loan previously approved in December 2020 in recognition of the larger project delivered under the Optimised Feasibility Study. The Minister for Northern Australia, Honourable David Littleproud, endorsed the NAIF allocation;

• $110M, 10-year facility from Export Finance Australia (EFA). EFA has obtained conditional approval for the debt facility;

• Two leading Commercial Banks (Australian and international) have provided credit approvals for $310M commitments to the Green Commercial Facilities for the Project which include a $140M 7.5 year construction facility, $120M cost overrun facility and a $50M bank guarantee facility for any performance bonds required under construction or operating contracts; and

• All facilities remain conditional on formal documentation, securing required tenure & approvals, equity funding, offtake arrangements, and other customary conditions precedent are associated with the loans.

The Green Commercial Loan Facilities will align with the Asia Pacific Loan Markets Associations’ and Loan Market Association’s Green Loan Principles, the international market standard for Green Loans. More than 99% of the energy required to produce salt and SOP at Mardie is derived from natural solar and wind sources, with seawater the inexhaustible feedstock. Meeting the criteria for pollution prevention, materials recovery, materials re-use and the production of agricultural fertiliser from salt waste through sustainable means were key to establishing Green Loan eligibility.

The $600M of conditional federal government financing via NAIF and EFA recognises the long term benefits the Project will bring to the region over its 60+ year life, including ~$8B of corporate taxes, $800M in state royalties, $200M of native title payments, multi-user export infrastructure, local jobs and contracts and indigenous engagement.

Total funds will be committed over an approximate 5-year period to complete construction of the Project assets, commence operations and progress ramp-up of production and sales. BCI equity contributions will be spent first, followed by the NAIF facility drawn to 50% and thereafter, the bank facility, EFA facility and remaining balance of the NAIF facility will be drawn on a pro-rata basis.

Approval of these loans followed many months of detailed due diligence by the NAIF, EFA and banknominated independent experts, including technical, social, governance, environmental and market teams.

NAIF CEO Chris Wade said: “ We are delighted to be able to increase our support to the Mardie Salt & Potash Project which continues NAIF’s record of investing for positive economic impact in northern Australia .”

BCI’s Managing Director, Alwyn Vorster said: “ Securing this landmark $740M project finance debt package represents a key milestone for the Mardie Salt & Potash Project and will underpin the pending consideration of the BCI Board to progress Mardie to a final investment decision (FID). The participation of government funders such as NAIF and EFA, together with the confidence demonstrated by the lead Commercial Banks in the technical, economic and green credentials of the Project is a strong validation of Mardie’s potential. BCI is now well positioned to achieve FID, raise the required new equity and subject to final approvals, commence main construction. ”

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For the project finance debt, KPMG Corporate Finance and Magma Capital are acting as financial advisors to BCI and Herbert Smith Freehills is providing legal advice.

-END-

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

For further information:

Investors:

Media:

Rebecca Thompson Sam Burns BCI Minerals – Investor Relations Executive Six Degrees Investor Relations Tel: +61 416 079 329 Tel: +61 400 164 067 E: rebecca.thompson@bciminerals.com.au E: sam.burns@sdir.com.au

ABOUT NAIF

The Northern Australia Infrastructure Facility (‘NAIF’) is a Commonwealth Government A$5 billion lending facility to finance project via the governments of the Northern Territory, Queensland and Western Australia to achieve growth in the economies and population of northern Australia and encourage and complement private sector investment.

Projects supported by NAIF are diversified across sectors including ports, airports, tourism, education, agriculture resources and renewable energy.

Every NAIF project will support important Indigenous engagement with many projects committing to Indigenous employment or procurement targets. More information is available at http://www.naif.gov.au/.

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.[1] 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.

1 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.

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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). BCI’s EBITDA from Iron Valley was A$69.5M in FY21.

KEY STATISTICS

Shares on issue 599.96 million Cash in bank $110 million as at 31 July 2021 Board Brian O’Donnell Non-Executive Chairman Alwyn Vorster Managing Director Michael Blakiston Non-Executive Director Jenny Bloom Non-Executive Director Garret Dixon Non-Executive Director Richard Court Non-Executive Director Chris Salisbury Non-Executive Director Major shareholders Wroxby Pty Ltd 39.5% Sandon Capital Pty Ltd 6.0% Website: www.bciminerals.com.au

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