Deutsche Rohstoff AG

Quarterly Report • Sep 26, 2022

EXECUTIVE BOARD

Jan-Philipp Weitz

SUPERVISORY BOARD

Dr. Thomas Gutschlag (Chairman) Martin Billhardt Dr. Werner Zöllner

DEUTSCHE ROHSTOFF GROUP AT A GLANCE (IN MILLION EUR)

Sales Revenue	72.2
EBITDA	64.0
Net profit	32.5
Operating Cash Flow	62.6
Liquidity	79.8
Debt to Equity ratio in%	36.9

COMMODITIES ARE THE FUTURE

HIGHLIGHTS FIRST HALF 2022 DEUTSCHE ROHSTOFF GROUP

The first half of 2022 was economically very pleasing for the Deutsche Rohstoff Group. We were able to increase our oil and gas production in the USA significantly, Cub Creek is preparing further wells in Wyoming and we entered into a very promising joint venture with Occidental Petroleum (Oxy), one of the largest oil and gas companies in the USA.

Consolidated net profit for the first half of the year amounted to EUR 32.5 million (previous year: EUR 17.5 million). We were thus once again able to exceed our best half-year operating result in the history of the company from the year 2021. Sales almost doubled, rising to EUR 72.2 million (previous year: EUR 38.8 million), while EBITDA increased to EUR 64.0 million (previous year: EUR 39.9 million). Our equity is also at a record high of EUR 124.7 million (Dec. 31, 2021: EUR 80.1 million).

The good results and the positive outlook for the coming years are of course partly the result of the high oil and gas prices, but they are above all an expression of the fact that with our US subsidiaries we have now achieved stable production that is diversified across several oil fields. This very comfortable position is the result of high investments, highly economic acquisitions and ongoing optimization in recent years.

However, this is not the end of the story; we will keep on developing the company. Our oil & gas business will continue to be the core of our business and development. With our acreage position in Wyoming, we are faced with an inventory of over 100 potential wells, a growth opportunity that far exceeds our position of the past. The strong returns from existing wells will allow us to make the necessary investments from cash flow.

In addition to the oil and gas business, our metals and mining business is also to remain in place. While it currently consists mainly of the investment in Almonty Industries with a book value of EUR 15.4 million and a portfolio of shares with a book value of EUR 10.0 million , we have been looking into strengthening our activities in the lithium sector for some time. In China, the USA and Europe, around 4 million passenger cars were recently sold every month, with the share of electrically powered vehicles, being now at 26%. In our view, the trend towards electromobility will continue and can offer attractive market opportunities for us as a resource company based in Germany.

In parallel with electromobility, however, the global fleet of internal combustion engines will continue to grow for many years, increasing by around 200 million vehicles by 2030. This shows that a coexistence of different types of new and old mobility is likely to develop. For us, this means an attractive constellation.

In general, our position offers many opportunities to implement the right strategy for times of sharply rising, but also times of falling commodity prices. Our guiding principle here is to increase the value of the company through economically valuable investments in production growth, but also acquisitions, new ventures and occasionally divestments. However, growth at any price is not our maxim; rather we want to grow with a healthy balance sheet and reinvest cash flows from the oil and gas business partly in the metals and mining business.

We would be pleased if you would continue to accompany us in our development in the years to come.

The company's result for 2022 is in line with our guidance of the increased price scenario from April 2022. Accordingly, we expect sales of between EUR 140 and 150 million and EBITDA of EUR 120 to 130 million for the full year. This guidance is based on an average oil price of USD 92 per barrel and an average gas price of USD 4.0 per MMBtu from April to December 2022. The guidance does not yet include the recent stronger-than-expected dollar exchange rate. In our planning, we expect a EUR/USD exchange rate of 1.12.

The very good results of the first half of the year also had a very positive impact on the balance sheet. Equity of EUR 124.7 million is EUR 44.6 million higher than equity at December 31, 2021, and the equity ratio at the end of the first half was 36.9 percent (December 31, 2021: 30.2 percent). This increase is attributable to the high consolidated net profit and the weak development of the euro, which caused equity differences from currency translation to increase by around EUR 11 million.

In the first half of 2022, our portfolio companies in the USA produced significantly higher volumes than a year earlier. Production from the important Knight wells was further increased towards the end of the first quarter following early completion work. For the full year, we continue to expect Group production of 9,300 to 10,000 BOEPD.

The four companies produced an average of 9,386 BOE per day in the first half of the year (previous year 7,801 BOE per day), for a total production of 1,689,532 BOE (previous year 1,412,019 BOE). Crude oil accounted for 930,658 barrels (previous year 660,682 barrels), with natural gas and condensates accounting for the remainder. All volumes correspond to the Group's net share.

In the first half of the year, our hedge book generated a loss of around EUR 26.8 million due to the high prices. For the second half of the year, the Group's hedge ratio is significantly lower and around 309,000 barrels of oil are still hedged at a minimum of USD 65.67/barrel. For natural gas, the companies have entered into hedges for a total of 1.7 million MMBtu at a minimum of USD 3.52/MMBtu. It is continuously evaluated whether further hedging transactions will be entered into.

Our investment Almonty Industries announced the first "drawdown" of the low-interest USD 75.1 million loan from KfW-IPEX Bank at the end of July. This is a significant milestone for the company, as nothing now stands in the way of developing the mine in Sangdong, South Korea. Almonty's share price has decli-

PRODUCTION FACILITIES IN WYOMING, USA

ned slightly compared to last year and has been consolidating around CAD 0.90 per share for some time. The tungsten price increased by around 7 percent between the beginning of the year and the end of June.

Current geopolitical developments underline the importance of Sangdong and Almonty Industries as a major independent source of tungsten in the Western world. Deutsche Rohstoff remains convinced of the metallurgical-geological quality of the Sangdong deposit and its economic potential.

WATER TANKS AT A CUB CREEK PAD

POSITIVE OUTLOOK FOR THE SECOND HALF OF THE YEAR

The further development of our share will of course depend to a large extent on the oil price. We share the view of many analysts that the oil price is fundamentally well supported. Tight supply and high global demand, which has only declined slightly in the past even in times of recession, are likely to be key price stabilizers. However, our strong financial position, as well as our clear development strategy, should also continue to support our share. Operational highlights of the second half of the year will certainly be the start of production of the first Oxy wells and the drilling activities of Cub Creek in Wyoming.

With best regards from Mannheim,

Jan-Philipp Weitz CEO

SHARE AND BONDS

Our share continued its positive performance in the first half of the year, with a price gain of almost 50% to EUR 29.40. The bond 2019/24 traded well above the 100% level with a one-week exception at the end of June, when the price briefly traded below par. The successful placement of the bond in February to a total volume of EUR 100 million underlines the confidence of the capital market in the financial strength of the Deutsche Rohstoff Group. In the first half of the year, the convertible bond investors had the opportunity to convert for the first time since the issue in 2018, given the strong performance of the Deutsche Rohstoff share price. Some of the investors made use of this right. A nominal EUR 0.9 million of bond volume was converted into 31,607 new shares by the end of July. After the conversions, the outstanding volume of the bond still amounts to EUR 9.8 million. The convertible bond price rose to 106% in the meantime and closed above 100% at the end of June.

CONSOLIDATED BALANCE SHEET (UNAUDITED)

ASSETS		30/06/2022	30/06/2021	31/12/2021
		EUR	EUR	EUR
A.	FIXED ASSETS
I.	Intangible assets
1.	Purchased franchises, industrial and similar rights and assets, and licenses in such rights and assets	31,744,317	19,380,498	28,569,435
2.	Goodwill	1,279,936	1,267,866	1,252,075
		33,024,253	20,648,364	29,821,510
II.	Property, plant and equipment
1.	Petroleum extraction equipment	151,320,566	99,532,305	143,612,198
2.	Exploration and evaluation	8,117,394	10,590,881	5,225,207
3.	Plant and machinery	100,912	124,444	111,402
4.	Other equipment, furniture and fixtures	106,764	166,605	107,480
5.	Prepayments and assets under construction	32,285,632	0	0
		191,931,268	110,414,235	149,056,287
III.	Financial assets
1.	Equity investments	17,829,285	17,488,347	14,551,553
2.	Loans to other investees and investors	5,224,903	4,712,026	4,781,640
3.	Securities classified as fixed assets	10,032,233	13,770,052	13,630,221
		33,086,421	35,970,425	32,963,414
B.	CURRENT ASSETS
I.	Inventories
	Finished goods and merchandise	174,500	185,720	174,500
		174,500	185,720	174,500
II.	Receivables and other assets
1.	Trade receivables	25,629,780	8,532,846	16,794,783
2.	Receivables from other investees and investors	1,267,247	267,895	1,103,287
3.	Other assets	2,350,297	7,407,492	8,529,081
		29,247,324	16,238,233	26,427,151
III.	Securities classified as current assets	10,016,664	15,704,923	10,791,863
IV.	Bank balances	36,048,311	25,557,858	12,699,856
C.	PREPAID EXPENSES	1,826,616	925,397	892,604
D.	DEFERRED TAX ASSETS	2,432,116	973,969	2,163,570
	TOTAL ASSETS	337,787,473	226,619,124	264,990,755

CONSOLIDATED BALANCE SHEET (UNAUDITED)

	EQUITY AND LIABILITIES		30/06/2022		30/06/2021		31/12/2021
			EUR		EUR		EUR
A.	EQUITY
I.	Subscribed Capital	5,113,354		5,081,747		5,081,747
	. / . less nominal value of treasury shares	-127,810	4,985,544	-127,810	4,953,937	-127,810	4,953,937
	Conditional capital EUR 2,200,000 (previous year: EUR 2,200,000)
II.	Capital reserves		30,853,002		30,019,333		29,999,609
III.	Retained income		0		0		0
IV.	Equity differences from currency translation		14,872,771		-1,895,856		3,469,855
V.	Consolidated net retained profit		63,947,327		26,027,824		34,299,480
VI.	Non-controlling interests		10,004,595		7,107,470		7,351,182
			124,663,229		66,212,708		80,074,063
B.	PROVISIONS
1.	Tax provisions		34,000		0		34,028
2.	Other provisions		30,030,620		12,841,333		18,808,319
			30,064,620		12,841,333		18,842,347
C.	LIABILITIES
1.	Bonds, thereof convertible EUR 9,815,000 (previous year: EUR 10,700,000)		109,815,000		114,419,000		97,761,000
2.	Liabilities to banks		24,471,648		6,142,713		19,630,556
3.	Trade payables		1,904,881		1,017,872		20,764,318
4.	Other liabilities		19,086,925		8,493,256		9,936,605
			155,278,454		130,072,841		148,092,479
D.	DEFERRED INCOME		216,919		0		0
E.	DEFFERED TAX LIABILITIES		27,564,251		17,492,242		17,981,866
	TOTAL EQUITY AND LIABILITIES		337,787,473		226,619,124		264,990,755

CONSOLIDATED INCOME STATEMENT (UNAUDITED)

		01/01/–30/06/2022	01/01/–30/06/2021	01/01/–31/12/2021
		EUR	EUR	EUR
1.	REVENUE	72,241,433	38,813,970	73,321,380
2.	INCREASE OR DECREASE IN FINISHED GOODS AND WORK IN PROCESS	0	0	-11,219
3.	OTHER OPERATING INCOME	9,424,411	13,886,369	22,974,000
4.	COST OF MATERIALS	11,122,591	8,306,548	18,106,479
	Cost of purchased services	11,122,591	8,306,548	18,106,479
5.	PERSONNEL EXPENSES	2,691,475	2,748,915	5,110,449
	a) Wages and salaries	2,511,701	2,629,805	4,862,934
	b) Social security, pensions and other benefit costs	179,744	119,110	247,515
	– thereof for retirement plans EUR 2,488 (prior year: EUR 2,495)
6.	OTHER OPERATING EXPENSES	3,843,677	1,729,401	7,008,829
	EBITDA	64,008,101	39,915,475	66,058,404
7.	AMORTIZATION, DEPRECIATION AND WRITE-DOWNS	20,995,417	16,582,023	30,311,477
	a) of intangible assets and property, plant and equipment	18,995,188	16,582,023	30,311,477
	b) of current assets	0	0	0
8.	AMORTIZATION OF FINANCIAL ASSETS AND SECURITIES CLASSIFIED AS CURRENT ASSETS	2,000,229	787,788	3,157,413
	EBIT	43,012,684	22,545,664	32,589,514
9.	OTHER INTEREST AND SIMILAR INCOME	771,470	586,363	743,356
10.	INTEREST AND SIMILAR EXPENSES	3,621,338	3,280,006	6,276,776
11.	INCOME TAXES	7,614,940	2,318,970	698,920
12.	EARNINGS AFTER TAXES	32,547,876	17,533,051	26,357,174
13.	OTHER TAXES	0	0	10
14.	NET LOSS/INCOME FOR THE GROUP FOR THE YEAR	32,547,876	17,533,051	26,357,165
15.	PROFIT (-)/LOSS(+) ATTRIBUTABLE TO NON-CONTROLLING INTERESTS	-2,900,029	-1,010,420	-1,562,878
16.	PROFIT CARRYFORWARD (+)	34,299,480	9,505,193	9,505,193
17.	CONSOLIDATED NET RETAINED PROFIT	63,947,327	26,027,824	34,299,480

CONSOLIDATED CASH FLOW STATEMENT

	IN EUR	01/01/–30/06/2022	01/01/–30/06/2021	2021
	NET INCOME FOR THE PERIOD
	(CONSOLIDATED NET INCOME / LOSS INCLUDING PROFIT SHARES ATTRIBUTABLE TO NON-CONTROLLING INTERESTS)	32,547,876	17,533,051	26,357,165
+/-	Write-downs/write-ups of fixed assets	18,995,187	16,582,031	32,805,392
+/-	Increase / decrease in provisions	19,928,242	5,272,598	-927,122
+/-	Other non-cash expenses/income	-147,676	-34,816	-815,798
-/+	Increase / decrease in inventories, trade receivables and other assets that cannot be allocated to investing or financing activities	-1,275,220	-5,210,401	-12,542,148
+/-	Increase / decrease in trade payables and other liabilities that cannot be allocated to investing or financing activities	-13,011,725	-1,255,967	19,449,043
-/+	Gains/losses from disposals of fixed assets	-5,834,957	-1,102,668	-736,312
-/+	Gains/losses from the disposal/valuation of short-term fincial assets	801,149		-18,092,902
+/-	Interest expenses/income	2,849,868	2,693,643	5,533,419
+/-	Income taxes paid /received	7,746,532	2,318,970	791,643
-/+	Income tax payments	0	0	0
	CASHFLOW FROM OPERATING ACTIVITIES	62,599,276	36,796,441	51,822,381
+	Cash received from disposals of intangible assets	0	1,632,670	1,632,670
-	Cash paid for investments in intangible assets	-1,926,128	0	-10,952,708
+	Proceeds from disposals of intangible assets	0	0	0
-	Cash paid for investments in property, plant and equipment	-56,919,765	-10,229,268	-41,875,773
+	Cash received from disposals of fixed financial assets	9,432,092	1,339,861	1,088,052
-	Cash paid for investments in fixed financial assets	-3,720,994	-549,517	-1,398,085
+	Cash received in connection with short-term financial management of cash investments	8,366,985	19,085,705	47,890,645
-	Cash paid in connection with short-term financial management of cash investments	-8,392,935	-19,837,310	-25,983,535
+	Interest received	470,834	177,244	252,989
	CASHFLOW FROM INVESTING ACTIVITIES	52,689,911	-8,380,570	-29,345,745
+	Proceeds from contributions to equity by shareholders of the parent company	0	0	0
+	Cash received from equity contributions by other shareholders	88,382	73,602	181,423
-	Cash from decrease in equity	0	0	-327,019
+	Cash received from the issue of bonds and from loans	14,747,919	0	19,005,567
-	Cash repayments of bonds and loans	0	-8,204,192	-31,728,682
-	Interest paid	-3,737,285	-3,016,216	-6,514,712
-	Dividends paid to shareholders of the parent company	0	0	0
-	Dividends paid to other shareholders	-420,007	-174,428	-327,847
	CASHFLOW FROM FINANCING ACTIVITIES	10,679,009	-11,321,234	-19,711,270
	Change in cash and cash equivalents	20,588,374	17,094,637	2,765,366
+ /-	Changes in cash and cash equivalents due to exchange rates and valuation	1,520,643	253,703	635,824
+	Cash and cash equivalents at the beginning of the period	11,610,709	8,209,518	8,209,518
	CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD	33,719,726	25,557,858	11,610,709

The following is an abridged management report which mainly deals with deviations from the 2021 consolidated financial statements. For a detailed presentation, please refer to the 2021 Annual Report and the extensive management report contained therein.

I. FUNDAMENTAL INFORMATION ABOUT THE GROUP

1. BUSINESS MODEL

There have been no changes to the business model described in the Annual Report 2021. As of June 30, 2022, the Deutsche Rohstoff Group consisted of the Group companies shown below.

Compared to the previous year, there were two changes in the amounts of shareholdings.

DRAG's share in Tin AG increased from 94.41% to 95.04 % and the shareholding in Bright Rock Energy LLC decreased from 98.86% to 98.49%.

The shares of Deutsche Rohstoff AG have been traded in the Entry Standard segment of the Frankfurt Stock Exchange since May 2010 and in the Scale segment since March 2017. The number of shares as of June 30, 2022 increased to 5,113,354 due to conversions from the convertible bond. The market capitalization as of June 30, 2022 was approximately EUR 150.3 million (June 30, 2021: EUR 87.6 million).

2. OBJECTIVES AND STRATEGIES

No changes.

STRUCTURE OF THE CORPORATION AS OF 30 JUNE 2022

98.49 % Denver

3. RESEARCH AND DEVELOPMENT

No changes.

II. REPORT ON BUSINESS & ECOMONIC POSITION

1. MACROECONOMIC AND INDUSTRY-SPECIFIC ENVIRONMENT

Oil prices continued to rise significantly in the first half of the year. At the beginning of the year, the U.S. WTI oil price traded at 75.99 USD/barrel; by the end of June, it had reached 107.76 USD/barrel, an increase of over 40 percent. The U.S. gas price Henry Hub also made a big jump from 3.74 USD/MMBtu to 6.54 USD/MMBtu. The reason for the sharp increase is strong and growing global demand for oil & gas following the Corona Lockdowns. This contrasts with a relatively weak supply side, which since 2014 has been characterized by structurally low investment due to low prices. At the same time, the war in Ukraine is ongoing and, in addition to suffering and destruction, makes it frighteningly clear how necessary a reliable and responsible energy supply from politically stable countries is. This situation on the oil market should lead to prices in the medium term that are significantly above the average of the last 8 years of 58 USD/barrel.

2. CORPORATE DEVELOPMENT

In the first half of 2022, average daily production was 9,386 BOE. The Group's oil and gas sales totaled 1,689,532 BOE in the first half of the year. Of this amount, crude oil accounted for 930,658 barrels, while natural gas and condensates accounted for the remainder. All volumes represent the Group's net share. Third-party shares have already been deducted. Production resulted in USD

	01/01/–30/06/2022	01/01/–30/06/2021
REVENUES (IN 1000 EUR)
OIL REVENUES	82,614	31,921
GAS AND NGL REVENUES	26,096	15,775
PRODUCTION TAX	-9,641	-5,004
PROFIT (+) / LOSS (-) FROM HEDGING	-26,834	-3,879
TOTAL REVENUE	72,235	38,812
TOTAL REVENUE IN 1000 USD	78,290	46,760
VOLUMES
OIL (BBL)	930,658	660,682
GAS AND NGLS1 (MCF)	4,553,248	4,508,019
BOE	1,689,532	1,412,019
BOEPD	9,386	7,801
OIL (IN USD/BBL)
AVERAGE WTI PRICE	101.54	62.21
REALIZED PRICE BEFORE HEDGES	96.26	58.21
PROFIT(+)/LOS(-) FROM HEDGES	-23.22	-5.90
REALIZED PRICE AFTER HEDGES	73.04	52.30
NATURAL GAS (IN USD/MMBTU)
AVERAGE HENRY HUB PRICE	6.07	3.21
REALIZED PRICE BEFORE HEDGES2	6.21	4.22
PROFIT(+)/LOS(-) FROM HEDGES3	-1.65	-0.17
REALIZED PRICE AFTER HEDGES	4.55	4.04
OPEX (USD/BOE)	7.16	7.03
DEPLETION (USD/BOE)	12.07	13.96

1 NGLs are converted into MCF with the industry standard of 6 into MCF

2 Includes NGL Credits

3 Derivatives are typically based on a local trading hub and not on HenryHub (e.g. CIG)

sales of USD 78.3 million in the first half, with USD -29.1 million resulting from hedge settlement.

The four companies accounted for the following quantities:

Cub Creek Energy: 1,256,389 BOE (645,741 barrels of oil) Elster Oil & Gas: 151,704 BOE (46,199 barrels of oil) Salt Creek Oil & Gas: 11,167 BOE (7,000 barrels of oil) Bright Rock Energy: 270,273 BOE (231,718 barrels of oil)

Cub Creek Energy produced about 645,741 barrels of oil in the first half of the year. Most of this came from the Knight well site. Production from the Olander well pad, the second most important in terms of volume, is progressing as expected. The high cash flow has enabled Cub Creek to repay in full its debt to Deutsche Rohstoff AG of approximately USD 35 million by the end of July 2022. The remaining bank loan is also expected to be repaid in the second half of the year.

With the successful completion of the Knight wells and thus the full development of the Colorado acreage, Cub Creek will gradually shift its future development focus to the Wyoming acreage acquired in 2021. The team is in an intensive planning phase to identify the best geological and economic options for additional drilling to add value to the Wyoming acreage through new drilling in the second half of the year. Basic work to obtain necessary permits and contracts with landowners has already been completed in the first half of the year. As of June 2022, Cub Creek is led by a new and well-known CEO to the Company, Timothy Sulser, who successfully led Salt Creek Oil & Gas as founder and CEO until the sale of the acreage in 2018. He has extensive experience as a petroleum engineer and in strategic leadership of oil and gas companies.

Elster Oil & Gas produced 257 barrels of oil per day in the first half of the year. Production is still stable and slightly above expectations.

Salt Creek Oil & Gas produced 39 barrels of oil per day in the first half of the year. The first six wells in the Powder River Basin/ Wyoming, USA, which are being developed in the partnership with Oxy agreed in February, have been completed. Further completion is on schedule. Oxy continues to expect production to commence in Q4. Capital expenditure on drilling will increase by around USD 10 million to approximately USD 75 million. A key driver of this is a very encouraging increase in Salt Creek's interest in the wells. At the same time, costs are slightly higher than originally planned due to an optimized design and general inflationary trends. The second well site is now being developed with 10 wells instead of 12. However, due to the low drilling density, Oxy expects a higher production per well.

At Bright Rock Energy, production in the first half of the year totaled around 1,287 barrels of oil per day. In the second half of the year, numerous new wells currently in the process of completion will begin production. The Buster well on Bright Rock's Wyoming acreage, which has been producing since late 2021, continues to show very encouraging production results. It continues to validate the potential of our acreage in Converse County, Wyoming, which we most recently expanded with the acquisition of 9,500 acres (38km²) announced in February. The Bright Rock team is currently evaluating further development of the Wyoming acreage, which is expected to commence next year.

The portfolio of shares in oil and gas companies and mining companies continued to perform positively in the first half of 2022. As of June 30, 2022, realized capital gains amounted to approximately EUR 6.2 million in 2022, and a total of EUR 21.6 million . was realized in 2020 and 2021. At June 30, 2022, there were also unrealized gains of EUR 0.5 million.

For further information on our activities, please refer to the Annual Report 2021 and the comments in this interim report.

3. FINANCIAL PERFORMANCE, FINANCIAL POSITION AND ASSETS AND LIABILITIES

FINANCIAL PERFORMANCE

In the first half of the year, the Group generated sales of EUR 72.2 million, which came from oil and gas production in the USA.

The individual subsidiaries accounted for the following sales:

Cub Creek Energy:	EUR 47.4 million
Elster Oil & Gas:	EUR 7.5 million
Salt Creek Oil & Gas:	EUR 0.9 million
Bright Rock Energy:	EUR 16.4 million

Other operating income of EUR 9.4 million includes EUR 7.1 million in income from the sale of shares in oil and gas and mining companies. At EUR 2.7 million, personnel expenses were on a par with the previous year.

Depreciation and amortization was higher than in the previous year at EUR 19.0 million (previous year: EUR 16.6 million) due to the higher volumes produced. In the first half of 2022, this relates exclusively to scheduled depreciation This corresponds to EUR 11.24 (previous year: EUR 11.74) per barrel of oil equivalent produced.

With EUR -2.8 million, the financial result corresponds to the level of the previous year (previous year:EUR -2.7 million). The financial result includes the item interest expenses ofEUR 3.6 million, of whichEUR 3.0 million is attributable to Deutsche Rohstoff AG and EUR 0.6 million to the US subsidiaries.

The tax result was EUR 7.6 million (previous year: EUR 2.3 million).

Earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to EUR 64.0 million in the first half of the year (previous year: EUR 39.9 million). After depreciation and amortization, earnings before interest and taxes (EBIT) amounted to EUR 43.0 million. (previous year: EUR 22.5 million). Earnings before taxes amounted to EUR 40.2 million (previous year: EUR 19.9 million).

Consolidated net income amounted to EUR 32.5 million in the first half of 2022 (previous year: EUR 17.5 million). Minority interests accounted for a profit of EUR 2.9 million.

FINANCIAL POSITION

Liquidity (Cash and cash equivalents, non-current and current securities and trade accounts receivable, less trade accounts payable) amounted to EUR 79.8 million as of June 30, 2022 (previous year: EUR 62.6 million). Compared to December 31, 2021 (EUR 33.1 million), this represents an increase of EUR 46.7 million.

ASSETS AND LIABILITIES

The consolidated balance sheet total of EUR 337.8 million increased by EUR 111.1 million compared with the previous year (EUR 226.7 million) and by EUR 72.8 million compared with December 31, 2021 (EUR 265.0 million)

On the assets side, the increase in total assets compared with December 31, 2021 is mainly due to the increase in property, plant and equipment by around EUR 42.9 million and the increase in bank balances by around EUR 23.3 million.

EUR 16.9 million compared to December 31, 2021 due to the placement of the bond and the short-term increase in US loan liabilities.

Due to the conversion of some bonds, the liability from the convertible bond has decreased by EUR 0.9 million. In the course of the third quarter, liabilities as a whole should decrease significantly further. Net debt has fallen to EUR 54.5 million. At the end of 2021, it had still amounted to EUR 84.2 million.

Equity increased from EUR 66.2 million as of June 30, 2021 to EUR 124.7 million. The equity ratio increased from 29.2% to 36.9%. For the opportunities and risks report, please refer to the Annual Report 2021.

OVERALL STATEMENT

In the opinion of the Executive Board, there has been no change to the overall statement in the Annual Report that the economic and financial situation of the Group is developing very encouragingly. The high level of oil & gas production, the start of production at the Knight well site and the high commodity prices are enabling solid growth. The Executive Board Jan-Philipp Weitz

The Group closed the first half of the year with earnings of EUR 32.5 million. The key performance indicators of sales and earnings before interest, taxes, depreciation and amortization (EBITDA) were both significantly higher than in the previous year. Sales rose to EUR 72.2 million and EBITDA to EUR 64.0 million. In the second half of the year, the Management Board expects the positive development of the first half to continue. The main prerequisite for this is that the positive development of the oil price continues.

III.FORECAST, OPPORTUNITIES AND RISK REPORT

For the full year 2022 and the year 2022, the forecast is not adjusted, but the Executive Board expects that the results in 2022 will be more in line with the forecast of the Increased Price Scenario".

Mannheim, August 10, 2022

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

1. GENERAL

The registered office of the parent company Deutsche Rohstoff AG is in Mannheim. The company is entered in the register of the Mannheim Local Court under number HRB 702881.

The half-year consolidated financial statements of Deutsche Rohstoff as of June 30, 2022 have been prepared in accordance with the accounting provisions of the German Commercial Code (HGB) (sections 290 et seq.). The half-year consolidated financial statements do not contain all the disclosures and notes required for the consolidated financial statements and should be read in conjunction with the consolidated financial statements as of December 31, 2021.

The consolidated income statement was prepared in the reporting period using the nature of expense method. The accounting policies applied in the preparation of the half-year consolidated financial statements correspond to those applied in the preparation of the consolidated financial statements for the fiscal year ended December 31, 2021. Please refer to the notes to the consolidated financial statements for the fiscal year January 1, 2021 to December 31, 2021, printed in the Annual Report 2021, page 40 ff. (hereinafter: Annual Report). The half-year consolidated financial statements are presented in euros (EUR). Unless otherwise stated, all figures have been rounded up or down to the nearest euro (EUR) using commercial rounding principles. Please note that differences may arise from the use of rounded amounts and percentages. These interim consolidated financial statements have not been audited.

2. BASIS OF CONSOLIDATION

compared to December 31, 2021.

3. CURRENCY TRANSLATION

Assets and liabilities denominated in foreign currencies were translated at the average spot exchange rate on the balance sheet date. Where the remaining term to maturity is more than one year, the realization principle and the historical cost principle have been applied. With the exception of equity, the asset and liability items in the financial statements prepared in foreign currencies have been translated into euros at the average spot exchange rate on the reporting date. Equity has been translated using historical exchange rates. Income statement items have been translated into euros using average exchange rates. The resulting translation difference is shown within consolidated equity under the item "Equity difference from currency translation".

4. NOTES TO THE CONSOLIDATED BALANCE SHEET

In the following, only those items are listed for which there are significant changes in the half-year from January 1 to June 30, 2022 compared with the previous year (December 31, 2021). Otherwise, reference is also made here to the explanations in the Annual Report.

4.1. FIXED ASSETS

Due to the acquisition of production rights from Bright Rock Energy in the Powder River Basin/Wyoming, the item Concessions, industrial property rights and similar rights and values as well as licenses increased by EUR 1.8 million compared to December 31, As of June 30, 2022, EUR 32.3 million is reported under Other equipment and assets under construction. This position includes payments due to the contract by Salt Creek Oil & Gas with the US oil and gas producer Occidental Petroleum for the participation in 18 wells in the Powder River Basin/Wyoming. Drilling commenced in the first quarter of 2022, with production expected to start in the fourth quarter.

Due to the sale of 383,759 Northern Oil & Gas shares, the item investment securities decreased by around EUR 3.6 million, so that Securities held as current assets still amount to EUR 10.0 million as of June 30, 2022.

4.2. CURRENT ASSETS

RECEIVABLES

The item Trade receivables increased by EUR 8.8 million compared to December 31, 2021 EUR 25.6 million. This mainly relates to outstanding payments received from the US companies Cub Creek Energy (EUR 19.3 million) and Bright Rock Energy (EUR 4.6 million) in connection with the sales generated in June.

Other assets decreased by around EUR 6.8 million due to the receipt of the US tax refund (USD 7.6 million).

BALANCES WITH BANKS

The item Bank balances increased from EUR 12.7 million as of December 31, 2021 to EUR 36.0 million as of June 30, 2021. The increase is mainly due to the ongoing business activities in the subsidiaries and the high operating cash flows.

The scope of consolidation has not changed as of June 30, 2022 2021.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

4.3. EQUITY

Compared to December 31, 2021, the share capital has increased by EUR 31,607.00 and the capital reserve by EUR 853,393.00. This is due to conversion declarations from the convertible bond 2018/23 and the associated share issue at EUR 28.00 per share.

As of the balance sheet date, the capital reserve in the Group is EUR 3.8 million higher than the capital reserve of the parent company.

The item "Equity differences from currency translation" mainly comprises the translation differences from the currency translation of the asset and liability items of the financial statements prepared in U.S. dollars as of the reporting date and the currency translation of the income statements prepared in U.S. dollars at the average exchange rate. Due to the sharp rise in the U.S. dollar exchange rate, this item has increased by EUR 11.4 million compared with December 31, 2021, so that it now amounts to EUR 14.9 million as of June 30, 2021.

4.4. LIABILITIES

The item "Bonds, non-convertible" includes liabilities from the issue of a corporate bond and a convertible bond totaling EUR 109.8 million.

The non-convertible bond was issued on December 6, 2019, and has a five-year term until December 6, 2024. It has a final maturity and bears interest at 5.25% p. a.. In February of this year, Deutsche Rohstoff AG was able to place a further EUR 12.9 million, increasing the outstanding volume from EUR 87.1 million as of December 31, 2021 to EUR 100.00 million as of June 30, 2022.

The item "Bonds, convertible" includes liabilities from the issuance of a convertible bond in March 2018. Due to conversion declarations totaling EUR 885,000.00, which are based on a conversion price of EUR 28.00 per share, the nominal amount of the convertible bond has been reduced from EUR 10.7 million as of December 31, 2021 to now EUR 9.8 million as of June 30, 2022. The convertible bond has a five-year term until March 29, 2023 and bears interest at 3.625%. The convertible bonds are initially convertible into 357,143 new or registered ordinary shares of Deutsche Rohstoff AG. The subscription rights of shareholders have been excluded.

Included in liabilities as of June 30, 2022 with a term of up to five years is a loan to banks in the amount of EUR 22.1 million relating to the company Cub Creek Energy. The loan is used to finance ongoing oil and gas drilling activities and was concluded with BOKF N.A.. Although the loan amount has increased by USD 2.0 million compared to December 31, 2021, the outstanding loan amount is expected to be fully repaid during the second half of the year.

The line of credit, which is recalculated every six months, amounts to USD 50 million at June 30, 2022. The interest rate is variable, with a weighted average interest rate of 4.5% at June 31, 2022. The loan has a maturity date of May 31, 2024.

Current account liabilities amount to EUR 2.3 million as of June 30, 2022.

Trade payables decreased by EUR 18.9 million to EUR 1.9 million compared to December 31, 2021.

The item "Other liabilities" amounts to EUR 19.1 million as of June 30, 2022 and mainly consists of liabilities of the companies Cub Creek Energy and Elster Oil & Gas from the license

obligations to landowners. The other liabilities are exclusively liabilities with a remaining term of up to one year.

4.5. CONTINGENT LIABILITIES AND OTHER FINANCI-AL OBLIGATIONS

There are contingent liabilities from guarantees in the amount of EUR 805 thousand in favor of an associated company.

5. NOTES TO THE CONSOLIDATED INCOME STATEMENT

In the following, only those items are listed for which there are significant changes in the half-year from January 1 to June 30, 2022 compared with the previous year (January 1 to June 30, 2021). Otherwise, reference is also made here to the explanations in the Annual Report.

5.1. REVENUES

Revenues primarily relate to producing wells in the Wattenberg Field in Colorado by Cub Creek Energy and Elster Oil & Gas, in the Powder River Basin in Wyoming by Cub Creek Energy and Bright Rock Energy, and interests in wells drilled by Bright Rock Energy and Salt Creek Oil & Gas in Utah and North Dakota. Revenue from oil wells is subject to production taxes, which are to be deducted directly from revenue in accordance with the requirements of Bil-RUG. In addition, expenses from hedging through derivatives in the amount of EUR 26.8 million were deducted from sales.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

5.2. OTHER OPERATING INCOME

This item mainly includes gains from the divestment of shares amounting to EUR 7.1 million and exchange rate gains of EUR 2.2 million, which arose at the level of Deutsche Rohstoff AG. The gains from the divestment of shares are offset by losses from the divestment of shares amounting to EUR 0.9 million, which are reported under other operating expenses. The exchange rate gains are related to the repayment of liabilities of the subsidiaries Cub Creek Energy and Deutsche Rohstoff USA.

5.3. COST OF MATERIAL

As of June 30, 2022, cost of purchased services of EUR 11.1 million (previous year: EUR 8.3 million) is reported, which relates to production costs incurred at producing oil wells in the USA. The cost of materials reflects a cost of EUR 6.58 per BOE.

5.4. AMORTIZATION AND DEPRECIATION

Depreciation of property, plant and equipment as of June 30, 2022, amounts to EUR 19.0 million (previous year: EUR 16.6 million) and relates to scheduled depreciation of oil production facilities, which are depreciated according to the quantities of barrels of oil equivalent produced.

The item Amortization of Financial Assets and Securities Classified as Current Assets amounting to EUR 2.0 million includes unrealized price losses on marketable securities as of June 30, 2022.

5.5. OTHER OPERATING EXPENSES

30, 2022 (previous year: EUR 1.7 million). The main items here are losses on the sale of securities amounting to EUR 0.9 million and additions to provisions amounting to EUR 0.5 million. The provisions are recognized for the obligation to plug wells at the oil production facilities in the USA.

1. OTHER NOTES

SUBSEQUENT EVENTS

No events after the reporting date.

Mannheim, August 10, 2022

Executive Board

Jan-Philipp Weitz

DISCLAIMER

FORWARD-LOOKING STATEMENTS

This report contains forward-looking statements that reflect the management's current views in respect of future developments. Such statements are subject to risks and uncertainties that are beyond the ability of Deutsche Rohstoff AG (DRAG) to control or estimate precisely. Such statements may include future market conditions and economic environment, the behaviour of other market participants, the successful acquisition or sale of group companies or interests and the actions of government bodies. Should any of the above stated risks or other risks and uncertainties occur, or should the assumptions underlying any of these statements prove incorrect, then the actual results may differ significantly from those expressed or implied by such statements. DRAG neither intends nor assumes any obligation to update any forward-looking statements to reflect events or developments that take place after the date of this report.

This English version of the Report is a translation of the original German version; in the event of any deviation, the German version of the Report shall take precedence over the English version.

This report was published on 10 August 2022.

CONTACT DETAILS / PUBLISHER

Deutsche Rohstoff AG Q7, 24 68161 Mannheim Germany

Telephone +49 621 490 817 0

info@rohstoff.de www.rohstoff.de

District Court: Mannheim HRB Number: 702881

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