Green Minerals — Interim / Quarterly Report 2021

Jul 23, 2021

Q2 2021 REPORT

Highlights for the quarter

• Granted development support from Forskningsrådet for three separate projects related to development of the company's exploration and production methodology. The total support amounts to NOK 16.5 million.
• Agreement involving the Project ULTRA signed with National Oceanography Centre and University of Southampton.
• Ståle Monstad named as Chief Geoscientist & Head of Exploration

Operational review

Green Minerals had a busy 2nd quarter, closing several funding initiatives, key hires and agreements, of which the most important were:

On April 3rd the Company announced a NOK 1,9 million grant from Forskningsrådet through Skattefunn. The risk-reduction support was provided against further development of the Companys proprietary DeepMineX© software key to the decision gates in deep sea exploration and mining.

On April 14th the Company announced it had signed an agreement with National Oceanography Centre and University of Southampton regarding the Project ULTRA. The project will produce new knowledge of the formation and the evolution of SMS deposits which will be paramount for the Company's exploration strategy and subsequent production activities. Project ULTRA will include 2 research cruises on SMS areas located in international licenses Through the Project ULTRA, the Company will collaborate with internationally leading scientists and support the education of the future professionals required for the marine minerals industry. Further, the Company will engage in two research cruises on SMS areas located in international licenses, of which the first as early as fall 2021.

On April 23rd The Company announced that Ståle Monstad had agreed to take up a position as Chief Geoscientist & Head of Exploration with the Company. Mr Monstad has more than 25 years of experience within exploration and geological management. He started his professional career in the exploration department of Norsk Hydro, gaining extensive experience in concession application work on the NCS. Ståle Monstad joins Green Minerals from the position of Chief Geologist Aker BP/Senior Vice President Exploration Aker Energy.

On April 27th the Company announced that Forskningsrådet had granted development support of NOK 3,6m to the Company through Skattefunn. The support was provided towards development of the Company's exploration methodology incl prospectivity modelling and technology mapping, selection and development.

On May 3rd the Company announced that Forskningsrådet had granted development support of NOK 11,048m to the Company towards development of the Company's offshore mineral production methodology and the development of a mineral processing flowsheet.

Q2 2021 REPORT

The market backdrop for the Companys main products continued to improve during the quarter. Copper prices improved another 7pc during the quarter, ending at USD 9,400 per tonne, which is about 4pc higher than basis used for the Companys profitability calculations. Nickel prices improved about 13pc while cobalt maintained its historically high USD 50,000 per tonne price. Considering peak supply situations emerging in several of the key battery metals markets over the next 3-5 years, the Company maintains a positive outlook for its key products.

Financial review

The company did not have any revenues in the quarter. Total operating expenses was NOK 2.6 million, up from NOK 1.7 million in the previous quarter. The operating expenses are mainly related research and development projects. As of 30 June 2021 the company had NOK 23.7 million of cash. The equity ratio at the end of the quarter was 98.6%.

Outlook

We are truly excited about the journey we have set out on. Inviting more investors in and capitalizing the Company early has proven to be the right strategy for the Company as it provides us with the resources necessary to hire the best talent in the industry, partner up with the preferred suppliers at an early stage and work with academia to enhance our knowledge and innovate on the technologies already available.

Green Minerals AS is in a good position to capitalize on the strong market developments for key battery metals as the green energy transition gathers pace. The Company has chosen the Norwegian Continental Shelf as the most attractive area to kickstart marine minerals exploration and production in. Norwegian authorities multi-decade history of successful management of natural resources offshore Norway is one of the main reasons for that, in combination with the large estimated resource potential. The Company expects the environmental standards for activity in the area to be among the very highest in the world, which is something we support and strive for in all our work during the opening process.

Green Minerals will continue to form partnerships with companies, industry groups, investors, authorities and academia to enable us to work together in the best way possible to provide for a responsible and successful opening for exploration and production of marine minerals in Norway.

Asker 22.07.2021

Board of Directors

Ståle Rodahl Hans Christian Anderson Øivind Dahl-Stamnes

___________________ ________________________ _____________________

Profit and loss statement

Interim statement of income

All figures in NOK 000's (except EPS)	Q2 2021	Q1 2021	YTD 2021	2020
		(Unaudited) (Unaudited) (Unaudited)		(Audited)
Revenues	-	-	-	-
Personnel expenses	-174	-345	-519	-114
Other expenses	-1 877	-1 307	-3 184	-487
EBITDA*	-2 051	-1 652	-3 703	-601
Depreciation and amortization Operating profit (loss) / EBIT	- -2 051	- -1 652	- -3 703	- -601
Net financials	- 7	1	- 5	-
Profit/(loss) before income tax	-2 057	-1 651	-3 708	-601
Income tax	-	-	-	-
Profit/(loss)	-2 057	-1 651	-3 708	-601
Earnings per share
Basic	-0,16	-0,13	-0,29	-0,05
*Operating profit before depreciation, impairment and gains (losses) on property, plant and equipment

Balance Sheet

Consolidated interim statement of financial position

All figures in NOK 000's	30 June 2021	31 March 2021	31 December 2020
	(Unaudited)	(Unaudited)	(Audited)
ASSETS
Non current assets
Research & dev elopment	537	-	-
	537	-	-
Current assets
Other current assets	485	-	-
Cash and cash equiv alents	23 708	27 791	29 068
	24 193	27 791	29 068
Total assets	24 730	27 791	29 068
EQUITY
Capital and reserv es attributable to
equity holders of the Company
Paid in Capital	28 702	28 702	29 601
Retained earnings	-4 309	-2 252	-601
	24 393	26 450	29 000
EQ ratio	99 %	95 %	100 %
LIABILITIES
Current liabilities
Trade payables	337	1 341	68
	337	1 341	68
Total liabilities	337	1 341	68
Total equity and liabilities	24 730	27 791	29 068

Selected notes and disclosures

Note 1: General information and basis for preparation

Green Minerals AS is a public limited liability company, incorporated and domiciled in Norway. The company's registered address is Hagaløkkveien 26, 1383 Asker, Norway. The quarterly accounts have been prepared in conformity with the Accounting Act and NRS 8 - Good accounting practice for small companies.

Note 2: Related parties transactions

The company has a management service agreement with Seabird Exploration Norway AS, a subsidiary of the largest shareholder SeaBird Exploration Plc. USD 42 500 was booked under the agreement in 1H 2021. The Company has entered into an advisory agreement with Storfjell AS, a company controlled by Ståle Rodahl (Chairman of the Board of both the Company and SeaBird), where Storfjell AS is to assist the Company on business development and financial matters. NOK 1.1 million was booked under the agreement in 1H 2021.

Note 3: Share capital and share base payments

The total number of ordinary shares at 30 June 2021 was 12 886 400 with a par value of NOK 0.003.

The company has granted warrants to key personnel. As of 30.06.2021 there are 700,000 outstanding warrants with a weighted average strike of NOK 18.29 per share.

Note 4: Capitalization of Research and development expenses

Research and development expenses of NOK 537 440 related to exploration and production methodology projects for which the Company has been granted support from Forskningsrådet has been capitalized in Q2 2021.

Note 4: Shareholders

Ownership structure

Shareholders in % at 30 June 2021:

Name	Number of shares	Ownership
SEABIRD EXPLORATION PLC	7 151 128	55,5 %
ANDERSON INVEST AS	542 217	4,2 %
ARTEL AS	454 500	3,5 %
MØSBU AS	405 241	3,1 %
DnB NOR Bank ASA	220 815	1,7 %
IKM INDUSTRI-INVEST AS	213 978	1,7 %
SILVERCOIN INDUSTRIES AS	183 939	1,4 %
IFG HOLDING AS	181 800	1,4 %
STORFJELL AS	158 400	1,2 %
JARLE NORMAN-HANSEN	136 300	1,1 %
NORDNET LIVSFORSIKRING AS	120 567	0,9 %
MIEL HOLDING AS	115 572	0,9 %
JALE NORDHAUG	109 000	0,8 %
GRUNNFJELLET AS	106 705	0,8 %
GTBA FORVALTNING AS	90 900	0,7 %
SVEIN TORE MOE	77 161	0,6 %
ALICERCE FORVALTNING AS	74 208	0,6 %
EUROPA LINK AS	73 347	0,6 %
HUSVIK HOLDING AS	68 100	0,5 %
TELINET ENERGI AS	60 419	0,5 %
Other	2 342 103	18,2 %
Total	12 886 400	100,0 %

Q2 2021 REPORT

Green Minerals AS - org.no. 925 852 481 Hagaløkkveien 26, 1383 Asker, Norway www.greenminerals.no