GWR GROUP LIMITED — Capital/Financing Update 2021

Jul 26, 2021

27 July 2021

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ASX Announcement

Haulage Record Set & Stage 2 Pit Ore Crushing Commenced

• Record haulage rates are on-track to be set in July, with a forecast of 120,000 tonnes for the full month, including a daily record of 4,805 tonnes of ore.

• Improving upon these haulage rates remains a strong focus for GWR, we expect another 12 trucks to join the fleet shortly and the revised daily target is a consistent 5,000 tonnes per day (up from the previous 4,000 tonnes per day)

• Cargo ship the MV QC Matilde with 59,116 wet metric tonnes (wmt) of iron ore, successfully departed Geraldton Port on 22[nd] July 2021 a second vessel for July, the MV Wen De is due to begin loading around 30[th] July.

• GWR confirms that it has secured its first ship for the month of August, MV New Honor which is due to commence loading at the Port of Geraldton between 11[th] and 16[th] August 2021.

• Production continues as planned with first ore being crushed from the highgrade southern end of the Stage 2 pit.

• GWR remains on track to export 1,000,000 tonnes by December 2021 and expects to ship at least twice per month (total ~110,000 tonnes) with a target of 5 shipments every 2 months (total ~275,000 tonnes).

• GWR continues to advance formalisation of its binding but conditional minegate sale Term Sheet with ASX listed Macarthur Minerals Ltd (ASX:MIO) of up to 400,000 tonnes per annum (for an initial 2 year period) of DSO lump and fines products from its flagship C4 Iron Ore deposit.

Figure 1: ROM stockpiles

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GWR Group Limited (ASX:GWR) (“ GWR ” or “ the Company ”) is pleased to update shareholders regarding its flagship C4 Iron Ore deposit production activities that continue to improve and set new haulage and operational records.

Having previously set a haulage target of 4,000 tonnes per day of ore, GWR is on target to achieve/beat this target in July, with a haulage forecast of 120,000 tonnes transported to Geraldton for the full month including a daily record recently achieved of 4,805 tonnes of ore.

Improving upon these haulage rates remains a strong focus for GWR and we expect another 12 trucks to join the fleet shortly, following this the revised daily target will be a consistent 5,000 tonnes per day within the next few months.

Shipping of product to our offtake partner Hong Kong Trader, Pacific Minerals continues to meet our schedule with Cargo ship the MV QC Matilde successfully departing the Port of Geraldton on 22nd July 2021 with 59,116 wet metric tonnes (wmt) of iron ore, and a second vessel for July, the MV Wen De due to begin loading around 30[th] July 2021.

The first vessel for August MV New Honor has been booked and is due to commence loading at the Port of Geraldton between 11[th] and 16[th] August 2021.

Operationally the company continues to move forward as planned, having achieved the first blast of the Stage 2 pit in late June (Refer ASX announcement 24 June 2021), the first Stage 2 pit ore has now been crushed, with the initial focus on the southern end that consists of very high-grade ore.

The company continues to work with ASX listed Macarthur Minerals Ltd (ASX:MIO) to advance towards a formalisation of its binding but conditional mine-gate sale Term Sheet of up to 400,000 tonnes per annum (for an initial 2 year period) of DSO lump and fines products from its flagship C4 Iron Ore deposit.

The deal with Macarthur will not affect the current Stage 1 and Stage 2 mine plans, with haulage rates continuing to improve, GWR remains on track to export 1,000,000 tonnes by December 2021, exclusive of this mine-gate agreement.

GWR Chairman Mr Gary Lyons commented

“I am very pleased to provide shareholders with this operational update that saw GWR and its Alliance Partner, PRG, set a new daily haulage record of 4,805 tonnes of ore transported to the Port of Geraldton.

GWR will continue to focus on ramping up its haulage rates and expects to add a further 12 trucks to its fleet working the C4 deposit with the aim of targeting haulage of consistently 5,000 tonnes per day to the Port of Geraldton in the coming months.

It is also very pleasing to see the first ore crushed from the southern end of the Stage Pit which consists of a very high grade premium product.”

This ASX announcement was authorised for release by Gary Lyons, Chairman of GWR Group Limited

For further information please contact:

Gary Lyons David Utting Mark Pitts Chairman David Utting Corporate Company Secretary Ph: +61 416187462 E: garylyons@heiniger.com.au E: david@davidutting.com E: markp@endeavourcorp.com.au

Competent Person’s Statement

Wiluna West Iron Ore Mineral Resources

The information in this report which relates to Exploration Targets, Exploration Results and Mineral Resources or Ore Reserves is based on information compiled by Mr Allen Maynard, who is a Member of the Australian Institute of Geosciences (“AIG”) a Member of the Australasian Institute of Mining and Metallurgy (AusIMM) and independent consultant to the Company. Mr Maynard is the Director and principal geologist of Al Maynard & Associates Pty Ltd and has over 40 continuous years of exploration and mining experience in a variety of mineral deposit styles. Mr Maynard has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for reporting of Exploration Results, Exploration Targets, Mineral Resources and Ore Reserves” (JORC Code). Mr Maynard consents to inclusion in the report of the matters based on this information in the form and context in which it appears.

The Mineral Resource Estimate was prepared and first disclosed under the JORC Code 2004. It has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported.

Table 1. Wiluna West Iron Ore Project Mineral Resources by Deposit

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Note: Differences may occur due to rounding. Refer ASX Announcements 12[th] November 2019, 8[th] July 2011 and 11 April 2013.