MASTER DRILLING GROUP LIMITED — Earnings Release 2025

Mar 31, 2026

MASTER DRILLING GROUP LIMITED

Registration number: 2011/008265/06

Incorporated in the Republic of South Africa

JSE share code: MDI

ISIN: ZAE000171948 LEI: 37890095B2AFC611E529

("Master Drilling" or "Group" or "Company")

AUDITED ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025

SALIENT FEATURES FOR THE PERIOD

• USD Revenue increased by 7.8% to a record high USD292.0 million
• USD Headline earnings per share increased by 5.1% to 18.4 cents
• ZAR Headline earnings per share increased by 1,4% to 329,0 cents
• USD Earnings per share increased by 77.2% to 20.2 cents
• ZAR Earnings per share increased by 71,3% to 361,1 cents
• Stable order book of USD371.4 million
• Record pipeline of USD997.8 million
• Dividend decision deferred until there is more certainty on how the possible consequences of current global hostilities may unfold

REGULATORY REQUIREMENTS

The contents of the short form announcement are the responsibility of the Board of Directors of Master Drilling. Master Drilling posts information that is important to investors on the main page of its website at www.masterdrilling.com and under the "Investors" tab on the main page. The information is updated regularly, and investors should visit the website to obtain important information about Master Drilling. This short form announcement and the results contained in this short form announcement have been prepared in compliance with the JSE Limited's Listings Requirements.

The annual financial statements for Master Drilling Group Limited for the period ended 31 December 2025 have been audited by BDO South Africa Incorporated, the Company's independent external auditors, whose unmodified audit report is available on: www.masterdrilling.com and https://senspdf.jse.co.za/documents/2026/JSE/ISSE/MDI/FY2025.pdf

The annual financial statements have been prepared by the corporate reporting staff of Master Drilling, headed by Willem Ligthelm CA(SA), the Group's financial manager. This process was supervised by Andre Jean van Deventer CA(SA), the Group's chief financial officer.

Any investment decision by investors and/or shareholders should be based on consideration of the full announcement as available on www.masterdrilling.com. The full announcement is also available at the Company's registered office (for inspection, at no charge, during office hours on any business day).

Dividend

The Board concluded that, whilst the requirements for being able to pay a dividend are met, the significant global uncertainty caused by hostilities in various parts of the globe, including the recent outbreak of war between Iran and The United States of America, and by the resultant current and potential further responses of various countries to these situations, makes it advisable to defer a dividend decision until there is more certainty on how these situations and their possible consequences may unfold. The Board will consider declaring a dividend as soon as that becomes possible, which may be by way of a special dividend rather than a normally scheduled dividend.

A gross dividend of 65,0 cents per share in ZAR terms relating to the 2024 financial year was declared and paid during June 2025. Any dividend unclaimed after a period of three years from the date on which the same has been declared to be payable shall be forfeited and revert to the Company.

There are no arrangements under which future dividends are waived or agreed to be waived.

Changes to the Board

---

There were changes to the Board since the previous reporting period. BJ Jordaan resigned effective 1 May 2026. FG Dixon will also cease to act as alternate director to BJ Jordaan effective 1 May 2026.

COMMENTARY

Master Drilling is pleased to report a resilient year in 2025, achieving a record high of USD 292.0 million in revenue, a 7.8% increase over the prior period, despite ongoing global economic uncertainty.

While profitability faced some pressure attributable primarily to specific operational challenges, the Group maintained satisfactory cash generation and suitable balance sheet discipline.

About Master Drilling

Master Drilling was established in 1986 and listed on the Johannesburg Stock Exchange Limited (JSE) in 2012. The Group delivers innovative drilling technologies and mining solutions. Master Drilling has built trusted partner relationships with blue-chip and mid-tier clients in the mining, hydro-electric energy, civil engineering, as well as construction sectors worldwide. The Company is exposed to various key commodities that ensure its sustainability. The Master Drilling business model of providing drilling solutions and mining services to clients through tailor-made designs, coupled with a flexible support and logistics chain, makes it the preferred partner throughout the life cycle of projects.

Commenting on the results for the year ended 31 December 2025, Danie Pretorius, Chief Executive Officer of Master Drilling, said:

"Master Drilling is pleased to report a resilient year in 2025, achieving a record high of USD 292.0 million in revenue, reflecting an 7.8% increase. This accomplishment comes against a backdrop of global market and economic uncertainty.

While profitability faced some pressure, we are grateful for the continued support of our valued clients and business partners. Our commitment to capital discipline continues to deliver positive returns.

Master Drilling remains dedicated to technological advancements. We are proud to witness our new drilling and cutting technologies maturing and impacting the mining industry. We are steadfast in our vision of "making a difference" by enhancing safety, productivity, and cost-effectiveness in the sector.

Beyond our core technologies, we have strategically invested in asset-light digital ventures. These initiatives encompass proximity detection solutions and integrated data and resource management systems specifically designed for mining operations. These ventures have not only contributed to our financial performance but have also opened doors to exciting new opportunities for the Group, ensuring continued relevance and solidifying our position as a leading innovator.

Master Drilling has capitalised on its established client and partner relationships, along with our global presence, to achieve business growth. We recognise the value of fostering strong relationships, which has empowered us to deliver a wider range of turnkey solutions to our clients. This approach has transformed Master Drilling into a more comprehensive contractor.

The Company remains optimistic about the future. However, we will continue to prioritise responsible practices with a focus on capital allocation, cost control and operational excellence."

Financial Overview

Revenue increased 7.8% to USD292.0 million and operating profit increased by 57.2% to USD46.5 million.

USD earnings per share (EPS) increased 77.2% to 20.2 cents, and ZAR EPS increased 71.3% to 361.1 cents. USD headline earnings per share (HEPS) increased 5.1% to 18.4 cents, and ZAR HEPS increased 1.4% to 329.0 cents. The higher % increase in EPS, compared to the % increase in HEPS, is primarily due to the Group partially reversing the previously recognised impairment loss in respect of the mobile tunnel boring machine, following finalisation of a

---

contract to commence operations with this machine. Based on this contract's projected cash flow, the recoverable amount has been estimated at USD4.6 million, resulting in the reversal not increasing the asset's carrying amount above the amount that would have been determined had no impairment loss been recognised previously.

Net cash generated from operations amounted to USD17.9 million. Cash resources continue to be managed carefully to cater for emerging opportunities that require specific design, planning and investment.

Master Drilling's total capital spend of USD20.6 million was applied as follows: 66% on expansion and 34% on sustaining the existing fleet.

Debt increased from USD48.0 million to USD60.4 million and the gearing ratio, including cash, increased from 6.3% to 9.1% in the 2025 fiscal year. The increase in debt is due to the Group's banking facilities that were renewed during December 2025.

Operational Overview

Globally, Master Drilling's operations experienced a profitable year, demonstrating the benefits of significant capex investment over the past years.

Safety and response to risk

The Group has an extensive risk management program, and this is made visible through a collaborative platform. Progress on the implementation of mitigation measures is tracked, and significant business risk is escalated to the executive team and Board.

South America

The current year marked a period of significant operational expansion and technological milestones. Regional growth is headlined by the commencement of a landmark paste fill project and the introduction of advanced directional steering and low-profile drilling units. Strategic partnerships have strengthened our competitive positioning for new contracts and large-scale expansions.

While certain territories are navigating recovery from previous safety-related delays and working to resolve outstanding accounts, the broader portfolio remains robust. Diversification into shotcrete services and high-capacity drilling solutions has driven record revenue, exceeding previous years. With a high volume of tenders currently under adjudication and new projects scheduled for 2026 and beyond, the Group is well-positioned to achieve its revised growth targets and further solidify its technical leadership in the sector.

Central and North America

2025 reflected a period of stable performance characterised by strengthened operational discipline, maturing safety culture, and strategic commercial positioning. Despite facing currency volatility and revenue fluctuations at the start of the year, the business achieved a broadly neutral operational result by the end of the period. This stability was supported by a cautious forecasting approach and a robust order book comprised of high-confidence commitments. Safety remained a primary focus, with the implementation of structured corrective-action tracking and behavioural-safety programs effectively addressing equipment-related incidents and enhancing site-wide risk management.

Africa

Africa has been a stronghold for the Group in the past couple of years and the current year was no exception. The Group continues to see Africa as a key market for growth and is actively looking for new business opportunities. The region continues to experience good performances. While some projects face temporary delays and financial challenges, others demonstrate robust growth and new contract acquisitions. Africa is positioned for significant expansion, driven by successful project execution and strategic growth initiatives. Operational efficiencies are being realised through localised agreements and streamlined manufacturing processes. Overall, the African region presents both opportunities and challenges, requiring adaptable strategies to navigate market fluctuations and capitalise on growth prospects.

---

South Africa

Our business in this region achieved exceptional financial growth in 2025, significantly surpassing projected revenue targets and demonstrating a strong upward trajectory anticipated to continue into 2026. This success was achieved while maintaining a consistent zero-harm safety record, highlighting a steadfast commitment to safe operational practices. Notably, the region expanded its service portfolio, successfully implementing new piling services. Operational performance remains robust, particularly within major mining projects where stabilised production has garnered formal commendation for our onsite teams. This excellence has led to the potential deployment of two additional blindhole machines, though we maintain a vigilant watch on global commodity price fluctuations and their subsequent impact on future prospects. Furthermore, our portfolio continues to expand with the commissioning of a high-profile paste hole project. Additionally, the secured expansion of underground drilling and slot boring scopes further solidifies our long-term partnership pipeline.

Operational and engineering performance served as strong pillars, driven by the advancement of automation programs, drive-system upgrades, and the successful deployment of remote-drilling technologies. Efforts to resolve machine-availability challenges and recover delay-related costs progressed alongside significant improvements in cost and logistics management. Furthermore, the region continued to build long-term capability through the completion of performance-evaluation cycles. Overall, these systemic improvements and refined growth strategies have established a solid foundation for sustainable competitiveness and future expansion.

Rest of the World

Operational efficiency remains high, with current drilling projects tracking ahead of current planned schedules while maintaining lost time injury-free days in key segments. To further optimise output, management is aggressively converting downtime into production through remote drilling initiatives, which have already delivered measurable time savings.

The commercial pipeline is robust, highlighted by a new partnership for a hydro project and the submission of a high-value tender for exploration.

Diversification remains a priority, with active forays into civil engineering and infrastructure in this region. As market demand for gold, copper and critical minerals intensifies, the Group is pushing hard on its strategy of quality and reliability, ensuring a strong competitive advantage for the significant project load scheduled for 2026 and beyond.

Exploration drilling

Current drilling operations remain fundamentally stable across the portfolio, characterised by steady production and strategic fleet mobilisation. Key highlights include the successful commencement of large-scale uranium projects and the completion of initial micro-fracking phases, which have transitioned into secondary stages involving advanced hydraulic stress relief. While several core contracts have been extended through early 2026, the group is actively navigating a shifting landscape following internal restructuring at certain partner organisations. These changes have necessitated formal dialogues to clarify future scopes and ensure the economic viability of service agreements, particularly where exploration budgets have been tightened.

On the technical front, the group continues to enhance its underground and deep-hole capabilities, with additional machinery being deployed as site infrastructure permits. Innovation remains a focal point, evidenced by the successful commissioning of robotic surface drilling technology. Although some software refinements are currently underway to finalise production-ready versions, these advancements underscore a commitment to driving efficiency. Despite some localised operational challenges and a more conservative appetite for exploration spend in specific segments, the group remains focused on securing long-term agreements and optimising overhead structures to maintain sustainable delivery.

Other mining services

---

Despite a period of limited large-scale project availability, the Group demonstrated resilience through strong organic growth in core operations. A significant milestone included the successful acquisition of a major safety system tender following recent regulatory shifts. The Group remains strategically positioned to capitalise on newly legislated safety requirements, leveraging extensive technical expertise and previous successful deployments. Innovation remains a primary driver of value, evidenced by strategic collaborations in underground connectivity solutions that optimise infrastructure costs. Furthermore, the development of proprietary safety hardware, specifically designed for challenging environments, reinforces the Group's commitment to operational safety and long-term shareholder value.

Technology

Our strategic technology portfolio is advancing steadily, focused on diversifying group interests and establishing a distinct competitive advantage through sustainable, high-impact solutions. These initiatives offer step-change advancements in safety, accelerated orebody access, and optimised mineral recovery. In the tunnelling sector, initial operational challenges and resource constraints have impacted early production rates; however, comprehensive mitigation strategies are underway to align performance with long-term projections. Furthermore, we are refining our service proposals for upcoming large-scale waste development projects and exploring potential joint ventures to solidify our operational footprint.

In shaft boring, the next phase of development has transitioned into the manufacturing stage, with completion targeted for late 2026. Simultaneously, our proprietary reef boring system remains on schedule, with field trial commissioning and the development of second-generation components planned throughout the current year. These technical advancements are overseen by a formal sub-committee, ensuring rigorous governance and direct reporting.

Operational equipment

The fleet consists of 151 raise bore, 46 slim drilling and 1 mobile tunnel boring rig. The total raise boring fleet utilisation rate was 70% while the exploration drilling fleet utilisation was 53%. The rate of new rigs coming on board will settle with a focus on larger units, which typically generate better utilisation and higher income.

Our people

We are dedicated to cultivating a highly motivated and engaged workforce, a commitment that serves as the foundation of our competitive advantage and the primary driver of long-term value for our stakeholders. Our strategy focuses on the acquisition, development, and retention of premier talent by maintaining a secure, inclusive, and professional environment.

We recognise that our strength lies in the diverse perspectives of our personnel. By fostering a culture of collaboration and mutual respect, we leverage these unique contributions to achieve superior organisational results.

Our dedication to maintaining a high-performance culture remains steadfast. We are committed to the continuous refinement of our internal practices to ensure that every professional within our organisation is and feels valued, empowered, and strategically equipped to reach their full potential.

Outlook and prospects

Despite prevailing global economic uncertainties, Master Drilling maintains a steadfast outlook on its performance capabilities. This resilience is underpinned by a robust foundation of long-term contracts and a deliberate strategy of geographical and operational diversification. By maintaining a presence across various regions, commodities, and currencies, the Group effectively mitigates systemic risks and remains well-positioned to navigate an increasingly complex global landscape. This strategic breadth, combined with a client-centric service orientation, ensures that our operations remain aligned with the evolving needs of our partners.

---

Our current operational focus remains centred on maximising efficiency through proactive capital management and disciplined resource allocation. We are actively working to optimise fleet utilisation, targeting a benchmark of 75% to ensure the highest levels of productivity. Prudent financial stewardship continues to guide our decision-making processes, reinforcing our commitment to sustainable growth. Our established diversification strategy has consistently proven its value and remains a central pillar of our long-term expansion plans.

Looking toward the future, Master Drilling continues to prioritise safety and technological advancement as core competitive advantages. We are strong advocates for the deployment of advanced, mechanised equipment, which aligns with the industry-wide shift toward automation and remote operations. This commitment to innovation ensures our relevance in a rapidly changing market. Furthermore, we are exploring opportunities to expand beyond traditional drilling, with a particular interest in the potential applications of Artificial Intelligence to enhance our service delivery.

Finally, the success of our organisation is intrinsically linked to our investment in human capital and our commitment to corporate responsibility. We strive to attract and retain top-tier talent by fostering a high-performance work environment and implementing best practices in personnel management. Concurrently, we remain dedicated to our Environmental, Social, and Governance (ESG) initiatives. We believe that integrating these principles into our core strategy not only aligns with our corporate values but also ensures the long-term sustainability of the company while contributing to broader industry goals.

The Group enters 2026 with a solid order book, a record pipeline, and a disciplined capital allocation strategy, positioning it well for sustainable long-term growth and shareholder value creation. The pipeline as of 31 December 2025 totaled USD997.8 million, while the committed order book stood at USD371.4 million for 2026 and beyond. In the short to medium term, the sales pipeline is expected to stabilise and increase with joint ventures supporting performance.

NATURE OF BUSINESS

Master Drilling Group Limited is an investment holding company, whose subsidiary companies provide specialised drilling and mining services and provide solutions that enforce business rules, optimise output, safe-guard miners, protect/manage assets and locate missing persons, to blue chip major and mid-tier companies in the mining, civil engineering, construction, and hydro-electric power sectors, across a number of commodities and geographies.

For and on behalf of the Board

DC Pretorius
Chief Executive Officer

AJ van Deventer
Chief Financial Officer

Sponsor
Investec Bank Limited

REGISTERED AND CORPORATE OFFICE
4 Bosman Street
PO Box 902
Fochville, 2515
South Africa

31 March 2026