MINBOS RESOURCES LIMITED — Capital/Financing Update 2020

Dec 10, 2020

11 DECEMBER 2020 ASX ANNOUNCEMENT

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MOU TO DEVELOP FERTILIZER MARKET IN ANGOLA Agreement with the International Fertilizer Development Centre, global leader in developing and delivering African fertilizer projects

Minbos Resources Limited (ASX:MNB) and the International Fertlizer Development Centre (IFDC) have executed a Memorandum of Understanding (MOU) to develop and grow the Small Holder Farmer market in Angola.

KEY POINTS

• The IFDC is an international not-for-profit organisation, dedicated to scientific innovations that increase global food production, protect the environment and empowers Small Holder Farmers.

• Across Africa, the IFDC runs country-scale agricultural projects, introducing farmers to improved agricultural practices, fertilizer technologies and facilitation of market access.

• MOU provides the platform to develop a joint proposal for a multi-year project designed to support the development of the local fertilizer market in Angola.

• Angola remains one of the worlds great untapped agricutural regions, with +35 million hectares of arable land, high rainfall and some of lowest rates of fertilizer use globally.

• MOU to leverage the IFDC’s innovative research, market expertise and strategic partners to identify sustainable solutions for soil and plant nutrition for the benefit of Small Holder Farmers, local communities and the environment.

• IFDC to work with national and private parties to create or expand Small Holder fertilizer demand in select parts of Angola. Productivity gains are expected to yield marketable crop surpluses, encouraging further farmer investment in fertilizers.

• The IFDC recently completed an agricultural productivity program in Burundi, which saw fertilizer usage grow from 10,000tpa to nearly 50,000tpa. The program increased agricultural productivity and raised income for 865,666 farming households[1] .

• Minbos production expected to underpin the fertilizer input component of the IFDC Angola Project, reaching more than 4 million Small Holder Farmers[2] .

• The Cabinda Phosphate Project will commence production at 50,000tpa[3] . Given the large Small Holder Farmer market in Angola and the IFDC’s strong record of delivering high-impact projects which boost fertilizer usage, demand is expected to exceed the nameplate capacity of 150,000tpa.

1 IFDC Announcement – Project Supporting Agricultural Productivity in Burundi 2020 IFDC PAPAB Report [July 2020]

2 World Bank Group – Creating Markets in Angola: Country Private Sector Diagnostic (ifc.org) [2019]

3 ASX Announcement – CABINDA PHOSPHATE PROJECT SCOPING STUDY [26 August 2020]

ASX Code: MNB Office: Suite 1, 245 Churchill Avenue, Subiaco WA 6008 T: +61 8 6270 4610 E: info@minbos.com W: www.minbos.com ABN: 93 141 175 493

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Commenting on the MOU, Minbos CEO Lindsay Reed:

“Minbos has been working with the IFDC for several years now, developing our phosphate product through greenhouse trials, collaborating on fertilizer qualification and granulation plant design, and currently, developing market demand in one of the most prospective fertilizer regions globally.

The involvement of IFDC in the development of the Cabinda Phosphate Product was significant for the Company’s successful tender for the Cabinda Phosphate Project. Our social contract with the government of Angola is strengthened through their involvement, expertise, and proven ability to deliver high-quality social impact agricultural projects.

As the Company looks to enter production in early 2022, securing market offtake through a program that unlocks value for local Small Holder Farmers and government stakeholders, as well as Minbos shareholders, is key to our successful collaboration. This first step in developing a project to establish a new market in Angola marks another milestone for the Company as we look towards production in early 2022.”

IFDC BACKGROUND

Since 1974, IFDC has delivered technologies, practices, and capacity building to increase and sustain food security and agricultural productivity in over 100 developing countries.

IFDC plays a critical role in tackling these global problems through the development and transfer of affordable, effective fertilizer technologies. IFDC’s solutions span a wide spectrum of research and development work, including production process research, applied research on soil systems, development of innovative fertilizer products and application technologies, market systems development to strengthen input and output value chains, and policy analysis to enable fertilizer importation, business development, and smallholder adoption of fertilizer and other soil fertility technologies.

The IFDC is an independent non-profit organization that combines innovative research, market systems development, and strategic partnerships to spread sustainable agricultural solutions for improved soil health, food security, and livelihoods around the world.

-ENDS-

This announcement is authorised for release by Minbos Chief Executive Officer, Lindsay Reed.

For further information, please contact:

Lindsay Reed

Chief Executive Officer Phone: +61 8 6270 4610

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ASX Code: MNB Office: Suite 1, 245 Churchill Avenue, Subiaco WA 6008 T: +61 8 6270 4610 E: info@minbos.com W: www.minbos.com ABN: 93 141 175 493

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ABOUT MINBOS

Minbos Resources (ASX:MNB) is an ASX-listed exploration and development company focused on the Cabinda Phosphate Project in the province of Cabinda, Angola. Our nutrient and distribution project will directly impact the lives of employees, local businesses, the agriculture sector, Angolan national food security, government revenues and the local population for many years to come, all the while promoting Angola as an attractive investment destination and delivering value for Minbos Shareholders.

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ASX Code: MNB Office: Suite 1, 245 Churchill Avenue, Subiaco WA 6008 T: +61 8 6270 4610 E: info@minbos.com W: www.minbos.com ABN: 93 141 175 493