MINBOS RESOURCES LIMITED — Capital/Financing Update 2023

Oct 17, 2023

ASX Announcement

18 October 2023

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Amendment to ASX Announcement

Minbos Resources Limited (ASX:MNB) (“Minbos” or “the Company”) wishes to advise of amendments to the announcement titled “Funding and Project Update” released on 17 October 2023 (Announcement) .

The following amendments were made:

• A separate section of the announcement has been included titled “Material Terms of the Indicative Term Sheet”, which sets out material terms of the indicative term sheet which had not been included in the original announcement.

• The Company has updated its footnote references throughout the announcement to link several pieces of information to disclosure in the correct prior announcements. The footnotes contained in the original announcement linked information to the wrong prior announcements made by the Company.

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This announcement has been authorised for release by the Company Secretary of Minbos Resources Limited.

For further information please contact:

Investor and Media Enquires E: info@minbos.com P: +61 8 6270 4610

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Minbos Resources Limited ABN 93 141 175 493 T: +61 8 6270 4610 E: info@minbos.com W: www.minbos.com Office : Suite 5, 254 Rokeby Road, Subiaco WA 6008

ASX Announcement

18[th] OCTOBER 2023

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FUNDING AND PROJECT UPDATE

Minbos Resources Limited (ASX:MNB) (“Minbos” or “the Company”) is pleased to provide updated information on financing and the Cabinda Fertilizer Project.

FINANCING AND TERM SHEET

• The Company has received an Indicative Term Sheet for a US$14 million (debt) loan facility from the Industrial Development Corporation of South Africa Ltd (IDC).

• The loan facility proposes a competitive interest rate and tenor, subject to a number of conditions precedent which are customary for a transaction of this nature, including due diligence with site visits scheduled for this month.

• The IDC is a South African development finance institution established in 1940 to promote economic growth and industrial development to grow South Africa’s industrial capabilities.

• Engagement with IDC may also provide other commercial opportunities, for example potential offtake for Stage 2 production (>200,000tpa) of beneficiated phosphate rock with South African customers.

• The Company remains engaged with a number of complementary financing options which include coordination with existing stakeholders.

• The Company is confident it can build its Phosphate Fertilizer Project at a significant discount to the budgeted Capital Expenditure (CAPEX) announced in its Definitive Feasibility Study (DFS).

KEY UPDATES SINCE DFS

The Company has released several updates since the DFS was released in October 2022 which will see a reduction in capital costs and operating costs and accelerate ramp up to nameplate capacity, all of which are expected to improve the base case project NPV and include:

• Simplified flowsheet has identified capital savings of ~ US$10 million over the DFS[1] , with only US$26 million expenditure remaining until commencement of production.

1ASX Announcement - Simplified flowsheet delivers significant CAPEX reduction for Phosphate fertilizer plant (23 February 2023)

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Minbos Resources Limited ABN 93 141 175 493

T: +61 8 6270 4610 E: info@minbos.com W: www.minbos.com Office : Suite 5, 254 Rokeby Road, Subiaco WA 6008

ASX Announcement

18[th] OCTOBER 2023

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• CAPEX for Stage 2 expansion to double capacity on revised flow sheet has been estimated at US$1.7-3.3 million (previously US$28 million)[2] .

• MOU’s signed and under negotiation cover the majority of Stage 1 production (187,500tpa nameplate capacity) with a faster ramp-up which is expected to bolster early cashflow and project NPV.

• The new plant site (Subantando) offers significant transport savings, the distance from the mine to plant is reduced from 76km to 36km[3] and the distance from the plant to the port is reduced from 28km to 16km with reduced costs to hold and maintain site.

MATERIAL TERMS OF THE INDICATIVE TERM SHEET

• The parties to the term sheet are the borrower, Minbos Resources Limited’s subsidiary, Phobos Limited, and the lender, The Industrial Development Corporation of South Africa Limited (IDC).

• The loan facility amount is for a total of US$14 million.

• The term is the period commencing on the first drawing date and ending five years from such date. The loan facility will be available for drawing until the terminal drawing date which is 12 months from the date of approval (Availability Period). Any undrawn portion may be cancelled immediately after the expiry of the Availability Period.

• The interest rate is the Secured Overnight Financing Rate plus 6.77% payable quarterly in arrears.

• Conditions precedent include the completion of legal, financial, tax, technical and other due diligence by IDC including site visits within the next two weeks. All other conditions precedent are customary for a transaction of this nature.

Minbos CEO, Mr Lindsay Reed, said: “The submission of a term sheet for project finance from an established financial institution affirms Angola’s standing for foreign investment and demonstrates support with SADC for projects with a strong social impact.”

The Company will continue to keep shareholders updated on progress with funding and project development.

This announcement is authorised for release by the Board of Minbos Resources Limited.

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2ASX Announcement - Amendment to ASX Announcement (17th April 2023)

3ASX Announcement - Minbos secures site for Cabinda Phosphate Plant (10th November (2022)

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Minbos Resources Limited ABN 93 141 175 493

T: +61 8 6270 4610 E: info@minbos.com W: www.minbos.com Office : Suite 5, 254 Rokeby Road, Subiaco WA 6008

ASX Announcement 18[th] OCTOBER 2023

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For further information please contact:

Investor and Media Enquires

E: info@minbos.com P: +61 8 6270 4610

Compliance Statement

The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and, in the case of material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed.

Forward Looking Statements

Statements contained in this release, particularly those regarding possible or assumed future performance, revenue, costs, dividends, production levels or rates, prices, or potential growth of Minbos Resources Limited, are, or may be, forward looking statements. Such statements relate to future events and expectations and, as such, involve known and unknown risks and uncertainties. Actual results and developments may differ materially from those expressed or implied by these forward-looking statements depending on a variety of factors.

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Minbos Resources Limited ABN 93 141 175 493 T: +61 8 6270 4610 E: info@minbos.com W: www.minbos.com Office : Suite 5, 254 Rokeby Road, Subiaco WA 6008