MINERAL COMMODITIES LTD — Annual Report 2020

Mar 1, 2020

ASX RELEASE

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ASX: MRC 28 February 2020

MRC FULL YEAR RESULTS SUMMARY

Mineral Commodities Ltd (“MRC” or “the Company”) continued its strong operation and financial performance during the financial year ended 31 December 2019.

Financial Highlights

• Total Revenue US$61.8 million up 12% (FY18 $55.4 million)

• EBITDA US $16.5 million up 12% (FY18 $14.7 million)

• Profit Before Income Tax US$11.9M up 14% (FY18 $10.4 million)

• NPAT US $7.8 million down 11% (FY18 $8.8 million)

Operational Highlights

• Mining rights (10107MR and 10108MR) were renewed at the Tormin Mineral Sands Operation to allow the continuation of its existing mining operations for an additional 10 years.

• Mining and processing tonnages at Tormin remained high, in line with the prior year to offset declining grades while the Company awaits a decision on its Section 102 Mining Right Expansion Application and the finalisation of the appeal process.

• Production at Tormin was 10% above the December 2018 inferred resource, which is supportive of the replenishing nature of the deposit where resource blocks are mined more than once a year.

• Cost savings have been achieved through switching from 24/7 operations to a schedule implemented from June 2019, incorporating an effective average 5.5 days per week working roster.

• Three-month rolling Total Recordable Injury Frequency Rate at Tormin started and finished the year at nil. The Company achieved a further milestone of working in excess of 1.3 million working hours since a Lost Time Injury incident in April 2017.

• Skaland Graphite AS acquisition was completed. The Company is now operating the world’s highestgrade flake graphite mine and has finalised the DFS for the Munglinup Graphite Project in Western Australia, highlighting a post-tax NPV of US$ 111M and a 14 year mine life.

T: +61 8 6253 1100 PO Box 235 WELSHPOOL DC WA 6986

ABN 39 008 478 653 info@mncom.com.au www.mncom.com.au

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ASX: MRC ASX: MRC 28 February 2020

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Executive Chairman Mark Caruso said, “This has been a milestone year for the Company. We maintained cost discipline, strong operating performance and delivered sales growth at Tormin while completing the acquisition and integration of Skaland into our operating portfolio and finalised the DFS at Munglinup. A truly transformational year for our Company.”

ENDS

Issued by Mineral Commodities Ltd ACN 008 478 653 www.mineralcommodities.com

Authorised by the Board, Mineral Commodities Ltd

For further information, please contact:

INVESTORS & MEDIA Peter Fox Investor Relations and Corporate Development T: +61 8 6253 1100 investor@mncom.com.au

CORPORATE Peter Torre Company Secretary

T: +61 8 6253 1100 peter@torrecorporate.com.au

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ABN 39 008 478 653 info@mncom.com.au www.mncom.com.au

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28 February 2020

ASX: MRC ASX: MRC

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About Mineral Commodities Ltd:

Mineral Commodities Ltd (ASX: MRC) is a global mining and development company with a primary focus on the development of high-grade mineral deposits within the industrial and battery minerals sectors.

The Company is a leading producer of zircon, rutile, garnet and ilmenite concentrates through its Tormin Mineral Sands Operation, located on the Western Cape of South Africa. In October 2019, the Company completed the acquisition of Skaland Graphite AS, the owner of the world’s highest-grade operating flake graphite mine and one of the only producers in Europe. The planned development of the Munglinup Graphite Project, located in Western Australia, builds on the Skaland acquisition and is a further step toward an integrated, downstream value-adding strategy which aims to capitalise on the fastgrowing demand for sustainably manufactured Lithium-Ion Batteries.

Cautionary Statement

This report may contain forward-looking statements. Any forward-looking statements reflect management’s current beliefs based on information currently available to management and are based on what management believes to be reasonable assumptions. It should be noted that several factors could cause actual results or expectations to differ materially from the results expressed or implied in the forward-looking statements.

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ABN 39 008 478 653 info@mncom.com.au www.mncom.com.au

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