MINERAL COMMODITIES LTD — Annual Report 2021

Feb 27, 2022

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ASX RELEASE
ASX: MRC 28 February 2022
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ANNUAL MINERAL RESOURCES AND ORE RESERVES STATEMENT

Heavy Mineral Sands Projects – South Africa

• Substantial increase in Heavy Mineral Sands Resource tonnes and in situ Heavy Minerals.

• At 31 December 2021, MRC’s total Mineral Resources of Heavy Mineral Sands contained a combined estimate of 562 million tonnes at 6.6% Total Heavy Minerals (“THM”), containing 37 million tonnes in situ Heavy Mineral.

Graphite Projects – Australia and Norway

• Total Group Mineral Resources of graphite contained 9.83 million tonnes at 14.3% TGC, containing 1.4 million tonnes of graphite.

• Total Group Ore Reserves of graphite contained 4.88 million tonnes at 14.3% Total Graphitic Carbon (“TGC “).

Mineral Commodities Ltd (ASX: MRC) (“the Company” or “MRC”) is pleased to report its annual Mineral Resource and Ore Reserve Estimates as at 31 December 2021 pursuant to ASX Listing Rule 5.20 and 5.21. Summary of total Resource and Reserve estimates are set out below and full details of the Resource/Reserve estimates including JORC Code Table 1, can be found in the attached Annual Report.

Managing Director Jacob Deysel said, “The 2021 Annual Mineral Resource and Ore Reserve Statement of the Company indicates an excellent portfolio of world-class Mineral Sands and Graphite deposits supporting our growth strategy. Furthermore, with consideration of the recently announced Maiden Ore Reserve for the Tormin Inland Strand, the critical and strategic mineral assets of the Company will secure long-term sustainable production and provide benefits for all stakeholders”.

T: +61 8 6373 8900 PO Box 91 BELMONT WA 6984

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

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Group Mineral Resources

As at 31 December 2021, Group Mineral Resources included:

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• 562 million tonnes at 6.6% THM including 37 million tonnes of in situ heavy mineral across its Tormin Mineral Sands Operation and Xolobeni Mineral Sands Project.

• 9.83 million tonnes at 14.3% TGC and contained 1.4 million tonnes of graphite across its Munglinup Graphite Project and Skaland Graphite Operation.

This represents an increase of approximately 106 million tonnes of heavy mineral resources and 0.08 million tonnes of graphite resources compared with the estimate at the same time last year. Mineral Resources are reported inclusive of Ore Reserves. The Group Mineral Resources estimates for the FY 2021 are set out in Tables 1 and 2.

Table 1 - Total Mineral Resources of Heavy Mineral Sand at 31 December 2021

Project	Category	Resource (Mt)	THM (%)	In Situ THM(Mt)	Zircon (%HM)	Garnet (%HM)	Ilmenite (%HM)	Rutile (%HM)	Anatase (%HM)	Magnetite (%HM)
Tormin Beaches	Measured	1.1	9.11	0.1	3.18	52.36	7.14	1.32	0.22	0.33
	Indicated	0.07	7.13	<0.01	3.23	50.91	5.61	1.40	0.28	0.42
	Total	1.1	8.98	0.1	3.12	52.34	7.13	1.34	0.22	0.33
Northern Beaches	Measured	1.48	22.83	0.34	3.55	55.98	10.42	1.36	0.26	0.57
	Indicated	0.75	20.80	0.15	3.29	69.75	9.05	1.34	0.28	0.37
	Inferred	0.2	15.58	0.03	3.12	60.54	5.89	0.99	0.22	0.41
	Total	2.4	21.61	0.5	3.48	60.62	9.94	1.35	0.26	0.51
Western Strandline	Measured	32.7	19.21	6.2	1.82	12.49	7.91	1.09	0.21	0.52
	Indicated	39.7	9.48	3.7	1.05	14.77	3.80	0.84	0.21	0.74
	Inferred	119.2	6.93	8.2	2.60	10.68	18.04	1.44	0.29	0.43
	Stockpile	1.6	12.84	0.2	4.21	18.85	25.78	1.95	0.39	0.78
	Total	193.2	9.58	18.5	2.16	11.89	13.46	1.26	0.25	0.51
Eastern Strandline	Indicated	1.9	5.34	0.1	6.12	15.71	35.44	7.73	0.92	0.89
	Inferred	17.5	3.13	0.5	6.35	14.39	36.74	6.09	1.19	0.51
	Total	19.5	3.36	0.6	6.32	14.52	36.60	6.25	1.16	0.57
Xolobeni	Measured	224	5.7	12.76			54.5
	Indicated	104	4.1	4.26			53.7
	Inferred	18	2.3	0.41			69.4
	Total	346.0	5.0	17.3			54
Grand Total		562.2	6.6	37			39.1

• Mineral assemblage reported as in situ percentage of THM content.

• Tonnes and grades numbers may not compute due to rounding.

• 2% THM cut-off grade used for Tormin and Northern Beaches, Western and Eastern Strandlines.

• 1% THM cut-off grade used for Xolobeni.

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Table 2 - Total Mineral Resources of Graphite at 31 December 2021

		Resource	Total Graphitic	Contained Graphite
Project	Category
		(Mt)	Carbon(%)	(Mt)
	Measured	0.06	30.2	0.02
	Indicated	0.71	25.2	0.18
Skaland
	Inferred	1.05	22.0	0.23
	Total	1.84	23.6	0.43
	Indicated	4.49	13.1	0.58
Munglinup
	Inferred	3.50	11.0	0.38
	Total	7.99	12.2	0.97
Grand Total		9.83	14.3	1.40

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• Tonnes and grades numbers may not compute due to rounding.

• 10% THM cut-off grade used for Skaland.

• 5% THM cut-off grade used for Munglinup.

Group Ore Reserves

As at 31 December 2021, Group Ore Reserves of graphite is estimated to contain 4.88 million tonnes of 14.3% TGC. This represents an increase of 0.64 million tonnes of graphite ore compared with the estimate at the same time last year.

Table 3 - Total Ore Reserves of Graphite at 31 December 2021

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Tonnes Total Graphitic Carbon
Project Category
(Mt) (%)
Proven 0.05 27.8
Skaland Probable 0.58 24.6
Total 0.64 24.8
Proven
Probable 4.24 12.8
Munglinup
Total 4.24 12.8
Grand Total 4.88 14.3
• Ore Reserve uses a variable cut-off grade.
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• Ore Reserves are a sub-set of Mineral Resources.

Refer to appendix of this release for the explanatory note for the annual updates of Mineral Resources and Ore Reserves.

ENDS

Issued by Mineral Commodities Ltd ACN 008 478 653 www.mineralcommodities.com Authorised by the Chief Executive Officer and Company Secretary, Mineral Commodities Ltd.

For further information, please contact:

INVESTORS & MEDIA CORPORATE Jacob Deysel Fletcher Hancock Chief Executive Officer Company Secretary T: +61 8 6373 8900 T: +61 8 6373 8900 investor@mncom.com.au fletcher. hancock.@mncom.com.au

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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, magnetite 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 one 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 our European developments and is a further step toward an integrated, downstream value-adding strategy which aims to capitalise on the fast-growing 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. These forward-looking statements are not a guarantee of future performance and involve unknown risks and uncertainties, many of which are beyond MRC’s control, which may cause actual results and developments to differ materially from those expressed or implied. These risks include but are not limited to, economic conditions, stock market fluctuations, commodity demand and price movements, access to infrastructure, timing of approvals, regulatory risks, operational risks, reliance on key personnel, Ore Reserve and Mineral Resource estimates, native title, foreign currency fluctuations, exploration risks, mining development, construction, and commissioning risk. Forward-looking statements in this report apply only at the date of issue. Subject to any continuing obligations under applicable law or regulations, MRC does not undertake to publicly update or revise any of the forward-looking statements in this report or to advise of any change in events, conditions, or circumstances on which any such statement is based. Readers are cautioned not to place undue reliance on any forward-looking statements contained in this report.

Mineral Resource and Ore Reserve Governance

Mineral Resources and where applicable, Ore Reserves, are estimated by suitably qualified persons in accordance with the JORC Code and the ASX Listing Rules, using industry standard techniques. Mineral Resource estimates and supporting documentation are reviewed by external Competent Persons. Any amendments to the Mineral Resources and Ore Reserves Statement to be included in the Annual Report are reviewed by suitably qualified Competent Persons.

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Competent Person’s Statement

The Annual Mineral Resources and Ore Reserve Statement and Explanatory Notes have been compiled by Mr Bahman Rashidi, who is a member of the Australian Institute of Mining and Metallurgy (“AusIMM”) and the Australian Institute of Geoscientists (“AIG”). Mr Rashidi is the Group Exploration Manager, a full-time employee of the Company also a shareholder of Mineral Commodities Ltd. He has sufficient experience which is relevant to the style of mineralisation and types of deposit under consideration and to the activity he is undertaking to qualify as a Competent Person in accordance with the JORC Code (2012). Mr Rashidi consents to inclusion in the report of the matters based on this information in the form and context in which it appears.

Table 4 is a listing of the names of the Competent Persons (as defined by the JORC Code 2012) who are taking responsibility for reporting results and estimates. This Competent Person listing includes details of professional memberships, professional roles, and the reporting activities for which each person is accepting responsibility for the accuracy and veracity of MRC’s FY2021 results and estimates.

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		Table 4 - Competent Persons name		s for Mineral Resource and Ore Reserve MRC relationship Activity responsible Principal Al Maynard & Associates Xolobeni HMS Group Exploration Manager MRC Tormin and Northern Beaches, Inland Strands HMS & Skaland Graphite Principal Manna Hill GeoConsulting Munglinup Graphite Principal Mine Engineer Skaland Graphite AS Skaland Graphite Principal HastingBell Munglinup Graphite
		Competent	Professional
	Activity	Person	Affiliation	MRC relationship	Activity responsible
	Mineral Resource Estimates	Allen Maynard	MAIG / MAusIMM	Principal Al Maynard & Associates	Xolobeni HMS
		Bahman Rashidi	MAusIMM / MAIG	Group Exploration Manager MRC	Tormin and Northern Beaches, Inland Strands HMS & Skaland Graphite
		Chris De Vitry	MAusIMM	Principal Manna Hill GeoConsulting	Munglinup Graphite
	Ore Reserve Estimates	Eero Tommila	MIMMM	Principal Mine Engineer Skaland Graphite AS	Skaland Graphite
		Daniel Hasting	MAusIMM	Principal HastingBell	Munglinup Graphite

• MAusIMM = Member of Australasian Institute of Mining and Metallurgy and MAIG = Member of Australian Institute of Geoscientists

• MIMMM = Member of the Institute of Materials, Minerals, and Mining, a Recognised Professional Organisation (RPO).

• Information in this report that relates to Exploration Targets, Exploration Results, Mineral Resources or Ore Reserves is based on the information compiled by the relevant Competent Persons listed.

• All MRC personnel are full-time employees of MRC.

The information in this report that relates to Exploration Results, Mineral Resources and Ore Reserves is based on information compiled by the Competent Persons named in the table above. All Competent Persons have sufficient experience which is relevant to the style of mineralisation and types of deposit under consideration and to the activity which they are is undertaking to qualify as a Competent Person in accordance with the JORC Code (2012). Each Competent Person consents to inclusion in the report of the matters based on this information in the form and context in which it appears.

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ASX : MRC 28 February 2022
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THE 2021 ANNUAL REPORT OF EXPLORATION RESULTS, MINERAL RESOURCE AND ORE RESERVES

Overview

Mineral Commodities Ltd (ASX: MRC) ("the Company" or "MRC") is a diversified mining group executing two complementary business strategies focused on the production of heavy mineral sands and natural flake graphite concentrates from two high grade mines and one shovelready development project. In addition, the Company intends to construct an Active Anode Material Plant (“AAMP”) in Norway to become a vertically integrated producer of natural graphite battery anode material to capitalise on the fast-growing demand for sustainably manufactured lithium-ion batteries.

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Figure 1 – MRC's global operations

1. Mineral Sands

MRC and its empowerment partner, Blue Bantry Investments 255 (Pty) Ltd, operate the Tormin Mineral Sands Operation in the Western Cape province of South Africa which is held by the Company's 50% owned South African subsidiary, Mineral Sands Resources (Pty) Ltd ("MSR"). Tormin supplies circa 25% of the world's demand for garnet sands and is one of the top ten independent zircon and titanium feedstock suppliers. MRC is expanding mining and processing operations at Tormin under the Expanded Amended Mining Right (“162&163 EMR”).

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The objective of MRC's mineral sands strategy is to adopt a phased development program from the Inland Strand and Beach deposits to improve flexibility, optionality, and revenue capacity from Tormin.

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Figure 2 – MRC's operations and tenures in South Africa

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Tormin Mineral Sands Operation

Situated approximately 360 kilometres north of Cape Town on the west coast of South Africa and owned by the Company's 50% owned South African subsidiary, Mineral Sands Resources (Pty) Ltd ("MSR").

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Tormin Beaches

Tormin is a high-grade placer beach mineral sands deposit hosting naturally occurring zircon, ilmenite, rutile, magnetite, and garnet. As an active placer beach deposit, Tormin is unique due to the rate that mining areas are naturally replenished by storm and oceanic wave action and the speed that the mineralisation actively replenishes. The nature of the resource replenishment is typical of modern-day beach placer deposits found along the West Coast of South Africa and India's South-eastern Tamil Nadu coast.

The Company first commenced commercial mining at Tormin in 2014 over a 12 kilometre zone of beach area ("Tormin Beaches") directly in front of the existing processing infrastructure. Mining rights to the Tormin Beaches were renewed in 2019, and the permits allow the Company to continue mining operations for a further 10 years, until 2029.

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Figure 3 – Geographical location of the Company's tenements in the Western Cape province of South Africa

Since operations commenced at Tormin beaches, the Group has mined over five times the 2013 initial Indicated Resource of 2.7 million tonnes at an average head grade of 30% THM over the life of mining. Mining has now been ongoing for eight years and as at 31 December 2021, a total of 15 million tonnes of material has been processed. The tonnage processed is more than the declared resource tonnage which is indicative of the replenishing nature of the resource replenishment function of the placer style beach deposit - where resource blocks are mined more than once.

In December 2021, resource drilling was completed at the Tormin Beaches for the annual resource update. A total of 269 holes (544m) were drilled in all mining ramps on a regular 50m x 25m grid to audit the mineral resource. Total Mineral Resource for the Tormin Beaches is estimated at 1.17 million tonnes at 8.9% THM in the Measured and Indicated category using a 2% cut-off (Table 1). A summary of the Tormin Beaches Annual Mineral Resource Audit is in appendix 1 per the JORC Code (2012).

Table 1 - Total mineral resources for the Tormin Beaches deposit (2% THM cut-off) at 31 December 2021

Category	Tonnes (Mt)	THM (%)	In Situ THM(Mt)	Zircon (%HM)	Garnet (%HM)	Ilmenite (%HM)	Rutile (%HM)	Anatase (%HM)	Magnetite (%HM)
Measured	1.1	9.11	0.10	3.18	52.36	7.14	1.32	0.22	0.33
Indicated	0.07	7.13	<0.01	3.23	50.91	5.61	1.40	0.28	0.42
Total	1.17	8.98	0.10	3.12	52.34	7.13	1.34	0.22	0.33
•	Mineral assemblage reported as i			n situ percentage of THM con		tent

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Table 2 – Tormin Beaches Resource and Production Summary Data

Category	Resource (Mt)	HM (%)	Zircon (%)	Garnet (%)	Ilmenite (%)	Rutile (%)
Tonnes Mined FY2020	2.16	8.74	0.40	6.86	1.23	0.14
Resource Dec 2020	1.13	8.27	0.47	6.47	1.13	0.15
Tonnes Mined FY2021	1.17	9.61	0.49	7.53	1.22	0.27
Resource Dec 2021	1.17	5.79	0.28	4.7	0.64	0.12

• HM includes other valuable heavy minerals e.g. anatase and magnetite.

• 2% THM cut-off grade used.

1.1.2. Northern Beaches

The Northern Beaches incorporate ten beaches directly north of and adjoining the Tormin Beaches. The areas unite semi-continuous tenements approximately 23.5 kilometres in length, covering an area of 398 hectares of beach sands prospective for zircon, rutile, ilmenite, garnet, and magnetite. Like the Tormin Beaches, this deposit is located on an active placer beach undergoing continuous replenishment from oceanic storm and wave activity. The heavy minerals in the beach are constantly replenished by the transport of new sediment from deeper waters, much of which has been derived from the erosion of deposits accumulated in the elevated historic beach terraces onto the present beach.

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Figure 4 – Overview of mining operation and primary concentrator at beach 10 of the Northern Beaches

In 2021, beaches 7 and 10 were mined and a total of 1.34Mt of ore mined out from the Northern Beaches. For the annual mineral resource audit, a total of 130 holes (345.5m) were drilled in beaches 7 and 10 on a regular 50m x 25m grid. Total Mineral Resource for the Northern Beaches is estimated at 2.4 million tonnes at 21.6% THM in the category of Measured, Indicated and Inferred using a 2% cut-off (Table 3).

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Table 3 - Total mineral resources for the Northern Beaches deposit (2% THM cut-off) at 31 December 2021

Category	Tonnes (Mt)	THM (%)	In Situ THM (Mt)	Zircon (%HM)	Garnet (%HM)	Ilmenite (%HM)	Rutile (%HM)	Anatase (%HM)	Magnetite (%HM)
Measured	1.48	22.83	0.34	3.55	55.98	10.42	1.36	0.26	0.57
Indicated	0.75	20.80	0.15	3.29	69.75	9.05	1.34	0.28	0.37
Inferred	0.2	15.58	0.03	3.12	60.54	5.89	0.99	0.22	0.41
Total	2.43	21.61	0.52	3.48	60.62	9.94	1.35	0.26	0.51

• Mineral assemblage reported as in situ percentage of THM content

A summary of annual Mineral Resource audit for the Northern Beaches is outlined in Appendix 2 per the JORC Code (2012).

MSR has planned to focus on mining at virgin beaches 1 to 5 of the Northern Beaches during the 2022 to allow replenshment of beaches 7 and 10.

Table 4 – Northern Beaches Resource and Production Summary Data

Category	Resource (Mt)	HM (%)	Zircon (%)	Garnet (%)	Ilmenite (%)	Rutile (%)
Resource Dec 2020	3.02	14.99	0.83	11.8	1.96	0.24
Tonnes Mined FY2021	1.34	13.52	0.76	9.89	2.42	0.36
Resource Dec 2021	2.43	16.46	0.75	13.1	2.15	0.26

• HM includes other valuable heavy minerals e.g. anatas and magnetite.

• 2% THM cut-off grade used.

1.1.3. Inland Strands

The Inland Strand mining areas granted under the Expanded Mining Right (162&163 EMR) in mid-2020 include two areas approximately 5.6 kilometres in total length, covering 75 hectares of high-grade mineralisation adjacent to the existing mining operations on the Company owned farm, Geelwal Karoo 262. The Inland Strand Mining Right areas are part of the Inland Strand Prospecting Right 10262, which incorporates an area approximately 12 kilometres in length, covering 1,741 hectares.

The updated JORC compliant resource Mineral Resource of Western Strandline was estimated in December 2021 at 193.2 million tonnes at 9.5% THM for 18.5 Mt of contained Heavy Mineral using a 2% cut-off was reported on December 2021 (Table 5).

Table 5 - Updated Mineral Resources for the Western Strandline Deposit (2% THM cut-off grade)

Category	Tonnes (Mt)	THM (%)	In Situ THM (Mt)	Zircon (% HM)	Garnet (% HM)	Ilmenite (% HM)	Rutile (% HM)	Anatase (% HM)	Magnetite (% HM)	Slimes (%)
Measured	32.7	19.21	6.2	1.82	12.49	7.91	1.09	0.21	0.52	10.39
Indicated	39.7	9.48	3.7	1.05	14.77	3.80	0.84	0.21	0.74	5.07
Inferred	119.2	6.93	8.2	2.60	10.68	18.04	1.44	0.29	0.43	9.59
Stockpile	1.6	12.84	0.2	4.21	18.85	25.78	1.95	0.39	0.78	15.77
Total	193.2	9.58	18.5	2.16	11.89	13.46	1.26	0.25	0.51	8.85

• Mineral assemblage reported as in situ percentage of THM content.

• • Tonnes and grades numbers may not compute due to rounding.

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Mining commenced in the Western Strandline in September 2020 with 1.6Mt mined from the Southern pit and has been stockpiled by the end of 2021 but not processed. This material was depleted from the mineral resources and reported as a stockpile.

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Figure 5 - Overview of mine out material from the south pit in the Western Strandline

Moreover, a maiden Mineral Resource of Eastern Strandline is estimated at 19.5 million tonnes at 3.3% THM in the categories of Indicated and Inferred using a 2% THM cut-off grade. This maiden Mineral Resource (Table 6) demonstrates the prospectivity of the inland strandline areas and underscores the Company’s strategy of growing the resources for mineral processing expansion.

Table 6 - Maiden Mineral Resources for the Eastern Strandline Deposit (2% THM cut-off grade)

Category	Tonnes (Mt)	THM (%)	In Situ THM (Mt)	Zircon (% HM)	Garnet (% HM)	Ilmenite (% HM)	Rutile (% HM)	Anatase (% HM)	Magnetite (% HM)	Slimes (%)
Indicated	1.9	5.34	0.1	6.12	15.71	35.44	7.73	0.92	0.89	8.55
Inferred	17.5	3.13	0.5	6.35	14.39	36.74	6.09	1.19	0.51	7.97
Total	19.5	3.36	0.6	6.32	14.52	36.60	6.25	1.16	0.57	8.03

• Mineral assemblage reported as in situ percentage of THM content.

• • Tonnes and grades numbers may not compute due to rounding.

The Inland Strand deposit presents a significant mineral sands asset for the Company which offers material extension of mine life. The opportunity to develop and mining in the Western Strandline is an important turning point for the Company in realising the value of the world-class Tormin Mineral Sands Operation.

MSR is planning a final phase-3 drilling program designed to infill the existing targeted resource areas in the known mineralised zones on the Eastern and Western Strandlines as part of a strategy to unlock the full potential of the Prospecting Right.

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Figure 6 -Tormin deposits comparison by resource size and grade - December 2021

The Company cumulatively holds a continuous inland prospecting tenure granted, and/or under application, of approximately 41.4km in length and covering approximately 6,634 hectares. Two Prospecting Rights under application, both adjoining PR10262 on the Company owned farm, Geelwal Karoo 262 are highly prospective for the continuation of Western and Eastern Strandlines:

• De Punt (PR10240), which adjoins immediately to the south and covers an area of approximately 4,495 hectares. In November 2021, MSR received confirmation that the appeal against granting of an Integrated Environmental Authorisation (“IEA”) was dismissed; and

• Klipvley Karoo (PR10348), immediately to the north, covers an area approximately 16km in length and 3,970 hectares.

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Xolobeni

The Xolobeni Mineral Sands Project is located in the Eastern Cape province of South Africa, approximately 300km north of East London and 200km south of Durban. Mineral resource is estimated at 346 million tonnes at 5% THM, with 54% ilmenite in THM1. The Xolobeni project is currently subject to a Department of Mineral Resources ("DMR") mandated moratorium in South Africa. Any potential development timetable is unknown and subject to the outcome of this moratorium. No exploration or production activity has been carried out at Xolobeni during the year and mineral resource remain consistent with that reported for the period ending 31 December 2020.

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1 This information 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.

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2. Graphite

MRC is investing in a vertically integrated downstream value adding strategy targeting the production of low CO2 emission, environmentally friendly anode material from both Skaland and Munglinup natural flake concentrates.

The Company is targeting the development of anode production from a dedicated Active Anode Materials Plant ("AAMP") in Norway.

2.1 Skaland Graphite Operation

Skaland is the largest flake graphite producer in Europe and the fourth-largest producer globally outside of China. Skaland is presently one of the world's highest-grade operating flake graphite mines with mill feed grade averaging around 24% C. Skaland accounts for around 2% of global annual natural flake graphite production. The operation is held by Skaland Graphite AS, in which the Company holds a 90% interest.

In March 2021, the Company commenced a 3,000m drilling program, including 17 holes from the existing development on level +25mRL. The drill program targeted the conversion of significant inferred resources down to -100m RL to support an updated Mineral Resources Estimate and the first JORC compliant Ore Reserve Statement at Traelen.

The Updated Mineral Resource of 1.84 million tonnes at 23.6% TGC in the Measured, Indicated, and Inferred categories for 434 kt of contained graphite using a 10% cut-off was reported in November 2022 for the Trælen deposit (Table 7). The Updated Mineral Resource represents an increase of 92% in the total Measured and Indicated resources to 786kt, from 409kt in the maiden Mineral Resource in 2020, with approximately 380kt of inferred resources upgraded.

Table 7 - Total mineral resources for the Trælen graphite deposit (10% cut-off)

Category	Tonnes (kt)	Total Graphitic Carbon (TGC) %	Contained Graphite (kt)
Measured	67	30.2	20
Indicated	719	25.2	181
Inferred	1,058	22.0	233
Total	1,844	23.6	434

• 10% TGC cut-off grade used for Trælen Mineral Resource estimate.

• Tonnes and grade numbers may not compute due to rounding.

Maiden Ore Reserve is estimated at 0.64 million tonnes at 24.8% TGC in the category of proven and probable containing 159 kt of contained graphite by using 10% TGC cut-off grade (Table 8).

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Table 8 - Total Maiden Ore Reserves of Trælen Graphite

Category	Tonnes (kt)	Total Graphitic Carbon(%)	Contained Graphite(kt)
Proven	55	27.8	15
Probable	585	24.6	144
Total	640	24.8	159

• Ore Reserve was estimated using a 10% TGC cut-off grade

• Ore reserves are a sub-set of Mineral Resources.

A mining contractor was engaged for the down-dip development at Trælen to access downdip ore at Trælen beneath the already mined out up-dip resources of the deposit. The decline will also provide a platform for additional drilling in 2022 to convert deeper inferred resources and target expansion of the resource base.

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Figure 7 – Long section of underground development design, existing development, and mine (grey) and underdevelopment/ planned mine (red)

The Life of Mine (“LOM”) planning has identified 640kt of ore down-dip between +5m and - 115m, with additional resources in and above the current workings and below -115m. The Mine planning provides 13 years of mining at a 10ktpa concentrate production rate. The Trælen graphite deposit is open at depth and plausible side lenses exist to support further expansion. It is noteworthy that the operations at 10ktpa have been considered as a base case and the Company is evaluating an increase of the production capacity to 16ktpa by mid2023.

The Company intends to commence the next drilling program in 2022 to upgrade the current resource and will target delineating a JORC Code (2012) compliant updated Mineral Resource and Ore Reserve.

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2.1.2 Bukken, Vardfjellet and Hesten Prospects

MRC, via its 90% owned subsidiary, Skaland Graphite AS, entered into a landowner's agreement for exclusive exploration rights at Bukken , Vardfjellet and Hesten in 2020. Hesten and Vardfjellet are situated about 4km west of the Bukken exploration prospect is approximately 15km southeast of MRC’s existing Skaland Graphite Mining Operation.

Surface mapping and sampling at all prospects was completed and favoured structures and higher-grade locations were to be determined. MRC will be undertaking an extensive, high-resolution, Unmanned Aerial Vehicle (“UAV’’) Magnetic and Electromagnetic survey over all three graphite prospects in March quarter 2022. The UAV Magnetic and Electromagnetic survey will be conducted along the flight lines for 50m traverse line spacing for the Magnetic survey and 100m traverse line spacing for the Electromagnetic survey, flying at a height of 20-25m above ground level to better understand the geological structural framework and drilling target delineation.

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Bukken
Gnr124/Bnr.1
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Figure 8 - Planned high resolution UAV Electromagnetic and Magnetic Survey (yellow areas) at Bukken in Fjellheim property, Hesten and Vardfjellet in Statskog SF property

2.2 Munglinup Graphite

The Munglinup Graphite Project is located 105km west of Esperance along South Coast Highway and 85km from Ravensthorpe. MRC's wholly-owned subsidiary, MRC Graphite Pty Ltd ("MRCG"), entered into a joint venture agreement with Gold Terrace Pty Ltd ("Gold Terrace"), to farm-in to the Munglinup Graphite Project with an initial 51% interest in the Project.

The Definitive Feasibility Study (“DFS”) of the project and Ore Reserve estimation was completed in January 2020. A Mineral Resource of 7.99 million tonnes at 12.2% TGC in the category of Indicated and Inferred using a 5% cut-off was reported and Ore Reserves were estimated at 4.24Mt @ 12.8% TGC (Table 9).

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Table 9 - Total Mineral Resource and Ore Reserve for the Munglinup Graphite project (5% cut-off)

Mineral Resource	Mineral Resource	Mineral Resource	Ore Reserve	Ore Reserve	Ore Reserve
Category	Tonnes (Mt)	Total Graphitic Carbon (%)	Category	Tonnes(Mt)	Total Graphitic Carbon (%)
Measured			Proven
Indicated	4.49	13.1	Probable	4.24	12.8
Inferred	3.50	11.0
Total	7.99	12.2	Total	4.24	12.8
		Ore Reserve
Flake Size		Sieve Size (µm)	Mass (%)		Total Graphitic Carbon (%)
Jumbo		300 – 500	6.5%		95%
Large		180 - 300	16.9%		95%
Medium		150 - 180	8.0%		95%
Small		75 - 150	29.8%		95%
Fine		< 75	38.8%		95%
		In Pit Resources
Category		Tonnes (Mt)		Total Graphitic Carbon (%)
Inferred		2.75		11.1

• Ore Reserve uses a variable cash flow cut-off grade

• Ore Reserve flake size distribution is for recovered graphite product

• In-Pit Resources comprise Inferred material inside the designed pit designs using a variable cash flow cut-off grade and do not constitute part of the Ore Reserves.

The Mineral Resource and Ore Reserve of Munglinup remain unchanged since 2020.

The project is on a mining lease granted to 2031 and within a gazetted mining reserve. The Munglinup LOM exceeds 14 years, based on LOM processing throughput approximately 450kt per annum, producing an average graphite concentrate production of 52kt per annum. The environmental permits are the only remaining approvals required before commissioning the Project.

The EPA public review period took place in April and May 2021 and the public response submissions were received from DWER in June 2021. The Summary of Submission document has been forwarded to the EPA and it was formally agreed on 9 July 2021. The Company undertook additional ecological, fauna, and flora surveys to update the EPA documents, as well as Tailing Storage Facility ( " TSF " ) seepage permeability’s geotechnical tests. MRC will respond to the submission document in early June 2022 quarter. Final EPA approvals are expected in early December quarter 2022.

In December quarter 2021, MRC undertook approximately 15km of vegetation clearing in the tailing storage facility area and new exploration sites in addition to re-clearing fire break tracks around the Mining Reserve. All clearing and surveys were conducted with the assistance of the Esperance Tjaltjraak Native Title Aboriginal Corporation ("ETNTAC").

Helicopter borne Magnetic and Electromagnetic survey over the Munglinup tenements were completed in January 2022, and MRC intends to commence drilling with a view to expand the resource base, convert inferred resources into higher categories and to test geophysical anomalous areas.

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For the second consecutive year, the Munglinup Graphite Project was recognised by the Australian Government as a Critical Mineral Project and included in the Australian Critical Minerals Prospectus 2021.

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Figure 9 – MRC's projects in Australia

3. Australian Exploration Projects

The Company's exploration assets in Australia are greenfields exploration projects, located in Western Australia's midwest regions. These tenements are non core business of the Company. During 2021, the Harvey Vanadium (M70/888) and Glen Florrie (E08/2963) tenements were assessed as low prospectively and surrendered.

MRC, throught its wholly-owned subsidiary, MRC Exploration Pty Ltd ("MRCE") holds interest in:

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Mount Edon Tenement

The Mount Edon pegmatite field hosts numerous lithium-cesium-tantalum ("LCT") pegmatites. The mining lease area has proven lithium-rich zones associated with the pegmatites, also historical mining for tantalum. Fieldwork was undertaken and a total of 80 rock samples were taken from 17 different locations and outcrops of pegmatites were also mapped. Lithium pegmatite pathfinder elements Rubidium and Tin were detected with a handheld XRF instrument. The best two pegmatite target zones are approximately 1.2km and 1.4km along

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the strike. Fractioned pods of LCT-type pegmatites were sampled with a trend of lepidoliterich zones along the identified pegmatites.

A Program of Work ("POW") for drilling was compiled and submitted to the Department of Mines, Industry Regulation and Safety ("DMIRS") on 19 January 2022.

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Doolgunna Tenement

Doolgunna is a complex stockwork of gold lodes hosted within a 300m wide greenschist facies alteration system and 5 km lenght. Resource drilling indicated a mesothermal alteration zone carried gold bearing fluids.

A Program of Work approval for 36,000 tonnes bulk sampling in Doolgunna was issued by the Department of Mines, Industry Regulation and Safety ("DMIRS") in March 2021.

Previously Reported Information

This report includes information that relates to Exploration Results, Mineral Resources, Ore Reserves prepared and first disclosed under the JORC Code (2012). The information was extracted from the Company's previous ASX releases as follow:

• MRC 2020 ANNUAL MINERAL RESOURCE AND ORE RESERVES STATEMENT, 26 February 2021

• HIGH GRADE DRILLING RESULTS AT TORMIN INLAND STRANDS, 25 May 2021

• COMMENCEMENT OF DECLINE MINING AT TRÆLEN GRAPHITE MINE, 11 June 2021

• HIGH GRADE DRILLING RESULTS AT TRÆLEN GRAPHITE MINE, 20 July 2021

• JUNE 2021 HALF- YEAR RESULTS, 30 August 2022

• HIGH GRADE RESULTS CONTINUE FROM TRÆLEN GRAPHITE MINE, 08 September 2021

• MRC TO FORM A EUROPEAN, SUSTAINABLE GRAPHITE BUSINESS– “ASCENT GRAPHITE”, 05 October 2021

• MAIDEN ORE RESERVE AND 92% INCREASE IN MEASURED AND INDICATED RESOURCES AT TRÆLEN, 16 November 2021

• SIGNIFICANT INCREASE IN TORMIN INLAND STRANDS’ MINERAL RESOURCES, 07 December 2021

• QUARTERLY ACTIVITIES REPORT-DECEMBER 2022, 31 January 2022

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Appendix 1

Tormin Beaches Mineral Resource

A summary of annual mineral resource audit and JORC Table 1 is provided below:

Geology and Geological Interpretation

The Tormin Beaches deposit is located on the western coastal plain of South Africa. It is a heavy mineral sand deposit located on an active placer beach strandline undergoing continuous erosion, deposition and replenishment from oceanic storm and wave activity. The western coastal plain of South Africa embraces a significant resource of detrital heavy minerals by world standards.

The heavy mineral sand deposits occur in an active beach environment as well as in older palaeo-beach raised strandlines. Being a placer beach sand deposit, there is no geological structure either relevant or applicable. The Neogene deposits are host to the commercially important diamondiferous and valuable heavy mineral sands (“HMS”) including zircon, rutile, anatase, ilmenite, garnet, and magnetite.

Drilling Techniques and Hole Spacing

The drilling program was designed on a 50m x 20m grid to delineate a JORC Code (2012) Mineral Resource Estimate annual audit for the Tormin Beaches. A total of 269 vertical drillholes (544m) spaced out on a regular 50m x 20m grid were drilled by a hydraulic auger in eight mining ramps (beaches). The auger drill rods were 110mm in diameter and 1m long. Areas with drilling spaced 50m x 25m apart and less are classified as Measured and areas drilled with wider spacing classified as Indicated. Good reconciliation of previous model to material mined has given confidence that this is appropriate classification.

Sampling and Sub-sampling Techniques

1m auger drill samples were collected and delivered in a plastic sleeve at an average of ~3 kg per sample. Samples were submitted directly to the Tormin mine laboratory to be analysed for heavy minerals. Each sample was homogenised by rotating it within the bag and was riffled. 200g of samples were split to use for heavy liquid separation (“HLS”) using tetrabromoethane (“TBE”) to define Total Heavy Minerals (“THM”) content. Lab duplicate samples were split for the Tormin mine laboratory for QA/QC checks.

Sample Analysis Method

A total of 556 samples were assayed. All samples were analysed at the Company’s onsite HLS lab using TBE with Panalytical Aeris XRD machines (the Rietveld method after HLS) in an automated mode setup for mineral assays, and industrial laboratory XRF (Panalytical Epsilon 3 ED) for zircon content. The Company completes its own internal QA/QC using certified

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reference material and blank samples at the rate of approximately 1 in 50 samples and sends every 20th sample to third party external laboratories. QEMSCAN test work by SGS was used for determination of the heavy mineral assemblage.

Estimation Methodology

Mineral Resource estimation involved the use of drillhole data and geology/topography to construct three-dimensional wireframes to define mineralised domains. Micromine software was used to domain and estimate each of the Valuable Heavy Minerals (“VHM”). Domains were snapped to the nearest true intersection from sampling and assays were composited to 0.5m, within domains, with composite lengths redistributed to avoid residuals. Data is extrapolated between data points and beyond approximately half of the drill spacing. Ordinary kriging was used as the primary estimator for THM and VHM values. A parent block size of 25m x 5m x 0.5m reflects the geometry of the mineralised domains, with up to 4 sub-blocks in each direction.

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Figure 1 - Resource Classifications on Tormin Beaches mining

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Figure 2 - Oblique cross-section at ramp 8, looking northwest showing good correlation between raw THM assay data and Kriged estimate

Cut-off Grades

A 2% THM cut-off grade is based on the economic criteria established by the ongoing mining operations, and it was applied to any mineralised exploration intersections and final resource reporting, as this is the current minimum grade where there is a reasonable expectation for eventual extraction. The 2% cut-off grade is based on grade-tonnage curves with respect to THM and VHM.

Mining and Metallurgical Methods and Parameters

Typical open-pit mining is undertaken utilising excavators and articulated dump trucks. The pits generally only remain open during low tide, except where beach conditions allow the construction of protective bunding. There is no stripping as mining starts at the surface and natural replenishment of the resource takes place as the open pits fill with HMS material generated from tidal action and wave energy dynamics. Metallurgical factors are derived from the processing data generated from seven years of profitable mining at Tormin Beaches. As the mine is an ongoing profitable concern, there are no doubts about the metallurgical suitability of the mined material.

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JORC TABLE 1 The Tormin Beaches Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections)

Criteria	JORC Code Explanation	Commentary
• Sampling techniques	• Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling. • Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used. • Aspects of the determination of mineralisation that are Material to the Public Report. In cases where ‘industry standard’ work has been done this would be relatively simple (eg ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information.	• The current resource audit is based on 269 auger holes, representing 544m of vertical drilling, and 556 analysed samples. • Sample taken from surface to bedrock. • Mineralisation and grade testwork done according to mine control standards within Tormin mine site laboratory. XRF, HLS and XRD. • 1m auger drill samples were collected in ~3kg plastic bags. • Samples were submitted directly to the Tormin mine laboratory to be analysed for heavy minerals. • The laboratory sample was dried and screened. • 200g of samples were split to use for HLS using TBE with density range between 2.92 and 2.96g/ml to define THM content. • Grade estimations are compared monthly with the grades encountered during mining with good correlation.
• Drilling techniques	• Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face- sampling bit or other type, whether core is oriented and if so, by what method, etc).	• Hydraulic augers, produced by Christie Engineering in Australia, were used to obtain samples. Auger drilling is an acceptable drilling method for shallow beach Heavy Mineral deposits like Tormin. • The auger is a 110mm open hole drilling technique. • Drill rods are 1m long. • The auger drilling utilised open hole method and drilling is governed by the auger drilling guideline to ensure consistency in the application of the method. • All holes were drilled vertically.

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Criteria	JORC Code Explanation	Commentary
• Drill sample recovery	• Method of recording and assessing core and chip sample recoveries and results assessed. • Measures taken to maximise sample recovery and ensure representative nature of the samples. • Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.	• Metric samples from the auger were taken and riffled down to a representative sample for heavy liquid separation, XRF and XRD. • The auger sample recoveries are estimated from the volume of the sample recovered. • The interval 1m is carefully drilled to maximise sample recovery. No significant losses of samples were observed due to the very shallow holes. • There is potential for contamination in open hole drilling, but sample bias is not likely due to the shallow drillhole depths.
• Logging	• Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies. • Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography. • The total length and percentage of the relevant intersections logged.	• Each hole was logged by a geologist on pre- printed log sheets. • Geological and lithological observations per depth were recorded together with field sections and hand drawn down-the-hole logs. • Special attention was given to visual heavy minerals as a guide to potential marine deposits. • Marine gravels and contact with basement bedrock recorded as maximum depth of mineralisation.
• Sub-sampling techniques and sample preparation	• If core, whether cut or sawn and whether quarter, half or all core taken. • If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry. • For all sample types, the nature, quality and appropriateness of the sample preparation technique. • Quality control procedures adopted for all sub- sampling stages to maximise representivity of samples. • Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling. • Whether sample sizes are appropriate to the grain size of the material being sampled.	• Each sample was homogenised and was riffled. • Samples were mostly wet from sea ingress/seepage. • Sampling over 1m down-the-hole intervals as determined by 1m marks. • Lab duplicate samples were split for the Tormin mine laboratory for QA/QC checks.
• Quality of assay data and	• The nature, quality and appropriateness of the assaying and laboratory procedures used and	• All sample analyses were undertaken by the Tormin mine laboratory.

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Criteria	JORC Code Explanation	Commentary
laboratory tests	whether the technique is considered partial or total. • For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc. • Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.	• No geophysical, portable XRF, etc instrum- ents were used. • The mine owns and operates a HLS lab with Panalytical Aeris XRD machines (the Rietveld method after HLS) in an automated mode setup and industrial laboratory XRF (Panalytical Epsilon 3 ED) for zircon content. • The Tormin mine laboratory completes its own internal QA/QC using certified reference material (“CRM”) at the rate of approximately 1 in 50 and sending every 20th sample to the external labs. • External sampling checks for XRD have been undertaken by XRD Analytical and Consulting (10 samples) and 5 samples for XRF by UIS Analytical Services (accredited laboratory), both in Pretoria. • The CRMs, blank and duplicate sample results are within accepted limits. • QEMSCAN test work by SGS was used for determination of the mineral assemblage.
• Verification of sampling and assaying	• The verification of significant intersections by either independent or alternative company personnel. • The use of twinned holes. • Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols. • Discuss any adjustment to assay data.	• All samplings were undertaken by a consultant geologist, overseen by a qualified and experienced mine geologist. • All sample preparation was undertaken by qualified staff, supervised by chemists and the laboratory manager. • The lab results and logging have been reviewed by external consultant to MSR as well as internally by MRC’s Exploration Manager. • 14 twinned holes drilled and represented good correlation. • The drillhole logs have been converted to electronically stored formats and stored in a database provided by Maxwell Geoservices (Webshed). This database is hosted on an offsite server supplied by Maxwell Geoservices and managed by their trained database staff. • No adjustment to assay data results was made outside the standard XRD and XRF calibration software being used.

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Criteria	JORC Code Explanation	Commentary
• Location of data points	• Accuracy and quality of surveys used to locate drillholes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation. • Specification of the grid system used. • Quality and adequacy of topographic control.	• Hole collar locations were determined with DGPS, accurate to within centimetres. • Down hole surveys for very shallow vertical holes are not required. • WGS 84 datum and UTM/zone 34S coordinate system is used. • Topographical control is highly problematic due to constant changes in surface levels after daily high tides and monthly storm events, which average 10 events per month.
• Data spacing and distribution	• Data spacing for reporting of Exploration Results. • Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied. • Whether sample compositing has been applied.	• Target sampling point is on a 50m x 20m average spacing, subject to beach access due to tides. • 50 x 20m drilling is sufficient to classify the beach HMS as Measured Resources due to the nature of mineralisation. • Data spacing is sufficient for an Inferred and Measured resource classification on a resource that has been mined over the past seven years.
• Orientation of data in relation to geological structure	• Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type. • If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.	• Geological structure neither relevant nor applicable to an active placer beach sand deposit. • Vertical drilling to intersect sub-horizontal strata. • Orientation of the drillholes will not result in sampling bias.
• Sample security	• The measures taken to ensure sample security.	• All sample bag numbers were logged against the drillhole by the site geologist. • Two samples per metre drilled were produced, one for external QA/QC use or back-up and one sent directly to the mine lab at the end of each day’s drilling in a secure area. • The Tormin mine laboratory inspected the submitted samples and did not report any missing, nor any error of the samples against the sample lists.
• Audits or reviews	• The results of any audits or reviews of sampling techniques and data.	• The lab results and logging have been reviewed by external consultants to MSR and internally as part of normal validation processes byMRC.

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Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section)

Criteria	Explanation	Commentary
• Mineral tenement and land tenure status	• Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings. • The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.	• The resource is owned by Mineral Sands Resources (Pty) Ltd, a subsidiary of ASX listed Mineral Commodities Ltd (ASX: MRC). • The resource is being mined under two active mining rights 30/5/2/2/2/10107 & 10108. • The mining rights were renewed in August 2019 for an additional 10 years, up to 22 August 2029.
• Exploration done by other parties	• Acknowledgment and appraisal of exploration by other parties.	• The general area has been investigated and mined for heavy mineral deposits as far back as the 1930s (Haughton, 1931). Subsequent geological surveys and exploration programs investigated the distribution, mineralogy and economic potential of the HMS along the coastline of Geelwal Karoo (Toerien & Groeneveld 1957, Abele 1989, Swart 1990, Barnes 1998) and Trans Hex 1989-1991). • A definitive feasibility study on the deposit was done in 2006 by K’Enyuka and a BFS study review by HBH consultants.
• Geology	• Deposit type, geological setting and style of mineralisation.	• Deposit is a HMS deposit located on an active placer beach strandline undergoing continuous erosion, deposition and replenishment from oceanic storm and wave activity. • The HMS deposits occur in an active beach environment as well as in older palaeo- beach raised strandlines found inland. • Apart from the mid-Jurassic, Cretaceous and Tertiary (Paleogene) sediments along the coast, numerous small fossiliferous, marine and terrestrial deposits of Neogene age outcrop along the coastal zone. • The Neogene deposits are host to the commercially important diamondiferous and heavy mineral sands.
• Drillhole Information	• A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drillholes:	• The minimum hole length is 1m, maximum 3.5m and average depth of drilling is 2 metres.

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	Criteria	Explanation	Commentary	Commentary
		• Easting and northing of the drillhole collar • elevation or RL (Reduced Level – elevation above sea level in metres) of the drillhole collar • dip and azimuth of the hole • down hole length and interception depth • hole length. • If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.	• East collar ranges – 219,954mE to 226,547mE. • North collar ranges – 6,501,624mN to 6,509,394mN. • Azimuth ranges/dip ranges – vertical drilling.
•	Data aggregation methods	• In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated. • Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail. • The assumptions used for any reporting of metal equivalent values should be clearly stated.	• Not relevant. • No grade cutting of HM values was undertaken. • No metal equivalents were used for reporting of Mineral Resources.
•	Relationship between mineralisation widths and intercept lengths	• These relationships are particularly important in the reporting of Exploration Results. • If the geometry of the mineralisation with respect to the drillhole angle is known, its nature should be reported. • If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg ‘down hole length, true width not known’).	• Grade over total depth sample was determined as the resource is mined and processed from surface to bedrock contact, where all grades were above the 2% aggregation cut-off. • Mineralisation is enriched sedimentary layers semi-parallel to the bedrock contact and beach slope angle. • Mineralisation is essentially flat laying, and as such, vertical drillholes represent true width.
•	Diagrams	• Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drillhole collar locations and appropriate sectional views.	• Plan view of area sampled along the coastal cliff line is provided in this report.
•	Balanced reporting	• Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high	• Statistics of drillhole grades used during the Mineral Resource estimate are contained in the main body of this report.

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Criteria	Explanation	Commentary
	grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.	• This report provides the total information available to date and is considered to represent a balanced report.
• Other substantive exploration data	• Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.	• Grade correlation indicates a resource progressively lowering in grade and volume as replenishment is slower than the current mining rate.
• Further work	• The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling). • Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.	• Planned quarterly drilling for replenishment study. • Offshore sampling to determine the source of grade replenishment is planned.

Section 3 Estimation and Reporting of Mineral Resources

(Criteria listed in section 1, and where relevant in section 2, also apply to this section)

Criteria	JORC Code explanation	Commentary
Database integrity	• Measures taken to ensure that data has not been corrupted by, for example, transcription or keying errors, between its initial collection and its use for Mineral Resource estimation purposes. • Data validation procedures used.	• The data was plotted and plots were as expected, with no misplots or extraneous data found. Maximum and minimum values and average values were all within the norm. Duplicate values were confirmed as such. The coordinates were confirmed as being WGS84 UTM zone 34S. • Data is stored in an offsite database hosted by Maxwell Geoservices.
Site visits	• Comment on any site visits undertaken by the Competent Person and the outcome of those visits. • If no site visits have been undertaken indicate why this is the case.	• The Competent Person is currently a full- time employee of Mineral Commodities Ltd. • No site visits were undertaken for this annual resource estimate due to COVID-19 travel bans, although the Competent Person did visit the project previously and is familiar with the site and resource conditions.
Geological interpretation	• Confidence in (or conversely, the uncertainty of) the geological interpretation of the mineral deposit. • Nature of the data used and of any assumptions	• The deposit is a classic active mineral sands deposit with no doubt as to its genesis.

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Criteria	JORC Code explanation	Commentary
	made. • The effect, if any, of alternative interpretations on Mineral Resource estimation. • The use of geology in guiding and controlling Mineral Resource estimation. • The factors affecting continuity both of grade and geology.	• The geology/topography of the deposit has been used to constrain the resource envelope. The data was partitioned into areas (subsets) based on geology/topography. The base of the deposit is defined by the underlying bedrock, the landward side by a sea-facing cliff. The deposit is open seaward. • Grade continuity is influenced by wave action and hence is best parallel to the beachfront. Replenishment and re-working of resources limits continuity and reliability of localised mining blocks. • Targeting higher grade replenishment material throughout the year increases the overall mined grade. The average THM mined grade during 2021 was 19% and 9.6% VHM.
Dimensions	• The extent and variability of the Mineral Resource expressed as length (along strike or otherwise), plan width, and depth below surface to the upper and lower limits of the Mineral Resource.	• The deposit has a strike length along the coastline of approx. 10,000m and an average width from the cliff to within the surf zone of 60m. The mining width in 2021 varied from 20-60m and averaged about 35m. It is developed from surface to a maximum depth of 4m (originally 6.25m). The deposit occurs from the surface down.
Estimation and modelling techniques	• The nature and appropriateness of the estimation technique(s) applied and key assumptions, including treatment of extreme grade values, domaining, interpolation parameters and maximum distance of extrapolation from data points. If a computer assisted estimation method was chosen include a description of computer software and parameters used. • The availability of check estimates, previous estimates and/or mine production records and whether the Mineral Resource estimate takes appropriate account of such data. • The assumptions made regarding recovery of by-products. • Estimation of deleterious elements or other non- grade variables of economic significance (eg sulphur for acid mine drainage characterisation). • In the case of block model interpolation, the block size in relation to the average sample spacing and the search employed.	• Micromine software was used to domain and estimate each of the valuable heavy minerals. Domains were snapped to the nearest true intersection from sampling. • Assays were composited to 1m, within domains, with composite lengths redistributed to avoid residuals. • No outlier restriction has been applied. • Data is extrapolated between data points and approximately half of the drill spacing beyond. Data points are nominally 50m x 25m. There are between 2-4 drillholes per line. • Ordinary kriging was used as the primary estimator. • An anisotropic search was used, with the ratios of direction of greatest continuity (along the beach); across the continuity: depth of 3: 0.4: 0.02. The direction of greatest continuity is on an azimuth of 320 degrees.

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Criteria	JORC Code explanation	Commentary
	• Any assumptions behind modelling of selective mining units. • Any assumptions about correlation between variables. • Description of how the geological interpretation was used to control the resource estimates. • Discussion of basis for using or not using grade cutting or capping. • The process of validation, the checking process used, the comparison of model data to drillhole data, and use of reconciliation data if available.	• A maximum search distance of 100m was used, based on the ranges of the variograms, and halved to account for potential local variation due to the low number of samples on each beach. Quadrant searching was used, with a maximum points per sector of 15. Minimum points to estimate a block were 3. • The current 2021 Resource grade and tonnage has decreased from the previous (2020) Resource. • All products mentioned in the text are being actively mined and separated in the plant. No deleterious minerals are known. • Geology/topography was used to constrain the model. On the landward side, the sand dunes and cliffs were used to limit the model to the beach area. The model was truncated by the seaward edge of dry beach between low and high tides. • The THM standard deviation of %THM in the block model is 5.47. • These values are acceptable as they indicate the modelling algorithm produces realistic values within the range of the dataset. In addition, an in-depth validation process was used to test robustness of the modelled data, including visual checks, check estimates (IDW and NN), swath plots and detailed statistical comparisons.
Moisture	• Whether the tonnages are estimated on a dry basis or with natural moisture, and the method of determination of the moisture content.	• The resource tonnages are estimated on a dry basis. Mined material is wet and fully saturated when mined out, but it is free draining when stockpiled.
Cut-off parameters	• The basis of the adopted cut-off grade(s) or quality parameters applied.	• Final report was based on a 2% THM cut-off grade for blocks as this is the current minimum grade where there is a reasonable expectation for eventual extraction. • 2% cut-off grade was based on grade- tonnage curves with respect to THM and VHM assemblage. Also taken into account were current and anticipated plant performance and other similarly sized deposits in the region.
Mining factors or assumptions	• Assumptions made regarding possible mining methods, minimum mining dimensions and internal(or, if applicable, external) mining	• The dynamic beach environment results in a cyclic process of deposition on and erosion of the beach surface. Historical studies by

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Criteria	JORC Code explanation	Commentary
	dilution. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider potential mining methods, but the assumptions made regarding mining methods and parameters when estimating Mineral Resources may not always be rigorous. Where this is the case, this should be reported with an explanation of the basis of the mining assumptions made.	Trans Hex have found a weighted average change over 9 months of up to ~9% loss or up to ~7% increase. This variability is also evident in the replenishment rate and grade of material observed. • Opencast mining uses coffer type dams constructed with excavators. The pits generally only remain open during low tide, except where beach conditions allow larger, more stable protective bunding to be constructed. Construction and mining methods are similar to those being used for beach diamond mining along the west coast of South Africa. • There is no stripping as mining starts at the surface. • Natural replenishment of the resource is taking place as the open pits are filled with HMS material from the surf zone during the next high tide. • In general, it appears that replenishment is erratic and unpredictable. Replenishment appears to be mainly a function of time and the number of sea storm events. Given enough time between mining events, the resource is currently still replenishing, although the long-term trend is a significant lowering in grade. • The overall lowering of the beach surface (due to mining) has resulted in the faster movement of large volumes of material between the beach and the surf zone than before mining started. • Since commencement of the operation, over 15 million tonnes have been mined. • Over the past 7 years, some mining blocks have been mined up to 30 times. • MRC has planned to stop mining the Tormin Beaches for a year or two, commencing mid- 2022, to maximise replenishment characteristics during the alternating periods of non-mining.
Metallurgical factors or assumptions	• The basis for assumptions or predictions regarding metallurgical amenability. It is always necessary as part of the process of determining reasonable prospects for eventual economic	• As the mine is an ongoing profitable concern, there are no doubts about the metallurgical suitability of the mined material.

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Criteria	JORC Code explanation	Commentary
	extraction to consider potential metallurgical methods, but the assumptions regarding metallurgical treatment processes and parameters made when reporting Mineral Resources may not always be rigorous. Where this is the case, this should be reported with an explanation of the basis of the metallurgical assumptions made.	• The most recent studies are: - 2020 Tormin Expansion projects- implementation strategy by MinSol Engineering - 2015 Magnetic Mineral Separation plant study by MSP Engineering - 2015 Integrated Mineral Separation Plant by MSP Engineering • Any changes that MRC undertake have not been quantified or assumed to change the product specifications.
Environmental factors or assumptions	• Assumptions made regarding possible waste and process residue disposal options. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider the potential environmental impacts of the mining and processing operation. While at this stage the determination of potential environmental impacts, particularly for a greenfield project, may not always be well advanced, the status of early consideration of these potential environmental impacts should be reported. Where these aspects have not been considered this should be reported with an explanation of the environmental assumptions made.	• There is a 10m stability buffer zone between the coastal cliffs and the beach where no mining is allowed. • All mining voids get naturally filled with beach sand material during high tide and there is therefore no rehabilitation liability in this regard. • Tailings get dumped onto the beach where they are distributed and settled along the coastline under natural wave and sea current action. There are no pollutants introduced with the tailings and the material is inert.
Bulk density	• Whether assumed or determined. If assumed, the basis for the assumptions. If determined, the method used, whether wet or dry, the frequency of the measurements, the nature, size and representativeness of the samples. • The bulk density for bulk material must have been measured by methods that adequately account for void spaces (vugs, porosity, etc), moisture and differences between rock and alteration zones within the deposit. • Discuss assumptions for bulk density estimates used in the evaluation process of the different materials.	• The bulk density is based on a calculation of the specific gravity of the silica and heavy mineral content fractions of each sample. It is therefore not fixed and fluctuates between 1.66 and 2.19 as per the formula: SG=1.65+(0.009 x HM). • Bulk density measurements (compacted and uncompacted) are conducted for approximately every 20th sample and moisture content analysed for all samples. Density measurements were taken on 27 samples and give an overall measured bulk density of 1.77t/m3.
Classification	• The basis for the classification of the Mineral Resources into varying confidence categories. • Whether appropriate account has been taken of all relevant factors (i.e. relative confidence in tonnage/grade estimations, reliability of input data, confidence in continuity of geology and metal values, quality, quantity and distribution of the data). • Whether the result appropriately reflects the	• The Mineral Resources have been classified as the Measured, Indicated, and Inferred Categories, in accordance with the 2012 Australasian Code for Reporting of Mineral Resources and Ore Reserves (JORC Code). • The original resource classification was an Indicated Resource (2013).

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Criteria	JORC Code explanation	Commentary
	Competent Person’s view of the deposit.	• A review of the resource during 2014-2017 by Mr du Toit of AEMCO resulted in the resource being downgraded into an Inferred category due to the impact from mining and replenishment. • Tormin mineral resource audit 2018 by Mr Brockman of Geoinfo (DBGEOINFO) and a 2019 audit by Mr Rashidi (MRC) have classified in Inferred category. The mineral resource audits 2018 and 2019 were based on vertical channel composite sampling within exploration pits (composite grade) and could not be assumed to a level higher than inferred. In addition, due to the ongoing removal of heavy mineral material via mining in these years, the release of depleted tailings to the beachfront and the irregular and incomplete replacement of mined material during replenishment, there was a gradual decrease in the amount of the resource as well as in the grade of THM and each of the separate extracted heavy minerals. Because of these factors, only an Inferred Resource was reported. • A dense drilling carried out for Tormin mineral resource audit 2020 and Measured, Indicated, and Inferred classification has been reported for the first time (MRC). • An appropriate drilling in all mining ramps (beaches) was carried out in December 2021 for the resource audit. • A range of criteria has been considered in determining this classification including: - Geological continuity: o Areas where bedrock outcrops locally and breaks up the beach sands have been downgraded in classification. - Drillhole spacing: o Areas with drillhole spacing at the target spacing of 50m x 25m have been classified as Measured. o All other areas classified as Indicated. o No areas are classified as Inferred, due to the regular close spaced drilling across all beaches. • The results of the validation of the block model show acceptable correlation of the input data to the estimated grades.

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Criteria	JORC Code explanation	Commentary
		• The author is confident that all relevant factors have been considered and the results reflect his views.
Audits or reviews	• The results of any audits or reviews of Mineral Resource estimates.	• The Mineral Resource has been reviewed internally as part of normal validation processes by MRC.
Discussion of relative accuracy / confidence	• Where appropriate a statement of the relative accuracy and confidence level in the Mineral Resource estimate using an approach or procedure deemed appropriate by the Competent Person. For example, the application of statistical or geostatistical procedures to quantify the relative accuracy of the resource within stated confidence limits, or, if such an approach is not deemed appropriate, a qualitative discussion of the factors that could affect the relative accuracy and confidence of the estimate. • The statement should specify whether it relates to global or local estimates, and, if local, state the relevant tonnages, which should be relevant to technical and economic evaluation. Documentation should include assumptions made and the procedures used. • These statements of relative accuracy and confidence of the estimate should be compared withproduction data, where available.	• The updated global resource is made of 6 local resources distributed along the beachfront. Each of the 6 local resources (mining ramps) can be mined separately. • By the end of 2021, over 15Mt of material has been mined. After three years of production, the mined THM grade starts to decline significantly. This suggests that the presently mined materials are largely replenishment materials. • An in-depth geostatistical study has been completed on this resource, in the previous model update, which has allowed for robust estimation and high levels of confidence in the resource.

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Appendix 2

Northern Beaches Mineral Resource

A summary of annual mineral resource audit and JORC Table 1 is provided below:

Geology and Geological Interpretation

Located on the western coastal plain of South Africa, the Northern Beaches deposit is a heavy mineral sand deposit located on an active placer beach strandline undergoing continuous erosion, deposition and replenishment from oceanic storm and wave activity.

The heavy mineral sand deposits occur in an active beach environment as well as in older palaeo-beach raised strandlines. The Neogene deposits are host to the commercially important diamondiferous and heavy mineral sands (zircon, rutile, anatase, ilmenite, garnet, leucoxene and magnetite).

Drilling Techniques and Hole Spacing

A total of 130 vertical aircore drillholes (345.5m) spaced out on a regular 50m x 25m grid were drilled at Beaches 7 and 10 by a hydraulic auger. The auger drill rods were 110mm in diameter and 1m long. The other beaches (1, 2, 3, 4, 5, 6, 8 and 9) has not been mined since Mineral Resources reported in 2020. Areas with drilling spaced 50m x 25m apart are classified as Measured and areas drilled with wider spacing classified as Indicated.

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Figure 1 – New drillholes in the mined-out area at beach 10 (December 2021) which has since replenished

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Sampling and Sub-sampling Techniques

1m auger drill samples were collected, and samples delivered/extruded in a plastic sleeve at an average of 3kg per sample. Sample lengths were labelled with a permanent marker including the hole identification and depth recorded on the first and last metre samples. The sample lengths were measured with the ratio split over the total length of flight into 1m lengths.

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Figure 2 – Holes showing scaled highest assay at beach 7

Sample Analysis Method

A total of 359 samples were assayed. All samples were analysed at the Company’s on-site heavy liquid separation lab (“HLS”) using tetrabromoethane (“TBE”) with Panalytical Aeris XRD machines (the Rietveld method after HLS) in an automated mode setup for mineral assays, and industrial laboratory XRF (Panalytical Epsilon 3 ED) for zircon content. The Company completes its own internal QA/QC using certified reference material at the rate of approximately 1 in 50 samples and sends every 20th sample to third party external laboratories.

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Figure 3 - Section at 6519535 mE, looking north comparing composite sample and kriged block THM grades in Beach 7

Estimation Methodology

Mineral Resource estimation involved the use of drillhole, test pit data and geology/topography to construct three-dimensional wireframes to define mineralised domains. Micromine software was used to domain and estimate each of the Valuable Heavy Minerals (“VHM”). Domains were snapped to the nearest true intersection from sampling, and assays were composited to 1m, within domains, with composite lengths redistributed to avoid residuals. Data is extrapolated between data points and beyond approximately half of the drill spacing. Ordinary kriging was used as the primary estimator for THM and VHM values. Where slope of regression is greater than 0.9, and previous categories have been met, the final resource has been classified as Measured. In blocks with slope between 0.7 and 0.9, even if other criteria have been met for higher classification, the resource has been classified as Indicated. Where slope is less than 0.7, even if other criteria have been met for higher classification, the resource has been classified as Inferred. Three separate block models were created, all with the same attributes, one for each. A block size of 25m x 25m x 1m reflects the geometry of the mineralised domains.

Cut-off Grades

A 2% THM cut-off grade is based on the economic criteria established by the ongoing mining operations, and it was applied to any mineralised exploration intersections and final resource reporting, as this is the current minimum grade where there is a reasonable expectation for eventual extraction. The 2% cut off grade is based on grade-tonnage curves with respect to THM and VHM assemblage.

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Figure 4 - Resource Classifications on Beach 10

Mining and Metallurgical Methods and Parameters

Typical open-pit mining is practised with excavators and articulated dump trucks. The pits generally only remain open during low tide, except where beach conditions allow the construction of protective bunding. Mining starts from surface and natural replenishment of the resource takes place as the open pits fill with HMS material generated from tidal action and wave energy dynamics. Metallurgical factors are derived from the current processing data generated from over seven years of mining at Tormin Beaches. The metallurgical processing characteristics of the Northern Beaches material are similar to the Tormin Beach deposits.

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JORC TABLE 1 The Northern Beaches

Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections)

Criteria	JORC Code Explanation	Commentary
• Sampling techniques	• Nature and quality of sampling (eg cut channels, random chips or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling. • Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used. • Aspects of the determination of mineralisation that are Material to the Public Report. In cases where ‘industry standard’ work has been done, this would be relatively simple (eg ‘reverse circulation drilling was used to obtain 1m samples from which 3kg were pulverised to produce a 30g charge for fire assay’). In other cases, more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information.	• The current resource audit is based on 130 auger holes, representing 345.5m of vertical drilling, and 359 analysed samples. • Sample taken from surface to bedrock. • Mineralisation and grade testwork done according to mine control standards within Tormin mine site laboratory, XRF, heavy liquid separation and XRD. • 1m auger drill samples were collected in ~3kg plastic bags. • Samples were submitted directly to the Tormin mine laboratory to be analysed for heavy minerals. • The laboratory sample was dried and screened. • 200g of samples were split to use for HLS using TBE with density range between 2.92 and 2.96g/ml to define THM content. • Grade estimations are compared monthly with the grades encountered during mining with good correlation.
• Drilling techniques	• Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Banka, sonic) and details (eg core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method).	• Hydraulic augers, produced by Christie Engineering in Australia, were used to obtain samples. Auger drilling is an acceptable drilling method for shallow beach Heavy Mineral deposits like Northern Beaches. • The auger is a 110mm open hole drilling technique. • Drill rods are 1m long. • The auger drilling utilised open hole method and drilling is governed by the auger drilling guideline to ensure consistency in the application of the method. • All holes were drilled vertically.

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Criteria	JORC Code Explanation	Commentary
• Drill sample recovery	• Method of recording and assessing core and chip sample recoveries and results assessed. • Measures taken to maximise sample recovery and ensure representative nature of the samples. • Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.	• Metric samples from the auger were taken and riffled down to a representative sample for heavy liquid separation, XRF and XRD. • The auger sample recoveries are estimated from the volume of the sample recovered. • The interval 1m is carefully drilled to maximise sample recovery. No significant losses of samples were observed due to the very shallow holes. • There is potential for contamination in open hole drilling, but sample bias is not likely due to the shallow drillhole depths.
• Logging	• Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies. • Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography. • The total length and percentage of the relevant intersections logged.	• Each hole was logged by a geologist on pre- printed log sheets. • Geological and lithological observations per depth were recorded together with field sections and hand drawn down-the-hole logs. • Special attention was given to visual heavy minerals as a guide to potential marine deposits. • Marine gravels and contact with basement bedrock recorded as maximum depth of mineralisation.
• Sub- sampling techniques and sample preparation	• If core was either cut or sawn and whether quarter, half or all core taken. • If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry. • For all sample types, the nature, quality and appropriateness of the sample preparation technique. • Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples. • Measures taken to ensure the sampling is representative of the in-situ material collected, including for instance, results for field duplicate/second-half sampling. • Whether sample sizes are appropriate to the grain size of the material being sampled.	• Samples were riffled. • Samples were mostly wet from sea ingress/seepage. • Sampling over 1m down-the-hole intervals as determined by 1m marks on the rig mast. • Lab duplicate samples were split for the Tormin mine laboratory for external QA/QC checks.
• Quality of assay data and laboratory tests	• The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.	• All sample analyses were undertaken by the Tormin mine laboratory. • No geophysical, portable XRF etc instruments were used.

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Criteria	JORC Code Explanation	Commentary
	• For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibration factors applied and their derivation, etc. • Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.	• The mine owns and operates a heavy liquid separation lab (“HLS”) with Panalytical Aeris XRD machines (the Rietveld method after HLS) in an automated mode setup and industrial laboratory XRF (Panalytical Epsilon 3 ED) for zircon content. • The Tormin mine laboratory completes its own internal QA/QC using certified reference material (“CRM”) at the rate of approximately 1 in 50 and sending every 20th sample to the external labs. • The CRM, blank and duplicate sample results are within accepted limits. • QEMSCAN test work by SGS was used for determination of the mineral assemblage. The mineral assemblage was determined using a similar method to that developed for the current Tormin beach deposit.
• Verification of sampling and assaying	• The verification of significant intersections by either independent or alternative company personnel. • The use of twinned holes. • Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols. • Discuss any adjustment to assay data.	• All sampling was undertaken by a consultant geologist, overseen by a qualified and experienced mine geologist. • All sample preparation was undertaken by qualified staff, supervised by chemists and the laboratory manager. • The lab results and logging have been reviewed by external consultants to MSR as well as internally by MRC’s Exploration Manager. • 11 twinned holes were created for the commencement of the March-April 2020 drill program. • The drillhole logs have been converted to electronically stored formats and stored in a database provided by Maxwell Geoservices (Webshed). This database is hosted on an offsite server supplied by Maxwell Geoservices and managed by their trained database staff. • No adjustment to assay data results were made outside the standard XRD and XRF calibration software being used.
• Location of data points	• Accuracy and quality of surveys used to locate drillholes (collar and down hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation. • Specification of the grid system used.	• Hole collar locations were determined with DGPS, accurate to within centimetres. • Down hole surveys for shallow vertical holes are not required. • WGS 84 datum and UTM/zone 34S coordinate system is used.

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Criteria	JORC Code Explanation	Commentary
	• Quality and adequacy of topographic control.	• Topographical control is highly problematic due to constant changes in surface levels after daily high tides and monthly storm events, which average 10 events per month.
• Data spacing and distribution	• Data spacing for reporting of exploration results. • Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied. • Whether sample compositing has been applied.	• Target sampling point is on a 50m x 20m average spacing, subject to beach access due to tides. • 50 x 20m drilling is sufficient to classify the beach HMS as Measured Resources due to the nature of mineralisation.
• Orientation of data in relation to geological structure	• Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type. • If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.	• Geological structure neither relevant nor applicable to an active placer beach sand deposit. • Vertical drilling to intersect sub-horizontal strata. • Orientation of the drillholes will not result in sampling bias.
• Sample security	• The measures taken to ensure sample security.	• All sample bag numbers were logged against the drillhole by the site geologist. • Two samples per metre drilled were produced, one for external QA/QC use or back-up and one sent directly to the mine lab at the end of each day’s drilling in a secure area. • The Tormin mine laboratory inspected the submitted samples and did not report any missing, nor error of the samples against the sample lists.
• Audits or reviews	• The results of any audits or reviews of sampling techniques and data.	• The lab results and logging have been reviewed by external consultants to MSR and internally as part of normal validationprocesses byMRC.

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Section 2 Reporting of Exploration Results (Criteria listed in the preceding section also apply to this section)

Criteria	Explanation	Commentary
• Mineral tenement and land tenure status	• Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national parks and environmental settings. • The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.	• The area has a granted Prospecting Right (WC 30/5/1/1/2/10261PR) owned by Mineral Sands Resources (Pty) Ltd, a subsidiary of ASX listed Mineral Commodities Ltd (ASX: MRC). • This Prospecting Right incorporates a semi- continuous tenement approximately 23km in length, covering an area of 398 hectares of beach sands, between the high water mark and the low water mark of the coastal beaches areas adjacent to neighbouring farms (Graauwduinen 152, remainder of Waterbak and portions of farm Klipvley Karookop 153). • The Prospecting Right was granted, executed, and registered with the South African Department of Mineral Resources and Energy (“DMRE”) in January 2020. • Expanded Mining Right (162&163EM) encompassing the Northern Beaches and Inland Strand expansion project was approved by the Department of Mineral Resources - South Africa on 30 June 2020.
• Exploration done by other parties	• Acknowledgment and appraisal of exploration by other parties.	• The general area has been investigated and mined for heavy mineral deposits as far back as the 1930s (Haughton, 1931). Subsequent geological surveys and exploration programs investigated the distribution, mineralogy, and economic potential of the heavy mineral sands along the coastline of Geelwal Karoo (Toerien & Groeneveld 1957, Abele 1989, Swart 1990, Barnes 1998) and Trans Hex 1989-1991). • The feasibility study produced byTrans Hex in June 1992included a defined Inferred mineral resource (non JORC).
• Geology	• Deposit type, geological setting and style of mineralisation.	• Deposit is a heavy mineral sand deposit located on an active placer beach strandline undergoing continues erosion, deposition and replenishment from oceanic storm and wave activity. • The heavy mineral sand deposits occur in an active beach environment (eg Tormin mine) as well as in older palaeo-beach raised strandlines found inland.

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Criteria	Explanation	Commentary
		• Apart from the mid-Jurassic, Cretaceous and Tertiary (Paleogene) sediments along the coast, numerous small fossiliferous, marine and terrestrial deposits of Neogene age outcrop along the coastal zone. • The Neogene deposits are host to the commercially important diamondiferous and heavy mineral sands.
• Drillhole information	• A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drillholes: • Easting and northing of the drillhole collar; • Elevation or “RL” (Reduced Level – elevation above sea level in metres) of the drillhole collar; • Dip and azimuth of the hole; • Down hole length and interception depth; and • Hole length. • If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.	• The minimum hole length is 1m, maximum 4m and average depth of drilling is 2.5 metres. • East collar ranges – 777,551mE to 782,488mE. • North collar ranges – 6,519,350mN to 6,526,091mN. • Azimuth ranges/dip ranges – vertical drilling.
• Data aggregation methods	• In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated. • Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail. • The assumptions used for any reporting of metal equivalent values should be clearly stated.	• Not relevant. • No grade cutting of HM values was undertaken. • No metal equivalents were used for reporting of Mineral Resources.

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Criteria	Explanation	Commentary
• Relationship between mineralisation widths and intercept lengths	• These relationships are particularly important in the reporting of Exploration Results. • If the geometry of the mineralisation with respect to the drillhole angle is known, its nature should be reported. • If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg ‘down hole length, true width not known’).	• Grade over total depth sample was determined as the resource is mined and processed from surface to bedrock contact, where all grades were above the 2% aggregation cut-off. • Mineralisation is enriched sedimentary layers semi-parallel to the bedrock contact and beach slope angle. • Mineralisation is essentially flat laying, and as such, vertical drillholes represent true width.
• Diagrams	• Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported. These should include, but not be limited to, a plan view of drillhole collar locations and appropriate sectional views.	• Maps, sections and plan view are provided in this report.
• Balanced reporting	• Where comprehensive reporting of all exploration results is not practicable, representative reporting of both low and high grades and/or widths should be practised to avoid misleading reporting of exploration results.	• Statistics of drillhole grades used during the Mineral Resource estimate are contained in the main body of this report. • This report provides the total information available to date and is considered to represent a balanced report.
• Other substantive exploration data	• Other exploration data, if meaningful and material, should be reported, including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.	• Grade correlation indicates a resource progressively lowering in grade and volume as replenishment is slower than the current mining rate.
• Further work	• The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling). • Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.	• Offshore sampling to determine the source of grade replenishment is planned. • Planned quarterly drilling for replenishment study.

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3 Estimation and Reporting of Mineral Resources

(Criteria listed in section 1, and where relevant in section 2, also apply to this section)

Criteria	JORC Code explanation	Commentary
Database integrity	• Measures taken to ensure that data has not been corrupted by, for example, transcription or keying errors, between its initial collection and its use for Mineral Resource estimation purposes. • Data validation procedures used.	• The data was plotted, and plots were expected with no misplots or extraneous data found. Maximum and minimum values and average values were all within the norm. Duplicate values were confirmed as such. The coordinates were confirmed as being WGS84 UTM zone 34S. • Data is stored in an offsite database hosted by Maxwell Geoservices.
Site visits	• Comment on any site visits undertaken by the Competent Person and the outcome of those visits. • If no site visits have been undertaken, indicate why this is the case.	• The Competent Person is currently a full-time employee of Mineral Commodities Ltd. • No site visits were undertaken for this resource estimate due to COVID-19 travel bans, although the Competent Person did visit the project previously and is familiar with the site and resource conditions.
Geological interpretation	• Confidence in (or conversely, the uncertainty of) the geological interpretation of the mineral deposit. • Nature of the data used and of any assumptions made. • The effect, if any, of alternative interpretations on Mineral Resource estimation. • The use of geology in guiding and controlling Mineral Resource estimation. • The factors affecting continuity both of grade and geology.	• The deposit is a classic active mineral sands deposit with no doubt as to its genesis. • Samples were collected for resource calculation purposes. • The geology/topography of the deposit has been used to constrain the resource envelope. The data was partitioned into areas (subsets) based on geology/topography. The base of the deposit is defined by the underlying bedrock, the landward side by barren land and sand dunes. Seaward, the deposit is open. • Grade continuity is influenced by wave action and hence is best parallel to the beachfront. Replenishment and reworking of resource limits continuity and reliability of localised mining blocks. • The average THM mined grade during 2021 was 21.6% and 13.5% VHM.
Dimensions	• The extent and variability of the Mineral Resource expressed as length (along strike or otherwise), plan width, and depth below surface to the upper and lower limits of the Mineral Resource.	• The deposit has a strike length along the coastline of approximately 10,850m and an average width from the dunes to within the surf zone of 150m. It is developed from surface to a maximum depth of 6 and the average resource thickness is approximately 2.5m. The deposit occurs from the surface down. • Only beached 7 and 10 has been mined in 2021,the miningwidth varied from 30-80m

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Criteria	JORC Code explanation	Commentary
		and averaged about 40m.
Estimation and modelling techniques	• The nature and appropriateness of the estimation technique(s) applied and key assumptions, including treatment of extreme grade values, domaining, interpolation parameters and maximum distance of extrapolation from data points. If a computer assisted estimation method was chosen, include a description of computer software and parameters used. • The availability of check estimates, previous estimates and/or mine production records and whether the Mineral Resource estimate takes appropriate account of such data. • The assumptions made regarding recovery of by-products. • Estimation of deleterious elements or other non-grade variables of economic significance (eg sulphur for acid mine drainage characterisation). • In the case of block model interpolation, the block size in relation to the average sample spacing and the search employed. • Any assumptions behind modelling of selective mining units. • Any assumptions about correlation between variables. • Description of how the geological interpretation was used to control the resource estimates. • Discussion of basis for using or not using grade cutting or capping. • The process of validation, the checking process used, the comparison of model data to drillhole data, and use of reconciliation data if available.	• Micromine software was used to domain and estimate each of the valuable heavy minerals. Domains were snapped to the nearest true intersection from sampling. • Assays were composited to 1m, within domains, with composite lengths redistributed to avoid residuals. No composite was less than 0.6m or greater than 1.5m. • No outlier restriction has been applied. • Data is extrapolated between data points and approximately half of the drill spacing beyond. Data points are nominally 50m x 20m. There are between 2-6 drillholes per line. • Ordinary kriging was used as the primary estimator. Each variable was estimated separately, using new variograms created for the updated portion of Beach 10, while Beach 7 used variography from the previous Northern Beaches Resource. • An anisotropic search was used, with the ratios of direction of greatest continuity (along the beach). Across the continuity: depth of 3: 0.4: 0.02. A maximum search distance of 100m was used, based on the ranges of the variograms, and halved to account for potential local variation due to the low number of samples on each beach. Quadrant searching was used, with a maximum points per sector of 15. Minimum points to estimate a block were 3. • All products mentioned in the text are being actively mined and separated in the plant. No deleterious minerals are known. • This is a resource estimate and mining parameters are not used beyond normal global parameters of grades, dimensions, and accessibility. • Geology/topography was used to constrain the model. On the landward side, the sand dunes, where present, were used to limit the model to the beach area. Otherwise, the limit was placed at approximately half of the drillhole spacing. The model was truncated by the seaward edge of dry beach between low and high tides.

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Criteria	JORC Code explanation	Commentary
		• The THM standard deviation of % THM in the block model is 12.48 (Beach 10) and 9.15 (Beach 7) • These values are acceptable as they indicate the modelling algorithm produces realistic values within the range of the dataset. In addition, an in-depth validation process was used to test robustness of the modelled data, including visual checks, check estimates (IDW and NN), swath plots and detailed statistical comparisons.
Moisture	• Whether the tonnages are estimated on a dry basis or with natural moisture, and the method of determination of the moisture content.	• The resource tonnages are estimated on a dry basis. Mined material is wet and fully saturated when mined out, but it is free draining when stockpiled.
Cut-off parameters	• The basis of the adopted cut-off grade(s) or quality parameters applied.	• Final report was based on a 2% THM cut-off grade for blocks as this is the current minimum grade where there is a reasonable expectation for eventual extraction. • 2% cut-off grade was based on grade- tonnage curves with respect to THM and VHM assemblage. Also current and anticipated plant performance, and other similarly sized deposits in the region was considered.
Mining factors or assumptions	• Assumptions made regarding possible mining methods, minimum mining dimensions and internal (or, if applicable, external) mining dilution. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider potential mining methods, but the assumptions made regarding mining methods and parameters when estimating Mineral Resources may not always be rigorous. Where this is the case, this should be reported with an explanation of the basis of the mining assumptions made.	• The dynamic beach environment results in a cyclic process of deposition on and erosion of the beach surface. Historical studies by Trans Hex have found a weighted average change over 9 months of up to ~9% loss or up to ~7% increase. This variability is also evident in the replenishment rate and grade of material observed. • Opencast mining uses coffer type dams constructed with excavators. The pits generally only remain open during low tide, except where beach conditions allow larger more stable protection bunding to be constructed. Construction and mining methods are similar to those being used for beach diamond mining along the west coast of South Africa. • There is no stripping as mining starts at the surface. • Natural replenishment of the resource is taking place as the openpits are filled with

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Criteria	JORC Code explanation	Commentary
		HMS material from the surf zone during the next high tide. • MRC intends to stop mining the Northern Beaches for at least one year to maximise replenishment.
Metallurgical factors or assumptions	• The basis for assumptions or predictions regarding metallurgical amenability. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider potential metallurgical methods, but the assumptions regarding metallurgical treatment processes and parameters made when reporting Mineral Resources may not always be rigorous. Where this is the case, this should be reported with an explanation of the basis of the metallurgical assumptions made.	• Metallurgical factors have been taken from the current processing plant. • After seven years of mining in the Tormin Beaches, the mine is an ongoing profitable concern. There are no doubts about the metallurgical suitability of the Northern Beaches material. • Any changes that MRC undertake have not been quantified or assumed to change the product specifications.
Environmental factors or assumptions	• Assumptions made regarding possible waste and process residue disposal options. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider the potential environmental impacts of the mining and processing operation. While at this stage the determination of potential environmental impacts, particularly for a greenfield project, may not always be well advanced, the status of early consideration of these potential environmental impacts should be reported. Where these aspects have not been considered, this should be reported with an explanation of the environmental assumptions made.	• There are no environmental factors likely to affect the assumption that the deposit has reasonable prospects for eventual economic extraction. There is a 10m stability buffer zone between the coastal cliffs (sand dunes) and the beach where no mining is allowed. • All mining voids get naturally filled with beach sand material during high tide and therefore there is no rehabilitation liability in this regard. • Tailings get dumped onto the beach where they are distributed and settled along the coastline under natural wave and sea current action. There are no pollutants introduced with the tailings and the material is inert.
Bulk density	• Whether assumed or determined. If assumed, the basis for the assumptions. If determined, the method used, whether wet or dry, the frequency of the measurements, the nature, size and representativeness of the samples. • The bulk density for bulk material must have been measured by methods that adequately account for void spaces (vugs, porosity, etc), moisture and differences between rock and alteration zones within the deposit. • Discuss assumptions for bulk density estimates used in the evaluationprocess of	• The bulk density is based on a calculation of the specific gravity of the silica and heavy mineral content fractions of each sample. It is therefore not fixed and fluctuates between 1.6 and 2.1 as per the formula: SG=1.544+(0.009 x THM). • In the March-April 2020 drilling program in the Northern Beaches, bulk density measurements (compacted and uncom- pacted) were conducted for 118 sample and moisture content analysed for all samples. Density measurements were taken on 118

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Criteria	JORC Code explanation	Commentary
	the different materials.	samples and gave an overall measured bulk density of 1.752t/m3.
Classification	• The basis for the classification of the Mineral Resources into varying confidence categories. • Whether appropriate account has been taken of all relevant factors (ie relative confidence in tonnage/grade estimations, reliability of input data, confidence in continuity of geology and metal values, quality, quantity and distribution of the data). • Whether the result appropriately reflects the Competent Person’s view of the deposit.	• The Mineral Resources have been classified as the Measured, Indicated, and Inferred categories, in accordance with the 2012 Australasian Code for Reporting of Mineral Resources and Ore Reserves (JORC Code). • The current 2021 Resource grade and tonnage has decreased from the previous (2020) Resource. • All products mentioned in the text are being actively mined and separated in the plant. No deleterious minerals are known. • A range of criteria has been considered in determining this classification including: - Geological continuity: o Areas where bedrock outcrops locally and breaks up the beach sands have been downgraded in classification. - Drillhole spacing: o Areas with drillhole spacing at the target spacing of 50m x 25m have been classified as Measured. o All other areas classified as Indicated. • The results of the validation of the block model shows acceptable correlation of the input data to the estimated grades. • The author is confident that all relevant factors have been considered and the results reflect his views.
Audits or reviews	• The results of any audits or reviews of Mineral Resource estimates.	• The Mineral Resource has been reviewed internally as part of normal validation processes by MRC.
Discussion of relative accuracy / confidence	• Where appropriate, a statement of the relative accuracy and confidence level in the Mineral Resource estimate using an approach or procedure deemed appropriate by the Competent Person. For example, the application of statistical or geostatistical procedures to quantify the relative accuracy of the resource within stated confidence limits, or, if such an approach is not deemed appropriate, a qualitative discussion of the factors that could affect the relative accuracy and confidence of the estimate.	• The global resource is made of 10 local resources distributed along the beach front (Beaches 1-10). Each of the 10 local resources can be mined separately. • The resource update is based on updated MRE for beaches 7 and 10. since December 2020 mineral resource statement, no mining has been done in the other beaches. • By the end of 2021, over 1.49Mt of material has been mined. After one year of production, the mined THM grade starts to decline significantly.

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Criteria	JORC Code explanation	Commentary
	• The statement should specify whether it relates to global or local estimates, and, if local, state the relevant tonnages, which should be relevant to technical and economic evaluation. • These statements of relative accuracy and confidence of the estimate should be compared with production data, where available.	• An in-depth geostatistical study has been completed on this resource, which has allowed for robust estimation and high levels of confidence in the resource.

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