MINERAL COMMODITIES LTD — Capital/Financing Update 2022

Apr 25, 2022

==> picture [419 x 113] intentionally omitted <==

----- Start of picture text -----

ASX RELEASE
26 April 2022
----- End of picture text -----

==> picture [160 x 64] intentionally omitted <==

==> picture [595 x 30] intentionally omitted <==

----- Start of picture text -----

ASX: MRC 26 April 2022
----- End of picture text -----

PRIORITY TARGETS IDENTIFIED AT BUKKEN, HESTEN AND VARDFJELLET GRAPHITE PROSPECTS NEAR SKALAND

• 26 line-kilometres of ultra-high resolution Drone Magnetic and Electromagnetic surveys completed over prospects

• Surface mapping/sampling results and strong geophysical anomalies indicate high prospectivity of Bukken, Hesten and Vardfjellet

• First pass drilling is planned to commence in 2023

Mineral Commodities Ltd (“ MRC ” or “ the Company ”), through its 90% owned subsidiary, Skaland Graphite AS (“ Skaland ”), is pleased to announce exploration results of the Bukken, Hesten, and Vardfjellet graphite prospects, located on the island of Senja, Norway. Skaland is the highest-grade flake graphite operation in the world, largest producing graphite mine in Europe and the only active graphite mine in Scandinavia.

==> picture [405 x 325] intentionally omitted <==

----- Start of picture text -----

Norway
----- End of picture text -----

Figure 1: Graphite occurrences in Senja, underlaid by apparent resistivity from helicopter-borne 7kHz (NGU, 2019).

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

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

Page 1

ASX: MRC ASX: MRC

26 April 2022

==> picture [93 x 25] intentionally omitted <==

The geology and mineralogy of the graphite bearing rocks are very similar to that observed at the Skaland Graphite Mining Operation and Trælen mine. Assay results returned up to 8% TGC at Bukken, 4.8% TGC at Hesten and 26.6% TGC at Vardfjellet. The primary target areas for graphite bearing structures, exhibited in the magnetic anomalies are approximately 500m x 100m at Vardfjellet, 650m x 150m at Hesten, and 300m x 150m at Bukken. Drilling is necessary to better understand the geometry, grades, and tonnage of any mineralisation.

The Company’s Chief Executive Officer and Managing Director, Jacob Deysel commented, “The exploration results of surface sampling and geophysical anomalies are an excellent outcome and present extremely encouraging potential of graphite in these prospects near our Skaland operation. Our business development strategy will continue to explore expanding our resources and reserves, which is aimed to see MRC become the largest integrated graphite anode supplier in Europe. We look forward to continuing unlocking potential from our graphite exploration and mining assets”.

Background

As a part of a broader strategy to secure new graphite deposits and expand future production of critical battery raw materials at Senja in northern Norway, the Company entered into a binding agreement to explore the Bukken prospect in July 2020[1] and Hesten and Vardfjellet prospects in January 2021[2] . The Hesten and Vardfjellet are situated about 4km west of the Bukken exploration prospect and are approximately 15km southeast of MRC’s existing Skaland Graphite Mining Operation.

These prospects are located on the island of Senja, about 50km southwest of Tromso, the nearest major town, with a population of around 65,000. All three prospects were identified by the Geological Survey of Norway (“ NGU ”) through regional helicopter-borne geophysical surveys (Figure 1). Initial sampling, and assaying, was undertaken in 2003, 2016, and again in 2018 by NGU. The Bukken, Hesten, and Vardfjellet prospects have been surveyed using various geophysical techniques numerous times by the NGU since 2012.

Geological Investigation

The Company has reviewed the historical data to commence preliminary surface mapping and sampling at Bukken, Hesten, and Vardfjellet graphite prospects, to determine favoured structures and higher-grade locations.

The graphite mineralisation is hosted by early Proterozoic metamorphism schists and gneisses of the Western Troms Basement Complex. Graphite mineralisation occurs as strongly folded bands of enriched graphitic schist/gneiss within a host of non-graphitic schist/gneiss.

The geology and mineralogy of the graphite bearing rocks are very similar to that observed at the Skaland Graphite Mining Operation and Trælen mine. The target areas are underlain by Proterozoic high grade metamorphic rocks such as gneiss/biotite graphite schist and

1 Refer ASX announcement entitled “HIGHLY PROSPECTIVE GRAPHITE EXPLORATION PROJECT SECURED 20KM FROM SKALAND” dated 15 July 2020.

2 Refer ASX announcement entitled “MRC SECURES TWO ADDITIONAL GRAPHITE PROSPECTS NEAR SKALAND” dated 19 January 2021. ABN 39 008 478 653 info@mncom.com.au Page 2 www.mncom.com.au

ASX: MRC ASX: MRC

26 April 2022

==> picture [121 x 112] intentionally omitted <==

pyrrhotite rich amphibolite and flake graphite were observed in some of the outcrops.

The Bukken prospect has a soil covering most of the lower lying areas and scattered outcrops elsewhere. However, on top of Bukken Mountain, graphite schists are exposed over several hundred metres. The Hesten and Vardfjellet prospects are located along with an NW-SE structure 2.5km apart parallel to the same northwest-southeast structure in which Bukken is situated. The graphite schists on the surface consists of several isolated lenses that are isoclinal folded and refolded. Graphite occurrences generally range in thickness from veinlets to massive lenses more than 1m thick (Figure 4). The individual graphite structures appear to be thicker at depth than indicated at the surface based on geophysical data and the field observations.

The graphite outcrops at Bukken are exposed over an area of 500m x 100m but most of the area is covered by soil and vegetation. Also, the graphite mineralisation has been mapped over 500m x 150m with several graphite zones in Hesten. Outcrops are better exposed at Vardfjellet, with graphitic schist found outcropping over an area of 800m x 200m (Figure 3). Surface mapping has indicated a few individual graphite lenses that can be followed outcropping continuously for up to 100 metres.

==> picture [467 x 389] intentionally omitted <==

----- Start of picture text -----

Vardfjellet
Bukken
Hesten
----- End of picture text -----

Figure 2 - Geological map and sample location of Hesten and Vardfjellet (left), and Bukken (right) prospects in Senia, Norway (modified after NGU).

==> picture [71 x 29] intentionally omitted <==

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

Page 3

ASX: MRC ASX: MRC

26 April 2022

==> picture [93 x 25] intentionally omitted <==

During the field works and preliminary geological mapping, 77 rock chip samples were collected from different graphite schist outcrops in the Bukken, Hesten, and Vardfjellet prospects and were assayed for Total Carbon (“TC”) at the Skaland laboratory (Figure 3 and 4). Over 75% of samples reported a grade higher than 2% TC (58 samples) and have been selected for re-assay at the ALS laboratory in Sweden by LECO furnace and infrared spectroscopy for Total Graphitic Carbon (“TGC”), Total Carbon, and Total Sulphur (“TS”). Assay results returned up to 8% TGC at Bukken, 4.8% TGC at Hesten and 26.6% TGC at Vardfjellet. Results of surface sampling are outlined in Appendix 1.

==> picture [223 x 238] intentionally omitted <==

Figure 3 – Graphite Schist and graphite lenses outcrops (~ 80m long) at Vardfjellet, looking NW; sample EXP-06.

==> picture [468 x 165] intentionally omitted <==

----- Start of picture text -----

8 % TGC
4.8 % TGC
11.6 % TGC
----- End of picture text -----

Figure 4 – Outcropping Graphite Schist at Hesten, sample EXP-28 (left) and at Bukken, sample BM-33 (right).

==> picture [71 x 29] intentionally omitted <==

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

Page 4

ASX: MRC ASX: MRC

26 April 2022

==> picture [121 x 112] intentionally omitted <==

----- Start of picture text -----

UAV
----- End of picture text -----

High Resolution Drone Geophysical Program

The Company has undertaken an ultra-high resolution, Unmanned Aerial Vehicle (“ UAV ’’) magnetic and electromagnetic survey over the Bukken, Hesten, and Vardfjellet graphite prospects in the March quarter 2022. The high-resolution geophysical programme is designed to the requisite detail in the trends of mineralisation and understanding of the structural framework. The program is part of the collaboration with the EU Smart Exploration Project[3] to develop new and more environmentally sensitive exploration technologies.

The UAV magnetic and electromagnetic is a non-invasive and passive survey conducted along the flight lines for 50m traverse line spacing for the magnetic and electromagnetic survey, flying at a height of 40m above ground level and covering an aggregate area of approximately 250 hectares. The detailed survey was conducted with a total of 26 line-kilometres, including 63 survey lines with the line orientation of Northeast-Southwest direction (045/225 degrees) and in-flight sampling at 10m, perpendicular to graphite bearing structure (Figure 5).

The Drone Mag system is configured as an X-8 built octocopter UAV outfitted with a 3-axis fluxgate magnetometer. The average speed was about 5 m/s with a sampling rate 100Hz for magnetometry and 65kHz electromagnetics.

==> picture [455 x 270] intentionally omitted <==

----- Start of picture text -----

Vardfjellet
Bukken
Hesten
----- End of picture text -----

Figure 5- High resolution UAV Electromagnetic and Magnetic Survey flight lines at Bukken in Fjellheim property (Gnr90/Bnr.2), and Hesten and Vardfjellet in Statskog SF property (Gnr124/Bnr.1).

The magnetic data was calibrated and corrected with International Geomagnetic Reference Field (“ IGRF ”), and data was synchronised with GPS Unix timestamp. The magnetic data indicates strong magnetic anomalies were recorded and shown in Total Magnetic Intensity (“ TMI ”) maps. The primary target areas for graphite bearing structures, exhibited in the

3 Refer ASX announcement entitled “MRC TO COLLABORATE WITH EU-FUNDED SMART EXPLORATION PROJECT ON SENJA, NORWAY” dated 14 May 2021.

==> picture [71 x 29] intentionally omitted <==

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

Page 5

ASX: MRC ASX: MRC

26 April 2022

==> picture [93 x 25] intentionally omitted <==

magnetic anomalies are approximately 500m x 100m at Vardfjellet, 650m x 150m at Hesten, and 300m x 150m at Bukken. Magnetic halos at Bukken are open to the north and south and at Hesten to the north (Figure 6a).

The Very Low Frequency (“ VLF ”) method is used for electromagnetic measurements to map graphite units as conductors. Magnetic and VLF electromagnetic systems measure the in phase and quadrature phase components of the vertical magnetic field using the local horizontal magnetic field as a phase reference. Electromagnetic anomalies are delineated conductive structures and covered subsurface conductive geologic materials (graphite and graphite schists) proportional to the magnetic fields. Two horizontal components estimated for two frequencies, in phase and out of phase. The most distinct anomalous zones are located along with an NW-SE trend (Figure 6b) and the strong electromagnetic signatures have the same characteristic responses in all three prospects.

==> picture [71 x 29] intentionally omitted <==

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

Page 6

ASX: MRC ASX: MRC

26 April 2022

Bukken

==> picture [225 x 203] intentionally omitted <==

==> picture [221 x 203] intentionally omitted <==

==> picture [450 x 461] intentionally omitted <==

----- Start of picture text -----

Hesten
Vardfjellet
(a) (b)
----- End of picture text -----

Figure 6 - High resolution Multicopter-borne geoelectromagnetic and geomagnetic anomalies; left (a): Residual Total Magnetic Intensity (nT), right (b): Radio-Electromagnetic VLF (Frequency 24kHz, Transmitter NAA) projected over horizontal gradient magnetic; black lines show high conductivity zones.

==> picture [71 x 29] intentionally omitted <==

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

Page 7

ASX: MRC ASX: MRC

26 April 2022

==> picture [93 x 25] intentionally omitted <==

Results of geophysical surveys underpin geo-structural mapping and sampling outcomes. Geophysical measurements indicate the individual lenses to be electrically connected, restricting the possibility to map the individual size of the graphite lenses. Drilling is necessary to better understand the geometry, grades, and tonnage of any mineralisation. The drone geophysical survey will allow exceptional more detailed mapping of the geology and structural hosting of graphite to plan and execute an efficient drilling program.

A summary of important assessment and reporting criteria used for this Exploration Results announcement is provided in Appendix 2 - JORC Table 1 in accordance with the checklist in the Australian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves (The JORC Code, 2012 Edition). Criteria in each section apply to all preceding and succeeding sections.

Future work

The Company intends to commence a supplementary surface exploration program in July 2022, comprising ground-based large scale geological mapping and sampling to determine higher grade locations and a high-resolution 2D surface seismic (a technology developed by the Smart Exploration Project) to better model the geological structural framework and drilling target delineation over the Bukken, Hesten, and Vardfjellet graphite prospects.

The planned program is part of the collaboration with the EU Smart Exploration Project to develop geophysical methods and instruments to be used for environmentally friendly exploration at deeper exploitation depths with common Earth 3D geo-models. The survey will be used to optimise planning for drilling in the September quarter 2023.

- 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 inquiries, please contact:

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

==> picture [71 x 29] intentionally omitted <==

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

Page 8

ASX: MRC ASX: MRC

26 April 2022

==> picture [121 x 112] intentionally omitted <==

About Mineral Commodities Ltd

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

The Company is a leading producer of zircon, rutile, garnet, and ilmenite concentrates through its Tormin Mineral Sands Operation, located on the Western Cape of South Africa.

In October 2019, the Company completed the acquisition of Skaland Graphite AS, the owner of the world’s highest-grade operating flake graphite mine and one of the only producers in Europe.

The planned development of the Munglinup Graphite Project, located in Western Australia, builds on the Skaland acquisition and is a further step toward an integrated, downstream value-adding strategy which aims to capitalise on the 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 a number of factors could cause actual results or expectations to differ materially from the results expressed or implied in the forwardlooking statements.

Competent Person Statement

The information in this Announcement related to Exploration results is based on information 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 and a full-time employee of the Company. Mr Rashidi is 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). The information from Mr Rashidi was prepared under 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.

==> picture [71 x 29] intentionally omitted <==

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

Page 9

ASX: MRC ASX: MRC

26 April 2022

Appendix 1

Surface Rock Chip Sample details. Coordinates are in UTM 84 zone 33N

==> picture [121 x 112] intentionally omitted <==

Area						TGC%	TC%
	Easting	Northing	Sample	Lithology	TS %
Bukken	611552	7704391	BM-08	Mediumgradegraphite schist,oxidised	0.14	3.11	3.39
Bukken	611366	7704122	BM-08A	Graphite schist	0.12	3.71	4.11
Bukken	611922	7703165	BM-10	Mediumgradegraphite schist,biotite rich	0.31	4.69	5.09
Bukken	611926	7703164	BM-11	Graphite schist	0.21	2.45	2.72
Bukken	611717	7703170	BM-12	Medium grade graphite schist. Graphite layers upto 30 cm thick	0.42	3.96	4.23
Bukken	611710	7703175	BM-13	Medium grade graphite schist. Graphite layers upto 40 cm thick	0.24	4.46	4.7
Bukken	611912	7703182	BM-14	Medium grade graphite schist. Graphite layers upto 30 cm thick	0.62	3.38	3.79
Bukken	611628	7703699	BM-17	Medium grade graphite schist. Graphite in layers,flake can be observed	0.09	6.36	7.07
Bukken	612114	7703663	BM-19	Biotite-graphite schist	1.1	1.43	1.44
Bukken	612079	7703640	BM-20	Mediumgradegraphite schist,flakes	0.42	4.22	4.47
Bukken	612058	7703630	BM-21	Mediumgradegraphite schist,layered	0.85	5.25	5.51
Bukken	612004	7703608	BM-22	Medium grade graphite schist, associated withquartz. Powdergraphite	0.17	4.39	4.76
Bukken	612012	7703664	BM-23	Medium grade graphite schist	0.37	4.02	4.52
Bukken	611979	7703670	BM-24	Biotite-graphite schist	0.77	2.74	2.95
Bukken	611940	7703706	BM-25	Mediumgradegraphite schist,white matrix	0.11	4.67	5.08
Bukken	611948	7703816	BM-26	Mediumgradegraphite schist,white matrix	0.1	5.16	5.58
Bukken	611947	7703768	BM-27	Medium grade graphite, powder to medium size flakes	3.55	3.56	3.53
Bukken	611956	77037743	BM-28	Medium grade graphite, powder to medium size flakes	0.39	3.21	3.47
Bukken	611980	7703771	BM-29	Medium grade graphite, powder to medium size flakes	3.76	6.42	6.61
Bukken	611982		BM-30	Mediumgradegraphite schist	0.1	3.57	3.82
Bukken	611986	7703767	BM-31	Mediumgradegraphite schist	0.23	4.82	5.16
Bukken			BM-32	Mediumgradegraphite schist	3.52	4.1	4.05
Bukken	612001	7703740	BM-33	Mediumgradegraphite schist	0.31	8	8.57
Bukken	612096	7703749	BM-34	Mediumgradegraphite schist	0.74	4.92	5.32
Bukken	612067	7703754	BM-35	Mediumgradegraphite schist,layered	2.84	2.75	3.09
Bukken	612026	7703764	BM-36	Biotite-graphite schist	1.58	2.93	3.18
Bukken	611967	7703757	BM-37	Mediumgradegraphite schist	0.09	4.13	4.48
Bukken	612127	7703404	BM-38	Lowgradegraphite schist	0.38	2.35	2.59
Bukken	612207	7703438	BM-40	Medium to highgradegraphite,flakes	0.28	6.47	6.96
Bukken	611923	7703538	BM-41	Graphite schist	1.16	2.9	3.23
Bukken	612201	7703399	BM-42	Graphite schist	2.31	1.93	2.16
Bukken	612235	7703533	BM-43	Mediumgradegraphite schist	0.36	7.27	7.55
Bukken	612269	7703729	BM-44	Lowgradegraphite schist	2.34	1.54	1.69
Vardfjellet	607977	7705053	EXP-01	Highgradegraphite schist,flakes	0.04	26.6	26.7
Vardfjellet	607885	7705106	EXP-02	Lowgradegraphite schist,mostly powder	0.43	2.74	3.02
Vardfjellet	607427	7705026	EXP-03	Mediumgradegraphite schist	0.4	4.02	4.18
Vardfjellet	607417	7705038	EXP-04	Lowgradegraphite schist	0.33	3.41	3.58
Vardfjellet	607409	7705023	EXP-05	Graphite schist	0.44	1.38	1.48
Vardfjellet	607415	7704990	EXP-06	Mediumgradegraphite schist,flakes	0.17	11.3	11.9
Vardfjellet	608486	7703955	EXP-08	Lowgradegraphite schist	0.36	0.81	0.93
Vardfjellet	608465	7704014	EXP-09	Lowgrade graphite	0.2	1.97	2.26
Vardfjellet	608413	7704040	EXP-10	Lowgradegraphite schist	0.9	1	1.12
Vardfjellet	608409	7704057	EXP-11	Lowgrade graphite schist	0.5	1.74	1.96
Vardfjellet	608382	7704116	EXP-12	Lowgrade biotite-graphite schist,micarich	1.1	1.3	1.45
Vardfjellet	608365	7704131	EXP-13	Lowgrade graphite schist	0.77	2.37	2.47
Vardfjellet	608337	7704199	EXP-14	Biotite-graphite schist, mica rich with some powdergraphite.	0.8	1.72	1.79
Vardfjellet	608211	7704373	EXP-15	Biotite-graphite schist	0.55	1.66	1.72

==> picture [71 x 29] intentionally omitted <==

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

Page 10

ASX: MRC ASX: MRC

ASX: MRC ASX:	MRC				26 April 2022
								TC% 1.72 4 4.82 3.82 1.46 1.68 2.62 5.31 4.93 4.55 4.97
	Area						TGC%	TC%
		Easting	Northing	Sample	Lithology	TS %
	Vardfjellet	608166	7704531	EXP-16	Lowgrade graphite schist	0.98	1.6	1.72
	Vardfjellet	608078	7704709	EXP-17	Mediumgraphite schist,layered	0.41	3.57	4
	Vardfjellet	607904	7705178	EXP-18	Medium grade graphite schist disseminated graphite.	0.18	4.26	4.82
	Vardfjellet	607682	7704922	EXP-19	Low to medium grade graphite schist disseminated graphite.	0.14	3.32	3.82
	Hesten	609093	7702902	EXP-22	Low grade graphite schist, layers of up to 30cmthickness	0.82	1.27	1.46
	Hesten	609113	7702900	EXP-23	Mediumgrade graphite schist,flakes	1.08	1.64	1.68
	Hesten	609146	7702882	EXP-25	Mediumgrade graphite schist	0.85	2.43	2.62
	Hesten	609322	7702686	EXP-28	Mediumgrade graphite schist. layered	0.45	4.86	5.31
	Hesten	609506	7702715	EXP-29	Medium grade graphite schist, disseminates graphite.	0.13	4.35	4.93
	Hesten	609526	7702767	EXP-30	Mediumgrade graphite schist, powder	0.53	4.26	4.55
	Hesten	609546	7702742	EXP-37	Mediumgrade graphite schist	0.15	4.51	4.97

==> picture [71 x 29] intentionally omitted <==

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

Page 11

ASX: MRC ASX: MRC

26 April 2022

Appendix 2

JORC TABLE 1

==> picture [121 x 112] intentionally omitted <==

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 (e.g. 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 (e.g. “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 (e.g. submarine nodules) may warrant disclosure of detailed information.	• No drilling reported in this release. • Surface samples by rock chip. • MRC is reporting a new drone airborne survey at Bukken, Hesten and Vardfjellet prospects. • The Unmanned Aerial Vehicle (UAV) airborne magnetic and electromagnetic survey was conducted by Mobile Geophysical Technologies GmbH (MGT). MGT acquired the data with a X-8 built octocopter drone to undertake ultra-high-resolution drone electromagnetic (EM) and magnetic (MAG) survey. • The fluxgate magnetometer is integrated on a pole, which is suspended below the octocopter, about 1.50m below the octocopter. The box attached at the lower end of the pole contains the EM sensor (3- component induction coils). The magnetic sensor is attached to the pole 50cm above the EM-sensor. • The Digital Fluxgate Magnetometer, that was used in this survey, is a three component, low noise vector magnetometer. • Very Low Frequency (VLF) method is used for electromagnetic measurements.

==> picture [71 x 29] intentionally omitted <==

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

Page 12

ASX: MRC ASX: MRC

ASX	: MRC ASX: MRC 26 April 2022	: MRC ASX: MRC 26 April 2022	: MRC ASX: MRC 26 April 2022
				Commentary Survey Equipment Survey Platform Octocopter MTOW Navigation Ublox F9P EM Data Acquisition Metronix ADU07 MAG Data Acquisition Magson Induction coil Metronix SHFT02 Magnetometer Sensor Magson3- Component fluxgate • Not applicable • Not applicable • Samples geologically logged before submission for analysis. • Not applicable • No duplicates collected or determined.
	Criteria	JORC Code explanation		Commentary
				Survey Equipment Survey Platform Octocopter MTOW Navigation Ublox F9P EM Data Acquisition Metronix ADU07 MAG Data Acquisition Magson Induction coil Metronix SHFT02 Magnetometer Sensor Magson3- Component fluxgate
				Survey Equipment
				Survey Platform	Octocopter MTOW
				Navigation	Ublox F9P
				EM Data Acquisition	Metronix ADU07
				MAG Data Acquisition	Magson
				Induction coil	Metronix SHFT02
				Magnetometer Sensor	Magson3- Component fluxgate
	Drilling techniques	• Drill type (e.g. core, reverse circulation, open-hole hammer, rotary air blast, auger, Banka, sonic) and details (e.g. 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.). _		• Not applicable
	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.		• Not applicable
	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.		• Samples geologically logged before submission for analysis.
	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 representativity 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.		• Not applicable • No duplicates collected or determined.

==> picture [71 x 29] intentionally omitted <==

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

Page 13

ASX: MRC ASX: MRC

ASX	: MRC ASX: MRC 26 April 2022	: MRC ASX: MRC 26 April 2022	: MRC ASX: MRC 26 April 2022
				Commentary • All samples were resubmitted to ALS to analyses both TC and TGC as well as TS by LECO furnace and infrared spectroscopy. • Standard laboratory procedure for sample preparation, assay, and QA/QC. • No geophysical tools or handheld instruments were utilised in the sample analysis. • Two data acquisition system were used for geophysical surveys by MGT includes: Magson to collect the fluxgate data and Metronix to collect the EM data. These are versatile multi-function systems that are capable of operations in many different configurations, depending on platform type, navigation, and system requirements. • Base Magnetometer- Diurnal activities were obtained from the observatory of the geophysical Institute of University of Tromso. • The magnetometer system uses a ublox NEO- M8N GPS receiver, which outputs the latitude, longitude, altitude, and a time stamp. Magnetic and electromagnetic systems measure the in phase and quadrature phase components of the vertical magnetic field using the local horizontal magnetic field as a phase reference. • At the conclusion of each survey flight all magnetic, electromagnetic, and GPS data was transferred onto the field computer for preliminary data verification. • The magnetic data, and electromagnetic data, GPS data and flight path was checked for noise, spikes, inconsistencies, and deviations. Magnetometer Counter Resolution <0.0002 nT (Gamma) =0.2 Pico Tesla Sampling rates 5, 10, 20, 50, 100 Hz Dynamic range -65,000 to 65,000nT Synchronisation Unix time stamp 3 axes Fluxgate Magnetometer (MFG1S) Type Self-supporting Helmholtz coil Sensor size Height 40mm Sensor weight 105 g Operating Temperature -20 to +75 Degrees C Recording Rate 20 Hz (capable of >1kHz)
	Criteria	JORC Code explanation		Commentary
	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. • 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 (e.g. standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision have been established.		• All samples were resubmitted to ALS to analyses both TC and TGC as well as TS by LECO furnace and infrared spectroscopy. • Standard laboratory procedure for sample preparation, assay, and QA/QC. • No geophysical tools or handheld instruments were utilised in the sample analysis. • Two data acquisition system were used for geophysical surveys by MGT includes: Magson to collect the fluxgate data and Metronix to collect the EM data. These are versatile multi-function systems that are capable of operations in many different configurations, depending on platform type, navigation, and system requirements. • Base Magnetometer- Diurnal activities were obtained from the observatory of the geophysical Institute of University of Tromso. • The magnetometer system uses a ublox NEO- M8N GPS receiver, which outputs the latitude, longitude, altitude, and a time stamp. Magnetic and electromagnetic systems measure the in phase and quadrature phase components of the vertical magnetic field using the local horizontal magnetic field as a phase reference. • At the conclusion of each survey flight all magnetic, electromagnetic, and GPS data was transferred onto the field computer for preliminary data verification. • The magnetic data, and electromagnetic data, GPS data and flight path was checked for noise, spikes, inconsistencies, and deviations. Magnetometer Counter Resolution <0.0002 nT (Gamma) =0.2 Pico Tesla Sampling rates 5, 10, 20, 50, 100 Hz Dynamic range -65,000 to 65,000nT Synchronisation Unix time stamp 3 axes Fluxgate Magnetometer (MFG1S) Type Self-supporting Helmholtz coil Sensor size Height 40mm Sensor weight 105 g Operating Temperature -20 to +75 Degrees C Recording Rate 20 Hz (capable of >1kHz)
				Magnetometer Counter
				Resolution	<0.0002 nT (Gamma) =0.2 Pico Tesla
				Sampling rates	5, 10, 20, 50, 100 Hz
				Dynamic range	-65,000 to 65,000nT
				Synchronisation	Unix time stamp
				3 axes Fluxgate Magnetometer (MFG1S)
				Type	Self-supporting Helmholtz coil
				Sensor size	Height 40mm
				Sensor weight	105 g
				Operating	-20 to +75 Degrees C
				Temperature
				Recording Rate	20 Hz (capable of >1kHz)

==> picture [71 x 29] intentionally omitted <==

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

Page 14

ASX: MRC ASX: MRC

ASX	: MRC ASX: MRC 26 April 2022	: MRC ASX: MRC 26 April 2022	: MRC ASX: MRC 26 April 2022
	Criteria JORC Code explanation Commentary 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. • Flight data quality and completeness were assured by both statistical and graphical means on a daily basis (Digital Data Verification). • Quality control completed by MGT geophysicists. 100% gain of data was concluded. • The magnetic data was calibrated, and system heading was removed. • The magnetic data was IGRF corrected, and data was synchronized with GPS Unix time stamp to synchronize with GPS data. 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. • The coordinates were confirmed as being WGS84 UTM zone 33 N. • Surface samples have been provided to the nearest metre. 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. • Surface sample spacing is variable and dictated by the spatial location of outcrops. • Samples not composited. • The survey was conducted with 26-line kilometres include 63 lines completedwith 50m survey line spacing and 40m flying height above ground level withtheline orientation of Northeast-Southwest (045/225) and in-flight Sampling 10 m. • The average speed was about 5 m/s with sampling rate 100 Hz (magnetometry) 65kHz(electromagnetics). 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. • Aeromagnetic survey lines were flown 045/225 degrees (Northeast-Southwest), perpendicular to graphite bearing structure. • Not applicable for aeromagnetic survey. Sample security • The measures taken to ensure sample security. • Sampling was carried out using pre-printed calico bags to prevent mislabeling. • Samples were geologically logged and send to ALS laboratory. Chain of custody controls for shipping and sample submission were used. • For drone geophysical survey, a report of daily activity covering the total acquisition period prepared. The report covers
	Criteria	JORC Code explanation	Commentary
	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.	• Flight data quality and completeness were assured by both statistical and graphical means on a daily basis (Digital Data Verification). • Quality control completed by MGT geophysicists. 100% gain of data was concluded. • The magnetic data was calibrated, and system heading was removed. • The magnetic data was IGRF corrected, and data was synchronized with GPS Unix time stamp to synchronize with GPS data.
	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.	• The coordinates were confirmed as being WGS84 UTM zone 33 N. • Surface samples have been provided to the nearest metre.
	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.	• Surface sample spacing is variable and dictated by the spatial location of outcrops. • Samples not composited. • The survey was conducted with 26-line kilometres include 63 lines completedwith 50m survey line spacing and 40m flying height above ground level withtheline orientation of Northeast-Southwest (045/225) and in-flight Sampling 10 m. • The average speed was about 5 m/s with sampling rate 100 Hz (magnetometry) 65kHz(electromagnetics).
	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.	• Aeromagnetic survey lines were flown 045/225 degrees (Northeast-Southwest), perpendicular to graphite bearing structure. • Not applicable for aeromagnetic survey.
	Sample security	• The measures taken to ensure sample security.	• Sampling was carried out using pre-printed calico bags to prevent mislabeling. • Samples were geologically logged and send to ALS laboratory. Chain of custody controls for shipping and sample submission were used. • For drone geophysical survey, a report of daily activity covering the total acquisition period prepared. The report covers

==> picture [71 x 29] intentionally omitted <==

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

Page 15

ASX: MRC ASX: MRC

ASX	: MRC ASX: MRC 26 April 2022	: MRC ASX: MRC 26 April 2022	: MRC ASX: MRC 26 April 2022
	Criteria JORC Code explanation Commentary production figures, flight duration times and daily comments on data QA/QC. • All data collected under struct security measures bycontractor. Audits or reviews • The results of any audits or reviews of sampling techniques and data. • All digital airborne electromagnetic and magnetic data was subject to auditing by independent geophysical contractor, Mobile Geophysical Technologies GmbH (MGT) and geophysicists of Smart Exploration Project. • MRC has conducted an internal review of data.
	Criteria	JORC Code explanation	Commentary
			production figures, flight duration times and daily comments on data QA/QC. • All data collected under struct security measures bycontractor.
	Audits or reviews	• The results of any audits or reviews of sampling techniques and data.	• All digital airborne electromagnetic and magnetic data was subject to auditing by independent geophysical contractor, Mobile Geophysical Technologies GmbH (MGT) and geophysicists of Smart Exploration Project. • MRC has conducted an internal review of data.

Section 2 Reporting of Exploration Results

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

Criteria	JORC Code 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.	• Bukken has a granted binding landowner agreement with Skaland Graphite AS a subsidiary of MRC for 10 years from 02.01.2020. • The area covering approximately 1.5 km2, owned by Senja municipality on property No. Gnr.90/Bnr.2 (Fjellheim). • Hesten and Vardfjellet area has a granted binding landowner agreement for 6 years from 01.01.2021 with Skaland Graphite AS, a subsidiary of MRC. • The Hesten and Vardfjellet are covering 6.9 km2 and owned by Statskog SF on property No. Gnr124/Bnr.1).
Exploration done by other parties	• Acknowledgment and appraisal of exploration by other parties.	• Geological and structural mapping, thin section analysis, sampling, and assaying, was undertaken in 2003, 2016 and again in 2018 for all prospects by the NGU (Geological Survey of Norway). • The Bukken, Hesten and Vardfjellet prospects have been surveyed with various geophysical techniques numerous times by the NGU since 2012, including helicopter and ground electromagnetic (EM), Charged Potential (CP) and Self Potential(SP).
Geology	• Deposit type, geological setting and style of mineralisation.	• The Graphite mineralisation is hosted by early Proterozoic schists and gneisses of the Western Troms Basement Complex. • Graphite mineralisation occurs as strongly folded bands of enriched graphitic schist/gneiss within a host of non-graphitic

==> picture [71 x 29] intentionally omitted <==

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

Page 16

ASX: MRC ASX: MRC

ASX	: MRC ASX: MRC 26 April 2022	: MRC ASX: MRC 26 April 2022	: MRC ASX: MRC 26 April 2022
	Criteria JORC Code explanation Commentary schist/gneiss. • The graphite lenses are located along a NW- SE structure. 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: o easting and northing of the drillhole collar o elevation or RL (Reduced Level – elevation above sea level in metres) of the drillhole collar o dip and azimuth of the hole o down hole length and interception depth o 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. • Not applicable Data aggregation methods • In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (e.g. 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. • No data aggregation was used, no drill assay or similar interval results are reported. • No metal equivalents used. • Total Graphitic Carbon, Total Carbon and Total Sulfur assays are reported samples. 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 (e.g. ‘down hole length, true width not known’). • No mineralisation thickness has been reported. • This release has no reference to previously unreported drill results, sampling, assay, etc. Diagrams • Appropriate maps and sections (with scales) and tabulations of intercepts • The diagram in the body of this release is derived from the airborne geophysical survey
	Criteria	JORC Code explanation	Commentary
			schist/gneiss. • The graphite lenses are located along a NW- SE structure.
	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: o easting and northing of the drillhole collar o elevation or RL (Reduced Level – elevation above sea level in metres) of the drillhole collar o dip and azimuth of the hole o down hole length and interception depth o 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.	• Not applicable
	Data aggregation methods	• In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (e.g. 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.	• No data aggregation was used, no drill assay or similar interval results are reported. • No metal equivalents used. • Total Graphitic Carbon, Total Carbon and Total Sulfur assays are reported samples.
	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 (e.g. ‘down _hole length, true width not known’). _	• No mineralisation thickness has been reported. • This release has no reference to previously unreported drill results, sampling, assay, etc.
	Diagrams	• Appropriate maps and sections (with scales) and tabulations of intercepts	• The diagram in the body of this release is derived from the airborne geophysical survey

==> picture [71 x 29] intentionally omitted <==

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

Page 17

ASX: MRC ASX: MRC

ASX	: MRC ASX: MRC 26 April 2022	: MRC ASX: MRC 26 April 2022	: MRC ASX: MRC 26 April 2022
	Criteria JORC Code explanation Commentary 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. undertaken by Mobile Geophysical Technologies GmbH (MGT), 2022. 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 practiced to avoid misleading reporting of Exploration Results. • Reporting of all surface sample assays above 2% TC has been done. • Appendix one includes all Total Graphitic Carbon, Total Carbon and Total Sulfur assays. • All high priority Mag and EM anomalies have been modelled. • The magnetic data was transformed into frequency domain of 1s window. The 1s time window was synchronized with GPS time and coordinate. • The frequencies of three VLF transmitter stations were selected: JXN (Norway), 16.4kHz, DHO38 (Germany), 23.4kHz, and NAA, 24.0kHz (USA). • The Tipper A and B (In-Phase, Out-Of-Phase) was estimated from the ratio A=Hz/Hx, and B=Hz/Hy for all lines. • 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. • No other exploration data is currently available. Further work • The nature and scale of planned further work (e.g. 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. • The Company intends undertake a supplementary sampling and large-scale mapping program, also a high-resolution 2D surface seismic with follow up drilling to test the most prospective targets.
	Criteria	JORC Code explanation	Commentary
		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.	undertaken by Mobile Geophysical Technologies GmbH (MGT), 2022.
	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 practiced to avoid misleading reporting of Exploration Results.	• Reporting of all surface sample assays above 2% TC has been done. • Appendix one includes all Total Graphitic Carbon, Total Carbon and Total Sulfur assays. • All high priority Mag and EM anomalies have been modelled. • The magnetic data was transformed into frequency domain of 1s window. The 1s time window was synchronized with GPS time and coordinate. • The frequencies of three VLF transmitter stations were selected: JXN (Norway), 16.4kHz, DHO38 (Germany), 23.4kHz, and NAA, 24.0kHz (USA). • The Tipper A and B (In-Phase, Out-Of-Phase) was estimated from the ratio A=Hz/Hx, and B=Hz/Hy for all lines. • 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.	• No other exploration data is currently available.
	Further work	• The nature and scale of planned further work (e.g. 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.	• The Company intends undertake a supplementary sampling and large-scale mapping program, also a high-resolution 2D surface seismic with follow up drilling to test the most prospective targets.

==> picture [71 x 29] intentionally omitted <==

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

Page 18