MINERAL COMMODITIES LTD — Capital/Financing Update 2023

Mar 5, 2023

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ASX RELEASE
ASX: MRC 6 March 2023
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ASX: MRC 6 March 2023
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Inland Strands Ore Processing Commences at Tormin

• Water commissioning completed

• Inland Strand Ore processing commenced

• Tailings dewatering system performing well

• Pre-production mining works complete, with circa 800Kt of Inland Strands high-grade feedstock available for

processing

Mineral Commodities Limited ( ASX:MRC or the Company ) and its empowerment partner, Blue Bantry Investments 255 (Pty) Ltd, are very pleased to announce that the Company’s 50% owned subsidiary, Mineral Sands Resources (Pty) Ltd ( MSR ) has completed on-water commissioning of its upgraded plant and commenced processing Inland Strands ore.

The primary concentrator plant is performing to expectations with throughputs close to design and the tailings dewatering system components are performing well, with the dewatering screen effectively minimising the moisture content of the coarse (sand) tails and the thickener/flocculant system reducing the moisture content of the fines (slimes). Together, the tailings system lowers the water content to the tails to levels below those in the Section 102 approvals. Commissioning of a filter to further reduce the moisture content of the thickened slimes has also commenced, with initial tests producing a visibly dry cake. Figures 1 – 3 show the dewatering system components.

The key focus area at present is optimising performance. Switchover to 24 hours per day operations on Inland Strands ore is expected next week, stopping production from the Tormin Beaches, allowing them to start to replenish which it is anticipated will lead to improved beach mined grades into the future.

Inland Strands production substitutes some annual beach mining. There are currently two Primary Concentration Plants ( PCPs ) at site, each having a targeted production rate of 1.5Mtpa of beach material or 1.2Mtpa of Inland Strand material after recent plant upgrades. PCP-1 will process Inland Strands material and PCP-2 will currently process Northern Beaches mined material. This plant upgrade is targeted to increase ore processing at Tormin from 2.4Mtpa to 2.7Mtpa.

The third PCP (PCP-3) is also aimed for Inland Strands material, targeting a further increase in ore processing from 2.7Mtpa to 3.9Mtpa. The third PCP is aimed to be in production by December quarter 2023.

The production schedule enables sustainable beach mining, with beach mining now able to be rotated annually between Tormin Beaches and Northern Beaches production. It is expected that this will result in more sustainable beach mining grades, with each placer beach deposit being given replenishment time of 12 out of every 24 months,

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

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

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complemented by PCP-1 processing Inland Strands ore. Please refer to the Company’s quarterly report for the quarter ended 31 December 2022 for further information.[1]

MRC’s Interim Chief Executive Officer, Mr Adam Bick said, “ We are very pleased to recommence Inland Strands ore processing with an effective tailings management solution. I would like to commend the MSR commissioning team for their stellar efforts to date and the rapid transition from water commissioning to ore commissioning.

I am sure the whole site team is looking forward to transitioning to continuous Inland Strands ore processing operations, benefiting from the higher grades and allowing the beaches to transition to a sustainable mining method with replenishment every 12 of 24 months.

We look forward to providing further updates on Inland Strands ore processing, which is the cornerstone of MRC’s Heavy Minerals Division's Objectives[2] .”

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Figure 1 View from on top of thickener, showing well flocculated central feed well and clear overflow

1 Refer to “December 2022 Quarterly Activities Report” dated 31 January 2023.

2 Refer ASX Announcement entitled “MRC Unveils Five Year Strategic Plan 2022-2026” dated 29 April 2022.

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

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- Figure 2 Initial tests with slimes spray gun being used to seal the floor and walls of the mining pit with low permeability thickened slimes

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Figure 3 Filtered slimes discharge cake from initial tests. The filter is fed from the thickener (in the background) as an alternative to pumping thickened slimes to the mining void

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

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ENDS

Issued by Mineral Commodities Ltd ACN 008 478 653 www.mineralcommodities.com Authorised by the Interim CEO and Company Secretary, Mineral Commodities Ltd

For further information, please contact:

INVESTORS & MEDIA Adam Bick Interim CEO T: +61 8 6373 8900 investor@mncom.com.au

CORPORATE Katherine Garvey Company Secretary T: +61 8 6373 8900 investor@mncom.com.au

About Mineral Commodities Ltd:

Mineral Commodities Ltd is a global mining and development company with a primary focus on the production of high-grade Mineral Sands and Natural Flake Graphite from operations in South Africa and Norway.

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.

The Company owns and operates the Skaland Graphite Operation in Norway, the world’s highest-grade operating flake graphite mine and is the only producer 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.

In April 2022, the Company released its Five-Year Strategic Plan 2022-2026[3] to delineate and implement its aspiration to become a leading vertically integrated diversified producer of graphitic anode materials and value added mineral products with a commitment to operate with a focus on the Environment, Sustainability and Governance.

3 Refer ASX Announcement entitled ‘MRC Unveils Five Year Strategic Plan 2022-2026’, dated 29 April 2022.

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

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Cautionary Statement

This announcement contains 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 various factors may 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. This 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 announcement apply only at the date of issue and are 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 announcement 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 announcement.

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