MINERAL COMMODITIES LTD — Interim / Quarterly Report 2019

Aug 27, 2019

ASX: MRC 28 August 2019

==> picture [160 x 65] intentionally omitted <==

==> picture [411 x 84] intentionally omitted <==

----- Start of picture text ----- ASX RELEASE----- End of picture text -----

JUNE 2019 HALF-YEAR RESULTS SUMMARY

Mineral Commodities (ASX: MRC) is pleased to announce its half-year results for the halfyear ended 30 June 2019, with the following highlights:

Tormin Mineral Sands Operation

• Safety performance maintained – First Aid Injuries reduced to zero for the half-year with no Lost Time Injuries recorded since April 2017

• Environmental Authorisation granted for 10 year LOM Expanded Mining Right at Tormin

• Strong PBC/TSP and GSP/SCP processing plants throughput (1,270,312t and 323,670t respectively), availability at +93%

• Final concentrates gross production – 130,580 tonnes

• Final concentrates gross sales – 218,368 tonnes

Business Diversification

• Skaland Graphite AS in Norway - The Company entered into a Share Purchase Agreement to purchase Skaland Graphite AS in Norway, which is the largest flake graphite producer in Europe, the highest-grade flake graphite mine in the world and fourth largest producer globally

• Munglinup Graphite Project in Western Australia - Further high-grade assay results from infill and step out drilling, with a Definitive Feasibility Study to be completed in the September quarter 2019

Financial

• Total revenue increase to US$30.4 million

• EBITDA of US$10.9 million and NPAT of US$7.0 million. EBITDA and NPAT increase of 125% and 507% respectively in comparison to the prior half-year

• Cash balance increase to US$15.8 million, with cash generated from operations increasing by 83% in comparison to the prior half-year

• Trade and Other Receivables increased to US$8.5 million

• Interim dividend of 0.6 Australian cent per share (partially franked)

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

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

Page 1

28 August 2019

ASX: MRC ASX: MRC

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

Executive Chairman Mark Caruso commented : “The financial results of the Company this halfyear are a testament to the continuing operational and safety performance at Tormin, which during the reporting period continued to deliver substantial economic returns. Of note, the Company has successfully implemented a number of cost reduction strategies in anticipation of reduced mining at Tormin which are already observable in our financial performance. The adoption of these strategies highlights management’s ability to adjust to our temporary changed production scenario and still progress our growth initiatives. These initiatives included the proposed expansion of the world class Tormin operation, the exciting acquisition of Skaland Graphite AS which will accelerate our ambition of producing high-grade, vertically integrated graphite products while we finalise the Definitive Feasibility Study at the Munglinup Graphite Project in Western Australia..”

For further information, please contact:

INVESTORS & MEDIA

Peter Fox

Investor Relations and Corporate Development T: +61 8 6253 1100 investor@mncom.com.au

CORPORATE Peter Torre

Company Secretary

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

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

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

Page 2

28 August 2019

ASX: MRC ASX: MRC

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

About Mineral Commodities Ltd:

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

The Company is a leading producer of zircon, rutile, garnet and ilmenite concentrates through its Mineral Sands Operation, located on the Western Cape of South Africa. In April 2019, the Company entered into an agreement to acquire 100% of Skaland Graphite AS, which operates the Trælen Graphite Mine and Skaland Processing Facility in Norway. Skaland is the world’s highest-grade operating flake graphite mine with mill feed grade averaging around 28%C. Skaland is the largest flake graphite producer in Europe and fourth largest producer globally outside of China. The planned development of the Munglinup Graphite Project, located near Esperance in Western Australia, is consistent with the Company’s strategy to capitalise on the fast-growing sustainable renewable energy storage and electric vehicle revolution as well as downstream vertically integrated value-adding.

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.

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

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

Page 3