MINERAL COMMODITIES LTD — Interim / Quarterly Report 2021

Jan 30, 2022

ASX: MRC

Highlights

• Skaland - Trælen Maiden Ore Reserve released[1]

• Tormin - Significant Increase in Mineral Resources, including 100% increase in Inland Strand[2]

• Tormin – Section 93 notice set aside[3]

• European Sustainable Graphite Business announced[4]

• Successful Electrochemical Testwork Results on Skaland Anode Material[5]

Corporate and Cash

Cash : US$4.3 million as at 31 December 2021 Debt : US$9.6 million as at 31 December 2021 Securities : 534.9 million shares and 3.4 million performance rights as at the date of this report

Mineral Commodities Ltd ("MRC" or "the Company") was pleased to report an update of the JORC Mineral Resource and a maiden Ore Reserve at the Trælen Graphite deposit, the underground ore source for the Skaland Graphite Operation (“Skaland”) in Norway. The Mineral Resource is estimated at 1.84 million tonnes at 23.6% TGC in the category of Measured, Indicated and Inferred for 434kt of contained graphite at a 10% cut-off. This represented a 10.9% increase in the contained graphite of the resource when compared to the maiden Skaland JORC Mineral Resource announced in March 2020 [6] . A maiden Ore Reserve of 640kt at 24.8% TGC in the category of proven and probable, for 159kt of contained graphite was also announced arising from the improved categorisation of mineral resources following the recently completed drilling program. The initial ore reserve supports long term production at Skaland which has been mined at circa 40Kt of ore annually to produce circa 10Kt of graphite. The Company has budgeted for further resource drilling in 2022 to target deeper inferred resources and down-dip resource expansion, aiming to increase this initial ore reserve.

In December, the Company reported an increase to the Tormin Inland Strands’ Mineral Resources to 212 million tonnes at 9% Total Heavy Mineral (“THM”), comprising 193 million tonnes at 9.5% THM in the Western Strandline and a further 19.5 million tonnes at 3.3% THM initial resource at the Eastern Strandline. This represents an overall 100% increase in the Tormin Inland Strands’ Mineral Resources in comparison to the maiden Inland Strands’ resource of 106 million tonnes at 12.4% THM announced in August 2020 [7] and an increase of 82% of the Western Strandline Mineral Resources. The resource upgrades outline the significant potential for expanding the Company’s mineral sands operations in the Western Cape region of South Africa.

1 ASX release “Maiden Ore Reserve and 92% Increase in Measured and Indicted Resources at Trælen” - 16 November 2021.

2 ASX release “Significant Increase in Tormin Inland Strands’ Mineral Resources” - 7 December 2021.

3 ASX release “Section 93 Notice Set Aside” - 13 October 2021.

4 ASX release “MRC to Form a European sustainable Graphite Business – ‘Ascent Graphite’” - 5 October 2021.

5 ASX release “Successful Electrochemical Results on Skaland Anode Material” - 15 December 2021.

6 ASX release “Maiden JORC Resource Estimation For The Skaland Graphite Project” – 12 March 2020.

7 ASX release “Massive Increase in Mineral Resources at Tormin with Maiden Resource at Western Strand” – 27 August 2020.

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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Quarterly Activities Report December 2021

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The Company previously reported in October that its 50%-owned South African subsidiary, Mineral Sands Resources (Pty) Ltd (“MSR”), the operating company of the Tormin Mineral Sands Operation, received confirmation from the Department of Mineral Resources and Energy (“the Department”) of its decision to set aside the Section 93 Notice issued under the Mineral and Petroleum Resources Development Act, 2002 (“the Act”). The Department has confirmed that MSR has addressed all the matters raised in the Section 93 Notice concerning administrative and operational compliance with the conditions of MSR’s mining rights and the Act more generally.

The Board of the Company completed a strategic review process ("Review") aimed at optimising the Company's corporate and capital structure. The Review’s scope sought options to fund future growth and accelerate shareholder value, including targeting the development of anode production from a dedicated Active Anode Materials Plant ("AAMP") in Norway. The review process concluded that creating a pure play, integrated, graphite battery anode material company centred on European "Sustainable Anode" development principles made strategic, value accretive and operational sense. The Company plans to demerge its Norwegian Graphite Assets into a separate newly incorporated Norwegian entity branded as Ascent Graphite AS. This process has been ongoing during the December 2021 quarter.

The Company reported successful electrochemical results on Skaland Anode Material which had been purified using a new environmentally sustainable process developed with Australia’s National Science Agency, CSIRO. The results demonstrated that the Skaland Anode Material performed comparably to commercially available reference material in key performance benchmarks of efficiency and capacity. The purification process developed by CSIRO uses standard industrial reagents and avoids the use of toxic Hydrofluoric Acid.

As in earlier reporting periods, the welfare of personnel and the financial and social impacts of the COVID-19 pandemic are constantly under review. The Company continues to monitor governmental advice within each of its operating jurisdictions and updates people and procedures accordingly. As has been the case for most of the COVID-19 pandemic, sales at Tormin and Skaland remain largely unaffected by COVID-19 for the December 2021 quarter.

SAFETY, ENVIRONMENT AND COMMUNITY

The Company's 12-month Total Recordable Injury Frequency Rate (“TRIFR”) declined from 5.28 in the September 2021 quarter to 3.62 in the December 2021 quarter. Unfortunately, Skaland recognised one LTI during the quarter when an employee pinched his fingers between a platform and scaffolding while disassembling the scaffolding, resulting in two days absence from work. The employee has fully recovered and remedial action has been implemented.

Tormin

Four employees tested positive for COVID-19 during the December 2021 quarter. Employees that have tested positive are isolated with contact tracing carried out immediately to limit the risk of further transmission. COVID19 temperature testing of all employees by site security remains in place. MSR continues to maintain strict rules regarding social distancing, wearing masks, sanitizing, and ensuring 50% capacity in the employee transport vehicles.

MSR had one first aid case and nil Lost Time Injuries (“LTIs”) during the December 2021 quarter, also achieving nil LTIs in 2022. A major drive on Safety, Health, Environment, and Legal compliance continued in the December 2021 quarter.

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Through MSR’s Social Labour Plan ("SLP"), MSR has invested circa ZAR6.5 million into various learnerships, internships and bursary programs to benefit both employees and community students in 2021. COVID-19 continues to present challenges to MSR’s SLP ambitions.

Skaland

No employee at Skaland has been diagnosed with COVID-19. Skaland had one LTI during the December 2021 quarter when an employee pinched his fingers between a platform and scaffolding while disassembling the scaffolding, resulting in two days absence from work. The employee has fully recovered.

TORMIN OPERATIONS

The Company improved Tormin revenue in the December quarter with 73,607 wet metric tonnes of final concentrate sold. The annualised processing rate during the quarter was 2.4Mtpa, producing 67,629 tonnes of final concentrates.

Mining

Mining	31-Dec -21 Quarter	30-Sep-21 Quarter	31-Dec-20 Quarter	Year to Date 31-Dec -21	Year to Date 31-Dec-20
Material Mined - Tonnes (dmt)	783,709	1,122,975	709,064	4,321,709	2,828,312
Ore Mined - Tonnes (dmt)	783,709	807,381	474,104	3,077,087	2,367,851
Waste Mined – Tonnes (dmt)	-	315,594	234,960	1,244,622	460,461
Grade (VHM)	9.9%	12.7%	14.8%	13.1%	9.9%
- Garnet	7.7%	9.6%	10.1%	8.5%	7.5%
- Ilmenite	1.4%	2.0%	3.4%	3.4%	1.7%
- Zircon	0.5%	0.7%	0.9%	0.8%	0.5%
- Rutile	0.3%	0.4%	0.4%	0.4%	0.2%

Tormin saw 0.8 million tonnes of material mined for the December 2021 quarter with a Valuable Heavy Mineral (“VHM”) grade of 9.9% in comparison to the previous quarter of 12.7%. The reduced VHM grade reflects slower beach replenishment at Tormin and the Northern Beaches during the period and the deferral of mining virgin beaches 1-5 at the Northern Beaches until 2022. Mining from the Inland Strand halted in August, whilst management conducts an optimisation review of the Inland Strand processing strategy.

Run of Mine ("ROM") volumes were maintained in the December 2021 quarter at circa 3.2Mtpa. Ore production during the December 2021 quarter from the Northern Beaches, Tormin Beaches and Inland Strand is shown below:

Mining	31-Dec -21 Quarter	31-Dec -21 Quarter
	Northern Beaches	Tormin Beaches	Inland Strand
Ore Mined - Tonnes (dmt)	347,857	435,852	-
Grade (VHM)	13.1%	7.3%	-
- Garnet	10.0%	5.8%	-
- Ilmenite	2.0%	0.9%	-
- Zircon	0.7%	0.4%	-
- Rutile	0.4%	0.2%	-

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At year end, ROM inventory of 597Kt was available, comprising 444Kt of Inland Strand material and 153Kt of beach material. All ROM inventory is budgeted to be processed in 2022, which is expected to significantly improve cash flow generation in FY22.

Processing

ROM feed tonnes to the Primary Beach Concentrators ("PBC") were higher for the quarter at 688Kt, representing an average feed rate of 338tph and 94% plant utilisation. Throughput increased in comparison to the previous quarter, reflecting the higher feed rate achieved.

Total tonnes processed by the GSP/SCP were 157kt compared to 163kt from the previous quarter. As a result, total final concentrate production for the period decreased marginally to 67,629 tonnes, compared to the September quarter of 68,895 tonnes.

GSP/SCP Production &	31-Dec -21	30-Sep-21	31-Dec-20	Year to Date	Year to Date
Processing	Quarter	Quarter	Quarter	31-Dec -21	31-Dec-20
Tonnesprocessed (gross dmt)	156,519	163,108	154,186	599,326	542,990
Tonnesproduced (dmt)
- Garnet concentrate	48,830	41,813	39,592	144,874	153,743
- Ilmenite concentrate	15,626	23,106	38,592	89,013	67,460
- Zircon/Rutile concentrate	3,173	3,976	4,613	13,677	10,090
- Zircon in concentrate	74.5%	73.0%	67.5%	72.1%	67.6%
- Rutile in concentrate	18.0%	18.8%	15.8%	19.1%	16.0%

Sales

Sales (wmt)	31-Dec -21 Quarter	30-Sep-21 Quarter	31-Dec-20 Quarter	Year to Date 31-Dec -21	Year to Date 31-Dec-20
- Garnet concentrate	32,604	28,891	1,707	118,339	387,121
- Ilmenite concentrate	38,091	-	55,000	92,191	109,249
- Zircon/Rutile concentrate	2,912	3,516	3,005	14,968	9,072

Tormin shipments/sales were 2,912 wet metric tonnes of zircon/rutile concentrate, 38,091 wet metric tonnes of ilmenite and 32,604 wet metric tonnes of garnet. Not all ilmenite and zircon/rutile concentrates could be shipped to customers due to the challenging global shipping environment, which resulted in increased closing product inventory as at 31 December 2021. Garnet sales primarily reflect the fourth quarter offtake under the garnet offtake agreement with GMA Garnet Group (25,000 tonnes).

Product sales revenue was US$13.6 million, representing a total of 73,607 wet metric tonnes sold, compared to prior period revenue of US$6.6 million for 32,407 wet metric tonnes sold. The increase reflects the bulk ilmenite sale during the December 2021 quarter (nil recognised in the previous quarter) and additional garnet sales.

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: MR	C	ASX: MRC Quarterly Activities Report December 2021	ASX: MRC Quarterly Activities Report December 2021	ASX: MRC Quarterly Activities Report December 2021	ASX: MRC Quarterly Activities Report December 2021	ASX: MRC Quarterly Activities Report December 2021	ASX: MRC Quarterly Activities Report December 2021
		Unit Costs & Revenues Summary of Unit Costs & Revenues 31-Dec -21 Quarter 30-Sep-21 Quarter 31-Dec-20 Quarter Year to Date 31-Dec -21 Year to Date 31-Dec-20 Unit production cash costs per tonne of net final concentrate produced (US$/dmt) 94.90 91.00 86.14 101.73 71.15 Unit cost of goods sold per tonne of final concentrate sold(US$/wmt)(1) 154.91 145.26 110.03 151.40 63.28 Unit revenue per tonne of final concentrate sold(US$/wmt) 183.92 203.64 152.67 180.61 108.43 Revenue to Cost of Goods Sold Ratio 1.19 1.40 1.39 1.19 1.71
		Summary of Unit Costs & Revenues	31-Dec -21 Quarter	30-Sep-21 Quarter	31-Dec-20 Quarter	Year to Date 31-Dec -21	Year to Date 31-Dec-20
		Unit production cash costs per tonne of net final concentrate produced (US$/dmt)	94.90	91.00	86.14	101.73	71.15
		Unit cost of goods sold per tonne of final concentrate sold(US$/wmt)(1)	154.91	145.26	110.03	151.40	63.28
		Unit revenue per tonne of final concentrate sold(US$/wmt)	183.92	203.64	152.67	180.61	108.43
		Revenue to Cost of Goods Sold Ratio	1.19	1.40	1.39	1.19	1.71

Note (1) – Cost of goods sold includes production cash costs, product handling, transport and selling costs, royalties, stock movements and depreciation and amortisation. Excludes corporate and financing costs.

The December 2021 quarter’s unit production cash costs were 4% higher than the previous quarter, reflecting lower concentrate produced during the quarter due to the lower grade of ore mined.

The total unit cost of goods sold for the December 2021 quarter was US$154.91/t compared with US$145.26/t in the previous quarter. This reflects the increased sea freight costs associated with the December quarter product shipments.

Unit revenue per tonne of final concentrate sold for the December 2021 quarter of US$183.92/t is 10% below US$203.64/t for the previous quarter. This reflects the lower proportion of zircon/rutile concentrate sales during the December 2021 quarter due to the additional 35kt ilmenite shipment, in comparison with the previous quarter.

Revenue to Cost of Goods Sold Ratio of 1.19 for the December 2021 quarter is lower than the previous quarter of 1.40. This reflects the lower unit revenue per tonne of final concentrate sold due to the sales mix and higher unit costs.

Tormin Exploration

An updated Mineral Resource of the Inland Strand deposit was announced in the December 2021 quarter.

The Mineral Resources were prepared in accordance with the Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (“JORC Code (2012)”). The updated Mineral Resource for the Western Strandline is estimated at 193.2 million tonnes at 9.5% THM using a 2% THM cut-off grade, and the maiden Mineral Resource for the Eastern Strandline is estimated at 19.5 million tonnes at 3.3% THM using the same 2% THM cut-off grade. These form part of the Tormin Inland Strands deposit. This resulted in the Tormin Inland Strands’ Mineral Resources increasing to 212 million tonnes at 9% THM, containing 19 million tonnes in situ Heavy Mineral.

In December 2021, a total of 889.5 metres of resource drilling was carried out at Tormin and the Northern Beaches for the annual resource audit.

MSR has received confirmation in November 2021 that the appeal against granting of an Integrated Environmental Authorisation (“IEA”) for the De Punt Prospecting Right application has been dismissed.

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SKALAND OPERATIONS

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During the quarter, the Company achieved higher ore mining rates reflective of historical performance at Skaland. The improved ore production resulted in higher processed tonnes and final concentrate produced. The Company also completed down-dip mine development works to level -55, which provides access to circa 3-5 years of ore production based on long term production at Skaland, which has been mined at circa 40Kt of ore annually to produce circa 10Kt of graphite.

The Company increased concentrate sales by 64% selling 2,356 tonnes of graphite concentrate during the period compared to 1,438 tonnes in the prior quarter, reflecting increased production and strong market conditions experience during the quarter.

Mining

Mining	31-Dec -21 Quarter	30-Sep-21 Quarter	31-Dec-20 Quarter	Year to Date 31-Dec -21	Year to Date 31-Dec-20
Material Mined	39,095	53,554	3,227	148,346	28,893
Ore Mined	10,932	8,802	978	30,009	18,128
Waste Mined	28,163	44,752	2,249	118,337	10,765
Ore Grade (%C)	27	23	28	25	28
Development Metres	356	486	24	1,357	223

Total ore mined for the quarter was 24% higher than the previous quarter, reflecting the summer shutdown in the previous quarter and the development of the new decline to access down-dip ore resources completed in the December 2021 quarter. The completion of the decline development provides access to the consistently highgrade Trælen ore body and has resulted in improved ore grade for the quarter. Lower development metres during the quarter were the result of the November completion of the down-dip development at Trælen.

Processing

ROM feed to the processing plant for the December 2021 quarter was 9,451 tonnes compared with 6,864 tonnes in the prior quarter. This reflected increased ore availability from the completed mine development and higher operating hours, given the summer shutdown in the previous quarter.

Graphite concentrate production increased 64% to 2,763 tonnes, exceeding last quarter production of 1,682 tonnes due to the improved operating hours and an improved ROM stockpile.

Processing	31-Dec -2021 Quarter	30-Sep-21 Quarter	31-Dec-20 Quarter	Year to Date 31-Dec -21	Year to Date 31-Dec-20
Ore Processed (t)	9,451	6,864	3,996	23,021	18,321
Throughput (tph)	6	7	7	6	7
Ore Grade (%C)	27	23	23	25	27
C Recovery(%)	93	92	89	91	91
Concentrate Grade (%)	93	88	87	91	90
Concentrate Produced (t)	2,763	1,682	992	6,293	5,549

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Concentrate grade increased significantly from 88% TGC to 93% TGC during the period due to a change in grinding media and ongoing optimisation work at Skaland.

Sales

The Company sold 2,356 tonnes of graphite concentrate during the December 2021 quarter compared to 1,438 tonnes in the prior quarter, representing a 64% increase in sold concentrate that reflects improved production and market conditions during the quarter.

Product (wmt)	31-Dec -21 Quarter	31-Dec -21 Quarter	30-Sep-21 Quarter	30-Sep-21 Quarter	31-Dec-20 Quarter	31-Dec-20 Quarter	Year to Date 31-Dec -21	Year to Date 31-Dec -21	Year to Date 31-Dec-20	Year to Date 31-Dec-20
	Sales	PSD %	Sales	PSD %	Sales	PSD %	Sales	PSD %	Sales	PSD %
Coarse/Medium	794	33%	436	30%	262	20%	2,062	31%	3,152	35%
Fine-Medium/Powder	1,562	67%	1,002	70%	1,052	80%	4,584	69%	5,741	65%
Total	2,356		1,438		1,314		6,646		8,893

Sales revenue for the December quarter increased 70% to US$1.7 million for a total of 2,356 tonnes sold. Sales revenue for the September 2021 quarter was US$1.0 million for a total of 1,438 tonnes sold. The Company also noted a 3.8% increase in the weighted average basket price per tonne of graphite products sold from the previous quarter.

Unit Costs & Revenues

As a result of the shutdowns of operations at Skaland during previous quarters, the quarter-on-quarter unit cost ratios are not reported for the December 2021 quarter. The abnormal unit production cash costs and unit cost of goods sold for the Skaland operation were due to a primarily fixed operating cost base, offset by low production and sales because of downtime.

Skaland Exploration

The Company announced an update of the JORC Mineral Resource and a maiden Ore Reserve at the Trælen Graphite deposit, the underground ore source for the Skaland Graphite Operation in Norway:

• Trælen Mineral Resources increased to 1.84 million tonnes at 23.6% Total Graphitic Carbon (“TGC”), containing 434kt of contained graphite;

• Maiden Ore Reserve of 0.64 million tonnes at 24.8% TGC containing 159kt of contained graphite;

• Drilling targeted conversion of down-dip inferred resources into higher resource categories and delivery of maiden Ore Reserve;

• More than 92% increase in Measured & Indicated Resources from 409kt to 786kt for the Trælen Graphite Mine; and

• Mineralisation remains open down-dip and the next phase of drilling will commence in 2022 to support production expansion as part of a downstream strategy.

During the December quarter, mapping, and sampling at Hesten and Vardfjellet graphite prospects was completed. The Company will commence a high-resolution UAV Magnetic-Electromagnetic survey over Bukken, Hesten and Vardfjellet graphite prospects in February 2022.

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DOWNSTREAM GRAPHITE

The Company continued with its natural graphite purification process development with Australia’s national science agency, CSIRO, under the CRC-P project, part funded by the Australian government. The project is expected to be completed in the March quarter 2022. The first coin cell electrochemical testing results on Skaland Uncoated Purified Spherical Graphite purified by the environmentally sustainable process developed by CSIRO were announced during the December quarter 2021. The results demonstrated;

• High first cycle efficiency of 90.6% - The first cycle efficiency is an important industry performance indicator. It measures the loss of lithium in forming a protective layer on the graphite anode known as the Solid Electrolyte Interface (“SEI”). It is expected to improve further on coating of the graphite.

• Steady-state capacity of 369 mAh/g – close to theoretical maximum (372 mAh/g) for graphite.

Fundamentally, the Skaland Anode material performed comparably to commercially available natural graphite anode material in key performance benchmarks of efficiency and capacity, showing that the Skaland material and the sustainable purification process developed by CSIRO, using standard industrial reagents, produces good quality product.

Further process development and testwork, including Munglinup material and coatings, is in progress. The Company is also undertaking planning for larger scale piloting to support product qualification, process scale-up and the development of value-added anode materials production in Australia and Norway.

DEVELOPMENT

Ascent Graphite

During the quarter the Company completed a strategic review investigating options targeting the funding and development of anode production from a dedicated Active Anode Materials Plant in Norway. The Company plans to transition its existing European graphite production to downstream anode production for the electric vehicle and energy storage markets. The review process concluded that creating a battery anode material company concentrated on European "Sustainable Anode" development made strategic, value accretive, operational sense.

The Company plans to separate the Norwegian Graphite Assets, including its 90% owned Skaland Graphite Operation and downstream development plans into a newly incorporated Norwegian entity, branded as Ascent Graphite ("Ascent Graphite").

The Company appointed Bacchus Capital Advisers Ltd and Clarksons Platou Securities AS as advisors to support this business development strategy. The process of maximising value for shareholders from MRC’s graphite assets is ongoing.

Munglinup Graphite Project

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

The Company has completed additional ecological, fauna, and flora surveys to update the EPA documents. The Company will then respond to the submission document during the March 2022 quarter. Final EPA approvals are expected by the September quarter 2022.

In the quarter approximately 15km of vegetation clearing was completed in the tailings storage facility area and the new exploration sites. The firebreaks tracks were also re-cleared around the Mining Reserve. All clearing and

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surveys were conducted with the assistance of heritage monitors from the Esperance Tjaltjraak Native Title Aboriginal Corporation (“ETNTAC”).

The Company continues to work closely with ETNTAC to progress opportunities for mutual benefit in heritage, cultural awareness, training and job creation.

An application for a new tenement adjoining E74/656 was submitted to the Department of Mines, Industry Regulation and Safety (DMIRS) on 17 November 2021 (E74/702) and approved on 19 January 2022.

Australian Exploration

A Program of Work (“POW”) for drilling was compiled for the Mount Edon tenement. The Company is working with the Department of Planning, Lands and Heritage (DPLH) to assess the Aboriginal heritage place(s) to submit a POW to Department of Mines, Industry Regulation and Safety (DMIRS).

CORPORATE

Cash and Debt

As at 31 December 2021, the Company had US$4.3 million in cash on hand compared to US$5.4 million as at 30 September 2021. The net working capital position as at 31 December 2021 is US$7.5 million, inclusive of diesel fuel receivables in South Africa. The impact of the COVID-19 pandemic on customers, supply chains, staffing and geographical regions is expected to continue in 2022, however operations and sales resilience in 2020 and 2021 provides comfort to budget effectively for 2022. Management is buoyed by the strong working capital position as at 31 December 2021, expected positive cash flows from mining operations at Tormin in 2022 and management’s ability to raise additional funding as required. Management will continue to actively monitor cash flows and remain adaptable to changing fiscal priorities in light of these fluid operating conditions.

Trade and other receivables as at 31 December 2021 decreased to US$9.7 million from US$11.4 million in the previous quarter. Borrowings as at 31 December 2021 were US$9.6 million compared to US$9.7 million in the previous quarter.

Outlook

Tormin's zircon/rutile concentrate continues to attract strong pricing with high levels of demand expected to continue. Strong demand combined with tight market supply supports our assessment that the overall zircon market is expected to improve in 2022. Ilmenite pricing remains strong and is expected to improve in 2022 because of limited supply and high shipping costs.

Updated concentrates production guidance for Tormin and Skaland in 2022 is provided below. The Company cautions it should be viewed in light of the ongoing COVID-19 pandemic risks.

Final Concentrate Production - Tormin	Sept 2021 FY2021 Production Guidance Range	FY2021 Production Actuals	Dec 2021 FY2022 Production Guidance Range
Garnet Concentrate(dmt)	120,000 – 150,000	144,874	150,000 – 180,000
Ilmenite Concentrate(dmt)	90,000 – 120,000	89,013	110,000 -140,000
Zircon/Rutile Concentrate(dmt)	12,000 – 18,000	13,677	24,000 – 29,000

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: MR	C ASX: MRC Quarterly Activities Report	C ASX: MRC Quarterly Activities Report	C ASX: MRC Quarterly Activities Report	December 2021
					Dec 2021 FY2022 Production Guidance Range 2,200 – 3,200 4,600 - 6,600
		Final Concentrate Production - Skaland	Sept 2021 FY2021 Production Guidance Range	FY2021 Production Actuals	Dec 2021 FY2022 Production Guidance Range
		Coarse/Medium Product(dmt)	1,500 – 3,500	2,226	2,200 – 3,200
		Fine-Medium / Powder Product (dmt)	3,000 – 5,000	4,067	4,600 - 6,600
		Final Concentrate Sales - Tormin	Sept 2021 FY2021 Sales Guidance Range	FY2021 Production Actuals	Dec 2021 FY2022 Sales Guidance Range
		Garnet Concentrate(dmt)	100,000 – 125,000	118,339	150,000 – 180,000
		Ilmenite Concentrate(dmt)	85,000 – 120,000	92,191	120,000 -150,000
		Zircon/Rutile Concentrate(dmt)	14,000 – 20,000	14,968	24,000 – 29,000
		Final Concentrate Sales - Skaland	Sept 2021 FY2021 Sales Guidance Range	FY2021 Production Actuals	Dec 2021 FY2022 Sales Guidance Range
		Coarse / Medium Product(dmt)	2,000 – 4,000	2,062	2,200 – 3,200
		Fine-Medium / Powder Product (dmt)	3,000 – 5,000	4,584	4,600 - 6,600

Production and sales actuals for 2021 have largely met recent guidance expectations.

Production guidance for Tormin in 2022 materially exceeds 2021 actuals because MRC is expecting to return to the Inland Strand in the second half of 2022, processing largely the high-grade South Pit material that is expected to be significantly higher grade than that achieved at the Northern Beaches and Tormin Beaches in 2021. At year end, ROM inventory included 444Kt of Inland Strand high-grade South Pit material that will be processed in the second half of 2022, which is expected to significantly improve cash flow generation from Tormin in 2022 (given its high grade and mining cash costs being sunk in 2021).

Skaland is expected to return to historical performance of circa 9-11Kt of product per annum.

Sales guidance for 2022 largely reflects production guidance available, with additional ilmenite from available inventory expected to sell in 2022.

Securities on Issue

Issued securities at the date of this report comprise:

• 534,990,634 fully paid ordinary shares listed on the ASX.

• 1,000,000 Performance Rights, 500,000 vesting on 1 September 2021 and 500,000 vesting on 1 September 2022. 500,000 Performance Rights are fully vested.

• 920,000 Performance Rights vesting on 25 November 2022, expiring on 25 November 2024.

• 1,380,000 Performance Rights vesting on 25 November 2023 and upon non-market measures a being achieved, expiring on 25 November 2025.

• 100,000 Performance Rights exercisable on or before 28 February 2023, vesting on the 30-day VWAP of the Company's Shares trading on the ASX being A$0.26 post issue, and 50,000 vested on 28 February 2021 and 50,000 vesting on 28 February 2022. 50,000 Performance Rights are fully vested.

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- ENDS –

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

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Quarterly Activities Report December 2021

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ASX: MRC
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Issued by: Mineral Commodities Ltd ACN 008 478 653 Authorised by: The Board of Mineral Commodities Ltd

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For further information, please contact:

INVESTORS & MEDIA CORPORATE Peter Fox Fletcher Hancock Corporate Development Manager Group Legal Counsel & Company Secretary T: +61 8 6373 8900 T: +61 8 6373 8900 investor@mncom.com.au fletcher.hancock@mncom.com.au

COMPETENT PERSONS STATEMENT

Tormin -The information in this statement which relates to Mineral Resources for Tormin 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 Exploration Manager and a full-time employee off the Company and has over 22 years of exploration and mining experience in a variety of mineral deposits and styles. Mr Rashidi 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 Australian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves (“JORC Code (2012)”). The information from Mr Bahman Rashidi was prepared under the JORC Code (2012). Mr Rashidi consents to inclusion in this report of the matters based on this information in the form and context in which it appears.

Skaland -The information in this statement which relates to Mineral Resources for Traelen is based on information compiled by Mr Bahman Rashidi, who is a member of the AusIMM and the AIG. Mr Rashidi is the Exploration Manager and a full-time employee off the Company and has over 22 years of exploration and mining experience in a variety of mineral deposits and styles. Mr Rashidi 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 Bahman Rashidi was prepared under the JORC Code (2012). Mr Rashidi consents to inclusion in this report of the matters based on this information in the form and context in which it appears.

The information in this statement related to Ore Reserve is based on information compiled and approved for release by Mr Eero Tommila, who is a member of the Institute of Materials, Minerals, and Mining ("IMMM") a Recognised Professional Organisation ("RPO"). Mr Tommila is Principal Mine Engineer of Skaland Graphite AS and a fulltime employee of the Company. 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 Tommila was prepared under the JORC Code (2012). Mr Tommila consents to the inclusion in the report in the form and context in which it appears.

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

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