MITCHELL SERVICES LIMITED — Investor Presentation 2021

Oct 20, 2021

ANNUAL GENERAL MEETING 21 OCTOBER 2021

Chief Executive Officer

www.mitchellservices.com.au

1

DISCLAIMER

This investor presentation has been prepared by Mitchell Services Limited (“the Company”). Information in this presentation is of a general nature only and should be read in conjunction with the Company’s other periodic and continuous disclosure announcements to the ASX, which are available at: www.asx.com.au.

This presentation contains statements, opinions, projections, forecasts and other material (“forward-looking statements”) with respect to the financial condition, business operations and competitive landscape of the Company and certain plans for its future management. The words anticipate , believe , expect , project , forecast , estimate , likely , intend , should , could , may , target , plan and other similar expressions are intended to identify forward-looking statements. Such forward-looking statements are not guarantees of future performance and include known and unknown risks, uncertainties, assumptions and other important factors which are beyond the Company’s control and may cause actual results to differ from those expressed or implied in such statements. There can be no assurance that actual outcomes will not differ materially from these statements. Any forward-looking statements contained in this document are qualified by this cautionary statement. The past performance of the Company is not a guarantee of future performance. None of the Company, or its officers, employees, agents or any other person named in this presentation makes any representation, assurance or guarantee as to the accuracy or likelihood of fulfilment of any forward-looking statements or any of the outcomes upon which they are based.

The information contained in this presentation does not take into account the investment objectives, financial situation or particular needs of any recipient and is not financial product advice. Before making an investment decision, investors should consider their own needs and situation and, if necessary, seek independent professional advice.

Mitchell Services Limited’s financial statements comply with International Financial Reporting Standards (IFRS). This presentation may include certain non-IFRS performance measures including EBITDA, EBIT, Gearing ratio, Gross Debt, Net Debt and Return on Invested Capital (ROIC). These measures are used internally by management to assess the performance of the business. Non-IFRS measures have not been subject to audit or review and should not be considered as an alternative to an IFRS measure of profitability, financial performance or liquidity.

To the maximum extent permitted by law, the Company and its directors and advisers of both give no warranty, representation or guarantee as to the accuracy, completeness or reliability of the information contained in this presentation. Further, none of the Company, it officers, agents or employees of accepts, to the extent permitted by law, any liability for any loss, claim, damages, costs or expenses arising from the use of this presentation or its contents or otherwise arising out of, or in connection with it. Any recipient of this presentation should independently satisfy themselves as to the accuracy of all information contained herein.

==> picture [148 x 31] intentionally omitted <==

2

www.mitchellservices.com.au

MITCHELL SERVICES MARKET PROFILE

ASX Information

Major Holders

ASX Stock Symbol MSV Shares Issued 224,948,905 Share Price (at 12/10/2021) A$0.475 Market Capitalisation A$106.85m

Mitchell Group 18.4% Dream Challenge Pty Ltd 7.2% Washington H Soul Pattinson 6.0%

Board of Directors

Executive Management Team

==> picture [104 x 157] intentionally omitted <==

Nathan Mitchell Scott Tumbridge Executive Chairman Executive Director Peter Miller Robert Douglas Non-Executive Non-Executive Director Director

Neal O’Connor Peter Hudson Non-Executive Non-Executive Director Director

==> picture [104 x 156] intentionally omitted <==

Andrew Elf Chief Executive Officer

Greg Switala CFO & Company Secretary

==> picture [148 x 31] intentionally omitted <==

3

www.mitchellservices.com.au

PEOPLE, RISK AND SUSTAINABILITY

• Implemented critical risk management program. Infield program designed to verify the presence and effectiveness of critical control measures to prevent life changing injuries and fatalities.

• Covid 19 has continued to present logistical changes but credit to our entire team who have continued to deliver safe and efficient services to our clients.

• Developed and released a Modern Slavery Statement.

• Mitchell Services Foundation has now been registered as a Charity.

==> picture [283 x 392] intentionally omitted <==

==> picture [148 x 31] intentionally omitted <==

4

www.mitchellservices.com.au

FY21 BUSINESS OVERVIEW

42,633 shifts in FY21 ↑ 20%

from FY20

Industry leading safety performance driven by critical 650+ risk control verification program experienced employees

Total revenue of $191m $29.6m gross bank debt Underlying FY21 EBITDA of at 30 June 21 representing ↑ 9% $35.7m a 25% decrease from 30 June 20

from FY20 driven by utilisation increases

==> picture [148 x 31] intentionally omitted <==

.

www.mitchellservices.com.au

5

MSV’S DEMONSTRATED ABILITY TO DELIVER GROWTH

==> picture [668 x 364] intentionally omitted <==

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

Annual Average Operating Rig Count vs Revenue
$200-$220m
$191.4m
$175.56m
$120.21m
Average
Operating Rig
Count
Average
71.6
Operating Rig
$72.69m Count
67.7
Average
Operating Rig
Count
$40.30m 48.9
$32.97m Average Operating
Rig Count
$25.17m
Average Operating 37.4
$15.02m Average Operating Average Operating Rig Count
Rig Count
Average Operating Rig Count Rig Count 17.8 21.6
7.8 13.0
FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22F
----- End of picture text -----*

*Assumes anticipated levels of work from existing customers and that all existing customers renew their drilling contracts to the extent that such current contracts expire during this period. Assumes a 20% EBITDA margin and that there is no material changes in market conditions or operating environments, including no material deterioration in COVID-19 restrictions and regulations.

==> picture [148 x 31] intentionally omitted <==

6

www.mitchellservices.com.au

REVENUE QUALITY AND DIVERSITY

FY21 Revenue by State and Commodity

Revenue by Drilling and Client Type

==> picture [660 x 369] intentionally omitted <==

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

◼ Surface Drilling
30.0% ◼ Underground Drilling
50%
46.3% 44%
45%
5.4% 55%
16.8% 63% 55% 56% 50%
1.6%
65% 45%
75%
92% 93% 34% 37%
QLD SA NSW WA VIC FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 F
◼ Tier 1 Clients
3.6% [3.4%]
◼ Other Clients
9.7%
91%
82%
86%
52.8%
30.7% 92%
90%
66% 88% 93%
37%
Gold Coking Coal Copper Lead/Zinc/Silver Other FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 F
----- End of picture text -----

==> picture [148 x 31] intentionally omitted <==

www.mitchellservices.com.au

7

ORGANIC GROWTH STRATEGY

• Mitchell Services is embarking on an organic growth strategy including a material capital investment program to deliver anticipated FY22 EBITDA of between $40m and $44m.

• This investment includes the purchase of 9 LF160 drill rigs that are expected to be delivered by 31 December 2021 and includes an option for an additional 3 rigs.

• The proposed timing allows Mitchell Services to take advantage of the cash flow benefit associated with the ATO’s instant asset write off program (in place until June 2022 with a proposed extension to June 2023).

• It was previously Mitchell Services’ intention to sell nominated rigs to provide partial funding for this capital investment program.

• However, given the strength of the current market and the lead times to procure additional drill rigs, Mitchell Services have opted to retain these rigs as the value to the business will be greater than the net sale proceeds.

• Based on the anticipated size of the fleet post implementation of the growth strategy, the business would have the capacity to potentially generate $50m-$60m EBITDA and to deliver material EPS growth.

==> picture [290 x 194] intentionally omitted <==

==> picture [290 x 195] intentionally omitted <==

==> picture [148 x 31] intentionally omitted <==

8

www.mitchellservices.com.au

OPPORTUNITY TO LEVERAGE THE CYCLE

• Significant increase in demand in the gold and base metals sectors with a positive long-term industry outlook.

• Global government stimulus and subsequent investment into infrastructure and other projects will drive demand for copper and other base metals.

• In a world where reserves and grades of some commodities are reducing, Australia is seen as a high quality, low risk jurisdiction in which to operate.

==> picture [330 x 180] intentionally omitted <==

• Increase in new projects and exploration programs due to significantly increased level of capital raising and investment by miners during 2020 and 2021.

• With approximately 70% of FY21 revenue derived from the gold and base metal sectors, the Company is well placed to take advantage of any further uplift in these markets.

• “We believe that the last supercycle peaked in 2008 (after 12 years of expansion), bottomed in 2020 (after a 12-year

• contraction) and that we likely entered an upswing phase of a new commodity supercycle”

JP Morgan macro and quantitative strategist Marko Kolanovic

The outlook for drilling services demand is the strongest that we have seen since 2008

==> picture [148 x 31] intentionally omitted <==

9

www.mitchellservices.com.au

SIGNIFICANT BARRIERS TO ENTRY

• Access to funding for new mining services providers is challenging given limited lender appetite to the mining services sector.

• Complex and highly regulated industry.

• Increasing lead time in relation to the supply of rigs, ancillary equipment and consumables.

• Significant level of industry consolidation.

• Tightening labour market and ability to attract and retain a highly skilled labour force.

==> picture [208 x 313] intentionally omitted <==

Suppliers are currently experiencing a surge in global demand for drill rod while continuing to manage supply constraints as a result of Covid-19

Mitchell Services has circa 20,000 pieces of drill rod currently ordered which represents 32% of a major supplier’s total Asia Pacific drill rod availability over the next 6 months

==> picture [148 x 31] intentionally omitted <==

10

www.mitchellservices.com.au

FY22 Q1 UPDATE AND OUTLOOK

==> picture [332 x 393] intentionally omitted <==

• FY22 Q1 revenue was $52.7m representing a 14% increase from the FY21 Q4 figure of $46.2m

• Solid FY22 Q1 EBITDA of $8.1m

• EBITDA is expected to increase quarter on quarter for the remainder of FY22 as additional rigs are deployed and ramp up costs begin to reduce

• MSV maintains its FY22 revenue and EBITDA guidance of $200m-$220m and $40m-$44m respectively.

• Strong anticipated EBITDA run rate heading into FY23

==> picture [148 x 31] intentionally omitted <==

11

www.mitchellservices.com.au

SUMMARY

• Mitchell Services vision is to be Australia’s leading provider of drilling services to the global exploration, mining and energy industries.

• Mitchell Services is embarking on an organic growth strategy including a material capital investment program to deliver anticipated FY22 EBITDA of between $40m and $44m .

• Based on the anticipated size of the fleet post implementation of the growth strategy, the business would have the capacity to potentially generate $50m-$60m EBITDA and to deliver material EPS growth.

• Mitchell Services has an experienced board and management team who have proven success in business development and growth.

==> picture [282 x 375] intentionally omitted <==

==> picture [148 x 31] intentionally omitted <==

12

www.mitchellservices.com.au