MURRAY COD AUSTRALIA LIMITED — Interim / Quarterly Report 2021

Jul 29, 2021

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Murray Cod Australia Ltd

ASX:MCA

31 July 2021

June 2021 Quarterly Activities Report

The Board of Murray Cod Australia Ltd (MCA) is pleased to provide the following update of operational and sales progress in conjunction with the release of the MCA quarterly cashflow report.

HIGHLIGHTS

• Annual Cash Revenue growth of 125% over June 2020 Financial Year

• National winner, delicious . Produce Awards

• Woolworths trial underway

• Negotiations underway with other retailers

• Average sale weight of 2.08 kilograms per fish (excluding fingerlings)

• Stage two of Whitton site under construction

• Hatchery expansion underway

• SeroExport shipments for the June 2021 quarter.

Cash Revenue increase of 125% over June 2020 Financial

year

Total annual revenue receipts grew 125% for the year ending June 2021 compared to the June 2020 financial year. Sales have continued to grow since the sudden impact of COVID19 in March 2020 caused export markets to cease. During the year MCA implemented a strong domestic market strategy and in 1[st] quarter 2021 we recruited a domestic sales team in both the fresh and live categories.

Murray Cod Australia Ltd ABN 74 928 625 Level 1, 153 Yambil Street Griffith NSW Australia 2680

Ph +61 269 625 470 www.aquna.com

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Murray Cod Australia Ltd

ASX:MCA

National winner, delicious . Produce Awards

Aquna Sustainable Murray Cod has received Gold at this year’s national Harvey Norman delicious Produce Awards. The win is off the back of receiving Gold in the New South Wales delicious awards earlier in the year.

The delicious . Produce Awards, now in its 16th year, unearth and champion Australia’s best and most inventive primary produce and producers with an emphasis on provenance, seasonality and sustainable production methods. The win highlights the dedication and quality of the work in our production teams. It also highlights the quality and versatility of the product with a wide variety of new customers coming on board over the last year.

Woolworths trial

MCA launched Aquna Sustainable Murray Cod as a premium branded product into the chilled seafood cabinet section of selected Woolworths stores on 11 June 2021.

The launch is for an initial 12-weeks via targeted Sydney-based stores. Results to-date are positive and further information will be released to the market once The Company has completed the full trial.

Other major retailers

Our strategy is focused on major retailers in Australia around launching Aquna Sustainable Murray Cod as a premium branded product into their chilled seafood sections.

MCA is working torwards a broader cross-section of the Australian community having convenient access to our iconic Australian produce, via major retail channels . Further updates will be released to the market as they come to light.

PFD Foodservices

MCA has begun regular shipments into Sydney, Melbourne and the ACT via PFD Foodservices (PFD). Aquna Sustainable Murray Cod is now listed nationally with PFD. The

Murray Cod Australia Ltd ABN 74 928 625 Level 1, 153 Yambil Street Griffith NSW Australia 2680

Ph +61 269 625 470 www.aquna.com

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Murray Cod Australia Ltd

ASX:MCA

listing broadens our distribution into regional and urban Australia immensely, where freight and logistics previously made it difficult to access our product.

Grow-out performance

To-date the 2021 calendar year has seen excellent growing conditions, that have allowed stock to perform well. Fish growth and health in the ponds has been in-line with expectations for this period. Growth has slowed over the winter months, as expected, and we anticipate growth to improve as temperatures increase moving into spring.

Domestic sales

Average sale weight for the June 2021 quarter was 2.08 kilograms per fish. This is an increase on the March 2021 quarter and reflects an increase in food service and restaurant sales. During the quarter, MCA entered the ACT and Tasmanian markets.

MCA has continued selling live Murray cod domestically. MCA finished the quarter and the financial year with sales ahead of target.

Whitton site update

Construction of the first stage of eight ponds at the new Whitton site is now complete. Fish have been stocked into the site, and are performing well.

Construction of stage two at the Whitton site, which consists of another six ponds, is now underway. Construction is expected to be completed in spring so that stocking into pens can occur in summer.

Hatchery expansion

MCA’s two hatcheries are both currently being expanded. At the Silverwater site we are adding nine new larval rearing ponds, an additional bore, infrastructure expansion and further water supply mains.

Murray Cod Australia Ltd ABN 74 928 625 Level 1, 153 Yambil Street Griffith NSW Australia 2680

Ph +61 269 625 470 www.aquna.com

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Murray Cod Australia Ltd

ASX:MCA

At the Euberta site, MCA is adding 17 new larval rearing ponds, upgrading power and an additional bore. The upgrades to the two hatcheries will increase breeding capacity by 30 per cent. The hatchery upgrades are scheduled for completion in October 2021.

Export performance

Exports halted in the June 2020 quarter as a result of the COVID -19 pandemic causing shutdowns of many of our major overseas end users. We are negotiating to re-enter the USA and European markets in the next quarter.

The team continues to work with our Japanese distributors on our strategy and we expect activities to commence as international markets begin to open.The pandemic conditions in Japan have made it difficult to set a date for re-commencing exports to that market.

Conclusion

The management and board of Murray Cod Australia are very pleased with the significant progress that has been made operationally and the continued development of our domestic market. We look forward to providing future updates to shareholders on our continued progress.

Related party payments

During the quarter the following payments were made to related parties of the entity and their associates as disclosed in Item 6 of the Appendix 4C;

• Anderson’s Investment Services Pty Ltd in respect of Non-executive Chairman fees and superannuation $Nil;

• Managing Director salary and superannuation $54,750

• Bamford Partners Pty Ltd in respect of Martin Priestley non- executive director fees for $8,343;

• Cirrus Pty Ltd in respect of Non-executive director fees of David Crow $7,500

• Payments to Andersons Tax and Investment Services, a related entity of Ross Anderson, for accounting and administrative services on commercial terms for

Murray Cod Australia Ltd ABN 74 928 625 Level 1, 153 Yambil Street Griffith NSW Australia 2680

Ph +61 269 625 470 www.aquna.com

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Murray Cod Australia Ltd

ASX:MCA

• $104,341. This excludes any work completed by Ross Anderson.

• Brigalow Enterprises Pty Ltd in respect of Roger Commins non executive directrors fees $8,250

• Payments to Aquacomm, a related entity of Roger Commins, as a contract grower on commercial terms for fish which were on-sold by MCA, for $78,619;

• Payments to Commins enterprises, which is a related entity of Roger Commins, for engineering and repair works on commercial terms, for $208,348; and

ENDS

This announcement was authorised for release by Ross Anderson, Executive Chairman. For more information contact:

Ross Anderson Murray Cod Australia +61 269 625 470

Murray Cod Australia Ltd ABN 74 928 625 Level 1, 153 Yambil Street Griffith NSW Australia 2680

Ph +61 269 625 470 www.aquna.com

Rule 4.7B

Appendix 4C

Quarterly cash flow report for entities subject to Listing Rule 4.7B

Name of entity

Murray Cod Australia Limited

ABN

74 143 928 625

Quarter ended (“current quarter”)

30 June 2021

Consolidated statement of cash flows	Current quarter $A’000	Year to date (12 months) $A’000
1. Cash flows from operating activities 1.1 Receipts from customers 1.2 Payments for (a) research and development (b) product manufacturing and operating costs (c) advertising and marketing (d) leased assets (e) staff costs (f) administration and corporate costs Total 1.2 1.3 Dividends received (see note 3) 1.4 Interest received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Government grants and tax incentives 1.8 Other – Insurance proceeds 1.9 Net cash from / (used in) operating activities	2,486 <3,805> - <43> 525 -	9,485 <12,822> 1 <133> 1,251 738
	<837>	<1,480>
2. Cash flows from investing activities 2.1 Payments to acquire: (a) entities (b) businesses (c) property, plant and equipment (d) investments (e) intellectual property	<782>	<2,956>

ASX Listing Rules Appendix 4C (01/12/19) + See chapter 19 of the ASX Listing Rules for defined terms.

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Appendix 4C Quarterly cash flow report for entities subject to Listing Rule 4.7B

Consolidated statement of cash flows	Consolidated statement of cash flows	Current quarter $A’000	Year to date (12 months) $A’000
(f) other non-current assets 2.2 Proceeds from disposal of: (a) entities (b) businesses (c) property, plant and equipment (d) investments (e) intellectual property (f) other non-current assets 2.3 Cash flows from loans to other entities 2.4 Dividends received (see note 3) 2.5 Other (provide details if material) 2.6 Net cash from / (used in) investing activities		<2>	<14> <10>
		<784>	<2,980>
3. Cash flows from financing activities 3.1 Proceeds from issues of equity securities (excluding convertible debt securities) 3.2 Proceeds from issue of convertible debt securities 3.3 Proceeds from exercise of options 3.4 Transaction costs related to issues of equity securities or convertible debt securities 3.5 Proceeds from borrowings 3.6 Repayment of borrowings 3.7 Transaction costs related to loans and borrowings 3.8 Dividends paid 3.9 Other (provide details if material) 3.10 Net cash from / (used in) financing activities		- 111 - - <141>	- 380 - 1,784 <352>
		<30>	1,812
4. 4.1 4.2 4.3	Net increase / (decrease) in cash and cash equivalents for the period Cash and cash equivalents at beginning of period Net cash from / (used in) operating activities (item 1.9 above) Net cash from / (used in) investing activities (item 2.6 above)	5,078 <837> <784>	6,075 <1,480> <2,980>

ASX Listing Rules Appendix 4C (01/12/19) + See chapter 19 of the ASX Listing Rules for defined terms.

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Appendix 4C Quarterly cash flow report for entities subject to Listing Rule 4.7B

Consolidated statement of cash flows	Consolidated statement of cash flows	Current quarter $A’000	Year to date (12 months) $A’000
4.4 4.5 4.6	Net cash from / (used in) financing activities (item 3.10 above) Effect of movement in exchange rates on cash held Cash and cash equivalents at end of period	<30>	1,812
		3,427	3,427
5. Reconciliation of cash and cash equivalents at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts		Current quarter $A’000	Previous quarter $A’000
5.1 Bank balances 5.2 Call deposits 5.3 Bank overdrafts 5.4 Other (provide details) 5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above)		3,460 <34> 1	5,101 <24> 1
		3,427	5,078
6. Payments to related parties of the entity and their associates 6.1 Aggregate amount of payments to related parties and their associates included in item 1 and Item 2 Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity report must and an explanation for, such payments
			Current quarter $A'000
			470
			include a description of,

All payments at item 6.1 are made for Directors Fees or in respect of contractual arrangements on arms-length terms.

ASX Listing Rules Appendix 4C (01/12/19) + See chapter 19 of the ASX Listing Rules for defined terms.

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Appendix 4C Quarterly cash flow report for entities subject to Listing Rule 4.7B

	7. Financing facilities Note: the term “facility’ includes all forms of financing arrangements available to the entity. Add notes as necessary for an understanding of the sources of finance available to the entity. Total facility amount at quarter end $A’000 Amount drawn at quarter end $A’000 7.1 Loan facilities 3,950 Nil 7.2 Credit standby arrangements 2,620 34 7.3 Other (Equipment Finance Facility) 2,753 2,753 7.4 Total financing facilities 9,323 2,787 7.5 Unused financing facilities available at quarter end 6,536 7.6 Include in the box below a description of each facility above, including the lender, interest rate, maturity date and whether it is secured or unsecured. If any additional financing facilities have been entered into or are proposed to be entered into after quarter end, include a note providing details of those facilities as well.	Total facility amount at quarter end $A’000	Amount drawn at quarter end $A’000
		3,950	Nil
		2,620	34
		2,753	2,753
		9,323	2,787
			6,536
7.1 Westpac Bank Bill Business Loan, facility term 5 years, Variable interest rate, secured by land and water assets. 7.2 Westpac Overdraft Facility and Credit Card Facility, Variable interest rate, secured by land and water assets. 7.3 Westpac Equipment Finance Facility.

7.1 Westpac Bank Bill Business Loan, facility term 5 years, Variable interest rate, secured by land and water assets.

7.2 Westpac Overdraft Facility and Credit Card Facility, Variable interest rate, secured by land and water assets.

7.3 Westpac Equipment Finance Facility.

8. Estimated cash available for future operating activities	8. Estimated cash available for future operating activities	$A’000
8.1 Net cash from / (used in) operating activities (Item 1.9) 8.2 Cash and cash equivalents at quarter end (Item 4.6) 8.3 Unused finance facilities available at quarter end (Item 7.5) 8.4 Total available funding (Item 8.2 + Item 8.3) 8.5 Estimated quarters of funding available (Item 8.4 divided by Item 8.1)		<837> 3,427 6,536 9,963
		12
8.6 If Item 8.5 is less than 2 quarters, please provide answers to the following questions: 1. Does the entity expect that it will continue to have the current level of net operating cash flows for the time being and, if not, why not?
	Answer: NA

Answer: NA

1. Has the entity taken any steps, or does it propose to take any steps, to raise further cash to fund its operations and, if so, what are those steps and how likely does it believe that they will be successful?

Answer: NA

1. Does the entity expect to be able to continue its operations and to meet its business objectives and, if so, on what basis?

Answer: NA

ASX Listing Rules Appendix 4C (01/12/19) + See chapter 19 of the ASX Listing Rules for defined terms.

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Appendix 4C Quarterly cash flow report for entities subject to Listing Rule 4.7B

Compliance statement

• 1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.

• 2 This statement gives a true and fair view of the matters disclosed.

Date: 30[th] July 2021

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Authorised by:

Ross Anderson Chairman

Notes

1. This quarterly cash flow report and the accompanying activity report provide a basis for informing the market about the entity’s activities for the past quarter, how they have been financed and the effect this has had on its cash position. An entity that wishes to disclose additional information over and above the minimum required under the Listing Rules is encouraged to do so.

2. If this quarterly cash flow report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 107: Statement of Cash Flows apply to this report. If this quarterly cash flow report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standard applies to this report.

3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.

4. If this report has been authorised for release to the market by your board of directors, you can insert here: “By the board”. If it has been authorised for release to the market by a committee of your board of directors, you can insert here: “By the [ name of board committee – eg Audit and Risk Committee ]”. If it has been authorised for release to the market by a disclosure committee, you can insert here: “By the Disclosure Committee”.

5. If this report has been authorised for release to the market by your board of directors and you wish to hold yourself out as complying with recommendation 4.2 of the ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations , the board should have received a declaration from its CEO and CFO that, in their opinion, the financial records of the entity have been properly maintained, that this report complies with the appropriate accounting standards and gives a true and fair view of the cash flows of the entity, and that their opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively.

ASX Listing Rules Appendix 4C (01/12/19) + See chapter 19 of the ASX Listing Rules for defined terms.

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