PHOSCO LTD — Board/Management Information 2021

Oct 10, 2021

ASX Announcement 11 October 2021

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CELAMIN TAKES CONTROL OF CHAKETMA PHOSPHATE PROJECT

SUMMARY:

Celamin Holdings Ltd

ASX Code: CNL

ACN 139 255 771 ABN 82 139 255 771

Board and Management:

Robin Widdup Chairman Simon Eley Managing Director Taz Aldaoud Non-Exec Director Tim Markwell Alternate Director to Robin Widdup

Company Secretary

Stefan Ross

• CELAMIN WINS OPERATIONAL CONTROL OF CHAKETMA PHOSPHATE PROJECT

• TECHNICAL REVIEW COMMENCED

• COUNTRY MANAGER APPOINTED

• MAJOR MILESTONE COINCIDES WITH INCREASING PHOSPHATE PRICES

Celamin Holdings Limited (" Celamin " or the “ Company ”) (ASX: CNL) is pleased to announce that it has assumed operational and management control over Chaketma Phosphate SA ( CPSA ), holder of the Chaketma Phosphate Project as a 50.99% shareholder of CPSA. As a result, technical work will begin, and to this end Country Manager Donald Thomson has been appointed.

Securities on Issue

195,045,594 ordinary shares 12,000,000 unlisted options 500,000 unlisted options

Contact

Phone: +61 (0)3 9692 7222 Fax: +61 (0)3 9077 9233 Email: info@celamin.com

Registered Office Address

Level 4, 100 Albert Road South Melbourne VIC 3205

Website

www.celaminholdingsltd.com

Initial technical work will involve a review and assessment of all historical work with the short-term objective of updating the JORC Resources at the project. In conjunction with this, critical steps including the clarification of the financial state of CPSA and the status of the CPSA equity are ongoing, with the potential for additional claims against TMS and its associates in relation to their management of CPSA.

Chaketma is a potential large-scale, world-class phosphate development asset, which comprises six prospects over a total area of 56km[2] . At the time of the dispute the deposit had a JORC compliant Inferred Resource of 130Mt @ 20.5% P₂O₅[1] , confirmed from drilling at only two of the project’s six prospects. Further drilling has taken place since the maiden Resource was defined, and a project update is targeted next quarter.

Mr Simon Eley, Managing Director of Celamin, stated, “We are delighted to have control of Chaketma. This is a big step forward as we embark on a journey to develop a world-class fertilizer project in Tunisia against a backdrop of sharply rising phosphate prices. Our thanks go to our Tunisian legal advisor Makram Boudali and Associates who has been instrumental in the success to date, as well as our other advisors in Tunisia. We are also pleased to welcome back Donald Thomson as our Country Manager whose Tunisian experience and knowledge of the Chaketma Phosphate project will be invaluable as technical work recommences.”

1 ASX announcements dated 9 November 2012 and 18 June 2013

Celamin Holdings Limited

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Background

Celamin had its 50.99% interest in Chaketma restored in November 2020 through arbitration success in 2017 and enforcement in Tunisia’s Court of Cassation in 2019. Following these successes, Tunisian Mining Services (TMS), Celamin’s JV partner in CPSA that committed the illegal transfer of Celamin’s CPSA interest in February 2015, has not complied with arbitration orders as enforced by the Court of Cassation and has been blocking Celamin’s legal right to majority ownership of, and access to, Chaketma and CPSA information.

Following the continued non-compliance by TMS, Celamin was compelled to initiate legal proceedings to have a court appointed expert force CPSA to call an Ordinary General Meeting to appoint Celamin representatives to the board and to call a board meeting to enable Celamin to appoint a President of CPSA and a Director General. Celamin has been wholly successful in this process and now controls the CPSA board. Various TMS actions remain before the courts in Tunisia to overturn the arbitration orders and other judgments in Celamin’s favour. Celamin’s advisors consider these actions have little chance of success and the Company remains committed to actively working towards the restart of feasibility work at Chaketma as soon as possible.

Phosphate Market Update

Phosphate is a critical fertilizer that underpins the world’s food supply. Celamin’s control of the Chaketma Phosphate Project comes at an exciting time as the price of rock phosphate has risen substantially, from US$80/t several months ago to over US$147/t today. According to studies, the continued supply of phosphate fertilisers that underpin global food production is an imminent crisis with some regions including the European Union declaring phosphate a critical strategic commodity.

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Source: World Bank Commodity Prices, F.O.B. North Africa

Celamin Holdings Limited

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Next Steps

Celamin has immediately commenced a process to complete legal and accounting due diligence on CPSA. The financial state of CPSA and the status of CPSA’s equity needs to be determined, and Celamin will also consider criminal action against TMS and the executives or advisors of CPSA if any irregularities are uncovered during this process. TMS owes Celamin US$5M in costs and damages, plus interest calculated daily, and Celamin is actively pursuing TMS for the payment of this amount.

With operational control of CPSA, Celamin has the right to access all Chaketma technical data. At the time of the dispute Chaketma had an Inferred JORC Resource of 130Mt @ 20.5% P2O5[1] . Celamin has identified reputable consultants to conduct a GAP Analysis on the available data to determine the work required to complete a feasibility study at Chaketma. This will also include a review of the Chaketma Resource with recommendations on updating it under JORC 2012.

With the continued progress, Celamin is pleased to announce it has engaged geologist Donald Thomson as Country Manager. Donald will initially work for Celamin on a consulting basis but will move to become resident in Tunis once safe travel from Australia is possible. Donald has more than 35 years of experience as a geologist of which 20 years have been in senior management roles and has worked for companies including Newcrest, Johnsons Well Mining and Legend Mining. Donald has also previously worked for Celamin as Country Manager in 2011-2012 and was instrumental in the first phase of drilling at Chaketma. He is ideally suited to assist with Celamin restarting operations and leading the project team in Tunisia. Donald is a Member of the Australasian Institute of Mining and Metallurgy and qualifies as a Competent Person under the JORC Code. With Donald’s appointment, Tim Markwell will be stepping down as Interim CEO but will remain as an Alternate Director to Robin Widdup.

This announcement is authorised for release to the market by the Board of Directors of Celamin Holdings Limited.

For further information, please contact:

Simon Eley Managing Director T: +61 (03) 9692 7222 E: info@celamin.com

1 ASX announcements dated 9 November 2012 and 18 June 2013