ROCKETDNA LTD. — Interim / Quarterly Report 2024

Oct 24, 2024

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ASX Announcement

September 2024 Quarterly Activities Report

HIGHLIGHTS

• Four new contracts signed with three customers that deliver $3.521m in additional Contract Value, which takes the 30 September Company Total Contract Value to $6.333m

• Expanded into a new growth sector with the selection of RocketDNA by the Western Australian Police Force to support their Drone as First Responder (DFR) program

• The Company continues to progress negotiations with customers across a robust sales pipeline for autonomous drone opportunities in a range of sectors including Mining, Government, Infrastructure, Insurance, Agribusinesses and Asset Management

• $1 million debt facility secured to accelerate growth plans to deploy AI-enabled xBot[®] autonomous drone solutions in a number of customer markets

• Secured a purchase order to deploy its xBot® solution for tailings dam monitoring at a major copper mine in South Australia

25 October 2024, RocketDNA Ltd (ASX: RKT ) ( RocketDNA or the Company) is pleased to provide its September 2024 Quarterly Activities Report. Developments during this quarter reinforce the Company’s position as a leader in the autonomous drone technology space and highlight the increasing recognition of RocketDNA’s solutions across multiple industries and geographies.

During the quarter, the Company renewed a three-year contract with Black Mountain Mining (Pty) Ltd, a subsidiary of Vedanta Zinc International (Total Contract Value (TCV) of AU$525k) further cementing its position in South Africa’s mining sector. The Company also expanded its relationship with Rustenburg Platinum Mines, a subsidiary of Anglo American, securing a two-year deal (TCV AU$2.646m) that extends the current drone-based surveying services and introduces new critical infrastructure security solutions.

In a major new vertical for RocketDNA, the Company was selected by the Western Australian Police Force ( WAPOL ) to supply xBot[®] drones and associated systems for their Drone as First Responder ( DFR ) program, enhancing airborne law enforcement across Western Australia. Additionally, two new contracts with SSG Security Solutions Pty Ltd for the PatrolBot autonomous surveillance solution underscores the growing demand for RocketDNA technology to secure high-value assets with minimal human intervention.

To further support the expansion, the Company secured a $1 million unsecured revolving debt facility to fuel growth initiatives, including deploying AI-enabled xBot[®] drones and other strategic priorities.

Post the end of the quarter, RocketDNA announced that it had secured a purchase order with WSP Australia Pty Ltd (WSP) to deploy its xBot® autonomous drone solution at a major copper mine in South Australia (refer to ASX Announcement 24 October 2024 ).

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Commenting on the September quarter, RocketDNA MD & CEO Christopher Clark said:

“This quarter marks a pivotal moment in RocketDNA’s journey, not just through the expansion of our mining sector partnerships but also with our first steps into law enforcement and security services. Securing these high-profile contracts demonstrates the increasing demand for our autonomous drone solutions across various industries.

Our ability to adapt, grow, and lead in this dynamic market sets the foundation for sustained success and a stronger foothold in the AI-driven drone sector. We are just getting started, and the future looks bright for RocketDNA as we continue to innovate and deliver cutting-edge solutions to our customers.”

Renewal of Multi-Year Contract with Vedanta Zinc

In July, the Company announced that it had signed a multi-year contract extension, via its subsidiary RocketDNA ZA (Pty) Ltd, with Black Mountain Mining (Pty) Ltd (majority owned by Vedanta Zinc International) in South Africa, for drone surveying services at its Gamsberg Mine (refer to ASX Announcement 5 July 2024).

The contract is for three years, ending 31 May 2027, and has a TCV of AU$525k (ZAR6.453m) and Annual Recurring Revenue ( ARR ) of AU$175k (ZAR2.151m)[1] .

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Figure 1: Example of RocketDNA xBot® solution, installed in Australia

1 Exchange Rate: 1 ZAR = 0.0814 AUD

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Contract with Calidus Resources subsidiary

In July, the Company announced that it would terminate a contract with a subsidiary of Calidus Resources Limited (ASX:CAI) (refer to ASX Announcement 11 July 2024). KordaMentha were appointed as Receivers and Managers to Calidus Resources Limited (ASX:CAI) and two of its subsidiaries ( Calidus ), including Keras (Pilbara) Gold Pty Ltd.

Previously, on 26 March 2024, RocketDNA announced that it had entered into a three-year contract with Keras (Pilbara) Gold Pty Ltd to provide Calidus with daily surveys and imagery through its autonomous xBot[®] solution, which commenced operations in June 2024.

Whilst the contract with Calidus has been terminated, RocketDNA received month-to -month purchase orders from KordaMentha and continued to supply imagery and survey data to support the sale of the business. Rocket DNA has also received a first purchase order from Keras (Pilbara) Gold Pty Ltd under its new ownership and is actively supporting the new owners as they prepare to recommence mining operations, with the expectation of a long-term arrangement being agreed upon.

Extension of Drone Services Deal with Anglo American Subsidiary

RocketDNA confirmed in August that it had renewed and extended a contract with Rustenburg Platinum Mines Limited, a subsidiary of Anglo American plc ( Anglo American ) (LON:AAL) for surveying and security services. (refer to ASX Announcement 8 August 2024)

Contract Overview - RocketDNA, through its subsidiary RocketDNA ZA Proprietary Ltd, successfully renewed and extended an existing contract with Rustenburg Platinum Mines Limited, wholly owned by Anglo American. The Company also secured additional services that substantially increased the existing partnership.

Key terms include:

• Provision of drone technology services across several South African based Anglo American mining operations to deliver:

• surveying data (stockpile data, monitoring of pits, etc); and,

• security (monitoring of critical infrastructure).

• Total Contract Value of A$2.646m[1] / ZAR 31.883m

• Annual Recurring Revenue of A$1.176m[1] / ZAR 14.170m

• 2-year deal subject to termination of 90 days’ notice and contains various other terms considered standard for agreements of this nature, expiring 31 October 2026.

Selection by Western Australia Police to Support Drone Program

In August, the Company was selected, via a public tender process, to supply the Western Australia Police Force ( WAPOL ) with drone-in-a-box systems to develop their Drone as First Responder ( DFR ) program. (refer to ASX Announcement 29 August 2024).

As a part of the program, drone-in-a-box systems will be strategically positioned across the State, ready for rapid deployment in a wide range of law enforcement tasks, including emergency response, surveillance, and search and rescue operations. The program will position WAPOL as a leader in adopting modern technology to enhance its operational capabilities. It will provide real-time intelligence that supports better decision-making for its front-line workforce.

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Figure 2: Marketing Image - Source: RocketDNA Ltd

Terms of Award - There is no guaranteed minimum order or formal commitment at this stage, so we are unable to determine the revenue potential from this public tender award. As a preferred supplier, RocketDNA was awarded an initial 3-year period, with an option to extend for a further two one-year periods, at the sole discretion of the WA Police Force. This award allows RocketDNA to work closely with WAPOL to shape the future of DFR in Western Australia.

The Company has noted the results of the public tender process on the WA Tenders platform and will update the market as the opportunity develops.

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New Contracts for Autonomous PatrolBot with SSG Security Solutions

In September, the Company announced the signing of two significant contracts for its xBot[®] surveillance model ( PatrolBot ) with SSG Security Solutions Pty Ltd (refer to ASX Announcement 2 September 2024).

The PatrolBot system is a cutting-edge, autonomous surveillance solution designed to continuously secure critical perimeters and monitor assets. These contracts focus on securing mining sites, leveraging PatrolBot's ability to operate autonomously, and significantly enhancing security operations without constant human supervision.

Industries such as mining, energy, and utilities face ongoing challenges securing vast, remote areas. Traditional methods like static cameras and human patrols often fall short in effectively covering extensive perimeters, leaving sites vulnerable to theft, illegal activity, and security breaches - particularly in high-risk regions. These approaches are not only limited in scope but also costly to maintain.

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Figure 3: Example of RocketDNA PatrolBot[®] surveillance solution , installed in Australia

RocketDNA’s PatrolBot offers a cutting-edge solution to these challenges. Powered by AI-driven drones, PatrolBot autonomously patrols large perimeter areas, detecting and responding to irregularities in real-time. This system provides continuous, cost-effective coverage without human intervention, enabling clients to monitor and protect their sites more efficiently. PatrolBot can identify potential threats, share live video feeds, and coordinate with on-site security teams to quickly mitigate risks. This advanced automation reduces labour costs, shortens response times, and significantly enhances site security.

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Contracts Overview - These two contracts, each with 12-month terms, were awarded to RocketDNA (RocketDNA ZA Pty Ltd) by SSG Security Solutions Pty Ltd. The contracts involve deploying PatrolBot units across several mining sites to monitor and report defined areas using a drone or unmanned technology for security overwatch and intelligence gathering. These PatrolBot units will provide comprehensive, autonomous perimeter security, protecting critical assets from illegal activities such as unauthorised mining, trespassing, and sabotage.

Following an initial period of six months, either party may terminate the agreement without prejudice by giving 90 days’ notice. The agreement contains various other terms considered standard for agreements of this nature. The contracts have a combined Total Contract Value contribution of approximately A$350,000.[2]

$1m Unsecured Debt Finance Successfully Executed

In August, the Company successfully executed a $1 million unsecured revolving debt facility with leading alternative asset management company Altor Capital Pty Ltd ( Altor Capital ) (refer to ASX Announcement 27 August 2024). Altor Capital has been a major shareholder in RocketDNA since January 2023. During this time, Altor Capital worked closely with the Company and developed a core understanding of our business requirements and growth profile. The facility will enable the Company to accelerate its growth plans to deploy AI-enabled xBot[®] autonomous drone solutions in several customer markets.

Key terms of the debt facility include:

• Two tranches of $500,000 each, with the second tranche available from 1 January 2025 subject to the Lender’s investment committee’s approval;

• 8% p.a. interest rate over a 42-month term;

• 1% per annum fee payable on any undrawn amount of each tranche (if any); and

• Can be repaid anytime during the term.

In addition, RocketDNA issued to nominees of Altor Capital 20 million Tranche 1 Options for the Tranche 1 Advance and will issue 20 million Tranche 2 Options for the Tranche 2 Advance, exercisable at $0.011 per share. This financing structure aligns with RocketDNA’s strategy to secure the necessary capital while preserving its shareholder value and enhancing its growth trajectory in the rapidly evolving drone and AI sectors.

New Customer Orders xBot® for Copper Mine Monitoring

Post the end of the quarter, RocketDNA announced that it had secured a purchase order with WSP Australia Pty Ltd (WSP), to deploy its xBot® autonomous drone solution at a major copper mine in South Australia (refer to ASX Announcement 24 October 2024 ).

The deployment will support monitoring of tailings dam construction work and ongoing monitoring of tailings deposition. RocketDNA’s xBot® will play a critical role in monitoring this project's progress and providing real-time data to ensure compliance and operational efficiency.

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2 ZAR = R4,211,604

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Cash and Appendix 4C

As of 30 September 2024, the Company had a cash balance of $1.631m (30 June 2024: $1.439m)

As per item 1.9 of the attached Appendix 4C, Net cash used in operating activities fell to $106k from $192k in the June quarter, predominantly driven by the absence of the one-off Ghana tax payment.

Net cash from financing activities (item 3.10) was $555m inflow (previous quarter $82k outflow), driven by the drawdown of the first tranche of the Altor Capital debt finance (see above) and a drone equipment financing sale and leaseback transaction.

As per item 6.1 of the Appendix 4C, payments to related parties and their associates totalled $153k, including $63k for Chris Clark's director fees, $19k for a related party, $57k for Paul Williamson's CFO services, and $14k for David Morton's director fees.

-ENDS-

This announcement has been authorised for release by the Board of RocketDNA Ltd .

For more information, please contact:

Christopher Clark Mark Flynn Managing Director & CEO Investor Relations contact@rocketdna.com investors@rocketdna.com +61 (0)8 6245 9194 +61 (0) 416 068 733

About RocketDNA

RocketDNA Ltd (ASX: RKT) is a multinational drone-based data service and technology provider, listed on the ASX, offering aerial surveying, mapping, security, surveillance, and asset inspection for enterprise customers in the mining, agricultural, and engineering sectors. Through fully outsourced, AI-driven solutions, RocketDNA remotely operates drone systems, enabling customers to focus on ground operations while ensuring fast data turnaround. The company generates revenue through multi-year contracts and short-term projects with major clients, including Tier 1 and Tier 2 miners such as South32, Newmont, Vault Minerals, and Seriti Coal. RocketDNA operates primarily in Australia and Africa, with regional offices in Perth, Johannesburg, and Accra.

Scan this QR code to subscribe to RocketDNA’s latest company News & Announcements, else click here

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Rule 4.7B

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

Name of entity

ROCKETDNA LIMITED

ABN 17 618 678 701

Quarter ended (“current quarter”)

30 September 2024

Consolidated statement of cash flows	Current quarter $A’000	Year to date (9 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 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)/received 1.7 Government grants and tax incentives 1.8 Other (provide details if material) 1.9 Net cash from / (used in) operating activities	1,984 - (496) (52) (27) (914) (605) - 5 - (1) - -	5,831 (2) (1,247) (206) (87) (2,522) (2,037) - 21 - (160) - 7
	(106)	(402)

ASX Listing Rules Appendix 4C (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

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Rule 4.7B

2. Cash flows from investing activities 2.1 Payments to acquire or for: (a) entities (b) businesses (c) property, plant and equipment (d) investments (e) intellectual property (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 (return of office rental deposits) 2.6 Net cash from / (used in) investing activities	- - (234) - - (52) - - 26 - - - - - 12	- - (600) - - (134) - - 33 - - - (7) - 23
	(248)	(685)
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	- - - - 635 (80) - - -	35 - - (12) 635 (238) - - -
	555	420

ASX Listing Rules Appendix 4C (17/07/20) + 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

4. 4.1 4.2 4.3 4.4 4.5 4.6	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) 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	1,439 (106) (248) 555 (9)	2,317 (402) (685) 420 (19)
		1,631	1,631
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)		1,512 119 - -	1.398 41 - -
		1,631	1,439
6. Payments to related parties of the entity and their associates			Current quarter $A'000
6.1 Aggregate amount of payments to related parties and their associates included in item 1 153 6.2 Aggregate amount of payments to related parties and their associates included in item 2 - Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity report must include a description of, and an explanation for, such payments.			153
			-

ASX Listing Rules Appendix 4C (17/07/20) + 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. 7.1 7.2 7.3 7.4 7.5 7.6	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 Loan facilities 881 881 Credit standby arrangements 29 16 Other (see below) 455 455 Total financing facilities 1,365 1,352 Unused financing facilities available at quarter end 13 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
		881	881
		29	16
		455	455
		1,365	1,352

8.	Estimated cash available for future operating activities	$A’000
8.1 8.2 8.3 8.4 8.5 8.6	Net cash from / (used in) operating activities (item 1.9) (106) Cash and cash equivalents at quarter end (item 4.6) 1,631 Unused finance facilities available at quarter end (item 7.5) 13 Total available funding (item 8.2 + item 8.3) 1,644 Estimated quarters of funding available (item 8.4 divided by item 8.1) 15.51 Note: if the entity has reported positive net operating cash flows in item 1.9, answer item 8.5 as “N/A”. Otherwise, a figure for the estimated quarters of funding available must be included in item 8.5. If item 8.5 is less than 2 quarters, please provide answers to the following questions: 8.6.1 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?	(106) 1,631 13
		1,644
	N/A
	8.6.2 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?
	N/A

ASX Listing Rules Appendix 4C (17/07/20) + 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

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

N/A

Note: where item 8.5 is less than 2 quarters, all of questions 8.6.1, 8.6.2 and 8.6.3 above must be answered.

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: 25 October 2024

Authorised by: .By the board

(Name of body or officer authorising release – see note 4)

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 (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

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