TERRACOM LIMITED — Capital/Financing Update 2021

Dec 6, 2021

TerraCom Limited Blair Athol Mine Access Road Clermont, Queensland, 4721 +61 7 4983 2038 ABN 35 143 533 537

7 December 2021

NOVEMBER 2021 COAL SALES UPDATE

• Forecast coal sales achieved across the Group.

• November 2021 total equity[1] coal sales of 418kt.

• Year to date annualised equity[1] coal sales total 5.7Mt per annum.

TerraCom Limited ( TerraCom or Company ) (ASX: TER), an emerging resources company with a large portfolio of operating assets in Australia and South Africa, is pleased to provide shareholders with the following operational results for November 2021.

Coal sales for the month remain strong across both the Australian and South African business units.

	MANAGED TONNES2	MANAGED TONNES2	MANAGED TONNES2	EQUITY TONNES1	EQUITY TONNES1	EQUITY TONNES1
	Export	Domestic	Total	Export	Domestic	Total
	(000’s)	(000’s)	(000’s)	(000’s)	(000’s)	(000’s)
Australia	178	-	178	178	-	178
South Africa	143	347	490	70	170	240
Total	321	347	668	248	170	418

BLAIR ATHOL

Despite the recent reduction in thermal coal markets, forecast revenue for the December 2021 Quarter is still strong at A$210 per tonne[3] . Should the forecast revenue be achieved, this will result in a forecast operating cash margin of approximately A$122 per tonne[4] based on coal sales of 575,000 tonnes, and will deliver an operating EBITDA of A$70 million for the December 2021 Quarter[5] .

SOUTH AFRICA

Export coal sales for the South African operations increased by 21kt or 17% although total coal sales were below the results achieved in October 2021. The improvement in export tonnes was the result of the short-term road haulage option being

1 The data represents equity tonnes, being the attributable tonnes to TerraCom’s equity ownership.

2 The data represents total tonnes and assumes 100% ownership of the South African operations, noting TerraCom’s interest in the operating mines is 49%.

3 Based on forecast market indexes as at 2 December 2021 and an FX of 0.75.

4 Blair Athol operating costs increase as a result of the increased revenue linked costs (predominantly royalties) and increase in other commodity price driven input costs (predominantly diesel).

5 Non IFRS measure. Based on management accounts. The data presented does not include the results from the South African Business unit or TerraCom corporate costs.

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implemented. Whilst export coal sales continue to improve, ongoing logistics constraints due to Transnet still hamper the planned export expansion strategy.

Year to date contracted domestic offtake quantities have been delivered to Eskom from all three (3) South Africa operating mines.

YEAR TO DATE OPERATIONAL RESULTS

Year to date managed[2] coal sales represent annualised tonnes of 9.4 million.

Australia	MANAGED TONNES2	MANAGED TONNES2	EQUITY TONNES1	EQUITY TONNES1
	Export (000’s) Domestic (000’s) Total (000’s)	Annualised (Millions)	Export (000’s) Domestic (000’s) Total (000’s)	Annualised (Millions)
	900 - 900	2.16	900 - 900	2.16
South Africa	503 2,505 3,008	7.22	246 1,227 1,473	3.54
Total	1,403 2,505 3,908	9.38	1,146 1,227 2,373	5.70

This announcement has been approved by the Board for release.

Craig Ransley Danny McCarthy Executive Chairman Managing Director P +61 7 4983 2038 P +61 7 4983 2038

About TerraCom Limited

TerraCom Limited (ASX: TER) is an emerging company originating as a resource explorer with a large portfolio of operating assets in Australia and South Africa. We are currently enacting a growth strategy towards delivering a Mid-Tier diversified operating and trading business and have global focus on the development of a high yielding diversified asset portfolio for its investors. To learn more about TerraCom visit terracomresources.com.

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