TERRACOM LIMITED — Capital/Financing Update 2021

Sep 5, 2021

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

6 September 2021

AUGUST 2021 COAL SALES UPDATE

• Coal sales remain strong across the Group.

• August 2021 total managed[1] coal sales of 817kt.

• Year to date annualised managed[1] coal sales total 10Mt 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 August 2021.

August 2021 coal sales were consistent with forecast and remain strong across both the Australia and South Africa business units.

	MANAGED TONNES1	MANAGED TONNES1	MANAGED TONNES1	EQUITY TONNES2	EQUITY TONNES2	EQUITY TONNES2
	Export	Domestic	Total	Export	Domestic	Total
	(000’s)	(000’s)	(000’s)	(000’s)	(000’s)	(000’s)
Australia	161	-	161	161	-	161
South Africa	86	570	656	42	279	321
Total	247	570	817	203	279	482

BLAIR ATHOL RESULT

During August 2021 Blair Athol ( BA ) sold two cargoes, in line with forecast. With the sustained reduction in its Free on Board operating cost base, from the restructure to owner operator, BA is in a positive position to capitalise on the exceptional seaborne coal pricing which is forecast to remain strong.

SOUTH AFRICA RESULT

Operational improvements delivered over the last number of months continue to positively impact the performance and results from the South African ( SA ) operations. All three (3) SA operating mines are well positioned and exceeded contracted offtake quantities to Eskom for the month of August 2021.

Export sales for SA were 86,000 for the month, an increase of approximately 28% from export sales recorded for July 2021, an excellent result given the ongoing challenges with logistics constraints.

1 The data represents total tonnes and assumes 100% ownership of the South African operations.

2 The data represents equity tonnes.

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YTD OPERATIONAL RESULTS

Year to date managed coal sales represent annualised tonnes of 10 million.

Australia	MANAGED TONNES1	MANAGED TONNES1	EQUITY TONNES2	EQUITY TONNES2
	Export (000’s) Domestic (000’s) Total (000’s)	Annualised (Millions)	Export (000’s) Domestic (000’s) Total (000’s)	Annualised (Millions)
	395 - 395	2.37	395 - 395	2.37
South Africa	153 1,117 1,270	7.62	75 547 622	3.73
Total	548 1,117 1,665	9.99	470 547 1,017	6.10

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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