TERRACOM LIMITED — Capital/Financing Update 2021

Aug 4, 2021

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

5 August 2021

JULY 2021 COAL SALES UPDATE

TerraCom Limited ( TerraCom or Company ) is pleased to provide shareholders with the following operational results for July 2021.

July 2021 coal sales continue to be 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	234	-	234	234	-	234
South Africa	67	547	614	33	268	301
Total	301	547	848	267	268	535

BLAIR ATHOL RESULT

During July 2021 Blair Athol ( BA ) sold three cargoes, one which sailed early in the month due to logistics delays experienced at the end of June 2021.

BA continues to deliver superior operational results and with the reduced sustained Free on Board operating cost base, the operation is in a strong position to capitalise on the exceptional seaborne coal pricing currently being experienced.

SOUTH AFRICA RESULT

Eskom demand has continued at pre-covid sales levels for the South African ( SA ) operations with a total of 547,000 tonnes delivered to Eskom during July 2021. Export sales were down compared to the prior month, attributable to supply chain constraints and scheduled maintenance on the rail line.

The monthly performance of the domestic sales to Eskom is an exceptional result given the political unrest which saw delays in coal sale deliveries early in the month and major interruptions to the export supply chain. As previously communicated, Management has taken action to deal with the effects of these delays and implemented procedures to minimise impact going forward. The Company looks forward to continuing to advance the export strategy in SA over the coming months.

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

Managed coal sales based on July 2021 sales represents annualised tonnes of 10.17 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)
	234 - 234	2.81	234 - 234	2.81
South Africa	67 547 614	7.36	33 268 301	3.61
Total	301 547 848	10.17	267 268 535	6.42

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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