TERRACOM LIMITED — Interim / Quarterly Report 2021

May 13, 2021

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

14 May 2021

APRIL 2021 COAL SALES UPDATE – SOUTH AFRICA

Following the announcement on 11 May 2021 (attached as Appendix A for reference) , TerraCom Limited ( TerraCom or Company ) is now pleased to provide shareholders with the following financial results for April 2021 for the South African Operations.

APRIL 2021 EBITDA RESULT

Operating EBITDA[1] from the Australia and South Africa Business Units (including other equity holders) for the month of April was as follows:

	Australia	South Africa
EBITDA (AUD $millions)	$7.0	$3.5
EBITDA (AUD$ / Sold Tonne)	$28.2	$5.2

The combined result achieved for the month of April 2021 (A$10.5 million) equates to more than 50% of the combined result achieved for the entire March 2021 Quarter (A$14.7 million).

As outlined in the table below, the operating EBITDA margin[1] has continued to improve as a result of increasing export thermal coal prices.

		EBITDA (AUD$ / Sold Tonne)	EBITDA (AUD$ / Sold Tonne)
	Q3 FY2021	April 2021	Increase /	(Decrease)
			$	%
AUSTRALIA	$15.5	$28.2	$12.7	82%
SOUTH AFRICA	$3.8	$5.2	$1.4	37%

1 Non IFRS measure. Based on management accounts. The data presented represents 100% of the result from the South Africa Business Unit and therefore includes other equity holders, noting TerraCom’s equity interest in the mines ranges from 48.9% to 70.5%. The data presented does not include the TerraCom corporate costs.

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

APPENDIX A

11 May 2021

APRIL 2021 COAL SALES UPDATE

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

OPERATIONAL RESULTS

Recorded coal sales during April 2021 were strong across both the Australia and South Africa business units.

Blair Athol ( BA ) continues to deliver superior operational results under its owner operator model and its strong focus on production to meet the increasing demand for the Company’s higher grade energy coal from BA continues.

In line with the outlook advised within the 31 March 2021 Quarterly Activities Report, demand levels from Eskom have stabilised and the Company is now continuing to achieve pre-covid sales levels from its South African ( SA ) Operations. Domestic tonnes delivered to Eskom during the month of April 2021 (480,000 tonnes) were a 12% improvement on tonnes delivered to Eskom during the March 2021 quarter (monthly average of 429,000 tonnes).

Export tonnes from SA continue to increase following the implementation of the export strategy in March 2021. Tonnes achieved in the month of April 2021 were 181,000 tonnes compared to the March 2021 quarter of 136,000 tonnes per month.

	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)
Australia3	248	-	248	248	-	248
South Africa	186	480	666	91	235	326
Total	434	480	914	339	235	574

1 The data represents total tonnes and assumes 100% ownership of Universal Coal plc.

2 The data represents equity tonnes.

3 Includes 154,000 tonnes for a ship which commenced loading on 29 April 11:49PM and completed loading at 4:41am on 1 May 2021.

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BLAIR ATHOL EBITDA RESULT

The Operating EBITDA[4] from the Australian Business Unit for the month of April 2021 was A$7.0 million, representing an EBITDA margin of approximately A$28 per tonne. This was underpinned by the sustained reduced cost base of approximately A$60 per tonne. The Company will update the market with financial results for the April month for SA once finalised.

Coal sales at BA remain strong and all sales for the June 2021 quarter (totalling 675,000 tonnes) have been contracted. Sales at this level represent an annualised run rate of 2.7Mpta.

Export thermal coal prices remain strong, and the Company is well placed to continue to take advantage of the improved pricing position, in both Australia and South Africa.

YTD OPERATIONAL RESULTS

Despite the ongoing uncertainty and challenges faced by COVID-19, the forecast total coal sales for the 2021 financial year remains at approximately 9.3 million tonnes.

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)
	1,985 - 1,985	2.38	1,985 - 1,985	2.38
South Africa	1,310 4,467 5,777	6.93	642 2,386 3,028	3.63
Total	3,295 4,467 7,762	9.31	2,627 2,386 5,013	6.01

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.

4 Non IFRS measure. Based on management accounts including the shipment which completed loading on 1 May 2021. The data presented represents Blair Athol only, and therefore excludes results from the South Africa Business Unit and TerraCom corporate costs.

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