Marula Mining PLC

("Marula'' or the "Company")

 5 December 2024

Blesberg Mine to Move to Contract Mining

Ongoing Restructure of Equipment Leasing Agreements

Marula Mining (AQSE: MARU) an African focused mining and development company, is pleased to confirm that mining operations at its Blesberg Lithium and Tantalum Mine in South Africa ("Blesberg") are anticipated to move to a contract mining basis in February 2025. The anticipated move to a contractor mining operation follows a successful competitive tender process completed over the past three months. The contractor is anticipated to mobilise to Blesberg in Q1 2025 and commence both the larger scale planned conventional open pit mining operations as well as the reprocessing of the existing stockpiles from February 2025, subject to execution of the mining contract, expected by end of December 2024.

The Company also announces that in parallel, the Company and its South Africa subsidiaries, Southern African Lithium and Tantalum Mining (Pty) Limited ("SALT") and Muchai Mining (SA) Pty Limited ("MMSA") is finalising leasing agreements with South African finance company EQSTRA Corporation Limited ("EQSTRA") under which it is now proposed to directly lease, for total consideration of approximately £1.33 million under standard 4-year leasing agreements, the majority of the mine support vehicles and processing equipment that were previously supplied to Blesberg under leasing agreements with Q Global Commodities ("QGC") ("Restructuring Agreement"). The Restructuring Agreement and additional supporting documentation is expected to be completed by the end of December 2024.

The move to contract mining operation and entering into the Restructuring Agreement for equipment at Blesberg, demonstrates the Company's commitment to expand the open pit mining and processing operations at Blesberg and at the adjoining Northern Cape Lithium and Tantalum Project (the "NCLT Project") in 2025 to produce both a high-value intermediary lithium product, other critical and battery minerals such as tantalum, niobium and tungsten, and by-product minerals such as feldspar and mica.

Highlights:

·    The mining contractor will be responsible for conventional open pit mining of the lithium and tantalum bearing pegmatites that have been identified at Blesberg and based on the mining plan and open pit mine design that was submitted to South Africa's Department of Mineral Resources and Energy ("DMRE") in Q2 2024 as part of the process to secure the Blesberg Mining Permit

·    In addition, the mining contractor will  be responsible for the mining of the residual mining waste stockpiles at Blesberg, where high-grade spodumene ores have been identified from the sampling and drilling activity undertaken by the Company

·    The mining contract is to be on a standard schedule of rates basis and includes the provision of all necessary mobile mining equipment to achieve the necessary planned rates of run-of mine production under the currently approved Blesberg mine plan

·    The mine plan that has been presented to the mining contractor is the same as that which was submitted and accepted by the DMRE earlier in the year and upon which the Blesberg Mining Permit was granted

·    This mine plan and other key technical reports have also been included in the Company's Mining Right application that is currently being submitted to the DMRE along with specialist studies which was conducted including Traffic Impact Assessment, Terrestrial and Biodiversity Studies, Geohydrology, Archaeology, Heritage and Palaeontology and Marketing Studies

·    Further information on the mining contractor and mining contract will be released by end of December 2024 once the final formal mining contract has been executed

·    As a result of the planned appointment of the mining contractor, and the mobilisation of its own equipment to site, the Company is restructuring QGC's leasing agreement over the provision of a number of the mobile mining, mine support vehicles and processing equipment to Blesberg

·    The Company's South African subsidiaries SALT and MMSA are finalising a restructuring agreement with QGC and EQSTRA to take on the leasing agreements for all the mine support vehicles and the majority of the onsite processing equipment

·    The formal documentation in respect to the Restructuring Agreement and underlying leasing arrangements are due to be signed by the end of December 2024

·    This equipment is expected to include 7 mine support vehicles and 2 major items of mineral processing equipment

·    This equipment is currently valued at ZAR30.8 million (approximately £1.33 million) and is expected be financed over a 4-year period through standard lease financing provided to SALT

·    With the mining contractor to mobilise its own mining equipment to site in January 2025, a number of the existing mobile mining equipment on site at Blesberg will no longer be needed and as such the Restructuring Agreement does not include this equipment

·    The Board of Directors believe that SALT's ability to potentially secure this lease financing is an indication of the strengthened balance sheet of SALT over the past 12 months and is a sign of the Company's commitment at the Blesberg Mine on both the planned conventional open pit mining operations and on the planned joint venture in respect to the commissioning, financing, and operation of a lithium acid leaching plant to produce an intermediate lithium product for use in the manufacture of lithium batteries and other high value lithium products

Jason Brewer, Marula Mining PLC CEO said:

"The change in dynamics of the lithium market in 2024 has already seen the Company adapt its strategy and move quickly in its negotiations with a Chinese battery manufacturer and its current lithium offtake partner to transition towards the production of high-value lithium products in 2025.

"With the planned development of the larger open pit mining operations in Q1 2025, the Company's move to appoint a mining contractor in 2025, is an important one and needed to achieve the planned mine production rates and deliver the necessary run-of-mine material to the planned higher value processing facilities.

"As these discussions have advanced, I am pleased with the successful work that our COO, Martin Westerman and our General Manager South Africa, Henk van Zyl are completing to secure the necessary lease funding of over £1.3 million for the leasing of a large portion of the mobile mining and processing equipment that was previously provided by QGC.  The Board believes this is a major step forward by the Company and demonstrates the strengthening of our operating subsidiaries in South Africa.

"Our focus as always remains on delivering sustainable growth and shareholder value and with these developments at Blesberg I am extremely positive about our outlook for 2025."

The Directors of Marula are responsible for the contents of this announcement. This announcement contains inside information for the purposes of UK Market Abuse Regulation.

About Marula Mining

Marula Mining (AQSE: MARU A2X: MARU) is an African focused battery metals investment and exploration company and has interests in several high value mining operations and mine development projects in Africa: the Blesberg Lithium and Tantalum Mine, Northern Cape Lithium and Tungsten Project, Korridor Lithium Project  and Kruisrivier Cobalt Mine, all in South Africa; the Larisoro Manganese Mine and Kilifi Manganese Processing Operation both in Kenya; the Kinusi Copper Mine, the Nyorinyori Graphite Project, the NyoriGreen Graphite Project and the Bagamoyo Graphite Project all in Tanzania and the Nkombwa Hill Project in Zambia. As we advance operations at these battery metals focused projects, Marula will continue to build and expand its interests in other high-quality projects in Africa.

Marula's strategy is to identify and invest in advanced and high-value mining projects throughout East, Central and Southern Africa that the Directors believe would deliver returns for its shareholders. The Board and management team aims to establish Marula as a socially and environmentally responsible, sustainable, and profitable producer of critical metals and commodities that are of increasingly strategic importance to modern technologies and the global economy. Marula's shares are traded on AQUIS Stock Exchange (AQSE) in London and A2X Markets in South Africa. Marula is exploring opportunities to admit its shares to trading on Kenya's Nairobi Securities Exchange and South Africa's Johannesburg Stock Exchange.

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Caution:

Certain statements in this announcement, are, or may be deemed to be, forward looking statements. Forward looking statements are identified by their use of terms and phrases such as ''believe'', ''could'', "should" ''envisage'', ''estimate'', ''intend'', ''may'', ''plan'', ''potentially'', "expect", ''will'' or the negative of those, variations or comparable expressions, including references to assumptions. These forward-looking statements are not based on historical facts but rather on the Directors' current expectations and assumptions regarding the Company's future growth, results of operations, performance, future capital and other expenditures (including the amount, nature and sources of funding thereof), competitive advantages, business prospects and opportunities. Such forward looking statements reflect the Directors' current beliefs and assumptions and are based on information currently available to the Directors.