Marula Mining PLC

("Marula'' or the "Company")

26 March 2025  

5-Year Budget Approved for Kilifi Manganese Processing Plant

Marula Mining PLC (AQSE: MARU A2X: MAR) an African focused mining and development company, is pleased to announce that the Company's Board has approved the 5-year budget ("5-Year Budget") for the operation of the Kilifi Manganese Processing Plant (the "Kilifi Plant") located in the Tezo Area, Kilifi County in Kenya.

The 5-Year Budget has been approved following the recently signed 5-year Agency Framework Contract with Baosteel Resources South Africa (Pty) Ltd ("Baosteel Resources") for the purchase and sale of manganese from the Kilifi Plant as announced on 4 March 2025 and the export logistics agreement with Scan Global Logistics Kenya Limited ("SGL Kenya"), for the transportation and export of manganese ore as announced on 24 March 2025. It also follows the signing of three manganese ore supply agreements for the supply of, in aggregate, up to 20,000 tonnes per month ("tpm") of manganese ore to the Kilifi Plant. 

The Company currently holds an 80% interest in the Kilifi Plant through its subsidiary Muchai Mining and Processing Kilifi Pty Limited.

Highlights:

·    The 5-Year Budget has been formally approved by the Company's Board

·    Key forecast results from the budget on a 100% project basis are summarised.

^{The 5-year Budget has used manganese prices of US$4.61 per dry metric tonne unit of manganese and a US$:KES exchange rate of 127}

·    The Directors emphasise that the figures presented reflect expected results calculated based on current revenue and volumes agreed, or anticipated to be agreed, between the Company and various counterparties as of the date of this announcement. No certainty or assurance can be provided that these results will be achieved in the stated period, or at all.

·    Under the 5-Year Budget, processing operations are expected to commence in April 2025 and continue over the term of the 5-year Agency Framework Contract with Baosteel Resources through to March 2030

·    The Kilifi Plant remains on track to commence processing operations in April 2025 and deliver the first 5,000t of manganese ore due under this contract

·    All manganese ore material is sourced under existing three ore supply contracts. The 5-Year Budget assumes purchasing 80% of available contracted ore at ore grades verified through internal and external testing and assays

·    Sales of manganese over the 5-Year are based on the agreed tonnages as set out in the Agency Framework Contract with Baosteel Resources

·    The sales price of the manganese used over the term of the 5-Year Budget is referenced to the current price as published by Shanghai Metals Market and reflects the traded price for a 36-37% manganese ore through Tianjin Port in Northern China

·    Sales commissions have been agreed under the contract with Baosteel Resources and royalties due to the Kenyan government are as required under current mining legislation

·    Transportation, export and logistics costs are based on the actual unit prices as set out under export logistics agreement with Scan Global Kenya

·    Other operating costs including ore purchase costs and Kilifi plant processing costs are based on actual current contracted costs and current consumable pricing and where necessary based on operational analysis and assumptions by the Company's mineral processing consultants Zegatron Engineering Solutions

·    Labour and administrative costs are covered under site-contracted and already executed agreements with new employees and service providers

·    Over 95% of the current employees have been sourced from the surrounding Kilifi communities and with a commitment to source 100% of any casual or part-time employees from the local communities

·    Funds to complete the current modifications of the Kilifi Plant are already in place and any future funding for plant expansion and new mine development are proposed to be funded from cashflow from operations

Jason Brewer, CEO of Marula Mining, said:

"Approval of this 5-Year Budget for the Kilifi Manganese Processing Plant is a major step forward for the Company and has been undertaken to allow the Company's executive management and Board to properly assess the economic contribution that is forecast to be made over the term of the recently signed agency framework contract with Baosteel Resources.

"The 5-Year Budget follows a detailed assessment of the planned operations by the Company's technical and financial teams and executive management, and which has been advanced in parallel with the operational activities and plant modifications that are currently ongoing at the Kilifi Plant and which are to be finished shortly.

"A number of key agreements and contracts have been finalised by the Company in recent weeks and months and these have provided greater financial certainty in assessing the projected economic performance of the planned operations. This is in addition to the on-site progress at the Kilifi Plant which has provided the Company's executive management with confidence in its ability to commence processing operations on time in April 2025 and meet the initial 5,000t of manganese deliveries under the agency framework with Baosteel Resources.

"I look forward in providing further updates on operations and development activities at the Kilifi Plant shortly."

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: MAR) 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 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 and the NyoriGreen Graphite Project all in Tanzania. 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.