Marula Mining PLC (AQSE: MARU A2X: MARU) Half Year Report

Marula (AQSE: MARU A2X: MARU), an African focused mining and development company, is pleased to provide its unaudited interim results for the six months ended 30 June 2024 (the “Period”).

Chairman’s Statement

The first half of the 2024 financial year has continued at great pace and follows the transformative growth in the Company’s battery metals projects located in South Africa and East Africa that was achieved in the previous 12 months in 2023.

Significant developments were achieved across all areas of the business at both the Company’s operations and exploration and development projects in South Africa, Tanzania and Kenya, and also at the corporate level, with increased funding commitments made by AUO Commercial Brokerage LLC (“AUO”) from £3.75 million to up to £8.53 million under the investment and co-development partnership with Q Global Commodities Group (“Q Global”), that was approved by shareholders during the Period.

With this funding commitment from AUO, the Company was able to significantly strengthen its executive management team and further expand its portfolio of battery metals projects, with new graphite licenses secured at the Nyorinyori and NyoriGreen Graphite Projects in Tanzania (“Nyorinyori” and “NyoriGreen”), an agreement to invest in the Larisoro Manganese Mine in Kenya (“Larisoro”), and budgets approved for the next phase of exploration and development work at the Kinusi Copper Mine in Tanzania (“Kinusi”).

Major progress was made in the mining and processing operations at the Blesberg Lithium and Tantalum Mine in South Africa (“Blesberg”), with offtake agreements secured for the spodumene ore following a previous successful trial shipment of high-grade spodumene ore to a Chinese based electric battery manufacturer. In addition, the first of two XRF Ore Sorters, a Rados SRF100-8 XRF Ore Sorter (“Rados Ore Sorter”) was successfully, installed, commissioned and operated at Blesberg. With its artificial intelligence capabilities, the Rado Ore Sorter demonstrated during the Period that it was able to continuously improve and enhance the recovery, product mass split, sorting aspects and optimisation of the processing technique.

With the growth in its mining operations and exploration and development projects in South Africa and throughout East Africa, the Company was able to secure several highly experienced and capable mining and geological staff to strengthen its management teams in these regions. These key appointments and its strong partners in Tanzania and Kenya have allowed the Company to accelerate its projects in these countries and in such a way as to ensure all stakeholders are actively involved and will benefit from our activities.

During the Period, the Company had anticipated completing both a new primary listing of its shares in London and also a number of secondary listings in South Africa and Kenya to enhance accessibility to all our investors and stakeholders. A secondary listing was successfully completed on A2X Proprietary Limited, an independent stock exchange in South Africa and a further planned listing on the Johannesburg Stock Exchange is planned in Q4 2024 when the Company also anticipates completing a secondary listing on the Nairobi Securities Exchange in Kenya.

Financial Overview

During the Period, the Company saw its total assets increase by almost 20% from 31 December 2023.

The operating loss after taxation for the 6-month period to 30 June 2024 was £947,000, an approximately 33% reduction of the £1,422,000 operating loss after taxation for the corresponding period in 2023.

The basic loss per share from continuing operations was 0.789 pence, an approximately 40% reduction of the 1.326 pence loss per share for the corresponding period in 2023.

During the Period, the Company’s shareholders approved the investment and co-development partnership with AUO, under which committed funding of up to £8.53 million is to be made available to the Company.

An amount of approximately £2.0 million of the £8.53 million has been advanced to the Company by AUO up to the end of the Period and approximately £6.5 million remains available for the Company to utilise across its battery metals projects in South Africa and East Africa.

Outlook

We are pleased to present Marula interim results for the first half of 2024, a period marked by significant progress and milestones across our expanding portfolio. The Company has made great strides in positioning itself as a key player in the battery metals and mining sectors. This transformational period has seen us strengthen our management team, solidify community relations, and acquire new projects, all of which have contributed to Marula’s continued growth.

One of the most notable achievements during this period was the progress at Blesberg with commissioning of the Rados Ore Sorter and subsequent signing of a long-term offtake agreement with Fujax UK Ltd for spodumene ore and concentrate. This was followed by the granting of Blesberg’s mining permit, which will allow the Company to proceed with plans to expand the current stockpile re-processing operations to include the development of a large-scale, conventional open-pit mining operation.

Our Tanzanian graphite projects, including Nyorinyori, NyoriGreen and Bagamoyo, continue to demonstrate exceptional potential. We are focused on advancing these assets through further exploration and community engagement, with a clear path towards resource definition and eventual production. Assay results at both projects highlight high-grade graphite mineralisation, crucial for our growth in the electric vehicle and energy storage sectors.

Our operational capacity has been significantly strengthened through key appointments, ensuring that we are well-equipped to manage our expanding projects while maintaining our focus on operational excellence.

Marula’s investment in Kenya also marks a significant milestone, positioning the Company as a key player in the battery metals supply chain as we work towards increasing manganese ore production at Larisoro mine and export to international markets.

Our partnership with QGC and its Dubai-based entity AUO, continues to yield positive results, with the approvals received from shareholders for the increased £8.53 million investment and co-development agreement. Having secured such substantial funding to accelerate the development of our battery metals projects, ensures we have the necessary capital to deliver on our growth ambitions.

As we look ahead to the remainder of 2024 and beyond, the Company is well-positioned to continue its strong growth trajectory across all its operations. With the significant progress made in the past six months, we expect further advancements in both our existing projects and new acquisitions, bolstering our portfolio of high-grade battery metals and critical minerals.

Our focus remains on maintaining this momentum, increasing production, and driving exploration across all our key projects. The strategic initiatives and partnerships we have implemented are already delivering results, and we are confident that Marula is well-positioned to capitalise on the growing global demand for battery metals.

On behalf of the Board, I would like to extend my sincere thanks to our dedicated management team, employees, partners, and shareholders for their continued support. The future looks bright for Marula , and we are excited about the opportunities that lie ahead.

Richard Lloyd – FIMMM FGS

Chairman

30 September 2024

For further information, please visit www.marulamining.co.uk or contact:

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.

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