Marula Mining PLC - Ore Supply Agreement Signed for Kilifi

Marula Mining PLC

( "Marula'' or the "Company")

1 August 2024           

Ore Supply Agreement Signed for Kilifi Manganese Processing Plant

Marula Mining PLC (AQSE: MARU A2X: MARU) an African focused mining and development company, is pleased to announce that the Company's wholly owned subsidiary, Muchai Mining Kenya Limited ("MMK"), has entered into a Manganese Ore Supply Agreement ("Ore Agreement") with Kenyan incorporated and 100% female owned mining, mineral processing and logistics company, Kitmin Holdings Limited ("Kitmin").

The Ore Agreement is for an initial period from 1 August 2024 to 31 December 2026 and may be extended by a further three years thereafter. Kitmin will be responsible for the supply and delivery of a minimum 10,000 tonnes per month ("tpm") of manganese ore at a minimum grade of 20% manganese ("Mn"), to the Kilifi Manganese Processing Plant (the "Kilifi Plant").

As detailed in the announcement published on 11 July 2024, the Kilifi Plant is a mineral processing plant capable of processing approx. 10,000tpm of run of mine manganese ore. The Ore Agreement with Kitmin is on standard commercial terms, with the purchase and delivery of the manganese ore on a fixed unit price basis, and with these scheduled ore deliveries, it allows MMK to operate the Kilifi Plant at full capacity.

Under the terms of the Ore Agreement, MMK will make an advance cash payment to Kitmin for the first 5,000 tonnes ("t") of manganese ore, with the funds to be used to mobilise equipment and meet Kitmin's funding requirements to allow for the commencement of production and delivery of manganese ore.

Highlights:

·    Agreement with Kitimin to supply and deliver 10,000tpm of manganese ore to the Kilifi Plant

·    Kitmin was incorporated in 1998 and is a 100% female owned mining, mineral processing and logistics company with a history of activities in East Africa's bauxite, iron ore, chrome and manganese ores and industrial minerals sectors

·    Under the commercial terms of the Ore Agreement, MMK will purchase manganese ore from Kitmin and Kitmin will deliver to the Kilifi Plant on a fixed unit price basis

·    The deliveries under the Ore Agreement will allow MMK to operate the Kilifi Plant at full capacity

·    The Ore Agreement provides for a minimum of 10,000t of manganese ore to be delivered monthly over the next two and a half years through to 31 December 2026 to the Kilifi Plant

·    MMK also has the option to extend the Ore Agreement on an annual basis for up to an additional three years

·    The Company and MMK are continuing to review a number of additional manganese mining operations in the local area as further and complementary sources of ore feed to the Kilifi Plant

·    In addition to the minimum monthly tonnage deliveries to the Kilifi Plant, Kitmin is required to meet minimum product specifications, which include a minimum ore grade of 20% Mn

·    Finalisation of logistics contracts for both the transportation of the saleable manganese production to Mombasa Port, located approx 60 kilometres from the Kilifi Plant, and its export and shipping into the export markets are progressing and are also expected to be completed by end of Q3 2024

Jason Brewer, Marula Mining PLC CEO said:

"Signing this manganese ore supply and delivery agreement with Kitmin marks a significant milestone for us as we look to commence manganese ore processing and export operations at the Kilifi Plant.

"This partnership will not only provide us with a stable and consistent supply of manganese ore to the Kilifi Plant but also reinforce our commitment to fostering strong, strategic relationships within the mining industry in Kenya. By working closely with the team at Kitmin, we hope to be able to leverage their extensive in-country expertise and resources, which should enhance our operational capabilities.

"We believe that this ore supply agreement and the commencement of processing and mineral export operations at the Kilifi Plant will not only benefit Marula but also positively impact the local communities by creating more job opportunities and driving economic growth. We are excited about the potential this partnership holds and look forward to the many successes it is expected to bring.

"I look forward to updating our shareholders with further updates on our progress in Kilifi."

Ms Poonam Varma, Kitmin Holdings Limited, Managing Director said:

"I am delighted that we have been able to enter into this manganese ore supply agreement with Marula.

"Marula is quickly building their presence in Kenya's mining sector and we are pleased to be able to work with such a dynamic and focused team who share many of the same values. I believe this will be the start of a fruitful partnership that leverages both companies' strengths in the mining industry.

"Kitmin has over 25 years of experience in the mining industry in East Africa and we have a long-standing commitment to community engagement and development, driving local employment and also implementing sustainable responsible mining practices. We look forward to our partnership with Marula and the positive impacts our combined activities at Kilifi will have."

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 PLC (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 Mnaganese 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.