XRF Ore Sorters Acquired to Further Expand Processing Capacity at Blesberg

Marula Mining PLC

 (“Marula’’ or the “Company”)

29 August 2023

XRF Ore Sorters Acquired to Further Expand Processing Capacity at Blesberg

Marula Mining (AQSE: MARU), an African focused mining and development company, is pleased to provide an update on the Blesberg Lithium and Tantalum Mine (“Blesberg” or the “Project”), where the Company through arrangements with Q Global Commodities ("Q Global") is completing the acquisition of two sensor-based, XRF ore sorting plants (“XRF Ore Sorters”) that will now be commissioned at Blesberg in Q4 2023 and used initially to increase the production of high-grade spodumene ore from the processing of the historical stockpiles.

The XRF Ore Sorters comprise a Rados SRF100-8 ore sorter with a 30 tonnes per hour (“TPH”) capacity  and a Tomra COM XRT 1200 ore sorter with a 120 TPH capacity. The XRF Ore Sorters will both be included in the proposed expanded processing facilities at Blesberg that, in addition to new crushing and screening equipment, is planned to increase the production capacity of high-grade spodumene ore to over 1,000 tonnes per month (“tpm”) of saleable product.

The Company is acquiring the XRF Ore Sorters for total consideration of approx. ZAR 40.6 million (£1.7 million) from Q Global Mining (Pty) Ltd (“Q Mining”), a subsidiary of Q Global. Documentation for the acquisitions are currently being finalised with Q Global’s lawyers, with commercial terms agreed. The Rados SRF100-8 ore sorter is to be acquired through a series of 36 monthly payments, after which ownership will be transferred to Marula. The Tomra COM XRT 1200 ore sorter acquisition cost of £750,000 are to be offset against subscription funds to be received from Q Global, pending the approval of the conditional subscription agreement and Rule 9 waiver as announced 31 January 2023.

Highlights

• Agreement reached with Q Global for the ZAR 17.6 million (£750,000) acquisition of a Tomra COM XRT 1200 ore sorter from Q Mining, and which is to now be refurbished ahead of commissioning at Blesberg in Q4 2023
• Tomra Systems ASA (“Tomra”) to be appointed to complete the refurbishment and commissioning of the Tomra COM XRT 1200 ore sorter at Blesberg
• Ownership of the Tomra COM XRT 1200 ore sorter will be transferred to Marula’s operating entity in South Africa once the full acquisition costs have been offset against subscription funds to be received from Q Global
• Agreement also executed by Q Mining with Rados International Technologies (Malta) Limited (“Rados”) for the ZAR 23 million (£990,000) acquisition of a Rados SRF100-8 ore sorter, with commissioning expected to be completed at Blesberg also in Q4 2023 under the terms of this agreement
• Initial deposit of ZAR 14.2 million (£610,000) for the Rados SRF100-8 ore sorter already paid by Q Mining
• The XRF Sorters are manufactured by industry leading groups, Rados and Tomra with their ore sorters used in some of the world’s largest hard rock lithium mines in the world
• The selection of the XRF Ore Sorters follows successful testwork of Blesberg samples completed in Germany and in South Africa in Q2 and Q3 2023 that confirmed the XRF Ore Sorters’ effectiveness to sort the spodumene mineralisation from the quartz, feldspar and mica mineralisation also present at Blesberg
• Production of approx. 40 to 50 tonnes per day (“TPD”) of a +20mm saleable high-grade lithium spodumene product is forecast from the initial processing circuit based on the testwork previously completed and with ongoing testwork to further optimise this production
• The XRF Ore Sorters will form part of the proposed expanded processing facilities that are to be installed at Blesberg and will initially include a new 120TPH crushing and screening circuit, a mica removal vacuum screen and the XRF Ore Sorters that combined are proposed to produce a +20mm saleable high-grade lithium spodumene product
• The further phases of the planned expanded processing facilities at Blesberg will also include processing of the fines material to maximise recovery of lithium and tantalum mineralisation and the previously announced upgrading of the spodumene product to produce a higher value carbonate product

• Work has already commenced on site for the installation of the initial expanded processing facilities
• The expanded processing facilities at Blesberg are designed to process the current stockpiles material from the historic mining activities and to also form part of the processing facilities as part of the broader development plans of a large scale open pit mining operation

Jason Brewer, Marula Mining PLC CEO said:

“Investment in the Blesberg Lithium and Tantalum Mine continues and the agreements now for the purchase of two XRF sorters from Tomra and Rados are a significant step for the Company and one that will have a material impact on the operation in terms of anticipated production of a high-grade saleable spodumene product.

“Manufacture of the Rados ore sorter is already underway in South Africa and the Tomra ore sorter is already in South Africa and is just awaiting agreement with Tomra on its refurbishment.

“Together these two ore sorters along with the new crushing and screening circuit will allow us to move towards our target levels of producing up to 50 tonnes per day of a saleable lithium spodumene product from the current processing of the historic stockpiles. The operations at Blesberg will quickly become a significant part of Marula’s portfolio of battery metals projects.

“The support once again from Q Global Commodities is evident and their role in supporting us as we develop Blesberg is very much appreciated. I welcome their support and assistance as we continue to deliver on our strategy and focus on mine development.”

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) is an African focused battery metals investment and exploration company and has interests in several high value mine projects in Africa; Blesberg Lithium and Tantalum Mine in South Africa, Nkombwa Hill Project in Zambia and Kinusi Copper Mine, Bagamoyo Graphite Project and Nyorinyori Graphite Project 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 the AQUIS Stock Exchange (AQSE), Marula is exploring opportunities to admit its shares to trading on AIM, the market operated by the London Stock Exchange Group plc, Kenya’s Nairobi Securities Exchange and South Africa’s Johannesburg Stock Exchange.

For enquiries contact:

Marula Mining PLC Jason Brewer, Chief Executive Officer Faith Kinyanjui Mumbi Investor Relations	Email : [e-mail] Email : [e-mail]
AQSE Corporate Adviser Cairn Financial Advisers LLP, Liam Murray / Ludovico Lazzaretti	[phone]
Broker Peterhouse Capital Limited, Charles Goodfellow / Duncan Vasey	[phone]
Financial PR and IR BlytheRay Tim Blythe / Megan Ray / Said Izagaren	[phone]

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.

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