Centrex Limited updated the market on recent correspondence with the royalty holder for the Ardmore Phosphate Rock Project. Similar to its position last year, the royalty holder has again indicated that it believes that the Company has yet to commence mining under the Royalty Deed for the period to 27 June 2022 and has requested payment of the $2m Extension Fee. The Ardmore Phosphate Rock Project is subject to a Royalty Deed which was signed between Southern Cross Fertilisers Pty Ltd. (SCF), Centrex Phosphate Pty Ltd. (now Agriflex Pty Ltd) and the Company on 27 June 2017 (as amended) (Royalty Deed).

The Royalty Deed includes an extension fee clause. The clause requires Agriflex Pty Ltd. to a pay a AUD 2 million (plus GST) extension fee (Extension Fee) to the Royalty Holder if it triggers an "Extension Period" under the clause. The Extension Fee is payable on the first day of the Extension Period and on each anniversary thereafter until the end of the Extension Period, with the Extension Fee being attributable to the next 12 months after the due date of payment.

The Extension Period means the period which: (a) commences on the fourth anniversary of the registration of the transfer of the tenement covering the Ardmore Project (Tenement); and (b) ends on the date that "Mining" first commences.