M8 Sustainable : Quarterly Activities Report & Appendix 4C - 31.03.22

M8 Sustainable Ltd

ACN 620 758 358

Unit 1, 48 Kelvin Road, MADDINGTON WA 6109

29 April 2022

The Manager

ASX Market Announcements Office ASX Limited

Exchange Centre 20 Bridge Street Sydney NSW 2000

By email

Dear Sir/Madam

Activities Report and Appendix 4C - quarter ended 31.03.2022

In accordance with Listing Rule 4.7B, please find attached M8 Sustainable Limited's Activities and

Appendix 4C cashflow reports for the quarter ended 31.03.2022.

This announcement is authorised for market release by the Board of Directors.

Yours sincerely

M8 Sustainable Ltd

ACN 620 758 358

Unit 1, 48 Kelvin Road, MADDINGTON WA 6109

ASX Announcement | 29 April 2022

QUARTERLY ACTIVITIES REPORT

FOR THE PERIOD ENDED 31 MARCH 2022

KEY POINTS

• • Major milestone completed at flagship Gingin Landfill Facility (Gingin) with the lodgement of operating license application with DWER

• • Application is being reviewed, with a license to be issued following completion of construction (expected in May) and on agreement of any operational conditions set by DWER

• • Post quarter, M8S secured maiden waste disposal agreement for Gingin for at least 40,000 tonnes pa

• • Commencement of operations at Gingin expected during Q1 of FY23

• • Innovative Access Waste division continues to grow, with volumes collected in last three months increasing by 25%; from 2000m3 for the prior quarter to 2500m3 for this quarter

• • Activities at Maddington Waste Facility continue at a reduced level (pending commencement of Gingin operations)

• • Net cash used in operating activities is $0.07m for the quarter, which is less than 15% of that used per month for the prior two quarters

M8 Sustainable Limited ("M8S" or "the Company") is pleased to provide the following update on its activities for the quarter ended 31 March 2022.

GINGIN LANDFILL FACILITY

M8S completed a major milestone at Gingin through the lodgement of its license application (in late March 2022) to operate Gingin with the West Australian Department of Water and Environmental Regulation (DWER).

The license application coincides with steps to complete key construction activities including lining of the leachate collection pond, final drainage aggregate layer and associated pipework being placed in Bioreactor Cell 1. The Company anticipates that major works at the site will conclude in May, subject to sufficient quantities of drainage aggregate material being delivered to site.

The license application is being reviewed by DWER with an operating license to be issued following completion of construction works and on agreement of any operational conditions that may be set by DWER.

Discussions with various parties to secure waste volume commitments for Gingin are continuing. Post the reporting period, the Company announced that it had entered into 5-year waste disposal agreement with Brajkovich Demolition & Salvage (WA) Pty Ltd (BDS) pursuant to which BDS has undertaken to supply to Gingin a minimum of 40,000 tonnes and up to 60,000 tonnes of waste per calendar year.

BDS is one of WA's largest demolition and salvage businesses and has been providing demolition services for more than 40 years.

Commencement of operations at Gingin is expected during Q1 of FY23.

Image 1: Aggerate placement Cell 1

Image 2: Leachate pumping station concrete pad

MADDINGTON WASTE FACILITY

With construction entering an intensive phase ahead of completion at Gingin, M8S reduced volumes from C&D, C&I and metals recycling activities, to direct further capital towards Gingin to ensure the its opening is completed in the September quarter.

An increased focus was placed on development of the Access Waste skip bin business, which will drive increased volumes to Gingin.

Ramp-up of Maddington Waste Facility (Maddington) for skip bin and C&D waste will coincide with the opening of Gingin to take advantage of disposal synergies between both facilities.

Once Gingin is live, M8S will focus on re-establishing Maddington as the premier recycling facility in Perth's South Eastern corridor, by expanding the facility's offering to process and recycle a wide variety of C&D and C&I waste streams, including restarting the waste sorting and recycling facility, one of only two in Perth with significant processing capacity.

The Company's presence in C&D and C&I waste markets and volumes taken in at Maddington are planned to be increased rapidly, with a primary focus on mixed building and skip bin waste, to increase throughput and deliver ongoing residual waste to Gingin.

Once Gingin is in operation, M8S will be in a strong position to grow its integrated business model and deliver a sustained and profitable cash flow position.

Figure 1: Maddington Waste and Product Supply Volumes (Quarterly Basis)

Whilst volumes have decreased, the Company's net cash used in operating activities has decreased to $69,000 this quarter, from $0.56m in the December 2021 quarter, and $0.54m in the September 2021 quarter. Net cash used in operating activities this current quarter is less than 15% of that used per month for the six months ending 31 December 2021.

Metals recycling activities have been curtailed to preserve working capital during intensive phase of construction at Gingin

ACCESS WASTE

Access Waste is an industry leading, cloud-based waste management and logistics platform, designed to streamline the ordering, logistics and end-to-end supply chain process, for waste management and transport related activities and stakeholders.

Following successful completion of initial development and beta testing, the platform developed into an extensive and unique service offering and was expanded to offer the services as listed below:

• • dedicated website built for client with integrated online booking system

• • generating additional online bookings through Access Waste

• • order/booking management

• • live GPS tracking of job status and driver route

• • inventory management

• • report generation of marketing, sales, deliveries, pickups, and purchase orders

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