MC Mining : Statement Regarding Share Price Movement Cautionary Announcement

MC Mining Limited

Previously Coal of Africa Limited (Incorporated and registered in Australia) Registration number ABN 008 905 388 ISIN AU000000MCM9

JSE share code: MCZ

ASX/AIM code: MCM

28 July 2022

STATEMENT RE SHARE PRICE MOVEMENT

CAUTIONARY ANNOUNCEMENT

MC Mining Limited (MC Mining or the Company) notes the recent share price rise and provides the following update. As previously announced, the Company is advancing the funding processes for the Makhado hard coking coal project (Makhado or the Makhado Project) and targets concluding this during Q3 CY2022. The funding is expected to include a combination of debt and an equity issue by the Company, and the Bankable Feasibility Study (BFS) completed by Minxcon (Pty) Ltd (Minxcon) in April 2022 (and advised to the market on 14 April 2022) was a key milestone in progressing such funding. The Makhado development plan in the BFS was designed to minimise the upfront capital expenditure by utilising existing infrastructure at the Vele Colliery. This included modifying the existing coal processing plant (CPP) at the Vele Colliery, currently on care and maintenance, allowing it to simultaneously produce hard coking coal (HCC) and export quality thermal coal.

The Company has subsequently mandated Minxcon to expand the BFS to include alternative development plans to enhance value. These include, amongst others, the moving of the Vele CPP to Makhado or the construction of a new CPP at Makhado, and this additional work on the BFS is ongoing, and a further announcement will be made will be made in the coming weeks. The construction of a CPP at Makhado allows alternative development opportunities at Vele which the Company is also investigating.

MC Mining has ongoing performance improvement initiatives at its high-grade Uitkomst metallurgical and thermal colliery. This included the alternative product production as well as associated marketing

strategies resulted in the 28 July 2022 announcement detailing the Sales & Marketing Agreement with Overlooked Collieries Proprietary Limited.

Should any of the various processes outlined above be pursued and concluded, it may have a material effect on the price of the Company's securities and further announcements will be made in due course, as appropriate. Shareholders should note that there can be no certainty of any such initiatives ultimately being secured. Accordingly, shareholders are advised to exercise caution when dealing in their MC Mining securities until further announcements are made.

Godfrey Gomwe

Managing Director and Chief Executive Officer

This announcement has been approved by the Company's Disclosure Committee.

About MC Mining Limited:

MC Mining is an AIM/ASX/JSE-listed coal exploration, development and mining company operating in South Africa.

MC Mining's key projects include the Uitkomst Colliery (metallurgical and thermal coal), Makhado Project (hard

coking coal), Vele Colliery (semi-soft coking and thermal coal), and the Greater Soutpansberg Projects (coking and thermal coal).

All figures are denominated in United States dollars unless otherwise stated. Safety metrics are compared to the preceding quarter while financial and operational metrics are measured against the comparable period in the previous financial year. A copy of this report is available on the Company's website, www.mcmining.co.za.

Forward-looking statements

This Announcement, including information included or incorporated by reference in this Announcement, may contain "forward-looking statements" concerning MC Mining that are subject to risks and uncertainties. Generally, the words "will", "may", "should", "continue", "believes", "expects", "intends", "anticipates" or similar expressions identify forward-looking statements. These forward-looking statements involve risks and uncertainties that could

2

cause actual results to differ materially from those expressed in the forward-looking statements. Many of these risks and uncertainties relate to factors that are beyond MC Mining's ability to control or estimate precisely, such as future market conditions, changes in regulatory environment and the behaviour of other market participants. MC Mining cannot give any assurance that such forward-looking statements will prove to have been correct. The reader is cautioned not to place undue reliance on these forward-looking statements. MC Mining assumes no obligation and does not undertake any obligation to update or revise publicly any of the forward-looking statements set out herein, whether as a result of new information, future events or otherwise, except to the extent legally required.

Statements of intention

Statements of intention are statements of current intentions only, which may change as new information becomes available or circumstances change.

[This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014, as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 (as amended).]

3