Mineral Commodities Ltd. has advised the market that it has received a Writ of Summons (Writ) 1 from minority 10% shareholder BSG Mining LLC (BSG) in relation to the shareholders deed between MRC Graphite (Norway) Pty Ltd. (a subsidiary of the Company) (MRCGN), BSG and Skaland Graphite AS (Skaland) entered into on 13 February 2020 (Shareholders Deed). The purpose of this announcement is to provide more details on the Shareholders Deed and the Writ. In October 2019, MRCGN acquired 100% of the shares in Skaland from Leonhard Nilsen & Sonner - Eindom AS.

In March 2020, MRCGN transferred 9.99% of the shares in Skaland to BSG, which was a precondition to the Shareholders Deed coming into effect. The Shareholders Deed governs the parties' relationship in relation to Skaland, including protocols for shareholder and board meetings, board representation, financing activities, marketing and management (including financial management). It also includes a prescriptive list of events of default and dispute resolution procedures.

The Writ is in connection with the Notice of Default issued by BSG on 14 December 2022. The events of default asserted by BSG concern alleged conduct regarding the provision of additional funding to Skaland by MRCGN above the facility limit under the existing loan facility with MRCGN; alleged conduct regarding the management of the operations of Skaland and its governance; and alleged diversion of downstream graphite processing opportunities.