Murray Cod Australia : Quarterly Activities/Appendix 4C Cash Flow Report

Murray Cod Australia Ltd

For personal use only

ASX:MCA

26 April 2022

March 2022 Quarterly Activities Report

The Board of Murray Cod Australia Ltd ('MCA' or 'the Company') is pleased to provide the following update of operational and sales progress in conjunction with the release of the March 2022 quarterly cashflow report.

HIGHLIGHTS for March 2022 Quarter

• • Customer receipts up 48% over March 2021 Quarter

• • Operating cash surplus of $434,000 for March 22 Quarter

• • Cash Reserves of $33 million at 31 March 2022

• • Product price increases being achieved

• • Improved biological growth during March Quarter

• • Growth Plans remain on track for 10 thousand tonnes by 2030

• • Customer acquisition in Australia and USA accelerated during March quarter

• • Coles Supermarkets plan to stock Aquna Sustainable Murray Cod from 25 May 2022

• • Export demand pipeline strengthening

• • Average sale weight of 2.3 kilograms per fish for the quarter

• • Stage three of Whitton site progressing as planned

• • Josh Niland Partnership progressing

• • Sustainable feed trial of 100% plant based proteins

Murray Cod Australia Ltd ABN 74 928 625

Level 1, 153 Yambil Street Griffith NSW Australia 2680

Ph +61 269 625 470www.aquna.com

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Murray Cod Australia Ltd

For personal use only

ASX:MCA

Revenue increase of 48% over March 21 Quarter

Receipts from customers grew 48% for the quarter compared to the March 2021 quarter. This was despite restrictions related to the Omicron variant of COVID-19 during the early part of this year negatively impacting sales. Sales grew strongly during the March 2022 quarter as COVID-19 restrictions eased.

The Company has experienced strong growth in domestic sales during the March quarter.

Growth in customer acquisition has increased significantly. Brand recognition and social media activity within the community and within our specific sales channels has grown significantly.

Product demand is continuing to build a strong sales pipeline.

Operating Cash Surplus of $434,000 for March 22 Quarter

The Company is pleased to advise that an operating cash surplus of of $434,000 was achieved for the quarter. This is despite significantly higher fish numbers and commensurate increases in operating costs.

Cash Reserves $33 million

The Company is well positioned to capitalise on strong demand with cash reserves of $33 million on hand at 31 March 2022.

Growth in Sales Price Achieved with Brand Recognition

The price per kg of live sales has been increased from $19 per kg in early 2020 to $23 per kg at present. Our market research indicates that prior to MCA entering the live market, Murray Cod were selling in the live market at $16 per kg or less. Price rises of 10% have been announced to customers of chilled fish (outside of any fixed price agreements which are subject to review at set dates) and will begin on 1 May 2022.

Aquna Sustainable Murray Cod is positioned as a luxury food product rather than a commodity. Our strategy of service and brand attribution has been successful in building pricing.

Murray Cod Australia Ltd ABN 74 928 625

Level 1, 153 Yambil Street Griffith NSW Australia 2680

Ph +61 269 625 470www.aquna.com

Page 2

Murray Cod Australia Ltd

For personal use only

ASX:MCA

Improved Grow-out performance

Biological growth was pleasing during the March quarter with fish stocks growing at faster than anticipated rates. This is in contrast to the slower growth that was reported due to coooler conditions in the prior quarter.

Colder temperatures also impacted on the recently completed spawning season. As noted last quarter, the colder conditions in late spring and early summer resulted in a delayed and compacted spawning season. As a result, the Company reduced the numbers of its prior planned stock out of fingerlings to its grow out units over the recent summer. However sales to government agencies for re-stocking purposes were maintained as a strategic measure to maintain our position of strength within the hatchery and re-stocking marketplace.

Growth Plans Remain on track for ten thousand tonnes by 2030

Fish numbers and biomass remain on track for the Company to meet its target of producing 10,000 tonnes of Aquna Sustainable Murray Cod by the year 2030.

Domestic sales

Average sale weight for the March 2022 quarter was 2.3 kilograms per fish. This is an increase on the March 2021 quarter and reflects the increase in size of fish used in supply to grocery and restaurant channels.

MCA has continued selling live fish domestically. Sales of smaller fish have been restricted as the Company looks to increase average sale weights and to ensure sufficient stocks are available to meet new and existing demand.

Balancing demand with supply is an ongoing issue for the Company. The Company continually reviews margins and growth prospects of new and existing markets in this process.

Murray Cod Australia Ltd ABN 74 928 625

Level 1, 153 Yambil Street Griffith NSW Australia 2680

Ph +61 269 625 470www.aquna.com

Page 3

Murray Cod Australia Ltd

For personal use only

ASX:MCA

Growth In Supermarkets on Track

Woolworths

MCA currently supplies 150 Woolworths stores in NSW and Victoria. Growth in volume has been pleasing, however there have been some logistical issues relating to Woolworths' COVID-19 protocols that have led to MCA stock not always being available within Woolworths stores. We are unable to accurately estimate the lost sales that have resulted from this. MCA has now agreed with Woolworths to change distribution centres which should enable more deliveries per week and ease the stock shortage issues faced previously.

Coles

Coles supermarkets are planning to stock Aquna Sustainable Murray Cod in 80 stores from 25 May 2022.

Harris Farm Markets

Harris Farm Markets commenced stocking Aquna Sustainable Murray Cod in six stores during the quarter.

General

With COVID-19 restrictions around merchandising and in-store demonstrations easing, we have planned significant marketing activity within grocery channels in coming months.

In addition to volume growth MCA estimates that gross profit margins achieved on our product in supermarkets have increased from below 10% at introduction in 2021 to around 25% in the March 22 quarter. This reflects the success of our promotional work in growing demand for our brand in this channel in recent months.

Processing equipment which had been subject to COVID-19 related delays has now arrived at our plant and commissioning is planned to be completed by the end of May 2022. This will enable the Company to increase supply to the grocery channel

Growth in Export Demand

Sales to Europe re-commenced during the December 2021 quarter and volume growth was pleasing before the Omicron variant of COVID-19 began to impact restaurant and wholesaler demand. Restrictions are now easing in Europe and we have scheduled promotional activity there during April 2022.

The USA strategy of targeting high-end restaurants is currently working successfully. For example during March 2022, 15 new restaurants in the USA committed to placing Aquna

Murray Cod Australia Ltd ABN 74 928 625

Level 1, 153 Yambil Street Griffith NSW Australia 2680

Ph +61 269 625 470www.aquna.com

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Murray Cod Australia Ltd

For personal use only

ASX:MCA

Sustainable Murray Cod on their menu. This was 200% above our target number of new customers for the month.

The first orders for Japanese exports since March 2020 were received this quarter and new enquiries from Japan for larger volume orders have been received. Negotiations with these buyers are ongoing.

The Company is once again in the situation of managing the balance between demand and available supply of our product for various markets.

As previously mentioned the profit margins in specific channels and long term growth prospects of various markets are important factors in this planning process.

Whitton Site Development Stage 3 Progressing to plan

Construction of stage 3 Whitton site is underway and construction on much of the infrastructure for that stage is progressing well. Expenditure for this project is ongoing and is included in the capital payments disclosed in our Appendix 4C.

Josh Niland Value Added Partnership Progressing well

Last year MCA entered into a 3 year agreement with renowned chef Josh Niland to produce and market value added products. Josh Niland is well known for his business "The Fish Butchery", his restaurant "Saint Peter" (based in Paddington and Waterloo,Sydney) and his newest venture "Charcoal Fish" in Rose Bay, Sydney.

Mr Niland is famous for his approach to sustainable use of seafood as highlighted in his book "The Whole Fish Cookbook".

A Project manager within MCA has been appointed to co-ordinate and fast track the development of value added products with Mr Niland. We expect further updates will be made to to the market in the coming quarter.

Feed Trial of 100% Plant based diet underway

Feed trials aimed at increasing both Specific Growth Rate and Feed Conversion Ratio have been undertaken and will continue during the year. In keeping with our commitment to sustainability we have commissioned production of a diet that is completely free of marine or animal based proteins. Impacts of this diet on aspects such as growth, health and taste profile of the fish will be important considerations as we continue in our quest to improve the environmental integrity of our production. Trials on these new feeds will be undertaken with Deakin University over the coming months.

Murray Cod Australia Ltd ABN 74 928 625

Level 1, 153 Yambil Street Griffith NSW Australia 2680

Ph +61 269 625 470www.aquna.com

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