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

             ANNOUNCEMENT                                                                                    26 April 2023

                                                 MAKHADO PROJECT UPDATE

             MC Mining Limited (MC Mining or the Company) is pleased to provide an update on its fully licensed,
             shovel ready Makhado hard coking coal project (Makhado Project or the Makhado).

             The salient features of the Makhado Project are:
             •   JORC Code compliant Coal Resources of 296 mineable tonnes in situ (MTIS)1 in the Measured and
                 Indicated categories
             •   JORC Code compliant run of mine (ROM) Coal Reserves of 69.3 million tonnes (Mt) in the Proved
                 and Probable categories, which is expected to increase following completion of the
                 implementation plans for Scenario 2
             •   Creation of an estimated 650 permanent employment positions when in full production

             The Bankable Feasibility Study (BFS) was completed in April 2022 by independent mining consultancy
             Minxcon (Pty) Ltd and was followed by two alternative development scenarios that significantly
             improved the baseline BFS economic outcomes, as announced by the Company on 30 August 2022 and
             were supplementary chapters to the BFS. The alternative scenarios were assessed at pre-feasibility
             level and would require additional capital expenditure compared to the BFS base case scenario (Base
             Case). While the Base Case scenario was feasible and economically robust, the alternative scenarios
             resulted in improved project economics. The Base Case comprised the mining of the West Pit, followed
             by the East and Central Pits, the crushing and screen of the ROM coal to Makhado and the
             transportation of the screened material 135km to the modified Vele Colliery plant for processing.

             Scenario 2, included as part of the BFS, was selected by the Board for implementation and included
             the initial mining of the East Pit, followed by the Central and West Pits, and the construction of a coal
             handling and processing plant (CHPP) at Makhado, rather than at the existing Vele facility, with an
             annual CHPP throughput capacity of two million tonnes per annum (Mtpa). Following this, the
             Company appointed Erudite (Pty) Ltd (Erudite) to complete the detailed study work for a full process
             plant design of the Makhado CHPP for Scenario 2.


1
    Makhado Resources per the Company’s 30 June 2022 Resources & Reserves Statement
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The Company completed various studies in Q4 CY2022, enhancing the development plans for Scenario
2, including an optimization study on the Makhado CHPP. This optimisation study increases the
Makhado CHPP annual run of mine feed capacity from 2.0Mtpa to 4.0Mtpa. The mine plans have been
revised, as has the detailed CHPP and infrastructure design work which was completed by Erudite.

Implementation Plan completed
The Company has also made notable progress towards the completion of a detailed implementation
plan (Implementation Plan) for the first five years of mining and processing operations. The Company
has limited technical execution capacity and with a strategy to limit fixed overhead costs, has secured
this execution capacity by contracting an outsourced owner’s team and has also engaged key service
providers to manage the Implementation Plan.

The Implementation Plan includes a detailed execution plan for the construction of the East Pit,
Makhado CHPP, related infrastructure and a detailed mine plan for the first five years of operations.
The key inputs of the Makhado Project were independently peer reviewed, and the Implementation
Plan has been value-engineered improving the accuracy of the studies from the pre-feasibility study’s
±30% accuracy to an estimated accuracy of ±10%. In addition, the noteworthy improvements to
Scenario 2 under the Implementation Plan include:

•   Revision of the mine plan resulting in the ROM from 3.2Mtpa to 4.0Mtpa, facilitating improved
    volume efficiencies and the planned ROM coal feed to the CHPP has increased by 30%. Previous
    development plans incorporated a crushing and screen plant that would have removed 1.2Mtpa
    of discard material prior to processing in the CHPP;
•   The full ROM feed stream (4.0Mtpa) will now be processed through the CHPP to maximise coal
    yields, in contrast to the BFS’s Base Case and Scenario 2 plans where the ROM coal was pre-
    screened and 2.0Mtpa crushed and screened coal was planned to be processed;
•   Improved accuracy in interpreting the depth of oxidation to the top of the target coal seams from
    recent supplementary diamond core drilling. The limit of oxidation in the East Pit occurs at an
    average of 28 metres (m) below surface, compared to an average of 17m estimated for the West
    Pit which, in the BFS, was scheduled to be mined first. As a result, the strip ratio for the first five
    years of mining has increased from 2.7 to 3.0 (waste BCM: ROM tonne);
•   The East Pit has higher compensating coal yields and is expected to have a life-of-mine (LOM) in
    excess of 13 years. The mining of the higher yielding East Pit and project enhancements results in
    hard coking coal (HCC) yields in the first five years of mining increasing from 19.4% as per the BFS,
    to 22.6%, a 16% improvement, in Scenario 2. Thermal coal yields increase by 9% (from 16.1% to
    17.6%); and
•   As a result of the above, Makhado would produce an average of 880,000t per annum (tpa) of HCC,
    compared to 540,000tpa in the BFS (an increase of 63%), while thermal coal production increases
    from 570,000tpa to an average of 650,000tpa (an increase of 14%) during the first five years of
    operation.

Key metrics for the Implementation Plan (first five operating years of the Makhado Project) compared

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to Scenario 2 of the BFS are summarised in the table below:

                                                       Implementation
         Parameter                      Units                                         Scenario 2              Variance    Variance
                                                            Plan
    Nominal annual            Mtpa                           4.01                        3.22,3                 +0.8         +25%
    throughput (annual)
    Strip ratio (five      Waste (BCM):                         3.01                      2.52                  +0.9         +42%
    years/LOM)               RoM (t)
    Yield – mid-vol 64 HCC      %                              22.61                     19.42                  +3.2         +16%
    (five years/LOM)
    Yield – thermal Coal        %                              17.61                     16.12                  +1.5         +9%
    (five years/LOM)
    Saleable Coking Coal       Mt                               4.04                      3.15                  +0.9         +30%
    (first five years)
    Saleable Thermal Coal      Mt                               3.14                      2.65                  +0.5         +21%
    (first five years)

1
  Production for the first five years from the East Pit in terms of the Implementation Plan
2 The mining plan envisaged 3.2Mtpa ROM mined that would have been crushed and screened and only 2.0Mtpa processed in the Makhado
processing plant
3
  Average for the 21-year LOM which included the mining of the West, East and Central Pits
4 Saleable coal production for the first five years of mining the East Pit

5 Saleable coal production for the first five years of mining the West Pit and early mining of the East Pit



Project expenditure
The higher volume of coal mined as well as CHPP processing capacity is anticipated to result in higher
capital expenditure. Erudite has completed the detailed designs for the mine infrastructure and CHPP
and is in the process of obtaining detailed execution quotes for the construction of the CHPP. This
process is expected to be finished in July 2023 and will also cater for the enlarged mining and
processing footprint. EHL Engineering (Pty) Ltd (EHL) has been engaged to design and construct the
bulk power supply infrastructure, a process on the construction critical path. Enprotech (Pty) Ltd
(Enprotech) has commenced the design and procurement of the flotation and filtration plant, a key
part of the CHPP required to extract the HCC. The flotation and filtration plant is expected to cost R155
million (US$8.6 million) and the Company has agreed in-principle with Enprotec that this part of the
plant will be constructed on a build, own, operate, transfer (BOOT) basis.

The Makhado Project will be contractor-operated and, following the revised 4.0Mtpa mine plan, the
Company has commenced an open tender process to select a mining contractor. The Company also
anticipates commencing the processes to identify and appoint an outsourced CHPP operating
contractor and analytical laboratory operator. These processes are expected to be completed in early
Q3 CY2023. First coal production is expected 18 months from commencement of construction, which
is expected to occur in H2 CY2023.

Commencement of early works
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   Early works associated with the Implementation Plan commenced in February 2023, as planned, and
   these workstreams consist of activities with long lead times or to ensure that social and regulatory
   licenses are complied with. This includes the commissioning of the power line works, order placements
   for key long lead CHPP items and equipment, construction of the main access road and bridge, as well
   as accommodation and administration upgrades and fencing to secure the mine site. As previously
   announced, during November 2022 the Board approved an expenditure budget of ZAR71.3 million
   (US$4.1 million) for Makhado early works. The Board also approved the commitment of a further R45.0
   million (US$2.5 million) for the long lead time items.

   Godfrey Gomwe, Managing Director and Chief Executive Officer, commented:
   “Substantial progress has been made to convert the previous mining studies into an Implementation
   Plan for the first five years of mining operation that is sufficiently detailed for the project execution
   with attractive economics. We are also pleased to now have an owner’s team in place, as well as a
   reputable and expert Engineering, Procurement & Construction Manager in Erudite. The peer-reviewed
   studies completed in late CY2022 and Q1 CY2023 have resulted in increased processing capacity
   leading to higher production of hard coking coal as well as the thermal coal by-product. The increase
   in product yields is also very pleasing and enhances the project economics.

   The Company anticipates that the funding arrangements will be concluded in early Q3 CY2023 with the
   tender adjudication for major contractors, notably the mining contractor and CHPP operator, in early
   Q3 2023, followed by the final investment decision soon thereafter, ensuring that the Makhado Project
   execution processes are broadened from early works to include full scale implementation. First coal
   production is expected 18 months from CHPP construction start-date.


   The appointment of EHL to proceed with the design and construction of the 14 km power line ensures
   that the supply of electricity to Makhado is in place for prior to the commencement of operations.”

   Godfrey Gomwe
   Managing Director and Chief Executive Officer

For more information contact:


    Tony Bevan                  Company             Endeavour Corporate           +61 8 9316 9100
                                      Secretary           Services

    James Harris / James        Nominated           Strand Hanson Limited         +44 20 7409 3494
           Dance                      Adviser

    Rory Scott                  Broker (AIM)        Tennyson Securities           +44 20 7186 9031



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     Marion Brower                  Financial PR (SA)        R&A Strategic                       +27 11 880 3924
                                                                    Communications

     BSM Sponsors Proprietary Limited is the nominated JSE Sponsor

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

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014, as it forms part
of UK domestic law by virtue of the European Union (Withdrawal) Act 2018, as amended.

About MC Mining
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).




Glossary

 Term                           Definition
 CHPP                           Coal handling & processing plant
 HCC                            hard coking coal
 JORC                           Australasian Code of Reporting of Exploration Results, Mineral Resources and
                                Ore Reserves, 2012 Edition
 Indicated Coal                 Maximum distance between points of observation of 1,000 metres (m) and a
 Resource                       maximum Halo radius of 500m
 Inferred Coal                  Maximum distance between points of observation of 4,000m and a maximum
 Resource                       Halo radius of 2,000m
 Measured Coal                  Maximum distance between points of observation of 500m and a maximum
 Resource                       Halo radius of 250m
 MTIS                           mineable tonnes in situ
 LOM                            life of mine
 Probable Coal                  A Probable Coal Reserve is the economically mineable part of an Indicated, and
 Reserves                       in some circumstances, a Measured Coal Resource. The confidence in the
                                modifying factors applying to a Probable Coal Reserve is lower than that
                                applying to a Proved Coal Reserve.
 Proved Coal                    A Proved Coal Reserve is the economically mineable part of a Measured Coal
 Reserve                        Resource. A Proved Coal Reserve implies a high degree of confidence in the
                                Modifying Factors.
 ROM                            run of mine
 SAMREC                         South African Code for the Reporting of Exploration Results, Mineral Resources
                                and Mineral Reserves



Statements of intention

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



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change.

MC Mining has ensured that the mineral resources quoted are subject to good governance arrangements and internal control. The Company has
engaged external independent consultants to update the mineral resource in accordance with the JORC Code 2012 and SAMREC 2016. The units
of measure in this report are metric, with Tonnes (t) = 1,000kg. Technical information that requires subsequent calculations to derive subtotals,
totals and weighted averages may involve a degree of rounding and consequently introduce an error. Where such errors occur MC Mining does
not consider them to be material.

The Company’s principal competent person is Mr J.C.H.K. Sparrow who is in full time employ of MC Mining as the Group Geologist. Mr Sparrow,
who is a registered professional scientist of good standing with the South African Council for Natural Scientific Professions (SACNASP) (400109/03)
and acts the Competent Person under the AIM Rules - Note for Mining and Oil & Gas Companies, he has read and approved the technical
disclosures in this announcement.




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