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

                         UITKOMST COAL SALES & MARKETING AGREEMENT
                                   RELATED PARTY TRANSACTION


MC Mining Limited (MC Mining or the Company) is pleased to announce that it has entered into a
Coal Sales & Marketing Agreement (Marketing Agreement) with Overlooked (Proprietary) Limited
(Overlooked). The Marketing Agreement expires on 31 December 2022 and will facilitate the export
of coal produced by Uitkomst, ensuring the colliery benefits from the prevailing international coal
prices.


The anti-fossil fuel sentiment over the last few years has resulted in limited coal exploration or
development of new coal projects and a tightening of supply globally. This has been exacerbated by
the invasion of Ukraine in February 2022 and subsequent sanctions against Russian fossil fuel supplies,
leading to a global energy shortage. This led to international thermal coal prices climbing to record
highs and API4 coal prices averaged $276/ tonne (t) for H1 CY2022, compared to $151/t in H2 CY2021.


As a consequence, MC Mining commenced a review of its marketing arrangements for Uitkomst which
include the production of various grades of higher quality, low ash pulverised coal injection (PCI) coal,
as well as higher-yielding API4 thermal coal. The high API4 prices confirm that the export of thermal
coal is currently the optimal marketing strategy for the colliery. However, Uitkomst does not have
access to export allocation at any of the South African coal ports and produces limited quantities of
thermal coal on a monthly basis. A collaborative approach with an exporter, which already has access
to these markets and additional volumes of API4 coal, led to the conclusion of the Marketing
Agreement with Overlooked, providing the Company with a route to market.


The salient features of the Marketing Agreement are:
•   contract expiring in December 2022;
•   sale of at least 20,000t of Uitkomst coal per month at API4-linked, US dollar denominated prices;
•   Overlooked is responsible for the transportation, stockpiling and export of the coal at port and
    will receive a market related commission; and
•   Overlooked charges a competitive marketing fee of 5% of the sales price which is reasonable
    considering competing proposals received by Uitkomst, for providing access to the international
    market.


Related Party Transaction


The Company entering into the Marketing Agreement, as set out above, is deemed a related party
transaction under the AIM Rules for Companies due to Mr Matthews Senosi (a Non-Executive Director
and Substantial Shareholder (as defined by the AIM Rules) of the Company) being the Chief Executive
Officer and majority shareholder of Overlooked. The independent directors of the Board of MC
Mining, being those directors other than Mr Senosi, having consulted with Strand Hanson Limited, the
Company's Nominated Adviser, consider the Marketing Agreement to be fair and reasonable insofar
as the Company's shareholders are concerned.


Godfrey Gomwe, Managing Director and Chief Executive Officer of MC Mining, commented:

“Uitkomst is a small mine that produces high quality coal and the trial production of different coal
products earlier in the year ensured that we have a better understanding of what the colliery can
produce and the effects these have on our processing plant yields. The colliery does not produce
sufficient coal to fill a ship on a monthly basis and a partnership with Overlooked will facilitate more
frequent shipments at higher international thermal coal prices. These prices have remained higher
than previously forecasted and the Marketing Agreement ensures that Uitkomst benefits from the
prevailing price, particularly our pea-sized products, as these were historically sold into domestic fixed-
price contracts. The colliery will continue to supply coal to the local market, but at reduced volumes.”


Godfrey Gomwe
Managing Director and Chief Executive Officer
This announcement has been approved by the Company’s Disclosure Committee.
All figures are in United States dollars unless otherwise stated.




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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).



For more information contact:
Tony Bevan                 Company Secretary            Endeavour Corporate          +61 08 9316 9100
                                                             Services
Company advisors:
James Harris / James           Nominated Adviser        Strand Hanson Limited        +44 20 7409 3494
      Dance
Rory Scott                    Broker (AIM)         Tennyson Securities               +44 20 7186 9031
James Duncan                  Financial PR (South  R&A Strategic                     +27 11 880 3924
                                    Africa)             Communications
Investec Bank Limited is the nominated JSE Sponsor

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.




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