Ann: Tormin update and exclusivity for potential sale, page-18

To date MRC has drawn down approximately US$4.5M of the loan to fund improvements in secondary processing
and water supply capacity and security, both of which are necessary for a successful MSP operation.
In recent announcements, MRC advised that the MSP project had been delayed and that the Company is working
closely with GMA to address technical and timing issues.


GMA owned stockpile

GMA purchased a stockpile of garnet concentrate stored at Tormin in 2021. The amount of garnet concentrate
calculated and paid for at the time was approximately 635kt and GMA has been progressively taking delivery of
this material since the purchase. The stockpile is now approaching complete depletion and it has become
apparent that there may be a shortfall of approximately 90kt. Possible technical reasons for a shortfall of this
magnitude could be a difference in actual bulk density compared to the density originally assumed, along with
higher than expected erosion over a three (3) year period.
GMA and MSR have been investigating this matter in detail and are currently in discussions regarding how to
resolve the issue commercially. Existing contractual arrangements contemplate a shortfall being remedied by
product deliveries

@Fulang66
You seem to have a better knowledge of what is occurring on site, Do you know if the possible sale of Tormin to GMA Garnet has been in the works for a while. I do recall someone advising that GMA garnet's Australia project was getting close to the end of its life.

It appears MRC has used the funds to increase the water supply for the GSP and provide the additional cyclones that are required to remove the slimes. which is in accordance with the loan requirements.

As you would know, MRC has been having issues processing the inland strands and issues with the northern beaches, Hopefully now the new cyclones have been installed and the water supplies issues have been resolved we will see tormin return to its more historic production levels.

Anyway, It will be interesting to see what value MRC and GMA garnet do agree on with the potential sale. MRC really needs a significant cash injection this QTR due to the past 6 months issues. it is good to see the loan repayments have been suspended while these negotations continue.

Also a smart move if MRC has contractors assisting with the mining, this will allow MRC to defer payments for the mining costs while it builds its stockpiles, it could have also been discussed with the contractors about the delay with payments.