Ann: Quarterly Activities Report - March 2024, page-2

Another interesting QTR report to dissect.

Mining fleet has been resolved -

Excavator fleet failure in particular has had the
greatest impact in January and February 2024. To address this, a brand-new excavator was sourced and put
into production in March 2024 and another contract excavator and two contract ADT trucks were also
sourced;

Northern Beach Mining has now ceased with the PCB moved to commence mining at Tormin beach, saving 40km of haul distance, It has already been 12 months since MRC last mined Tormin beach, so the grades should have improved while they were left to replenish.

The improvements to the processing facility have occurred -
Slimes management improvements are underway, including installing double efficiency cyclones in April 2024 (removes more slimes prior to processing) and a new water circulation circuit (includes a fresh seawater infeed line to the secondary process plant and eliminates slimes in tailings being recirculated in processing) being installed in May 2024.

With these improvements, we should have better production during the current QTR, although the cash reserves the stockpiles of salable concentrate will be low. It will be interesting to see how MRC will work through the short term issue with lack of sales and low cash, if they require to extend their working capital facilities back to previous levels, raise funds or borrow from Au Mining.