Ann: Quarterly Activities Report, page-2

A few positives, Is everything starting to turn around for MRC?

Cash is up by US$1.6mil, a slight increase to the debt of $200k.

TORMIN OPERATIONS
Ore mining remained strong at circa 2.75 million tonnes (annualised) during the quarter. The Company increased
the processing rate during the quarter to 2.6Mtpa, producing 73,602 tonnes of final concentrates, a 54% increase
on the previous quarter.MH Grade was 13.6% which is a significant improvement to 8.1% achieved during March.

The 38,500 tonne bulk ilmenite shipment slated for the June 2022 quarter sailed in July 2022. This is positive and will help our cash balance for the September QTR.

Skaland Graphtie mine,

Notably, optimisation of concentrate quality (including a new mill) has increased average concentrate grades from below 90% C prior to Skaland acquisition to 93%C, with daily concentrate grades of up to 97% C achieved. This provides the foundation for the Company’s ore-to-anode strategy as well as potentially improved pricing for higher grades.

It is great to see Mr Frey has achieved 93% TGC average for Skaland's graphite ore and the graphite price achieved is US$733 per tonne. this is a significant improvement from last year's pricing.

This is disappointing to read,

" Mining from the Inland Strands is expected to restart in the December 2022 quarter. The delay of
the Inland Strands mining compared to previous reports is based on additional test work to further enhance the
process flow sheet."

Outlook
Guidance for 2022 provided in the December 2021 quarterly is subject to delivery of Inland Strand production in
line with budget expectations. Any deferral of Inland Strand production may see ilmenite and non-mags
production below forecast, with the projected production potentially deferred into early 2023.