ESR’s Next Chapter Begins — First Drill Hole in Motion, page-52

Limestone Overburden: A Lucrative Precursor to the Manganese Prize

In response to a excellent shareholder query, Estrella’s Chairman Les provided a useful baseline on the potential revenue from limestone sales out of Timor-Leste:

https://investorhub.estrellaresources.com.au/announcements/6967338

“We have used a price of $20 per tonne on the type that we seem to have the most of so far. This price will fluctuate like any commodity depending on supply and demand.” — Les, 25 May 2025

While actual returns will depend on quality, logistics, and offtake agreements, the $20 USD/tonne benchmark gives us a solid starting point for modelling potential.

Assuming a 20% net pre-tax margin at $20 USD/tonne, the indicative earnings potential is significant:

Base Case – 20 million tonnes per year over 5 years (100 million tonnes total):

* Total revenue: USD $2.0 billion

* Net pre-tax profit (20% margin): USD $400 million

* In AUD (1 USD = 1.5 AUD): approx. AUD $600 million

High Case – 100 million tonnes per year over 5 years (500 million tonnes total):

* Total revenue: USD $10.0 billion

* Net pre-tax profit: USD $2.0 billion

* In AUD: approx. AUD $3.0 billion

And before some none holders get upset

These are illustrative estimates, not forecasts, but show the scale of potential upside if volumes and pricing align.

Also, worth correcting a prior mistake I made: the issuance of shares to PT Rika Energi Mineral (REM) is not triggered upon reaching 500 million tonnes in total. Instead, shares are issued proportionally as limestone is brought to market— meaning dilution occurs alongside real, realised progress.

The bigger picture here is that the limestone sitting as overburden on top of the manganese is shaping up to be a commercial win in its own right.

The very material that needs to be removed to access the manganese may well fund the journey to it.