KRPZ Kropz Plc

26 February 2025

Kropz Plc

("Kropz" or the "Company")

Trading Update and Notification of Legal Claim

Kropz Plc (AIM: KRPZ), an emerging African phosphate producer, announces its trading update for the period to 31 January 2025 and that it has received notification of a claim to which Kropz and its subsidiary company, Cominco Resources Limited ("Cominco"), are defendants (the "Claim").

Trading Update

Elandsfontein

Elandsfontein started 2025 off positively with a record production month of 33,000 tonnes for January, achieving production of 107,772 tonnes of phosphate concentrate and sales of 131,282 tonnes of phosphate concentrate over the four months ending 31 January 2025. This brings production to 265,623 and sales to 260,843 tonnes for the ten months to 31 January 2025.

In January 2025, the first shipment was made to the European market, further diversifying the customer base. Management expects there to be a further increase in demand for Elandsfontein's Rock Phosphate produced towards the end of 2025.

The Elandsfontein mine is still in its trial production phase and further challenges can be expected as it progresses towards full production.

The centrifuge unit that suffered an early setback due to machinery failure in 2024, has been successfully recommissioned under warranty in 2025. The project continues to yield positive results post recommissioning as it enables better management of the high levels of slimes material in the ore deposit while maintaining the specified design moisture content.

This has resulted in significant relief at the tailings section improving the dry stackable material, which in turn provides the plant with the opportunity to increase throughput.

Kropz Elandsfontein continues to apply stockpiling and blending techniques of the various ore types encountered at Elandsfontein. The Company has embarked on an extensive geo metallurgical program of analysing and testing the various ore types being stockpiled to identify and refine the appropriate method of mining and processing to improve efficiencies.

The "Pink Ore" found within the ore deposit, is a major ongoing focus. The "Pink Ore" Wash plant project was launched and was successfully commissioned addressing the challenges that "Pink Ore" present to the processing of the ore. The commissioning of the wash plant has had positive results and improved production yield.

The Company is excited about a prospect found in the ore body, being "Nanophos", a sub 38-micron product that has emerged as a potent yet underutilised resource. Nanophos is considered a valuable Phosphate nutrient for which there is a potential market interest. Various projects are being instigated to explore the full potential of this opportunity.

The Company is glad to report and celebrate more than two years without a loss of time injury. The Company adheres to strict health and safety standards and international best practices.

Elandsfontein is in the process of updating the JORC (2012) compliant Mineral Resource Estimate ("MRE) which is expected to be finalised in Q4 2025. The early indication is that there will be a continued improved conversion of Mineral Resources to Reserves.

Hinda Project

The reduced sized project continues to be assessed to propose a fit-for-purpose low capex project to prove the concept of producing phosphate concentrate in the Congo and exporting it. The update of the project feasibility is ongoing. Cominco has engaged with two engineering firms and local contractors.  Engagement is ongoing with local government regarding project development and progress.

ESG

The Company continues to invest in and prioritise ongoing community projects, with great success and positive upliftment in the local community, these include, through various partnering initiatives, providing free educational courses through the Hopefield Thusong community centres E-learning centre.

Notification of Claim

Teh Hong Eng Investments Holding Limited ("THE") and Meridian Investment Group PTE. Limited ("Meridian") have served Particulars of Claim in litigation in the English High Court to which Kropz and its subsidiary company, Cominco, are defendants. The litigation relates to an alleged breach of THE's right of first refusal to acquire Cominco shares at the time of Kropz's offer to Cominco's shareholders in November 2018 which resulted in the acquisition by Kropz of the entire issued and to be issued share capital of Cominco, including the acceptance of the offer by THE and Meridian as shareholders of Cominco.

Kropz and Cominco have notified the court that they intend to fully defend the litigation, which was commenced by THE and Meridian only shortly before the expiry of the statutory limitation period for the claims.

Further announcements will be made if necessary in due course.

For further information visit www.kropz.com or contact: