MERAFE RESOURCES LTD

MERAFE RESOURCES LTD Organogram

Merafe Resources Ltd, through its wholly owned ultimate subsidiary, Merafe Ferrochrome and Mining (Pty) Ltd (Merafe Ferrochrome) and through a pooling and sharing venture with Glencore Operations South Africa (Pty) Ltd (Glencore), participates in chrome mining and the beneficiation of chrome ore into ferrochrome. The Glencore-Merafe Chrome Venture (Venture) operates 5 ferrochrome smelters, 22 ferrchrome furnaces and 6 chrome mines and 6 UG2 plants, situated in the North-West, Limpopo and Mpumalanga provinces of South Africa. Merafe Ferrochrome's share of the earnings before interest, taxation, depreciation and amortisation (EBITDA) is 20.5%. Listed below are the assets to which Merafe Ferrochrome has granted the right of use to the Venture and the Interest in each: • Ferrochrome smelters: - Wonderkop - (furnaces five and six) (50%) - Boshoek (100%) - Lion I (20.5%) - Lion II (20.5%) Chrome mines: • Kroondal (50%) • Wonderkop (50%) • Helena (20.5%) • Magareng (20.5%) • Marikana (26%) UG2 plants, pelletisers: • Impala Merafe UG2 plant (100%) • K4 UG2 plant (20.5) • Rowland UG2 (20.5) • Bokamoso pelletising plant (20.5%) • Motswedi pelletising plant (100%) • Tswelopele pelletising plant (20.5%) • Unicorn Chrome (20.5%) PGM plants: • Western PGM plant (20.5%) • Eastern PGM X plant (50%) The Boshoek smelter was suspended from 1 May 2025. The Wonderkop smelter was suspended from 31 May 2025. Both operations are under care and maintenance indefinitely. In January 2026, NERSA approved a 12-month interim tariff of 87.74c/kWh. However, the interim tariff was not enough to restart all suspended smelters at Boshoek and Wonderkop which require a tariff of 62c/kWh.