SALUNGANO GROUP LTD

SALUNGANO GROUP LTD Organogram

Salungano Group Ltd is a holding company involved in the investment and management of its subsidiaries engaged in the mining, processing and trading of coal. The group is organised into business units based on their products and activities and has four operating segments: • The Mining segment explores, beneficiates and mines bituminous coal; • The Trading segment buys and sells coal to inland customers; • The property rental segment rents property to other segments within the group; and • The investment holding segment is the holding company of the group and also acts as a central treasury function Mining operations include: • Elandspruit Colliery is located 8 kilometres west of Middelburg in Mpumalanga. During the 2025 financial year, underground operations were halted due to low seam height, poor coal quality, and the lack of market access. The Elandspruit Mining Right (MR) expires in October 2026, and there is no current Coal Supply Agreement (CSA). • Vanggatfontein Colliery is located 16 kilometres south east of Delmas in Mpumalanga. The Colliery entered business rescue in early 2024 but subsequently recommenced operations with production remaining below capacity due to the lack of a coal sales agreement.The updated Life of Mine Plan (LOMP) was finalized in July 2025, and the Mining Right (MR) is valid until February 2030. • Moabsvelden Colliery is located 11 kilometres south east of Delmas in Mpumalanga with an opencast truck and shovel mining method and has a LOM of 8 years. The mine has a resource of 22.84 million tonnes and remaining reserves of 13.65 million tonnes. • Arnot Mine (50%) located in Mpumalanga, continues to operate under business rescue proceedings, the same for the Wescoal assets (Elandspruit, Khanyisa and Wescoal Processing), which entered into the business rescue process in August 2023. • Khanyisa Colliery, located around 7km east of the town of Ogies. The Colliery is currently inactive, under care and maintenance, and undergoing business rescue proceedings. Projects: • Leeuw Braakfontein Colliery is located approximately 10 kilometres east-south-east of Newcastle in KwaZulu-Natal on the Klip River Coalfield. • Sterkfontein Project is located approximately 5 kilometres south west of Bethal in Mpumalanga and is an underground bord and pillar prospect that targets No 4 Lower and No 4 Upper of the Highveld Coalfield.