Mayur Resources : Projects and CCL Update and Supplementary Disclosure

Projects Update

Letter to Shareholders From Managing Director

Supplementary Disclosure

ASX Announcement

12 July 2022

onlyMayur Resources Limited (ASX:MRL) (Mayur or the Company) provides an amended copy of the announcement made on 11 July 2022, entitled Letter To Shareholders From Managing Director.

The attached amended document contains a replacement Appendix B. The Appendix B contained in the original useannouncement is withdrawn and replaced by the amended Appendix B. The original Appendix B is now withdrawn,

and investors should not make any investment decision based on the original Appendix B. No other changes have been made to the original document that was released.

It should be noted that the announcement made on 11 July 2022 contains newly released information relating to the staging of Mayur's Central Cement and Lime Project, the economics of which are detailed below.

Through innova�on and the use of new and emerging renewable and carbon capture technologies along with carbon offsets, the company will hold a significant advantage over compe�tors from day 1 with the aim to be Australasia's first carbon neutral Quicklime (but also Clinker/Cement) manufacturer.

Project

MRL Subsidiary Market Cap

MRL(s) Forecast

Project NPV

Percent of current

Alloca�on

EBIT

Quicklime P/NAV

CCL Stage 1 -

A$4.7 m+

4.9%

(Assumed 20% current

A$21m^*

A$96.6m^*

(A$4.7m/A$96.6m)

Quicklime (1 Kiln)

value atribu�on ASX:MRL)

95.1% discount

+ Management es�mate of

subsidiary company contribu�on to Mayur

Resources market capitalisa�on.

^ ASX Release 'DFS confirms technical robustness and strong economics for the central cement & lime project: a new import replacement and export industry

personal

for Papua New Guinea' (24/01/2019) Exchange rate US$1.0:A$1.4.

*Deriva�on of broader CCL NPV via the single kiln CCL Lime only Financial Model - Average LOP EBIT US$15m = A$21m [US$1.0 : A$1.4]

Project

MRL Subsidiary Market Cap

MRL(s) Forecast

Project NPV

Percent of current

Alloca�on

EBIT

Cement/Clinker P/NAV

CCL Stage 2 -

A$9.4m+

2.4%

(Assume 40% current value

A$128.8m^*

A$396.9m^*

(A$9.4m/A$396.9m)

Clinker & Cement

atribu�on ASX:MRL)

97.6% discount

+ Management es�mate of

subsidiary company contribu�on to Mayur

Resources market capitalisa�on.

^ ASX Release 'DFS confirms technical robustness and strong economics for the central cement & lime project: a new import replacement and export industry

For

for Papua New Guinea' (24/01/2019) Exchange rate US$1.0:A$1.4.

*Deriva�on of broader CCL NPV via Clinker and cement only Financial Model - Average LOP EBIT US$92m = A$128.8m [US$1 : A$1.4]

	Level 7, 300 Adelaide Street
	Brisbane Queensland	4000
	Phone [phone]	4400
Mayur Resources Limited | ARBN 619 770 277 | ASX: MRL	mayurresources.com

This announcement was authorised by Mr Paul Mulder, Managing Director of Mayur Resources Limited. For more informa�on:

onlyPaul Mulder Managing Director Phone [phone]

i [e-mail]

ABOUT MAYUR

Michael Vaughan

Fivemark Partners Mobile: [phone] michael.vaughan@fivemark.com.au

Mayur Resources Limited is focused on the development of natural resources and renewable energy in Papua New Guinea. useOur diversified asset por�olio spans iron sands, lime and cement, batery minerals and renewable power genera�on. Mayur

also holds a 43% interest in copper gold explorer/developer Adyton Resources, a company listed on the TSX-V (TSXV:ADY).

Mayur's strategy is to serve PNG and the wider Asia Pacific region's path to decarbonisa�on by developing mineral projects that deliver higher quality, lower cost, and "net zero" inputs for the mining and construc�on industries, as well as construc�ng a renewable energy por�olio of solar, wind, geothermal, forestry carbon credit estates, and batery storage.

Mayur is commited to engaging with host communi�es throughout the lifecycle of its projects, as well as incorpora�ng interna�onally recognised Environmental, Social and Governance (ESG) standards into its strategy and business prac�ces.

personalFor

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Letter to Shareholders from the Managing Director

ASX Announcement

12 July 2022

onlyTo the Shareholders of Mayur Resources Limited

As we enter a new financial year, I want to take the opportunity to provide an update on the Company's activities in advance of the soon to be released June 2022 Quarterly Report. Over the past year and a half Mayur Resources, like many businesses, has faced many challenges as a result of the on-going effects of the COVID-19 pandemic, yet we

usehave continued to materially advance our project portfolio in Papua New Guinea. Whilst this letter is lengthy in nature, I feel it important to explain in detail how we have developed the business and how we have managed your investment.

The announcements made during this time have included key milestones required to transform Mayur's projects into long term cashflow generating businesses. These are outlined in this letter to add context to my statement. The establishment of new businesses to the point of being able to generate long-term cash flow takes time, and we are confident we are on the right pathway on the basis we now have fully permitted and construction ready projects.

personalMayur Resources has taken three projects (Iron and Industrial Sands, Quicklime and Clinker/Cement) from inception ll the way through the project development stages to be fully permitted with construction bids in place - 'Shovel

Ready'. These three projects are now in the financing stage and shall see construction commence as soon as financing has been finalised. For clarity, the development activities of exploration, feasibility studies, permitting/approval, customer offtake support and receival of construction bids have been completed for these projects.

Within this period the Board also decided to pause our thermal energy power station project at Lae and focus instead its efforts on renewables (solar/geothermal) and the establishment of its PNG Nature Based REDD+ Forestry Carbon Credit projects. The response to this amendment in strategy has been positive with our future customers welcoming our ability to use renewables to penetrate the energy requirements of our projects, thus reducing our carbon footprint. We have then additionally proposed to generate high quality PNG Nature Based REDD+ Forestry Carbon credits to further offset remaining carbon emissions that are currently unavoidable. Collectively this approach then yields Net Zero products (with the endeavour to achieve this milestone from the commencement of production).

The Nature Based REDD+ Forestry Carbon Projects we are undertaking with Landowners and the PNG Government relate to forests in PNG that are genuinely under threat from logging and are to be reclassified from logging areas to carbon estates. Revenues from the Carbon Projects will bring vastly larger financial and community benefits vs. logging Forto landowners, communities, and the PNG Government and under our ESG commitments, the majority of carbon revenues are provided to landowners. These landowners reside in very poor communities where these revenues will provide the most basic of services such as health, employment, community empowerment, electrification, sanitisation, aid posts and education but then also enrich these communities over the coming 30+ years with far more

than basic services.

The strategic value of this initiative has been recognised by Santos Limited (ASX:STO), who are now working with Mayur as announced on 21 June 2022. The initiative provides major benefits to landowners but also provides our PNG produced products with a significant competitive advantage in being able to sell products into international markets that are Net Zero from day 1 of production vs. competitors that have made commitments to be net zero in 2030 to 2050.

	Level 7, 300 Adelaide Street
	Brisbane Queensland	4000
	Phone [phone]	4400
Mayur Resources Limited | ARBN 619 770 277 | ASX: MRL	mayurresources.com

Building Shareholder's a long-term sustainable business

onlyThe Company has a deep value, multi generation portfolio of projects that have been set up to provide extra ordinary returns whilst demonstrating environmental, social and governance (ESG) elements in accord with IFC's Equator Principle Investment Standard requirements and aiming to reach net zero commitments far faster than its peers.

The company's founders and key corner-stone and strategic investors, pre and post listing of Mayur on the ASX in 2017, have not sold a single share in the Company and have continued to invest in and support the Company and its development aspirations when raising additional capital.

The attached Appendix A outlines the commitment and significant progress the Company has made since listing and usehow it has deployed circa A$69 million in developing these 3 projects to now be construction ready and fully permitted.

Such expenditure has been well managed and are a core part of the front-end investment process in starting new long-life generational EBIT producing businesses. I encourage you to examine this and the announced progress and reflect on, how advanced you feel we as a company now are.

In parallel in bringing these three projects to the financing and construction phase, we have launched a carbon and renewable energy platform, but disappointingly we see our market capitalisation at circa A$23.5 million (A$45.5

million less than what has been spent to date). Additionally, there is a p/nav1 discount of 96.5% of released project personalNPV's vs current market capitalisation of the company. This arbitrage situation either communicates (1) a misunderstanding in the market on the business proposition or (2) that long term strategic corner stone investors who

continue to support the company's direction, have a different view to the smaller short-term Shareholders. Management and our large corner stone investors feel that the market capitalisation does not come close to valuing

(a) the money the Company has spent (even on a dollar-for-dollar basis) and (b) a value premium on the money invested to date (which is the purpose and objective of expending such funds in the first place). I further encourage y u to also look at Appendix B for the graphical line plot of market capitalisation changes, share price and announcements made that will bring to the fore what I am saying.

The board and I communicate this with conviction as we currently have announced A$677m NPV for our projects that a e at 'construction ready' stage, backed by several hundred million tonnes of already announced JORC Resources, with a near term plan to announce a growth to this accumulated NPV (due to an expanded case for the Quicklime project and capital structuring of the Clinker/Cement). We therefore remain very confident and resilient in the view that there are clear asymmetrical advantages that the platform the company has established, sets the foundations for a vastly larger, profitable, and more resilient business than that which we listed (being Mayur Resources) via IPO in 2017 (the company came onto the market with a far less developed asset base than what we have today and at a market capitalisation in 2017 of A$53.5 million). Additionally, these projects have now been positioned to be:-

Forexpandable via utilisation of unallocated JORC resources, adaptable (with Mayur Resources own granted Special Economic Zone) and sustainable (via the large ESG benefits the project will have for landowners and communities and being Net Zero), thus setting a bright stage for future generational shareholders and stakeholders.

Therefore, if deploying Shareholders funds does not yield an accretion in value, naturally the strategy and/or application of funding should be examined. The challenge for the Board is, the company continues to act in the best interests of ALL Shareholders, with the loyal long term corner stone and strategic Shareholders who hold >50% of the company remaining supportive (in principle and capital support) of the Company's direction, whilst some smaller short-term Shareholders and day traders continue to sell off our stock when value accretive announcements are made. Refer again to Appendix B to examine this trend.

Our three projects of Iron and Industrial Sands, Quicklime and Clinker/Cement provides a line of sight to annual EBIT (see table below) of circa A$200 million per annum (once in production). Subject to securing financing and commencement of construction, the timeframe to production across the portfolio is estimated as follows:- iron and

1 P/NAV refers to the ratio of a company's market capitlisation divided by the Project Net Asset Value or Net Present Value.

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industrial sands after 12 months, Quicklime after 18-24 months and Clinker/Cement after 26-28 months. I would encourage Shareholders to examine the annual EBIT of other construction materials companies that will have similar onlyproducts and those with remotely comparable renewable aspirations/credentials. I would then ask you to examine their current market capitalisation today based upon their forward EBIT multiple and reflect and assess what our company's near-term future value could be in the range of vs. where it is today (noting our projects are fully permitted a d construction ready only awaiting to secure finance enabling cashflow and EBIT production). As already mentioned, the expansion of the Quicklime project case and capital structuring of the Clinker/Cement will improve EBIT in addition

to what is documented below.

Carbon Status

Project

Estimated Initial Capex

Annual EBIT

Production

Status

use

Orokolo Bay

A$30m^

Construction Ready

- Iron and

Fully Permitted

A$35m^

1.5mtpa

Industrial

Cashflow 12 Months

A$30m equity

Sands

Binding Offtake

CCL Stage 1

A$67.6m*

Construction Ready

Fully Permitted

- Quick Lime

A$40.6m debt

A$21m*

0.2mtpa

Net Zero

Cashflow 18-24 months

personal

(1 Kiln)

A$27.0m equity

In Principle Offtake

Products Day 1

production

CCL Stage 2

A$396.2m*

Construction Ready

Fully Permitted

- Clinker &

A$238m debt

A$128.8m*

1.75mtpa

Cashflow 26-28 months

Cement

A$158.2m equity

In Principle Offtake

Carbon

A$14m+

Refer to

8mtpa

Feasibility Underway

Funding from incoming

ASX

(Stored

Credits

Cashflow 18-24 months

investors

Release+

Carbon)

^ ASX Release 'Orokolo Bay Industrial Sands Project DFS confirms low cost operation with strong economics' (11/09/2020 & 04/04/22) Exchange rate US$1.0:A$1.4. * ASX Release 'DFS confirms technical robustness and strong economics for the central cement & lime project: a new import replacement and export industry for Papua New Guinea' (24/01/2019) Exchange rate US$1.0:A$1.4.

+ ASX Release 'Presentation and Webinar Tuesday 21 June 900 am AEST' (20/06/2022) Exchange Rate US$1.0:A$1.4.

We remain extremely confident that Mayur will soon be redefined as a producing 'Construction Materials' business coupled with a complimentary Renewable Energy and Carbon Offset arm that the market can easily understand. I remain very encouraged by the continuing and steadfast support that I have received from our PNG stakeholders, the Mayur Resources Board, our leadership team, and major strategic pre and post IPO Shareholders who continue to accumulate their shareholding since listing.

ForThe following sections of this letter set out some of the main deliverables, achievements, and future objectives across the various divisions of our business.

Quicklime (CCL Project - Stage 1)

The Quicklime project is Stage 1 of the 2 Stage Central Cement and Lime (CCL) project that aims to be Australasia's first carbon-neutral Quicklime, Clinker and Cement producer. This project will be able to meet 100% of PNG's domestic Quicklime needs for now and into the future whilst also supplying product to the wider international market i.e. Australia, at a very cost competitive price point.

The project consists of a Quicklime high grade quarry, private import/export wharf, power plant and Quicklime kilns.

This project is located near to the coast within our granted Mining Lease on naturally clear land with the limestone resources at surface. Quicklime is a critical processing mineral for battery and future facing metals such as rare earths, copper, nickel, aluminium, uranium, cobalt, and lithium, and for gold processing, pollution abatement, treatment of

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