Mayur Resources : Quarterly Reports

Quarterly Report

For the quarter ending 31 March 2022

mayurresources.com

Highlights

Mayur Renewables

• • Minister for Environment confirmed Mayur Renewables projects are exempt from PNG's REDD+ carbon offset project moratorium.

• • Received letter agreement from Climate Change and

  Development Authority (CCDA) to establish carbon trading in PNG.

• • Completed visits to commence free and prior informed consent (FPIC) process at first 3 carbon project areas.

• • Agreed terms with a leading international US based group to complete carbon project design, methodology and verification process.

• • Materially advanced discussions with potential financing and joint venture partners.

Ortus Resources Spin-out

• • Progressing the spin-out of Mayur's iron and industrial sands projects (including the Orokolo Bay Project) into a new ASX-listed vehicle named Ortus Resources Limited.

• • Seeking to raise capital via the IPO of Ortus to construct

  Orokolo Bay Project and commence production in 2023.

• • Placed the order for the Orokolo Bay process plants; final major capital item now secured.

• • Site construction works commenced at Orokolo Bay under supervision of strategic investor and project delivery partner, HBS.

Mayur Cement and Lime

• • Strategic JV equity partner discussions advancing.

• • Access road and bridge upgrade alignment and geotechnical evaluations completed.

• • Microgrid solar system provided to community school.

• • Executed collaboration agreement with First Graphene for the commercial development of emissions-reducing cement grinding additives, as part of the progressive roadmap to produce carbon neutral cement.

• • Early Contractor Involvement (ECI) process commenced with two shortlisted engineering, procurement and Construction (EPC) providers to identify capex reduction, design optimisation and constructability opportunities.

Corporate

• • Cash balance at 31 March 2022 of A$3.8 million.

• • General Meeting held (13 April 2022) which approved the disposal of Mayur Iron PNG Limited (as part of the IPO of Ortus Resources Limited).

Mayur Renewables

Mayur Renewables was established to :

• • provide projects of sufficient scale to establish standalone carbon and renewables-based opportunities directly addressing the race to decarbonize and achieve net-zero targets by both governments and private industry;

• • directly assist Mayur's "nation building projects" in PNG by providing a pathway to net zero through the establishment of renewable energy and carbon offsets projects for its proposed lime and cement business; and

• • align and enhance broader ESG commitments and respond to the needs of future downstream building materials customers.

Nature based Carbon forestry offsets

Mayur Renewables continues to develop its carbon credit programmes, involving the reclassification, protection and preservation of highly biodiverse threatened rainforest to generate high-quality nature-based forest carbon offsets. The creation of a carbon economy in PNG will ensure forest communities are enabled to prosper and develop through the protection and preservation of their lands rather than destruction via previously approved logging in these areas.

Mayur conducted field trips to 3 of its project areas covering approximately 800,000 hectares to conduct community awareness as part of the FPIC (free and prior informed consent) process for the granting of the concessions. This has included explanation of the potential benefits of future carbon credit trading, and the planning and implementation of various community and social projects including explaining to forest communities that it is far more economically beneficial for PNG, the landowners and forest communities to preserve the forests in their living state rather than destroy them via logging or clearing.

The carbon estates are to be verified under the United Nation's Reducing Emissions from Deforestation and Forest Degradation (REDD+) initiative.

Nature based Carbon forestry offsets

Solar

Geothermal

Avoiding deforestation means protecting large areas of land from logging and other destructive activities. CO2 that has been stored and sequestered by biomass on this land is therefore not released to the atmosphere

The carbon credits generated from the forest concessions will be made available to Mayur's nation building projects such as the Central Cement and Lime Project. This mechanism enables an industrialisation pathway for countries like PNG to develop new industries while benefiting from the protection of its natural environment.

Given the size and scale of the carbon estates it is expected that a significant number of credits will be available for trade in the growing international carbon markets.

Oil and gas majors, banks, and airlines are active players in the voluntary market. As corporate climate targets multiply, future demand for carbon credits is projected to jump 15-fold by 2030 - source Task Force on Scaling Voluntary Carbon Markets (TSVCM)

For more information refer toMayur Renewables WebinarPresentationon carbon offsets released on 20 January 2022.

Mayur Renewables team conducting carbon credit community awareness sessions in Western Province

*Total of first 3 granted projects, potential to expand this to 1.4 million hectares

* Based on Platts CARBEX Carbon Credit Index ^ Range based on Compliance Carbon Market Spot prices for

Australian ACCUs traded at A$55.25and EUAs trading at ~EUR 81 (17 Jan 2022)

* VERRA's Verified Carbon Standard (VCS) Program allows certified projects to turn their greenhouse gas (GHG) emission reductions and removals into tradable carbon credits. Since its launch in 2006, the VCS Program has grown into the world's largest voluntary GHG program. VCS projects include dozens of technologies and measures which result in GHG emission reductions and removals, including forest and wetland conservation and restoration, agricultural land management, transport efficiency improvements, and many others

Mayur Cement and Lime

Central Cement & Lime Project

The proposed Central Cement and Lime Project (CCL) is a vertically integrated manufacturing facility with the ability to meet 100% of PNG's cement, clinker and quicklime requirements, displacing imports into PNG, and to penetrate nearby export markets in Australia and the South Pacific. The co-located quarry, plant site and deep draft wharf will enable very low operating costs. CCL is also seeking to become Asia Pacific's first carbon-neutral Cement and Lime producer.

Strategic partner discussions

The process to secure strategic JV equity partner(s) to assist with co-development for Phase 1 (quicklime facility) is advancing. A number of parties who understand the long-term benefits of the project are in negotiation on the terms of a potential investment.

Road and bridge upgrade works

Access road, bridge upgrade alignment work and geotechnical evaluations are now complete. Work included surveying and assessment conducted on ground and via drone to optimise the ~17km route linking CCL to the main road into Port Moresby. This information has provided key insight into ground conditions and bearing capacity for future heavy vehicle movements.

Kido Village School Community Roof top Solar Project

Collaboration Agreement with First Graphene

Mayur executed a Collaboration Agreement with ASX-listed First Graphene (ASX:FGR) for the development of graphene derived additives for cement manufacturing specific to low carbon cements and Portland Limestone Cements (PLC). The intent of the Agreement is to employ First Graphene's technology as part of Mayur's commitment to production of low carbon cement products for the PNG and Australasian market from the CCL Project.

The PureGRAPH® products and associated technology demonstrate significant potential in achieving enhanced cementitious benefits to enable up to a 20% lower clinker factor in cement production.

This forms part of the carbon reduction technologies arm of

CCL's roadmap to carbon neutrality.

Microgrid rooftop solar for Kido School

A microgrid rooftop solar system was provided to the Kido Community School with installation completed during the quarter. This project enables the first electrical power for the school and creates opportunity to run fans as well as electronic teaching equipment.

Roadmap to carbon-neutral cement and lime products

Ortus Resources Spin-out

Orokolo Bay Iron & Industrial

Sands Project

The Orokolo Bay Iron and Industrial Sands Project in PNG is set to produce a number of products including titano-magnetite, construction sands and a zircon-rich valuable heavy mineral concentrate. The Orokolo Bay Project has been significantly de-risked with the Mining Lease granted and strategic delivery partners secured (HBS)

Ortus spin-off and IPO

Planning was progressed for the spin-out of Mayur's iron and industrial sands projects (including the Orokolo Bay Project) into a new ASX-listed vehicle named Ortus Resources Limited. The IPO of Ortus is planned to raise the residual construction capex to bring Orokolo Bay into production in 2023.

Artist's impression of the Orokolo Iron and Industrial Sands operation

On 4 April 2022, Mayur released a presentation detailing the compelling business case for Ortus and its flagship Orokolo Bay Project. The spin-out of Ortus was approved by Mayur shareholders on 13 April 2022.

Construction commenced

Early construction works commenced at the Orokolo Bay site during the quarter under the supervision of Mayur's strategic investor and project delivery partner, HBS. These early works are being funded by HBS and include upgrades to the existing camp and other works to facilitate on the ground activities once the IPO has been completed.

Process plants ordered

Mayur has placed an order with Australian-based specialist engineering firm, Vanadium Pty Ltd , for the mineral process plant units for Orokolo Bay. This represents the final major capital item for the Orokolo Bay Project.

Contract value is approximately A$16 million, consistent with cost estimates, and represents the largest capital expenditure item for Orokolo Bay (being the fabrication, assembly and delivery of the processing units). Contract execution is conditional upon the successful completion of the proposed spin-out and IPO of Ortus.