Kropz Plc announced an update to the JORC (2012) compliant Mineral Resource Estimate (MRE) at its South African phosphate project, Elandsfontein Phosphate Project. The significant write-down in declared Ore Reserves from 2018 to 2022 has been partially reversed in the 2023 Ore Reserve estimate, largely due to the additional infill drilling which was completed in 2023. It is expected that the future drilling campaigns will continue to improve the Mineral Resource estimates from Inferred to Measured or Indicated categories and will enable improved conversion of the Mineral Resources to Reserves.

While both the declared Reserve tonnes and grade have increased, the grade and tonnage estimate of the Resource has decreased. This aligns to the improved confidence in the grade estimation of the deposit and reflects the declining grade of the deposit over its life. Summary: The 2023 Reserve estimate was positively affected by the completed infill and exploration drilling, which significantly improved the total declared Measured and Indicated Mineral Resources.

The Ore Reserves are stated at 30 September 2023, and account for the pit depletions up until the end of September 2023; Total Measured and Indicated resource tonnage has increased by approximately 72%, while the Total resource tonnage has reduced by 30%; Decrease in total phosphate resources at Elandsfontein to 74.23 million tonnes (Mt) from106.58 million tonnes in 2022; Total Reserves are estimated at 26.63 Mt at aP2O5gradeof9.38% of which 16.56 Mt is Proven at 10.25% P2O5,This compares to previous estimate at 17.42 Mt at 9.19% P2O5. The 2023 Mineral Resource Estimate (MRE) for Elandsfontein reflects significant changes compared to 2022andwas notably affected by the completed infill and exploration drilling. The total Measured and Indicated resources have increased by approximately 72%, rising from 19.02 Mt in 2022 to 32.74 Mt in 2023, despite a slight decrease in the P2O5 grade from 9.54% to 9.24%.

Conversely, the total Inferred resources have decreased substantially from 87.56 Mt in 2022 to 41.49 Mt in 2023, accompanied by a decline in the P2O5 grade from 7.68% to 6.30%. This reduction in Inferred resources and the simultaneous increase in Measured and Indicated resources indicate improved confidence in the resource estimates due to the successful infill drilling program. These changes highlight the enhanced accuracy in predicting the spatial distribution and grade of the ore body, leading to a more reliable reserve estimate and better strategic planning for future mining operations.

The 2023 reserve statement for Elandsfontein reflects significant improvements compared to the 2022 estimates, driven by changes in the resource base and a better understanding of the modifying factors to be applied. The total proven reserves have increased substantially from 7.31 Mt at a P2O5 grade of 10.71% in 2022 to 16.56 Mt at a grade of 10.25% in 2023. Meanwhile, the total probable reserves have remained relatively stable, showing a slight decrease from 10.11 Mt at a P2O5 grade of 8.09% in 2022 to 10.07 Mt at a grade of 8.01% in 2023.

As a result, the combined total of proven and probable reserves has risen from 17.42 Mt at a P2O5 grade of 9.19% in 2022 to 26.63 Mt at a grade of 9.38% in 2023. These changes are largely attributable to the successful completion of infill and exploration drilling, which significantly improved the total declared Measured and Indicated Mineral Resources. Additionally, the enhanced understanding of modifying factors, such as mining, metallurgical, economic, and environmental considerations, has contributed to a more accurate and reliable reserve estimate.

This improved accuracy in predicting the spatial distribution and grade of the ore body has bolstered confidence in the reserve estimations and strategic planning for future mining operations.