Kropz Plc announced an update to the JORC (2012) compliant Mineral Resource Estimate ("MRE") at its South African phosphate project, ElandsfonteinPhosphate Project ("Elandsfontein"),following additional infill drilling, relogging of historical cores and mapping of ore exposures as intersected within the current mining horizon. The previous resource statement was validated and published by SRK Consulting (Pty) Ltd. ("SRK") in 2018, following their peer review of the resource estimate by Snowden Mining Industry Consultants (Pty) Ltd. The geology at Elandsfontein was believed to be continuous with no major project risks or potential flaws identified associated with the sampling, delineation, and estimation of the mineral resources by previous authors (SRK, 2018). In July 2022, mining operations intersected previously unknown and undefined indurated phosphatic (phoscrete) lenses colloquially referred to as 'hard bank'.

Based on current conditions and on-site learnings, not only from the mining, but also from the revised geological interpretations, it was considered prudent that the resource model be reclassified. The estimate needed to be brought in line with the level of confidence that reflected grade and physical properties and continuity (mining output and plant performance), as these aspects play a role in economic viability, and therefore associated reserve determination.