Muchesu Project Update

Contango Holdings Plc, the producing London listed natural resource development company, is pleased to confirm it has received approximately US$116,000 from a large multi-national company ("MNC") as payment for the previously reported circa 1,000 tonne bulk sample of washed coking coal. Over half of the bulk sample has been mined, screened, washed and is ready for collection, with the balance due later this month.

Yesterday the MNC commenced collection of this coal from mine gate ahead of delivery to its facilities in South Africa for final tests in their own coke batteries. Given historic test work undertaken by the MNC, as well as Contango's ongoing verification of the coal quality and characteristics of the bulk sample, the Company believes there is a high probability of entering into a long-term offtake with this MNC following the successful completion of their tests in January 2024. As previously reported, the MNC has expressed a need for a minimum of approximately 7,000 tonnes per month. However, current discussions are with respect to a larger long-term contract, which the board is inclined to progress with given the complications around the current offtake partner, TransOre, which has not yet provided further orders or payment for washed coking coal as envisaged under the July 2023 offtake agreement.

In addition, the Company remains in discussions with other potential off take partners of both coking and industrial coal as per the update of 26 October 2023, which would be envisaged as complementary to any contract with the MNC.

Photos of recent and ongoing operations can be found below and also on the Company's social media platforms.

Screening of coking coal prior to washing.

Approximately 500 tonnes of washed coking coal ready for collection by MNC

Loading washed coking coal product for MNC

Loading trucks with washed coking coal product

First five trucks leaving Muchesu with coking coal product