Bougouni Lithium Project Quarterly Update

Kodal Minerals (AIM: KOD), the West African lithium producer, mineral exploration and development company, provides an update on mining, processing, export and development activities at the Bougouni Lithium Project ("Bougouni" or the "Project") for the three months ended 30 September 2026 (the "quarter" or “Q3”).

Kodal maintains its interest in Bougouni via its 49 per cent. shareholding in Kodal Mining UK Limited ("KMUK") in partnership with Hainan Mining Co. Ltd ("Hainan"), which as the 51 per cent. shareholder has ultimate control. KMUK holds a 65 per cent. shareholding in the operating company Les Mines de Lithium de Bougouni SA ("LMLB"), alongside the Malian Government (35 per cent.). KMUK provides management oversight and operational control of mining activities at the Project. Kodal holds an approximate 32 per cent. ultimate economic interest in Bougouni.

Quarter highlights:

Q3 production was 27,234 dry metric tonnes (“DMT”) of spodumene concentrate grading 5.29% Li2O. Year to date production of 80,429 DMT of spodumene concentrate.

Full year production guidance range of 105,000 to 115,000 DMT of spodumene concentrate with an expected unit production cost of between US$600 to US$610 (including mining, processing, transport to port, depreciation and amortisation).

Completion of the fourth shipment of approximately 24,200 DMT of spodumene concentrate, which arrived at Hainan port in mid-August. Fifth shipment of approximately 17,400 DMT of spodumene concentrate departed the port of San Pedro, Côte d'Ivoire, during the quarter, maintaining a reliable shipping schedule.

US$47.0 million received by LMLB, the mining operator, for the fourth shipment based on a weighted SC6 price of US$2,330 per DMT.

Total exports of spodumene concentrate amount to 93,322 DMT for completed shipments (shipments 1 to 4) generating revenue of approximately US$142.8 million.

Stage 2 Progress: Metallurgical testwork, updated Environmental and Social Impact Assessment (“ESIA”) and Feasibility Study work advancing on schedule towards a final investment decision.

Focus on safety continued during Q3 with zero lost time injuries (“LTI”) and zero medically treated incidents (“MTI”).

Bernard Aylward, CEO of Kodal Minerals, commented: “Q3 has seen continued operational and commercial momentum at Bougouni, with strong market demand and spodumene concentrate prices driving robust cash flow generation at the project level. Maintaining a reliable export cadence via the port of San Pedro, Côte d'Ivoire, underlines the operational capability of our venture and our position as an active West African lithium producer.

“Importantly, operational cash flows at LMLB enabled KMUK to complete the repayment and termination of the external Hainan loan facility. Fully clearing this debt represents a major financial de-risking milestone for our venture, leaving us with a strong, debt-free project vehicle to support future organic growth.

“Our focus for the remainder of the year remains on driving operational efficiencies at the Stage 1 DMS processing plant while systematically advancing planning for our Stage 2 flotation expansion project. With metallurgical testwork, ESIA updates and feasibility engineering progressing well, Kodal is on a clear pathway to scale Bougouni’s production profile, backed by a de-risked balance sheet, strong commercial partnerships and significant resource upside.”

Operational Review:

Mining Activities (Ngoualana Open Pit)

Open pit mining at Ngoualana continued to operate throughout the West African wet season (July to September) supported by de-watering systems that improved operational continuity and production. In late September, the heaviest rainfall of the season temporarily impacted pit mining operations. This resulted in one week of lost access to the pit floor before de-watering restored normal conditions. Mining operations subsequently returned to normal levels following the return to full access. The summary statistics for the quarter are outlined in the table below:

Mining volumes were below management’s budget for the quarter, impacted by equipment availability and wet season delays. The Bougouni team has continued to work with the mining contractors to improve mining performance with additional equipment mobilised to site. In addition, the operation has contracted an additional mining contractor to target an increase in the mining rate and steady ore delivery to the Run of Mine ("ROM") pad, preserving an operational stockpile buffer for the processing plant.

The operation continued to have full supply of diesel fuel, explosives and supplies to support the mining operation during the quarter.

Spodumene production (Stage 1 DMS Processing Plant)

The Bougouni DMS processing plant operated throughout the quarter. The site has maintained a focus on the maintenance and improvements to the processing plant to ensure a steady production profile.

The DMS recovery continues to perform well with an average recovery rate year to date of approximately 57.7% and grade averaging 5.30% Li2O.

The mining volumes during the quarter were lower than management’s forecast and the feed to the DMS processing plant was a lower grade due to the blending of stockpile material.

The operation continued to export the spodumene concentrate to the Port of San Pedro during the quarter and confirms no issues with the continued transport.

Spodumene Export and Revenue (LMLB):

During the quarter, LMLB completed its fourth export shipment of spodumene concentrate of approximately 24,120 DMT with the shipment arriving in Hainan Port in mid-August. The full revenue received by LMLB for the fourth shipment is approximately US$47.0 million based on an average calculated SC6 price of US$2,330 per DMT received. This average price is calculated on the agreed averaging and weighting of the Shanghai Metal Market China CIF Index and African CIF Index for SC6 (6% Li2O spodumene concentrate). The actual price received was adjusted to reflect the verified grade of concentrate and for the costs of insurance and freight.

Bougouni continued transporting product by road to the Port of San Pedro in Côte d'Ivoire during the quarter. In this regard, a fifth shipment of approximately 17,400 DMT departed the port of San Pedro in September and was in transit to the destination port in Hainan at the quarter end. A further shipment is scheduled to take place before the year end.

Bougouni continued to generate cashflow during the quarter with the unit cost of production of approximately US$600 per tonne during the quarter. The unit cost includes all mining, processing, transport to port, depreciation and amortisation.

As previously announced, cash flow generated by LMLB at the project level serviced shareholder loan repayments to KMUK, enabling KMUK to repay in full the Hainan loan facility. KMUK will continue to grow the cash balance to support the future capital expenditure for the proposed Stage 2 Flotation plant development.

Health, Safety and Environment, Government and community engagement:

The Bougouni operation reported zero LTI and MTI incidents during the quarter. The operation has continued a focus on weekly safety and training meetings to provide a safe working environment to all employees.

The Bougouni Health, Safety and Environment team participated in a reforestation programme with the local community and government officials. The reforestation programme is part of the operations compensation and environmental rehabilitation initiatives and will be ongoing over the coming months.

As previously announced, KMUK received a new export permit for an additional 125,000 tonnes of spodumene concentrate. The Bougouni team continues to maintain strong relations with the Malian Government and continues to operate successfully.

Bougouni development plan:

Work on the proposed Stage 2 flotation expansion project advanced during the quarter:

Metallurgical Testwork: Shipment and processing of representative bulk samples progressed to optimise flotation plant recovery parameters and confirm Bond Work Index ("BWI") grinding requirements.

Environmental & Social Impact Assessment: Updates to the approved ESIA and Environmental and Social Management Plan ("ESMP") advanced, accounting for the expanded footprint at the Boumou prospect area.

Engineering and Procurement: LMLB management is reviewing contractors to provide services for the Mining, Plant and Tailings Storage Facility (“TSF”) design for the proposed flotation plant development.