Kazera Wins US$11.9m Ruling in Aftan Arbitration

Kazera Global plc (AIM: KZG), the AIM-quoted investment company, is delighted to announce that, further to its announcement of 24 September 2024, it has now received a comprehensive and favourable ruling in binding arbitration proceedings against the Namibian company, Hebei Xinjian Construction CC ("Hebei"), with a total award of c.US$11.9 million plus costs.

ARBITRATION OUTCOME

The binding arbitration proceedings, held in Windhoek, Namibia and governed by the dispute resolution provisions of a December 2022 sale agreement, concluded that Hebei had breached its contractual obligations by failing to make full and timely payment to Kazera for the acquisition of Kazera's interest in African Tantalum (Pty) Ltd ("Aftan").

Hebei has been ordered by the Arbitrator to pay to Kazera:

• An amount of US$9.2 million
• Interest in the amount of US$1.6 million accrued up to 8 October 2024
• Interest at the rate of 20% per annum on the amount of US$9.2 from 9 October 2024 to date of payment (being US$1.1 million as at 6 May 2025)
• Full legal and arbitration costs

As at 6 May 2025, the total amount accrued was therefore, US$11.9 million plus costs.

The ruling validates Kazera's consistent position and brings clarity to a complex and long-running contractual dispute.

BACKGROUND

As announced on 20 December 2022, Kazera entered into an agreement with Hebei for the sale of its entire interest in Aftan, including the transfer of related shareholder loans, for a total consideration of approximately US$13 million, with Kazera retaining 100% of the issued shares in Aftan as security until the consideration is paid in full. Hebei made only partial payments totalling US$4.1 million and, having failed to meet the balance of its obligations despite formal written demand, was in breach of the agreement.

The agreement included binding arbitration in the event of a dispute and Kazera commenced proceedings in September 2024 after repeated attempts to resolve the matter amicably failed.

Dennis Edmonds, Chief Executive Officer of Kazera Global plc commented: "We've always believed in the strength and fairness of our case, and this ruling confirms that. It is therefore a welcome outcome that protects shareholder interests and draws a line under a long-running issue. While the arbitration process hasn't held us back operationally, it has been an unhelpful distraction. We can now move forward with greater clarity and remain focused on unlocking value across the rest of the portfolio. We will now take the necessary steps to recover the full amount we are owed."

NEXT STEPS

Kazera is now assessing the most effective legal and commercially beneficial avenues to enforce the award and recover the full amount due. The Company will update shareholders in due course.

For further information, please visit the Company's website at www.kazeraglobal.com or contact: