Brikor : CPR Report 2022

Brikor Limited

An Independent Competent Person's

Report on Brikor Limited Mineral Assets - Mineral and Coal Resource Report

Gauteng Province, South Africa

COMPETENT PERSON:

U Engelmann

BSc (Zoo. & Bot.), BSc Hons (Geol.),

Pr.Sci.Nat., MGSSA

Minxcon Reference: M2020-066a

Effective Date: 28 February 2022

Version: Final 220607

Issue Date: 5 May 2022

Prepared by Minxcon (Pty) Ltd

Suite 5 Coldstream Office Park,

Little Falls, Roodepoort, South Africa

Tel: [phone]

Directors: D v Heerden, NJ Odendaal, U Engelmann

Company Registration No.: 2004/029587/07

Brikor Limited

An Independent Competent Person's Report on Brikor Limited Mineral Assets - Mineral and Coal Resource Report - Gauteng Province,

South Africa	i

DATE AND SIGNATURE PAGE

This Report titled "An Independent Competent Person's Report on Brikor Limited Mineral Assets - Mineral and Coal Resource Report, Gauteng Province, South Africa" prepared for Brikor Limited has an effective date of 28 February 2022, and has been prepared and signed on 5 May 2022 by the following authors:-

COMPETENT PERSON

U Engelmann (Director)

BSc (Zoo. & Bot.), BSc Hons (Geol.), Pr.Sci.Nat., MGSSA

COMPETENT VALUATOR

NJ Odendaal (Director)

BSc (Geol.), BSc Hons (Min. Econ.), MSc (Min. Eng.), Pr.Sci.Nat., FSAIMM, MGSSA

Brikor Limited

An Independent Competent Person's Report on Brikor Limited Mineral Assets - Mineral and Coal Resource Report - Gauteng Province,

South Africa	ii

CONTRIBUTING AUTHORS

L Hope (Senior Resource Geologist)	M Antoniades (Geologist)
NHD (Econ. Geol.), Pr.Sci.Nat.	BSc Hons (Geol.), Pr.Sci.Nat., MGSSA

DS Rathogwa (Exploration Geologist)

BSc (Geol. & Math.), BSc Hons (Geol.), Pr.Sci.Nat.,

MGSSA

Brikor Limited

An Independent Competent Person's Report on Brikor Limited Mineral Assets - Mineral and Coal Resource Report - Gauteng Province,

South Africa	iii

DISCLAIMER AND RISKS

This Report was prepared by Minxcon (Pty) Ltd ("Minxcon"). In the preparation of the Report, Minxcon utilised information relating to operational methods and expectations provided to them by various sources. Where possible, Minxcon has verified this information from independent sources after making due enquiry of all material issues that are required in order to comply with the requirements of the SAMREC Code and SAMVAL Code. Minxcon and its directors accept no liability for any losses arising from reliance upon the information presented in this Report. The authors of this report are not qualified to provide extensive commentary on legal issues associated with rights to the mineral properties and relied on the information provided to them by the issuer. No warranty or guarantee, be it express or implied, is made by the authors with respect to the completeness or accuracy of the legal aspects of this document.

OPERATIONAL RISKS

The business of mining and mineral exploration, development and production by their nature contain significant operational risks. The business depends upon, amongst other things, successful prospecting programmes and competent management. Profitability and asset values can be affected by unforeseen changes in operating circumstances and technical issues.

POLITICAL AND ECONOMIC RISK

Factors such as political and industrial disruption, currency fluctuation and interest rates could have an impact on future operations, and potential revenue streams can also be affected by these factors. The majority of these factors are, and will be, beyond the control of any operating entity.

FORWARD LOOKING STATEMENT

Certain statements contained in this document other than statements of historical fact, contain forward- looking statements regarding the operations, economic performance or financial condition, including, without limitation, those concerning the economic outlook for the mining industry, expectations regarding commodity prices, exchange rates, production, cash costs and other operating results, growth prospects and the outlook of operations, including the completion and commencement of commercial operations of specific production projects, its liquidity and capital resources and expenditure, and the outcome and consequences of any pending litigation or enforcement proceedings.

Although Minxcon believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to be correct. Accordingly, results may differ materially from those set out in the forward-looking statements as a result of, among other factors, changes in economic and market conditions, changes in the regulatory environment and other State actions, success of business and operating initiatives, fluctuations in commodity prices and exchange rates, and business and potential risk management.

Brikor Limited

An Independent Competent Person's Report on Brikor Limited Mineral Assets - Mineral and Coal Resource Report - Gauteng Province,

South Africa	iv

EXECUTIVE SUMMARY

Minxcon (Pty) Ltd ("Minxcon") was commissioned by Brikor Limited ("Brikor", "the Company" or "the Client") to complete a compliant Independent Mineral and Coal Resource Competent Person's Report ("CPR" or the "Report") with a full mineral asset valuation on the Brikor clay and coal projects (collectively the "Projects") as follows, located in the Gauteng Province, South Africa:-

• Vlakfontein - stone, clay, coal;
• Grootfontein - clay, coal, silica sand; and
• Plant 1 - clay.

Bricks are manufactured at plants located at Plant 1 as well as the nearby Plant 3 site, at which property no mining occurs.

The Report was commissioned in order to comply with regulations of the Johannesburg Stock Exchange JSE ("JSE"), with the purpose to update the Mineral and Coal Resources and re-value the mineral assets. The 12.10(h)(i) Report has been compiled in compliance with the South African Code for Reporting of Exploration Results, Mineral Resources and Mineral Reserves (2016 Edition) ("SAMREC Code"), and the South African Code for the Reporting of Mineral Asset Valuation (2016 Edition) ("SAMVAL Code"). All requirements of the JSE Section

12 Listing Requirements for Mineral Companies, the SAMREC Code and SAMVAL Code have been complied with. The Report has an effective date of 28 February 2022.

The Competent Person deems this summary to be a true and accurate reflection of the full CPR.

PROPERTY DESCRIPTION

The Projects are situated in the East Rand of the greater Johannesburg region near the town of Nigel.

JSE 12.10 (h) (xi)

JSE 12.10 (h) (ii)(iv)(viii)

Brikor is actively mining coal and clay at Vlakfontein, an 85-ha area which is situated 5 km northwest of the town of Nigel on the remainder ("RE") of the farm Vlakfontein 281 IR. A valid mining right, 219 MR expiring on 10 August 2041, is held for Vlakfontein by Brikor through its subsidiary company Ilangabi Investments 12 (Pty) Ltd ("Ilangabi"). A joint integrated water use licence application ("IWULA") with Grootfontein was prepared and submitted on 30 March 2022.

The clays are processed at the adjacent Plant 1 brick making facility. Plant 1 is located on portion ("Ptn") 7 of the farm Draaikraal 166 IR over 236 ha and held by Brikor under mining right 169 MR, which expires on 31 May 2032. The Plant 1 mining right is only applicable to clays and does not include any coal mining rights. A revised Environmental Management Plan ("EMP") was submitted on 13 February 2019 and was approved on 5 November 2019. Study work in support of an IWULA for water abstraction and storage, and waste disposal is underway.

The 457 ha Grootfontein prospecting area - located immediately adjacent to the Vlakfontein Project Area - was converted to a mining right 10059 MR of 96 ha over Ptn 85 Grootfontein 165 IR and Ptn of RE Volgelstruisbult 127 IR. The mining right was granted on 1 December 2020 and executed on 13 July 2021. A letter granting an Environmental Authorisation was received on 15 March 2021. A joint IWULA with Vlakfontein has been submitted. A Section 11 application is under preparation for the transfer of the right into the name of Kopanela Mining (Pty) Ltd ("Kopanela"). In the same manner, all future mining rights will be applied for in the name of Kopanela.

The surrounding areas are dominated by farmlands, particularly dedicated to grazing and agriculture. The Marievale Bird Sanctuary lies in close proximity to these projects. Two wetland areas have been identified